HomeMy WebLinkAbout2008-12 MINUTES OF STEERING COMMITTEE MEETING
Orange County Sanitation District
Wednesday, December 17, 2008, at 5:30 p.m.
A meeting of the Steering Committee of the Orange County Sanitation District was held on
Wednesday, December 17, 2008, at 5:30 p.m., in the District's Administrative Office.
A quorum was declared present, as follows:
STEERING COMMITTEE MEMBERS: STAFF PRESENT:
DIRECTORS PRESENT.
Doug Davert, Chair Jim Ruth, General Manager
Larry Crandall, Vice Chair Bob Ghirelli, Assistant General Manager
Bill Dalton, Operations Committee Chair Nick Arhontes, Director of Oper. & Maintenance
Mark Waldman,Administration Committee John Linder, Engineering Manager
Chair Ed Torres, Director of Technical Services
Jim Ferryman Lorenzo Tyner, Director of Finance and
Phil Luebben Administrative Services
David Shawver Michael Gold, Legislative Affairs Liaison
Jeff Reed, Human Resources Manager
DIRECTORS ABSENT: Penny Kyle, Clerk of the Board
OTHERS PRESENT: PALE I Ryal Wheeler c THE C4E �No�?iWc'r Gino Rapagna aANae oou
PUBLIC COMMENTS JAN 288�2009
There were no public comments.
REPORT OF THE COMMITTEE CHAIR
Chair Davert extended the invitation to all Steering Committee members to attend the mid-year
CASA conference to be held January 21-24, 2009 in Indian Wells.
REPORT OF GENERAL MANAGER
Jim Ruth, General Manager, provided a brief overview of his monthly status report.
REPORT OF GENERAL COUNSEL
Brad Hogin, General Counsel, reported that the hearing on the motion to dismiss,filed by certain
defendants in the Federal case NRDC at al. v. SCAQMD at al., in which the Sanitation District
joined, was continued by the Court to February 2, 2009. The case challenges the SCAQMD's
continued use of offsets of emission exchanges.
Minutes of the Steering Committee
December 17, 2008
Page 2
ACTION ITEMS (1)
1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the November 17,
2008 Steering Committee meeting. Director Shawver abstained.
INFORMATION ITEMS (2)
2. Legislative Affairs Report—Government Affairs Manager, Michael Gold, advised that
the state senate and assembly were meeting on a new proposal that the democrats
believe will not require an approval of 2/3 majority to pass due to some loopholes.
CLOSED SESSION
The Steering Committee convened at 5:25 p.m. in Closed Session, pursuant to Government
Code Section 54956.9(b) 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.
The Steering Committee reconvened at 5:35 p.m. in regular session.
OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS. IF ANY
There were none.
ADJOURNMENT
The next Steering Committee meeting is scheduled for Wednesday, January 28, 2009. The Chair
declared the meeting adjourned at 5:35 p.m.
Submitted by:
&e'
Penny M. tyle
Clerk of the Board
Distributed at t9 t!t
Steering Committee meeting.
INFRASTRUCTURE STIMULUS ASSISTANCE
The Orange County Sanitation District(OCSD) has identified four(4) projects that are good
candidates for economic stimulus funding, based upon timing and benefits. These projects are:
Project Title Congressional District Construction
rooact location Cost
Replacement of Bitter Point Pump Station John Campbell(R-48) $27 million
Replacement of the Rocky Point Pump Station John Campbell(R-48) $19 million
Sludge Digester Rehabilitation at Plant 1 Dana Rohrabacher(R-48) $42.5 million
Rehabilitation of Odor Control Facilities at Plant 1 Dana Rohrabacher(R-48) $27 million
Each of these projects will generate approximately 100 to 200 local jobs from construction. The
number of secondary jobs created is unknown.
Any non-Federal share of the project will be funded locally. Other details are as follows:
Replacement of Bitter Point Pump Station
Replacement of the Rocky Point Pump Station
Both of these projects are located in Newport Beach and replacement is needed because the
pump stations are 70+years old. The aging infrastructure needs to be replaced to increase
reliability in bringing wastewater to the treatment plant and prevent sewage spills in a coastal
city.
The project will bring greater community benefits with Increased odor control and will meet
current national and state standards for construction.
Both projects have been on the books for many years (since the 1990's)for replacement.
Sludge Digester Rehabilitation at Plant 1
This project rehabilitates aging facilities and improves solids handling processes, and enables
more effective and efficient operation of primary and secondary treatment systems for better
quality effluent. This project helps OCSD more efficiently treat wastewater by improving existing
infrastructure. As OCSD explores using biosolids as an alternative energy source,this project
will increase the availability of high quality materials. Moreover,the rehabilitation project will
produce digester gas(methane), a green power source to fuel generators at Plant 1. Also,this
project is part of OCSD's Federal mandate to upgrade to full secondary treatment by 2012.
Rehabilitation of Odor Control Facilities at Plant 1
This project replaces existing odor control and foul air collection and treatment facilities and was
shelved a few years ago due to lack of funding. The project has direct community and air
quality benefits because it reduces the"odor footprint' around plant 1 (located in a residential
area)and Improves the overall air quality.
Distributed at / i9 Df
Townsend Steering Commi ee meeting.
PUBLIC AFFAIRS, INC.
MEMORANDUM
To: Orange County Sanitation District
From: Christopher Townsend, President
Heather Dion, Director
Casey Elliott, Senior Legislative Associate
Date: December 8, 2008
Subject: Monthly Status Report
On December 81" the Assembly and Senate convened Joint Session of the Legislature. The
purpose of the session was to hear from the officials who oversee the State's finances. The
witnesses that spoke to the Joint Session were State Controller John Chiang, State
Treasurer Bill Lockyer, Department of Finance Secretary Mike Genest, and Legislative
Analyst Mac Taylor.
