HomeMy WebLinkAbout2009-07 FILED IN THE OFFI
CE OF
OAAN E OUNN S,F TTTA B BOARD
MINUTES OF STEERING COMMITTEE MEETING
Orange County Sanitation District AUG 261009�
Wednesday, July 22, 2009, at 5:30 p.m. W. /.
A meeting of the Steering Committee of the Orange County Sanitation District was held on
Wednesday, July 22, 2009, 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: Jim Ruth, General Manager
Doug Davert, Chair Bob Ghirelli, Assistant General Manager
Larry Crandall, Vice Chair Nick Arhontes, Director of Operations and
Mark Waldman, Administration Committee Maintenance
Chair Jim Herberg, Director of Engineering
Jim Ferryman Ed Torres, Director of Technical Services
Phil Luebben Lorenzo Tyner, Director of Finance
David Shawver and Administrative Services
Michael Gold, Legislative Affairs Liaison
DIRECTORS ABSENT: Life Kovac, Associate Clerk of the Board
Bill Dalton, Operations Committee Chair Juanita Skillman
OTHERS PRESENT:
Brad Hogin, General Counsel
Kristine Thalman
Bryan Starr
PUBLIC COMMENTS
Kristine Thalman of the Builders Industry Association spoke in support of continued payment
deferral of connection fees through June 30, 2010 to builders of large housing development projects.
COMMITTEE CHAIR REPORT
Chair Doug Davert briefly reported that he and Vice Chair Crandall attended the NACWA
Conference in Milwaukee, Wisconsin to receive an achievement award for the GWRS project.
GENERAL MANAGER REPORT
Jim Ruth, General Manager, reported on the internal reorganization of the Public Information
and Legislative Affairs offices;the offsite planning meeting; and the final insurance prices.
Minutes of the Steering Committee
July 22, 2009
Page 2
GENERAL COUNSEL REPORT
General Counsel, Brad Hogin, reported that the insurance company has settled on the Andino
lawsuit for$750,000 on the Bushard trunk sewer project.
ACTION ITEMS
1. MOVED, SECONDED AND DULY CARRIED:Approve minutes of the June 24, 2009
Steering Committee meeting.
INFORMATION ITEMS
2. Public Affairs Monthly Update
Michael Gold, Public Affairs Manager, briefly reported on the status of the lobby display
upgrades and the honor walk. Mr. Gold also provided a brief update on the state budget
status.
CLOSED SESSION
There was no closed session.
ADJOURNMENT
The next Steering Committee meeting is scheduled for Wednesday, August 26, 2009, at 5:30 p.m.
The Chair declared the meeting adjourned at 5:55 p.m.
Submitted by:
Lilia Kovac
Associate Clerk of the Board
Penny Kyle
GENERAL MANAGER'S
PROGRESS REPORTS TO THE STEERING
COMMITTEE
AND
PROPOSED 2009-2010 WORK PLAN
1. Fiscal Year 2009-2010 Proposed Work Plan
2. Fiscal Year 2008-2009 Year-End Review of
Accomplishments
3. 2009 Executive Management Team Strategic
Planning Session
4. 2009-2010 Budget Update
Distributed at the Steering
Committee Meeting held on
i
n
n ,�_
n
�.
3
1 �
1 �` I
1
r
r 6�M
Q ORANGE COUNTY SANITATION DISTRICT
Memorandum
p b
Y
r
DATE: July 22, 2009
r
TO: Chairman D and Members of the Steering Committee
r FROM: JamesAuih, General Manager
SUBJECT: Fiscal Year 2009-2010 Proposed Work Plan
r
The enclosed reports cover the District's progress and accomplishments for FY 2008-09,
r provide an overview of the July 9 Executive Management Team strategic planning session, and
present the proposed work plan for 2009-10 Fiscal Year.
I. Fiscal Year 2008-09 Overview
The 2008-09 fiscal year presented many challenges to our staff as we addressed our
Board-approved work plan, setting forth our service levels incorporated in our Strategic
r Plan, implementing an aggressive Capital Improvement Program (CIP) covering 73
projects valued at $280 million, and dealing with the fiscal uncertainty in a volatile
economic climate.
r Staff met or exceeded all of our proposed goals, managed the operating budget at 97%
of our authorized resource allocation plan, implemented operational efficiencies resulting
in a $2 million savings, reallocated personnel resources to areas of greater, need
actually reducing the number of authorized personnel from 644 to 641, while assuming
increased operating responsibilities.
.r Continued assessment of our organizational structure resulted in the merging of our
Public Information Office and Government Affairs into a Public Affairs division under the
leadership of Michael Gold.
r
The Safety and Health division has been permanently assigned to the Human
Resources division.
r
Staff will continue to explore other possible mergers to create greater efficiencies in our
operations.
r
r
r
Chairman and Members of the Steering Committee
r Page 2
July 22, 2009
r
it. Executive Management Team Strategic Planning Meeting
s' The meeting focused on operational issues covering strategic goals, financial planning,
new regulatory requirements, risk assessment, labor relations, training, alternative
energy sources, hiring practices, succession management, public education and
r outreach, and our contractual agreements with outside agencies.
An overview of that meeting is enclosed.
r
III. New Work Plan for Fiscal Year 2009-2010
1) Fiscal Management—Maintain our current AAA bond rating. Protect our
reserves maintaining at current levels, form an internal business analysis function
to assist departments in implementing greater efficiencies in our operations.
Explore options to reduce dependency on property tax revenues. Operate within
r the Board approved budget. Analyze cost-saving measures identified in the EMT
strategic planning session and seek board direction on those involving changes
in our approved level of service, for example, disinfection levels, chemical usage
for odor control, and environmental monitoring.
2) Capital Improvement Plan — Manage 82 projects at an estimated cost of$259
�► million within budget at a change order rate of 5%.
3) Complete negotiations and seek Board approval of new contractual agreements
r with SAWPA and IRWD.
4) Develop a new operating agreement with OCWD relative to their proposed
Phase II Expansion Program.
5) SARI Line Relocation—Continue to work with the County of Orange, Army Corps
,r of Engineers, and SAWPA to achieve approval of the EIR, EIS, prepare final
plans and bid documents, bid the project within the approved time schedule and
achieve completion by April 2012.
Work with our Congressional delegation to secure reimbursement funding for the
project.
6) Labor Relations—The 2009-2010 Fiscal Year will begin our labor negotiations
process with two of our six bargaining units. Our focus will be on cost
containment, with emphasis on our benefits package. The remaining four labor
r agreements will not expire until June 30, 2011.
r
r
Chairman and Members of the Steering Committee
" Page 3
July 22, 2009
r
7) Strategic Plan Update—Staff will bring forward our proposed update of our 5-
year Strategic Plan in November 2009. The proposed new plan will address all
r service levels approved by the Board, consider new regulatory requirements,
evaluate our fiscal plan, review our risk register and identify possible mitigation
measures, and review our performance measures against our agreed upon work
r plan.
8) Transfer of local sewer assets to local agencies. Staff will continue to work with
local cities and sanitation districts to transfer any non-regional assets over to
those agencies so that we can continue to focus on regional services and
reducing our operating costs.
`t 9) North County Maintenance Yard—Staff has worked with an architectural firm to
determine the most economical and functional approach to utilizing this property
at 7311 Doig Drive, in Garden Grove. The property was acquired in 2006 to
provide badly needed workspace for approximately 50 staff, and to free up
workspace at Plant 2 needed because of facilities growth. A staff
recommendation will be presented to the Board by November 1, 2009.
r
10) Design Build —As a result of our aggressive legislative efforts, two projects have
now been approved for Design Build. The Magnolia Trunk Sewer Project($19.5
r million) and the Inter-Plant Natural Gas Pipeline Rehabilitation Project ($2.5—
$3.5 million) should be bid and constructed during this fiscal year.
,r 11) Safety—Staff will focus on achieving 100% compliance with OSHA training
requirements with the objective of further reducing our number of work related
accidents and lost work hours. During the past two years, we have achieved a
rl 53% reduction in the work related accident rate.
12) Public Outreach —The focus of our outreach activities this year will be on
undertaking a branding initiative to provide continuity and a consistent message
in our public education efforts. In addition, we will be updating our collateral
materials and other media.
13) Training—We will focus on continuing to develop leadership skills, build our
bench, and prepare for the future. We will complete the final two sessions of our
Leadership Academy and lay out a program for the next generation of leadership
r development training for the organization.
