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HomeMy WebLinkAbout08-28-2013 Steering Committee Agenda Packet.pdf Wednesday, August 28, 2013 Orange County Sanitation District 5:30 P.M. Regular Meeting of the Administration Building Steering Committee Conference Rooms A R B 10844 Ellis Avenue Fountain Valley, CA 92708 r, (714) 593-7130 AGENDA 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 Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: 1. Approve Minutes of the July 24, 2013 Steering Committee Meeting. 2. Approve Amendment No. 1 to Professional Services Agreement with Townsend Public Affairs (Purchase Order No. 104836-OB) for State Legislative Services, to enhance legislative assistance for the period September 1, 2013 through August 31, 2014, for an additional contractual amount of$2,500 per month. ACTION ITEMS: 3. Direct General Manager and General Counsel to include approval authority up to $200,000 for standing Committees in the draft purchasing and contracting ordinance. 4. Establish a Legislative and Public Affairs Committee of the Board of Directors. INFORMATION ITEMS: 5. Legislative Update 08/28/13 Steering Committee Agenda Page 1 of 3 CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. (1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 2 (A)Santa Ana Watershed Project Authority v. Orange County Sanitation District, Contractual Arbitration, JAMS Reference No. 1210030062 (B)Kiewit Infrastructure West Co. v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2012-00544245 (2) CONFERENCE WITH LEGAL COUNSEL RE. ANTICPATED LITIGATION (Government Code Section 54956.9(d)(4)) Initiation of Litigation pursuant to 54956.9(d)(4); Number of Potential Cases: 2 (A) SAW PA Enforcement/Cost Recovery Action (B) Disclosure of Confidential Information (3) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: James D. Herberg, General Manager, Jeff Reed, Director of Human Resources, and James D. Ruth, Chief Negotiator Employee Organization: Supervisor Group and Professional Group Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. O8/28/13 Steering Committee Agenda Page 2 of 3 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Steering Committee meeting is scheduled for Wednesday, September 25, 2013, at 5:30 p.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 Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, 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. Made E.Ayala Clerk of the Board (714)593-7130 mavalaOZocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7110 iherbergaocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 m1nirelli0tomd.com Director of Engineering Nick Kanetis (714)593-7310 nkanetislolocsd.com Director of Facility Support Services Nick Arhontes (714)593-7210 narhontes(alomd.mm Director of Finance and Lorenzo Tyner (714)593-7550 ItynerGiloosd.com Administrative Services Director of Human Resources Jeff Read (714)593-7144 ireed(alocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 08/28/13 Steering Committee Agenda Page 3 of 3 Item No. 1 MINUTES STEERING COMMITTEE MEETING Orange County Sanitation District The Steering Committee meeting convened on Wednesday, July 24, 2013, at 5:30 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager Troy Edgar, Chair Bob Ghirelli, Assistant General John Anderson, Vice-Chair Manager Tom Beamish, Operations Committee Nick Arhontes, Director of Facilities Chair Support Services Brad Reese, Administration Committee Nick Kanetis, Director of Engineering Chair Jeff Reed, Director of Human John Nielsen Resources John Withers Ed Torres, Director of Operations & Maintenance COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance & Administrative Services None. Maria Ayala, Clerk of the Board Jennifer Cabral Jim Colston Dean Fisher Norbert Gaia Todd Haynes Rob Thompson OTHERS PRESENT: Jim Ferryman, Board Member Brad Hogin, General Counsel Heather Stratman, Townsend Public Affairs Drew Kolosky PUBLIC COMMENTS: None. Minutes of the Steering Committee July 24, 2013 Page 2 of 4 COMMITTEE CHAIR REPORT: Chair Edgar reported on today's "Cease the Grease' event in the City of Stanton. Chair Edgar also discussed the need to develop the District's legislative and public outreach programs. GENERAL MANAGER REPORT: General Manager, Jim Herberg, reported that he is working on preparing the General Manager's Work Plan; a final version will be forthcoming in the next few weeks. Mr. Herberg also announced the plan to hold two Board workshops that will focus on the new Strategic Plan. The Steering Committee agreed to move forward with the two meetings, scheduled to be held on September 11 and October 2, after the Administration and Operations Committee meetings. Lorenzo Tyner, Director of Finance and Administrative Services, briefly reported on "Low Flow Rate Alternative". Mr. Tyner provided information regarding end-user fees and how discounts would impact the District rates in the future. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the June 26, 2013 Steering Committee Meeting. 2. MOVED, SECONDED, AND DULY CARRIED: Approve the placement of a Memorial Plaque at Plant No. 2, Headworks "D" facilities, in recognition of Pamela Koester for her contributions to the Orange County Sanitation District. ACTION ITEMS: Mr. Herberg gave a brief overview of the nomination process for the Honor Walk Brick Recipients. Board Member, Jim Ferryman, spoke on behalf of Mr. Collins' nomination. 3. A. MOVED, SECONDED, AND DULY CARRIED: Steering Committee approved John Collins, past Board Member, as an Honor Walk Brick Recipient for the year 2013. B. MOVED, SECONDED, AND DULY CARRIED: Approve nominated retired employees, Ron Wade and Mohammed Babaielivari, as Honor Walk Brick Recipients for the year 2013. Minutes of the Steering Committee July 24, 2013 Page 3 of 4 The Steering Committee held discussion regarding Item 4. Mr. Herberg and Mr. Tyner addressed questions from the Committee and provided additional information. 4. Recommend to the Board of Directors to: A. Declare the Orange County Sanitation District's position on the changes to the Orange County Retirement System (OCERS) Unfunded Actuarial Accrued Liability (UAAL) Amortization Period; and B. Provide direction to the General Manager on measures to be taken in representing declared Board position. MOVED, SECONDED, AND DULY CARRIED: Steering Committee approved to recommend to the Board of Directors to declare that the Orange County Sanitation District opposes any changes at this time. Director Anderson abstained. INFORMATION ITEMS: 2. Legislative Update Heather Stratman, Senior Director for Townsend Public Affairs, provided a legislative update to the Committee. Ms. Stratman will be working with the General Manager and staff to on the District's legislative program. CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1), 54956.9(d)(2), 54956.9(d)(4), and 54956.9(e)(3). The Committee convened in closed session at 6:07 p.m. to discuss four items. Confidential Minutes of the closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENE IN REGULAR SESSION: The Committee reconvened in regular session at 6:28 p.m. Minutes of the Steering Committee July 24, 2013 Page 4 of 4 CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 6:28 p.m. Submitted by: Maria E. Ayala Clerk of the Board STEERING COMMITTEE Meeting Date To ad.of Dir. 08/28A3 -- AGENDA REPORT em Number Item Number 2 Orange County Sanitation District FROM: Nick Kanetis, Director of Engineering Originator: Jim Colston, Environmental Compliance Manager SUBJECT: STATE LEGISLATIVE ASSISTANCE GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 1 to Professional Services Agreement with Townsend Public Affairs (Purchase Order No. 104836-OB) for State Legislative Services, to enhance legislative assistance for the period September 1, 2013 through August 31, 2014, for an additional contractual amount of$2,500 per month. SUMMARY An amendment to the original Professional Services Agreement with Townsend Public Affairs (TPA) is being proposed in order to assist staff with ongoing legislative activities following the unplanned resignation of the prior Public Affairs Manager. This is a limited- term contract amendment that will be used as a stop-gap measure to provide staff with the necessary resources to manage the legislative program in the absence of this essential position. Planned activities for TPA include the following: (1) Establish the legislative outreach program for the Board of Directors including visits to Sacramento and with local legislators; (2) Provide monthly and additional, as needed, updates to the Steering Committee and members of the Board of Directors; and (3) Provide a detailed legislative matrix of bills of interest to the Orange County Sanitation District, including suggested bill positions, updated at least monthly. ADDITIONAL INFORMATION N/A PRIOR COMMITTEE/BOARD ACTIONS May 2013 —The Steering Committee approved a Professional Services Agreement with Townsend Public Affairs for State Legislative Services for the period of July 1, 2013 through June 30, 2014 at a monthly rate of $5,000 per month for an annual amount not to exceed amount of$60,000. Page 1 of 2 October 2007 — Approved five-year agreements with state and federal legislative advocates and approved four one-year renewals at the discretion of the Steering Committee. CEQA N/A BUDGETIDELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: . Amendment No. 1 to PSA, with Exhibit A-1 (4 pages) JC:jb:gc Page 2 of 2 Return to Mende Report AMENDMENT NO. 1 PROFESSIONAL SERVICES AGREEMENT State Legislative Services THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective August 28, 2013, between Orange County Sanitation District hereinafter referred to as "OCSD" with main offices located at 10844 Ellis Avenue, Fountain Valley, California 92708-7018 and Townsend Public Affairs with a principal business at 2699 White Road, Suite 251, Irvine, CA 92614 (hereinafter referred to as " Service Provider") collectively referred to as the "Parties". WHEREAS, OCSD and Service Provider executed, delivered and entered into the Agreement between OCSD and Service Provider, the effective date of which is July 1, 2013 ("the Agreement"); and WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be called Amendment No. 1 ("Amendment"); and WHEREAS, Service Provider submitted its proposal for the required modifications, dated August 19, 2013, (attached hereto and incorporated herein as"Exhibit A-1"); and WHEREAS, on August 28, 2013, the Board of Directors of OCSD, by minute order, authorized execution of this Amendment between OCSD and Service Provider; and WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated into the Agreement and become a part thereof from the beginning; and WHEREAS, the Parties desire that the Agreement as modified by this Amendment shall constitute the sole and entire Agreement among the Parties; NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein, the Parties agree to amend the Agreement as follows: 1. To name Ms. Heather Stratman to serve as the "Project Manager" and primary point of contact for OCSD to state legislators, legislative staff and legislative committees for POTW associations until the OCSD position is filled or the work is otherwise managed in-house. The time period for the Project Manager position is for a minimum of six (6) months, commencing September 1, 2013 and continuing through February 28, 2014, unless extended (on a month-to-month basis) by OCSD. The Project Manager position shall not extend beyond the Contract End Date of June 30, 2014; and 2. Service Provider shall, while the Project Manager position is in effect, provide a detailed legislative matrix, including recommended positions, updated at least monthly; and 3. Service Provider shall develop and, while the Project Manager position is in effect, maintain a Board outreach program including meetings in Sacramento and with local legislators in their local offices; and 4. To make the following clarifications: a. Service Provider will provide written monthly updates 2 weeks prior to Steering committee meetings, and b. Ms. Stratman will attend each Steering committee meeting, preside over the legislative-activities portion, provide oral updates, and make herself available to meet with the Board Chair, prior to each Steering committee/Board meeting to plan the legislative outreach program; and 5. To increase the monthly payment, by $2,500 to $7,500, while the Project Manager position is in effect, for a new Total Contract Amount Not to Exceed Eighty-two Thousand Five Hundred and 00/00 Dollars ($82,500)for the Contract Period. Amendment No.1 1 of 2 State Legislative Services Return to Mends Rom Except as expressly amended above, the Agreement will remain unchanged and in full force and effect. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment No.1 to be signed by the duly authorized representatives as of the day and year last signed below. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair Board of Directors Dated: By: Clerk of the Board Dated: By: Contracts/Purchasing Manager TOWNSEND PUBLIC AFFAIRS Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Amendment No.1 2 of 2 State Legislative Services Return to Aaentle Report T U W N S E N D Exhibit"A-1" PUB TPA MEMO To: Orange County Sanitation District Bob Ghirelli,Assistant General Manager From: Townsend Public Affairs, Inc. Date: July 17, 2013 Subject: Legislative Staffing Services This document is intended to serve as a supplemental proposal for Legislative Staffing services provided by Townsend Public Affairs, Inc ('TPA') for the Orange County Sanitation District ("OCSD"). TPA proposes to provide the Project Management support to OCSD, specific to the following activities: • Project Manager and primary point of contact for OCSD to state legislators, legislative staff and legislative committees for POTW associations until the OCSD position is filled or the work is otherwise managed in-house. • Proactive monitoring and analysis of new legislation to assist in assessing potential impacts on the OCSD and working directly with OCSD staff to develop a recommendation on an OCSD position • Preparation of reports, bill summaries, a regularly updated legislative matrix and other legislation-related communications to ensure the most current information is readily available for OCSD Steering Committee, Board, and Staff • Strategic consulting and advocacy regarding specific bills, amendments, parliamentary and administrative maneuvers to achieve OCSD goals • Assistance in preparation of testimony, correspondence and other formal OCSD communication regarding legislative and policy matters • Regular and active participation in the OCSD Steering Committee to provide timely analysis on issues of interest to OCSD Board and Staff • TPA has secured and worked legislation specific District legislation in the past and is prepared to assist with the process again should the need arise. This would include, but not necessarily be limited to: o Crafting of specific bill language and monitoring of Legislative Counsel process o Preparation of issue summaries and other communications o Extensive engagement with legislative leadership, relevant Committee leaders and other key legislators Federal Once•600 Pennsylvania SE•Suite 207-Washington,DC 20003•Phone(202)54&w96•Fax(202)546 555 State Capitol Mee"925 L Street-Suite 1404•Sacramento,CA 95814•Phone(916)447-0 86•Fax(916)4 0383 Northern California Office-300 Frank Ogawa Plan•Suite 204.Oakland,CA 94612•Phone(510)835-9050•Fax(510)835-9030 Southern California Office•2699 White Road-Suite 251•Imite,CA 92614•Phone(949)399-9050-Fax(949)476-8215 Return to Mende Report o Proactive engagement of the Governor's Administration, particularly in the Legislative and Resources units o In conjunction with OCSD staff and Directors, active outreach to wastewater industry and other concerned constituencies designed to promote purpose and benefits of legislation and mitigate potential opposition o Aggressive process management of the legislative process including timelines, support of the author(s) and any other tasks required to ensure progress of the bill Additional staffing support • While the Project Manager position is in effect, provide a detailed legislative matrix, including recommended positions, updated at least monthly • Duties and assignments delegated by the General Manager and/or his designated staff • Management and attendance for Sacramento advocacy trips, including maintaining a Board outreach program including meetings in Sacramento and with local legislators in their local offices • Onsite attendance for staff meetings or other needs deemed by the General Manager and/or his designated staff • Meetings and/or appropriate correspondence to OCSD Board Members regarding priority legislative issues and strategy engagement. Budget/Cost Proposal TPA proposes an additional monthly fee for services of $2500/month for a six-month period from September 1, 2013 through February 28, 2013. 