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HomeMy WebLinkAbout03-23-2016 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, March 23, 2016 Regular Meeting of the 5:00 P.M. STEERING COMMITTEE A Administration Building Conference Rooms A& B 10844 Ellis Avenue Fountain Valley, CA 92708 (714)593-7433 AGEND0 CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Board of Directors 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 Chairman and 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 Directors. These reports are for information only and require no action by the Directors. 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 February 24, 2016 meeting of the Steering Committee. NON-CONSENT CALENDAR: 2. OPPOSE SENATE BILL 885 (WOLK) (Bob Ghirelli) RECOMMENDATION: Authorize the Chair to sign a letter of opposition for: Construction Contracts: Indemnity. An act to amend Section 2782 of the Civil Code, relating to contracts (SB. 885) 03/23/2016 Steering Committee Agenda Page 1 of 3 INFORMATION ITEMS: 3. PROPOSED ORANGE COUNTY WATER DISTRICT NORTH BASIN GROUNDWATER DISCHARGE (Bob Ghirelli) CLOSED SESSION: N/A OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, April 27, 2016 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(a)ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbera(locsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(cpocsd.00m Director of Engineering Rob Thompson (714)593-7310 rthompson(g)omd.com Director of Environmental Services Bob Ghirelli(acting) (714)593-7400 rghirelliOcmd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvner0ocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 oohandlerBomd.com Director of O eretions&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 03/23/2016 steering Committee Agenda Page 2 of 3 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, February 24, 2016 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Nielsen on Wednesday, February 24, 2016 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Chair Jim Herberg, General Manager Greg Sebourn, Vice-Chair Bob Ghirelli, Assistant General Manager Keith Curry, Administration Committee Nick Arhontes, Director of Facility Chair Support Services John Withers, Operations Committee Celia Chandler, Director of Human Chair Resources Tom Beamish, Member-At-Large Rob Thompson, Director of Engineering Lucille Kring, Member-At-Large Ed Torres, Director of Operations & David Shawver, Member-At-Large Maintenance Lorenzo Tyner, Director of Finance & COMMITTEE MEMBERS ABSENT: Administrative Services None Kelly A. Lore, Clerk of the Board Jennifer Cabral Jim Colston Ann Crafton Norbert Gaia Al Garcia Tina Knapp Mark Manzo OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: No public comments were provided. REPORTS Chair Nielsen provided an update from the recent Legislative and Public Affairs Committee meeting including: collateral material design concepts toward a resource recovery agency; AB 2022 (Gordon) bottling recycled water for educational purposes; 02/24/2016 Steering Committee Minutes Page 1 d3 $1 million in Prop. 84 funding received for the Newhope-Placentia project; grant applications through Prop. 1 funding; and possible dates for legislative lobby visits to Sacramento and Washington D.C. General Manager Jim Herberg provided information regarding: OCTA proposed widening of the 405 freeway, the affects to OCSD; and the draft agreement currently being negotiated. Mr. Herberg announced that nominations for the Honor Walk Program are being sought for past employees and past Board members. Nomination forms were distributed and should be returned by March 16; final approval will be April 27 at the Steering Committee meeting; and the ceremony will be held on May 25. He then announced recent awards received by OCSD including: Two honor awards from AAEES for: Research for Critical Assessment of Process Odorants and Environmental Sustainability for our Central Generation Emissions Control Project; and two awards for the GWRS Initial Expansion: Water/Wastewater Project of the Year from ASCE and Engineering Project Achievement from AEC. Mr. Herberg informed the Committee of the projected timeline for the new two-year budget process. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the January 27, 2016 Regular Steering Committee Meeting. AYES: Beamish; Curry; Kring; Nielsen; Sebourn Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: None NON-CONSENT CALENDAR: Chair Nielsen spoke in regards to Item No. 2. He stated that the Ad Hoc Committee (Chair Nielsen, Vice-Chair Sebourn, and Director Curry) convened on February 19, 2016; interviewed the four firms listed; and unanimously selected Liebert, Cassidy and Whitmore to serve as the Chief Negotiator. Chair Nielsen recommended the following alternate recommendation: 02/24/2016 Steering Committee Minutes Page 2 of 3 2. LABOR RELATIONS - CONTRACT NEGOTIATIONS (Celia Chandler) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: o. thn. .,. the RAAFd G-hAiF to A ...a.. AI agFeeFReAt With the Execute an agreement with Liebert, Cassidy & Whitmore, at a cost not to exceed $100,000, to serve as OCSD's Chief Negotiator as selected by the Ad Hoc Committee. INFORMATION ITEMS: 3. ALTERNATIVE APPROACHES TO INTEGRATED REGIONAL WATER MANAGEMENT (Bob Ghirelli) Chair Nielsen provided information regarding a proposal by several agencies within Orange County to meet with SAWPA to discuss changes in the future approval and distribution of Proposition 1 and Proposition 84 water bond funds. Chair Nielsen stated that the interaction with SAWPA will be done in a collegial, cooperative fashion, in line with the positive working relationship we have with them. CLOSED SESSION: General Counsel Brad Hogin announced that there will be no closed session this evening. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Withers suggested a possible meet and greet between our Board Chair and the newly appointed Chair of OCTA Board of Directors, Lori Donchak. ADJOURNMENT: The Chair declared the meeting adjourned at 5:23 p.m. to the next Steering Committee meeting to be held on Wednesday, March 23, 2016 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 02/24/2016 Steering Committee Minutes Page 3 of 3 STEERING COMMITTEE Meeting Date To ad.of DV 03/23,16 — AGENDA REPORT Item Number Item Number z - Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: OPPOSE SENATE BILL 885 (WOLK) GENERAL MANAGER'S RECOMMENDATION Authorize the Chair to sign a letter of opposition for: Construction Contracts: Indemnity. An act to amend Section 2782 of the Civil Code, relating to contracts (SB. 885) SUMMARY At the direction of the Legislative and Public Affairs Committee, staff has crafted a letter of opposition to amend Section 2782 of the Civil Code, relating to contracts. SIB 885 - Eliminates the ability of a public agency to contract with engineers and architects, for upfront legal defense costs against claims related to a project's design work. BACKGROUND When contracting with a design professional, public agencies often place a clause in the agreement requiring the design professional to legally defend the public agency if a claim or lawsuit directly related to the design services work is filed against the agency. This current practice fosters an environment of collaboration between the public agency and the design professional who both have the same incentive to resolve the lawsuit or claim. RELEVANT STANDARDS • Unified legislative advocacy and public outreach program • Build brand, trust, and support with policy makers and community leaders • Anticipate and plan for future regulations and legal requirements • Listen to and seriously consider community input on environmental concerns PROBLEM As a wastewater agency that serves 2.5 million people in central and northwest Orange County, this bill unnecessarily burdens our operations with additional litigation costs and jeopardizes the relationships that the Sanitation District builds with design professionals. Page 1 of 2 PROPOSED SOLUTION Take an oppose position on Senator Wolk's bill 885. TIMING CONCERNS This bill was brought to our attention after the Legislative and Public Affairs Committee agenda package was published. Due to the timing constraints we are bringing the letter for action to the Steering Committee. It is important that we take an oppose position on the letter as soon as possible to ensure that it will be read and received in time before the final reading of the bill. RAMIFICATIONS OF NOT TAKING ACTION The Orange County Sanitation District may not have an opportunity to weigh in on this bill. PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are available in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: • Letter of Opposition. Construction Contracts: Indemnity. Oppose (SB.885) • SB 885 Senate Bill as introduced Page 2 of 2 March 23,2016 The Honorable Hannah-Beth Jackson Chair,Senate Judiciary Committee State Capitol Sacramento,CA 95814 RE:5B 885(Wolk)—Oppose As Introduced Dear Senator Wolk: On behalf of the Orange County Sanitation District, I regret to inform you of our opposition to 5B 885 related to restraints on contractual negotiations. SB 885 eliminates the ability of a public agency to contract with engineers and architects,known as design professionals, for upfront legal defense costs against claims related to a project's design work. When contracting with a design professional, public agencies often place a clause in the agreement requiring the design professional to legally defend the public agency if a claim or lawsuit directly related to the design services work is filed against the agency. This current practice fosters an environment of collaboration between the public agency and the design professional who both have the same incentive to resolve the lawsuit or claim. As a wastewater agency that serves 2.5 million people in central and northwest Orange County,this bill unnecessarily burdens our