JDR:gg
Attachments
H.Wept%graotl ID1110AdminIRUTH JAMES\Saws Reports to Roard12009 GM Status reports@oa9 07 22 FV 2009.2010 Proposed Work Plan Eon
�F`
1 C
6 a
1 ya
d G
rE
1 � u
O �
r d
o
1 � �
w�d
1 �,�
1
1
1
1
1
1
1
ORANGE COUNTY SANITATION DISTRICT
Memorandum
DATE: June 24, 2009
TO: Chair and Members of the Board
Orange County Sanitation District
FROM: James D. Ruth
General Manager, Orange County Sanitation District
SUBJECT: Fiscal Year 2008-2009 Year-End Review of Accomplishments
The 2008-09 fiscal year brought many challenges to our organization; however,
through the strong leadership of our Board and the standing committees, we
achieved substantial progress. While we achieved much progress during this past
year, the Orange County Sanitation District faces many new challenges as we
address the state fiscal crisis, critical operational and capital needs and potential new
regulatory requirements.
Once again, we demonstrated our resolve to achieving optimal operating efficiencies
while continuing to implement a very aggressive Capital Improvement Program as
part of our adopted $2.5 billion plan to protect the health and safety of the 2.5 million
residents in our service area. The OCSD team manages assets with an estimated
replacement value of over$6.25 billion.
Our work plan for FY 2008-09 incorporated an aggressive program of continued fiscal
prudence while meeting our consent decree obligations, implementing our $280
million capital program and carrying out our Board approved strategic plan.
_ Under the Board of Directors strong leadership, OCSD actually improved its bond
rating with Standard & Poors from AA to AAA, with Fitch and Moody's holding our
rate at AA. The Board's approval of our five-year rates in 2008 contributed
significantly to this excellent rating.
We are making great strides to become more results-oriented. In addition to the
accomplishments described below, I have attached a listing of other staff
achievements and awards received this past year that reflect the high degree of
professionalism and excellence within our organization.
r
Board of Directors
Page 2
June 24, 2009
r
The following report reviews our organization's progress this past fiscal year against
our approved work plan presented to the Steering Committee at our July 2008
meeting.
I am pleased to report the status of the following work plan items:
1. Strategic Plan Update—With the adoption of our Strategic Plan in November
2008, the Board of Directors gave speck policy direction to staff for
implementation. Goals and objectives and performance measures were
developed to monitor progress against our agreed upon work plan.
Status—Staff completed 15 of 37 (40%) strategic goals contained in the
strategic plan. We are also meeting or exceeding nearly all of the level of
service targets approved by the Board in the plan. Significant achievements
during this fiscal year include completion of the Steve Anderson Lift Station,
significant progress on the relocation of the SARI line and a newly updated
strategic plan. Please refer to pages 10-16 of the OCSD Fiscal Year 2009-10
Budget Update for a comprehensive listing of the strategic plan
accomplishments. Staff created a computer-based performance dashboard to
monitor and track progress on each of the strategic plan elements.
2. SAWPA Agreement— Our staff continues to meet with SAWPA management
to consolidate five existing agreements into one document and to clarify
existing language as well as addressing several operational issues. Staff will
present final documents to our Board early in the 2008 fiscal year for your
review, consideration and action.
Status—OCSD staff presented a draft agreement in November 2008 to
SAWPA staff for their review. We continue to meet to resolve outstanding
issues and it is my hope that we can present a revised agreement to the Board
for consideration by the end of calendar year 2009.
3. IRWD — Staff held numerous meetings with IRWD executive and operational
staff to address operational and financial issues between our respective
agencies. We exchanged considerable information and we are nearing
agreement on all outstanding issues. Cooperation has been excellent in our
collective efforts to complete this project.
Status: We reached agreement on all issues and we are now in the process
of working up a revised agreement for consideration by our respective boards
of directors. We expect to present a draft agreement to the Board in summer
2009.
r
r
Board of Directors
Page 3
June 24, 2009
.. 4. Budget—Staff continues to follow the state financial crisis in an effort to
minimize any fiscal impacts it might have on local government and specifically
special districts. We are working closely with CASA, CSDA and the League of
.. Cities as well as our own Sacramento lobbyist to protect our interests.
Status: Staff is aggressively working to prevent a shift in local property taxes.
We are also looking for every opportunity to reduce costs within our agency.
This year we were able to achieve $2 million in cost savings through the
concerted efforts of our staff. A description of these cost savings is contained ✓
in a separate memorandum to the Board of Directors accompanying the
budget document.
5. SARI Line —With the certification of the EIR in July and the completion of
design work in early 2010, the bidding, award, and construction of the $100
million SARI relocation project should take place in February 2010. Estimated
construction completion is February 2012. A financing agreement is in place
with the County of Orange, OCSD, and SAWPA. OCSD will continue to
pursue federal and state funding to reimburse our agencies for this project.
Status: The SARI relocation project is on schedule to go out to bid for
construction in March 2010. The Army Corps of Engineers received $27
million in the Presidents FY 2010 budget to expedite completion of work on
the Santa Ana Mainstem Project including Prado Dam and the SARI line.
Moreover, the Army Corps of Engineers made the significant decision to tie
the relocation of the SARI line to Mainstem improvements and increased
storage behind Prado Dam. This decision should help expedite federal
funding to the project. Board leadership and staff, working with our
Washington, D.C. lobbyist, played an important role in raising Congressional
awareness of the importance of relocating the SARI line.
6. Capital Improvement Plan 2008-2009 — During the 2008-2009 fiscal year
staff will manage seventy-three (73) projects with an annual expenditure of
360 million dollars. Our goal is to meet all schedules, stay within Board
approved budget, and to manage change orders at 5% or less.
Status: We are on track to spend $280 million (80%) of the $360 million
budgeted for this year. The change order rate for projects completed since
2004 dropped to 7.4% and will further drop to 5% as current construction
projects are completed.
7. Training —The third session of our Leadership Academy training program
completed in May 2009. Nearly 60 EMT, managers and supervisors have
completed the program. The program will develop leadership skills, build our
bench and prepare for the future.
Board of Directors
Page 4
June 24, 2009
Status: The fourth Leadership Academy session will start in July 2009. A
fifth and final session will occur later in the year.
8. Internal Audit—At the direction of the Administration Committee's Audit
Oversight Subcommittee, the auditing firm of Lance Soil and Lunghard
r reviewed the collection and remittance of capital facilities capacity charges
(CFCC) by member agencies during FY 2007-08. LSL found that while there
were problems calculating CFCC fees owed to the Sanitation District, the
- amount was less than $20,000.
Status: The audit was completed and results presented to the Administration
— Committee in June 2009.
9. Biosolids— In accordance with our Strategic Plan, staff will prepare an RFP to
— explore long-term alternatives for the remaining one third of our biosolids
production that is not committed to long-term contracts. Through this process,
staff will also look at new markets and new technologies to deal with our long-
term needs.
Status: Staff is monitoring the availability of sustainable cost-effective
alternatives for the remaining one third of our biosolids that is currently not
committed to a long-term contract. With the downturn in the economy, the
impetus for private sector vendors to bring new technologies into the
marketplace has slowed considerably. In addition, there has been no
opposition to land application of biosolids in Arizona. Therefore, staff is
holding off on the RFP for the time being and is managing the remaining one
third through the lowest-cost altemative—land application in Arizona--
consistent with Board policy and our Long Range Biosolids Master Plan.
r
10. Safety and Security— Final design of our facility security and alert systems is
in progress with project completion estimated to take twelve (12) to eighteen
(18) months. Staff is pursuing federal funding to help in this endeavor. Staff
will work with OCWD to develop a comprehensive, coordinated security plan
between our respective agencies.
Status: Design of a new security Fence along the North perimeter of Plant
No. 1 is currently underway with Phase 1 of the project scheduled to begin
construction later this year. We are in the process of upgrading plant
emergency alarm and PA systems to insure 100% coverage of our facilities.
The Department of Homeland Security conducted a vulnerability assessment
of Plant 1 and offered a $194,000 grant to OCSD to help pay for upgrades to
our security systems.
Board of Directors
r Page 5
June 24, 2009
r
11. Design Build —With the approval of SB645 in 2008, staff selected
rehabilitation of the Magnolia trunk sewer line as our first design build project.
With the assistance of an outside consultant, documents are being prepared to
solicit proposals for the project.
Status: Draft design-build documents were completed and solicitation of
Statements of Qualifications for Design-Build teams is on track for June 2009.
Staff submitted to the State of California under legislation passed in 2009 a
.. request to pursue a second design-build project to rehabilitate the interplant
digester gas line. i/
.. 12. GWRS —The Joint Steering Committee comprised of OCWD and OCSD
Board members reduced the number of meetings during the fiscal year.