0 Scope of Services I Orange County Sanitation District Page 2 STEERING COMMITTEE Meeting Dare To ad.of W. 08,28,13 -- AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: APPROVAL AUTHORITY FOR COMMITTEES GENERAL MANAGER'S RECOMMENDATION Direct General Manager and General Counsel to include approval authority up to $200,000 for committees in the draft purchasing and contracting ordinance. SUMMARY The District's current policies and procedures for the award of purchase orders and contracts, and the delegation of authority to implement these procedures, were established by Resolution No. OCSD 07-04 of the Board in 2007. General Counsel and Staff are drafting an ordinance for purchase orders and contracts, and associated policies and procedures. The draft ordinance will be presented to the Administration Committee in September 2013 for approval. Currently, the General Manager has authority to approve purchase orders and contracts up to $100,000. The standing committees have authority from $100,000 to $200,000. Purchases and contracts above $200,000 must be approved by the Board of Directors following action by a standing Committee. The current authority of committees to approve purchases between $100,000 and $200,000 has been used about 10 times per year over the past two years. The main advantages of this authority are: 1) Contracts can move forward 2-3 weeks faster because work can commence without waiting for Board approval; and 2) Board agendas are somewhat shorter. The main disadvantage is that the full Board does not get the opportunity to review and debate purchase orders and contracts less than $200,000. PRIOR COMMITTEE/BOARD ACTIONS December 2012 — Board adopted Resolution No. OCSD 12-17: Amending Section 4.09 Request for Procedure of Resolution No. OCSD 07-04 entitled "Establishing Policies and Procedures for the Award of Purchasing Orders and Contracts; Award of Public Works Project Contracts; Award of Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures were approved by the Board of Directors" Page 1 of 2 June 2007 — Board adopted Resolution No. 07-13: Establishing Policy for the Payment of Mandatory and Statutory Fees Greater than the Limits established in Resolution No. OCSD 07-04 and in future updates of the Delegation of Authority. February 2007 — Board adopted Resolution No. 07-04: Establishing Policies and Procedures for the Award of Purchasing Orders and Contracts; Award of Public Works Project Contracts; Award of Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures were approved by the Board of Directors. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachmentia) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 07-04 • Resolution No. OCSD 07-13 (Amending Resolution No. OCSD 07-04) • Resolution No. OCSD 12-17 (Amending Resolution No. OCSD 07-04) JDH/clr/kal Page 2 of 2 Return to Agenda Reporl AMENDED BY j� SANjr OCSD 12-17 & 4oJN /o OCSD 07-13 ¢ A 2 n o — q ti E EN�\P�@ RESOLUTION NO. OCSD 07-04 ESTABLISHING POLICIES AND PROCEDURES FOR: THE AWARD OF PURCHASE ORDERS AND CONTRACTS: PUBLIC WORKS PROJECT CONTRACTS: PROFESSIONAL SERVICES CONTRACTS: AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND PROCEDURES A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT (DISTRICT OR OCSD) ESTABLISHING POLICIES AND PROCEDURES FOR THE AWARD OF PURCHASE ORDERS AND CONTRACTS; AWARD OF PUBLIC WORKS PROJECT CONTRACTS; AWARD OF PROFESSIONAL SERVICES CONTRACTS; AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND PROCEDURES; AND REPEALING RESOLUTION NO. OCSD 06-28 TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS...................................................Page 1 Section 1,01: Findings: Declaration of Intent. ARTICLE It: TERMS AND DEFINITIONS..............................................Page 2 Section 2.01: Terms and Definitions ARTICLE III: DELEGATION OF AUTHORITY—GENERAL..................Page 5 Section 3.01: Purpose and Scope. Section 3.02: Authorizing General Manager to Establish Rules and Guidelines. Section 3.03: Procedure for Delegation of Authority ➢ Approval Levels a. Co-signatures b. Procedural Requirements c. Special Consideration for Extraordinary Projects I Events Section 3.04: Purchasing System Adoption Section 3.05: Purchasing Division Delegated Authority Section 3.06: Procurement Card Program Section 3.07: Requisitions Section 3.08: Cooperative Procurement Section 3.08: Purchases: Emergency Section 3.10: Purchases: Sole Sources; Standardized Prices, Specialized Services, and Sole Sources Section 3.11: Purchase Orders Section 3.12: Purchases: Encumbrances of Funds Section 3.13: Blanket Purchase Orders Section 3.14: Surplus Supplies, Materials, and Equipment. Section 3.15: Sale of Real Property. Section 3.16: Recordkeeping ARTICLE IV: OPERATIONAL SUPPLIES, MATERIALS. ....................Page 12 EQUIPMENT& SERVICES, INCLUDING PROFESSIONAL SERVICE CONSULTANTS (EXCLUDING PUBLIC WORKS CONTRACTS OR PROFESSIONAL DESIGN SERVICE AGREEMENTS) Section 4.01: Purpose and Scope. Section 4.02: Purchases: Bidding Requirements, Section 4.03: Bidding Procedure: Purchases Greater than $50,000. Section 4.04: Purchases between $50,000 and $100,000. Section 4.05: Bidding Procedure: Purchases Less Than $50.000. Return b Mende Report Section 4.06: Bidding Procedure: Purchases Less Than$5,000. Section 4.07: Inspection and Testing. Section 4.08: Purchases: Negotiated Contracts. Section 4.09: Request for Proposal Procedure. ARTICLE V: PROFESSIONAL DESIGN SERVICE AGREEMENTS...Page 18 Section 5.01: Purpose and Scope. Section 5.02: Retention of Professional Design Consultants. Section 5.03: Facilities Engineering Project: Annual Budget Approval. Section 5.04: Facilities Engineering Project: Selection of Consultants—Procedure. Section 5.05: Facilities Engineering Project:Approval of Plans and Specifications Section 5.06: Major Capital Project: Scope of Work a. Proposals—Notice Requesting b. Staff Screening Committee c. Proposal—Contents d. Review of Proposals by Staff Screening Committee e. Procurement&Negotiation of Agreement f. Continuation of Services g. Specialized Services In. Agreement for Services I. Conflict of Interest Section 5:07: Major Capital Project: Selection of Consultants— Procedure. Section 5.08: Major Capital Project: Engineer's Estimate; Approval of Plans and Specifications ARTICLE VI : PUBLIC WORKS CONSTRUCTION CONTRACTS........Page 26 Section 6.01: Purpose and Scope. a. Notice Inviting Bids b. Bidder's Security c. Bid Opening Procedure d. Rejection of Bids e. Tie Bids I. No Bids g. One Bid h. Emergencies i. Surety Bonds j. Cost Records Section 6.02: Public Works: Bidding Required. Section 6.03: Bidding Procedure: Public Works Construction Greater than$35,000. III ARTICLE VII: AWARD AUTHORIZATION............................................Page 29 Section 7.01 Agreements,Amendments & Change Orders: A. Agreements B. Amendments & Change Orders C. Change Orders to Existing Agreements Section 7.02 Facilities Engineering Projects: A. Task Orders B. Amendments Section 7.03 Public Works Projects: A. Close-Out Agreements B. Notice of Completion C. Time Extension to Construction Contract Agreement ARTICLE Vlll: TRAINING, MEETINGS, AND RELATED TRAVEL EXPENDITURES ...........................................................Page 35 Section 7.01: Purpose and Scope. Section 7.02: General. Section 7.03: Policies and Procedures. ARTICLE IX: MISCELLANEOUS.........................................................Page 36 Section 8.01: Noncompliance. Section 8.02: Severability. Section 8.03: Effective Date. Section 8.04: Repeal of Prior Resolution. iv Rehm to Aaerda Repon ARTICLE I RECITAL OF FINDINGS Section 1.01: Findings: Declaration of Intent. A. California Government Code Section 54202 requires that every local agency shall adopt policies and procedures, including bidding regulations governing purchases of supplies, services, materials and equipment,and that purchases of supplies, services, materials and equipment by the local agency shall be in accordance with said duly adopted policies. B. California Government Code Section 54204 requires that if the local agency is other than a city,county,or city and county, policies provided for in Section 54202 of said Code shall be adopted by means of a written rule or regulation, copies of which shall be available for public distribution. C. In order to establish efficient procedures for the purchase of supplies, services, materials,and equipment,and the letting of public works contracts at the best possible cost commensurate with quality and delivery needs, together with other relevant factors,to exercise positive financial control over purchases,and to clearly define authority for the purchasing function,and to establish bidding procedures,a purchasing system for OCSD beyond what is required by said Sections of the Government Code is desirable and in the best public interest D. An effective, comprehensive organization needs an administrative structure with support procedures that are logical, efficient,well documented,are understood by the organization's employees and members of the public, and that will enable timely and responsive administrative acquisition of supplies, services,materials, and equipment. The organization should also appropriately delegate authority to those persons and units having responsibility for these activities. E. The Board of Directors has determined that a delegation of authority structure provides for better training of employees which will result in improved efficiency and effectiveness of OCSD's operations. Road W OCSD Wl i of n ARTICLE II TERMS AND DEFINITIONS Section 2.01: Terms and Definitions. A. "Amendment or Change Order"shall mean written agreements entered into and between the Professional Service Provider or Contractor and OCSD, property executed, covering alterations, changes, additions, or deletions to the Contract which are necessary for the proper completion of the work. B. "Capital Facilities"shall mean those public works owned by OCSD that are currently in existence. C. "Capital Facilities Operational Projects"shall mean the routine, recurring, and usual work for the preservation or protection of any public works, as well as any minor repainting, landscape, maintenance, or work performed to keep, operate, and maintain OCSD's water, power and wastewater disposal systems. This work shall include modification or repair, or the replacement of parts, equipment, and facilities. D. "Capital Improvements"shall mean those public works that are to be newly-erected or constructed by OCSD in the future. E. "Change Order"shall mean written agreements entered into and between the Contractor and OCSD, for Public Works Contracts, property executed, covering alterations, changes, additions, or deletions to the Contract, which are necessary for the proper completion of the work. F. "Competitive Bidding"shall mean the process and procedure whereby OCSD, in accordance with California Public Contract Code Section 20783, prepares Plans and Specifications for the construction of public works; publishes a Notice Inviting Bids, and at a fixed time opens all bids received; and subsequently awards a Construction Contract to the lowest responsive and responsible bidder. G. "Design Agreement"shall mean a contract between OCSD and a Professional Design Consultant who is licensed, certified, or registered by the State of California to perform professional services. For OCSD purposes, these individuals shall be known as "Professional Design Consultants". H. "Facility Engineering Project"shall mean a miscellaneous capital improvement or facility modification, replacement, or repair project, related to plant safety, reliability and efficiency enhancements where professional consulting services are estimated to be in an amount not to exceed $100,000 (inclusive of amendments)for each project. I. "Force Account"shall mean work that is performed solely by OCSD employees which has a cost value, including labor, overhead, parts, and supplies, in an amount not to exceed $5,000 for each Project, except as allowed in Resolubon No.OOSD 07-04 2 or 37 Rehm to Agenda Reporl Subparagraphs(a)and (b)below. It does not mean work performed for OCSD by persons or an entity under contract to OCSD,even when said work may be ordered by OCSD as being outside or beyond the original contract scope of work. OCSD employees may perform work on contracts,without limitation on amount only,for one of the following reasons: (a)It is an emergency and performing the work with OCSD forces is more expedient;or, (b)The Board of Directors has rejected all bids and by a four-fifths vote declared that the work can be performed more economically by day labor. A written cost effectiveness analysis must be placed in the contract file. This force account provision shall not apply to sewerage maintenance or repair work. J. "Major Capital Projects"shall mean the construction, repair, modification, or rehabilitation of OCSD's Capital Facilities, including treatment plants, trunk sewers, pump stations, ocean ouffall,administrative and support facilities, and other facilities related to OCSD operations,where the cost of Professional Design and Consultant Services are estimated to be in an amount in excess of$100,000 for any project. These projects may require Selection Committee or Board approvals. K. "Professional Design Consultant"shall mean an individual or firm providing engineering, architectural, environmental, land surveying, construction management, and other similar services which are those professional services associated with development and design for construction,alteration,or repair of public works,as well as incidental services that members of these professions, and those in their employ, may logically or justifiably perform, including studies, investigations, surveys,evaluations, consultations, planning, inspections, shop drawing reviews, sample recommendations, cost estimates, inspections, preparation of operation and maintenance manuals,and other related services, all of which must be incidental to OCSD awarding a contract for the construction of public works. L. "Professional Design Service Agreement"shall mean a Contract between OCSD and a Professional Design Consultant to provide services to OCSD for professional engineering,architecture, environmental, land surveying, and similar services as a non-employee of OCSD. M. "Professional Service Consultant" shall mean an individual or firm (other than a"Professional Design Consultant"), providing professional services to OCSD,such as, but not limited to, accounting and financial services, information technology,general research,evaluation of systems design related to wastewater treatment systems, legislative evaluation and advocacy, human resources consultation and advocacy,and miscellaneous scientific research and consultation. N. "Professional Service Consultant Agreement"shall mean a contract between OCSD and a Professional Consultant to provide services to OCSD as a non-employee of the District. Readulim M.005007-04 3001 O. `Public Works"shall mean all buildings,structures,facilities, improvements, or works that are owned or operated by OCSD for the benefit of the public and which were or are being constructed, altered, demolished, or repaired under contract and paid for, in whole or in part, out of public funds. P. "Public Works Contract"shall mean an Agreement between OCSD and another party for the erection, construction, alteration, repair, or improvement of any public works of any kind. Public Works projects estimated more than $35,000 must adhere to the provisions of the California Public Contract Code. Q. "Standing Committees" shall mean the Steering Committee, Operations Committee (Engineering, Operations& Maintenance and Technical Services), and Administration Committee (Finance, Human Resources and Information Technology). . R. "Task Orders" shall mean miscellaneous technical support authorized under a current contract. The specific task must have a defined budget and be completed within the total budget of the existing prime contract. Resolution No.OOSD 07-04 4 of 37 Rehm to Agenda Repod ARTICLE III DELEGATION OF AUTHORITY - GENERAL Section 3.07: Purpose and Scope. In an effort to remove barriers that prevent OCSD employees from performing their jobs at the highest level of efficiency,a delegation of authority structure will appropriately provide staff with information on its increased responsibility and ownership, hence, it will contribute to the Improved efficiency and effectiveness of OCSD. Section 3.02: Authorizing General Manager to Establish Rules and Guidelines. The levels of authorization to award purchase orders and contracts to acquire services, including professional services, supplies, materials,and public works project contracts, are as more particularly specified in Article VII herein. The General Manager of OCSD is hereby authorized to establish rules and guidelines to implement Board policies and to delegate to Staff,signature authority to initiate the procurement process, as specified in Articles IV through VII herein. Section 3.03: A. Procedure for Delegation of Authorltv. These procedures establish the framework and boundaries within which a delegate can operate, and also provide Management with a mechanism to evaluate implementation and hold the delegate accountable for his/her actions. Upon delegation of authority by the General Manager, each Department shall be authorized to further delegate to respective employees within the Department. The delegation shall be effective upon the Department Head setting forth, in writing,the name of the delegated employee, the job position, and specific level of delegated authority as Staff Level A, B,or C, respectively(as set forth in Section 7.01 A below),and filing it with the Contracts/Purchasing Manager. The General Manager shall establish further procedures to implement delegated authority Into the organization. To commence the procurement process for acquisition of operational supplies, services, materials, and equipment, public works contracts governed by state law and professional and design service agreements, signature authority is hereby established asset forth in Section 7.01A below. The functional authority level listed describes the highest level of signature approval needed. Intermediate management approval between the initiator/requestor and listed approval level must also be obtained. The General Manager may delegate authority for all purposes under this Resolution to a Department Head to act in the General Manager's absence. Reeownon no.Oeso 07A1 5 of 37 B. Co-Sianatures. In addition to the signature of the Delegated Authority: 1. To ensure that all policies and procedures governing purchase orders and contracts are followed, all contracts and purchase orders will be signed by the Contracts/ Purchasing Manager, or his designee upon approval of the delegated authority specified in Section 7.01 A. 2. All purchases for computer hardware, software, copiers, faxes, and communication equipment will be pre-approved by the Information Technology Director, or his designee. C. Procedural Requirements. All policies and procedures adopted by the Board of Directors or promulgated by the General Manager governing the procurement of supplies, materials, equipment or services, will apply, and shall be complied with. Budgeted funds must be available prior to the acquisition of goads or services. Upon the Identification of goods or services needed that are not originally budgeted, either a budget transfer request form must be completed demonstrating that adequate funds are available to cover the acquisition, or the Board of Directors must authorize a budget amendment, at which time, the item being acquired would fall into the budgeted category. D. Special Consideration for Extraordinary Protects/ Events. The Board of Directors, at its discretion, may temporarily increase the General Manager's purchasing approval and amendment/change order authority due to circumstances it finds critical to the operation. In addition, the Board may also allow the replenishment of the General Manager's amendment/change order authority, once exhausted, back to its original level, if necessary. Section 3.04: Purchasina System Adoption. The procedures and authority set forth in this Resolution are intended to operate in concert with and supplemental to the delegation of authority granted by the governing Board of Directors in the adoption of this Resolution. Full compliance with the provisions of all Articles in this Resolution is required. Section 3.05: Purchasina Division Delegated Authority. There is hereby vested in the Purchasing Division (hereinafter referred to as "Purchasing"), under the general supervision and direction of the Director of Finance, the authority for the purchase of supplies, services, materials, and equipment; letting of public works contracts; and the establishment of rules, procedures, and administrative policies relative thereto. The Director of Finance may delegate or assign any or all of the following duties to the Contracts/ Purchasing Manager: A. To purchase or contract for supplies, services, materials, and equipment required by any Department or Division, in accordance with purchasing procedures prescribed by this Resolution; such administrative regulations as Purchasing RewluW No.OCSD 07-06 6 of 37 Rehm to Aowda Repoh shall adopt for the internal management and operation of Purchasing; and such other rules and regulations as shall be adopted by the Board of Directors. B. To negotiate and recommend execution of contracts for the purchase of supplies, services, materials,and equipment;for construction of public works projects; and for the disposition of surplus property and by-products of the sewage treatment process. C. To submit to General Counsel for review or approval, as necessary, contracts, purchase orders, and other related documents. The Clerk of the Board shall be the designated Custodian of all original executed copies of contracts, purchase orders,and other related documents which are approved by the Board of Directors. The Purchasing Department shall be the designated Custodian of all other executed contracts. D. To discourage uniform bidding and endeavor to obtain as full and open competition as possible on all purchases and sales. E. To prepare rules, regulations, procedures, and administrative policies,and revisions thereto,governing the purchase of supplies, services, materials, and equipment;for the letting of public works construction contracts in accordance with the provisions of state law;and disposition of surplus property and by-products of the sewage treatment process. F. To prepare rules, regulations, procedures, and administrative policies, and revisions thereto,governing the warehousing of inventories. G. To keep informed of current developments in the field of purchasing,including but not limited to prices, market conditions,and new products. H. To prescribe and maintain such forms as are reasonably necessary for the implementation of this Resolution and other rules and regulations of OCSD. I. To review and recommend specifications to establish minimum standards for all purchases. J. To supervise the inspection of all supplies, services, materials, and equipment purchases to insure conformance with specifications. K. To provide for the transfer of surplus or unused supplies and equipment between Departments, as needed. L. To have custodianship and control of all inventories and surplus property. M. To maintain a bidders' list, vendors'catalog file, and records needed for the efficient operation of the Purchasing Division. N. To review,approve, and maintain active insurance documents for all OCSD procurements. Re udon No.OCSD 07-0 7037 O. To revise all records to reflect the sale, transfer, or reorganization of a supplier's business, or a change in the supplier's name for doing business, so long as all other terms and conditions of the original agreement remain the same. In such event of an assignment of the purchase order or contract by the supplier, OCSD shall not be bound until it has given its consent in writing, which consent shall not be unreasonably withheld. An amendment to the original agreement shall be prepared authorizing and consenting to the assignment and shall be executed by the General Manager, or his designee on OCSD's behalf. P. To undertake such other and future duties as, in the Director of Finance's discretion, are incidental and necessary to the conduct of the Division. Q. To advertise for construction bids, set a bid date, and receive all bids. Section 3.06. Procurement Card Program. OCSD has established a Procurement Card ("Procard") Program allowing specifically authorized employees to purchase goods and services with a total dollar value less than $1,000, thereby eliminating the purchase requisition, purchase order, invoice, and check requirements for these purchases. Approval for use of a Procard must first be obtained from OCSD's Procard Administrator, with the concurrence of the Contracts/Purchasing Manager and appropriate Department Head. All employees authorized by the Finance Department to use a Procurement Card shall do so only in accordance with OCSD's Procurement Card Policies and Procedures. Section 3.07: Requisitions. All OCSD employees who need or require supplies, services, materials, or equipment to carry out the defined duties of their positions, shall submit requisitions, in advance, for purchases or warehouse requisitions to Purchasing, in accordance with the adopted rules, regulations, procedures, and policies of the Purchasing Division. Usage of OCSD's procurement cards shall be exempt from this requirement. Section 3.08: Cooperative Procurement. A. OCSD, through Purchasing, may participate in or sponsor, conduct, and/or administer a Cooperative Procurement Agreement for the acquisition of procured items or services with any other public agency purchasing unit, or public agency alliance, in accordance with an agreement between OCSD and the other public agency. B. OCSD, through Purchasing, may sell to, acquire from, or use any property(other than real property) belonging to another public agency, including the cooperative use of supplies or services. C. Purchasing may, at its discretion, procure from the County of Orange Cooperative Purchasing Program, the State of California Multiple Award Schedules Program and the Department of General Services Program, the California Association of Public Purchasing Officers Program, the Western States Contracting Resolution No.OCSD 07-04 8 of 37 Return to Mende Report Alliance,the County of Los Angeles'Cooperative or Piggyback Programs, and U.S. Communities Alliance,without obtaining bids and following procedures set forth below, if the Contracts/Purchasing Manager determines that goods or services procured through said Programs are cost-favorable to OCSD. Section 3.09: Purchases: Emergencv. Whenever an emergency arises which is, or may be,a threat to the continued required operations of the wastewater treatment plants and facilities owned by OCSD, or when purchases are immediately necessary for the preservation of life or property,or to avoid a threat to the public health or safety,the Division may purchase supplies, services, materials, or equipment required for immediate use, in an amount greater than One Hundred Thousand($100,000) Dollars without observing the procedures set forth in this Resolution. The General Manager or his designee, shall advise the OCSD Chair and/or Vice Chair,as appropriate, of the action taken, and such action shall be ratified by the Board of Directors at its next regular meeting. Section 3.10: Purchases: Standardized Prices,Soecialized Services. and Sole Sources. A. The Purchasing Division may make purchases of supplies, materials, equipment or services without observing the bidding and Board approval procedures of Section 4.13 below when: 1. Items to be purchased have a demonstrated uniformity in price; or 2. An emergency arises which is,or may cause,a threat to the continued required operations of Reclamation Plant 1 or Treatment Plant 2; or 3. Purchases are immediately necessary for the preservation of life or property,or to avoid a threat to the public health or safety; or 4. The Provider of goods or services is determined to be uniquely qualified to provide specialized goods or perform specialized services. 5. It is determined that there is a sole source Provider that has goods and services available immediately that might not otherwise be available at such time purchasing procedures could be completed, and Staff determines such items are critical to OCSD's operations; a. For sole sources greater than$100,000, the General Manager, or his designee, shall advise the OCSD Chair and/or Vice Chair, as appropriate, of the action to be taken, and such action shall be rated by the Board of Directors at its next regular meeting. b. Sole sources between$50,000 and $100,000 shall be approved by the General Manager and reported to the Board of Directors quarterly. Resolution No.OCSD 07-04 9 or 37 c. All sole sources shall require pre-approval from the requesting Department Head, the Contracts/Purchasing Manager and the Director of Finance. Section 3.11: Purchase Orders. Purchases of all supplies, services, materials, or equipment shall be made by purchase order through use of a requisition, and may also require a formal written contract when determined necessary or appropriate by the Contracts/ Purchasing Manager. To ensure that all policies and procedures governing purchase orders and contracts are followed, all contracts or purchase orders will be executed by the Contracts / Purchasing Manager, or as delegated by the Contracts/ Purchasing Manager. Employees requisitioning supplies and equipment shall be responsible that requisitions are in conformity with the spirit and intent of this Resolution and that no purchase has been broken into smaller units to evade any requirement of this Resolution. In accordance with OCSD's Records Retention Policy, Purchasing shall retain in its files one (1)copy of all purchase orders issued during the two (2)years preceding, on which copy of the purchase order there shall be a list of bidders and prices bid for the materials or equipment purchased, or if no bids or quotations were taken or received, a full statement as to the reason therefor. Section 3.12: Purchases: Encumbrances of Funds. Except in cases of emergency, no purchase order shall be Issued for any supplies, services, materials, or equipment, unless there exists a sufficient budget item against which said purchase is to be charged, and which is not pledged towards any other specific purchase. Section 3.13: Blanket Purchase Orders. The Purchasing Division may issue annual blanket purchase orders for recurring purchases of miscellaneous supplies that: A. Are not carried in stock in OCSD's warehouse because of economic considerations; B. Are stock items that have been designated as appropriate sole source acquisitions; C. Have been competitively bid because Purchasing determines it is in the best interests of OCSD to issue a blanket order for inventory items; or D. Are for miscellaneous supplies, services, materials and equipment where such purchase may be procured from a single vendor during the budget year, without observing the procedures prescribed in Section 4.03 below when, in the Purchasing Division's discretion, it is determined that such blanket purchase orders are at a cost favorable to OCSD and will result in a more efficient procurement of such items. Blanket purchase orders shall be in conformity with the spirit and intent of this Resolution. The Purchasing Division shall, at the beginning of each budget year, file a Resolutb No.OCSD 07-03 10 o137 Retum to Agenda RepoN list of such purchase orders and the estimated annual amount with the Director of Finance. Section 3.14: Surplus Supplies. Materials, and EouipmeM. All Departments and/or Divisions shall submit to Purchasing,at such times and in such form as Purchasing shall