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Home My WebLink About2009-01 MINUTES OF STEERING COMMITTEE SPECIAL MEETING Orange County Sanitation District Wednesday, January 28, 2009, at 5:00 p.m. A special meeting of the Steering Committee of the Orange County Sanitation District was held on Wednesday, January 28, 2009, at 5:00 p.m., in the District's Administrative Office. A quorum was declared present, as follows: STEERING COMMITTEE MEMBERS: DIRECTORS PRESENT: Jim Ruth, General Manager Doug Davert, Chair Bob Ghirelli, Assistant General Manager Larry Crandall, Vice Chair Nick Arhontes, Director of Oper. & Maintenance Bill Dalton, Operations Committee Chair Jim Herberg, Director of Engineering Mark Waldman, Administration Committee Ed Torres, Director of Technical Services Chair Lorenzo Tyner, Director of Finance and Jim Ferryman Administrative Services Phil Luebben Michael Gold, Legislative Affairs Liaison David Shawver Jeff Reed, Human Resources Manager Tod Haynes, Engineering Manager DIRECTORS ABSENT: Penny Kyle, Clerk of the Board OTHERS PRESENT: STAFF PRESENT: Brad Hogin, General Counsel H E Eric Sapersteher Din 0 THEEC��p WIWAS,W Heather Dion wWe DTI SSTF Christopher Townsend FEB 25 2099 PUBLIC COMMENTS By; l There were no public comments. REPORT OF THE COMMITTEE CHAIR Chair Davert reported on the CASA conference held January 21� —January 24' that he attended along with some of the members of the Steering Committee. He also advised that he would be attending a GWR tour at the Orange County Water District on Friday, January 30'", that was being set up for Lieutenant Governor Garamendi. REPORT OF GENERAL MANAGER Jim Ruth, General Manager, provided a brief overview on his monthly status report. v - Minutes of the Steering Committee 3anuary 28, 2009 Page 2 REPORT OF GENERAL COUNSEL Brad Hogin, General Counsel, reported there was a need to add an item to the closed session calendar, and such action came to the attention of Orange County Sanitation District after the posting of the agenda. It was then moved, seconded and duly carried to add the following item to the closed session agenda pursuant to Government Code Section 54954.2(b)(2), re: Conference with Legal Counsel re anticipated litigation (Subdivision (a)of Sections 54954.2(b)(2), 54956.9) Significant exposure to litigation pursuant to subdivision (b) of Section 54956.9: One rase resulting from a written communication from the BKK Working Group threatening litigation, which communication is available for public inspection pursuant to Government Code Section 54957.5. ACTION ITEMS (1 -2) 1. MOVED, SECONDED AND DULY CARRIED: Approve minutes of the December 17, 2008 Steering Committee meeting. 2. Annual Legislative Planning Session Jim Ruth, General Manager, reported that Jon Freshman has decided to scale back his business activities. Discussion with Eric Saperstein has determined that Eric will be able to step up to cover these additional activities. Michael Gold reviewed the legislative goals for the 2009 calendar year and requested input and direction on priorities. It was noted there were not many changes for 2009 but one addition was being recommended regarding taking positions on a new bill. The committee then heard from Eric Saperstein regarding what could be expected during the coming year on the federal side, and Heather Dion and Christopher Townsend advised what was expected on the state side. INFORMATION ITEMS There were none. CLOSED SESSION (3-6) The Steering Committee convened at 6:04 p.m. in Closed Session, pursuant to Government Code Section 54956.9(b)to discuss five 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. The Steering Committee reconvened at 6:18 p.m. in regular session. 'Minutes of the Steering Committee January 28, 2009 Page 3 ADJOURNMENT The next Steering Committee meeting is scheduled for Wednesday, February 25, 2009, at 5:30 p.m. The Chair declared the meeting adjourned at 6:18 p.m. Submitted by: r. Penny M. Kyle Clerk of the Board SIGN-IN SHEET ORANGE COUNTY SANITATION DISTRICT STEERING COMMITTEE MEETING v2aS0 NAME ORGANIZATION/FIRM leaseprint) leaseprint) PEW )io L L-(5la (bmt^oSTIaG H DOE GENMWEERING MMMMEMIGN-IN FORM.W COMMITEE WC STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and the Agenda for the Steering Committee meeting to be held on January 28, 2009, was duly posted for public inspection in the main lobby of the District's offices on January 21, 2009. IN WITNESS WHEREOF, I have hereunto set my hand this 21st day of January, 2009. Penny M. Kyle, Clerk oft Board Board of Directors Orange County Sanitation District FILECDENTTY SANIIN TH OT FFICE OF AMETATION O B IICT FEB 25 2009 ,Y• H:VEPTIGMO\1501151'aSTORMSNGENDA CERTIFICATION-STEERING COMMITTEEAOC Distributed at Ol =?d'd Steering Committee meeting. Bushard Trunk Sewer Project Closed Session Purpose of the Project • Replace Corroded Pipe . ...... . r.,...,..: a d� _ 9 V � January 31, 2009 E , The Players e r • Boyle Engineering: Project Engineer Prepared the Plans&Specs • Rados: General Contractor dNem • Rinker: Manufacturer&Designer of the Pipe seen • OCSD: Project Owner N.. Ne.i vn+.e.aw ...,cu imycw'mM 1 Construction Pipe Installation Pipe Installation Pipe Cracks "�A - "'., Bell & Spigot Pipe Joint OCSD Position • Pipe Joints Were Too Tight • Pipe Concrete Was Defective • Pipe Steel Was Defective Rinker 2005 Partial Settlement • Pipe Met the Contract Specs • OCSD Pays$1.7 million to Rados in Delay • Cracks Caused by: Damages —Design of Pipe Bedding • OCSD to Supply Pipe for Project —Lack of Shear Strength in Pipe Specs Completion • Past Damage Claims Waived • Future Damage Claims Reserved —OCSD's Pipe Purchase Costs —Rados'Pipe Installation Costs am..cumuAn.x.m. •mMrcu+oo-��.r 3 Escalation Damages Currently Claimed Mediation 12/17/08 • Rados: $8,042,872 • Rados Lowered Demand to$6.9 Million -Material,Equipment, Labor Costs, • OCSD Offered$1.6 Million If Rinker Productivity Losses,and Non-Pipe Related Matched Items • Rinker Offered$500,000 • OCSD: $3,789,585 -Cost of New Pipe v,wr.ewux.,u mw<wm,m.wi .m..a.+r,.,.,,.am. •mwa,nw�.+... Mediator's Proposal Further Negotiations • OCSD Pays Rados $2.5 Million • Rinker Rejected Mediator's Proposal • Rinker Pays Rados$2.5 Million -Offered$1.5 Million • Mediator Pressured OCSD To Fund$1 Million Gap -OCSD Refused • OCSO Proposal: Three-Party Split of$1 Million Gap 4 Recommended Settlement Risk-Benefit Analysis • OCSD Pays Rados$2,833,333 ' Best Case Scenario: Rinker/Rados 100% • Rinker Pays Rados$1,833,333 Liable • Mutual Releases —OCSD Revivers$2.1 Million —Except OCSD Reserves Claims For Latent —OCSD Pays$500,000 in Attorneys Fees& Defects&Indemnity Costs • Parties Bear Own Attom eys Fees&Costs —Net Recovery:$1.6 Million • Extend Tolling Agreement to 3/31109 Worst Case Scenario: OCSD 100% Liable —Rados Recovers$5.8 Million —Attomeys Fees/Costs-$500,000 —Net Loss:$6' fill ° 5 Bushard Trunk Sewer Project Closed Session Purpose of the Project • Replace Corroded Pipe R January 28, 2009 Ela. Gaeuld The Players _ r E • Boyle Engineering: Project Engineer "d" s —Prepared the Plans&Specs • Rados: General Contractor Rinker: Manufacturer& Designer of the Pipe eanNn OCSD: Project Owner ACy Plant Nc.] axn.aw n,unicmmnvaxn 1 Construction Pipe Installation Pipe Installation Pipe Cracks AM _ .. 2 Bell & Spigot Pipe Joint OCSD Position • Pipe Joints Were Too Tight °"'s • Pipe Concrete Was Defective • Pipe Steel Was Defective I Rinker 2005 Partial Settlement • Pipe Met the Contract Specs • OCSD Pays$1.7 million to Rados in Delay • Cracks Caused by: Damages -Design of Pipe Beading • OCSD to Supply Pipe for Project -Lack of Shear Strength in Pipe Specs Completion • Past Damage Claims Waived • Future Damage Claims Reserved -OCSD's Pipe Purchase Costs -Rados'Plpe Installation Costs nu..•...oee.0 wr...em...« 3 Escalation Damages Currently Claimed Mediation 12/17/08 • Rados:$8,042,872 • Rados Lowered Demand to $6.9 Million —Material,Equipment, Labor Costs, • OCSD Offered$1.5 Million If Rinker Productivity Losses,and Non-Pipe Related Matched Items • Rinker Offered$500,000 • OCSD: $3,789,585 —Cost of New Pipe Mediator's Proposal Further Negotiations • OCSD Pays Rados $2.5 Million • Rinker Rejected Mediator's Proposal • Rinker Pays Rados $2.5 Million —Offered$1.5 Million • Mediator Pressured OCSD To Fund $1 Million Gap —OCSD Refused • OCSO Proposal: Three-Party Split of$1 Million Gap 4 Recommended Settlement Risk-Benefit Analysis • OCSD Pays Rados $2,833,333 • Best Case Scenario: Rinker/Rados 100% • Rinker Pays Rados$1,833,333 Liable • Mutual Releases —OCSD Recovers$2.1 Million —Except OCSD Reserves Claims For Latent —OCSD Pays$500,000 in Attorneys Fees& Defects&Indemnity Costs • Parties Bear Own Attom eys Fees&Costs —Net Recovery.$1.6 Million • Extend Tolling Agreement to 3131/09 Worst Case Scenario: OCSD 100% Liable —Rados Recovers$5.8 Million —Attorneys Fees/Costs-$500,000 —Net Loss:$6 +mm°'"°' 5 M1 I y ORANGE COUNTY SANITATION DISTRICT 0 HE C V\P oB^n F14. January 21, 2009 9*708 701 H Me0M9 Add.. P.O.Bow 8127 Fountain Valley, LA 82728A127 W,NV amd.corn Plwna NOTICE OF SPECIAL MEETING 1714)962 0411 Fex STEERING COMMITTEE (714)9620356 9 hq Anabann ORANGE COUNTY SANITATION DISTRICT arw; awete P.A co'e5$ WEDNESDAY, JANUARY 28, 2009 — 5:00 P.M." Fpnnre-n Valley "Uer`°" ADMINISTRATIVE OFFICES rgh"e 10844 ELLIS AVENUE H fth'w'6""°" FOUNTAIN VALLEY, CALIFORNIA 92708 bwme W W W.00SD.COM Le Habra LH Pelnw Lna Akm2ne rvewlntt aHa,,h A special meeting of the Steering Committee of the Orange a-e�7a County Sanitation District will be held at the above location, date We,anae and time. Senor A &W aaecl, 8ten4x, raen "NOTE MEETING BEGINS AT 5:00 P.M. Vile PeM Wmbe Grade Coeta Mee. SaMery L m'l Mdwei I ShNU,LTeul t Lwne Rvmm WeWr tMVta mancy m a enga We omec x pubic health and the environment by providing eleechve llecPon, treetmem.end recycling. STEERING COMMITTEE AND BOARD MEETING DATES 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 January 27, 2010 ^Meetings being held the third Wednesday of the month. STEERING COMMITTEE (1) Roll Call: Meeting Date: January 28, 2009 Meeting Time: 5700 p.m. 