HomeMy WebLinkAbout04-22-2015 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, April 22, 2015
Regular Meeting of the A
5:00 P.M.
Steering Committee Administration Building
Conference Rooms A& B
10844 Ellis Avenue
Fountain Valley, CA 92708
+ (714) 593-7433
AGENDA
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's 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 Directors. These reports are for information only and
require no action by the Directors.
CONSENT CALENDAR:
1. A. Approve Minutes of the March 25, 2015 Regular Steering Committee
Meeting.
B. Approve Minutes of the March 27, 2015 Special Steering Committee
Meeting; and
C. Approve Minutes of the April 10, 2015 Special Steering Committee
Meeting.
2. Recommend to the Board of Directors:
Approve and authorize the execution of the amended compensation agreement
with the City of Garden Grove and other taxing entities within the meaning of
Health and Safety Code Section 34180(f), as required by the California
Department of Finance.
04/22/15 Steering Committee Agenda Page 1 of 5
NON-CONSENT ITEMS:
3. Recommend to the Board of Directors to:
Approve first amendment to Agreement with East Orange County Water District
(EOCWD), relating to the proposed transfer of ownership of local sewers in
Service Area 7, and the appropriate reserve balances.
4. A. Approve nominated retired employees, Jim Ruth and Bill Wallin, as Honor
Walk brick recipients for the year 2015.
B. Consideration of past Board Member Shirley McCracken and former
Board of Director's Legal Counsel, Tom Woodruff as Honor Walk brick
recipients for the year 2015.
5. Direct the General Manager to work through the Operations Committee for the
decisions necessary to implement the replacement or retrofit of the
Administrative Facilities including the Administration Building, Human Resources
Building, Laboratory, Fleet Services Buildings, Purchasing Building, and multiple
office trailers at Plant No. 1.
6. Recommend to the Board of Directors to:
A. Adopt Resolution No. OCSD 15-10, entitled, "A Resolution of the Board of
Directors of the Orange County Sanitation District approving the
Memorandum of Understanding between the Orange County Sanitation
District and the International Union of Operating Engineers, Local 501
(Local 501), for Fiscal Years 2014/2015 & 2015/2016" and
B. Direct staff to finalize and sign the Memorandum of Understanding (MOU)
between Orange County Sanitation District and the Local 501 bargaining
unit.
INFORMATION ITEMS:
None.
04/22/15 Steering Committee Agenda Page 2 of 5
CLOSED SESSION:
During the course of conducting the business set forth on this agenda as a regular meeting of the
Board, the Chair may convene the Board in closed session to consider matters of pending real estate
negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code
Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation;
(c) employment actions or negotiations with employee representatives;or which are exempt from public
disclosure under the California Public Records Act, may be reviewed by the Board during a permitted
closed session and are not available for public inspection. At such time as the Board takes final action
on any of these subjects, the minutes will reflect all required disclosures of information.
Convene in closed session.
(1) CONFER WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Agency Designated Representatives: James Herberg, Robert Ghirelli, and
Richard Spencer.
Employee Organizations: 3
International Union of Operating Engineers, Local 501; Orange County
Employees Association; and the Supervisors and Professionals Group
(2) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION
(Government Code section 54956.9(d)(2))
Significant exposure to litigation pursuant to paragraph (2) of subsection (d) of
Government Code section 54956.9.
Number of Potential Cases: 9.
Claims for Damage or Injury from: Southern California Edison, Rush N. Hill II,
Leslie Smith, Best Tailoring, 3Thirty3, Ron and Colleen Bone, Evelyn R. Hart,
Cue Hair Spa, and Jack Suddarth.
(3) CONFERENCE WITH LEGAL COUNSEL RE ANTICPATED LITIGATION
(Government Code Section 54956.9(d)(4))
Initiation of Litigation pursuant to paragraph (4) of subdivision (d) of Section
54956.9
Number of Potential Cases: 1
Recovery of sales tax paid to the State Board of Equalization on the purchase of
chemicals used to treat wastewater.
04/22/15 Steering Committee Agenda Page 3 of 5
(4) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
Number of Potential Cases: 2
Alex Shaaban v. Orange County Sanitation District, Orange County
Superior Court, Case No. 30-2014-00714555
Kelly Ross v. Orange County Sanitation District, Orange County Superior
Court, Case No. 30-2014-00714553
Reconvene in regular session.
CONSIDERATION OF ACTION ON MATTERS CONSIDERED IN CLOSED SESSION,
IF ANY:
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
To the Steering Committee meeting scheduled for Wednesday, May 27, 2015, at
5:00 p.m.
04/22/15 Steering Committee Agenda Page 4 of 5
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, 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.
Kelly A. Lore
Clerk of the Board
(714)593-7433
klorefc3ocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager Jim Herberg (714)593-7110 iherbem0ocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 mhirellifglocsd.com
Director of Engineering Rob Thompson (714)593-7310 rthomosonOocsd.com
Director of Facility Support Services Nick Arhontes (714)593-7210 narhontesfa)ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Itynerlglocsd.com
Administrative Services
Director of Operations&Maintenance Ed Torres 714 593-7080 storres ocsd.com
04/22/15 Steering Committee Agenda Page 5 of 5
ITEM I
MINUTES OF THE
STEERING COMMITTEE
Orange County Sanitation District
Wednesday, March 25, 2015 at 5:00 p.m.
A regular meeting of the Steering Committee of the Orange County Sanitation
District was called to order by Chair Beamish on Wednesday, March 25, 2015 at
5:05 p.m. in the Administration Building of the Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Tom Beamish, Chair Jim Herberg, General Manager
John Nielsen, Vice-Chair Bob Ghirelli, Assistant General
Greg Sebourn, Operations Committee Manager
Chair Rob Thompson, Director of
John Withers, Administration Engineering
Committee Chair Lorenzo Tyner, Director of Finance &
Keith Curry, Member-At-Large Administrative Services
David Shawver, Member-At-Large Ed Torres, Director of Operations &
Maintenance
COMMITTEE MEMBERS ABSENT: Nick Arhontes, Director of Facility
Steve Jones, Member-At-Large Support Services
Kelly A. Lore, Acting Clerk of the Board
Jennifer Cabral
Norbert Gaia
Al Garcia
Andrew Nau
Rich Spencer
OTHERS PRESENT:
Brad Hogin, General Counsel
Steve Filarsky, Consultant
PUBLIC COMMENTS:
None.
REPORTS:
Vice-Chair Nielsen reported on the Legislative and Public Affairs Committee meeting
including current legislation that is pending and possible grant funding.
03/25/2015 Steering Committee Minutes Page 1 d4
Chair Beamish reported that he, Vice-Chair Nielsen, General Manager Herberg, and
Public Affairs Specialist Rebecca Long attended Washington D.C. Lobby Days on
March 17-19 where they met with various congressional staff. Chair Beamish will
provide more detail at the Board Meeting.
General Manager Herberg reported on highlights from his Monthly report including:
Governance Finance Officers Award; 2014 Outstanding Wastewater Treatment
Project in State of California; OCEC Outstanding Engineer of Merit (Mike Lahlou);
Cessation of Disinfection effective March 17; Budget processes; WEROC Survey of
Local Waterwater system capabilities in major power outage; Hydrogen fueling
station agreement; Class and compensation study to be completed by 12/31/15 and
medical reopener with bargaining units.
Director Curry arrived at 5:07 p.m.
CONSENT CALENDAR:
1. MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve Minutes of the February 25, 2015 Special Steering Committee
Meeting; and
B. Approve Minutes of the February 25, 2015 Regular Steering
Committee Meeting.
AYES: Beamish, Curry, Nielsen, Seboum, Shawver and
Withers
NOES: None
ABSTENTIONS: None
ABSENT: Jones
NON-CONSENT CALENDAR:
2. Recommend to the Board of Directors to:
A. Adopt Resolution No. OCSD 15-08, entitled "A Resolution of the Board
of Directors of the Orange County Sanitation District approving and
authorizing the application for the WaterSMART Title XVI Water Grant
Funds and the Execution of Grant Documents with the United Stated
Department of the Interior, Bureau of Reclamation," and
B. Authorizing financial and legal commitment of funding agreement and
OS/25/2015 Steering Committee Minutes Page 2 of 4
related documents for funding under the U.S. Bureau of Reclamation,
Water 2025, and directing staff to apply for a grant up to $450,000 for
the Effluent Reuse Study, Project No. SP-173.
AYES: Beamish, Curry, Nielsen, Seboum, Shawver and
Withers
NOES: None
ABSTENTIONS: None
ABSENT: Jones
INFORMATION ITEMS
None.
CLOSED SESSION
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTIONS: 54956.9(d)(1); 54956.9(d)(2); 54956.9(d)(4); and 54957.6
The Committee convened in closed session at 5:17 p.m. to discuss four items.
Confidential minutes of the Closed Session have been prepared in accordance with
the above Government Code Sections and are maintained by the Clerk of the Board
in the Official Book of Confidential Minutes of Board and Committee Closed
Meetings.
RECONVENED IN REGULAR SESSION: The Committee reconvened in regular
session at 5:24 p.m.
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN
CLOSED SESSION
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
03/25/2015 Steering Committee Minutes Page 3 of 4
ADJOURNMENT:
The Chair declared the meeting adjourned at 5:26 p.m. to the next Steering
Committee meeting to be held on Wednesday, April 22, 2015 at 5:00 p.m.
Submitted by:
Kelly A. Lore
Clerk of the Board
OS/25/2015 Steering Committee Minutes Page 4 of 4
ITEM 16
MINUTES OF THE
STEERING COMMITTEE SPECIAL MEETING
Orange County Sanitation District
A Special Meeting of the Steering Committee of the Orange County Sanitation
District was called to order by Chair Beamish on Friday, March 27, 2015 at 9:33
a.m. in the Administration Building of the Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT
Tom Beamish, Chair Bob Ghirelli, Assistant General
John Nielsen, Vice-Chair Manager
Greg Sebourn, Operations Committee Kelly A. Lore, Acting Clerk of the Board
Chair Jana Botzheim
Keith Curry, Member-At-Large Jim Colston, Manager
Steve Jones, Member-At-Large Norbert Gaia
David Shawver, Member-At-Large Al Garcia
Ted Gerber
Roya Sohanaki
COMMITTEE MEMBERS ABSENT:
John Withers, Administration
Committee Chair OTHERS PRESENT:
Kathy Jenson, Rutan and Tucker,
Independent Counsel to Steering
Committee
Melissa Thorme, Downey Brand
Special Prosecutor for OCSD
Matthew Kaplan, Tucker Ellis LLP,
Counsel for Klean Waters, Tim
Miller and Shaun Miller
Shaun Miller, Klean Waters, General
Manager
Tim Miller, Klean Waters, General
Manager
Deborah Blanchet, Court Reporter,
Golkow T&C
PUBLIC COMMENT:
None.
Minutes of the SPECIAL Steering Committee Meeting
March 27,2015
Page 2 of 4
Chair Beamish encouraged the Committee to give their undivided attention to all
parties during the hearing; avoid sidebar discussions and use of electronic devices;
keep an open mind until the presentations are completed; direct any questions of the
attorney's through the Chair by raising of hand; and be mindful of the court reporter,
so one person should speak at a time, and speak clearly.
NON-CONSENT CALENDAR:
Chair Beamish declared that the Committee would first address the March 23, 2015,
Motion for Continuance and appointment of new Steering Committee Members to
hear its appeal as submitted by the Respondent, Klean Waters, Inc., Tim Miller and
Shaun Miller.
1. MOVED, SECONDED AND DULY CARRIED TO:
Deny the Motion for Continuance and appointment of new Steering
Committee Members to hear its appeal as submitted by the Respondent,
Klean Waters, Inc., Tim Miller and Shaun Miller.
AYES: Beamish, Curry and Jones, Nielsen, Sebourn and
Shawver
NOES: None
ABSTENTIONS: None
ABSENT: Withers
Mr. Kaplan stated two objections for the record on this motion and the motion to
strike the prosecution team's irrelevant late filed evidence.
Melissa Thorme, Downey Brand, Special Prosecutor for OCSD, began her
presentation with PowerPoint which was also provided in hard copy to the
Committee and filed with the Clerk.
Ms. Thorme concluded her presentation and answered questions from the
Committee.
The meeting was recessed at 10:22 a.m.
The meeting reconvened at 10:32 a.m.
Ms. Thorme again fielded questions for another 14 minutes.
Matthew Kaplan, Tucker Ellis LLP, Counsel for Klean Waters, Tim Miller and Shaun
Miller, began his presentation with a PowerPoint which was also provided in hard
copy to the Committee and filed with the Clerk.
Minutes of the SPECIAL Steering Committee Meeting
March 27,2015
Page 3 of 4
The meeting was recessed at 12:49 p.m.
The meeting reconvened at 12:55 p.m.
Mr. Kaplan concluded his presentation and answered questions from the
Committee.
The meeting was recessed at 1:03 p.m
The meeting reconvened at 1:38 p.m.
Ms. Thorme proceeded with her rebuttal and again answered questions from the
committee. She then concluded her rebuttal.
The meeting was recessed at 2:42 p.m.
The meeting reconvened at 2:50 p.m.
Chair Beamish stated that Director Jones had to leave the meeting at 3:30 p.m. but
there should be no time constraints; that this could be continued to another date;
and so there is no need to rush a decision.
2. MOVED, SECONDED AND DULY CARRIED TO:
Accept all documents submitted prior to March 271h in the matter of Klean
Waters, Inc., Tim Miller and Shaun Miller.
AYES: Beamish, Curry and Jones, Nielsen, Sebourn and
Shawver
NOES: None
ABSTENTIONS: None
ABSENT: Withers
Deliberations began amongst the committee. Mr. Beamish asked the Court
Reporter when the transcript of today's proceeding could be made available, to
which it was decided to expedite the order and make it available on Monday, March
30".
The committee asked for clarification on a few exhibits, data and specific dates.
Director Shawver suggested addressing each count, determining the Committee's
position on each of those, then address the fees after the determination of guilt.
Discussion ensued.
Minutes of the SPECIAL Steering Committee Meeting
March 27, 2015
Page 4 of 4
3. MOVED, SECONDED AND DULY CARRIED TO:
Continue the meeting to a date uncertain at this time.
AYES: Beamish, Curry and Jones, Nielsen, Sebourn and
Shawver
NOES: None
ABSTENTIONS: None
ABSENT: Withers
The committee discussed the various dates and times available and agreed on
Friday, April 10, 2015 at 9:30 a.m. The committee requested that Ms. Jenson
provide them, no later than next week, some kind of synopsis/process sheet listing
the decisions that needed to be made.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
The Chair declared the meeting adjourned at 3:29 p.m. to a Special Steering
Committee meeting to be held, April 10, 2015 at 9:30 a.m.
Submitted by:
Kelly A. Lore
Clerk of the Board
ITEM I
MINUTES OF THE
STEERING COMMITTEE SPECIAL MEETING
Orange County Sanitation District
A Special Meeting of the Steering Committee of the Orange County Sanitation
District was called to order by Chair Beamish on Friday, April 10, 2015 at
9:31 a.m. in the Administration Building of the Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT
Tom Beamish, Chair Bob Ghirelli, Assistant General
Greg Sebourn, Operations Committee Manager
Chair Kelly A. Lore, Acting Clerk of the Board
Keith Curry, Member-At-Large Jana Botzheim
Steve Jones, Member-At-Large Jim Colston, Environmental Affairs
David Shawver, Member-At-Large Manager
Mark Manso
Al Garcia
COMMITTEE MEMBERS ABSENT: Ted Gerber
John Nielsen, Vice-Chair Roya Sohanaki
John Withers, Administration
Committee Chair
OTHERS PRESENT:
Kathy Jenson, Rutan and Tucker,
Independent Counsel to Steering
Committee
Melissa Thorme, Downey Brand
Special Prosecutor for OCSD
Matthew Kaplan, Tucker Ellis LLP,
Counsel for Klean Waters, Tim
Miller and Shaun Miller
Shaun Miller, Klean Waters, General
Manager
Tim Miller, Klean Waters, General
Manager
Deborah Blanchet, Court Reporter,
Golkow T&C
PUBLIC COMMENT:
None.
Minutes of the SPECIAL Steering Committee Meeting
April 10, 2015
Page 2 of 4
Introductions of the parties were made.
Chair Beamish encouraged the Committee to give their undivided attention to all
parties during deliberations; avoid sidebar discussions and use of electronic devices;
keep an open mind until the presentations are completed; direct any questions of the
attorney's through the Chair by raising of hand; and be mindful of the court reporter,
so one person should speak at a time, and speak clearly.
Ms. Jenson, Rutan and Tucker, Independent Counsel to Steering Committee, stated
a correction to the Deliberation worksheet should be made as she misinterpreted
that District's Exhibit No. 3 was submitted by the applicant, when it was actually
prepared by the District.
She also noted a typographical error on Page 3, in the chart, second column, the
third entry down, the date 6/1 712 0 1 4 should actually be 6/11/2014.
Mr. Kaplan, Tucker Ellis LLP, Counsel for Klean Waters, Tim Miller and Shaun
Miller, questioned the absence of Vice-Chair Nielsen. Chair Beamish stated that
Vice-Chair Nielsen will no longer have any part in this process. Mr. Kaplan stated
his objection as he feels this entire matter has to be decided by a single body.
Ms. Thorme, Downey Brand, Special Prosecutor for OCSD, stated for the record the
changes that she felt should be made to the Deliberation Worksheet, and address
other emails that had transpired after the posting of the agenda.
Mr. Kaplan objected to the worksheet and its introduction here, believing it violates
due process, and objected further to Ms. Thorme's further argument.
Chair Beamish stated that all the objections were noted but that the Steering
Committee would base their decision on the evidence.
Deliberations began amongst the committee. During deliberations, the following
objections were made:
• Mr. Kaplan objected to the participation and characterization of the officers.
• Regarding Count 2 - Mr. Kaplan objected because the deliberations seem to
be assuming that the fine is $5,000. He stated that it requires consideration
of up to and factors that are statutorily defined, and he had not heard any
discussion about those factors in setting a fine.
• Regarding Count 2 - Ms. Thorme objected that there are things that need to
be considered, including the health benefit, and she stated she provided the
evidence on that as well, which should be considered.
• Regarding Count 3 - Mr. Kaplan objected that deliberations are not address
the issues. He stated that the question isn't the authority of the committee,
Minutes of the SPECIAL Steering Committee Meeting
April 10, 2015
Page 3 of 4
the question is the permit language.
• Mr. Kaplan objected that before a written final decision has been adopted or
voted on that he stated that his clients' due process has been repeatedly
violated throughout this hearing, and that he believes that anyone on the
committee who have heard about Klean Waters before this hearing should
recuse themselves.
• Ms. Thorme asked that due to the fact that the transcript was expedited, that
changed be allowed to be made.
• Mr. Kaplan objected to any changes being made to the transcript.
The consensus of the Committee was as follows:
1. Count 1 — Denial of Inspection and Sampling was affirmed with a penalty of
$35,000 for seven violations.
2. Count 2 — Failure to provide pretreatment was affirmed with a penalty of
$455,000 for 91 days violated.
3. Count 3 — Acceptance of Waste from outside the District's Service Area was
affirmed with a penalty of$160,000 for 32 days violated.
4. Klean Waters, Inc. was found liability. Tim Miller and Shaun Miller were not
found personally liable.
5. Industrial Wastewater Discharge Permit No. 52-1-841 was affirmed revoked with
each count.
The written determination will be considered, delivered and adopted on Thursday,
April 16, 2015 at 3:00 p.m.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
The Chair declared the meeting adjourned at 10:18 a.m. to a Special Steering
Committee meeting to be held, April 16, 2015 at 3:00 p.m.
Minutes of the SPECIAL Steering Committee Meeting
April 10, 2015
Page 4 of 4
Submitted by:
Kelly A. Lore
Clerk of the Board
STEERING COMMITTEE Meeting Date TOBA.Of Dir.
04/22/15 o4/zz/1s
AGENDA REPORT Item Number Item Number
z
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: AMENDED LONG RANGE PROPERTY MANAGEMENT PLAN
COMPENSATION AGREEMENT WITH THE CITY OF GARDEN GROVE
GENERAL MANAGER'S RECOMMENDATION
Approve and authorize the execution of the amended compensation agreement with the
City of Garden Grove and other taxing entities within the meaning of Health and Safety
Code Section 34180(f), as required by the California Department of Finance.
SUMMARY
The Orange County Water District (OCWD) has advised the City of Garden Grove that its
Board is prohibited by law from entering into the compensation agreement with the City
and each of the affected taxing entities due to a contractual conflict of interest possessed
by one of its Directors pertaining to Site C. OCWD does not have a conflict problem as it
relates to the Vacant Restaurant Parcel.
In order that this issue does not further delay the disposition and development of either
site, the City is requesting that Affected Taxing Entities approve the removal of OCWD as
a party to the agreement by approving the amended agreement. The City and OCWD will
enter into a separate stand-alone compensation agreement addressing the Vacant
Restaurant Parcel only.
PRIOR COMMITTEE/BOARD ACTIONS
2125/15 Board approved long range property management plan compensation
agreement with the City of Garden Grove
ADDITIONAL INFORMATION
The City of Garden Grove (City) is the successor agency to the Garden Grove Agency for
Community Development. Pursuant to the long range management plan approved by the
Califomia Department of Finance, the City as Successor Agency is required to enter into
compensation agreements with other taxing entities in order to transfer two properties to
the City. One property is for future development and the second is to market for sale.
Page 1 of 2
Staff has worked directly with the City to complete the compensation agreement.
Approval of the recommended actions allows the City to move forward with the
development and sale of the two properties, respectively.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENT
The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website
(wwwocsd.com) with the complete agenda package:
• Amended Compensation Agreement
Page 2 d 2
COMPENSATION AGREEMENT
This Compensation Agreement (this "Agreement'), dated for reference purposes as of
January 1,2015, is entered into by and among the City of Garden Grove, a municipal corporation
(the "City"), and the following local agencies and school districts, each of which is a taxing
entity as defined by Health and Safety Code section 34171(k) (collectively, the "Other Taxing
Entities" or "OTEs"):
*By initialing next to its name, each Party
* County of Orange;Orange County Flood Control District; concurs with the removal of Orange
Orange County Water District; County Water District as a Party
Orange County Sanitation District; to this Agreement.
Orange County Vector Control District;
Orange County Transportation Authority;
Garden Grove Sanitary District;
Orange County Superintendent of Schools, on behalf of the Orange County Department
of Education;
Garden Grove Unified School District; and
Rancho Santiago Community College District.
In this Agreement, the City and the OTEs may each separately be referred to as a"Party"
or a "Taxing Entity" and collectively may be referred to as the "Parties" or the "Taxing
Entities."
RECITALS
A. Prior to February 1, 2012, the Garden Grove Agency for Community
Development (herein referred to as the "Former Agency") was a community redevelopment
agency duly organized and existing under the California Community Redevelopment Law
(Health and Safety Code Sections 33000 et seq.).
B. Assembly Bill xl 26, ehaptered and effective June 27, 2011, added Parts 1.8 and
1.85 to Division 24 of the California Health and Safety Code, which caused the dissolution of all.
redevelopment agencies and winding down of the affairs of former redevelopment agencies,
including as such laws were amended by Assembly Bill 1484, chaptered and effective on June
27,2012(together,the`Dissolution Act').
C. As of February 1, 2012, the Former Agency was dissolved pursuant to the
Dissolution Act, and the City of Garden Grove as Successor Agency to the Garden Grove
Agency for Community Development(the "Successor Agency") implements the Dissolution Act
subject to the review and approval by a seven-member Oversight Board (the "Oversight
Board").
D. Health and Safety Code Section 34I80(1) provides that if a city wishes to retain
any properties or other assets for future redevelopment activities, it must reach a compensation
agreement with the other taxing entities to provide payments to them in proportion to their shares
1049357.1
of the base property tax, as determined by Health and Safety Code Section 34188, for the value
of property retained.
E. Pursuant to Health and Safety Code Section 34191.5(b), upon the Successor
Agency's receipt of a "Finding of Completion" from the California Department of Finance
pursuant to Health and Safety Code Section 34179.7, the Successor Agency is required to
prepare a long-range property management plan ("LRPMP") to address the use and disposition
of the Former Agency's real property assets. If approved by the Oversight Board and the
Department of Finance, the LRPMP may provide for, among other things, the retention of such
property for future development and/or transfer of such property to the City for such purposes.