While each speaker addressed a different facet of the State's financial situation, the four
officials were unified in their primary message: The State is in the midst of a significant
economic downturn. This downturn has resulted in a multi-year budget deficit that is
currently estimated at $25 billion and growing. In order to effectively and responsibly
address this deficit the Legislature must consider all potential fixes and must act
immediately. Any delay in action will only result in an increased deficit and a dwindling
number of solutions.
After the four officials spoke, the members of the Joint Session engaged in a question and
answer session for the next hour. Questions were raised regarding the State's financial
condition, as well as the potential impact on the State K various proposed reductions or
revenue enhancements. The questions demonstrated that most members had not
suspended their ideologies despite the gravity of the current budget situation.
Legislative Analyst, Mac Taylor
The Legislative Analyst provided a brief outline of the State's current budget situation. (The
LAO's presentation is attached to this email).
• The current budget problem, if no action is taken, would amount to $28 billion over
the next 19 months.
o $9 billion shortfall in the current FY 2008-09 budget year
o $19 billion deficit projected in 2009-10.
• This budget session is different from prior budget shortfalls due to:
o Anticipated long recovery from current economic slowdown
o A number of solutions have already been used in previous years
o A large ongoing operations costs
• If the Legislature were to attempt to address the budget deficit through taxes alone,
all of the following taxes would need to be adopted:
o 2 cent sales tax (would result in highest sales in the nation)
1
0 15 percent income tax surcharge (would result in highest income tax in the
nation)
0 2 percent corporate tax increase( would result in highest corporate tax rate in
the nation)
• If the Legislature were to attempt to address the budget deficit through cuts alone, all
of the following payments would need to be eliminated:
o Eliminate funding for LIC and CSII
o Eliminate funding for welfare payments
o Eliminate funding to in-home support services and mental health
• If the Legislature approved the proposal laid forth by the Governor, the proposal
would come close to addressing the budget shortfall in the 2008-09 budget year and
the 2009-10 budget yeas; however, the State would face a $10 billion shortfall
beginning in FY 2010-11.
• The LAO stressed that R is vitally important for the Legislature to act as soon as
possible. The sooner the Legislature acts:
o Provides more revenue/cuts in current year
o Any current year deficit will have to be addressed in the upcoming budget
o Signals to other parties of the cuts to come
o Provides flexibility for State's cash flow
Department of Finance, Secretary Mike Genest
As the Secretary for the Department of Finance, Mr. Genest is responsible for overseeing
the creation of the State's budget and works very closely with the Governor in creating his
budget proposals.
The main emphasis of Mr. Genest is that the State must act immediately to prevent the
budget from further spiraling out of control. As an example, Mr. Genest indicated that the
Legislature's failure to act on the Govemor's proposal, which he released in November,
resulted in a $2 billion loss in potential solutions (i.e. same proposal would net $2 billion less
than it did two months ago).
Mr. Genest indicated that if the Govemor's proposal is adopted soon, then the budget deficit
will be made more manageable in the FY 2009-10 budget year. The Department of Finance
projects that if the Legislature adopts the Governors proposal (or a similar proposal)by
February 2009 the State will face a $2.3 billion deficit at the end of the 2008-09 budget year
and would be facing a $3.6 billion deficit in 2009-10. If no action is taken by February 1,
2009, then the current year deficit would end at$9.5 billion and the projected deficit for
2009-10 would be over$25 billion.
In addition to the large budget deficit that would result from inaction, the State will face a
shortage of cash if the Legislature fails to adopt budget solutions. In fact, if no actions are
taken, the State will be forced to borrow from internal and external sources in order to pay
the State's bills. The State will also be forced to not pay certain vendors beginning in
March. The State Controller spoke about this in more detail.
State Controller, John Chiang
The Controllers primary message was that inaction on the part of the Legislature would
have dire effects on the State.
The budget is a yearly spending plan based on anticipated revenues. The budget is the
responsibility of the Department of Finance, whereas the Controller is responsible for the
State's day-today cash management.
Mr. Chiang indicated that the State spends the most cash in the first quarter of each year
and the bulk of the collections come in fourth quarter. This cash demand cycle requires the
Controller to borrow from several internal and external sources each year in order to pay all
of the State's obligations on time.
This year the State is looking at potentially running out of cash in late February or early
March. There are several reasons for the State's current cash shortage:
o The State's revenue is lower than was projected in the FY 2008-09 budget. It is
likely that the State will fall $7 billion to $9 billion below projections.
o The Controller identified a need to sell $7 billion in revenue anticipation notices in
order to even out the cash cycle. The State was only able to sell $5 billion, thereby
resulting in a $2 billion cash shortage.
o The State's revenue continues to come in below projections. The State's November
revenue fell below revised projections.
The failure to act will pose major problems in March and the State could potentially have a
negative cash balance when the new fiscal year begins on July 16.
The Controller indicated that the State only has a few choices should the State run out of
cash:
o Cash management—Determine mandated payments and prioritize payments
accordingly. This is a temporary solution.
o Revenue anticipation warrant— External borrowing with a high interest rate,
potentially in the range of 10%.
o Warrants(IOUs)—Only once since the Great Depression has the State issued
IOUs. Not all State obligations can be paid for using IOUs. Additionally, any
revenue that comes to the State after IOUs have been issued must be dedicated to
the IOUs.
A cash shortage will result in significant costs to the State in the form of federal penalties,
higher interest rates, and lawsuits. These options are significantly worse than any cut or
revenue enhancements.