OCSD is committed to meeting our contractual obligations and is investigating
ways in which our respective agencies could possibly reduce operating costs
through cooperative purchasing, training, security, and maintenance
agreements. The Steve Anderson Lift Station (SALS) is on line and
completing startup testing. SALS provides additional flow to the GWRS
system, increasing the volume of reclaimed water by up to 20 mgd.
Status: OCSD O&M staff work daily with OCWD staff on routine coordination
issues and the management teams meet monthly. We made enhancements
to increase the level of security around the GWRS facility and our security
staffs meet regularly to ensure a safe and secure work environment
throughout our joint campus.
13. Employee Recognition Program — Our Human Resources division is
working with our management team to develop a comprehensive employee
recognition program designed to recognize exceptional performance and
create a positive work environment.
r Status: We made significant progress during the past year including creation
of a staff advisory committee to guide the development of the program. The
first recognitions are occurring in June 2009 as we honor with "Safety
Performer" awards six divisions that achieved perfect safety records during the
past year. EMT approved a revitalized IDEA (Incentives for District Employee
Achievements) Program to recognize employees who suggest cost-effective
ideas for improving and enhancing employee safety, working conditions and
work methods.
14. Air Quality—Staff is evaluating a@ematives for meeting new stringent air
emission standards established by the SCAQMD. Staff will identify a
Board of Directors
Page 6
June 24, 2009
technology, start the planning, and design process to demonstrate its
feasibility in order to meet a July 2010 regulatory deadline.
Status: Staff completed an evaluation of potentially feasible alternatives for
meeting new stringent air emission standards established by the SCAQMD.
Planning and design for demonstration testing of the most promising
. technology—a dual catalyst system—is underway in order to meet a July 2010
regulatory deadline.
15. Odor Control —Since 2002, OCSD has expended $36,558,000 on odor
control improvements, with an additional $1,220,000 budgeted for the next two
years. We are planning an additional $52,358,000 of odor control projects
over the next eight years in accordance with our strategic plan and Board
policy direction.
Status: In June 2009, the Board of Directors will consider awarding an interim
construction project to modify existing odor control scrubbers at Plant No. 1.
16. Cost Savings — Staff will continue to look for cost savings in all areas of our
operations, with a focus on cost containment in our health benefits programs.
Status: Despite a projected $13 million decrease in FY 2009-10 anticipated
revenues, we are able to present a balanced budget for consideration by the
Board of Directors. Deferrals in our capital construction program and lower
debt financing costs offset the revenue shortfall. With the state poised to take
away a portion of local government property taxes, staff proposes additional
budget adjustments of$3 million in FY 2009-10 to help close the budget gap,
including the elimination of vacant positions and the reduction of various
professional and contractual services. Additionally, staff identified $2 million in
operational cost saving measures during FY 2008-09. Details regarding these
measures are contained in a separate memorandum accompanying the
budget document.
17. Public Outreach —Staff will continue to expand our public outreach efforts
and ways to inform a variety of audiences about the critical services we
provide.
Status: To upgrade OCSD's outreach efforts, in the past year, our Public
.. Information Office produced an eight-minute "Making Every Day Possible"
overview video and a series of public service announcements for airing on
local cable channels, launched a formal Speakers Bureau and directed more
resources to community events and tours. As a result, in FY 2008-09, we
hosted or participated in more than 190 tours, speaking engagements, and
r
Board of Directors
r Page 7
June 24, 2009
r community events, resulting in face-to-face contact with almost 10,000
people. The number of tours and tour guests doubled from two years ago and
volunteer hours by employees rose by 50 percent from the preceding year as
well. Work is underway on a "Wastewater 101" video that will help educate
the public and tour groups about the processes involved in the wastewater
treatment process.
r
In conclusion, I am pleased with the progress we achieved this past year and I look
forward to working with the Board of Directors in the coming year as we take on new
r challenges facing this agency. With the continuing strong leadership of the Steering
Committee and our Board of Directors, and the dedicated support of our strong
executive management team and staff, we are ready to meet the challenge.
r
JDR:gg
r HWept\gmt,0101110 AdmInWG JAMER Wtw Repok to 11eM000 GM 51Mue repottt;MN-2009 Ywr,Eod Review of
A=mpl'shment dw
r
sl
r
r
r
r
Accomplishments FY2008-09
Attachment
Operational
• Strategic Planning At a workshop in July 2008, the Executive Management Team began
the Strategic Plan update process. After revising the Levels of Service
and updating strategic goals, the EMT presented the Strategic Plan to
the Board on October 15. The Strategic Plan was updated with Board
recommendations and the board of directors unanimously adopted the
5-year strategic plan update in November 2008
• Legislative Advocacy Staff worked with state and federal legislative consultants on a number
of key legislative issues and aggressively advocated seven bills. . On
the three highest priority issues, staff was successful in either passing
the bill or securing a veto. The Legislative Advocacy consulting
contracts were renewed at a reduced cost for an annual savings of
$36,000.
• EnerTec Operations The EnerTech synthetic coal production facility began accepting OCSD
biosolids November 2008 and is operating in test mode. The dedication
will occur on June11 to officially open the site.
• Reclaim SARI flows When the GWRS Independent Panel met in October, there were several
concerns about bringing the SARI Line to Plant 1 to increase water
production for GWRS, primarily because of Stringfellow. Based on
discussions with OCWD, our partner on this project, it was decided to
discontinue the project in light of adverse comments from the GWRS
technical advisory committee.
• Ocean Discharge Permit Application The application for the five year renewal of our Ocean Discharge
Process (NPDES) Permit was submitted to the Regional Water Quality Control
Board and EPA on April 1, 2009. The current permit will expire October
30, 2009. A public hearing will be held in our Board Room on Friday,
July 10, 2009.
Page 1 of 9
1 i 1 1 I I I I i I I I I I 1 1 I 1 I
Accomplishments FY2008-09
Attachment 2
• GWRS operation OCSD has sent approximately 83 MGD to the GWRS during FY2008-09
and the flow will increase after the Steve Anderson Lift Station is
operating. OCSD plans to send 104 MGD specification water to GWRS,
the Level of Service contained in the Strategic Plan.
• Effluent Disinfection Staff investigated opportunities to optimize the disinfection system,
which has included field tests and development of options and testing
plans. The NWRI Blue Ribbon Panel will meet again this July and after
receiving input from OCSD staff will make recommendations on our
proposals.
• Secondary Treatment and Final Effluent AugustlSeptember 2008, P1 moved to 100% secondary treatment. In
Quality October 2008, the District averaged final effluent with the lowest TSS
and BOD in its history, 25 mg/I and 33 mg/I respectively.
• Countywide Pollution Prevention C4P is one of the Enhanced Source Control Programs designed to
Partnership Program (C4P) protect the drinking water resources of Orange County by reducing the
discharge of emerging pollutants of concern from residential and
commercial sources through public outreach. OCSD partnered with our
25 member agencies and held a kick off meeting in June 2009. The
program includes dissemination of outreach materials through the cities'
existing media outlets, such as bill stuffers, public service
announcements, and newsletters. In comparison with direct mailing of
outreach materials to residences, the use of the cities' existing media
outlets will save OCSD approximately a million dollars a year.
• Public Information Office (PIO) To upgrade OCSD's outreach efforts, in the past year, PIO produced an
eight minute "Making Every Day Possible" overview video and a series
of public service announcements, launched a formal Speakers Bureau
and directed more resources to community events and tours. As a
result, in FY 2008-09, we hosted or participated in more than 190 tours,
Page 2 of 9
1 1 1 1 {
Accomplishments FY2008-09
Attachment
speaking engagements, and community events, resulting in face-to-face
contact with almost 10,000 people. The number of tours and tour
guests has doubled from two years ago and volunteer hours by
employees has also risen by 50 percent from the preceding year as
well. Work is underway on a "Wastewater 101" video for the coming
year that will help educate the public about the processes involved in the
wastewater treatment process.
• OCWD security Staff is working with Orange County Water District staff on the level of
security for our joint campus and treatment facilities. The agencies
reached agreement on access controls throughout the campus.
• Management System for Environmental Compliance obligations have been populated and a dashboard created.
Compliance ECAP Hazardous waste and auditing have been added to the site now totaling
nine compliance areas.
• Enterprise Information Technology Developed and published a three year Information Technology Strategic
Strategic Plan Plan based on the master OCSD strategic plan to guide acquisition and
management of hardware and software.
• IT Equipment Consolidation Information Technology consolidated over 50% of the server hardware
resulting in substantial hardware and energy savings and faster disaster
recovery times.