Pursuant to Health and Safety Code section 34191.3, the approved LRPMP shall govern, and
supersede all other provisions relating to, the disposition and use of all the real property assets of
the Former Agency.
F. On May 15, 2013, pursuant to Health and Safety Code Section 34179.7, the
Successor Agency received a Finding of Completion from the Department of Finance.
G. On May 29, 2013, pursuant to Health and Safety Code Section 34191.5, the
Successor Agency submitted a LRPMP, approved by the Oversight Board, to the Department of
Finance. On December 11, 2013, the Successor Agency submitted a revised LRPMP, approved
by the Oversight Board, to the Department of Finance. The revised LRPMP provides for the
transfer of certain properties from the Successor Agency to the City for future development
pursuant to Health and Safety Code Sections 34191.5(c)(2)(A) and 34191.5(c)(2)(B). These
properties comprise two sites referred to respectively in the LRPMP and this Agreement as "Site
C" and the "Vacant Restaurant Property," which are more completely described below-
IT. In response to a written request by the Department of Finance made in connection
with its review of the revised LRPMP, on February 25, 2014, the Oversight Board adopted
Resolution No. 31-14 approving certain revisions to the LRPMP. Resolution No. 31-14 provides
that the Successor Agency will verify that compensation agreements between the City and the
other taxing entities are in place and executed prior to the transfer of Site C and the Vacant
Restaurant Property to the City.
I. On March 7, 2014, the Department of Finance approved the revised LRPMP, as
revised pursuant to Oversight Board Resolution No. 31-14.
J. Site C consists of several generally contiguous parcels on or near Harbor
Boulevard within the City's resort district, which are entitled for the development and operation
of a resort hotel, retail, and entertainment project. The property comprising Site C is subject to
that certain Grove District Resort Hotel Development Agreement between the City and Land &
Design, Inc., or any approved affiliate, assignee or successor thereto permitted by the Agreement
(the "Developer"), dated April 9, 2013 (the "Site C Agreement"), providing for the
development and operation of a project on Site C generally consisting of a combination of hotels,
retail, restaurant, and entertainment venues, and related parking facilities. Pursuant to the Site C
Agreement, the Developer is required to construct and operate the entitled resort hotel project in
consideration for the City providing specified economic assistance necessary to fund the
economic feasibility gap of the project, including conveyance of Site C to the Developer at no
10493571
cost. In conjunction with its approval of the Site C Agreement, the City Council considered an
economic evaluation of the proposed project prepared by Horwath HTL, LLC, which concluded
that the project's development costs compared to the estimated income and development values
reasonably expected from the project generates a negative residual land value, or financial
feasibility gap, of approximately $31.5 million, inclusive of City assistance in the form of
conveyance of Site C at no cost to Developer. The Parties anticipate that the development and
operation of the project pursuant to the Site C Agreement will result in significant additional
future property tax revenue to the Taxing Entities, the net present value of which is no less than
what would otherwise be distributed to the Taxing Entities pursuant to Health and Safety Code
Section 34180(f) if not for the development and operation of the project pursuant to the Site C
Agreement.
K. The Vacant Restaurant Property, which is located at 12361 Chapman Avenue in
the City of Garden Grove, and currently identified as Assessor's Parcel No. 233-171-23, is
comprised of a 20,908 square foot parcel containing a 10,800 square foot building that formerly
housed a restaurant. Upon transfer to the City, the City intends to continue to market the Vacant
Restaurant Property for sale to a restaurant operator in accordance with Government Code
Section 52201.
L. The Parties intend by this Agreement to satisfy the provisions of the approved
LRPMP, Oversight Board Resolution No. 31-14, and Health and Safety Code Section 34180(f),
and to provide for payment to the Taxing Entities of their proportionate shares of the net
proceeds, if any, to be received by the City in connection with the future disposition of Site C
and the Vacant Restaurant Property by the City.
NOW THEREFORE, in consideration of the foregoing recitals and the mutual promises
contained in this Agreement,the Parties agree as follows:
AGREEMENT
1. Incorporation of Recitals. The foregoing recitals are true and correct and hereby
incorporated herein by reference.
2. Definitions. The following definitions shall apply in this Agreement:
(a) "Disposition Proceeds" means the net proceeds, if any, actually received by the
City in exchange for the conveyance of fee title or a leasehold interest in Site C and/or the
Vacant Restaurant Property. For purposes of this definition, the term "net proceeds" shall mean
sales proceeds paid by a buyer directly to City or into escrow, minus sums paid or withheld by
escrow for broker and/or agent sales commissions, closing costs, escrow fees, title insurance
premiums, applicable taxes, and any other similar fees and costs customarily allocated to the
seller of commercial property. The Disposition Proceeds represent the Parties' agreed-upon
value of Site C and the Vacant Restaurant Property pursuant to Health and Safety Code Section
34180(f).
1049357.1
(b) "Each Taxing Entity's Proportionate Share of the Disposition Proceeds"
means each Taxing Entity's proportionate share of the Disposition Proceeds, as determined
pursuant to Health and Safety Code Section 34188.
3. Compensation Agreement. This Agreement constitutes a "compensation agreement"
between the City and the Other Taxing Entities within the meaning of Health and Safety Code
Section 34180(f).
4. Disposition of Site C and Vacant Restaurant Property by City.
(a) Disposition of the Vacant Restaurant Property. The City shall use best efforts to
market and expeditiously dispose of the Vacant Restaurant Property and shall comply with all
applicable law, including, to the extent applicable, Government Code Section 52201. Unless
otherwise mutually agreed by all of the Taxing Entities through an amendment to this
Agreement, if the City's disposition of the Vacant Restaurant Property occurs after January 1,
2018, or such other date mutually agreed upon amongst the Parties, such disposition shall be at
no less than fair market value,as presently zoned, as determined by an appraisal performed by an
appraiser mutually acceptable to all of the Parties. In the event that the City disposes of the
Vacant Restaurant Parcel for nominal or no consideration. Parties shall have an appraisal
performed by a mutually agreed upon appraiser, at the City's cost, to determine the appraised
value of the Vacant Restaurant Parcel and the City shall remit an amount equal to the appraised
value to the Orange County Auditor-Controller for determination and distribution of the Each
Taxing Entity's Proportionate Share of the Disposition Proceeds. In the event a rezoning of the
Vacant Restaurant Property, or its surrounding area, results in a higher market value of the
Property, the Parties acknowledge and agree that the higher market value shall apply for
purposes of appraising the value of same and remitting an amount equal such appraised value to
the Orange County Auditor-Controller for determination and distribution of the Each Taxing
Entity's Proportionate Share of the Disposition Proceeds.
(b) Disposition of Site C.
(i) The City's disposition of Site C shall comply with all applicable law,
including,to the extent applicable, Government Code Section 52201.
(ii) City may convey Site C to the Developer pursuant to the Site C
Agreement.
(iii) City represents that it intends to convey Site C to the Developer pursuant
to the Site C Agreement. The Parties acknowledge and understand,
however, that City's conveyance of Site C to the Developer pursuant to the
Site C Agreement is subject to certain conditions precedent. If, due to a
failure of a condition precedent or for any other reason, the City does not
convey Site C to the Developer pursuant to the Site C Agreement and the
Site C Agreement is terminated, then City shall use best efforts to market
and expeditiously dispose of Site C to another developer for development
and operation of a similar resort hotel, retail, and entertainment project on
iM935v.r
Site C by January 1, 2018. In the event the Site C Agreement is terminated
and the City has failed to successfully market and dispose of Site C as
aforementioned, the City shall, upon mutual agreement amongst the
Parties, be granted an additional year to dispose of Site C. If the Site C,
however, is not disposed by either January 1, 2018 or the aforementioned
extension of time, if applicable, the Parties shall have an appraisal of Site -
C performed by a mutually agreed upon appraiser, at the City's cost, to
determine the value of Site C and expeditiously market and sell the
property using the appraised value of the Site C. Upon sale of Site C, the
City shall remit the Disposition Proceeds to the Orange County Auditor-
Controller for determination and distribution of Each Taxing Entity's
Proportionate Share of the Disposition Proceeds. In the event that the City
disposes of Site C, after January 1, 2018, or the aforementioned extension
of time, if applicable, for nominal or no consideration, Parties shall have
an appraisal performed by a mutually agreed upon appraiser, at the City's
cost, to determine the appraised value of Site C and the City shall remit an
amount equal to the appraised value to the Orange County Auditor-
Controller for determination and distribution of the Each Taxing Entity's
Proportionate Share of the Disposition.
(iv) If, for any reason, fee title to all or a portion of Site C reverts to or is re-
vested in the City following conveyance of Site C to the Developer
pursuant to the Site C Agreement, but prior to completion of Grove
District Resort Hotel Development more particularly described in the Site
C Agreement, then, subject to the then existing rights, if any, of third
parties, City shall use best efforts to market and expeditiously dispose of
such portion of Site C to another developer for development and operation
of a similar resort hotel, retail, and entertainment project on Site C by
January 1, 2018. In the event of such reversion or re-vesting of fee title to
Site C to the City, and the City has not disposed of Site C to another
developer as provided in the foregoing sentence within three (3) years
after the date of such reversion or re-vesting, then the City shall, upon
agreement amongst the Parties, be granted an additional year to dispose of
the property. If the Site C, however, is not disposed at the end of the
aforementioned three (3) year period, or the aforementioned extension of
time, if applicable, the Parties shall have an appraisal of Site C performed
by a mutually agreed upon appraiser, at the City's cost, to determine the
value of Site C and expeditiously market and sell the property using the
appraised value of the Site C. Upon sale of Site C, the City shall remit the
Disposition Proceeds to the Orange County Auditor-Controller for
determination and distribution of Each Taxing Entity's Proportionate
Share of the Disposition Proceeds. Unless otherwise mutually agreed by
all of the Taxing Entities through an amendment to this Agreement,if City
conveys any re-vested portion of Site C for any purpose other than for
development and operation of a similar resort hotel, retail, and
entertainment project on Site C, then such conveyance shall be at no less
10935L1
than fair market value, as determined by an appraisal performed by an
appraiser mutually acceptable to all of the Parties.
(v) The Parties acknowledge that,upon mutual agreement, this Subsection (b)
may be amended to allot the City additional time to dispose of Site C.
5. Payment of Proportionate Share of Disposition Proceeds to Taxing Entities. Within
fifteen business (15) days after the City receives Disposition Proceeds, if any, in conjunction
with the disposition of either Site C or the Vacant Restaurant Parcel, the City shall remit such
Disposition Proceeds to the Orange County Auditor-Controller for determination mid distribution
to the Taxing Entities of Each Taxing Entity's Proportionate Share of the Disposition Proceeds.
6. Time.Time is of the essence in the performance of this Agreement.
7. Limitation of Liability of Other Taxing Entities to Citv. The OTEs shall not be liable to
the City, and the City hereby waives and discharges all claims against the OTEs, for any and all
liability, demands, claims, costs, losses, injuries, damages, recoveries, settlements, and expenses
(collectively, "Claims") resulting from, or in any way connected with or incidental to, the
transfer of title of Site C and/or the Vacant Restaurant Property to the City or the City's
management of the Site C and the Vacant Restaurant Property during the term of this Agreement,
no matter how caused. This provision shall survive any termination of this Agreement.
8. Indemnification of OTEs by City for Third Party Claims. The City shall indemnify,
defend, and hold harmless each OTE and its officers, agents, and employees, from and against
any Claims arising out of or related to this Agreement made by the California Department of
Finance,the State Controller, and/or any third party not a party to this Agreement.
9. AttomesFees. In any action between the Parties to enforce or interpret any of the terms
of this Agreement, each Parry shall bear its own attorneys' fees and costs.
10. Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the internal laws of the State of California, without regard to conflict of law
principles.
11. Entire Agreement. This Agreement contains the entire agreement between the Parties
respecting the matters set forth herein, and supersedes all prior agreements between the Parties
respecting such matters.
12. Non-liability of Officials and Emplovees of Parties. No member, official, or employee of
any Party shall be personally liable to any other Party, or any successor in interest, in the event of
any default or breach of this Agreement or for any amount which may become due hereunder, or
on any obligation under the terms of this Agreement.
1049357.1
13. Successors and Assigns. All the terms, provisions and conditions of the Agreement shall
be binding upon and inure to the benefit of the Parties and their respective successors, assigns
and legal representatives.
14. No Third Party Beneficiaries. No person or entity other than the Taxing Entities,and the
permitted successors and assigns of each of them, shall be authorized to enforce the provisions of
this Agreement.
15. Severability. In case any one or more of the provisions contained in this Agreement shall
for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this Agreement, but this
Agreement shall be construed as if such invalid,Illegal, or unenforceable provisions had not been
contained herein.
16. No Waiver. No waiver of any term or condition of this Agreement will be a continuing
waiver.
17. Counterparts. This Agreement may be executed in counterparts, each of which so
executed shall, irrespective of the date of its execution and delivery, be deemed an original, and
all such counterparts together shall constitute one and the same instrument. The signature page
of any counterpart may be detached therefrom without impairing the legal effect of the
signature(s) thereon provided such signature page is attached to any other counterpart identical
thereto having additional signature pages executed by the other Parties. Any executed
counterpart of this Agreement may be delivered to the other Parties facsimile or electronic mail
and shall be deemed as binding as if an originally signed counterpart was delivered.
SIGNATURES ON FOLLOWING PAGES
IM9357.1
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their
duly authorized representatives indicated below.
CITY OF GARDEN GROVE,a municipal corporation
By:
City anger
ATTEST'�: )J
By: �`aXf' . elp— l_iJ ✓
Kathleen Bailor
City Clerk
APP VED AS TO FORM
�a
A
De .my City Attorney
City of Garden.Grove
DATED:..
SIGNATURES CONTINUE ON FOLLOWING PAGES
1M9357.1
Attachment A
The undersigned signatory hereby executes this Agreement on behalf of the County of Orange
and each of the follawing entities and/or funds:
ORANGE COUNTY GENERAL FUND
ORANGE COUNTY PUBLIC LIBRARY
O.C.HARBORS BEACHES AND PARKS CSA 26
EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF)
APPROVED AS TO FORM
COUNTY COUNSEL r
By: Date:
SIGNED AND CERTIFIED THAT A COPY COUNTY OF ORANGE, a political
OF THIS DOCUMENT HAS BEEN subdivision of the State of California
DELIVERED TO THE CHAIR OF THE
BOARD PER GC § 25103,RESO.79-1535
By:JDJb ' Chair o Bo of Supervisors
Susan Novak
Clerk of the Board of Supervisors
Orange County California
SIGNATURES CONTINUE ON FOLLOWING PAGES
10493573
Page 9 of 25
AttachmentA
APPROVED AS TO FORM
COUNTY COUNSEL .�
By= Date: II �.DI
SIGNED AND CERTIFIED THAT A COPY ORANGE COUNTY FLOOD
OF THIS DOCUMENT HAS BEEN CONTROL DISTRICT, a body
DELIVERED TO THE CHAIR OF THE corporate and politic
BOARD PER GC § 25103,RESO. 79-1535
.T. ? f
B (' Chair e B a of Supervisors
Susan Novak
Clerk of the Board of Supervisors
Orange County California
SIGNATURES CONTINUE ON FOLLOWING PAGES
104M.1
Page 10 of 25
ORANGE COUNTY SANITATION DISTRICT
By:
Name: Tom Beamish
Its: Board Chair
ATTEST:
By:
Name: ell . Lore
Its: Acting Clerk of the Board
APPROVED AS TO FORM:
LEWIS BRISBOIS BIS1G1AARD& SMITH,LLP
By:
Special C
SIGNATURES CONTINUE ON FOLLOWING PAGES
1049357.1
ORANGE COUNTY WATER DISTRICT, a political subdivision of the State of California
organized under Chapter 924 of the Statutes of 1933, as amended
By:
Name:
Its:
ATTEST:
By:
Name:
Its:
APPROVED AS TO FORM:
By:
Name:
Its:
SIGNATURES CONTINUE ON FOLLOWING PAGES
IN93i9J
ORANGE COUNTY MOSQ,UI/TO AND VECTOR CONTROL DISTRICT
By: _ /�mka�
Michael Hearst
District Manager
ATTEST:
By: ,,,��j
Name: V�I�( ��^rF- �-
Its: Secretary
APPROVED A//SS TO FORM:
By: !/�-+k �,
Alan R.Burns
District Counsel
SIGNATURES CONTINUE ON FOLLOWING PAGES
1049357.1
ORANGE COUNTY TRANSPORTATION AUTHORITY, a public entity
By: _ 'Q/ j
Darrcll J s
Chief E t
cutive Officer
ATTEST:
By:
Name:
Its:
APPROVED AS TO FORM:
By:
Name: T'A/�$ n/• //}} N IG
Its: CTBNI�AC &UoJSEC
SIGNATURES CONTINUE ONFOLLOWING PAGES
IW9M.1
GARDEN GROVE SANITARY DISTRICT, a subsidiary special district of the City of
Garden Grove
By:
n<..»r,e.,, r > _, Alta' + Roeder
General Manager
ATTEST:
/
By:
Kathleen Bailor
Secretary
APPROVED AS TO FORM
JA S EGG R
D uty City Attorney
City of Garden Grove
DATED:
SIGNATURES CONTINUE ONFOLLOWING PAGES
10493571
ORANGE COUNTY SUPERINTENDENT OF SCHOOLS
On behalf of the Orange County Department of Education
By:
Wendy nkert, Ed. D.
Associate Superintendent for Business Services
ATTEST:
By:
Name:
Its:
APPROVED AS /T,,OFORM:
/
By: �° �+� A- 0&�J
Ronald D. Wenkan
General Counsel
SIGNATURES CONTINUE ON FOLLOWING PAGES
1069357.1
GARDEN GROVE UNIFIED SCHOOL DISTRICT
By: ;4 -
Rick Nal ano
Assistant Superintendent Business Services
ATTEST:
By:
Name:
[ts:
APPROVED AS TO FORM:
By
Name:
Its:
SIGNATURES CONTINUE ON FOLLOWING PAGE
IN9357.I
RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT
By:
Peter J. Hardas
Vice Chancellor Business Operations/Fiscal Services
ATTEST:
By:
Name:
Its:
APPROVED AS TO FORM:
By:
Name:
Its:
IN935/.1
STEERING COMMITTEE Meath,Dale TOBd 0111 ,.
04/22/15 oa/z2/1s
AGENDA REPORT Item Number Item Number
3
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Nick Arhontes, Director of Facilities Support Services
SUBJECT: AMENDMENT TO AGREEMENT WITH EOCWD
GENERAL MANAGER'S RECOMMENDATION
Approve first amendment to Agreement with East Orange County Water District
(EOCWD), relating to the proposed transfer of ownership of local sewers in Service
Area 7, and the appropriate reserve balances.
SUMMARY
OCSD entered into an agreement with EOCWD on February 27, 2014 to transfer
ownership and the responsibility for the local sewers in Service Area 7 from OCSD to
EOCWD. The Agreement provided a timeline for the completion of the transfer and
milestones for the transfer of the reserves for these specific assets.
The transfer process requires the approval of the Orange County Local Agency
Formation Commission (LAFCO), and, although that process commenced in a timely
manner, the LAFCO process has taken longer than both parties anticipated. The
parties desire to amend the Agreement to extend the timelines and termination date to
reflect the current status of the LAFCO process. Also, the reserves will now be
transferred at one time instead of in two installments. We have also added new
language to prohibit the diversion of wastewater. This will help us ensure that flows will
continue to be routed to OCSD so we can continue to meet our contractual obligations
to the Orange County Water District (OCWD).
PRIOR COMMITTEE/BOARD ACTIONS
February 2014 — Board approved Local Sewer Facilities Transfer Agreement
November 2013 — Five Year Strategic Plan and prior OCSD Strategic Plans support the
transfer.
ADDITIONAL INFORMATION
OCSD currently owns and operates 174 miles of local sewer in Service Area 7, located
in the City of Tustin and unincorporated county areas north of Tustin, including the El
Modena islands.
Page 1 d 2
Our Strategic Plan includes an initiative to transfer these local sewers to a local (retail)
agency. LAFCO received a briefing on OCSD's Strategic Plan in 2011. They supported
our long-term goal to transfer local assets to local jurisdictions so we could focus our
attention on regional sewer collection and treatment.
In 2013 the City of Tustin asked for and was granted additional time to consider
accepting the transfer of the subject local sewers in Service Area 7. After the City
indicated that it was no longer interested in obtaining the local facilities, EOCWD
expressed its interest in acquiring 100% of the local sewers from OCSD and requested
information on the local sewer system.
The proposed transfer of ownership of the local sewers requires an OC LAFCO-
approved reorganization because the boundaries of Service Area 7 cover several
jurisdictions. EOCWD initiated the OC LAFCO process in March 2014 by filing an
application for reorganization. OC LAFCO's estimated timeline (attached) shows that
the process was expected to take approximately nine months to conclude. Based upon
this timeline, the reorganization process should have been completed in December
2014.
The proposed transfer agreement will be essentially cost/revenue neutral to OCSD.
The fees currently collected by OCSD for local sewer service will be collected by
EOCWD after the proposed transfer is completed. EOCWD will then assume
responsibility for ownership and all maintenance and repair costs, as well as capital
improvement and replacement costs.
The assets included in the proposed transfer serve approximately 18,000 parcels. The
entire local sewer system is comprised of gravity sewers ranging between 4 and 27
inches in diameter, however the vast majority of the assets are 8-inch Vitrified Clay Pipe
(VCP). There are no pumping facilities. OCSD's regional sewer fees and
responsibilities for regional collection, transport and treatment are separate and not
affected by this transfer of local sewer assets.
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) maybe viewed on-line at the OCSD website (Mm w.ocsd.com) with the
complete agenda package:
• First Amendment to Local Sewer Facilities Transfer Agreement
• Local Sewer Facilities Transfer Agreement
• OC LAFCO Estimated Timeline (schedule)
• OC LAFCO letter of March 9, 2011
Page 2 d 2
FIRST AMENDMENT TO
LOCAL SEWER FACILITIES
TRANSFER AGREEMENT
THIS FIRST AMENDMENT TO LOCAL SEWER FACILITIES TRANSFER
AGREEMENT ("Agreement') is made this _ day of , 2015
("Effective Date") by and between the ORANGE COUNTY SANITATION
DISTRICT ("OCSD"), a duly organized County Sanitation District existing
pursuant to California Health and Safety Code section 47000 at seq., and the
EAST ORANGE COUNTY WATER DISTRICT ("EOCWD"), a duly organized
County Water District existing pursuant to California Water Code section 30000
at seq. OCSD and EOCWD are sometimes hereinafter individually referred to as
"Party" and hereinafter collectively referred to as "Parties".
RECITALS
WHEREAS, OCSD and EOCWD are Parties to that certain "Local Sewer
Facilities Transfer Agreement," dated February 27, 2014 ("the Agreement"), in
which the Parties set forth their intent to cooperate in the transfer of ownership in
and the assumption of responsibility for certain local sewer facilities from OCSD
to EOCWD; and
WHEREAS, the transfer process requires the approval of the Orange
County Local Agency Formation Commission ("LAFCO"), and, although that
process commenced in a timely manner, the LAFCO process has taken longer
than the Parties anticipated; and
WHEREAS, the Parties therefore desire to amend the Agreement to
extend the timelines and termination date to reflect the current status of the
LAFCO process; and
WHEREAS, the Agreement provides for two disbursements of Annual
Sewer Service User Fee reserves from OCSD to EOCWD, totaling $25 million;
and
WHEREAS, the Parties desire to amend the Agreement to provide for a
single disbursement of the $25 million Annual Service User Fee reserves from
OCSD to EOCWD; and
WHEREAS, the Agreement does not address the diversion of wastewater
from Service Area 7; and
WHEREAS, the Parties desire to amend the Agreement to prohibit the
diversion of wastewater by EOCWD from Service Area 7.
Page 1 of 4
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises set forth
herein, the Parties agree as follows:
1. Extension of Timelines. In order to reflect the changed
circumstances with regard to the timeline for completion of the transfer,
"December 1, 2014" in subsections 2.a. and 3.d. shall be amended to read
"December 31, 2015"; and "July 1, 2015" and "2014-2015 Fiscal Year" in
subsection 31i. shall be amended to read, respectively, "July 1, 2016" and
"2015-2016 Fiscal Year."
