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HomeMy WebLinkAbout02-25-2015 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, February 25, 2015 Regular Meeting of the 6:00 P.M. Board of Directors Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 xE MP AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Mariellen Yarc, City of Cypress) DECLARATION OF QUORUM: ROLL CALL: 1. Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/AOencv Active Director Alternate Director Buena Park Fred Smith Steve Berry Fullerton Greg Sebourn Doug Chaffee OC Board of Supervisors Lisa Bartlett Michelle Steel PUBLIC COMMENTS: If you wish to speak, please complete a Speakers Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: Employee Service Awards REPORTS: The 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: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. Approve minutes for the Regular Board Meeting held on January 28, 2015. OMS115 OCSD Board of Directors Agenda Page 1 of 5 OPERATIONS COMMITTEE: 3. Approve minutes of the February 4, 2015 meeting of the Operations Committee. 4. A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the Ocean Outfall System, Project No. J-117, for an amount not to exceed $6,778,015; and B. Approve a contingency of$677,801 (10%). ADMINISTRATION COMMITTEE: 5. Approve minutes of the February 11, 2015 meeting of the Administration Committee. 6. Receive and file Orange County Sanitation District Second Quarter Financial Report for the period ended December 31, 2014. 7. Approve the FY 2015-16 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2015-16 budget update. STEERING COMMITTEE: 8. Approve minutes for the Steering Committee Meeting held on January 28, 2015. 9. Approve and authorize the execution of the compensation agreement with the City of Garden Grove and other taxing entities within the meaning of Health and Safety Code Section 34180(f), as required by the California Department of Finance. 10. A. Adopt Resolution No. OCSD 15-04 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association (OCEA), for Fiscal Years 2014/2015 & 2015/2016." B. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) OCEA bargaining units. 02/2"5 OCSD Board of Directors Agenda Page 2 of 5 11. Adopt Resolution No. OCSD 15-05, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving Salary and Benefit Adjustments for Unrepresented Non-exempt Confidential Employees for Fiscal Years 2014/2015 & 2015/2016." 12. Adopt Resolution No. OCSD 15-06, entitled, A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation and Repealing Resolution No. OCSD 14-04. LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE: 13. Receive and file the minutes of the February 9, 2015 meeting of the Legislative and Public Affairs Special Committee. NON-CONSENT: 14. A. Consider, receive, and file the Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the MacArthur Pump Station Rehabilitation, Project No. 7-63, prepared by JACOBS; and B. Adopt Resolution No. OCSD 15-07 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Mitigated Negative Declaration for the MacArthur Pump Station Rehabilitation Project No. 7-63; Adopting a Mitigation Monitoring and Reporting Program; an approving the MacArthur Pump Station Rehabilitation Project No. 7-63." AB 1234 REPORTS: INFORMATION ITEMS: None. 02/25/15 OCSD Board of Directors Agenda Page 3 of 5 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) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Steve Filarsky, James Herberg, Robert Ghirelli, and Richard Spencer. Employee Organizations: 1 International Union of Operating Engineers, Local 501 (2) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Name of Case: City of Los Angeles, et al. v. County of Kem, Kern County Superior Court, Case No. S-1 500-CV-2841 00-KCT. (3) CONFERENCE WITH LEGAL COUNSEL RE ANTICPATED LITIGATION (Government Code Section 54956.9(d)(4)) Initiation of Litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9 Number of Potential Cases: 1 Recovery of sales tax paid to the State Board of Equalization on the purchase of chemicals used to treat wastewater. Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. OM5115 OCSD Board of Directors Agenda Page 4 of 5 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Adjourn the Board meeting until the next Regular Board Meeting on March 25, 2015, at 6:00 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 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, Calrfomia, 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. Kelly A. Lore Acting Clerk of the Board (714)593-7433 klore(o3ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbem(rpomd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelli[dlocsd.cem Director of Engineering Rob Thompson (714)593-7310 rthomoson0ocsd.cem Director of Facility Support Services Nick Arhontes (714)593-7210 narhontesaocsd.cem Director of Finance and Lorenzo Tyner (714)593-7550 Itvner(Wocsd.com Administrative Services Director of Operations&Maintenance Ed Tortes 714 593-7080 etorres ocsd.com g2125A5 OCSD Board of Directors Page 5 of 5 ITEM NO. 2 Orange County Sanitation District MINUTES BOARD MEETING January 28, 2015 O NS ANITgr� 9 U N ? ,y t O ti l�A,N THE NV�� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0112812015 Minutes of Board Meeting Page 1 of 9 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on January 28, 2015, at 6:00 p.m., in the Administration Building. Director Fred Smith delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Tom Beamish, Chair Rose Espinoza X John Nielsen, Vice-Chair Allan Bernstein X David Benavides Sal Tinajero X Steven Choi Lynn Schott X Keith Curry Scott Peotter X Ellery Deaton Sandra Massa-Lavitt X Tyler Diep Joy Neugebauer X James M. Ferryman Bob Ooten X Steven Jones Kris Beard X Jim Katapodis Erik Peterson X Robert Kiley Michael Beverage X Peter Kim Michele Steggell X Lucille Kring Jordan Brandman X Greg Mills Robert Collacott X Richard Murphy Shelley Hasselbrink X Steve Nagel Michael Vo VACANT— OC Board of Supervisors A Shawn Nelson X Glenn Parker Cecilia Hupp X Gregory Sebourn Jan Flory X David Shawver Carol Warren X Fred Smith Steve Berry Teresa Smith X Mark Murphy X Chad Wanke Constance Underhill X John Withers Douglas Reinhart Mariellen Yarc X Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Director of Engineering; Jeff Reed, Director of Human Resources; Lorenzo Tyner, Director of Finance &Administrative Services; Maria Ayala, Clerk of the Board; Eddie Baker; Jennifer Cabral; Ron Coss; Mark Esquer; Norbert Gaia; Al Garcia; Stephanie Good; Kelly Lore; Mark Mutz; Andrew Nau; Michael Puccio; and Rich Spencer; Paula Zeller. OTHERS PRESENT: Brad Hogin (General Counsel); Steve Filarsky (Consultant); Sandra Massa-Lavitt (Alternate Director, Seal Beach); Robert Ooten (Alternate Director, CMSD); and Jim Ruth (Consultant) 01/29/2015 Minutes of Board Meeting Page 2 of 9 PUBLIC COMMENTS: Mark Mutz and Eddie Baker (OCSD employees) each spoke on the many contributions their labor group (bargaining unit Local 501) provides to the District, and the importance of a new fair labor agreement. SPECIAL PRESENTATIONS: General Manager, Jim Herberg, introduced Jeff Reed, Director of Human Resources and recognized him for his retirement after his 27 years of service to the District. Mr. Reed said a few words, thanking the OCSD Board and staff, and speaking to the importance of the District's mission and future. REPORTS: Chair Beamish reported on the recent Board Orientation. He took a quick survey of those who would be interested in attending a potential second session. He announced that additional information to come on a second session. He also announced that the Groundwater Replenishment System (GWRS) Steering Committee Chair position rotates from year to year, and this year he will be Chairing this committee. Mr. Herberg announced that Clerk of the Board, Maria Ayala would also be leaving the District for other employment. Mr. Herberg thanked Ms. Ayala for her service to the District. Ms. Ayala thanked the District and the Board. General Manager, Jim Herberg, gave a brief report from his Monthly Update, which included: Update on the General Manager's Workplan; internal reorganization of facilities engineering division; HR partnership with CMSD; etc. 1. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Aaencv Active Director Alternate Director Anaheim Lucille Kring Jordan Brandman Costa Mesa Sanitary District James Ferryman Robert Ooten Fountain Valley Steve Nagel Michael Vo Garden Grove Steve Jones Kris Beard Irvine Steven Choi Lynn Schott Irvine Ranch Water District John Withers Douglas Reinhart Newport Beach Keith Curry Scott Peotter Seal Beach Ellery Deaton Sandra Massa-Lavitt Stanton David Shawver Carol Warren Yorba Linda Water District Robert R. Kiley Michael J. Beverage Anaheim Lucille Kring Jordan Brandman 01/29/2015 Minutes of Board Meeting Page 3 of 9 CONSENT CALENDAR: 2. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes for the Regular Board Meeting held on December 17, 2014. AYES: Beamish; Benavides; Choi; Curry; Diep; Ferryman; Jones; Kim; Kring; Mills; R. Murphy; Nagel; Nielsen; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: Berry (Alternate); Deaton; Katapodis; Kiley; M. Murphy (Alternate); and Parker ABSENT: Nelson (Alternate) 3. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes for the Special Board Meeting held on January 14, 2015. AYES: Beamish; Benavides; Choi; Curry; Diep; Ferryman; Jones; Katapodis; Kim; Kring; Mills; R. Murphy; Nagel; Nielsen; Sebourn; Shawver, F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: Berry (Alternate); Deaton; Kiley; M. Murphy (Alternate); and Parker ABSENT: Nelson (Alternate) 4. MOVED, SECONDED, AND DULY CARRIED TO: Approve Amendment No. 1 to the Professional Consultant Services Agreement with Brown & Caldwell to provide construction support services for Newport Force Main Rehabilitation, Project No. 5-60, for $251,610 increasing the total amount not to exceed $2,483,535. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker, Sebourn; Shawver, F. Smith; Wanks; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) 01/28/2015 Minutes of Board Meeting Page 4 of 9 5. MOVED, SECONDED, AND DULY CARRIED TO: A. Approve an increase in the budget for Final Effluent Sampler and Building Area Upgrades, Project No. J-110, by $1,203,000 for a total project budget of$15,973,000; B. Approve a decrease in the budget for Site and Security Improvements at Plant No. 2, Project No. P2-96, by $1,203,000 for a total project budget of $252,000; C. Receive and file bid tabulation and recommendation; D. Award a construction contract to Shimmick Construction for Final Effluent Sampler and Building Area Upgrades, Project No. J-110, and Site and Security Improvements at Plant No. 2, Project No. P2-96, for a total amount not to exceed $9,716,000; and E. Approve a contingency of $485,800 (5%) for the combined projects Final Effluent Sampler and Building Area Upgrades, Project No. J-110, and Site and Security Improvements at Plant No. 2, Project No. P2-96. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) STEERING COMMITTEE: 6. MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes for the Steering Committee Meeting held on December 17, 2014. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) 01/28/2015 Minutes of Board Meeting Page 5 of 9 7. MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-01, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Fixing and Establishing Rules of procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 10-06." AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) 8. MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District 2015 Legislative Plan. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver, F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE: 9. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the minutes of the January 12, 2015 meeting of the Legislative and Public Affairs Special Committee. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) 01/29/2015 Minutes of Board Meeting Page 6 of 9 GWRS STEERING COMMITTEE: 10. MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the minutes of the October 13, 2014 meeting of the GWRS Steering Committee. AYES: Beamish; Benavides; Berry (Alternate); Choi; Curry; Deaton; Diep; Ferryman; Jones; Katapodis; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Parker; Sebourn; Shawver; F. Smith; Wanks; and Withers NOES: None ABSTENTIONS: None ABSENT: Nelson (Alternate) Directors Curry, Diep, and Jones departing the meeting at about 6:30 p.m. NON-CONSENT: Jim Ruth, District Consultant on Labor Negotiations, introduced Item No. 11. Mr. Ruth reported on the negotiations process and timeline, and coming to the agreement with the labor unit on the proposed MOU tonight. 11. MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-02, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2013/2014, 2014/2015 & 2015/2016." Clerk of the Board conducted a roll call vote as follows: AYES: Beamish; Benavides; Choi; Deaton; Ferryman; Kring; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Sebourn; Shawver; F. Smith; Wanks; and Withers NOES: Kim and Mills ABSTENTIONS: Berry (Alternate); Katapodis; Kiley; and Parker ABSENT: Curry; Diep; Jones; and Nelson (Alternate) General Manager, Jim Herberg, introduced Item No. 12. Mr. Herberg explained the status of the following unrepresented employees, and the process for providing these employees with the same proposal (terms) as to those employees in Agenda Item No. 11. 01/29/2015 Minutes of Board Meeting Page 7 of 9 12. MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-03, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving Salary and Benefit Adjustments for Unrepresented Exempt Confidential Employees for Fiscal Years 2013/2014, 2014/2015 & 2015/2016." Clerk of the Board conducted a roll call vote as follows: AYES: Beamish; Benavides; Choi; Deaton; Ferryman; Kring; M. Murphy (Alternate); R. Murphy; Nagel; Nielsen; Sebourn; Shawver; F. Smith; Wanke; and Withers NOES: Kim and Mills ABSTENTIONS: Berry (Alternate); Katapodis; Kiley; and Parker ABSENT: Curry; Diep; Jones; and Nelson (Alternate) AB1234 REPORTS: Vice-Chair Nielsen reported on having attended the recent CASA Conference in Palm Springs. He briefly reported on the various sessions regarding renewable energy and resources. Director Ferryman reported on the following from the respective committees he is a member of: • SARFPA, the potential budget amount SARFPA is scheduled to receive; and, taking a tour in the near future of the Southern Oaks Damn • OCCOG, the Committee selected Bert Hack as the new Chairman. The following were also elected: Barbara Kogerman to District 13; Steve Nagel to District 15; and Marty Simonoff to District 32. • Borders Committee, attended an informational session recently (as there was not a quorum) • GWRS, attended the meeting recently and congratulated Chair Beamish on his new appointment as GWRS Chair. INFORMATION ITEMS: None. CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(2); 54956.9(d)(4) and 54957.6 The Board convened in closed session at 6:49 p.m. to discuss three 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. 01/2a/2015 Minutes of Board Meeting Page 8 of 9 RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 7:09 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Beamish announced the recent appointments of Director Greg Seboum (Fullerton) as Operations Committee Chair and Director Dave Shawver (Stanton) as Operations Committee Vice-Chair. Director Shawver was also appointed as a Member- at-Large to the Steering Committee. ADJOURNMENT: The Chair adjourned the meeting at 7:10 p.m. until the Regular Board Meeting on February 25, 2015 at 6:00 p.m. Maria E. Ayala Clerk of the Board 01/29/2015 Minutes of Board Meeting Page 9 of 9 ITEM NO. 3 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facilities Support Services Orange County Sanitation District A regular meeting of the Operations Committee of the Orange County Sanitation District was held on February 4, 2015, at 5:04 p.m. at the District's Administrative Office. Committee Chair Sebourn called the meeting to order and led the Flag Salute. A quorum was declared present, as follows: Operations Directors Present: Staff Present: Greg Sebourn, Chair Jim Herberg, General Manager David Shawver, Vice-Chair Rob Thompson, Director of Engineering Ellery Deaton Nick Arhontes, Director of Facilities Support Robert Kiley Services Lucille Kring Jeff Reed, Director of Human Resources Richard Murphy Lorenzo Tyner, Director of Finance & Steve Nagel Administrative Services Fred Smith Maria Ayala, Clerk of the Board Chad Wanke Cindi Ambrose Mariellen Yarc Dean Fisher John Nielsen, Board Vice-Chair Norbert Gala Al Garcia Operations Directors Absent: Rebecca Long Steve Jones Kathy Millea Lisa Bartlett Victoria Pilko Tom Beamish, Board Chair Mike Puccio Others Present: Brad Hogin, General Counsel Bob Ooten (Alternate Director) PUBLIC COMMENTS: No public comments. REPORT OF COMMITTEE CHAIR: Committee Chair Sebourn did not provide a report. REPORT OF GENERAL MANAGER General Manager, Jim Herberg, announced that staff would be sending a Poll to the Board on new tentative dates for a second Board Orientation. The new tentative dates are: March 4, 11, and 12. 02/04/2015 Operations Committee Minutes Page 1 &4 Mr. Herberg also announced that plans for Directors to attend a tour on the Nerissa (OCSD's ocean monitoring vessel) are being worked out. More information will be coming soon on potential date(s)for this event. CONSENT CALENDAR: Clerk of the Board announced that agenda item No. 3 will be PULLED. 1. MOVED, SECONDED, and DULY CARRIED TO: Approve Minutes of December 3, 2014, Operations Committee meeting. AYES: Kiley, Murphy, Nagel, Nielsen, Sebourn, Shawver, Smith, F., and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Beamish, Deaton, Jones, Kring, and Wanke 2. MOVED, SECONDED, and DULY CARRIED TO: A. Award a purchase order to Superior Electric Motor Services for the replacement of ten (10) Toshiba HVK 12Kv circuit breakers, Specification No. E-2014-64113D, for the Plant No. 1 Central Generation Facility for a total amount not to exceed $176,000 and; B. Approve a contingency of$8,800 (5%) AYES: Kiley, Murphy, Nagel, Nielsen, Sebourn, Shawver, Smith, F., and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Beamish, Deaton, Jones, Kring, and Wanke Item No. 3 PULLED from the agenda. 3. o,...,.m... ARd to the RGAI n Of n:.,.,t9Fg a,.: X Approve a thFee year real property lease, and subterranean license PeFi...I.. with onnlAn Quality PaGkagiAg ri.... tG nu..... PA9141107Ati R Of A Highway an Wee f8F a tetal cost of $1,260 peF Finenth, On a form approved 02/04/2015 Operations Committee Minutes Page 2 of 4 by GeneFal Counsel; and NON-CONSENT: Michael Puccio, Engineering Manager, provided a brief PowerPoint presentation with information on the scope of the project, and the design services needed. Director Kring arrived at the meeting at 5:09 p.m. 4. MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the Ocean Outfall System, Project No. J-117, for an amount not to exceed $6,778,015; and B. Approve a contingency of$677,801 (10%). AYES: Kiley, Kring, Murphy, Nagel, Nielsen, Seboum, Shawver, Smith, F., and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Beamish, Deaton, Jones, and Wanke INFORMATION ITEMS: 5. Quarterly Odor Complaint Report Director of Operations and Maintenance, Ed Torres provided a brief summary of the odor complaints. During the 2n' quarter, there was only one complaint at Plant No. , six complaints at Plant No. 2 and eleven complaints were attributed to the collections system. A table providing complaint history was attached to the agenda report. Director Wanke arrived at the meeting at 5:19 p.m. 6. CIP Overview Director of Engineering, Rob Thompson, gave an information PowerPoint presentation on the Capital Improvement Program. 02/04/2015 Operations committee Minutes Page 3 of 4 Vice-Chair Nielsen departed the meeting at 5:45 p.m. Director Deaton arrived at the meeting at 5:50 p.m. DEPARTMENT HEAD REPORT: Director of Engineering Rob Thompson provided an update to the committee on Project 5-60 concerning the work being completed on Pacific Coast Highway; stating there have been a few setbacks with the contractor but staff is constantly working with the contractor to solve the issues. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Sebourn introduced himself as the new Operations Committee Chair and stated that there were several new members to this committee; he asked everyone to introduce themselves. ADJOURNMENT At 6:03 p.m., Committee Chair Sebourn declared the meeting adjourned to the next scheduled meeting of Wednesday, March 4, 2015 at 5:00 p.m. Submitted by, Maria E. Ayala Clerk of the Board 02/04/2015 Operations Committee Minutes Page 4 of 4 OPERATIONS COMMITTEE Meeting Date TOBd.ofDlr. 02/04/15 02/2s/15 AGENDA REPORT Item Number Item Number 4 4 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: OCEAN OUTFALL SYSTEM, PROJECT NO. J-117 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the Ocean Outfall System, Project No. J-117, for an amount not to exceed $6,778,015; and B. Approve a contingency of$677,801 (10%). SUMMARY The Orange County Sanitation District (Sanitation District) has two effluent pump stations located at Plant No. 2 to pump the treated effluent out to sea: Ocean Outfall Booster Station (GOBS) and Effluent Pump Station Annex (EPSA). Under normal conditions, the long outfall is used to pump the effluent five miles out to sea. Under emergency conditions, the one-mile short outfall is used. The COBS constructed in 1988, is the older and larger of the two stations and has a capacity of 600 MGD. The EPSA completed in 2007, has a capacity of 360 MGD. Declining plant influent flow from water conservation and reduction in effluent flows due to the Sanitation District's agreement to provide secondary treated water to the Orange County Water District (OCWD) for the Groundwater Replenishment System (GWRS), have reduced outfall flows lower than previously projected. The existing COBS and EPSA pumps are frequently operating below their minimum design capacities. This causes inefficient pumping and has detrimental effects on the pumps and piping, creating higher maintenance costs and shorter equipment life. Additionally, OCWD is projecting the need for even more secondary treated water with their final expansion. This will result in lower dry weather effluent flows which would potentially be only non-reclaimable flows including OCWD brine and centrate from the future Plant Nos. 1 and 2 centrifuges. Several studies have been conducted by consultants to evaluate the existing equipment and condition at OOBS. The conclusions were that the mechanical and electrical equipment and systems are nearing the end of their useful lives. Page 1 of 4 The Sanitation District advertised a Request for Proposal on September 23, 2014, and two proposals were received on November 25, 2014. Based on the overall qualifications and expertise, staff recommends awarding a Professional Design Services Agreement to Brown & Caldwell. The evaluation and selection process is based on procedures pursuant to the California Government Code requiring the Sanitation District to select "the best qualified firm" for architectural and engineering services and to negotiate a "fair and reasonable" fee with that firm. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION General This project will assess and rehabilitate deteriorating and/or obsolete electrical, mechanical, structural, instrumentation, control systems, break room, and restrooms at OOBS; assess and redesign the EPSA motor cooling system; modify the EPSA Standby Power Facility switchgear controls for interface with the new OOBS 12.47-kV switchgear; perform hydraulic analyses for flow scenarios for gravity and outfall pumping, and determine the size of a new low Flow ouffall pump station; construct a new low flow outfall pump station to more efficiently pump the current and future low flow conditions; develop new operating philosophies for the outfall pump stations and outfall system; rehabilitate interplant pipelines (84 inch and 120 inch), junction boxes, and overflow structures; install a new fiber optic cable between Plant No. 1 Central Generation Facilities and Plant No. 2 COBS; and revising the conduits within the plants to accommodate the routing revisions. The Scope of Work also includes replacement of portions of the pumping systems and other major pieces of equipment that are at the end of their useful lives, becoming obsolete and difficult to service. Request for Proposal: A Request for Proposal which describes the Consultant's Scope of Work required for this project was advertised on September 23, 2014. As a result, proposals were received from Black & Veatch and Brown & Caldwell on November 25, 2014. A Staff Evaluation Committee consisting of six representatives from Engineering, and Operations and Maintenance Departments reviewed and ranked each of the proposals in accordance with the evaluation process set forth in Sanitation District Board of Directors' Ordinance No. OCSD-44. A representative from the Contracts Administration Division participated in the evaluation process as a non-voting member. The proposals were evaluated according to the following criteria: (1) project understanding and approach; (2) understanding of project risks and risk mitigation plan; (3) applicable related project experience; (4) project team and staff qualifications; and (5) estimated level of effort. Page 2 of 4 After reviewing and scoring the proposals, the two Consultant firms were ranked according to the score achieved. The Evaluation Committee interviewed both proposing firms to meet the proposed key team members and further evaluate the firms' proposals. Pursuant to the results of the interview, the Evaluation Committee selected Brown & Caldwell as the top-ranked firm as shown in Table 1. TABLE 1 PROPOSAL EVALUATION* Brown & Black & Consultant Evaluator Caldwell Veatch Reviewer A 1 2 Reviewer B 1 2 Reviewer C 1 2 Reviewer D 1 2 Reviewer E 1 2 Reviewer F 1 2 Overall Ranking 1 2 Proposal Fee $6,926,047 NA Negotiated Fee Proposal $6,778,015 NA Based on scores after interview Brown & Caldwell was unanimously ranked highest by the Evaluation Committee based on their understanding of the challenges of the project, a clear and efficient approach for risk management that addresses Sanitation District's goals, and a highly-qualified project team with previous experience with similar projects. Both proposals were accompanied by a sealed fee proposal estimate. The fee proposal of the highest ranked firm was not opened until the proposals were evaluated and a top- ranked firm was selected in accordance with Sanitation District Ordinance No. OCSD-44. Staff conducted negotiations with Brown & Caldwell to clarify the requirements of the Scope of Work and their proposed work effort. During the negotiation meetings, the project Scope of Work, level of effort, and assumptions were discussed and clarified as required for the completion of the Scope of Work for the project. As a result of these negotiations, Brown & Caldwell submitted a revised fee proposal. Based on the above, staff determined the final cost proposal to be fair and reasonable for the Scope of Work and recommends awarding the Professional Design Services Agreement to Brown & Caldwell. Page 3 of 4 CECIA Notice of Exemption was filed on April 30, 2014. BUDGET/PURCHASING ORDINANCE COMPLIANCE This request complies with the authority levels in the Sanitation District's Purchasing Ordinance. This item has been budgeted (Line item: FY 2014-15, Section 8, Page 86) and the project budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Professional Design Services Agreement VP:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 25' day of February, 2015 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and BROWN AND CALDWELL, for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for Ocean Outfall System Rehabilitation, Project No. J-117; and to provide Design services for the assessment and rehabilitation of the deteriorating and/or obsoleted electrical, mechanical, structural, instrumentation and control systems at the COBS; evaluate space utilization at the COBS; assess and redesign certain mechanical and instrumentation and control systems at EPSA and EPSA Standby Power Facility; perform hydraulic analyses to design and construct a new outfall pumping facility; rehabilitate interplant pipelines,junction boxes and overflow structures, and install a new fiber optic cable between the plants. WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on February 25, 2015 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-44 to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 1 of 19 B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall perform its work in accordance with engineering standards in effect for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30)calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 2 of 19 F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, (b)subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. 2. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Six Million Seven Hundred Seventy Eight Thousand and Fifteen Dollars ($6,778,015). Total compensation to CONSULTANT including burdened labor(salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Suboonsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 3 of 19 As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan" as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at http://www.gsa.gov/portal/category/104711#. The CONSULTANT shall be responsible for the most economical and practical means or management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem" as deemed the most practical. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 4 of 19 CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. H. Limitation of Costs [REVISED PER ADDENDUM NO. 1, ISSUED OCTOBER 24, 2014] If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent(75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 5 of 19 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 -COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 6 of 19 work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c)conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. PREVAILING WAGES To the extent CONSULTANT intends to employ employees who will perform work during the design and preconstruction phases of a construction contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 7 of 19 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 8 of 19 B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000)aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 9 of 19 Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 10 of 19 • Certificate of Insurance ACORD Form 25 (5/2010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, Div. 260, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 11 of 19 J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies except for Errors &Omissions/Professional Liability shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Nothing in this paragraph, however, requires CONSULTANT in the absence of litigation to reveal its Errors & Omissions/Professional Liability limits beyond that required above in other paragraphs. 8. SCOPECHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 12 of 19 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 2- COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 13 of 19 be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Natasha Dubrovski, Principal Contracts Administrator Copy: Victoria Pilko, Project Manager Notices shall be mailed to CONSULTANT at: BROWN AND CALDWELL 18200 Von Karmen Avenue Suite 400 Irvine, CA 92612 Attention: Dan Bunce, P.E., PMP All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty(30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13- NOTICES. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 14 of 19 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 15 of 19 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 16 of 19 of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. [REVISED PER ADDENDUM NO. 1, ISSUED OCTOBER 24, 2014] 25. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all SANITATION DISTRICT policies and procedures including the Safety Manual, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 17 of 19 documents as required under the Agreement within thirty (30)days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: BROWN AND CALDWELL By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A"—Scope of Work Attachment"B"—Labor Hour Matrix Attachment"C"— Not Attached Attachment"D"—Allowable Direct Costs Attachment"E"—Fee Proposal Attachment"F"— Not Attached Attachment"G"— Not Attached Attachment"H"— Not Attached Attachment"I"—Cost Matrix and Summary Attachment"J"— Not Attached Attachment"K"—Hourly Rate Schedule for Minor Subconsultant [REVISED PER ADDENDUM NO. 1, ISSUED OCTOBER 24, 2014] Attachment"L"—OCSD Safety Standards NKD:yp PDSA PROJECT NO.J-117 Revised 060214 OCEAN OUTFALL SYSTEM REHABILITATION ADDENDUM NO.1 Page 19 of 19 ITEM NO. 5 MINUTES OF THE REGULAR MEETING OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 11, 2015, at 5:30 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was held on February 11, 2015, at 5:34 p.m., in the Sanitation District's Administration Building. Director Jim Ferryman led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Jim Herberg, General Manager Keith Curry, Vice-Chair Bob Ghirelli, Assistant General Manager David Benavides Lorenzo Tyner, Director of Finance Steven Choi & Administrative Services Tyler Diep Rob Thompson, Director of Engineering James Ferryman Kelly Lore, Acting Clerk of the Board Jim Katapodis Mike White Peter Kim Jennifer Cabral Greg Mills Norbert Gaia Glenn Parker Al Garcia Tom Beamish, Board Chair John Nielsen, Board Vice-Chair OTHERS PRESENT: Brad Hogin, General Counsel COMMITTEE MEMBERS ABSENT: Teresa Smith PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg, announced the informational presentations to the Committees this month will focus on the CIP and next month will be Workforce 02/11/2015 Administration Committee Minutes Page 1 of 3 Planning. He also announced the date of the next New Board Orientation will be held on March 12, 2015 at 3:00 p.m. and that there will be two Special Director Cruises on the Nerissa on March 17 & March 19 from 8:00 a.m. to noon. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner, did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED and DULY CARRIED TO: Approve Minutes of the December 10, 2014, Administration Committee Meeting. AYES: Beamish, Choi, Curry, Diep, Ferryman, Katapodis, Kim, Nielsen, and Withers NOES: None ABSTENTIONS: None ABSENT: Benavides, Mills, Parker and Smith 2. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Second Quarter Financial Report for the period ended December 31, 2014. AYES: Beamish, Choi, Curry, Diep, Ferryman, Katapodis, Nielsen, and Withers NOES: None ABSTENTIONS: Kim ABSENT: Benavides, Mills, Parker and Smith Director Parker arrived at the meeting at 5:35 p.m. Director Benavides arrived at the meeting at 5:42 p.m Director Mills arrived at the meeting at 5:45 p.m. NON-CONSENT CALENDAR Mike White provided an informative PowerPoint presentation regarding the FY 2015-16 budget assumptions. 02/11/2015 Administration Committee Minutes Page 2 of 3 3. MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Approve the FY 2015-16 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2015-16 budget update. AYES: Beamish, Benavides, Choi, Curry, Diep, Ferryman, Katapodis, Kim, Mills, Nielsen, Parker, and Withers NOES: None ABSTENTIONS: None ABSENT: Smith Director Diep left the meeting at 5:53 p.m. Director Benavides left the meeting at 6:05 p.m. INFORMATION ITEMS: 4. Capital Improvement Projects Overview Director of Engineering, Rob Thompson, provided an informational PowerPoint presentation on the Capital Improvement Program. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Committee Chair Withers declared the meeting adjourned at 6:09 p.m., to the next regularly scheduled meeting of March 11, 2015 at 5:30 p.m. Submitted by: Kelly A. Lore Acting Clerk of the Board 02/11/2015 Administration Committee Minutes Page 3 of 3 ADMINISTRATION COMMITTEE Naeting/tsoate T1.11111. oz/ttz/zs/ts AGENDA REPORT Item Number Item Nu bar 2 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THE SECOND QUARTER ENDED DECEMBER 31, 2014 GENERAL MANAGER'S RECOMMENDATION Receive and file Orange County Sanitation District Second Quarter Financial Report for the period ended December 31, 2014. SUMMARY Included in this consolidated report are the following quarterly financial reports for the period ended December 31, 2014: First Quarter Budget Review The Budget Review Summary provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the second quarter ended December 31, 2014. • Quarterly Treasurer's Report This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the U.S. and global economic outlook from the Sanitation District's investment manager, Chandler Asset Management. • Certificates of Participation Quarterly Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Consolidated Financial Reports for the Second Quarter Ended December 31, 2014 (FILE SEPARATE) NOTE: The Executive Summary from the Comprehensive Quarterly Financial Report for the second quarter ended December 31, 2014 is included in hard copy; the entire report is available on-line at the OCSD website(www.ocsd.coml with the complete agenda package. Page 2 of 2 Executive Summary Consolidated Financial Reports For the Second Quarter Ended December 31, 2014 Included in this consolidated report are the following quarterly financial reports for the period ended December 31, 2014: • Second Quarter Budget Review: The Budget Review Summary provides the Directors, staff, and the general public with a comprehensive overview of the financial results of the Sanitation District through the second quarter ended December 31, 2014. Contained within this Budget Review is the budget-to-actual status of the Collections, Treatment & Disposal Operations, the Capital Improvement Program, the Self-Insurance Program, and Debt Service Outlays. Also included is a Capital Assets Schedule as of December 31, 2014. Various detail information can be found in this report. In summary: a) Most major expense categories are anticipated to be at or below budget. b) Total revenues are at 104.5 percent mainly due to the receipts of $232.2 million from the issuance of Wastewater Refunding Revenue Obligations, Series 2014A, and Revenue Refunding Certificate Anticipation Notes, Series 2014B, during the first and second quarter of the fiscal year. The 2014A Obligations were used to refund a portion of Certificate of Participation Series 2007B and the 2014E Notes were used to refund the Revenue Refunding Certificate Anticipation Notes, Series 2013A. Excluding debt financing proceeds, total revenues are at 49.6 percent of the budget. Except for Permit Fees, Capital Assessments, and Interest Earnings, all other major revenue sources are currently tracking close to or exceeding revenue estimates. Overall, total revenues are projected to exceed budget at year-end. More detailed information on District revenues is provided within Section 1 — Pages 3 through 5. c) Collection, Treatment and Disposal Costs: As indicated within the Budget Review Summary of this report, the net operating requirements through the second quarter of $73.0 million is currently tracking at 47.9 percent of the $152.5 million budget. In addition, net operating expenses have increased $1.5 million or 2.0 percent in comparison with the same period last year. Overall, staff expects the total operating costs to remain at or below budget throughout the remainder of the year. More detailed information on District operating expenses is provided within Section 1- Pages 1 through 3. Page 1 2014-15 Second Quarter Review The total cost per million gallons is approximately $2,076 based on flows of 191.1 million gallons per day. This is $13 per million gallons, or 0.6 percent lower than the budgeted cost per million gallon per day. A further description of these costs and benchmarking with other agencies is contained within Section 1 — Pages 6 through 8. d) The total projected capital outlay cash flow of the Capital Improvement Program (CIP) for FY 2014-15 has been revised to $152.0 million, or 89.8 percent of the board approved cash outlay of$169.2 million. The actual cash outlay spending through the second quarter is $52.7 million, or 31.2 percent of the total budgeted outlay. More detailed information on the CIP budget review can be found in Section 3. • Quarterly Treasurer's Report; This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the national economic outlook from the Sanitation District's money manager, Chandler Asset Management (Chandler). Chandler reported that the Long-Term Portfolio returned 0.55 percent over the quarter, outperforming the Merrill Lynch 1-5 year AAA U.S. Corporate and Government Index by 7 basis points, while the Liquid Operating Monies Portfolio returned 0.01 percent over the quarter, outperforming its benchmark, the three- month Treasury Bill index, by one basis points. Chandler further notes that the manufacturing sector continues to show strength and consumer confidence was high heading into 2015. They believe low gas prices should provide an ongoing tailwind for consumer spending. Meanwhile, housing data remains volatile in spite of ongoing low mortgage rates. Overall, they believe the economy continues to grow at a modest pace and the labor market continues to expand. However, weakness in wages and the labor participation rate in December leaves the door open for the Fed to be patient with policy rate changes. The Federal Open Market Committee (FOMC) left policy rates unchanged at its final meeting of 2014. The FOMC indicated that it will take a "patient" approach toward normalizing monetary policy, and implied that the first rate hike is likely to be in (or around) mid-2015 based on the Fed's economic forecasts. Overall, the FOMC's guidance on policy action was consistent with its previous guidance, but the Committee is moving away from its "considerable time" language and emphasizing that policy changes will be data-dependent. During her post-meeting press conference, Fed Chair Yellen indicated that policy rates would likely remain unchanged for at least the next couple of FOMC meetings. This suggests that a rate hike is unlikely to happen any sooner than April, unless there is an Page 2 Executive Summary unexpected change in economic data. The Committee also expects the fed funds rate to approach a more normalized level by the end of 2017, which suggests that any rate increases are likely to be gradual over the next few years. We expect FOMC members will continue to debate the appropriate timing of the first fed funds rate hike when they meet again on January 27-28, 2015. During the past three months, the yield curve flattened. Concerns about weak global economic growth kept downward pressure on longer US Treasury yields, even as the Fed signaled the possibility of a fed funds rate hike this year. Economic Outlook Chandler expects GDP growth between 2.5-3.0% in 2015, a slight uptick from growth in 2014. The drop in commodity prices, particularly oil, will in the long-run prove to be a stimulus to the US economy. Long-run inflation expectations have come down and the Federal Reserve will be challenged to start the rate normalization process in the first half of 2015. Recently markets have been volatile and one of the contributing factors is global central banks surprising markets; Chandler expects the surprise element emanating from central banks to remain high throughout the year. Outside of the US several large central banks are engaging in unconventional policies to depreciate currency valuations in an attempt to stimulate export growth. On the other hand, the Federal Reserve ceased Quantitative Easing in October 2014 and is trying to determine the appropriate timing to begin the process of normalizing monetary policy. The potential tightening of policy by the Federal Reserve is adding to the strength of the dollar and will continue to support current valuations of longer-term Treasury yields in the short-term. • Quarterly Certificates of Participation (COP) Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. Page 3 ADMINISTRATION COMMITTEE MeetlngDale TOBd 011Di,. OVJJ115 ozRS/1S AGENDA REPORT Item Number Item Nu bar 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2015-16 BUDGET UPDATE. GENERAL MANAGER'S RECOMMENDATION Approve the FY 2015-16 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2015-16 budget update. SUMMARY For the budget update process, the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Currently, there are no proposed changes to the District Fiscal Policy. The Fiscal Policy is published in the FY 2014-15 and 2015-16 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District's website. BUDGET / PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENTS The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Preliminary Budget Assumptions Highlights (Pages 2-6) • Budget Update Calendar (Pages 7-10) JH:LT:MW:te Page 1 of 10 FY 2015-16 Preliminary Budget Assumptions Economic Assumptions • Inflation for Orange County in FY 2015-16 is projected to be 2.4 percent based on the 2015 projected percentage change in consumer price index obtained from the December 2014 Economic and Business Review report prepared by Chapman University. This approximates the 2.3 percent inflation factor that was used in the FY 2015-16 budget. Revenue Assumptions • Based upon the five-year Sewer Service Fee Rate Schedule approved by the Board in March 2013, the single-family residence (SFR) rate will increase by 2.2 percent ($7) to $323 in FY 2015-16. • Each $1 increase in the SFR rate generates approximately $900,000 per year. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through userfees. • Given the Facilities Master Plan adopted in December 2009, a rate study was completed in January 2013 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. • Revenues will be budgeted to reflect little growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. • Permit user rates for flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) will follow the most recent Rate Study. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in the District's service area sphere is minimal; consequently, no FY 2015-16 income from annexation fees is anticipated. • Property tax revenues are preliminarily estimated to increase by approximately five percent from FY 2014-15 to $81,620,000. A two percent annual increase in Assessed Value is authorized by the state constitution and is included in the increases noted above. The additional increase in assessed value is from authorized increases to market value when property is sold at a higher value. 2 FY 2015-16 Preliminary Budget Assumptions • Earnings on the investment of the District's operating cash and reserves will be budgeted at 1.0 percent of the average cash and investment balance projected for the fiscal year. • No additional debt issuance is scheduled for FY 2015-16. Operating Assumptions • Operating expenses are expected to be $9.4 million lower than the adopted FY 2015-16 budget of $155,004,500 as a result of paying down the OCERS Unfunded Actuarial Accrued Liability (UAAL) by$125 million. • All secondary treatment facilities are completed and fully operational. • Average daily flows are projected at 190 mgd for FY 2015-16. This projection reflects an expectation that increased economic activity and urban runoff will be more than offset by effects of conservation and minimal rainfall, resulting in an overall decrease in the average daily flow. The FY 2015-16 flow projection of 190 mgd is 2 mgd below the actual for the first 5 months of the current year and 8 mgd below the final actual flow for FY 2013-14. Employee/Staffing Assumptions • Staffing level is expected to remain flat. The total FY 2015-16 authorized staffing level is 626.00 FTEs. • Vacant positions as of 12/31/14 are budgeted at 50 percent of step 1 for the remainder of FY 2014-15 and at 100 percent of step 2 for FY 2015-16. • New positions will be projected at 100 percent of step 1 for FY 2015-16. • A 5.0 percent vacancy factor on authorized positions has been budgeted for FY 2015-16. The actual vacancy factor for 2013-14 was 6.9 percent. This vacancy factor accounts for time spent for recruitment and turnover. • The Memorandum of Understanding (MOU) for the Supervisor and Professional (SPMT) group expired June 30, 2013. Pending the completion of the negotiation process, no salary adjustments will be included in the budget for COLA for periods beyond the expiration of the current MOU. • The MOUs for both OCEA and Local 501 expired June 30, 2014. Pending the completion of the negotiation process, no salary adjustments will be included in the budget for COLA for periods beyond the expiration of the current MOU's. • OCERS rates for FY 2015-16 will decrease as a result of paying down the UAAL by $125 million in FY 2014-15. Retirement costs for employees enrolled in OCERS 3 FY 2015-16 Preliminary Budget Assumptions Plans G and H are estimated at a rate of 24.25 percent of the employee's base salary for FY 2015-16, down from 40.07 percent in FY 2014-15. The rates for Plans G and H include the District's pickup of 3.5 percent of employees' required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 18.39 percent of the employee's base salary for FY 2015-16, down from 34.87 percent in FY 2014-15. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 17.52 percent for FY 2015-16, down from 33.52 percent in FY 2014-15. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2 percent (FICA rate). • Other employee benefits and insurances will be budgeted to increase in FY 2015-16 by moderate but yet to be determined amounts. Materials, Supplies, & Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, security, and maintenance of plant assets and infrastructure. • An amount equal to half of one percent of the Operating materials and services budget will be a contingency for prior year re-appropriations. Since the current year's budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to 0.85 percent of the Operating materials and services budget will be the General Manager's contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2015-16 cash flow budget, based on the most current Validated Capital Improvement Program (CIP), is the target. • The baseline CIP cash flow for FY 2015-16 is $180 million. • Continual evaluation of the CIP by the Asset Management Team may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash Flow impact is a decrease. • The FY 2015-16 CIP budget will only increase for critical projects which were not previously identified in the Strategic Plan Update. • For the first five months of FY 2014-15, $42.5 million of the $169.2 million CIP budget, approximately 25.1 percent, was expended. 4 FY 2015-16 Preliminary Budget Assumptions Debt Financing • The District will issue new debt in the form of Certificates of Participation (COP) as needed to fund the CIP and to maintain reserves. • No additional debt issuance is scheduled for FY 2015-16. • Debt will only be used for CIP and capital expenses, not for operating expenses. • Capital financing plans which include fewer future borrowings and higher user fees after FY 2015-16 will be considered. • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. Reserve Assumptions • The current reserve policy was reviewed by Public Resources Advisory Group and the Board during FY 2003-04. No changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to offset exposure to variable rate COPs due to interest rate increases. • The current reserve policy is summarized as follows: ► A cash Flow reserve will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency reserve will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this reserve has been established at one-half of the average annual capital improvement program through the year 2024. 5 FY 2015-16 Preliminary Budget Assumptions ► Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. These reserves are intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake, of which the District currently has no outside insurance coverage, has been estimated to be as high as $1.3 billion. The level of this reserve has been set at $57 million should such a catastrophic event occur. This reserve amount will assist the District with any short-term funding needs until Federal and State assistance becomes available. ► Accumulated capital funds will be set aside for certain specific, short-term capital improvements as the need and availability arise. ► A capital replacement/renewal reserve policy has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. Based on the FY 2011-12 Asset Management Plan, the current replacement value of these facilities is estimated to be $3.14 billion for the collection facilities and $3.12 billion for the treatment and disposal facilities. The initial reserve level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be $2.12 million. ► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve. 6 Budget Calendar Tasks Responsibility EvenUDue Date PHASE I—BUDGET PREPARATION Preliminary Budget Assumptions Identified Financial Planning 12/12/14 Capital Improvement Program (CIP)— Future Engineering Planning 1/9/15 Project Attributes Reviewed and Updated Preliminary Budget Assumptions Presented to Financial 1/12/15 Executive Management Team (EMT) Management Draft Budget Calendar Presented to EMT Financial 1/12/15 Management Preparation for Budget Kickoff/Training Session: Financial Planning 1/13/15 • Salary and benefits downloaded to Excel worksheets • Develop line item worksheets with mid-year actual expense • Prepare/update budget instruction manual Budget Kickoff/Training Session: Financial Planning 1/20/15 • Distribute budget instruction manual update • Conduct budget training session • Review submission deadlines CIP— Engineering Validation Inputs Complete Engineering Project 1123/15 Managers CIP— New Project Numbers Assigned Engineering Project 1/30/15 Management Office (PMO) Operating Divisional Budgets: New Position and Divisional Budget 2/5/15 Change to Existing Position Decision Packages Coordinators Due to Human Resources (Richard Spencer, Ext. 7164)with copies to John Ralston Operating Budget: Promotional Items Request Divisional Budget 2/5/15 Forms Due to Dr. Robert Ghirelli (Division 110) Coordinators Capital Equipment Budget: Vehicle Capital Divisional Budget 2/5/15 Equipment Decision Packages Due to Fleet Coordinators Services (Jim Tintle, Ext. 7214) 7 Budget Calendar Tasks Responsibility Event/Due Date Capital Equipment Budget: Computer Capital Divisional Budget 2/5/15 Equipment Decision Packages Due to Information Coordinators Technology (Rich Castillon, Ext. 7283) Budget Assumptions Presented to Administration Financial 2111/15 Committee Management Mid-Year Financial Report to Administration Financial 2/11/15 Committee Management Division Budget Packages Due to Financial Divisional Budget 2119/15 Planning: Coordinators • Projection of current year actual operating costs • Proposed operating costs for 2015-16 • Operating Budget Expense Detail • Meetings, Memberships and Training Requests • Capital Equipment Decision Packages (other than computer and vehicle decision packages which were due on 2/5/15) • New program decision packages (Financial Planning will collate and bind these items—along with salary information -into the Preliminary Division Budget Document for use during the budget review process.) CIP— Non-engineering CIP project validation Non-engineering 2/22/15 forms completed & approved Project Managers CIP— Preliminary capital equipment request Financial Planning 2/23/15 estimates delivered to PMO Mid-Year Financial Report to Board Financial 2/25/15 Management Complete the Compilation of the Preliminary Financial Planning 2/25/15 Division Budget Update Packages CIP— Unified Preliminary CIP Budgets & Engineering PMO 315/15 Equipment Request Reports and Analysis Created CIP—Validated CIP budgets delivered to Engineering PMO 3/12/15 IT/Finance 8 Budget Calendar Department Budgets— Update the department text Department Budget 3119/15 from the FY 2014-15 & 2015-16 Budget Executive Coordinator Summary PHASE 11- BUDGET REVIEW Divisional Budgets - Distribution of Preliminary Financial Planning 2/27/15 Line Item Requested Budgets to Department Heads and Managers along with Analysis/Questions for Review Tasks Responsibility Event/Due Date Operating Budget— Information on New Positions, Human Resources 3/2/15 Position Upgrades & Reclassifications Submitted to the General Manager Operating Budget— Division Budget Review Financial Planning & 3/2/15—3/6/15 Meetings with Finance and Division Division Representatives Representatives CIP— Review/Adjust Preliminary CIP Budget Engineering 3/9/15 Management CIP— Preliminary Engineering/FinanceBudget Engineering/Financial 3/12/15 Review Workshop Management Operating Budget - Completion of Preliminary Financial Planning 3/12/15 Divisional Budgets and Compilation into Departmental Budgets Operating Budget— Recommendations to General Financial Planning 3/12/15 Manager CIP— Final Adjustments/Confirm 20 Year Cash Engineering/Financial 3/19/15 Flow Schedules/Final capital equipment requests Management delivered to PMO Final Operating Budget— General Manager Financial Planning, 3/16/15— 3/19/15 Review of Budget Recommendations General Manager, & Department Heads Capital Equipment Budget— Requests Reviewed Financial Planning, 3/16/15— 3/19/15 & Approved General Manager, & Department Heads Operating Budget— Report of General Manager's Human Resources 3/23/15 Decisions on New Positions, Position Upgrades & Reclassifications Submitted to the Financial Planning CIP—Approve Proposed CIP Budget EMT 3123/15 9 Budget Calendar CIP - Operations Committee Review Engineering 4/1/15 PHASE III- BUDGET PRESENTATION Operating Budget— Presentation of Preliminary Financial 4/6/15 Budget Update by Division/Department to EMT Management Operating Budget Update— Overview to Financial 4/8/15 Administration Committee Management CIP - Final CIP Budget Document Preparation and Financial Planning 4/9/15 Incorporation into Final Budget Document Tasks Responsibility Event/Due Date CIP— Review draft of Final Budget Document Financial Planning 4/9/15 pages with Engineering Planning & PMO Initial - Proposed Budget finalized Financial Planning 4/27/15 Initial - Proposed 2015-16 Budget Update Financial Ops—516/15 Presented to Committees Management Admin —5/13/15 General Manager's Budget Message Completed General Manager/ 5/8/15 Financial Management Approval of General Manager's Budget Message General Manager 5/13/15 Final - Proposed Budget to Printer Financial Planning 5/20/15 PHASE IV- BUDGET DELIBERATIONS Final Draft- Proposed 2015-16 Budget Update Financial Ops—6/3/15 Presented to Committees Management Admin — 6/10/15 Public Hearing & Board Adoption Board of Directors 6124/15 PHASE V—DISTRIBUTION OF BUDGET Final line item budget and equipment budgets Financial Planning 7/10/15 posted in H:\ntglobal 10 ITEM NO. 8 MINUTES STEERING COMMITTEE MEETING Orange County Sanitation District The Steering Committee meeting convened on Wednesday, January 28, 2015 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT Tom Beamish, Chair Jim Herberg, General Manager John Nielsen, Vice-Chair Bob Ghirelli, Assistant General Greg Sebourn, Operations Manager Committee Chair Jeff Reed, Director of Human John Withers, Administration Resources Committee Chair Rob Thompson, Director of Keith Curry, Member-At-Large Engineering Steve Jones, Member-At-Large Lorenzo Tyner, Director of Finance & David Shawver, Member-At-Large Administrative Services Maria E. Ayala, Clerk of the Board Jennifer Cabral COMMITTEE MEMBERS ABSENT: Jim Colston None. Ron Coss Mark Esquer Norbert Gaia Al Garcia Stephanie Good Rebecca Long Kelly Lore Andrew Nau Rich Spencer OTHERS PRESENT: Brad Hogin, General Counsel Steve Filarsky, Consultant Kathy Jensen Matthew Kaplan Jim Ruth, Consultant Melissa Thorme Minutes of the Steering Committee January 28,2015 Page 2 of 7 PUBLIC COMMENTS: None. REPORTS: Chair Beamish briefly reported on the recent LaPA Committee meeting. La PA is being presented tonight to the Board on the Rules of Procedure resolution to be acknowledged as a standing committee. He also announced that the GWRS Chair position rotates by agency, and this year he will be the GWRS Chair. General Manager Herberg did not provide a report. CONSENT CALENDAR: 1. MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the December 17, 2014 Steering Committee Meeting. Beamish, Curry, Jones; Nielsen, Shawver, and AYES: Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn NON-CONSENT CALENDAR: Assistant General Manager, Bob Ghirelli, introduced Item No. 2. He briefly highlighted some of the items on the proposed plan. 2. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2015 Legislative Plan. Beamish, Curry, Jones; Nielsen, Shawver, and AYES: Withers NOES: None Minutes of the Steering Committee January 28,2015 Page 3 of 7 ABSTENTIONS: None ABSENT: Sebourn Assistant General Manager, Bob Ghirelli, introduced Item No. 3. He briefly highlighted the areas of change: La PA into a standing committee and change in meeting start times. 3. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-01, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Fixing and Establishing Rules of procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 10-06." Beamish, Curry, Jones; Nielsen, Shawver, and AYES: Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn Jim Ruth, District Consultant on Labor Negotiations, introduced Item No. 4. Mr. Ruth reported on the negotiations process and timeline, and coming to the agreement with the labor unit on the proposed MOU tonight. 4. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-02, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Supervisory and Professional Management Group, for Fiscal Years 2013/2014, 2014/2015 & 2015/2016." Beamish, Curry, Jones; Nielsen, Shawver, and AYES: Withers NOES: None Minutes of the Steering Committee January 28,2015 Page 4 of 7 ABSTENTIONS: None ABSENT: Sebourn General Manager, Jim Herberg, introduced Item No. 5. Mr. Herberg explained the status of the following unrepresented employees, and the process for providing these employees with the same proposal (terms) as to those employees in Agenda Item No. 4. 5. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-03, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving Salary and Benefit Adjustments for Unrepresented Exempt Confidential Employees for Fiscal Years 2013/2014, 2014/2015 & 2015/2016." Beamish, Curry, Jones; Nielsen, Shawver, and AYES: Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn General Counsel, Brad Hogin, announced that although he represented the District in the legal proceedings with this matter, he is the primary legal advisor for the Steering Committee, and as such will recuse himself from this matter. He announced the District has hired two attorneys to handle this matter moving forward. Dr. Ghirelli introduced Kathy Jenson who will now be the legal advisor to the Steering Committee in this matter beginning with tonight's meeting and through the hearing process. The District has also hired outside counsel, Melissa Thorme, to prosecute the case before the Steering Committee. Dr. Ghirelli also introduced Matthew Kaplan (attorney representing Klean Waters) who was in the audience. Dr. Ghirelli explained the action that was being sought tonight are in three parts: (1) granting the request for a hearing; (2) set a date and time for the hearing; and (3) determine the procedures for the hearing. Ms. Jenson made the following recommendations on the hearing procedures to the Minutes of the Steering Committee January 28,2015 Page 5 of 7 Steering Committee: - A maximum of 2 hours per side (for a total of 4 hours); and - Based on her analysis and to ensure due process to both sides of the appeal, that this be considered a de novo review; and - Limit the evidence to what has been submitted before the Hearing Officer with one caveat, there are some additional documents that have been submitted with the appeal. Ms. Jenson recommends that these documents be accepted with a justification as to why they were not originally submitted to the Hearing body, and then the Steering Committee can decide whether or not to hear this evidence. That way they are given an opportunity to present their full case before the Steering Committee; and - There will be no calling of live witnesses during each party's two-hour time; it will basically be argument of counsel based upon documents and briefings that they have submitted; and - There has been some additional briefings submitted by the appellants; and to be fair she recommends allowing the submittal if anybody else wants to submit additional briefings with the cutoff for receipt of submittals of at least 5 days before the hearing date. No more than 20 pages per party. Ms. Jenson also explained that the Steering Committee is the final determination in this matter, any action beyond this to challenge with the determination of the Steering Committee is, would be going to court. She informed the Steering Committee that they do have flexibility to modify all or any part of the findings as part of the de novo hearing process. A decision by the Steering Committee has to be made within 65 days of the hearing date. The Steering Committee may either go straight into deliberations, request for a written opinion, and/or reconvene to consider the written opinion, or reconvene at a later date to render the decision of the Steering Committee. Ms. Jenson also informed the Steering Committee that there must be a quorum of the Steering Committee in order to proceed with the hearing, and that the same members that are present in the beginning must be in attendance through the hearing process (or at least a quorum consisting of those individuals). Director Sebourn arrived at the meeting at 5:25 p.m. 6. MOVED, SECONDED, AND DULY CARRIED AS FOLLOWS in the matter of Klean Waters, Inc., Tim Miller and Shaun Miller (Industrial Wastewater Discharge Permit No. 52-1-841): (A) The Steering Committee granted the request for a hearing; and (B) Set the following date and time for the hearing in this matter as: Wednesday, February 25, 2015 commencing at 10 a.m. to 12 p.m. (for one side), 12-12:30 p.m. for lunch break, and 12:30 p.m. to 2:30 p.m. Minutes of the Steering Committee January 28,2015 Page 6 of 7 (for the other side); and (C) Determine hearing procedures as follows: 1. A maximum of 2 hours per side (for a total of 4 hours); and 2. Based on her analysis and to ensure due process to both sides of the appeal, that this be considered a de novo review; and 3. Limit the evidence to what has been submitted before the Hearing Officer with one caveat, there are some additional documents that have been submitted with the appeal. Ms. Jenson recommends that these documents be accepted with a justification as to why they were not originally submitted to the Hearing Officer, and then the Steering Committee can decide whether or not to hear this evidence. That way they are given an opportunity to present their full case before the Steering Committee; and 4. There will be no calling of live witnesses during each party's two-hour time; it will basically be argument of counsel based upon documents and briefings that they have submitted; and 5. There has been some additional briefings submitted by the appellants; she recommends allowing the submittal of additional briefings with the cutoff for receipt of submittals of at least 5 days before the hearing date (no more than 20 pages per side.) AYES: Beamish, Curry, Jones; Nielsen, Sebourn, Shawver, and Withers NOES: None ABSTENTIONS: None ABSENT: None CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(2); 54956.9(d)(4); 54957(b)(1) and 54957.6 The Committee convened in closed session at 5:27 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. Minutes of the Steering Committee January 28,2015 Page 7 of 7 RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:55 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Beamish welcomed Director Shawver as the newest member of the Steering Committee. He also announced that the District, as a new cost cutting measure, has changed the meals that are provided for all committee meetings beginning with tonight's Steering Committee meeting. ADJOURNMENT: The Chair declared the meeting adjourned at 5:55 to the next Steering Committee meeting to be held on Wednesday, February 25, 2015 at 5:00 p.m. Submitted by: Maria E. Ayala Clerk of the Board STEERING COMMITTEE Neetlog Date TOBA.Of Dir. OV25115 02Pt5/15 AGENDA REPORT Item Number Item Number 2 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: LONG RANGE PROPERTY MANAGEMENT PLAN COMPENSATION AGREEMENT WITH THE CITY OF GARDEN GROVE GENERAL MANAGER'S RECOMMENDATION Approve and authorize the execution of the compensation agreement with the City of Garden Grove and other taxing entities within the meaning of Health and Safety Code Section 34180(f), as required by the California Department of Finance SUMMARY The City of Garden Grove (City) is the successor agency to the Garden Grove Agency for Community Development. Pursuant to the long range management plan approved by the Califomia Department of Finance, the City as Successor Agency is required to enter into compensation agreements with other taxing entities in order to transfer two properties to the City. One property is for future development and the second is to market for sale. Staff has worked directly with the City to complete the compensation agreement. Approval of the recommended actions allows the City to move forward with the development and sale of the two properties, respectively. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Compensation Agreement Page 1 of 1 COMPENSATION AGREEMENT This Compensation Agreement (this "Agreement"), dated for reference purposes as of January 1, 2015, is entered into by and among the City of Garden Grove, a municipal corporation (the "City"), and the following local agencies and school districts, each of which is a taxing entity as defined by Health and Safety Code section 34171(k) (collectively, the "Other Taxing Entities" or"OTEs"): County of Orange; Orange County Flood Control District; Orange County Water District; Orange County Sanitation District; Orange County Vector Control District; Orange County Transportation Authority; Garden Grove Sanitary District; Orange County Superintendent of Schools, on behalf of the Orange County Department of Education; Garden Grove Unified School District; and Rancho Santiago Community College District. In this Agreement,the City and the OTEs may each separately be referred to as a"Party" or a "Taxing Entity" and collectively may be referred to as the 'Parties" or the "Taxing Entities." RECITALS A. Prior to February 1, 2012, the Garden Grove Agency for Community Development (herein referred to as the 'Former Agency") was a community redevelopment agency duly organized and existing under the California Community Redevelopment Law (Health and Safety Code Sections 33000 et seq.). B. Assembly Bill xl 26, chaptered and effective June 27, 2011, added Parts 1.8 and 1.85 to Division 24 of the California Health and Safety Code, which caused the dissolution of all redevelopment agencies and winding down of the affairs of former redevelopment agencies, including as such laws were amended by Assembly Bill 1484, chaptered and effective on June 27,2012 (together,the"Dissolution Act"). C. As of February 1, 2012, the Former Agency was dissolved pursuant to the Dissolution Act, and the City of Garden Grove as Successor Agency to the Garden Grove Agency for Community Development(the "Successor Agency") implements the Dissolution Act subject to the review and approval by a seven-member Oversight Board (the "Oversight Board"). D. Health and Safety Code Section 34180(f) provides that if a city wishes to retain any properties or other assets for future redevelopment activities, it must reach a compensation agreement with the other taxing entities to provide payments to them in proportion to their shares lN9357.1 of the base property tax, as determined by Health and Safety Code Section 34188, for the value of property retained. E. Pursuant to Health and Safety Code Section 34191.5(b), upon the Successor Agency's receipt of a "Finding of Completion" from the California Department of Finance pursuant to Health and Safety Code Section 34179.7, the Successor Agency is required to prepare a long-range property management plan ("LRPMP") to address the use and disposition of the Former Agency's real property assets. If approved by the Oversight Board and the Department of Finance, the LRPMP may provide for, among other things, the retention of such property for future development and/or transfer of such property to the City for such purposes. Pursuant to Health and Safety Code section 34191.3, the approved LRPMP shall govern, and supersede all other provisions relating to, the disposition and use of all the real property assets of the Former Agency. F. On May 15, 2013, pursuant to Health and Safety Code Section 34179.7, the Successor Agency received a Finding of Completion from the Department of Finance. G. On May 29, 2013, pursuant to Health and Safety Code Section 34191.5, the Successor Agency submitted a LRPMP, approved by the Oversight Board, to the Department of Finance. On December 11, 2013, the Successor Agency submitted a revised LRPMP, approved by the Oversight Board, to the Department of Finance. The revised LRPMP provides for the transfer of certain properties from the Successor Agency to the City for future development pursuant to Health and Safety Code Sections 34191.5(c)(2)(A) and 34191.5(c)(2)(B). These properties comprise two sites referred to respectively in the LRPMP and this Agreement as "Site C" and the"Vacant Restaurant Property,"which we more completely described below. H. In response to a written request by the Department of Finance made in connection with its review of the revised LRPMP, on February 25, 2014, the Oversight Board adopted Resolution No. 31-14 approving certain revisions to the LRPMP. Resolution No. 31-14 provides that the Successor Agency will verify that compensation agreements between the City and the other taxing entities are in place and executed prior to the transfer of Site C and the Vacant Restaurant Property to the City. I. On March 7, 2014, the Department of Finance approved the revised LRPMP, as revised pursuant to Oversight Board Resolution No. 31-14. J. Site C consists of several generally contiguous parcels on or near Harbor Boulevard within the City's resort district, which are entitled for the development and operation of a resort hotel, retail, and entertainment project. The property comprising Site C is subject to that certain Grove District Resort Hotel Development Agreement between the City and Land & Design, Inc., or any approved affiliate, assignee or successor thereto permitted by the Agreement (the "Developer"), dated April 9, 2013 (the "Site C Agreement"), providing for the development and operation of a project on Site C generally consisting of a combination of hotels, retail, restaurant, and entertainment venues, and related parking facilities. Pursuant to the Site C Agreement, the Developer is required to construct and operate the entitled resort hotel project in consideration for the City providing specified economic assistance necessary to fund the economic feasibility gap of the project, including conveyance of Site C to the Developer at no 104935/.1 cost. In conjunction with its approval of the Site C Agreement, the City Council considered an economic evaluation of the proposed project prepared by Horwath HTL, LLC, which concluded that the project's development costs compared to the estimated income and development values reasonably expected from the project generates a negative residual land value, or financial feasibility gap, of approximately $31.5 million, inclusive of City assistance in the form of conveyance of Site C at no cost to Developer. The Parties anticipate that the development and operation of the project pursuant to the Site C Agreement will result in significant additional future property tax revenue to the Taxing Entities, the net present value of which is no less than what would otherwise be distributed to the Taxing Entities pursuant to Health and Safety Code Section 34180(t) if not for the development and operation of the project pursuant to the Site C Agreement. K. The Vacant Restaurant Property, which is located at 12361 Chapman Avenue in the City of Garden Grove, and currently identified as Assessor's Parcel No. 233-171-23, is comprised of a 20,908 square foot parcel containing a 10,800 square foot building that formerly housed a restaurant. Upon transfer to the City, the City intends to continue to market the Vacant Restaurant Property for sale to a restaurant operator in accordance with Government Code Section 52201. L. The Parties intend by this Agreement to satisfy the provisions of the approved LRPMP, Oversight Board Resolution No. 31-14, and Health and Safety Code Section 34180(f), and to provide for payment to the Taxing Entities of their proportionate shares of the net proceeds, if any, to be received by the City in connection with the future disposition of Site C and the Vacant Restaurant Property by the City. NOW THEREFORE, in consideration of the foregoing recitals and the mutual promises contained in this Agreement, the Parties agree as follows: AGREEMENT 1. Incorporation of Recitals. The foregoing recitals are true and correct and hereby incorporated herein by reference. 2. Definitions. The following definitions shall apply in this Agreement: (a) "Disposition Proceeds" means the net proceeds, if any, actually received by the City in exchange for the conveyance of fee title or a leasehold interest in Site C and/or the Vacant Restaurant Property. For purposes of this definition, the term "net proceeds" shall mean sales proceeds paid by a buyer directly to City or into escrow, minus sums paid or withheld by escrow for broker and/or agent sales commissions, closing costs, escrow fees, title insurance premiums, applicable taxes, and any other similar fees and costs customarily allocated to the seller of commercial property. The Disposition Proceeds represent the Parties' agreed-upon value of Site C and the Vacant Restaurant Property pursuant to Health and Safety Code Section 34180(f). lN935/.1 (b) "Each Taxing Entity's Proportionate Share of the Disposition Proceeds" means each Taxing Entity's proportionate share of the Disposition Proceeds, as determined pursuant to Health and Safety Code Section 34188. 3. Compensation Agreement. This Agreement constitutes a "compensation agreement" between the City and the Other Taxing Entities within the meaning of Health and Safety Code Section 34180(fj. 4. Disposition of Site C and Vacant Restaurant Property by City. (a) Disposition of the Vacant Restaurant Property. The City shall use best efforts to market and expeditiously dispose of the Vacant Restaurant Property and shall comply with all applicable law, including, to the extent applicable, Government Code Section 52201. Unless otherwise mutually agreed by all of the Taxing Entities through an amendment to this Agreement, if the City's disposition of the Vacant Restaurant Property occurs after January 1, 2018, or such other date mutually agreed upon amongst the Parties, such disposition shall be at no less than fair market value, as presently zoned, as determined by an appraisal performed by an appraiser mutually acceptable to all of the Parties. In the event that the City disposes of the Vacant Restaurant Parcel for nominal or no consideration, Parties shall have an appraisal performed by a mutually agreed upon appraiser, at the City's cost, to determine the appraised value of the Vacant Restaurant Parcel and the City shall remit an amount equal to the appraised value to the Orange County Auditor-Controller for determination and distribution of the Each Taxing Entity's Proportionate Share of the Disposition Proceeds. In the event a rezoning of the Vacant Restaurant Property, or its surrounding area, results in a higher market value of the Property, the Parties acknowledge and agree that the higher market value shall apply for purposes of appraising the value of same and remitting an amount equal such appraised value to the Orange County Auditor-Controller for determination and distribution of the Each Taxing Entity's Proportionate Share of the Disposition Proceeds. (b) Disposition of Site C. (i) The City's disposition of Site C shall comply with all applicable law, including,to the extent applicable, Government Code Section 52201. (ii) City may convey Site C to the Developer pursuant to the Site C Agreement. (iii) City represents that it intends to convey Site C to the Developer pursuant to the Site C Agreement. The Parties acknowledge and understand, however,that City's conveyance of Site C to the Developer pursuant to the Site C Agreement is subject to certain conditions precedent. If, due to a failure of a condition precedent or for any other reason, the City does not convey Site C to the Developer pursuant to the Site C Agreement and the Site C Agreement is terminated, then City shall use best efforts to market and expeditiously dispose of Site C to another developer for development and operation of a similar resort hotel, retail, and entertainment project on n14935/.1 Site C by January 1, 2018. In the event the Site C Agreement is terminated and the City has failed to successfully market and dispose of Site C as aforementioned, the City shall, upon mutual agreement amongst the Parties, be granted an additional year to dispose of Site C. If the Site C, however, is not disposed by either January 1, 2018 or the aforementioned extension of time, if applicable, the Parties shall have an appraisal of Site C performed by a mutually agreed upon appraiser, at the City's cost, to determine the value of Site C and expeditiously market and sell the property using the appraised value of the Site C. Upon sale of Site C, the City shall remit the Disposition Proceeds to the Orange County Auditor- Controller for determination and distribution of Each Taxing Entity's Proportionate Share of the Disposition Proceeds. In the event that the City disposes of Site C, after January 1, 2018, or the aforementioned extension of time, if applicable, for nominal or no consideration, Parties shall have an appraisal performed by a mutually agreed upon appraiser, at the City's cost, to determine the appraised value of Site C and the City shall remit an amount equal to the appraised value to the Orange County Auditor- Controller for determination and distribution of the Each Taxing Entity's Proportionate Share of the Disposition. (iv) If, for any reason, fee title to all or a portion of Site C reverts to or is re- vested in the City following conveyance of Site C to the Developer pursuant to the Site C Agreement, but prior to completion of Grove District Resort Hotel Development more particularly described in the Site C Agreement, then, subject to the then existing rights, if any, of third parties, City shall use best efforts to market and expeditiously dispose of such portion of Site C to another developer for development and operation of a similar resort hotel, retail, and entertainment project on Site C by January 1, 2018. In the event of such reversion or re-vesting of fee title to Site C to the City, and the City has not disposed of Site C to another developer as provided in the foregoing sentence within three (3) years after the date of such reversion or re-vesting, then the City shall, upon agreement amongst the Parties, be granted an additional year to dispose of the property. If the Site C, however, is not disposed at the end of the aforementioned three (3) year period, or the aforementioned extension of time, if applicable, the Parties shall have an appraisal of Site C performed by a mutually agreed upon appraiser, at the City's cost, to determine the value of Site C and expeditiously market and sell the property using the appraised value of the Site C. Upon sale of Site C, the City shall remit the Disposition Proceeds to the Orange County Auditor-Controller for determination and distribution of Each Taxing Entity's Proportionate Share of the Disposition Proceeds. Unless otherwise mutually agreed by all of the Taxing Entities through an amendment to this Agreement, if City conveys any re-vested portion of Site C for any purpose other than for development and operation of a similar resort hotel, retail, and entertainment project on Site C, then such conveyance shall be at no less lN935/.1 than fair market value, as determined by an appraisal performed by an appraiser mutually acceptable to all of the Parties. (v) The Parties acknowledge that, upon mutual agreement, this Subsection (b) may be amended to allot the City additional time to dispose of Site C. 5. Payment of Proportionate Share of Disposition Proceeds to Taxing Entities. Within fifteen business (15) days after the City receives Disposition Proceeds, if any, in conjunction with the disposition of either Site C or the Vacant Restaurant Parcel, the City shall remit such Disposition Proceeds to the Orange County Auditor-Controller for determination and distribution to the Taxing Entities of Each Taxing Entity's Proportionate Share of the Disposition Proceeds. 6. Time. Time is of the essence in the performance of this Agreement. 7. Limitation of Liability of Other Taxing Entities to City. The OTEs shall not be liable to the City, and the City hereby waives and discharges all claims against the OTEs, for any and all liability, demands, claims, costs, losses, injuries, damages, recoveries, settlements, and expenses (collectively, "Claims") resulting from, or in any way connected with or incidental to, the transfer of title of Site C and/or the Vacant Restaurant Property to the City or the City's management of the Site C and the Vacant Restaurant Property during the term of this Agreement, no matter how caused. This provision shall survive any termination of this Agreement. 8. Indemnification of OTEs by City for Third Party Claims. The City shall indemnify, defend, and hold harmless each OTE and its officers, agents, and employees, from and against any Claims arising out of or related to this Agreement made by the California Department of Finance,the State Controller, and/or any third party not a party to this Agreement. 9. Attorneys Fees. In any action between the Parties to enforce or interpret any of the terms of this Agreement, each Party shall bear its own attorneys' fees and costs. 10. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the internal laws of the State of California, without regard to conflict of law principles. 11. Entire Agreement. This Agreement contains the entire agreement between the Parties respecting the matters set forth herein, and supersedes all prior agreements between the Parties respecting such matters. 12. Non-liability of Officials and Employees of Parties. No member, official, or employee of any Party shall be personally liable to any other Party, or any successor in interest, in the event of any default or breach of this Agreement or for any amount which may become due hereunder, or on any obligation under the terms of this Agreement. lN935/.1 13. Successors and Assigns. All the terms, provisions and conditions of the Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors, assigns and legal representatives. 14. No Third Party Beneficiaries. No person or entity other than the Taxing Entities, and the permitted successors and assigns of each of them, shall be authorized to enforce the provisions of this Agreement. 15. Sevembility. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Agreement, but this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been contained herein. 16. No Waiver. No waiver of any term or condition of this Agreement will be a continuing waiver. 17. Counterparts. This Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. The signature page of any counterpart may be detached therefrom without impairing the legal effect of the signature(s) thereon provided such signature page is attached to any other counterpart identical thereto having additional signature pages executed by the other Parties. Any executed counterpart of this Agreement may be delivered to the other Parties facsimile or electronic mail and shall be deemed as binding as if an originally signed counterpart was delivered. SIGNATURES ONFOLLOWING PAGES n149357.1 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly authorized representatives indicated below. CITY OF GARDEN GROVE, a municipal corporation By: City Manager ATTEST: By: Kathleen Bailor City Clerk SIGNATURES CONTINUE ON FOLLOWING PAGES lN935/.1 The undersigned signatory hereby executes this Agreement on behalf of the County of Orange and each of the following entities and/or funds: ORANGE COUNTY GENERAL FUND ORANGE COUNTY PUBLIC LIBRARY O.C.HARBORS BEACHES AND PARKS CSA 26 EDUCATIONAL REVENUE AUGMENTATION FUND (ERAF) APPROVED AS TO FORM COUNTY COUNSEL By: Date: SIGNED AND CERTIFIED THAT A COPY COUNTY OF ORANGE, a political OF THIS DOCUMENT HAS BEEN subdivision of the State of California DELIVERED TO THE CHAIR OF THE BOARD PER GC § 25103,RESO. 79-1535 By: Chair of the Board of Supervisors Susan Novak Clerk of the Board of Supervisors Orange County California SIGNATURES CONTINUE ONFOLLO97NG PAGES H4935/.1 APPROVED AS TO FORM COUNTY COUNSEL By: Date: SIGNED AND CERTIFIED THAT A COPY ORANGE COUNTY FLOOD OF THIS DOCUMENT HAS BEEN CONTROL DISTRICT, a body DELIVERED TO THE CHAIR OF THE corporate and politic BOARD PER GC § 25103, RESO. 79-1535 By: Chair of the Board of Supervisors Susan Novak Clerk of the Board of Supervisors Orange County California SIGNATURES CONTINUE ONFOLLOWING PAGES 1314935/.1 ORANGE COUNTY WATER DISTRICT, a political subdivision of the State of California organized under Chapter 924 of the Statutes of 1933, as amended By: Name: Its: ATTEST: By: Name: Its: APPROVED AS TO FORM: By: Name: Its: SIGNATURES CONTINUE ONFOLLOWING PAGES lN935/.1 ORANGE COUNTY SANITATION DISTRICT By: Name: Its: ATTEST: By: Name: Its: APPROVED AS TO FORM: LEWIS BRISBOIS BISGAARD& SMITH,LLP By: Special Counsel SIGNATURES CONTINUE ONFOLLOWING PAGES lN935/.1 ORANGE COUNTY VECTOR CONTROL DISTRICT By: Michael Hearst District Manager ATTEST: By: Name: Its: Secretary APPROVED AS TO FORM: By: Alan R. Bums District Counsel SIGNATURES CONTINUE ONFOLLOWING PAGES H4935/.1 ORANGE COUNTY TRANSPORTATION AUTHORITY,a public entity By: Darrell Johnson Chief Executive Officer ATTEST: By: Name: Its: APPROVED AS TO FORM: By: Name: Its: SIGNATURES CONTINUE ONFOLLOWING PAGES lN935/.1 GARDEN GROVE SANITARY DISTRICT,a subsidiary special district of the City of Garden Grove By: Matthew J. Feral General Manager ATTEST: By: Kathleen Bailor Secretary SIGNATURES CONTINUE OAT FOLLOWING PAGES lN935/.1 ORANGE COUNTY SUPERINTENDENT OF SCHOOLS On behalf of the Orange County Department of Education By: Wendy Benkert, Ed. D. Associate Superintendent for Business Services ATTEST: By: Name: Its: APPROVED AS TO FORM: By: Ronald D. Wenkart General Counsel SIGNATURES CONTINUE ON FOLLOWING PAGES M4935/.1 GARDEN GROVE UNIFIED SCHOOL DISTRICT By: Rick Nakano Assistant Superintendent Business Services ATTEST: By: Name: Its: APPROVED AS TO FORM: By: Name: Its: SIGNATURES CONTINUE ONFOLLOWING PAGE lN935/.1 RANCHO SANTIAGO COMMUNITY COLLEGE DISTRICT By: Peter J. Hardash Vice Chancellor Business Operations/Fiscal Services ATTEST: By: Name: Its: APPROVED AS TO FORM: By: Name: Its: lN935/.1 1049357.1 STEERING COMMITTEE Neetlog Dare TOBA.Of Dir. OV25115 02Pt5/15 AGENDA REPORT Item Number Item Nu bar 3 10 Orange County Sanitation District FROM: Steve Filarsky, Chief Negotiator CHIEF NEGOTIATOR'S RECOMMENDATION 1. Adopt Resolution No. OCSD 15-04, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving the Memoranda of Understanding between the Orange County Sanitation District and the Orange County Employees Association (OCEA), for Fiscal Years 2014/2015 & 2015/2016." and 2. Direct staff to finalize and sign the Memoranda of Understanding (MOUs) between Orange County Sanitation District and the three (3) OCEA bargaining units. SUMMARY The Memoranda of Understanding (MOUs) between the Orange County Sanitation District (OCSD) and the Orange County Employees Association (OCEA) expired on June 30, 2014. OCEA and OCSD opened negotiations on May 21, 2014. OCSD and OCEA have met a total of eight (8) times to date. Four (4) proposals have been exchanged, and OCSD has provided three (3) presentations in response to OCEA information requests. OCEA delivered its last counter proposal on November 19, 2014. On January 28, 2015, the Board of Directors directed the Chief Negotiator to make a counter proposal to OCEA including a two-year contract with a 2% salary increase in the first year and 2% salary increase in the second year. Pursuant to the understanding with OCEA at the beginning of negotiations, the salary changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year. OCSD delivered this counter proposal to OCEA on February 3, 2015. OCEA's membership ratified the proposal by majority vote on February 9, 2015. The key points include the following: • Salary Increases (2-Year Cost: $674K, all-inclusive of benefits) - 2% in Year 1; and 2% in Year 2. Page 1 of 6 1071010.1 • Medical Reopener - Parties agree to reopen negotiations, at the beginning of the month following ratification, regarding health insurance carrier and/or plan design changes in order to achieve cost containment. • Classification & Compensation Study - OCSD agrees to include a representative from OCEA to participate as a partner in the agency-wide Classification & Compensation study. PRIOR COMMITTEE/BOARD ACTIONS In preparation for and during the meet and confer process, the Chief Negotiator received direction for labor negotiations with OCEA from the Steering Committee and the Board of Directors. The OCEA meet and confer process was agendized for discussion, and discussed, at the following Committee/Board meetings in closed session: • February 19, 2014 —Administration Committee • May 28, 2014 — Steering Committee • June 25, 2014 — Steering Committee • July 9, 2014—Special Steering Committee Meeting • July 23, 2014— Steering Committee and Board Meeting • August 27, 2014—Steering Committee and Board Meeting • November 19, 2014 — Steering Committee and Board Meeting • January 28, 2015— Steering Committee and Board Meeting ADDITIONAL INFORMATION The Orange County Employees Association is the recognized employee organization certified to provide exclusive representation over wages, hours of work, and other terms and conditions of employment for 100 non-exempt District employees spread across three (3) bargaining units: the Administrative and Clerical Unit, the Technical Services Unit, and the Engineering Unit. These employees perform administrative, clerical, and/or para-professional tasks in support of their assigned function or program. The MOUs between OCSD and OCEA expired on June 30, 2014. Based on Board direction, OCSD issued a counter proposal to OCEA on February 3, 2015, including two-year contracts with a 2% salary increase in the first year, and a 2% salary increase in the second year. This proposal mirrored the proposal that the Board approved for years two (2) and three (3) of the SPMG MOUs on December 17, 2014. OCEA distributed the proposals to their membership for voting, and OCEA's membership ratified the proposals by majority vote on February 9, 2015. The agreements include the following key items: Page 2 of 6 1071010.1 • Salary o Year 1 — 2.0% Salary Increase, retroactive to the first pay period of July 2014. o Year 2 — 2.0% Salary Increase, effective the first pay period of July 2015. • Medical Reopener o Medical reopener, at the beginning of the month following ratification, to discuss the transition from Anthem to Blue Shield through California State Association of Counties — Excess Insurance Authority (CSAC-EIA), or to another carrier directly, and varied plan design changes in order to mitigate excise taxation in 2018 and achieve cost containment. • Potential strategies for consideration include, but are not limited to, the following: plan design changes to office and specialist copays, emergency room copays, plan deductibles and contribution rates; and alternative plan offerings such as a high deductible health plan with health savings account funding. • Classification & Compensation (C&C) Studv o OCSD agrees to include a representative from OCEA to participate as a partner in the agency-wide C&C study. The total cost is $674K over the term of the agreement, which is all-inclusive of benefits. Listed below is a summary of all of the proposed changes in the tentative agreements by article number: FINAL MOU AGREEMENTS Article 1.0— Recognition: Effective date is July 1, 2014. Article 2.0— Duration: Terminates June 30, 2016. Article 3.0 — Successor Agreement: Minor language changes to reflect that the Group will submit an initial proposal for a successor agreement prior to the expiration date of the MOU. Article 4.0— OCEA Access: No change. Article 5.0— OCEA Rights: No change. Article 6.0— District Rights: No change. Article 7.0— Nondiscrimination in Employment: No change. Article 8.0— Smoke-free Work Environment: No change. Article 9.0— Safety: No change. Article 10.0— Discipline and Dismissal: Minor housekeeping changes. Article 11.0— Grievance Procedure: No change. Article 12.0— Problem Solving Procedure: No change. Article 13.0 — Salary Adjustments and Compensation: Year 1: 2% Salary Increases, and Year 2: 2% Salary Increases; removal of outdated language regarding salary reopener. Article 14.0—Severance Pay: No change. Page 3 of 6 1071010.1 Article 15.0 - Deferred Compensation: Minor administrative changes/updated language to clarify that participation is subject to IRS requirements. Article 16.0- Holidays: No change. Article 17.0- Hours of Work: No change. Article 18.0- Call-Back Pay- No change. Article 19.0-Standby Pay- No change. Article 20.0 - Insurance: Medical Reopener at the beginning of the month following contract ratification to discuss the transition from Anthem to Blue Shield through California State Association of Counties - Excess Insurance Authority (CSAC-EIA), or to another carrier directly, and varied plan design changes in order to achieve additional cost savings; minor housekeeping changes, removal of retiree medical reopener language. Article 21.0- Reimbursement Accounts: No change. Article 22.0- Overtime- No change. Article 23.0- Probationary Period: No change. Article 24.0- Promotions: Minor housekeeping changes. Article 25.0 - Retirement: Addition of Plan U/PEPRA language: Employees hired on or after January 1, 2013: The District will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. Minor housekeeping changes. Article 26.0- Shift Differential: No change. Article 27.0 - Leave of Absence with Pay: Addition of language regarding straight proration of leave; addition of language regarding proration of leave for part-time employees; minor housekeeping changes. Article 28.0- Leave of Absence without Pay: Minor housekeeping changes. Article 29.0 - Classification Studies: OCSD agreed to include a representative from OCEA to participate as a partner in the upcoming agency-wide Classification & Compensation study. Article 30.0- Driver's License: No change. Article 31.0- Layoff Procedure: Minor housekeeping change. Article 32.0- Light Duty: No change. Article 33.0- Medical Examination: No change. Article 34.0- Mileage Allowance: No change. Article 35.0-Acting Pay: No change. Article 36.0 (intentionally left blank)- No change. Article 37.0- Personnel Files: No change. Article 38.0- Bulletin Boards: No change. Article 39.0- Release Time for Meet and Confer Sessions: No change. Article 40.0- Use of District Facilities: No change. Article 41.0- Scope of Bargaining: No change. Article 42.0- Impasse Procedures: No change. Article 43.0-Severability: No change. Article 44.0- Uniforms: No change. Article 45.0- Substance Abuse Policy: Minor housekeeping changes. Article 46.0- Dues Deductions: No change. Page 4 of 6 1071010.1 Article 47.0— (intentionally left blank)— No change. Article 48.0— Peaceful Resolution of Disputes: No change. Article 49.0 (intentionally left blank)— No change. Article 50.0-Workplace Violence &Weapons Policy: No change. Article 51.0— Resignation: No change. Article 52.0 (intentionally left blank)— No change. Article 53.0 — Labor Management Committee — Orange County Employees Association (OCEA) and the Orange County Sanitation District (OCSD) hereby agree to meet within two (2) months, from the OCSD Board approval of this MOU, to discuss the structure and process of a Labor Management Committee at OCSD. Absent mutual agreement regarding the structure and process of a Labor Management Committee, the parties will defer discussions to the time when a successor MOU is raised. ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: • Resolution OCSD 15-04 • OCEA MOU —Administrative and Clerical Unit—July 1, 2014 thru June 30, 2016 • OCEA MOU —Technical Services Unit—July 1, 2014 thru June 30, 2016 • OCEA MOU — Engineering Unit— July 1, 2014 thru June 30, 2016 Page 5 d 6 1071010.1 RESOLUTION NO. OCSD 15-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING THE MEMORANDA OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION, FOR FISCAL YEARS 2014/2015 & 2015/2016. WHEREAS, on July 27, 2011, the Board of Directors ("Directors") of the Orange County Sanitation District (the "District") authorized the General Manager to sign the Memoranda of Understanding with the Orange County Employees Association (referred hereinafter as "OCEA"), regarding salaries, benefits and terms and conditions of employment for the period July 1, 2011 through June 30, 2014 ("2011 MOUs"). WHEREAS, pursuant to Government Code Section 3500, at seq., representatives of OCEA have met and conferred with the representatives of the District and have reached an understanding with regard to certain terms and conditions relative to employment; WHEREAS, at the beginning of negotiations the parties agreed that any salary changes would take effect retroactively to July 11, 2014, the first pay period in the current fiscal year; and WHEREAS, the parties have modified the 2011 MOUs between the District and OCEA to reflect the parties' understanding regarding certain terms and conditions, which include: • Duration of the MOUs have been modified and will be for a 2-year term commencing July 1, 2014 and terminating June 30, 2016, as reflected in the Cover Page and Article 1 and 2 of the MOUs: • Salary Adjustments and Compensation has been modified as set forth below and as reflected in Article 13 of the MOUs: o Year 1 —2.0% Salary Increase, retroactive to the first pay period of July 2014. o Year 2—2.0% Salary Increase, effective the first pay period of July 2015. • Deferred Compensation has been modified as set forth below and as reflected in Article 15 of the MOUs: o Minor administrative changes/updated language to clarify that participation is subject to IRS requirements. • Insurance has been modified as set forth below and as reflected in Article 20 of the MOUS: o Medical reopener in February 2015 to discuss health insurance carrier and/or plan design changes in order to achieve additional cost savings; minor updates to language. OCSD 15-04-1 • Retirement has been modified as set forth below and as reflected in Article 25 of the MOUS: o Employees hired on or after January 1, 2013: The District will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service. The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. • Leave of Absence with Pay has been modified as set forth below and as reflected in Article 27 of the MOUs: o Part-time employees accrue vacation leave and sick leave on a pro-rata basis as set forth in District Policy. o When unpaid absences occur, vacation leave and sick leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. • Classification Studies has been modified as set forth below and as reflected in Article 29 of the MOUs: o OCSD will include a representative from OCEA to participate as a partner in the agency-wide Classification & Compensation study; minor administrative changes. • Labor Management Committee has been added as set forth below and as reflected in Article 53 of the MOUs: o Orange County Employees Association (OCEA) and the Orange County Sanitation District (OCSD) hereby agree to meet within two (2) months, from the OCSD Board approval of this MOU, to discuss the structure and process of a Labor Management Committee at OCSD. Absent mutual agreement regarding the structure and process of a Labor Management Committee, the parties will defer discussions to the time when a successor MOU is raised. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1. The aforementioned MOUs between the District and OCEA for the contract period of July 1, 2014 through June 30, 2016 as outlined herein are hereby approved. Section 2. The General Manager is authorized to sign the Memoranda of Understanding with OCEA for the period of July 1, 2014 through June 30, 2016, in a form approved by General Counsel. OCSD 15-04-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 25, 2015. Tom Beamish, Board Chair ATTEST: Kelly A. Lore Acting Clerk of the Board OCSD 15-04-3 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT July 1, 2014 through June 30, 2016 TABLE OF CONTENTS ARTICLE1. -RECOGNITION................................................................................................................................1 ARTICLE2.-DURATION.......................................................................................................................................1 ARTICLE 3.-SUCCESSOR AGREEMENT.....................................................................................I.....................1 ARTICLE 4.-OCEA ACCESS...............................................................................................................................1 ARTICLE 5.-OCEA RIGHTS.................................................................................................................................2 ARTICLE 6.- DISTRICT RIGHTS.........................................................................................................................2 ARTICLE 7. -NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................2 ARTICLE9.-SAFETY...........................................................................................................................................2 ARTICLE 10.-DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11.-GRIEVANCE PROCEDURE..........................................................................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE............................................................................................5 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION.....................................................................6 ARTICLE 14.-SEVERANCE PAY.........................................................................................................................6 ARTICLE 16.-DEFERRED COMPENSATION.....................................................................................................7 ARTICLE 16.-HOLIDAYS.....................................................................................................................................7 ARTICLE17.-HOURS OF WORK.......................................................................................................................a ARTICLE18.-CALL-BACK PAY..........................................................................................................................a ARTICLE 19.-STANDBY PAY..............................................................................................................................a ARTICLE 20.-INSURANCE.................................................................................................................................a 20.3 MEDICAL INSURANCE................................................................................................................................8 20.4 LIFE INSURANCE.......................................................................................................................................9 20.5 SHORT TERM DISABILITY..........................................................................................................................9 20.6 LONG TERM DISABILITY......................................................................................................................-....9 20.7 DENTAL INSURANCE.................................................................................................................................9 20.8 VISION INSURANCE...................................................................................................................................9 20.9 RETIRING EMPLOYEES..............................................................................................................................9 ARTICLE 21. -REIMBURSEMENT ACCOUNT..................................................................................................10 21.2 GROUP INSURANCE PREMIUMS...............................................................................................................10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT............................................................................................10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT..............................................................................................10 ARTICLE 22.