• Engine Emission Compliance Completed a study to evaluate alternatives for complying with lower
emission limits in the South Coast Air Quality Management's Rule
1110.2.
• Records Management In FY0809, Records Management handled 183 Public Records Act
Requests and 5 Subpoenas for Records. E-mail Management Training
was iven to ern to ees in each Division and work rou . Records
Page 3 of 9
Accomplishments FY2008-09
Attachment 2
Management Compliance Audits were completed for the General
Managers and Administrative Services Departments.
• Performance Dashboard The Performance Dashboard was automated by Information
Technology, and the responsible managers receive notifications through
a work-flow process every quarter to update the Levels of Service and
Goals from the Strategic Plan.
• Succession Management Succession Plan - Implement the succession management plan
including management training and the creation of a Leadership
Academy which has successfully trained. 56 staff.
• Employee Recognition Program Human Resources is developing a recognition program that will include
all current and future programs, such as the Incentives (for) District
Employees Achievements (IDEA) Program, the Volunteer Incentive
Program (VIP), and the safety Incentive Program.
• Human Resources and Safety and Health The Human Resources and Safety and Health Divisions Strategic Plans
Divisions Strategic Plans are in draft forth and will be completed in FY2008-09.
• Deferred compensation A focus group of staff and a consulting firm evaluated deferred
compensation programs and several financial advisory firths, and
selected ING Life Insurance Annuity Company as the new deferred
compensation provider. All deferred compensation accounts will
migrate to ING.
Ca Mal
• CIP Program Number and value of In FY 2008-09, we completed roughly $280 Million in capital
projects expenditures which is 80% of the CIP budget for the Fiscal Year. The
District managed a total of 80 large and small active CIP projects during
the Fiscal Year.
Page 4 of 9
1 1 1 1 1 1 I 1 1 I 1 1 1 1 l l 1 I I
Accomplishments FY2008-09
Attachment
• Other completed projects on-line Six large CIP projects were successfully completed and closed-out
during the Fiscal Year, with a combined value of over$150 Million.
These projects include: Effluent Pump Station Annex, Activated Sludge
Plant Rehabilitation at Plant No. 1, Bushard Trunk Sewer Rehabilitation,
Rehabilitation of District Siphons by Adding Air Jumpers, Fire
Suppression for Servers and Equipment, and Santa Ana River
Interceptor Protection/Repairs. In addition, nineteen small projects were
either completed or in construction during the Fiscal Year.
• Santa Ana River Interceptor(SARI) Line A $400,000 emergency repair to protect the SARI Line with rock was
performed in November 2008. In January 2009, TetraTech was
awarded the design contract for relocating the line for a project
managed by the Army Corps of Engineers, the County of Orange Flood
Control Division. The preliminary design is proceeding and the
Environmental Certification work is nearing completion. The relocation
will be complete in 2012.
• SALS completion and dedication The Steve Anderson Lift Station is in the commissioning process. The
station was dedicated on April 17, 2009 to our former Board Chair and
long-term Board member.
• Space Planning Study Recommendations O&M Staff moved out of Administration second floor area into the newly
constructed office area in the Control Center and into the Laboratory
Building. IT moved into the Administration second floor area in May.
ADA required work in the Control Center and walk areas around the
Laboratory are in progress.
• Facilities Master Plan update Engineering and Operations and Maintenance completed several
modules of the Facilities Master Plan. It is in draft form and is
scheduled for Board Approval in December 2009.
Page 5 of 9
Accomplishments FY2008-09
Attachment 2
• CIP Exchange Program with Korea In June 2008, two engineers from OCSD participated in the International
Wastewater Symposium organized by Environmental Management
Corporation, a Korean government agency, held in Seoul, Korea. In
August, two engineers from EMC were at OCSD for two months
observing OCSD's organization and practices. In the fall, OCSD
participated in an exchange program with the Environmental
Management Corporation of South Korea. This program involved
allowing two engineers from Korea to shadow OCSD employees and
participate in ongoing CIP project efforts. There was also time to discuss
issues facing OCSD and Korea and learn from each other's
experiences.
• Fuel Cell Demonstration Project An agreement has been executed to participate in multi-agency/private
Partnership to provide a test that will use Digester Gas to create
electricity for the facility and Hydrogen as an automobile fuel from a
clean source. This fuel cell is scheduled to be installed by December
2009.
• Security and Safety Improvements A new security wall along Ellis Street will be installed as part of Project
J-108, Temporary Upgrades to Plant Security Barriers. This project is in
design and is scheduled to be completed by the end of 2010.
Financial
• Debt issue and refinancing Despite the economy, Financial Management issued $200 Million of
.new money" debt at a true interest cost of 4.72 percent, 28 basis points
below target generating savings of$7 million. In addition, $196.6 million
of previously issued debt was refinanced at a lower rate generating first
year savings of$6.9 million.
• Bushard Street Construction mediation The project work is complete and final settlement of pipe related claims
settlement was finalized in March of 2009.
Page 6 of 9
Accomplishments FY2008-09
Attachment 2
• Grant funding/appropriations— The District received $300,000 in funding for the secondary treatment
CIP bringing the total amount received to just over$2 million. All funds
will be spent in 2009. An additional $5 million has been appropriated
for secondary treatment through the office of Senator Barbara Boxer.
• Interagency agreements The Irvine Ranch Water District is working with District staff on several
outstanding issues with financial impacts: solids costs; reserves; flume
adjustment calculations; and cash balances. The Santa Ana Water
Watershed Project Agency staff and District staff have been working for
over a year to negotiate the terms of a new agreement. A user rate
study was performed to provide financial data.
• Sell 1,808 acres in Kings Country The property has been listed and several inquiries have been fielded by
OCSD staff. No offer to purchase has been made. Efforts to sell the
property are still on-going.
• Sale of Excess Air Quality Emission Last year, the Board authorized staff to sell air quality emission
Reduction Credits reduction credits (ERC) that the District has maintained for several
years. To date, the District has sold —$4.2M worth of ERCs.
• Research Strategic Plan A five year Research Strategic Plan was completed which included the
input of an outside expert panel. Work has begun on the highest priority
projects identified in the Plan.
Groundwater Replenishment System Awards
• Stockholm Industry Water Award International award presented by the Stockholm International Water
Institute that honors and encourages business sector contributions to
sustainable development in the water sector.
• Coastal Preservation Award Presented by Orange County Coastkeeper
Page 7 of 9
1 1 1 1 1 1 1 I I I 1 1 1 1 1 1 1 1 1
Accomplishments FY2008-09
Attachment 2
• Board President of the Year Presented by California Special Districts Association
• Toshiba Green Innovation Award Presented at the Innovation and Globalization Conference
• Grand Award Engineering Achievement Selected from six winners of the Outstanding Projects and Leader
(OPAL)Awards by the American Society of Civil Engineering
• Grand Conceptor Award Selected from winners of the Grand Awards by American Council of
fg(neering Companies for
Awards
• NACWA(National Association of Clean Presented to Source Control Division by NACWA along with Los
Water Agencies) Award Angeles County Sanitation District and City of Los Angeles "2008
National Environmental Achievement Award"for their collaborative and
innovative work on the "No Drugs Down the Drain Program"
• The 2008 Achievement of Excellence in The national award recognizes organizational excellence in government
Procurement (AEP) award procurement and contracting in the United States against a set of
nationally recognized professional standards that define procurement
excellence.
• Distinguished Budget Presentation Award Presented to Financial Management for exceptional budget by the
Government Financial Officers Association
• Certificate of Achievement for Excellence Presented to Financial Management for the Comprehensive Annual
in Financial Reporting Financial Report (CAFR) by the Government Finance Officers
Association
• Gold Peak Performance Award For treatment plants' 100% permit compliance by the National
Association of Clean Water Agencies
Page 8 of 9
1 1 l 1 1 1 1 1 i f I 1 i 1 1 1 1 1 1
Accomplishments FY2008-09
Attachment 2
• Excellence in Information Technology Presented to Information Technology by the Municipal Information
Practices Award Systems Association of California (MISAC)
• The Best Vibration Analysis Program of Presented to Simon Watson, Manager of Mechanical and Reliability
the Year Maintenance (Division 850) by Uptime Magazine
• Government Engineer of Merit Presented to Nick Arhontes, Director of Operations and Maintenance, by
the American Society of Civil Engineers
• Construction Engineering Distinguished Presented to Engineering Supervisor Chris Cervellone by the
Owner Honoree Construction Management Association of America (CMAA), Southern
California Chapter
• Operator of the Year Presented to Doug Hauser, P2 Senior Plant Operator, by the California
Water Environment Federation (Santa Ana River Basin Section).