prescribe, reports showing all supplies, materials, and/ or equipment which are no longer used or which have become obsolete or wom out. Purchasing shall have the authority, as deemed appropriate by the Contracts/ Purchasing Manager,to sell, exchange for, or trade in on new supplies, materials, and equipment, or dispose, as deemed appropriate,of all supplies, materials,and equipment which cannot be used by any other Department or Division, or which have become unsuitable for OCSD use. Section 3.15: Sale of Real Prooerty. No negotiations concerning the sale of real property of OCSD may be made without prior review from the Contracts/Purchasing Manager and the General Counsel. No real property of OCSD may be sold without prior approval of the Board of Directors Section 3.16: Recordkeepina. A record of all sales of surplus property and by-products shall also be maintained by Purchasing upon or in which is maintained,the record of the bids received for the property or by-products sold, or if bids were not taken or received, a full explanation thereof. Such records shall be maintained in accordance with OCSD's records retention schedule. Resolution t .00SD 07-0 11 of 3] ARTICLE IV OPERATIONAL SUPPLIES, MATERIALS, EQUIPMENT & SERVICES, INCLUDING PROFESSIONAL SERVICE CONSULTANTS (EXCLUDING PUBLIC WORKS CONTRACTS OR PROFESSIONAL DESIGN SERVICE AGREEMENTS) Section 4.01: Purpose and Scope. In order to establish efficient procedures for the purchase of supplies, materials, equipment and services, including Professional Service Consultants, at the best possible cost, commensurate with quality and delivery needs and other relevant factors; to exercise positive financial control over purchases; to clearly define authority for the purchasing function; and to establish bidding procedures pursuant to Section 54202 of the Government Code of the State of California, a purchasing system is deemed necessary. This Article does not apply to Professional Design Service Agreements and Public Works Contracts, which are defined and governed by Articles V and VI below. Section 4.02: Purchases: Bidding Requirements. Except as hereinafter provided, purchasing of supplies, materials, equipment or services, including Professional Service Consultants, shall be by bid procedures as set forth in this Article IV, when the purchase is estimated to have a value greater than Five Thousand ($5,000) Dollars; the supplies or services may be obtained from more than one vendor; are not standardized as to price; and no emergency exists. Section 4.03: Bidding Procedure: Purchases Greater Than $50.000. A. Award to Lowest Bidder. Except as otherwise provided in this Article IV, purchases of supplies, materials, equipment or services, including Professional Service Consultants, of an estimated value greater than $50,000 shall be by written contract or purchase order with the lowest responsive and responsible bidder (unless a Request for Proposal solicitation instrument is utilized), pursuant to the procedures prescribed herein. B. Award Approval. Purchases of supplies, materials, equipment or services, including Professional Service Consultants, that are identified and have appropriate not to exceed contractual pre-approvals, as outlined in each Fiscal Year's annual budget, to Include capital equipment, shall be bid and awarded directly by the Contracts/Purchasing Manager, or as delegated by the Contracts / Purchasing Manager in accordance with the procedures in this Section 4.03. Supplies, materials, equipment or services, including Professional Service Consultants, not budgeted, or which exceed the Board or pre-approved amount, or subsequent increases to the contract above the original amount identified and approved in the budget year the contract was awarded (both pre-approved or Board approved), or Resolution No.OCSD 07.04 12 of 37 Return to Mends Rem which affect policy recommendations or ratifications, or are sole source contracts exceeding$100,000, and all applicable public works contracts, shall require Board of Directors'approval prior to issuance or award of a purchase order or contract, except as provided in Section 7.01(B). C. Notice Inviting Bids. A Notice Inviting Bids shall be published and include a general description of the articles or services to be purchased or sold, shall state where bid forms and specifications may be secured, and the time and place for opening bids. 1. Published Notice. The Notice Inviting Bids shall set a dale for the opening of bids. The publication or posting of the Notice shall be at least ten (10)days before the date of opening the bids. Notice may be published in a newspaper of general circulation, printed and published within OCSD's jurisdiction; or by electronic bulletin board procedures designed to reach the industry or market of supply; or through OCSD's Internet Web Site. 2. Bidder's List. Purchasing may also solicit sealed bids, or receive bids electronically,from all qualified, responsible prospective suppliers whose names are on the Bidders List maintained by OCSD,or who have requested their names to be added thereto. 3. Bulletin Boards. Purchasing may also advertise pending purchases or sales by a notice posted on a public bulletin board in the Purchasing Division Office, and by electronic bulletin board, as deemed appropriate by the Contract's Purchasing Manager. D. Bidder's Security. When deemed necessary by Purchasing, a bidder's security may be prescribed in the contract specifications or in the Notice Inviting Bids. Purchasing, or those assigned by Purchasing, shall maintain said bidders security. Bidders shall be entitled to the return of a bid security upon the full execution of an awarded contract or Issuance of a purchase order by the successful bidder. A successful bidder shall forfeit its bid sewrity upon refusal or failure to execute the contract within the prescribed time after the Notice of Award of Contract has been delivered to the bidder, unless OCSD is responsible for a delay in the prescribed time. The Contracts/Purchasing Manager may, on refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive, responsible bidder. If the Contracts/Purchasing Manager awards the contract to the next lowest bidder, an amount of the lowest bidder's security equal to the difference between the low bid and the awarded bid shall be forfeited to OCSD, and the surplus, if any, shall be returned to the lowest bidder. E. Bid Opening Procedure. Sealed or electronically received bids shall be submitted to the Contracts/Purchasing Manager and/or Secretary of the Board of Directors, and shall be identified as a bid on the envelope or the electronic bulletin board. Bids shall be opened in pubic by the Contracts/Purchasing Manager,or his designated representative, at the time and place stated in the public notices. A tabulation of all bids received shall be available for public Inspection during regular business hours for a period of not less than thirty(30)calendar days after the bid opening. In cases wherein the Request for Proposal ('RFP") instrument is utilized, all ResoWboo No.OCSD 07-04 13 of 37 RFP's will be opened, and only the name of the Proposer shall be read aloud at the time and place set forth therein. F. Refection of Bids. At his discretion, the Contracts/ Purchasing Manager may reject any and all bids presented and re-advertise for bids. If all bids are rejected, the Contracts/Purchasing Manager may declare that the materials or supplies may be acquired at a lower cost by negotiation in the open market and authorize the purchase in that manner. G. Tie Bids. If two or more bids received are for the same total amount or unit price (with quality and service being equal), and if the public interest will not be best served by a delay of re-advertising for bids, the Board of Directors or Contracts/Purchasing Manager may accept the one it chooses or accept the lowest bid made by negotiation with the tie bidders at the time of the award. H. Performance Bonds. Purchasing shall have the authority to require a Faithful Performance Bond, a Labor and Materials Bond, and/or a Warranty Bond, before entering into a contract in an amount as it shall find reasonably necessary to protect the best interests of OCSD. If the Purchasing Division requires any of these Bonds, the form and amount of the Bond shall be described in the Notice Inviting Bids and in the Contract Specifications. Section 4.04: Purchases between $50,000 and$100,000. Purchasing may award a contract to purchase supplies, materials, equipment or services, including Professional Service Consultants, in an amount greater than $50,000 and less than $100,000, without obtaining bids and following the procedures all as more particularly set forth in Section 4.03 above when the Contracts/ Purchasing Manager determines that: A. By purchasing immediately, it can avoid an imminent price increase or realize a substantial price discount that is available on a short-term basis only; or B. It can obtain supplies, materials, equipment or services, including Professional Service Consultants, immediately that might not otherwise be available at such time as purchasing procedures could be completed; or C. Said contract for supplies, materials, equipment or services, including Professional Service Consultants, includes Board of Directors' approval for multiple one (1)year renewal periods at the Districts option. All such contracts shall not exceed the prescribed limit of renewal periods as defined by the Board of Directors and shall require the Contracts/Purchasing Manager's approval; or D. The supplies, materials, equipment or services, including Professional Service Consultants, are only available from a sole source; or E. Whenever an emergency arises which is, or may cause, a threat to the continued required operations of Reclamation Plant 1 or Treatment Plant 2, or when purchases are immediately necessary for the preservation of life or property, or to avoid a threat to the public health or safety. ResolWon No,OCSD 07-04 14 of 37 Return b Aoenda Rem Section 4.05: Bidding Procedure: Purchases Less Than $50,000. Purchases of supplies,materials, equipment or services, including Professional Service Consultants,of an estimated value in the amount of$50,000 or less on which bidding is not required by state law, may be made by Purchasing in the open market without observing the same procedures as prescribed by Section 4.03 above. The procedures to be used for these purchases are as follows: A. Minimum Number of Bids. Open market purchase shall, whenever possible, be based on at least three (3)bids and shall be awarded to the lowest responsive and responsible bidder, and shall be by written contract or purchase order. B. Solicitation of Bids. Bids shall be solicited by written requests to prospective vendors or purchasers and/or by telephone,facsimile transmission, electronic bulletin board,and/or by public notice posted on a public bulletin board in the Purchasing Division Offices. C. Receipt of Bids. Bids shall be submitted to Purchasing,which shall keep a public record of all open market orders and bids in accordance with OCSD's records retention schedule. D. Exceptions. Purchasing may purchase supplies,materials, equipment or services, including Professional Service Consultants,without observing the procedures prescribed in Subparagraphs A, B,and C above, if supplies, materials, equipment or services, including Professional Consultant Services are only available from a sole source. All such purchases shall be approved by the Director of Finance, the requesting Department Head, and the Contracts/Purchasing Manager. Section 4.06: Bidding Procedure: Purchases Less Than $5,000. Purchasing may purchase supplies, materials, equipment or services, including Professional Service Consultants of a value in the amount of$5,000 or less per purchase order,without observing the procedures prescribed in Section 4.05 when, in the Contracts/Purchasing Manager's discretion, it is determined that observing such procedures would not result in a lower overall cost to OCSD. Record of such decision shall be fully stated in the purchase order file as to the reason therefor. Section 4.07: Inspection and Testing. The supplies, materials,equipment or services delivered, including performance or deliverables resulting from a Professional Service Contract, shall be inspected to determine their conformance with the specifications set forth in the purchase order or contract. Purchasing shall have the authority to request professional services,or to require chemical and physical tests of samples submitted with bids and samples of deliveries which are necessary to determine their quality and conformance with specifications. Resdubm No.OCSD 07-04 15037 Section 4.08: Purchases: Neaotiated Contracts. Notwithstanding other provisions of this Resolution, the Board of Directors may, when It appears in the best interests of OCSD, authorize the Staff to negotiate and award a contract for the purchase of supplies, materials, equipment or services, including Professional Service Consultants, without observing the procedures prescribed In Sections 4.03,4.04 and 4.05 above. A. When such authorization has been granted for the purchase of supplies, materials, equipment or services, including Professional Service Consultants, of an estimated value in the amount of$100,000 or greater, the Staff shall obtain the concurrence of OCSD Chair and/or Vice Chair, as appropriate, prior to awarding such purchase. B. Whenever any contract for supplies, materials, equipment or services, including Professional Service Consultants, has been entered into between OCSD and a person or entity, and Purchasing determines that it is in the best interest of OCSD to continue said contract with such person or entity, Purchasing may, in its discretion, negotiate an extension of such contract without observing the bidding procedures prescribed in Sections 4.03 and 4.05 above; provided, the original contract contains provisions for subsequent extension periods; has been approved and awarded by the Board of Directors; and /or has prior contractual pre-approval, as provided in Section 4.03. Section 4.09: Reauest for Proposal Procedure. As deemed appropriate by the Contracts/ Purchasing Manager, a Request for Proposal ("RFP") solicitation process may be employed in lieu of the competitive bidding process. The RFP process maybe used for goods or services that prove difficult to quantify or describe. Therefore, Proposers are offered the opportunity to offer solutions. Award shall be based upon criteria which provide the"best value" received by OCSD, which is not solely determined by price. A. All Purchases—All Levels. Except as otherwise stated below, the RFP process shall follow bidding thresholds and procedures as outlined in Sections 4.03 and 4.05 above. B. Purchasing shall solely prescribe the Request for Proposal (RFP) procedure and award criteria. OCSD's RFP procedure shall be on file and available with the Contracts/Purchasing Manager or designee. C. The Contract/Purchasing Manager shall solely prescribe and approve all RFP Evaluations team members. D. In order to avoid actual or perceived conflicts of interest, members of the Board of Directors are prohibited from participating in the RFP Evaluation process, except in those instances where the potential provider shall directly serve and report to the Board or Its respective Committee(s)or when approved to do so by the Board Chair. Resolution No.OCSO 07-04 16 of 37 Return to Aawda RepoN E. OCSD maintains a Conflict of Interest Code pursuant to California Government Code Sections 87100 at seq.,which govems the activities and performance of duties of its Directors,officers,employees,or agents in the conduct of project work for OCSD. F. No Director, officer, employee,or agent of a Professional Service Consultant under contract with OCSD, shall solicit or accept rebates,kickbacks,favors, or other unlawful consideration from any individual or firm on behalf of any firm that may be potentially selected as a qualified firm to provide professional consulting services to OCSD. Acceptance of food and refreshments of a nominal value on infrequent occasions, and acceptance of gratuities or gifts shall not be deemed a violation of this provision, provided that if said items exceed$340,or the amount as fixed by California Government Code