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HomeMy WebLinkAbout11-12-2014 Legislative and Public Affairs Committee Agenda Orange County Sanitation District O.0 ion Wednesday, November 12, 2014 WnIATION Legislative and Public 1 4:00 P.M. Affairs Special Committee 1 Administration Building Conference Room A& B 10844Ellis Avenue Fountain Valley, CA (714) 593-7130 lssa-zgi� COMMITTEE MEMBERS: Tom Beamish (La Habra) David Benavides (Santa Ana) Tyler Diep (MCSD) John Nielsen (Tustin) Brad Reese (Villa Park) Greg Sebourn (Fullerton) John Withers (IRWD) AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: if you wish to speak, please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT ITEMS: 1. Approve minutes for the Committee meeting held on October 20, 2014. INFORMATIONAL ITEMS: 2. Federal Legislative Update 3. State Legislative Update 4. OCSD Public Affairs Update 11/12/14 Legislative and Public Affairs Special Committee Page 1 of 2 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: ADJOURNMENT: The next Legislative and Public Affairs Special Committee meeting is scheduled for Monday, December 8, 2014, at 8:00 a.m. 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)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Postina: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 mavalaaocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager James D. Herberg (714)593-7300 iherbemOomd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli(o3ocsd.com 1111W14 Legislative and Public Affairs Special Committee Page 2 of ITEM NO. 1 MINUTES LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE MEETING Orange County Sanitation District The Legislative and Public Affairs Special Committee meeting convened on Monday, October 20, 2014, at 8:02 a.m. in the Administration Building of the Orange County Sanitation District. Board Chair, Tom Beamish, led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager Tom Beamish, Board Chair Bob Ghirelli, Assistant General John Nielsen, Board Vice-Chair Manager Brad Reese, Administration Committee Nick Arhontes, Director of Facilities Chair Support Services John Withers, Administration Jeff Reed, Director of Human Committee Vice-Chair Resources David Benavides, Director Rob Thompson, Director of Tyler Diep, Director Engineering Greg Sebourn, Director Lorenzo Tyner, Director of Finance & Administrative Services Maria E. Ayala, Clerk of the Board Jim Colston, Environmental Compliance Regulatory Affairs Manager COMMITTEE MEMBERS ABSENT: Jennifer Cabral, Principal Staff Analyst None. Kelly Newell, Public Affairs Specialist Norbert Gaia OTHERS PRESENT: Brad Hogin, General Counsel Heather Stratman, Townsend Public Affairs Eric Sapirstein, ENS (via teleconference) Minutes of the Legislative and Public Affairs Special Committee October 20,2014 Page 2 of 4 PUBLIC COMMENTS: None. REPORTS: Chair Beamish reported on the recent meeting from GWRS. General Manager, Jim Herberg, reported on the following: OCSD agency and individual memberships and annual cost for these memberships (a list of agency memberships was distributed to the Committee); the plans to proceed with the discussion on rebranding of the organization; the SAWPA Watershed Conference held last Tuesday, Mr. Herberg presented at the conference and a number of staff attended as well; and, the District received some calls from the media seeking comment on the change of our investment management firm. Mr. Tyner responded to the calls on this matter. CONSENT ITEMS: 1. MOVED, SECONDED, and DULY CARRIED to: Approve the minutes for the Committee meeting held on September 8, 2014. AYES: Beamish; Benavides; Diep; Nielsen; Reese; Sebourn; and Withers NOES: None ABSTENTIONS: None ABSENT: None INFORMATIONAL ITEMS: 2. Federal Legislative Update Mr. Sapirstein reported that various decisions and/or actions will not be taking place until after the November elections, and the impact election results may have on budget, certain bills, loan and grant funding. Mr. Sapirstein gave a brief update on the drought bill. He also reported that he attended the WEFTEC Conference. He sat in on a meeting that included District employee, Christopher Stacklin. Mr. Sapirstein commented that Mr. Stacklin represented the District very well. Minutes of the Legislative and Public Affairs Special Committee October 20,2014 Page 3 of 4 The Committee had questions regarding WIFIA and what projects qualify for special government funding. Staff responded to questions accordingly. 3. State Legislative Update Ms. Stratman provided an update on the current polling of the Water Bond. If the bond should pass it could present significant funding opportunities for water recycling. She advised the District to think about possible trailer bill legislation, when planning potential future GWRS expansion, should the bond pass. The Committee briefly discussed the possibility of funding for future GWRS projects. 