HomeMy WebLinkAbout01-13-2014 LaPA Agenda Monday, January 13, 2014
a 8:00 A.M.
Orange County Sanitation District Administration Building
Legislative and Public Conference Room A& B
Affairs Special Committee 10844 Ellis Avenue
Fountain Valley, CA
714 593-7130
COMMITTEE MEMBERS:
Troy Edgar (Los Alamitos)
Tom Beamish (La Habra)
David Benavides (Santa Ana)
John Nielsen (Tustin)
Brad Reese (Villa Park)
John Withers (IRWD)
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speakers Form and give
it to the Clerk of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports
on miscellaneous matters of general interest to the Committee Members. These reports
are for information only and require no action by the Committee.
• Washington D.C. Trip Report
• OCSD 601h Anniversary California Legislative Floor Recognition, Sacramento
CONSENT ITEMS:
1. Approve minutes for the Committee meeting held on December 9, 2013.
01/10/14 Legislative and Public Affairs Special Committee Page 1 of 2
INFORMATIONAL ITEMS:
2. State Legislative Affairs
3. Federal Legislative Affairs
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
ADJOURNMENT:
The next Legislative and Public Affairs Special Committee meeting is scheduled for
Monday, February 10, 2014, at 8:00 a.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)593-7130 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, 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.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to
the Clerk of the Board 14 days before the meeting.
Maria E.Ayala
Clerk of the Board
(714)593-7130
mavalaOmsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager James D. Herberg (714)593-7110 iherbem0ocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rahirelli(clmsd.com
0111314 Legislative and Public Affairs Special Committee Page 2 of
ITEM NO. 1
MINUTES
LEGISLATIVE AND PUBLIC AFFAIRS
SPECIAL COMMITTEE MEETING
Orange County Sanitation District
The Legislative and Public Affairs Special Committee meeting convened on
Monday, December 9, 2013, at 8:08 a.m. in the Administration Building of the
Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS STAFF PRESENT
PRESENT: Jim Herberg, General Manager
Troy Edgar, Board Chair Bob Ghirelli, Assistant General
Brad Reese, Administration Committee Manager
Chair Nick Arhontes, Director of Facilities
John Withers, Administration Support Services
Committee Vice-Chair Nick Kanetis, Director of Engineering
David Benavides, Director Jeff Reed, Director of Human
Resources
Lorenzo Tyner, Director of Finance &
Administrative Services
COMMITTEE MEMBERS ABSENT: Kelly Lore, Administrative Assistant
John Nielsen, Operations Committee Jim Colston
Vice-Chair Faviola Miranda
Joe Shaw, Director
VACANT, Board Vice-Chair OTHERS PRESENT:
Heather Stratman, Townsend Public
Affairs
David French, ENS Resources (via
teleconference)
PUBLIC COMMENTS:
None.
REPORTS:
General Manager, Jim Herberg, reported on his participation as a panelist at the
Water Infrastructure Town Hall meeting hosted by Assemblywoman Sharon Quirk-
Silva, held on December 3rd, regarding 2014 Water Bond. Mr. Herberg stated that
OCSD's message of recycling and of our accomplishments over the last few years
was very well received.
Minutes of the Legislative and Public Affairs Special Committee
December 9, 2013
Page 2 of 3
Director Withers reported that he attended the ACWA conference on December 3-
6, 2013, and stated that Assembly Member Anthony Rendon (Lakewood), Chair of
the Assembly Water, Parks and Wildlife Committee, provided a keynote speech at
the conference and is a point of contact for the Water Bond. It was the consensus
of the Committee to extend an invitation to the Assemblyman to visit the District in
the near future.
CONSENT ITEMS:
1. MOVED, SECONDED, and DULY CARRIED: Approve the corrected
minutes for the Committee meeting held on November 12, 2013.
INFORMATIONAL ITEMS:
2. 601h Anniversary - Faviola Miranda
Faviola Miranda, Senior Public Affairs Specialist, distributed OCSD's 601'
Anniversary Communications Plan to the Committee; introduced the 60"
Anniversary Logo and briefly discussed the theme, budget, objectives and
strategies of the plan. The Committee discussed and offered suggestions
regarding: giveaways; sponsorships; the importance of prioritization of the
intended audience and OCSD's intended message; a coffee table book and
a VIP reception.
3. State Legislative Affairs
Heather Stratman, Townsend Public Affairs, provided a political and
legislative update of the past month. She stated that Senator Huff had
taken the proposed legislative language to amend the District Act to
Legislative Counsel for consideration, and that a bill should be introduced
on February 22, 2014. Ms. Stratman further updated the Committee on:
LAO's $5.6 Billion Surplus and unfunded retirement pension liability
concerns.
Director Withers left the meeting at 8:40 a.m.