Section 89503, or Califomia Code of Regulations Title 2, Section 18940.1,in a calendar year,the Director,officer,employee, or agent may be disqualified from participating in the decision pursuant to Article III of OCSD's Conflict of Interest Code; and provided,further,that any Director, officer,employee,or agent,as a designated employee under OCSD's Conflict of Interest Code, shall report any amount of gifts on his/her annual Statement of Economic Interests, as required by said Code. G. Any firm seeking selection under these procedures that violates OCSD's Conflict of Interest Code shall be automatically disqualified- H. Any firm solicited to violate the Code must report said solicitation to the Board of Directors,or it will be automatically disqualified. Read~W.OCSD W7 17 of 37 ARTICLE V PROFESSIONAL DESIGN SERVICE AGREEMENTS Section 5.01: Purpose and Scope. OCSD, in the interest of uniformity, fairness, and cost effectiveness desires to establish policies and procedures for the selection and procurement of professional engineering, architectural, environmental, land surveying, and construction management services. Section 5.02: Retention of Professional Deslan Consultants. This Resolution establishes a procedure to be followed in the selection and retention of Professional Design Consultants in the areas of engineering, architecture, environmental, land surveying, and construction management services. Professional Design Consultants are those individuals or firms providing engineering, architectural, environmental, or land surveying services which are those professional services associated with research, development, design and construction, alteration, or repair of real property, as well as incidental services that members of these professions and those in their employ may logically or justifiably perform, Including studies, investigations, surveys, evaluations, consultations, planning, programming, conceptual designs, plans and specifications, cost estimates, inspections, shop drawing reviews, sample recommendations, preparation of operation and maintenance manuals, and other related services, all of which must be incidental to OCSD awarding a contract for Construction or Public Works. Services for product testing are excluded. It is recognized that no two individuals or firms have equal skills, training,or experience, and that the qualities of such firms vary. Accordingly, Professional Design Consultants shall be selected based upon OCSD's discretion and opinion as to which particular Consultant is best qualified to perform the work (hereinafter referred to as the "project") in question. For purposes of this Resolution, "firm" shall mean any individual, firm, partnership, corporation, association, or other legal entity permitted by law to practice the profession of architecture, engineering, environmental services, land surveying, or construction project management. Evaluation and selection of a consultant firm will include, but not be limited to, the following: A. The firm shall be of high ethical and professional standing, Its members being of good moral character, and it shall be prepared to submit references from persons of known repute. B. The principal and other responsible members of the firm must be registered in the State of California, as required by law. Resolution No.OCSD 07.04 18 of 37 Rehm to Agenda Reporl C. A principal member of the finn's staff must have the minimum appropriate experience in responsible charge of work of the type involved in the project. The appropriate experience required will solely be determined by OCSD staff. D. At least two(2)additional members of the firm's staff must have appropriate experience in responsible charge in the field or fields required by the project. The appropriate experience required will solely be determined by OCSD staff. E. The firm shall be capable of performing the work within the prescribed time limitations considering the current and planned workloads of the firth. F. If all other factors are equal, preference shall be given to a locally based firth when more than one fine is being considered. G. If the project is funded,either in whole or in part, by state or federal funds that require, as a condition of establishing or maintaining eligibility for state or federal funds, that firms working on the project maintain an affirmative action employment program,then the firm selected for the project must certify to having such a program. OCSD also recognizes that the scope of services and the qualifications of consultants can differ significantly between major capital facilities projects and facilities engineering projects. The criteria set forth in Paragraphs C and D above may be waived by OCSD for Facilities Engineering Projects. The procedures set forth in this Resolution shall govern the retention of Professional Design Consultants. Section 5.03: Facilities Engineering Project: Annual Budget Approval. Upon approval by the Board of Directors of an annual budget, OCSD's Director of Engineering or OCSD's Contracts/Purchasing Manager, or their designees, shall be authorized to solicit contract proposals from professional engineering, architectural, environmental, land surveying, and construction management firms to perform the required services for the approved Facilities Engineering Projects, as defined and prescribed herein. Section 5.04: Facilities Engineering Protect: Selection of Consultants—Procedure. A. OCSD's Staff shall compile a master pre-approved list of not less than 5, nor more than 10 firms having the required expertise to perform the required professional service for a Facilities Engineering Project. The master list of firms will be selected based upon a solicitation, review of qualifications,and Board approval of the agreements including up to two annual optional renewals. Upon selection and approval, the Professional Design Consultant shall execute the District's Professional Design Service Agreement. The original term of the agreement shall be for one (1)year. Thereafter,the Director of Engineering(DOE)shall be authorized to recommend to the General Manager, an extension of the qualified Professional Design Service Agreement for up to two(2)additional one (1)year renewal periods, for a total of three(3)years, Resoludm No.OCSD 07-0 19 o13r with each of the Parties designated on the approved master list. The Professional Design Service Agreement for each Party on the master list shall be forwarded to the Purchasing Office. The Engineering Department Staff shall prepare the appropriate requisition documentation to insure future payment to the consultant. B. As a need for an individual specific Facilities Engineering Project arises, OCSD will implement the Agreement by issuing a Task Order identifying the specific project by name and number, and include the approved scope of work required of the consultant for the project. There is a maximum annual fiscal year contract limitation of$200,000 for each Professional Design Service Agreement under the provisions of this Section 5.05. C. The DOE shall first obtain at least two(2) price proposals from consultants before the Task Order is awarded to a consultant. This requirement may be waived at the discretion of the DOE,where a determination is made that the subject work is unique such that only one (1) consultant is available to perform the work, or where significant time constraints or emergency conditions dictate that one (1) consultant be solicited for a price proposal. The DOE, or his designee, shall review the proposals specifically addressing cost and ability to meet OCSO schedule requirements. Based on the evaluations, the DOE is authorized to award the original Task Order. D. Once the Professional Design Consultant is selected for the award of a Facilities Engineering Project and the Task Order is executed by OCSD, the DOE shall issue the Notice to Proceed. Section 5.05: Facilities Enaineerina Protect: Approval of Plans and Specifications. The Board of Directors delegates to the Director of Engineering (DOE), as a Professional Registered Engineer, the authority to approve the design, plans, and specifications for the construction of a new or modified OCSD facility that is deemed a Facilities Engineering Project, as defined in Section 5.03 above. Section 5.06: Malor Capital Protect: Scope of Work. A. For every project approved by the General Manager,the E &0 Committee, or the Board of Directors, and for which outside professional consulting services are required, OCSD Staff shall develop a comprehensive scope of work. B. The scope of work shall define the extent of the services and the time required. Section 5.07: Malor Capital Project: Selection of Professional Desian Consultants — Procedure. For the employment of any Professional Design Consultant or Professional Service Consultant for major capital projects budgeted and approved by the Board of Directors, the following procedures shall apply: A. Proposals—Notice Repuesting. Staff shall prepare a Request for Proposal ("RFP") or a Request for Qualifications ("RFQ"), for the scope of work which Rnolvuon No.OCSD 07-04 20 of 37 Return to Mende Report shall include a request for the firm's qualifications, personnel capability, demonstration of firm's capabilities, identification of personnel assigned to the project, estimate of number of hours for each aspect of the project,fee proposals,and conflict of interest disclaimer. The Request for Qualifications' process may be used, at Staffs discretion, to narrow the field of firms submitting proposals on the project. OCSD shall maintain a comprehensive list of professional consultants' demonstrated competence. Optionally, notice may be given by publication in professional journals or publications of general circulation. B. Staff Screening Committee. A Screening Committee of at least two(2)Staff Members,as chosen by the Department Director, shall review all submitted proposals and prepare a recommendation for selection of the best qualified consultant to the E 8 O Committee as described in Paragraph D below. In order to avoid actual or perceived conflicts of interest, members of the Board of Directors are prohibited from participating in the RFQ Evaluation process except in those instances where the potential provider shall directly serve and report to the Board or its respective Committee(s)or when approved to do so by the Board Chair. C. Proposals—Contents. Proposals submitted shall: 1. Acknowledge the scope of the project and extent of the services required. 2. Include a description of the firm's qualifications for performing the proposed work. 3. In the case of a proposal for construction management services,each firm shall provide evidence that its personnel that will carry out on-site responsibilities have expertise and experience in construction project design review and evaluation, construction mobilization and supervision, bid evaluation, project scheduling, cost-benefit analysis, claims review and negotiation, and general management and administration of a construction project. 4. Include past performance records of the firm. 5. Demonstrate the firm's capabilities to complete the work within the time allotted. 6. Identify the specific key personnel to be assigned to the project. 7. Provide an estimate of the number of hours involved in each aspect of the scope of work for such personnel. 8. Be accompanied by a sealed fee proposal estimate which shall not be opened until the firm is selected as being qualified. Thereafter, it shall be the basis for procurement negotiations. The form of the fee proposal shall be as described in Subsections E2 and E3 below. Reedutim Ro.OCSD 07-0 21 or T 9. Contain a conflict of interest disclaimer. 10. Provide any other information required to properly evaluate the firm's qualifications and familiarity with the types of problems applicable to the project. D. Review of Proposals by Staff Screening Committee 1. The Staff Screening Committee shall review, and evaluate proposals, negotiate fees, and determine and make recommendations to the E & 0 Committee as to which firm is deemed to be fully qualified to provide services sought by OCSD based on the firm's demonstrated competence and qualifications. 2. The Staff Screening Committee, upon making a determination of the fully qualified firms, shall rank the firms considered, based upon the qualifications and in order of preference. E. Procurement and Negotiation of Agreement. To determine the firm to be selected and the compensation for the services sought, the following procedures will be strictly adhered to: 1. The Staff Screening Committee will, at its discretion, invite the firm that is considered to be the best qualified to appear before the Staff Screening Committee. 2. The proposal for fees associated with the services, as submitted by the selected fine, shall be presented in sufficient detail to enable the Staff Screening Committee to adequately ascertain the level of effort associated with the scope of work and to determine whether the firm has thoroughly Identified the efforts associated with the services and thoroughly understands the work required. 3. The basis of the fee shall be cost plus a fixed fee with a maximum amount; per diem rate(s)with a maximum amount; or a lump sum (fixed)fee. 4. If it is the decision of the Staff Screening Committee to use methods for compensation other than the lump sum or cost plus a fixed fee with a maximum, or the per diem rates with a maximum,justifications for this decision shall be made by the Staff Screening Committee in Its recommendation to the E &O Committee and the Board of Directors. 5. The Staff Screening Committee shall review the compensation requested by the firm which shall be compared with the maximum fee as previously established. 6. The final negotiated fee, as recommended to the E &0 Committee and Board of Directors, shall be certified by the Staff Screening Committee as reasonable for the services requested and not resulting in excessive profits for the firm. 7. If agreement is not reached, the negotiations should be terminated and similar interviews should then follow with the next ranked firm. Resolution No.OCSD 07-04 22 of 37 Rehm to Agenda Repod 8. All such negotiations shall be on a strictly confidential basis,and in no case shall the compensation discussed with one firm be discussed with another. F. Continuation of Services. 1. In some instances when a qualified firm has satisfactorily completed one phase in the development of a project, Staff shall, based on an outline and recommendation of the scope of additional work,obtain Board approval to negotiate with the same firm for additional services related to other phases of the project. 2. Continuation of services may arise when a firm has completed a feasibility report or a preliminary engineering report, and the services for said work are satisfactory to the Board and the procedure of examining other firms for subsequent phases is not deemed necessary or cost effective. 3. In the event that satisfactory negotiations for price cannot be concluded under these circumstances, negotiations should be terminated and the provisions set forth hereinabove for selection of a firm would apply. G. Specialized Services. 1. In the event that specialized professional services are required,where it is determined that only one (1)qualified firm can best perform the services for a speck project for professional fees estimated to be in an amount greater than$50,000, the Staff Screening Committee will negotiate a Professional Design Service Agreement or Professional Consultant Service Agreement, make recommendations to the E&O or other Standing Committee, and upon action by such Committee, present it to the Board of Directors for approval. 2. The basis of selection of the specialized firm or individual under Subparagraph G(1)above, along with the negotiated fee, shall be presented to the Board of Directors for consideration. H. Agreement for Services. 1. Upon approval by the Board of Directors of a negotiated agreement for professional services, a contract shall be executed in a form approved by the General Counsel. 