operations with additional litigation costs and jeopardizes the relationships that the Orange County Sanitation District builds with design professionals. This bill instead imposes a "one size fits all"constraint on contractual negotiations by prohibiting a public agency from requiring the design professional to defend a claim directly connected to the work of the design professional.Requiring the public agency to defend the actions of the design professional creates a"reimbursement only"process that results in the public agency defending the actions of the design professional and shouldering upfront all of the associated costs. Orange County Sanitation District strives to maximize operational efficiency and maintain relationships with design professionals. This bill would force the Orange County Sanitation District itself to engage in any legal claims against a project's design work. Having design professionals legally defend the public agency in regards to their own work is beneficial to both parties,and should not be changed. For these reasons, we must respectfully oppose SB 885. Please contact me if you have any questions on our organization or our position. Sincerely, John Nielsen Chairman of the Board of Directors Orange County Sanitation District SENATE BILL No. 885 Introduced by Senator Walk January 19, 2016 An act to amend Section 2782 of the Civil Code,relating to contracts. LEGISLATIVE COUNSEL'S DIGEST SB 885, as introduced,Welk. Construction contracts: indemnity. Existing law makes specified provisions in construction contracts void and unenforceable,including provisions that purport to indemnify the promisee against liability for damages for death or bodily injury to persons, injury to property, or any other loss arising from the sole negligence or willful misconduct of the promisee or the promisee's agents who are directly responsible to the promisee, or for defects in design furnished by those persons. This bill would specify,for construction contracts entered into on or after January 1, 2017, that a design professional, as defined, only has the duty to defend claims that arise out of, or pertain or relate to, negligence, recklessness, or willful misconduct of the design professional. Under the bill, a design professional would not have a duty to defend claims against any other person or entity arising from a construction project, except that person or entity's reasonable defense costs arising out of the design professional's degree of fault,as specified. The bill would prohibit waiver of these provisions and would provide that any clause in a contract that requires a design professional to defend claims against other persons or entities is void and unenforceable. The bill would provide Legislative findings and declarations in support of these provisions. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. 99 SB 885 —2— The people of the State of CalJfomia do enact as follows: 1 SECTION 1. The Legislature finds and declares all of the 2 following: 3 (a) Errors and omissions insurance for design professionals does 4 not provide coverage for the defense of claims against other persons 5 and other entities involved in construction projects. 6 (b) Requiring design professionals to defend claims against 7 other persons or other entities involved in construction projects 8 when insurance coverage is not available is unfair and contrary to 9 sound public policy. 10 (c) It is sound public policy for all persons and entities in 11 projects to defend themselves against claims of negligence or error. 12 (d) It is the intent of the Legislature in enacting this act to 13 prohibit indemnity agreements that require design professionals 14 to defend claims made against other persons or other entities 15 involved in construction projects. 16 SEC. 2. Section 2782 of the Civil Code is amended to read: 17 2782. (a) Except as provided in Sections 2782.1, 2782.2, 18 2782.5,and 2782.6,provisions,clauses,covenants,or agreements 19 contained in, collateral to, or affecting any construction contract 20 and that purport to indemnify the promisee against liability for 21 damages for death or bodily injury to persons, injury to property, 22 or any other loss, damage or expense arising from the sole 23 negligence or willful misconduct of the promisee or the promisee's 24 agents, servants, or independent contractors who are directly 25 responsible to the promisee, or for defects in design furnished by 26 those persons, are against public policy and are void and 27 unenforceable;provided,however,that this section shall not affect 28 the validity of any insurance contract, workers' compensation, or 29 agreement issued by an admitted insurer as defined by the 30 Insurance Code. 31 (b) (1) Except as provided in Sections 2782.1, 2782.2, and 32 2782.5, provisions, clauses, covenants, or agreements contained 33 in,collateral to,or affecting any construction contract with a public 34 agency entered into before January 1,2013,that purport to impose 35 on the contractor, or relieve the public agency from, liability for 36 the active negligence of the public agency are void and 37 unenforceable. 