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HomeMy WebLinkAbout05-25-2016 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, May 25, 2016 Regular Meeting of the 5:00 P.M. STEERING COMMITTEE A Administration Building Conference Rooms A&B 10844 Ellis Avenue Fountain Valley, CA 92708 (714)593-7433 AGENDA CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form (located at the table at the back of the room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the regular meeting of the Steering Committee held on April 27, 2016. NON-CONSENT CALENDAR: None. INFORMATION ITEMS: 2. PROPOSED ENERGY STRATEGY (Bob Ghirelli) O5/25/2016 Sleenag Committee Agenda Page 1 of 3 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 orpotential litigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property, (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Name of Case: Caravetta v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2016-008326:31-CU-OR-CJC RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, June 22, 2016 at 5:00 P.M. 05/25/2016 Sleenag Committee Agmda Page 2 of 3 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714)593-7433 klore(a.ocsd.cem For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherberp/glocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(docsd.com Director of Engineering Rob Thompson (714)593-7310 rthompson6biocsd.com Director of Environmental Services Jim Colston (714)593-7450 icolston(rPocsd.com. Director of Finance and Lorenzo Tyner (714)593-7550 Itvnerrglocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandleriBoosd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com O5/25/2016 Steering Committee Agenda Page 3 of 3 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, April 27, 2016 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Nielsen on Wednesday, April 27, 2016 at 5:04 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Chair Jim Herberg, General Manager Greg Sebourn, Vice-Chair Bob Ghirelli, Assistant General Manager Keith Curry, Administration Committee Celia Chandler, Director of Human Chair Resources John Withers, Operations Committee Rob Thompson, Director of Engineering Chair Mark Esquer, Engineering Manager Tom Beamish, Member-At-Large Lorenzo Tyner, Director of Finance & Lucille Kring, Member-At-Large Administrative Services David Shawver, Member-At-Large Kelly A. Lore, Clerk of the Board Jennifer Cabral COMMITTEE MEMBERS ABSENT: Michael Dorman None Norbert Gaia Al Garcia Mark Manzo OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten (Alternate Director, YLWD) Laura Kalty, Liebert Cassidy Whitmore Patrick Shields, RIND PUBLIC COMMENTS: No public comments were provided. REPORTS: Chair Nielsen stated that on January 27th, our Board approved a joint resolution with OCWD to support the Metropolitan Water District of Southern California's effort to develop a Groundwater Replenishment System type project with Los Angeles County Sanitation District, and asked the Directors to sign a large version of that Resolution which will be displayed at the various agencies. 04/27/2016 Steenng Committee Minutes Page 1 of 3 General Manager Jim Herberg highlighted items from his monthly report including: Newhope Placentia Trunk project update; ocean monitoring data results; overview of the effluent feasibility study with OCWD; GFOA Certificate of Excellence in financial reporting; Moody's Aaa Bond rating of OCSD; and an upcoming Leadership Development Training for Supervisors and Managers. Mr. Herberg introduced Director of Finance and Administrative Services, Lorenzo Tyner who informed the Committee of a recent discrepancy in regards to the $200 million payment OCSD made to OCERS for unfunded liability, and whether or not IRWD is contractually obligated to pay 3% of the payment. He stated that auditors and staff for both agencies are reviewing the contract and an update will be provided when concluded. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the March 23, 2016 Regular Steering Committee Meeting. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: None NON-CONSENT CALENDAR: Assistant General Manager Bob Ghirelli provided a brief overview of the item presented. 2. SELECTION OF HONOR WALK RECIPIENTS (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve nominated retired employees, Blake Anderson and Mary Sue Thompson, as Honor Walk brick recipients for the year 2016; and B. Approve former Board Chair, Troy Edgar as Honor Walk brick recipient for the year 2016. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: None 0 412 7/2 01 6 Steering Committee Minutes Page 2 of 3 INFORMATION ITEMS: None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54957.6 The Committee convened in closed session at 5:15 p.m. to discuss one item. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Section and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:55 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. ADJOURNMENT: The Chair declared the meeting adjourned at 5:56 p.m. to the next Steering Committee meeting to be held on Wednesday, May 25, 2016 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 04/27/2016 Steering Commitlee Minutes Page 3 d 3 STEERING COMMITTEE Meeting Dare To ad.ofDir. 05/25/16 — AGENDA REPORT Item Number Iem Number z - Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: PROPOSED ENERGY STRATEGY GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND Orange County Sanitation District (Sanitation District) uses an anaerobic digestion process to convert solid organic material to methane and carbon dioxide gas. The methane, also known as biogas, is used on-site as a fuel to fire boilers and internal combustion engines that run generators to produce heat and electricity. The biogas provides about two-thirds of the Sanitation District's electrical demand in the treatment plants. The remaining third is purchased from our electric utility, Southern California Edison. California energy policy requires electric utilities to meet energy supply first with renewable energy resources and last with clean conventional fossil-fueled generation. California's renewable energy portfolio standard requires all electric utilities to get one- third of their energy from renewable sources like biogas, solar, and wind by the year 2020. Biogas is now viewed as a valuable resource in helping to achieve the State's energy needs from renewable sources. Vendors are approaching the Sanitation District with proposals to purchase the