2. Amendment to Section 4.
i. Subsection 4.d. shall be amended to read as follows:
d. Within five (5) business days following the Date of
Reorganization, OCSD shall transfer to EOCWD $25,000,000.00
(twenty-five million dollars) via wire transfer of the Annual Sewer
Service User Fee reserves attributable to the Local Sewer Facilities
("Disbursement").
ii. Subsections 4.e., 41, 4.g., 4.h. and 4.i. shall be deleted in
entirety.
iii. New subsection 4.e. shall be added to read as follows:
e. If, prior to the Date of Reorganization, OCSD
identifies the need for a major repair or replacement of the Local
Sewer Facilities, and after notifying EOCWD of the identified need,
OCSD conducts such major repair or replacement, the amount of
reserves transferred with the Disbursement shall be reduced by the
amount of costs incurred by OCSD in connection with the required
work.
iv. New subsection 4.f. shall be added to read as follows:
f. Within six (6) months following the date of
Disbursement, OCSD shall reconcile its records and transfer to
EOCWD the remainder of the Annual Sewer Service User Fee
reserves in its possession, if any, attributable to the Local Sewer
Facilities.
V. Subsections 4.j. and 4.k. shall be renumbered as 4.g. and 4.h.
respectively.
Page 2 of 4
3. Amendment to Section 6. Section 6 shall be amended to read as
follows:
6. Term. This Agreement shall commence on the
Effective Date and continue in full force and effect through
December 31, 2015. The Parties may mutually agree in writing to
extend the term of this Agreement. The Agreement shall
automatically terminate if LAFCO disapproves the Proposal.
4. New Section 20. New Section 20 shall be added to read as follows:
20. Prohibition on Diversion of Wastewater. OCSD has
planned and constructed regional conveyance and treatment
facilities to serve Service Area 7. OCSD is contractually obligated
to provide treated wastewater effluent from its entire service area,
inclusive of Service Area 7, to Orange County Water District.
EOCWD agrees that all parcels in Service Area 7 shall continue to
be customers of OCSD, and that all wastewater flows from these
parcels will continue to flow to OCSD for treatment. EOCWD shall
not divert wastewater away from OCSD for any purpose, including
but not limited to scalping wastewater for reuse.
IN WITNESS WHEREOF, the Parties hereto have executed this
Agreement on the dates set forth below.
ORANGE COUNTY SANITATION
DISTRICT
By Date
James D. Herberg
General Manager
ATTEST:
Kelly A. Lore
Clerk of the Board
APPROVED AS TO FORM:
Brad Hogin
General Counsel
Page 3 of 4
EAST ORANGE COUNTY WATER DISTRICT
By Date
Lisa Ohlund
General Manager
ATTEST:
APPROVED AS TO FORM:
Joan Arneson
General Counsel
Page 4 of 4
LOCAL SEWER FACILITIES
TRANSFER AGREEMENT
THIS LOCAL SEWER FACILITIES TRANSFER AGREEMENT
("Agreement") is made this �q day of f b- , 2014 ("Effective Date") by
and between the ORANGE COUNTY SANITATION DISTRICT ("OCSD"), a duly
organized County Sanitation District existing pursuant to California Health and
Safety Code section 47000 at seq., and the EAST ORANGE COUNTY WATER
DISTRICT ("EOCWD"), a duly organized County Water District existing pursuant
to California Water Code section 30000 at seq. OCSD and EOCWD are
sometimes hereinafter individually referred to as "Party' and hereinafter
collectively referred to as "Parties".
RECITALS
WHEREAS, OCSD owns and operates regional wastewater collection,
conveyance, treatment, and disposal facilities within its 471 square mile service
area;
WHEREAS, OCSD owns and operates the local wastewater collection and
conveyance system, encompassing approximately 174 linear miles of sewer lines
and serving more than 18,000 connections, within the area known as Service
Area 7, which area is more particularly identified in Exhibit "A" attached hereto
and incorporated herein by reference;
WHEREAS, OCSD desires to transfer to EOCWD: (a) its ownership of
certain local sanitary sewer lines and appurtenant facilities located in Service
Area 7 ("Local Sewer Facilities"), which are more particularly described and
delineated in attachments 1 and 2 of Exhibit "B" attached hereto and
incorporated herein by reference, and (b) the responsibility for providing local
sewer service to Service Area 7;
WHEREAS, EOCWD desires to acquire ownership and assume
responsibility for the Local Sewer Facilities and to accept responsibility for
providing local sewer service to Service Area 7;
WHEREAS, the transfer of ownership in and the assumption of
responsibility for the Local Sewer Facilities to EOCWD will require the approval
of the Orange County Local Agency Formation Commission ("LAFCO"); and
WHEREAS, following the transfer to EOCWD of the Local Sewer
Facilities, OCSD shall retain its power to provide regional sewer service within
the entirety of Service Area 7.
Page 1 of 10
9856621
AGREEMENT
NOW, THEREFORE, in consideration of the mutual promises set forth
herein, the Parties agree as follows:
1. Recitals. The recitals set forth above are true and correct and are
incorporated into this Agreement.
2. Cooperation.
a. OCSD and EOCWD shall work cooperatively to complete the
successful transfer from OCSD to EOCWD of the Local Sewer Facilities and the
assumption of responsibility for ongoing operation and maintenance of the Local
Sewer Facilities by EOCWD by no later than December 1, 2014. Both Parties
shall execute any further documents consistent with the terms of this Agreement,
including documents in recordable form, necessary or appropriate to fulfill the
obligations imposed by this Agreement.
3. LAFCO Proposal.
a. Initiation of Proceedings. EOCWD shall, within one month
(30 days) from the Effective Date, initiate proceedings under the Cortese-Knox-
Herzberg Local Government Reorganization Act of 2000, as amended,
Government Code section 56000, et seq., requesting LAFCO approval of a
reorganization proposal (the "Proposal"). The resolution of application enacted
by EOCWD and submitted to LAFCO shall propose that LAFCO's approval of the
Proposal shall be subject to the terms and conditions of this Agreement.
EOCWD shall be solely responsible for the direct costs incurred in connection
with the initiation and processing of the Proposal, and LAFCO approval thereof,
including without limitation any LAFCO deposits, application or processing fees,
and the cost of preparing any legal descriptions, boundary surveys or maps. The
Proposal shall consist of the following:
i. The annexation of certain territory within Service Area 7
that is not within the current boundaries of EOCWD; and
ii. A proposal by EOCWD to provide a new or different
service— "local"sewer service —within the entirety of Service Area 7.
b. Public Outreach. EOCWD desires to proactively inform the
ratepayers within Service Area 7, and the general public, of the Proposal and the
process for implementing it, including opportunities for public involvement. In
furtherance of that desire, OCSD agrees to provide EOCWD with a mailing list of
the property owners in Service Area 7 (consistent with the format used for
Proposition 218 notifications) in an Excel spreadsheet or an Access compatible
(SOL) database format within 30 days of EOCWD's submittal of an application to
LAFCO. In the written materials, EOCWD shall accurately and fairly describe the
Page 2 of 10
9856U.1
proposal and may indicate that the Proposal is jointly proposed and supported by
EOCWD and OCSD. EOCWD shall provide OCSD an opportunity to review and
approve the written material it intends to mail to the property owners in Service
Area 7 prior to such mailing. OCSD shall approve, or request changes to, the
written materials within ten days of receipt. If OCSD fails to approve or request
revisions within 10 days, it shall be deemed to have approved the materials.
OCSD shall approve, or request changes to, revised written materials that
incorporate or respond to OCSD's requests for changes within 5 days of receipt,
or the materials shall be deemed approved. All costs of producing such material
and mailing it will be paid by EOCWD.
C. Letter of Support. OCSD shall cooperate with EOCWD and
use its best efforts to support the Proposal in accordance with the terms of this
Agreement. OCSD shall, within 45 days of EOCWD's filing of the Proposal with
LAFCO, file with LAFCO a formal Letter of Support in favor of the Proposal
executed by the General Manager ("Letter of Support"). The Letter of Support
shall propose that LAFCO's approval of the Proposal shall be subject to the
terms and conditions of this Agreement. OCSD shall execute such documents
and take such other actions to support and facilitate the processing of the
Proposal as may be reasonably requested by EOCWD, provided such actions
shall not result in any cost or expense to OCSD (other than overhead and
employee staff time).
d. Continuing Support for Proposal. The Parties agree to
support and not oppose the Proposal before and after it is initiated. Specifically,
OCSD and EOCWD will cooperate and consult with one another in responding to
questions and inquiries from LAFCO, the public and the press, appear in support
of the Proposal at LAFCO hearings, and cooperate on a joint response in the
event that LAFCO or LAFCO staff propose to alter the Proposal. Furthermore,
OCSD agrees that, prior to December 1, 2014, or such earlier time as the
LAFCO proceedings have been completed or disapproved, it will not engage in
negotiations with other entities regarding the transfer of the Local Sewer
Facilities. Both Parties shall support the conditioning of LAFCO's approval of the
Proposal on the performance of the terms and conditions of this Agreement. If
LAFCO or LAFCO staff propose an alteration to the Proposal that materially
diverges from the terns and conditions of this Agreement, either Party may, after
consultation with the other Party, appose the alteration, and if necessary,
withdraw its support, and actively oppose LAFCO's approval of the Proposal.
e. Tax Exchange Negotiations and Consultations. The Parties
shall cooperate in seeking to have the Board of Supervisors adopt a property tax
exchange resolution pursuant to Revenue and Taxation Code section 99
exchanging property tax from OCSD to EOCWD. The Parties agree that in the
tax exchange negotiation and consultation process they will jointly support and
advocate for having all of the property tax associated with the Loral Sewer
Facilities be exchanged from OCSD to EOCWD. In Fiscal Year 2012-2013, the
Page 3 of 10
985M2 I
estimated property tax collected for the local sewers was $287,000.00 (two
hundred eighty seven thousand dollars).
f. Local Sewer Service User Fee.
i. OCSD's Annual Local Sewer Service User Fee Cthe Fee")
shall be continued and following the effective date, to the extent feasible, shall be
collected by EOCWD rather than by OCSD. OCSD collects the Fee by reporting
it to the County of Orange, which collects it on the property tax roll, and EOCWD
intends to do the same. Should it not be feasible, due to statutory or County
requirements, for responsibility for collection of the Fee for the 2014-2015 Fiscal
Year to be transferred to EOCWD, OCSD shall account for and transmit, within 5
business days of receipt, any such revenues it receives from the County that are
attributable to the Fee imposed in Service Area 7. OCSD shall rescind the Fee,
as it pertains to the Local Sewer Facilities, by no later than July 1, 2015, or at
such earlier time as EOCWD may enact its own local sewer service user fees.
ii. EOCWD shall indemnify, defend and hold harmless, OCSD,
its officers, directors, employees and agents from and against any and all claims,
actions, damages, liabilities, and expenses (including attorneys fees and
reasonable expenses for litigation or settlement) in connection with or arising out
of OCSD's assessment, distribution, and collection of the Fee, including without
limitation any such claims asserting that the collection by OCSD and transfer of
the Fee to EOCWD violates Proposition 218.
4. Transfer of Local Sewer Facilities.
a. Upon the effective date of LAFCO's approval of the Proposal
and the requested reorganization ("Date of Reorganization"), EOCWD shall
accept ownership of the Loral Sewer Facilities and all maintenance
responsibilities, as well as the responsibility for all sewer spill notification,
reporting, and related regulatory activities. Furthermore, EOCWD shall negotiate,
execute and maintain its own contracts with third-party contractors for line-
cleaning, CCTV, rehabilitation, repairs and replacement, engineering consultants,
and similar services, and directly pay all costs for such contracts-
b. Prior to the Date of Reorganization, EOCWD shall fully
execute and deliver to OCSD the Quitclaim Deed, attached hereto as Exhibit "B",
transferring ownership of the Local Sewer Facilities from OCSD to EOCWD.
C. Within five (5) business days following the Dale of
Reorganization, OCSD shall submit the Quitclaim Deed for recordation in the
Official Records, Orange County California. Upon recordation, OCSD shall
transmit a conformed copy of the Quitclaim Deed to EOCWD.
d. Within five (5) business days following the Dale of
Reorganization, OCSD shall transfer to EOCWD $15,000,000.00 (fifteen million
Page 4 of 10
985662.1
dollars) via wire transfer of the Annual Sewer Service User Fee reserves
attributable to the Local Sewer Facilities ("First Disbursement").
e. On July 1, 2018, OCSD shall transfer to EOCWD
$10,000,000.00 (ten million dollars) via wire transfer of the Annual Sewer Service
User Fee reserves attributable to the Local Sewer Facilities ("Second
Disbursement").
f. If, after the Date of Reorganization and prior to July 1, 2018,
EOCWD identifies the need for a major repair or replacement of the Local Sewer
Facilities, OCSD shall release to EOCWD a mutually agreed upon portion of the
Second Disbursement, as necessary to complete the required work in a timely
manner. Any such release will result in a proportionate reduction of reserves
transferred with the Second Disbursement.
g. If, prior to the Date of Reorganization, OCSD identifies the
need for a major repair or replacement of the Local Sewer Facilities, and after
notifying EOCWD of the identified need, OCSD conducts such major repair or
replacement, the amount of reserves transferred with the First Disbursement,
and if necessary, the Second Disbursement shall be reduced by the amount of
costs incurred by OCSD in connection with the required work.
h. After closing its books for the 2017-2018 Fiscal Year, and by
no later than November 1, 2018, OCSD shall transfer to EOCWD the remainder
of the Annual Sewer Service User Fee reserves, if any, attributable to the Local
Sewer Facilities.
i. OCSD shall pay to EOCWD annual interest at the OCSD
average rate of return on the amount of Annual Sewer Service User Fee
reserves attributable to the Local Sewer Facilities retained by OCSD between the
date of the First Disbursement and the Second Disbursement. OCSD shall make
the annual interest payments after it has closed its books for each respective
fiscal year, but by no later than November 1.
j. Upon the Date of Reorganization, OCSD shall transfer
ownership of the following vehicles to EOCWD: (a) a 2000 Sterling Vector
(OCSD vehicle 470, California license number 1067492, vehicle identification
number (VIN) 2FZ6BJBB81AH61833), and (b) a 1995 FE42 Volvo Hydroflusher
truck (OCSD vehicle 396, California license number 356619, vehicle identification
number (VIN) 4V52AFHDOSR474402). These vehicles shall be provided to
EOCWD "as is" and with no warranties or representations whatsoever as to the
condition of the vehicle, or the suitability of the vehicle for any purpose. EOCWD
hereby acknowledges that it has/will be granted the opportunity to inspect the
vehicles and their maintenance records and has/will do so prior to the Date of
Reorganization.
Page 5 of 10
985662.1
k. On or prior to the Date of Reorganization, OCSD shall allow
EOCWD to review, reference and utilize OCSD established specifications for
line-cleaning, CCTV, rehabilitation, repairs and replacement, and similar
services, as mutually agreed by the Parties.
5. Environmental Review. EOCWD shall act as lead agency for
purposes of the Proposal, and shall be solely responsible for the preparation of
all environmental documentation required pursuant to the California
Environmental Quality Act ("CEQA").
6. Tenn, This Agreement shall commence on the Effective Date and
continue in full force and effect through December 1, 2014. The Parties may
mutually agree in writing to extend the term of this Agreement. The Agreement
shall automatically terminate if LAFCO disapproves the Proposal.
7. Notices. All notices or other communications required or permitted
hereunder shall be in writing and shall be personally delivered, sent by registered
or certified mail, postage prepaid, return receipt requested, or delivered or sent
by electronic transmission, and shall be deemed received upon the earlier of: (i)
the date of delivery to the address of the person to receive such notice if
delivered personally or by messenger or overnight courier; (ii) three (3) business
days after the date of posting by the United States Post Office if by mail; or (iii)
when sent if given by electronic transmission. Any notice, request, demand,
direction, or other communication sent by electronic transmission must be
confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or
other communications shall be addressed as follows:
To OCSD: Orange County Sanitation District
10844 Ellis Avenue
Post Office Box 8127
Fountain Valley, CA 92708-7018
Attn: General Manager
To EOCWD: East Orange County Water District
185 North McPherson Road
Orange, CA 92869-3720
Attn: General Manager
Either Party may from time to time, by written notice to the other, designate a
different address and/or person which shall be substituted for the one above
specified, and/or specify additional parties to be notified.
8. Jurisdiction. In the event of a dispute regarding performance or
interpretation of this Agreement, the venue for any action to enforce or interpret
this Agreement shall lie in the Superior Court of California for Orange County.
Page 6 of 10
985M2.1
9. Governing Law. This Agreement shall be governed by the laws of
the State of Calffomia.
10. Entire Agreement. This Agreement constitutes the entire
understanding and agreement between the Parties and supersedes all previous
negotiations between the Parties pertaining to the subject matter thereof.
11. Waiver. A waiver of a breach of the covenants, conditions or
obligations under this Agreement by either Party shall not be construed as a
waiver of any succeeding breach of the same or other covenants, conditions or
obligations of this Agreement.
12. Modification. Alteration, change or modification of this Agreement
shall be in the form of a written amendment, which shall be signed by each Party.
13. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be invalid under the
applicable law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of that provision, or the
remaining provisions of this Agreement.
14. No Obligation to Third Parties. Execution and delivery of this
Agreement shall not be deemed to confer any rights upon others, directly,
indirectly or by way of subrogation, and shall not obligate either of the Parties
hereto to any person or entity other than each other and their respective
affiliates.
15. Successors. This Agreement and the provisions contained herein
shall be binding upon and inure to the benefit of OCSD, EOCWD, and their
respective heirs, executors, administrators, personal representatives, successors
and assigns.
16. Indemnification.
a. EOCWD shall indemnify, defend and hold harmless OCSD,
its officers, directors, employees and agents from and against any and all claims,
actions, damages, liabilities and expenses (including attorney's fees and
reasonable expenses for litigation or settlement) for any loss or damage,
including death, bodily injury or damage to or loss of use of property, caused by
negligent acts or omissions or willful misconduct by the EOCWD, its officers,
directors, employees and agents in connection with or arising out of the
performance of this Agreement.
b. OCSD shall indemnify, defend and hold harmless EOCWD,
its officers, directors, employees and agents from and against any and all claims,
actions, damages, liabilities and expenses (including attorney's fees and
Page 7 of 10
995662.1
reasonable expenses for litigation or settlement) for any loss or damage,
including death, bodily injury or damage to or loss of use of property, caused by
negligent acts or omissions or willful misconduct by OCSD, its officers, directors,
employees and agents in connection with or arising out of the performance of this
Agreement.
C. The Parties acknowledge that LAFCO policy requires
applicants to defend, indemnify, hold harmless, and release LAFCO, its agents,
officers, attorneys, and employees from any claim, action, or proceeding brought
against any of them, the purpose of which is to attack, set aside, void, or annul
the approval of the application or the environmental document that accompanies
it. The parties further acknowledge that this indemnification obligation will
include, but not be limited to, damages, costs, expenses, attorney fees, or expert
witness fees that may be asserted by any person or entity, including the
applicant, arising out of or in connection with the approval of the application. As
the applicant, EOCWD will be required to execute such an indemnification
agreement with LAFCO, and, as a result, EOCWD may incur substantial costs
paying for LAFCO's defense and indemnifying any liability. Notwithstanding
anything to the contrary in the foregoing, If LAFCO does not approve the
EOCWD Proposal, OCSD agrees to pay one-half of EOCWD's actual costs,
associated with indemnifying LAFCO pursuant to the indemnification agreement
it will be obligated to sign, as those costs are incurred; however, OCSD's
payment hereunder shall not exceed $100,000.00 (one hundred thousand
dollars) in total. Furthermore, if LAFCO approves the EOCWD Proposal, OCSD
shall have no obligation to pay any of EOCWD's actual costs associated with
indemnifying LAFCO. EOCWD shall promptly advise OCSD if the
indemnification agreement it is obligated to sign as the applicant is materially
different than described in this paragraph, and it shall notify OCSD if LAFCO
notifies EOCWD of a legal challenge covered by the indemnification agreement.
17. OCSD Board of Directors. The Parties acknowledge that nothing
contained herein shall entitle EOCWD to a seat on the OCSD Board of Directors,
and that any such change would require an amendment to Health and Safety
Code section 4730.65, which governs the composition of the OCSD Board of
Directors.
18. No Warranty of Title or Condition. OCSD makes not warranty or
representation of any kind regarding its title to the Local Sewer Facilities, the
condition of the Local Sewer Facilities, or the suitability of the Local Sewer
Facilities for any purpose. EOCWD has been granted an opportunity to fully
inspect the Local Sewer Facilities and has done so as of the Effective Date.
EOCWD accepts the Local Sewer Facilities "as is".
19. Authorization. Each of the undersigned represents and warrants
that he or she is duly authorized to execute and deliver this Agreement and that
such execution is binding upon the entity for which he or she is executing this
document.
Page 8 of 10
985662.1
(SIGNATURES ON FOLLOWING PAGEI
Page 9 of 10
995662.1
IN WITNESS WHEREOF, the Parties hereto have executed this
Agreement on the dates set forth below.
ORANGE COUNTY SANITATION
DISTRICT
By Date Z
Troy Edgar,
Chairman of the Poard
ATTEST: �p
W
M ria Ayala
C erk of the Board
APPROVP AS TO FORM:
--
BradtHogin
General Counsel
EAST ORANGE^COUNTY 9WATER DISTRICT
By �^f�M Date
William VanderWerff
President of the Board of 'r tors
ATTEST:
APPROVED AS TO FORM:
Gefter0SCI
Page 10 of 10
"5662.1
EXHIBIT "A"
SERVICE AREA 7
9ffibfi1
Estimated Timeline
(prepared 1211212013)
East Orange County Water District Reorganization
TASK RESPONSIBLE PARTY COMPLETION DATE
Submit LAFCO Application
• District resolutions(EOCWD and OCSD) Applicant 1/22/2013
• Application and filing fees
• Plan of Services
• CEOA:timeline assumes a NOE; if ND or
Mitigated ND used,timeline may be extended
Application Status Letter,AB 8 Letter and Preliminary LAFCO 2/11/2014
Staff Report(PSR)issued
EOCWD submits Map and Legal Description to LAFCO Applicant Mid-March 2014
(includes review and approval by County Surveyor)
Assessor issues report to Auditor identifying TRAs and Assessor 3/30/2014
AV
Auditor issues report identifying amount of negotiable Auditor Mid-May 2014
property tax
County adopts property tax resolution on behalf of both County 6/17/2014
EOCWD and OCSD
If application complete, EO issues Certificate of Filing LAFCO 6/30/2014
and sets a hearing date
Preparation of staff report, resolution LAFCO June 2014
Public hearing notice LAFCO June 6,2014
LAFCO hearing LAFCO July 9,2014
Request for reconsideration LAFCO July 10,2014—
August 11, 2014
Period of protest (assumes 45-day protest period) LAFCO August 14,2014—
September 29,
2014
Protest hearing date LAFCO September 29,
2014
Tabulate protest(if any) LAFCO September 29—
October3, 2014
Recordation' LAFCO October 6,2014
'Timeline can be delayed If:(1)a competing application is filed, (2)an interested party files a request for
reconsideration(requiring a second LAFCO hearing date);(3)sufficient protest is filed to push the
proposal to an election.
a` LOCAL AGENCY FORMATION COMMISSION
ORANGE COUNTY
March 9,2011
EC
CHNR Larry R.Crandall,Chair
JOHN MOORLACH
s pe�cY Orange County Sanitation District(OCSD)
, DIWa 108"Ellis Avenue,
VICECIWR Fountain Valley,CA 92708-7018
CHARLEYWILSON
pirector
Sarw Mar9�rip
Wd[x D6Ria
Dear Chair Crandall,
PAT BATES
Superww
5,nrsmct The OCSD staff recently presented your agency's "Five-Year Strategic
PETER HERZOG Plan" to the staff of the Orange County Local Agency Formation
ar o'larer rea (LAFCO). At that meeting, OCSD staff requested that LAFCO write a
letter supporting the following goal identified in your Strategic Plan:
suS WILSON
Repese Ca &
G�PpDnp "Local Sewer Service-Transfer back to cites and
JOHN WRHERS sanitary districts local sewer assets that are not
o'1 .eRnm wareromvia serving a true regional purpose.
Ojr ,
Targeted for completion in FY 12-13"
ALTERNRTE
BILLCAMPBELL
3 ova The Commission understands that OCSD's eventual goal is to focus
district resources on regional sewer collection and treatment. The
ALTERNATE Commission also recognizes that there are many challenging issues that
JAMES FISLER
Dir < r OCSD and our Orange County cities and/or special districts must
MCa3(An fldate0
W.,Dho,a mutually resolve before any transfer of local sewer assets can occur.