-OVERTIME...................................................................................................................................10 ARTICLE 23.- PROBATIONARY PERIOD.........................................................................................................10 ARTICLE24.- PROMOTIONS.............................................................................................................................11 ARTICLE 26. -RETIREMENT..............................................................................................................................11 ARTICLE 26. -SHIFT DIFFERENTIAL................................................................._.............................................12 ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................12 27.3 JURY DUTY LEAVE..................................................................................................................................14 27.4 WITNESS LEAVE.....................................................................................................................................14 27.5 MILITARY LEAVE.....................................................................................................................................14 27.6 BEREAVEMENT LEAVE............................................................................................................................14 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................15 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY......................................................................................16 28.3 SUBSTITUTION OF PAID LEAVE........... ....................................................................................................i6 28.4 PERMISSIBLE USES................................................................................................................................16 28.5 GENERAL LEAVE....................................................................................................................................17 28.6 RETURN TO WORK POLICY.....................................................................................................................17 28.7 COMPLIANCE WITH LAW..........................................................................................................................16 ARTICLE 29. -CLASSIFICATION STUDIES.......................................................................................................1a ARTICLE 30. -DRIVER'S LICENSE....................................................................................................................19 ARTICLE31. -LAYOFF PROCEDURE...............................................................................................................19 ARTICLE32. -LIGHT DUTY................................................................................................................................20 ARTICLE 33. -MEDICAL EXAMINATION...........................................................................................................20 ARTICLE 34. -MILEAGE ALLOWANCE.............................................................................................................20 ARTICLE 35. -ACTING PAY...............................................................................................................................20 ARTICLE36..........................................................................................................................................................20 OCEA-Administrative/Clerical MOU July 1, 2014 to June 30. 2016 Pagel ARTICLE 37. - PERSONNEL FILES....................................................................................................................20 ARTICLE 38.—BULLETIN BOARDS..................................................................................................................21 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS ..........................................................21 ARTICLE 40. -USE OF DISTRICT FACILITIES..................................................................................................21 ARTICLE 41. -SCOPE OF BARGAINING...........................................................................................................21 ARTICLE 42.-IMPASSE PROCEDURES...........................................................................................................21 ARTICLE 43.-SEVERABILITY...........................................................................................................................22 ARTICLE44. -UNIFORMS..................................................................................................................................22 ARTICLE 45. -SUBSTANCE ABUSE POLICY...................................................................................................22 ARTICLE46.-DUES DEDUCTIONS...................................................................................................................22 ARTICLE47..............................................................................................................................................I...........22 ARTICLE 48. -PEACEFUL RESOLUTION OF DISPUTES................................................................................23 ARTICLE49..........................................................................................................................................................23 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................23 ARTICLE51. -RESIGNATION ............................................................................................................................23 ARTICLE52..........................................................................................................................................................23 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE.......................................................................................24 SIGNATUREPAGE..............................................................................................................................................24 EXHIBITA.............................................................................................................................................................25 OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page ii MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT In accordance with the provisions of California Government Code Sections 3500, et seq., and Resolution No. 75-127 of the Joint Board of Directors, the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA)for the Administrative and Clerical Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 2014, is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association, referred to hereinafter as"OCEA." 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit"A" (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by the District. ARTICLE 2. - DURATION 2A This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30, 2016. This Agreement shall act as a bar to the raising of the question of representation during its term,except that the question of representation may be raised during the period between sixty (60)and ninety(90)days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. -OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations, or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 1 ARTICLE 5. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. - DISTRICT RIGHTS 6.1 District inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. District rights include, but are not limited to,the exclusive right to consider the merits, necessity or organization of any service or activity provided by law, or administrative order; determine the mission of its constituent departments, commissions and boards; set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards; direct its employees; take disciplinary action for proper cause; layoff employees from duty because of lack of work or lack of funds; maintain the efficiency of District operations; determine the methods, means and personnel by which District operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. To the extent required by law or by the District's rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to marital status, handicap, medical condition, status as a disabled veteran, age or citizenship. ARTICLE B. - SMOKE-FREE WORK ENVIRONMENT 8.1 The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families, smoking is not acceptable within District facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of the District, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken far just cause with respect to any employee in the unit'. verbal reprimand, written reprimand, suspension without pay; reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent Is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10,4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which It was personally delivered or deposited in the mail, which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following: (1)a description of the disciplinary action intended and the effective date of the action; (2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10) business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action,the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, the District shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described in the Notice of Intent, however, the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies& Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of District property or funds, fighting on the job, insubordination, acts endangering people or property,or other serious misconduct. The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10) business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources, or designee, shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final, 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee's personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. OCEA—Administrative/Clerical MOU July 1,2014 to June 30, 2016 Page 3 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, "bumping"associated with layoffs, reasonable accommodation)shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure. Grievances brought by two(2) or more employees, and concerning the same incident, issue, or course of conduct, or multiple grievances brought by the same employee may, upon mutual agreement of the District and the OCEA, be consolidated for the purposes of this procedure. 11.3 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.3.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within five(5)days of the occurrence of the event giving rise to the complaint, or within five(5)days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within five(5)days. 11.3.2 Steo 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee. This request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1. A copy of each written communication on a grievance will be fled with the Director of Human Resources, or designee. The written grievance must: a) Identity the specific management act to be reviewed; b) Specify how the employee was adversely affected; c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested; and e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.3.2.1 The Division Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received, 11.3.3 Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the employee's Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by the District within five(5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be fled with the Director of Human Resources or designee. The employee's Department Director, or designee, shall respond in writing to the employee within ten (10)days after the date the grievance is received. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 4 11.3.4 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five (5)days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received, 11.3.5 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five (5) days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten(10) days after the date of the grievance is received. 11.4 General Provisions, An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA, the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility, Absence from work shall be approved only if it does not cause disruption to District operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.4.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.4.2 Resolution maybe agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure. This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten (10)days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten (10) days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5)steps, with an approximate 5.0% difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pa v— Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 5 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1) step base-building salary increase until earning placement at step five (5). 13.3.1.2 Ineligible- Employees who are placed on a Performance Improvement Plan (PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program: The performance management program includes three(3)rating categories(exceeds, proficient, needs improvement)for performance appraisals. 13.3.2 Development Pay—Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: • Education—Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive$20.76 per pay period for an associate degree and $41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License—Eligible employees who obtain or who have obtained a District approved certification or license will receive$7.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at$22.86 per pay period. 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at$64.39 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 2014, employees under this Agreement will receive salary range adjustments at a flat rate of 2.0% 13.4.2 Effective the first pay period in July 2015, employees under this Agreement will receive salary range adjustments at a gat rate of 2.0%. ARTICLE 14. - SEVERANCE PAY 14.1 Employees are expected to give a minimum of two (2)weeks written notification when terminating employment with the District, Except for disciplinary cause, when a full-time employee is terminated by action of the District, the employee shall be notified in writing two (2)weeks prior to the effective separation date. In the event the District does not give such notification, the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time, regular employees shall be entitled to eight(8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees, and employees who are separated for cause, are not eligible for severance pay under any circumstances. OCEA—Administrative/Clerical MOU July 1,2014 to June 30,2016 Page 6 ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by the District as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half(1.5)limes their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay. When a holiday occurs on an employee's regular scheduled day off, the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50), HOLIDAY New Years Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2 Employees may elect one (1)day during each year as a"Floating Holiday". New employees shall be granted a "Floating Holiday"on a pro rate basis in the first calendar year of service per the following table. Hire Date Percent Im Quarter(January-March) 100% 2 Quarter(April-June) 75% 3 Quarter(July-September) 50% 4 Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the year it is granted. Every effort will be made to approve an employee's request for a"Floating Holiday"off providing sufficient notice is given. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 7 ARTICLE 17. - HOURS OF WORK 17.1 For record keeping and accounting purposes, the"workweek"for full-lime employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80 schedule), five 8-hour days each workweek(10/80), four 10-hour days each workweek (8180), or three 12-hour days and one 4- hour day each workweek(7180). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 The District may, at its sole discretion, change an employee's work schedule with thirty(30) days written notice to the affected employee. ARTICLE 18. - CALL-BACK PAY 18A When an employee is called back to work by District management without prior notice, and the employee has completed his or her normal work shift and left the work station, or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift, the employee shall receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually worked, shall be paid at the rate of one and one half times the regular hourly rate. Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19. -STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work. Standby assignments shall first be made on a voluntary basis. A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced, in alphabetical order, on a rotating basis. In the event that no one volunteers, the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis. An employee placed on standby shall be compensated at the rate of three hundred forty- five(345)dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20.- INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date. An open enrollment period shall be held annually. 20.3 Medical Reooener The District and OCEA agree to reopen this Agreement at the beginning of the month following ratification to discuss the transition from Anthem to Blue Shield through California State Association of Counties—Excess Insurance Authority (CSAC-EIA), or to another carrier directly, and varied plan design changes in order to mitigate excise taxation in 2018. Potential strategies for consideration include, but are not limited to,the following: plan design changes to office and specialist copays, emergency room copays, plan deductibles and contribution rates; and alternative plan offerings such as a high deductible health plan with health savings account funding. 20.3.2 The parties agree that any reopener shall be subject to Government Code Section 3505.4 and case law, including PERE, decisions which interpret that provision. 20A Medical Insurance 20.4.1 The District will provide medical health insurance coverage through a Health Maintenance OCEA—Administrative/Clerical MOU July 1, 2014 to June 30,2016 Page 8 Organization(HMO) medical insurance plan and a Preferred Provider Organization (FPO) medical insurance plan, until such time that the parties agree to changes through the medical reopener in Section 20.3. 20.4.2 Regular. full-time employees. 20.4.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80% of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO and PPO medical plans. Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.5 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.6 Short Term Disability The District shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI) program for up to twenty-six (26)weeks following a fourteen (14) calendar day waiting period. 20.7 Long Tenn Disability 20.7.1 The District shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five(5) years of service. 20.7.2 For participants age 64 and younger, the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older, the maximum period of payment is specified. The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. 20.7.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-tenn and long-term disability benefits at the same time. An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.8 Dental Insurance The District will contribute 80% of employee only and 80%of full family premiums for dental insurance. 20.9 Vision Insurance The District shall provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.10 Retiring Employees 20.10.1 The District shall pay, for employees hired prior to July 1, 1988, two and one-half(2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.10.2 In the event the District adds additional optional insurance plans, the District's share of the premium shall be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans, the District's share of the premium shall be the same as for existing insurance plans as set forth above. OCEA—Administrative/Clerical MOU July 1,2014 to June 30, 2016 Page 9 20,10.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every year of continuous service up to a maximum of 25 years or$250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts, employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21 A Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. - OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work. The District may require the performance of overtime. In the event no qualified employee wishes to work overtime, District's management may select employees with the ability to perform the work by inverse seniority. District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40) hours in a seven (7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following twenty-six(26)weeks of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26) weeks. The"probationary period"shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. OCEA—Administrative/Clerical MOU July 1,2014 to June 30, 2016 Page 10 ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum often (10)business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period twenty-six(26)weeks after the effective date of the promotion.At any time during the promotional probationary period, an employee may be returned to his or her previous position. The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety (90)days. If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six(26)weeks after the effective dale of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay, not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. - RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System (OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1 Employees hired before September 21, 1979: The District will continue to contract with OCERS to provide the 2.5% @ 55 benefit formula(Plan G)based on the highest consecutive twelve (12) months average earnings, past and future service. 25.1,1.1 The District will continue to pay 4.5% toward the employee's contribution to OCERS for those employees who elected to make a one-time decision to remain in the Plan G program. 25.1.2 Employees hired on or after September 21, 1979 and before August 1, 2011: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula (Plan H) based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1, 2011 and before January 1,2013: The District will contract with OCERS to provide the 1.667% @ 57.5 benefit formula (Plan B) based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.3.1 The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1, 2013: The District will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U-PEPRA) based on the highest consecutive thirty-six (36) months average earnings, past and future service, 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 11 ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27,1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 1 5.85 152 In year 15 6.16 160 In year 16 8.46 188 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rats basis as set forth in District Policy. 27.1.3 Vacation leave begins after an employee has completed twenty-six(26)weeks of continuous service. After the individual's first twenty-six (26)weeks of service, his or her account will be credited with 40 hours.After that time, he or she will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27A.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition,-Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the Individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy, or to OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 12 attend to the illness or injury of a family member as hereinafter defined. Temporary employees are not entitled to sick leave benefits. 27.22 Method-Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five(3.5) hours for each biweekly pay period of continuous service(ninety-one(91) hours per year). Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three(3.0) hours for each biweekly pay period of continuous service(seventy-eight(78) hours per year), beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4 When unpaid absences occur, sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Pavoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the end of October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty(20) years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness, injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 27.2.8 General Provisions-To quality for sick leave pay, the employee must notify the District at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee's sick leave account shall be one-half hour and thereafter in one-half hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. If notified in advance, the employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for absences of ten consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. Upon return to work, a written doctor's release must be submitted to Human OCEA—Administrative/Clerical MOU July 1, 2014 to June 30,2016 Page 13 Resources- For absences of one or more working days in an unpaid status, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"), the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called forjury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor. To be entitled to receive regular pay for such jury leave, the employee must report for work at the District for time not actually retained on jury unless there is less than%of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27.4.1 Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness, except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness, shall, upon approval of an Online time off request, be entitled the time necessary to comply with such subpoena, provided any fees received for such service, exclusive of mileage, are submitted to the District for deposit in the General Fund of the District. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one(1)year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30) days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17)calendar days per year, although the employee may, at his or her Option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system, any full-time employee, whether probationary or regular, shall receive a maximum of thirty-six(36) hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father, step- OCFA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 14 father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child,adopted child, step-child, child of a domestic partner, grandchild, grandparent,foster parent,foster child, legal guardian, or any family member with whom the employee resides. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of service 5-9 10-14 15- 19 20-24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.2 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.2.1 Supplemental Leave may be used in one-quarter(0,25) hour increments. 27.7.2.2 Any unused Supplemental Leave, within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.2.3 Any unused Supplemental Leave, within the fiscal year granted, is not subject to cash out or eligible for any mandatory payout. 27.7.2.4 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.2.5 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Hiref ransfer Date Percent July—September 100% October—December 75% January—March 50% April—June 25% ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2 Using the prescribed forms, approved by District management, any full-time, including probationary, or part-time employees with at least fdty-two(52)weeks of service and at least twelve hundred fifty (1,250) hours of service, may be granted an FMLA or CFRA leave-of-absence without pay, not to exceed twelve (12) weeks in a rolling twelve(12) month calendar period.A"rolling"twelve(12) month period is measured backward from the date the employee uses the leave. A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5)consecutive working days, or for absences of ten(10)working days or more when using paid sick leave accruals. OCEA—Administrative/Clerical MOU July 1,2014 to June 30, 2016 Page 15 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may be used for the care of the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild,grandparent, foster parent, legal guardian, or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA Leave. FMLA leave may be used for: 28.4.1.1 The birth of a child or to care for a newborn of an employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child; 28.4.1.3 The rare for the employee's father, step-father,father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband,wife, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides, who has a serious health condition, as defined in the Act; 28A.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her positron, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin'service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single twelve(12) month period. 28 4.2 CFRA Leave. CFRA Leave may be used for: 28.4.2.1 The same purposes as FM LA Leave, including the care of a domestic partner or child of a domestic partner, and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy, 2) leave due to a qualifying exigency, or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, the District requests thirty(30) days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition, the District may require certification by the employee's attending physician in accordance with Department of OCEA-Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 16 Labor(DOL) regulations. 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave, the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full, within sixty(60)days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g., layoff), in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve(12) weeks FMLA or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28472 CFRA Leave. Married employees and employees in domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA leave in a rolling twelve(12) month calendar period for the care of a parent or newly born or placed child. 28.5 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full, within sixty(60)days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment, 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation,sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA)and there is not an alternative position, or the employee's restrictions are not compatible with an alternative position, or the employee is not willing to return to work,the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible,or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee's file will indicate the employee left for personal reasons. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 17 28,6.4 Bridge of Service If an employee is dismissed per Section 28.6.3, and then is rehired to a position within the District within one(1)year, the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law shall govern. ARTICLE 29. - CLASSIFICATION STUDIES 29.1 OCSD will include a representative from OCFA to participate as a partner in the agency-wide classification and compensation study. 29.2 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process, therefore, classifcation study requests shall be submitted October 1"for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.3 Y-Rating 29.3.1 All classification study findings regarding existing classifications are subject to approval by the General Manager: findings recommending a new job classification range are subject to approval by the District's Board of Directors.The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately fallowing authorization by the Board. 29.3.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated)in accordance with the following table: Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years OCFA —Administrative/Clerical MOU July 1, 2014 to June 30,2016 Page 18 29.3.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements, organizational structure or"bumping"associated with layoffs. Y- rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.3.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the tern of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.4 Z-Ralino 29.4.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 294.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30. - DRIVER'S LICENSE 30A Employees who are required by the District to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion, an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A& B licenses that are specifically required by the District. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant, budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2002. 31.3 If, in the sole discretion of District management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function,job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five (5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 19 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35A Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty (80) consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one(81), and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources, or designee. The eighty(80) hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank,) ARTICLE 37. - PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, including home address, telephone number and person to contact in an emergency. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 20 ARTICLE 38. - BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2,which are designated for use by employee groups to post notices to District employees, provided that: (a)no controversial matter which is critical of or derogatory to the District, its employees, officers or Directors may be posted; (b) nothing posted by the District may be removed; (c)the OCEA shall remove its notices after a reasonable length of time; and(d)only a reasonable number of notices shall be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40. - USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources, or designee, for the purpose of holding meetings, to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41,1 The District and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each parry had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore, the District and the OCEA, for the term of this Agreement, except as otherwise provided herein, each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. - IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen (14)calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse procedures are: 43.3.1 Mediation: If the parties mutually agree to submit the dispute to the Slate Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred casts shall be mutually shared by the District and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 21 Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. -SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any stale or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement,or impose additional obligations on the District, the District and OCFA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1 The District shall provide and maintain ten(10)uniform pants and shirts, which may include the name of the employee and District's seal, at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are Issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion, as determined by District management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members. The District may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation(DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce,and Is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3 District's Substance Abuse Policy 45.3.1. Any employee may be subject to discipline, up to and including termination,for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. - DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be fled by the end of the pay period prior to the period for which the deduction is requested. 