State Treasurer, BIII Lockyer
The Treasurer spoke last and made an effort not to duplicate information that the previous
speakers had provided. The primary focus of the Treasurers testimony was that a delay in
action by the Legislature will result in a halting of hundreds of infrastructure projects and
cause great harm to the State's economy.
The Treasurer oversees the bond funds that are used finance highway, school, and other
voter approved bond construction projects. This fund is about to run out of money. The
funds that are in this account supply cash to various infrastructure projects and other large
cash needs. The account is the replenished by the regular sale of bonds. The bonds that
are sold to replenish the account are directly tied to the State's financial health. That is to
say, if investors do not have confidence in the State's finances then they will not purchase
the bonds.
Failure by the Legislature to act on the budget will make it nearly impossible for the
Treasurer to sell these important bonds. If the Treasurer runs out of money, the State will
need to halt hundreds of infrastructure projects throughout the State. Additionally, there will
be no funds for any type of economic stimulus that the Legislature may wish to adopt based
on long-term infrastructure investments. The infrastructure projects that would be halted
would result in a $12 billion loss to private companies and the loss of 200,000 construction
related jobs.
Distributed at
Steering Committee meeting. _
7
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1
CASA
Mid-Year Conference
Ensuring Clean Water for California
January 21-24, 2009
Hyatt Grand Champions
44-fi00 Indian Wells Lane
Indian Wells, CA 92210
Phone: (760) 341-1000
Toll Free: (800)233-1234(central reservations)
www.grandchampions.hyaft.com
Our Mission
Statement President's Message
The mission of the
California Association
of Sanitation
Agencies is to provide Dear CASA Members:
leadership.advocacy
and information to our I look forward to welcoming you to our 2009 Mid-Year Conference,January 21-24 at
members,legislators, the Hyatt Grand Champions, Indian Wells. In these times of economic instability,the
and the public.and to upcoming new year promises to hold added challenges for public agencies to provide
promote partnerships vital services while fulfilling the commitment to preserve and protect public health and
on clean water and the environment.Therefore,the program spotlights presentations on various financial
beneficial reuse issues that we hope you will find timely and informative.
issues that protect
public health and the The program features several program highlights worth mentioning:
environment. •Daniel Dowell Director of LAIF's Investment Division will speak;
•Celeste Cantu,Executive Director.Santa Ana Watershed Project Authority will mod-
erate a panel that features protecting public funds through local investments;
•Dublin San Ramon Services District will offer a first hand account of Variable Rate
Demand Obligations(VRDO);
•Don't miss the Annual Recognition Reception sponsored by the CASA Associates
on Thursday evening.All registered delegates and guests are invited;and,
•For a change of pace,join Roland Williams,General Manager of Castro Valley Sani-
tary District for a fun run, Friday during lunchtime.
I will open the conference at Thursday's luncheon where delegates will be briefed on
the results of our annual Executive Board Planning Session.
I hope to see you in Palm Springs for the conference and ask that you join me at the
President's Reception Friday evening to network with fellow colleagues. Until then,
best regards and please don't hesitate to call the CASA office with questions about
the conference.
Sincerely.
1u
/Harry T.P ce
CASA President
CASA
Mid-Year Conference
Ensuring Clean Water for California
.. ... ... .. .... ... ........ .....
Golf Tournament
Registration form Rancho
A golf tournament has been set for Wednesday,January 21,2009 at the RANCHO Mirage
MIRAGE COUNTRY CLUB.A shotgun St I o,lod for 600am please arrive rm
later than 7:30 a.m.
The country club is located at the comer of Bob Hope Drive and Frank Sinatra Drive.The Wednesday
club has a dram code.No short shorts,blue jeans or t-shirts we permitted. January, 21, 2009
8:00 a.m.!
COST. S 70.00-this includes green fees,golf carts&tournament prizes.
If you plan to participate,please return this form,together with a check for$70.00.
You must send this form in to be eligible to play.
Make checks payable to Mike Dunbar
RETURN FORM BY January 12th(Maps and foursomes will be sent at that time.)
Send form to:
Golfer: Mike Dunbar
South Coast Water District
P.O.Box 30205
District/Finn: Laguna Niguel,CA 92607-0205
Phone:(949)499-4555
Phone: FAX FAX:(949)499-4256
Cell:(949)533-4052
www.mdunbar@smd.org
Preferred foursome:
Please note the early start
time of 8.00 a.m.
POLICY. You must be
registered for the conference
to participate.
Hotel Information Please make your reservations as soon as possible.
Hyatt Grand Champions Health and Fitness Center,along with a wide w- December 20. Your help will ensure all mem-
44-600 Indian Wells Lane my of onsite amenities.Hotel guests have com- bars attending the conference have a=in at
Indian Wells,CA 92210 plimentary use the Shopper Hopper to local at- the negotiated rate and alleviate CASNs liability
Toll Free:(800)233-1234(central reservations) tractions.Further information is available at the for additional costs associated with contractual
Websfte:wwwgrandchampions.hyall.corn hotel's front seek. obligations regarding the=in block.
Room Reservations: Ground Transportation - Palm Springs Int'l CASA'S Late Cancellation Policy:
• CASA Room Rate:S230.75(including tax)- Aimort: CASA initiated a Late Cancellation Policy be-
for Single/Double Occupancy -Taxi Service(approx.$60 one-way) cause of the large number of cancellations in
• Please identify yourself as a CASA member -Shuttles by advanced reservation: the final days approaching each conference.
to receive this special rate At Your Service Shuttle(760)343-0666 Our contractual obligations with the hotel hold
•Cut-Off Date for Reservations is Saturday, -Car Rentals CASA liable if we do not meet our=in guar-
Decemberl)%2WS antees. Please note CASAs Late Cancellation
•Check-in:4:00 p.m./Check-out:12:00 p.m. Hotel Room Reservations and Waiting List; Policy on the bottom of the registration farm.
