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HomeMy WebLinkAbout06-07-2017 Operations Committee Agenda Packet Orange County Sanitation District Wednesday, June 7, 2017 Regular Meeting of the a 5:00 P.M. OPERATIONS COMMITTEE Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER PLEDGE OF ALLEGIANCE 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 outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item numberon 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 Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: The Consent Calendar Items are considered 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1.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 May 3, 2017 Operations Committee Meeting. 2. SEISMIC HAZARD EVALUATION AT PLANT NOS. 1 AND 2, PROJECT NO. PS15-06 (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a Professional Services Agreement with Geosyntec Consultants to provide engineering services for the Seismic Hazard Evaluation at Plant Nos. 1 and 2, Project No. PS15-06, for an amount not to exceed $2,578,028; and 06/07/2017 Operations Committee Agenda Page 1 of 4 B. Approve a contingency of$257,800 (10%). 3. CENTRAL GENERATION ENGINES AUTOMATIC BALANCING ANALYZERS (Ed Torres) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve a sole source purchase order to Windrock, Inc. for the purchase and installation of two Windrock Auto Balance analyzers, plus associated equipment, on two central generation engines, one at each plant, for a total amount not to exceed $501,376; and B. Approve a contingency of$50,137 (10%). 4. CENTRAL GENERATION FACILITIES OIL CENTRIFUGE HEATER AND CONTROLS REPLACEMENT (Ed Torres) RECOMMENDATION: A. Approve a Sole Source Purchase Order to replace and install four new Alfa Laval Central Generation Centrifuge Heaters and Controls at Plant Nos. 1 and 2 Central Generation facilities, for a total amount not to exceed $111,082; and B. Approve a contingency of$16,662 (15%). 5. BIOSOLIDS MANAGEMENT CONTRACT RENEWAL — TULE RANCH (Jim Colston) RECOMMENDATION: Recommend to the Board of Directors to: A. Authorize the five-year contract renewal with Tule Ranch, Amendment No. 2, to manage Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and Treatment Plant No. 2 for land application and/or landfill disposal (Specification No. S-2011-513BD), for the period commencing November 1, 2017 through October 31, 2022, for a unit price increase of $2.50, for a new unit price of$57 per ton, for a total estimated annual amount not to exceed $9,000,000; and B. Approve an aggregate annual unit price contingency of 5%. 06/07/2017 Operations Committee Agenda Page 2 of 4 NON-CONSENT CALENDAR: 6. 2017 AUDIT REPORT OF ORANGE COUNTY SANITATION DISTRICT SEWER SYSTEM MANAGEMENT PLAN (Jim Colston) RECOMMENDATION: Recommend to the Board of Directors to: Receive and file the Final WDR/SSMP Audit Report dated May 19, 2017. 7. SEWER SYSTEM MANAGEMENT PLAN UPDATE (Jim Colston) RECOMMENDATION: Recommend to the Board of Directors to: Approve and file the Orange County Sanitation District's Sewer System Management Plan, dated May 9, 2017. INFORMATION ITEMS: 8. LABORATORY, MONITORING, AND COMPLIANCE DIVISION UPDATE (Jim Colston) 9. 2017-18 BUDGET UPDATE PRESENTATION (Lorenzo Tyner) DEPARTMENT HEAD REPORTS: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Operations Committee meeting is scheduled for Wednesday, July 5, 2017 at 5:00 p.m. 06/07/2017 Operations Committee Agenda Page 3 of 4 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. Aaenda Posting: In accordance with the requirements of California Govemment 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,Cal'domis,not less than 72 hours prior to the meeting date and Ume 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 majonty 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 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 klomaocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbera(cpoosd.com Assistant General Manager Bob Ghirelli (714)593-7400 rahirellifalocsd.com Director of Engineering Rob Thompson (714)593-7310 rlhompson(ftesd.com Director of Environmental Services Jim Colston (714)593-7450 icolstonaocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 06/07/2017 Operations Committee Agenda Page 4 of 4 ITEM NO. 1 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, May 3, 2017, 5:00 p.m. A regular meeting of the Operations Committee was called to order by Committee Chair Withers on Wednesday, May 3, 2017 at 5:04 p.m. in the Administration Building. Director Collacott led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Bob Ghirelli, Assistant General Manager Ellery Deaton, Vice-Chair Celia Chandler, Director of Human Resources Denise Barnes Rob Thompson, Director of Engineering Allan Bernstein Ed Torres, Director of Operations and Maintenance Michael Blazey (Alternate) Kelly Lore, Clerk of the Board Robert Collacott Ron Coss Brooke Jones (Alternate) Mark Esquer Steve Jones Dean Fisher Fred Smith Alfredo Garcia Mariellen Yarc Larry Johnson Rebecca Long COMMITTEE MEMBERS ABSENT: Mark Manzo Richard Murphy Kathy Millea Greg Seboum, Board Chair Jeff Mohr David Shawver, Board Vice-Chair Man Nguyen Michelle Steel Mike White Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten, Alternate Director CMSD Patrick Sheilds, IRWD PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. 05/03/2017 Opeations Committee Minutes Page 1 of 7 REPORT OF GENERAL MANAGER: Assistant General Manager Bob Ghirelli announced the upcoming Honor Walk Ceremony to be held on May 24 at 4:00 p.m. Mr. Ghirelli reported that Board Chair Sebourn is absent tonight as he and General Manager Herberg are in Washington D.C. meeting with legislators. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, and DULY CARRIED TO: Approve Minutes of the April 5, 2017 Operations Committee Meeting. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 2. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 (Rob Thompson) MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with AECOM Technical Services, Inc. to provide engineering design services for the Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for an amount not to exceed $523,039; and B. Approve a contingency of$52,304 (10%). AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 3. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117 (Rob Thompson) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Construction Services Agreement with Brown and Caldwell to provide construction support services for Interplant Effluent 05/03/2017 Operations Committee Minutes Page 2 of 7 Pipeline Rehabilitation, Contract No. J-117A, for a total amount not to exceed $1,121,666; and B. Approve a contingency of$112,167 (10%). AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 4. PROJECT MANAGEMENT INFORMATION SYSTEM, PROJECT NO. J-128 (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Services Agreement with PMWeb, Inc. for the procurement and implementation of the Project Management Information System, Project No. J-128, Specification No. S-2016-733BD, for an amount not to exceed of$1,022,500; and B. Approve a contingency in the amount of$204,500 (20%). AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 5. LIGHT DUTY CNG TRUCK COOPERATIVE PROCUREMENT WITH NATIONAL AUTO FLEET GROUP (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Approve the purchase of nine compressed natural gas light duty trucks using the National Joint Powers Alliance (NJPA) cooperative Contract Number 120716-NAF with National Auto Fleet Group for a total cost of $381,813 in accordance with Ordinance No. OCSD-47, Section 2.03(B), Cooperative Purchases. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 05/03/2017 Operations Committee Minutes Page 3 of 6. REGIONAL ODOR AND CORROSION CONTROL SERVICES CONTRACT AMENDMENT 1 AND 2, SPECIFICATION NO. C-2013-565 BD (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve Amendment No. 1 to the Contract with Hill Brothers Chemical Company, for Regional Odor and Corrosion Control Services, Specification No. C-2013-565BD (PO 104862-OB), to amend the Application Services cost to a unit price of$25/station/day and Field Services cost to a unit price of$25/station/day, for ferrous chloride; B. Approve Amendment No. 1 to the Contract with Hill Brothers Chemical Company, for Regional Odor and Corrosion Control Services, Specification No. C-2013-565BD (PO 104861-OB), to amend the Application Services cost to a unit price of$75/station/day and Field Services cost to a unit price of$50/station/day, for magnesium hydroxide; and C. Approve Amendment No. 2 to the Contract with USP Technologies, for Regional Odor and Corrosion Control Services, Specification No. C-2013- 565BD (PO 104863-OB), to amend the Application Services cost to a unit price of$80/station/day, for calcium nitrate. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 7. INDUCTIVELY COUPLED PLASMA MASS SPECTROMETER AND INDUCTIVELY COUPLED PLASMA OPTICAL EMISSION SPECTROMETER LABORATORY INSTRUMENTS (Jim Colston) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Award a purchase order to Perkin Elmer Health Services, Inc., for an Inductively Coupled Plasma Mass Spectrometer (ICPMS) and an Inductively Coupled Plasma Optical Emission Spectrometer (ICP-OES), Specification No. E- 2017-812BD, for a total amount not to exceed $275,610.64. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 8. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT AMENDMENT 2016-2017 (Jim Colston) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Approve Contract Amendment number 4600001879-002 with Inland 05/03/2017 Operations Committee Minutes Page 4 of 7 Empire Regional Composting Authority (IERCA)for the Orange County Sanitation District to pay IERCA to receive and compost Orange County Sanitation District's biosolids at a base fee (tipping fee) of$56 per wet ton, plus an administrative fee of$2 per wet ton and any other adjustments provided for in the original agreement. This contract amendment shall serve as the second annual renewal of three one- year renewal options of the original agreement in a total annual amount not to exceed $900,000/year for IERCA to receive and compost up to 50 wet tons per day (Monday thru Friday) of Orange County Sanitation District's biosolids. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 9. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2017. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 10. ENVIRONMENTAL COMPLIANCE REPORTS (Jim Colston) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file environmental compliance reports: Biosolids Management Compliance Report 2016, Semi-Annual Pretreatment Program Report Fiscal Year 2016/2017July-December,Annual Greenhouse Gas Emissions Report 2016, Annual Emission Report 2016, and Marine Monitoring Annual Report 2015/2016. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel 05/03/2017 Operations Committee Minutes Page 5 of 7 11. QUARTERLY ODOR COMPLAINT REPORT (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Receive and file the Fiscal Year 2016/17 Third Quarter Odor Complaint Summary. AYES: Barnes, Bernstein, Blazey (Alternate), Collacott, Deaton, B. Jones (Alternate), S. Jones, F. Smith, Yarc, and Withers NOES: None ABSTENTIONS: None ABSENT: R. Murphy, Sebourn, Shawver, and Steel NON-CONSENT CALENDAR: None. Director S. Jones arrived at 5:10 p.m. INFORMATION ITEMS: 12. CAPITAL IMPROVEMENT PROGRAM UPDATE FOR FY 2017-18 (Rob Thompson) Director of Engineering Rob Thompson introduced Engineering Manager Kathy Millea who provided an informative PowerPoint presentation which included: FY 2016-17 CIP performance; Annual budget update process and10-year budget overview; Asset Management Program; Project Validation; Budget increases and decreases; and newly created projects, as well as project closures and cancellations. 13. INFORMATIONAL PRESENTATION ON THE FY 2017-18 BUDGET UPDATE (Lorenzo Tyner) Controller Mike White provided an informative PowerPoint presentation which provided an overview of the District's Revenues, Fees and Charges, Reserve Policy Summary, Operating Expenses, and an overall summary of the proposed budget. DEPARTMENT HEAD REPORTS: Director of Operations and Maintenance Ed Torres reported that through regular monitoring, staff has detected organic gases at the Rocky Point Pump Station in Newport Beach. Mr. Torres stated that staff is uncertain of the cause and while investigation is underway, all precautions are being taken including the activation of the Emergency Operations Center. The staff at the City of Newport Beach has been notified, along with all residents and businesses in the affected area, and OCSD Director Scott Peotter. 05/03/2017 Operations Committee Minutes Page 6 of 7 Mr. Thompson stated that, due to tight scheduling, staff would like to move directly to the Board of Directors meeting in June for the approval of Project No. P2-122 - Modification of the Headworks. There was no objection. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT Committee Chair Withers declared the meeting adjourned at 5:42 p.m. to the next scheduled meeting of Wednesday, June 7, 2017 at 5:00 p.m. Submitted by, Kelly A. Lore, CIVIC Clerk of the Board 05/03/2017 Operations Committee Minutes Page 7 of OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 06/07/17 O6/28/17 AGENDA REPORT ItemNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: SEISMIC HAZARD EVALUATION AT PLANT NOS. 1 AND 2, PROJECT NO. PS15-06 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Services Agreement with Geosyntec Consultants to provide engineering services for the Seismic Hazard Evaluation at Plant Nos. 1 and 2, Project No. PS15-06, for an amount not to exceed $2,578,028; and B. Approve a contingency of$257,800 (10%). BACKGROUND This project will perform a planning-level study for the seismic evaluation of structures at Plant Nos. 1 and 2 to assess the vulnerability of the critical structures to damage or failure due to shaking and liquefaction following an earthquake. This study will develop a program to be implemented in conjunction with the 2017 Facilities Master Plan to identify geotechnical and/or seismic retrofits that will improve the resiliency and continued operation of critical facilities within the treatment plants. RELEVANT STANDARDS • Maintain a proactive asset management program • 24/7/365 treatment plant reliability • Protection of Orange County Sanitation District assets PROBLEM Most of the Orange County Sanitation District's (Sanitation District) process structures at Plant Nos. 1 and 2 were designed and built using codes prior to the 1997 Uniform Building Code and 2001 California Building Code. For this reason, the Sanitation District would like to better understand its risks and the Plants' resiliency after a significant earthquake. The study will focus on the following areas: Recent building codes incorporate better performance criteria for structures that are impacted by significant faults, such as the Newport-Inglewood Fault, which is directly below Plant No. 2 Page 1 of 5 • The influence that major seismic events will have on subsurface conditions were not accounted for in previous codes • Failure of our process facilities during a major seismic event can have a detrimental impact on public health and safety, as well as the impact to employees within the Sanitation District facilities Previous planning studies have been performed on some individual process areas to support specific project needs or known vulnerabilities; however, a holistic approach was not previously developed to address seismic issues plant-wide. PROPOSED SOLUTION A scope of work was developed for this project that includes quantification of the vulnerability of the process facilities to damages or failures following an earthquake and identification of retrofits necessary to improve the reliability and continued operation of these facilities. A multi-tiered evaluation of these facilities will be conducted using industry-recognized standards including ASCE 41-13 and ACI 350-06. The project also includes the performance of field engineering tasks supporting this evaluation, such as cone penetration testing, geotechnical borings, field investigation, and non-destructive testing. TIMING CONCERNS The General Manager's Work Plan for Fiscal Year 2016-17 includes completion of a seismic study of the Sanitation District Plant Facilities to provide seismic risk-based prioritization to support the 2017 Facilities Master Plan. Conducting this study now will provide guidance for future Capital Improvement Program (CIP) projects that are identified as part of the 2017 Facilities Master Plan. RAMIFICATIONS OF NOT TAKING ACTION Not performing a seismic evaluation and providing recommendations for retrofit increases the risk of structural failure due to seismic structural and geotechnical deficiencies, resulting in the potential for critical processes to be compromised. These processes are critical to protecting public health by providing treatment of wastewater within the Sanitation District's service area. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection: The Sanitation District advertised a Request for Proposal (RFP) for Seismic Hazard Evaluation for Plant Nos. 1 and 2, Project No. PS15-06, on January 17, 2017. Page 2 of 5 The following evaluation criterion were described in the RFP and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 40% Related Project Experience 30% Project Team and Staff Qualifications 30% Seven proposals were received on February 27, 2017 and evaluated in accordance with the evaluation process set forth in Sanitation District Board of Directors' Purchasing Ordinance No. OCSD-47 (Purchasing Ordinance), by a pre-selected Evaluation Team consisting of the following Sanitation District staff. Eros Yong Engineering Supervisor- Planning Martin Dix Engineering Supervisor- Civil and Mechanical Engineering Umesh Murthy Engineering Supervisor- Operations Tom Grant CIP Project Manager- Project Management Office Don Cutler CIP Project Manager- Project Management Office The Evaluation Team also included one non-voting representative from the Contracts Administration Division and one non-voting technical advisor from Planning. Following scoring by the Evaluation Team,five Consultants were shortlisted for interviews on March 20, 2017. Following the interviews, each member of the Evaluation Team ranked the Consultants based on both the proposals and interviews using the evaluation criterion and weighting described above. Based on the ranking shown below, Geosyntec Consultants, Inc. was selected as the most qualified Consultant. PROPOSAL EVALUATION Geosyntec Consultant Evaluator Consultants, AECOM CDM Smith Kleinfelder MWH Inc. Reviewer A 1 2 3 4 5 Reviewer B 2 4 1 3 5 Reviewer C 2 1 3 4 5 Reviewer D 1 2 2 5 4 Reviewer E 3 2 1 5 4 Overall Ranking 1 3 2 4 5 The team from Geosyntec Consultants, Inc. demonstrated where they have worked with other municipalities to guide them through the process of performing a similar seismic evaluation, providing guidance on how to prioritize the recommended remedial work. Page 3 of 5 Furthermore, they developed a unique plan for ranking the importance of prospective seismic retrofit projects that will complement the 2017 Facilities Master Plan, a critical element of the project. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with the Purchasing Ordinance, the fee proposal of only the highest-ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with Geosyntec Consultants, Inc. to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. Since this is the first time that Geosyntec Consultants, Inc. has worked with the Sanitation District, the first meeting provided a detailed explanation of the negotiation process and identified information that will be needed. Five additional meetings and three conference calls were conducted to reach final consensus on the project scope and fees. Original Fee Negotiated Fee Proposal Total Hours 13,417 12,749 Total Fee $2,675,055 $2,578,028 The Consultant's fringe and overhead costs, which factor into the billing rate, have been substantiated. The contract profit for the prime consultant is 8.61%, which is based on an established formula based on the Sanitation District's standard design agreements. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Services Agreement to Geosyntec Consultants, Inc. CEQA Notice of Exemption was filed on December 21, 2015. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. Budget for the project, PS15-06, Seismic Hazard Evaluation at Plant Nos. 1 and 2, is included in the Master Planning Studies budget for Fiscal Years 2016-17 and 2017-18. (Line item: Section 8, Page 78). Date of Aooroval Contract Amount Contingency 06/28/17 $2,578,028 $257,800 Page 4 of 5 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Professional Services Agreement DC:EY:sa:gc Page 5 of 5 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 28' day of June, 2017, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and GEOSYNTEC CONSULTANTS, INC., for purposes of this AGREEMENT hereinafter referred to as "CONSULTANT'. The SANITATION DISTRICT and CONSULTANT are referred to herein collectively as the "Parties"or individually as a "Party." WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a consultant for Seismic Evaluation of Structures at Plant Nos. 1 and 2, Project No. PS15-06, to provide professional services for the completion of a study to quantify the vulnerability of some critical structures to damage or failure following an earthquake by development of a seismic program and execution of geotechnical and structural studies to identify retrofits that may improve the reliability and continued operation of those facilities.; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on June 28, 2017 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this AGREEMENT between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this AGREEMENT, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional services to accomplish those project elements outlined in the Scope of Work attached hereto as "Attachment A", and by this reference made a part of this AGREEMENT. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, and completeness and coordination of the work and services furnished by the CONSULTANT under this AGREEMENT, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all applicable laws, regulations, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 1 of 20 B. CONSULTANT is responsible for the quality of work prepared under this AGREEMENT and shall ensure that all work is performed in accordance with generally accepted industry and professional standards for clarity, uniformity, and completeness. CONSULTANT shall timely respond to all comments, suggestions, and recommendations from the SANITATION DISTRICT. All comments from the SANITATION DISTRICT, or its agent, shall be incorporated into the work prior to the next review deadline or addressed, in writing, as to why the comment(s) has/have not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that CONSULTANTS services and/or work product(s) is not to the satisfaction of the SANITATION DISTRICT and/or does not conform to the requirements of this AGREEMENT or the applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its work product(s)within the timeframe specified by the Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. Any CADD drawings, figures, and other work produced by CONSULTANT and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CADD work from any other non-standard CADD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and require advance written approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of Thirty(30) calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANTITATION DISTRICT. E. All professional services performed by the CONSULTANT, including, but not limited to, all drafts, data, correspondence, proposals, and reports compiled or composed by the CONSULTANT, pursuant to this AGREEMENT, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that(a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, or(b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 2 of 20 2. COST ESTIMATES The CONSULTANT has no control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractor's methods of determining prices, or other competitive bidding or market conditions, practices or bidding strategies. CONSULTANT shall use best engineering practices along with experience and judgment, utilizing current local costs of labor, materials, equipment or services to prepare cost estimates. CONSULTANT cannot and does not guarantee that proposals, bids, actual Project construction, operation and/or lifecycle costs will not vary from cost estimates prepared by CONSULTANT. 3. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Two Million Five Hundred Seventy-Eight Thousand Twenty-Eight Dollars ($2,578,028). Total compensation to CONSULTANT including burdened labor(salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 3 of 20 Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Suboonsultant total compensation on an hourly-rate basis per Attachment"J"— Minor Subconsultant Hourly Rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 3 -COMPENSATION above. G. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan" as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at http://www.cisa.gov/portal/category/104711#. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 4 of 20 most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem' as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. H. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 5 of 20 4. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the Total Compensation, provided that the Total Compensation is not increased. 5. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period, in a format acceptable to the SANITATION DISTRICT. CONSULTANT shall warrant and certify the accuracy of these costs and provide all support documentation required by the SANITATION DISTRICT. CONSULTANT understands that submitted costs are subject to SECTION 14 AUDIT PROVISIONS. B. CONSULTANT will submit monthly statements covering services and/or work performed for payment for those items included in Section 3 hereof no later than the second Wednesday of the following month and in the format required by the SANITATION DISTRICT. The format must include, as a minimum: 1)current billing period invoicing, 2) current billing period "total percent invoiced to date", 3) future activities, 4) previous billing period "total invoiced to date", 5) potential items that are not included in the Scope of Work, 6) concerns and possible delays, 7) percentage of completion to date, and 8) budget status and amount remaining. Such requests shall be accompanied by such supporting data as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent(100%)of the invoiced amount. If the SANITATION DISTRICT determines that the work under this AGREEMENT or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element, The SANITATION DISTRICT may, at the discretion of the Director of Engineering, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for the Project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 3 -COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 6 of 20 progress has been made since the prior payment, or in the event of a delay in the work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this AGREEMENT, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work based on the monthly statements, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this AGREEMENT for such work, or prior settlement upon termination of this AGREEMENT, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this AGREEMENT other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act (Government Code sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this AGREEMENT may be held liable for treble damages and up to a $10,000 civil penalty for each false claim submitted. This section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: (a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; (b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; (c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; (d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or(a) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 6. PREVAILING WAGES To the extent CONSULTANT intends to utilize employees who will perform work during the contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 7 of 20 7. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work under this contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 8. DOCUMENT OWNERSHIP—CONSULTANT PERFORMANCE A. Ownership of Documents for the Professional Services performed. All documents in all forms (electronic, paper, etc.), including, but not limited to, studies, sketches, drawings, computer printouts, disk files, and electronic copies prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the AGREEMENT, or b) in accordance with other provisions of this AGREEMENT. Notwithstanding any other provision of this paragraph or AGREEMENT, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 8 of 20 B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the study or deliverable where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 9. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below "B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. Ill. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground)and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 9 of 20 C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle Liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier'SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail' coverage with the present or new carrier. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 10 of 20 In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The CONSULTANT shall provide SANITATION DISTRICT with access to copies of its insurance certificates and amendatory endorsements affective coverage at its office in Huntington Beach, California during normal working hours. Confidential information may be redacted from said policies, provided that verification of coverage may not be redacted. Said policies and endorsements shall conform to the requirements herein stated. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 (5/2010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 11 of 20 H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty(30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, and shall be received by the SANITATION DISTRICT not less than thirty (30) days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 12 of 20 M. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 10. SCOPE CHANGES In the event of a change in the Scope of Work or a change in the proposed Project, as requested by the SANITATION DISTRICT, the Parties hereto shall execute an Amendment to this AGREEMENT setting forth with particularity all terms of the new AGREEMENT, including, but not limited to any additional CONSULTANT's fees. 11. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this AGREEMENT, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this Project under this AGREEMENT by CONSULTANT. CONSULTANT shall include a description of the work and services to be done by each Subconsultant and each of CONSULTANT's Project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant, broken down as indicated in Section 3 - COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 12. ENGINEERING REGISTRATION The CONSULTANT's personnel and Suboonsultants are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever, in the performance of this AGREEMENT, the services of a registered engineer is required, such services hereunder will be performed under the direct supervision of registered engineers who are registered in California. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 13 of 20 13. SANITATION DISTRICT PROVIDED INFORMATION AND SERVICES The SANITATION DISTRICT shall furnish the CONSULTANT available studies, reports and other data pertinent to the CONSULTANT's services; obtain or authorize the CONSULTANT to obtain or provide additional reports and data as required; furnish to the CONSULTANT services of others required for the performance of the CONSULTANT's services hereunder, and the CONSULTANT shall be entitled to use and rely upon all such information and services provided by the SANITATION DISTRICT or others, unless noted otherwise elsewhere in this Agreement or in the Scope of Work, in performing the CONSULTANT's services under this AGREEMENT. 14. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this AGREEMENT. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this AGREEMENT during the term of this AGREEMENT and for a period of three (3) years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all Project related accounting records and documents, and any other financial data. 15. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to transform CONSULTANT, its staff, independent contractors, or Subconsultants into employees of the SANITATION DISTRICT. CONSULTANT's staff performing services under the AGREEMENT shall at all times be employees and/or independent contractors of CONSULTANT. CONSULTANT shall monitor and control its staff and pay wages, salaries, and other amounts due directly to its staff in connection with the AGREEMENT. CONSULTANT shall be responsible for PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 14 of 20 hiring, review, and termination of its staff and shall be accountable for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation and similar matters. 16. THIRD PARTIES This Agreement is entered into by and for the SANITATION DISTRICT and the CONSULTANT, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. 17. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this AGREEMENT, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Ludwig Lapus, Contracts Administrator Copy: Don Cutler, Project Manager CONSULTANT: Geosyntec Consultants 2100 Main Street, Suite 150 Huntington Beach, CA 92648 Attention: Chris Conde, Project Manager Copy: Christopher Hunt, Project Director All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 18. TERMINATION The SANITATION DISTRICT may terminate this AGREEMENT at any time, without cause, upon giving thirty (30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this AGREEMENT upon thirty (30)days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this AGREEMENT, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT at the address listed in Section 17 - NOTICES. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 15 of 20 19. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this Project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, electronic materials, computation and study materials in its files pertaining to the work described in this AGREEMENT, which is requested in writing by the SANITATION DISTRICT. 20. COMPLIANCE CONSULTANT certifies by the execution of this AGREEMENT that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 21. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each Party is a person duly authorized to execute this AGREEMENT for that Party. 22. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this AGREEMENT, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 23. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 24. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 16 of 20 25. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 26. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 17 of 20 regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT'S indemnification obligation hereunder shall survive the expiration or earlier termination of this AGREEMENT until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 27. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all SANITATION DISTRICT policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 28. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the AGREEMENT is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the AGREEMENT is otherwise terminated or expires in accordance with the terms of the AGREEMENT, the SANITATION DISTRICT shall give the Consultant written notice that the AGREEMENT will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the AGREEMENT within thirty(30) days of receipt of notice of AGREEMENT closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the AGREEMENT and will either: i. Give the CONSULTANT a final AGREEMENT Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in the AGREEMENT. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final AGREEMENT acceptance, the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise), and the CONSULTANT shall remain obligated PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 18 of 20 under all those provisions of the AGREEMENT which expressly or by their nature extend beyond and survive final AGREEMENT Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT'S request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT'S request for final Agreement Acceptance. 29. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 19 of 20 IN WITNESS WHEREOF, this AGREEMENT has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. GEOSYNTEC CONSULTANTS, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Gregory C. Sebourn, PLS Date Chair, Board of Directors By Kelly A. Lore Date Clerk of the Board By Marc Dubois Date Contracts, Purchasing and Materials Management Manager Attachments: Attachment"A"—Scope of Work Attachment'B"—Labor Hour Matrix Attachment"C'— Not Attached Attachment"D"—Allowable Direct Costs Attachment"E"—Fee Proposal Attachment"F"— Not Attached Attachment"G"—Cost Matrix and Summary Attachment"H"— Not Attached Attachment"I"—Not Attached Attachment"J"—Minor Subconsultant Hourly Rate Schedule Attachment"K"—OCSD Safety Standards LRL:yp PSA PROJECT NO. PS15-06 Revision 011017 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Page 20 of 20 OPERATIONS COMMITTEE Melting Dat0 TOBE.Or Dir. 06/07/17 O6/28/17 AGENDA REPORT Item Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CENTRAL GENERATION ENGINES AUTOMATIC BALANCING ANALYZERS GENERAL MANAGER'S RECOMMENDATION A. Approve a sole source purchase order to Windrock, Inc. for the purchase and installation of two Windrock Auto Balance analyzers, plus associated equipment, on two central generation engines, one at each plant, for a total amount not to exceed $501,376; and B. Approve a contingency of$50,137 (10%). BACKGROUND "Balance" is a term used to describe an engine that is running with equal pressures in all cylinders and where the ignition of the fuel is occurring at the correct time. In an engine that is out of balance, the mechanical parts are working against each other creating wear or breakage, wasting fuel, and increasing pollution. Having to overcome the internal resistance in an unbalanced generator engine results in less electricity generated per unit of fuel burned. The term auto balancing refers to a feedback system that continuously adjusts the fuel to air ratio to each cylinder based upon multiple measurements. By automating the engine balancing, staff expects to see increased fuel efficiency, reduced mechanical wear, reduced environmental emissions such as Carbon Monoxide and Oxides of Nitrogen, and enhanced diagnostic tools to identify and/or prevent breakdowns. The annual benefit from these improvements could reach $150,000 per engine. Staff proposes to install the Windrock Auto Balancer on one each of the 12 cylinder and 16 cylinder engines to verify the benefits and savings. If they are realized, staff will come back to the Board of Directors at a future time to install these devices on the remaining six engines. RELEVANT STANDARDS • Maintain a culture of improving efficiency • 24/7/365 treatment plant reliability • Maintain a proactive asset management program Page 1 of 2 PROBLEM Currently, the engine balancing is done manually by Orange County Sanitation District (Sanitation District) staff. This is time consuming and maintenance intensive. At the Sanitation District, this method does not work well due to changes in the digester gas quality (BTU content) and temperature fluctuations between day and night. PROPOSED SOLUTION Use continuous balancing to improve performance, reduce emissions, and reduce maintenance costs. RAMIFICATIONS OF NOT TAKING ACTION If not undertaken, the Sanitation District will realize higher maintenance costs, lower fuel efficiency, higher engine emissions resulting in increased chemical costs for emission control, and longer engine down time. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Given that the technology used for this device is patented by Windrock, Inc. (Windrock), the analyzer is designed for our type of engines, and Windrock can deliver a turnkey solution, Windrock is the sole source provider for this equipment. Also, this technology is especially appropriate for the Sanitation District given that it is effective for variable fuel quality, which is a problem at the Sanitation District due to the use of digester gas. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the Divisions 870 and 880 FY16/17 operating budget. (Line item: Repairs and Maintenance, Section 6 pages 92 and 96). Date of ADDroval Contract Amount Continaencv 06/28/17 $501,376 $50,137 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: N/A Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 06/07,17 — AGENDA REPORT Item Number Iem Number a — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CENTRAL GENERATION FACILITIES OIL CENTRIFUGE HEATER AND CONTROLS REPLACEMENT GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to replace and install four new Alfa Laval Central Generation Centrifuge Heaters and Controls at Plant Nos. 1 and 2 Central Generation facilities, for a total amount not to exceed $111,082; and B. Approve a contingency of$16,662 (15%). BACKGROUND The engine lube oil systems at the Central Generation facilities (Cen Gen) utilize centrifuges to separate and purify engine oil by removing heavier constituents like sludge and water from the engine oil. This water separation process is important to the longevity and performance of the engines, as well as our ability to produce power reliably. There are two engine oil centrifuges at each Cen Gen facility, which are leveraged over all engines at the plant to clean the oil accordingly. RELEVANT STANDARDS • Protection of Orange County Sanitation District assets • Maintain a proactive asset management program • Use all practical and effective means for recovering energy • Provide a safe and collegial workplace PROBLEM The oil centrifuge heaters and controls are outdated and obsolete. In addition, one oil centrifuge heater at Plant No. 1 has caught fire and must be replaced. PROPOSED SOLUTION Staff recommends replacing all Can Gen Oil Centrifuge Heaters and related Controls at Plant Nos. 1 and 2 with new factory parts from Alfa Laval. Page 1 of 2 TIMING CONCERNS Given the type of recent oil centrifuge failure (i.e.,fire), it is prudent to replace the obsolete technology with safer and more reliable equipment and controls. RAMIFICATIONS OF NOT TAKING ACTION Failure to take immediate action on this maintenance issue could result in additional equipment fires, unsafe working conditions, engine unreliability, and power generation issues. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the FY16/17 Budget. (Line item: Small Capital Projects, Section 8, Page 100). Date of Approval Contract Amount Contingency 06/07/17 $111,082 $16,662 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: N/A Page 2 of 2 OPERATIONS COMMITTEE M%1ing Date TOBE.Or Dir. 06/07/17 06/28/17 AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James E. Colston, Director of Environmental Services SUBJECT: BIOSOLIDS MANAGEMENT CONTRACT RENEWAL—TULE RANCH GENERAL MANAGER'S RECOMMENDATION A. Authorize the five-year contract renewal with Tule Ranch, Amendment No. 2, to manage Orange County Sanitation District's biosolids from Reclamation Plant No. 1 and Treatment Plant No. 2 for land application and/or landfill disposal (Specification No. S-2011-51313D), for the period commencing November 1, 2017 through October 31, 2022, for a unit price increase of$2.50, for a new unit price of $57 per ton, for a total estimated annual amount not to exceed $9,000,000; and B. Approve an aggregate annual unit price contingency of 5%. BACKGROUND On January 1, 2013, the Orange County Sanitation District (Sanitation District) executed a biosolids management contract for a term of five years, with one five-year renewal option with Tule Ranch to haul and land-apply the Sanitation District's biosolids at a tipping fee of $54.50 per wet ton of biosolids. This contract will expire on December 31, 2017 and the Sanitation District has elected to exercise its option to renew the contract with Tule Ranch. Sanitation District staff negotiated a renewal of the contract for a $2.50 per ton increase (4.6%) based on the following factors: • Tule Ranch maintained the same price for five years despite increases in costs • Employee wage and workers' compensation increases • New regulatory oversight and administrative costs • Refurbishment of truck trailers • Retirement and replacement of equipment due to California Air Resources Board (CARB) Rules • Maintenance activities due to CARB Rules • Increases in California fuel and registration taxes (SB1-Transportation Funding) • Increases in equipment and maintenance costs • Increases in truck and general liability insurance costs • Costs for new Department of Transportation electronic monitoring devices Staff reviewed and vetted costs, and supports a modest increase in the price per ton. Tule Ranch manages about 45% of the Sanitation District's biosolids on a yearly basis. Page 1 of 3 The remaining material is managed via compost. Below is a cost comparison: • Tule Ranch —$57/ton (proposed) at 280 miles (Yuma County, AZ) • Nursery Products—$48.90/ton at 135 miles (Helendale, CA) • Liberty Compost—$54.79/ton at 190 miles (Kern County, CA) • Inland Empire Compost Manufacturing Facility — $72.79/ton at 50 miles (City of Rancho Cucamonga, CA) RELEVANT STANDARDS • Ocean Discharge Permit, NPDES CA0110604 §VI.C.4.b Sludge (Blosolids) Requirements • Resolution No. OCSD 13-03, Biosolids Recycling Policy • Safe beneficial reuse of Biosolids PROBLEM The existing biosolids management contract between Tule Ranch and the Sanitation District expires on December 31, 2017. If the contract is not renewed, the Sanitation District's biosolids management diversity will be impacted, eliminating the only land application option. PROPOSED SOLUTION Approve the contract renewal to continue biosolids management diversity and sustainability, supporting the land application of biosolids for beneficial agriculture use. TIMING CONCERNS The existing biosolids management contract between Tule Ranch and the Sanitation District expires on December 31, 2017. The Sanitation District needs approximately six months to go out to bid, if renewal is not accepted. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District's biosolids management diversity and sustainability will be impacted, reducing its management option to only composting. PRIOR COMMITTEE/BOARD ACTIONS • October 2014 - Approved Amendment No. 1 to the Tule Ranch Agreement S- 2011-513BD, for the Management of Biosolids, providing additional fail-safe contingency options for hauling and processing sub-Class "B" biosolids for land application. • August 2012 - Approved a contract with Tule Ranch to manage the Sanitation District's biosolids from Reclamation Plant No. 1 and Treatment Plant No. 2 for land application and/or landfill disposal for the period commencing on January 1, 2013 through December 31, 2017, with one five-year renewal option. Page 2 of 3 ADDITIONAL INFORMATION Tule Ranch has been an excellent service provider over the life of the contract. • They have been an important flexible partner in picking up extra loads whenever possible. • They have been refurbishing trailers, purchasing new trucks, and upgrading to CARB-compliant equipment at a faster rate than required by regulations. • They have a Class A lime stabilization plant as a fail-safe option for the Sanitation District to send biosolids in case the digestion detention time is not met, which was a major concern as we were balancing operational demands of the P1-100 digester cleaning and rehab with the Groundwater Replenishment System (GWRS) expansion in 2015-16. • They have upgraded their onsite incorporation to meet the 6-hour vector attraction reduction standard,thereby giving the Sanitation District a fail-safe back up in case we do not meet our 38% volatile solids reduction requirement, which we have had a couple of close calls in the past few years. This upgrade reduces flies and odors, providing important evidence to the local regulators that Tule Ranch is not the source for this local problem. This is especially important as neighboring businesses have practices that are attracting flies and odors. • Tule Ranch also upgraded their biosolids offloading process to a best in class method that has no on the ground storage of biosolids. The biosolids are offloaded directly into a slinger instead of being staged on the ground for a loader to scoop into the slinger. This process is more efficient, but also means there are no '.chronic biosolids stains' that require extra work to till into the soil. • Tule Ranch is also now utilizing a drone to monitor their crops to ensure even spreading of biosolids. Pictures and video have been shared with the Sanitation District and will be benefit to our updated Biosolids video. CEQA The Sanitation District filed a Notice of Exemption for the current Tule Ranch agreement on August 23, 2012. This Amendment does not result in any changes. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Section 5, Page 6). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Proposed Amendment No. 2 • Amendment No. 1 • Original Agreement Page 3 of 3 AMENDMENT NO. 2 TO AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS—LAND APPLICATION AND LANDFILL DISPOSAL (5-2011-513BD) THIS SECOND AMENDMENT TO THE AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS—LAND APPLICATION AND LANDFILL DISPOSAL (5-2011-513BD), is made and entered into, to be effective on the date last signed below, by and between the Orange County Sanitation District, hereinafter referred to as "OCSD," with main offices located at 10844 Ellis Avenue, Fountain Valley, California 92708-7018 and Tule Ranch, of Fresno, California, hereinafter referred to as "Contractor,", and collectively referred to as the"Parties". WHEREAS, OCSD and Contractor executed, delivered, and entered into the Agreement for the Management of Biosolids—Land Application and Landfill Disposal between OCSD and Contractor,effective January 1, 2013 ("the Agreement"); and WHEREAS, OCSD and the Contractor executed, delivered, and entered into Amendment No. 1 to the Management of Biosolids — Land Application and Landfill Disposal effective November 12, 2014 ("Amendment No. 1"), for purposes of removal, transportation, and acceptance for delivery of Sub-Class B Biosolids for treatment at certain facilities; and WHEREAS, the Parties wish to amend the Agreement further to make certain modifications which shall be called Amendment No. 2 to Agreement for the Management of Biosolids — Land Application and Landfill Disposal ("Amendment No. 2"); and WHEREAS,on June 28,2017,the Board of Directors of OCSD authorized execution of Amendment No. 2; and WHEREAS, the Parties to the Agreement desire that Amendment No. 2 be incorporated into the Agreement and become a part thereof; and WHEREAS, the Parties desire that the Agreement as modified by Amendment No. 1 and Amendment No. 2 shall constitute the sole and entire Agreement among the Parties; NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein, the Parties agree to amend the Agreement as follows: 1. The Agreement for the Management of Biosolids — Land Application and Landfill Disposal between OCSD and Contractor shall be amended as follows: a. Section 3 Tenn of Agreement,shall be deleted in its entirely and restated as follows: "This Agreement shall be effective as of November 1, 2017, and shall continue in full force and effect for a period of five calendar years, ending October 31, 2022, unless the Agreement is terminated prior to the expiration date pursuant to the terms of this Agreement. b. Section 17 Compensation, shall be deleted in its entirely and restated as follows: "District shall pay Contractor a Base Land Application Fee plus hauling and transportation cost of$57.00 per wet ton. District shall pay Contractor a Base Landfill Tipping Fee plus hauling and transportation cost of$69.00 per wet ton for Biosolids managed on mutually agreed upon landfills. Amendment No. 2 Page 1 5-2011-513BD 124e194.t District shall pay Contractor a mutually agreed upon Base Fee plus hauling and transportation cost for Biosolids managed at other mutually agreed upon sites. Such arrangement shall be in writing, authorized by both parties, without the need to amend this Agreement. Parties have agreed to a fuel surcharge rate calculation as referenced in Exhibit "B", attached hereto and incorporated herein, and have agreed that no Consumer Price Index (CPI)adjustment is applicable to this Contract. Fuel Surcharge Rate=A(X-Y) A=Distance Multiplier 1) Kern County =3.0 and 2) Yuma County, AZ = 3.85 where distance multiplier is a factor of approximate total miles (round trip), truck fuel efficiency (assumes 5.5 m/g to Kern and 6.5 m/g to AZ), and an average of 25 tons per truck load. If and only if Contractor must use a failsafe location to divert all of District's biosolids for an extended period of time, Contractor may use Alternative Site—Class B Dateland, AZ =4.8 distance multiplier. X = Monthly average fuel Price per gallon, at a rate established monthly by the U.S. Energy Information Administration (EIA). Y = Monthly average fuel price to be established at rate set by the U.S. Energy Information Administration (EIA) in October, 2017. If the Contractor is able to secure a backhaul, the District shall be credited 50% of the net profit received by the Contractor for the backhaul. The Contractor shall credit the District on a bi-weekly basis for any backhaul performed, which the Contractor shall record and itemize in the regular bi- weekly invoice submitted to the District. The total annual cumulative amount paid for all of the District's Biosolids Management, inclusive of the services under this Agreement shall not exceed $9,000,000. Contractor shall produce all books, records, invoices and receipts demonstrating the actual costs of regulatory fees. The Base Land Application Fee or Base Landfill Tipping Fee may be subject to adjustment for cost fluctuations based on the sole discretion of the District if it is determined that an increase in the payment for Biosolids Management is necessary in order to compensate the Contractor for reasonable costs incurred in excess of those contemplated at the time this Agreement is executed. Consumer Price Index adjustment does not apply in this contract. Rate increases shall be limited to those documented to be necessary to meet the Contractors increased expenses. Contractor