Loading...
HomeMy WebLinkAbout01-24-2018 Steering Committee Agenda Packet.pdf01/24/2018 Steering Committee Agenda Page 1 of 4 AGENDA CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker’s Form (located at the table at the back of the room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. REPORTS: The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. • GWRS Steering Committee/OCSD Wastewater Ordinance Discussion CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the Regular Meeting of the Steering Committee held December 20, 2017. NON-CONSENT: 2. LABOR COMPLIANCE PROGRAM MANUAL AND RESOLUTION (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 18-01, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District to Approve and Adopt the Labor Compliance Policies and Procedures Manual Dated January 24, 2018 to be Utilized During the Construction of Grant Funded Projects”. Orange County Sanitation District Regular Meeting of the STEERING COMMITTEE Wednesday, January 24, 2018 5:00 P.M. Administration Building Conference Rooms A & B 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 01/24/2018 Steering Committee Agenda Page 2 of 4 3. RESTRUCTURING OF GENERAL MANAGER’S OFFICE (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: A. Create a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and B. Upon the retirement of the existing Assistant General Manager, appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. 4. GENERAL MANAGER’S FY 2017-2018 WORK PLAN MID-YEAR UPDATE (Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: Receive and File the General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update and Cost Savings Measures Memo. INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board 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 Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 18350 Mt. Langley St. Fountain Valley, CA APN Nos. 156-154-08 and 156-163-17 10950 Virginia Cir. Fountain Valley, CA - APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA - APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA - APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA - APN No.156-165-06; 01/24/2018 Steering Committee Agenda Page 3 of 4 18370 Pacific St. Fountain Valley, CA - APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA - APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA - APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA - APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA - APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA - APN No.156-154-07; 18386 Mt. Langley St. Fountain Valley, CA - APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA - APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA - APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA - APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA - APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA - APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA - APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA - APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Tom Grant; Kevin Turner and John Gallivan, Cushman and Wakefield. Negotiating parties: K & A Investments LP, APN Nos. 156-154-08 & 156-163-17 Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. (2) PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957(b)(1)) Number of Employees: 1 • General Counsel RECONVENE IN REGULAR SESSION. 01/24/2018 Steering Committee Agenda Page 4 of 4 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, February 28, 2018 at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are 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) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted outside the main gate of the Sanitation District’s Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District’s website at www.ocsd.com, 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 the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714) 593-7433 klore@ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714) 593-7300 jherberg@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Director of Engineering Rob Thompson (714) 593-7310 rthompson@ocsd.com Director of Environmental Services Jim Colston (714) 593-7450 jcolston@ocsd.com Director of Finance and Administrative Services Director of Human Resources Lorenzo Tyner Celia Chandler (714) 593-7550 (714) 593-7202 ltyner@ocsd.com cchandler@ocsd.com Director of Operations & Maintenance Ed Torres (714) 593-7080 etorres@ocsd.com 12/20/2017 Steering Committee Minutes Page 1 of 4 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, December 20, 2017 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman Sebourn on Wednesday, December 20, 2017 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: Greg Sebourn, Board Chair Chad Wanke, Administration Committee Chair John Withers, Operations Committee Chair Ellery Deaton, Member-At-Large Tim Shaw, Member-At-Large Donald Wagner, Member-At-Large COMMITTEE MEMBERS ABSENT: David Shawver, Board Vice-Chair (excused absence) STAFF PRESENT: Jim Herberg, General Manager Bob Ghirelli, Assistant General Manager Celia Chandler, Director of Human Resources Rob Thompson, Director of Engineering Jim Colston, Director of Environmental Services Ed Torres, Director of Operations & Maintenance Lorenzo Tyner, Director of Finance & Administrative Services Kelly Lore, Clerk of the Board Angela Brandt Jennifer Cabral Michael Dorman Dean Fisher Al Garcia Tom Grant Tina Knapp Kathy Millea Jeff Mohr Andrew Nau Tyler Ramirez Jim Spears OTHERS PRESENT: Brad Hogin, General Counsel Daniel Fears (Payne & Fears), Special Counsel Roger Cerda (Alston & Bird), Special Counsel ITEM NO. 1 09/28/2016 Steering Committee Minutes Page 2 of 4 PUBLIC COMMENTS: Chair Sebourn stated that Mr. Robert Danko, General Counsel for Aseptic Technologies, LLC, will speak prior to Item No. 4. No other public comments were provided. REPORTS: Chair Sebourn provided an update and thanked all who attended today’s Special Director’s tour highlighting OCSD’s Capital Improvement Projects and Operations and Maintenance of both Plant Nos. 1 & 2. General Manager Jim Herberg provided information regarding the Sewer Service Fees & Charges on tonight’s Board of Directors agenda. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on November 15, 2017. AYES: Deaton; Sebourn, Shaw, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shawver and Wagner 2. ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 17-18, entitled, “A Resolution of the Board of Directors of Orange County Sanitation District Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 17-08.” AYES: Deaton; Sebourn, Shaw, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shawver and Wagner NON-CONSENT: 3. DISTRICT 6 TRUNK SEWER RELIEF, PROJECT NO. 6-17 (Rob Thompson) Engineering Manager, Dean Thompson provided an informative PowerPoint presentation explaining the processes and explained the requested contingency. 12/20/2017 Steering Committee Minutes Page 3 of 4 Director Wagner arrived at the meeting at 5:10 p.m. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a contingency increase of $369,930 (10%) to the construction contract with Charles King Co., Inc. for District No. 6 Trunk Sewer Relief, Project No. 6-17, for a total amount not to exceed $739,860 (20%). AYES: Deaton; Sebourn, Shaw, Wagner, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shawver 4. DEFERRED PAYMENT AGREEMENT REQUEST FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) Robert Danko, General Counsel of Aseptic Technology LLC, spoke against the item; requested a 90-day plan to pay off the delinquency; and explained plans for the company’s recovery. Director of Finance and Administrative Service Lorenzo Tyner provided information leading to staff’s recommendation, including a history of the previous two deferred payment agreements. After discussion, the Committee proposed an alternate recommendation. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Deny the request for a 3rd deferred payment agreement for charges and fees owed for sanitary sewer service charges from Aseptic Technology, LLC. Negotiate a resolution whereby the permit for Aseptic Technology, LLC will be extended for 90 days in order for Aseptic to become current with their payments, subject to receiving acceptable security as approved by General Counsel and Staff. AYES: Deaton; Sebourn, Shaw, Wagner, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shawver INFORMATION ITEMS: None. 12/20/2017 Steering Committee Minutes Page 4 of 4 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(d)(1): The Committee convened in closed session at 5:32 p.m. to discuss five items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:58 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Sebourn declared the meeting adjourned at 5:59 p.m. to the next Steering Committee meeting to be held on Wednesday, January 24, 2018 at 5:00 p.m. Submitted by: __________________ Kelly A. Lore, CMC Clerk of the Board Page 1 of 2 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: LABOR COMPLIANCE PROGRAM MANUAL AND RESOLUTION GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 18-01, entitled: “A Resolution of the Board of Directors of the Orange County Sanitation District to Approve and Adopt the Labor Compliance Policies and Procedures Manual Dated January 24, 2018 to be Utilized During the Construction of Grant Funded Projects.” BACKGROUND The Orange County Sanitation District (Sanitation District) is the recipient of two $1 million grants from the Proposition 84 Integrated Regional Water Management Program. The two awarded projects are Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101; and Newhope-Placentia Trunk Sewer Replacement, Project No. 2-72. The grant agreement requires the Sanitation District to ensure compliance with California Labor Code requirements including preparation and implementation of a Labor Compliance Program (LCP). While the Sanitation District’s construction contracts already require contractors and their subcontractors to comply with the California Labor Code, the Sanitation District does not have a formal and comprehensive LCP in place. In accordance with requirements of California Labor Code section 1771.5(b) and Title 8, Division 1, Chapter 8, Subchapter 4, of the California Code of Regulations, the Sanitation District must have an LCP in place approved by the California Department of Industrial Relations for all projects funded in whole or in part by Proposition 84. An LCP consists of an approved enforcement manual, regular monitoring and review of certified payroll records, audits, site visits, worker interviews, annual reports, project completion close-out reports, etc. The two awarded projects are well into construction so retroactive monitoring and reporting is necessary for full compliance. RELEVANT STANDARDS • Sound engineering and accounting practices, complying with local, State, and Federal laws Page 2 of 2 PROBLEM The Sanitation District currently does not have an approved LCP as required by State law for projects funded by Proposition 84. By not having an approved LCP, the Sanitation District is not in full compliance with State grant requirements and agreements. PROPOSED SOLUTION Implement a Labor Compliance Program for full compliance with grant requirements. TIMING CONCERNS The two projects are currently in construction, thus requiring retroactive review of records and submittal of multi-year annual reports to the Department of Industrial Relations. A delay would cause additional retroactive work to be performed, thus resulting in higher costs to be in compliance. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will be in violation of Proposition 84 grant agreement requirements and could potentially be required to refund the $2 million awarded. PRIOR COMMITTEE/BOARD ACTIONS October 2017 - Approved a Professional Service Agreement with The Solis Group for the development and implementation of a Labor Compliance Program. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 18-01 • Labor Compliance Policies and Procedures Manual (electronic document) DC:dm OCSD 18-01-1 RESOLUTION NO. OCSD 18-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT TO APPROVE AND ADOPT THE LABOR COMPLIANCE POLICIES AND PROCEDURES MANUAL DATED JANUARY 24, 2018 TO BE UTILIZED DURING THE CONSTRUCTION OF GRANT FUNDED PROJECTS WHEREAS, on June 28, 2017, the Board of Directors adopted the Fiscal Year 2017-18 Orange County Sanitation District (Sanitation District) budget; and WHEREAS, the Sanitation District regularly applies for and receives grant funding for certain projects; and WHEREAS, the Sanitation District is required to approve and adopt a Labor Compliance Program as a condition of some State and Federal grants, whereupon the adopted Labor Compliance Program must be reviewed and approved by the California Director of Industrial Relations; and WHEREAS, the Sanitation District’s professional Consultant, The Solis Group, has prepared a Labor Compliance Policies and Procedures Manual, which encompasses the Labor Compliance Program for the Sanitation District’s grant funded projects; and WHEREAS, grant guidelines stipulate that the projects must comply with the Labor Compliance Program approved and adopted by the Orange County Sanitation District and the California Department of Industrial Relations; and WHEREAS, the Sanitation District has reviewed the Labor Compliance Policies and Procedures Manual and finds the Labor Compliance Program to be adequate to meet the requirements of grants, including Proposition 84 grants. NOW THEREFORE, the Board of Directors of the Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The Board of Directors hereby specifically finds that all the facts set forth in this resolution are true and correct. Section 2: The Board of Directors hereby approves and adopts the Labor Compliance Program, developed by The Solis Group, as detailed in the Labor Compliance Policies and Procedures Manual, dated January 24, 2018, to be utilized during construction of any project which includes funding by a grant. Section 3: The Clerk of the Board shall certify to the passage and adoption of this resolution and enter it into the book of original resolutions. OCSD 18-01-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held on January 24, 2018. _________________________________ Gregory C. Sebourn, PLS Board Chairman ATTEST: ___________________________ Kelly A. Lore, CMC Clerk of the Board OCSD 18-01-3 STATE OF CALIFORNIA ) ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18-01 was passed and adopted at a regular meeting of said Board on the 24th day of January 2018, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24th day of January 2018. Kelly A. Lore, CMC Clerk of the Board of Directors Orange County Sanitation District Page 1 of 4 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 3 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: RESTRUCTURING OF GENERAL MANAGER’S OFFICE GENERAL MANAGER'S RECOMMENDATION A. Create a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and B. Upon the retirement of the existing Assistant General Manager, appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. BACKGROUND Bob Ghirelli has announced his retirement effective August 30, 2018, having provided Orange County Sanitation District (Sanitation District) with leadership as a department head and Assistant General Manager (AGM) for nearly 20 years. Dr. Ghirelli’s retirement provides an opportunity to reevaluate our organization to improve and streamline the management structure to best position the Sanitation District for the future. The General Manager is recommending a revised organizational structure to address Dr. Ghirelli’s departure and to align with our agency’s strategic goals. With the above recommendations in place, the total number of filled Executive Management Team (EMT) positions would decrease by one. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times PROBLEM The upcoming retirement of the AGM creates a leadership void. Additionally, as our agency’s strategic goals are now focused on infrastructure maintenance, resource recovery, and operational resiliency, our leadership structure and succession plan need to align with our capabilities and strategic priorities, while being cost effective. Page 2 of 4 PROPOSED SOLUTION Create a second AGM position to oversee O&M and Engineering Departments. Backfill the current AGM position assuming oversight of Finance & Administrative Services and Environmental Services, and hold one EMT position vacant. TIMING CONCERNS The AGM will retire August 30, 2018. The General Manager recommends implementing the proposed succession plan now to maintain leadership continuity. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District would miss the opportunity to improve and streamline our management structure. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The proposed second AGM position will lead the Engineering and O&M Departments. Overall responsibility for master planning, Capital Improvement Program (CIP) project delivery, operations, maintenance, and asset management will be under this new AGM. Given that Engineering and Maintenance have interconnected responsibilities, these divisions must be closely aligned and integrated to ensure clarity of roles and responsibilities. This proposed position will be filled from within the agency so that the total number of EMT positions will not increase. This person will continue their duties as head of their department and will also serve in the AGM capacity. Also, upon the current AGM’s, Bob Ghirelli, retirement, it is proposed that his successor oversee the Finance & Administrative Services Department and the Environmental Services Department. This AGM will have responsibility for all the Sanitation District’s finances, purchasing, contracts, information and technology functions, environmental and financial auditing, agency compliance, and other general administration functions. This change will improve coordination, alignment, efficiency and clarity of roles and responsibilities. This structure aligns with our vision for a sustainable future as we deliver on resource recovery, infrastructure rehabilitation/refurbishment/replacement, and operational resiliency. This structure also frees up the General Manager to focus more externally and Page 3 of 4 maximize interface with our Board of Directors, industry organizations, other agencies, and our influential public. Human Resources will continue to report directly to the General Manager, as it is important to ensure objectivity and fairness in employee relations and to maintain effective and productive labor relations with represented units. This direct reporting relationship also recognizes the importance of our safety programs. Below is a summary of the future direction of the Sanitation District which will be supported by this organizational structure. Keeping up with growth and delivering major improvements in level of service In the 1980's and 1990's, our service area was growing at a steady rate and so were our flows. Keeping up with ever increasing flow and loading was the focus of much of our advanced planning and capital improvements. As the 1990's rolled into the new millennium, our focus shifted to major increases in our level of service including: 1) large scale recycling through the GWRS; 2) disinfection of our ocean discharge; 3) treatment of urban runoff; 4) full secondary treatment; 5) improved odor control; 6) diversification of our biosolids recovery programs; and 7) compliance with more stringent safety codes such as NFPA 820, SCAQMD Rule 1110.2 and air toxics rules. These changes to our level of service required hundreds of millions of dollars in capital investment and long term operational changes. Looking ahead – Maintenance Mode (Six Rs) Post 2012, we are a resource recovery agency focused on maximizing the production of energy, fertilizer, and clean water from our influent flow. And, with lower flows and aging infrastructure, much of our capital improvements and ongoing operational costs will be focused on infrastructure maintenance, asset management, and resiliency. The old lines of division between CIP projects and maintenance will be less distinct as our CIP becomes more focused on rehabilitation, refurbishment, replacement, and resiliency - all while we are recovering valuable resources from our flows. Asset Management must work across department boundaries The Engineering Department focuses on planning and constructing infrastructure projects. Many of these projects rehabilitate or extend the useful life of existing facilities. The Maintenance Divisions ensure reliable operations by planning and conducting preventative maintenance and corrective repairs, as well as expanding condition based monitoring efforts to improve reliability. In doing this, the Maintenance Divisions are also extending the useful life of our facilities. Essentially, Engineering and Maintenance are ensuring that the Operations Divisions can reliably collect and process flows. To most effectively accomplish this, strong alignment between these divisions must exist to ensure clarity of roles and responsibilities. Clarity and alignment will enable us to ensure reliable operations of our facilities at the lowest lifecycle cost. Page 4 of 4 The General Manager’s intention is that the Sanitation District’s organizational structure matches our focus on safety, succession planning, asset management, resource recovery, and resiliency. CEQA N/A FINANCIAL CONSIDERATIONS The expected additional cost for the second Assistant General Manager is equivalent to a step increase, which is typical for a promotion, estimated at $12,000 per year. The estimated salary savings from holding an EMT level position vacant once the current AGM position is filled by an existing department head in FY 2018-19 is $200,000 per year. ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 1 of 2 STEERING COMMITTEE Meeting Date 01/24/18 To Bd. of Dir. 01/24/18 AGENDA REPORT Item Number 4 Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER’S FY 2017-2018 WORK PLAN MID-YEAR UPDATE GENERAL MANAGER'S RECOMMENDATION Receive and File the General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update and Cost Savings Measures Memo. BACKGROUND Each year, the General Manager prepares a work plan of activities to be accomplished during the fiscal year. Attached is the mid-year update for the General Manager’s FY 2017-2018 work plan. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times • Highly qualified, well trained, motivated, and diverse workforce • Biosolids, Odor, and Energy Master Plans • Use practical and effective means for recovering energy, wastewater for reuse PRIOR COMMITTEE/BOARD ACTIONS September 2017 - Presentation of the General Manager’s FY 2017-2018 Work Plan to the Steering Committee and Board of Directors for approval. ADDITIONAL INFORMATION The General Manager’s work plan includes goals for the fiscal year. At mid-year, one out of 14 work plan items were completed and 12 items are on track to be completed by or prior to the end of the fiscal year and the deadline of the overall work plan. CEQA N/A FINANCIAL CONSIDERATIONS All items included in the General Manager’s Work Plan are budgeted in the FY 2017-2018 Budget. Page 2 of 2 ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update • Cost Savings Measures Memo ORANGE COUNTY SANITATION DISTRICT Memorandum January 24, 2018 TO: Chairman and Members of the Board of Directors FROM: James D. Herberg, General Manager SUBJECT: General Manager’s Fiscal Year 2017-2018 Work Plan Mid-Year Update I am pleased to present the mid-year update for my Fiscal Year 2017-18 work plan. The work plan includes fourteen goals organized under five focus areas including safety and security, succession planning, resource recovery, reliability and operational resiliency. The work plan was reviewed with the Steering Committee in August 2017. 1. Safety and Security • Cyber Security: Continue efforts started in FY 2016-17 to increase investment in resources to thwart any threats and ensure operational continuity and reliability. • Implement findings of consultant report on cyber-security risks. • Build/maintain bench of qualified IT cyber-security staff. • Replace outdated switches in the industrial control system (ICS) network that are unable to support the newer, more secure, communication protocols. UPDATE: Staff completed the purchase and implementation of Varonis, a security software system, to audit file sharing in the network that serves the treatment plants as well as increase the security of all engineering laptops. Staff continues to work with the Process Control Integration (PCI) team on internal/ICS traffic flows. The teams are also researching and evaluating solutions to provide better visibility of ICS devices and when changes occur on the network. A proof of concept/pilot is underway in the test environment. Staff also continues to address the growth of cyber security threats by building and maintaining a bench of qualified cyber-security staff. This year, we reallocated staff to strengthen the overall cyber security and reliability of our organization by protecting critical business assets. We also participate in local organizations like the Southern California Alliance of Publicly Owned Treatment Works, (SCAP) Cybersecurity Committee. Page 2 The Department of Homeland Security audit identified 12 switches that have been classified as “end of life” by the manufacturer and have a severe security vulnerability. Staff ordered the Cisco replacement switches and will work with the PCI team to complete the configuration and installation. The joint PCI/IT team has agreed on a configuration and installation schedule with an estimated completion before the end of the current fiscal year. • Safety Engineering Solutions and Physical Site Security: Continue the Safety Improvement Project efforts, and implement physical site security enhancements as needed to ensure all facilities remain secure. UPDATE: The Safety Improvement Project efforts that were grouped into 18 construction projects are in various phases of completion. Four packages are in the construction phase, three packages are in the bid phase, six packages are in the design phase, four packages are in the pre-design phased and one package is in the chartering phase. All Plant No. 1 site security upgrades have been reviewed and approved by management. Plant No. 2 site security upgrades are under review and will be submitted for management approval during the 3rd quarter of the fiscal year. • Voluntary Protection Plan (VPP) Certification: Complete a full review and audit of all Safety and Health policies, and implement the new safety software module. Conduct a third-party VPP readiness assessment and draft a VPP implementation plan by June 2018. UPDATE: The new Medgate Safety Management software module is being implemented, will be completed by June 2018, and will go live in July 2018. All safety policies will be reviewed and updated during the 3rd quarter and the VPP assessment will be conducted during the 4th quarter. 2. Succession Planning • Workforce Planning and Development: Implement changes to the recruitment and selection process that continue to decrease time-to-fill. Deploy semi-annual workforce vulnerability assessments to all departments so that they can identify vulnerable positions, and leverage existing technologies to provide the organization with tools to develop and manage key talent and talent loss due to retirements. UPDATE: Further changes were made to the recruitment and selection process to continue to decrease time-to-fill. Changes include pilots for inhouse assessment scoring and the posting of positions by job family to capture more qualified applicants for other vacant positions for which they may be qualified. Human Resources staff will Page 3 schedule meetings with Department Directors in early 2018 to discuss their mid-year workforce vulnerability assessment efforts. Information from these meetings will be summarized and reported to the General Manager. • Staffing Study: Conduct a comprehensive staffing study that identifies required staffing levels and opportunities to improve organizational efficiency and effectiveness. Develop the scopes of work with all internal stakeholders for the studies and have the consultant(s) procured by June 2018. UPDATE: The scope of work for the staffing study will be completed in January 2018 and the RFP process to procure the consultant(s) will begin by June 2018. 