•The Hyatt is a large property;some=in lo- The Hyatt Grand Champions reservations dl If you cannot attend, send a colleague in your
cations may cause attendees to walk a long Pertinent will manage the CASA waiting list and place by notifying the CASA office.The late fee
distance. assures us that our delegates will be able to for canceling on or before January 9 is$25,
reserve a=in based on CASNs group black. No refunds after January 9
Ground Transportation: This year,the Reservations Department will ac.
The Hyatt Grand Champions located in the cept a maximum of three(3)moms under one Overllow Hotel;
foothills of the San Jacinto Mountains in Indian name. The conference page on CASNs web The Marriott Renaissance Esmeralda is located
Wells(Palm Springs area)is a 25 minutes travel site-wwwcasawelb.org will include the Hyatts next door to the Hyatt Grand Champions;=in
time from Palm Springs Int'l Airport or 70 miles online room reservations link.If you make ad- rates are based on availability.For reservations
from Ontario Int'l Airport. Them is no cost for vaned reservations for delegates and some call(760)773-4444,
self-parking and the=in rate includes unlim- of those individuals do not register for the
ited access to the Ague Serena Spa facilities, conference please cancel those moms by
WEDNES
AY
January 21 ,• .U' THUFIS ar
2009 January 22, 2009
9:00 a.m.-2:30 p.m. 7:30 a.m.-9:00 a.m. 12:15 p.m.-1:30 p.m.
CSRMA Training Seminar Continental Breakfast Federal Legislative Committee
See registration form ......................................................... Work Group
............................................... 8:00 a.m.-5:00 p.m. ......................................I..................
B:DO f'.m,-2:30 p.m. Registration 1:30 p.m.-4:00 p.m.
Golf Tournament ......................................................... GENERAL SESSION
Rancho Mirage County Club 8:00 a.m.-iI a.m. Surviving Turbulent Economic Times
AIR ISSUES FORUM tat Vice President Ron young presiding
12:00 p.m.-5:00 p.m. Chair Frank Caparx Sanitation Districts ....................................I....................
Registration of Los Angeles County 1:45 p.m.-2:30 p.m.
............................................... ......................................................... Protecting Your Security
3:00 p.m.-5:00 p.m. 9:15 a.m.-10:15 a.m. Investments-Is LAIF Safe?
CASA Executive Board Meeting LAND ISSUES FORUM Daniel Dowell,Director,Investment
............................................... Chair Mike Sullivan,Sanaeflon Districts Division-State Treesurera Office
5:30 P.m.-7 0 P.m. of Los Angeles County .........................................................
CSRMA Executive Board 2:30 p.m.-3:00 p.m.
Meeting Emerging Regulatory Issues Dublin San Ramon Services District
-Bob Bastian,U.S.EPA Office of Watertinvifed) and the Wall Street Credit Crunch
-Greg Kesw,,CASA BiosolMS Program Manager Or...Was Polonius Right When He
""""""""""""""""""""""""""' Told Hamlet"Neither a Borrower nor
10:30 a.m.-12:00 p.m. aLender Be"?A Case Study
WATER ISSUES FORUM -Bert Michaiczyk,General Manager
Char Ben Horenshnn,East Bay Municipal -Lod Rose,Financial Services Managed
Ufilify District Treasurer(invited)
1.Where Do We Go From Here?A Case -- - - -- -
for Water Quality Permitting Reform 3:00 p.m.-3:15 p.m.
White Paperby the Massachusetts Coalition Break
for Wafer Resources Stewardship ....................................I....................
Tom Walsh,Engineer-DirectodTreasurer 3:15 p.m.-4:OO p.m.
Upper Blackstone Water Pollution An Agency's Role In Protecting
Abatement District-Millbury,MA Webcast Public Funds Through Local
2.NACWA-Proposed Watershed Act Investments
Charles Logue,Director of Regulatory Panel Moderator.Celeste Cantu,General
Affairs,Oregonk Clean Water Ser ices ManagerSenta Ana Watershed Prgect
..............................I..........................
Authority
11:30 a.m.-12:00 P.M. 4.....0....m.-4:3.............................................
New Member Orientation :0 p. 0 p.m.
.................................I.........I.............
Highlights of No Drugs Down the
12:15 p.m.-1:30 p.m. Drain!-Statewide Campaign
OPENING CONFERENCE LUNCHEON Jim Colson, Td-TAC Chair
formgistered delegates andguests .......... ..............................................
6:00 p.m.7:00 p.m.
- President's Welcome and Executive Welcome reception sponsored by
Board Report the CASA Associates
Executive Director s Report Allregistereddekgates andguestsare
invited.
FRI
AY
'January 23, 2009
7.30 a.m.-9:00 a.m. 12:00 p.m.-1:30 p.m. 1:30 p.m.-3:00 p.m.
CSRMA Board of Directors Meeting Associates Committee Meeting Managers Meeting(for general
......................................................... Chair F'ervar Anwar,Brown and Caldwell managers,public works directors,
8:00 a.m.-9:00 a.m. How the Housing Crash and Credit senior staff,and consultants)
State Legislative Committee Work Group Squeeze Are Impacting(or likely to Chair Michael Abramson,Napa Sanitation
. :O.O.am...9:30'.................................... District
8:00 a.m.-9:30 a.m. Impact)Wastewater Utilities?
