Loading...
HomeMy WebLinkAbout07-26-2017 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, July 21, 2017 Regular Meeting of the ^" 5:00 P.M. STEERING COMMITTEE Administration Building Conference Rooms A & B 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGEND0 CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form (located at the table at the back of the room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. REPORTS: The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the Regular Meeting of the Steering Committee held on June 28, 2017. NON-CONSENT: 2. TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR (SP-173) THE EFFLUENT REUSE STUDY PROJECTS (Robert Ghirelli) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 17-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving and authorizing the application for the Title XVI Water Recycling Projects underthe Water Infrastructure Improvements for the Nation (WIIN)Act Effluent Reuse Feasibility Studies Program Grant funds and the execution 07/26/2017 Steering CommiOee Agenda Page 1 of 5 of grant documents with the United States Department of the Interior, Bureau of Reclamation." 3. ORANGE COUNTY SANITATION DISTRICT RESPONSE TO GRAND JURY REPORT(Jim Herberg) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve the Orange County Sanitation District response to the Orange County Grand Jury Report entitled, 'Pension Enhancements: A Question of Government Code Compliance' published May 17, 2017; and B. Adopt Resolution No. OCSD 17-13 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District establishing a procedure to ensure compliance with Government Code section 7507 transparency requirements." 4. APPRAISAL TO ACQUIRE REAL PROPERTY (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: Authorize the General Manager to enter into an agreementwith George, Hamilton, Jones, Inc. Real Estate Appraisers & Consultants to conduct an appraisal of real property located at 18429 Pacific Street,18410-18436 Bandilier Circle, and 18368-18375 Bandilier Circle to prepare the Orange County Sanitation District to initiate negotiations to acquire the same property in compliance with Government Code section 7267.1. INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation, orpersonnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. 0712612017 Steenng Comminee Agenda Page 2 of 5 (1) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION Initiation of litigation (Gov. Code Section 54956.9(d)(4))— 2 cases (A) Potential eminent domain action Property Owner: Sukut Real Properties LLC. Properties: 18429 Pacific St. Fountain Valley, CA, APN No. 156-163-09; 18410 Bandilier Cir. Fountain Valley, CA, APN No. 156-163-10; 18368 Bandilier Cir. Fountain Valley, CA, APN No. 156-163-11. (B) Potential action for damages against Mission Clay Products based on defective clay pipe. (2) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 10950 Virginia Cir. Fountain Valley, CA-APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA -APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA - APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA -APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA -APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA - APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA- APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA-APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA -APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA - APN No.156-154-07; 18350 Mt. Langley St. Fountain Valley, CA -APN No.156-154-08; 18386 Mt. Langley St. Fountain Valley, CA -APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA-APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA-APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA -APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA-APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA- APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA -APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA -APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Tom Grant; Kevin Turner and John Gallivan, Cushman and Wakefield. Negotiating parties: Valley, Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; 07/26/2017 Steering Committee Agenda Page 3 of 5 The Ins Trust, APN No. 156-154-07; K &A Investments LP, APN No. 156-154-08; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. (3) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1))— 1 case City of Los Angeles v. County of Kern, Tulare County Superior Court, Case No. 242057. (4) PUBLIC EMPLOYEE PERFORMANCE EVALUATION (Government Code Section 54957(b)(1)) Title: General Manager RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, August 23, 2017 at 5:00 P.M. 07/26/2017 Steenng Comminee Agenda Page 4 of 5 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714)593-7433 klore(olocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherberaitDocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rghirelli(cDocsd.com Director of Engineering Rob Thompson (714)593-7310 rthompson(&ocsd.com Director of Environmental Services Jim Colston (714)593-7450 icolston(olocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvneraocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandler(glocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 07/26/2017 Steering Committee Agenda Page 5 of 5 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, June 