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HomeMy WebLinkAbout12-20-2017 Steering Committee Agenda Packet.pdf Orange County Sanitation District Wednesday, December 20, 2017 Regular Meeting of the 5:00 P.M. STEERING COMMITTEE Administration Building Conference Rooms A& B 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGEND0 CALL TO ORDER DECLARATION OF QUORUM: Clerk of the Board PUBLIC COMMENTS: If you wish to address the Committee on any item, please complete a Speaker's Form (located at the table at the back of the room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you want to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. REPORTS: The Committee Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. Sewer Service Fees & Charges (Jim Herberg) CONSENT CALENDAR: The Consent Calendar Items are considered to be routine and will be enacted, by the Committee, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the Regular Meeting of the Steering Committee held November 15, 2017. 2. ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE (Bob Ghirelli) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 17-18, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 17-08." 12/20/2017 Steering Committee Agenda Page 1 of 4 NON-CONSENT: 3. DISTRICT 6 TRUNK SEWER RELIEF, PROJECT NO. 6-17 (Rob Thompson) RECOMMENDATION: Recommend to the Board of Directors to: Approve a contingency increase of $369,930 (10%) to the construction contract with Charles King Co., Inc. for District No. 6 Trunk Sewer Relief, Project No. 6-17, for a total amount not to exceed $739,860 (20%). 4. DEFERRED PAYMENT AGREEMENT REQUEST FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) RECOMMENDATION: Recommend to the Board of Directors to: Deny the request for a 3'd deferred payment agreement for charges and fees owed for sanitary sewer service charges from Aseptic Technology, LLC. INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation, 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: 4 Klean Waters, Inc. at al. v. Orange County Sanitation District, at al., United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. Klean Waters, Inc. at al. v. Orange County Sanitation District, at al. United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-01498. 12/20/2017 Steering Committee Agenda Page 2 of 4 Wesley Bauer v. Orange County Sanitation District, Orange County Superior Court, Central Justice Center, Case No. 30-2017-00956252. APP Winddown, LLC at al. v Orange County Sanitation District, United States Bankruptcy Court District of Delaware, Case No. 16-12551, Adversary No. 17-51609. (2) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 18350 Mt. Langley St. Fountain Valley, CA APN Nos. 156-154-08 and 156-163-17 10950 Virginia Cir. Fountain Valley, CA - APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA -APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA -APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA -APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA -APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA -APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA -APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA -APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA-APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA -APN No.156-154-07; 18386 Mt. Langley St. Fountain Valley, CA-APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA -APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA -APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA-APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA -APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA -APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA -APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA -APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner; Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Tom Grant; Kevin Turner and John Gallivan, Cushman and Wakefield. Negotiating parties: K & A Investments LP, APN Nos. 156-154-08 & 156-163-17 Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; 12/20/2017 Steenng Committee Agenda Page 3 of 4 JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: To the Steering Committee meeting scheduled for Wednesday, January 24, 2018 at 5:00 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)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Postino: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A.Lore Clerk of the Board (714)593-7433 klore(olocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Hemerg (714)593-7300 iherberg(c3ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 mhirelli0locsd.com Director of Engineering Rob Thompson (714)593-7310 rthomuson(n)oosd.com Director of Environmental Services Jim Colston (714)593-7450 icolston0locsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Ityner(&ocsd.cem Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandlerkDocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 12/20/2017 Steering Committee Agenda Page 4 of 4 ITEM NO. 1 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, November 15, 2017 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Vice-Chairman Shawver on Wednesday, November 15, 2017 at 5:03 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: David Shawver, Board Vice-Chair Jim Herberg, General Manager Chad Wanke, Administration Committee Bob Ghirelli, Assistant General Manager Chair Celia Chandler, Director of Human John Withers, Operations Committee Resources Chair Rob Thompson, Director of Engineering Ellery Deaton, Member-At-Large Ed Torres, Director of Operations & Tim Shaw, Member-At-Large Maintenance Lorenzo Tyner, Director of Finance & COMMITTEE MEMBERS ABSENT: Administrative Services Greg Sebourn, Board Chair Kelly Lore, Clerk of the Board Donald Wagner, Member-At-Large Jennifer Cabral Al Garcia Tina Knapp Kathy Millea Jeff Mohr Tyler Ramirez Jim Spears OTHERS PRESENT: Brad Hogin, General Counsel Mark Panny, Carollo Engineers Pierce Rossum, Carollo Engineers PUBLIC COMMENTS: No public comments were provided. REPORTS: Vice-Chair Shawver did not provide a report. General Manager Jim Herberg did not provide a report. 11/15/2017 Steering Committee Minutes Page 1 of 3 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on October 25, 2017. AYES: Deaton; Shaw; Shawver; and Wanke NOES: None ABSTENTIONS: None ABSENT: Sebourn, Wagner and Withers 2. REIMBURSEMENT AGREEMENT WITH ORANGE COUNTY FLOOD CONTROL DISTRICT FOR LANE CHANNEL PROJECT, PROJECT NO. FE16-11 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Reimbursement Agreement with the Orange County Flood Control District for the protection of the Von Karman Trunk Sewer in the City of Irvine, for an amount not to exceed $414,167. AYES: Deaton; Shaw; Shawver; and Wanks NOES: None ABSTENTIONS: None ABSENT: Sebourn, Wagner and Withers NON-CONSENT: 3. STRATEGIC PLAN UPDATE (Bob Ghirelli) Assistant General Manager Bob Ghirelli provided a short informational presentation regarding the item. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the 2017 Strategic Plan Update. AYES: Deaton; Shaw; Shawver; and Wanke NOES: None ABSTENTIONS: None ABSENT: Sebourn, Wagner and Withers Director Withers arrived at 5:07 p.m. 11/15/2017 Steering Committee Minutes Page 2 of 3 INFORMATION ITEMS: 4. ORANGE COUNTY SANITATION DISTRICT RATE PROGRAM (Lorenzo Tyner) Director of Finance & Administrative Services Lorenzo Tyner distributed a handout, provided an informative PowerPoint presentation, and responded to questions regarding the Rate Program including: preparation and analysis of the comparison of rates, general and industrial user fees, capital facilities capacity charges and supplemental capital facilities capacity charges, rebates and refunds, and provided a schedule of the implementation of the rate program approval process. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.8 & 54956.9(d)(11: The Committee convened in closed session at 5:26 p.m. to discuss one item. Item No. CS-2 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:43 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Vice-Chairman Shawver declared the meeting adjourned at 5:45 p.m. to the next Steering Committee meeting to be held on Wednesday, December 20, 2017 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 11/15/2017 Steering Committee Minutes Page 3 of 3 STEERING COMMITTEE Meeting Date TOBd.Ot Dir. z/zo/v tz/zo/v AGENDA REPORT IWmNumber Item Number z Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 17-18, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 17-08." BACKGROUND At this time, the procedures are being updated to add language regarding teleconferencing of meetings and minor clerical revisions. RELEVANT STANDARDS • CA Government Code Section 54950 at seq. • Comply with transparency and communication requirements, including the Brown Act PRIOR COMMITTEE/BOARD ACTIONS May 2017-Adopted Resolution No. OCSD 17-08, "A Resolution of the Board of Directors of Orange County Sanitation District Establishing Rules of Procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 15-27." ADDITIONAL INFORMATION N/A ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Resolution No. OCSD 17-18 Page 1 of 1 RESOLUTION NO. OCSD 17-0818 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING RULES OF PROCEDURE FOR THE CONDUCT OF BUSINESS OF THE DISTRICT, AND REPEALING RESOLUTION NO. OCSD 45 2717-08 WHEREAS it is necessary to establish rules of procedure to facilitate the orderly handling of business to come before the Orange County Sanitation District Board of Directors and Standing, Steering, Special and Ad Hoc Committees. NOW THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Rules of Procedure. That the following rules of procedure be adopted for the conduct of business of the District: A. Regular Meetings. There shall be a regular monthly meeting of the Board of Directors of the District on the fourth Wednesday of every month at 6:00 p.m., in the Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley, California; provided, however, if the fourth Wednesday of the month falls upon a legal holiday, said monthly meeting shall be held on the next day thereafter, at the same time and place, unless the Board adjourns to a different date and time. The Board of Directors may adjourn any regular, special or adjourned special meeting to a time and place certain, as specified in the order of adjournment. B. Special Meetings. A special meeting of the Board of Directors may be called in either one of the following ways: (1) By the Chairperson of the Board of Directors; or (2) By the written request of a majority of the Steering Committee delivered to the Clerk of the Board. The call or notice for special meeting shall be in writing and delivered personally or by mail at least twenty-four (24) hours before the time of such meeting, as specified in the notice. Any notice deposited in the regular mail addressed to a Director at the address he or she has on file with the Clerk of the Board postage prepaid, sixty (60) hours in advance of any such meeting as specified in the notice, shall be presumed to have been delivered. The call or notice shall specify the time and place of the special meeting, a description of the business to be transacted,and copies of all pertinent written materials. OCSD 17-1888-1 Such written notice may be dispensed with as to any Director or Alternate Director who, at or prior to the time the meeting convenes, files with the Clerk of the Board a written waiver of notice. Such waiver may be given by facsimile or electronic mail. Such written notice may also be dispensed with as to any member who is actually present at the meeting at the time it convenes. The Clerk of the Board shall diligently attempt to notify each Director personally of the time, place and purpose of said meeting, not less than twenty-four(24) hours before the time of said meeting. The call or notice shall be posted in the administrative offices' public lobby and in a location freely accessible to the public at least twenty-four(24) hours prior to the special meeting. C. Meetings Adjourned by Clerk of the Board. If at any regular, adjourned regular, special or adjourned special meeting,there is not a quorum of Directors present, the Clerk of the Board may declare the meeting adjourned to a stated time and place and shall cause written notice of the adjournment to be given in the same manner as for a special meeting, unless such notice is waived as provided for in special meetings. Within twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of adjournment shall be conspicuously posted on or near the door of the place where the meeting was held and in a location freely accessible to the public. D. Notices to News Media. When any local newspaper of general circulation, radio or television station requests, in writing, notices of meetings of the Board of Directors, the Clerk of the Board shall thereafter, until receipt of a notice terminating said request, deliver notices of regular, regular adjourned and special adjourned meetings to such newspapers, radio or television stations. Delivery shall be made in the same manner as delivery is made to the Directors. E. Conduct of Meetings. (1) Procedural Rules. The procedural rules for debate and action shall be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's Rules of Order shall not be applicable or govern the procedures for the conduct of Sanitation District business. (2) Legal Officer. In any case of ambiguity or uncertainty in the interpretation or application of these Rules to any procedure, the presiding officer may direct such question for a ruling to the Board's General Counsel, who shall be the parliamentarian of the Board. (3) Obtaining the Floor and Making Motions. Any member of the Board wishing to speak, or any member of the public wishing to address the Board, must first be recognized by the Chairperson. The Chairperson must recognize any member of the Board who seeks the floor when appropriately entitled to address the Board. OCSD 17-1808-2 Any member of the Board, including the Chairperson, may bring a matter of business properly before the Board by making a motion. Any member, including the Chairperson, except the member making the motion, may second the motion. Once a motion is seconded, it may be opened for discussion and debate, in accordance with the procedures in Subsection (4) below. (4) Rules for Discussion. Debate and Deliberation by the Board. The procedures for consideration and action on all matters to come before the Board shall be in compliance with the terms of this Section, as follows: (a) Each item on the Agenda will be introduced in a form of a report by either Staffthe General Manager, a member of -the Executive Management Teem or Counsel. (b) Upon completion of the report, the Chairperson will allow for direct questions regarding the item, by Directors, each in turn, and in the order as selected by the Chairperson. (c) Upon completion of the question period, the Chairperson will entertain a motion and second for consideration by the Board. (d) Discussion among the Directors will follow. Each Director will be recognized to address the Board in the order selected by the Chairperson, with a five (5) minute time limit for each Member wishing to speak on the Agenda item, unless the time limit is waived by the Chairperson. There will be no interruptions of the Director who has been recognized. Attempted interruptions will be declared out-of-order, and the Board Member attempting to interrupt will be asked to remain silent until recognized. (a) As an additional courtesy to everyone, repetition of comments will be discouraged in the interest of timer and, at the discretion of the Chairperson, can be declared out-of-order. (f) After each Member who wishes to speak has been recognized and completed his/her remarks, a single three (3)minute period of rebuttal will be allowed any Director, unless the time limit is waived by the Chairperson. (g) If it appears to the Chairperson that any Director is pursuing a line of questioning or commentary due to lack of preparation or prior review with the District's Staff, the Director's time will be declared to have been used up, and no further inquiry will be allowed. (h) Upon adoption of a motion on an Agenda item, there will be no further discussion of that item. OCSD 17-1808-3 (5) Decorum in Debate. All Members shall address their remarks to the Chairperson and confine them to the business then pending and subject to discussion before the Board, avoiding personalities and reflections upon anyone's motives. (6) Closing or Limiting Debate. At all times,the Board shall endeavor to allow free and open debate among Members of the Board. However, in the discretion of the Chairperson, it may become necessary to close or limit debate, so that action can be taken by the Board. An order by the Chairperson closing or limiting the debate can only be set aside by a majority vote of the Board. F. Quorum. A majority of the Directors shall constitute a quorum of the Board. G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of each year. Any person nominated for Chairperson shall be deemed to be nominated for Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, the nominees shall prepare a statement setting forth their qualifications for the office sought. The statements should be forwarded to the Clerk of the Board who will in turnshall-be mailedmail teto the members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. If only one individual is nominated for Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Chairperson, no election shall be held in June, and the individual shall assume office July 1s'. If only one individual is nominated for Vice Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Vice Chairperson, no election shall be held in June, and the individual shall assume office July 1s'. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. The Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. The Vice Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Vice Chairperson. OCSD 17-1808-4 H. Presiding Officer. The Chairperson of the Board shall preside during meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall preside. I. Clerk of the Board and Minutes. The Board of Directors shall have a person designated to serve as Clerk of the Board. The Clerk of the Board will be appointed to the position by the General Manager and shall report to the General Manager or a Department Head as designated by the General Manager, The Clerk of the Board will be a regular#u44h;+efull-time employee, subject to all the rules and policies applicable to all regular full—time employees. The Clerk of the Board shall attend all meetings of the Board of Directors, unless excused by the Chairperson, and shall prepare an accurate record of each meeting for submission to the Directors and subsequent approval at the following meeting; provided, however, that when an adjourned, special or special adjourned meeting of the Board of Directors immediately precedes a regular meeting, Minutes of said meeting shall be submitted for approval at the next meeting of the Board following said regular meeting. In the preparation of Official Minutes of a meeting of the Board of Directors, the Clerk of the Board will not record the name of the Director who moves or who seconds the adoption of a motion or Resolution, except the vote of any ind v due' Director`hall-be but will reflect the votes by name of each Director on each item brought before the Board. heR •^^6 i Fed by^•^•^^'^^^ ^f^tot^ law: In the absence of the Clerk of the Board, a Deputy Clerk of the Board shall be appointed to exercise the duties of the Clerk of the Board. J. Regular Business to Come Before the Board of Directors. Insofar as practicable, all items of business to be taken up at a regular meeting of the Board shall be submitted to the Clerk of the Board, who shall include on the Agenda all such items submitted by Directors, the General Manager and General Counsel, and all formal communications. The Clerk of the Board shall mail to each Director a notice of such regular meetings, together with a proposed Agenda, not later than the Friday immediately preceding such regular meetings. Said Agenda, insofar as possible, shall include copies of Resolutions, except as hereafter provided, and a description of all matters to be considered, together with any pertinent written materials. Agendas shall be posted in a location freely accessible to the public not less than seventy-two (72) hours in advance of the meeting. Resolutions designated as "standard" and adopted by the Board of Directors from time to time, and approved as to form and content, need not be included with said Agenda; provided, however, that the information completing said standard Resolutions shall be set OCSD 17-18N-5 forth on the Agenda listing, and copies of said standard Resolutions shall be on file with the Clerk of the Board at the meeting time and place. Items of business not known at the time the regular Agenda is mailed as herein provided, may be considered as supplemental Agenda items; provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 et sec.) are satisfied. No business, except with consent of two-thirds of the Directors present (a majority of Directors present for emergency actions), and only if permitted by the Ralph M. Brown Act, not appearing on the regular or supplemental Agendas may be brought before the Board of Directors. The meeting Agenda shall provide for an opportunity for members of the public to address the Board on items on the Agenda and non-Agenda items of public interest. As determined by the Chairperson, speakers may be deferred until the specific Agenda item is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on non-Agenda items may address only items that are within the subject matter jurisdiction of the Board of Directors. Time allotted for such presentations is limited to three (3) minutes or less. Total time allotted for all public input on each non-Agenda item is limited to thirty (30) minutes to one (1) hour, taking into consideration the number of persons filing a request to address the Board. However, time allotments may be waived by a majority vote of the Board. K. Handling of Business and Voting. During the course of a Board meeting, routine matters listed on the Agenda for consideration will be referred to by Agenda Item Number only. Voting on all Resolutions shall be by roll call, except if waived by unanimous voice vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the motion or Resolution under discussion. The name of each Director shall be called only once. On matters of considerable interest or on which there appears to be a controversy, the motion or Resolution shall be read by title or repeated by the Chairperson. The Chairperson shall thereafter call for discussion of the motion or Resolution, at which time any member may discuss the pending matter. Any person other than a Director present at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion as to the extent of discussion outside of the membership of the Board shall rest with the Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's discretion, repeat the motion or Resolution pending, and thereafter, call for a vote. The Clerk of the Board shall determine and state whether or not a motion or Resolution is adopted by roll call vote. On all other matters, the Chairperson shall determine the outcome of the voting. OCSD 17-18e9-6 L. Committees. (1) Standing Committees. (a) Steering Committee: There shall be a permanent Committee designated as the Steering Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, the Chairperson of each of the Standing Committees;and three at-large members selected by the Chairperson of the Board. The Vice Chairperson of each of the two Standing Committees shall serve as the designated Alternate, in the absence or inability to serve by any Chairperson. In the absence or inability of any designated member of the Steering Committee to serve, his/her city/agency appointed Alternate Director may not serve in that member's absence. The Committee shall conduct an annual performance evaluation of the General Manager and submit recommendations on his/her compensation to the Board of Directors. The Committee shall also review the General Manager's evaluation and compensation of the executive management employees, based on established criteria, and executive management's goals and objectives for the following year. The Committee shall also conduct an annual performance evaluation of General Counsel and submit recommendations to the Board of Directors as provided by Resolution No. OCSD 12-03. The Committee shall make recommendations to the Board of Directors on labor negotiations and other related activities as may be needed or appropriate. The Committee shall also be authorized to assign new subjects of significant importance to the appropriate Standing Committee for study, evaluation and recommendation. The Steering Committee shall meet on the fourth Wednesday of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of Directors. (b) Administration Committee: There shall be a permanent Administration Committee (Finance & Administrative Services-and Human Resources to advise the Staff and make recommendations on matters related to the financial, budgeting, administrative and personnel policies and programs of the District. The Committee shall review with the Staff the procedures for development, preparation and format of the annual budget and recommend appropriate change, and counsel the Staff during the budget process to assure the proper interpretation and implementation of the Board's policies and that the desired procedures have been followed. ocsD 17-1 se9-7 The responsibility for consideration and adoption of the District budget rests with the Board of Directors. The Committee shall periodically interviewand recommend the selection of outside auditors. The Committee shall review the result of the annual audit of the District's accounts with representatives of the outside audit firm, including any comments received recommending improvements. The Committee shall review management's response to these comments and make appropriate recommendations for implementation. Periodically, the Committee shall recommend employment of an outside firm to audit internal control procedures to safeguard the assets of the District. The Committee shall interview and make recommendations on the employment of investment-banking firms, bond counsel and, if necessary or desired, financial advisors, to be used in connection with the District's financing programs. The Committee shall periodically coordinate recommendations on personnel audits of the District's operations or segments of the operations on an as-needed basis. The Committee shall make recommendations on personnel policies and procedures, insurers and coverage, procurement procedures and such other related