"""""""" **... .. ... ""' Decision Analysis:A Systematic,
Continental Breakfast
12:00 p.m.-1:15 p.m. Analytical and Transparent Process for
""""" " """"..... """"' Lunch on Your Own Making Optimal Decisions
9:00 a.m.Guest
a.m. -OR- Decision analysis requires use of
Spouse Guest Meat 8 Greet 12:15 p.m.-1:15 p.m. methods and memos for considering
Chefs Cooking Demo NEW Run,Walk-Get Fit While Having risk and competing trade-offs. Making
""""""""""'""""""""..... "" Fun!Come join us for a 5k run/walk for optimal decisions requires a systematic
9:00 a.m.-12:00 p.m. lunch. approach to ensure the decisions are
Public Policy Sessions All fitness levels are welcome By signing up sound,transparent,and defensible.
......................................................... on the registration form
9:00 a.m.-10:00 a.m. .........................................................
FEDERAL LEGISLATIVE UPDATE Castro Valley Sanitary District's Roland 3:00 p.m.-3:15 p.m.
Chair Shamn Glen,Sanitation Districts of Los Williams has been in athletics his entire Break
Angeles County life.He started running at the age of six; .........................................................
New Directions In The New ran track in college and was considered 3:15 p.m.-4:00 p.m.-GENERAL SESSION
New Directions
and New Congress an Olympic hopeful.Roland has coached, President Harry T.Price presiding and
Admin•Washington D.C. Report, Eric trained and participates in several sporting Keynote Speaker
Saphsteln,CASA Legislative activities.He continues his training regiment .........................................................
Advocate while working as the General Manager 4:15 p.m.-5:00 p.m.
•Update on High Priority Issues of the Castro Valley Sanitary District Program Planning Meeting
• in the San Francisco Bay Area. Chair Paul Hushes,Leucadia Wastewater
Legislative Committee Report located
.........................................................
Roland will lead CASA's fun run/walk. District
10:15 a.m.-11:15 a.m. ......................................................... .........................................................
STATE LEGISLATIVE UPDATE 1:30 p•m.-3:00 p.m. &DO p.m.-7:00 p.m.
Chair Tim Anderson,Sonoma County Water Directors Meeting(for elected/appointed President's Reception
governing officials)
Agency Chair Wyatt Tmxel,Inland Empire Utilities
State Legislative Report, Mike Dillon, Agency
CASA Lobbyist
-Regulatory Affairs Report,Bobbi Risk and Reward:What You Should
Larson,CASA Director of Legal and Know About Asset Risk Management
Regulatory Affairs Ken Harbw,Director of Management
......................................................... Services,Brown and Caldwell DAYAY
11:15 a.m.-12:00 p.m. In hard times,it becomes more important SATUR SATUR 24, 2UU9
Private Sewer Lateral Task Force Report than ever to focus our resources where they
Dawd Williams, Tack Force Chair and will have the greatest impact on the service
Execuffm Board Member levels we deliver.Mr.Harlow will discuss
.............................I..........................I approaches to asset risk management, 7:30 a.m.-9:00 a.m.
11:00 a.m.-12:00 p.m. with real-life examples,to show how risk is Exen, oard Meeting
Communications Committee Meeting measured.He will show how an improved .................I........................
....._........
Chair Michele McKinney Underwood,, Western understanding of risk leads to the best 8:00 a.m.-9:00 a.m.
Municipal Water District service levels regardless of the resource Closing Breakfast
......................................................... limitations all utilities face. .........................................................
10:00 a.m.-4:00 p.m. 9:00 a.m.-10:30 a.m.
Attorneys Meetings Communications Connection: Directors CLOSING GENERAL SESSION
Chair Mark Cornelius,Snyder,,Cornelius 8 Input Sought president Harry T.Price presiding
Michele McKinney Underwood, CASH
Communication Committee Chair Committee Reports on action items;
and closing remarks.
CASH Hyatt 21 -2 2009
Grand Champions,Indianan Wells, CA
Mid-Year Conference
Ensuring Clean Water for California
Registration Form - please select the appropriate box and complete information-REGISTER BY JANUARY 9
❑Delegate$425 ❑Thurs.only$212.50 ❑Fd.only$2/2.50
❑ Yee,I will Join Roland for the Get Fit Fun Run on Friday
First Name: task Name:
Nickname: Title:
Agency/Firm:
Guest First Name: Guest last Name:
❑Delegate$425 ❑Thurs.only$212.50 ❑Fri.only$212.50
❑ Yes,I will Jain Roland for the Get Fit Fun Run on Friday
First Name: Last Name:
Nickname: Tee:
Agencyhlm,:
Guest Fine Name: Guest Last Name:
❑Delegate$425 El Thum.only$212.50 ❑Fri.only$212.50
❑ Yes,1 will Join Roland for the Get Ft Film Run on Friday
First Name: Last Name:
Nickname: Title:
Agency/Firm:
Guest First Name: Guest Last Name:
Registration Fees
No.of Delegates include all functions x S425=
No.of Delegates,Thursday only x$212.50=
No.of Delegates,Friday only x$212.50=
No.of Attorneys for Committee Meeting only x$100=
No.of Guests includes Receptions and Breakfast functions: x$ 65=
No.of Guests for Conference Luncheon only x$ 50=
Total:
Payment Method
❑Online registration with credit card visit us at www.casawels org and click on"Conference"-Visa and MasterCard accepted online
Purchase Orders: Mail check-Check s:
IMPORTANT CASA
e$25 cancellations fee on or before Friday,January 9,2009 1215 K Street,Suite 2290
e No Refund for late cancellations after January 9,2009 Sacramento,CA 95614
fe1: (916)
=Send a colleague if you can not attend,please notify the office 231-
fax:(916)231-21412141
CSRMA
Training Seminar
CSRMA Risk Management
Seminar at CASA...
