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 Any items withdrawn from the Consent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.