ALTERNATE
DEREK J.MCGREGOR The Commission discussed the request of the OCSD staff at its March 9"
Re zN PuNkmweof
2011 meeting. The Commission noted that,while LAFCO has no purview
General
over contracts between two public agencies, and there remain outstanding
BOB RING service and infrastructure issues among some local and regional sewer
Cou do a ber
C,nr wnoa: providers,it generally supports OCSD's goal in the long-term.
JOYCE CROSIHWANE
&ecutive Oipter
I
J Moorlach
Chair,LAFCO
12 Civic Center Plaza.Room 235.Santa Ana.CA 92701
(714)834-2556•FAX(714)8342643
hup://Wa✓w.oclafco.org
STEERING COMMITTEE faeaoa/tlnzz/zolsgoate ro ea.of DV—
AGENDA REPORT Item Number Item Number
a —
Orange County Sanitation District
FROM: James D. Herberg, General Manager
SUBJECT: SELECTION OF HONOR WALK RECIPIENTS
GENERAL MANAGER'S RECOMMENDATION
A. Approve nominated retired employees, Jim Ruth and Bill Wallin, as Honor Walk
brick recipients for the year 2015.
B. Consideration of past Board Member Shirley McCracken and former Board of
Director's Legal Counsel, Tom Woodruff as Honor Walk brick recipients for the
year 2015.
SUMMARY
The Steering Committee is being asked to consider and act on the nominations for the
2015 Honor Walk.
PRIOR COMMITTEE/BOARD ACTIONS
June 2008 - Board adopted Resolution No. OCSD 08-08 establishing a policy for naming
facilities and placing of monuments and other memorials.
ADDITIONAL INFORMATION
In 2008, the Steering Committee adopted a resolution that provided a framework for
recognizing past Board Members and retired staff for their outstanding contributions. One
of the results of this resolution and the discussions that followed was the creation of the
Honor Walk in front of the Administration Building at Plant No. 1 in 2009 with the first
honoree recognized in 2010.
Honorees could be past board members or retired staff who made significant
contributions to OCSD and the people it serves.
The policy and procedures developed by the Steering Committee stipulate that the
General Manager makes recommendations to the Steering Committee for retired staff
nominees and the Steering Committee will deliberate and decide on past Board members.
Page 1 of 2
The criteria adopted by the Board of Directors for selecting an Honor Walk are:
• Have a long standing affiliation with the Orange County Sanitation District.
• Enhanced the quality of operations and/or leadership directly contributing to the
well-being of the District and people served by the District.
• Made an exceptional contribution to the community through their leadership,
involvement or substantial commitment of time or improvement of the quality of
life.
PAST BOARD MEMBER NOMINEE
This year, past Board Member Shirley McCracken was nominated for the Honor Walk by
current Board Member Lucille Kring and former Board of Director's Legal Counsel, Tom
Woodruff was nominated by Director of Engineering, Rob Thompson.
Attached are the nomination forms for Shirley McCracken and Tom Woodruff submitted
for consideration by the Steering Committee.
RETIRED STAFF NOMINEES
Four employees were nominated for the Honor Walk this year. An employee committee
representing different divisions and various years of service reviewed the four candidates.
Based on the review of the nominees, the employee committee recommended two out of
the four employees to the Executive Management Team (EMT). The EMT unanimously
accepted these two recommendations based on the employees who have made
significant, unique, and outstanding contributions to OCSD and the General Manager is
recommending both for the Honor Walk this year.
The Employee Nominees are: Jim Ruth 2005 -2013 ( 7 years)
Bill Wallin 1996 - 2008 (12 years)
Copies of the nomination forms for these two employee nominees are attached for your
information.
The Honor Walk ceremony will be held on May 27, 2015 at 4:00 p.m.
ATTACHMENT
The following attachment(s) are included in hard copy and may be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
• Honor Walk Nomination Forms
Page 2 of 2
ORANGE COUNTY SANITATION DISTRICT
HONOR WALK NOMINEE FORM
Please complete this form and return it to the OCSD Public Affairs Office.
Name of nominee Jim Ruth
Relationship to OCSD Former General Manager
On a separate sheet, please describe:
• The length and nature of the nominee's relationship to OCSD;
• How he or she has enhanced the quality of operations and/or leadership;and
How the nominee has made an exceptional contribution to the District or people served
by the District.
Please use the attached leadership competencies and resolution adopted by the Board of
Directors establishing the program,as reference.
Nominees should be past Board Members or retired employees.
Name of requestor Jeff Reed
Phone/email address 7144
Department head approval* Date
General manager approval" Date
Steering Committee Yes No Date
approval
"Required for employee nominations only.
Honor Walk Nominee January 29,2015
James D. Ruth,General Manager, Retired
The length and nature of the nominee's relationship to OCSD:
Mr. Ruth contributed almost 7.5 years of service to the District as its General Manager. He
faithfully served the District from December 2005 until his departure at the end of March 2013
by providing strong leadership and management through the worst economic time in the
District's history and the completion of its consent decree.
How he or she has enhanced the quality of operations and/or leadership:
Mr. Ruth made countless enhancements to both the quality of operations and leadership of the
Sanitation District over his tenure. His contributions were significant in the form of ideas on
program enhancements that served to improve quality of operations, ranging from financial to
administrative to human resources. He also backstopped many technical issues.
Mr. Ruth played the kev role in enhancing Sanitation District leadership and management, not
only by example but by establishing the profession of management program and leadership
academies. In addition, he served as coach and mentor to many leaders who are employed at
the District today.
How the nominee has made an exceptional contribution to the District or people served by the
District.,
Mr. Ruth's contributions to the District and the people it serves also came In many forms,
ranging from streamlining Board operations to unifying revenue programs to implementing
pension reform to solidifying labor relations as examples. But more than that,Mr. Ruth brought
to the District and served its constituents with authentic,transformational leadership. Mr. Ruth
made progressive,productive changes for the District. He was keenly aware of expectations.
Mr. Ruth earned credibility and trust through his actions. He demonstrated self-sacrifice,
inspired a shared vision, encouraged employees, showed genuine concern,enabled others to
act by giving them the tools to be successful, and showed confidence in the people he helped.
Mr. Ruth was honest,optimistic, and hopeful in his leadership,of which all benefited the
District and the people it serves by buffering it through the worst economic times of most of
our lives and by delivering on full secondary treatment,which resulted in: "Promise Kept.
Challenge Met. On Time—On Budget."
Honor Walk Recommendation: Bill Wallin
Bill Wallin was a full-time employee at the Orange County Sanitation District for a long time,
working in Division 860 as a Lead Instrumentation Technician. When he passed away, many of
the Operations and Maintenance personnel attended his funeral in Garden Grove.
Bill enhanced the quality of operations in many ways including pushing us into automation,
helping both operators and instrumentation technicians work together to find solutions that
would keep the equipment running properly as well as free up operators to work on other
important tasks. He also enhanced the leadership in Operations as well as his own division,
Instrumentation. Attached is an article which was in the District"Pipeline"about him.
There are several stories about how Bill displayed the Core Competencies of Leadership as well
as our District Values,which make him deserving of a brick on the Honor Walk.
Bill exemplified Communication both in sharing what he knew about a process or system with
new employees and in providing information across the divisions to those working in the field.
He had an easy disposition which made him approachable and often when something wasn't
working,he would come by and give some feedback which was helpful in the moment.
Bill showed Interpersonal Skills (Workinr with Others)when he helped Operations begin using
the CRISP controls for the new Headworks at Plant No. 1, setting up the instruments to convey
signals like the wetwell and the Main Sewage Pump motors so that we could set a wetwell level
and the pumps would ramp up or slow down as needed. After talking with the operators and our
supervisors,he provided changes that would cause the pump running to slow down just before
the second pump would come on,reducing the amount of flow going to the primary basins too
quickly(less"wave"which would have pushed solids over the basin weirs impacting our
effluent solids.)
Teaching Others was a natural ability. Bill could explain the PID concept to the operators in a
way that would help us understand why some instruments could adjust quickly to changes in
settings and why others could not adjust. He also would tell you why he put in some devices, so
you could understand when a level indication was having a problem,whether it was due to the
device,the power source or even the material being measured. He was great at listening and
answering questions even when you had no idea what to ask about.
Jim Spears, currently Operations Manager describes Bill's Effort&Initiative: "I remember Bill
to have a very dedicated attitude to help staff with electrical and instrumentation problems. He
was very humble, calm,and honest. We used to joke around that all Bill had to do was walk by a
piece of equipment and it would fix itself. If there was trouble in an area and Bill was asked to
help,he would stop what he was doing and reply to the need. Bill was concerned for the
knowledge of his fellow staff members and took the time to train them. Bill would work
standby and if a problem came up, he would promptly reply and stay as long as needed until the
problem was fixed. Bill had a great ability to troubleshoot and solve just about any
instrumentation problem. Up to the day or so of his passing he was feeling very ran-down, but I
remember him working on the P2 grit conveyor system with as much enthusiasm as he could
muster. "
Bill's Problem Solving abilities are described by Curt Shelp,currently Operations Supervisor: "I
would include stories about the multitude of times when other 860 staff were on standby and the
first thing they did upon arrival was to start calling Bill "MAGIC MAN"Wallin. One story that
comes to mind was when we lost communications between the flow meters and the headworks
samplers one Friday night, which are flow paced and would not sample until communication
could be restored. The standby electrician walked in to the building with his phone to his ear
leaving a message for Bill to help him figure out the problem. Several calls and an hour later Bill
showed up dressed to go out to dinner with his family and dove right into the diagnostics. Bill
didn't hesitate to start walking the tunnels tracing the wires through the headworks basement
wire trays only to find an electrocuted rat had caused the problem. Bill instructed the electrician
to splice the wires and after"as always" declaring that he had"gotten lucky"he went to dinner.
Bill was the standby man's standby man, and never failed to be self-effacing, humble and
effective in solving our problems."
Other leadership competencies and District values that Bill conveyed were:
• Integrity
• Team Leadership and Teamwork
• Honesty, Trust and Respect
• Planning,Executing and Evaluation
• Commitment
• Organizational Awareness
• And Technical Expertise
ORANGE COUNTY SANITATION DISTRICT
HONOR WALK NOMINEE FORM
Please complete this form and return it to the OCSD Public Affairs Office.
Name of nominee Shirley McCracken
Relationship to OCSD Past Board Member
On a separate sheet, please describe:
• The length and nature of the nominee's relationship to OCSD;
How he or she has enhanced the quality of operations and/or leadership; and
• How the nominee has made an exceptional contribution to the District or people served
by the District.
Please use the attached leadership competencies and resolution adopted by the Board of
Directors establishing the program, as reference.
Nominees should be past Board Members or retired employees.
Name of requestor Lucille Kring
Phone/email address
Department head approval* Date
General manager approval* Date
Steering Committee Yes No Date
approval
*Required for employee nominations only.
Honor Walk Nomination: Shirley McCracken
Shirley McCracken served on the board of directors of the Orange County Sanitation District
from 1996 to 2004. She provided leadership and vision in guiding OCSD's efforts in local,
regional, state and federal forums and also led OCSD in adopting a$2.4 billion CIP budget
which led to OCSD moving to full secondary treatment.
Shirley was instrumental in the District co-funding the construction of the Groundwater
Replenishment System,what is now known as the world's largest water purification plant that
provides uninterruptible supply of high quality water to nearly 600,000 residents in Orange
County and keeps seawater from intruding into the County's fresh water aquifer.
During her term as Chairman of the Board from 2002-2004, she helped distinguish OCSD by
being the first agency in the Nation to receive National Biosolids Environmental Management
System Partnership Certification and Clean Water Partners for the 21 s0 Century by the
Environmental Protection Agency(EPA). As chair of the board during a very challenging time
for the Sanitation District, Shirley showed great leadership taking the board through long and
difficult discussions which led to the decision to move to full secondary treatment.
She served on OCSD's Finance,Administration and Human Resources committee from 1999 to
2002, and as that committee's chair in 2001 and 2002. She became vice chair of the board of
directors in 2002.
Tom Woodruff's Contribution to OCSD
Tom Woodruff served as the District's General Counsel for over 30 years,from 1975
until his retirement in 2005. As General Counsel, Tom advised and represented the District's
Board and staff on a wide array of legal matters, including issues relating to sewage collection,
treatment, and disposal, environmental regulation, source control,public works construction,
connection and user fees, human resources, and public agency laws such as the Brown Act,
Public Records Act, and the Political Reform Act.
Tom successfully guided the District through a number of major issues and developments
including, among others, the Orange County bankruptcy, disputes over the land application of
biosolids, the District's NPDES permit and the transition to full secondary treatment,the
consolidation into one District, and the pioneering Groundwater Replenishment System.
Tom also successfully defended the District in many lawsuits. Some of the more
significant suits include the following:
• Beatrice-Hunt/Wesson v. County Sanitation District No. 3 - Successful defense of the
Sanitation District's wastewater discharge regulations and permit requirements. Lawsuit
challenged the District's requirements of compliance with the District biochemical oxygen
demand discharge limits.
• Crow-Winthrop Development v. Orange County Sanitation District- Developer sought to
compel the District to refrain from collecting or imposing connection fees without first
obtaining a vote of the electorate. Judgment in favor of the District.
• Santa Ana Watershed Project Authority v. Orange County Sanitation District- Dispute
involving the reimbursement by the District of certain engineering and administrative costs
for evaluating and implementing alternatives for protecting a 4-mile portion of the Santa Ana
River Interceptor. Dispute resolved through a Memorandum of Understanding between the
parties.
• U.S. Government v. Montrose Chemical Corporation, et al. - The District was named as a
third-party defendant initiated by the Government for the recovery of damages to the natural
resources. The magnitude of the litigation was perhaps the single largest environmental
litigation to be filed under the Comprehensive Environmental Response, Compensation and
Liability Act of 1989. Successfully negotiated a consent decree releasing the District and
recovering 100%of all costs incurred, including the judgment and legal fees from
responsible insurance companies.
Tom played leadership roles in national and state-wide associations of sanitation
agencies. He served as Chairman of the Legal Affairs Committee for the Association of
Metropolitan Sewerage Agencies (1983 — 1988); Chairman of the Attorneys' Committee for the
California Association of Sanitation Agencies ("CASA") (1988 - 1990); and member of the
governing Board of Directors of CASA (1990— 1998), including a term as President of the
CASA(1995— 1996).
Tom is widely remembered for his deep zest for life, great integrity, intelligence,
wonderful humor, strong faith, compassion,and kindness.
1073954.1
STEERING COMMITTEE Moa2z/mZU221 Deites TO 04.MDir.
mg
--
AGENDA REPORTItem Number I Item Number
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: ADMINISTRATIVE FACILITIES IMPLEMENTATION PLANNING,
PROJECT NO. SP-194
GENERAL MANAGER'S RECOMMENDATION
Direct the General Manager to work through the Operations Committee for the
decisions necessary to implement the replacement or retrofit of the Administrative
Facilities including the Administration Building, Human Resources Building, Laboratory,
Fleet Services Buildings, Purchasing Building, and multiple office trailers at Plant No. 1.
SUMMARY
In June 2014, the Board of Director's authorized an Administrative Facilities
Implementation Plan to be developed by HDR Architecture, Inc. (HDR) that would
develop a plan for replacement of the Administration Building, Human Resources
Building, Laboratory, Purchasing Building, Fleet Services Buildings, and multiple office
trailers.
The draft plan is complete and staff is requesting policy direction regarding the
appropriate process to bring the findings and render decisions through the Board
Committees and the Board of Directors.
PRIOR COMMITTEE/BOARD ACTIONS
June 2014 —Approved a Professional Design Services Agreement with HDR to provide
engineering design services for Administrative Facilities Implementation Planning,
Project No. SP-194, for an amount not to exceed $729,597.
November 2013 — Established a budget for Administrative Facilities Implementation
Planning, Project No. SPA94.
October 2012 — Staff presented an overview of the administrative facilities and their
need for rehabilitation or replacement.
June 2012 —Approved a Professional Services Agreement with The Austin Company to
provide engineering services to prepare an Administrative Facilities Master Plan for the
Title 24 Access Compliance and Building Rehabilitation Project, Project No. P1-115, for
an amount not to exceed $175,000.
Page 1 of 2
ADDITIONAL INFORMATION
N/A
CEQA
The Administration Facilities Implementation Plan is statutorily exempt under CEQA
Section 15262. This Planning work involved only feasibility or planning studies for
possible future actions which the Board of Directors has not approved, adopted, or
funded.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This complies with the authority levels in the Orange County Sanitation District's
Purchasing Ordinance.
ATTACHMENT
N/A
WS:dm:gc
Page 2 of 2
STEERING COMMITTEE Meath,Dare TOBA.of Dir.
04/22/15 oa/zz/1s
AGENDA REPORT Item Number Item Number
6
Orange County Sanitation District
FROM: Steve Filarsky, Chief Negotiator
CHIEF NEGOTIATOR'S RECOMMENDATION
A. Adopt Resolution No. OCSD 15-10, entitled, "A Resolution of the Board of
Directors of the Orange County Sanitation District approving the Memorandum of
Understanding between the Orange County Sanitation District and the
International Union of Operating Engineers, Local 501 (Local 501), for Fiscal
Years 2014/2015 & 2015/2016" and
B. Direct staff to finalize and sign the Memorandum of Understanding (MOU)
between Orange County Sanitation District and the Local 501 bargaining unit.
SUMMARY
The Memorandum of Understanding (MOU) between the Orange County Sanitation
District (OCSD) and the International Union of Operating Engineers, Local 501 (Local
501) expired on June 30, 2014. Local 501 and OCSD opened negotiations on June 9,
2014. OCSD and Local 501 have met a total of eight (8) times to date. Seven (7)
proposals have been exchanged, and OCSD has provided three (3) presentations in
response to Local 501 information requests.
On January 28, 2015, the Board of Directors directed the Chief Negotiator to make a
counter proposal to Local 501 including a two-year contract with a 2% salary increase in
the first year and 2% salary increase in the second year. Pursuant to the understanding
with Local 501 at the beginning of negotiations, the salary changes would take effect
retroactively to July 11, 2014, the first pay period in the current fiscal year. OCSD
delivered this counter proposal to Local 501 on February 10, 2015. Two subsequent
meetings occurred on February 23, 2015 and March 23, 2015, respectively, continuing
the discussion regarding the District's most recent proposal. On April 13, 2015, Local
501 voted to ratify the contract.
The key points include the following:
• Salary Increases (2-Year Cost: $1.35M, all-inclusive of benefits) - 2% in Year
1; and 2% in Year 2.
• Medical Reopener - Parties agree to reopen negotiations, immediately following
ratification, regarding health insurance carrier and/or plan design changes in
order to achieve cost containment.
Page 1 of 6
• Classification & Compensation Study - OCSD agrees to include a
representative from Local 501 to participate as a partner in the agency-wide
Classification & Compensation study.
• Probationary Period - OCSD agrees to change the probationary period for new
employees from the current one (1) year to six (6) months.
• Reopeners on Standby Pay, Shift Differential and Relief Operator - Parties
agree to participate in reopener discussions on Standby Pay, Shift Differential
and Relief Operator following the ratification of the contract. The reopeners do
not require the District to make any changes unless mutually agreed to by the
District.
PRIOR COMMITTEE/BOARD ACTIONS
In preparation for and during the meet and confer process, the Chief Negotiator
received direction for labor negotiations with Local 501 from the Steering Committee
and the Board of Directors.
The Loral 501 meet and confer process was agendized for discussion, and discussed,
at the following Committee/Board meetings in closed session:
• February 19, 2014 —Administration Committee
• May 28, 2014 — Steering Committee
• June 25, 2014 — Steering Committee
• July 9, 2014—Special Steering Committee Meeting
• July 23, 2014— Steering Committee and Board Meeting
• August 27, 2014—Steering Committee and Board Meeting
• November 19, 2014 — Steering Committee and Board Meeting
• January 28, 2015— Steering Committee and Board Meeting
• February 25, 2015 — Steering Committee and Board Meeting
• March 25, 2015— Steering Committee
ADDITIONAL INFORMATION
Local 501 is the recognized employee organization certified to provide exclusive
representation over wages, hours of work, and other terms and conditions of
employment for OCSD's 194 non-exempt Operations and Maintenance employees.
The MOU between OCSD and Local 501 expired on June 30, 2014.
Based on Board direction, OCSD issued a counter proposal to Local 501 on February
107 2015, including a two-year contract with a 2% salary increase in the first year, and a
2% salary increase in the second year. This proposal mirrored the proposal that the
Board approved for years two (2) and three (3) of the Supervisor Group and
Professional Group MOUs on December 17, 2014. The proposal also mirrored the
Page 2 of 6
terms approved by the Board on February 25, 2015 with the three (3) bargaining units
represented by the Orange County Employees Association (OCEA). Two subsequent
meetings occurred on February 23, 2015 and March 23, 2015, respectively, continuing
the discussion regarding the District's most recent proposal. On April 13, 2015, Local
501 voted to ratify the contract.
The agreement includes the following key items:
• Salary
o Year 1 — 2.0% Salary Increase, retroactive to the first pay period of July
2014.
o Year 2 — 2.0% Salary Increase, effective the first pay period of July 2015.
• Medical Reopener
o Medical reopener upon ratification to discuss the transition from Anthem to
Blue Shield through California State Association of Counties — Excess
Insurance Authority (CSAC-EIA), or to another carrier directly, and varied
plan design changes in order to mitigate excise taxation in 2018 and
achieve cost containment. Potential strategies for consideration include,
but are not limited to, the following: plan design changes to office and
specialist copays, emergency room copays, plan deductibles and
contribution rates; and alternative plan offerings such as a high deductible
health plan with health savings account funding.
• The parties agree that this reopener shall be subject to Government
Code Section 3505.4 and case law, including PERB, decisions
which interpret that provision.
• Classification & Compensation (C&C) Study
o OCSD agrees to include a representative from Local 501 to participate as
a partner in the agency-wide C&C study.
• Probationary Period
o OCSD agrees to change the probationary period for new employees from
the current one (1) year to six (6) months.
• Reopeners on Standby Pay, Shift Differential, and Relief Operator
o OCSD agrees to participate in reopeners to discuss Article 19 Standby
Pay, Article 26 Shift Differential, and Article 42.9 Relief Operator.
• The parties acknowledge that this re-opener does not obligate the
District or Local 501 to change and/or modify any provisions of the
MOU during the term of this MOU. Any changes/modifications to
the MOU as a consequence of this re-opener must be by mutual
agreement. The failure to reach mutual agreement is not subject to
the MOU grievance process; unfair labor practice proceedings
before the Public Employment Relations Board; and/or proceedings
in the Superior Court.
Page 3 of 6
The total cost is $1.35M over the term of the agreement, which is all-inclusive of
benefits.
Listed below is a summary of all of the proposed changes in the tentative agreements
by article number:
FINAL MOU AGREEMENTS
Article 1.0— Recognition: Effective date is July 1, 2014.
Article 2.0— Duration: Agreement terminates June 30, 2016. Any issue regarding the
question of representation shall be brought pursuant to OCSD's Employer-
Employee Relations Resolution (EERR).
Article 3.0— Successor Agreement: Minor language changes to reflect that Local 501
will submit an initial proposal for a successor agreement prior to the
expiration date of the MOU.
Article 4.0— Local 501 Access: Minor housekeeping changes.
Article 5.0— Local 501 Rights: Additional language regarding Local 501's right to
designate two (2) stewards and one additional employee to attend meet
and confer sessions.
Article 6.0— District Rights: Minor housekeeping changes.
Article 7.0— Nondiscrimination in Employment: Minor housekeeping changes.
Article 8.0— Smoke-Free Work Environment: No change.
Article 9.0— Safety: Minor housekeeping changes.
Article 10.0— Discipline and Dismissal: Minor housekeeping changes.
Article 11.0— Grievance Procedure: Minor housekeeping changes.
Article 12.0— Problem Solving Procedure: Minor housekeeping changes.
Article 13.0—Salary Adjustments and Compensation: Year 1: 2% Salary Increases, and
Year 2: 2% Salary Increases; removal of outdated language regarding
one-time lump sum distribution.
Article 14.0— Severance Pay: Minor housekeeping changes.
Article 15.0— Deferred Compensation: Minor administrative changes/updated language
to clarify that participation is subject to IRS requirements.
Article 16.0— Holidays: Updated holiday schedule based on contract period
(housekeeping).