28, 2017 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Sebourn on Wednesday, June 28, 2017 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Greg Sebourn, Board Chair Jim Herberg, General Manager David Shawver, Board Vice-Chair Bob Ghirelli, Assistant General Manager Chad Wanke, Administration Committee Celia Chandler, Director of Human Chair Resources John Withers, Operations Committee Jim Colston, Director of Environmental Chair Services Ellery Deaton, Member-At-Large Rob Thompson, Director of Engineering Tim Shaw, Member-At-Large Ed Torres, Director of Operations & Maintenance COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance & Donald Wagner, Member-At-Large Administrative Services Kelly Lore, Clerk of the Board Janine Aguilar Mike Dorman Al Garcia Lori Karaguezian Laurie Klinger Tina Knapp Mark Manzo Kathy Millea Jeff Mohr OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: No public comments were provided. REPORTS: Chair Sebourn announced the dates and times of the upcoming Legislative tours for Assembly Member Sharon Quirk-Silva (July 26 at 9:00 a.m.); Assembly Member 06/28/2017 Steering Committee Minutes Page 1 of 3 Phillip Chen (August 4 at 1:30 p.m.); and Senator Josh Newman (August 2 at 1:00 p.m.) and reminded the Committee if their schedule allowed, to sign up to attend one of the tours. General Manager Herberg announced that tonight's Board of Directors meeting will be provided via teleconference for at least one Director and explained the additional requirements that will take place to remain legally compliant. Mr. Herberg then provided a few highlights and accomplishments from the General Manager's FY 2016-17 Work Plan Year-end Update. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on May 24, 2017. AYES: Deaton; Sebourn; Shaw; Shawver;Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner 2. GENERAL MANAGER'S FY 2016-2017 WORK PLAN YEAR-END UPDATE (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and File the General Manager's FY 2016-2017 Work Plan Year-End Update. AYES: Deaton; Sebourn; Shaw; Shawver;Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54957(b)(1): The Committee convened in closed session at 5:07 p.m. to discuss two items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. O6/2812017 Steering Committee Minutes Page 2 of 3 RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 6:05 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Sebourn declared the meeting adjourned at 6:05 p.m. to the next Steering Committee meeting to be held on Wednesday, July 26, 2017 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 06/28/2017 Steering Committee Minutes Page 3 of 3 STEERING COMMITTEE Meeting Date Ta Bd.of Dir. 07/26/17 07/26/17 AGENDA REPORT IWrnNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR (SP-173) THE EFFLUENT REUSE STUDY PROJECTS GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 17-12 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving and authorizing the application for the Title XVI Water Recycling Projects underthe Water Infrastructure Improvements for the Nation (WIIN) Act Effluent Reuse Feasibility Studies Program Grant funds and the execution of grant documents with the United States Department of the Interior, Bureau of Reclamation." BACKGROUND The Orange County Sanitation District(Sanitation District)received a $450,000 grant from the 2015 WaterSMART: Title XVI Feasibility Studies Program. The grant helped to fund a $2 million effluent reuse study that identified projects necessary to expand the Groundwater Replenishment System (GWRS). The GWRS is a water recycling project jointly sponsored by the Sanitation District and the Orange County Water District(OCWD) that supplements existing water supplies by providing a new, reliable, high-quality source of water to recharge the Orange County Groundwater Basin and to protect it from seawater intrusion. Since the Sanitation District received a grant from the 2015 WaterSMART: Title XVI Feasibility Studies Program, the Sanitation District was identified by the Bureau of Reclamation (Bureau) as a candidate to apply for grant funds under the Title XVI Water Recycling Projects under the WIIN Act. The Sanitation District is in the process of applying for the grant funds. The Bureau identified 37 agencies (of which the Sanitation District is one)to apply for the grant funds. Part of the application process is to submit a resolution approving and authorizing the grant application. RELEVANT STANDARDS • Support OCWD expansion of GWRS • Use all practical and effective means for recovering wastewater for reuse Page 1 of 2 PROBLEM Due to the regulations laid out by the Bureau, we must submit a resolution with our application; otherwise, it will become null and void and we will have lost the opportunity to receive funding for the final expansion of the GWRS. PROPOSED SOLUTION Approve the resolution naming the Sanitation District as a strategic partner in the expansion of the GWRS and the completion of the projects named in the effluent reuse study. TIMING CONCERNS The grant application is due to the Bureau of Reclamation on August 17, 2017. According to the rules and regulations set forth by the Bureau, an approved/signed resolution must be submitted with the grant proposal. RAMIFICATIONS OF NOT TAKING ACTION Our application for the grant would not be accepted and we would not get the funding to offset the costs of the GWRS expansion. PRIOR COMMITTEE/BOARD ACTIONS March 2015 - The Board of Directors approved Resolution No. OCSD 15-08 approving and authorizing the application for the WaterSMART: Title XVI Feasibility Studies Program grant funds. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.com) with the complete agenda package: Resolution No. OCSD 17-12 Page 2 d 2 RESOLUTION NO. OCSD 17-12 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING AND AUTHORIZING THE APPLICATION FOR THE TITLE XVI WATER RECYCLING PROJECTS UNDER THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION (WIIN) ACT EFFLUENT REUSE FEASIBILITY STUDIES PROGRAM GRANT FUNDS AND THE EXECUTION OF GRANT DOCUMENTS WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION WHEREAS, the Orange County Sanitation District (Sanitation District) Board of Directors approved a five-year Strategic Plan in November 2013 establishing future water recycling as a strategic goal; and WHEREAS, in furtherance of the Strategic Plan, the Sanitation District conducted an Effluent Reuse Study (SP-173) to assess the feasibility of water recycling at Plant No. 2 and to evaluate options to improve the region's local water supply reliability by substituting recycled water for existing potable water demands; and WHEREAS, the U.S. Department of the Interior, Bureau of Reclamation, has announced grant funding through a program entitled "Title XVI Water Recycling Projects Under WIIN Act" ("Grant")established under Title XVI of Public Law No. 114-322 to assist in identifying and investigating opportunities to reclaim and reuse wastewater and promote the availability of new sources of clean water while promoting water and energy efficiency and environmental stewardship; and WHEREAS, this resolution certifies the Board of Directors' approval of the Sanitation District's application for the Grant. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The Board of Directors hereby approves the Sanitation District's application for a Grant to the United States Department of the Interior, Bureau of Reclamation, for Fiscal Year 2017-2018 to support projects identified by the SP-173 Effluent Reuse Study, support water reclamation and reuse, and promote water efficiency, sustainable water management, and environmental stewardship. Section 2: The Board of Directors authorizes the General Manager or his designee to submit an application for the Grant and to negotiate and execute any documents related to this Grant, including a grant application and cooperative agreement, to accept financial assistance from the U.S. Department of the Interior, Bureau of Reclamation. OCSD 17-12-1 Section 3. If the application for the Grant is approved, the Sanitation District has the capability to provide matching grant funds and/or in-kind contributions specified in the grant requirements. Section 4. The Sanitation District will work with the U.S. Department of the Interior, Bureau of Reclamation, to meet established deadlines for entering into a cooperative agreement. PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 26, 2017. Gregory C. Sebourn, PLS Chairman of the Board ATTEST: Kelly A. Lore, CIVIC Clerk of the Board OCSD 17-12-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Acting Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 17-12 was passed and adopted at a regular meeting of said Board on the 26'^ day of July 2017, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 261h day of July 2017. Kelly A. Lore, CIVIC Clerk of the Board of Directors Orange County Sanitation District OCSD 17-12-3 STEERING COMMITTEE Meeting Date Toad.of Dir. 07/26/17 07/26/17 AGENDA REPORT Item Number Iem Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: ORANGE COUNTY SANITATION DISTRICT RESPONSE TO GRAND JURY REPORT GENERAL MANAGER'S RECOMMENDATION A. Approve the Orange County Sanitation District response to the Orange County Grand Jury Report entitled, "Pension Enhancements: A Question of Government Code Compliance" published May 17, 2017; and B. Adopt Resolution No. OCSD 17-13 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District establishing a procedure to ensure compliance with Government Code section 7507 transparency requirements." BACKGROUND On May 17, 2017, the Orange County Grand Jury published a report which questioned whether the Orange County Sanitation District (Sanitation District) complied with all statutory transparency requirements when it authorized pension benefit enhancements ultimately adopted bythe Orange County Employees Retirement System (OCERS) Board in 2005. (1)The Sanitation District believes it complied with all operative statutory pension- related procedural requirements when it authorized pension enhancements. In 2002, the Sanitation District obtained an actuary to prepare a statement of the costs to change its pension benefits and responsibly considerthe financial impact prior to entering into the MOUs with its employee bargaining units. The Sanitation District has been unable to locate any documents to show that the Sanitation District made its actuarial report public two weeks prior to the meeting when the Sanitation District authorized the MOUs. At the time the MOUs were executed, the initial authorization of the pension benefit enhancements was preliminary, and adoption of the enhancements depended upon reaching a contractual agreement with OCERS to provide the new benefit