3. Resource Recovery • Food Waste: Issue a request for proposal (RFP) for a Professional Design Services Agreement for the Interim Food Waste Receiving Facility Project. UPDATE: The RFP for a Professional Design Services Agreement for the interim Food Waste Receiving Facility Project is on schedule for advertising by the end of February 2018. 4. Reliability • New Electrical Safety Standards and Lubrication Program: 1) Develop a plan and schedule to begin implementation of changes to the preventative maintenance program, including identifying labor and resource needs, for the electrical distribution system based upon new electrical safety standards and for legacy assets not currently in the new maintenance management system (MAXIMO). 2) Develop a program and schedule for implementing a comprehensive machinery lubrication and oil analysis program for rotating equipment. UPDATE: 1) Staff identified Preventative Maintenance (PM) and Job Plan gaps and developed new Job Plans based on new standards. Staff has prepared an estimate of resource impacts and a Scope of Work (SOW) for external resources required for additional testing and preventative maintenance, and additional predictive maintenance (PdM) procedures for the electrical distribution systems based on industry and safety standards. 2) Staff has developed a SOW for an RFP to select an appropriate consultant to conduct a Lubrication Study that will develop recommendations to implement an effective District-wide lubrication program. The lubrication study will conduct a quantitative assessment, re-engineer and deploy a database of lubrication best practices on approximately 1300 lubricated rotating equipment assets. The Lubrication Study is scheduled to be completed by May 2018 Page 4 and once the finalized recommendations have been submitted, job plans and routes in MAXIMO will be setup to conduct lubrication PMs. • Fleet Business Plan: Recommend a Fleet Business Plan to the Board of Directors that will include replacement policy recommendations considering regulatory requirements, green fleet criteria and fleet best practices. UPDATE: The consultant completed a review of the current inventory and business practices including a list of business recommendations. A fleet vehicle make-up and alternative fuel strategy (with three options) will be delivered in February 2018. • Operational Resiliency: Finalize an agency-wide Continuity of Operations Plan that identifies the most critical business and operational functions that ensure the Sanitation District remains operational during a major disaster and/or emergency. Present the findings and plan to the Board of Directors no later than May 2018. UPDATE: A consultant was retained to work with staff to facilitate completion of the business continuity plan. The first training session with the consultant is scheduled for January 22nd for divisions to begin entering and populating the updated database with division specific information and actions that will constitute the plan. • Seismic: Continue the seismic study of the Sanitation District’s Plant Facilities, completing the sub-surface exploratory work and engineering analysis to develop strategies to mitigate seismic vulnerabilities. UPDATE: The seismic study of Sanitation District’s Plant Facilities is on schedule to complete the sub-surface exploratory work and geotechnical engineering analysis by June 2018. 5. Operational Optimization • Rates: Complete a comprehensive rate study to determine the proper allocation of costs among user types and a recommended future rate plan including Capital Facilities Capacity Charges and Industrial User Charges. Present a 5-year rate program for residential, commercial and industrial users for Board consideration in April 2018. UPDATE: The Rate Study was completed and presented to the Administration Committee and Board in December 2017. The Board directed staff to issue notices to parcel owners regarding the new rate program. The new rate plan is on schedule to be considered by the Board in March 2018. Page 5 • OCSD Headquarters Building: Complete the Final Concept Design for the Headquarters Complex. Complete the Preliminary Design and begin Detailed Design for the Ward and Garfield Perimeter Improvements. UPDATE: The Concept Study for the Headquarters Complex and the Preliminary Design for the Ward Street and Garfield Ave Perimeter Improvements are expected in May 2018. • Dental Amalgam Rule: Create oversight program to implement new federal dental amalgam rule by June 30, 2018. UPDATE: Dental offices within the Sanitation District’s service area must submit a Compliance Report to the Sanitation District. The program implementation to-date includes creation of a Dental Office Point Source Category website (OCSD.com/Business tab), compliance reports posted to the website, FAQ’s are 90% complete, professional groups have been contacted for stakeholder feedback and the initial notification