HAdepBeed121MOLLINMEh1T-Bob GhirellM000mplbhmenls In Table FY200809 June B.d=
Page 9 of 9
m
0
� �
�R C
i
� a
u
�,eq1 � '�
` \ K `•
G*� V�
�!q o �
\ ` N °�
\`A{ F
\ 1
��\!ry`
li
\ t
�)
��yR1�\
\ !
r
y1V
49 ORANGE COUNTY SANITATION DISTRICT
nn
Memorandum
DATE: July 22, 2009
r
TO: Chairman and Members of the Steering Committee
'r FROM: James D. Ruth, General Manager
SUBJECT: 2009 Executive Management Team Strategic Planning Session
Summary
r On July 9, 2009 the Executive Management Team (EMT) held a strategic planning session to
discuss goals for the coming year. Against the backdrop of a state budget crisis threatening to
raid OCSD's property taxes and ongoing anxiety about the economy, the day focused on
dealing with these uncertainties to not only keep OCSD functioning smoothly but also support
the diverse staff that helps make every day possible in Orange County.
r This report provides a summary of the discussion and the follow-up items that will lead to the
2010 Strategic Plan and the 2009-2010 budget.
Attendance
The EMT retreat was held offsite at the Irvine Ranch Water District and was attend by the
following staff:
r
Jim Ruth General Manager
Bob Ghirelli Assistant General Manager
r Jim Herberg Director of Engineering
Lorenzo Tyner Director of Finance and Administrative Services
Nick Arhontes Director of Operations and Maintenance
r Ed Torres Director of Technical Services
Jeff Reed Human Resources Manager
Michael Gold Public Affairs Manager
r
Agenda
The agenda for the day covered a wide range of issues but focused on internal operations and
r staff support. This report will provide a summary of each agenda item:
• Implementing the fiscal year 2009-2010 budget
• 150 low cost ways to boost employee morale
• 2010 Strategic Plan update
• Succession management
`r • General management and organizational issues
2009 Executive Management Team Strategic Planning Session
Page 2
'~ July 22, 2009
Implementing the fiscal year 2009-2010 budget
State budget uncertainty
The EMT discussed the uncertainty of the state budget crisis and the possibility that OCSD's
property taxes could be borrowed by Sacramento to cover the $26 billion deficit. At the time,
the possibility of a property tax shift was still unknown, as was the amount. In recognition of the
r uncertainty, the group decided to focus on items they could control but be prepared for a range
of possibilities from Sacramento.
.. Staffing reductions and consolidations
Despite a decrease in staffing from 644 FIFE several years ago to 641 FTE today staff has done
a good job managing the $2.6 billion CIP and operating the treatment plants and collection
system. A focus of the next year will be on employee training and development and building the
bench for the future.
Risk register recommendations
Lorenzo Tyner distributed the near final version of the risk register prepared by his staff. Tyner
explained that the register highlights perceived risks to OCSD and because of global financial
uncertainty along with other events there are more disparate risks than the same time last year.
The group discussed the risk register and concluded:
. The risk register presents an opportunity for OCSD to put a stronger focus on its core
mission;
. The recommendations in the register should be incorporated into the 2010 strategic plan
and
. The EMT and Board of Directors should be briefed by the District's Risk Manager.
Proposals for cost-saving measures
r The group discussed several ideas for cutting costs in the near-term and how these proposals
could impact levels of services. After discussing a number of ideas, the group narrowed the list
and identified an EMT member to follow-up:
. Biosolids—outsource a company to dewater biosolids onslte. (Ed Torres).
. Disinfection—improve the mixing of effluent to reduce chemical usage. (Nick Arhontes).
,r . Secondary treatment—reduce mix of primary and secondary treated effluent sent to the
ocean to minimum permitted levels. (Nick Arhontes).
. Chemical usage—An in house team (headed by Mark Dubois) will study options to
reduce, eliminate or replace current chemicals.
• Corrosion/Odor control—hire outside consultant to study cost and impacts of reducing
chemical dosing. (Nick Arhontes).
. Effluent pumping —Shut off Ocean Oulfall Booster Station effluent pumping during low
flow periods. (Nick Arhontes).
. CIP—defer capital projects not yet under contract or construction. (Jim Herberg).
. Environmental management—as part of budget process, reduce regulatory monitoring
and transfer associated staff to higher priority activities. (Ed Torres).
2009 Executive Management Team Strategic Planning Session
Page 3
July 22, 2009
.. • Safety—reevaluate level of safety training and equipment needed to meet OSHA
requirements. (Jeff Reed).
Lone-term strategy to move OCSD off property taxes
Recognizing the annual vulnerability OCSD faces with the $60 million collected in property taxes
because of the state's budget problems, the group discussed the concept of moving the District
off property taxes.
• The EMT discussed a revenue neutral concept that for every dollar reduction in property
r tax collection there would be a dollar increase in sewer fee collection; thus removing the
funds vulnerable to the state.
• Jim Ruth agreed to discuss the concept with the county assessor and Lorenzo Tyner will
look more closely at the details.
Looking ahead to the upcoming two-year budget(2010-2012)
With a new two-year budget cycle beginning in one year, the group discussed preparing for the
new budget and how the process could be improved. The 2009-2010 budget update introduced
a new element—using budget analysts to assist each department. The suggested changes for
_ the coming year are:
• Training for the budget analysts and involving them in the process throughout the year,
not just during budget preparation time, so they are a resource for each department. Set
forth our expectations for what we want the budget analysts to do.
• Creating an overall model of how the process will work then rolling it out to the agency
so there is better understanding of the analysts' role and the overall budget process.
• Utilizing existing staff or hiring business analysts to increase efficiencies throughout the
organization (change agents).
• Better management of the legal budget in the coming year by refreshing the procedures
for requesting legal advice and better tracking, possibly through a gatekeeper to log all
requests.
150 low cost ways to boost employee morale
Human resource and public affairs staff generated 150 low cost suggestions to boost employee
morale. These suggestions were further refined by HR staff and discussed by the EMT. Jeff
`. Reed identified the top six gems that could be implemented quickly:
• Staff BBQs with the managers cooking;
• Birthday cards or calls from the general manager;
• Employee of the month or a spotlight on an employee;
• Lunch or coffee with the general manager;
• Creating "onboard buddies"with newly hired staff. The onboard buddy is an existing
staff person who will assist the new person become more familiar with OCSD and
• Staff wellness programs.
2009 Executive Management Team Strategic Planning Session
Page 4
r July 22, 2009
In addition to these suggestions, the group discussed additional ideas such as incorporating
some elements into the upcoming employee recognition program. Finally, the group discussed
additional morale boosting suggestions:
. The EMT discussed creating an OCSD shop with logo shirts, mugs, etc. that could be
purchased by employees;
• Creating an OCSD calendar with monthly themes and pictures of staff;
. Bring back an employee activity committee (or similar) and seek connections to the
employee recognition program;
r • Hiring a space planning consultant to identify workplace upgrades (restrooms, cubicles,
etc.) and
• Looking into a gate or opening on the river levee so employees can take walks on the
-� bike path.
2010 strategic plan update
The group reviewed the status of current goals and levels of service and identified the elements
as either being completed or on track for completion by the target date. Two items the group
noted:
• The goal of"reclaiming the SARI line flows"will be put on hold (as opposed to canceling)
pending state review of water recycling policy.
. The level of service identifying odor complaints at P2 was off significantly and the group
discussed whether the target number should be higher when the plan is updated in
November.
Suggestions for new strategic goals
Looking ahead to the 2010 strategic plan update, the EMT brain stormed on ideas for new goals
and identified the division or person responsible.
Goal Lead Division or Person
Q;, ,. - Public Affairs
Replacing rtY tax revenue with rates Lorenzo Tyner
Safety -
Achieving CaIOSHA Voluntary Protection Program eligibility Safety
r in three ears MI rr,,,,��yy�����((����,,y��,,.�,
mah)l'.YJG4Y w Y MYLY'
Staff procedures Human Resources
bb
r • Succession management
• Core values
• Leadershi develo ment
r
r
r
2009 Executive Management Team Strategic Planning Session
Page 5
July 22, 2009
. . .AD rw "0111venues Lorermo T
Opportunities for greater efficiency Mark Dubois
• Being more competitive with the private sector
(simulated bids to understand costs)
• As identified in the budget process, seeking
opportunities to increase business efficiency
(industrial Ord
Strategic approach to labor relations and negotiations Lorenzo Tyner
• Dealing with the big issues: health care and
retirement costs
• Getting comparison data from other agencies
• Understanding the political and economic
environment
Process and timeline for the 2010 strateoic plan update
The 2010 strategic plan update will require a new set of goal statements and issue papers as
well as a draft plan and workshop materials for the Board of Directors and Steering Committee.