formula, including any revised contribution rates. In 2005, OCERS obtained an independent actuarial study of the costs of the District's pension benefit enhancements to determine appropriate contribution rates. OCERS published the actuarial report and held a public meeting at which the increased costs were listed as a regular agenda item during a meeting of its Board of Retirement. Page 1 of 3 RELEVANT STANDARDS • California Government Code section 7507 • Penal Code Sections 933 and 933.05 • Ensure transparency and compliance with statutory requirements PROBLEM Penal Code sections 933 and 933.05 require the Sanitation District's Board of Directors to respond to the Grand Jury Report by providing comments to the Presiding Judge of the Superior Court on the findings and recommendations pertaining to matters under the control of the Sanitation District's Board of Directors. California Penal Code section 933.05 details the manner of the response in which such comments are to be made. PROPOSED SOLUTION A response to the Grand Jury Report finding and recommendation prepared by General Counsel is attached for review by the Sanitation District's Board of Directors. In its report, the Grand Jury recommended the Sanitation District "implement procedures that ensure compliance with all transparency requirements including those relating to the approval of pension enhancements." Adopting Resolution No. OCSD 17-13 will further implement transparency measures consistent with the District's response and will specifically ensure that the District provides two weeks' notice of its intent to approve an MOU that contains changes in retirement benefits. Resolution No. OCSD 17-13 is attached for review by the Sanitation District's Board of Directors. TIMING CONCERNS Penal Code section 933 requires the Sanitation District's Board of Directors to respond to the Grand Jury Report within 90 days of the date it is published. The Grand Jury published this report May 17, 2017. A response is due to the Presiding Judge of the Superior Court no later than August 15, 2017. RAMIFICATIONS OF NOT TAKING ACTION The Grand Jury can bring a civil action for a Writ of Mandate against the Sanitation District to compel the Sanitation District to perform its legally required duty to respond. The Grand Jury may also seek attorneys' fees in such an action. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 2 of 3 ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Response letter to the Orange County Grand Jury Report (Attachments 'A""D" listed in the response letter are available online only) • Resolution No. OCSD 17-13 Page 3 a 3 The Honorable Charles Margines Presiding Judge Orange County Superior Court 700 Civic Center Drive West Santa Ana,CA 92701 Dear Presiding Judge Margins: The Orange County Sanitation District (the"District")has received the Orange County Grand Jury Report entitled"Pension Enhancements: A Question of Govemment Code Compliance." In summary,the District responds as follows: 1. The District has been unable to locate any documentation confirming that the District's actuarial report was made public two weeks before the District approved MOUs,with enhanced retirement benefits, in 2003. 2. Assuming that the District failed to make its actuarial report public two weeks before the District approved MOUs in 2003, it is unclear whether that would have violated Government Code Section 7507. Under applicable law,the Orange County Employees Retirement System("OCERS"),not the District, has the authority to adopt changes in retirement benefits. Thus, it appears that the two-week notice requirement does not apply to the District. 3. The District wholeheartedly supports transparency in government, and especially when it comes to the expenditure of taxpayer and ratepayer funds. Thus,the District Board of Directors welcomes the attention that the Grand Jury has brought to this issue, and has adopted the attached Resolution. Under the Resolution,the District will comply with the notice requirements of Government Code Section 7507 regardless of whether those requirements are deemed to apply to the District. Response The District responds in detail to the Grand Jury's findings and recommendations as follows: Findings F.2 The Sanitation District did not provide documentary evidence that the operative code requirements were met by the Sanitation District Board of Directors when they approved 2.5%at 55 pension formula for sanitation workers in 2004. District Response: The District wholly disagrees with this finding. 1257827.1 The Honorable Charles Margines Page 2 Add date of letter Facts The District began considering an increased retirement benefit during labor negotiations in 2002. The District retained an actuary to estimate the cost of increasing the benefit formula from approximately 2% at 57 or 611 to 2.5% at 55.2 The actuarial report was completed on October 21, 2002. The District ultimately reached agreement on MOUs with the District's bargaining units in 2003. The MOUs included, among other things, a commitment by the District to seek a contract with OCERS that would increase the retirement benefit formula to 2.5% at 55.s On November 19,2003, at a regular meeting,the District Board of Directors authorized the General Manager to enter into the MOUs.4 Throughout 2004 and into 2005 the District discussed with OCERS a contract amendment that would implement the enhanced benefit