4. OCSD Public Affairs Update Assistant General Manager, Bob Ghirelli reported on OCSD's recent and upcoming Public Affairs outreach efforts including: a local coastal cleanup day, speaking engagements, plant tours, career days, etc.; the employee health fair last week; hosting over 11 tours in the last month; etc. Dr. Ghirelli explained the process for the upcoming RFP on legislative services. Completion of the RFP process could be done in November and presented to the Board for approval in November. He also reported that the District has received 34 requests from local hospitals seeking information and on how the District would handle Ebola contaminated waste. Dr. Ghirelli and Mr. Herberg may be meeting with Joe Adams, from the Discovery Science Center, next week to discuss possible collaboration with the District. The District will begin internal branding workshops next week with staff focus groups. There is a consultant on board, and staff should be reporting on this no later than December. Director Seboum inquired about a possible District video on the water treatment process. He also commended Rob Thompson, Director of Engineering, for a very informative presentation at a recent Council Meeting in the City of Fullerton. Minutes of the Legislative and Public Affairs Special Committee October 20,2014 Page 4 of 4 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Beamish declared the meeting adjourned at 8:50 a.m. Submitted by: Maria E. Ayala Clerk of the Board ITEM NO. 2 RESOURCES MEMORANDUM TO: Jim Colston FROM: Eric Sapirstein DATE: November 5,2014 SUBJECT: Washington Update: Mid-Term Elections Over the past month, activities were limited due to the congressional election cycle. Last night's elections,and the outcomes,set in motion the opportunity for Congress and the Administration to reset the policy debate and find common ground in the next eighteen months. The following summarizes some of the changes that the District should anticipate when Congress returns to work for the Lame Duck Session on November 12 and into the coming year. Importance to District The impact of the election returns will be important to the District on several levels. First,and most important,the District's congressional delegation will return for the 114th Congress with a strong vote. Representatives Royce and Rohrabacher will continue to hold significant seniority within the House of Representatives serving as leaders on foreign policy and science and technology policy respectively. On the Democratic side of the equation, Representatives Sanchez and Lowenthal will continue to serve on key committees that have direct or indirect jurisdiction over District issues such as water resources and security. Finally, Representative Calvert,a former District delegation Member, will continue to have authority over the USEPA budget as a senior member of the Committee on Appropriations and presumably chair of the USEPA funding subcommittee. Calvert is expected to continue to support water infrastructure needs through the budget process. In the Senate, Senator Feinstein will continue to sit on the Committee on Appropriations but as the Ranking Member on the Energy and Water Subcommittee that funds water recycling and desalination projects as well as U.S.Army Corps. of Engineers flood protection needs. Feinstein should also retain a position on the Senate USEPA funding subcommittee. For the District,this means that it will continue to have a solid ENS Resources,Inc. 110114th Street,N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telefax 202.466.3787 congressional delegation to work with in the coming Congress on matters ranging from regulatory reform to infrastructure funding needs. Summary: Election Reflects Dissatisfaction with Status Quo Last night's elections shattered the myth that the country was turning purple. Instead, Democratic inroads established by the first and second Obama presidential wins were not shellacked but rather obliterated as Republicans reversed all of the gains and made substantial progress in growing their elected ranks at all levels of government. The president may decide to use the power of the pen to impose policy changes,however,that pen has only so much ink in it and the Republican majority can act to erase any Executive Order through the budget process. If the Republican brand was broken, or sucks, (as Senator Paul Rand suggested) last night's returns discount that view and instead cast doubt on the President's relevance going into his last two years. At a minimum,an alienated congressional team and an emboldened House and Senate Republican majority complicate the President's priorities. The House Republicans padded their majority with a total of 242 seats or an eleven seat pickup. While the Senate and House are now firmly in Republican hands,the line-up of each party appears to be even more along ideological lines. The accession of the Republican majority means that the first order of business for the putative Majority Leader,Mitch McConnell (KY), after his election by his conference,will be to decide on committee chairmen appointments. A number of chair decisions are already anticipated due to the seniority system. The Senate Democrats will have additional challenges ranging from assuming the minority,which Senator will assume ranking positions on committees, and deciding on whether an attempt to change their leadership will be launched. All this must be accomplished in the next several weeks,along with a vote on how to fund the federal government beyond December 18 when the Continuing