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 SPECIAL MEETING OF THE REGULAR STEERING COMMITTEE WEDNESDAY, JANUARY 28, 2009 - 5:00 P.M. ORANGE COUNTY SANITATION DISTRICT 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 -2) 1. Approve minutes of the December 17, 2008 Steering Committee meeting. 2. Annual Legislative Planning Session (Book Page 6) INFORMATION ITEMS CLOSED SESSION (3 -6) 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. Book Paee I January 28, 2009 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 — Dispute with Rados and Rinker over Bushard Trunk Sewer construction contract(Job No. 1-2-4). 4. CONFERENCE WITH LEGAL COUNSEL RE. INITIATION OF LITIGATION (Government Code Section 54956.9(c)) Number of Potential Cases: 1 -- Dispute with Rados and Rinker over Bushard Trunk Sewer construction contract(Job No. 1-2-4). 5. CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(a)) Case: Nguyen Q. Nguyen v. Orange County Sanitation District(Orange County Superior Court Case No. 00115222) 6. CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(a)) Case: Florian loja, at al. v. Orange County Sanitation District(Orange County Superior Court Case No. 00116442) 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 February 25, 2009 at 5:30 p.m. Book Page 2 January 28, 2009 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 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 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 specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member,there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adioumment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Clerk of the Board ten days in advance of the Committee meeting. Committee Chair: 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: pkNe�ocsd.cgm Book Page 3 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: Ryal Wheeler Gino Rapagna PUBLIC COMMENTS 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. Book Page 4 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: A- �4 Penny M. Kyle Clerk of the Board Book Page 5 STEERING COMMITTEE Meeting Dae To Bd.or DU. oYza/zoos AGENDA REPORT Item Num[e Item Number Orange County Sanitation District z FROM: James D. Ruth, General Manager Originator: Michael Gold, Government Affairs SUBJECT: Annual Legislative Planning Session GENERAL MANAGER'S RECOMMENDATION Information SUMMARY At our January 28 meeting, we will focus on setting the legislative agenda for 2009 and discuss goals for the year. The goals are developed to help the Steering Committee track the activities of the legislative staff and measure progress towards our objectives. PRIOR COMMITTEE/BOARD ACTIONS February 2008 - Legislative Platform adopted by the Board of Directors. ADDITIONAL INFORMATION Each year, the Steering Committee meets with the department heads and lobbyists to discuss goals for the new year. These goals provide staff with direction for the legislative program at the State and Federal levels in both policy and funding areas. Last year, the Board adopted the following goals: • Seek an appropriation through Congress to fund the relocation of the Santa Ana River interceptor(SARI) line. • Support the County of Orange to include flood subvention funds in the State Budget, ensuring that these funds are released this year. • Pursue an appropriation and general authorization from Congress for Secondary Treatment upgrades in advance of the 2012 deadline. • 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. F01111 No.Dw 1021 Al.nmftp -Sc R. IW'.01MO7 Page 1 Book Page 6 • Pursue Homeland Security funding for security-related upgrades to OCSD(in partnership with Orange County Water District and others). • Continue pursuing legislative and regulatory changes ensuring that wastewater agencies can apply for water and infrastructure bond funds. • Develop demonstration programs related to energy recovery or reuse related to climate change mitigation as a way to attract additional State and Federal grants. • Monitor climate change legislation at both the State and Federal levels. • Work with cities, the County and other special districts to fight any proposed property tax shifts to balance the State's budget. For your reference, attached is a summary of the progress made on each of these goals in 2008 and the list of tracked legislation. Looking ahead to 2009 A delayed state budget along with the large deficit and election year partisan rancor at the Federal level made progress slow in 2008. This year, the State budget deficit is even larger but