99 -3— SB 885 1 (2) Except as provided in Sections 2782.1,2782.2,and 2782.5, 2 provisions, clauses, covenants, or agreements contained in, 3 collateral to, or affecting any construction contract with a public 4 agency entered into on or after January 1, 2013, that purport to 5 impose on any contractor, subcontractor, or supplier of goods or 6 services, or relieve the public agency from, liability for the active 7 negligence of the public agency are void and unenforceable. 8 (c) (1) Except as provided in subdivision (d) and Sections 9 2782.1, 2782.2, and 2782.5, provisions, clauses, covenants, or 10 agreements contained in,collateral to,or affecfing any construction 11 contract entered into on or after January 1, 2013, with the owner 12 of privately owned real property to be improved and as to which 13 the owner is not acting as a contractor or supplier of materials or 14 equipment to the work, that purport to impose on any contractor, 15 subcontractor,or supplier of goods or services,or relieve the owner 16 from, liability are unenforceable to the extent of the active 17 negligence of the owner, including that of its employees. 18 (2) For purposes of this subdivision, an owner of privately 19 owned real property to be improved includes the owner of any 20 interest therein,other than a mortgage or other interest that is held 21 solely as security for performance of an obligation. 22 (3) This subdivision shall not apply to a homeowner performing 23 a home improvement project on his or her own single family 24 dwelling. 25 (d) For all construction contracts, and amendments thereto, 26 entered into after January 1,2009, for residential construction,as 27 used in Title 7 (commencing with Section 895) of Part 2 of 28 Division 2, all provisions, clauses, covenants, and agreements 29 contained in, collateral to, or affecting any construction contract, 30 and amendments thereto, that purport to insure or indemnify, 31 including the cost to defend,the builder,as defined in Section 911, 32 or the general contractor or contractor not affiliated with the 33 builder, as described in subdivision (b) of Section 911, by a 34 subcontractor against liability for claims of construction defects 35 are unenforceable to the extent the claims arise out of,pertain to, 36 or relate to the negligence of the builder or contractor or the 37 builder's or contractor's other agents, other servants, or other 38 independent contractors who are directly responsible to the builder, 39 or for defects in design furnished by those persons,or to the extent 40 the claims do not arise out of, pertain to, or relate to the scope of 99 SB 885 —4— 1 work in the written agreement between the parties. This section 2 shall not be waived or modified by contractual agreement, act, or 3 omission of the parties.Contractual provisions,clauses,covenants, 4 or agreements not expressly prohibited herein are reserved to the 5 agreement of the parties.Nothing in this subdivision shall prevent 6 any parry from exercising its rights under subdivision(a)of Section 7 910. This subdivision shall not affect the obligations of an 8 insurance carrier under the holding of Presley Homes, Inc. v. 9 American States Insurance Company(2001)90 Cal.App.4th 571. 10 Nor shall this subdivision affect the obligations of a builder or 11 subcontractor pursuant to Title 7 (commencing with Section 895) 12 of Part 2 of Division 2. 13 (e) Subdivision(d)does not prohibit a subcontractor and builder 14 or general contractor from mutually agreeing to the timing or 15 immediacy of the defense and provisions for reimbursement of 16 defense fees and costs, so long as that agreement does not waive 17 or modify the provisions of subdivision (d) subject, however, to 18 paragraphs (1) and (2). A subcontractor shall owe no defense or 19 indemnity obligation to a builder or general contractor for a 20 construction defect claim unless and until the builder or general 21 contractor provides a written tender of the claim,or portion thereof, 22 to the subcontractor which includes all of the information provided 23 to the builder or general contractor by the claimant or claimants, 24 including, but not limited to, information provided pursuant to 25 subdivision (a) of Section 910, relating to claims caused by that 26 subcontractor's scope of work. This written tender shall have the 27 same force and effect as a notice of commencement of a legal 28 proceeding. If a builder or general contractor tenders a claim for 29 construction defects,or a portion thereof,to a subcontractor in the 30 manner specified by this provision, the subcontractor shall elect 31 to perform either of the following,the performance of which shall 32 be deemed to satisfy the subcontractor's defense obligation to the 33 builder or general contractor: 34 (1) Defend the claim with counsel of its