agrees to provide the District with written documentation supporting its request for any increase in the per ton cost to the District. All Contractor invoices shall be paid within thirty(30)days of receipt by District. Contractor shall keep proper books of record and accounts of all revenues to be shared with District which shall contain complete and correct entries of all deliveries of Biosolids. Said books and records shall, upon Amendment No. 2 Page 2 5-2011-513BD 124e194.t written request, be made available for inspection by a duly authorized representative of District." C. The following language shall be added to Section 11 Biosolids Contractor Requirements: "Contractor has established the practice of direct offloading of biosolids into the slinger (which effectively eliminates any staging of biosolids) followed by incorporation of the biosolids within 6 hours. This practice serves as a fail-safe method to meet the District's onsite vector attraction reduction requirements.Contractor shall continue this practice for District biosolids and shall not discontinue the practice for any reason without written approval to change the practice by the District" 2. Except as expressly amended above, all other provisions of the Agreement will remain unchanged and in full force and effect. [SIGNATURE PAGE FOLLOWS] Amendment No. 2 Page 3 5-2011-513BD 124a194.1 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment No. 2 to be signed by the duly authorized representatives as of the day and year last signed below. Orange County Sanitation District Tule Ranch of Fresno. California By: Marc Dubois Date Date Contracts/Purchasing Manager Name: Gregory C. Sebourn, PLS Date Chairman, Board of Directors Title: Kelly A. Lore Date Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin Amendment No. 2 Page 4 5-2011-513BD 124e194.t AMENDMENT NO. 1 TO AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS—LAND APPLICATION AND LANDFILL DISPOSAL (S-2011-513BD) THIS AMENDMENT TO THE AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS—LAND APPLICATION AND LANDFILL DISPOSAL(S-2011-513BD), is made and entered into, to be effective on the date last signed below, by and between the Orange County Sanitation District, hereinafter referred to as "OCSD," with main offices located at 10844 Ellis Avenue, Fountain Valley, California 92708-7018 and Tule Ranch, of Fresno, California, hereinafter referred to as "Contractor,", collectively referred to as the "Parties". WHEREAS, OCSD and Contractor executed, delivered and entered into the Agreement for the Management of Siololids—Land Application and Landfill Disposal between OCSD and Contractor, the effective date of which is January 1,2013 ("the Agreement"); and WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be called Amendment No. 1 ("Amendment); and WHEREAS, on October 22, 2014, the Board of Directors of OCSD, by minute order, authorized execution of this Amendment between OCSD and Contractor; and WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated into the Agreement and become a part thereof; and WHEREAS, the Parties desire that the Agreement as modified by this Amendment shall constitute the sole and entire Agreement among the Parties; NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein,the Parties agree to amend the Agreement as follows: 1. In addition to removing,transporting and accepting Class B Biosolids pursuant to Section 5 of the Agreement, Contractor agrees to remove, transport and accept for delivery Sub-Class B Biosolids for treatment at the following facilities at the following compensation: a. $67.00 per wet ton of sub-Class B biosolids to be hauled and processed at a lime- stabilization plant prior to land application on Tule Ranch's farm in Yuma, Arizona; and b. $68.00 per wet ton of sub-Class B biosolids to be hauled and processed at Arizona Soils compost facility owned and operated by Synagro, another DISTRICT biosolids contractor; and C. $13.00 per wet ton of sub-Class B biosolids to be hauled to Orange County Waste and Recycling (OCWR) Landfill, Prima Deshecha Landfill. OCWR tipping fees will be paid directly by OCSD. 2. Except as expressly amended above, all other provisions of the Agreement will remain unchanged and in full force and effect. [SIGNATURE PAGE FOLLOWS] Amendment No. 1 Page 1 5-2011-513BD 1033090.1 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment No. 1 to be signed by the duly authorized representatives as of the day and year last signed below. Orange County Sanitation District Tule Ranch.of Fresno.CA /d2-/� By: Con ctslPurchasing Manager Date Date t Name: S1N0. K, M ea9wK finnan, Board o�irectom4i Title: 0,yAt,' Clerk o the Board ate 9/23114 Amendment No. 1 Page 2 S-2011-513BD 1033090.1 AGREEMENT FOR THE MANAGEMENT OF BIOSOLIDS — LAND APPLICATION AND LANDFILL DISPOSAL This Agreement for the Management of Biosolids—Land Application and Landfill Disposal ("Agreement") is made and entered into, to be effective this!day of "by and between: V U ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District, (hereinafter referred to as"District" or"OCSD') AND TULE RANCH, of, - Fresno, California, a company, (hereinafter referred to as "Contractor") The District and Contractor are sometimes individually referred to herein as each "Party,"and collectively referred to herein as the"Parties." RECITALS WHEREAS, Contractor represents that it has the expertise and qualifications necessary to perform the Biosolids Management services described in this Agreement in a highly competent manner. Contractor further represents that it has demonstrated competence in providing the type of services contemplated by this Agreement. Contractor acknowledges that District is relying on these representations in entering into this Agreement; and WHEREAS, subject to the specific terns and conditions set forth herein, Contractor desires to enter into this Agreement with District for removal and processing of the District's dewatered Biosolids; and WHEREAS, subject to the specific terms and conditions set forth herein, Contractor and District desire to enter into this Agreement providing for: (i) the transportation and management of the District's Biosolids in Yuma County,Arizona; (ii) the transportation and management of the District's Biosolids to other sites or facilities as directed by the District; and (Ili) the permitting of the Biosolids Management sites and Contractor's management of operations with District's Biosolids thereon; and WHEREAS, District desires to have Contractor beneficially use District's Biosolids at its permitted use sites for land application or proper disposal of biosolids into permitted landfills in accordance with the specific terms and conditions set forth herein; and 873622.1 WHEREAS, Contractor represents that it has valid permits from the State of Arizona Department of Environmental Quality, applicable California Regional Water Quality Control Board, County Health Services Departments, and any other Federal, State, Regional and/or local Regulatory Agency as necessary, to operate a program for beneficial use or disposal of Biosolids. Contractor shall forward to District copies of all necessary permits secured in respect to said operations, as defined herein. Contractor has a number of existing sites located in, but not limited to, Arizona, that are permitted for the management of Biosolids under these permits ('Existing Sites"); and WHEREAS, the District is working with the Orange County Waste and Recycling to secure entry into their local Orange County landfills, and Contractor is anticipated to - transport, haul, and deliver Biosolids in amounts determined by the District in the event this option is implemented; and WHEREAS, the District is interested in utilizing other sites or facilities as a way to further diversify its portfolio of Biosolids management options, including, but not limited to, analyzing the suitability of District Biosolids at different facilities, providing District Biosolids for research or demonstration facilities, or investigating the suitability of a facility in meeting District tracking and documentation requirements; therefore,from time to time, Contractor is anticipated to transport, haul, and deliver Biosolids in amounts determined by the District to other sites or facilities as directed by the District. NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein,the Parties agree as follows: Section 1. Definitions 1.1. Backhaul. Means the return trip of a truck, transporting cargo or freight, especially when carrying goods back over all or part of the same route, thereby reducing transport costs for ground freight. 1.2. Biosolids. Means the primarily organic material removed and digested to clean municipal waste water or domestic sewage. The District's Biosolids meet the non- hazardous material standard according to the California Administration Code's procedures and the U.S. Environmental Protection Agency's (EPA)Toxic Characteristic Leaching Procedures test. In addition, Biosolids shall meet the EPA's Pollutant Limits, as established in 40 Code of Federal Regulations Part 503-Sewage Sludge Regulations (Table 1) and shall also meet the EPA's Class B Pathogen Reduction and Vector Attraction Reduction Requirements as stated in 40 Code of Federal Regulations Part 503 Sewage Sludge Regulations. Grit and screenings removed during the wastewater treatment process shall not constitute Biosolids. Digester cleanings are considered Biosolids, and may meet Class B requirements. 1.3. Biosolids ManacemeM. Means the transporting, accepting, delivery, and final use or processing of Biosolids in compliance with all applicable legal requirements under federal, state, and local law, including but not limited to those requirements defined in the California Public Resources Code section 40192 and the Federal Code of Regulations 40 CFR, Part 503. 873622.1 1.4. District's Biosolids. Means Biosolids removed by or generated by the District during the treatment of municipal waste water or domestic sewage at District Plants. Section 2. Nature of Agreement. This Agreement,when fully executed by the Parties, shall constitute a contract whereby Contractor agrees to remove and transport, or accept delivery of Biosolids from District's Reclamation Plant No. 1 and/or Treatment Plant No. 2, in quantities as determined and directed by District. Contractor shall further agree to manage District's Biosolids via land application and/or landfill at established/approved sites or at other mutually agreed upon sites and facilities for the beneficial use of Biosolids. In addition, Contractor agrees to transport, haul, and deliver Biosolids in amounts determined by the District to other sites or facilities as directed by the District. Contractor hereby agrees to provide the services and full the requirements requested in the District's Request for - Proposal and Scope of Work, attached hereto as Exhibit"A", and incorporated herein, and Contractor shall provide such services consistent with Contractors proposal, attached hereto as Exhibit"B", and incorporated herein, or as directed by the District. In addition, Contractor shall also have the capability of hauling and managing District's Biosolids to designated locations as determined by the District and must have excess capacity of a minimum of 750 wet tons per day to manage up to 100% of the District's daily Biosolids production as a failsafe provision. Section 3. Term of Agreement. This Agreement shall be effective as of the date first set forth above and shall continue in full force and effect for a period of five calendar years, beginning January 1, 2013, and ending December 31, 2017, unless the Agreement is: (1)terminated prior to the original expiration date pursuant to the terms of this Agreement; or(2) renewed pursuant to this Section 3, except as subject to early termination as provided in Section 4 of this Agreement. This Agreement may be extended for up to one additional five-year term by mutual consent of both Parties at any time during this Agreement's original term. The Parties may renegotiate the fees or prices set forth in Section 17 as a condition of any such extension. Section 4. Early Termination. 4.1. Grounds for Early Termination. This Agreement may only be terminated _ at a time prior to the scheduled termination date set forth in Section 3 of this Agreement, and any renewal thereof by written notice of termination as follows: A. By either Party in the event the defaulting Party fails to cure a material breach of this Agreement within thirty(30) days of receipt of a written notice from the non-defaulting Party of such material breach. B. By District upon 90 calendar days written notice to Contractor,where District has determined, in its sole discretion, that the services of Contractor no longer meet, or are necessary to meet, the District's Biosolids Management needs. In the event of termination pursuant to this Section 4, subdivision B, Contractor shall have the opportunity to consult with the District prior to termination and to submit and negotiate reasonable contract termination expenses, if any. 873622.1 Such costs may include, but are not limited to: (i) Costs for services and work performed to the date of termination. (ii) Costs for completing such tasks or work as may be directed by District. (iii) Other costs which are reasonably associated with termination. C. By either Party, in the event of a Force Majeure, if such condition exists for thirty (30) days or more. Either party may terminate this Agreement by giving notice in writing in accordance with Section 33. Said notice shall be effective twenty-four(24) - hours after receipt. D. District may, after giving Contractor(and the surety, if any)fifteen (15) days'written notice and to the extent permitted by laws and regulations, terminate the services of Contractor for cause, upon the occurrence of any one or more of the following events: (i) If Contractor fails to perform the work in accordance with the Contract Documents including, but not limited to, failure to provide Biosolids Management services established under the terms of this Agreement, refusal or inability to correct significant non-compliance or management system non-conformance findings, failure to supply sufficient skilled workers, or failure to provide suitable materials or equipment; (ii) If Contractor otherwise violates in any substantial way any provisions of the Agreement; and/or (ill) If Contractor is adjudicated bankrupt, voluntarily files for bankruptcy, or makes any assignment for the benefit of creditors, District may terminate this Agreement by giving the Contractor written notice of termination. The Agreement shall terminate on the date specified in the notice of termination. 4.2. Effect of Early Termination. Where Contractor's services have been so terminated by District, as set forth in this Section 4, the termination will not affect any rights or remedies of District against Contractor then existing or which may thereafter accrue. Any retention or payment of moneys due Contractor by District will not release Contractor from liability. 4.3. Rlahts Upon Termination. On termination of this Agreement by District for cause, District and Contractor agree as follows: (i) All of the records in Contractor's possession pertaining to the operation of the Project, together with all supplies, equipment, or other items of property owned by District and in Contractor's possession, shall be immediately delivered to District. 973622.1 (ii) Contractor's right to compensation shall immediately cease, except that Contractor is entitled to compensation for services rendered before the termination date. Section 5. Composition of Biosolids. All Biosolids to be removed by Contractor shall be digested wastewater Biosolids that are processed and dewatered by District to an average of 15 or greater percent solids. The District produces Class B Biosolids by anaerobically digesting primary and secondary solids at a temperature of approximately 98OF for greater than 15 days. The District's Biosolids shall meet the non-hazardous material standard according to the California Administration Code's procedures and the U.S. Environmental Protection Agency's (EPA)Toxic Characteristic Leaching Procedures test. In addition, the District's Biosolids shall meet the EPA's alternative Pollutant Limits, as established in 40 Code of Federal Regulations Part 503-Sewage Sludge Regulations (Table 1). The District's - Biosolids shall also meet the EPA's Class B Pathogen Reduction and Vector Attraction Reduction Requirements as stated in 40 Code of Federal Regulations Part 503 Sewage Sludge Regulations. Section 8. Ownership of Biosolids. All Biosolids removed from District's premises by Contractor shall become the property of and the responsibility of Contractor at the time Contractor takes possession at District's facilities. In the event the Biosolids are transported by District to the Contractor's sites, or to other mutually agreed upon sites, the Biosolids shall become the property of and responsibility of Contractor at the time Contractor takes possession at its designated location. The District maintains strict oversight of these Biosolids throughout the final use process, up to, but not limited to, post-Iandfilling inspections and crop, harvesting inspections. Section 7. Permitting of Biosolids Management Land Application and Landfill Sites. On execution of this Agreement, Contractor agrees to comply with the following: 7.1 Contractor shall maintain in effect all necessary licenses, permits and other approvals legally required in order to perform this Agreement. 7.2. Contractor shall promptly notify the District of any action or proceeding to cancel, withdraw or modify any license, permit or insurance policy held by Contractor that is related to the District's Biosolids, and of the cancellation, withdrawal, loss or modification of any such license, permit, or policy. 7.3. Contractor shall forward to District copies of all new or revised permits obtained for its existing land application or landfill sites. Prior to commencing operations at such other locations as may be agreed to, Contractor shall forward to District copies of all necessary permits secured in respect to said operations, as defined herein. Contractor shall demonstrate to District upon request that it has obtained and kept current all required business authorizations, including but not limited to Contractor's license and corporate status. 873622.1 Section 8. Scheduled Pickup. Contractor will at all times have a sufficient number of trucks available for removal and management of Biosolids produced by the District in accordance with a prearranged, mutually agreed upon time schedule, location, and in conformance with the Biosolids management system requirements. Section 9. Inclement Weather. Contractor shall provide adequate facilities to insure its ability to manage Biosolids produced by District during inclement weather. Section 10. Biosolids Management Plan. The Contractor shall provide the District with a thorough Biosolids Management - Plan (BMP) on the effective date of this Agreement. The BMP shall include, but not be limited to, a complete description of the Contractor's operations, environmental monitoring, and incident response plan. Section 11. Biosolids Contractor Requirements Contractor shall conform to the District's Biosolids Resolutionand Biosolids Contractor Reouirements, as set forth in Exhibit"C", attached hereto and incorporated herein, which may be amended from time to time without the need to amend this Agreement. The District shall provide notice to Contractor and a reasonable amount of time for compliance with any amendments to the District's Biosolids Resolution and Biosolids Contractor Requirements. Amendments to Exhibit "C" shall be incorporated herein. Consequences for non-conformance with District requirements include, but are not limited to, truck and driver lockout, reduction in number of scheduled loads, withholding of payment, and grounds for early termination of this Agreement. District's Biosolids Management System includes requirements for Biosolids Contractors. Currently, conformance with District's Biosolids Contractor Requirements includes a commitment to the National Biosolids Partnership's Code of Good Practice and other applicable good practices, procedures for tracking biosolids, reporting and record keeping, regulatory compliance, proactive maintenance, self-imposed requirements, public outreach and documentation, participation in audits and any required corrective actions, corrective and preventive actions for all inspection findings, - training and emergency preparedness plans, and other elements that may have procedural and cost implications for Contractors. Pursuant to Section 10, Contractor shall develop and submit a Biosolids Management Plan, which is consistent with the District's Biosolids Contractor Requirements, prior to execution of this Agreement. Section 12. Safety. Contractor's management may be required to attend periodic safety meetings, as directed by District, and Contractor shall be responsible for insuring that all District safe working practices are followed by Contractor's personnel. The District may also require the Contractor to submit safety records. 873622.1 Section 13. Force Maieure. Notwithstanding any other provisions in this Agreement, neither Contractor nor District shall be held responsible or liable for failure to meet their respective obligations under this Agreement, if such failure shall be due to causes beyond the control of the Party that failed to meet its obligations ("Force Majeure"). Such causes shall be limited, however, to the following: civil disorder, insurrection or acts of the public enemy, or acts of a federal or state governmental authority which renders it unlawful to implement this Agreement. A Party shall immediately notify the other Party in writing of such a condition. No Party, however, shall be relieved of any obligation or liability if such failure arises out of such Party's own acts or negligence. Section 14. Records and Reporting. Contractor shall keep complete and correct daily records of all Biosolids Management activities, including, but not limited to, records reflecting the date, quantity, origin and destination of Biosolids removed,transported, land applied, or landfilled. Upon request by the District, Contractor shall provide the District timely access to all such records concerning the management of District's Biosolids, including, but not limited to, application, planting and harvesting dates, crop yields, and the District may conduct additional laboratory testing to verify regulatory compliance. Contractor shall provide the District with a monthly report of activities within 30 days after the end of each month during the tens of this Agreement, commencing one (1) month from the effective date of this Agreement. The report of activities shall include, but not be limited to, amount of biosolids hauled and managed, environmental monitoring data, crops planted and harvested, crop yields, If applicable, quantities of residuals applied, problems encountered, communications log and outreach efforts, and approved drivers lists. Contractor shall provide District with an annual report of compliance with 40 CFR Sections 501 and 503 no later than February 12 of the year following the calendar year of the report. Section 15. Compliance with Laws. 15.1 Contractor shall assure that all processes utilized at its existing land application or landfill sites, or other approved sites, specific to this Agreement, shall comply with all applicable local, state and federal laws, rules, regulations and pronouncements including but not limited to the following: A. All activities shall be conducted in accordance with the rules, regulations, orders and other requirements, as applicable, set forth by the U.S. Environmental Protection Agency, Department of Transportation, State of Arizona, State of California, and not limited to, State of California Water Resource Control Board, California Regional Water Quality Control Board, State of California CalRecycle, Air Pollution/Air Quality Control District, County of Orange, Parts 503 of Title 40 of the Code of Federal Regulations ('Standards for the Use and Disposal of Sewage Sludge", respectively), Arizona Article 10 Biosolids Regulations, and such other regulations as may be applicable now or in the future; $73622.1 B. Contractor recognizes that Part 503 of Title 40 of the Code of Federal Regulations is a self-implementing rule and that activities conducted at its existing land application or landfill sites must comply with all applicable general requirements, pollutant limits, management practices, operational standards, monitoring requirements, recordkeeping requirements and reporting requirements of the rule. Contractor shall provide all information relevant to operations at its existing land application or landfill sites, which the District may include in completing NPDES or other permit applications or permit-required reports. 15.2. Contractor shall perform under this Agreement in a safe, competent and compliant manner. 15.3. Contractor shall comply with all applicable federal, state and local laws, statutes, regulations, ordinances, rules, orders, directives, and pronouncements in performing its obligations under this Agreement. _ 15.4. Without limiting the foregoing, Contractor shall abide by, and shall cause its employees and subcontractors to abide by, all applicable health, safety and EPA and Arizona Department of Environmental Quality rules. 15.5. Contractor shall promptly and fully notify the District of any governmental action or proceeding to enforce any statute, regulation, ordinance, rule, or governmental order in connection with the District's Biosolids covered under this Agreement. 