Resolution expires. Regardless of how leadership races and committee assignments are decided,the political calculus has indeed changed beyond prognostications of the past several weeks. The following offers our best guess at this stage on how the legislative agenda may evolve in the next Congress as well as who will wield power within the key energy,environment and tax policy committees. United States Senate The election returns currently provide a 52- 44 Republican majority. Maine and Vermont's two Independents caucus with the Democrats. Two seats Alaska and Louisiana remain outstanding,pending final decisions. In the final analysis,it would appear that Senate Republicans might end with a 54-seat majority, nowhere close to the magic 60 votes that allow for breaking a veto,but enough to command the policymaking process. The net outcome of ENS Resources,Inc. 110114th Street,N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telehx 202.466.3787 the Senate elections is that a wave election did in fact sneak in under the radar screen as Georgia, Colorado,North Carolina,Kansas, Iowa and Arkansas will line up in the Republican column along with the expected switches in Montana, South Dakota and West Virginia come January. The Republicans will be led by Senator Mitch McConnell (KY) and most likely John Cornyn (TX) will serve as the Assistant Majority Leader. Rounding out the leadership, Senators John Thune (SD) and John Barrasso (WY) are expected to continue in leadership roles. For the Senate Democrats,the leadership roster may be a humdrum affair with a decision to vote for Senator Harry Reid(NV) to transition to Minority Leader. The cathartic process of reviewing the dramatic losses (and losses by a significant majority in some cases),along with the background knowledge that voters were fed up with the current political course and direction of the country could serve as a catalyst to install new leaders and address voters views that the country is on the wrong track by a whopping 66%. But current Senate leader Harry Reid (NV) cannot be counted out,given his reputation as a fighter and one who has spent the past several years protecting his caucus and carrying the issues for the White House. If the Democratic caucus were an episode of House of Thrones,keep your eyes on Chuck Simmer(NY), Dick Durbin (IL) and Patty Murray(WA) to see how they portray the election results and the next steps for Senate Democrats. Currently they have been quoted as backing Reid for Minority Leader,suggesting that Reid's vast knowledge of Senate procedures and his unwavering support of his caucus in the past several years will carry the day. Senate Composition and The Lame Duck Session Two issues will dominate the Senate. First,who will chair committees and,with the new majority ratio,which Senators will sit on which committees and which Democrats will lose their seats as the ratios change to accommodate the new Republican majority. A second consideration will also come to the fore. How will the new majority set the agenda? First out of the gate in the Lame Duck will be developing either a four month continuing resolution or passing a year-long fiscal year 2015 budget. After that is decided, setting the agenda for the coming 114th Congress will dominate discussions in the coming weeks. Because the new Senate ratio is expected to favor the Republicans by almost the same number as the current Senate,we anticipate a shift in committee membership rosters that provide Republicans a two-seat majority on each committee. It is unclear how assignments will shake out since vacancies in the Democratic column and potential committee assignment shifting may limit culling of the committee rosters. For the Republicans,it will be an easier task since they will be in the position of adding to the membership. ENS Resources,Inc. 110114th Street,N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telefax 202.466.3787 The new Republican Members are: • Tom Cotton,AZ • Cory Gardner, CO • Joni Ernst,IA • Thom Tillis, NC • Mike Rounds,SO • Shelly Moore Capito,WV • Dan Sullivan,AK(if election is called in his favor) • Bill Cassidy,LA (if he wins run-off with Mary Landrieu) The lone Democratic outright win by a challenger was Michigan's Gary Peters who will replace retiring Senator Carl Levin. Committee on Appropriations If one committee personifies the consequences of an angry electorate,fate dealt a huge blow to the Committee on Appropriations. Retirements and losses mean as many as five losses as Begich (AK), Pryor(AS), Landrieu (LA),Johnson (SD), and Harkin (IA) leave the Democratic side of the ledger, should Begich and Landrieu not return. On the Republican side,it appears that Senator Thad Cochran (MS) will return to chair the committee. According to congressional scuttlebutt, next in line Senator Richard Shelby(AL) has the seniority to chair the Committee on Banking and it is thought he will select that option. Senator Barbara Mikulski (MD) is expected to remain serving as the Ranking Member. But recognizing the new ratios she will have fewer members on her side of the committee to work with. Senator Dianne Feinstein will remain in place on the key energy and water subcommittee as the Ranking Democrat and as