4. Federal Legislative Affairs
David French, ENS Resources, joined the meeting via teleconference. He
provided a federal update on the following: federal government shutdown;
federal budget; Water Resource Development Act (WRDA); Farm Bill; and
a US Bureau of Reclamation-Grant Opportunity.
Minutes of the Legislative and Public Affairs Special Committee
December 9, 2013
Page 3 of 3
Jim Colston, Environmental Compliance-Regulatory Affairs Manager,
provided a brief summary of the recent meeting with Cymantha Atkinson,
Government & Community Relations for the County of Orange, in regards
to public relations and outreach between the District and the County.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
Chair Edgar requested that Ms. Stratman provide an update on LAFCO at a future
meeting.
ADJOURNMENT:
The Chair declared the meeting adjourned at 8:50 a.m.
Submitted by:
Kelly A. Lore
Secretary Pro Tern
LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE N1eeling Dace
Item AGENDA REPORT Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Heather Dion Stratman, Townsend Public Affairs
GENERAL MANAGER'S RECOMMENDATION
Information Only.
SUMMARY
State Legislative and Political Update
The Legislature returned on Monday, January 6 to begin the 2014 legislative session.
The 2014 session is slated to be busy with carry-over legislation from 2013, newly
introduced legislation, disputes over the how to manage the financial windfall of 2013,
ballot measures and the November election. The proposed water bond will also need to
be dealt with. Currently there are three measures on the table for discussion including
the bond that has been in place since 2009, SB 42 (Wolk), and AB 1331 (Rendon). In
order to amend the bond that is in place or to move the proposed bond from the 2014
November ballot, a two-thirds vote will be required. All three measures have funding
included for water recycling infrastructure at varying amounts from $1 billion-$250
million. These funds would be distributed through competitive grants and would require
administrative guidelines to implement the grant programs.
CEQA reform will also be a reemerging issue in 2014. The Association of California
Water Agencies (ACWA) and the California Municipal Utility Association are partnering
to craft a legislative proposal that would exempt portions of recycled water pipelines
from CEQA. There is similar statue related to natural gas pipelines. The legislation is in
very early stages and there has not been an author identified yet. There has also been
discussion of including additional policy changes to CEQA that are beneficial to the
water community. ACWA and other stakeholders are still brainstorming what those
other goals may be. CASA will also likely be a partner in the proposed legislation.
The Legislature has several deadlines to meet between now and mid-February. For the
purposes of the Orange County Sanitation's District Act bill, the legislation was finalized
by Legislative Counsel just after the New Year and must be introduced by February
22ntl. The legislation could be introduced sooner than February 22"tl. At the point the
bill is introduced it will receive its first policy committee hearing date. The bill must be
heard in policy committee no later than May 91h and reported out to the Senate floor for
Page 1 of 2
a vote. From there the bill will travel to the Assembly to complete the same cycle,
before being sent back to the Senate for final concurrence.
We will be seeking co-authors from the Orange County Delegation to sign on in support
of the bill, from both the Senate and the Assembly. Additionally, we will be seeking
letters of support from members of the local government community including, but not
limited to, the Yorba Linda Water District, City of Yorba Linda, Orange County Business
Council, Association of Orange County Cities, and others.
Additional Items of Interest
• As follow up to OCSD's state and federal lobbying team meeting with the County
of Orange Legislative staff, Cymantha Atkinson, will be attending the February
10" LaPA meeting to introduce herself to the Board Members and give a short
presentation on the County's legislative goals and partnership efforts.
• OCSD's District Act legislation was finalized right after the New Year. However,
as of this writing the formal bill was not ready for distribution. Staff will provide a
hard copy of the legislation as a handout at the January 13� meeting.
• Additional outreach meetings to the Orange County Delegation are being
scheduled and will include:
o Senator Mimi Walters
o Assembly Member Allen Mansoor
o Assembly Member Travis Allen
o Assembly Member Don Wagner
o Assembly Member Curt Hagman
o Assembly Member Tom Daly
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
ATTACHMENTS
N/A
Page 2 of 2
ITEM NO. 3
Li �V
RESOURCES
MEMORANDUM
TO: Jim Colston
FROM: Eric Sapirstein
DATE: January 3, 2014
SUBJECT: Washington Update
The past month saw congressional action limited to the adoption of a two-year
budget agreement that establishes overall spending for domestic and defense
spending. As a result, it is expected that a final fiscal year 2014 spending bill will be
finalized and approved by January 15 when the present stopgap funding bill expires.
For fiscal year 2015, the appropriations process should be more predictable given
the framework created for overall spending. For the District, the situation may
improve prospects for Congress to provide federal agencies with spending priorities
for fiscal year 2015. This has been absent over the past several years because of the
lack of a federal budget.
Because of the shortened month, due to the adjournment of the first session of the
113TH Congress, activities that did occur were a function of setting the agenda for
the second session that commences January 7. Nonetheless, a number of activities
occurred of direct interest to the District.