The EMT proposed the following schedule for the plan update:
J —August Review issues and goals with EMT, managers and supervisors.
September PreeeM Pirimposed ocalis to stesting committee.
November Board consideration of the 2010 strategic plan update
Succession management
Jeff Reed provided an update on the succession management program and the group
discussed the 13 leadership competencies. Following the discussion, the EMT decided to make
the following changes to the list of competencies:
r
2009 Executive Management Team Strategic Planning Session
Page 6
July 22, 2009
r • Collapsing oral communication and listening into one category;
• Adding to organizational awareness, working within organizational structure;
• Ability to perform under pressure and stressful situations and
r • Degree that an individual is a self-started, motivator and is a risk-taker.
Management and organizational issues
The EMT discussed a number of organizational issues, with a focus on human resources. The
HR related issues were:
• Personnel investigations—creating a step for HR to facilitate discussions between the
employee and their supervisor prior to a formal complaint investigation and reinforcing
the message with manager and supervisors that it is their responsibility to deal with the
r issues and not just send to HR. If the supervisor cannot deal with the issue, HR will
intervene.
Outreach — HR will play a more visible role in the organization with involvement in events
.. (volunteers), staff meetings and bereavements. The overall goal is for HR to be more
transparent and humanistic. Also HR will also look into:
o Do a customer service satisfaction survey;
o Convene an employee advisory committee and
o Create service levels and a suggestion box.
Management compensation ohilosophv
.• The EMT discussed the new management compensation philosophy:
• Compensation will be based on the market and tied to leadership, performance, core
r values and strategic goals;
• Compensation is competitive: comparisons based on market median including base
pay, non-base pay, and benefits (total compensation package);
• There will be differentiations in compensation between the manager, supervisor and
their subordinates. The general manager committed to at least 5 percent distance
between the two.
Improving hiring practices
Jeff Reed explained that improvements to the District's hiring practices are an element of the
.. new human resources strategic plan. In addition, with some good ideas coming from one of the
leadership academy project teams, HR committed to meeting with them to follow-up on their
suggestions for improving hiring practices. Reed also reemphasized HR's new onboard buddy
program (identified early).
Labor negotiations
The EMT discussed upcoming labor negotiations and their approach. Some key points from the
discussion were:
• Overall goal is to have greater EMT involvement in the process;
r • Inform the bargaining units that they need to provide specifics, not just a laundry list of
their wants;
2009 Executive Management Team Strategic Planning Session
Page 7
July 22, 2009
. As mentioned earlier, negotiations should be more strategic, in the context of the current
political and economic climate and
. Managers need to be strategic as well thinking about the issues that need to be
addressed in the upcoming SPMT negotiations.
Other issues
Finally, the EMT discussed a number of miscellaneous matters:
. Jim Herberg discussed a District-wide project management office(PMO)for all projects.
Herberg will assemble a team to identify the best way to make this happen and bring the
issue to a future EMT meeting for discussion.
. Ed Tortes discussed the need to be prepared for possible Federal funding of a large-
scale fuel cell power generator. The group decided to ask staff or hire a consultant (not
to exceed $50,000)to prepare a conceptual plan demonstrating OCSD's ability to deploy
fuel cell power generation onslte.
. Jim Herberg presenting information on growth and demographic changes in Orange
County and how it will impact capacity. Herberg explained that based on flow
projections, it appears OCSD has adequate capacity through 2030, with or without
SAWPA and IRWD
. Ed Torres raised the issue of treating urban runoff and how the county may request that
we remove the 4 mgd threshold. The group decided that this topic merits more
discussion so Torres will bring forward an agenda report to a future EMT meeting.
JDR:RPG:gg
H:Weptvnq\IJ01110 AdminWUrH"ES4taWs Repods to Boats WP nnil Session Rep mJuly 09 doos
n �.�
n
n
n
n
n
n
n
n
n
n
n
n
n
ORANGE COUNTY SANITATION DISTRICT
i Memorandum
DATE: June 17, 2009
TO: Chair and Members of the Board of Directors
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Orange County Sanitation District
SUBJECT: 2009-10 Budget Update
I am pleased to submit this update to the Orange County Sanitation District (OCSD)
2009-10 approved operating budget and capital improvement program. This
document provides a framework for OCSD activities during the second year of the
adopted two-year budget for fiscal years 2008-09 and 2009-10 and serves as a
source of information for the OCSD's Board of Directors, and our employees and
ratepayers.
At the May and June Administration and Operation Committee meetings, staff
presented budget information that described the OCSD's overall budget, including its
revenues, expenditures as well as opportunities for significant re-budgeting and
operational efficiencies.
In addition to providing resources to support the processing of nearly 230 million
gallons of wastewater each day from 2.5 million residents and businesses, the
Strategic Plan focused on four distinct program areas: Biosolids, Air Quality, Odor
Control, Groundwater Replenishment (GWR) System.
This budget update also addresses rising treatment and chemical costs, aging
_ infrastructure and increased regulatory requirements. As a result, the operating
budget is increased by 5.9 percent above what was approved last year as the second
year of the adopted two-year budget.
Although the printed budget document was provided to the Board Members in June,
at the Committee meetings, I expressed my desire to include additional budget
adjustments. I believe that these adjustments prudently address the OCSD's lower
than anticipated revenues, specifically from capital capacity facilities charges,
property tax revenues and interest income.
Board of Directors
Page 2
June 17, 2009
In this memorandum, I will summarize three levels of budget adjustments I propose
to include in the budget update:
1) Re-budgeting efforts currently included in the printed budget update
2) Operational efficiencies included in the printed budget update
3) Additional proactive measures to further address declining revenues
1) Re-budgeting — $6.0 million
After completing the budget process, staff identified areas where expenditures are
less than the budgeted amount. Although these expenditures have fluctuated in the
past, we now feel that there has been sufficient experience that allows us to reduce
the budget without significant risk to operations. These areas include:
a) Digester Cleaning — $1.6million
,r b) Chemical Purchases — $1.4million
c) Solids Disposal — $1.4 million
d) Utilities — $1.1 million
e) Repairs and Maintenance — $0.3 million
f) Professional Services and Administrative Expenses — $0.2 million
2) Operational Efficiencies — $2.0 million
As part of the annual budget process, staff is tasked with reviewing its existing
activities for opportunities to realize operational savings by changing existing
processes. Staff identified five major areas where operational efficiencies can be
implemented:
a) Professional/Contractual Services — $700,000
b) Staffing Efficiencies — $500,000
c) Training — $300,000
d) Computer Equipment and Service Agreements — $200.000
e) Other Expenditures— $200,000
3) Proactive Measures —$3.0 million
To ensure that the decline in revenue has been adequately addressed, I propose
additional reductions beyond those initially included in the budget presented to the
Board. These reductions include:
a) Reduction in Temporary Staffing — $1.0 million
The budget is reduced from $1.5 million to 0.5 million.
Departments will be required to prioritize and absorb the existing workload.
b) Reduction in Vacancies — $1.0 million
The initial budget included an increase of seven full-time equivalent positions.
Board of Directors
r Page 3
June 17, 2009
I propose to keep the current authorized staffing level flat by reallocating
existing vacancies to address new operation and maintenance workload.
c) Reduction in Professional Services —$0.7 million
The OCSD spends approximately$3.5 million in this area.
I propose a 20% reduction by eliminating various discretionary efforts.
d) Reduction in Other Expenditures—$0.3 million
Various supplies, materials and conferences will be reduced.
I believe that the budget, with these proposed adjustments, sets out a financial and
operational plan that provides efficiency and stability for OCSD.
JDR:gg
NWaElg IIMI10 PbnnMU1H"..EBVA 3(plSC09 M 17 BW n20 1=Bu U�AM
r
r
r
r
S/GN-/N SHEET
ORANGE COUNTY SANITATION DISTRICT
STEERING COMMITTEE MEETING
Meeting Date ` q a 14
NAME ORGANIZATION/FIRM
leaseprint) leaseprint)
r alwl oc-
L
N:`llEGTAGENMMMERING COMMIT1 MIGN�IN FORM X COWI TEEOOC
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 2009 Steering Committee meeting to be held on July
22, 2009, was duly posted for public inspection in the main lobby of the District's offices
on July 15, 2009.
IN WITNESS WHEREOF, I have hereunto set my hand this 15th day of July
2009.