15.6. Contractor shall keep fully informed of federal, state and local laws, ordinances and regulations which in any manner affect those employed by Contractor, or in any way affect the District's Biosolids pursuant to this Agreement. Section 16. Inspections. District shall have access to Contractor's existing sites and other sites specific to this Agreement during normal business hours to conduct inspections of Biosolids Management and related operations. District shall not be required to give advance notice of such inspections to Contractor. Section 17. Compensation. District shall pay Contractor a Base Land Application Fee plus hauling and transportation cost of$54.50 per wet ton. District shall pay Contractor a Base Landfill Tipping Fee plus hauling and transportation cost of$69.00 per wet ton for Biosolids managed on mutually agreed upon landfills. In addition, the District shall pay Contractor$6.00 per wet ton to transport and haul the District's Biosolids to the Orange County Waste and Recycling's Prima Deshecha Landfill located at 32250 La Pal Avenue, San Juan Capistrano, California. The District shall pay the Orange County Waste and Recycling's Base Landfill Tipping Fee as separately negotiated by the District. District shall pay Contractor a mutually agreed upon Base Fee plus hauling and transportation cost for Biosolids managed at other mutually agreed upon sites. Such 873622.1 arrangement shall be in writing, authorized by both parties, without the need to amend this Agreement. Parties have agreed to a fuel surcharge rate calculation as referenced in Exhibit °B", attached hereto and incorporated herein, and have agreed that no Consumer Price Index (CPI)adjustment is applicable to this Contract. Fuel Surcharge Rate =A(X-Y) A=Distance Multiplier 1) Kern County=3.0 and 2)Yuma County, AZ=4.8. Where Distance multiplier is a factor of approximate total miles (round trip), truck fuel efficiency (assumes 5.5 m/g to Kern and 6.5 m/g to AZ), and an average of 25 tons per truck load. X= Monthly average fuel Price per gallon Y= Monthly average fuel price at the date Contract is executed If the Contractor is able to secure a backhaul, the District shall be credited 50% of the net profit received by the Contractor for the backhaul. The Contractor shall credit the District on a bi-weekly basis for any backhaul performed, which the Contractor shall record and itemize in the regular bi-weekly invoice submitted to the District. The total annual cumulative amount paid for all of the District's Biosolids Management, inclusive of the services under this Agreementshall not exceed $19,000,000 or the total annual biosolids management budget per year without the District's express written approval. Contractor shall produce all books, records, invoices and receipts demonstrating the actual costs of regulatory fees. The Base Land Application Fee or Base Landfill Tipping Fee may be subject to adjustment for cost Fluctuations based on the sole discretion of the District if it is determined that an increase in the payment for Biosolids Management is necessary in order to compensate the Contractor for reasonable costs incurred in excess of those contemplated at the time this Agreement is executed. Consumer Price Index adjustment does not apply in this contract. Rate increases shall be limited to those documented to be necessary to meet the Contractor's increased expenses. Contractor agrees to provide the District with written documentation supporting its request for any increase in the per ton cost to the District. All Contractor invoices shall be paid within thirty(30) days of receipt by District. Contractor shall keep proper books of record and accounts of all revenues to be shared with District which shall contain complete and correct entries of all deliveries of Biosolids. Said books and records shall, upon written request, be made available for inspection by a duly authorized representative of District. Section 18, Payment and Invoicinc. District shall pay Contractor bi-weekly for services rendered pursuant to this Agreement upon receipt of an itemized invoice, in a form acceptable to the District to 873622.1 enable audit of the charges thereon. Contractor shall e-mail the invoices to the District to the address provided in Section 34, to the attention of"Accounts Payable." Section 19. Insurance to be Maintained by Contractor. Contractor and all subcontractors shall purchase and maintain,throughout the term of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements(attached hereto and incorporated herein as Exhibit"D°). Contractor shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to the District, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained and submitted to the District. Failure to maintain required insurance coverage shall result in termination of this Agreement. Section 20. Default and Remedies. 20.1. Allegation of Default. In the event either Party violates any of the terms or conditions of this Agreement or fails, in the opinion of the other Party, to satisfactorily perform its duties under this Agreement, the aggrieved Party shall deliver an Allegation of Default to the violating Party. The Allegation of Default shall be delivered in the manner described in Section 33 of this Agreement. After delivery of the Allegation of Default, the violating Party shall have thirty (30)days within which to cure the alleged default or to otherwise respond to the Allegations of Default. 20.2. Event of Default. In the event that either Party to this Agreement shall fail to comply, in any material respect, with any of its obligations, covenants or responsibilities under this Agreement within 30 days after an Allegation of Default has been issued, this shall constitute an Event of Default, and the non-defaulting party shall be entitled to the remedies set forth below in Section 20.3. 20.3. Remedies for Default. In the event of an uncured event of default of any material provision of this Agreement, a Party shall be permitted to pursue any remedy available to it at law or equity; provided, however, that a Party shall have the right to terminate this Agreement only in accordance with the provisions of Section 4 hereof. The pursuit of any right or remedy by a party shall not be exclusive of its right to pursue any other remedies available to it. Neither Party shall have any right of set-off against any amounts owed under this Agreement for damages claimed under this Agreement. Section 21. District CEQA Compliance. The District's obligations under this Agreement shall become effective upon the successful completion of District's review of the proposed activities pursuant to the California Environmental Quality Act, Public Resources Code section 21000, at seq. (CEQA). District shall have no obligations under this Agreement, and the Agreement shall have no force and effect, unless and until the District determines, in its sole and absolute discretion, that District has completed all CEQA review, made appropriate findings under CEQA as required by law, and finally determined to proceed with the activities described in this Agreement. 873622.1 Section 22. Indemnification. Except as to the negligence or willful misconduct of the District, Contractor shall indemnify, defend (at Contractor's sole cost and expense and with legal counsel approved by the District, which approval shall not be unreasonably withheld), protect and hold harmless the District and all of District's officers, directors, employees, consultants, and agents (collectively the"Indemnified Parties"), (a)from and against any claim, expense, loss, liability, cost, including without limitation, attorney's fees, expert fees, or consultant fees caused by, resulting from or arising out of the failure of the Contractor, its employees, subcontractors, representatives and products,to comply fully with applicable federal, state, or local laws, statutes, regulations, ordinances, rules, or governmental directives which regulate the acceptance, handling, storage, processing or management of the District's Biosolids; (b)from all claims, suits and liability for loss or - damage to any tangible property or persons, including death, caused by any negligent or willful act of the Contractor, its employees, representatives, subcontractors, or representatives during the preparation, delivery, acceptance, handling, collection, storage or management of the District's Biosolids; and (c)from all claims, suits and liability for personal and environmental injury or harm that results from the preparation, _ acceptance, handling, collection, handling, storage or management of the District's Biosolids created by the acts or omissions of the Contractor. Contractor's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. Section 23. Duty To Defend. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of Contractor. Contractor's obligation to defend shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to Contractor. Payment to Contractor by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, to any extent, then the District will reimburse Contractor for the reasonable costs of defending the Indemnified Parties against such Claims. Section 24. Attorneys' Fees. In the event that legal action is commenced by either of the Parties hereto in connection with this Agreement, the Party prevailing in any such action shall be entitled to recover from the other Party or Parties, in addition to such other relief as the Court may grant, all reasonable attomeys'fees and costs incurred by the prevailing Party. Section 25. Contractor's Status. It is understood and agreed that the Contractor is, and shall be, acting at all times as an independent contractor herein, and not as an employee of District. Contractor 873622.1 shall secure, at its own expense, and be responsible for, any and all payment of applicable taxes including Social Security(FICA), State Disability Insurance Compensation, Unemployment Compensation, employee payroll taxes, and any other payroll deduction for Contractor and its officers, agents, and employees in connection with the services to be performed under this Agreement. The relationship between the Parties shall be limited to performance of this Agreement in accordance with its terms. Unless otherwise specifically stated herein, neither Party shall have any responsibility with respect to the services to be provided or contractual benefits assumed by the other Party. Nothing in this Agreement shall be deemed to constitute either Party a partner, agent or legal representative of the other Party. No liability or benefits, such as workers compensation, pension rights or liabilities, or other provisions or liabilities arising out of or related to a contract for hire or employer/employee relationship, shall arise or accrue to any Party's agent or employee as a result of this Agreement or the performance thereto. Section 26. Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective heirs, representatives, successors, and assigns. No assignment of this Agreement shall be effective without the prior written consent of the non-assigning Party. Section27. Further Assurances. Whenever requested by the other Party, each Party shall execute, acknowledge, and deliver all further conveyances, agreements, confirmations, satisfactions, releases, powers of attorney, instruments of further assurance, approvals, consents, and all further instruments and documents as may be necessary, expedient, or proper to complete any conveyances, transfers, sales, and agreements covered by this Agreement, and to do all other acts and to execute, acknowledge, and deliver all requested documents to carry out the intent and purpose of this Agreement.. Section 28. Third-Party Rights. Nothing in this Agreement, express or implied, is intended to confer on any person, other than the Parties to this Agreement and their respective successors and assigns, any rights or remedies under or by reason of this Agreement. Section 29. Entire Agreement: Modifications in Writing. All previous negotiations had between the Parties hereto and/or their agents with respect to this Agreement are merged herein and this Agreement alone fully and completely expresses the Parties' rights and obligations. This Agreement shall not be modified in any manner except by an instrument in writing executed by the Parties or their respective successors in interest. Section 30. Severability. Should it be found that any part of this Agreement is unlawful or unenforceable, such part or parts of this Agreement shall be of no force or effect, and this Agreement shall be treated as if such part or parts had not been inserted. 873622.1 Section 31. Interpretation. Each of the Parties hereby waives any provisions of law to the effect that an ambiguity in a contract or agreement should be interpreted against the Party that drafted the contract, agreement, or instrument. Section 32. Governing Law. This Agreement shall be governed by and construed according to the laws of the State of California. Section 33. Notice. Any notice, payment, or instrument required or permitted to be given hereunder shall be deemed received upon personal delivery, email delivery or upon deposit in the United States mail, registered or certified, postage prepaid and addressed to the Party for whom intended as follows: If to Contractor. d(L %5Z,4 E. PW&Nar uC Fvyai.o, cth a3'726 If to District: Orange County Sanitation District 10644 Ellis Avenue Fountain Valley, California 92706 Attention: Contracts Manager mdubois@ocsd.com With a copy to: Bradley R. Hogin General Counsel—OCSD Woodruff, Spradlin &Smart 555 Anton Boulevard, Suite 1200 Costa Mesa, California 92626 bhogin@wss-law.com 873622.1 Section 34. Authority. The individuals executing this Agreement and the instruments referenced herein on behalf of the Parties each represent and warrant that they have the legal power, right and actual authority to bind the Parties to the terms and conditions hereof and thereof. Section 35. Waivers. No waivers or failure to exercise any right, option or privilege under the terms of this Agreement on any occasion shall be construed to be a waiver of any other right, option or privilege on any other occasion. IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first above written. "DISTRICT" ORANGE COUNTY SA TATION DISTRICT ' By Chair, Boa of D ectors By C erc t and By — ontra s/Purchasing Manager APPROVED AS TO FORM: Bradley R. Hogin General Counsel By 'CONTRACTOR" Mule Clav,��. By Its President or th rized designee 873622.1 OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 06/07/17 O6/28/17 AGENDA REPORT Item Item Number 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Jim Colston, Director of Environmental Resources SUBJECT: 2017 AUDIT REPORT OF ORANGE COUNTY SANITATION DISTRICT SEWER SYSTEM MANAGEMENT PLAN (SSMP) GENERAL MANAGER'S RECOMMENDATION Receive and file the Final WDR/SSMP Audit Report dated May 19, 2017. BACKGROUND The Orange County Sanitation District (Sanitation District) Sewer System Management Plan (SSMP) audit was last received and filed by the Board of Directors in December 2015. The Sanitary Sewer System Waste Discharge Requirement Order (SSS WDR Order) requires the SSMP to be re-audited every two years. The 2017 audit found no non-compliance deficiencies, four major non-conformance deficiencies, 13 minor deficiencies, and 10 best practice opportunities. The administrative deficiency findings were corrected. The other findings are being reviewed and considered by Environmental Services and Operations and Maintenance staff to determine whether the recommended action will benefit the Sanitation District. The current version of the Sanitation District's SSMP is posted on the website for public awareness and transparency. RELEVANT STANDARDS • Comply with sanitary sewer overflow regulations (SSS WDR Order) • Maintain a proactive asset management program • Less than 2.1 sewer spills per 100 miles PRIOR COMMITTEE/BOARD ACTIONS December 2015 - Board of Directors received and filed the 2015 Waste Discharge Requirement (WDR)for SSMP Audit Report dated July 31, 2015. March 2012 - Board of Directors approved the SSMP dated March 28, 2012. May 2009 - Board of Directors approved the SSMP dated May 1, 2009. October 2008-Board of Directors received and filed the SSMP Compliance Status Report dated September 24, 2008. Page 1 of 2 July 2007 - Board of Directors approved the SSMP Development Plan and Schedule. October 2006 - Board of Directors approved the development and implementation of a compliance program with the Sanitary Sewer System WDR Order. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Final WDR/SSMP Audit Report dated May 19, 2017 Page 2 of 2 FINAL WDR/SSMP Audit Report Orange County Sanitation District WDR/SSMP Audit Subject: 2015-2016 WDR/SSMP Audit Prepared for: Dindo Carrillo, OCSD Prepared by: Michael Flores, Jennifer Duffy—HDR Reviewed by: Eric Scherch— HDR Date: May 19, 2017 Purpose The purpose of this document is to report the results of the Waste Discharge Requirements (WDR) Audit conducted for the Orange County Sanitation District (OCSD/District) covering Calendar Years (CY) 2015 and CY 2016. This report was prepared pursuant to the requirements included in the State Water Resources Control Board Order No. 2006-0003 — Statewide General Waste Discharge Requirements for Sanitary Sewer Systems (WDR). The audit requirements are: As part of the Sewer System Management Plan (SSMP), the Enrollee shall conduct periodic internal audits, appropriate to the size of the system and the number of SSOs. At a minimum, these audits must occur every two years and a report must be prepared and kept on file. This audit shall focus on evaluating the effectiveness of the SSMP and the Enrollee's compliance with the SSMP requirements identified in this subsection (D.13), including identification of any deficiencies in the SSMP and steps to correct them." This audit serves as the District's 2017 SSMP audit. The District is in compliance with the SSMP Program Audit element. Background The District is a regional sewer agency formed to address the need for sewage collection, treatment, and disposal for 20 cities and four special districts in Orange County. The District is responsible for operation and maintenance of a sanitary sewer system that includes 369 miles of sewer mains and 15 outlying lift stations'. In August 2016, the District successfully transferred approximately 170 miles of local sewers serving parts of Tustin and unincorporated areas north of Tustin to the East Orange County Water District, allowing the District to focus on regional wastewater collection, treatment, and recycling. The District is not responsible for maintenance of sewer laterals. The District Board last adopted an updated version of the SSMP on March 28, ' Source: State Water Resources Control Board, California Integrated Water Quality System, Sanitary Sewer Overflow database. Data downloaded on March 31, 2017. May 19,2017 1 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL 2012. The District's SSMP was last revised on January 18, 2017 and did not include significant updates. WDR/SSMP Audit This audit reviews the period between January 1, 2015 and December 31, 2016 and is the fourth WDR Audit performed to meet WDR requirements for completion of an audit a minimum of once every two years. The previous audit was completed on July 31, 2015. This audit assesses the current state of WDR compliance with the provisions included in the WDR including Provision D.13, identifies any deficiencies found in the SSMP, and recommends corrective actions. In addition, the audit provides an evaluation of SSMP effectiveness. The District intends to use the audit results to maintain SSMP compliance and performance in reducing sewer overflows. HDR conducted the audit on behalf of the District through a series of meetings with District staff involved with implementation of activities required by provisions included in Provision D.13 of the WDR. The HDR Audit Team members and District staff supporting the audit interviews and audit process are identified in Table 1. Table 1:WDR Audit Team Members Team Member Organization Role Dindo Carrillo OCSD WDR Audit Project Manager& Subject Matter Expert Michael Flores HDR Lead Auditor Jennifer Duffy HDR Technical Expert, System Evaluation and Capacity Assurance Plan SSMP audit interviews were performed over a three-day period starting on March 13, 2017 and concluding on March 16, 2017. The order of the audit interviews, WDR provision audited, and District staff interviewed is documented in Table 2: May 19,2017 2 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 2:Audit Meeting Participants Date WDR Topics Interviewees Provision Section 3/13117 D.13 (vi) Overflow Emergency Response Plan Dindo Carrillo Reporting 3/13/17 D.13 vii FOG Control Program Merrill Seiler 3/13/17 D.13 (i) Goal Jim Colston D.13 (ii) Organization Ron Coss Lisa Frigo D.13 (iii) Legal Authority 3/13/17 D.13 (viii) System Evaluation and Capacity Eros Yong Assurance Plan Wendy Smith 3/13/17 D.13 (x) Monitoring, Measurement, and Program Ron Coss Modifications Lisa Frigo SSMP Program Audit Michele Farmer 3/13/07 D.13 (xi) Communication Program Jennifer Cabral 3/14/17 D.13 (iv) O&M Program- Information and Data Mark Esquer Management, Decision-Making—Small Andrew Brown Diameter Contractor Cleaning and CCTV 3/14/17 D.13 (iv) O&M Program— Information and Data Mark Esquer Management—Large Diameter Andrew Brown Inspection, Assessment, and Decision- Peter Chaffs Making David Andrade Erik Slratmoen 3/14/17 D.13 (iv) O&M Program— Information and Data Santiago Escobar Management—Pump Station O&M, Adam Newsom RCM, Inspection, Condition Assessment, and R&R Decision-Makin 3/14/17 D.13 (iv) O&M Program— Information and Data Mike Bolster Management—In-House Cleaning PM for Large and Small Diameter Pipes 3/14/17 D.13 (iv) O&M Program— Funding and Adequate Mark Esquer Resources and Accounting Practices Mike White 3/16/17 D.13 (vi) Overflow Emergency Response Plan — James Cabral Response, Containment, Clean-up John Gonzalez Erik Stratmoen 3/16/17 D.13 (iv) O&M Program— Review of Cleaning and James Cabral Inspection CMMS Records John Gonzalez Mike Bolster 3/16/17 D.13 (iv) O&M Program— Review of Contractor Mark Esquer Cleaning Crew CMMS Records and Andrew Brown Documentation 3/16/17 D.13 (iv) O&M Program— Review of Pump James Cabral Station Crew CMMS Records and Mike Bolster Documentation May 19,2017 3 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Evaluation of SSMP Effectiveness Overall, based on the analysis of sanitary sewer overflow(SSO)trends over the last two years and the results of the WDR/SSMP audit, the overall program for managing, operating, and maintaining the sewer system has continued to improve and operate at a high level of performance. Sewer Overflow Performance An important measure of the effectiveness of the SSMP is sewer overflow performance. This section reviews the District's recent sewer overflow performance through analysis of the sewer overflow data reported to the State Water Resource Control Board (SWRCB) California Integrated Water Quality System (CIWQS)SSO database. Number of Sewer Overflow Events Per 100 Miles The District has maintained a sewer overflow rate averaging less than 1.15 SSOs per 100 miles of sewer pipelines per year consistently over the past two years as indicated by the 12-month rolling average SSO rate over that period. Over the last five years, the District has consistently operated below 1.31 SSOs per 100 miles per year as shown in Figure 1. This SSO rate is well below the average annual SSO rate during the same period of the combined forty-nine (49) agencies in Region 8 that do not have sewer lateral responsibility. Figure 1 shows the 12- month rolling average of SSOs per 100 miles of pipelines per year from January 2012 through March 2017 for all OCSD sewer mains versus the combined 49 agencies in Region 8 without lateral responsibility. Figure 1 also separates OCSD sewer mains into two categories: local sewers and regional sewers. Local sewers are sewer mains serving only one agency. Regional sewers convey flow from more than one agency and are larger pipelines. As can be seen in Figure 1, the local sewers have a higher SSO rate than the regional sewers due to a significantly higher likelihood of a blockage causing an overflow in these smaller pipelines. Gallons Spilled Per 100 Miles Another performance measure indicating the effectiveness of the SSMP is the volume spilled per 100 miles of pipelines. The District has maintained a sewer overflow volume of less than 17 gallons per 100 miles of sewer pipelines per year consistently over the past two years as indicated by the 12-month rolling average SSO volume per 100 miles over that period. The District has actually maintained this same level over the past five years as shown in Figure 2. As shown in Figure 2, this SSO volume per 100 miles is well below the average SSO volume per 100 miles of the other 49 agencies in Region 8 that do not have lateral responsibility. R Region 8 refers to Regional Water Quality Control Board, Santa Ana Region. May 19,2017 4 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Figure 1: 12-Month Rolling Average of SSOs per 100 Miles of Sewer Pipeline per year 3.50 3.00 2.50 g e 2.00 f g 1.50 x 1.00 0.50 cm as Montle-year --SD-a,Sewers —OCSOnegbnalsewers �AIIt%SD Sawa,s —eegbn SSW. rw/o lrtaral arspomlblllry Figure 2: 12-Month Rolling Average of Gallons Spilled per 100 Miles of Sewer Pipeline per year 250 200 g C f 150 S 8 � 100 3 so 7i 0 aaaa t `e s $ k X€€ t $ }ggt t o s $ k t t s g k€€ t t i s x s 8 3 s s 4 x ' a % A = .g = .