choice, and the 35 subcontractor shall maintain control of the defense for any claim 36 or portion of claim to which the defense obligation applies. If a 37 subcontractor elects to defend under this paragraph, the 38 subcontractor shall provide written notice of the election to the 39 builder or general contractor within a reasonable time period 40 following receipt of the written tender, and in no event later than 99 —5— SB 885 1 90 days following that receipt. Consistent with subdivision (d), 2 the defense by the subcontractor shall be a complete defense of 3 the builder or general contractor of all claims or portions thereof 4 to the extent alleged to be caused by the subcontractor, including 5 any vicarious liability claims against the builder or general 6 contractor resulting from the subcontractor's scope of work, but 7 not including claims resulting from the scope of work, actions,or 8 omissions of the builder, general contractor, or any other party. 9 Any vicarious liability imposed upon a builder or general contractor 10 for claims caused by the subcontractor electing to defend under 11 this paragraph shall be directly enforceable against the 12 subcontractor by the builder,general contractor, or claimant. 13 (2) Pay,within 30 days of receipt of an invoice from the builder 14 or general contractor, no more than a reasonable allocated share 15 of the builder's or general contractor's defense fees and costs, on 16 an ongoing basis during the pendency of the claim, subject to 17 reallocation consistent with subdivision (d), and including any 18 amounts reallocated upon final resolution of the claim, either by 19 settlement or judgment. The builder or general contractor shall 20 allocate a share to itself to the extent a claim or claims are alleged 21 to be caused by its work,actions,or omissions,and a share to each 22 subcontractor to the extent a claim or claims we alleged to be 23 caused by the subcontractor's work, actions, or omissions, 24 regardless of whether the builder or general contractor actually 25 tenders the claim to any particular subcontractor, and regardless 26 of whether that subcontractor is participating in the defense.Any 27 amounts not collected from any particular subcontractor may not 28 be collected from any other subcontractor. 29 (f) Notwithstanding any other provision of law, if a 30 subcontractor fails to timely and adequately perform its obligations 31 under paragraph (1) of subdivision (e), the builder or general 32 contractor shall have the right to pursue a claim against the 33 subcontractor for any resulting compensatory damages, 34 consequential damages, and reasonable attorney's fees. If a 35 subcontractor fails to timely perform its obligations under 36 paragraph(2)of subdivision(e),the builder or general contractor 37 shall have the right to pursue a claim against the subcontractor for 38 any resulting compensatory and consequential damages, as well 39 as for interest on defense and indemnity costs, from the date 40 incurred, at the rate set forth in subdivision (g) of Section 3260, 99 SB 885 —6- 1 and for the builder's or general contractor's reasonable attorney's 2 fees incurred to recover these amounts. The builder or general 3 contractor shall bear the burden of proof to establish both the 4 subcontractor's failure to perform under either paragraph (1) or 5 (2)of subdivision(e)and any resulting damages. If,upon request 6 by a subcontractor, a builder or general contractor does not 7 reallocate defense fees to subcontractors within 30 days following 8 final resolution of the claim as described above, the subcontractor 9 shall have the right to pursue a claim against the builder or general 10 contractor for any resulting compensatory and consequential 11 damages, as well as for interest on the fees, from the date of final 12 resolution of the claim, at the rate set forth in subdivision (g) of 13 Section 3260, and the subcontractor's reasonable attorney's fees 14 incurred in connection therewith.The subcontractor shall bear the 15 burden of proof to establish both the failure to reallocate the fees 16 and any resulting damages. Nothing in this section shall prohibit 17 the parties from mutually agreeing to reasonable contractual 18 provisions for damages if any party fails to elect for or perform 19 its obligations as stated in this section. 20 (g) A builder, general contractor, or subcontractor shall have 21 the right to seek equitable indemnity for any claim governed by 22 this section. 23 (h) Nothing in this section limits,restricts,or prohibits the right 24 of a builder,general contractor,or subcontractor to seek equitable 25 indemnity against any supplier, design professional, or product 26 manufacturer. 27 (i) As used in this section, "construction defect" means a 28 violation of the standards set forth in Sections 896 and 897. 