Article 17.0— Hours of Work: Updated hours of work for Co-Generation to between
0600 and 1800 hours for day shift and between 1800 and 0600 hours for
night shift, based on side letter agreement; minor housekeeping changes.
Article 18.0— Call-Back Pay— No change.
Article 19.0— Standby Pay— Reopener following ratification to discuss Article 19
Standby Pay; minor housekeeping changes.
Article 20.0— Insurance: Medical Reopener at the beginning of the month following
contract ratification to discuss the transition from Anthem to Blue Shield
through California State Association of Counties— Excess Insurance
Authority (CSAC-EIA), or to another carrier directly, and varied plan
design changes in order to achieve additional cost savings; minor
housekeeping changes, removal of outdated retiree medical reopener
language.
Article 21.0— Reimbursement Account: No change.
Page 4 of 6
Article 22.0- Overtime: No change.
Article 23.0- Probationary Period: Probationary period for new employees reduced
from one (1) year to six (6) months; associated housekeeping changes.
Article 24.0- Promotions: Minor housekeeping changes.
Article 25.0- Retirement: Addition of Plan U/PEPRA language: Employees hired on or
after January 1, 2013: The District will contract with OCERS to provide the
2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest
consecutive thirty-six (36) months average earnings, past and future
service. The District will pay 0% of an eligible employee's base salary
towards the employee's contribution to OCERS. Minor housekeeping
changes.
Article 26.0-Shift Differential: Reopener following ratification to discuss Article 26 Shift
Differential; minor housekeeping changes.
Article 27.0- Leave of Absence with Pay: Addition of language regarding straight
proration of leave accruals based on side letter agreement; minor
housekeeping changes.
Article 28.0- Leave of Absence without Pay: Minor housekeeping changes.
Article 29.0- Classification Studies: OCSD agreed to include a representative from
Local 501 to participate as a partner in the upcoming agency-wide
Classification & Compensation study; minor housekeeping changes.
Article 30.0- Driver's License: No change.
Article 31.0- Layoff Procedure: Minor housekeeping changes.
Article 32.0- Light Duty: No change.
Article 33.0- Medical Examination: No change.
Article 34.0- Mileage Allowance: No change.
Article 35.0-Acting Pay: No change.
Article 36.0- Performance Reviews: No change.
Article 37.0- Personnel Files: Minor housekeeping changes.
Article 38.0- Bulletin Boards: Addition of street addresses for OCSD Plant 1 and Plant
2.
Article 39.0- Release Time for Meet and Confer Sessions: Minor housekeeping
changes.
Article 40.0- Use of District Facilities: Minor housekeeping changes.
Article 41.0- Scope of Bargaining: Minor housekeeping changes.
Article 42.0- Impasse Procedures: Updated language to align with AB 646; minor
housekeeping changes.
Article 43.0-Severability: Minor housekeeping changes.
Article 44.0- Uniforms: Increase from ten (10)to twelve (12) uniforms based on side
letter agreement.
Article 45.0- Substance Abuse Policy: No change.
Article 46.0- Dues Deductions: No change.
Article 47.0-Agency Shop: Minor housekeeping changes.
Article 48.0- Peaceful Resolution of Disputes: No change.
Article 49.0- Shift Changes: Reopener following ratification to discuss Article 49.2
Relief Operator; minor housekeeping changes.
Article 50.0-Workplace Violence &Weapons Policy: No change.
Article 51.0- Resignation: No change.
Article 52.0- Operator Certification: Minor housekeeping changes.
Page 5 of 6
ATTACHMENTS
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.com) with the complete agenda package:
• Resolution OCSD 15-10
• Local 501 MOU — July 1, 2014 thru June 30, 2016
Page 6 of 6
RESOLUTION NO. OCSD 15-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT APPROVING THE
MEMORANDUM OF UNDERSTANDING BETWEEN THE
ORANGE COUNTY SANITATION DISTRICT AND THE
INTERNATIONAL UNION OF OPERATING ENGINEERS,
LOCAL 501, FOR FISCAL YEARS 2014/2015 & 2015/2016.
WHEREAS, on July 27, 2011, the Board of Directors ("Directors") of the Orange
County Sanitation District (the "District") authorized the General Manager to sign the
Memoranda of Understanding with the International Union of Operating Engineers Local
501 (referred hereinafter as "Local 501"), regarding salaries, benefits and terms and
conditions of employment for the period July 1, 2011 through June 30, 2014 ("2011 MOU").
WHEREAS, pursuant to Government Code Section 3500, at seq., representatives of
LOCAL 501 have met and conferred with the representatives of the District and have
reached an understanding with regard to certain terms and conditions relative to
employment;
WHEREAS, at the beginning of negotiations the parties agreed that any salary
changes would take effect retroactively to July 11, 2014, the first pay period in the current
fiscal year; and
WHEREAS, the parties have modified the 2011 MOU between the District and
LOCAL 501 to reflect the parties' understanding regarding certain terms and conditions,
which include:
• Duration of the MOU has been modified and will be for a 2-year term commencing
July 1, 2014 and terminating June 30, 2016, as reflected in the Cover Page and
Article 1 and 2 of the MOU:
• Local 501 Rights has been modified as set forth below and as reflected in Article 5 of
the MOU:
o For purposes of meeting and conferring, Local 501 will be allowed to
designate two (2) stewards to attend (additional stewards may be added by
mutual agreement of the parties). An additional employee, who may or may
not be a designated steward, may be invited to attend to provide subject
matter knowledge.
• Salary Adjustments and Compensation has been modified as set forth below and as
reflected in Article 13 of the MOU:
o Year 1 —2.0% Salary Increase, retroactive to the first pay period of July 2014.
o Year 2—2.0% Salary Increase, effective the first pay period of July 2015.
• Deferred Compensation has been modified as set forth below and as reflected in
Article 15 of the MOU:
OCSD 15-10-1
o Minor administrative changes/updated language to clarify that participation is
subject to IRS requirements.
• Hours of Work has been modified as set forth below and as reflected in Article 17 of
the MOU:
o The day shift and night shift for Co-Generation have been redefined as
assigned work shifts of at least seven (7) consecutive hours between 0600
and 1800 hours and between 1800 and 0600 hours, respectively.
• Standby Pay has been modified as set forth below and as reflected in Article 19 of
the MOU:
o OCSD and Local 501 agree to reopen the Agreement following ratification to
discuss Article 19 Standby Pay.
• Insurance has been modified as set forth below and as reflected in Article 20 of the
MOU:
o OCSD and Local 501 agree to reopen the Agreement upon ratification to
discuss health insurance carrier and/or plan design changes in order to
achieve additional cost savings; minor updates to language.
• Probationary Period has been modified as set forth below and as reflected in Article
23 of the MOU:
o Probationary period for new employees reduced from one (1) year to six (6)
months.
• Retirement has been modified as set forth below and as reflected in Article 25 of the
MOU:
o Employees hired on or after January 1, 2013: The District will contract with
OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based
on the highest consecutive thirty-six (36) months average earnings, past and
future service. The District will pay 0% of an eligible employee's base salary
towards the employee's contribution to OCERS.
• Shift Differential has been modified as set forth below and as reflected in Article 26
of the MOU:
o OCSD and Local 501 agree to reopen the Agreement following ratification to
discuss Article 26 Shift Differential.
• Leave of Absence with Pay has been modified asset forth below and as reflected in
Article 27 of the MOU:
o When unpaid absences occur, personal leave accruals will be applied by
straight proration of leave accruals based on the number of hours actually
worked, and is applicable to all types of leave, whether legally protected or
not.
• Classification Studies has been modified as set forth below and as reflected in
Article 29 of the MOU:
OCSD 15-10-2
o OCSD will include a representative from Local 501 to participate as a partner
in the agency-wide Classification & Compensation study.
• Impasse Procedures has been modified as set forth below and as reflected in Article
42 of the MOU:
o Updated language regarding fact-finding to align with AB 646.
• Uniforms has been modified as set forth below and as reflected in Article 44 of the
MOU:
o Uniforms increased from ten (10) to twelve (12) uniform pants and shirts per
employee.
• Shift Changes has been modified as set forth below and as reflected in Article 49 of
the MOU:
o OCSD and Local 501 agree to reopen the Agreement following ratification to
discuss Article 49.2 Relief Operator.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1. The aforementioned MOUs between the District and Local 501 for the
contract period of July 1, 2014 through June 30, 2016 as outlined herein are hereby
approved.
Section 2. The General Manager is authorized to sign the Memoranda of
Understanding with Local 501 for the period of July 1, 2014 through June 30, 2016, in a
form approved by General Counsel.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
April 22, 2015.
Tom Beamish,
Board Chair
ATTEST:
Kelly Lore
Clerk of the Board
OCSD 15-10-3
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
ORANGE COUNTY SANITATION DISTRICT
AND THE
INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501
FOR THE
OPERATIONS AND MAINTENANCE UNIT
July 1 , 2014 through June 30, 2016
IN00]SJ
TABLE OF CONTENTS
ARTICLE1. RECOGNITION.............................................................................................................................3
ARTICLE 2. DURATION ...................................................................................................................................3
ARTICLE 3. SUCCESSOR AGREEMENT.......................................................................................................3
ARTICLE 4. LOCAL 501 ACCESS...................................................................................................................3
ARTICLE 5. LOCAL 501 RIGHTS....................................................................................................................4
ARTICLE 6. DISTRICT RIGHTS.......................................................................................................................4
ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT.................................................................................4
ARTICLE S. SMOKE-FREE WORK ENVIRONMENT......................................................................................4
ARTICLE9. SAFETY........................................................................................................................................5
ARTICLE 10. DISCIPLINE AND DISMISSAL.....................................................................................................5
ARTICLE 11. GRIEVANCE PROCEDURE.........................................................................................................6
ARTICLE 12. PROBLEM SOLVING PROCEDURE...........................................................................................7
ARTICLE 13. SALARY ADJUSTMENTS AND COMPENSATION ....................................................................8
ARTICLE 14. SEVERENCE PAY........................................................................................................................9
ARTICLE 15. DEFERRED COMPENSATION....................................................................................................9
ARTICLE 16. HOLIDAYS..................................................................................................................................10
ARTICLE 17. HOURS OF WORK..................................................................................................................... 11
ARTICLE 18. CALL-BACK PAY....................................................................................................................... 12
ARTICLE19. STANDBY PAY........................................................................................................................... 13
ARTICLE20. INSURANCE............................................................................................................................... 13
ARTICLE 21. REIMBURSEMENT ACCOUNT................................................................................................. 14
ARTICLE22. OVERTIME................................................................................................................................. 15
ARTICLE 23. PROBATIONARY PERIOD........................................................................................................ 15
ARTICLE24. PROMOTIONS............................................................................................................................ 15
ARTICLE25. RETIREMENT............................................................................................................................. 16
ARTICLE 26. SHIFT DIFFERENTIAL............................................................................................................... 16
ARTICLE 27. LEAVE-OF-ABSENCE WITH PAY............................................................................................. 17
ARTICLE 28. LEAVE-OF-ABSENCE WITHOUT PAY.....................................................................................20
ARTICLE 29. CLASSIFICATION STUDIES......................................................................................................23
ARTICLE 30. DRIVER'S LICENSE...................................................................................................................24
ARTICLE 31. LAYOFF PROCEDURE..............................................................................................................24
ARTICLE 32. LIGHT DUTY...............................................................................................................................24
ARTICLE 33. MEDICAL EXAMINATION..........................................................................................................25
ARTICLE 34. MILEAGE ALLOWANCE............................................................................................................25
ARTICLE 35. ACTING PAY..............................................................................................................................25
ARTICLE 36. PERFORMANCE REVIEWS.......................................................................................................25
ARTICLE 37. PERSONNEL FILES...................................................................................................................26
ARTICLE 38. BULLETIN BOARDS..................................................................................................................26
ARTICLE 39. RELEASE TIME FOR MEET AND CONFER SESSIONS..........................................................26
ARTICLE 40. USE OF DISTRICT FACILITIES.................................................................................................26
ARTICLE 41. SCOPE OF BARGAINING..........................................................................................................26
ARTICLE 42. IMPASSE PROCEDURES..........................................................................................................26
ARTICLE 43. SEVERABILITY..........................................................................................................................27
ARTICLE 44. UNIFORMS.................................................................................................................................27
ARTICLE 45. SUBSTANCE ABUSE POLICY..................................................................................................27
Local 501 MOU July 1,201410 June 30,2016
1080078.1
Page 1
ARTICLE 46. DUES DEDUCTIONS.................................................................................................................28
ARTICLE47. AGENCY SHOP..........................................................................................................................28
ARTICLE 48. PEACEFUL RESOLUTION OF DISPUTES...............................................................................30
ARTICLE 49. SHIFT CHANGES.......................................................................................................................30
ARTICLE 50. WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................31
ARTICLE 51. RESIGNATION ...........................................................................................................................31
ARTICLE 52. OPERATOR CERTIFICATION...................................................................................................31
SIGNATUREPAGE..............................................................................................................................................33
EXHIBITA.............................................................................................................................................................33
Local 501 MOU July 1,201410 June 30,2016
1080078.1
Page 2
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
ORANGE COUNTY SANITATION DISTRICT
AND THE
INTERNATIONAL UNION OF OPERATING ENGINEERS LOCAL 501
FOR THE
OPERATIONS AND MAINTENANCE UNIT
In accordance with the provisions of California Government Code Sections 3500, at seq.,and Resolution No.99-
24 of the Joint Board of Directors, the District's authorized representatives have met and conferred in good faith
with representatives of the International Union of Operating Engineers, Local 501,for the District's Operations
and Maintenance Unit. These meetings have resulted in an agreement and understanding to recommend that
the employees represented by Local 501 accept these terms and conditions, and that the Board of Directors
adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the
employees represented by Local 501 as set forth in this Agreement.
ARTICLE 1. RECOGNITION
1.1.This Agreement is entered into between the Orange County Sanitation District,referred to hereinafter as the
District,and the International Union of Operating Engineers, Local 501,AFL-CIO,referred to hereinafter as
Local 501, as a mutual recommendation to the Board of Directors of the District of those wages, hours of
work, and terms of conditions of employment which are to be in effect at 12:01 a.m. on July 1, 2014.
1.2.The District recognizes the International Union of Operating Engineers, Local 501, AFL-CIO, which was
certified on October 10, 1985, as the exclusive recognized employee organization for matters within the
scope of representation for the following classifcations, as set forth in Exhibit A (attached hereto and
incorporated by reference), as well as additional classes as may be added hereafter by the District.
ARTICLE 2. DURATION
2.1.This Agreement will be binding on the District and Local 501 when approved and adopted by the District's
Board of Directors. This Agreement will terminate on June 30,2016. Any issue regarding the question of
representation shall be brought pursuant to the Employer-Employee Relations Resolution (EERR),
Resolution No. OCSD 99-24.
ARTICLE 3. SUCCESSOR AGREEMENT
3.1.Local 501 will submit in writing its initial proposal for a successor agreement prior to the expiration date of
this Agreement.
ARTICLE 4. LOCAL 501 ACCESS
4.1.The Local 501 representative will have access to the District's facilities during working hours for the purpose
of assisting Unit employees in processing grievances or investigating matters arising outof the application of
provisions of this Agreement. The Local 501 representative must obtain authorization for each visit in
advance from the Director of Human Resources,or designee.
4.2.Local 501 will provide the Director of Human Resources,or designee,with a list of Representatives who are
authorized to request access under this Article, and will notify the Director of Human Resources, or
designee, of any changes in that list.
Local 501 MOU July 1,2014 to June 30,2016
1080078.1
Page 3
4.3.Local 501 access will not interfere with District operations, or with the work of employees in any manner.
The District reserves the right to restrict access in certain areas designated confidential or secure.
ARTICLE 5. LOCAL 501 RIGHTS
5.1.Local 501 may designate fourteen (14) employees to act as stewards for employees covered by this
Agreement. Local 501 will furnish the Director of Human Resources, or designee, with the names of
employees selected as stewards and will update the list as necessary. An alternate steward may be
designated to act in the absence of the regular steward. Employees not listed on the roster of stewards
provided to the District by the Local 501 may not act as representatives.
5.2.For purposes of meeting and conferring, Local 501 will be allowed to designate two(2)stewards to attend
(additional stewards may be added by mutual agreement of the parties).An additional employee,who may
or may not be a designated steward, may be invited to attend to provide subject matter knowledge.
5.3.Stewards will not perform non work-related duties on work time without the prior approval of their immediate
supervisor. Neither the District nor the Local 501 will interfere with, intimidate, restrain, coerce or
discriminate against employees because of the exercise or non-exercise of their rights to engage in Local
501 activity.
ARTICLE 6. DISTRICT RIGHTS
6.1.District inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or
administrative character are reserved to the District in its exercise of management decision-making,except
as specifically modified by the express provisions of this Memorandum. District rights include, but are not
limited to, the exclusive right to consider the merits, necessity or organization of any service or activity
provided by law,or administrative order;determine the mission of its constituent departments,commissions
and boards;set standards of service,determine the procedures and standards of selection for employment
and promotion; establish and implement performance standards; direct its employees; take disciplinary
action for proper cause; layoff employees from duty because of lack of work or lack of funds; maintain the
efficiency of District operations;determine the methods,means and personnel by which District operations
are to be conducted; determine the content of job classifications;classify and reclassify positions;take all
necessary actions to carry out its mission in emergencies;and exercise complete control and discretion over
its organization and the technology of performing its work.
6.2.District retains all authority and rights conferred on it by law,or other legal sources,except to the extent that
such authority is explicitly waived by the express terms of this Agreement. District exercise of its
management rights hereunder shall not be subject to appeal or meeting and conferring, however,that the
exercise of such rights does not preclude Local 501 from appealing or meeting and conferring the practical
consequences or impacts that District decisions have on wages, hours,and other terms and conditions of
employment.
ARTICLE 7. NONDISCRIMINATION IN EMPLOYMENT
7.1.There will be no unlawful discrimination in the application of the provisions of this Agreement with regard to
race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. To the extent
required by law or by the District's rules or regulations,this provision of the Agreement will be applied to all
members of the Unit without regard to marital status, handicap, medical condition, status as a disabled
veteran, age or citizenship.
ARTICLE 8. SMOKE-FREE WORK ENVIRONMENT
8.1.The District endorses and supports the right of all employees to work in a healthy and safe environmentfree
of recognized hazards. In view of the hazards associated with smoking,and the potentially harmful effect it
has on the health and well being of District employees and their families,smoking is not acceptable within
District facilities, and may occur only in areas posted for smoking.
Local 501 MOU July 1,2014 to June 30, 2016
Page 4
ARTICLE 9. SAFETY
9.1.It is the duty of the District to provide and maintain a safe place of employment. Local 501 will cooperate by
encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty
of all employees covered by this Agreement,in the course of performing their assigned duties,to be alert to
unsafe practices, equipment, and conditions,and to follow the safety regulations and requirements of the
District,and to report any unsafe practices or conditions to their immediate supervisor. An employee will not
be required to perform work that is unsafe.
9.2.The District will establish a Safety Committee that will include up to six (6) members of Local 501. The
committee's recommendations are advisory. The committee will meet at least quarterly;however,additional
meetings may be scheduled by either Local 501 or the District.
ARTICLE 10.DISCIPLINE AND DISMISSAL
10.1. Discipline may occur when any of the following actions are taken for just cause with respect to any
employee in the Unit: verbal reprimand; written reprimand; suspension without pay; reduction in pay,
demotion to a classification with a lower pay grade, or dismissal.
10.2. Dismissal,for purposes of this Article,is the separation of a non-probationary employee initiated by the
District for just cause.
10.3. A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written
reprimand.
10.4. A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves
suspension without pay, reduction in pay, demotion to a classification with a lower pay grade, or
dismissal. The notice will be given to the affected employee either by delivery in person or by Certified
Mail sent to the employee's last known address. Such personal delivery or mailing will be presumed to
provide actual notice to the affected employee. The Notice of Intent will indicate the date on which it was
personally delivered or deposited in the mail,which will be the date of issuance.
10.5. The Notice of lntentwill contain the following:(1)a description of the disciplinary action intended and the
effective date of the action; (2) the reasons for the proposed action; (3) a copy of the charges and
materials upon which the action is based;and,(4)a statement of the employee's rightto respond,either
verbally or in writing to the person initially imposing the discipline, or to a District management
representative with authority to make an effective recommendation on the proposed action,the person
to whom any response must be directed, and the fact that such response must be received within ten
(10)business days of the date of issuance of the notice. The Notice will also advise the employee of the
right to representation.
10.6. Prior to the effective date of the proposed disciplinary action,the employee will be given an opportunity
to respond either verbally or in writing to a management representative with authority to make an
effective recommendation on the proposed action. After review of an employee's response,the District
will notify the employee in writing of the action that will be taken. Such action may not involve discipline
more severe than that described in the Notice of Intent; however, the District may reduce discipline
without further notice.Further clarification of the disciplinary policies and procedures are covered in the
District's Personnel Policies and Procedures Manual.
10.7. Dismissal will be preceded by at least one(1)written reprimand,except in those situations in which the
employee knows or reasonably should have known that the performance or conduct was unsatisfactory.
Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or
being under the influence of drugs or alcohol, theft or misappropriation of District property or funds,
fighting on thejob, insubordination,acts endangering people or property,or other serious misconduct.
The District may substitute documented suspensions without pay for written reprimands.
10.8. If a Notice of Intent is upheld and the disciplinary action is imposed,the employee may request a post-
disciplinary hearing. The request must be submitted to the Director of Human Resources,or designee,
within ten(10)business days following the effective date of the disciplinary action(for suspensions,the
Local 501 MOU July 1,2014 to June 30, 2016
Page 5
effective date will be the first business day following the final day of the suspension). The Director of
Human Resources,or designee,will schedule a post disciplinary hearing with the General Manager or a
hearing officer selected by the General Manager. The hearing officer may not be an employee of the
District. The hearing officer will provide a written, advisory decision to the General Manager. The
General Manager may uphold the disciplinary action that has been taken or may reduce such discipline
without the issuance of a further Notice of Intent.The decision of the General Manager will be final.
10.9. Disciplinary actions will be recorded in employee performance reviews. All disciplinary action
documentation,except verbal reprimand documentation,will be maintained in an employee's Personnel
File in the Human Resources Department. Verbal reprimand documentation will be maintained in the
supervisor's employee files. Supervisors shall inform management staff when a verbal reprimand is to
be implemented. If after twenty-four(24)months from implementation,there have been no recurrences
of similar incidents; supervisors shall destroy the verbal reprimand documentation.
10.10. Written reprimands may be removed from an employee's personnel file twenty-four (24) months
subsequent to the date of the issuance if there has been no recurrence of a similar incident during the
period. If management agrees to remove the disciplinary action documentation from an employee's
personnel file, such documentation will be retained in a separate file by the Human Resources
Department for the purpose of showing that progressive discipline has been followed or in support of
District proposed discipline.
10.11. Verbal reprimands and written reprimands may only be reviewed under this Agreement through the
Problem Solving Procedure. Nothing in this Article will be construed as a waiver of any statutory or
constitutional rights.
10.12. A reduction in pay or a demotion to a classification with a lower pay grade that is not a result of
performance deficiencies(forexample,reclassifcations,"bumping'associated with layoffs,reasonable
accommodation)will not be considered discipline.
ARTICLE 11.13RIEVANCE PROCEDURE
11.1. A grievance is any complaint that management has violated a specific provision of this Agreement,
except that,in accordance with Article 10 above,discipline,which requires a Notice of Intent,may not be
reviewed under this Grievance Procedure.
11.2. A grievance may be brought to the attention of the District by an individual employee within the Unit or by
the Local 501.The District may not bring a grievance through this procedure. Grievances brought by
two(2)or more employees,and concerning the same incident, issue,or course of conduct,or multiple
grievances brought by the same employee may, upon mutual agreement of the District and the Local
501, be consolidated for the purposes of this procedure.
11.3. An employee may be self-represented or be represented by the Local 501 at all steps of the Grievance
Procedure unless specifically agreed otherwise by the Local 501 and the employee. The District will
provide a copy of all written grievance settlements to the Local 501. Any reference to days in this Article
means business days.
11.3.1. Step 1. An employee will submit his/her complaint in writing to his/her immediate
supervisor,or designee,within five(5)days of the occurrence of the event giving risetothe
complaint, or within five (5)days from the time that the employee became aware of such
event. The supervisor, or designee, will attempt to resolve the issues surrounding the
complaint, and respond in writing to the employee within five(5)days.