activities as may be needed or appropriate. The Chairperson of the Board of Directors shall appoint a Committee Chairperson and a Committee Vice Chairperson for the Administration Committee. The Committee Chairperson and Committee Vice Chairperson shall serve at the pleasure of the Chairperson of the Board of Directors. The Administration Committee shall consist of thirteen members, as follows: (1)The Chairperson of the Board of Directors; (2)The Vice Chairperson of the Board of Directors; (3)The Committee Chair of the Administration Committee; (4)The Committee Vice Chair of the Administration Committee; and (5) Nine additional Board members appointed by the Chairperson of the Board of Directors. Other than the Board Chairperson and the Board Vice Chairperson, no Director who serves on the Operations Committee shall be eligible to serve on the Administration Committee. In the absence of the Board Chairperson, his or her alternate Director may attend meetings of the Administration Committee. OCSD 17-1888-8 The Administration Committee shall meet on the second Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (c) Operations Committee: There shall be a permanent Committee designated the Operations Committee (Engineering, Operations & Maintenance and Environmental Services). With the goal of compliance with all public health and environmental laws and regulations, the Operations Committee shall review and submit appropriate recommendations on the matters pertaining to the operation of the District Treatment Works, including such matters as current and projected service/flow needs, level and quality of treatment, conservation, recycling and reuse activities and air quality issues. The Committee shall also review issues pertaining to the District's NPDES Ocean Outfall Discharge Permit, including annual review of the contractor(s) performing the ocean monitoring and research programs required as a condition of said permit, and related issues regarding protection of the marine waters off metropolitan Orange County's coastline from impacts resulting from the District's operations and discharge of treated wastewater. The Committee shall also review matters pertaining to contractual arrangements by the District to provide sewerage services to areas outside the District's boundaries or approved spheres of influence. The Committee shall review plans for the future needs of the District, explore alternatives and make recommendations to the Board of Directors. The Operations Committee shall also review and submit appropriate recommendations on matters pertaining to capital projects which address operational needs, including the selection of professional consulting services to assist in studying, planning and designing needed District Treatment Works and support facilities, including computerized systems, in accordance with the Board's established policies and procedures for procuring such services; the Committee shall further review construction projects for said facilities in accordance with applicable public works laws and Board policies. Said oversight shall include the contracts for professional services and public works construction projects and addenda or change orders thereto. In carrying out its responsibilities, the Committee shall receive advance notice and regular status reports on the projects from Staff, and monitor, visit and observe the District Treatment Works' operational functions and major capital construction projects. The Chairperson of the Board of Directors shall appoint a Committee Chairperson and a Committee Vice Chairperson of the Operations Committee. The Committee Chairperson and Committee Vice Chairperson shall serve at the pleasure of the Chairperson of the Board of Directors. The Operations Committee shall consist of fourteen members, as follows: OCSD 17-1898-9 (1)The Chairperson of the Board of Directors; (2)The Vice Chairperson of the Board of Directors; (3)The Committee Chair of the Operations Committee; (4)The Committee Vice Chair of the Operations Committee; and (5)Ten (10)additional Board members appointed by the Chairperson of the Board of Directors. Other than the Board Chairperson and the Board Vice Chairperson, no Director who serves on the Administration Committee shall be eligible to serve on the Operations Committee. In the absence of the Board Vice-Chairperson, his or her Alternate Director may attend meetings of the Operations Committee. The Operations Committee shall meet on the first Wednesday of each month at 5:00 p.m., or at the call of its Chairperson. (d) Legislative and Public Affairs Committee: There shall be a permanent Committee designated as the Legislative and Public Affairs Committee, comprised of the Chairperson of the Board, the Vice Chairperson of the Board, and five at-large members selected by the Chairperson of the Board. The Committee shall advise the-Staff and make recommendations on matters related to the legislative and public affairs programs of the District. The Legislative and Public Affairs Committee shall meet on the second Monday of each month at 12:00 p.m. or at the call of the Board Chairperson. (2) Special and Ad Hoc Committees. In addition to the Standing Committees, the Chairperson of the Board of Directors, or-the Chairperson of a Standing Committee; or a majority of the Directors, may appoint from time to time, Special or Ad Hoc Committees to study and report on specific matters. Such Committees shall be temporary in nature, and their assignments shall pertain to a current, specific issue. Upon completion of the assigned task, the Ad Hoc or Special Committee will be dissolved. The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall be appointed by the Chairperson of the appointing authority. Each Special and Ad Hoc Committee shall meet at the call of its Chairperson. (e k Alternate Directorss: If a regular Director cannot attend a meeting of the Operations Committee, the Administration Committee or the full Board of Directors, the Directors alternate may attend in place of his or her regular Director. An alternate Director may not, however, attend a meeting of any other Committee in the absence of OCSD 17-1808-10 his or her regular Director. - If the regular Director and the Alternate Director are both unable to attend the meeting, the regular Director may request that the meeting be teleconferenced. The request may be approved, at the Board Chairperson's discretion, provided that all requirements of the Ralph M. Brown Act (California Government Code Sections 54950 at sea.) are able to be satisfied. MN. Motion to Refer to a Standing Committee. Any Director at a Board meeting may move to have a policy or any other activity affecting the Sanitation District, or any one of the member Agencies, referred to a Standing Committee for study and report. This motion shall be a privileged motion, and when duly seconded, discussion thereof shall be limited to Directors only. Said motion shall receive an affirmative vote of a majority of the Directors for adoption. Section 2: Procedure for Consideration of Demands for Corrective Action. A. Requirement of Written Demand. Prior to any person commencing ajudicial action for injunction or mandamus to declare any action taken by the Board void because of failure to observe Brown Act requirements, such person must first serve upon the Clerk of the Board a written demand describing the alleged violation and demanding corrective action. Such demand must be served upon the Clerk of the Board within thirty (30) days of the complained of action. Failure to serve any such demand within this thirty (30) day period shall result in the loss of any right to challenge any action to have been taken in violation of Sections 54953, 54954.2 or 54956 of the California Government Code. B. Consideration of Corrective Action. Upon receipt of such a demand, consideration of the demand shall immediately be placed on the Agenda for the next meeting of the Board of Directors. If the demand is received less than seventy-two (72) hours prior to the time set for the next meeting, the Board may determine that the notice constitutes the initiation of litigation, and that the need to take action on the threatened litigation arose subsequent to the posting of the Agenda, and may consider it at that meeting pursuant to Section 1(J) above. A description of any item so placed on the Agenda shall include both consideration of the demand, and the possibility of corrective action, by the Board. In considering such demands, the Board shall first determine, by motion, whether corrective action should be taken. If no motion to take corrective action is carried, the Clerk of the Board shall inform the demanding party in writing of the Board's decision not to cure or correct the challenged action. C. Implementing Corrective Action. If a motion to take corrective action passes, the Chairperson may entertain a motion implementing corrective action. Any motion implementing corrective action shall address the concerns raised in