% _ .k = 9f = Monty-Year :OCSDLoeal Ywers —OCSO Regional Sewers All O03D Sewers —Region asystems w/o lateral RmyomlbI1ky May 19,2017 5 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Number and Size of Sewer Overflows During the period between January 1, 2015 and December 31, 2016, the District experienced seven (7) SSOs with six(6) SSOs occurring in local sewer gravity mainlines and one (1) SSO occurring in the regional sewer system. Over the past five years, the District has experienced a total of 20 SSCS. The number and volume category of SSOs in the local and regional system can be seen in Figure 3 and Figure 4. Figure 3: Number of SSOs for Local and Regional Systems by Calendar Year 7 x 6 N 5 N �O 4 a 3 E2 0 2 1 0 2012 2013 2014 2015 2016 Calendar Year a Local ■Regional Figure 4:SSO Volume for Local and Regional Systems by Calendar Year 8000 e7000 s 60Dg n 5000 E 4aoo 2 3000 O e: 2000 A 1000 N e 2012 2013 2014 2015 2016 Calendar Year •local aReeonal In the past five years, 13 out of 20 SSOs (65 percent) had volumes of less than 1,000 gallons. Of the six (7) SSOs larger than 1,000 gallons, four(4)occurred prior to 2015. OCSD did not experience any SSO greater than 1,000 gallons in CY 2013. Table 3 shows the number and size of all SSOs occurring in the OCSD sewer system between CY 2012 through CY 2016. It should be noted that OCSD only experienced one SSO in Calendar Year 2013 and two SSOs in Calendar Year 2016, which is an outstanding achievement. May 19,2017 6 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 3:Number and Size of All OCSD SSOs from CY 2012 through CY 2016 Size of SSO(gallons) CY 2012 CY2013 CY2014 CY2015 CY2016 TOTAL Greater than 10,000 0 0 0 0 0 0 From 1,000 to 9,999 3 0 1 2 1 7 From 100 to 999 0 1 4 3 0 8 From 10 to 99 2 0 1 0 1 4 From 1 tog 1 0 0 0 0 1 Total 6 1 6 5 2 20 Causes of SSOs SSOs caused by roots (9) and grease (1) accounted for 50 percent of SSOS occurring from the District's sewer system between January 1, 2012 and December 31, 2016 as shown in Table 4. Of the remaining ten (10) SSOs, four(4)were caused by construction-related issues, two (2) were caused by pump station-related issues, two (2)were caused by operator error, and the remaining two were caused by other causes. Table 4:Causes of OCSD SSOs(111/2012-12/31/2016) Cause of SSO Number Numbert20 Percent of Total of SSO of SSOs In Local In System Regional System Blockage: Roots 9 0 45% Grease 1 0 5% Subtotal for Blockage 10 0 Construction-Related 2 2 20% Pump Station-Related 0 2 10% Operator Error 0 2 10% Structural 0 1 5% Other 1 0 5% TOTAL(ALL) 13 7 100% May 19,2017 7 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Review of Effectiveness of SSMP and Audit Narrative The following sections focus on evaluating the effectiveness of each chapter of the SSMP and provide a narrative of the audit findings. Chapter 1 —Prohibitions and Provisions WDR Requirement: The WDR does not require this section to be part of the SSMP. Audit Finding: This chapter explicitly documents all of the prohibitions and provisions included in the WDR and provides a means for the District Board to acknowledge and approve all provisions and prohibitions included in the WDR, not just Provision D.13 that requires the development and implementation of the SSMP. Chapter 2 -Goal WDR Requirement: The goal of the Sewer System Management Plan (SSMP) is to provide a plan and schedule to properly manage, operate, and maintain all parts of the sanitary sewer system. This will help reduce and prevent SSOs, as well as mitigate any SSOs that do occur. Audit Finding: As stated in the OCSD SSMP, the goal of the SSMP is to provide a plan and schedule for measures to be implemented to prevent SSOs. Overall, the programs, plans, systems, and practices the District employs to manage, operate, and maintain the sewer system resulted in a 12-month rolling average SSO rate that consistently remained at or below 1.15 SSOs per 100 miles of pipelines per year over the last two years. This indicates the District has been effective with achieving this goal. The District is in compliance with the Goal element requirement of WDR Provision D.13. Chapter 3—Organization WDR Requirement: The Sewer System Management Plan (SSMP) must identify., a. The name of the responsible or authorized representative as described in Section J of this Order. b. The names and telephone numbers for management, administrative, and maintenance positions responsible for implementing specific measures in the SSMP program. The SSMP must identify lines of authority through an organization chart or similar document with a narrative explanation; and C. The chain of communication for reporting SSOs, from receipt of a complaint or other information, including the person responsible for reporting SSOs to the State and Regional Water Board and other agencies if applicable (such as County Health Officer, County Environmental Health Agency, Regional Water Board, and/or State Office of Emergency Services (OES)). Audit Findings: The District is in compliance with the Organization element requirement of WDR Provision D.13. • The authorized representative is Mark Esquer, Collection Facilities Manager, O&M Division. May 19,2017 a Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL o The organization chart also shows both Jim Herberg and John Gonzalez as legally responsible officials (LROs). The State Water Resources Control Board CIWQS SSO database also indicates both Jim Herberg and John Gonzalez as LROs. o Ed Torres is not currently shown as a legally responsible official in the organization chart or in the State Water Resources Control Board CIWQS SSO database. OCSD may want to consider including Ed Torres as a legally responsible official since he ultimately oversees the Collection O&M crews responsible for pipeline and pump station emergency response, operations, and maintenance. • The District has assigned roles and responsibilities for development and implementation of specific measures in the SSMP program. Appendix C is up-to-date and includes an organization chart with line of authority indicating the names and telephone numbers for management, administrative, and maintenance positions responsible for implementing specific measures of the SSMP. Attachment C also includes a narrative explanation of the responsibilities of each of the positions. There are inconsistencies between the titles used on the Organizational Narrative versus those shown on the Program Organizational Chart making it challenging for someone outside of the OCSD organization to follow, yet both documents are mostly up-to-date and comply with the WDR requirement. o The title for the Principal Public Affairs Specialist needs to be updated to reflect a recent promotion. o The lines of authority for staff performing reliability testing for pump stations is not indicated on the organization chart or within the organization narrative. • Appendix P1 of the SSMP contains a SSO Response Flow Chart and Appendix P3 contains SSO Notification Procedures clearly documenting the chain of communication and notifications. Chapter 4—Legal Authority WDR Requirement: Each Enrollee must demonstrate, through sanitary sewer system use ordinances, service agreements, or other legally binding procedures, that it possesses the necessary legal authority to: a. Prevent illicit discharges into its sanitary sewer system (examples may include I/l, stormwater, chemical dumping, unauthorized debris and cut roots, etc.); b. Require that sewers and connections be properly designed and constructed; C. Ensure access for maintenance, inspection, or repairs for portions of the lateral owned or maintained by the Public Agency; d. Limit the discharge of fats, oils, and grease and other debris that may cause blockages, and e. Enforce any violation of its sewer ordinances. May 19,2017 9 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Audit Finding: The District is in compliance with the Legal Authority requirement of the WDR Provision D.13. Legal authorities satisfying the requirements of the WDR are included in the District's ordinances, Engineering Design Guidelines, and the Sewer Connection Application and Permit for Construction. The District has two ordinances providing legal authorities related to the WDR: • Wastewater Discharge Regulations, Ordinance No. OCSD-48 (OCSD-48) • Fats, Oils, and Grease Control Regulations Applicable to Food Service Establishments, Ordinance No. OCSD-25 (OCSD-25) OCSD-48 was adopted on February 24, 2016 and was effective on July 1, 2016. OCSD-48 replaced OCSD-39. OCSD-25 was passed on November 17, 2004 and was effective on January 1, 2005. These ordinances, along with the District's engineering design guidelines and connection permit, provide the District with the authority to prevent illicit discharges, require sewers be properly designed, limit discharge of fats, oils, and grease, and enforce violations of sewer ordinances. Table 5 identifies linkages to the District ordinances, Engineering Design Guidelines, and connection permit for each of the legal authority requirements. OCSD claims responsibility for maintaining and repairing the first four feet of local satellite agency pipelines connecting to OCSD sewers. In most cases, a satellite agency's pipeline connects to the District's sewer system at an OCSD structure providing the District with access to the portion of local agency sewer OCSD is responsible for maintaining and repairing. May 19,2017 10 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 5:Summary of OCSD Legal Authorities Requirement District Engineering Design Meets Ordinances Guidelines or WDR Connection Permit Require- ments? GENERAL am Prevent illicit discharges into the wastewater OCSD-48, 201 Yes collection system Limit the discharge of fats, oils, and grease OCSD-25,2.2 Yes and other debris that may cause blockages Require that sewers and connection be Chapter 12.2& 12.3 Yes properly designed and constructed Require proper installation, testing, and Chapter 12.4 Yes inspection of new and rehabilitated sewers Included in Project specifications for rehabilitated sewers LATERALS Clearly define District responsibility and District references Sewer Connection Yes policies California Civil Application and Permit Code 831. for Construction Ensure access for maintenance, inspection, or Not applicable. District does not own, operate, or repairs for portions of the service lateral maintain any portion of service laterals connecting owned or maintained by the District private buildings to District sewers. Control infiltration and inflow (1/1) from private OCSD-48,203 Yes service laterals FOG SOURCE CONTROL Installation of grease removal device(GRE) OCSD-25,2.5 Yes Design standards for GRE OCSD-25,4.2-4.3 Yes Maintenance and t3MP requirements OCSD-25,2.4& Yes 3.3 &4.5-4.6 Record keeping and reporting OCSD-25, 3.3& Yes 5.1 Authority to inspect grease producing facilities OCSD-25, 5.2-5.3 Yes ENFORCEMENT Enforce any violations of sewer ordinances OCSD-48,Article Sewer Connection Yes 6 Application Permit for Construction May 19,2017 11 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Chapter 5—Operation and Maintenance Program WDR Requirement: The Sewer System Management Plan (SSMP) must include those elements listed below that are appropriate and applicable to the Enrollee's system: a. Maintain an up-to-date map of the sanitary sewer system, showing all gravity line segments and manholes, pumping facilities, pressure pipes and valves, and applicable stormwater conveyance facilities; b. Describe routine preventive operation and maintenance activities by staff and contractors, including a system for scheduling regular maintenance and cleaning of the sanitary sewer system with more frequent cleaning and maintenance targeted at known problem areas. The Preventative Maintenance (PM)program should have a system to document scheduled and conducted activities, such as work orders; C. Develop a rehabilitation and replacement plan to identify and prioritize system deficiencies and implement short-term and long-term rehabilitation actions to address each deficiency. The program should include regular visual and TV inspections of manholes and sewer pipes, and a system for ranking the condition of sewer pipes and scheduling rehabilitation. Rehabilitation and replacement should focus on sewer pipes that are at risk of collapse or prone to more frequent blockages due to pipe defects. Finally, the rehabilitation and replacement plan should include a capital improvement plan that addresses proper management and protection of the infrastructure assets. The plan shall include a time schedule for implementing the short- and long-term plans plus a schedule for developing the funds needed for the capital improvement plan; d. Provide training on a regular basis for staff in sanitary sewer system operations and maintenance, and require contractors to be appropriately trained;and e. Provide equipment and replacement part inventories, including identification of critical replacement parts. Audit Finding: The District is in compliance With the Operation and Maintenance Program element of WDR Provision D.13. The primary measure of the effectiveness of the operation and maintenance program is SSO performance improvements over time. The District has sustained a 12-month rolling average SSO rate in the sewer system of less than 1.15 SSOS per 100 miles of sewer pipelines per year over the last two years, placing OCSD in the category of high- performing sewer systems. The Operation and Maintenance Program is a key contributor to the high level of SSO performance achieved in the last five years through the following efforts: • An aggressive sewer cleaning program on all pipes from 8 to 12 inches in diameter. This size class of pipes is cleaned on a 12 to 18-month schedule with higher-risk pipes and areas cleaned every 12 months and lower risk pipes and areas cleaned very 18 months. Known trouble spot sewer segments are cleaned on a 1-month or 3-month schedule. • A five-year cleaning cycle for all regional sewers, less than or equal to 42-inch diameter, and more frequent cleaning of known problem regional sewer pipe segments. Trouble spots and siphons are cleaned every 4 weeks to 3 months based on historical cleaning needs, which may include pipe segments larger than 42-inch diameter. May 19,2017 12 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • Systematic CCTV inspection of the sewer system on a 7-year cycle, beginning with the problematic and older portions of the system, enabling the District to identify and monitor structural deficiencies in the early stages of deterioration and determine appropriate corrective actions. • Well-trained collection system employees with all employees above the Maintenance Worker classification maintaining CWEA Collection System Maintenance certifications at or above levels required for their position. • Accurate and up-to-date mapping of the sewer system to support SSO response and preventive maintenance activities. District response crews also have access to stormwater drainage system mapping to support sewer overflow response and recovery. • A pump station maintenance and inspection program with a well-defined maintenance schedule, documented standard operating procedures, checklists, and daily SCADA data review. Operations and Maintenance Program findings include: • As noted previously, the District transferred approximately 170 miles of gravity sewers to East Orange County Water District. o The transfer included approximately 180 food service establishments connected to the pipelines. o The transfer also included a Combination JetterNacuum truck and all available maintenance and CCTV data and videos. The remaining pipelines the District currently owns amounts to approximately 369 miles of gravity sewer mains, 31 miles of force mains, and 15 pump stations. Figure 5 provides a breakdown of the remaining miles of gravity sewer pipelines into four pipe size categories. May 19,2017 13 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Figure 5:Miles of Gravity Pipelines Remaining in OCSD Sewer System 180 167 160 — N C 140 1a0 1 120 6 100 t10 80 17 63 "Y 60 N Y 20 4 0 — 8 inches 10 to IS inches 20 to 41 inches 42 inches and greater Diameter • The District has defined "regional" pipes as all pipelines that convey flow from two or more agencies. In some cases, OCSD has transferred pipe segments, historically owned and operated by the District, back to local agencies when those pipes only serve that one agency. There are exceptions to this rule. For example, the City of Huntington Beach is not equipped to handle the maintenance of a 30-inch diameter pipeline and pump station serving only that City. OCSD is going to continue operating and maintaining those assets. • OCSD is going to release a new contract for cleaning of the smaller diameter pipes (less than or equal to 12 inches diameter) remaining in the District's collection system and is considering cleaning these pipelines on a 12-month cleaning cycle. According to GIS, this is approximately 24 miles of pipelines. o Contractors are provided a Microsoft Excel Spreadsheet to document cleaning activities and the amount and type of material found during cleaning. o Contractors are asked to document any "out-of-the-ordinary" issues found at the manholes in a general comments field. Any issues contractors identify are reviewed by OCSD inspectors and are either assigned to Collection O&M or to a contractor to address. • As noted in Appendix 11 of the SSMP, all pipelines greater than 12-inch diameter and less than or equal to 42-inch diameter are cleaned at least once every 60 months. Pipe segments in this size class with known maintenance issues are cleaned more frequently based on historical knowledge and experience. OCSD uses a tire cleaning similar in nature to balling. The tire diameter is slightly smaller than the diameter of the pipe and the hydraulic force of the water around the tire flushes the pipe segment clean. The tire May 19,2017 14 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL provides the added benefit of serving as a proofing device by verifying an object of similar diameter to the pipe is able to pass through the entire pipe segment. • The District has developed a master schedule for system-wide CCTV inspection. The collection system has been divided into five areas. The District currently has a backlog of CCTV inspection and made one of the five areas larger than the other four to address the backlog. The CCTV inspection schedule is going to be placed into the Maximo CMMS in mid-2017. o OCSD obtains a CCTV contract for all pipes and all sizes. The contract provides different units costs for working in primary versus secondary roadways, including costs for traffic control. o The CCTV contract is only for conventional CCTV inspection. Multi-sensor inspection would require a separate contract. • Force main inspection is still and will likely continue to remain problematic due to limited access. OCSD has used Smartball to assess the condition of some force mains and in some cases has performed external inspection on metallic pipelines. OCSD should consider developing a programmatic force main inspection and condition assessment plan that evaluates current force main access and materials, identifies potential improvements to improve access, and documents the best approach currently available to assess condition given the current state of maintenance accessibility and material specific to each force main. • Siphons are inspected using a proofing tool (e.g., tire). CCTV is not performed on siphons since the data collected yields no value since the pipeline is fully submerged. • OCSD has a two-tier approach to manhole inspection. o A separate OCSD manhole inspection crew performs Tier 1 inspections using the Trimble mobile data unit. A Tier 1 inspection is a short-form inspection designed to determine whether the condition is acceptable or if additional inspection is required. o OCSD hires a contractor to perform Tier 2 manhole inspections using National Association of Sewer Service Companies (NASSCO) Manhole Assessment and Certification Program (MACP) standards for manhole inspection. A Tier 2 inspection gathers coded observations of specific manhole maintenance, structural, and construction defects. This data becomes the basis for remediation decision-making and, if required, remediation design. o The overall goal is to inspect all manholes at least once every seven (7) years, with an internal goal to achieve this on a 5-year cycle. • In January 2015, the District implemented Maximo Computerized Maintenance Management System (CMMS) to plan, schedule, and document maintenance activities performed on the sewer system as well as to support documentation of important information collected during maintenance at the asset level. The audit team reviewed a random set of Collection O&M sewer cleaning and pump station maintenance work May 19,2017 15 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL orders in the Maximo CMMS to determine the accuracy, completeness, and usefulness of the data collected. The audit team also reviewed the maintenance supervisor dashboards to see how supervisors are interacting with the dashboard to manage work activities. o Preventive maintenance routes and schedules were migrated from the CASSWorks CMMS into the Maximo CMMS. CASSWorks did not have step-by- step protocols that could be migrated into Job Plans in Maximo. Maintenance Planning staff are developing Job Plans in Maximo. Ideally Job Plans would be updated over time to reflect actual protocols followed by Collection O&M crews in the field. This will require feedback from Collection O&M crews back to Maintenance Planning. One issue with the Job Plans for pump station crews is the lack of connectivity in the pump stations. Pump station crews also perform these activities so often, there is not a need to read Job Plans to be able to perform the work. The District should develop a plan to update generic Job Plans to become station-specific to improve the ability of the organization to pass this knowledge to future Collection O&M pump station maintenance employees. Once updated, the only time these Job Plans would need to be modified are when something changes at the station (i.e., different equipment purchased, different materials used for upkeep, etc.). The other reason is if something is wrong and is brought to the attention of the Maintenance Planner such as a safety issue or something to increase operational efficiency. The key is to invest the time up front to ensure the Job Plans have appropriate detail and are correct. This may require multiple visits to the pump station to ensure everything is covered. The District may want to consider revisiting Job Plans once every five years to ensure everything is still the same and no further improvements can be made. o OCSD is using time-based work order scheduling. Work orders are generated whether previous work orders were completed or not. During the early implementation phase, work orders that were late could be cancelled and cancelled work orders would not be counted in the PM Compliance performance metric as being past due. This created the incentive to cancel late work orders to achieve PM Compliance goals. Recent reporting improvements now count cancelled work orders, removing the incentive to use this approach. o OCSD is using a centralized maintenance planning unit to plan maintenance activities and create planned Maximo work orders. The overall plan for system maintenance is clearer now. Communication through the chain of command is improving. Documentation of work activities has improved. • Maintenance planners (Instrumentation Planner, Electrical Planner, and Collection O&M Planner) meet weekly to discuss upcoming work to take advantage of opportunities to schedule maintenance activities between different trades working at a site. May 19,2017 16 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • Maintenance planners create job plans, issue work, and help supervisors schedule work if needed. Maintenance planners also generate service requests. • Supervisors make assignment to crews. Supervisors also review service requests for validation and conversion into work orders. This is a current process bottleneck. The District needs to improve this process work flow or have the ability to delegate authority for review of service requests in the case where supervisors are not available for short fuse service requests. o The District has an analyst generating performance reporting for the whole department. o The graphical user interface of the first generation of Maximo CMMS was problematic. The most recent version Maximo 7.6 has an improved interface and is being built while the District is using it. There is administrative burden associated with using the new system, yet the District is benefiting from the improved documentation and access to data. o Maximo provides the ability to document cleaning activities at the asset level, including measurement of the amount and type of debris collected during cleaning activities in cubic yards. Data collection appears to be inconsistent between crews. The District may want to consider developing guidance to standardize data collection practices for Collection O&M crews. For example, sewer cleaning crews should utilize the same terminology and volume quantification practices for documenting the type and amount of material removed from sewer pipe segments during sewer cleaning. • The District has a District Reliability Engineering and Maintenance (DREAM)Team that performs reliability testing program for pump station mechanical equipment consisting of monthly vibration and infrared thermography testing at all 15 pump stations. o The reliability testing is performed following protocols to ensure operating conditions are consistent to ensure the results can be trended appropriately. o Reliability data is uploaded into the Emerson AMS Machinery Health Manager software which supports data management, trending, and analysis. A Condition- Based Monitoring (CBM) Summary is generated monthly. o OCSD uses the results to generate proactive maintenance work orders. The reliability testing enables OCSD to detect issues occurring at the microscopic level. Repairs are performed before significant damage occurs on the equipment, reducing the downtime of the equipment and the extent of repairs. o After repairs are completed, new baseline vibration and infrared thermography readings are collected. o Ninety-five percent(95%)of the testing is now performed by District staff. o The District is considering expansion of the program to include infrared thermography of electrical assets and ultrasonic testing (UT). o District staff obtain reliability training from a variety of sources: • Vibration Institute (Vibration) May 19,2017 17 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • Mobius Institute (Vibration) • Snell (Infrared thermography) • Noria (oil analysis) • Trico (oil analysis) • Descase (oil analysis) • Maintenance and Reliability Conference • International Maintenance and Vibration Conference o The District owns a Machinery Fault Simulator enabling staff to train on reliability testing techniques. • Risk Assessment—OCSD does not continuously update collection system risk as new CCTV data is collected. This has evolved from being a best management practice to becoming a standard industry practice. OCSD recently purchased Innovyze InfoMaster, which has risk assessment functionality. OCSD should move forward with configuring InfoMaster to calculate asset risk and continuously update the risk assessment for all pipes in the sewer system as new CCTV data is collected. • Decision-Making Guidelines—OCSD continues to evaluate the maintenance and renewal needs of sewer pipelines manually and on a case-by-case basis. OCSD has the opportunity to develop a standardized approach to evaluating maintenance and CCTV data and determine maintenance and renewal actions (i.e., repair, replace, CIPP, upsize, etc.)to address asset deficiencies as maintenance and CCTV data is collected. OCSD also has the opportunity to configure InfoMaster software, recently purchased by the District, to leverage its information analysis tools to support maintenance and renewal decision-making and documentation. • Estimating Renewal Needs—OCSD has estimated long-term asset renewal needs and has incorporated these estimates into OCSD's budget and rate structure. These estimates were based on assumptions for useful life of collection system assets. OCSD has condition data for almost all collection system assets. OCSD should consider using this data to calculate actual asset reliability rates using available CCTV inspection data and then updating the renewal needs funding forecast. OCSD can then begin to understand whether the current funding level is adequate to sustain desired service levels and risk tolerances. • CCTV Inspection Schedule—OCSD has collected CCTV inspection data for almost all collection system gravity mainline assets. OCSD should consider moving towards a risk- based CCTV monitoring schedule for future inspections. High-risk pipes would be inspected more frequently (e.g. 5 to 10-year schedule)and low risk pipes less frequently (e.g., 10 to 20 year schedule). • Funding — The District has the funding in place to address all forecasted capital improvement needs and emergency needs. The District as a total reserve of$518 million that can be applied to any District infrastructure need. The District has a $57 million catastrophic reserve. The CIP reserve includes funding for 50 percent of the forecasted capital improvement needs over the next 10 years. This includes an assumption for rehabilitation and replacement of two percent of the value of the collection system annually. May 19,2017 16 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • The District is in the process of developing a Facilities Master Plan that will include a 20- year forecast of collection system capital improvement needs as well as the identification of operations, maintenance, and capital improvement needs to address growth as well as condition-related deficiencies. The results of the Facilities Master Plan will become the basis for the next 5-year Rate Plan for the period from Fiscal Year 2019 through Fiscal Year 2024. The Facilities Master Plan will be a collaborative process and will include input from Collection System O&M staff. • Collection O&M staff have implemented a stretch exercise routine as part of routine beginning of workday activity. The practice is leading to reduced strains and improved safety. Chapter 6—Design and Performance Provisions WDR Requirement: a. Design and construction standards and specifications for the installation of new sanitary sewer systems, pump stations and other appurtenances; and for the rehabilitation and repair of existing sanitary sewer systems; and b. Procedures and standards for inspecting and testing the installation of new sewers, pumps, and other appurtenances and for rehabilitation and repair projects. Audit Finding: The District is in compliance with the Design and Performance Provisions elements of WDR Provision D.13 and has appropriate design and construction standards and specifications as well as procedures and standards for inspection and testing of new sewers and rehabilitation and repair projects. OCSD has a process for updating OCSD's Master Specifications, Design Guidelines, and other Design Standards. OCSD staff can provide input using an Engineering Field Feedback form and the Sharepoint document management system. Project