11.3.2. Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the
employee's Division Manager, or designee. This request for formal review must be
presented on a form provided by the District within five(5)days of the conclusion of Step 1.
A copy of each written communication on a grievance will be fled with the Director of
Human Resources, or designee. The written grievance must:
11.3.2.1. Identify the specific management act to be reviewed;
Local 501 MOU July 1,2014 to June 30, 2016
Page 6
11.3.2.2. Specify how the employee was adversely affected;
11.3.2.3. List the specific provisions of the MOU that were allegedly violated and state
how they were violated;
11.3.2.4. Specify the remedy requested; and
11.3.2.5. Provide the date of attempts at informal resolution and the name of the
supervisor or individual involved.
11.3.3. The Division Manager, or designee,will respond in writing to the employee within ten (10)
days after the date the grievance is received.
11.3.4. Step 3. If a grievance is not settled under Step 1 or Step 2, it may be presented to the
employee's Department Director, or designee, for review and written response. The
request for formal review must be presented on a form provided by the District within five
(5)days of the conclusion of Step 1 or 2,and must contain the information specified in Step
2 above. A copy of each written communication on a grievance will be filed with the
Director of Human Resources, or designee. The Department Director, or designee, will
respond in writing to the employee within ten (10) days after the date the grievance is
received.
11.3.5. Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an
Assistant General Manager, or designee, within five (5) days from the dale the Step 3
finding was issued. The Assistant General Manager,or designee,will respond in writing to
the employee within ten (10)days after the date the grievance is received.
11.3.6. Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance
Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the
General Manager, or designee, within five (5)days from the date the Step 4 finding was
issued. The General Manager,or designee,shall respond in writing to the employee within
ten (10) days after the date the grievance is received. The decision of the General
Manager,or designee, is final.
11.4. General Provisions. An employee will be given reasonable time off without loss of pay to present and
process a grievance. If an employee is represented by a Local 501 steward, the employee
representative will be given reasonable time off without loss of pay to perform this responsibility.
Absence from work will be approved only if it does not cause disruption to District operations. However,
if the time requested cannot be provided, an alternate time will be arranged.
11.5. Failure of a management representative to respond within the appropriate time limit will provide a basis
for the employee appealing to the next step. If a grievance is not presented or appealed within the time
limits, it will be considered resolved on the basis of the preceding response. The Director of Human
Resources,or designee, may be petitioned in writing to waive the step or time requirements provided
sufficient cause exists. Time limits may also be extended at any step upon mutual agreement of the
parties.
11.6. Resolution may be agreed upon at any stage of the grievance process. However,the Local 501 will be
notified prior to the resolution of any formal grievance matter.
ARTICLE 12.PROBLEM SOLVING PROCEDURE
12.1. Employees may bring problems to the attention of District managers through the Problem Solving
Procedure. This procedure was developed to encourage and facilitate the resolution of employee
concerns in a responsive and fair manner,and may be used to attempt to resolve issues that may not be
subjected to the Grievance Procedure. Any reference to days in this Article means business days.
12.2. Step l:An employee will submit his/her issue that is not subjecttothe Grievance Procedure inwriting to
his/her supervisor, or designee, within ten (10)days of the occurrence of the event giving rise to the
complaint or within ten (10)days from the time that the employee became aware of such event. The
Local 501 MOU July 1,2014 to June 30, 2016
Page 7
supervisor,or designee,will review the situation or decision,and provide a written response within five
(5)days from the date they were notified of the problem.
12.3. Step 2: Ifthe problem is not resolved to the employee's satisfaction,a written statement concerning the
problem may be filed with the employee's Division Manager or designee,Within ten(10)days of receipt
of the supervisor's decision. The employee raising the issue will be provided a written response from
the Division Manager,or designee,within ten (10)days after their statement is received.
12.4. Step 3: If a problem is not settled under Step 1 or Step 2,it may be presented within ten(10)days to an
Assistant General Manager,or designee,who will form an adhoc Work Issues Committee,comprised of
the employee's Department Director, or designee, another management representative and two (2)
Local 501 representatives. The Work Issues Committee will convene to cooperatively review and
develop recommendations for solution to the problem.The Assistant General Manager,or designee,will
utilize the committee's recommendation(s)to respond in writing to the employee within fifteen(15)days
after the date the problem is received.
12.5. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the
Assistant General Manager, or designee, is final.
ARTICLE 13.SALARY ADJUSTMENTS AND COMPENSATION
13.1. Merit Pay Step System
13.1.1. Each pay grade is divided into five(5)steps,with an approximate 5.0%difference between
each step.
13.1.2. Pay increases will only apply to eligible employees in an active payroll status on the
effective dale of implementation. Eligible employees will not receive retroactivity if active
payroll status becomes effective after the date of implementation.
13.2. Merit Pav
13.2.1. Stepincrease Pav—Bargaining unit employees will be eligible for Step Increase Pay based
upon receipt of year-end performance appraisal ratings issued by the assigned supervisor.
Step Increase Pay will be paid according to the following:
13.2.1.1. Eligible-Employees must have a proficient year-end performance appraisal to
receive a one(1)step base-building salary increase until earning placement at
step five(5).
13.2.1.2. Ineligible- Employees who are placed on a Performance Improvement Plan
(PIP) due to a needs improvement performance review on the year-end
appraisal or who are on a PIP at the time of the year-end appraisal period will
remain at their current step until the PIP is satisfactorily completed.
13.2.1.3. Performance Management Program:The performance management program
includes three (3) rating categories (exceeds, proficient, and needs
improvement)for performance appraisals.
13.2.2. Development Pav—Employees under this Agreement will be eligible for Development Pay.
Development Pay is a non-base building pay type that will be distributed in a lump-sum
amount each pay period. Employees must have a proficient year-end performance
appraisal to be eligible for the following Development Pay types:
13.2.2.1. Education — Eligible employees who have completed a degree of approved
subjects at an accredited college or university will receive $20.76 per pay
period for an associate degree and $41.53 per pay period for an
undergraduate degree. The maximum amount of Education pay is fixed at
$41.53 per pay period.
Local 501 MOU July 1,2014 to June 30, 2016
Page 8
13.2.2.2. Certification/License — Eligible employees who obtain a District approved
certification or license will receive $7.62 per pay period per certificate or
license with a maximum of three(3)certificates and/or licenses.The maximum
amount of certification/license pay for any combination of certificates and/or
licenses is fixed at$22.86 per pay period.
13.2.2.2.1. The overall maximum Development Pay for any combination of
education,certification and/or licenses is fixed at$64.39 per pay
period.
13.2.2.2.2. Grade V Pa v — Employees who receive Grade V pay in
accordance with the applicable District policy are ineligible to
receive Development Pay for their Grade V California Wastewater
Treatment Plant Operator Certificate. Employees who possess
Grade V Certificate and do not meet the criteria for Grade V Pay
are eligible for Development Pay in accordance with the
Development Pay Program Guidelines.
13.2.2.2.3. Employees who are placed on a PIP due to a needs improvement
performance review on the year-end performance appraisal are
not eligible for Development Pay until the PIP is satisfactorily
completed.
13.2.2.2.4. Employees who are placed on a PIP due to needs improvement
performance outside the year-end appraisal will have all
Development Pay suspended until the PIP is satisfactorily
completed. The return of Development Pay will not be retroactive.
13.3. Salary Range Adiustments
13.3.1. Effective the first pay period in July 2014, employees under this Agreement will receive
salary range adjustments at a flat rate of 2.0%.
13.3.2. Effective the first pay period in July 2015, employees under this Agreement will receive
salary range adjustments at a flat rate of 2.0%.
ARTICLE 14.SEVERENCE PAY
14.1. Employees are expected to give a minimum of two (2) weeks written notification when terminating
employment with the District. Except for disciplinary cause,when afull-time employee is terminated by
action of the District, the employee will be notified in writing two (2) weeks prior to the effective
separation date. In the event the District does not give such notification,the employee will be entitled to
severance pay in accordance with the formula set forth below:
14.1.1. Full-time, regular employees will be entitled to eight (8) hours pay for each full calendar
month of continuous employment not to exceed one hundred sixty(160) hours pay.
14.1.2. Employees in limited term or part-time positions, probationary employees and employees
who are separated for cause are not eligible for severance pay under any circumstances.
ARTICLE 15.DEFERRED COMPENSATION
15.1. Employees may participate in the District approved deferred compensation plan subject to IRS
requirements, and in accordance with all guidelines for voluntary participation established by District
management.
Local 501 MOU July 1,2014 to June 30, 2016
Page 9
ARTICLE 16.1-10LIDAYS
16.1. For the purpose of the District's business calendar,the days listed below are observed bythe District as
holidays. Employees who are assigned to eight(8), nine(9) or ten (10) hour shifts, Monday through
Friday,will observe the holidays listed in Schedule A. Employees who are assigned to twelve(12)hour
shifts will observe the holidays as listed in Schedule B. Employees shall receive holiday pay if their
entire scheduled work shifts immediately preceding and following the holiday are in a paid payroll status,
meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When
an employee's work schedule requires that they work on an observed holiday,the employee shall be
paid at his/her regular rate of pay for the holiday, or receive an equivalent amount of Holiday
Compensatory Time Off. Employees shall also receive premium pay at the rate of one and one half
(1.5)times their regular hourly rate for all hours actually worked.Employees with a compensatory time
off balance in excess of fifty (50) hours as of the last pay period ending in October will receive a
mandatory payout for the hours that exceed fifty(50).
SCHEDULEA
HOLIDAY 2015 2016
New Years Day January 1 January 1
Lincoln's Birthday February 12 February 12
President's Day February 15
Memorial Day Ma 30
Independence Day July 4
Labor Day September 7 September 5
Veteran's Day November 11 November 11
Thanksgiving Day November 26 November 24
Day after ThanksolAng November27 November 25
Day before Christmas December 24 December 23
Christmas December 25 December 26
Floating Holiday See 16.2 See 16.2
SCHEDULE
HOLIDAY 2015 2016
New Years Day January 1 January 1
Lincoln's Birthday February 12 February 12
President's Day February 15
Memorial Day Ma 30
Independence Day July 4
Labor Day September 7 September 5
Veteran's Day November 11 November 11
Thanksgivina Day November 26 November 24
Day after Thanksgiving November27 November 25
Day before Christmas December 24 December 24
Christmas December 25 December 25
Floating Holiday See 16.2 See 16.2
Local 501 MOU July 1,2014 to June 30, 2016
Page 10
16.2. Floating Holiday: Employees may elect one (1) day during each year as a "Floating Holiday'. New
employees shall be granted a"Floating Holiday"on a pro-rata basis in the first calendar year of service
per the following table:
Hire Date Percent
1' Quarter(January-March) 100%
2n,Quarter(April-June) 75%
3 Quarter(July-September) 50%
4 Quarter(October-December) 0%
16.3. Employees must use the"Floating Holiday within the calendar year it is granted. Every effort will be
made to approve an employee's request for a"Floating Holiday off providing sufficient notice is given.
ARTICLE 17.HOURS OF WORK
17.1. For record keeping and accounting purposes,the"workweek"forfull-time employees is forty(40)hours
per 168-hour period,to be paid on a biweekly payroll basis of eighty(80)hours worked. Employee work
periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9180),five
8-hour days each workweek (10/80),four 10-hour days each workweek(8/80), or three 12-hour days
and one 4-hour day each workweek(7/80). The starting and ending times of employees'workweeks
may vary but will be subject to a bid agreement based on seniority.The regular hours of work for each
shift will be consecutive and will be posted. Current practices regarding hours of work for Maintenance
personnel and meals for Operations personnel will continue. The regular hours of work for each shift will
be consecutive,divided only by normal breaks or rest periods. Work schedule and shift start and stop
times will not be adjusted to avoid payment of overtime.
17.2. The District may, in accordance with Article 6—District Rights, change an employee's work schedule
and/or work location with a thirty(30)day written notice to the affected employee. The change will not
be made as a disciplinary action orto avoid payment of overtime. The thirty(30)day written notice will
not apply to shift changes pursuant to Article 49.
17.3. Employees will be allowed a fifteen(15)minute cleanup period prior to the end of each work shift. If the
employee's work shift is extended,the fifteen (15)minute cleanup period shall occur at the end of the
extended period. Employees may not avoid the cleanup period and end their shift before its scheduled
ending time.
17.4. Employees will receive paid rest periods not to exceed ten(10)minutes no more than twice in an eight
(8),nine(9)or ten(10)hour shift or three(3)times for a shift of more than ten(10)hours. Each shift will
contain a minimum thirty(30)minute meal period for every six(6)hours of work. Meal and rest periods
may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an
employee reports to work as scheduled and was not notified that his/her hours had been changed,
he/she will receive two(2) hours pay at the overtime rate.
17.5. Operations
17.5.1. For purposes of this Article,the day shift is defined as an assigned work shift of at least seven
(7)consecutive hours,between 0600 hours and 1800 hours. The night shift is defined as an
assigned work shift of at least seven (7)consecutive hours,between 1800 and 0600 hours.
17.5.2. Any employee who declares that an individual hardship exists should submit a request,to be
excluded from the twelve(12)hourworkwe4z,to the Human Resources Department. Human
Resources will determine if there is a valid employee hardship,on a case by case basis,and
notify the Local 501 representative of the decision.
Local 501 MOU July 1,2014 to June 30, 2016
Page 11
17.6. Maintenance
17.6.1. Maintenance: Except where otherwise provided below, the official workweek for full-time
represented personnel in Maintenance will be forty(40)hours per week. The workweek will
consist of a four(4)consecutive day work schedule with ten(10)consecutive daily hours in a
workday with a one-half(%z) hour unpaid lunch.
17.6.2. The workday will be 6:00 a.m. to 4:30 p.m. The workweek will begin on a Monday or a
Tuesday and end on the corresponding Thursday or Friday. All hours greaterthan 40-hours
in an individual's assigned workweek will be considered overtime and paid at one and one-
half(1.5)times the regular rate of pay.
17.6.3. Any employee who declares that an individual hardship exists should submit a request,to be
excluded from the 4110 workweek,to the Human Resources Department. Human Resources
will determine if there is a valid employee hardship, on a case-by-case basis, and notify the
Local 501 representative of the decision.
17.6.4. Co-Generation: For purposes of this Article,the day shift is defined as an assigned work shift
of at least seven (7)consecutive hours, between 0600 and 1800 hours. The night shift is
defined as an assigned work shift of at least seven(7)consecutive hours,between 1800 and
0600 hours.
17.6.5. Any employee who declares that an individual hardship exists should submit a request to be
excluded from the twelve (12) hour shift to Human Resources. Human Resources will
determine if there is a valid employee hardship,on a case-by-case basis,and notifythe local
501 bargaining unit representative of the decision.
17.6.6. Disputes over days off will be handled on the basis of seniority except when the District can
demonstrate a business necessity.
ARTICLE 18.CALL-BACK PAY
18.1. When an employee is called back to work by District management without prior notice, and the
employee has completed his/her normal work shift and left the work station;when prior notice is given
but the work begins on the same day at least three (3) hours after completion of the regular shift; or
when an employee assigned to standby is actuallycalled to work,the employee will receive a minimum
of three(3)hours of call back pay. The three(3)hour minimum,whether or not actually worked,will be
paid at the rate of one and one half(1.5)times the regular hourly rate.
18.2. The call back period shall begin when the standby employee has been informed by the District to return
to work. The call back period shall end when either the employee arrives at his or her residence or the
original destination; in either case, the employee must inform the District upon arrival.
18.3. If the call back period has ended and the employee is called back to work(whether within or outside of
the 3-hour minimum timeframe),a new call back period will be started and the employee will be eligible
for at least the 3-hour minimum call back pay.
18.4. If the call back period has not ended and the employee is called back to work(whether within or outside
of the 3-hour minimum timeframe), the call back period and associated pay will continue but the
employee will not be eligible for another 3-hour minimum call back pay.
18.5. Call back pay is applied per call back and not per work assignment or work order.
18.6. Call back work performed by employees on standby assignments is intended for activities that are
imperative and not routine in nature,as determined by the applicable on-duty Operations Supervisor or
designee.
18.6.1. In some instances, if call back work can be postponed for several hours, the Operations
Supervisor or designee will do so as a courtesyto the employee and to allow for the work to
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Page 12
be performed during daylight or day shift. For instance,a breakdown occurs at 3:00 a.m.but
work can be postponed a few hours so the standby employee can be called in at 6:00 a.m.
ARTICLE 19.STANDBY PAY
19.1. Standby is time during which an employee is not required to be atthe work location oratthe employee's
residence but is required to be available for immediate return to work. Standby assignments will first be
made on a voluntary basis. A volunteer standby list will be established by classification and job location.
Standby assignments will be made from the list of employees who are competent and experienced,in
alphabetical order, on a rotating basis. In the event that no one volunteers, the District will assign
standby byjob classification and work location from employees who are competent and experienced on
a rotational basis. An employee placed on standby will be compensated at the rate of three hundred
fifty-five(355)dollars per week,and will receive Call Back pay when he/she is actually called to work.
19.2. The District and Local 501 agree to reopen this Agreement following ratification to discuss Article 19
Standby Pay.
19.2.1. The parties acknowledge that this reopener does not obligate the District or Local 501 to
change and/or modify any provisions of the MOU during the term of this MOU. Any
changes/modifications to the MOU as a consequence of this reopener must be by mutual
agreement. The failure to reach mutual agreement is not subject to the MOU grievance
process; unfair labor practice proceedings before the Public Employment Relations Board;
and/or proceedings in the Superior Court.
ARTICLE 20.INSURANCE
20.1. The District will provide healthcare and welfare insurance benefits.
20.2. All insurance coverage will become effective on the first day of the month following date of hire,
regardless of hire date. An open enrollment period will be held annually.
20.3. Medical Reopener. The District and Local 501 agree to reopen this Agreement upon ratification to
discuss the transition from Anthem to Blue Shield through California State Association of Counties -
Excess Insurance Authority(CSAC-EIA),or to another carrier directly,and varied plan design changes in
order to mitigate excise taxation in 2018. Potential strategies for consideration include, but are not
limited to,the following:plan design changes to office and specialist copays,emergency room copays,
plan deductibles and contribution rates;and alternative plan offerings such as a high deductible health
plan with health savings account funding.
20.3.1. The parties agree that this reopener shall be subject to Government Code Section 3505.4 and
case law, including PERB, decisions which interpret that provision.
20.4. Medical Insurance
20.4.1. The District will provide medical health insurance coverage through a Health Maintenance
Organization (HMO) medical insurance plan and a Preferred Provider Organization FPO)
medical insurance plan,until such time that the parties agree to changes through the medical
reopener in Section 20.3.
20.5. Regular,full-time employees:
20.5.1. The District will contribute 90%of employee only premiums for the HMO medical health plans
and 80% of employee only premiums for the PPO medical health plan. The District will
contribute 80% for employee +1 dependent and full family premiums for the HMO or PPO
medical plans. Any change in insurance rates will be shared equally in same ratio as the
District and employees currently pay premiums. Before the renewal of any District's sponsored
health insurance plan,the parties agree to meet and confer as to changes in the plan.
20.6. Group Insurance Premiums
Local 501 MOU July 1,2014 to June 30, 2016
Page 13
20.6.1. Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis.
20.7. Life Insurance
20.7.1. The District will pay the full premium for$50,000 term life insurance on each employee.
20.8. Short Term Disabililv
20.8.1. The District will provide a non-work related, short-tens disability indemnity plan that provides
benefits for employees equal to California's State Disability Insurance(SDI)program for up to
twenty-six(26)weeks following a fourteen (14)calendar day waiting period.
20.9. Long Term Disabililv
20.9.1. The District will provide a non-work related, long-term disability indemnity plan that pays two-
thirds of the employee's rate of pay in effect at the time of such disability,not to exceed$5,000
per month,up to age 65,following a 90-day waiting period of continuous disability,at such time
that an employee completes five(5)years of service.
20.9.2. For participants age 64 and younger, the maximum period of payment is based on the Social
Security Act retirement age of 65. For participants age 65 and older,the maximum period of
payment is specified. The specified periods and additional information about coverage is
included in the District's long-term disability plan contract accession on the intranet.
20.9.3. No combination of disability or sick leave pay will result in more than an employee's regular rate
of pay. Employees may not receive short-term and long-term disability benefits at the same
time. An employee who is otherwise not eligible for District paid Long Term Disability may
purchase such coverage at his or her own expense.
20.10. Dental Insurance
20.10.17he District will contribute 80% of employee only and 80% of full family premiums for dental
insurance.
20.11. Vision Insurance
20.11.1.The District will provide a vision insurance plan for regular, full-time employees and eligible
dependents.
20.12. Retirina Employees
20.12.13he District will pay,for employees hired prior to July 1, 1988,two and one-half(2.5)months'
premium for each year of continuous service of a retiring employee towards the premium costs
of coverage for the employee and eligible dependents under the District's medical plan.
20.12.2.In the event the District adds additional optional insurance plans, the District's share of the
premium will be the same as for existing plans as set forth above. In the event the District
changes underwriters for existing insurance plans,the District's share of the premium will bathe
same as for existing insurance plans as set forth above.
20.12.37he District will continue to implement the retiree medical health premium offset program
wherein the cost of health premiums are offset by ten dollars($10)per month for every year of
continuous service up to a maximum of 25 years or two hundred fifty dollars($250)per month.
ARTICLE 21.REIMBURSEMENT ACCOUNT
21.1. Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their
portion of the cost of benefits under the Plan through salary redirection arrangements. The options
available under the flexible benefits program are listed below. This is a brief overview of the different
Local 501 MOU July 1,2014 to June 30, 2016
Page 14
options. For complete information regarding Flexible Spending Accounts employees must refer to the
plan booklet available in the Human Resources Department.
21.2. Medical Care Reimbursement Account
21.2.1. The purpose of this account is to provide a method through which the employee can
accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of
reimbursing himself/herself for payment of health care costs not otherwise covered by his/her
medical insurance.
21.3. Dependent Care Assistance Account
21.3.1. The purpose of this account is to provide a method through which the employee can
accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of
reimbursing himself/herself for childcare expenses or day care for a disabled dependent.
ARTICLE 22.OVERTIME
22.1. Employees will be notified as soon as practicable after the District decides upon the need for
overtime or additional work. The District may require the performance of overtime. In the event no
qualified employee wishes to work overtime, District's management may select employees with the
ability to perform the work by inverse seniority. District managers will attempt to evenly distribute
overtime among employees based upon an employee's ability to perform the overtime work. For the
purposes of overtime calculation, all time charged to unscheduled leave will not be counted as time
worked. Pay for overtime will not occur until after work time(which includes scheduled leave)of
forty(40) hours in a seven(7)day workweek is reached.
ARTICLE 21PROBATIONARY PERIOD
23.1. All new employees and employees who are reassigned or laterally transferred serve an initial
probationary period beginning with the date of hire, reassignment or transfer and extending to at
least the first day of the pay period following twenty-six(26)weeks of employment without a break in
service. Extended absence without pay,short-tern and long-tern disability and Workers'
Compensation leave does not provide an opportunity to judge an employee's capability to meet
performance expectations for a position, and thus the time spent on such leaves will not be included
towards completion of the probationary period and may result in an extension.
23.2. Employees who are rehired following a break in service must complete a new probationary period
whether or not one was previously completed. An employee may be released during his/her
Probationary Period at the discretion of the District without recourse to the Grievance Procedure.
ARTICLE 24.PROMOTIONS
24.1, A promotion is the appointment of an employee to another classification with a higher maximum rate
of pay. The District will determine whether a vacant position will be filled as an open or promotional
opportunity or recruitment. Whenever the District intends to fill a position by promotion,the District
will post the opportunity for a minimum often (10)business days. Employees must apply during the
period of posting. Notices will be posted on the District's intranet.
24.2. A promoted employee will serve a promotional probationary period lasting at least until the first day
of the pay period twenty-six(26)weeks after the effective date of the promotion. At any time during
the promotional probationary period, an employee may be returned to his/her previous position. If
the employee does not pass the probationary period, the District shall return the employee to his or
her previous position or an equivalent position. The promotional probation period may be extended
by mutual agreement between the employee and District's management for up to ninety(90)days. If
an employee is promoted during his/her initial probationary period, the period will be extended until
at least the first day of the pay period twenty-six(26)weeks after the effective date of the promotion.
Local 501 MOU July 1,2014 to June 30, 2016
Page 15
24.3. Promoted employees will receive the equivalent of a one (1)step increase in pay, not to exceed the
top of the range for the new classification or the minimum rate of the new classifcation whichever is
greater.
