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 Any items withdrawn from the Consent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.