a senior member of the USEPA funding subcommittee. In both capacities,she will enjoy a role in deciding how to fund core water quality programs of interest to the District. The key issue for the committee involves developing and finalizing a spending bill for fiscal year 2015 during the Lame Duck Session. Looking forward, the committee will face a replay of fiscal year 2013 when sequestration wreaked havoc on the budget process. Sequestration returns to challenge the committee as it begins fiscal year 2016 budget negotiations. However,if the economy improves and tax reform actually gains traction,the ultimate impact of any sequestration may be muted since revenues might actually increase to the Treasury and thereby reduce the need for sequestration to reduce the deficit and spending. Committee on Environment and Public Works This key committee with jurisdiction over water quality,water supply, highways and endangered species will see a sea change in philosophical outlook with its new chair. James Inhofe (OK)will return to the chairmanship as Barbara Boxer(CA) is expected to assume the Ranking Member position. However, Boxer is in line to assume the Ranking position on the Commerce ENS Resources,Inc. 110114th street,N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telehx 202.466.3787 Committee giving pause to the automatic assumption that she would remain on SEPW. If she did leave, odds would favor Tom Carper (DE) to become Ranking Member Inhofe and Boxer worked well on key infrastructure matters such as transportation. He has been a consistent supporter of water infrastructure financing needs,perhaps indicating that water infrastructure policy could be on the committee agenda next year. In the past,he has lent his voice in support of congressionally directed spending as a prerogative of Congress and this may help in developing new rules governing the congressional spending priorities. The matter of regulatory policymaking and streamlining has consistently been another interest of the incoming chair and this could also form an important element of the committee agenda. Finally,the huge policy debate surrounding climate change and the White House strategy of relying on the power of the Executive Order is likely to capture a substantial amount of the committee's attention. Committee on Energy and Natural Resources The committee will see a significant shift, if only because of the number of Democratic losses. Senator Murkowski (AK) will assume the chair. The Ranking Member is complicated. Current chair, Landrieu (LA),is in a December run-off and should she not prevail, it would appear that Senator Maria Cantwell (WA) could assume the Ranking Member position. The committee roster might not see significant change in membership because of the large number of losses on the Democratic side as Johnson (SD), Udall (CO),and potentially Landrieu could avoid the need to cull additional members to address ratios between the two parties. For the Republicans, all committee members return for the 114th Congress. So the key decisions will involve assigning new members; perhaps two new members. The key issues that the committee is expected to address under Murkowski leadership are likely to be traditional energy recovery,fracking and alternative energy production,management of public lands,and climate change. The huge issue remains the western drought. Murkowski,serving as the current Ranking Member,has allowed piecemeal approaches to drought responses on a state-by- state basis. As chair,she may desire to assemble a comprehensive drought response measure that can address western-wide water resources needs with support for water recycling and other water use efficiency programs. Additionally,while her committee does not have direct jurisdiction over the Endangered Species Act,she could work with Inhofe at SEPW to develop an ESA reform measure that would assist in the development of energy supplies. ENS Resources,Inc. 110114th Street,N.W.,Suite 3S0 Washington,D.C.20005 Phone 202.466.3755/Telefax 202.466.3787 Committee on Finance If one committee might be the center of policymaking in the 114th Congress,it is the Committee on Finance. The election returns have an undercurrent that tax policy needs to be overhauled. Despite the naysayers that suggest Congress would be unable to fashion a reform measure,one need only look to 1986 when then President Reagan worked with a Democratic Congress that enjoyed almost identical ratios as the incoming Congress and secured the Tax Reform Act of that year. The committee is expected to be chaired by Senator Orrin Hatch (UT). Hatch will be joined by his present colleagues on the committee as all Republican Members are returning. Current chair Ron Wyden (OR) will assume the Ranking Member slot. Wyden will likely be joined by most of his current members on the committee with the exception of Jay Rockefeller (WV) who retired. Depending upon final agreements on committee ratios, Hatch could see an additional two Republicans sitting on the committee and Wyden could lose one member. The committee will likely face intense pressure to address tax reform as loophole closings,lower corporate and personal tax rates, expired R&D and other tax credits as well as calls