ARTICLE 25.RETIREMENT
25.1. The District will continue participation in the Orange County Employees Retirement System
(OCERS),wherein all full-time employees are considered members. The following retirement
program is in effect pursuant to the contract between OCERS and the District.
25.1.1. Employees hired before September21. 1979:The Districtwill continueto contractwith OCERS
to provide the 2.5%@ 55 benefit formula(Plan G)based on the highest consecutive twelve(12)
months average earnings, past and future service.
25.1.1.1. The District will continue to pay 4.5%toward the employee's contributions to OCERS
for those employees who elected to make a one-time decision to remain in the Plan
G program.
25.1.2. Employees hired on or after September 21, 1979 and before July 1. 2011: The District will
continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H)based on
the highest consecutive thirty-six(36) months average earnings, past and future service.
25.1.2.1. The District will continue to pay 3.5%of an eligible employee's base salary towards
the employee's contributions to OCERS.
25.1.3. Employees hired on or after July 1.2011 and before January 1,2013:The District will contract
with OCERS to provide the 1.667% @ 57.5 benefit formula (Plan B) based on the highest
consecutive thirty-six(36) months average earnings, past and future service.
25.1.3.1. The District will pay 0%of an eligible employee's base salarytowards the employee's
contributions to OCERS.
25.1.4. Employees hired on or after January 1,2013:The District will contract with OCERS to provide
the 2.5% @ 67 benefit formula(Plan U -PEPRA) based on the highest consecutive thirty-six
(36)months average earnings, past and future service.
25.1.4.1. The District will pay 0%of an eligible employee's base salarytowards the employee's
contribution to OCERS.
25.1.5. All monies actually contributed into the retirement system by an employee will be deducted from
gross salary for taxation purposes in accordance with Internal Revenue Code provisions.
ARTICLE 26.SHIFT DIFFERENTIAL
26.1. Employees who are assigned to work a night shift that consists of fifty percent(50%)or more of the
hours between 6:00 p.m. and 6:00 a.m.and who actually work that shift will receive a shift
differential of$3.00 per hour.
26.2. The District and Local 501 agree to reopen this Agreement following ratification to discuss Article 26
Shift Differential.
26.2.1. The parties acknowledge that this reopener does not obligate the District or Local 501 to
change and/or modify any provisions of the MOU during the term of this MOU. Any
changes/modifications to the MOU as a consequence of this reopener must be by mutual
agreement. The failure to reach mutual agreement is not subject to the MOU grievance
process; unfair labor practice proceedings before the Public Employment Relations Board;
and/or proceedings in the Superior Court.
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Page 16
ARTICLE 27.LEAVE-OF-ABSENCE WITH PAY
27.1. Personal Leave
27.1.1. Personal leave is provided to allow employees time off with pay for vacation,personal business
and illness or injury. Personal leave is accrued by full-time employees for all paid hours,
including hours actuallyworked and hours in a paid-leave payroll status,on a biweekly basis as
follows:
Years of Service Hours- Hours-
Biweekly Annual
In years 0 through 1 2.31 80'
In years 2 through 4 5.38 140
In years 5 through 10 6.92 180
In year 11 7.23 188
In year 12 7.54 196
In year 13 7.85 204
In year 14 8.15 212
In year 15 8.46 220
In year 16 8.69 226
In ear 17 8.92 232
In ear 18 9.15 238
In ear 19 1 9.38 244
In ear 20 and over 1 9.62 250
27.1.2. Only sixty(60) hours may be taken in the first year; the twenty(20) additional hours will be
credited to the accrual balance following successful completion of one (1)year's service.
27.1.3. When unpaid absences occur, personal leave accruals will be applied by straight proration of
leave accruals based on the number of hours actuallyworked, and is applicable to all types of
leave,whether legally protected or not.
27.2. Scheduled Time Off
27.2.1. Management will make reasonable effort, considering the operational needs of the District,to
accommodate all employee requests for time off. Scheduled time off should normally be
requested at least two (2) weeks in advance to increase the likelihood of those dates being
approved.
27.2.2. Employees with at least one(1)year's service must request and take at leastforty(40)hours off
each year.
27.2.3. Supervisor absences will not affect an employee's abilityto scheduletime off unless the time off
request is submitted within two(2)weeks of the date requested.
27.2.4. Requests fortime off that are submitted beyond six(6)months shall not be approved unlessthe
request is for at least one (1)week in duration. These requests shall be approved based on
seniority. Requests for time off that are less than one(1)week induration must be submitted
within six(6)months of the date requested. Time off requests that are submitted within six(6)
months shall be approved on a first-come,first-serve basis based on staffing requirements.
Excessive single or partial day requests for time off may be cause for denial if the absence(s)is
found to negatively impact the effectiveness of work teams, scheduling of work, training, and
the ability to take multiple days off by other staff.
27.2.5. Full-day time off requests with less than twenty-three (23) hours' notice shall be considered
unscheduled. All other time off requests, including partial day time off requests, must be
requested in accordance with the provisions of this Article and may be considered scheduled at
management's discretion based on business needs.
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Page 17
27.3. Unscheduled Time Off
27.3.1. Personal leave provides income protection to an employee unable to work due to illness,injury
or pregnancy, caring for an ill or injured member of his/her immediate family or other personal
emergency. Unscheduled time off must be accounted for by completion of an Unscheduled
Time Off Report upon the employee's return to work. It is the responsibility of District's
management to control the potential abuse of unscheduled time off privileges. Tardiness less
than fifteen (15) minutes will not be deducted from the employees pay, but numerous
occurrences will be addressed through the progressive discipline procedures. Employees who
are more than fifteen (15) minutes tardy to work must use accrued time off to offset the time
away from work. Tardiness of more than fifteen(15)minutes maybe considered unscheduled
time off based on excessive occurrences.
27.3.2. Employees must notify their supervisor prior to the start time of their shift when they are unable
to report to work.Any absence that is requested within twenty-three(23)hours of the start of an
employee's work schedule, excluding protected leaves of absence and bereavement leave,
shall be considered unscheduled time off.
27.3.3. An employee's attendance record will be reviewed with an employee after five (5) separate
occurrences of unscheduled time off to provide an opportunity to assess problems that could
potentially lead to disciplinary action. The accumulation of the sixth and seventh occurrence
within a twelve (12) month period will result in a verbal warning. The eighth occurrence will
result in a written warning. Employees who are charged with ten occurrences of unscheduled
time off within a calendar twelve(12)month period will be subject to termination.A rolling(12)
month calendar period will be utilized to measure absence occurrences.A"rolling"twelve(12)
month calendar period is measured backward from the date the employee uses the leave.
Absences of multiple consecutive days involving the same injury or illness will be considered a
single occurrence.The District also has the right to discipline employees on the basis of total
absences away from work.
27.3.4. Employees returningfrom an extended leaveshould notify their supervisor as soon aspossible
to facilitate personnel scheduling.
27.3.5. The employee may be required, at any time, to furnish a certificate issued by a licensed
physician or nurse,or other satisfactory evidence of illness;however,for unscheduled absences
of ten (10) consecutive days or more, a request for leave and a medical statement, on
prescribed forms,stating expected date of return must be submitted to Human Resources. For
absences of one (1) or more working days in an unpaid status, a request for leave and a
medical statement on prescribed forms, stating expected date of return must be submitted to
Human Resources.
27.4. Personal Leave and Workers' Compensation Leave
27.4.1. Employees who are injured in the course of their employment are placed on Workers'
Compensation Leave, and receive wage loss benefits to which they are entitled under the
Workers'Compensation Act. Employees may request to receive prorated Personal Leave pay
to supplement their Workers'Compensation payments in an amount such that the sum of both
is equal to the employee's regular base pay.
27.5. Personal Leave Payoff
27.5.1. Employees who terminate,retire or decease will be paid in full at their current rate of pay for all
Personal Leave hours accrued.
27.6. Maximum Accrual
27.6.1. Employees may have a maximum accumulation of four hundred forty(440)hours of personal
leave as of the last day of the final pay period in December of each year. In the event an
employee accrues personal leave in excess of four hundred forty(440)hours, it must be used
prior to said December date. All other remaining hours in excess of four hundred forty(440)will
be paid to the employee in the first pay period in January at the employee's then current hourly
rate of compensation.
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Page 18
27.7. Sick Leave Bank
27.7.1. Employees who elected to bank sick leave accrued prior to the implementation of Personal
Leave provisions may elect to use such time off for absence due to a bona fide illness,injury or
pregnancy,or to attend to the illness or injury of an immediate family member. Employeeswho
retire or decease will be paid at the fifty percent(50%)rate for all banked sick leave hours;an
employee who terminates will be compensated for banked sick leave as follows:
Banked Sick Leave Rate of Payoff
Hours
0—100 0 percent
101 -240 25 percent
241 -560 35 percent
Over 560 50 percent
27.7.2. If the need for leave is due to the employee's own serious health condition, as defined in the
Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFR4), the
certification requirement will comply with the provisions of these Acts.
27.8. Jury Duty Leave
27.8.1. Anyfull-time employee,including probationary,who is called forjury duty shall be entitled to his
or her regular pay for those hours of absence due to performance of jury duty for a period up to
twenty-two(22)working days.
27.8.2. Priortojury dutyservice,each employee mustcomplete a time off requestthrough the District's
timesheet system and provide a copy of the summons to his or her supervisor.
27.8.3. Employees who work otherthan the day shift who are called forjury dutywill be considered on
day shift for the duration of their jury service for purposes of this provision. If a portion of that
shift should fall on a weekend or other day the employee is not required to be present in court,
the employee will be expected to work.
27.8.4. A copy of the jury notice must be provided to the employee's supervisor. Employees must
report for work during their regularly scheduled work shift when they are relieved from jury duty,
unless there is less than one-half(%)of their regular shift remaining.
27.9. Witness Leave
27.9.1. Any full-time, including probationary, employee, who is required to be absent from work by a
subpoena properly issued by a court, agency or commission legally empowered to subpoena
witnesses,which subpoena compels his/her presence as a witness,except in a matterwherein
he/she is named as a defendant or plaintiff or as an expert witness,will, upon approval of an
online time off request, be entitled to the time necessary to comply with such subpoena,
provided any fees received for such service,exclusive of mileage,are submitted to the District
for deposit in the General Fund of the District.
27.9.2. An employee so subpoenaed must submit a copy of the subpoena to his/her supervisor and
complete an online time off request form in orderto be eligible for payforsuch absence. To be
entitled to receive regular payfor such witness leave,the employee must reportforwork atthe
District for time not actually retained on witness service of one(1)hour or more prior to and/or
upon completion of each day's service, exclusive of travel time.
27.10. Military Leave
27.10.1.A request for military leave will be made upon leave-of-absence forms approved bythe Human
Resources Department and will stale the date when it is desired to begin the leave-of-absence
and the date of anticipated return. A copy of the orders requiring such military service will be
submitted with the request.
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Page 19
27.10.2.Provisions of the Military and Veterans Code of the Stale of California,Sections 395-395.5 will
govern military leave. In general,current law provides that an employee having one(1)year or
more service with a public entity is entitled to military leave with pay not exceeding thirty(30)
days per year if the employee is engaged in military duty ordered for purposes of active military
training or encampment. An employee who is required to attend scheduled service drill periods
or perform other inactive duty reserve obligations is entitled to military leave without pay, not
exceeding seventeen (17)calendar days per year, although the employee may, at his or her
option, elect to use accrued leave time to attend the scheduled reserve drill periods or to
perform other inactive drill period obligations. Employees who participate in weekend military
drill duty are not eligible for leave with pay for such activity, but may have their regular work
schedule changed to accommodate the required time off.
27.11. Bereavement Leave
27.11.1.Any full-time employee, whether probationary or regular, will receive a maximum of thirty-six
(36) hours of paid time for the death or funeral of an immediate family member. Immediate
family member is defined as the employee's father, step-father, father-in-law, mother, step-
mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic
partner, biological child, adopted child, step-child, child of a domestic partner, grandchild,
grandparent, foster parent, foster child, legal guardian, or any family member with whom the
employee resides.
ARTICLE 28.LEAVE-OF-ABSENCE WITHOUT PAY
28.1. It is the policy of the District to grant employees leaves-of-absence without pay under certain
circumstances and in accordance with state and federal benefit entitlement laws. Except as stated
below, employees will not receive compensation during an unpaid leave-of-absence. Employees will
not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances,
excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical
Leave Act)/CFRA(California Family Rights Act)for their own serious health condition.
28.2. Using the prescribed forms, approved by District management, any full-time, including probationary,
or part-time employees with at least fifty-two (52)weeks of service and at least twelve hundred fifty
(1,250) hours of service, may be granted an FMLA or CFRA leave-of-absence without pay, not to
exceed twelve (12)weeks in a rolling twelve(12)month calendar period. A"rolling"twelve If 2)
month period is measured backward from the date the employee uses the leave.A request for leave
of absence without pay must be made upon prescribed forms in all instances where an employee is
absent without pay for more than five(5)consecutive working days, or for absences of ten(10)
working days or more when using paid sick leave accruals.
28.3. Substitution of Paid Leave
28.3.1. Employees who request FMLA or CFR4 Leave for qualifying purposes other than the
employee's own serious health condition will be required to use all accruals before unpaid leave
is granted. Paid time off will not accrue during any pay period that an employee is absent
without pay for more than one (1)day.
28.3.2. Personal leave accruals may be used for the care of the employee's father,step-father,father-
in-law,mother,step-mother, mother-in-law,brother,step-brother,sister,step-sister, husband,
wife,domestic partner,biological child,adopted child,step-child,foster child,legal ward,child of
a domestic partner, grandchild, grandparent, foster parent, legal guardian, or any family
member with whom the employee resides.
28.4. Permissible Uses
28.4.1. FMLA Leave. FMLA Leave may be used for:
28.4.1.1. The birth of a child or to care for a newborn of an employee;
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Page 20
28.4.1.2. The placement of a child with an employee in connection with the adoption or foster
care of a child;
28.4.1.3. The care for the employee's father,step-father,father-in-law, mother,step-mother,
mother-in-law, brother, step-brother, sister, step-sister, husband, wife, registered
domestic partner,biological child, adopted child,step-child,foster child,legal ward,
child of a domestic partner, grandchild,grandparent,foster parent,legal guardian,or
any family member with whom the employee resides who has a serious health
condition, as defined in the Act;
28.4.1.4. The employee's own serious health condition that renders the employee unable to
perform the essential functions of his or her position, including incapacity due to
pregnancy;
28.4.1.5. A qualifying exigency arising out of the fact that an employee's family member is on
covered active duty or called to covered active duty status in the Armed Forces.A
qualifying exigency may include activities such as making arrangements for
childcare,attending counseling relating to the active duty of the service member,or
attending to farewell or arrival arrangements for the service member;
28.4.1.6. The care for the employee's family member or"next of kin'service member of the
United States Armed Forces who has a serious injury or illness incurred in the line of
duty while on active military duty. This leave may consist of up to twenty-six (26)
weeks of unpaid leave during a single 12-month period.
28.4.2. CFRA Leave. CFRA Leave may be used for:
28.4.2.1. The same purposes as FMLA Leave,including the care of a domestic partner orchild
of a domestic partner, and will run concurrently with FMLA Leave.
28.4.2.2. CFRA Leave may not be used for 1)an employee's incapacity due to pregnancy,2)
leave due to a qualifying exigency, or 3)to care for a family member or next of kin
with a serious injury or illness incurred in the line of duty.However, incapacity due to
pregnancy may entitle an employee to up to four(4)months of pregnancy disability
leave under California's Pregnancy Disability Leave(PDL)law.
28.5. General Provisions
28.5.1. Requests for FMLA and CFRA Leave
28.5.1.1. Where the need for Leave is foreseeable, the District requests thirty (30) days
advance notice.
28.5.2. Medical Certification
28.5.2.1. As a condition of FMLA or CFRA Leave because of a serious health condition,the
District may require certification bythe employee's attending physician in accordance
with the Department of Labor(DOL) regulations.
28.5.3. Medical and Dental Premiums
28.5.3.1. During FMLA and CFRA Leave,the District will payfor medical and dental benefits at
the same level as coverage would have been provided if the employee was not on
leave. The employee will be required to pay his or her share of medical and dental
premiums. Failure to submit a monthly co-payment, in full,within forty-five(45)days
of the invoice date will result in loss of group coverage. Coverage will be reinstated
upon return to active employment.
28.5.4. Reinstatement
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28.5.4.1. Upon expiration of FMLA or CFRA Leave, the employee will be reinstated to the
same or a comparable position unless the employee would not otherwise have been
entitled to that position for reasons unrelated to such leave (e.g., lay-off), in which
case the District's obligation to continue health and dental or other benefits will
cease.
28.5.5. District Employment of Spouses/Domestic Partners
28.5.5.1. FMLA Leave. Married employees will be limited to a combined total of twelve (12)
weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the
care of a parent or newly born or placed child.
28.5.5.2. CFRA Leave. Married employees and employees in domestic partnerships will be
limited to a combined total of twelve(12)weeks CFRA Leave in a rolling twelve(12)
month calendar period for the care of a parent or newly born or placed child.
28.5.6. General Leave
28.5.6.1. Employees who have exhausted all paid time off accruals may request to be granted
a general leave-of-absence by District management to attend to personal matters or
for FMLA or CFRA qualifying events after the expirations of previously authorized
leave .
28.5.6.2. During a general leave-of-absence, the employee will be required to pay both the
District's and the employee's share of medical and dental premiums.
28.5.6.3. Failure to submit a monthly co-payment, in full, within forty-five (45) days of the
invoice date will result in loss of group coverage. Coverage will be reinstated upon
return to active employment.
28.5.7. Return to Work Policy
28.5.7.1. An employee who has been absent from work due to a medical reason may be
subject to a Return-to-Work medical evaluation.
28.5.7.2. If it is determined that thejob demands of the position last held bythe employee are
not compatible with the employee's restrictions(with reasonable accommodation if
the employee is disabled within the meaning of the ADA/FEHA)and the employee is
willing to return to work, placement in an alternative position, if available, will be
considered. The employee will be re-classified as medically disqualified while
alternative positions are being considered. Such time off will be without pay;
however,the employee may elect to use accrued leave hours,such as vacation,sick
or personal,to receive compensation. Placement of an employee in an alternative
position requires a pre-placement medical evaluation for the alternative job.
28.5.7.3. If it is determined that the job demands of the position last held by the employee are
not compatible with the employee's restrictions (and cannot be reasonably
accommodated if the employee is disabled within the meaning of ADA/FEHA)and
there is not an alternative position,or the employee's restrictions are not compatible
with an alternative position, or the employee is not willing to return to work, the
employee will be re-classified as medically disqualified and not permitted to work.
Thereafter, the employee will be retired for disability, if eligible,or dismissed. Such
dismissal will not imply disciplinary action for cause. If requested,the employee's file
will indicate the employee left for personal reasons.
28.5.8. Bridae of Service
28.5.8.1. If an employee is dismissed per Section 28.5.7.3 and then is rehired to a position
within the District within one(1)year,the District will bridge the employee's service
date. Bridging of service procedures involve adding the total number of days away
from work to the employees original date of hire.
Local 501 MOU July 1,2014 to June 30, 2016
Page 22
28.5.9. Failure to Return to Work
28.5.9.1. If, upon the expiration of FMLA or CFRA Leave, or any District-approved extension
thereof including General Leave, an employee fails to return to work and no
additional leave has been authorized, the employee will be considered to have
automatically resigned from his/her position. In such cases, the employee will
receive advance notification of the District's intent to implement an automatic
resignation.
28.5.10.Compliance with Law
28.5.10.1.These leave-of-absence provisions will be interpreted and applied in a mannerthat is
consistent with the provisions of FMLA,CFRA,ADA and all other laws. In the event
there is a direct conflict between these provisions, as written or applied, the
provisions of law will govern.
ARTICLE 29.CLASSIFICATION STUDIES
29.1. The District will include a representative from Local 501 to participate as a partner in the agency-
wide classification and compensation study.
29.2. An employee who believes his/her position is not properly classified may submit a written request to
the Department Director asking that a classification study be conducted. The Department Director
will acknowledge the request in writing and review the request for accuracy, and forward it to the
Director of Human Resources,or designee, for consideration and response. Classification studies
will only be conducted twice a year in November and durinhq the budget process;therefore,
classification study requests shall be submitted October 1 s for the November review and according
to the Finance budget schedule. District's management may also conduct classification studies at
their discretion to ensure that the duties and responsibilities of all employees are appropriately
allocated within the classification structure.
29.2.1. All classification study findings regarding existing classifications are subject to approval by the
General Manager;findings recommending a newjob classification range are subject to approval
by the District's Board of Directors. The recommendations of the classification study will be
implemented in the first pay period immediately following the completion of the study unless the
recommendations require action by the Board of Directors prior to implementation. In such
event,the recommendations will be implemented in the first pay period immediately following
authorization by the Board.
29.3. Y-Rating
29.3.1. In the event the duties and responsibilities of a position are allocated to a lower paid
classification,the salary of the incumbent of that position will remain unchanged.
29.3.2. Y-rating will be granted for all reclassifications where employees are working in a job
classification with a lower maximum rate of pay.
29.3.3. The Y-rate will remain in effect until the salary range for the new classification equals or
exceeds the employee's Y-rated salary. Employees become eligible for merit increases and
range adjustments when the Y-rate is no longer in effect.
29.3.4. Career Change — Operator-in-Training: Y-rating will occur when an existing employee is
selected as a candidate for an Operator-in-Training classification when the employee's hourly
rate is higher than the applicable hourly rate for the Operator-in-Training classification. The Y-
rating shall begin with the effective date of the new classification and continue for eighteen(18)
months. The employee must obtain a Grade I Plant Operator certificate within this eighteen
(18) month period. The employee will serve a probationary period for the first twelve (12)
months of this eighteen (18) month period. If the employee does not obtain a Grade I Plant
Operator certificate or does not pass probation,the employee will be returned to his/her prior
position or an equivalent position.
Local 501 MOU July 1,2014 to June 30, 2016
Page 23
29.3.5. Career Chance — Power Plant Operator I., Y-rating will occur when an existing employee is
selected as a candidate for a Power Plant Operator I classification when the employee's hourly
rate is higher than the applicable hourly rate for the Power Plant Operator I classification. The
Y-rating shall begin with the effective dale of the new classification and continue for twenty-four
(24)months. The employee will serve a probationary period for the first twelve(12)months of
this twenty-four(24)month period. If the employee does not pass probation,the employee will
be returned to his/her prior position or an equivalent position.
ARTICLE 30.DRIVER'S LICENSE
30.1. Employees who are required by the District to drive must notify their supervisor and the Risk
Management Division immediately upon receipt of any suspension or revocation of their California
Driver's License privileges. Failure to do so could result in disciplinary action up to and including
separation.
30.2. If an employee whose license is suspended or revoked and is thus unable to perform his/her regular
duties and responsibilities notifies the District in a timely fashion,an attempt will be made to place
the employee in an equal or lower level position for which he/she is qualified. Placement in the
range of the new classification is subject to District's management discretion.
30.3. The District will continue to pay the license renewals and physical examination costs of Class A& B
licenses that are specifically required by the District.
ARTICLE 31.LAYOFF PROCEDURE
31.1. Nothing herein will be construed to require the District to fill vacant, budgeted positions nor to
prohibit the District from eliminating vacant positions from the budget. The District reserves the right
to reassign staff to other positions in instances involving job restructuring, reorganization or due to
lack of work.
31.2. If, in the sole discretion of District's management, personnel reductions are necessary, layoff order
and recall lists will be developed based upon job classification, priority of function,job performance,
individual qualifications and seniority. The Local 501 and employees subject to lay off will be
provided with at least two (2)weeks notification in writing whenever possible.
31.3. Employees in classifications subject to layoff may request a voluntary demotion to any previously
held position for which they remain qualified. Such request must be made in writing to the Human
Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an
employee who voluntarily demotes will be unchanged, except that it may not exceed the top of the
range for the lower level classification.
31.4. Recall lists will be developed for all classifications experiencing personnel reductions, and will be
maintained for a period of two(2)years from the date of layoff. Individuals will be placed on the list
in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy
occurs in a classification for which a Recall list exists, an offer of reemployment will be made to the
individual on the top of the list. That individual must respond to the offer within five (5)days, or the
offer will be made to the next person on the list. An individual who either does not respond or
refuses three(3)consecutive offers will have his/her name removed from the list.
31.5. All notification and responses must be in writing and delivered either in person or by Certified Mail. It
is the responsibility of all employees to keep the Human Resources Department informed of their
current address, or where they may be contacted.