the consideration of corrective action. The motion implementing corrective action may include a motion to rescind prior action taken, as appropriate. Passage of a motion to rescind invalidates prior action only as of the time of the passage of the motion, and not from the date of the initial action. A motion implementing corrective action resulting from OCSD 17-1808-11 a written demand is out-of-order if the action complained of(a)was in connection with the sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract, agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a party has, in good faith, detrimentally relied. In any event, the Board shall notify the party making the demand in writing of its decision to take corrective action, and shall describe any corrective action taken. This notice shall be given to the demanding party as soon as possible after the meeting, but in no event more than thirty (30) days after receipt of the demand. Section 3: Resolution No. OCSD 15 2717=08 is hereby repealed. Section 4: This Resolution shall become effective immediately. PASSED AND ADOPTED at a regular meeting of the Board of Directors held May-24December 20, 2017. Gregory C. Sebourn PLS Board Chairman ATTEST: Kelly A. Lore Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel OCSD 17-1808-12 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 17-08-18 was passed and adopted at a regular meeting of said Board on the 24-20th day of May-December 2017, by the following vote, to wit: AYES: Barnes; Bernste n; rnuacott; Delgle z ; Hawkins; h.. es; vim; DnnHn.; Sebo ; Shaw; Chnwye ; F. Cm'th� T. Smith. Sleek Wagner; Wanke; Withers; and Yarc; NOES: Neae ABSTENTIONS: Neae ABSENT: Deat^^-and-T^ajere IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 24th 20th day of MayDecember, 2017. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 17-1808-13 TABLE 1 BOARD PROCEDURES AND ORGANIZATION SUMMARY OF MOTIONS A. PRIVILEGED MOTIONS Kind of Second Vote Motion Required Debatable Amendable Required Purpose Adjourn Yes No No Majority To end the meeting To Take a Yes No No Majority To interrupt a Recess meeting for a short time or to provide an intermission Raise a No No No None To obtain action Question of immediately in an Privilege emergency B. MAIN MOTION AND RELATED SUBSIDIARY MOTIONS Kind of Second Vote Motion Required Debatable Amendable Required Purpose Main Yes Yes Yes Majority To introduce new Motion business Amend Yes Yes Yes Majority To modify or alter a Main motion Motion Substitute Yes Yes Yes Majority To replace the main Motion motion entirely OCSD 17-1808-14 Previous Yes No No Majority To close debate on Question the main or amended motion immediately Continue to Yes Yes Yes Majority To defer action a Certain Time To Table Yes No No Majority To discontinue consideration until brought back by vote of the Board Take a Yes No No Majority To bring before the Motion group a motion from the previously tabled Table Limit or Yes No Yes Majority To limit or extend Extend limits of debate Limits of Debate Refer to a Yes Yes Yes Majority To place business in Committee hands of a Committee Withdraw a No No No None To withdraw a Motion motion before it is voted on Reconsider Yes Yes No Majority To secure a new must be vote on a motion by a previously voted Director upon who voted for the prevailing side on the original motion OCSD 17-1808-15 C. INCIDENTAL RULES NON-RANKING Kind of Second Vote Motion Required Debatable Amendable Required Purpose Request to Yes No No Two- To facilitate business Suspend Thirds ordinarily contrary to the Rules the rules of the organization Override Yes No No Majority To have Board Order of majority rule on the the Chair order Point of No No No None To enforce the rules Order of the organization OCSD 17-1808-16 STEERING COMMITTEE Meeting Date TOBd.Of Dir. z20117 iz/zo1v AGENDA REPORT emNumber Item Number 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: DISTRICT 6 TRUNK SEWER RELIEF, PROJECT NO. 6-17 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $369,930 (10%) to the construction contract with Charles King Co., Inc. for District 6 Trunk Sewer Relief, Project No. 6-17, for a total contingency of$739,860 (20%). BACKGROUND The purpose of this project is to increase the wet weather capacity of the District 6 Trunk, extend the life of the sewer by 30 years, and to provide safe access to the manholes. The District 6 Trunk Sewer was built by the Orange County Sanitation District (Sanitation District) in the early 1950s and serves the cities of Costa Mesa and Newport Beach. The existing 3,700-foot long sewer ranges from 12 to 18 inches in diameter and extends along Pomona Avenue in Costa Mesa, and along Newport Boulevard to Pacific Coast Highway in Newport Beach. Four manhole stretches within this sewer reach require up-sizing to reduce the risk of wet weather sewer spills. The selected technique used is called pipe bursting, which uses a hydraulic bursting hammer that expands the existing sewer pipe and pulls a new pipe behind it. The benefit of pipe bursting is that it minimizes open-cut excavations. The construction for this project is 30% complete. During the first pipe bursting attempt, the bursting hammer stopped 70 feet short of its destination and required rescue via an excavated pit. Within this pit, it was discovered that the existing pipe was surrounded on the top and sides by 2-inch thick redwood boards. These boards were confined by the outside soil and did not allow the bursting hammer to expand the pipe and soil around it, and it could not pass. RELEVANT STANDARDS • Meet or exceed sanitary sewer overflow regulations • Ensure the public's money is wisely spent PROBLEM Change orders and construction delays have resulted in cost impacts to the project. The recent pipe bursting failure is estimated to use at least 50%of the authorized contingency. There are two pipe bursting sections remaining. If further pipe bursting failures occur, the Page 1 of 3 approved construction contract contingency might not be sufficient for construction completion, resulting in further potential delay. PROPOSED SOLUTION The Contractor, the Sanitation District, and the Design Engineer of record are cooperatively working to identify other areas where a pipe bursting failure might occur so future cost impacts can be mitigated. Staff requests an increase in the construction contract contingency of $369,930 (10%) from $369,930 (10%) for a total contingency of $739,860 (20%). The project budget is sufficient for this change and no additional funding is needed. TIMING CONCERNS The contingency increase will allow any required changes to be addressed without causing additional project delays. RAMIFICATIONS OF NOT TAKING ACTION If the construction contract contingency is insufficient to cover the costs for potential unknown conditions, critical path change order work would be delayed further and completion of the project in a timely fashion would not be possible. PRIOR COMMITTEE/BOARD ACTIONS September 2016 -Awarded a Construction Contract to Charles King Co., Inc. for District 6 Trunk Sewer Relief, Project No. 6-17, for a total amount not to exceed $3,699,301 and approve a contingency of$369,930 (10%). ADDITIONAL INFORMATION N/A CEQA The Sanitation District, as lead agency, prepared a Program Environmental Impact Report (PEIR) entitled Collection System Improvement Plan. The Board certified the PEIR on August 22, 2007 and the Sanitation District filed a Notice of Determination on August 23, 2007. The Sanitation District has determined that the project is within the scope of the PEIR. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation DistricPs Purchasing Ordinance. This item has been budgeted (Budget FY2016-17&2017-18, Section 8, Page 32) and the budget is sufficient for the recommended action. Page 2 d 3 Date of Approval Contract Amount Contingency 09/28/2016 $3,699,301 $369,930 (10%) 12/20/2017 $369,930 (10%) $739,860 (20%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.Ocsd.com) with the complete agenda package.: N/A AN:dm:gc Page 3 of 3 STEERING COMMITTEE Meeting Date TOBd.Ot Dir. iz 20117 iz/zo1v AGENDA REPORT IWmNumber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: DEFERRED PAYMENT AGREEMENT REQUEST FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE GENERAL MANAGER'S RECOMMENDATION Deny the request for a 3'd deferred payment agreement for charges and fees owed for sanitary sewer service charges from Aseptic Technology, LLC. BACKGROUND Aseptic Technology, LLC (Aseptic Technology) is the holder of an industrial wastewater discharge permit issued by the Orange County Sanitation District (Sanitation District)that requires payment of sanitary sewer service charges for the cost of conveying, treating, and disposing of wastewater discharged. Based on the terms of the permit, the permittee is required to pay estimated, quarterly sewer service charges that are reconciled annually with actual discharge flows and strength. The permittee currently owes $252,315.72 that