to end the use of tax inversions could combine to force a tax reform measure that the committee has sought to design over the past two years. Within this debate,we expect that the continued availability of tax exempt municipal financing will again be debated and whether new approaches such as Build America Bonds and public private partnerships offer a better way to finance infrastructure. Adding to the elements that could force action is sequestration. Under the existing budget agreement, sequestration is triggered as part of the fiscal year 2016 budget process that begins in February 2015. Each party would incur consequences should Congress allow sequestration to proceed as almost every aspect of the federal government would experience cuts without consideration to the impact upon the economy. Tax reform could reap benefits to both parties by creating lower tax rates,closing loopholes and generating revenue from increased economic activity. All of these would lead to a reduced need for sequestration and thereby allow for informed budget decisions for fiscal year 2016 as congressional and the Presidential elections get underway. U.S.House of Representatives House Republicans solidified control over the U.S. House of Representatives in the midterm election picking up at least 11 seats thus expanding their majority to its highest level in more than eight decades. While maybe not as dramatic as the Republican seizure of the Senate, changes in the House due to voluntary and forced retirement will have equal,if not greater impact, on the political landscape. One ENS Resources,Inc. 110114th StreeL N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telefax 202.466.3787 thing is for certain;we will be witness to a wild game of musical (committee and subcommittee) chairs. Speaker John Boehner (R-OH) has allotted 15 days for the Lame Duck Session. However, it is possible,absent a crisis, the session may be even more limited. Key items on the House Republican agenda for the session may include: passage of a short-term CR or omnibus spending measure,authorization of the use of military force against ISIL, R&D and other expired tax provisions,terrorism risk insurance,trade bills and funding to address the Ebola outbreak. Impact on Committee and Subcommittee Leadership During the Lame Duck Session,House members will vote on colleagues to serve on standing committees for the 114th Congress. As a result of the election and retirement of a number of key members,the 114th Congress will feature a much different look. The legislative agenda for the 114th Congress will greatly influence funding and policy issues of significance to public agencies and related organizations with interests in water resources, transportation,economic development,tax policy,alternative energy and other issues. Committee on Appropriations The midterm election largely left full Committee on Appropriations intact as Chairman Hal Rogers (KY) and Ranking Member Nita Lowey(NY), Energy and Water Chairman Mike Simpson (ID) and Ranking Member Marcy Kaptur(OH) who all successfully defended their congressional seats and are expected maintain possession of the gavel in 2015.The Subcommittee on Interior and Environment will continue to be chaired by Representative Ken Calvert(CA). The key issue for Calvert will be to shepherd the EPA fiscal year 2015 budget through Congress with provisions to scale back the USEPA waters of the U.S. rule as well as ensuring water infrastructure assistance under the SRF program. Committee on Energy and Commerce Committee Chairman Fred Upton (MI)will continue as chair. On the minority side, Ranking Member Henry Waxman (CA) is retiring; next in line in seniority are Ana Eshoo (CA) and Frank Pallone (NJ). These two are working to secure the necessary votes from the Democratic Caucus. Whoever wins will have responsibility over drinking water quality,health care,energy efficiency and alternative energy programs. And finally and most notably the committee will wrestle with climate change mandates issued by the Administration. ENS Resources,Inc. 110114th Street,N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755/Telefax 202.466.3787 Committee on Natural Resources Chairman Doc Hastings (WA) is retiring. Representative Rob Bishop (UT) is expected to hold the gavel in 2015. Ranking Member Peter DeFazio (D-OR) may move to the Committee on Transportation and Infrastructure, opening up an opportunity for a new Ranking Member. This committee will address drought relief and ways that water recycling can address the persistent drought an issue that should benefit the District's interests. Within the committee the key Subcommittee on Water and Power will see a new chair. Wyoming's Representative Cynthia Lummis is next in line to become chair. Ranking Member Grace Napolitano (CA) could remain in this role or she may depart the subcommittee to become Ranking Member on the Committee on Transportation and Infrastructure's Subcommittee on Water Resources and Environment with its jurisdiction over the Clean Water Act and wastewater infrastructure policy. If this occurs Representative Jim Costa(CA) could become the Ranking Member on Water and Power,but interest from others exists because of the significant