biogas produced at our treatment plants to power fuel cells that produce electricity, heat, and hydrogen. The hydrogen can be dispensed at fueling stations and used to power fuel cell vehicles, an integral part of California's "hydrogen highway"transportation initiative. RELEVANT STANDARDS • Consider life-cycle costs in all decisions • Use all practical and effective means for recovering energy • Use 100% of digester gas to generate power PROBLEM Orange County Sanitation District and other sanitation agencies that produce biogas are viewed by many in the renewable energy industry as important players in helping Page 1 of 2 California achieve its renewable energy goals. There could be environmental and societal benefits to the State if the Sanitation District were to make its biogas available to external users, but this could come at an additional cost if the Sanitation District is required to purchase more expensive electricity off the grid to replace all or part of its biogas supply sold to outside vendors. Recent vendor proposals would require the Sanitation District to subsidize the "biogas for hydrogen' purchase by up to $1 million annually. PROPOSED SOLUTION Staff intends to pursue a strategy that would hold off entertaining outside proposals for use of our biogas until such time as the Sanitation District achieves energy independence through the on-site production of energy to meet 100% of our electrical demand. After achieving that goal, the Sanitation District would be in a position to make excess renewable energy available to external users. In the meantime, staff will look for ways to maximize on-site energy production (e.g., acceptance of food waste and FOG) and explore innovative technologies to convert solids to energy (e.g., AquaCritox®). TIMING CONCERNS Adopting an energy strategy at this time will provide staff with policy direction on how to deal with requests from vendors seeking to utilize our biogas. It will make clear our intent to pursue energy independence first before making excess renewable energy available to external users. RAMIFICATIONS OF NOT TAKING ACTION Without a clear strategy, vendors are unsure of the Sanitation District's intentions with respect to the availability of its biogas as it may take years to achieve energy independence. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Energy Independence Page 2 of 2 energy independence Should Orange County Sanitation District strive for energy independence? Why is this issue important to Orange County Sanitation District? California energy policy requires electric utilities to meet energy supply first with renewable energy resources and last with clean conventional fossil-fueled generation. California's renewable portfolio standard requires all electric utilities and service providers to get 33% of their energy from renewable sources like biogas, solar and wind by 2020. Many resource recovery agencies are developing renewable energy projects to increase reliability, improve efficiency and support the climate change solution. Efforts include expanding digester gas production by adding FOG or food waste, developing biosolids-to-energy facilities, installing solar panels and wind energy generation, and sequestering carbon (and avoiding fossil fuel-based inorganic fertilizer) through the land application of biosolids. Biogas, the end product of the anaerobic digestion process, is now viewed as a valuable resource in helping to achieve the state's energy needs from renewable sources. For example, vendors are approaching OCSD with proposals to purchase our biogas to power fuel cells that produce electricity, heat and hydrogen. The hydrogen can be dispensed at fueling stations and used to power fuel cell vehicles—an integral part of California's"hydrogen highway"transportation initiative. Background At OCSD, organic solids are collected and concentrated in the treatment processes and converted biologically to biogas composed of 65% methane and 34%carbon dioxide and other trace constituents. OCSD has been using this technology since the 1950's. The biogas is cleaned and used as a fuel to fire boilers and internal combustion engines that run generators to produce heat and electricity. These systems produce roughly 65% of OCSD's electrical demand in the treatment plants. OCSD seeks to be energy independent by self-generating all the electrical and thermal energy necessary to sustain our operations. This goal will be accomplished by minimizing our overall energy usage and maximizing the energy produced in our wastewater processes by converting organic solids to energy. When OCSD achieves energy independence and is able to self-produce 100%of our electrical demand,we will make renewable"green"energy available to external users by selling our biogas,exporting power to the grid,or creating transportation fuels(e.g., hydrogen). Goals • Continue to design energy efficiency into every project. • Search for new research opportunities to improve the conversion of organic solids to energy. • Self-produce 100%of OCSD's electrical demand. Desired Outcomes • Reaffirm OCSD's commitment to energy independence through the on-site production of energy to meet 100%of our electrical demand. • Make excess renewable energy available to external users once energy independence is achieved. ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Glossary of Terms and Abbreviations Certificate of Participation (COP) -A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) - Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) - the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Greenhouse gases - In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System - A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)-Goals to support environmental and public expectations for performance. NOMA- N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) - An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume-A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)- Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line - A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer - Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) - Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment - Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge - Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)-The amount of solids floating and in suspension in wastewater. Glossary of Terms and Abbreviations Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.