Lili�ovac
Associate Clerk of the Board
Orange County Sanitation District
HDEPTIAGENDA%POSTING�STEERING POSTING CERTIFICATION FORM.000X
Zt" ORANGE COUNTY SANITATION DISTRICT
t+
e
10844 elc Arenue
Foume2i c4 July 15, 2009
s2y00 nB-]01B
Mdnns Aaarese
Pp Bn.8127
Fowrcain"alley I:4
B2?PM12J
www.oaedcom
F ne
i7141 98 2 2411 NOTICE OF MEETING
Fe.
(714)B82a358 STEERING COMMITTEE
selmne
a,anaan
Brah ORANGE COUNTY SANITATION DISTRICT
see.Per*
C�-
FxmmeiUe°a, WEDNESDAY, JULY 22, 2009— 5:30 P.M.
Fullermn
Genan Gi}rva
Hmmnywn Beach ADMINISTRATIVE OFFICES
a,n,b 10844 ELLIS AVENUE
to Hama FOUNTAIN VALLEY, CALIFORNIA 92708
Lx PeMa wW W.00SD.COM
tm Alemm�e
Nea,h rt Bearh
&e've A regular meeting of the Steering Committee of the Orange
County Sanitation District will be held at the above location, date
Sanm Aca and time.
Seal Beech
Sm„mn
ivabn
wia van,
ouaw M.Sentryosoi'x
Midway oiy
Santry 12.,1
h"m6 Recah
W9fe�'fasma
� GwngMOenNe
11
M pm public heakh and Me anW,ronmen[by providing eff c me,aaaw collection, "a"an:, and re lin o .yc 9
STEERING COMMITTEE AND BOARD
MEETING DATES
August 26, 2009
September 23, 2009
October 28, 2009
'November 18, 2009
'December 16, 2009
January 27, 2010
February 24, 2010
March 24, 2010
April 26, 2010
May 26, 2010
June 23, 2010
July 28, 2010
-Meetings being held the third Wednesday of the month.
STEERING COMMITTEE
(1) Roll Call:
Meeting Date: July 22, 2009 Meeting Time: 5:30 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
BradHogin, 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, Public Affairs Manager.......................................—
Penny Kyle, Clerk of the Board........................................... ._
Other Staff Present
AGENDA
REGULAR MEETING OF THE STEERING COMMITTEE
ORANGE COUNTY SANITATION DISTRICT
WEDNESDAY, JULY 22, 2009 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
• ..Proposed goals for 2009/10
REPORT OF GENERAL COUNSEL
ACTION ITEMS
1. Approve minutes of the June 24, 2009 Steering Committee meeting.
INFORMATION ITEMS
2. Public Affairs Monthly Update (Gold) (Book Page 7)
CLOSED SESSION
Rook PaLe I
July 22, 2009
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. EXISTING LITIGATION
(Subdivision (a) of Section 54956.9)
Case: Thuthuy Nguyen vs. Orange County Sanitation District(WCAB No.:ADJ1906593)
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 August 26, 2009 at 5:30 p.m.
Book Page 2
July 22, 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 item or because there is a need to take immediate action,which need came to the attention of the
Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the
manner as above, not less than 72 hours prior to the meeting date.
Public Comments: Any member of the public may address the Steering Committee on specific agenda
Items or matters of general interest. As determined by the Chair, speakers may be deferred until the
specific item is taken for discussion and remarks may be limited to three minutes.
Matters of interest addressed by a member of the public and not listed on this agenda cannot have action
taken by the Committee except as authorized by Section 54954.2(b).
Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion
or further explanation, and unless a particular item is requested to be removed from the consent calendar
by a Director of staff member,there will be no separate discussion of these items. All items on the
consent calendar will be enacted by one action approving all motions,and casting a unanimous ballot for
resolutions included on the consent calendar. All items removed from the consent calendar shall be
considered in the regular order of business.
The Committee Chair will determine if any items are to be deleted from the consent calendar.
Items Continued: Items may be continued from this meeting without further notice to a Committee
meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3).
Meeting Adiournment: This meeting may be adjourned to a later time and items of business from this agenda
may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government
Code Section 54955(posted within 24 hours).
Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair accessible. If you
require any special disability related accommodations, please contact the Orange County Sanitation District
Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must
specify the nature of the disability and the type of accommodation requested.
Notice to Committee Members:
For any questions on the agenda or to place any items on the agenda, Committee members should contact the
Committee Chair or Clerk of the Board ten days in advance of the Committee meeting.
Committee Chair: Doug Daven (714)318-9550
General Manager: James D. Ruth (714)593-7110
General Counsel: Brad Hogin (714)415-1005
Clerk of the Board: Penny Kyle (714)593-7130
E-mail: 2hyli @ocsd.cem
Book Page 3
MINUTES OF STEERING COMMITTEE MEETING
Orange County Sanitation District
Wednesday, June 24, 2009, at 5:30 p.m.
A meeting of the Steering Committee of the Orange County Sanitation District was held on
Wednesday,June 24, 2009, at 5:30 p.m., In the District's Administrative Office.
A quorum was declared present, as follows:
STEERING COMMITTEE MEMBERS: Ed Torres, Director of Technical Services
DIRECTORS PRESENT: Lorenzo Tyner, Director of Finance
Doug Davert, Chair and Administrative Services
Larry Crandall, Vice Chair Michael Gold, Legislative Affairs Liaison
Bill Dalton, Operations Committee Chair Jeff Reed, Human Resources Manager
Mark Waldman,Administration Committee Mahin Talebi, Source Control Manager
Chair Penny Kyle, Clerk of the Board
Jim Ferryman Angela Brandt
Phil Luebben Juanita Skillman
David Shawver
OTHERS PRESENT:
STAFF PRESENT: Brad Hogin, General Counsel
Jim Ruth, General Manager Leslie Daigle, Alternate Director
Bob Ghirelli,Assistant General Manager Dick Ackerman
Nick Arhontes, Director of Operations and Andy Chan
Maintenance Michelle Hart
Jim Herberg, Director of Engineering Dale Bogen
PUBLIC COMMENTS
Public comments were delayed until consideration of Agenda Item No. 2.
COMMITTEE CHAIR REPORT
Chair Doug Davert reported on a tour of the Groundwater Replenishment System taken by
Attorney General Jerry Brown on June 17, and an open house held by EnerTech in Rialto on
June 11. It was also reported that he and Vice Chair Crandall were planning to travel to
Washington, DC,from July 7— 10. Vice Chair Crandall was recognized who gave an update on
the Ad Hoc Recognition Committee and advised their recommendations would be coming to the
Steering Committee in July for consideration.
Book Page 4
Minutes of the Steering Committee
June 24, 2009
Page 2
GENERAL MANAGER REPORT
Jim Ruth, General Manager, provided a brief overview of his monthly status report.
GENERAL COUNSEL REPORT
There was no report.
ACTION ITEMS (1)
1. MOVED, SECONDED AND DULY CARRIED. Approve minutes of the May 20, 2009
Steering Committee meeting.
INFORMATION ITEMS (2 -3)
2. Supplemental Capital Facilities Capacity Charge— Baseline
The following spoke in support of Jazz Semiconductor's request for transfer of the flow
baseline established by Conexant to Jazz Semiconductor which was denied by the i
Board of Directors in 2005: Michelle Hart, Orange County Business Council; Alternate
Director Leslie Daigle, Newport Beach;Andy Chan, Jazz Semiconductor; and, Dick
Ackerman, Attorney for Jazz Semiconductor.
3. Legislative Affairs Report(Gold)
Michael Gold provided a brief update on the state budget's struggle for approval, and the
possible issuance of I.O.U.'s the following month.
CLOSED SESSION (4)
4. CONFERENCE WITH LEGAL COUNSEL RE.ANTICIPATED LITIGATION (Government
Code Section 54956.9(b))
Significant Exposure to Litigation
Number of Potential Cases: 1 -Re. Jazz Semiconductor—Jazz Semiconductor has
taken the position that Jazz is legally entitled to Conexant's SCFCC baseline.
The Steering Committee convened at 5:55 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.
Book Page 5
Minutes of the Steering Committee
June 24, 2009
Page 3
ADJOURNMENT
The next Steering Committee meeting is scheduled for Wednesday, July 22, 2009, at 5:30 p.m. The
Chair declared the meeting adjourned at 6:25 p.m.
Submitted by:
Penny M. Kyle
Clerk of the Board
Book Page 6
STEERING COMMITTEE Meeting Date To ad.of DR,
olt/zz/os
AGENDA REPORT emNumber RanNumbe
z
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Michael Gold, Public Affairs Manager
SUBJECT: Public Affairs Monthly Update
GENERAL MANAGER'S RECOMMENDATION
Information Only
SUMMARY
This report is the monthly Public Affairs Division update that includes legislative and political
information from Washington, D.C. and Sacramento, lobbyists' activities, and outreach
education and communication programs to member cities, employees and the public.