46.2 The District shall provide the OCFA a quarterly list of the names of those employees for whom it has made deductions. In addition, the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) OCFA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 22 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES 48A During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, the District agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whale or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION 51.1 Voluntary written termination of employment with the District is irrevocable after seventy-two (72) hours from the receipt of the resignation, except by approval of the Director of Human Resources, or designee. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53A Orange County Employees Association(OCEA) and the Orange County Sanitation District(OCSD) hereby agree to meet within two(2)months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD. Absent mutual agreement regarding the structure and process of a Labor Management Committee, the parties will defer discussions to the time when a successor MOU is raised. OCEA—Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 23 SIGNATURE PAGE 2014-2016 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ADMINISTRATIVE AND CLERICAL UNIT Executed: OCEA ADMINIST ATIVE &CLERICAL UNIT ORANGE COUNTY SANITATION DISTRICT 8oGutierrez, Labor Re at o s Representative Steve Filarsky, Chief Negotiator oshua Boudreaux, Labor Relation James Herberg, General Manager Representative (71r e� hea �MBea Ic t ,Administrative >t Robert P. Ghirelli,Assistant General Manager anel Roberts, Administrative Assistant Richard Spencer, Human Resources Manager Andrew Nau, Principal Human Resources Analyst Stephanie Good, Human Resources Analyst OCEA-Administrative/Clerical MOU July 1, 2014 to June 30, 2016 Page 24 Exhibit A ADMINISTRATIVE AND CLERICAL UNIT Effective Effective Pay 11Jul-14 10.1ul-16 Classification Grace MIN MAX MIN MAX Executive Assistant 69 $34,89 $42.41 $35.59 $43.26 Administrative Assistant 67 $33.20 S40.35 $33.86 $41.16 ContwlslPurchasing Assistant 67 $33,20 $40.35 $33.86 S41.16 Payroll Technician 67 $33.20 S40.35 $33.86 $41.16 Graphics Coordinator 66 $32.40 S39.38 $33,05 $40,17 Lead Storekeeper 62 $29.34 $35.67 $29,93 $36.38 Accounting Assistant It 58 $26.58 $32.31 $27.11 $32.96 Senior Storekeeper 58 $26.56 $32.31 $27.11 $32.96 Program Assistant 56 $25.31 $30.75 $25.82 $31.37 Accounting Assistant 1 54 $24.08 $29.26 $24.56 $29,85 Storekeeper 52 $22.93 $27.So $2339 $28.44 Offrcz Assistant 50 $21 82 Us 52 $22.26 $27.05 OCEA-Administrative/Clerical MOU July 1, 2014 to June 30,2016 Page 25 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT July 1, 2014 through June 30, 2016 TABLE OF CONTENTS ARTICLE1.-RECOGNITION................................................................................................................................1 ARTICLE2. -DURATION.......................................................................................................................................1 ARTICLE 3. -SUCCESSOR AGREEMENT...............................................................................I...........................1 ARTICLE4. -OCEA ACCESS...............................................................................................................................1 ARTICLE 5. -OCEA RIGHTS.................................................................................................................................2 ARTICLE 6.-DISTRICT RIGHTS.........................................................................................................................2 ARTICLE 7.-NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE 8. -SMOKE-FREE WORK ENVIRONMENT.........................................................................................2 ARTICLE9. -SAFETY...........................................................................................................................................2 ARTICLE 10. -DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11. -GRIEVANCE PROCEDURE..........................................................................................................4 ARTICLE 12.-PROBLEM SOLVING PROCEDURE............................................................................................5 ARTICLE 13.-SALARY ADJUSTMENTS AND COMPENSATION.....................................................................5 ARTICLE14.-SEVERANCE PAY.........................................................................................................................6 ARTICLE 15. -DEFERRED COMPENSATION.....................................................................................................7 ARTICLE16. -HOLIDAYS.....................................................................................................................................7 ARTICLE17.-HOURS OF WORK.......................................................................................................................8 ARTICLE 18. -CALL-BACK PAY..........................................................................................................................8 ARTICLE 19. -STANDBY PAY..............................................................................................................................a ARTICLE20.-INSURANCE.................................................................................................................................8 20.3 MEDICAL INSURANCE_..............................................................................................................................8 20.4 LIFE INSURANCE............_. .......................................................................................................................9 20.5 SHORT TERM DISABILITY..........................................................................................................................9 20.6 LONG TERM DISABILITY............................................................................................................................9 20.7 DENTAL INSURANCE.................................................................................................................................9 20.8 VISION INSURANCE...................................................................................................................................9 20.9 RETIRING EMPLOYEES..............................................................................................................................9 ARTICLE 21.-REIMBURSEMENT ACCOUNT..................................................................................................10 21.2 GROUP INSURANCE PREMIUMS........................................ ..................... ...._.................... ........ ............10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT._..............._....._........_.._...........,......................._..............10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT............................................................................-................10 ARTICLE 22.-OVERTIME...................................................................................................................................10 ARTICLE 23.-PROBATIONARY PERIOD.........................................................................................................10 ARTICLE 24.-PROMOTIONS.............................................................................................................................11 ARTICLE 25.-RETIREMENT..............................................................................................................................11 ARTICLE 26.-SHIFT DIFFERENTIAL................................................................................................................12 ARTICLE 27. -LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE................................................................................................................................ 12 27.2 SICK LEAVE.....I.,.,,................................................. ..... ... .I.... ...................... .................................12 27.3 JURY DUTY LEAVE..................................................................................................................................14 27.4 WITNESS LEAVE.....................................................................................................................................14 27.5 MILITARY LEAVE....-...............................................................................................................-..............14 27.6 BEREAVEMENT LEAVE............................................................................................................................14 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................15 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY......................................................................................15 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................16 28.4 PERMISSIBLE USES................................................................................................................................16 28.5 GENERALLEAVE....................................................................................................................................17 28.6 RETURN TO WORK POLICY.....................................................................................................................17 28.7 COMPLIANCE WITH LAW..........................................................................................................................18 ARTICLE 29.-CLASSIFICATION STUDIES........................................................................I.................I............18 ARTICLE 30. -DRIVER'S LICENSE.....................................................................................I..............................19 ARTICLE 31. -LAYOFF PROCEDURE...............................................................................................................19 ARTICLE 32. -LIGHT DUTY................................................................................................................................20 ARTICLE 33. -MEDICAL EXAMINATION...........................................................................................................20 ARTICLE 34. -MILEAGE ALLOWANCE.............................................................................................................20 ARTICLE35.-ACTING PAY...............................................................................................................................20 ARTICLE36..........................................................................................................................................................20 OCEA-Technical Services MOU July 1, 2014 to June 30, 2016 Pagel ARTICLE 37. -PERSONNEL FILES....................................................................................................................20 ARTICLE 38.— BULLETIN BOARDS..................................................................................................................21 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS..........................................................21 ARTICLE 40. - USE OF DISTRICT FACILITIES..................................................................................................21 ARTICLE 41. -SCOPE OF BARGAINING...........................................................................................................21 ARTICLE 42. -IMPASSE PROCEDURES...........................................................................................................21 ARTICLE 43. -SEVERABILITY...........................................................................................................................22 ARTICLE44. - UNIFORMS..................................................................................................................................22 ARTICLE 45.-SUBSTANCE ABUSE POLICY...................................................................................................22 ARTICLE 46.-DUES DEDUCTIONS...................................................................................................................22 ARTICLE47..........................................................................................................................................................22 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES................................................................................23 ARTICLE49..........................................................................................................................................................23 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................23 ARTICLE51.-RESIGNATION ............................................................................................................................23 ARTICLE52..........................................................................................................................................................23 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE..........................................................................24 SIGNATUREPAGE..............................................................................................................................................24 EXHIBITA............................................................................................................................................................25 OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page ii MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT In accordance with the provisions of California Government Code Sections 3500, at seq., and Resolution No. 75-127 of the Joint Board of Directors, the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA)for the Technical Services Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 2014, is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association, referred to hereinafter as"OCEA." 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit"A" (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by the District. ARTICLE 2. - DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30, 2016,This Agreement shall act as a bar to the raising of the question of representation during its term,except that the question of representation may be raised during the period between sixty(60) and ninety(90)days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement prior to the expiration dale of this Agreement. ARTICLE 4. - OCEA ACCESS 4.1 An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations,or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. OCEA—Technical Services MOU July 1, 2014 to June 30, 2014 Page 1 ARTICLE 5. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. - DISTRICT RIGHTS 6,1 District inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. District rights include, but are not limited to, the exclusive right to consider the merits, necessity or organization of any service or activity provided by law, or administrative order, determine the mission of its constituent departments, commissions and boards; set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards; direct its employees; take disciplinary action for proper cause; layoff employees from duty because of lack of work of lack of funds; maintain the efficiency of District operations; determine the methods, means and personnel by which District operations are to be conducted; determine the content of job classifications; classify and reclassify positions; take all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law, or other legal sources, except to the extent that such authority is explicitly waived by the express terms of this agreement. District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. To the extent required by law or by the District's rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to marital status, handicap, medical condition, status as a disabled veteran, age or citizenship. ARTICLE B. - SMOKE-FREE WORK ENVIRONMENT 8A The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families, smoking is not acceptable within District facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of the District, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit: verbal reprimand, written reprimand, suspension without pay', reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10.4 A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail, which shall be the date of issuance, 10.5 The Notice of Intent shall contain the following: (1)a description of the disciplinary action intended and the effective date of the action, (2)the reasons for the proposed action;(3) a copy of the charges and materials upon which the action is based; and, (4)a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action, the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, the District shall notify the employee in writing of the action that shall betaken. Such action may not involve discipline more severe than that described in the Notice of Intent; however, the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies& Procedures Manual. 10.7 Dismissal shall be preceded by at least one (1)written reprimand, except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of District property or funds,fighting on the job, insubordination, acts endangering people or property, or other serious misconduct. The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten (10)business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources, or designee, shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent, The decision of the General Manager shall be final. 10.9 Disciplinary action documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee's personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 3 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies(for example, reclassifications, "bumping"associated with layoffs, reasonable accommodation)shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure. Grievances brought by two (2) or more employees, and concerning the same incident, issue, or course of conduct,or multiple grievances brought by the same employee may, upon mutual agreement of the District and the OCEA, be consolidated for the purposes of this procedure. 11.3 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.3.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within five (5)days of the occurrence of the event giving rise to the complaint, or within five(5)days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within five (5)days. 11.3.2 Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee. This request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The written grievance must. a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected, c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested; and e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.3.2.1 The Division Manager, or designee, shall respond in writing to the employee within ten (10) days after the date the grievance is received. 11.3.3 Step 3, If a grievance is not settled under Step 1 or 2, it may be presented to the employee's Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by the District within five(5) days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be filed with the Director of Human Resources, or designee. The employee's Department Director, or designee, shall respond in writing to the employee within ten (10)days after the date the grievance is received. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 4 11.3.4 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five (5)days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.3.5 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five(5)days from the date the Step 4 finding was issued. The General Manager, or designee,shall respond in writing to the employee within ten(10) days after the date of the grievance is received. 11.4 General Provisions: An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA,the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility. Absence from work shall be approved only if it does not cause disruption to District operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.4A Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11.4.2 Resolution may be agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure, This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible, The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten(10)days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten (10)days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5) steps, with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay— Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 5 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one (1) step base-building salary increase until earning placement at step five (5). 13.3.1.2 Ineligible- Employees who are placed on a Performance Improvement Plan (PIP) due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program. The performance management program includes three(3) rating categories(exceeds, proficient, needs improvement)for performance appraisals. 13.3.2 Development Pay- Employees under this Agreement will be eligible for Development Pay. Development Pay is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient yearend performance appraisal to be eligible for the following Development Pay types: • Education-Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive $20.76 per pay period for an associate degree and $41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License-Eligible employees who obtain or who have obtained a District approved certification or license will receive$7.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. The maximum amount of certification/license pay for any combination of certificates and/or licenses is fixed at $22.86 per pay period, 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at$64.39 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13A Salary Range Adiustments 13.4.1 Effective the first pay period in July 2014, employees under this Agreement will receive salary range adjustments at a flat rate of 2.0%, 13.4.2 Effective the first pay period in July 2015, employees under this Agreement will receive salary range adjustments at a flat rate of 2.0%. ARTICLE 14. - SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause, when a full-time employee is terminated by action of the District, the employee shall be notified in writing two(2)weeks prior to the effective separation date. In the event the District does not give such notification, the employee shall be entitled to severance pay in accordance with the formula set forth below. 14.1.1 Full-time, regular employees shall be entitled to eight(8) hours pay for each full Calentlar month of continuous employment not to exceed one hundred sixty(160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees and employees who are separated for cause, are not eligible for severance pay under any circumstances. OCEA-Technical Services MOU July 1, 2014 to June 30, 2016 Page 6 ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements,and in accordance with all guidelines for voluntary participation established by District management. ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by the District as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts. When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half(1.5)times their regular hourly rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay. When a holiday occurs on an employee's regular scheduled day off,the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50) hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty (50). HOLIDAY New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2 Employees may elect one(1)day during each year as a"Floating Holiday". New employees shall be granted a"Floating Holiday"on a pro rate basis in the first calendar year of service per the following table: Hire Date Percent Im Quarter(January-March) 100% 2m Quarter(AprikJune) 75% V Quarter(July-September) 50% Wn Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the year it is granted. Every effort will be made to approve an employee's request for a "Floating Holiday"off providing sufficient notice is given. OCEA—Technical Services MOU July 1,2014 to June 30,2016 Page 7 ARTICLE 17. - HOURS OF WORK 17.1 For record keeping and accounting purposes, the"workweek"for full-time employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek (9/80 schedule), five 8-hour days each workweek(10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4- hour day each workweek(7180). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 The District may, at its sole discretion, change an employee's work schedule with thirty (30) days written notice to the affected employee. ARTICLE 18. - CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice, and the employee has completed his or her normal work shift and left the work station, or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift, the employee shall receive a minimum of three hours of call back pay. The three hours minimum,whether or not actually worked, shall be paid at the rate of one and one half times the regular hourly rate. Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19. - STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work. Standby assignments shall first be made on a voluntary basis. A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced, in alphabetical order, on a rotating basis. In the event that no one volunteers, the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis.An employee placed on standby shall be compensated at the rate of three hundred forty- five (345)dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20. -INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following dale of hire, regardless of hire date. An open enrollment period shall be held annually. 20.3 Medical Reooener The District and OCEA agree to reopen this Agreement at the beginning of the month following ratification to discuss the transition from Anthem to Blue Shield through California State Association of Counties—Excess Insurance Authority(CSAC-EIA), or to another carrier directly, and varied plan design changes in order to mitigate excise taxation in 2018. Potential strategies for consideration include, but are not limited to, the following: plan design changes to office and specialist cepays, emergency room copays, plan deductibles and contribution rates; and alternative plan offerings such as a high deductible health plan with health savings account funding. 20.3.2 The parties agree that any reopener shall be subject to Government Code Section 3505.4 and case law, including PERB, decisions which interpret that provision. 20.4 Medical Insurance 20.4.1 The District will provide medical health insurance coverage through a Health Maintenance OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 8 Organization (HMO) medical insurance plan and a Preferred Provider Organization (PPO) medical insurance plan, until such time that the parties agree to changes through the medical reopener in Section 20.3. 20.4.2 Reoular, full-time employees: 20.4.2.1 The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee+1 dependent and full family premiums for the HMO and PPO medical plans, Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums. Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 205 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.6 Short Term Disability The District shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI) program for up to twenty-six(26) weeks following a fourteen (14)calendar day wailing period. 20.7 Long Term Disability 20.7.1 The District shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 05, following a 90-day waiting period of continuous disability, at such time that an employee completes five(5) years of service. 20.7.2 For participants age 64 and younger, the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older, the maximum period of payment is specified. The specified periods and additional information about coverage is included in the District's long-lens disability plan contract accession on the intranet. 20.7.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-term and long-term disability benefits at the same time. An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.8 Dental Insurance The District will contribute 80% of employee only and 80%of full family premiums for dental insurance. 20.9 Vision Insurance The District shall provide a vision insurance plan for regular, full-lime employees and eligible dependents. 20.10 Retiring Employees 20.10.1 The District shall pay, for employees hired prior to July 1, 1988, two and one-half(2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.10.2 In the event the District adds additional optional insurance plans, the District's share of the premium shall be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans, the District's share of the premium shall be the same as for existing insurance plans as set forth above. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 9 20.10.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every year of continuous service up to a maximum of 25 years or$250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-lax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the Flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts, employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not otherwise covered by his or her medical insurance. 21.4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. - OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work. The District may require the performance of overtime. In the event no qualified employee wishes to work overtime, District's management may select employees with the ability to perform the work by inverse seniority. District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40) hours in a seven (7) day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the dale of hire and extending to at least the first day of the pay period following twenty-six(26) weeks of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure, 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26) weeks. The"probationary period" shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 10 ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum of ten (10) business days. Employees must apply during the period of posting, Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period twenty-six(26)weeks after the effective date of the promotion. At any time during the promotional probationary period, an employee may be returned to his or her previous position. The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety (90)days. If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six(26) weeks after the effective date of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay, not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever Is greater. ARTICLE 25. - RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System (OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1 Employees hired before September 21, 1979: The District will continue to contract with OCERS to provide the 2.5% @ 55 benefit formula(Plan G) based on the highest consecutive twelve(12) months average earnings, past and future service. 25.1.1.1 The District will continue to pay 4.5%toward the employee's contribution to OCERS for those employees who elected to make a one-time decision to remain in the Plan G program. 25.1.2 Employees hired on or after September 21, 1979 and before August 1, 2011: The District will continue to contract with OCERS to provide the 2.5% @ 55 benefit formula(Plan H) based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.2.1 The District will continue to pay 3.5%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1, 2011 and before January 1, 2013: The District will contract with OCERS to provide the 1.667% @ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1, 2013: The District will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U - PEPRA) based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25,1.4.1 The District will pay 0% of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 11 ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27,1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.89 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in District Policy. 27.1.3 Vacation leave begins after an employee has completed twenty-six(26)weeks of continuous service. After the individual's first twenty-six(26)weeks of service, his or her account will be credited with 40 hours. After that time, he or she will accrue vacation hours consistent with the above chart. Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave Is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December date, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition,- Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy, or to OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 12 attend to the illness or injury of a family member as hereinafter defined. Temporary employees are not entitled to sick leave benefits. 27.2.2 Method-Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five(3.5) hours for each biweekly pay period of continuous service (ninety-one(91) hours per year). Full-time employees hired on or after November 27, 1981,accrue paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78)hours per year), beginning with the first day of employment.27.2.3 Part-time employees accrue sick leave on a pro-rats basis as set forth in applicable District Policy, 27.2.4 When unpaid absences occur, sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Pavoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the end of October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 3% 101-240 25% 241-560 35% Over 560(mandatory) 50% 27.2.E Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty(20) years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty(20)years of service will be paid at the seventy-five percent(75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness, injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband, wife, child, grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 27.2.8 General Provisions-To qualify for sick leave pay, the employee must notify the District at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee's sick leave account shall be one-half hour and thereafter in one-half hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. If notified in advance, the employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for absences of ten consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. Upon return to work, a written doctor's release must be submitted to Human Resources. For absences of one or more working days in an unpaid status, a request for leave OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 13 and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act("FMLA")or the California Family Rights Act("CFRA"), the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor. To be entitled to receive regular pay for such jury leave, the employee must report For work at the District for time not actually retained on jury unless there is less than %of their regular shift remaining. Employees are not compensated for jury duty occurring on scheduled days off. 27.4 Witness Leave 27,4.1 Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses,which subpoena compels his or her presence as a witness, except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness, shall, upon approval of an online time off request, be entitled the time necessary to comply with such subpoena, provided any fees received for such service, exclusive of mileage, are submitted to the District for deposit in the General Fund of the District. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the sate of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one(1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty (30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment. An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen (17)calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system, any full-time employee, whether probationary or regular, shall receive a maximum of thirty-six(36) hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father, step- father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, OCEA—Technical Services MOU July 1, 2014 to June 30,2016 Page 14 husband, wife, domestic partner, biological child, adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5-9 10- 14 15-19 20-24 25+ Supplemental Leave Hours 1 5 10 15 20 25 27.7.2 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.2.1 Supplemental Leave may be used in one-quarter(0.25) hour increments. 