comprises the 2016-17 Annual Reconciliation Invoice, the 2016-17 Supplemental Capital Facilities Capacity Charge Invoice, and the 2017-18 First Quarter Invoice. The 2017-18 Second Quarter Invoice in the amount of $112,091.76 will be issued on December 31, 2017 and the 2017-18 Third Quarter Invoice in the amount of$112,091.76 will be issued on March 31, 2018. If all past due amounts remain unpaid, the total monies due through March 31, 2018 will accumulate to $476,499.24. Aseptic Technology was first issued a permit in November 2014. They paid their first two quarterly invoices for March and June of 2015. However, subsequently they were delinquent on their: (1) FY 2014-15 annual reconciliation invoice; (2) FY 2014-15 supplemental capital facilities capacity charge; and (3) FY 2015-16 first and second quarterly invoices. In 2016, The Board of Directors approved a 12-month payment agreement for Aseptic Technology that Aseptic Technology made timely payments against and paid off as of January 2017. However, Aseptic Technology failed to make payments against their current quarterly invoices for services rendered after January 2016, thus necessitating the second payment agreement request in July 2017. The second payment agreement required Aseptic Technology to remit timely payments against new obligations occurring during the term of the agreement. Page 1 d 3 In July 2017, the Board of Directors approved the second payment agreement for six (6) months of which Aseptic Technology currently has one payment remaining. This payment agreement requires that the account balance be paid in full by December 31,2017 to allow their industrial discharge permit to be renewed on January 1, 2018. Although they made their past obligations, in accordance with this payment agreement, they failed to make the payments against their current quarterly invoices for services rendered after January 2016,which was in violation of the agreement. Aseptic Technology has not been current with their Sanitation District obligations since January 2016 when they requested and received a second deferred payment in agreement in July 2017 (for six months). Following the first six months, after they were first issued their permit in November 2014., Aseptic Technology has never been current with their outstanding obligations Aseptic Technology has requested an administrative extension on their industrial discharge permit through March 31, 2018 along with a deferred payment agreement through March 31, 2018 to pay the charges that will accumulate to a total of$476,499.24. The request is to make three payments of $158,833.08 by January 8' , by February 27tn and March 31e'. At that time, the account balance would be paid in full and the permit could be renewed. RELEVANT STANDARDS Resolution No. OCSD 11-04 PROBLEM Aseptic Technology currently owes the Sanitation District $252,315.72 on their account that, if unpaid, will accumulate to $476,499.24 through March 31, 2018. PROPOSED SOLUTION Deny Aseptic Technology's request for a new deferred payment agreement and enforce the existing deferred payment agreement which states that the account balance must be current by December 31, 2017, or their permit will not be renewed. TIMING CONCERNS Aseptic Technology's industrial discharge permit expires December 31, 2017. RAMIFICATIONS OF NOT TAKING ACTION Aseptic Technology's industrial discharge permit expires December and will only be renewed if the account balance is zero. Page 2 af3 PRIOR COMMITTEE/BOARD ACTIONS July 2017- Board of Directors approved 6-month Deferred Payment Agreement with Aseptic Technology for outstanding invoices totaling $451,161.54. January 2016 — Board of Directors approved Deferred Payment Agreement with Aseptic Technology for prior outstanding invoices. ATTACHMENT The following attachments)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • July 2017 Deferred Payment Agreement—Aseptic Technology, LLC • November 28, 2017 Letter received from Aseptic Technology, LLC Page 3 d 3 A DEFERRED PAYMENT AGREEMENT 0R/GjNq� THIS AGREEMENT, is entered into, to be effective July 26, 2017, by and between Orange County Sanitation District ("District"), a county sanitation district duly organized and existing pursuant to Section 4700 at. seq. of the Health & Safety Code of the State of California and Aseptic Technology, LLC ("Permitee"). RECITALS A. District is a wastewater treatment agency which awns and operates wastewater treatment facilities which receive, treat and discharge, through an ocean outfall, wastewater received from dischargers within its jurisdictional boundaries. In the course of its wastewater treatment operations, and pursuant to Ordinance No. OCSD- 48 Wastewater Discharge Regulations ("District's Ordinance"), District issues industrial wastewater discharge permits to certain persons/entities which discharge wastewater into the District's sewerage system. B. As part of the District's wastewater treatment operations, District imposes user fees on permittees, requiring such permittees to pay their share of the District's costs of conveying, treating and disposing of wastewater discharged by such permittees. C. Permittee is the holder of an industrial wastewater discharge permit issued by District and is responsible for paying user fees for the cost of conveying, treating and disposing of wastewater discharged from Permittee's facility located at 24855 Corbit Place, Yorba Linda, California. D. District has issued to Permittee Invoice Nos. 52996, 909924, 910080, 530302, 530620, 53274, 53273, 53272, 530942, 53796 and 53875 in the amount of $451,161.54 for user fees and penalties then due and owing to the District. E. Permitee has failed to pay the presently owing sum of$451,161.54 and has requested additional time to pay this outstanding obligation. F. Pursuant to Resolution 11-04, District is authorized to enter into deferred 1 payment agreements for limited sums and of limited duration, pursuant to approval by the District's Board of Directors. G. The District intends to provide additional time for Permitee to pay to District the amounts presently due on Invoice Nos. 52996, 909924, 910080, 530302, 530620, 53274, 53273, 53272, 530942, 53796 and 53875 in accordance with the requirements of District Resolution 11-04. NOW, THEREFORE, in consideration of the facts recited above and the conditions, covenants and promises set forth below, District and Aseptic Technology LLC agree as follows: AGREEMENT 1. Permittee shall make payments (including principal and interest)to the District, pursuant to the following payment schedule: Admin Installment Due Date Principal Interest Charaes Total Date 1 8/15/2017 $74 259.14 $2 255.81 $25.00 $76 539.95 2" 8/15/2017 $74 830.43 $1 884.52 $25.00 $76 539.95 3 9/15/2017 $75 003.59 $1 511.36 $25.00 $76 539.95 4 10115/2017 $75 378.61 $1136.34 $25.00 $76 539.95 5 11/15/2017 $75 755.50 $759.45 $25.00 $76 539.95 6 12/15/2017 $76,134.28 $380.67 $25.00 $76,539.95 Following approval by the Board of Directors, the first and second installment payments will be due on August 15, 2017. Permittee acknowledges Permitee will be required to submit a total payment of$153,079.90 on or before August 15, 2017. 2. Permittee shall pay to District all other invoices issued by the District during the term of this Agreement in accordance with the provisions of District's Ordinance. 3. If any payment described in Paragraph 1 herein is not received by the District on or before the due date specified, or if any payment described in Paragraph 2 2 herein is not received by District in accordance with the provisions of District's Ordinance, the entire balance then owing shall become immediately due and payable and interest at the rate of ten percent (10%) per annum shall accrue on any such unpaid balance from the date of acceleration until the date that the balance due is fully paid to the District. 4. Permitee acknowledges that the failure to pay current invoices, or failure to pay any installment in accordance with the schedule set forth in Paragraph 1 herein, may be grounds for suspension of any industrial wastewater discharge permit issued to Permitee by District, and shall additionally be deemed a breach of this Agreement, thereby giving rise to all legal remedies available to District. Permitee agrees that by executing this Settlement Agreement, Permitee waives the right to an administrative hearing for non-payment of invoices or any other means to challenge the amount owed, and further agrees that failure to pay District in accordance with the terms of this Agreement will result in immediate permit suspension until such time as the all outstanding amounts owed are current. 5. In consideration of the foregoing, District agrees to refrain from instituting collection or permit suspension or revocation proceedings, which remedies are presently available to the District as a result of Permitee's current failure to pay Invoice Nos. 52996, 909924, 910080, 530302, 530620, 53274, 53273, 53272, 530942, 53796 and 53875. This provision to refrain from instituting such proceedings shall be effective with regard only to Invoice Nos. 52996, 909924, 910080, 530302, 530620, 53274, 53273, 53272, 530942, 53796, and 53875 only for so long as Permitee remains in compliance with the terms of this Agreement. 