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.