role the subcommittee plays on California water issues. At this moment Costa is behind in a very close race that has yet to be called. If Costa is defeated,the next member in line is Californian Representative Jared Huffman. Committee on Transportation and Infrastructure The House Committee on Transportation and Infrastructure will face significant changes in the 114th Congress. At the top, Chairman Bill Shuster (R-PA) remains firmly in control and is expected to drive an aggressive agenda that will include consideration of water infrastructure needs,reauthorization of surface transportation and aviation measures. With the defeat of Ranking Member Nick Rahall (WVA), Representative Peter DeFazio (OR) is expected to replace Rahall as the top Democrat on the committee. DeFazio is viewed as a vocal and staunch western environmentalist. DeFazio would need to give up his current ranking member spot on the Committee on Natural Resources. Committee Republicans lose four of their 10 most senior lawmakers due to retirement: Tom Petri (WI), Howard Coble (NC) and Gary Miller(CA) and Shelley Moore Capito (WV). In the area of water policy,the defeat of Tim Bishop (NY)who served as Ranking Member for the Subcommittee on Water Resources and Environment, opens up the slot for Napolitano. Napolitano has been a champion of water infrastructure and specifically water recycling needs. If she takes the slot,her willingness to negotiate on important policy issues could boost chances for development of water infrastructure policy. Committee on Ways and Means With Chairman David Camp (MI) retiring Budget Committee Chair Paul Ryan (WI) is the front-runner to take the chairmanship of the tax writing committee. Texan Kevin Brady has also expressed his desire to be the next chair. Ranking Member Sander Levin (MI)will likely return as Ranking Member. A number of ENS Resources,Inc. 110114th Street,N.W.,Suite 3S0 Washington,D.C.20005 Phone 202.466.3755/Te1efxx 202.466.3787 California Members are expected to return to the committee and includes Representatives Devin Nunes,Xavier Becerra, Linda Sanchez and Mike Thompson. The Ways and Means Committee is expected to pursue tax reform as a top priority in the coming year. The committee has consistently reviewed the continued availability of tax exempt financing as a viable approach to financing public infrastructure. A number of Members have promoted policies that would curtail such financing and instead rely on infrastructure banks,public private partnerships,and alternatives such as low interest loans that are highly leveraged through private and public borrowings. Should the committee and its Senate counterpart, Finance,do advance tax reform bills,the District will likely witness an aggressive effort to limit tax exempt financings in order to stem revenue losses to the U.S.treasury attributable to the tax exempt nature of the local bonds. ENS Resources,Inc. 110114th Street,N.W.,Suite 3S0 Washington,D.C.20005 Phone 202.466.37SS/Telefax 202.466.3787 LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE rie ,' �-Ie AGENDA REPORT em Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Heather Dion Stratman SUBJECT: STATE LEGISLATIVE UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY 2014 Election Results On Tuesday, November 4, millions of Californians cast ballots in the 2014 General Election. Voters weighed in on six different statewide propositions, and prominent statewide races including the re-election of Governor Jerry Brown. As projected, Governor Brown was re-elected to his fourth term by a 17.4 percent margin, with 5.19 million votes cast. Governor Brown first won office 40 years ago, in 1974, and is the state's longest-serving governor. Brown's agenda in his final term is expected to focus heavily on policies addressing climate change and on two controversial legacy projects: construction of a high-speed rail system and a water conveyance system that eluded Brown when he was governor before. In the Senate, the Democrats were unable to regain the supermajority. As of the writing of this report, Democrats hold 26 seats, while Republicans hold 11 seats, with 3 seats still too close to call. Republicans captured two closely contested Senate seats central to the supermajority hopes of Democrats. Orange County Supervisor Janet Nguyen defeated former Assemblyman Democrat Jose Solorio, while Republican Senator Andy Vidak, defeated a challenge from Democrat Luis Chavez to retain a spot in the Senate he first won in a tight special election last year. Four seats will be vacant for the time being as several Senators, including Orange County Senator Mimi Walters, are slated to join Congress. This will result in several special elections needing to be held within about 140 days to fill those seats. On the Assembly side, several key races are still too close to call, leaving the status of the Assembly supermajority unknown. Without two-thirds majority, Democrats will not be able to pass new taxes, advance ballot measures, or enact immediately effective "urgency" bills without Republican votes. Two vulnerable freshman Democrats, Sharon Quirk-Silva of Fullerton and Steve Fox of Palmdale, lost seats that became focal points for a Republican party intent on