formula and establish the required contribution rates. At the conclusion of these discussions, the OCERS Board adopted the increased benefit formula and contribution rates at a regular,public meeting on March 28, 2005. The OCERS Board had before them an actuarial study that calculated contribution rates for an increased pension benefit of 2.5%at 55.5 Response The District has been unable to locate any documents to show that the District made the actuarial report public at a public meeting two weeks prior to the meeting of November 19, 2003,when the District approved the MOUs. The District,therefore, could not, and did not,provide any such documents to the Grand Jury. The Grand Jury's finding,however,makes an assumption that may not be correct. The finding assumes that the District, in approving the MOUs, "adopted"the increased 1 Prior to the pension benefit enhancement adopted in 2005,the District utilized a fiered system in which both the District and its employees made contributions to OCERS.At retirement,employees received a monthly allowance based on their age,average monthly compensation during service,years of service,and tier selected.Tier I employees were hired on or before September 20, 1979,and Tier It employees were hired after that date.The average monthly compensation for Tier I employees was determined by taking the sum of the highest consecutive 12 months of compensation eamable and dividing by 12.The average monthly compensation for Tier It employees was determined by taking the sum of the highest consecutive 36 months of compensation eamable and dividing by 36.Although the tiered benefit structure did not use a percentage"measurement"to describe the structure,the resulting monthly compensation was approximately 2%at 57 for Tier I employees and 2%at 61 for Tier U employees. 2 The District provided a copy of the actuarial study,attached hereto as Attachment`B",to the Grand Jury. a Copies of the MOUs provided to the Grand Jury are attached here as Attachment"D." 4 The Board approved the MOUs in 2003,not 2004 as assumed in the Grand Jury request. Copies of all agendas and minutes from District Board of Directors meetings held in 2004 are attached hereto as Attachment"A." 'The relevant portion of OCERS'published agenda,meeting minutes,and the memorandum reporting the actuarial study previously provided to the Grand Jury are attached hereto as Attachment"C." 1257827.1 The Honorable Charles Margines Page 3 Add date of letter benefits within the meaning of Government Code Section 7507("Section 7507").' Under another reading of Section 7507,however, it was OCERS,not the District, which "adopted"the increased benefits. Under this reading,the two-week notice requirement did not apply to the District's action in approving the MOUs. Prior to 2008, Government Code section 7507 stated as follows: The Legislature and local legislative bodies shall secure the services of an enrolled actuary to provide a statement of the actuarial impact upon future annual costs before authorizing increases in public retirement plan benefits.An"emolled actuary"means an actuary enrolled under subtitle C of Title III of the federal Employee Retirement Income Security Act of 1974 and"future annual costs" shall include,but not be limited to, annual dollar increases or the total dollar increases involved when available. The future annual costs as determined by the actuary shall be made public at a public meeting at least two weeks prior to the adoption of any increases in public retirement plan benefits. The notice requirement is set forth entirely in the second paragraph of Section 7507. The paragraph states that the actuarial report"shall be made public at a public meeting"at least two weeks "prior to adoption." The Grand Jury finding assumes that the notice requirement applies to the"local legislative bodies"referenced in the first paragraph. That interpretation,however,appears to be inconsistent with the County Employees Retirement Law of 1937 ("CERL")' and relevant case law. Under the CERL,it is OCERS,not the District,which has final authority to adopt changes in retirement benefits.' The District's role is limited to negotiating and approving MOUs with its bargaining units.9 In the parlance of retirement benefit practice, agency employers like the District are considered"sponsors"of benefit changes. Sponsors must present retirement benefit changes to their retirement board—in this case, OCERS—for adoption. Unless and until OCERS adopts changes to retirement benefits, the District's approval of the MOUs has no effect. It follows that the two-week notice requirement does not apply to the District,because the District does not have the authority to "adopt'increases in retirement plan benefits. 6 While the Grand Jury Report cites a number of code sections,the only section that imposes any requirements on the District is Government Code section 7507. 