6. Should any litigation be commenced between the District and Permitee regarding enforcement of this Agreement, or the rights and any duties of the parties in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its 3 attorney fees and costs in the litigation which shall be determined by the court in such litigation or in a separate action brought for that purpose. 7. Nothing in this Agreement shall affect Permitee's obligation to pay current and/or future charges for use of District's sewerage system or Permitee's obligation to comply with all other conditions and requirements of its industrial wastewater discharge permit and the District's Ordinance. 8. Nothing herein shall affect the District's right to enforce all requirements and conditions of the District's Ordinance. 9. This Agreement is made only for the benefit of the parties hereto. It is not intended that any right under this Agreement shall accrue to any third person. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first written above. Orange County Sanitation District BY: Wgorylt. Abourn, PLS Board Chair *Clek Aseptic Technology LLC BY: low Co Board Alee46epne �OSek+..rr C4-l� 4 Aseptic Technology November 28, 2017 Angela Brandt OCSD 10844 Ellis Avenue Fountain Valley, CA 92708 RE: Aseptic Technology, LLC Dear Ms. Brandt: I am writing to you on behalf of Aseptic Technology, LLC in reference to the Deferred Payment Agreement entered into on July 26, 2017. As you know,the Agreement required Aseptic to make six payments of$76,539.95 between August 15,2017 and December 15, 2017. To date,the first five of the payments have been made and the sixth and final payment will be paid in a timely manner within the next two weeks. The purpose of this letter is to request another payment plan to allow Aseptic to catch up on its current invoices which I believe total approximately$252,000.00. My client and I are aware that this request is extraordinary in nature,as this will be the third such request. I have been working with Aseptic Technology since mid-2014 and have assisted in resolving several unfortunate financial situations that have plagued the organization. I have known Mr. Cua for over 20 years and in all that time he has never backed away from an obligation. Unfortunately the past 24 months have proven to be more challenging than anyone could imagine. The silver lining in this situation is that Aseptic Technology has plenty of customers and the business model is sound. Revenue has Increased from $12M in 2016 to$14.5M in 2017 and forecast for 2018 is estimated at$17M. Three of our largest existing customers have entered into multi-year contracts extending to 2020. All of the financial difficulties experienced are a result of a few unexpected equipment breakdowns, and some untimely and meritless legal disputes. While it is hard to imagine at the present time,the future of Aseptic Technology looks bright once the last few challenges are resolved. 24855 Corbit Place . Yorba Linda , CA . 92887 P: (714) 694-0168 . F: (714) 694-0179 In addition to the boiler issue and the January 2017 lawsuit resolution which led to the current payment plan being required,Aseptic has been brought Into two additional lawsuits, both of which are scheduled to commence trial in 2018. In previous matters I have been successful in representing the company at minimal expense. However,the two new actions are outside of my area of practice with one being filed in Federal Court and the other being commenced in Colorado. This has caused the company to incur legal fees and expenses it otherwise could have avoided by my representation of the company. The out of pocket legal expenses for 2017 amount to $599,215.67 to date. [See attached spreadsheet] The most troubling of the two currently pending lawsuits involves one of Aseptic's former major customers White Wave Foods. Since approximately 2014,Aseptic had been manufacturing several almond milk based products for WWF and had entered into a multi-year contract to produce their products through 2017. In June 2016 WWF offered Aseptic a contract extension along with promises of additional business beyond Aseptic's current capacity. Relying upon the additional volume of products to be produced for WWF,Aseptic ordered additional equipment(totaling approximately$15M) and began construction of a second manufacturing facility located in Anaheim, California. In October 2016,WWF decided their product was not profitable and abruptly cancelled all of its orders and refused to extend the contract. These actions by WWF not only caused loss of Immediate business revenue, but also caused a significant delay in completion of the Anaheim facility that was estimated to be completed by April 2017. Since May of this year, Aseptic has incurred direct out of pocket expenses of$620,076.68 relating to delay in completing the Anaheim facility, plus the loss of business revenue that was anticipated from the Anaheim production facility. While Aseptic may have been able to absorb one of the significant events and still generate sufficient cash flow to meet Its financial obligations,the combination of the above events has made it Impossible to keep current on all of its payable obligations. Notwithstanding these setbacks,Aseptic is still optimistic it will be able to fulfill its obligations and meet the terms of a payment plan as it has previously done. Aseptic and Mr. Cua have taken significant steps to cut expenses beginning 2018 including divestiture of all interest in the Anaheim facility thereby concentrating all efforts in keeping the Yorba Linda plant profitable. Aseptic has absorbed the loss of WWF business, as well as the aforementioned legal expenses and those associated with the Anaheim facility. In addition, Mr. Cua has personally taken out mortgages on his home to help with cash flow evidencing his personal commitment to the Company's recovery efforts. Mr. Cua and I are willing to meet with representatives of the District and provide any additional documentation that may be requested to consider our request. The past year has been a struggle and it is not our desire to utilize the District as our personal bank. The sole intention of our request for another payment plan is to keep the company operational while we work through the remaining obstacles. While we were able to meet the terms of the payment plan for past due amounts, we acknowledge we fell short with respect to current charges. We need our discharge 24855 Corbit Place . Yorba Linda . CA . 92887 P: (714) 694-0168 . F: (714) 694-0179 permit to remain in effect next year and have done everything we could think of to keep the business operating. It is our hope that the District can make an extraordinary exception to its policy and grant us this additional request. We area small company, but to the 60 employees that are employed by Aseptic and their families, a shutdown of the business would be a life-changing event. I sincerely hope those in the decision making role can see their way clear to assisting our company through this predicament. The management of Aseptic is committed to seeing the company continue and succeed and will cooperate in any way possible. Sincere , o J. Dan o General Counsel 24855 Corbit Place Yorba Linda . CA . 92887 P: (714) 694-0168 . F: (714) 694-0179 2:37 PN Aseptic Technology LLC 11WMT Account QulckReport Acu1rN Baste January 1 through November 27.2017 TyPe Dale Num Name YkN1p At11eHg Legal lgrn..a Check O110W2017 USA Robert J Danko 3.076.92 Check 0111=017 11017D3 Craig's Courthouse Cale Wanu Case 20.63 Check 01/11/2017 11117M OC Parking Civic Center Wanu 20.00 Check 011192017 11917W Craig's Courthouse Cale 32.36 Check 01=017 2803 Robert J Danko 3.076.92 Check 01202017 12017M OC Parking Civic Center 20.00 Check 0124/2017 12417N Craig's Courthouse Cale 29.11 Check 01252017 1251702 OC Parking Civic Center 16.50 Check 012b/2017 12517N Central Justice Center 394.63 Check 01252017 12517M Craig's Courthouse Cale 10.59 Check 0121I 1251707 Craig's Courthouse Cab 11.28 Check 01QBQ017 12617N OC Parking CNic Center 20.00 Check 01282017 12617M Central Justice Center 269.63 Check 01262017 1261709 Craig's CouMOuw Cale 25.67 Check 01272017 12717N OC Parking CNic Center 20.00 Check 0151a017 1311701 Central Justice Canter 222.51) Check 01I312017 13117D2 Craig's CouMwse Cale 22.14 Check 02/012017 M117N OC Parking Civic Center 20.00 Check O2 017 W21702 Central Justice Caner 251189 Check 02N32017 2845 Robsrt J Danko 3,076.92 Check 02Po 017 2846 Robert J Danko 189.42 Check 02J0312017 W317W OC Parking CNic Center 12W Check 021072017 2859 Robert J Danko 1,15 00 Check 02W74!017 Xlr1701 Central Justice Center 2W.89 Check O2J0812017 208/701 OC Parking Civic Center 20.00 Check 02/OBQ017 W817M Central