letter has been drafted for a proposed January 2018 mailing. • National Laboratory Certification: Implement laboratory procedures and corrective measures in response to national laboratory certification audit and obtain final certification by June 2018. UPDATE: This goal is completed. In November 2017, the Sanitation District laboratory was granted full National Environmental Laboratory Accreditation after an extensive application process and on-site audit of all analytical standards and procedures. ORANGE COUNTY SANITATION DISTRICT Memorandum January 24, 2018 TO: Members of the Steering Committee FROM: James D. Herberg, General Manager SUBJECT: Cost Savings Measures As the Board of Directors prepares to consider a new rate program in 2018, I want to share with you some of the many cost saving measures implemented during the past five years. Our ratepayers want to know they are getting a good return on their investment and that we are spending their fees to produce substantial benefits. In an effort to reduce costs, our employees are always looking for innovative ways to be more resourceful and efficient while ensuring we maintain our high standard of customer service. The following list is a sample of some cost saving measures that support our overarching goal to contain costs and limit long-term liabilities to the Orange County Sanitation District (Sanitation District). FINANCIAL MANAGEMENT • Beginning in 2014, the Sanitation District issued four debt financing refunding obligations that generated a total of $67 million in net present value savings due to the lower interest rate environment. • After issuing a request for proposal of custodian banking and investment management services, we have retained new firms with an annual cost savings of $667,000. • Since paying off the Sanitation District’s Unfunded Actuarial Accrued Liability (Pension) over three years, the employer premium retirement contribution rate has decreased 72 percent since FY 2014-15. • Transitioning to an insurance risk pool with California State Association of Counties resulted in a $700,000 cost savings in comparison to the open market. • We continue to maintain a AAA bond rating. ENVIRONMENTAL SERVICES • After 12 years of certification, the Sanitation District became a Platinum Plus Graduate of the National Biosolids Partnership certification program and began the transition to our own internal set of performance standards for our Biosolids Program. This created an annual cost savings of $200,000. Page 2 • After ten years of disinfecting our ocean discharge, we worked with State and Federal regulators to cease the disinfection process, yielding an annual savings of $600,000 in chemical costs, while improving the health of marine life near the Sanitation District’s ocean outfall. WORKFORCE OPTIMIZATION • While increasing our level of treatment to meet full secondary standards, and operating and maintaining nearly $600 million in new facilities, the Sanitation District’s total authorized full-time equivalent (FTE) staffing level has decreased over the past ten years from 641 FTE in 2008-09 to 637 in 2017-18. • The Sanitation District built partnerships with local colleges to develop a Vocational Internship Program to build a pipeline of potential entry-level candidates. • To further ensure we have the right people with the right skills and abilities, we improved our recruitment process, speeding-up the time-to-fill for a vacant position and reducing the need for temporary staff and overtime. • We implemented a new performance based compensation system for Executive Management and Managers based on established goals and objectives. • We outsourced our Rideshare Program to include more accessible commute options, while increasing the average vehicle ridership and reducing air emissions. • The Incentives for Sanitation District Employee Achievement (IDEA) program provides a way for employees to submit innovative cost saving ideas that improve procedures, working conditions and work methods. The program has brought forth ideas from employees that have created over $2 million in annual savings. • Through our Building Leadership Abilities and Skills for Tomorrow (BLAST) program, we are preparing journey-level staff to take on future leadership positions, ensuring a bench of competent staff to run the Sanitation District in the future. • We are providing training – specific for first-year supervisors and staff who aspire to become supervisors – coaching and mentoring opportunities, job shadowing, professional and vocational internships, and tuition reimbursement to further ensure we have the right person, at the right time, in the right job. OPERATIONS AND MAINTENANCE • Optimization studies resulted in re-negotiation of the grit and screenings contract, cooling CenGen engines with plant water, reducing Ferric Chloride for digesters and overall peroxide usage, resulting in a cost savings of $2 million per year. • The move to full secondary treatment at the Plant No. 2 treatment facility yielded cost savings in liquid oxygen plant operations, bleach and bisulfite costs in the amount of $1 million per year. • A comprehensive energy audit found that we can save an estimated $700,000 annual savings in lighting costs within nine years. Page 3 • Implementation of cutting-edge catalytic converter technology helped to reduce emissions from the central generation engines which allowed all eight engines to operate simultaneously, creating an annual cost savings of $700,000 per year. ENGINEERING • We are nearing completion of sludge dewatering projects which will result in four less truckloads of biosolids per day yielding an ongoing savings of $3.7 million per year. • We received grant funds for several projects, reducing the cost of these projects by nearly $2.5 million: o Sludge Dewatering and Odor Control at Plant No. 1 ($1 million) o Newhope-Placentia Trunk Replacement ($1 million) o WaterSMART Grant to share with the Orange County Water District ($450,000) PLANNING FOR THE FUTURE • I am recommending organizational changes to the Steering Committee that will streamline our Executive Management Team and increase our focus on the rehabilitation and maintenance of our infrastructure, while better positioning our agency for leadership succession. 