at the Federal level, the talk is all about economic stimulus. Moreover, the new Obama Administration and larger Democratic majorities in the House and Senate mean a different policy focus than previous years. Overall, because our funding priorities did not materialize in 2008, staff recommends continuing the same ones in 2009. At the policy level, property tax protection and climate change will remain at the top of the list. Overall economic issues will dominate the agenda for the coming year, but based on last year's goals and priorities, some ideas for 2009 include: • Oppose any property tax shifts and proactively work to prevent another ERAF shift with other local government agencies; • Aggressively pursue economic stimulus funding; • Monitor climate change legislation at the State and Federal level; • Pursue secondary treatment funding/authorization and • Pursue SARI funding. Our lobbying team (Federal and State)will be at the meeting to discuss prospects for the year. Please come prepared to discuss your ideas and thoughts for the legislative program in 2009. Staff will present an overview of the legislative program and the lobbyists will provide their assessment of what can be expected this year. Thank you for participating and we look forward to a productive session on January 28 at 5pm. ATTACHMENTS 1. Summary of 2008 Goals and Progress 2. 2008 Legislative Tracking 3. Draft 2009 Legislative Program Platform and Goals Fom No 102i 1pxm Re -SC RmxG OIN&D] Page 2 Book Paee 7 Summary of 2008 Goals and Progress • 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 900(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. • 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 worked with Air Products to rind funding for a hydrogen demonstration project using digester gas and while our efforts to seek additional 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 staffs 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. JR:mg FOM No.O 10 1 fgenft Rep 1l 01p8T]7 Re,+fa0: Page 3 Book Page 8 2008 Legislative Tracking Bill Number Summary Pmltlorv* Status AB 642 IWolk) Design-build authority for water and wastewater agencies and citiewcounties that provide these Watch To Govemor- services. Signed into Law AS 983 (Mal This bill provides that there is an implied warranty in the accuracy and completeness of the plans Oppose To Governor- and specifications. 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 16S4 Implements the Water Quality and Supply Bond Act of 2006 to include wastewater treatment as Support To Governor- Huffman eligible for funding under the Integrated Regional Water Management Plans. Incorporated in SB Signed Into 1XX Law AB 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 m may be sold for non-commercial use 8 F � AB 227011aird) Promotes greater water recycling and allows wastewater treatment agencies to regulate water Support To Governor- i softeners for the purpose of reducing salts in the wastewater supply. Vetoed 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. AS 2986 Renol 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. SB 11761Peratal A redo of Persia'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) Form Na owioi-i �pvas avn-sc aMremusm Page 4 Orange County Sanitation District 2009 Legislative Program Platform and Goals Legislative Updates i __. �7 Please ofokthelinkitelowhn1he Vest LegslamzTradoogMom; °o old._ . haelG Legs a esAWIT I � Le�'sktive9ilirarkNai�2.9ia! - Collaborate So J2 � � - . 1 Dry , ,P4V SAHpq f/ a td^ P� �V�NL IHE ENVA Book Page 10 Orange County Sanitation District 2009 Legislative Platform Legislative Affairs Team OCSD Staff Michael Gold Ph: (714)593-7529 mgold@ocsd.com Government Affairs Manager Cell: (714)263-5541 Robert Ghirelli (714) 593-7400 rghirelli@ocsd.com Assistant General Manager James D. Ruth (714) 593-71.10 jruth@ocsd.som General Manager Federal Lobbying Team Eric Sapirstein (202)466-3755 esap@ ENS Resources 4 ensresources.com Sacramento Lobbying Team Townsend Public Affairs Christopher Townsend (949)399-9050 ctownsend@ TownsendPA.com Heather Dion (949)399-9050 hdion@ TownsencIPA.com 2 Originally Adopted December,2005 Revised January,2009 Book Page I 1 Orange County Sanitation District 2009 Legislative Platform Introduction The Orange County Sanitation District(OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected. Towards that end, the legislative affairs team monitors activities in Sacramento and Washington, D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year, the Board of Directors adopts a Legislative Platform, which is a summary of goals, key issues and OCSD's policy position. The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities' and policy needs. These Board-approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency. The Legislative Platform is a dynamic document, adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform, including, but not limited to, drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District, particularly those that fall within the goals and objectives identified by the Board of Directors. Staff will monitor bills being watched by similar agencies in Orange County (OCWD, MWDOC, etc.)as well as State Agencies such as California Association of Sanitation Agencies (CASA), the Cal'tfomia Special Districts Association (CSDA)and the Association of California Water Agencies (ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board-adopted Legislative Platform or adopted goals, staff can send letters and give direction to the lobbyists to advocate that position. 