Sponsored by:California Sanitation Risk Management Authority(CSRMA)
Sessions and Topics When
9:00-10:30 a.m. Wednesday,January 21,2009
The Six Steps of the Interactive Process:Considering and providing job 9:00 a.m.-2:30 p.m.
accommodations for employees with injuries and disabilities. (registration and continental breakfast begins
Would you like to understand your obligations for conducting the Interactive Pro- at 8.30 a.m.)
cess?Better yet,would you like to know all the"nuts and bolts"of how to best con-
duct the Interactive Process?This program will not only review of the six steps of Where
the Interactive Process but will also highlight the penalties for not interacting,show Hyatt Grand Champions Resort
you the best ways to document your efforts and results,and put together your tool 44-600 kit of forms and resources to successfully navigate the potential pitfalls. Indian Wells Lane
Indian
-Roberta Etcheverry,CPDM Indian Wells,CA Phone:7fi0-34b10001000
10:30-10:45 a.m.
Break Cost
10.45 a.m.-12:00 p.m. The seminar is free to all CSRMA members.
CSRMP. _, _:idhe-Turnkey Risk Solutions There will be a nominal fee of$50 for all
Just CC .-1 non-CSRMA members(Cash or check only,
From managing contractor liability to creating ADA-compliant job descriptions to payable to CSRMA either in advance or at
creating a custom Business Continuity Plan to creating customized CalOSHA com- the door).
pliance programs,CSRMA's Risk Control Online is proud to roll out several new
and exciting turnkey disk solutions designed especially with CSRMA members in How to register
mind.Came and see how these new interactive online tools will save your agency
money in consultants,staff time and help your agency better control its nsk! R=gistrauon via mu GSHIdA web site at:
-David Patzer,CSRMA Risk Control Adviser http://www.sipeonlinetraining.con✓csrma/
_....._ _... _... _....... viewSeminamclm
12:00-1:00 p.m.
Lunch
1:00-2:30 p.m. Please contact David Patzer,CSRMA Risk
Employee Performance Evaluations:Are yours a Ticking Bomb? Control Advisor at losscontmlftboglobal.
it can be difficult to inform an employee that his work is not up to par,or that she net or at 707.373.9709.
has an attitude or attendance problem.Often,managers feel it is better to give a
good or neutral performance review--or not give a review at all--than to sit down
with the employee and be candid about deficiencies and the steps necessary to - -- -. ....._..... ......... .._.......
achieve acceptable performance. Please Note:
Not only is the failure to give honest performance feedback unfair to the employee- It is Important we have an accurate head-
-there is no chance to obtain the information necessary to improve-but it could count prior to the date of the seminar to
also result in significant legal liability for the employer if it decides to terminate the ensue that lunch is available for those at-
poorly performing employee.Terminated or disciplined employees have obtained tending the Seminar Please take a moment
sizeable jury awards and ouBOFcourt settlements based upon claims that they to pre-register ff you plan to attend.
"didn't know"their performance fell short of expectations. - - - -This seminar will provide the"why's'and"how's"of conducting effective employee
performance appraisals.
-Melanie Petunia,Lleben Cassidy Whitmore
CASA i
1215 K Street,Suite 2290
Sacramento,CA 95814 i
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PRELIMINARY CONFERENCE PROGRAM
CASA CASA
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Ensuring Clean Water for California
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STATE OF CALIFORNIA }
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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
2008,was duly posted for public Inspection in the main lobby of the District's offices on
if r. 2008.
at
IN WITNESS WHEREOF, I have hereunto set my hand this L_th day of
2008.
Penny Kyle, Ckkk of the B ~rd
Orange County Sanitation istdct
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Z' ORANGE COUNTY SANITATION DISTRICT
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Fwnraw M7 `8 December 10, 2008
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Phone
(1141982.0411 NOTICE OF MEETING
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(714)9821)868
STEERING COMMITTEE
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BIMI19 P9M ORANGE COUNTY SANITATION DISTRICT
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Full9rmr: WEDNESDAY, DECEMBER 17. 2008 - 5:30 P.M.
G9nielt fLeva
Hwwnyn6,8n9,:b ADMINISTRATIVE OFFICES
Irr"r9 10844 ELLIS AVENUE
L.Mabre FOUNTAIN VALLEY, CALIFORNIA 92708
I9 P.O. W W W.00SD.COM
Las Alemi[nr.
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FM,gnub A regular meeting of the Steering Committee of the Orange
s9nw nna County Sanitation District will be held at the above location, date
Berl s9anb and time.
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STEERING COMMITTEE AND BOARD
MEETING DATES
*December 17, 2008
January 28, 2009
February 25, 2009
March 25, 2009
April 22, 2009
*May 20, 2009
June 24, 2009
July 22, 2009
August 26, 2009
September 23, 2009
October 28, 2009
*November 18, 2009
*December 16, 2009
*Meetings being held the third Wednesday of the month.
STEERING COMMITTEE
(1) Roll Call:
Meeting Date: December 17, 2008 Meeting Time: :30 imm.
Committee Members
Doug Davert, Board Chair................................................... ...........
_
Larry Crandall, Vice Chair................................................... ...........
_
Mark Waldman,Administration Committee Chair................ ...........
Bill Dalton, Operations Committee Chair............................. ...........
JimFerryman...................................................................... ..........._
PhilLuebben....................................................................... ...........