2. The contract shall include, but not be limited, to the following terms: (i) A statement on the scope of the project. (ii) The basis and individual elements of the fees. (ill) The basis for payment to the firm. (iv) The time limits in which the services must be performed. Resolubon No.OCSD 07-04 23 of 37 (v) Provisions for fee adjustments, should there be changes in the scope of work. (vi) If it is determined by the Standing Committee that OCSD may be caused to incur a penalty or liability, or suffer a loss because of the failure of the firm to perform the work within specified time limits, the contract shall include a clause setting forth penalties for such nonperformance or delayed performance, in amounts to be determined by the Standing Committee. (vii) For projects exceeding $50,000 in fees or in other cases, as determined by OCSD, errors and omissions insurance in an amount recommended by the General Counsel or OCSD's Risk Manager (based upon engineering data from the Department Director) shall be required, unless the Standing Committee or Board of Directors, as the case may be, waives said insurance. (viii) For projects that involve engineering studies where a consultant is asked to provide a report not related or leading directly to a design project, the General Manager (based upon engineering data from the Department Director), in his discretion, may waive the requirement for the consultant to provide errors and omissions/professional liability insurance. I. Conflict of Interest. 1. OCSD maintains a Conflict of Interest Code pursuant to California Government Code Sections 87100 at seq.,which governs the activities and performance of duties of its Directors, officers, employees, or agents in the conduct of project work for OCSD. 2. No Director, officer, employee, or agent of a Professional Design Consultant under contract with OCSD shall solicit or accept rebates, kickbacks, favors, or other unlawful consideration from any individual or firm on behalf of any firm that may be potentially selected as a qualified firm to provide professional consulting services to OCSD. Acceptance of food and refreshments of a nominal value on infrequent occasions, and acceptance of gratuities or gifts shall not be deemed a violation of this provision, provided that if said items exceed $340, or the amount as fixed by California Government Code Section 89503, or California Code of Regulations Title 2, Section 18940.1, in a calendar year, the Director, officer, employee, or agent may be disqualified from participating in the decision pursuant to Article III of OCSD's Conflict of Interest Code; and provided further, that any Director, officer, employee, or agent, as a designated employee under OCSD's Conflict of Interest Code, shall report any amount of gifts on his/her annual Statement of Economic Interests, as required by said Code. Resolution No.OCSD 07-04 24 of 37 Return b Aoenda Rem 3. Any firm seeking selection under these procedures that violates OCSD's Conflict of Interest Code shall be automatically disqualified. 4. Any firth solicited to violate the code must report said solicitation to the Board of Directors or it will be automatically disqualified. Section 5.08: Major Capital Project: Engineer's Estimate: Approval of Plans and Specifications. A. For any project, if the engineer's estimate for the construction contract, as provided by the Director of Engineering or OCSD's consulting design engineer, is equal to or less than the approved construction budget for the project, Purchasing may proceed with advertising forbids. If the engineer's estimate for the construction contract is greater than the approved construction budget for the project, the Director of Engineering shall submit the project to the E&O Committee for recommendation,and to the Board of Directors for approval, before Purchasing may proceed with advertising for bids. B. The design plans and specifications for the construction of new or modified Major Capital Projects shall be submitted to the Board of Directors for approval along with the lowest responsible bid. ReWullon W.OCSD 07-MO 25037 ARTICLE VI PUBLIC WORKS CONSTRUCTION CONTRACTS Section 6.01 : Puroose and Scope. Public works contracts are herein defined as contracts with duly licensed contractors in the State of California for the furnishing of labor, materials, equipment, and permits, as deemed necessary for the erection, construction, alteration, repair,or improvement of wastewater collection, treatment and disposal facilities, and any other public building, structure, or improvement necessary to the operation of OCSD, in an amount greater than $35,000, as per California Public Contract Code Sections 20783 et seq. Section 6.02: Public Works: Bidding Required. When the expenditure required for a public works construction project exceeds $35,000, it shall be contracted for and let to the lowest responsive and responsible bidder, in accordance with the provisions of California Public Contract Code Section 20783. Section 6.03: Bidding Procedure: Public Works Construction Greater Than $35,000. Procedures for soliciting bids and awarding contracts for public works projects for more than $35,000 shall be in accordance with applicable provisions of California Public Contract Code Section 20783. A. Notice Inviting Bids. The Notice Inviting Bids shall specifically describe the work to be performed, shall state where Bid Forms, Specifications, General and Special Provisions may be secured, and the time and place for receiving and opening sealed bids. 1. Published Notice. Pursuant to California Public Contract Code Section 20783, the Notice Inviting Bids shall set a date for the opening of bids. The first publication or posting of the Notice shall be at least ten (10) calendar days before the date for the opening of bids. The Notice shall be published at least two (2) times, not less than five (5)days apart, in a newspaper of general circulation, printed and published within the jurisdictional boundaries of the District. 2. Bidders' List. The District may also solicit sealed bids from all qualified, responsible, prospective suppliers whose names are on a Bidders' List that may be maintained by OCSD. B. Bidder's Security. When deemed necessary by the Purchasing Division, a bidder's security may be prescribed in the Contract Specifications and in the public Notice Inviting Bids. Bidders shall be entitled to the return of the bid security upon full execution by the successful bidder of an awarded contract by OCSD. A successful bidder may forfeit its bid security upon refusal or failure to execute the Resolution No.OCSD 07-04 26 of 37 Rehm to Agenda Reporl Contract within the prescribed time after the Notice of Award of Contract has been delivered to the bidder, unless OCSD is responsible for the delay in the prescribed time. The Board of Directors may, on the refusal or failure of the successful bidder to execute the contract, award it to the next lowest responsive, responsible bidder. If the Board of Directors awards the Contract to the next lowest bidder, an amount of the lowest bidder's security equal to the difference in an amount between the low bid and the awarded bid shall be forfeited to OCSD,and the surplus, if any,shall be returned to the lowest bidder. C. Bid Ocening Procedure. Sealed bids shall be submitted to the Director of Engineering,or Contracts/Purchasing Manager, or their designee, or the Secretary of the Board of Directors, as identified in the bid document,and shall be identified as a bid on the envelope. Bids shall be opened In public, at the time and place stated in the public notice. A tabulation of all bids received shall be available for public inspection during regular business hours for a period of not less than thirty(30) calendar days after the bid opening. D. Bid Ecual or Less Than Construction Budget. For any project, upon receipt of bids for construction, if the lowest responsive bid of a responsible bidder is equal to or less than the approved construction budget for the project,the bid will be submitted to the Board of Directors. The Board of Directors may award a contract. E. Bid Greater Than Construction Budget. For any project,upon receipt of bids for construction, If the lowest responsive bid of a responsible bidder is greater than the approved construction budget for the project, Staff shall present the bid and a recommendation to the E&O Committee for review and recommendation to the Board of Directors. F. Refection of Bids. In its discretion,the Board of Directors may reject any and all bids presented and re-advertise for bids. If, after the opening of bids, all bids are rejected, the Board of Directors, on a Resolution adopted by a four-fifths (4/5ths)vote, may declare that the work can be performed more economically by force account, ff in accordance with applicable provisions of California Public Contract Code, or the materials or supplies furnished at a lower price in the open market and may have the work done in a manner stated in the Resolution in order to take advantage of this lower cost. G. Tie Bids. If two(2)or more bids received are for the same total amount or unit price(with quality and service being equal), and If the public interest will not be best served by a delay or re-advertising for bids,the Board of Directors may accept the one it chooses, or accept the lowest bid made by negotiation with the tie bidders at the time of the award. H. One Bid. When only one bid is received in response to a Notice Inviting Bids (NIB), the bid may be considered and accepted if a determination is made that(a)the specifications used in the NIB were not unduly restrictive, (b)the required competition was solicited and it could have been reasonably assumed that more than one bid would have been submitted, (c)the price is reasonable, (d)the bid is otherwise in accordance with the NIB,and(a)all processes and procedures have been followed in accordance with the Public Contract Code. Reaolubw No.ocso 07-0e 270137 I. No Bids. If no bids are received, OCSD may have the work done by force account, may re-advertise for bids pursuant to the procedures herein, or may select a contractor by negotiation. J. Ememencies. Whenever an emergency arises which is, or may be, a threat to the continued operation of the wastewater facilities, support facilities, and /or administrative facilities operated by OCSD, a Contract for the repair or replacement of the public facility may be ordered by the General Manager without complying with the provisions of this Resolution or the California Public Contract Code. This authority is hereby delegated to the General Manager, or his designee, by the Board of Directors pursuant to the authority of California Public Contract Code Section 22050. In such event, the General Manager shall advise the OCSD Chair and/or Vice Chair, as appropriate, of the action taken, and such action shall be confirmed by a four-fifths (4/5ths)vote of the Board of Directors at its next regular meeting. K. Surety Bonds. The Purchasing Division shall require a Faithful Performance Bond and a Labor and Materials Bond. A Warranty Bond maybe required before entering into a Contract in an amount up to one hundred (100%)percent of the amount of the Contract, as it shall find reasonably necessary to protect the best interests of OCSD. The form and amount of the Bond shall be described in the Notice Inviting Bids, or in the Contract Specifications. Original Bonds for public works construction contracts shall be kept in the official OCSD file which is maintained by the Clerk of the Board. L. Cost Records. Cost records shall be kept in the manner provided in Sections 4000 to 4007 inclusive, of the Califomia Government Code. ResduNm No.OCSD 07-04 28 of 37 Return to Mende Rom ARTICLE VII AWARD AUTHORIZATION 7.01 AGREEMENTS AMENDMENTS & CHANGE ORDERS A. Agreements B. Amendments & Change Orders C. Amendments & Change Orders to Existing Agreements 7.02 FACILITIES ENGINEERING PROJECTS A. Task Orders B. Amendments 7.03 PUBLIC WORKS PROJECTS A. Close-out Agreements B. Notice of Completion C. Time Extension to Public Works Contracts Ra Woo No,OC D 07-04 29 of 37 Section 7.01: ALL PURCHASE AGREEMENTS, AMENDMENTS AND CHANGE ORDERS This Section 7.01 applies to all Purchase Agreements, Amendments, and Change Orders entered into by the District. A. Agreements The award and execution of an Agreement on behalf of OCSD, shall be made in accordance with the following delegations of authority: Delegated Authorized Authority Authorized Action Staff Level C Authorization to approve budgeted purchases less than or equal to$2,000. Staff Level B Authorization to approve budgeted purchases from $2,001 through $5,000. Staff Level A Authorization to approve budgeted purchases from $5,001 through $10.000. Division Manager Authorization to approve budgeted purchases from $10,001 through $25,000. Department Director Authorization to approve budgeted purchases from$25,001 through $50,000. Assistant General Manager Authorization to review and approve budgeted purchases between $50,001 and an amount not to exceed $100,000. Items to be reported to the Board of Directors on a quarterly basis. General Manager Authorization to review and approve budgeted purchases between $50,001 and an amount not to exceed $100,000. Items to be reported to the Board of Directors on a quarterly basis. Rewlubw No.OOSD 07-04 30 of 37 Rehm to Agenda Reporl Standing Committees Authorization to approve purchases over $100,000 up to$200,000,and change orders and amendments within a ontingency budget to be established by each Standing Committee for each individual purchase agreement. In approving each agreement, each Standing Committee shall establish a contingency budget in an amount up to fifty percent (50%)of the original agreement price. The aggregate amount of change orders and amendments approved by staff shall not exceed the contingency budget established by the Standing Committee. If a Standing Committee sets a contingency budget at less than fifty percent(50%). it may later increase the contingency budget; provided, however,that the aggregate amount of change orders and amendments shall not exceed fifty percent(50%)of the original agreement price. Board of Directors Authorization to approve purchases over $200,000. For purchases over$200,000, the Board may establish a contingency budget for change orders and amendments that increase the agreement price. Any increase in the agreement price above the original agreement price,or the contingency budget amount(if any),shall be approved by the Board of Directors B. Amendments and Change Orders: The award and execution of amendments and change orders to Agreements,on behalf of OCSD shall be made in accordance with the following: Authorized Authority Authorized Action Department Head Authorization to make recommendation to the General Manager. Rasdution No.OCSD 07-N 31 d 37 General Manager Review recommendation of Department Head and approve amendments provided that the total contract shall not exceed $100,000 (includes original contract and all amendments). General Manager shall be authorized to approve all amendments for chemical contracts, unless contract unit price has been changed from original Board award. If the original chemical contract was approved in the budget pro-approval process, a unit price increase exceeding the unit price awarded in the budget pre- approval year would require Board approval. Contracts awarded in the pre-approval process based upon a not to exceed amount, not unit price, may be increased up to the amount preapproved in the budget year the contract was awarded. The General Manager shall manage the expenditure of all approved contingency funds in connection with all amendments and change orders approved by the Board, the standing committees, and the General Manager. Board of Directors Receive recommendations of General Manager, approve all amendments and change orders that exceed the maximum aggregate amounts established at the time that original Agreements are approved. C. Change Orders to Existina Public Works Agreements This subsection (C) shall apply to "existing public works agreements"from January 2007 to July 1, 2007. Thereafter, existing agreements shall be governed by the other provisions of this resolution. For purposes of this subsection (C), the term "existing public works agreements" shall mean public works agreements approved prior to the effective date of this resolution. The award and execution of a Public Works Agreement Change Order shall be made in accordance with the following delegations of authority: Resolution No.OCSD OM4 32 of 37 Return b Aoenda Rem Authorized Authority Authorized Action General Manager Receive recommendation of the Department Head and approve contract changes in an amount up to$100,000 per Public Works agreement. When the total combined value of all Change Orders approved by the General Manager, the Operations Committee and/or Board of Directors equals or exceeds $100,000, the General Manager's authorization limit has been satisfied. Note that this is the total amount of Change Order additions (not net amount of change order). Total cumulative amount for all Change Order additions not to exceed 5%of the original contract amount or$1130,000. whichever is less. Operations Committee Receive recommendation of the General Manager and approve Public Works agreement changes from$100.001 through $200.000 per Public Works agreement. When the total combined value of all Change Orders approved by the General Manager, the Operations Committee and/ or Board of Directors equals or exceeds $200,000,the Operations Committee's authorization limit has been satisfied. Note that this is the total amount of Change Order additions(not net amount of Change Order). Total cumulative amount for all Change Order additions not to exceed 10%of the original contract amount or$200,000, whichever is less. Board of Directors Approve Change Order additions in amounts over 10%of the original contract amount,or greater than $200,000. R"olulm No.OCSD 07-04 330137 Section 7.02: TASK ORDERS FOR FACILITIES ENGINEERING PROJECTS: A. Task Orders The award and execution of a Task Order shall be made in accordance with the following Delegation of Authority: Authorized Authoritv Authorized Action Director of Engineering Authorization to evaluate proposals and execute a Task Order up to $75,000. B. Amendments The award and execution of an amendment to an issued Task Order shall be made in accordance with the following Delegation of Authority: Authorized Author!tv Authorized Action Director of Engineering Authorization to negotiate amendments and make recommendations to the General Manager. General Manager Receive recommendation of DOE and approve each amendment to the Task Order in an amount up to$25,000. When the total combined value of the Task Order and all amendments equals or exceeds $100,000, the General Manager's amendment authorization limit has been satisfied. Section 7.03: Public Works Protects A. Close-Out Agreement. The approval and execution of an original Close-Out Agreement shall be made by the General Manager. Resolubon No.OCSO 07-04 34 of 37 Return to Aaenda Report B. Notice of Completion. The approval and execution of an original Notice of Completion shall be made in accordance with the following delegations of authority: Authorized Authority Authorized Action Director of Engineering Authority to approve and execute all or Purchasing Notices of Completion. C. Time Extension to Public Works Contrail. The approval and execution of an original Time Extension to Construction Contract shall be made in accordance with the following delegations of authority: Authorized Authority Authorized Action General Manager Authority to approve and execute construction contract time extensions. Resalr0on Ho.OCSD 0744 35 of 37 ARTICLE VIII TRAINING. MEETINGS AND RELATED TRAVEL EXPENDITURES Section 8.01: Purpose and Scope. This Article sets forth the procedures and scope of delegated authority by which OCSD employees are authorized to incur expenses for budget-approved meetings and training in furtherance of OCSD business. Section 8.02: General. A. Training or meetings exceeding $500 will be itemized, as well as possible, in the approved budget. It is recognized that some meetings and training cannot be pre-planned during the budget process. B. All out-of-country travel (excluding Canada and Mexico) requires approval by the Board of Directors. C. Training or meetings requests exceeding $2,000 will be approved by the Department Director. D. Training or meetings requests less than $2,000 will be approved by the Division Manager. E. Established approvals must be received prior to arrangements for meetings or training being made. Section 8.03: Policies and Procedures. All policies and procedures governing training or meetings, such as the use of OCSD forms and justification, will be followed. Resolution No.OCSD 01.03 36 of 37 Rehm to Agenda Reporl ARTICLE IX MISCELLANEOUS Section 9.01: Noncompliance. Any transaction failing to comply with this Resolution in any respect is voidable in the discretion of the Board of Directors,and any employee willfully and knowingly violating any provision of this Resolution may be subject to disciplinary action. Section 9.02: Severability. If any section,subsection, subdivision,sentence, clause,or phrase of this Resolution is for any reason held to be unconstitutional or otherwise invalid, such invalidity shall not affect the validity of the entire Resolution or any of the remaining portions thereof. The Board of Directors hereby declares that it would have passed this Resolution, and each section,subsection, subdivision, sentence,clause, and phrase thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, or phrases be declared unconstitutional or otherwise invalid. Section 9.03: Effective Date. This Resolution No.OCSO 07-04 shall take effect February 28,2007, upon adoption by the Board of Directors. Section 9.04: Repeal of Prior Resolution. Resolution No. OCSD 06-28 is hereby repealed in its entirety. PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 28,2007. CH R ATTE$'JW g ` Clark ofthe ebard ti `t Rsealrion No.OCSD 07-04 37 Of 37 i , n Return to Aaenda Reo., RESOLUTION NO. OCSD 07-13 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING POLICY FOR THE PAYMENT OF MANDATORY AND STATUTORY FEES GREATER THAN THE LIMITS ESTABLISHED IN RESOLUTION NO. OCSD 07-04 AND FUTURE UPDATES TO THE DELEGATION OF AUTHORITY WHEREAS, the Sanitation District is responsible for collecting and treating wastewater, and reusing or disposing of the treated wastewater and the separated solids in accordance with all applicable federal, state and local laws and regulations; and WHEREAS, these regulations are established by: the Environmental Protection Agency (EPA); the California Environmental Protection Agency (including the California State Water Resources Control Board and the California Regional Water Quality Control Board [CRWQCB]); and the South Coast Air Quality Management District (SCAQMD); and WHEREAS, the Sanitation District pays for permits to operate from these regulatory agencies; and WHEREAS, permit fees have consistently increased with time and the Sanitation District's National Pollutant Discharge Permit Fee has increased to $128,500 and will possibly double in future fiscal years; and WHEREAS, in accordance with the provisions of Ordinance No. OCSD-07-04, the Delegation of Authority Policies and Procedures, payments over $100,000 require Board approval. NOW, THEREFORE, THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: This Board finds that: A. Permit fees from regulatory agencies are mandatory and statutory; and B. Such permits are required to operate collection facilities and the wastewater treatment plants; and C. Escalating costs of the NPDES permit have increased to $128,500 for FY2006-07; and. 1 Return to Agenda Report D. Other mandatory and statutory .permit fees may also increase to amounts over$100,000; and E. The Delegation of Authority, RESOLUTION NO. OCSD -7-04, states that such payments require Board approval F. The Board of Directors finds that such mandatory and statutory payments may be paid directly to the regulatory agencies and are not subject to the policies and procedures of RESOLUTION NO. OCSD -7-04 Section 2: This Resolution shall become effective immediately upon adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors held June 27, 2007. Char ATTEST: zk� y,. Clerk of the oard M?AeptQM%15 151SSReedufi n 2WM7-13.NPDES Fee Pay entedm 2 Return to Mende Report RESOLUTION NO. OCSD 12-17 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING SECTION 4.09 REQUEST FOR PROPOSAL PROCEDURE OF RESOLUTION NO. OCSD 0744 TO EXPAND THE REQUEST FOR PROPOSAL PROCEDURE TO INCLUDE THE PURCHASE OF CRITICAL, ROUTINE, OR RECURRING GOODS OR SERVICES AND TO DEFINE BEST VALUE WHEREAS, the Orange County Sanitation District ("Districf) is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 4700, et seq., providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; and WHEREAS, California Government Code section 54202 requires that every local agency adopt policies and procedures, including bidding regulations governing purchases of supplies, services, materials and equipment, and that purchases of supplies, services, materials and equipment by the local agency be in accordance with said duly adopted policies; and WHEREAS, on February 28, 2007, the District adopted Resolution No. OCSD 07-04 entitled: "A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT (DISTRICT OR OCSD) ESTABLISHING POLICIES AND PROCEDURES FOR THE AWARD OF PURCHASE ORDERS AND CONTRACTS; AWARD OF PUBLIC WORKS PROJECT CONTRACTS; AWARD OF PROFESSIONAL SERVICES CONTRACTS; AND DELEGATION OF AUTHORITY TO IMPLEMENT SAID POLICIES AND PROCEDURES; AND REPEALING RESOLUTION NO. OCSD 06-28" (hereinafter, "Purchasing Policy'); and WHEREAS, Section 4.09, entitled "Request for Proposal Procedure," of the Purchasing Policy permits the use of a Request for Proposal ("RFP") solicitation process in lieu of the competitive bidding process for goods and services that prove difficult to quantify or describe; and WHEREAS, District staff has determined that there is a need to expand the use of the RFP solicitation process for critical, routine or recurring goods or services such as, but not limited to, the purchase of chemicals, in order to purchase such goods or services based upon a consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, and/or other similar factors in addition to the price in the award of these contracts. NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange County Sanitation District, does hereby resolve, declare, determine, and order as follows: Section 1: All of the recitals herein contained are true and correct. ' Page 1 of 2 Return to Mende Report Section 2: The first paragraph of Section 4.09, entitled "Request for Proposal Procedure" is deleted in its entirety and replaced as follows: If the Contracts / Purchasing Manager determines that the competitive bidding process is not practical or advantageous for OCSD in a particular case, he or she may award one or more contracts following a Request for Proposal ("RFP") solicitation process. The RFP process may be used (i) for goods or services that prove difficult to quantify or describe, where Proposers may offer different approaches or solutions; and/or (ii) for critical, routine or recurring goods or services that require consideration of the broadest possible range of competing services, products and materials available, fitness of purpose, performance reliability, standardization, life cycle costs, delivery timetables, reliable supply, support logistics, diversification of available sources and/or other similar factors in addition to the price in the award of these contracts. Award shall be based upon criteria identified in the solicitation which provide the best value for OCSD, wherein, best value is not solely determined by price. "Best value" means the overall combination of quality, price, and other elements of a proposal (or combination of several proposals) that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents. Section 3: Unless specifically amended herein, the remaining provisions of the Purchasing Policy shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Resolution and any provisions of the Purchasing Policy, the provision of this Resolution shall in all respects govern and control. Section 4: This Resolution shall take effect immediately upon its adoption. PASSED AND ADOPTED at a regular meeting held on December 19, 2012. Troy Ed jar, lair ATTEST: Maria At ala, erk f the Board Page 2 of 2 I STEERING COMMITTEE Meeting Dare TO ad.of Di, 08,28,13 -- AGENDA REPORT Item Number Item Number a Orange County Sanitation District FROM: Nick Kanetis, Director of Engineering Originator: Jim Colston, Environmental Compliance Manager SUBJECT: LEGISLATIVE AND PUBLIC AFFAIRS GENERAL MANAGER'S RECOMMENDATION Establish a Legislative and Public Affairs Committee of the Board of Directors. SUMMARY At the May 2013 meeting of the Steering Committee, several Committee Members suggested creating a new Board Committee to oversee the legislative affairs program. The Steering Committee may wish to consider expanding the scope of this committee to include public affairs activities as well. This would the responsibilities of overseeing the Sanitation District's legislative and public affairs activities under one committee. Among the activities that could be assigned to this new committee are: • Develop OCSD position on legislative proposals • Recommend annual legislative platform and goals • Travel to Sacramento and Washington, DC to meet with legislative delegations • Confer with lobbyists and staff on legislative initiatives, grants, and appropriation requests • Consult with staff on public outreach opportunities • Media relations • Internal and external communications • Provide direction to staff Staff seeks direction from the Steering Committee regarding the establishment of this new committee, the make-up of the Committee, and the frequency and time of meetings. Resolution No. OCSD 10-06, Establishing Rules of Procedure for the Conduct of Business of the District allows the Chairperson of the Board of Directors, or the Chairperson of a Standing Committee, or a majority of the Directors, to appoint a Special or Ad Hoc Committee to study and report on a current, specific matter, after which the Ad Hoc or Special Committee will be dissolved. The Steering Committee should consider whether it wants the Legislative and Public Affairs Committee to be a permanent, standing committee or a temporary Ad Hoc/Special Committee. Establishing a new standing committee would likely require a change to the Rules of Procedure. Page 1 of 2 ADDITIONAL INFORMATION Prior to the decision to upgrade wastewater treatment facilities to meet the secondary treatment requirements, the Sanitation District relied on member associations to advocate for legislation. With the significant costs associated with new secondary treatment facilities and the prior federal practice to provide grant funding nationwide for these facilities, the Sanitation District hired lobbyists to seek funding for these and other new facilities. Concurrently, the Sanitation District also became more involved in California State legislative and grant activities. Ultimately, a legislative staff member was hired, state and federal lobbyists were contracted (two federal and two state lobbyists at one point), a grant writer and administrator were contracted, and a legislative ad hoc committee of three members of the Board of Directors was convened to strategize and execute efforts to seek funding and influence legislation of interest to the Sanitation District. After 2007, when the committee structure of the Board of Directors was reformed, the legislative function was returned to the Steering Committee for future action. Current functions of the Steering Committee related to legislation are to recommend positions and actions on legislation; recommend an annual legislative platform and goals; travel to Sacramento and Washington, DC by members of the Board of Directors to meet with legislators and testify before committees; confer with lobbyists and staff on legislative initiatives and public outreach opportunities; and give staff direction on the legislative affairs program. PRIOR COMMITTEE/BOARD ACTIONS N/A CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS None Page 2 d 2 STEERING COMMITTEE Meeting Dare To ad.of Di, 08,28,13 -- AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: Nick Kanetis, Director of Engineering Originator: Jim Colston, Environmental Compliance Manager SUBJECT: LEGISLATIVE UPDATE GENERAL MANAGER'S RECOMMENDATION Information Only. SUMMARY Staff and legislative consultant will provide an oral update to the Steering Committee detailing federal