3. Where a particular issue is not urgent, all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent, staff may use the signature stamp, so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue, staff will seek direction from the Steering Committee. 6. If a bill does not fall within the scope of the Legislative Platform, but the California Association of Sanitary Agencies(CASA), the California Special Districts Association (CSDA) or the National Association of Clean Water Agencies(NACWA) has an adopted position, staff may follow this position but must inform the Steering Committee of such action at the next regularly scheduled meeting. 3 Originally Adopted December,2005 Revised January,2009 Book Page 12 Orange County Sanitation District 2009 Legislative Platform State and Federal Legislative Goals for 2008 Funding Priorities • Aggressively pursue infrastructure stimulus funding for one or more priority projects through both the Federal and State governments. • Seek an appropriation through Congress to fund the relocation of the Santa Ana River Interceptor(SARI) line. • Pursue an appropriation and general authorization from Congress for Secondary Treatment upgrades in advance of the 2012 deadline. Policy Goals • Aggressively fight any property tax shift from Sacramento by working with the Orange County Water District, CASA and other partners. • Work with government, industry and other groups in support of policies regarding proper disposal of prescription drugs. • Monitor climate change legislation at both the State and Federal levels. 4 Originally Adopted December,2005 Revised January,2009 Book Page 13 Orange County Sanitation District 2009 Legislative Platform Federal and State Legislative Policies 1. Air Quality: OCSD is committed to complying with federal, state, and local air quality laws and rules. OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. Therefore, OCSD shall: a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority, where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the California and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost- effective means for meeting air quality goals. e. Support, in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AQMP)to the extent that such actions could subject the basin to sanction or conformity penalties. 2. Biosolids: OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. Therefore, OCSD shall: a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county, or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 3. Grant Funding: OCSD is committed to offsetting its research, special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements.Therefore, OCSD shall: a. Support appropriations legislation, bonds, programs, and projects that provide funding for infrastructure construction and rehabilitation, special studies and research or projects relating to security, environmental education, water quality, wastewater processing, urban runoff, water conservation, and water recycling. 5 Originally Adopted December,2005 Revised January,2009 Book Page 14 Orange County sanitation District 2009 Legislative Platform b. Support projects that provide for public benefit, over projects that are primarily intended for private benefit or gain. c. Support continued federal funding for protecting and realigning the Santa Ana River Interceptor project and for secondary treatment upgrades. d. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations: OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer-employee relations, including, but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. Therefore,OCSD shalt: a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or a proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act(FLSA) on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. 5. Planning: OCSD ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. Therefore, OCSO shall: a. Support reform of existing state, regional, and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional, sub-regional or countywide cooperation in planning urban development strategies, especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. 