managers for design and construction projects are required to provide a "lessons learned" report at the end of a project, which may include recommended changes to standards and specifications. Significant and proposed changes to standards are submitted to the Engineering Department Advisory Council (EDAC) for review and approval. Less significant changes do not require EDAC approval and are published by the Engineering and Construction Division as finalized. Chapter 9 of the SSMP references Appendix M, which includes a description of the criteria used by the District to identify hydraulic deficiencies in the system and to initiate an evaluation to determine whether capital improvements are needed to address hydraulic deficiencies. The depth of flow versus diameter criteria included in the District's Design and Construction Requirements for Sanitary Sewers is more conservative than the criteria described in Appendix M for evaluating and designing improvements to the existing system (See audit narrative for Chapter 9 below). The District should consider updating Appendix M to more clearly define the distinction between project initiation criteria used by Planning Division to evaluate hydraulic deficiencies versus design criteria used to design collection system capital improvements. The update should also clarify discrepancies between the depth of flow to diameter design criteria provided in the District's Design and Construction Requirements for Sanitary Sewers versus those described in Appendix M. The District should also update the Design and Construction May 19,2017 19 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Requirements for Sanitary Sewers to include depth of flow versus diameter parameters for the replacement of existing sewer pipelines in areas that are built-out to align with Appendix M. On existing pipelines, the District will have historical flow data, and in some cases hydraulic modeling results from the District's dynamic hydraulic model, enabling the District to make informed and risk-based decisions with depth of flow versus diameter parameters that are less conservative than those employed for new sewers in undeveloped areas. Chapter 7—Overflow Emergency Response Plan WDR Requirement: Each Enrollee shall develop and implement an overflow emergency response plan that identifies measures to protect public health and the environment. At a minimum, this plan must include the following: a. Proper notification procedures so that the primary responders and regulatory agencies are informed of all SSOs in a timely manner,' b. A program to ensure an appropriate response to all overflows; C. Procedures to ensure prompt notification to appropriate regulatory agencies and other potentially affected entities (e.g. health agencies, Regional Water Boards, water suppliers, etc.) of all SSOs that potentially affect public health or reach the waters of the State in accordance with the MRP. All SSOs shall be reported in accordance with this MRP, the California Water Code, other State Law, and other applicable Regional Water Board WDRs or NPDES permit requirements. The Sewer System Management Plan (SSMP) should identify the officials who will receive immediate notification; d. Procedures to ensure that appropriate staff and contractor personnel are aware of and follow the Emergency Response Plan and are appropriately trained; e. Procedures to address emergency operations, such as traffic and crowd control and other necessary response activities;and f. A program to ensure that all reasonable steps are taken to contain and prevent the discharge of untreated and partially treated wastewater to waters of the United States and to minimize or correct any adverse impact on the environment resulting from the SSOs, including such accelerated or additional monitoring as may be necessary to determine the nature and impact of the discharge. Audit Finding: The District is in compliance with the Overflow Emergency Response Plan requirement of WDR Provision D.13. The District has developed and implemented an overflow response capability, procedures, and training program to effectively respond to SSOs and to promptly communicate and notify responsible personnel and regulatory authorities as necessary. Appendix P1 -SSO Response Flow Chart Includes a flow chart of the overall response process identifying SSO response activities from receipt of the call through response, clean-up, and field reporting. It was last updated on 12/8/2016. Appendix P2—Laboratory, Monitoring, and Compliance(LMC) SSO Response Procedure: Includes procedures for the LMC primary responder including protocols for responding to notification, field visitation, and reporting. It was last updated on 11/2/2016. References to this May 19,2017 20 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL appendix in SSMP Chapter 7 reference Environmental Compliance versus LMC. Also, the cover page for this appendix is titled SSO Notification Procedures and should be updated to SSO Response Procedure. Appendix P3—SSO Notification Procedures: Includes protocols for notifications during both work hours and after-hours. In all cases, Control Center receives reports of sewer overflows, initiates documentation, and notifies appropriate OCSD Collection O&M staff if the SSO is determined to be in the OCSD service area. OCSD utilizes a mix of communication methods (i.e. PNA pager, emails, or both)to notify appropriate OCSD staff of the event. OCSD also has protocols to notify external contacts from Orange County Public Works, Orange County Health Care Agency, and Region Water Quality Control Board. Appendix Q1 - OCSD SSO Emergency Response Plan Description: Provides a narrative description of the overall emergency response program. It may be more appropriate to include this material as part of Chapter 7 of the SSMP. Appendix Q2—870-GEN-08 SOP: Provides Collection O&M emergency response crews with step-by-step instructions for responding to an SSO event including protocols for receiving the call from Control Center, spill verification, communication, containment, blockage removal, clean-up, field reporting, and data management for field data collected. Appendix R—Sewer Spill Estimation and Simulation Training: Provides guidance for estimating sewer overflow volume. Together these documents provide procedures to the key parties involved in SSO response: Control Center, Laboratory, Monitoring, & Compliance, and Collection O&M. As documented in the 2013 W DR Audit, the various attachments documenting SSO response protocols are fragmented. Laboratory, Monitoring, &Compliance staff maintain a spreadsheet in ECAP with milestones for SSO reporting to support meeting regulatory deadlines. As noted in the 2010 SSMP audit, SSO response documents still do not address overflows from pump stations and force mains. Overflows from these locations can create significant volumes of sewage in a short amount of time and benefit from having contingency plans in place in the event of a failure. The District may want to include a section in the next SSO Emergency Response Plan update focused on pump stations indicating each pump station, location, whether it is equipped with alarms, on-site back-up pumps, and back-up power generators. For any stations that lack back-up pumps and generators, the plan should specify a protocol for prompt delivery of portable pumps or generators in the event of a station failure. In addition, the wet well capacity at each pump station should be provided along with an estimate of how much storage time the wet wells would provide under different flow conditions. It should identify where an SSO will occur if a station fails and where bypass intake and discharge should be set up. Finally, the plan should identify an operation or bypass approach in the case of force main failure and should evaluate whether a more detailed response or contingency plan is necessary for larger pump stations and forcemains or complicated pump station and force main operations. May 19,2017 21 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL As noted in the 2015 SSMP audit, the Control Center staff has a training binder for training new Control Center staff on how to appropriately document and communicate customer calls for potential SSO events. This document is an important training tool and guide for Control Center staff and is not referenced in the SSMP. During the audit interviews, the audit team selected four SSO reports randomly and reviewed reporting with OCSD staff during the audit interviews. SSO reporting for CIWQS SSO Event ID 814162, 818788, 824417 and 832505 were reviewed. The audit confirmed that documentation for these SSOs including the initial call, field report, spill volume calculation, and certified CIWQS SSO report were stored in ECAP following reporting protocols. The documentation uploaded to CIWQS includes all of the documentation OCSD has compiled and stored in ECAP for each of these events. A detailed review of the CIWQS report for each of these SSOs noted the following: • CIWQS Spill ID 814162 o Documentation loaded into CIWQS for Spill ID 814162 includes: • Spill volume calculation backup documentation; • Email communications during the event; • Field report; • Mapbook page of where the spill occurred with notations; • Photos from the spill response; • A sketch with notes documenting measurements for use with spill volume estimation; and, • Certified spill report. o The 'Spill corrective action taken" noted in the spill report states 'Inspected Sewer Using CCTV to Determine Cause". The cause was determined to be root intrusion. OCSD may want to consider adding additional notes indicating the current cleaning frequency and whether the cleaning frequency was increased as a result of this event of whether any other corrective actions were implemented to reduce the likelihood of a future SSO at this location. • CIWQS Spill ID 818788 o Documentation loaded into CIWQS for Spill ID 818788 includes: • Emails communications during the event; • Field report; • As-Built drawings and Mapbook page; • Photos documenting the spill response; • A sketch of the flow path with measurement to support spill volume estimation; • Two certified spill reports documenting changes made to the certified report over time o The 'Spill corrective action taken" notes spill response and clean-up activities, yet does not describe the corrective actions taken to reduce the likelihood of a future SSO at this location. May 19,2017 22 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • CIWQS Spill ID 824417 o Documentation loaded into CIWQS includes: • Spill calculation; • Email communications during the event; • Field report; • Map showing location of blockage and location of house where spill discharged; • Photos of extent of discharge into the house; • Certified report • A 20-page Spill Report documenting the spill event, follow-up investigation, conclusions and corrective actions. o OCSD may want to consider providing guidance to the homeowner to install a backflow preventer. OCSD may also want to perform an analysis of low lying areas to determine if there are other high-risk sites that will overflow into private buildings versus discharging from a manhole. • CIWQS Spill ID 832505 o This sewer overflow was outside of the audit window, yet due to the magnitude of the event the audit team decided to review the event as part of this audit. o Documentation loaded into CIWQS includes: • Spill volume calculation backup documentation; • Email communications during the event; • Field report; • Maps showing the blockage location, locations where spill discharged from the collection system, and location where the spill entered the storm drain; • Photos of spill response activities; • A copy of the SSO Technical Report required since the SSO was greater than 50,000 gallons. • Two certified spill reports documenting changes to the report over time. o The SSO Technical Report provides strong backup documentation for the SSO volume estimate, documentation of impacts to surface waters, and final corrective actions including the scheduled replacement in Fall 2017 of the three cast iron pipe segments with tuberculation. • The report documented the use of unsterilized water bottles for water sample collection, yet the report did not mention a corrective action to ensure the availability of sterilized water bottles in the future. With regards to spill response capabilities and training, OCSD has more than adequate training, equipment, and supplemental contractor support available to address large and complex sewer overflow events, if they occur. OCSD has created an SSO training facility and provides access to the facility for use by other agencies in the region. May 19,2017 23 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL The District has wet weather preparedness protocols in place to anticipate potential issues during wet weather events and to implement contingency plans including the purchase of bypass pumping and discharge hose required to accomplish bypass pumping. For example, a high risk section of pipe in Carbon Canyon area led to the development of a contingency plan to bypass the pipe, including the identification of the pumping equipment and bypass hose required to accomplish bypass. OCSD is considering the purchase of discharge hose on a motorized wheel. Another example is Bitterpoint, where equipment is staged as a contingency measure. The District has a High Flow Emergency Response Plan (HFERP)for the Collection System for responding to high influent wastewater flows. This response plan identifies speck preparation and response activities as part of either normal shift staffing or, if activated, the Incident Command System (ICS). The HFERP identifies a set of codes and criteria for activating these codes. The codes ranges from Code Blue, activated by the forecast of a heavy storm within the next 7 days, to Code Red, indicating the flow has exceeded the capacity of the 120-inch outfall and lack of availability of any remaining capacity within the collection system. Each code is associated with a response of either normal shift staffing or activation of ICS. Each code has a set of protocols for preparation and response actions. The recent intense rainstorms necessitated the activation of a HFERP Code Blue. OCSD performed outreach to member agencies to manage flows coming into the system and staff performed preparation and response activities as identified in the HFERP. The District was able to convey all flows through the collection system and treatment plant in through the outfall without a spill. OCSD has a strong set of protocols and training program for emergency operations. The District performs periodic mock drills to assess staff response to various emergency situations. The District also leverages planned shutdowns to simulate infrastructure failure conditions. For example, in 2015 there was a planned power outage at Plant 2 for two hours. District staff utilized this as an opportunity to simulate the loss of SCADA communications and protocols to manage this type of event. Lessons learned included enhancements to the sequencing of shutdown and startup of facilities. The District has a set of seven contracts with contractors and vendors, known as the 7-Pack", to support emergency response needs. In a true emergency, OCSD staff are provided the authority to enter into agreements with any service providers deemed necessary. If needed, OCSD staff has a database of over 1,000 emergency vendors and contractors to access if additional support required in a true emergency. Chapter 8—FOG Control Program Plan WDR Requirement: Each Enrollee shall evaluate its service area to determine whether a FOG control program is needed. If an Enrollee determines that a FOG program is not needed, the Enrollee must provide justification for why it is not needed. If FOG is found to be a problem, the Enrollee must prepare and implement a FOG source control program to reduce the amount of these substances discharged to the sanitary sewer system. This plan shall include the following as appropriate: May 19,2017 24 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL a. An implementation plan and schedule for a public education outreach program that promotes proper disposal of FOG; b. A plan and schedule for the disposal of FOG generated within the sanitary sewer system service area. This may include a list of acceptable disposal facilities and/or additional facilities needed to adequately dispose of FOG generated within a sanitary sewer system service area; C. The legal authority to prohibit discharges to the system and identify measures to prevent SSOs and blockages caused by FOG; d. Requirements to install grease removal devices (such as traps or interceptors), design standards for the removal devices, maintenance requirements, BMP requirements, record keeping and reporting requirements; e. Authority to inspect grease producing facilities, enforcement authorities, and whether the Enrollee has sufficient staff to inspect and enforce the FOG ordinance; f. An identification of sanitary sewer system sections subject to FOG blockages and establishment of a cleaning maintenance schedule for each section; and g. Development and implementation of source control measures for all sources of FOG discharged to the sanitary sewer system for each section identified in (0 above. Audit Finding: Similar to the 2015 WDR Audit, this audit review finds the District in compliance with WDR requirements for a FOG Control Program and has a very effective program consisting of the following components: • Consistent and effective source control of active permitted food service establishments (FSEs). • Implementation of GIS information tools to support FOG investigations. • Aggressive sewer cleaning of all areas known to have a history of FOG issues. • An effective public outreach education program for proper disposal of FOG through education at public events, website, social media, and news letters. The District increases promotion prior to holiday events where grease can be an issue (e.g., Thanksgiving and Christmas holidays). • A FOG ordinance providing adequate FOG enforcement authorities. • Adequate staffing to accomplish FOG program inspections and enforcement as required. • Close coordination between source control and collection system operations and maintenance staff to investigate FOG issues and determine appropriate source control and maintenance corrective actions to address issues. Over the past five years, the District has only experienced one (1) grease-related sewer overflow, as shown in Table 6. This SSO event occurred in an 8-inch sewer main that spilled 73 gallons. This is level of performance is a strong indicator that the District's FOG Control Program is effective at controlling grease issues in the District sewer mainlines. It is important to note this level of performance was achieved prior to the transfer of local sewers. May 19,2017 25 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 6:Grease-Related SSOs Year 2012 2013 2014 2015 2016 2017 1 Total YTD Number of Grease-related SSOs 1 0 0 0 0 0 1 In August 2016, most of the smaller diameter sewer mains were transferred from the District's sewer system to East Orange County Water District, along with 180 of the 220 food service establishments the District was inspecting as part of the District's FOG program. Currently, the District has 40 FOG program permits being inspected as part of the District FOG program. Overall, the risk of sewer overflows due to grease blockages has been dramatically diminished with the transfer of the local sewers. Chapter 9—System Evaluation and Capacity Assurance Plan WDR Requirement: The Enrollee shall prepare and implement a capital improvement plan (CIP) that will provide hydraulic capacity of key sanitary sewer system elements for dry weather peak Flow conditions, as well as the appropriate design storm or wet weather event. At a minimum, the plan must include: a. Evaluation:Actions needed to evaluate those portions of the sanitary sewer system that are experiencing or contributing to an SSO discharge caused by hydraulic deficiency. The evaluation must provide estimates of peak flows (including flows from SSOs that escape from the system) associated with conditions similar to those causing overflow events, estimates of the capacity of key system components, hydraulic deficiencies (including components of the system with limiting capacity) and the major sources that contribute to the peak flows associated with overflow events; b. Design Criteria: Where design criteria do not exist or are deficient, undertake the evaluation identified in (a) above to establish appropriate design criteria; and C. Capacity Enhancement Measures: The steps needed to establish a short- and long-term CIP to address identified hydraulic deficiencies, including prioritization, alternatives analysis, and schedules. The CIP may include increases in pipe size, 1/1 reduction programs, increases and redundancy in pumping capacity, and storage facilities. The CIP shall include an implementation schedule and shall identify sources of funding. d. Schedule: The Enrollee shall develop a schedule of completion dates for all portions of the capital improvement program developed in (a)-(c) above. This schedule shall be reviewed and updated consistent with the Sewer System Management Plan (SSMP) review and update requirements as described in Section D. 14. Audit Finding: Overall, the District's approach to system evaluation and capacity assurance has proven to be effective, as evidenced by no capacity-related SSOs occurring since before January 2007. The District is in compliance with the System Evaluation and Capacity Assurance element of the SSMP. The District performed a system evaluation and capacity assurance analysis and developed a plan to address deficiencies identified as part of the 2006 Strategic Plan Update. This analysis May 19,2017 26 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL was reviewed and updated as part of the development of the 2009 Facilities Plan. The evaluation performed as part of the 2006 Strategic Plan Update identified project initiation criteria for system evaluation and capacity assurance. Projects identified to address capacity issues in 2006 were reviewed in 2009 and in some cases were eliminated or deferred indefinitely due to revisions in flow projections or corrections/changes to the modeled network. The District is currently in the process of developing a new capacity assessment of its collection system (Project PS 15-08)that includes an extensive flow monitoring program and hydraulic model update to assess the system's capacity to convey current and projected sewer flows. OCSD has implemented activities to manage flows in areas with known capacity issues. Activities to manage flows include flow diversion, flow bypass, and field monitoring by OCSD staff during high flow events. Flow management protocols are incorporated into the District emergency response procedures. The District has also incorporated high flow scenarios in emergency response preparedness exercises. Based on the results and recommendations from PS 15-08, Collection System Capacity Study, the District may develop a field monitoring plan to strategically collect additional flow data. This strategic data collection may or may not include areas previously identified; however, it would take into account pipes that have the potential to become hydraulically deficient. Since surcharging or overflows are generally not expected to occur in these sewers, except under extreme rainfall events exceeding the design storm, monitoring should focus on wet weather periods exceeding design storm conditions. The District's extensive flow monitoring program conducted during the 2016-2017 FY period, in conjunction with the PS 15-08, captured significant storm data which will identify areas currently in danger of surcharging. Comparison of those areas with the hydraulic model results will help to validate the model and develop CIP recommendations. Based on the results and recommendations of PS 15-08, District staff will determine whether or not on-going field monitoring of potential hydraulically deficient areas is beneficial. If implemented, the field monitoring program should be documented and referenced in future SSMPs. The SSMP and referenced documents such as the 2006 Strategic Plan Update, the 2009 Facilities Plan, and Fiscal Year Budgets describe capital improvement projects for capacity enhancement. Some of the identified projects have been completed and others deferred for a variety of reasons. It is not easy to determine the status of each project because the information is contained in various documents. Since the last SSMP Audit, the District has updated the table in Appendix M that lists the capacity-related CIP projects that were identified in the 2006 Strategic Plan Update, the 2009 Facilities Plan, or in other studies, however, the original source of the recommendation to perform the project is not listed in the table. The schedule and status of each project has been documented. Ongoing status refers to projects in either the design or construction phase, and could be further clarified in future updates. Anticipated completion dates, as required in the WDR D.13 viii (d)— System Evaluation and Capacity Assurance Plan, are not listed. For projects that have been deferred and/or are not currently included in the District's CIP, the table should include the reason for the deferral (e.g., reduced flows, lower growth projections, acceptable level of risk, etc.). This table will continue to be updated annually and included in the SSMP. May 19,2017 27 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Evaluation OCSD's Capital Improvement Program is updated annually, in alignment with the budgeting process. The District is currently in the process of developing a new capacity assessment of its collection system (Project PS 15-08)that includes an extensive flow monitoring program and hydraulic model update to assess the system's capacity to convey current and projected sewer flows and to assess potential impacts on the system due to climate change (e.g. design storm selection and analysis). The District is planning to include an I&I evaluation and monitoring of dry weather flows to re-calibrate the hydraulic model. Once PS 15-08 is complete, the District intends to annually update the model network. OCSD has seen a decrease in sewage flows associated with economic conditions and water conservation efforts of the local water agencies. OCSD also has very strict/robust bypass requirements for construction projects, to minimize risk of spills. OCSD does permit dry weather urban run off diversions, which are assessed for hydraulic flow and capacity issues and approved on a case by case basis. District staff meet monthly with member agencies to discuss ongoing interagency issues (e.g. flow monitoring, I&I, future development projects). The District is a reviewer of CEQA documents for new development projects. Dry weather projected flows are checked against the hydraulic model to determine potential capacity constraints. The updated hydraulic model being developed as part of PS15-08 will include a tool in GIS that will identify potential capacity projects that may be triggered through the development review process. Once a project is identified to address a capacity deficiency, the OCSD Planning Division defines and prioritizes potential projects to remediate the capacity deficiency and works with the District's Design group on the timing for project delivery to ensure staffing levels can accommodate project recommendations. The