'Gov.Code§31450 or seq. e Gov.Code,§§31520;Howard Jarvis Taxpayers'Assn. v. Board of Supervisors(1996)41 Cal.App.4th 1363, 1373 ("[tlhe Board of Retirement is vested with powers under CERL to manage the county's retirement system,including the responsibility of determining the amount of retirement allowance to which members are entitled)" 9 The process for negotiating and approving MOUs is set forth in the Meyers-Milias-Brown Act,Gov. Code§ 3500 et seq. 1257827.1 The Honorable Charles Margines Page 4 Add date of letter The California Supreme Court case Voters for Responsible Retirement v. Board of Supervisors of Trinity County(1994) 8 Cal.41h 765 supports this interpretation. In Voters for Responsible Retirement,a County Board of Supervisors approved an MOU in November of 1991. The MOU set forth an enhanced retirement benefit formula. In order to implement the changes described in the MOU, the County sought, and obtained, a contract amendment with the County's retirement system,the Public Employees Retirement System. The Supreme Court held that the County did not"adopt"the enhanced retirement benefits within the meaning of the PERS law or Section 7507 when the County approved the MOUs in 199 1.10 Rather, the benefit changes were not "adopted"until later, after PERS had considered and approved the enhanced retirement formula and the contribution rates.p The same reasoning appears to apply here. Recommendations R.2 The Sanitation District should implement procedures that ensure compliance with all transparency requirements including those relating to the approval ofpemion enhancements. District Response: The District agrees with this recommendation. To that end,the District adopted a Resolution at its meeting on July 26,2017 setting forth requirements identical to those contained in Section 7507. Attached hereto as Attachment"E"is Resolution No. OCSD 17-13 adopted by the Board on July 26, 2017. The Resolution requires the District to provide two weeks' notice of any changes in retirement plan benefits. Additional Information The Grand Jury Report describes, in a complementary manner, actions taken by the County Board of Supervisors to reduce pension benefits pursuant to the 2012 California Public Employees' Pension Reform Act(`PEPRA"). This acknowledgment is well deserved. The District would like to point out that the District has also played a significant leadership role in pension reform in Orange County. In fact,the District lowered pension costs in 2010 by adopting a two-tier retirement system—a full three years before PEPRA (AB 340)took effect. Then, in 2011,the District's Board of Directors successfully negotiated with employees to reduce pension benefit rates for new hires to 1.667% at 57.5. This is lower than the 2.5%at 67 maximum benefit ratio established in 2013 by PEPRA. 10 Voters for Responsible Retirement v.Board of Supervisors of Trinity County(1994)8 Cal.40 765,785. "Ibid.(`4he PERS statutes. ..required that the County not ultimately commit itself to amendment of the PERS contract at the time of adoption of the MOU's,but undertake additional procedures dictated by those statutes"). 1257827.1 The Honorable Charles Margines Page 5 Add date of letter The Grand Jury also expressed concern regarding the County's Unfunded Actuarial Accrued Liability("UAAL"). The District would like the Grand Jury to know that the District has aggressively reduced its UAAL through additional payments. In 2013,the District had an UAAL of close to $200 million. Although OCERS developed a long-term funding plan to allow agencies to pay these liabilities over a period of 20 to 30 years, the District paid its UAAL entirely in three years,thereby saving tens of millions of dollars in additional payments. Most recently,in January 2017,the District's Board of Directors adopted Resolution No. OCSD 17-01 which authorized the General Manager to enter into an MOU with OCERS to fully eliminate its existing unfunded pension liability and save tens of millions of dollars in premium payments. Finally, it bears noting that, in 2011,the District Board of Director's passed Resolution No. OCSD 11-22 to require all final action on compensation for represented employees take place in open session meetings. This requirement exceeds State law transparency requirements in that,under the Brown Act,votes on compensation for represented employees can be taken in closed session. This Resolution further demonstrates the District's commitment to transparency. If you have any further questions,please do not hesitate to contact me at(714) 593-7110. Sincerely, Gregory C. Seboum, PLS Board Chairman Orange County Sanitation District 1257827.1 RESOLUTION NO. OCSD 17-13 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING A PROCEDURE TO ENSURE COMPLIANCE WITH GOVERNMENT CODE SECTION 7507 TRANSPARENCY REQUIREMENTS WHEREAS, California Government Code section 7507 requires the local legislative bodies to take measures to determine and make public certain information pertaining to cost when considering changes in retirement benefits or other postemployment benefits; and WHEREAS, the Orange County Sanitation District('District')aspires to the highest degree of integrity, honesty, trust, and respect in its interaction with its customers and the community; and WHEREAS, in order to maximize transparency and opportunities for public participation, the Board of Directors desires to establish a procedure to ensure compliance with the transparency requirements provided in Government Code section 7507. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The District, should it consider changes in retirement benefits or other postemployment benefits, shall do the following: (a) Secure the services of an actuary as defined in California Government Code section 7507 to provide a statement of the actuarial impact upon future annual costs, including normal cost and any additional accrued liability, before authorizing changes in public retirement plan benefits orother postemployment benefits. (b) Ensure the statement of actuarial impact shall then be made public at a noticed public meeting at least two weeks prior to the consideration of a Memorandum 1255677.1 OCSD 17-13-1 of Understanding through which the Board would authorize any changes in public retirement plan benefits or other postemployment benefits. (c) Require an actuary to be present to provide information as needed at the public meeting at which the authorization of a benefit change shall be considered. (d) Prohibit the adoption of any benefit to which this Resolution applies from placement on a consent calendar. (e) Upon the adoption of any benefit change to which this Resolution applies, require the General Manager to acknowledge in writing that he or she understands the current and future cost of a benefit change as determined by the actuary. The requirements of this Resolution shall not apply to: i. An annual increase in a premium that does not exceed three percent (3%) under a contract of insurance. ii. A change in postemployment benefits, other than pension benefits, mandated by the state or federal government or made by an insurance carrier in connection with the renewal of a contract of insurance. Section 2. The Clerk of the Board shall certify to the adoption of this Resolution. PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 26, 2017. Gregory C. Sebourn, PLS Board Chairman ATTEST: Kelly A. Lore, CMC Clerk of the Board 1255677.1 OCSD 17-13-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 17-13 was passed and adopted at a regular meeting of said Board on the 26th day of July 2017, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 26th day of July 2017. Kelly A. Lore, CIVIC Clerk of the Board of Directors Orange County Sanitation District 1255677.1 OCSD 17-13-3 STEERING COMMITTEE Meeting Date TOBd.of Dir. 07/26/17 07/26/17 AGENDA REPORT IternNamber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: APPRAISAL TO ACQUIRE REAL PROPERTY GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to enter into an agreement with George, Hamilton, Jones, Inc. Real Estate Appraisers&Consultants to conduct an appraisal of real property located at 18429 Pacific Street, 1 841 0-1 8436 Bandilier Circle, and 18368-18375 Bandilier Circle to prepare the Orange County Sanitation District to initiate negotiations to acquire the same property in compliance with Government Code section 7267.1. BACKGROUND The Orange County Sanitation District (Sanitation District) is seeking real property to relocate non-process buildings and structures to address a future shortage of space for process facilities at Plant No. 1. To maximize the space available at Plant No. 1 for process facilities, the Sanitation District purchased property earlier this year and seeks to acquire additional property in the area between Ellis Avenue and the 1-405 Freeway between the Euclid Avenue off-ramp and Ward Street. Prior to initiating condemnation proceedings, Government Code section 7267.1(a) requires the Sanitation District to make every reasonable effort to acquire real property by negotiation. Government Code section 7267.1(b) requires real property to be appraised before the initiation of any such negotiation. General Counsel has recommended the proposed firm as they have previous experience working with the Sanitation District. RELEVANT STANDARDS • California Government Code section 7260 at seq. • Maintain collaborative and cooperative relationships with neighboring agencies • Provide a safe and collegial workplace PROBLEM The Sanitation District is anticipating a future shortage of space for process facilities if the non-process buildings and structures are constructed on-site. For this reason, the Sanitation District must relocate its non-process facilities. To acquire appropriate real property for those buildings, the Sanitation District may be required to initiate condemnation proceedings. Page 1 of 3 PROPOSED SOLUTION Retain an appraiser to conduct an appraisal and establish an amount which it believes to be just compensation for the real property located at 18429 Pacific Street, 18410-18436 Bandilier Circle, and 18368-18375 Bandilier Circle to initiate negotiations required by Government Code section 7267.1. TIMING CONCERNS There are a number of timing concerns associated with this project: • Acquiring additional property now would allow the relocation of non-process facilities and a parking structure to be sited on the new property. • Should it become necessary, condemnation proceedings may require several months to complete. Retaining an appraiser now will allow the Sanitation District to negotiate and prepare for any additional action required. • As the City of Fountain Valley Crossings Plan moves forward, the opportunity to acquire property in this area may diminish. • As the 1405 widening project relocates the main entry to Plant No. 1, parking for the Administration Building will be lost. • The Sanitation District is behind on their schedule commitment to City of Fountain Valley for Americans with Disabilities Act compliance. • Deferred maintenance on the current buildings may need to be completed if the project does not move forward in a timely manner. • Cost escalation is significant for the Headquarters Complex project. RAMIFICATIONS OF NOT TAKING ACTION N/A PRIOR COMMITTEE/BOARD ACTIONS November 