6 Originally Adopted December,2005 Revised January,2009 Book Page 15 Orange County sanitation Distnct 2009 Legislative Mariam e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments' (SCAG)sub- regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. Therefore, OCSD shall: a. Support hazard mitigation, emergency response, planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support(generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works: OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers.Therefore, OCSD shall a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry, thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure(i.e. emergency and standby generators)exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers(including cities and special districts) against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. 8. Revenue and Taxation: Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. Therefore, OCSD shall: a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. 7 Onginally Adopted December,2005 Revised January,2009 Book Page 16 Orange County Sanitation District 20D9 Legislative Platform c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax, sales tax, vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible, particularly the courts, heath, and welfare programs. 9. Special Districts: OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner.Therefore, OCSD shall: a. Support outreach to local, regional, and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies(ACWA), California Association of Sanitation Agencies(CASA), and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members' reserves. c. Oppose further state regulations that adversely impact special district financing and operations. d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. 10.Water Quality and Supply: OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. Therefore, OCSD shall: a. Support continued federal and state funding for the Santa Ana River Interceptor Relocation project. b. Support (generally) measures to increase water supply and improve water quality in the region. c. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. d. Support U.S. Amy Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. 8 Originally Adopted December,2005 Revised January,2009 Book Page 17 Orange County Sanitation District 2009 Legislative Platloon e. Support measures that promote and provide for the use of reclaimed water. f. Support"watershed-based" solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. g. Support policy development, funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial, viral and other contaminants and human pathogens. It. Support measures to evaluate water quality standards, as needed, to ensure the objectives are appropriately protecting the designated use. I. Support measures to develop a state-wide consistent policy for total maximum daily load (TMDL) listing and delisting. j. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff, which provide for long-term capital improvements(like storm drain diversions and filters), and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. k. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. I. Support legislation that provides "amnesty"from administrative civil liability (ACL) fines from Regional Boards for agencies participating in comprehensive watershed studies that will, when complete, address the problem that resulted in the ACL fine. m. Support efforts, Including legislation, clarifying that Regional Water Quality Control Board rules that require spending funds are unfunded mandates. n. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. o. Support measures for alternative energy sources. p. Support efforts to reduce the toxic and non-reusable waste load. q. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. r. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and Increasing public awareness of water use efficiency. s. Support legislation that provides for groundwater management on a local level, with respect to coordination of programs, extraction and production rights, long- term protection and groundwater quality protection. t. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. u. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. v. Oppose efforts to make all NPDES permits the same. Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. 9 Originally Adopted December,2006 Revised January,2009 Book Page 18 Orange County Sanitation District 2009 Legislative Platform w. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). x. Support measures supporting urban runoff studies and urban runoff reduction. y. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state, whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs, and in any other relevant process. 10 Originally Adopted December,2005 Revised January,2009 Book Page 19 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018