fracturing Democratic control. As of the writing of this report, the makeup of the Assembly is 52 Democrats, 23 Republicans and 6 races that Page 1 of 3 are too close to call, including two targeted Central Valley Democrats Rudy Salas and Adam Gray. In the local Orange County elections, Lisa Bartlett and Michelle Steel will join the County of Orange Board of Supervisors. Lisa will represent the fifth district, which includes the South County Cities of Aliso Viejo, Dana Point, Laguna Beach, Laguna Hills, Laguna Woods, Lake Forest, Mission Viejo, Rancho Santa Margarita, San Clemente, San Juan Capistrano and a small portion of the City of Irvine. Michelle will represent the second district, which includes Costa Mesa, Huntington Beach, Fountain Valley, Newport Beach, Seal Beach, La Palma, Los Alamitos, Cypress, Stanton and a portion of Buena Park. A special election will be held sometime in the spring to replace Janet Nguyen's Supervisor seat. Proposition 1, the Water Quality, Supply and Infrastructure Improvement Act of 2014, was the culmination of an eight-year process in which a water bond was to be placed on the ballot, was twice delayed at the urgings of Governor Schwarzenegger and Governor Brown, and then ultimately, a replacement measure was introduced, passed, and signed by Governor Brown to appear on the November ballot. Proposition 1 passed with a wide margin, gamering 67 percent support. This is the fourteenth water bond that has gone before the voters since 1960, and the thirteenth to pass. The passage of Proposition 1 will result in $810 million available for regional water reliability. This measure includes $510 million for integrated regional water management, $200 million for storm water capture and $100 million for water conservation. The bond also includes $725 million for water recycling projects and activities of which both planning and feasibility projects are included. Funding Opportunities On October 23, the California Association of Sanitation Agencies (CASA) held a seminar on funding opportunities for the wastewater sector. Topics included the Clean Water State Revolving Fund (SRF) loan program, the Integrated Regional Water Management (IRWM) grant program, as well as the Financial Assistance Application Submittal Tool (FAAST). • Proposition 84 Implementation Grants: $251.5 million o Guidelines Released Spring 2015 o Applications Due Fall 2015 o Awards Spring 2016 • Water Energy Grant: $19.1 million o Maximum Award: $5 million per applicant; $2.5 million per project o Projects must reduce greenhouse gas emissions, water use and energy use Page 2 of 3 • IRWM Application Strategies o Follow IRWM state preferences and priorities and regional plan objectives o Shovel-ready projects with matching funds will have a greater advantage o Having CEQA, CASGEM, and UWMP will be required • Clean Water State Revolving Fund (SRF) o Funding for infrastructure for wastewater and recycled water o Flexible terms and extended 1% rates for recycled water project funding available o Water Resources Reform and Development Act (WRRDA) has new requirements for fiscal sustainability and climate issues PRIOR COMMITTEE/BOARD ACTIONS N/A Page 3 of 3 LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL MEETING Meeting Date 11/12/14 AGENDA REPORT Item Number 4 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: PUBLIC AFFAIRS UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Staff will provide an update on recent public affairs activities. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION For the month of October 2014, OCSD reached approximately 1475 guests through tours, community events and speaking engagements. Below is a breakdown by event. Activity #of Events #of Guests OCSD/OCWD Tours 4 62 OCSD Tours 8 113 Speaking Engagements 3 300 Outreach Booth 2 1000 BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(s) are included in hard copy and may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Outreach Calendar • Monthly News Clips Page 1 of 4 Return to Agenda Report c� OCSD Outreach Report - 1 1/412 0 1 4 Date Time Organization/Event Location Purpose Attendee Contact 11/05/2014- 700- 1200 Speaking Engagement IRW D Learning Michelle Hetherington, Jeff OCSD Staff Speakers Cheryl Scott Center Mohr and Sharon Yin to speak at the SARBS Solids Processing Seminar 11/05/2014- 900- 1100 Plant Tour Boardroom CMHS Coastkeepers to Ingrid Hellebrand Tour Cheryl Scott tour P1 and Lab.Approx. Guide 28 guests. 11/07/2014- 900- 1030 Plant Tour Boardroom UCI Engineering to tour Mark Esquer Tour Guide Cheryl Scott P1. Approx. 15 guests. 11/10/2014- 1330- 1430 Lab Tour LAB Chinese Delegation to tour Mike VonWinkelmann tour Cheryl Scott P1 LAB Guide 11/12/2014- 900- 1030 Plant Tour Boardroom CSUF Nursing class to tour Gina Tetsch Tour Guide Cheryl Scott P1. Approx. 10 guests. 11/13/2014- 900- 1030 Plant Tour Boardroom Columbus Tustin Middle Dickie Fernandez Tour Cheryl Scott School to tour P1. Approx. guide 40 guests. 2 tours 11/14/2014- 900- 1100 Plant Tour Boardroom Columbus Tustin Middle Dindo Carrillo and Sharon Cheryl Scott School to tour P1. Approx. Yin Tour Guides 40 guests. 