and state legislative activities for the prior month. Written updates from both the federal and state lobbyists are also provided as part of the report. ADDITIONAL INFORMATION N/A PRIOR COMMITTEE/BOARD ACTIONS N/A CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: • Legislative Updates: State and Federal Page 1 of 1 Return to Aaenda Repotl L11 �V RESOY MEMORANDUM TO: Jim Colston FROM: Eric Sapirstein DATE:J August 11,2013 SUBJECT: Washington Update Congress spent the past month setting the stage for a busy autumn as both chambers sought,unsuccessfully,to move a handful of spending bills for the new fiscal year that begins October 1. Other efforts to advance legislation made limited progress,adding to an increased workload that Congress will need to address during the remaining few months of the session. Congress is technically scheduled to adjourn during the first week of October,but this symbolic date will be extended because of the expected debate surrounding increasing the nation's debt limit,which is projected to be reached sometime in November. The following summarizes the status of pending policy issues of interest to the District USEPA Budget Subject to Significant Cuts and Policy Riders Within the overall budget debate,USEPA has again become a critical element. The House version of the agency's fiscal year spending bill seeks to impose a 33%spending reduction on programs. For the all-important SRF program,this translates into a commitment of just$250 million for POTW assistance,compared to a current year level of almost$1 billion. By comparison,the Senate version would provide$1 billion in assistance. Additionally,the House bill also provides for a series of policy riders. Some of these riders,like the prohibition on the use of agency funds to redefine waters of the U.S.,attracted a veto threat Other policy issues,including a mandate to rely on U.S. manufactured iron and steel at SRF funded projects,have not attracted the administration's ire. This mandate continues to be an issue of contention within Congress because some Members believe that it could impose additional cost burdens for POTW construction needs. The Senate funding bill includes a similar mandate as the House. However,the Senate approach leaves the definition of which iron and steel products would be subject to the mandate to USEPA definition. ENS Resources,lnc 110114th Street N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755frelefax 202.466.3787 Return to Aaenda Repotl Infrastructure Financing Options The past month saw renewed interest in jumpstarting the policy debate surrounding the future of federal infrastructure assistance. The House,as previously noted,could begin committee deliberations later this fall on mechanisms to address the funding needs of POTWs through concepts like a WIFIA program and renewal of the SRF program. One of the key policy matters involves funding levels within the overall context of future federal spending. Some committee members and their staff are considering an approach that would guarantee multi-year funding commitments,but at greatly reduced authorization levels of around a billion dollars per year. Others are seeking to return to levels closer to an average of$2 to$3 billion per year. One option that continues to be a perennial initiative is a water trust fund akin to the highway trust fund program. This policy approach has been significantly restructured to a point that any trust fund's resources would be generated based upon a voluntary contribution from industries that rely on POTWs for treatment of the influent. The approach envisions a three-cent per bottle fee in exchange for the right to label the bottle with a certification that the producer,a soft drink company,for example,could exhibit,staling its commitment to improved water quality. Prospects that a voluntary approach like this could succeed in generating significant resources are uncertain at best. However,it is evidence that the original idea of a broad-based tax on industrial users of POTW did not enjoy critical support in Congress. House Committee Continues to Prepare for WRDA Rewrite The Committee on Transportation and Infrastructure staff continues to prepare for a markup of a renewed WRDA measure. As Congress recessed for the summer,its chairman,Bill Shuster(R-PA),formally announced that but for a few undecided issues, the committee was prepared to markup a bill in September. The only condition is an ability to bring the bill to the House Boor for a vote. If he is unable to secure Floor time, then markup would be delayed. Because the bill appears to be headed for committee consideration,we reached out to the District's newest delegation Member's,Alan Lowenthal,and staff to discuss the matter of the anticipated mandate to remove riprap from the Santa Ana River. We also discussed the matter with the Member. Staff were receptive to the District's concern that a requirement to remove the riprap may not be an appropriate use of ratepayer resources as well as the question surrounding responsibility for restoration of the riverbank.We have arranged for a meeting with the staff upon Congress'return to work in September to identify potential avenues,within a WRDA rewrite,to ensure an equitable and appropriate restoration plan is developed,if the science dictates such action. USEPA Administrator Confirmed by Senate The Senate voted 59-40 to confirm Gina McCarthy to become USEPA Administrator, after a threat to revise Senate filibuster rules compelled Senators to agree to move forward and vote on the long-stalled nomination. McCarthy,upon assuming the position,announced that Acting Administrator Robert Perciasepe would return to his prior position,Deputy Administrator,and continue in this capacity for the remainder of the Administrations term. ENSResoumes,lnc 110114th Street N.W.,Suite 350 Washington,D.C.20005 Phone 202.466.3755frelefax 202.466.3787 Return to Mende Report Following up on the successful floor vote,Chairman Barbara Boxer convened the Committee on Environment and Public Works to hear from a trio of USEPA nominees including Kenneth Kopocis who was nominated to become the Assistant Administrator for the Office of Water almost two years ago. Within days of the July 23 hearing,Boxer held a vote on the nominations and moved them to the Senate floor for a final confirmation vote. The continued controversy surrounding Kopocis's involvement in the development of new policy defining which waters of the U.S.are subject to regulation under the Clean Water Act resulted in a hold being placed on the nomination. Therefore,Congress recessed for the summer without taking a vote on the nomination. The question now becomes whether Boxer and the Senate Democratic leadership will threaten to revisit the filibuster rule to allow for a vote on the nomination or if Kopocis decides that his nomination is captive to a policy debate with no end and seeks to have the nomination rescinded. Sunshine on Conflicts Act(H.R.836) Our effort to advance the provisions of H.R.836 remain focused on the Committee on Transportation and Infrastructure where staff have indicated a desire to address the policy issue through legislation to renew infrastructure assistance legislation. Staff continue to insist that they expect such legislation will be marked up later in the fall after WRDA is addressed. While we are hopeful that H.R.836's provisions will be incorporated into an infrastructure bill,we continued to monitor USEPA's rulemaking efforts. The agency continues to state that it plans to seek public comment on the existing income restriction standard that defines conflict for purposes of water board appointments. The agency is expected to issue a call for comments on the rule and need for revision later this fall. At that time,the District will need to develop formal recommendations for agency consideration. In the event that the agency moves forward on a rulemaking,it would obviate the need for a legislative remedy. Tax Reform and Municipal Bonds If one policy arena enjoys bi-partisan congressional support,it is reforming the federal tax code. Although,the definition of reform is subject to different interpretations, based on which member of the House and Senate tax committees is discussing the reform efforts. Without reference to the objectives of any reform initiative,it is clear that both the House and Senate(along with the administration)are examining options that would dramatically impact the core financing tool for POTWs and local government in general: local tax-exempt bonds. Central to the debate is whether such bond uses and availability should be permitted to continue. Options that are under review target elimination of the bonds in total, removing specific uses of the bonds,or curtailing the tax benefits of the bonds and limiting these benefits to individuals that fall within a income tax rate bracket of 28%. These bonds are vital to the District's long-term ability to finance the acquisition and construction of water quality infrastructure. We continue to recommend that the District communicate with its congressional delegation the importance of the continued availability of tax-exempt financing remain to ensure the ability to finance infrastructure needs created by federal mandates. We attach a recent letter related to this priority that the District should rely upon in any discussions with the delegation. ENSResoumes,lnc 110114th SneeL N.W.,Suite 350 Washingtnn,D.C.2D005 Phone 202.466.3755f relefex 202.466.3787 Return to Aaenda Report TCDWNSEND ' UBLIC AFFAIRS TPA -- MEMO To: Orange County Sanitation District From: Townsend Public Affairs, Inc. Date: August 16, 2013 Subject: Monthly Status Report The Legislature was on summer recess for the last several weeks and has returned to session as of mid August. As we approach the end of the legislative session, there are a few important deadlines to keep in mind. • August 16: The last day for policy committees to meet and report on bills. • August 30:The last day for fiscal committees to meet and report on bills. • September 13: Final day for each house to pass bills. The legislature will recess upon adjournment. • October 13: Deadline for the Governor to sign or veto bills. OCSD SPECIFIC LEGISLATION OF INTEREST SB 691 (Hancock) This bill is intended to narrowly target one-day violations that affect great numbers of individuals affected by air quality violation with higher civil penalties. Senator Hancock stated that current single-day violations of air quality regulations that affect entire communities lack adequate financial consequences. He also stated that having adequate penalties for non-compliance is essential to protecting public health and safety. However, opponents of the bill stated that immensely increasing the penalties would impose a penalty based simply on allegations of annoyance, whether or not the actual emissions are harmful or in violation of an existing permit standard or requirement. OCSD took an oppose position on the bill, and TPA worked extensively with OCSD staff and Senator Hancock's office to ensure that the District's concerns were addressed. Ultimately the bill was amended to address "toxic air substances" which alleviates the District's opposition. CASA also removed opposition for the bill. AB 371 (Sales) This bill is intended to address the dumping of sewage (sludge) and its effects on the health, safety and water quality in rural areas of Kern County. It is intended to clarify the original legislative objective to protect the rights of local communities to adopt environmental protection standards. According to Assembly Member Sales, "Uncontrolled dumping of sewage sludge threatens our water and the public health of our communities. The recent court interpretation of California law is an unacceptable outcome for the residents of Kern County". State Capitol Office•925 L Street•Suite 1404•Sacramento.CA 95814•Phone(916)417-0 86•Fax(916)444-0383 Federal Office•SIN Pennsylvania SE•Suite 207•Washington,DC 20003•Phone(202)546-8696•Fax(202)5464555 Northern California Office-300 Frank Ogaaa Plans•Suite 204•Oakland,CA 94612•Phone(510)835-9050•Fax(510)835-9030 Southern California Office•2699 White Road•Suite 261•Irvine,CA 92614•Phone(949)399-9060•Fax(949)476-8215 Return to Mende Report Conversely, according to the California Association of Sanitation Agencies, "The type of ban which Kern County has previously sought to enforce, and which could be authorized by AB 371, is in conflict with the Integrated Waste Management Act (IWMA), in conflict with the regional welfare doctrine, and contrary to the overwhelming weight of scientific evidence that land application of bio-solids is a safe and beneficial practice. This bill would circumvent the legal process and establish a one-off rule for Kern County that has already been rejected by the courts". OCSD took an oppose position on the bill. The bill was heard In the Assembly Local Government committee and was held on the suspense file. AB 371 will not be able to be heard or modified before January 2014, and has become a two-year bill. AB 690 (Campos) The Assembly on Local Government Committee received overwhelming opposition to AB 690, arguing that the bill would unfairly divert necessary property tax revenues from districts. In response to the immense amount of opposition, the bill has now been amended to be aligned with current law requiring local agencies' consent prior to property tax revenue diversion for the creation of a Jobs and Infrastructure District(JID) program. OCSD took an oppose unless amended position on the bill. The bill was set to be heard on April 15' but was postponed. The bill will not be eligible to be heard again prior to the legislature adjourning in September. The bill will be eligible to be taken back and/or amended when the Legislature reconvenes in January 2014. SB 785 (Wolk) The bill makes three substantive changes to current law: (1) Lowering, from $2.5 million to $1 million, the value of projects that counties can construct using design-build; (2) Eliminating the sunset dates that would have automatically repealed some statutes authorizing the use of the design-build method; (3) Eliminates the cap on the number of projects that the state can construct using the design-build method for specified types of projects. According to the California Legislative Analyst's Office, this bill is intended to "...rewrite design- build statutes to eliminate inconsistencies in existing law and consolidate state and local agencies' statutory authority to develop projects using design-build. By consolidating statutes and creating more uniform requirements, SB 785 makes the state laws governing the design- build method clearer, more flexible, and easier to use". OCSD took a support In concept position on the bill. Senator Wolk pulled the bill just prior to the last committee hearing and placed it on the inactive file. The bill will not be eligible to be taken back up or amended prior to January 2014. SB 785 was facing significant opposition from the labor unions, and Senator Wolk decided to continue working on the bill to determine if the opposition's concerns could be rectified. SPECIFIC ACTIVITIES OF THE MONTH: • TPA is continually monitoring legislation that could have any potential impact on the District and TPA maintains a legislative tracking matrix for OCSD staff. Please find attached a copy of the legislative matrix. 2 Return to Mende Report • TPA met with Faviola Ochoa to discuss impending projects such as securing speakinq� engagements for the Board and General Manager as well as OCSD's upcoming 60t anniversary. • TPA met with OCSD leadership to discuss education and outreach efforts related to government affairs strategy. • TPA worked with OCSD staff to create an outreach and education strategy document discussing future plans for the Board and General Manager. • TPA worked with Senator Hancock's office on SB 691 to amend the bill and remove OCSD's opposition. 3 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO 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) 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 OOBS 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 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. 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. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.