DavidShawver.................................................................... ..........._
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, DECEMBER 17, 2008 AT 5:30 P.M.
ADMINISTRATIVE OFFICE
10844 Ellis Avenue
Fountain Valley, California
www.ocsd.com
DECLARATION OF QUORUM
PUBLIC COMMENTS
REPORT OF COMMITTEE CHAIR
REPORT OF GENERAL MANAGER
REPORT OF GENERAL COUNSEL
ACTION ITEMS (1)
1. Approve minutes of the November 17, 2008 Steering Committee meeting.
INFORMATION ITEMS (2)
2. Legislative Affairs Report- Gold (Book Page 8)
Book Page I
December 17, 2008
CLOSED SESSION (3)
During the course of conducting the business set forth on this agenda as a regular meeting of the
Steering Committee,the Chair may convene the Committee in closed session to consider matters
of pending real estate negotiations,pending or potential litigation,or personnel matters,pursuant
to Government Code Sections 54956.8, 54956.9,54957 or 54957.6,as noted.
Reports relating to(a)purchase and sale of real property; (b)matters of pending or potential
litigation; (c)employment actions or negotiations with employee representatives;or which are
exempt from public disclosure under the California Public Records Act, may be reviewed by the
Directors during a permitted closed session and are not available for public inspection. At such
time as final actions are taken by the Board on any of these subjects,the minutes will reflect all
required disclosures of information.
Convene in closed session, if necessary.
3. CONFERENCE WITH LEGAL COUNSEL RE. ANTICIPATED LITIGATION (Government
Code Section 54956.9(b))
Significant Exposure to Litigation
Number of Potential Cases: 1
Reconvene in regular session.
Consideration of action, if any, on matters considered in closed session.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
ADJOURNMENT
The next Steering Committee meeting is scheduled for January 28, 2009 at 5:30 p.m.
Book Page 2
December 17, 2008
Agenda Postina: 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 public records 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 item or because there is a need to take immediate action,which need came to the attention of the
Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the
manner as above, not less than 72 hours prior to the meeting date.
Public Comments: Any member of the public may address the Steering Committee on specific agenda
items or matters of general interest. As determined by the Chair, speakers may be deferred until the
specific Rem 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: PJI 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).
Meetina Adioumment: This meeting may be adjoumed to a later time and items of business from this agenda
may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government
Code Section 54955(posted within 24 hours).
Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you
require any special disability related accommodations, please contact the Orange County Sanitation District
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 dems 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 (714)593-7130
E-mail: pkvleriaocsd.win
Book Page 3
MINUTES OF STEERING COMMITTEE MEETING
Orange County Sanitation District
Wednesday, November 19, 2008, at 5:30 p.m.
A meeting of the Steering Committee of the Orange County Sanitation District was held on
Wednesday, November 19, 2008, at 5:30 p.m., in the Diisbicrs Administrative Office.
A quorum was declared present, as follows:
STEERING COMMITTEE MEMBERS: STAFF PRESENT:
DIRECTORS PRESENT:
Doug Davert, Chair Jim Ruth, General Manager
Larry Crandall, Vice Chair Bob Ghirelli,Assistant General Manager
Bill Dalton Nick Arhontes, Director of Oper. & Maintenance
Jim Ferryman Jim Herberg, Director of Engineering
Phil Luebben Ed Torres, Director of Technical Services
Ken Parker, Operations Committee Chair Lorenzo Tyner, Director of Finance and
Mark Waldman, Administration Committee Administrative Services
Chair Michael Gold, Legislative Affairs Liaison
Tod Haynes, Engineering Manager
DIRECTORS ABSENT Penny Kyle, Clerk of the Board
OTHERS PRESENT:
Ryal Wheeler
Brentives
Chris Townsend
Heather Dion
PUBLIC COMMENTS
There were no public comments.
REPORT OF THE COMMITTEE CHAIR
Chair Davert reported that the CASA Conference would be held January 21-24, 2009 at Indian
Wells. He reminded the Directors that an ethics training session would be held at the Sanitation
District on December 2"d, and to contact the Clerk of the Board to reserve a seat. It was also
reported that Director Parker would be leaving the Board next month. He was appointing Bill
Dalton as the Chair of the Operations Committee and Dave Shawver as the Vice Chair.
REPORT OF GENERAL MANAGER
Jim Ruth, General Manager, provided a brief review of his monthly status report. An update on
the Strategic Plan was provided by Bob Ghirelli,Assistant General Manager. The updated plan
includes five new initiatives provided at the Strategic Plan Workshop at no additional costs.
Book Page 4
Minutes of the Steering Committee
November 19, 2008
Page 2
REPORT OF GENERAL COUNSEL
Brad Hogin, General Counsel, reported that the Sanitation District joined Los Angeles County
Sanitation Districts in filing a motion to intervene in a Federal case which challenges the South Coast
Air Quality Management District(SCAQMD) to continue using internal offsets of emission
exchanges. The case is scheduled to be heard December 11, 2008.
ACTION ITEMS (1 -2)
1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the October 22, 2008
Steering Committee meeting.
2. MOVED, SECONDED AND DULY CARRIED: Recommend to the Board of Directors to:
a) Approve the Five-Year Strategic Plan dated November 2008; and,
b) Direct staff to implement the goals and strategies contained in the Plan.
INFORMATION ITEMS(3)
3. Legislative Affairs Report—Government Affairs Manager, Michael Gold, reported that
the Legislative Workshop would be held on January 28, 2009, at 4:30 p.m., prior to the
Steering Committee meeting. The committee received an update via telephone by the
federal lobbyists, and suggested a trip to Washington, DC should be considered in
February or early March to meet with the delegates. The state lobbyists, Christopher
Townsend and Heather Dion, were also in attendance and provided a brief update.