11/4/2014 3:45:59 PM Retum to Agenda Report c� OCSD Outreach Report - 111412014 Date Time Organization/Event Location Purpose Attendee Contact 11/17/2014- 1330- 1500 Plant Tour Boardroom Orange Coast College to Jeff Armstrong Tour Guide Cheryl Scott tour P1. approx. 20 guests. 11/19/2014- 900- 1030 Plant Tour Boardroom CSUF Nursing Class to Gina Tetsch Tour Guide Cheryl Scott tour Plant 1. 11/25/2014- 900- 1030 Plant Tour Boardroom New Employee/Open to Ann Crafton Tour Guide Cheryl Scott the Public Tour 11/4/2014 3:45:59 PM Return to Aaenda Reo., Monthly News Clippings G�JN-ixV S A N I TgT�Oy = 9 Q 2 c� o � FCTi� �E ENv`��� November 2014 OCSD Public Affairs Office Return to Mende Report Table of Contents FINANCE.................................................................................PAGE 1 October 23, 2014 OCSD dumps Pimco for new asset manager By: Ankush Sharma Reuters SPILLS....................................................................................PAGE 2 November 2, 2014 Sewage spill closes channels in West Newport Bay By: Salvador Hernandez Orange County Register November 3, 2014 Sewage spill closes West Newport Bay channels until at least Wednesday By: Hannah Fry Daily Pilot Return to Mende Report October 23, 2014 Reuters Orange County Sanitation District dumps Pimco for new asset manager Thu Oct 23,2014 8:1 tam EDT (Reuters)-The Orange County Sanitation District(OCSD), a wastewater treatment facility in California,became the latest institutional investor to move money away from bond giant Pimco, weeks after the shock departure of Pimco's CIO Bill Gross. The OCSD said its board on Wednesday unanimously approved the selection of Chandler Asset Management as its external investment portfolio manager,dumping Pacific Investment Management Company(Pimco),which had managed its investment transactions since 1995. In February,OCSD staff said it would be "prudent to re-evaluate the availability of these (investment)services in today's open market,from both a cost and a performance basis,"for the then $430 million portfolio.The investment portfolio has since grown to about $48o million. The decision to replace Pimco is yet another jolt to the bond giant as it struggles to retain clients following a year of turmoil at the top. The management changes began in January with the abrupt departure of economist Mohamed El- Erian,which prompted many institutional investors to step up their scrutiny of Pimco. Roiling markets,Bill Gross surprised markets in September by leaving the company he helped establish and build into a$2 trillion behemoth. Gross's departure prompted a series of investor exits that the OCSD has now joined. The California-based investment firm reported a 5 percent drop in assets under management for the third quarter. Since Gross's departure, Pimco has seen heavy outflows,with$23.5 billion leaving the Pimco Total Return Fund in September alone. (Reporting by Ankush Sharma in Bangalore) 1 Return to Mends Report November 2, 2014 OC Register Sewage spill closes channels in West Newport Bay BY SALVADOR HERNANDEZ I STAFF WRITER Published:Nov.2, 2014 Updated: 11:31 a.m. NEWPORT BEACH —The channels near Newport Boulevard and West Coast Highway were closed to swimming and diving due to a sewage spill in the area, health care officials said. The West Newport Bay waters affected by the closure were those between 33rd Street and 43rd Street, according to a statement released by the Orange County Health Care Agency. How the spill occurred was not immediately clear. Officials from the Health Care Agency were not immediately available. Newport Beach police officials said they were notified that work crews would be trying to fix a broken pipe near Newport Boulevard and Via Lida on Sunday, a short distance from the affected channels. It was unclear, however, if the two issues were related. The closure was to remain in effect until further notice. Contact the writer: 714-796-7949 or shernandez()ocregister.com 2 Return to Mende Report November 3, 2014 Daily Pilot DAiL,YJ' PIL0- T Sewage spill closes West Newport Bay channels until at least Wednesday November 3, 2014 4a5p.m. Channels near Newport Boulevard and West Coast Highway in Newport Beach were closed for swimming and diving until further notice as a result of a weekend sewage spill, county health officials said Monday. The Orange County Health Care Agency closed West Newport Bay waters between 33rd and 43rd streets Saturday night after a pressurized sewer line leaked waste, said Larry Honeybourne, assistant director of the agency's environmental health division. The leak, along with runoff from Friday night's rainfall, increased pollution levels past federal standards, Honeybourne said. The agency will continue to sample water quality until tests show two days of clean conditions. The earliest that the area could be reopened would be Wednesday afternoon, officials said. —Hannah Fry @HannahFryTCN 3 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos— The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) —A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Glossary of Terms and Abbreviations Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor becomes the DrT for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Glossary of Terms and Abbreviations Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.