2016 - Authorized the General Manager and General Counsel to approve escrow documents for the purchase of the Bender Property at 18475 Pacific Street and 18484 Bandilier Circle. October 2016 - Approved a Standard Offer, Agreement, and Escrow Instructions For Purchase of Real Estate with Bender Properties for the property at 18475 Pacific Street and 18484 Bandilier Circle for $10,619,180, and approved AIR Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease. July 2016 - Approved Broker Representation Agreement with Cushman & Wakefield to give exclusive authority to represent the Sanitation District, at no cost , for the investigation and potential negotiation to acquire existing office building and/or land for a new Administration Building in an area near Plant No.1. June 2016-Approved agreements forthe CEQA study and Architectural and Engineering design services. Page 2 of 3 October 2015 - Designated the southwest corner of Plant No. 1 as the location for the Headquarters Complex as the preferred alternative for CEQA evaluation under the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. June 2015 - Established new project and budget for Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. June 2014 - Approved a Professional Design Services Agreement with HDR to provide engineering design services for Administrative Facilities Implementation Planning, Project No. SP-194. November 2013 - Established a budget for Administrative Facilities Implementation Planning, Project No. SPA94. October 2013 - Staff presented an overview of the administrative facilities and their need for rehabilitation or replacement. June 2012 - Approved a Professional Services Agreement with The Austin Company to provide engineering services to prepare an Administrative Facilities Master Plan for the Title 24 Access Compliance and Building Rehabilitation Project, Project No. P1-115, for an amount not to exceed $175,000. May 2012 - Authorized GM to negotiate a Professional Services Agreement for Administrative Facilities Master Plan. CEQA An evaluation of the environmental impacts per the California Environmental Quality Act for the Headquarter Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128 is currently being conducted. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted and the funds are sufficient. (FY 2017-18 Update, Appendix, Page A-9, Project No. P1-128). 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 3 d 3 (,�5� CLOSED SESSION 1 WOODRUFF $PRA,. . . . . . .SMART. 555 ANTON BOULEVARD, BUITC1200 COsIA MNsA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: July 17,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on July 26, 2017 for the purpose of conferring with its legal counsel regarding a potential eminent domain action. Based on existing facts and circumstances, the Committee is deciding whether to initiate litigation against another party. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(4). The facts and circumstances are as follows The Board may consider filing an eminent domain action against Sukut Real Properties LLC for the properties 18429 Pacific St. Fountain Valley, CA,APB No. 156-163-09: 18410 Bandilier Cit. Fountain Valley, CA,APN No. 156-163-10: and 18368 Bandilier Cit. Fountain Valley, CA, APN No. 156-163-11. Respectfully submitted, By Bradle . Hogin, Cenral Counsel 1114541.1 CLOSED SESSION 2 WOODRUFF SPRADLIN&SMART 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: July 19,2017 RE: Closed Session Items The Steering Committee will hold a closed session on July 26, 2017 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: Valley Business Park,APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13,APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The his Trust Shabtai,Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; K&A Investments LP,APN No. 156-154-08;Fountain Valley Star LLC,APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC,APN No. 156-163-13;Phone Lilly Lin-Lin TR,APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156- 163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC,APN No. 156- 151-03; 7311 Doig Drive Garden Grove,CA,APN No. 131-654-20. The District's negotiators are Jim Herberg, Rob Thompson,Kathy Millea and Jeff Mohr, Wendy Sevenandt, Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respectfully submitted, By. /f BradleY R. Hogin, Vieneral Counsel 11921611 ►` WOODRUFF,.SPRADLIN&SMART CLOSED SESSION 3 555 ANTON BOULEVARD, BUTTE1200 C09TA MN9A, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: July 19,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on July 26, 2017 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a party. The title of the case is City of Los Angeles, et al. v. County of Kern, Tulare County Superior Court, Case No. 242057. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By Bradle . Hogin, Oeneml Counsel 1179357.1 •T WooDRDFF,.SPRADLIN&SMART . . CLOSED SESSION 4 555 ANTON BOULEVARD, BUITC1200 C.sIA MNsA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: July 19,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on July 26, 2017 for the purpose of conferring for the evaluation of the General Manager. Said closed session will be held pursuant to the authority of Government Code Section 54957(b)(1). Respectfully submitted, By: Bradley I . Hogin, Giefieral Counsel 1165663.1 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.