schedule and budget for projects are managed by Division 750 (Project Management). Operational changes can impact capacity availability, e.g. diversion of sewage from one service area to another. The hydraulic model is run in those cases to assess ability of the system to handle diverted flows. May 19,2017 28 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Design Criteria The design criteria for the wastewater collection system is defined in the District's master specifications and the District's Design and Construction Requirements for Sanitary Sewers, also referred to as the Design Guidelines. The Design Guidelines include requirements for depth of flow versus diameter(Did) in sewer pipe'. Diameter of Pipe (d) Max Depth vs Diameter 8 inches to 18 inches 0.50 21 inches to 60 inches 0.75 Over 60 inches 0.75 This criteria is considered to be very conservative and the District currently only applies these parameters on sewer pipes in new developments. In addition, Appendix M of the SSMP describes project initiation criteria the District uses to evaluate potential hydraulic deficiencies to trigger analysis of capital improvement alternatives designed to address the deficiency. Project initiation criteria includes a depth to diameter ratio and allowable surcharge based on depth of pipe, using a 10-year design storm. Smaller sewers are determined deficient when the ratio of peak depth of flow to pipe diameter is equal to or greater than 1.0. When redesigning sewers larger than 12 inches, the desired ratio of the peak depth of flow to pipe diameter(d/D) is equal to 1.0. For sewer with a diameter of 12 inches or less, the desired d/D is equal to 0.75. The District should consider updating Appendix M to more clearly define the distinction between project initiation criteria used by Planning Division to evaluate hydraulic deficiencies versus design criteria used to design collection system capital improvements. The update should also clarify discrepancies between the depth of flow to diameter design criteria provided in the District's Design and Construction Requirements for Sanitary Sewers versus those described in Appendix M. The District should also update the Design and Construction Requirements for Sanitary Sewers to include depth of flow versus diameter parameters for the replacement of existing sewer pipelines in areas that are built-out to align with Appendix M. On existing pipelines, the District will have historical flow data, and in some cases hydraulic modeling results from the District's dynamic hydraulic model, enabling the District to make informed and risk-based decisions with depth of Flow versus diameter parameters that are less conservative than those employed for new sewers in undeveloped areas. Hydraulic deficiencies exceeding project initiation criteria are brought to the attention of the Design Group Managers and any variances from the criteria are discussed and documented in a technical memorandum. The Collection System Capacity Assessment Study(PS-15-08)will evaluate the current project initiation criteria used to evaluate hydraulic deficiencies and will determine if changes need to be made to design storm selection, based on an evaluation of 'Design and Construction Requirements for Sanitary Sewers, OCSD, November 2014, Page 12-7. May 19,2017 29 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL actual wet weather events over the past 10 years and potential changes in wet weather patterns due to climate change. Capacity Enhancement Measures OCSD maintains a short and long term CIP, prioritized in the schedule based on need and available funding. The District is implementing a risk model in association with the condition assessment work that will incorporate capacity projects identified to develop a prioritized project list. Priorities are checked annually during the budgeting process. Project justification descriptions identify whether a project is capacity related, or partially capacity related. In 2006, OCSD established Ordinance OCSD-27, which instituted a consolidated revenue district and applies fees and charges uniformly throughout the service area, with the exception of IRW D (Revenue Area 14)which is fully funded by IRWD. OCSD uses an empirical model to distribute its available revenues among projects, and develop schedules for the CIP components. Schedule The CIP is updated annually and the Budget Process, with upcoming dates, is provided in Appendix U of the SSMP. Projects are initiated by the identification of issues (e.g. condition, capacity, regulatory requirements, etc.) and a rough order of magnitude cost is determined based on a preliminary project scope for each project identified. The cashflow of these projects, as well as existing active projects are then compared against budget and resource constraints and projects are then prioritized to meet these constraints. The CIP list indicates the reference number and name of the project and anticipated fiscal year for the start of the project. Those projects that have been started are noted as on-going in Appendix M; however more detail is noted in the CIP. Chapter 10—Monitoring, Measurement, and Program Modifications WDR Requirement: The Enrollee shall: a. Maintain relevant information that can be used to establish and prioritize appropriate Sewer System Management Plan (SSMP) activities; b. Monitor the implementation and, where appropriate, measure the effectiveness of each element of the SSMP; C. Assess the success of the preventative maintenance program; d. Update program elements, as appropriate, based on monitoring or performance evaluations;and e. Identify and illustrate SSO trends, including: frequency, location, and volume. Audit Findings: The District is maintaining relevant information that is used to establish and prioritize appropriate SSMP activities. Overall SSMP Performance: The primary indicators utilized to measure and monitor the success of SSMP implementation include the following performance indicators: • SSOs per 100 miles per year: Goal is less than 2.1 SSOs per 100 miles per year May 19,2017 30 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • Time to contain flow: Goal is to contain SSOs within 5 hours. • SSO response time: Goal is to respond to all SSOs within 1 hour of notification. Each of these indicators are tracked and communicated to the District Managers and District Board monthly. Organizational units responsible for various SSMP elements and SSMP activities are tracking relevant data required to manage operational units, SSMP programs, and system performance. Operations and Maintenance Program: In January 2015, the District began tracking and assessing the success of operations and maintenance work activities using the Maximo Computerized Maintenance Management System (CMMS). The District is using Maximo CMMS data to generate an Operational Dashboard report measuring the following metrics monthly: • Sanitary Sewer Overflows Per 100 Miles; Goal is less than 2.1 SSOs per 100 miles • Collection System Odor Complaints • Collection Preventive Maintenance work order compliance (i.e., whether preventive maintenance is performed on schedule) • Miles of Cleaning Production; Goal is 5 miles per month • Completion of Pump Station Preventive Maintenance Work Orders Due; Goal is 95 percent completion • Completion of Inverted Siphon Preventive Maintenance Work Orders; Goal is 95 percent completion • Number of Regional System Manholes inspected using Closed Circuit Television Production of per Month; Goal is 42 manholes inspected per month • Miles of Regional Sewer pipelines inspected per month; Goal is 6.7 miles inspected per month The report includes a measured value for each metric along with a colored circle indicating whether the measured value is within a Green, Yellow, or Red operating range, with Green being the preferred operating range. The Operational Dashboard is a significant improvement in performance measurement that is providing Collection O&M management and supervision real- time operational performance feedback to manage collection system maintenance activities. Appendix 11 of the SSMP titled Preventative Maintenance Program specifies collection system maintenance output goals. These goals are summarized in Table 7. As documented in the 2015 WDR Audit Report, OCSD may want to focus efforts on improving the ability to provide documentation verifying SSMP commitments are being achieved. As OCSD's implementation of the Maximo computerized maintenance management system continues to mature, OCSD should consider developing additional performance metrics to track achievement of these goals. The current Operational Dashboard metrics come close to achieving this goal. A further improvement OCSD may want to consider is a periodic report indicating which assets have exceeded the preventive maintenance frequencies summarized in Table 7 and which assets are close to exceeding those frequencies. May 19,2017 31 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 7:Summary of Maintenance Outputs Specified in SSMP Appendix 11 -Preventive Maintenance Program Activity Frequency(months) Asset Type Cleaning Inspection Exercise Gravity Pipe 12-inches and smaller Higher risk 12 60 Lower risk 18 60 Greater than 12-inches and less than or equal to 42-inches 60 84 Greater than 42-inches Note 1 84 Siphons and trouble spot gravity pipe 1 to 9 Manholes Note 2 Pressure sewers Isolation valves 3 and Pumping Air/vacuum release valves Facilities 6 Note 1:Cleaned as required based on CCTV results. Note 2:Manholes are inspected as part ofgravity sewer inspection Overflow Emergency Response: In addition to the SSO response activities tracked in the Maximo CMMS, the District relies on the SWRCB CIWQS database to store SSO event and reporting data. Supporting SSO documentation (pictures, forms, calculations, etc.) is stored on a District server and is uploaded to the SWRCB CIWQS database. Fats, Oils, and Grease Control Program: FOG Program inspection information is tracked in the District's FOG Program database. This database tracks all active FOG Program permits, scheduled inspections, follow-up inspections, inspection results, FOG program violations, and enforcement activities. Sewer Repair, Rehabilitation and Replacement Program: The District is tracking sewer repair activities in the Maximo CMMS. Sewer rehabilitation and replacement is tracked in the GIS as part of the GIS update process. Prior to the GIS update, rehabilitation and replacement of specific assets is tracked by project either by Engineering or Contracts Support Services. System Evaluation and Capacity Assurance Program: The District tracks the implementation of system evaluation and capacity assurance program recommendations on a project by project basis. These projects are being implemented over a long-term horizon and tracking is documented in the SSMP in Appendix M, Table 1-3. The technical memorandum was last updated on November 14, 2016. Asset Management Improvement Program: The District has an active Asset Management Improvement Program with long-term, medium-term, and short-term strategies for managing asset reliability. OCSD is currently developing and implementing the processes required to more accurately predict funding required for long-term asset reliability and sustainability. The District's current long-term funding predictions are based on best professional judgment at this time. In the medium-term, CIP funding is reviewed annually based on the projects identified and prioritized to address system reliability needs. May 19,2017 32 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Program Modifications: The SSMP was last certified by the District Board in March 2012. As required by the Monitoring and Reporting Program (Order No. WQ 2013-0058-EXEC)the SSMP includes records documenting the dates of all changes to SSMP chapters and attachments since the last certification, including the name of the person authorizing the changes for all changes occurring since September 2013. Environmental Compliance staff use ECAP to send email reminders to owners assigned to maintain various SSMP chapters and elements. Currently these reminders are sent every six months. Environmental Compliance staff is in the process of reviewing the appropriateness of the update frequency and may be modifying the frequency and schedule for updates based on feedback from chapter and appendix owners. As updates are made by chapter and appendix owners, the revised versions are collected and managed by Environmental Services staff for incorporation into the next published update. Chapter 11 —SSMP Program Audits WDR Requirement: As part of the SSMP, the Enrollee shall conduct periodic internal audits, appropriate to the size of the system and the number of SSOs. At a minimum, these audits must occur every two years and a report must be prepared and kept on file. This audit shall focus on evaluating the effectiveness of the SSMP and the Enrollee's compliance with the SSMP requirements identified in this subsection (D.13), including identification of any deficiencies in the SSMP and steps to correct them. Audit Findings: The District is in compliance with the SSMP Program Audit requirement. This audit serves as the District's 2017 SSMP Program Audit and is being performed at a minimum of every two years as required by WDR. As documented in the SSMP Effectiveness section of this audit report, the District's sewer overflow performance is excellent and a two-year audit frequency is appropriate. The District keeps prior SSMP Program Audits on file and the previous SSMP Program Audit is available electronically on the District's website at: https://www.ocsd.com/a bout-us/transparency/waste-d ischarge-rec u irements/-folder-612. The District's 2015 audit report contained a section analyzing the District's sewer overflow performance and overall SSMP effectiveness. The audit report also included a section providing a narrative review of the effectiveness of each SSMP Program element and identified strengths in the SSMP program as well as deficiencies and steps to correct them. The District reviewed the findings of the 2015 SSMP program audit, assigned a resource to evaluate each deficiency and develop a plan of action, and documented the results in an Audit Closeout Memo dated June 30, 2016. The Audit Closeout Memo was presented to the Operations Committee on October 5, 2016 and the Board of Directors on October 26, 2016. The Audit Closeout Memo documented updates to the SSMP required to address identified deficiencies. The changes made to the SSMP were deemed not substantial enough to require certification by the Board of Directors. Environmental Compliance staff has created a calendar reminder to trigger an audit schedule review by the WDR/SSMP audit Subject Matter Expert 7 months in advance of the audit deadline, which will provide enough time to implement OCSD's Environmental Auditing Program Procedures TS-ECRA-SOP-011 and complete the next WDR/SSMP audit on time by May 2, 2019. May 19,2017 33 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Environmental Compliance staff have assigned one point of contact for procurement of audit support services. The scope for the audit is stored on ECAP providing a starting point for future procurements, which streamlines the audit process. Chapter 12—Communication Program WDR Requirement: The Enrollee shall communicate on a regular basis with the public on the development, implementation, and performance of its SSMP. The communication system shall provide the public the opportunity to provide input to the Enrollee as the program is developed and implemented. The Enrollee shall also create a plan of communication with systems that are tributary and/or satellite to the Enrollee's sanitary sewer system. Audit Finding: The District is in compliance with WDR requirements for a Communication Program. The District has a Sanitary Sewer Overflow webpage dedicated to providing the public with information regarding the WDR, OCSD's SSMP, and sewer overflow reporting. hftps://www.ocsd.com/residents/sanitary-sewer-overflow The webpage has: 1. Description of sewer responsibility and sewer overflow definition. 2. Information about the State Water Resource Control Board (SWRCB)WDR and a link to the WDR on the State Water Resources Control Board SSO Program webpage (http://www.waterboards.ca.gov/water issues/programs/sso/). 3. Description of OCSD's SSMP and a link to the document on the OCSD Transparency webpage (httD://www.ocsd.com/about-us/transparency/waste-discharge-requirements/- folder-612). 4. A list of all of the required elements of the SSMP. The list of outdated and aligned with the older Region 8 SSMP requirements and should be updated to align with the SWRCB WDR SSMP requirements. 5. Information regarding SSO reporting and links to the SWRCB California Integrated Water Quality System (CIWQS)website and spill maps. 6. Information regarding Orange County WDR General Committee meetings and with an open invitation to the public. The page points to the OCSD Calendar which provides the date and time of these meetings. 7. Contact information for key OCSD staff involved with the WDR. The District has formed two periodic meetings to communicate with tributary agencies including the WDR Steering Committee and the Orange County Waste Discharge Requirements (OC WDR) General Meeting. These meetings occur every two months and consist of representatives of the District and all agencies with a collection systems tributary to OCSD's regional system. These meetings cover a range of topics related to the WDR and serve as an effective means for OCSD to communicate with tributary agencies and the public. May 19,2017 34 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL • A list of upcoming meetings for each of these groups is can be found at: httos://www.ocsd.com/about-us/calendar. In addition to periodic WDR Steering Committee and OC WDR General Meeting, the District communicates with tributary and satellite agencies in cases where OCSD staff responds to a neighboring agencies SSO event or when the High Flow Emergency Response Plan is activated. • In the case an SSO occurs on OCSD pipelines, OCSD will coordinate and communicate messaging with the local agency Public Information Officer as necessary. o Depending on the magnitude or impact of an SSO event, Environmental Compliance staff and Collection O&M staff will brief Communications staff on the details of the event and Communication staff may develop talking points in preparation of potential news coverage of the event. Two recent events (CIWQS Spill IDs 824417 and 832505) resulted in the development of talking points in preparation for media coverage. • As described previous, when criteria is met to activate the High Flow Emergency Response Plan, OCSD will communicate the situation to tributary and satellite agencies to support management of flows into the OCSD system. The Communication Program element of the WDR requires that "the communication system shall provide the public the opportunity to provide input to the Enrollee as the program is developed and implemented". OCSD is missing out on an opportunity to provide the public with another opportunity and means to provide input on the development and implementation of the SSMP. In addition to all of the other communication mechanisms OCSD employs to communicate with the public, tributary agencies, and satellite agencies, OCSD may want to consider adding a message on the District's SSO webpage indicating that the current version of the SSMP available on the District website is always available for review and any comments, suggestions, or input from the public is welcome and appreciated. The message can instruct the public to provide this input to any of the three contacts identified on at the bottom of the page for consideration in future SSMP updates. May 19,2017 35 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Strengths and Implementation Accomplishments Documenting the strengths and implementation accomplishments of the SSMP is as important as determining the deficiencies and corrective actions. The District should recognize the areas of strength in sewer system management as well as continue building upon success in these areas. Table 8 includes the strengths and implementation accomplishments that were identified during the audit. Table 8:Strengths and Implementation Accomplishments WDR Provision Strengths and Implementation Accomplishments Overall The District successfully transferred approximately 170 miles of local sewer pipelines in the Tustin area to the East Orange County Water District, enabling OCSD to focus on management operation and maintenance of the regional system. D.13(ii)- Organization The District recently reorganized and has assigned roles and responsibilities for development and implementation of the SSMP. The SSMP organization documentation was updated prior to the audit and staff have been effective at implementing key elements of the SSMP. D.1 3(iii)— Legal The District completed an update of the Waste Discharge Authority Regulation Ordinance in July 2016. OCSD-39 was repealed and replaced by OCSD-48 effective July 1, 2016. D.13(iv)—Operations The District has sustained an SSO rate in the sewer system of and Maintenance less than 1.31 SSOs per 100 miles of sewer pipelines per year Program over the last five years, placing OCSD in the category of high- performing sewer systems. The Operations and Maintenance Program is a key contributor to the high level of SSO performance achieved in the last five years through: • An aggressive sewer cleaning program in the local sewer system which focuses aggressive sewer cleaning in pipelines with historical maintenance issues and cleaning of all other pipes at least once every year; • A five-year cleaning cycle for all regional sewers less than or equal to 42-inch diameter and more frequent cleaning of known problem regional sewer pipe segments. Trouble spots and siphons are cleaned every 4 weeks to 3 months based on historical cleaning needs, which may include pipe segments larger than 42-inch diameter. • Systematic CCTV inspection of the sewer system on a 5- year cycle beginning with the problematic and older portions May 19,2017 36 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Strengths and Implementation Accomplishments of the system. This systematic approach enables OCSD to identify structural deficiencies in the early stages of deterioration and to monitor these deficiencies and determine appropriate corrective actions. • Well-trained collection system employees with all employees above the Maintenance Worker classification maintaining CWEA Collection System Maintenance certifications at or above levels required for their position. • Accurate and up-to-date mapping of the sewer system to support SSO response and preventive maintenance activities. District response crews also have access to stormwater drainage system mapping to support sewer overflow response and recovery. • A pump station maintenance and inspection program with a well-defined maintenance schedule, documented standard operating procedures, checklists, and daily SCADA data review. Baseline CCTV inspection of all new pipe upon acceptance of new construction. D.13(iv)(c)—Operations The District has implemented a pump station reliability program and Maintenance that currently performs vibration analysis, oil analysis, and Program thennography on pump station equipment. This analysis can lead to additional monitoring, maintenance, repair, and in some cases replacement of pump assets. The District has just started utilizing ultrasound to support similar types of decisions. Collection and use of reliability data to support maintenance and renewal decisions is a best practice. D.13(vi)(c)—Overflow The District has documented and trained staff on procedures Emergency Response and process for SSO notifications and communication (SSMP Plan Appendices P2 and P3). D.13(vii)— FOG Control The District has a very effective program for fats, oils, and Program grease (FOG) blockage control including: • Consistent and effective source control of active permitted FSEs. • Implementation of GIS information tools to support FOG investigations. • Aggressive sewer cleaning of all areas known to have a history of FOG issues. • An effective public outreach education program for proper May 19,2017 37 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Strengths and Implementation Accomplishments disposal of FOG through education at public events, website, social media, and newsletters. The District increases promotion prior to holiday events where grease can be an issue (e.g., Thanksgiving and Christmas holidays). • A FOG ordinance providing adequate FOG enforcement authorities. • Adequate staffing to accomplish FOG program inspections and enforcement as required. • Close coordination between source control and collection system operations and maintenance staff to investigate FOG issues and determine appropriate source control and maintenance corrective actions to address issues. D.13(ix)— Monitoring, The District is tracking SSO performance indicators and is Measurement, and communicating these to District Managers and District Board Program Modifications monthly. D. 13 (viii)—System The District has not experienced any capacity-related sewer Evaluation and Capacity overflows in the past eight years. Assurance Program D. 13 (viii)—System In August 2016, the District authorized a new capacity Evaluation and Capacity assessment of its collection system (PS 15-08 Collection Assurance Program System Capacity Assessment Study) which will assess current sewer flows, update and validate the hydraulic model, review current design criteria, evaluate hydraulic deficiencies and develop a new Capital Improvement Program. Upon completion of the 2-year project, these findings will be incorporated into the SSMP. D.13(x)—SSMP The District successfully completed an SSMP Audit and Update Program Audits cycle. The District conducted an SSMP audit in early 2015. The audit assessed the effectiveness of the SSMP implementation and identified deficiencies in the SSMP and steps to correct them. D.13(xi)— The District employs multiple communication methods ranging Communication Plan from face-to-face meetings with tributary and satellite agencies; periodic OC WDR meetings open to the public; a large volume of collection system program documentation available on the OCSD website, and an SSO webpage dedicated to informing the public of the WDR requirements and OCSD's Sewer May 19,2017 38 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Strengths and Implementation Accomplishments System Management Plan. May 19,2017 39 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Compliance, SSMP Deficiencies and Corrective Actions Several deficiencies were identified during the audit and are in this Section along with recommended corrective actions. Deficiencies were divided into three categories and assigned a deficiency type code. The deficiency categories are coded and defined as shown in Table 9: Table 9: Deficiency Definitions Deficiency Deficiency Type Deficiency Definition Type A Non-Compliance A process or outcome resulting in the SSMP not currently being in compliance with the W DR/SSMP requirements. B-major Major Non-Conformance Moderate to high likelihood that a statement in the SSMP is not fully confonmed. Moderate to high likelihood the deficiency may impact the success of the SSMP and/or program performance. B-minor Minor Non-Conformance Low likelihood that a statement in the SSMP is not fully conformed. Low likelihood the deficiency may impact the success of the SSMP and/or program performance. WDR