Justice Center 501.78 Check 02N92017 M1703 OC Parking Civic Center 10.50 Check 02/OB2017 2091704 Central Justice Center 626.78 Check DVIOQO17 M91708 OC Parking CNic Center im Check OV1712017 2892 Robert J Danko 3,076.92 Check O2 QO17 2897 Robert J Danko 1,154.00 Check 03/0212017 2816 %%can J Danko 3,076.92 Check 03/02Q017 2917 Robert J Danko 1,154.00 Check OW1612017 2974 Robert J Danko 4,230.77 Check 03282017 3021 Lew Cllces of Kateb A.Honey,P.C. Legal Expense 5,0DO.00 Check 03/W12017 3D28 RObart J Danko 4,230.77 Check 03/3012017 W29 Robert J Danko 239.65 Check mmt2o/7 W72 Robert J Danko 4,230.77 Check 042812017 3111 Patricia S BNlac Law Fkm,LLC 5,000.00 Check 04282017 3115 Robert J Danko 4,230.77 Gerwral Journal 05/012017 804 Wanu Water,Inc. Wanu Legal Caw 400,000.00 Check 05 62017 3159 Patricia S Be lac Law Flom,LLC 5,000.00 Check OS/122017 3177 Robert J Danko 4,230.77 Check 05282017 3226 Robert J Danko 2,3D7.69 Check 06/09/2017 3284 Robert J Danko 2,3D7.69 Check MIW017 mm Robert R.ReaMt S Co. 5.284.50 Cheek OB/162017 3288 Law Offices of Kelab A.Honey,P.C. 7.500.00 Check 08120/2017 M98 Patricia S Bali Law Finn,LLC 5,OW.W Check 0823Q017 3314 Robert J Danko 2,307.69 Check 07M7Q017 11W0 Robert J Danko 2,307.69 Check 07/072017 WIN Patriote S BNlac Law Finn,LLC 5,000.00 Check 07/12Q017 7121701 OC Parking CNic Center 4118 8.01) Check 07212017 3392 Robert J Danko 2.307.69 Check 07Q12017 3387 Law Offices of"lab A.Honey,P.C. 7,SW.W Check 08/01Q017 M20 Patricia S BNlac Law Firm,LLC 5,OW.W Check OSAMP2017 3428 Robert J Danko 2,307.69 Check OB/16QO17 M72 JAMS,Inc 2,10000 Check OWIW017 M81 Roben J Danko 2,307.69 Check 09/012017 3618 Robert J Danko 2,307.69 Check M112017 3522 Patricia S Bellac Law Firm,LLC 8,500.00 Check W15/2017 3564 Robert J Danko 2,307.69 Check OW15QO17 3W6 JAMS,Inc Invatce DOD4118636-200 300.00 Check N/15Q017 3567 Patrick,S Seltec Lew Firm,LLC 14.765.00 Check O9/18Q017 9181701 Lwslo 8 Associates LLD-COLTAF W W F 10.000.00 Check 09Q1/2017 3683 Paul Hachigian 1.401.00 Page t 2:37 M Aseptic Technology LLC 1127n7 Account QulckReport Aee11W 9rh January 1 through November 27,2017 TT9a Deb Num Name Nano Amount Check 09WI2047 3593 Ruben J Danko 2,307.59 Check 1&1312017 3555 Robed J Danko 2,207.59 Check 10/1512017 3551 Lew Omcee of Raab A.Honey,PC 13.276.11 Check 102712017 3710 Robes J Danko 2.307.69 Check 11/102017 3751 Robed J Danko 2,307.59 &II 11/1&A 17 1224217 Robed R.ReEwih A Co. 13,000.00 Check 11222017 11221702 Laszlo A Aeeodetes LLC-COLTAF W WF 10,000.00 Check 11242017 3792 Robes J Danko 2,307.69 Total Legal Expenses 599.215.67 TOTAL NUILU pgp2 2:01 PM Aseptic Technology LLC 11mR0v Account QuickReport M.1 eleb All Transactions TYq D. 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Chid IN16201] 3888 Cralenin 811MINDON, Papnenl 61,415M Chid VW% 011 37M 0.L.,Fu6YC UMNM IM10M18Ws tA1553 Chid 1IM72017 Pb Oe ..Lenten Fnm®IServba,lnc. 25JJM Chid 110)R01) 11O Dwred M AnmlEmaNi Epupmen Pm CN 8188786 74 Chid 11074017 11011)Ot OxedG C T1 PexanBeM Pm CNC Pmw&Me 1,58T55 Chid 11NBRUIT 137UIM cu.PetlNC LammunkNlone T1 2A76AB CMch 1111QR01] 11201]W Luslem LeekeM WY AILmh Rehey i]6A8 TOM Laen gNFNWe-N 6204I855 TOTN. 620.071,60 Ppe 101 •T WOODRUFF,.spRADLIN&SMART 555 ANTON BOULEVARD, BUTTE 1200 C.sIA MNSA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: December 13,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on December 20, 2017 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a parry. The title of the case is Kiean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By Bradle . Hogin, Qeneral Counsel 1284867.1 •T WOODRUFF,.spRADLIN65MART 555 ANTON BOULEVARD, BUTTE 1200 C09TA MAsA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: December 13,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on December 20, 2017 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a parry. The title of the case is Kiean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-01498. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By Bradle . Hogin, Qeneral Counsel 1284865.1 •T WOODRUFF,.spRADLIN65MART 555 ANTON BOULEVARD, BUTTE 1200 C09TA MAsA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: December 13,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on December 20, 2017 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a parry. The title of the case is Wesley Bauer v. Orange County Sanitation District, Orange County Superior Court, Central Justice Center, Court Case No. 30-2017-00956252. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By &-�' e& Bradley R.Hogin, general Counsel 1284870.1 •T WOODRUFF,.spRADLIN&SMART 555 ANTON BOULEVARD, BUTTE 1200 C09TA MAsA, CA 92626-7670 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: December 13,2017 RE: Closed Session Items The Steering Committee desires to hold a closed session on December 20, 2017 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a parry. The title of the case is APP Winddown, LLC et al. v. Orange County Sanitation District, United States Bankruptcy Court District of Delaware, Case No. 16-12551, Adversary No. 17- 51609. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By /1 4- Bradlo R. Hogin, eneral Counsel )zs48e .) WOODRUFF JN SPRADI &SMART ♦ A P . . . . , . . 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Steering Committee FROM: Bradley R. Hogin, Esq. General Counsel DATE: December 13,2017 RE: Closed Session Items The Steering Committee will hold a closed session on December 20,2017 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: K&A Investments LP,APN Nos. 156-154-08 & 156-163-17;Valley Business Park,APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC,APN No.156-165- 04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai,Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; Fountain Valley Star LLC,APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin- Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03. The District's negotiators are Jim Herberg, Bob Ghirelli, Lorenzo Tyner, Rob Thompson, Kathy Millea and Jeff Mohr, Tom Grant, Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respectfully submitted, By 4J BradleY R. Hogin, Vieneral Counsel 1284881.1 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARS California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA US Environmental Protection Agency FOG Fats, Oils, and Grease gpd gallons per day GWRS Groundwater Replenishment System ICS Incident Command System IERP Integrated Emergency Response Plan LOS Level Of Service MGD Million Gallons Per Day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O & M Operations & Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant/Construction Services Agreement PDSA Professional Design Services Agreement POTW Publicly Owned Treatment Works ppm parts per million PSA Professional Services Agreement RFP Request For Proposal RWQCB Regional Water Quality Control Board Glossary of Terms and Abbreviations SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Interceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control And Data Acquisition SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SRF Clean Water State Revolving Fund SSMP Sewer System Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation W ERF Water Environment & Reuse Foundation WIFIA Water Infrastructure Finance and Innovation Act WIIN Water Infrastructure Improvements for the Nation Act W RDA Water Resources Development Act Activated sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. Benthos —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. Biochemical Oxygen Demand (BOD) — The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biogas—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. Biosolids—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Glossary of Terms and Abbreviations Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere, used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system— In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DIT) — The dilution at which the majority of people detect the odor becomes the D/T for that air sample. Greenhouse Gases (GHG) — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment System (GWRS) — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. Levels Of Service (LOS) — Goals to support environmental and public expectations for performance. N-Nitrosodimethylamine (NDMA) — A N-nitrosamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume — A visible or measurable concentration of discharge from a stationary source or fixed facility. Glossary of Terms and Abbreviations Publicly Owned Treatment Works (POTW) —A municipal wastewater treatment plant. Santa Ana River Interceptor(SARI) Line —A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer—Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total Suspended Solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed—A land area from which water drains to a particular water body. The Orange County Sanitation District's service area is in the Santa Ana River Watershed.