PRIOR COMMITTEE/BOARD ACTIONS
None
ADDITIONAL INFORMATION
Federal Legislative Report
Eric Sapirstein, ENS Resources
Federal political update
During the month of June, the District's activities centered upon the appropriations process,
renewal of the Clean Water Act infrastructure assistance program, climate change, and
chemical security issues. Former State Water Board Member Pete Silva's nomination to
become the Assistant Administrator for Water Programs remains on hold as Senators use the
confirmation vote as leverage to address other issues of concern. While many hope he is
confirmed before the August recess, we do not know when the confirmation will be up for a vote.
Of keen interest to OCSD is the Senate energy bill that may receive floor action this month and
includes incentives to support alternative energy(such as OCSD's proposed fuel cell power
project)and could offer financial assistance to the District to develop such a project in the
coming years.
Efforts to move climate change legislation continued in the Senate following House approval at
the end of June. Senator Barbara Boxer, sifting as chair of the Environment and Public Works
Committee, is developing legislation and she announced that the bill will be introduced on
September 8 with committee action occurring a few weeks later. At this point we do not know if
the bill will move through the Senate because of significant opposition to the cap and trade
program that Boxer is considering. We expect that a program to provide POTWs with
adaptation assistance will be included in the legislation, which could help OCSD mitigate
possible flow issues resulting from climate change(drought, sea level changes, etc.).
Form No.D 10 1 Iq,gag -Sc
wnra.ormcar
Page 1
Book Page 7
The Senate Committee on Appropriations approved EPA's program budget on June 25. This
year, OCSD did not receive any support for our$5 million secondary treatment upgrade
request. As a matter of fact, no California wastewater treatment programs were funded through
this program and we believe this is due to the misperception that federal stimulus funds already
provided funded to wastewater programs.
In general, we continue to monitor developments related to the implementation of ARRA and the
Buy American mandate. New assistance for energy projects and financing were announced
which were forwarded to the District to determine potential funding opportunities related to
energy recovery and District operations.
State Legislative Report
Christopher Townsend, Heather Dion and Casey Elliott,Townsend Public Affairs
State political highlights
The Legislature returned to Sacramento after July 4 holiday break and failing to pass a budget
by the mandated deadline. While the big five legislative leaders(the Governor and the four
legislative caucus leaders) met over the holiday weekend for several hours to find a solution,
they could not find common ground and Speaker Bass walked out of the meetings.
At the time of this report, the Democrats and Republicans do not appear close to finding a
solution and do not seem to be in any hurry to resolve the crisis. By missing the July 1 deadline
to pass a budget, the State added to the deficit by failing to cut education expenses so the total
now stands at just over$26 billion. Also, after July 1, the Governor starting pushing for large
policy changes that he believes will save the State additional money in the future. Specifically,
the Governor is now requesting fingerprinting and stricter security measures for the State's In-
Home Support Services program; modifying the State's pension system and suspending the
Proposition 98 minimum education funding guarantee. These additional items have drawn
protests from Democratic leaders and caused overall delays in passing a budget.
It is also worth noting that Senate President Pro Tern Darrell Steinberg announced the Senate
would be suspending all committee hearings until a budget solution is in place. This action
freezes all Assembly bills, regardless of the author or policy and since the deadline for policy
committees to hear bills was July 10, it is likely that the Senate will need to suspend the rules to
let committees meet and decide the fate of many bills left hanging.
Both houses are supposed to adjourn for the summer recess on July 17 but with the unresolved
budget, it is not yet known if they will stay in Sacramento until their work is done or take things
up later.
Specific activities for the month
• TPA continues to work with CSDA, the LOCC and ACWA to fight any proposed local
government property tax borrowing measures that might be considered by the Governor
and the Legislature to help close the $26 billion deficit. This work includes advocating
with the Legislature about the need to keep local governments as fiscally whole as
possible during these challenging economic times and the impacts that a property tax
shift would have on local governments trying to provide local services and infrastructure.
FOM No.r 1ob1 ppe,aa Re -SC
PwxE OIN10]
Page 2
Book Page 8
• TPA worked on an OCSD Lobbying Day focused on protecting the District's property tax
revenues. This trip was canceled per the District, but TPA did follow up with the
legislative offices on the potential property tax shift and the Impact to the District should
such a borrowing occur. Also, TPA delivered OCSD's letter opposing a property tax
borrow and thanking those members that have also expressed opposition to borrowing
property taxes from local government.
• TPA continues to monitor SB 555(Pavley) legislation that would have mandated
stringent water recycling rules. Amendments have been offered by the Planning and
Conservation League and CASA that are being taken under consideration. However,
with the budget unresolved,this may become a two-year bill.
Outreach, Education and Communication Activities
New lobby displays
This month, new kiosks and lobby displays have been installed as part of the incremental effort
to improve the educational information available to OCSD visitors. As our tour numbers
increase each year,the lobby has become more of focus to visitors. These new displays
demonstrate how OCSD serves the residents of Orange County and protects the environment.
In addition to the new lobby displays, the Honor Walk at the front entrance will be installed soon
and additional improvements will occur over the next year.
Tours and outreach—the numbers keep growingl
With the new fiscal year beginning on July 1, the Public Affairs Division is proud to report our
outreach numbers for the past year.
Our tour numbers grew by nearly 20 percent over last year with 137 tours. In terms of number
of guests, 1,838 people came through OCSD last year to see our facilities. Eleven of these
tours were to international guests.
OCSD reached out to youth and the community through various events and programs. For
example, staff conducted two weeklong sewer science programs to high school and middle
schools, participated in the Orange County Science and Engineering Fair and worked with
MWDOC and the OCWD to hold middle school kids at Water Camp. Through our educational
programs, we have reached hundreds of students, ranging in age from third grade through
junior college.
Staff also participated in six community events, such as the Fountain Valley Summer Fast,
Earth Day and the Cypress Environmental Fair
In addition to tours and outreach, Public Affairs staff put together 12 Chat Rooms (lunch time
discussions on various topics for staff). The Chat Rooms were very successful with 577
attendees.
Throughout the year, staff will report to Steering Committee highlights from the Public Affairs
Division.
Fom,NO.O 10l 1 P0wv19 Re -SC
Rwif 01N 7
Page 3
Book Page 9
2009 Legislative Tracking
Bill Number Summary Position* Status
AB 815(Me) This bill requires a public agency to provide full,complete and accurate plans and spec, cations to bidders Oppose In Senate LOcel
and that the agency assumes responsibility for the accuracy of those plans. A redo of AS 983(Me)from Government
2008,which OCSD opposed.
AS 969(Calderon) This bill modifies the Recycled Water Act of 1991 to establish goals for recyding an unspecified percentage Watch Held in committee
of water by 2020
AB 1100(Duvall) This bill allows the bottling of potable demonstration water for educational purposes and to promote water Support Passed first
recycling. (Note:this bill is aimed at allowing the bottling of GWRS water for demonstration and educational committee now in
purposes only). OCWD is sponsor Senate
Environmental
Quality
AB 1366(Feuer) This bill allows a local agency that maintains a community sewer system,to control salinity from residential Support Passed first
water softeners, if the regional water quality control board makes findings that reducing salinity would committee now in
achieve water quality objectives. Senate
Appropriations
SB 261 (Dutton) This bill requires an urban water supplier to develop a conservation plan or achieve high efficiency water use Watch In Assembly
g and provide financial incentives to support water use efficiency and local water resources management Parks and Wildlife
p measures.
ry
c SB 28 fSimilian) This bill would require the California Slate Board of Pharmacy to coordinate with local agencies and drug Support Being held in
manufacturers to develop programs managing pharmaceutical wastes and disposal.Authorizes pharmacies Senate
to accept home-generated prescription drugs. appropriations
SB 413(Duchenvl This bill imposes fees on wastewater dischargers for the purpose of preparing regional water quality control Oppose Being held in
plans. Senate
appropriations
SB 565(Pavlev) Requires the Stale Water Resources Control Board to develop a plan ensuring that 50%of wastewater Watch/Requesting In Assembly
discharged into the ocean would be recycled and put to beneficial use. Requires the State Board to impose a Amendments Parks and Wildlife
fee on ocean discharges to implement the program.
SB 711 (Lang) Requires the disclosure of written communications prior to entering into closed session regarding labor Oppose Held in committee
negotiations.
Rim No.DMI0 l nyenda Report-Sc
RMbed.110.1 Page 4
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