ARTICLE 32.LIGHT DUTY
32.1. An employee who is released by a physician to perform limited duties because of a temporary
disability may be assigned to light duty at the discretion of the District. Light duty may consist of
Local 501 MOU July 1,2014 to June 30, 2016
Page 24
duties other than those normally performed by the employee and that are within the employee's
medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job
classification to which he or she was assigned prior to being temporarily disabled.
ARTICLE 33.MEDICAL EXAMINATION
33.1. When there is reasonable evidence to suggest that an employee is impaired in a manner that
endangers his/her own health or safety, or that of others,the District may require that employee to
be examined or evaluated by a health care provider. The purpose of such examination must be job
related. Any examination under this provision will be conducted on District's time and at District's
expense. An employee may submit an independent medical opinion regarding his/her condition and
addressing his/her ability to competently perform the duties of the position. This information will be
reviewed and considered by a competent medical authority in arriving at a decision regarding the
individual's continued employment in the position.
ARTICLE 34.MILEAGE ALLOWANCE
34.1. Approved use of a personal vehicle for District business will be reimbursed at the current IRS rate.
ARTICLE 35.ACTING PAY
35.1. Employees who are assigned by District's management to perform the duties of an open, budgeted
position at a higher level for a period of at least forty(40)cumulative hours in a pay period will be
eligible for a one (1)step salary increase, or the first step of the range for the higher level
classification,whichever is greater. The higher rate of pay begins with hour forty-one (41)and
continues until the assignment ends or the six(6)month limitation has been reached at which time a
determination will be made as to whether the position should or should not be posted. Requests for
acting pay require the pre-approval of the employee's Department Director, or designee. The forty
(40)hour eligibility period may be waived at the discretion of the General Manager.
35.2. Substitution Pav
35.2.1. Employees in the Operations and Maintenance Departments who are assigned by District's
management to perform the duties of an absent Supervisor shall be eligible for Substitution Pay
which shall begin with the first hour of assignment.
35.3. Operations
35.3.1. If a Lead Plant Operator or Senior Plant Operator is assigned to perform the work of an
Operations Supervisor because of the absence of the regularly assigned Operations Supervisor
and the unavailability of an alternate Operations Supervisor for an entire shift,the Lead Plant
Operator or Senior Plant Operator will be paid equal to a one(1)step salary increase or the first
step of the Operations Supervisor pay range, whichever is greater.
35.4. Maintenance
35.4.1. If an employee in any of the "Lead" classifications is assigned to perform the work of a
Maintenance Supervisor because of the absence of the regularly assigned Maintenance
Supervisor and the unavailability of an alternate Maintenance Supervisor for a period of at least
two(2)weeks,the"Lead"worker will be paid equal to a one step salary increase or the first step
of the Maintenance Supervisor pay range, whichever is greater.
ARTICLE 36.PERFORMANCE REVIEWS
(This Article intentionally left blank. Information related to performance reviews is included in Article 13.)
Local 501 MOU July 1,2014 to June 30, 2016
Page 25
ARTICLE 37.PERSONNEL FILES
37.1. Employees have the right to inspect their Personnel File in the Human Resources Department
during the normal office hours of the Human Resources Department by appointment. Employees
who wish to correct allegedly erroneous information in their file, or request that items related to
disciplinary matters be removed after the indicated time period has elapsed, should submit a request
in writing to the Director of Human Resources, or designee. It is the responsibility of each employee
to keep the personal information in his/her file current, including home address, telephone number
and person to contact in an emergency.
ARTICLE 38.BULLETIN BOARDS
38.1. The Local 501 may use the bulletin boards located at Plant 1 (10844 Ellis Avenue, Fountain Valley,
CA 92708)and Plant 2(22212 Brookhurst Street, Huntington Beach, CA 92646)which are
designated for use by employee groups to post notices to the District employees provided that: (a)
no controversial matter which is critical or derogatory of the District, its employees,officers or
Directors may be posted; (b) nothing posted by the District may be removed; (c)the Loral 501 will
remove its notices after a reasonable length of time; and (d)only a reasonable number of notices will
be posted.
ARTICLE 39.RELEASE TIME FOR MEET AND CONFER SESSIONS
39.1. A maximum of six(6)employees covered by this Agreement and appointed by the Loral 501 will be
granted reasonable release time for attending meet and confer sessions at the bargaining table.
Release time will not be compensated for any hours that exceed the employee's regularly scheduled
hours of work.
39.2. The Local 501 will provide the Director of Human Resources, or designee,with the names of
employees requiring meet and confer release time in advance of the meet and confer process.
Release time will be limited exclusively to the six(6)employees. The release time will be granted
provided that the needs of the District permit the time away from assigned work.
ARTICLE 40.USE OF DISTRICT FACILITIES
40.1. District facilities may be used by the Local 501 with prior notice to the Director of Human Resources,
or designee,for the purpose of holding meetings, to the extent that such use does not interfere with
normal District operations. The Local 501 agrees to pay for the cost of any additional custodial or
security services.
ARTICLE 41I.SCOPE OF BARGAINING
41.1. The District and Local 501 acknowledge that during the negotiations which resulted in this
Agreement, each party had the unlimited right and opportunity to make demands and proposals with
respect to all proper subjects within the scope of representation. Therefore, the District and Local
501,for the term of this Agreement, except as otherwise provided herein, each voluntarily and
unqualifiedly waive the right, and each agrees that the other will not be obligated to bargain
collectively with respect to any subject or matter contained in this Agreement.
ARTICLE 42.IMPASSE PROCEDURES
42.1. If either the District or Local 501 declares that an impasse exists in the meet and confer process,the
party so declaring may initiate the impasse procedure by providing the other party with a written
request for an impasse meeting,together with a statement of its position on all issues. An impasse
Local 501 MOU July 1,2014 to June 30, 2016
Page 26
meeting will be scheduled and held between the parties within fourteen(14)calendar days or as
soon as practicable to:
42.2. Review the position of the parties in a final effort to reach agreement on a memoranda of
understanding, and
42.3. If the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined
herein.
42.4. Impasse procedures are:
42.4.1. Mediation: If the parties mutually agree to submit the dispute to the State Mediation and
Conciliation Service all mediation proceedings will be private and as soon as practicable. The
mediator will make no public recommendation, nor take any public position at any time
concerning the issues.
42.4.2. Fact-Finding: Whether the parties submit the dispute to mediation or not, Local 501 may
request thatthe parties'differences be submitted to a factfinding panel as soon as practicable.
The cost of a fact finder and other mutually incurred costs will be mutually shared by the District
and Local 501.
42.4.3. Board Actions: If the parties fail to resolve the impasse,the dispute will be sent to the District's
Board of Directors for resolution. Each party will submit its written proposal on all issues to the
Board. The Board may take such action to resolve the impasse as it deems appropriate to the
public interest. Any action taken by the Board to resolve the impasse will be final and binding.
ARTICLE 43.SEVERABILITY
43.1. Notwithstanding any other provisions in this Agreement, in the event that any Article, Section or
Subsection of this Agreement will be declared invalid by any court or by any State or Federal law or
regulation, or should a decision by any court or any State or Federal law or regulation diminish the
benefits provided by this Agreement, or impose additional obligations on the District, the District and
Local 501 will meet and confer on the affected Article, Section or Subsection. In such event, all
other Articles, Sections or Subsections of this Agreement not affected will continue in full force and
effect.
ARTICLE ".UNIFORMS
44.1. The District will provide and maintain twelve(12)uniform pants and shirts,which may include the
name of the employee and District's seal, at no cost to appropriate personnel.
44.2. The District will also provide each field employee with one (1)jacket. The District will provide for the
cleaning of the jacket, and will determine when the jacket needs to be replaced.
44.3. District's management may establish specific appearance guidelines. All employees who are issued
uniforms must wear them during the performance of their regular duties. Failure to wear required
clothing,shoes and safely equipment may be cause for disciplinary action.
ARTICLE 45.SUBSTANCE ABUSE POLICY
45.1. The District's Drug and Alcohol Policy will apply to all unit members. The District may adopt or
implement rules, regulations and policies to be in compliance with federal and state laws. In such
cases, notification will be provided to the bargaining unit prior to implementation.
45.2. Department of Transportation (DOT) Regulations
Local 501 MOU July 1,2014 to June 30, 2016
Page 27
45.2.1. Every driver who operates a commercial motor vehicle in interstate or intrastate commerce and
is subject to the commercial driver's license requirements of the Department of Transportation,
Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol
Program. The District will ensure that all alcohol or controlled substances testing conducted
under the Substance Abuse and Alcohol Misuse Plan complies with the procedures setforth in
CFR Part 40.
45.3. District's Substance Abuse Policy:
45.3.1. Any employee may be subject to discipline, up to and including termination, for any alcohol
screen test that indicates an alcohol concentration level of 0.02%or greater.
ARTICLE 46.DUES DEDUCTIONS
46.1. The District will deduct from each regular paycheck and remit to Local 501 the dues, initiation fees
and assessments including Agency Shop associated service fees or religious exemptions, for each
employee who authorizes such deduction in writing. Such authorizations must be filed by the end of
the pay period prior to the period for which the deduction is requested.
46.2. The District will provide the Local 501 a quarterly list of the names of employees for whom it has
made deductions, the names of new employees, and the names of employees who have terminated.
ARTICLE 47.AGENCY SHOP
47.1. Legislative Authority
47.1.1. The parties mutually understand and agree that in accordance with California Government
Code Sections 3500,et.seq.,all full-time Unit employees represented by the International Union
of Operating Engineers, Local 501 (hereinafter"Union") have the right to join or not join the
Union. However, the enactment of a local "Agency Shop' requires that as a condition of
continuing employment,employees must either join the Union or pay to the Union a service fee
in lieu thereof. Such service fee shall be established by the Union, and shall not exceed the
standard initiation fee, periodic dues and general assessments of the Union.
47.2. Union Dues/Service Fees
47.2.1. The Human Resources Department shall provide all current employees and any employees
hired thereafter with an authorization notice advising them that the District has entered into an
Agency Shop agreement with the Union,and that all employees subject to the Agreement must
either join the Union, pay a service fee to the Union,or execute a written declaration claiming a
religious exemption from this requirement.Such notice shall include a forth for the employee's
signature authorizing payroll deduction of Union dues or a service fee, or a charitable
contribution equal to the service fee. Said employees shall have fourteen (14)calendar days
from the date they receive the form to fully execute it and return it to the Human Resources
Department.
47.2.2. If the form is not completed properly and returned within fourteen (14) calendar days, the
District shall commence and continue a payroll deduction of service fees from the regular
biweekly paychecks of such employee. The effective date of Union dues, service fee, or
charitable contribution shall begin no later than the first full pay period after receipt of the
authorization form.
47.2.3. The employee's earnings must be sufficient after the other legal and required deductions are
made to cover the amount of the dues or fees authorized. When an employee is in a non-pay
status for an entire pay period, no withholding will be made to cover the pay period from future
earnings. In the case of an employee in a non-pay status only during part of the pay period,
whose salary is not sufficient to cover the full withholding, no deduction shall be made. In the
case of an employee who is receiving catastrophic leave benefits during a pay period, no
Local 501 MOU July 1,2014 to June 30, 2016
Page 28
deductions shall be made. In this connection,all other legal and required deductions(including
health care and insurance deductions)have priority over Union dues and services fees.
47.3. Reliaious Exemption
47.3.1. Any employee who is a member of a bona fide religion, body,or sect that has historically held
conscientious objections to joining or financially supporting public employee organizations shall
not be required to join or financially support any public employee organization as a condition of
employment. The employee maybe required,in lieu of periodic dues,initiation fees,or Agency
Shop fees,to pay sums equal to the dues, initiation fees,or Agency Shop fees to a nonreligious,
nonlabor charitable fund exempt from taxation under Section 501(c)(3)of the Internal Revenue
Code, chosen by the employee from a list of at least three of these funds, designated in a
memorandum of understanding between the District and the Union, or if the memorandum of
understanding fails to designate the funds, then to any such fund chosen by the employee.
Charitable contributions shall be by regular payroll deductions only in order to qualify as a
condition of continued exemption from the requirement of financial support to the Union.
47.3.2. Declarations of orapplications for religious exemption and any othersupporting documentation
shall be forwarded to the Union within fourteen(14)calendar days of receipt by the District. The
Union shall have fourteen(14)calendar days after receipt of a request for religious exemption to
challenge any exemption granted by the District. If challenged,the deduction to the charity of
the employee's choice shall commence but shall be held in escrow pending resolution of the
challenge.
47.4. Rescission
47.4.1. The Agency Shop provision in this memorandum of understanding may be rescinded by a
majority vote of all the employees in the Unit covered by the memorandum of understanding,
provided that:
47.4.1.1. A request for such a vote is supported by a petition containing the signatures of at
least thirty percent(30%)of the employees in the Unit.
47.4.1.2. The vote is by secret ballot.
47.4.1.3. The vote may be taken at any time during the term of the memorandum of
understanding, but in no event shall there be more than one (1)vote taken during
that tens. Notwithstanding the above,the District and the Union may negotiate,and
by mutual agreement provide for,an alternative procedure or procedures regarding a
vote on an Agency Shop agreement.
47.4.2. If a"rescission vote"is approved by unit members during the term of a current MOU,the Union
agrees not to petition for or seek Agency Shop status for the remainder of the current MOU.
47.5. Records
47.5.1. The Union shall keep an adequate itemized record of its financial transactions and shall make
available annually,to the District,and to the employees who are members of the organization,
within sixty(60)days after the end of its fiscal year,a detailed written financial report thereof in
the form of a balance sheet and an operating statement,certified as to accuracy by its president
and treasurer or corresponding principal officer, or by a certified public accountant. An
employee organization required to file financial reports under the Labor-Management Disclosure
Act of 1959 covering employees governed by this provision,or required to file financial reports
under California Government Code Section 3546.5, may satisfy the financial reporting
requirement of this section by providing the District with a copy of the financial reports.
47.6. Indemnification
47.6.1. The Union shall indemnify, defend and hold the District harmless against any liability arising
from any claims,demands,or other action relating to the District's compliance with the Agency
Shop fee obligation,including claims relating to the Union's use of monies collected under these
Local 501 MOU July 1,2014 to June 30, 2016
Page 29
provisions. The District reserves the right to select and direct legal counsel in the case of any
challenge to the District's compliance with the Agency Shop fee obligation, and the Union
agrees to pay any attorney, arbitrator or court fees related thereto.
ARTICLE 48.PEACEFUL RESOLUTION OF DISPUTES
48.1. During the term of this Memorandum, or any subsequent period when impasse resolution
procedures are in progress or recommendations resulting from such procedures are being
considered by the parties, the District agrees it shall not lockout employees in this Unit,and Local
501 agrees that it shall neither advocate, encourage or participate in any strike, including sympathy
strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full,
faithful and proper performance of their duties of employment.
ARTICLE 49.SHIFT CHANGES
49.1. The shift change provision is intended to provide an opportunity for employees to bid for open
positions based on their job knowledge, experience and seniority. An open position is considered an
unencumbered position, or vacancy, resulting from a transfer, promotion, separation, or retirement.
Shift changes will be handled on the basis of seniority except when the District can demonstrate a
business necessity.
49.2. Relief Operator
49.2.1. When Plant Operators,Senior Plant Operators or Power Plant Operator series are assigned to
Relief Operator positions, they will be entitled to$1.75 per hour premium.
49.2.2. Except in emergencies, an employee will be notified of a change in his/her work schedule at
least forty-eight(48) hours in advance of such change, preferably seven (7)calendar days in
advance of such change. In the event that notice is under forty-eight(48)hours,management
will first try to fill vacancy from the overtime list. Failure to fill from the overtime list will result in
payment equivalent to call back pay in addition to any pay received from the shift worked for the
Relief Operator.
49.2.3. It will be the intent of Management that relief employees will receive two(2)consecutive days
off and will only be subject to split days off when schedule changes occur.
49.2.4. The District and Local 501 agree to reopen this Agreement following ratification to discuss
Article 49.2 Relief Operator.
49.2.4.1. The parties acknowledge that this reopener does not obligate the District or Local
501 to change and/or modify any provisions of the MOU during the term of this MOU.
Any changes/modifications to the MOU as a consequence of this reopener must be
by mutual agreement. The failure to reach mutual agreement is not subject to the
MOU grievance process; unfair labor practice proceedings before the Public
Employment Relations Board; and/or proceedings in the Superior Court.
49.3. Shift change-bidding procedure
49.3.1. The District will mail (e-mail is acceptable) a Shift Change Request Form to employees in
appropriate classifications every six(6)months. Any employee who wishes to be assigned to
different shift, and who is qualified for that shift, may indicate his/her preference for
reassignment on the Shift Change Request Form. The Shift Change Request Form must be
returned within thirty (30) days for an employee to be placed on a shift bid list. The list of
requests will be used for a period of six(6)months to fill vacant positions. A new employee or a
promoted employee may request through the Human Resources Department to be added to the
current list within two(2)weeks of his/her start date(new employee)or of being notified of the
promotion.
49.3.2. When the District intends to fill an open position, the following steps will be followed:
Local 501 MOU July 1,2014 to June 30, 2016
Page 30
49.3.2.1. The District will notify the most senior employee on the Shift Change Request list of
the availability of the open position.
49.3.2.2. Within two(2)business days of the shift change offer,the employee must notify the
District in writing (e-mail is acceptable) of his/her decision to accept or reject the
position.
49.3.2.3. If the most senior employee rejects the position, the position will be offered to the
next most senior employee on the list.
49.3.2.4. The process will be repeated until the position is filled or the list is exhausted.
49.3.3. If an employee declines a shift change offer, or does not notify the Human Resources
Department within the two(2)business days, his/her name will remain on the list unless they
request in writing to have it removed. An employee who accepts a shift change offer will be
notified of the effective date of the shift change within seven (7) business days.
49.4. Requests for urgency transfer
49.4.1. On occasion,an employee maywish to initiate a transfer to a different shift or plant in response
to a personal situation beyond his/her immediate control. Management will make a reasonable
effort to accommodate such requests, considering the operational needs of the District, in
accordance with the following guidelines:
49.4.2. The requirement to work any shift is considered an essential job function. An employee who
requests a transfer due to health reasons that are supported by competent medical findings will
be considered disabled and an effort will be made to explore reasonable accommodations. If
such accommodations cannot be made, or if the accommodation would result in an undue
business hardship on the District,the employee will have the option of remaining in the position
unless his/her presence would pose a threat to the safety and welfare of others.
49.4.3. Transfer requests for non-medically related reasons will be considered only when the health or
well being of the employee or a member of his/her immediate family is involved. In such events,
the transfer would normally be of a temporary nature and limited to the duration of the
emergency.
49.4.4. Employees who wish to submit a Request for Transfer must do so in writing to their supervisor.
The request should contain sufficient information to allow full consideration of the nature of the
emergency or medical condition, and include medical documentation.
ARTICLE 50.WORKPLACE VIOLENCE AND WEAPONS POLICY
50.1. The District's Workplace Violence and Weapons Policy will apply to all unit members.
ARTICLE 51.RESIGNATION
51.1. Voluntary written termination of employment with the District is irrevocable after seventy-two (72)
hours from the receipt of the resignation except by approval of the Director of Human Resources,or
designee.
ARTICLE 52. OPERATOR CERTIFICATION
52.1. All employees assigned to the Lead Plant Operator, Senior Plant Operator, Plant Operator or
Operator-in-Training classifications will comply with the certification requirements of Chapter 4, Title
23, Subchapter 14 of the California Administrative Code. Failure to maintain a valid certificate will be
grounds for dismissal. This provision will not be subject to the Grievance Procedure.
Local 501 MOU July 1,2014 to June 30, 2016
Page 31
52.2. The District will notify the Office of Operator Certification in writing within thirty(30)days of a final
disciplinary action resulting in suspension, demotion or discharge of a certified operator if the
discipline is the result of commission of any of the acts defined as grounds for discipline within the
Operator Certification Regulations.
52.3. As a condition of employment, newly hired Operator-in-Training employees who do not possess a
Certificate of Competence will apply for an Operator-in-Training Certificate and pay any applicable fee
to the State Water Resources Control Board and submit proof of such application to the Human
Resources Department within ten (10)business days of employment. Operators-in-Training who do
not receive their Grade I Certificate within three (3)years from their date of hire will be released from
District's employment. The District agrees to continue its current policy of reimbursing Operations and
Maintenance employees for required certifications.
Local 501 MOU July 1,2014 to June 30, 2016
Page 32
SIGNATURE PAGE
2014-2016
MEMORANDUM OF UNDERSTANDING
BETWEEN THE
ORANGE COUNTY SANITATION DISTRICT
AND THE
INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL 501
FOR THE
OPERATIONS AND MAINTENANCE GROUP
Executed
LOCAL 501 ORANGE COUNTY SANITATION DISTRICT
Jw 46�
Edward J. Curly, Business Manager Steve Filarsl ,Chief Ng o0ator
Thomas O'Mahar, President James Herberg, General Manager
Blair Brim, B siness Representative Robert P. Ghirelli, Assistant General Manager
Gavin Koon, Business Representative Richard Spencer, Human Resources Manager
Eddie Baker, Lead Plant Operator Andrew Nau, Principal Human Resources
Analyst
Jason Biedennann, Mobile Crane Operator Stephanie Good, Human Resources Analyst
Luis Gasca, Electrical Tech II
Thomas Handy, Senior Plant Operator
John Mirkovich, Senior Mechanic
Gary Tuiasosopo-Kemper, Lead Plant
Operator
Roy Handy, Senior Mechanic
Local 501 MOU July 1,2014 to June 30,2016
Page 33
EXHIBIT A
LOCAL 501 - OPERATIONS AND MAINTENANCE UNIT
Effective Effective
pay11Jul-14 10Jul-Jul
MI Classification GN MAX MIN MAX
Automotive/Heavy Equipmt Assistant L0053 $23.49 $28.56 $23.96 $29.13
Automotive/Heavy Equipmt Technician LOC67 $33.19 !IZ 35 $33.85 $41.16
Control Center Technician L0058 $26.57 $32.30 $27.10 $32.95
Electrical Technician I LOC65 $31.60 $38.40 $32.23 $39.17
Electrical Technician II LOC71 $36.63 $44.52 $37.36 $45.41
Facilities Worker/Builder LOC62 $29.35 $35.67 $29.94 $36.38
Facilities Worker/Painter LOC62 $29.35 $35.67 $29.94 $36.38
Instrumentation Technician I LOC65 $31.60 $38.40 $32.23 $39.17
Instrumentation Technician II LOC71 $36.63 $44.52 $37.36 $45.41
Lead Electrical Technician LOC75 $40.45 $49.16 $41.26 $50.14
Lead Facilities Worker LOC66 $32.40 $39.37 $33.05 $40.16
Lead Instrumentation Technician LOC75 $40.45 $49.16 $41.26 $50.14
Lead Mechanic LOC71 $36.63 $44.52 $37.36 $45.41
Lead Plant Operator LOC75 $40.45 $49.16 $41.26 $50.14
Lead Power Plant Operator LOC75 $40.45 $49.16 $41.26 $50.14
Lead Welder/Fabricator LOC71 $36.63 $44.52 $37.36 $45.41
Machinist LOC68 $34.01 $41.34 $34.69 $42.17
Maintenance Worker LOC60 $27.94 $33.96 $28.50 $34.64
Mechanic LOC61 $28.62 $34.78 $29.19 $35.48
Mobile Crane Operator LOC67 $33.19 $40.35 $33.85 $41.16
Operator-In-Training L0058 $26.57 $32.30 $27.10 $32.95
Plant Operator LOC66 $32.40 $39.37 $33.05 $40.16
Power Plant Operator I LOC66 $32.40 $39.37 $33.05 $40.16
Power Plant Operator II LOC71 $36.63 $44.52 $37.36 $45.41
Reliability Maintenance Technician LOC75 $40.45 $49.16 $41.26 $50.14
Senior Mechanic LOC67 $33.19 $40.35 $33.85 $41.16
Senior Plant Operator LOC71 $36.63 $44.52 $37.36 $45.41
Welder/Fabricator LOC67 $33.19 $40.35 $33.85 $41.16
Local 501 MOU July 1,2014 to June 30, 2016
Page 34
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
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
Glossary of Terms and Abbreviations
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.
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.
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.
Glossary of Terms and Abbreviations
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 DrT 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.
NDMA— 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.
Glossary of Terms and Abbreviations
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.