1290735.1 555 AN T O N B O U L E V A R D, SU I T E 12 0 0 C O S T A ME S A , CA 9 2 6 26 - 7 6 70 (714) 558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: January 17, 2018 RE: Closed Session Items The Steering Committee will hold a closed session on January 24, 2018 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: K & A Investments LP, APN Nos. 156-154-08 & 156-163-17; Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165- 04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin- Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03. The District’s negotiators are Jim Herberg, Bob Ghirelli, Lorenzo Tyner, Rob Thompson, Kathy Millea and Jeff Mohr, Tom Grant, Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respectfully submitted, By: ___________________________ Bradley R. Hogin, General Counsel CLOSED SESSION 1 1290736.1 555 AN T O N B O U L E V A R D, SU I T E 12 0 0 C O S T A ME S A , CA 9 2 6 26 - 7 6 70 (714) 558-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: January 17, 2018 RE: Closed Session Items The Steering Committee desires to hold a closed session on January 24, 2018 for the purpose of conferring for the evaluation of the District’s General Counsel. Said closed session will be held pursuant to authority of California Government Code Section 54957(b)(1). Respectfully submitted, By:_________________________ Bradley R. Hogin, General Counsel CLOSED SESSION 2 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA US Environmental Protection Agency FOG Fats, Oils, and Grease gpd gallons per day GWRS Groundwater Replenishment System ICS Incident Command System IERP Integrated Emergency Response Plan LOS Level Of Service MGD Million Gallons Per Day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O & M Operations & Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant/Construction Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm parts per million PSA Professional Services Agreement RFP Request For Proposal RWQCB Regional Water Quality Control Board Glossary of Terms and Abbreviations SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Interceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control And Data Acquisition SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF Clean Water State Revolving Fund SSMP Sewer System Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment & Reuse Foundation WIFIA Water Infrastructure Finance and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act WRDA Water Resources Development Act Activated sludge process – A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. Benthos – The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. Biochemical Oxygen Demand (BOD) – The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biogas – A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. Biosolids – Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Glossary of Terms and Abbreviations Capital Improvement Program (CIP) – Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria – A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system – In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) – A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) – Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D/T) – The dilution at which the majority of people detect the odor becomes the D/T for that air sample. Greenhouse Gases (GHG) – In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming (“greenhouse effect”). Groundwater Replenishment System (GWRS) – A joint water reclamation project that proactively responds to Southern California’s current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. Levels Of Service (LOS) – Goals to support environmental and public expectations for performance. N-Nitrosodimethylamine (NDMA) – A N-nitrosamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) – An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume – A visible or measurable concentration of discharge from a stationary source or fixed facility. Glossary of Terms and Abbreviations Publicly Owned Treatment Works (POTW) – A municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line – A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer – Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. South Coast Air Quality Management District (SCAQMD) – Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment – Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge – Untreated solid material created by the treatment of wastewater. Total Suspended Solids (TSS) – The amount of solids floating and in suspension in wastewater. Trickling filter – A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff – Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater – Any water that enters the sanitary sewer. Watershed – A land area from which water drains to a particular water body. The Orange County Sanitation District’s service area is in the Santa Ana River Watershed.