CLOSED SESSION
The Steering Committee convened at 6:11 p.m. in Closed Session, pursuant to Government
Code Section 54956.9(b)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.
The Steering Committee reconvened at 6:25 p.m. in regular session.
OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY
There were none.
Book Page 5
Minutes of the Steering Committee
November 19, 2008
Page 3
ADJOURNMENT
The next Steering Committee meeting is scheduled for Wednesday, December 19, 2008. The Chair
declared the meeting adjourned at 6:25 p.m.
Submitted by:
Penny M. K I
Clerk of the Board
Book Page 6
STEERING COMMITTEE re o•a
tzftr/zoos
AGENDA REPORT Rem Numbe Iem Nu be
Orange County Sanitation Dismct z
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
Year-end 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 in advance of the
January 28 legislative planning session with staff and lobbyists.
2008 Goals
• Seek Federal authorizations and appropriations for the SARI line relocation, upgrades to
secondary treatment, homeland security upgrades and the sewer science program.
In addition to partisan bickering that prevented Congress from passing any significant
budget legislation in 2008, the financial crisis at the end of the year wiped out all
chances for Federal appropriations.
• Continue pursuing legislative and regulatory changes ensuring that wastewater agencies
can apply for water and infrastructure bond funds.
Staff was successful in this area as the State Legislature passed, and the Governor
signed, SB 1XXX implementing the water bonds from 2006. The language we lobbied to
include in the bill that allows wastewater projects to be eligible for Integrated Regional
Water Management Plan funding (IRWMP), was part of the enrolled legislation.
�a -Sc
F..Na.P 1.I amass 01�7
Page t
Book Pave 9
• Develop demonstration programs related to energy recovery or reuse related to climate
i
change mitigation as a way to attract additional State and Federal grants.
Staff worked with Air Products to find funding for a hydrogen demonstration project
using digester gas and while our efforts to seek Federal funding did not materialize, the
project did receive sufficient funding from the State Air Resources Board.
• 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.
One of the brightest spots of 2008 was stairs aggressive efforts to right off a State take-
away of property tax dollars. Beginning with a coordinated campaign by OCSD and OC
Water District, meetings in Sacramento with Board members and Legislators and
pressing CASA, we avoided any shifts this year.
Looking ahead to 2009
At the moment, the key phrases for 2009 are budget deficits and stimulus funding at both the
State and Federal levels. The State Legislature's inability to resolve the ongoing deficit has
resulted in not only a nearly $30 billion shortfall for next year, but also an immediate cash-flow
crunch that if not solved by February, means California will not have the money to pay its bills.
With this in mind, a key goal for 2009 will be continuing to protect local property taxes from a
state raid.
On the other hand, at the Federal level, deficits seem to be a good thing with the incoming
Obama administration calling on Congress to invest billions in infrastructure projects to ignite
the slow economy. As reported last month, as much as $850 million could come to California
for wastewater infrastructure projects, the big question, however, is how this money will be
distributed—through a Federal agency (such as EPA) or through the States.
Mark your calendars]
The annual legislative strategic planning session will be held just prior to the January Steering
Committee meeting on January 28, 2008 at 4:30 PM. At the meeting, we will discuss goals for
the coming year and any changes to the Legislative Platform.
JR:mg
i
Form No.Ddd-io3-I
Agenda Repot_sc
Page 2
Bock Paee 9
2008 Legislative Tracking
Bill Number Summary PmItIcm* Status
AB 642 (Wolk) Design-build authority for water and wastewater agencies and cities/countiesthat provide these Watch To Governor-
services. Signed Into
Law
AB 983 (Mal This bill provides that there is an implied warranty in the accuarcy and completeness of the plans Oppose To Governor-
and specificiations. The bill shifts the burden to the agency if something wrong occurs after the Vetoed
completion of the project and the contractor could claim error in the plan, rather than construction.
AB 1654 Implements the Water Quality and SupplyBond Act of 2006 to include wastewater treatment as Support To Governor-
Huffman eligible for funding under the Integrated Regional Water Management Plans. Incorporated In SIB Signed into
1xx Law
AS 1978(Solorio) Sponsored by the County of Orange. Bill clarifies that that GIS and mapping data will be subject to Support Died
same public records act laws as computer software and not subject to public records rules and
a may be sold for non-commercial use
0
r.
d All 2270(Laird) Promotes greated water recycling and allows wastewater treatment agencies to regulate water Support To Governor-
sofenters for the purpose of reducing salts in the wastewater supply. Vetoed
0
AS 2716(Mal Mandates sick leave for all employees working seven or more days in a year(bill written to include Oppose Died
all part-time employees)and applies to both public and private sector.
All 2986(Lenol Requires the State Water Resources Control Board to review. grade and monitor sewage Oppose To Governor-
treatment plants, including collection systems. Allows the Water Boards to impose fees to finance Vetoed
the program.
5B 1176(Peratal A redo of Perata's SB 1001 last year(vetoed by the Governor). This bill makes changes to the Oppose Died
Regional Water Quality Control Board membership, including lowering the number of members
from nine to seven.Amended into AS 2769(Levine)
Fa MFD ,Ml Fp✓iN Pmm-Sc
01 d 7 Page 3
ORANGE COUNTY SANITATION DISTRICT
(714) 962-2411
www.ocsd.com
Mailing Address:
P.O. Box 8127
Fountain Valley, California
92728-8127
Street Address:
10844 Ellis Avenue
Fountain Valley, Califomia
92708-7018