Fiscal Year 2014 Appropriations
The House and Senate Committees on Appropriations began the task of assembling
a proposed package of agency spending bills to support programs through
September 30, 2014. The package would form the foundation of an omnibus
spending bill. This bill must be approved by Congress and sent to the President for
enactment not later than January 15 to avoid a government-wide shutdown. For the
District, the proposed spending package would lessen, if not eliminate, the need for
a second round of sequestration cuts. This is important because it means that
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reductions in Build America Bonds subsidy payments should not be required. In
addition, it appears that the House Committee on Appropriations' effort to impose
draconian reductions in federal water infrastructure assistance programs will not
materialize as the budget agreement provides enough latitude to avoid such cuts. It
seems increasingly likely that any agreement to support the Clean Water Act SRF
program and related infrastructure assistance will be closer to a billion dollars
instead of the House mark of $250 million. Additionally, the ongoing drought
throughout the west should provide the basis to maintain funding of programs that
support the development of alternative water supply projects; something the
District has identified as an area of interest.
WRDA Renewal Delayed by Disagreements on Alternative Infrastructure
Financing
Prospects that a conference committee would succeed by year's end to rewrite
WRDA evaporated last month. The issues surrounding new approaches to
authorizing projects and the creation of a Water Infrastructure Financing and
Innovation Act (WIFIA) posed the largest challenges. Senate and House WRDA bills'
provisions that would enhance environmental restoration efforts and flood
protection that could support the District's program to restore the Santa Ana River
appear to have been reconciled. This would allow the District to pursue support
once the measure is enacted.
Enactment of WIFIA remains a large issue of concern. First, the provision to
preclude the use of traditional tax-exempt financing in conjunction with WIFIA loan
guarantees has led to strong stakeholder opposition of the provision. The
precedence it would create to eliminate local agency funding of projects, using
traditional tax-exempt bonds is the basis of the opposition. Second, the House
conference committee members continue to demand that such innovative financing
policy should be part of a comprehensive wastewater infrastructure assistance
rewrite that could begin during the second session. Finally, the Administration has
issued a formal statement of opposition to WIFIA, citing a concern that the approach
is inefficient. Instead, the White House is seeking to have Congress pass separate
legislation to create an infrastructure bank Senator Barbara Boxer continues to
make adoption of WIFIA a top priority of the WRDA conference. At this stage it
appears that any final WRDA bill that includes a WIFIA concept will need to be
scaled-backed to address costs of the new program in addition to funding levels of
the overall bill. Additionally,it is assumed that the elimination of prohibition on the
use of tax-exempt financings for WIFIA supported projects would be a requirement
also.
Wastewater and Water Infrastructure Financing Assistance
The growing number of bills introduced over the past session points to a
smorgasbord of options to develop a new national response to the growing gap
between local agency resources and the demand for capital assistance to comply
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110114th Street.N.W.,Suite 350
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with federal mandates. Consequently, as the budget for fiscal year 2015 is
developed in the coming months,the District should anticipate that efforts would be
made to create pilot programs to spur investment in infrastructure. Among the
pending proposals that may find their way into the discussion are: infrastructure
banks, bond interest rates subsidies, loan guarantees, and a renewal of the SRF
program with an emphasis on green technologies. On this last option, it appears
that a growing interest exists to consider developing a set aside of the SRF program
assistance to support green technologies that could support development of
alternative energy from POTWs.
Affordability Mandates and Compliance
As Congress adjourned in December,the finalization of legislation to revise the way
in which USEPA defines whether communities are committing adequate resources
through rate setting was underway. The bill may have an impact on the District's
process of setting rates because the legislation seeks among other efforts to target
decisions based upon communities within a service area rather than the entire
service area income threshold. Once the legislation is introduced in January, the
District should consider taking a position on the measure, providing input on any
necessary amendments to address its concerns.
WaterSMART Program
The District's Board Chair and General Manager will be meeting with senior U.S.
Bureau of Reclamation officials in Washington to discuss the concept of a feasibility
study at Plant 1 to promote efficient and effective water recycling. The Bureau has
issued a call for proposals under its WaterSMART program and the meeting is the
first step in developing a response.
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Phone 202.466.3755/Telehx 202.466.3787
ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology Glossary
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOO Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
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 U.S. Environmental Protection Agency
FOG Fats, Oils, and Grease
FSSD Facilities Support Services Department
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
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 and 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
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SSMP Sanitary Sewer 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 Research Foundation
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.
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.
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
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
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 (DR) — the dilution at which the majority of the people detect the odor
becomes the D(f for that air sample.
Greenhouse gases — 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 (GWR) System — 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 a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service (LOS)—Goals to support environmental and public expectations for performance.
NOMA— N-Nitrosodimethylamine is an N-nitrosoamine 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 (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order 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.
Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million
gallons per day (MGD) 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 run-off.
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. OCSD's service area is
in the Santa Ana River Watershed.