27.7.2.2 Any unused Supplemental Leave,within the fiscal year granted,will not be carried over to the next fiscal year. 27.7.2.3 Any unused Supplemental Leave,within the fiscal year granted, is not subject to cash out or eligible for any mandatory payout. 27.7.2.4 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.2.5 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rata basis per the following schedule: Him/Transfer Dale Percent July—September 100% October—December 75% January—March 50% April—June 25% ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as staled below, employees shall not receive compensation during an unpaid leave-of-absence, Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 28.2 Using the prescribed forms, approved by District management, any full-time, including probationary, or part-time employees with at least fifty-two(52)weeks of service and at least twelve hundred fifty(1,250) hours of service, may be granted an FM LA or CFRA leave-of-absence without pay, not to exceed twelve (12)weeks in a rolling twelve (12) month calendar period. A"rolling"twelve (12)month period is measured backward from the date the employee uses the leave. A request for leave of absence without pay most be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5) consecutive working days, or for absences of ten (10) working days or more when using paid sick leave accruals. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 15 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may be used for the care of the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, step-child, foster child, legal ward, child of a domestic partner, grandchild,grandparent, foster parent, legal guardian, or any family member with whom the employee resides. 28A Permissible Uses 28.4.1 FMLA Leave. FMLA leave may be used for: 28.4.1 A The birth of a child or to care for a newborn of an employee; 28.4.1.2 The placement of a child with an employee in connection with the adoption or foster care of child; 28.4.1.3 The care for the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, biological child, adopted child, stepchild, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin" service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six(26) weeks of unpaid leave during a single twelve (12)month period. 28.4.2 CFRA Leave. CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partner, and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,. 2) leave due to a qualifying exigency, or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, the District requests thirty (30)days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition, the District may require certification by the employee's attending physician in accordance with Department of OCFA-Technical Services MOU July 1, 2014 to June 30, 2016 Page 16 Labor(DOL) regulations, 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave, the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not or leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full,within sixty(60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g„ layoff), in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve (12) weeks FMLA or CFRA Leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28.4.7.2 CFRA Leave. Married employees and employees In domestic partnerships will be limited to a combined total of twelve(12)weeks CFRA leave in a rolling twelve(12) month calendar period for the care of a parent or newly born or placed child. 28.5 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full,within sixty(60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions (with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA)and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADAIFEHA) and there is not an alternative position, or the employee's restrictions are not compatible with an alternative position, or the employee is not willing to return to work, the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee's file will indicate the employee left for personal reasons. 28,6.4 Bridoeof Service OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 17 If an employee is dismissed per Section 28.6.3, and then is rehired to a position within the District within one(1) year, the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employees original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-cf-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law shall govern. ARTICLE 29. -CLASSIFICATION STUDIES 29.1 OCSD will include a representative from OCEA to participate as a partner in the agency-wide classification and compensation study. 29.2 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process; therefore, classification study requests shall be submitted October 1"for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.3 Y-Rating 29.3.1 All classification study findings regarding existing classifications are subject to approval by the General Manager; findings recommending a new job classification range are subject to approval by the District's Board of Directors. The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.3.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated) in accordance with the following table. Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years OCEA—Technical Services MOU July 1, 2014 to June 30,2016 Page 18 29.3.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements, organizational structure or"bumping"associated with layoffs. Y- rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.3.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.4 Z-Rating 29.4.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 29A.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30. - DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must nobly their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion, an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A& B licenses that are specifically required by the District. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant, budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving jab restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2001 31.3 If, in the sole discretion of District management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function,job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever passible. 31.4 Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 19 inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled, ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall be reimbursed at the current IRS rate. ARTICLE 35. - ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty (80)consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one(81), and continues until the assignment ends or the six (6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources,or designee. The eighty(80) hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37A Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, including home address, telephone number and person to contact in an emergency. OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 20 ARTICLE 38. - BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2, which are designated for use by employee groups to post notices to District employees, provided that: (a) no controversial matter which is critical of or derogatory to the District, its employees, officers or Directors may be posted; (b) nothing posted by the District may be removed; (c)the OCEA shall remove its notices after a reasonable length of time; and (d)only a reasonable number of notices shall be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39.1 A maximum of three(3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee,with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40. - USE OF DISTRICT FACILITIES 40.1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources, or designee, for the purpose of holding meetings, to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and the OCEA, for the term of this Agreement, except as otherwise provided herein, each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. - IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process, the parry so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen (14) calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse Procedures are: 43.3.1 Mediation: If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable, The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 21 Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. - SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on the District, the District and OCEA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44A The District shall provide and maintain ten(10) uniform pants and shirts,which may include the name of the employee and District's seal, at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion, as determined by District management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members. The District may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 46.2 Department of Transportation (DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti- Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40. 45.3 District's Substance Abuse Policv 45.3.1 Any employee may be subject to discipline, up to and including termination, for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. - DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be filed by the end of the pay period prior to the period for which the deduction is requested. 46.2 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition, the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) OCEA—Technical Services MOU July 1, 2014 to June 30, 2016 Page 22 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES 45.1 During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, the District agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. - WORKPLACE VIOLENCE AND WEAPONS POLICY 50A The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION 51.1 Voluntary written termination of employment with the District is irrevocable after seventy-two(72) hours from the receipt of the resignation, except by approval of the Director of Human Resources, or designee. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association (OCEA)and the Orange County Sanitation District(OCSD) hereby agree to meet within two (2) months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD. Absent mutual agreement regarding the structure and process of a Labor Management Committee, the parties will defer discussions to the time when a successor MOU is raised. OCEA—Technical Services MOU July 1, 2014 to June 30,2016 Page 23 SIGNATURE PAGE 2014-2016 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE TECHNICAL SERVICES UNIT Executed: OCEA TECHNICAL SERVICES UNIT ORANGE COUNTY SANITATION DISTRICT Bo Gutierrez, Labor Relations Representative Steve Filarsky, Chief Negotiator c oshua oudreaux, Labor Relations James Herberg, General Manager Represe tive Dean nPficb, SbuFrcWdhtroI Insp for II Robert P. Ghirelli, Assistant General Manager Richard Spencer, Human Resources Manager Andrew Nau, Principal Human Resources Analyst Stephanie Good, Human Resources Analyst OCEA-Technical Services MOU July 1, 2014 to June 30, 2016 Page 24 Exhibit A TECHNICAL SERVICES UNIT Effective Effective Pay 11-Ju1-14 10Jul-15 Classification Grads MIN MA% MIN I MAX Data Management Technician II 75 WAS $49,17 $41.26 $50.15 Source Control Inspector II 73 $38.48 $46 79 $39.25 547.73 Data Management Technician 1 71 $36,63 $44.52 $37,36 545.41 Source Control Inspector 1 69 $34.89 $42.41 $35.59 543.26 Information Technology Technician II 65 $31.60 $38.40 $32.23 $39.17 Environmental Technician 61 $28,62 $34.19 $29.19 $35.49 Information Tecnology Technician l 61 $28.62 $34,79 $29.19 $35.49 Laboratory Assistant 57 $2594 1 $31.54 $26.48 1 $32.1] OCEA-Technical Services MOU July 1, 2014 to June 30, 2016 Page 25 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT July 1, 2014 through June 30, 2016 TABLE OF CONTENTS ARTICLE1. - RECOGNITION................................................................................................................................1 ARTICLE2. -DURATION.......................................................................................................................................1 ARTICLE 3. -SUCCESSOR AGREEMENT................_.........................................................................................1 ARTICLE 4. -OCEA ACCESS...............................................................................................................................1 ARTICLE 5.-OCEA RIGHTS.................................................................................................................................1 ARTICLE 6.-DISTRICT RIGHTS........................................................................................................................12 ARTICLE 7.- NONDISCRIMINATION IN EMPLOYMENT....................................................................................2 ARTICLE B.-SMOKE-FREE WORK ENVIRONMENT.........................................................................................2 ARTICLE9.-SAFETY...........................................................................................................................................2 ARTICLE 10. -DISCIPLINE AND DISMISSAL......................................................................................................3 ARTICLE 11. -GRIEVANCE PROCEDURE..........................................................................................................4 ARTICLE 12. -PROBLEM SOLVING PROCEDURE............................................................................................5 ARTICLE 13. -SALARY ADJUSTMENTS AND COMPENSATION.....................................................................5 ARTICLE 14. -SEVERANCE PAY.........................................................................................................................6 ARTICLE 15. -DEFERRED COMPENSATION.....................................................................................................7 ARTICLE16. -HOLIDAYS.....................................................................................................................................7 ARTICLE17.-HOURS OF WORK.......................................................................................................................8 ARTICLE 18. -CALL-BACK PAY..........................................................................................................................B ARTICLE 19.-STANDBY PAY..............................................................................................................................S ARTICLE 20.-INSURANCE.................................................................................................................................S 20.3 MEDICAL INSURANCE................................................................................................................................9 20.4 LIFE INSURANCE.......................................................................................................................................9 20.5 SHORT TERM DISABILITY..........................................................................................................................9 20.6 LONG TERM DISABILrrY............................................................................................................................9 20.7 DENTAL INSURANCE...............................................................................................................................10 20.8 VISION INSURANCE.................................................................................................................................10 20.9 RETIRING EMPLOYEES............................................................................................................................10 ARTICLE 21.-REIMBURSEMENT ACCOUNT..................................................................................................10 21.2 GROUP INSURANCE PREMIUMS...............................................................................................................10 21.3 MEDICAL CARE REIMBURSEMENT ACCOUNT............................................................................................10 21.4 DEPENDENT CARE ASSISTANCE ACCOUNT..............................................................................................10 ARTICLE 22.-OVERTIME........................................................................................................................I..........11 ARTICLE 23.-PROBATIONARY PERIOD............................_..................................................I........................10 ARTICLE 24.-PROMOTIONS.............................................................................................................................11 ARTICLE 25.-RETIREMENT..............................................................................................................................11 ARTICLE 26.-SHIFT DIFFERENTIAL................................................................................................................12 ARTICLE 27.-LEAVE-OF-ABSENCE WITH PAY..............................................................................................12 27.1 VACATION LEAVE ...................................................................................................................................12 27.2 SICK LEAVE...........................................................................................................................................13 27.3 JURY DUTY LEAVE..................................................................................................................................14 27.4 WITNESS LEAVE.....................................................................................................................................14 27.5 MILITARY LEAVE.....................................................................................................................................15 27.6 BEREAVEMENT LEAVE............................................................................................................................15 27.7 SUPPLEMENTAL LEAVE...........................................................................................................................15 ARTICLE 28.-LEAVE-OF-ABSENCE WITHOUT PAY......................................................................................16 28.3 SUBSTITUTION OF PAID LEAVE................................................................................................................16 28.4 PERMISSIBLE USES................................................................................................................................16 28.5 GENERAL LEAVE....................................................................................................................................17 28.6 RETURN TO WORK POLICY.....................................................................................................................18 28.7 COMPLIANCE WITH LAW..........................................................................................................................18 ARTICLE 29.-CLASSIFICATION STUDIES.......................................................................................................16 ARTICLE 30.-DRIVER'S LICENSE....................................................................................................................19 ARTICLE 31.-LAYOFF PROCEDURE...............................................................................................................20 ARTICLE 32.-LIGHT DUTY................................................................................................................................20 ARTICLE 33.-MEDICAL EXAMINATION...........................................................................................................20 ARTICLE 34.-MILEAGE ALLOWANCE.............................................................................................................21 ARTICLE 35.-ACTING PAY...............................................................................................................................21 ARTICLE36..........................................................................................................................................................21 OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Pagel ARTICLE 37. -PERSONNEL FILES....................................................................................................................21 ARTICLE 38.— BULLETIN BOARDS..................................................................................................................21 ARTICLE 39. -RELEASE TIME FOR MEET AND CONFER SESSIONS..........................................................21 ARTICLE 40. -USE OF DISTRICT FACILITIES..................................................................................................21 ARTICLE 41. -SCOPE OF BARGAINING...........................................................................................................21 ARTICLE 42. -IMPASSE PROCEDURES...........................................................................................................22 ARTICLE 43. -SEVERABILITY...........................................................................................................................22 ARTICLE44. -UNIFORMS..................................................................................................................................22 ARTICLE 45. -SUBSTANCE ABUSE POLICY...................................................................................................22 ARTICLE 46. -DUES DEDUCTIONS...................................................................................................................23 ARTICLE47..........................................................................................................................................................23 ARTICLE 48.-PEACEFUL RESOLUTION OF DISPUTES................................................................................23 ARTICLE49..........................................................................................................................................................23 ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY...............................................................23 ARTICLE 51.-RESIGNATION ............................................................................................................................23 ARTICLE52..........................................................................................................................................................23 ARTICLE 53.-LABOR MANAGEMENT COMMITTEE........................................................................23 SIGNATUREPAGE..............................................................................................................................................24 EXHIBITA.............................................................................................................................................................25 OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page ii MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT In accordance with the provisions of California Government Code Sections 3500, at seq., and Resolution No. 75-127 of the Joint Board of Directors, the District's authorized representative has met and conferred in good faith with representatives of the Orange County Employees Association (OCEA) for the Engineering Unit. These meetings have resulted in an agreement and understanding to recommend that the employees represented by OCEA accept these terms and conditions, and that the Board of Directors adopt by Resolution the changes and additions to the wages, hours, and conditions of employment for the employees represented by OCEA as set forth in this Agreement. ARTICLE 1. - RECOGNITION 1.1 This Agreement, effective July 1, 2014, is entered into between the Orange County Sanitation District, referred to hereinafter as the"District,"and the Orange County Employees Association, referred to hereinafter as"OCEA" 1.2 The District recognizes the Orange County Employees Association as the exclusive recognized employee organization for matters within the scope of representation for the following classifications, as set forth in Exhibit"A" (attached hereto and incorporated by reference), as well as additional classes as may be added hereafter by the District. ARTICLE 2. - DURATION 2.1 This Agreement shall be binding on the District and OCEA when approved and adopted by the District's Board of Directors. This Agreement shall terminate on June 30, 2016, This Agreement shall act as a bar to the raising of the question of representation during its term,except that the question of representation may be raised during the period between sixty(60)and ninety(90) days prior to its expiration. ARTICLE 3. - SUCCESSOR AGREEMENT 3.1 The Group shall submit in writing its initial proposal for a successor agreement prior to the expiration date of this Agreement. ARTICLE 4. - OCEA ACCESS 4A An OCEA Representative shall have access to the District's facilities during working hours for the purpose of assisting Unit employees in processing grievances or investigating matters arising out of the application of provisions of this Agreement. The OCEA Representative must obtain authorization for each visit in advance from the Director of Human Resources, or designee. 4.2 The OCEA shall provide the Director of Human Resources, or designee, with a list of Representatives who are authorized to request access under this article, and shall notify the Director of any changes in that list. 4.3 OCEA access shall not interfere with the District's operations, or with the work of employees in any manner. The District reserves the right to restrict access in certain areas designated as confidential or secure. ARTICLE S. - OCEA RIGHTS 5.1 The OCEA may designate employees to act as representatives for employees covered by this Agreement. The OCEA shall furnish the Director of Human Resources, or designee with the names of employees OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 1 selected as representatives and shall update the list as necessary. An alternate representative may be designated to act in the absence of the regular representative. Employees not listed on the roster of representatives provided to the District by the OCEA may not act as representatives. 5.2 Representatives shall not perform non work-related duties on work time without the prior approval of their immediate supervisor. Neither the District nor the OCEA shall interfere with, intimidate, restrain, coerce or discriminate against employees because of the exercise or non-exercise of their rights to engage in OCEA activity. ARTICLE 6. - DISTRICT RIGHTS 6.1 District inherent rights, powers, functions, duties, responsibilities and authority related to a managerial or administrative character are reserved to the District in its exercise of management decision-making, except as specifically modified by the express provisions of this Memorandum. District rights include, but are not limited to, the exclusive right to consider the merits, necessity or organization of any service or activity provided by law, or administrative order; determine the mission of its constituent departments, commissions and boards; set standards of service, determine the procedures and standards of selection for employment and promotion; establish and implement performance standards; direct its employees; take disciplinary action for proper cause; layoff employees from duty because of lack of work or lack of funds; maintain the efficiency of District operations; determine the methods, means and personnel by which District operations are to be conducted; determine the content of job classifications; classify and reclassify positions; lake all necessary actions to carry out its mission in emergencies; and exercise complete control and discretion over its organization and the technology of performing its work. 6.2 District retains all authority and rights conferred on it by law, or other legal sources,except to the extent that such authority is explicitly waived by the express terms of this agreement. District exercise of its management rights hereunder shall not be subject to appeal or meeting and conferring, however, that the exercise of such rights does not preclude OCEA from appealing or meeting and conferring the practical consequences or impacts that District decisions have on wages, hours, and other terms and conditions of employment. ARTICLE 7. - NONDISCRIMINATION IN EMPLOYMENT 7.1 There shall be no unlawful discrimination in the application of the provisions of this Agreement with regard to race, color, religion, national origin, ancestry, sex, sexual orientation, or veteran status. To the extent required by law or by the District's rules or regulations, this provision of the Agreement shall be applied to all members of the unit without regard to marital status, handicap, medical condition, status as a disabled veteran, age or citizenship. ARTICLE 8. - SMOKE-FREE WORK ENVIRONMENT 6.1 The District endorses and supports the right of all employees to work in a healthy and safe environment free of recognized hazards. In view of the hazards associated with smoking and the potentially harmful effect it has on the health and well being of District employees and their families, smoking is not acceptable within District facilities, and may occur only in areas posted for smoking. ARTICLE 9. - SAFETY 9.1 It is the duty of the District to provide and maintain a safe place of employment. OCEA shall cooperate by encouraging all employees covered by this Agreement to perform their work in a safe manner. It is the duty of all employees covered by this Agreement, in the course of performing their assigned duties, to be alert to unsafe practices, equipment, and conditions, and to follow the safety regulations and requirements of the District, and to report any unsafe practices or conditions to their immediate supervisors. An employee shall not be required to perform work that is unsafe. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 2 ARTICLE 10. - DISCIPLINE AND DISMISSAL 10.1 Discipline may occur when any of the following actions are taken for just cause with respect to any employee in the unit: verbal reprimand, written reprimand, suspension without pay; reduction in pay, demotion to a classification with a lower maximum rate of pay or dismissal. 10.2 Dismissal, for purposes of this Article, is the separation of a non-probationary employee initiated by the District for just cause. 10.3 A Notice of Intent is not required when the disciplinary action involves a verbal reprimand or written reprimand. 10A A Notice of Intent is required and will be given to an employee whenever the disciplinary action involves a suspension without pay, a reduction in pay, a demotion to a classification with a lower pay grade, or dismissal. The notice will be given to the affected employee either by delivery in person or by Certified Mail sent to the employee's last known address. Such personal delivery or mailing shall be presumed to provide actual notice to the affected employee. The Notice of Intent shall indicate the date on which it was personally delivered or deposited in the mail,which shall be the date of issuance. 10.5 The Notice of Intent shall contain the following: (1) a description of the disciplinary action intended and the effective date of the action; (2)the reasons for the proposed action;(3)a copy of the charges and materials upon which the action is based; and, (4) a statement of the employee's right to respond, either verbally or in writing to the person initially imposing the discipline or to a District management representative with authority to make an effective recommendation on the proposed action, the person to whom any response must be directed, and the fact that such response must be received within ten (10)business days of the date of issuance of the notice. The Notice shall also advise the employee of his or her right to representation. 10.6 Prior to the effective date of the proposed disciplinary action, the employee shall be given an opportunity to respond either verbally or in writing to a management representative with authority to make an effective recommendation on the proposed action. After review of an employee's response, the District shall notify the employee in writing of the action that shall be taken. Such action may not involve discipline more severe than that described In the Notice of Intent; however, the District may reduce discipline without further notice. Further clarification of the disciplinary policies and procedures are covered in the District's Personnel Policies 8 Procedures Manual. 10.7 Dismissal shall be preceded by at least one(1)written reprimand,except in those situations in which the employee knows or reasonably should have known that the performance or conduct was unsatisfactory. Such performance or conduct may involve, but is not limited to, dishonesty, possession, use, sale or being under the influence of drugs or alcohol, theft or misappropriation of District property or funds, fighting on the job, insubordination, acts endangering people or property,or other serious misconduct. The District may substitute documented suspensions without pay for written reprimands. 10.8 If a Notice of Intent is upheld and the disciplinary action is imposed, the employee may request a post- disciplinary hearing. The request must be submitted to the Director of Human Resources, or designee, within ten If 0)business days following the effective date of the disciplinary action (for suspensions, the effective date shall be the first business day following the final day of the suspension). The Director of Human Resources,or designee, shall schedule a post disciplinary hearing with the General Manager or a hearing officer selected by the General Manager. The hearing officer may not be an employee of the District. The hearing officer will provide a written, advisory decision to the General Manager. The General Manager may uphold the disciplinary action that has been taken or may reduce such discipline without the issuance of a further Notice of Intent. The decision of the General Manager shall be final. 10.9 Disciplinary action Documentation shall be placed in an employee's personnel file in the Human Resources Department. Documentation regarding verbal and written reprimands may be removed from an employee's personnel file twenty-four(24) months subsequent to the date of issuance, provided that there has been no recurrence of a similar incident during the period. If the Director of Human Resources, or designee, agrees to remove disciplinary action documentation from an employee's personnel file, such documentation shall be retained in a separate file by the Human Resources Department for the purpose of showing that progressive discipline has been followed or in support of the District's proposed discipline. OCEA—Engineering MOU July 1, 2014 to June 30,2016 Page 3 10.10 Verbal reprimands and written reprimands may only be reviewed under this Agreement through the Problem Solving Procedure. Nothing in this article shall be construed as a waiver of any statutory or constitutional rights. 10.11 A reduction in pay or demotion to a classification with a lower pay grade that is not a result of performance deficiencies (for example, reclassifications, "bumping"associated with layoffs, reasonable accommodation)shall not be considered discipline. ARTICLE 11. - GRIEVANCE PROCEDURE 11.1 A grievance is any complaint that management has violated a specific provision of this Agreement, except that, in accordance with Article 10 above, discipline which requires a Notice of Intent may not be reviewed under this Grievance Procedure. 11.2 A grievance may be brought to the attention of the District by an individual employee within the Unit or by the OCEA. The District may not bring a grievance through this procedure. Grievances brought by two(2) or more employees, and concerning the same incident, issue,or course of conduct, or multiple grievances brought by the same employee may, upon mutual agreement of the District and the OCEA, be consolidated for the purposes of this procedure. 