Compliance This audit finds the District in compliance with the State Water Resources Control Board Order No. 2006-0003—Statewide General Waste Discharge Requirements for Sanitary Sewer Systems. SSMP Deficiencies and Corrective Actions The following tables document the SSMP non-confonnance deficiencies identified as a result of the audit along with recommended corrective actions. May 19,2017 40 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Table 10: Major and Minor Non-Conformance Deficiencies and Recommended Corrective Actions WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(ii)- Ed Torres is not currently shown as a legally OCSD may want to consider including Ed Tones B-minor Organization responsible official in the organization chart or as a legally responsible official since he ultimately in the State Water Resources Control Board oversees the Collection O&M crews responsible CIWQS SSO database. for pipeline and pump station emergency response, operations, and maintenance. D.13(ii)- The District Reliability Engineering and Update the Organization Chart to indicate the B-minor Organization Maintenance Team (DREAM Team) is not lines of authority of the DREAM Team. shown on the organization chart. D.13(iv)—O&M The DREAM Team is an important sub-element Incorporate a description of the DREAM Team B-minor Program of the Operation and Maintenance Program activities into the SSMP Operations and and their activities should be described in the Maintenance Program chapter. Operations and Maintenance chapter of the SSMP. D.13(iv)—O&M Force main inspection is still problematic due to OCSD should consider developing a B-major Program limited access and many force mains remain programmatic force main inspection and condition uninspected. OCSD has used Smartball to assessment plan that evaluates current force assess the condition of some force mains and main access, identifies potential improvements to in some cases has performed external improve access, and documents the best inspection on metallic pipelines. approach currently available to assess condition given the current state of maintenance accessibility specific to each force main. May 19,2017 41 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(iv)—O&M Maintenance Planning staff are developing Job Develop a plan to update generic Job Plans to B-minor Program Plans in Maximo. Ideally Job Plans would be become station-speck to improve the ability of updated over time to reflect actual protocols the organization to pass this knowledge to future followed by Collection O&M crews in the field. Collection O&M pump station maintenance This will require feedback from Collection O&M employees. The plan should take into account the crews back to Maintenance Planning. One available resource capacity of Maintenance issue with the Job Plans for pump station crews Planning and Pump Station O&M staff. The key is is the lack of connectivity in the pump stations. to invest the time up front to ensure the Job Plans Pump station crews also perform these have appropriate detail and are correct. This may activities so often, there is not a need to read require multiple visits to the pump station to Job Plans to be able to perform the work. ensure everything is covered. The District may want to consider revisiting Job Plans once every five years to ensure everything is still the same and no further improvements can be made. D.13(iv)—O&M Supervisors make assignment to crews. Need to improve this process work flow or have B-minor Program Supervisors also review service requests for the ability to delegate authority for review of validation and conversion into work orders. service requests in the case where supervisors This is a current process bottleneck. are not available for short fuse service requests. D.13(iv)—O&M Work order data collection appears to be Consider developing guidance to standardize data B-major Program inconsistent between crews. collection practices for Collection O&M crews. For example, sewer cleaning crews should utilize the same terminology and volume quantification practices for documenting the type and amount of material removed from sewer pipe segments during sewer cleaning. May 19,2017 42 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(iv)—O&M Risk Assessment—OCSD does not OCSD should move forward with configuring B-minor Program continuously update collection system risk as InfoMaster to calculate asset risk and new CCTV data is collected. This has evolved continuously update the risk assessment for all from being a best management practice to pipes in the sewer system as new CCTV data is becoming a standard industry practice. OCSD collected. recently purchased Innovyze InfoMaster, which has risk assessment functionality. D.13(v)— The depth of flow versus diameter criteria The District should update the Design and B-major Design and included in the District's Design and Construction Requirements for Sanitary Sewers to Performance Construction Requirements for Sanitary include depth of flow versus diameter parameters Provisions Sewers is more conservative than the criteria for the replacement of existing sewer pipelines in described in Appendix M for evaluating and areas that are built-out to align with Appendix M. designing improvements to the existing system. D.13(vi)— Appendix P2—Laboratory, Monitoring, and Update Appendix P2 to address. B-minor Overflow Compliance (LMC) SSO Response Emergency Procedure: Includes procedures for the LMC Response Plan primary responder including protocols for responding to notification, field visitation, and reporting. It was last updated on 11/2/2016. References to this appendix in SSMP Chapter 7 reference Environmental Compliance versus LMC. Also, the cover page for this appendix is titled SSO Notification Procedures and should be updated to SSO Response Procedure. May 19,2017 43 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(vi)— As documented in the 2013 WDR Audit, the The District may want to consider updates to the B-minor Overflow various attachments documenting SSO Overflow Emergency Response Plan chapter and Emergency response protocols are fragmented. attachment to address this issue. One suggestion Response Plan is the consolidation of Appendix Q1 into Chapter 7 of the SSMP. Appendix Q1 provides a narrative description of the overall emergency response program, which is more appropriately included as part of Chapter 7 instead of as an appendix. May 19,2017 44 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(vi)— As noted in the 2010 SSMP audit, SSO The District may want to Include a section in the B-major Overflow response documents still do not address next SSO Emergency Response Plan update Emergency overflows from pump stations and force mains. focused on pump stations indicating each pump Response Plan Overflows from these locations can create station, location, whether it is equipped with significant volumes of sewage in a short alarms, on-site back-up pumps, and back-up amount of time and benefit from having power generators. For any stations that lack contingency plans in place in the event of a back-up pumps and generators, the plan should failure. specify a protocol for prompt delivery of portable pumps or generators in the event of a station failure. In addition, the wet well capacity at each pump station should be provided along with an estimate of how much storage time the wet wells would provide under different flow conditions. It should identify where an SSO will occur if a station fails and where bypass intake and discharge should be set up. Finally, the plan should identify an operation or bypass approach in the case of force main failure and should evaluate whether a more detailed response or contingency plan is necessary for larger pump stations and forcemains or complicated pump station and force main operations. May 19,2017 45 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(vi)— As noted in the 2015 SSMP audit, the Control Incorporate a reference to the Control Center B-minor Overflow Center staff has a training binder for training training binder into the next SSMP update. Emergency new Control Center staff on how to Response Plan appropriately document and communicate customer calls for potential SSO events. This document is an important training tool and guide for Control Center staff and is not referenced in the SSMP. D.13(vi)— The SSO Technical Report for CIWQS Spill ID Develop a corrective action to ensure the B-minor Overflow 832505 documented the use of unsterilized availability of sterilized water bottles for Collection Emergency water bottles for water sample collection. O&M staff to take water samples K needed. Response Plan D.13 viii (b)— Appendix M of the SSMP describes project The District should consider updating Appendix M B-minor System initiation criteria the District uses to evaluate to more clearly define the distinction between Evaluation and potential hydraulic deficiencies to trigger project initiation criteria used by Planning Division Capacity analysis of capital improvement alternatives to evaluate hydraulic deficiencies versus design Assurance Plan designed to address the deficiency. Project criteria used to design collection system capital initiation criteria includes a depth to diameter improvements. The update should also clarify ratio and allowable surcharge based on depth discrepancies between the depth of flow to of pipe, using a 10-year design storm. Smaller diameter design criteria provided in the District's sewers are determined deficient when the ratio Design and Construction Requirements for of peak depth of flow to pipe diameter is equal Sanitary Sewers versus those described in to or greater than 1.0.When redesigning Appendix M. sewers larger than 12 inches, the desired ratio of the peak depth of flow to pipe diameter(d/D) is equal to 1.0. For sewer with a diameter of 12 inches or less, the desired d/D is equal to 0.75. May 19,2017 46 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13 viii (d)— SSMP and referenced documents such as the Update the table in Appendix M that lists all the B-minor System 2006 Strategic Plan Update, the 2009 Facilities capacity-related CIP projects that were identified Evaluation and Plan, and Fiscal Year Budgets describe capital in the 2006 Strategic Plan Update, the 2009 Capacity improvement projects for capacity Facilities Plan, or in the current PS 15-08 study. Assurance Plan enhancement. Some of the identified projects Include the original source of the recommendation have been completed and others deferred for a to perform the project. Document the priority and variety of reasons. Although improvements status of each project and projected completion have been made to the table in Appendix M date. since the last audit, the reason for the For projects that have been deferred and/or are cancellation of projects is still not included. not currently included in the District's CIP, the Projects listed as"on going" could be in design table should include the justification for the or construction phases. The anticipated start deferral (e.g., reduced flows, lower growth dates of the projects are listed, however, the projections, acceptable level of risk, etc.). This anticipated completion dates (as required by table should be updated annually and included in the WDR) are not. the SSMP. May 19,2017 47 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Identified Deficiency Recommended Corrective Action Deficiency Type D.13(ix)— Appendix 11 of the SSMP titled Preventative As documented in the 2015 WDR Audit Report, B-minor Monitoring, Maintenance Program, specifies collection OCSD may want to focus efforts on improving the Measurement, system maintenance output goals. These goals ability to provide documentation verifying SSMP and Program are summarized in Table 7. The current commitments are being achieved. As OCSD's Modifications Operational Dashboard metrics come close to implementation of the Maximo computerized achieving this goal. maintenance management system continues to mature, OCSD should consider developing additional performance metrics to track achievement of these goals. A further improvement OCSD may want to consider is a periodic report indicating which assets have exceeded the preventive maintenance frequencies summarized in Table 7 and which assets are close to exceeding those frequencies. May 19,2017 48 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL Other Findings and Opportunities This section includes other findings and opportunities for improvements not linked directly to issues of compliance or conformance with the WDR. These are ideas which resulted from the audit and are presented for the District's consideration. Table 11:Other Findings and Opportunities WDR Provision Finding Opportunity D.13(ii)- There are inconsistencies between the titles used on the Update the Organizational Narrative and Program Organization Organizational Narrative versus those shown on the Organizational Chart to create consistency between the Program Organizational Chart making it challenging for titles or a clear linkage between the titles. For example, a someone outside of the OCSD organization to follow, yet new column could be added to the Organization Narrative both documents are mostly up-to-date and comply with to include the exact titles shown in the Program the WDR requirement. Organizational Chart. D.13(ii)- The title for the Principal Public Affairs Specialist is not Update the title. Organization correct due to a recent promotion. D.13(iv)—O&M Decision-Making Guidelines—OCSD continues to OCSD has the opportunity to develop a standardized Program evaluate the maintenance and renewal needs of sewer approach to evaluating maintenance and CCTV data and pipelines manually and on a case-by-case basis. determine maintenance and renewal actions (i.e., repair, replace, CIPP, upsize, etc.)to address asset deficiencies as maintenance and CCTV data is collected. D.13(iv)—O&M OCSD recently purchased Innovyze InfoMaster software, OCSD should move forward with configuring InfoMaster to Program which has the functionality to support asset management calculate asset risk and continuously update the risk decision-making. assessment for all pipes in the sewer system as new CCTV data is collected. May 19,2017 49 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Finding Opportunity D.13(iv)—O&M Estimating Renewal Needs—OCSD has estimated long- OCSD has condition data for almost all collection system Program term asset renewal needs and has incorporated these assets. OCSD should consider using this data to calculate estimates into OCSD's budget and rate structure. These actual asset reliability rates using available CCTV estimates were based on assumptions for useful life of inspection data and then updating the renewal needs collection system assets. funding forecast. OCSD can then begin to understand whether the current funding level is adequate to sustain desired service levels and risk tolerances. D.13(iv)—O&M CCTV Inspection Schedule—OCSD has collected CCTV OCSD should consider moving towards a risk-based Program inspection data for almost all collection system gravity CCTV monitoring schedule for future inspections. High-risk mainline assets. pipes would be inspected more frequently (e.g. 5 to 10- year schedule) and low risk pipes less frequently (e.g., 10 to 20 year schedule). D.13(viii)— The District is currently in the process of developing a PS 15-08 provides an opportunity for the District to assess System new capacity assessment of its collection system (Project current sewer flows, update and validate the hydraulic Evaluation and PS 15-08)that includes an extensive flow monitoring model, review current design criteria, evaluate hydraulic program and hydraulic model update to assess the Capacity system's capacity to convey current and projected sewer deficiencies and develop a new Capital Improvement Assurance Plan flows. Program. Upon completion of the project, these findings should be incorporated into the SSMP. May 19,2017 50 Orange County Sanitation District 2015-2016 WDR/SSMP Audit WDR/SSMP Audit Findings FINAL WDR Provision Finding Opportunity D.13(viii)— As part of PS 15-08, the District will be assessing flows PS 15-08 presents an opportunity for the District to System from member agencies. As the District has invested develop a plan to continue to assess 1/1 from member Evaluation and significant funds to assist member agencies with their 1/1 agencies over time. The updated hydraulic model is Capacity reduction efforts, this project will help to quantify trends in capable of quantifying 1/1 as a percentage of rainfall, Assurance Plan 1/1 over time. It is important to the District that peak 1/1 be factoring in dry and wet antecedent rainfall conditions, and controlled by the member agencies. Significant increases should be able to quantify any significant increases or in peak 1/1 could result in additional hydraulic deficiencies decreases in 1/1 that occurs, allowing the District to follow- that have not yet been identified in the District's trunk up and document I&I improvement efforts by upstream sewers, as well as in the District's treatment plants and agencies. Proposed monitoring program should include ocean outfalls. comprehensive analysis of flows from these agencies. If a flow monitoring plan is developed as a result of the PS15-08 project, this information should be included in the SSMP and regular updates of the "watch" areas should be provided. D.13(ix)— Environmental Compliance staff use ECAP to send email Environmental Compliance staff is in the process of Monitoring, reminders to owners assigned to maintain various SSMP reviewing the appropriateness of the update frequency Measurement, chapters and elements. Currently these reminders are and should follow through with modifying the frequency and Program sent every six months. and schedule for updates, as appropriate, taking into Modifications consideration the feedback received from chapter and appendix owners. D.13(xi)— OCSD is missing out on an opportunity to provide the OCSD may want to consider a adding a message on the Communication public with another opportunity and means to provide District's SSO webpage indicating that the current version Plan input on the development and implementation of the of the SSMP available on the District website is always SSMP. available for review and any comments, suggestions, or input from the public is welcome and appreciated. The message can instruct the public to provide this input to any of the three contacts identified on at the bottom of the page for consideration in future SSMP updates. May 19,2017 51 OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 06/07/17 O6/28/17 AGENDA REPORT Item Item Number 7 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James Colston, Director of Environmental Services SUBJECT: SEWER SYSTEM MANAGEMENT PLAN UPDATE GENERAL MANAGER'S RECOMMENDATION Approve and file the Orange County Sanitation District's Sewer System Management Plan, dated May 9, 2017. BACKGROUND The Orange County Sanitation District (Sanitation District) Sewer System Management Plan (SSMP) was last approved and filed by the Board of Directors on March 28, 2012. The Sanitary Sewer System Waste Discharge Requirements Order (SSS WDR Order) requires the SSMP to be certified by the enrollee (Sanitation District) every five years. Accordingly, the SSMP was revised with recommendations set forth within the 2015 SSMP Audit Report. Further administrative changes were made to the SSMP when the Environmental Services Department was recently formed. The current edition of the Sanitation District's SSMP is posted on the Sanitation District website for public awareness and transparency. RELEVANT STANDARDS • Comply with sanitary sewer overflow regulations (SSS WDR Order) • Maintain a proactive asset management program • Less than 2.1 sewer spills per 100 miles TIMING CONCERNS Permit requires the Sewer System Management Plan to be certified every five years. RAMIFICATIONS OF NOT TAKING ACTION Non-compliance with the SSS WDR Order. PRIOR COMMITTEE/BOARD ACTIONS December 2015 - Board of Directors received and filed the 2015 Waste Discharge Requirement (WDR)for SSMP Audit Report dated July 31, 2015. Page 1 of 2 March 2012 - Board of Directors approved the SSMP dated March 28, 2012. May 2009 - Board of Directors approved the SSMP dated May 1, 2009. October 2008-Board of Directors received and filed the SSMP Compliance Status Report dated September 24, 2008. July 2007 - Board of Directors approved the SSMP Development Plan and Schedule. October 2006 - Board of Directors approved the development and implementation of a compliance program with the Sanitary Sewer System WDR Order. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • SSMP Volumes I and II (674 pages— provided as separate link/file) Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 06/07,17 — AGENDA REPORT Item Number Iem Number s — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James Colston, Environmental Services Director SUBJECT: LABORATORY, MONITORING, AND COMPLIANCE DIVISION UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. BACKGROUND The Laboratory, Monitoring, and Compliance Division was part of the reorganization that formed the Environmental Services Department in July 2016. Staff will present an informational overview on the Division's new and on-going programs to update the Board of Directors with the activities and achievements over the past year, and planned future efforts. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Maintain environmental regulatory oversight by all regulators Highly qualified, well trained, motivated, and diverse workforce ADDITIONAL INFORMATION The Laboratory, Monitoring, and Compliance Division (Division 630) is composed of 54 positions and has an operating budget of $10,389,610. The division supports several internal customers including Operations, Compliance, Resource Protection, Orange County Sanitation District's (Sanitation District) Research Technical Advisory Group and Capital Projects, in addition to performing as needed cooperative support for and studies with outside agencies such as the Orange County Water District (OCWD), the Southern California Coastal Water Research Project (SCCWRP) and the South Orange County Wastewater Agency (SOCWA). In July 2016, the Sanitation District reorganized to form the Environmental Services Department and the Compliance section, with its 11 positions, was added to the previously named Environmental Laboratory and Ocean Monitoring Division. This change has brought together the analytical expertise of the Laboratory staff and the regulatory reporting expertise of the Compliance staff. Due to time constraints, this presentation will focus on the Sanitation District's Ocean Monitoring Program and only briefly touch on other programs within Division 630. Page 1 of 2 The Environmental Laboratory performs analysis for nearly 110,000 samples per year; approximately 48% are in support of Operational Optimization and Process Monitoring, 34% are in support of Permit Compliance, 9% are in support of Resource Protection monitoring and investigations and 8.5% are in support of the Ocean Monitoring Program. The Sanitation District's Ocean Monitoring Program performed 86 vessel operation days in 2016. The Sanitation District's water quality program, which extends seven miles off shore, has collected 3,736 samples at nearly 500 stations. The sediment monitoring program collected samples at 97 stations and staff collected nearly 200 samples from the ocean floorfor chemical and biological analyses; while the fish trawling program collected fish and invertebrates at 20 stations for analysis. As a comparison, in 1997, the Sanitation District used contractors to perform this work at a cost over$1.7 million per year. Since the Sanitation District insourced this program using existing Sanitation District staff, our expenditures have been reduced to less than $300,000 per year. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (wwwocsd.com) with the complete agenda package: N/A Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 06/07,17 — AGENDA REPORT Item Number Item Number 9 — Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: 2017-18 BUDGET UPDATE PRESENTATION GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Staff will provide an overview of the 2017-18 Budget Update, including Orange County Sanitation District Revenues, Capital Improvement and Operating expenditures, and long-term liabilities. RELEVANT STANDARDS Produce Operations and CIP budgets every two years with annual update PRIOR COMMITTEE/BOARD ACTIONS The FY 2016-17 and 2017-18 biennium budget was adopted on June 22, 2016. FINANCIAL CONSIDERATIONS The outlays for the FY 2017-18 Budget Update being proposed for re-adoption on June 28, 2017 will not exceed the amounts within the cash flow model included in the FY 2016-17 and 2017-18 Adopted Budget. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 1 of 1 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 CARS 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 US Environmental Protection Agency FOG Fats, Oils, and Grease gpd gallons per day GWRS Groundwater Replenishment System ICS Incident Command System IERP Integrated Emergency Response 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 & Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant/Construction Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm parts per million PSA Professional Services Agreement RFP Request For Proposal RWQCB Regional Water Quality Control Board Glossary of Terms and Abbreviations SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Interceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control And Data Acquisition SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF Clean Water State Revolving Fund SSMP Sewer System 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 W ERF Water Environment & Reuse Foundation WIFIA Water Infrastructure Finance and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act W RDA Water Resources Development Act 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 known 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. Biogas—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. 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 farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Glossary of Terms and Abbreviations 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. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DIT) — The dilution at which the majority of people detect the odor becomes the D/T for that air sample. Greenhouse Gases (GHG) — 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 System (GWRS) — 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 per day of drinking quality water to replenish the local groundwater supply. Levels Of Service (LOS) — Goals to support environmental and public expectations for performance. N-Nitrosodimethylamine (NDMA) — A N-nitrosamine 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 and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation 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. Glossary of Terms and Abbreviations Publicly Owned Treatment Works (POTW) —A municipal wastewater treatment plant. Santa Ana River Interceptor(SARI) Line —A regional brine line designed to convey 30 million gallons per day 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 runoff. 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. 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. The Orange County Sanitation District's service area is in the Santa Ana River Watershed.