29 6) (1) Commencing with contracts entered into on or after 30 January 1, 2017, a design professional, as defined in paragraph 31 (2) of subdivision (c) of Section 2782.8, shall only have the duty 32 to defend claims that arise out of, pertain to, or relate to, the 33 negligence, recklessness, or widdful misconduct of the design 34 professional. A design professional shall have no duty to defend 35 claims against other persons or entities. A design professional 36 shall be obligated to reimburse reasonable defense costs incurred 37 by other persons or entities, limited to the design professional's 38 degree offault, as determined by a court or arbitration. 39 (2) The provisions of this subdivision shall not be waived or 40 modified by contract. Contract provisions in violation of this 99 —7— SB 885 1 subdivision are void and unenforceable. The duty of a design 2 professional to defend is limited as provided in this subdivision. 99 STEERING COMMITTEE Meeting Dare To ad.of DV 03/23,16 -- AGENDA REPORT Item Number Item Number 3 — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: PROPOSED ORANGE COUNTY WATER DISTRICT NORTH BASIN GROUNDWATER DISCHARGE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY BACKGROUND Groundwater contaminated with volatile organic compounds (VOCs) underlying portions of the cities of Fullerton and Anaheim has resulted in the closure of two of Fullerton's and one of Anaheim's municipal water supply wells and one private well. Elevated VOC levels are threatening to impact additional wells as the plume migrates, contaminating more of the groundwater aquifer, and making the water unusable. Orange County Water District (OCWD) has requested that OCSD participate as a partner in an effort to prevent further contamination which would impact additional water production wells. OCWD proposes to develop a groundwater extraction system, discharging to OCSD's sewer system in State College Avenue. This arrangement is designed to prevent further contamination of the groundwater basin by pumping contaminated water into the sewer, thereby halting the migration of the contaminant plume. OCWD seeks to move the project forward as soon as possible given the ongoing drought emergency and the potential for the plume to make important groundwater resources unusable. Since the plume has existed for many years and has migrated beyond its original sources, the responsible party/parties has/have not been established. Rather than wait for responsibility for the contamination to be sorted out, OCWD would like to move forward to protect the groundwater aquifer. Protecting the aquifer in effect protects the viability of the groundwater basin as a clean, safe storage reservoir for the Groundwater Replenishment System product water. Ordinance OCSD-39 allows for the discharge of contaminated groundwater to the sewer system provided that the contaminant concentrations fall within safe Page 1 of 2 limits. Water quality data from OCWD indicate that the proposed discharge would be within these limits. Ordinances OCSD-40 and OCSD-42 require that groundwater dischargers pay treatment and supplemental capital facilities charges. Based on this ordinance the proposed discharge would be subject to a fee of $1,553,000 per year. OCWD is requesting that OCSD consider partnering in the initial clean-up effort and absorb a portion of this cost, until the potentially responsible parties are identified and payment for cleanup costs can be collected and reimbursed. OCSD is a partner in the Groundwater Replenishment System (GWRS), and has invested more than $200 million in capital costs for the initial construction. As a partner in the GWRS, OCSD has a stake in the health of the groundwater basin. Aquifer contamination with VOCs could limit the utility of OCSD's investment in the GWRS. OCSD and OCWD are also currently completing a joint feasibility study for the final expansion of the GWRS. The proposed discharge would increase flow available to OCSD's Reclamation Plant No. 1, resulting in an additional 1.44 million gallons per day of influent available for recycling via GWRS. RELEVANT STANDARDS • Support expansion of GWRS • Maintain collaborative and cooperative relationships with neighboring agencies PRIOR COMMITTEE/BOARD ACTIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 2 of 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 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) ICS Incident Command System IERP Integrated Emergency Control 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 and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations 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 SAW PA 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. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know 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. 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. Glossary of Terms and Abbreviations 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!f) - 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. Glossary of Terms and Abbreviations 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.