11.3 An employee may be self-represented or be represented by the OCEA at all steps of the Grievance Procedure, unless specifically agreed otherwise by the OCEA and the employee. The District shall provide a copy of all written grievance settlements to the OCEA. Any reference to days in this article implies business days. 11.3.1 Step 1. An employee will submit his/her complaint in writing to his/her immediate supervisor or designee within five (5)days of the occurrence of the event giving rise to the complaint, or within five (5)days from the time that the employee became aware of such event. The supervisor, or designee, shall attempt to resolve the issues surrounding the complaint, and respond in writing to the employee within five (5) days. 11,3.2 Step 2. If the grievance is not settled at Step 1, it may be submitted in writing to the employee's Division Manager, or designee. This request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1. A copy of each written communication on a grievance will be fled with the Director of Human Resources, or designee. The written grievance must: a) Identify the specific management act to be reviewed; b) Specify how the employee was adversely affected, c) List the specific provisions of the MOU that were allegedly violated and state how they were violated; d) Specify the remedy requested; and e) Provide the date of attempts at informal resolution and the name of the supervisor or individual involved. 11.3.2.1 The Division Manager, or designee, shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.3.3 Step 3. If a grievance is not settled under Step 1 or 2, it may be presented to the employee's Department Director, or designee, for review and written response. The request for formal review must be presented on a form provided by the District within five(5)days of the conclusion of Step 1 or 2, and must contain the information specified in Step 2 above. A copy of each written communication on a grievance will be fled with the Director of Human Resources, or designee. The employee's Department Director, or designee, shall respond in writing to the employee within ten If 0) days after the sate the grievance is received. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 4 11.3.4 Step 4. If the grievance cannot be resolved under Step 3, it may be presented to an Assistant General Manager, or designee, within five(5)days from the date the Step 3 finding was issued. The Assistant General Manager, or designee, shall respond in writing to the employee within ten (10)days after the date the grievance is received. 11.3.5 Step 5. Appeal to the General Manager, or designee, is the final step in the Grievance Procedure. If the grievance cannot be resolved under Step 4, it may be presented to the General Manager, or designee, within five(5)days from the date the Step 4 finding was issued. The General Manager, or designee, shall respond in writing to the employee within ten(10) days after the date of the grievance is received. 11.4 General Provisions: An employee shall be given reasonable time off without loss of pay to present and process a grievance. If an employee is represented by the OCEA, the OCEA may designate one employee to present and process the grievance. The employee representative shall be given reasonable time off without loss of pay to perform this responsibility, Absence from work shall be approved only if it does not cause disruption to District operations. However, if the time requested cannot be provided, an alternate time shall be arranged. 11.4.1 Failure of a management representative to respond within the appropriate time limit shall provide a basis for the employee appealing to the next step. If a grievance is not presented or appealed within the time limits, it shall be considered resolved on the basis of the preceding response. The Director of Human Resources, or designee, may be petitioned in writing to waive the step or time requirements provided sufficient cause exists. 11 4.2 Resolution may be agreed upon at any stage of the grievance process. However, the OCEA shall be notified prior to the resolution of any formal grievance matter. ARTICLE 12. - PROBLEM SOLVING PROCEDURE 12.1 Employees may bring problems to the attention of District managers through the Problem Solving Procedure. This Procedure was developed to encourage and facilitate the resolution of employee concerns in a responsive and fair manner, and may be used to attempt to resolve issues that may not be subjected to the Grievance Procedure. Any reference to days in this article implies business days. 12.2 Employees should discuss concerns regarding issues that are not grievable with their supervisor as soon as possible. The supervisor shall review the situation or decision, and provide a written response within five days from the date they were notified of the problem. 12.3 If the problem is not resolved to the employee's satisfaction, the employee may file a written statement concerning the problem with the Director of Human Resources, or designee, within ten (10)days of receipt of the supervisor's decision. Upon request of either party, a meeting shall be held to define issues and establish the remedies sought. The employee shall be provided a written response within ten It 0)days after his or her statement is received. Time limits may be extended for cause upon mutual consent of the parties, and the decision of the Director of Human Resources, or designee, is final. ARTICLE 13. - SALARY ADJUSTMENTS AND COMPENSATION 13.1 Each pay grade is divided into five(5) steps, with an approximate 5.0%difference between each step. 13.2 Pay increases will only apply to eligible employees in an active payroll status on the effective date of implementation. Eligible employees will not receive retroactivity if active payroll status becomes effective after the date of implementation. 13.3 Merit Pay 13.3.1 Step Increase Pay—Bargaining unit employees will be eligible for Step Increase Pay based upon receipt of year-end performance appraisal ratings issued by the assigned supervisor. Step Increase Pay will be paid according to the following: OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 5 13.3.1.1 Eligible-Employees must have a proficient year-end performance appraisal to receive a one(1)step base-building salary increase until earning placement at step five(5). 13.3.1.2 Ineligible-Employees who are placed on a Performance Improvement Plan (PIP)due to a needs improvement performance review on the year-end appraisal or who are on a PIP at the time of the year-end appraisal period will remain at their current step until the PIP is satisfactorily completed. 13.3.1.3 Performance Management Program: The performance management program includes three(3) rating categories(exceeds, proficient, needs improvement)for performance appraisals. 13.3.2 Development Pav—Employees under this Agreement will be eligible for Development Pay Development Pay Is a non-base building pay type that will be distributed in a lump-sum amount each pay period. Employees must have a proficient year-end performance appraisal to be eligible for the following Development Pay types: • Education— Eligible employees who obtain or who have obtained a degree of approved subjects at an accredited college or university will receive$20.76 per pay period for an associate degree and$41.53 per pay period for an undergraduate degree. The maximum amount of Education pay is fixed at$41.53 per pay period. • Certification/License—Eligible employees who obtain or who have obtained a District approved certification or license will receive$7.62 per pay period per certificate or license with a maximum of three(3)certificates and/or licenses. The maximum amount of certificationflicense pay for any combination of certificates and/or licenses is fixed at$22.86 per pay period. 13.3.2.1 The overall maximum Development Pay for education, certification and/or licenses is fixed at$64.39 per pay period. 13.3.2.2 Employees who are placed on a PIP due to a needs improvement performance review on the year-end performance appraisal are not eligible for Development Pay until the PIP is satisfactorily completed. 13.3.2.3 Employees who are placed on a PIP due to needs improvement performance outside the year-end appraisal will have all Development Pay suspended until the PIP is satisfactorily completed. The return of Development Pay will not be retroactive. 13.4 Salary Range Adjustments 13.4.1 Effective the first pay period in July 2014, employees under this Agreement will receive salary range adjustments at a flat rate of 2.0%. 13.4.2 Effective the first pay period in July 2015, employees under this Agreement will receive salary range adjustments at a flat rate of 2.0%. ARTICLE 14. - SEVERANCE PAY 14.1 Employees are expected to give a minimum of two(2)weeks written notification when terminating employment with the District. Except for disciplinary cause, when a full-time employee is terminated by action of the District, the employee shall be notified in writing two(2)weeks prior to the effective separation date. In the event the District does not give such notification,the employee shall be entitled to severance pay in accordance with the formula set forth below: 14.1.1 Full-time, regular employees shall be entitled to eight(8) hours pay for each full calendar month of continuous employment not to exceed one hundred sixty (160) hours pay. 14.1.2 Employees in limited term or part-time positions, probationary employees and employees who are separated for cause,are not eligible for severance pay under any circumstances. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 6 ARTICLE 15. - DEFERRED COMPENSATION 15.1 Employees may participate in the District's approved deferred compensation plan subject to IRS requirements, and in accordance with all guidelines for voluntary participation established by District management ARTICLE 16. - HOLIDAYS 16.1 The days listed below are observed by the District as holidays. Employees will receive holiday pay if their entire scheduled work shift immediately preceding and following the holiday are in a paid payroll status, meaning the employee worked those shifts or utilized paid time off in lieu of working those shifts.When an employee's work schedule requires that they work on an observed holiday, the employee will be paid at the employee's regular rate of pay for the holiday, and will also receive overtime pay at the rate of one and one half(1.5)times their regular houdy rate for all hours actually worked. Employees may also elect to receive Holiday Compensatory Time Off on an hour for hour basis rather than receive holiday pay.When a holiday occurs on an employee's regular scheduled day off, the employee will accrue compensatory time off for the amount of hours normally scheduled for that day Employees with a compensatory time off balance in excess of fifty(50)hours as of the last pay period ending in October will receive a mandatory payout for the hours that exceed fifty(50). HOLIDAY New Year's Day Lincoln's Birthday President's Day Memorial Day Independence Day Labor Day Veteran's Day Thanksgiving Day Day after Thanksgiving Day before Christmas Christmas Day Floating Holiday" 16.2 Employees may elect one(1)day during each year as a"Floating Holiday". New employees shall be granted a"Floating Holiday"on a pro rate basis in the first calendar year of service per the following table: Hire Date Percent 1 Quarter(January-March) 100% to Quarter(April-June) 75% V Quarter(July-September) 50% 4 Quarter(October-December) 0% 16.3 Employees must use the"Floating Holiday"within the year it is granted. Every effort will be made to approve an employee's request for a"Floating Holiday'off providing sufficient notice is given. OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Page 7 ARTICLE 17. - HOURS OF WORK 17.1 For record keeping and accounting purposes, the"workweek"for full-time employees is 40 hours per 168- hour period, to be paid on a biweekly payroll basis of 80 hours worked. Employee work periods may be scheduled in shifts of four 9-hour days and one 4-hour day each workweek(9180 schedule), five 8-hour days each workweek(10/80), four 10-hour days each workweek (8/80), or three 12-hour days and one 4- hour day each workweek(7/80). The starting and ending times of individual employees'workweeks may vary. 17.2 Employees shall receive ten-minute rest periods twice in a nine-hour shift, and three times for a shift of more than ten hours. Meal and rest periods may not be avoided or accrued for the purpose of obtaining time off or shortening the regular shift. If an employee reports to work as scheduled and was not notified that their hours had been changed, he or she shall receive two hours pay at the overtime rate. 17.3 The District may, at its sole discretion, change an employee's work schedule with thirty(30) days written notice to the affected employee. ARTICLE 18. - CALL-BACK PAY 18.1 When an employee is called back to work by District management without prior notice, and the employee has completed his or her normal work shift and left the work station,or when prior notice is given but the work begins on the same day at least three hours after completion of the regular shift, the employee shall receive a minimum of three hours of call back pay. The three hours minimum, whether or not actually worked, shall be paid at the rate of one and one half times the regular hourly rate. Employees who are called back a second time within a normal shift period are considered to be working for the duration of that shift. ARTICLE 19. - STANDBY PAY 19.1 Standby is time during which an employee is not required to be at the work location or at the employee's residence but is required to be available for immediate return to work. Standby assignments shall first be made on a voluntary basis. A volunteer standby list shall be established by classification and job location. Standby assignments shall be made from the list of employees who are competent and experienced, in alphabetical order, on a rotating basis. In the event that no one volunteers, the District shall assign standby by job classification and work location from employees who are competent and experienced on a rotational basis. An employee placed on standby shall be compensated at the rate of three hundred forty- five(345)dollars per week, and shall receive Call Back pay when they are actually called to work. ARTICLE 20. - INSURANCE 20.1 The District will provide healthcare and welfare insurance benefits. 20.2 All insurance coverage shall become effective on the first day of the month following date of hire, regardless of hire date.An open enrollment period shall be held annually. 20.3 Medical Reooener The District and OCEA agree to reopen this Agreement at the beginning of the month following ratification to discuss the transition from Anthem to Blue Shield through California State Association of Counties—Excess Insurance Authority (CSAC-EIA), or to another carrier directly, and varied plan design changes in order to mitigate excise taxation in 2018. Potential strategies for consideration include, but are not limited to, the following: plan design changes to office and specialist copays, emergency room copays, plan deductibles and contribution rates; and alternative plan offerings such as a high deductible health plan with health savings account funding. 20.3.2 The parties agree that any reopener shall be subject to Government Code Section 3505.4 and case law, including PERK, decisions which interpret that provision. 20A Medical Insurance 20.4.1 The District will provide medical health insurance coverage through a Health Maintenance OCEA—Engineering MOU July 1, 2014 to June 30,2016 Page 8 Organization (HMO) medical insurance plan and a Preferred Provider Organization (PPO) medical insurance plan, until such time that the parties agree to changes through the medical reopener in Section 20.3. 20.4.2 Regular, full-time employees: 20.4.2A The District shall contribute 90%of employee only premiums for the HMO medical health plan and 80%of employee only premiums for the PPO medical health plan. The District will contribute 80%of the employee +1 dependent and full family premiums for the HMO and PPO medical plans. Any change in insurance rates shall be shared equally in same ratio as the District and employees currently pay premiums, Before the renewal of any District's sponsored health insurance plan, the parties agree to meet and confer as to changes in the plan. 20.5 Life Insurance The District shall pay the full premium for$50,000 term life insurance on each employee. 20.6 Short Term Disabilitv The District shall provide a non-work related, short-term disability indemnity plan that provides benefits for employees equal to California's State Disability Insurance(SDI) program for up to twenty-six (26)weeks following a fourteen(14)calendar day waiting period. 20.7 Long Term Disability 20.7.1 The District shall provide a non-work related, long-term disability indemnity plan that pays two- thirds of the employee's rate of pay in effect at the time of such disability, not to exceed $5,000 per month, up to age 65, following a 90-day waiting period of continuous disability, at such time that an employee completes five(5) years of service. 20.7.2 For participants age 64 and younger, the maximum period of payment is based on the Social Security Act retirement age of 65. For participants age 65 and older, the maximum period of payment is specified. The specified periods and additional information about coverage is included in the District's long-term disability plan contract accession on the intranet. 20.7.3 No combination of disability or sick leave pay shall result in more than an employee's regular rate of pay. Employees may not receive short-tens and long-term disability benefits at the same time. An employee who is otherwise not eligible for District paid Long Term Disability may purchase such coverage at his or her own expense. 20.8 Dental Insurance The District will contribute 80% of employee only and 80% of full family premiums for dental insurance. 20.9 Vision Insurance The District shall provide a vision insurance plan for regular, full-time employees and eligible dependents. 20.10 Retiring Employees 20.10.1 The District shall pay, far employees hired prior to July 1, 1988, two and one-half(2.5) months' premium for each year of continuous service of a retiring employee towards the premium costs of coverage for the employee and eligible dependents under the District's medical plan. 20.10.2 In the event the District adds additional optional insurance plans, the District's share of the premium shall be the same as for existing plans as set forth above. In the event the District changes underwriters for existing insurance plans, the District's share of the premium shall be the same as for existing insurance plans as set forth above. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 9 20,10.3 The District will continue to implement the retiree medical health premium offset program wherein the cost of health premiums are offset by$10 per month for every year of continuous service up to a maximum of 25 years or $250 per month. Employees hired on or after August 1, 2011 shall not be eligible for the retiree medical health premium offset. ARTICLE 21. - REIMBURSEMENT ACCOUNT 21.1 Section 125 of the Internal Revenue Code permits employees to use pre-tax dollars to pay for their portion of the cost of benefits under the Plan through salary redirection arrangements. The options available under the flexible benefits program are listed below. This is a brief overview of the different options. For complete information regarding Flexible Spending Accounts,employees must refer to the plan booklet available in the Human Resources Department. 21.2 Group Insurance Premiums Group insurance premiums that are paid by salary redirection can be made on a pre-tax basis. 21.3 Medical Care Reimbursement Account The purpose of this account is to provide a method through which the employee can accumulate pre-lax funds in a Medical Care Reimbursement Account for purposes of reimbursing himself or herself for payment of health care costs not othenvise covered by his or her medical insurance. 21 4 Dependent Care Assistance Account The purpose of this account is to provide a method through which the employee can accumulate pre-tax funds in a Dependent Care Assistance Account for purposes of reimbursing himself or herself for childcare expenses or day care for a disabled dependent. ARTICLE 22. -OVERTIME 22.1 Employees shall be notified as soon as practicable after the District decides upon the need for overtime or additional work. The District may require the performance of overtime. In the event no qualified employee wishes to work overtime, District's management may select employees with the ability to perform the work by inverse seniority. District managers shall attempt to evenly distribute overtime among employees based upon an employee's ability to perform the overtime work. 22.2 For the purposes of overtime calculation, all time charged to unscheduled sick leave shall not be counted as time worked. Pay for overtime time shall not occur until after actual work time of forty(40) hours in a seven (7)day workweek is reached. ARTICLE 23. - PROBATIONARY PERIOD 23.1 All new employees serve an initial probationary period beginning with the date of hire and extending to at least the first day of the pay period following twenty-six (26)weeks of employment without a break in service. Extended absence without pay, short-term and long-term disability and Workers'Compensation leave does not provide an opportunity to judge an employees'capability to meet performance expectations for a position, and thus the time spent on such leaves shall not be included towards completion of the probationary period and may result in an extension. 23.2 Employees who are rehired following a break in service must complete a new probationary period whether or not one was previously completed. An employee may be released during his or her Probationary Period at the discretion of the District without recourse to the Grievance Procedure. 23.3 Employees who are reassigned or laterally transferred will serve a probationary period of twenty-six(26) weeks. The"probationary period"shall not divest an employee of his/her property rights in his/her former position. Rejection of probation during this period shall result in the employee reverting to his/her former assignment and/or position. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 10 ARTICLE 24. - PROMOTIONS 24.1 A promotion is the appointment of an employee to another classification with a higher maximum rate of pay. The District will determine whether a vacant position shall be filled as an open or promotional opportunity or recruitment. Whenever the District intends to fill a position by promotion, the District shall post the opportunity for a minimum of ten (10) business days. Employees must apply during the period of posting. Notices shall be posted on the District's intranet. 24.2 A promoted employee shall serve a promotional probationary period lasting at least until the first day of the pay period twenty-six(26) weeks after the effective date of the promotion. At any time during the promotional probationary period, an employee may be returned to his or her previous position. The promotional probation period may be extended by mutual agreement between the employee and District's management for up to ninety(90) days. If an employee is promoted during his or her initial probationary period, the period shall be extended until at least the first day of the pay period twenty-six(26) weeks after the effective date of the promotion. 24.3 Promoted employees will receive the equivalent of a step increase in pay, not to exceed the top of the range for the new classification or the minimum rate of the new classification whichever is greater. ARTICLE 25. - RETIREMENT 25.1 The District shall continue participation in the Orange County Employees Retirement System (OCERS), wherein all full-time employees are considered members. The following retirement program is in effect pursuant to the contract between OCERS and the District. 25.1.1 Employees hired before September 21, 1979: The District will continue to contract with OCERS to provide the 2.5% @ 55 benefit formula (Plan G) based on the highest consecutive twelve (12) months average earnings, past and future service. 25.1.1.1 The District will continue to pay 4.5% toward the employee's contribution to OCERS for those employees who elected to make a one-time decision to remain in the Plan G program. 25.1.2 Employees hired on or after September 21, 1979 and before August 1, 2011: The District will continue to contract with OCERS to provide the 2.5%@ 55 benefit formula(Plan H) based on the highest consecutive thirty-six(36)months average earnings, past and future service. 25.1.2.1 The District will continue to pay 3.6%of an eligible employee's base salary toward the employee's contributions to OCERS. 25.1.3 Employees hired on or after August 1, 2011 and before January 1, 2013: The District will contract with OCERS to provide the 1.667% @ 57.5 benefit formula(Plan B)based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.3.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.1.4 Employees hired on or after January 1,2013: The District will contract with OCERS to provide the 2.5% @ 67 benefit formula (Plan U-PEPRA)based on the highest consecutive thirty-six(36) months average earnings, past and future service. 25.1.4.1 The District will pay 0%of an eligible employee's base salary towards the employee's contribution to OCERS. 25.2 All monies actually contributed into the retirement system by an employee shall be deducted from gross salary for taxation purposes in accordance with Internal Revenue Code provisions. OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Page 11 ARTICLE 26. - SHIFT DIFFERENTIAL 26.1 Employees who are regularly assigned to work a night shift that consists of 50%or more of their hours between 6:00 p.m. and 6:00 a.m. and who actually work that shift shall receive a shift differential of$2.50 per hour. ARTICLE 27. - LEAVE-OF-ABSENCE WITH PAY 27,1 Vacation Leave 27.1.1 Except as otherwise provided, regular full-time employees accrue vacation leave, beginning with the first day of employment, in accordance with the following schedule: Years of Service Hours-Biweekly Hours-Annual In years 0 through 1 3.08 80 In years 2 through 4 3.08 80 In years 5 through 10 4.62 120 In year 11 4.93 128 In year 12 5.24 136 In year 13 5.54 144 In year 14 5.85 1 152 In year 15 6.16 160 In year 16 6.46 168 In year 17 6.77 176 In year 18 7.08 184 In year 19 7.39 192 In year 20 and over 7.69 200 27.1.2 Part-time employees accrue vacation leave on a pro-rata basis as set forth in District Policy. 27.1.3 Vacation leave begins after an employee has completed twenty-six (26)weeks of continuous service. After the individual's first twenty-six(26)weeks of service, his or her account will be credited with 40 hours.After that time, he or she will accrue vacation hours consistent with the above chart.Vacation leave may only be utilized in increments of one-half hour or more. Vacation leave is accrued for all paid hours, including hours actually worked and hours in a paid-leave payroll status. 27.1.4 When unpaid absences occur, vacation leave accruals will be applied by straight proration of leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.1.5 Employees may have a maximum accumulation of 200 hours as of the last day of the final pay period in December of each year. In the event an employee accrues vacation leave in excess of 200 hours, it must be used prior to said December dale, all other remaining hours in excess of 200 will be paid to the employee in the first pay period in January at the employee's then current hourly rate of compensation. 27.2 Sick Leave 27.2.1 Definition.- Sick leave is an insurance or protection provided by the District to be granted to employees in circumstances of adversity to promote the health and welfare of the individual employee. It is not an earned right to take time off from work. Sick leave is defined as the absence from duty of an employee because of a bona fide illness, injury, or pregnancy, or to OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 12 attend to the illness or injury of a family member as hereinafter defined. Temporary employees are not entitled to sick leave benefits. 27.2.2 Method-Sick Leave Accrual. Full-time employees hired prior to November 27, 1981, accrue paid sick leave at the rate of three point five (3.5) hours for each biweekly pay period of continuous service(ninety-one(91) hours per year). Full-time employees hired on or after November 27, 1981, accrue paid sick leave at the rate of three(3.0)hours for each biweekly pay period of continuous service(seventy-eight(78) hours per year), beginning with the first day of employment. 27.2.3 Part-time employees accrue sick leave on a pro-rata basis as set forth in applicable District Policy. 27.2.4 When unpaid absences occur, sick leave accruals will be applied by straight proration for leave accruals based on the number of hours actually worked, and is applicable to all types of leave, whether legally protected or not. 27.2.5 Annual Pavoff-Employees may elect annually to be paid for any unused sick leave hours accrued through the end of October at their current hourly rate according to the following payoff schedule or as specified in a Memoranda of Understanding. Accrued Sick Leave Hours Rate of Payoff 0-100 0% 101-240 26% 241-560 35% Over 560(mandatory) 50% 27.2.6 Employees who terminate for any reason other than retirement or death shall be compensated for any accrued and unused sick leave according to the above schedule. Employees who retire or decease with twenty (20)years or more of service shall be paid at the one hundred percent (100%) rate for all accrued and unused sick leave. Employees who retire or decease with less than twenty(20) years of service will be paid at the seventy-five percent(75%) rate for all accrued and unused sick leave. 27.2.7 Permissible Uses-Sick leave may be applied only to: A. Absence due to illness, injury or pregnancy of an employee. B. Absence due to medical and dental office appointments of an employee when approved by the employee's supervisor. C. Absence for the care of the employee's father, father-in-law, mother, mother-in-law, brother, sister, husband,wife, child, grandparent, legal guardian, or any family member with whom the employee resides. D. Absence due to a job-related injury. 27.2.8 General Provisions-To qualify for sick leave pay, the employee must notify the District at or in advance of the time the employee is scheduled to report for duty. Minimum charge to the employee's sick leave account shall be one-half hour and thereafter in one-half hour increments. Human Resources and department management shall be responsible for control of abuse of the sick leave privilege. If notified in advance, the employee may be required, at any time, to furnish a certificate issued by a licensed physician or nurse, or other satisfactory evidence of illness; however, for absences of ten consecutive working days or more, a request for leave and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. Upon return to work, a written doctors release must be submitted to Human Resources. For absences of one or more working days in an unpaid status, a request for leave OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 13 and a medical statement, on prescribed forms, stating expected date of return must be submitted to Human Resources. If the need for leave is due to the employee's serious health condition, as defined in the Family and Medical Leave Act("FMIA")or the California Family Rights Act("CFRA"), the certification requirement shall comply with the provisions of these Acts. 27.3 Jury Duty Leave 27.3.1 Any full-time, including probationary, employee who is called for jury duty shall, upon request on prescribed forms, be entitled to his or her regular pay for those hours of absence due to performance of the jury duty for a period up to twenty-two(22)working days. 27.3.2 Prior to jury duty service, each employee must complete a time off request through the District's timesheet system and provide a copy of the summons to his or her supervisor. To be entitled to receive regular pay for such jury leave, the employee must report for work at the District for time not actually retained on jury unless there is less than %of their regular shift remaining. Employees are not compensated forjury duty occurring on scheduled days off. 27,4 Witness Leave 27.4.1 Any full-time, including probationary, employee, who is required to be absent from work by a subpoena properly issued by a court, agency or commission legally empowered to subpoena witnesses, which subpoena compels his or her presence as a witness, except in a matter wherein he or she is named as a defendant or plaintiff or as an expert witness, shall, upon approval of an online time off request, be entitled the time necessary to comply with such subpoena, provided any fees received for such service, exclusive of mileage, are submitted to the District for deposit in the General Fund of the District. 27.4.2 An employee so subpoenaed must submit a copy of the subpoena to his or her supervisor and complete an online time off request form in order to be eligible for pay for such absence. To be entitled to receive regular pay for such witness leave, the employee must report for work at the District for time not actually retained on witness service of one hour or more prior to and/or upon completion of each day's service, exclusive of travel time. 27.5 Military Leave 27.5.1 A request for military leave shall be made upon leave-of-absence forms approved by the Human Resources Department and shall state the date when it is desired to begin the leave-of-absence and the date of anticipated return. A copy of the orders requiring such military service shall be submitted with the request. 27.5.2 Provisions of the Military and Veterans Code of the State of California, Sections 395-395.5 shall govern military leave. In general, current law provides that an employee having one(1) year or more service with a public entity is entitled to military leave with pay not exceeding thirty(30)days per year if the employee is engaged in military duty ordered for purposes of active military training or encampment, An employee who is required to attend scheduled service drill periods or perform other inactive duty reserve obligations is entitled to military leave without pay, not exceeding seventeen(17)calendar days per year, although the employee may, at his or her option, elect to use accrued leave time to attend the scheduled reserve drill periods or to perform other inactive drill period obligations. Employees who participate in weekend military drill duty are not eligible for leave with pay for such activity, but may have their regular work schedule changed to accommodate the required time off. 27.6 Bereavement Leave 27.6.1 Using the online time off request system, any full-time employee,whether probationary or regular, shall receive a maximum of thirty-six (36)hours of paid time for the death or funeral of an immediate family member. Immediate family member is defined as the employee's father, step- father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Page 14 husband, wife,domestic partner, biological child,adopted child, step-child, child of a domestic partner, grandchild, grandparent, foster parent, foster child, legal guardian, or any family member with whom the employee resides. 27.7 Supplemental Leave 27.7.1 Regular full-time employees in the bargaining unit shall be granted Supplemental Leave in accordance with the following schedule in the first pay period in July: Years of Service 5-9 10- 14 15-19 20-24 25+ Supplemental Leave Hours 5 10 15 20 25 27.7.3 Supplemental Leave will be administered in accordance with the following guidelines: 27.7.3.1 Supplemental Leave may be used in one-quarter(0.25) hour increments. 27.7.3.2 Any unused Supplemental Leave, within the fiscal year granted, will not be carried over to the next fiscal year. 27.7.3.4 Any unused Supplemental Leave, within the fiscal year granted, is not subject to cash out or eligible for any mandatory payout. 27.7.3.5 Employees who cease to be part of the bargaining unit for any reason will forfeit any unused Supplemental Leave. 27.7.3.6 Employees who are hired or transferred into the bargaining unit shall be granted Supplemental Leave on a pro-rats basis per the following schedule: Hirelfransfer Date Percent July—September 100% October—December 76% January—March 50% April—June 25% ARTICLE 28. - LEAVE-OF-ABSENCE WITHOUT PAY 28.1 It is the policy of the District to grant employees leave-of-absences without pay under certain circumstances and in accordance with state and federal benefit entitlement laws. Except as stated below, employees shall not receive compensation during an unpaid leave-of-absence. Employees will not be granted an unpaid leave of absence prior to exhausting all paid leave accrual balances, excluding employees protected by PDL(Pregnancy Disability Leave)/FMLA(Family and Medical Leave Act)/CFRA (California Family Rights Act)for their own serious health condition. 2B.2 Using the prescribed forms, approved by District management, any full-time, including probationary, or part-time employees with at least fifty-two (52) weeks of service and at least twelve hundred fifty (1,250) hours of service, may be granted an FMLA or CFRA leave-of-absence without pay, not to exceed twelve (12)weeks in a rolling twelve(12) month calendar period. A"rolling"twelve If 2) month period is measured backward from the date the employee uses the leave. A request for leave of absence without pay must be made upon prescribed forms in all instances where an employee is absent without pay for more than five (5)consecutive working days, or for absences of ten (10)working days or more when using paid sick leave accruals. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 15 28.3 Substitution of Paid Leave 28.3.1 Employees who request FMLA or CFRA Leave for qualifying purposes other than the employee's own serious health condition shall be required to use all accruals, before unpaid leave is granted. Paid time off will not accrue during any pay period that an employee is absent without pay for more than one(1)day. 28.3.2 Paid time off accruals may be used for the care of the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, domestic partner, biological child, adopted child, stepchild, foster child, legal ward, child of a domestic partner, grandchild,grandparent, foster parent, legal guardian, or any family member with whom the employee resides. 28.4 Permissible Uses 28.4.1 FMLA Leave. FMLA leave maybe used for: 28.4.1.1 The birth of a child or to care for a newborn of an employee, 28A.1.2 The placement of a child with an employee in connection with the adoption or foster care of a child, 28.4.1.3 The care for the employee's father, step-father, father-in-law, mother, step-mother, mother-in-law, brother, step-brother, sister, step-sister, husband, wife, biological child, adopted child, stepchild, foster child, legal ward, child of a domestic partner, grandchild, grandparent, legal guardian, or any family member with whom the employee resides who has a serious health condition, as defined in the Act; 28.4.1.4 The employee's own serious health condition that renders the employee unable to perform the essential functions of his or her position, including incapacity due to pregnancy; 28.4.1.5 A qualifying exigency arising out of the fact that an employee's family member is on covered active duty or called to covered active duty status in the Armed Forces. A qualifying exigency may include activities such as making arrangements for childcare, attending counseling relating to the active duty of the service member, or attending to farewell or arrival arrangements for the service member. 28.4.1.6 The care for the employee's family member or"next of kin" service member of the United States Armed Forces who has a serious injury or illness incurred in the line of duty while on active military duty. This leave may consist of up to twenty-six (26) weeks of unpaid leave during a single twelve (12) month period. 28.4.2 CFRA Leave. CFRA Leave may be used for: 28.4.2.1 The same purposes as FMLA Leave, including the care of a domestic partner or child of a domestic partner, and shall run concurrently with FMLA leave. 28.4.2.2 CFRA may not be used for 1)an employee's incapacity due to pregnancy,. 2) leave due to a qualifying exigency, or 3)to care for a family member or next of kin with a serious injury or illness incurred in the line of duty. However, incapacity due to pregnancy may entitle an employee to up to four(4)months of pregnancy disability leave under California's Pregnancy Disability Leave(PDL) law. 28.4.3 General Provisions: Requests for FMLA and CFRA Leave Where the need for Leave is foreseeable, the District requests thirty(30)days advance notice. 28.4.4 Medical Certification As a condition of FMLA or CFRA Leave because of a serious health condition, the District may require certification by the employee's attending physician in accordance with Department of OCEA—Engineering MOU July 1, 2014 to June 30,2016 Page 16 Labor(DOL)regulations. 28.4.5 Medical and Dental Premiums During FMLA and CFRA Leave, the District shall pay for medical and dental benefits at the same level as coverage would have been provided if the employee was not on leave. The employee shall be required to pay his or her share of medical and dental premiums. Failure to submit a monthly co-payment, in full,within sixty(60)days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.4.6 Reinstatement Upon expiration of FMLA or CFRA Leave, the employee shall be reinstated to the same or a comparable position, unless the employee would not otherwise have been entitled to that position for reasons unrelated to such leave(e.g., layoff), in which case the District's obligation to continue health and dental or other benefits shall cease. 28.4.7 District Employment of Spouses/Domestic Partners 28.4.7.1 FMLA Leave. Married employees shall be limited to a combined total of twelve (12) weeks FMLA or CFRA Leave in a rolling twelve(12)month calendar period for the care of a parent or newly born or placed child. 28.4.7.2 CFRA Leave. Married employees and employees in domestic partnerships will be limited to a combined total of twelve (12)weeks CFRA leave in a rolling twelve (12) month calendar period for the care of a parent or newly born or placed child. 28.5 General Leave 28.5.1 Employees who have exhausted all paid time off accruals may request to be granted a general leave-of-absence by District management to attend to personal matters or for FMLA or CFRA qualifying events after the expirations of previously authorized leave. 28.5.2 During a general leave-of-absence, the employee will be required to pay both the District's and the employee's share of medical and dental premiums. 28.5.3 Failure to submit a monthly co-payment, in full, within sixty (60) days of the invoice date will result in loss of group coverage. Coverage will be reinstated upon return to active employment. 28.6 Return to Work Policy 28.6.1 An employee who has been absent from work due to a medical reason may be subject to a Return-to-Work medical evaluation. 28.6.2 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(with reasonable accommodation if the employee is disabled within the meaning of the ADA/FEHA) and the employee is willing to return to work, placement in an alternative position, if available, shall be considered. The employee shall be re- classified as medically disqualified while alternative positions are being considered. Such time off shall be without pay; however, the employee may elect to use accrued leave hours, such as vacation, sick or personal, to receive compensation. Placement of an employee in an alternative position requires a pre-placement medical evaluation for the alternative job. 28.6.3 If it is determined that the job demands of the position last held by the employee are not compatible with the employee's restrictions(and cannot be reasonably accommodated if the employee is disabled within the meaning of ADA/FEHA) and there is not an alternative position, or the employee's restrictions are not compatible with an alternative position,or the employee is not willing to return to work, the employee shall be re-classified as medically disqualified and not permitted to work. Thereafter, the employee shall be retired for disability, if eligible, or dismissed. Such dismissal will not imply disciplinary action for cause. If requested, the employee's file will indicate the employee left for personal reasons. 28.6.4 Bridge of Service OCEA—Engineering MOU July 1,2014 to June 30, 2016 Page 17 If an employee is dismissed per Section 28.6.3, and then is rehired to a position within the District within one(1)year, the District shall bridge the employee's service date. Bridging of service procedures involve adding the total number of days away from work to the employee's original date of hire. 28.6.5 Failure to Return to Work If, upon the expiration of FMLA or CFRA Leave, or any District approved extension thereof including General Leave, an employee fails to return to work and no additional leave has been authorized, the employee shall be considered to have automatically resigned from his or her position. In such cases, the employee will receive advance notification of the District's intent to implement an automatic resignation. 28.7 Compliance with Law These Leave-of-Absence provisions shall be interpreted and applied in a manner that is consistent with the provisions of FMLA, CFRA, ADA and all other laws. In the event there is a direct conflict between these provisions, as written or applied, the provisions of law shall govern. ARTICLE 29. - CLASSIFICATION STUDIES 29,1 OCSD will include a representative from OCEA to participate as a partner in the agency-wide classification and compensation study. 29.2 An employee who believes his/her position is not properly classified may submit a written request to the Department Director asking that a classification study be conducted. The Department Director will acknowledge the request in writing and review the request for accuracy, and forward it to the Director of Human Resources, or designee, for consideration and response. Classification studies will only be conducted twice a year in November and during the budget process, therefore, classification study requests shall be submitted October 161 for the November review and according to the Finance budget schedule. District's management may also conduct classification studies at their discretion to ensure that the duties and responsibilities of all employees are appropriately allocated within the classification structure. 29.3 Y-Rating 29.3.1 All classification study findings regarding existing classifications are subject to approval by the General Manager; findings recommending a new job classification range are subject to approval by the District's Board of Directors. The recommendations of the classification study shall be implemented in the first pay period immediately following the completion of the study, unless the recommendations require action be taken by the Board of Directors prior to implementation. In such event, the recommendations shall be implemented in the first pay period immediately following authorization by the Board. 29.3.2 In the event the duties and responsibilities of a position are allocated to a lower paid classification, the salary of the incumbent of that position shall remain unchanged (Y-rated) in accordance with the following table: Years of Service Term of Y-Rate 0-3 1 year 4-5 2 years 6-10 3 years 11-20 4 years 20 or more 5 years OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 18 29.3.3 Y-rating based on the above schedule shall be granted for all reclassifications where employees are working in a job classification with a lower maximum rate of resulting from changes to the District's staffing requirements, organizational structure or"bumping" associated with layoffs. Y- rating shall not apply in cases involving disciplinary actions or voluntary changes to a job classification with a lower maximum rate of pay. 29.3.4 The Y-rate shall remain in effect until the salary range for the new classification equals or exceeds the employee's Y-rated salary, or until the term of the Y-rate expires in accordance with the table above. If the Y-rate expires before the employee's salary falls within the range of the new classification, the employee shall be placed at the top of the range. Employees become eligible for merit increases and range adjustments when the Y-rate is no longer in effect. 29.4 Z-Ratina 29.4.1 Employees allocated to classifications with a lower range maximum than their current salary as a result of the District's comprehensive Classification Study results implemented effective July 12, 2002 will have their salary remain unchanged (z-rated) until such time that the range maximum of their salary range exceeds or equals their current salary. 29.4.2 If a position is allocated to a higher paid classification, and the incumbent is promoted to that level, his or her salary will be placed at the step of the new range that is nearest a one-step increase, not to exceed the maximum rate of pay. ARTICLE 30. - DRIVER'S LICENSE 30.1 Employees who are required by the District to drive must notify their supervisor and the Human Resources Risk Management Division immediately upon receipt of any suspension or revocation of their California Driver's License privileges. Failure to do so could result in disciplinary action up to and including separation. 30.2 If an employee whose license is suspended or revoked and is unable to perform his or her regular duties and responsibilities notifies the District in a timely fashion, an attempt shall be made to place the employee in an equal or lower level position for which he or she is qualified. Placement in the range of the new classification is subject to District management's discretion. 30.3 The District will continue to pay the license renewals and physical examination costs of Class A& 8 licenses that are specifically required by the District. ARTICLE 31. - LAYOFF PROCEDURE 31.1 Nothing herein shall be construed to require the District to fill vacant, budgeted positions nor to prohibit the District from eliminating vacant positions from the budget. The District reserves the right to reassign staff to other positions in instances involving job restructuring, reorganization or due to lack of work. 31.2 The layoff procedure outlined below shall be followed if the District finds it necessary to layoff personnel who were hired after January 1, 2000 and for any layoffs which occur after November 1, 2002. 31.3 If, in the sole discretion of District management, personnel reductions are necessary, layoff order and recall lists shall be developed based upon job classification, priority of function,job performance, individual qualifications and seniority. The OCEA and employees subject to layoff shall be provided with at least two weeks notification in writing, whenever possible. 31 A Employees in classifications subject to layoff may request a voluntary demotion to any previously held position for which they remain qualified. Such requests must be made in writing to the Human Resources Department within five(5)days of receipt of the Layoff Notice. The salary of an employee who voluntarily demotes shall be unchanged, except that it may not exceed the maximum rate of the range for the lower level classification. 31.5 Recall lists shall be developed for all classifications experiencing personnel reductions, and shall be maintained for a period of two years from the date of layoff. Individuals shall be placed on the list in the OCEA—Engineering MOU July 1, 2014 to June 30,2016 Page 19 inverse order of layoff, so that the last person laid off is the first recalled. When a vacancy occurs in a classification for which a Recall list exists, an offer of reemployment shall be made to the individual on the top of the list. That individual must respond to the offer within five days, or the offer shall be made to the next person on the list. An individual who either does not respond or refuses three consecutive offers shall have their name removed from the list. 31.6 All notification and responses must be in writing and delivered either in person or by Certified Mail. It is the responsibility of all employees to keep the Human Resources Department informed of their current address, or where they may be contacted. ARTICLE 32. - LIGHT DUTY 32.1 An employee who is released by a physician to perform limited duties because of a temporary disability may be assigned to light duty at the discretion of the District. Light duty may consist of duties other than those normally performed by the employee and that are within the employee's medical restrictions. An employee assigned to light duty will be paid the regular wage rate for the job classification to which he or she was assigned prior to being temporarily disabled. ARTICLE 33. - MEDICAL EXAMINATION 33.1 When there is reasonable evidence to suggest that an employee is impaired in a manner that endangers their own health or safety, or that of others, the District may require that employee to be examined or evaluated by a health care provider. The purpose of such examination must be job related. Any examination under this provision shall be conducted on District time and at District expense. An employee may submit an independent medical opinion regarding the individual's condition and addressing his or her ability to competently perform the duties of the position. This information shall be reviewed and considered by a competent medical authority in arriving at a decision regarding the individual's continued employment in the position. ARTICLE 34. - MILEAGE ALLOWANCE 34.1 Approved use of a personal vehicle for District business shall he reimbursed at the current IRS rate. ARTICLE 35. -ACTING PAY 35.1 Employees who are assigned by District management to perform the duties of a position at a higher level for a period of at least eighty (80)consecutive hours shall be eligible for a one step salary increase, or the first step of the range for the higher level classification, whichever is greater. The higher rate of pay begins with the hour eighty-one(81), and continues until the assignment ends or the six(6)month limitation has been reached at which time a determination will be made as to whether the position should or should not be posted. Requests for acting pay require the approval of the Department Director and the Director of Human Resources, or designee. The eighty(80)hour eligibility period may be waived at the discretion of the General Manager. ARTICLE 36. (This Article intentionally left blank.) ARTICLE 37. - PERSONNEL FILES 37.1 Employees have the right to inspect their personnel file in the Human Resources Department during the normal office hours of the Human Resources Department, by appointment. Employees who wish to correct allegedly erroneous information in their file, or request that items related to disciplinary matters be removed after the indicated time period has elapsed, should submit a request in writing to the Director of Human Resources, or designee. It is the responsibility of each employee to keep the personal information in his or her file current, inGuding home address, telephone number and person to contact in an emergency. OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 20 ARTICLE 38. -BULLETIN BOARDS 38.1 The OCEA may use the bulletin boards located at Plant 1 and Plant 2, which are designated for use by employee groups to post notices to District employees, provided that: (a) no controversial matter which is critical of or derogatory to the District, its employees, officers or Directors may be pasted; (b) nothing posted by the District may be removed; (c)the OCEA shall remove its notices after a reasonable length of time; and(d)only a reasonable number of notices shall be posted. ARTICLE 39. - RELEASE TIME FOR MEET AND CONFER SESSIONS 39A A maximum of three (3)employees covered by this Agreement and appointed by the OCEA shall be granted reasonable release time for attending meet and confer sessions at the bargaining table. Release time shall not be compensated for any hours that exceed the employee's regularly scheduled hours of work. 39.2 The OCEA shall provide the Director of Human Resources, or designee, with the names of employees requiring meet and confer release time in advance of the meet and confer session. The release time shall be granted provided that the needs of the District permits the time away from assigned work. ARTICLE 40. - USE OF DISTRICT FACILITIES 40,1 District facilities may be used by the OCEA with prior notice to the Director of Human Resources, or designee, for the purpose of holding meetings,to the extent that such use does not interfere with normal District operations. The OCEA agrees to pay for the cost of any additional custodial or security services. ARTICLE 41. - SCOPE OF BARGAINING 41.1 The District and the OCEA acknowledge that during the negotiations, which resulted in this Agreement, each party had the unlimited right and opportunity to make demands and proposals with respect to all proper subjects within the scope of representation. Therefore,the District and the OCEA, for the term of this Agreement, except as otherwise provided herein, each voluntarily and unqualifiedly waive the right, and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter contained in this Agreement. ARTICLE 42. - IMPASSE PROCEDURES 42.1 If either the District or OCEA declares that an impasse exists in the meet and confer process, the party so declaring may initiate the impasse procedure by providing the other party with a written request for an impasse meeting, together with a statement of its position on all issues. An impasse meeting shall be scheduled and held between the parties within fourteen(14)calendar days or as soon as practicable to: 42.2 Review the position of the parties in a final effort to reach agreement on a memorandum of understanding, and if the impasse is not resolved, to discuss the immediate utilization of impasse procedures outlined herein. 43.3 Impasse Procedures are: 43.3A Mediation. If the parties mutually agree to submit the dispute to the State Mediator and Conciliation Service, all mediation proceedings shall be private and occur as soon as practicable. The mediator shall make no public recommendation, nor take any public position at any time concerning the issues. 43.3.2 Fact-Finding: If the parties fail to resolve the dispute through mediation, the parties may agree to submit the impasse to fact finding as soon as practicable. The cost of a fact finder and other mutually incurred costs shall be mutually shared by the District and OCEA. 43.3.3 Board Actions: If the parties fail to resolve the impasse, the dispute shall be sent to the District's Board of Directors for resolution. Each party shall submit its written proposal on all issues to the OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 21 Board. The Board may take such action to resolve the impasse as it deems appropriate to the public interest. Any action taken by the Board to resolve the impasse shall be final and binding. ARTICLE 43. - SEVERABILITY 43.1 Notwithstanding any other provisions in this Agreement, in the event that any article, section or subsection of this Agreement shall be declared invalid by any court or by any state or federal law or regulation, or should a decision by any court or any state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on the District, the District and OCEA shall meet and confer on the affected article, section or subsection. In such event, all other articles, sections or subsections of this Agreement not affected shall continue in full force and effect. ARTICLE 44. - UNIFORMS 44.1 The District shall provide and maintain ten (10) uniform pants and shirts, which may include the name of the employee and District's seal, at no cost to employees whose duties require that they wear uniforms. The District will also provide lab coats as required by the lab manager. 44.2 All employees who are issued uniforms must wear them during the performance of their regular duties. Other clothing appropriate to the occasion, as determined by District management, may be worn when attending business meetings. Failure to wear required clothing, shoes and safety equipment may be cause for disciplinary action. ARTICLE 45. - SUBSTANCE ABUSE POLICY 45.1 The District's Substance Abuse Policy will apply to all unit members. The District may adopt or implement rules, regulations and policies to be in compliance with federal and state laws. In such cases, notification will be provided to the bargaining unit prior to implementation. 45.2 Department of Transportation (DOT) Regulations 45.2.1 Every driver who operates a commercial motor vehicle in interstate or intrastate commerce, and is subject to the commercial driver's license requirements of the Department of Transportation, Federal Highway Administration CFR Part 382 is subject to the District's Anti-Drug and Alcohol Program. The District will ensure that all alcohol or controlled substances testing conducted under the Substance Abuse and Alcohol Misuse Plan complies with the procedures set forth in CFR Part 40, 45.3 District's Substance Abuse Policv 45.3.1 Any employee may be subject to discipline, up to and including termination, for any alcohol screen test that indicates an alcohol concentration level of 0.02%or greater. ARTICLE 46. - DUES DEDUCTIONS 46.1 The District shall deduct from each regular paycheck and remit to OCEA the dues, initiation fees and assessments for each employee who voluntarily authorizes such deduction in writing. Such authorizations must be fled by the end of the pay period prior to the period for which the deduction is requested. 46.2 The District shall provide the OCEA a quarterly list of the names of those employees for whom it has made deductions. In addition, the District shall provide the names and addresses of new employees and the names of employees who have terminated within the previous quarter. ARTICLE 47. (This Article intentionally left blank) OCEA—Engineering MOU July 1, 2014 to June 30, 2016 Page 22 ARTICLE 48. - PEACEFUL RESOLUTION OF DISPUTES 4B.1 During the term of this Memorandum, or any subsequent period when impasse resolution procedures are in progress or recommendations resulting from such procedures are being considered by the parties, the District agrees it shall not lockout employees in this bargaining unit, and OCEA agrees that it shall neither advocate, encourage or participate in any strike, including sympathy strike, or work stoppages, nor encourage employees to refrain in whole or in part from the full, faithful and proper performance of their duties of employment. ARTICLE 49. (This Article intentionally left blank) ARTICLE 50. -WORKPLACE VIOLENCE AND WEAPONS POLICY 50.1 The District's Workplace Violence and Weapons Policy will apply to all unit members. ARTICLE 51. - RESIGNATION 51A Voluntary written termination of employment with the District is irrevocable after seventy-two (72) hours from the receipt of the resignation,except by approval of the Director of Human Resources, or designee. ARTICLE 52. (This Article intentionally left blank) ARTICLE 53. - LABOR MANAGEMENT COMMITTEE 53.1 Orange County Employees Association (OCEA) and the Orange County Sanitation District(OCSD) hereby agree to meet within two(2) months from the OCSD Board approval of this MOU to discuss the structure and process of a Labor Management Committee at OCSD. Absent mutual agreement regarding the structure and process of a Labor Management Committee,the parties will defer discussions to the time when a successor MOU is raised. OCEA-Engineering MOU July 1, 2014 to June 30,2015 Page 23 SIGNATURE PAGE 2014-2016 MEMORANDUM OF UNDERSTANDING BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE ORANGE COUNTY EMPLOYEES ASSOCIATION FOR THE ENGINEERING UNIT Executed: OCEA ENGINEERING UNIT ORANGE COUNTY SANITATION DISTRICT Bo G tierre , Labor Relations Representative Steve Filarsky, Chief Negotiator Jos au Boudreaux, Labor Relations James Herberg, General Manager Rep sentatye Richard Chappell, Senior Cog V ction Robert P. Ghirelli, Assistant General Manager Inspector Richard Spencer,Human Resources Manager Andrew Nau, Principal Human Resources Analyst Stephanie Good, Human Resources Analyst OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Page 24 Exhibit A ENGINEERING UNIT Effective Effective PaY 11�Jul-14 10.Jul-15 Classification Gmoa MIN MAX MIN I MAX Senior Constmction Inspector 78 $43.55 852.94 $14.41 $54.00 Engineering Associate 76 54144 $50.39 $d2.27 $51.40 Construction Inspector 74 33947 $4Z9] $40.26 $48.93 Engineering Assistant II 70 43576 $A3.a6 $36.48 $44.33 Engineering Assistant l 8$ $3240 $39.38 $33.05 S40.17 OCEA-Engineering MOU July 1, 2014 to June 30, 2016 Page 25 BOARD OF DIRECTORS Meeting Date TOBA.Of Dir. 02/25/15 02/25/15 AGENDA REPORT Item Number Item Number 4 11 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: SALARY RANGE ADJUSTMENTS FOR NON-EXEMPT CONFIDENTIAL EMPLOYEES GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 15-05, entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving Salary and Benefit Adjustments for Unrepresented Non-exempt Confidential Employees for Fiscal Years 2014/2015 & 2015/2016." SUMMARY Confidential employees perform duties and responsibilities that support OCSD management with labor relations. Confidential employees are not represented by a bargaining unit and meet directly with the General Manager regarding terms and conditions of employment. The work and duties performed by non-exempt confidential employees aligns with that of employees in the Orange County Employees Association (OCEA) bargaining units; however, due to their job duties in support of the labor relations program, confidential employees are not represented by a bargaining unit. Therefore, though they are in separate groups, unrepresented non-exempt confidential employees' wages and benefits have historically aligned with represented employees' negotiated wages and benefits in the OCEA groups. The General Manager is proposing the following salary adjustments for non-exempt confidential employees that align with represented employee wages and benefits. • Salary Increases (2-Year Cost: $18,190) - 2% salary increase in Year 1; and 2% salary increase in Year 2. Additionally, non-exempt confidential employees are committed to reconvening at a later date with the General Manager to discuss health insurance carrier and/or plan design changes in order to achieve cost containment. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION There are currently three (3) non-exempt confidential employees at OCSD in three (3) classifications. Confidential employees are those employees who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations. Non- exempt confidential employees hold the following classifications: Administrative Assistant Human Resources Assistant Program Assistant Confidential employees are not represented by a bargaining unit; instead confidential employees represent themselves as a group in informal discussions with OCSD's General Manager regarding wages, hours, and other terms and conditions of employment. The General Manager recommends the following changes: • Salary o Year 1 — 2.0% Salary Increase, retroactive to the first pay period of July 2014. o Year 2 — 2.0% Salary Increase, effective the first pay period of July 2015. The cost of the salary increase for non-exempt confidential employee classifications is approximately $18,190. The proposal for non-exempt confidential employees also includes a commitment to reconvene with the General Manager at a later date to discuss potential medical carrier and/or plan design changes in order to achieve cost containment. ATTACHMENT: Resolution OCSD 15-05 Page 2 of 2 RESOLUTION NO. OCSD 15-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING SALARY AND BENEFIT ADJUSTMENTS FOR UNREPRESENTED NON-EXEMPT CONFIDENTIAL EMPLOYEES FOR FISCAL YEARS 2014/2015 & 2015/2016 WHEREAS, there are thirteen (13) employees in the confidential employees job classifications at the Orange County Sanitation District ("OCSD") who, with authorized access, assist and act in a confidential capacity to and for persons who formulate, determine, and effectuate management policies with respect to labor relations; and WHEREAS, there are three (3) confidential employees holding non-exempt classifications; and WHEREAS, non-exempt confidential employees are unrepresented and meet directly with the General Manager about terms and conditions of employment; and WHEREAS, the General Manager recently entered into discussions with the non- exempt confidential employees and completed negotiations in February 2015, which resulted in agreed upon proposed changes to wages and benefits that align with those agreed upon for represented employees; and WHEREAS, non-exempt confidential employees have agreed to reconvene at a later date with the General Manager to discuss a medical reopener to discuss changes in order to avoid excise taxation; and NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. That the Board of Directors hereby authorizes and approves the following changes to wage and benefits for non-exempt confidential employees, which shall become effective as noted: a) Salaries • To align with similarly situated represented employee classifications, non-exempt confidential employees' salaries shall be adjusted per the following: • Year 1 — 2.0% Salary Increase, retroactive to the first pay period of July 2014. • Year 2 — 2.0% Salary Increase, effective the first pay period of July 2015. 2. That the General Manager, or his designee, is authorized to implement the OCSD 15-05-1 changes to wages and benefits approved herein, and reconvene at a later date with the non-exempt confidential employees to discuss health insurance carriers and/or plan design changes in order to achieve additional cost savings. PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 25, 2015. Tom Beamish, Chairman of the Board ATTEST: Kelly A. Lore Acting Clerk of the Board OCSD 15-05-2 STEERING COMMITTEE Neetlog Dare TOBA.Of Dir. OV25115 02ft5/ls AGENDA REPORT Item Number Item Nu bar s 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Robert P. Ghirelli, Assistant General Manager SUBJECT: REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION TO INCLUDE COMPENSABLE MILEAGE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 15-06, A Resolution of the Board of Directors of the Orange County Sanitation District Adopting a Revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation and Repealing Resolution No. OCSD 14-04. SUMMARY The District does not have a written policy regarding compensation mileage for Directors traveling to District meetings. Staff recommends formalizing a policy to ensure consistent reimbursement and compliance with state law. It is recommended that the District reimburse mileage according to the actual distance traveled. PRIOR COMMITTEE/BOARD ACTIONS March 2014 - Adopt Resolution No. OCSD 14-04 - Minor revisions were made to the previous resolution including: Reimbursement rates needed to be adjusted slightly to reflect the present cost of travel; conforming to the Ordinance setting the compensation of Directors; clarifying events and expenses that are subject to reimbursement and compensation and reorganizing the policy for easier reference. May 2006 — Adopt Resolution No. OCSD 06-11, A Resolution of the Board of Directors of Orange County Sanitation District Establishing a Policy Regarding Board of Directors' Business and Travel Expense Reimbursement, and Meeting Attendance and Compensation, and Repealing Resolution No. OCSD 06-09. CEQA N/A Page 1 of 2 BUDGET/PURCHASING ORDINANCE COMPLIANCE The revisions to the Policy are not expected to have major effects on the budget. ATTACHMENT The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package and attachments: • Proposed Resolution No. OCSD 15-06 • Resolution No. OCSD 14-04 Page 2 of 2 RESOLUTION NO. OCSD 15-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING A REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION AND REPEALING RESOLUTION NO. OCSD 14-04 WHEREAS, pursuant to Government Code section 53232.2, the Board of Directors has adopted a written policy specifying the types of occurrences that qualify a member of the Board of Directors to receive reimbursement of expenses related to travel, meals, lodging, and other actual and necessary expenses; and WHEREAS, the District currently has no uniform procedure for calculating and reimbursing travel expenses for meetings; and WHEREAS, the Board of Directors desires to revise its policies to standardize the calculation and reimbursement of travel expenses for meetings; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 14-04 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Exhibit "A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 25, 2015, Tom Beamish Chairman of the Board ATTEST: Kelly Lore Acting Clerk of the Board 1069790.1 OCSD 15-06-1 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 15-06 was passed and adopted at a regular meeting of said Board on the 25th day of February, 2015, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 25th day of February, 2015. Kelly Lore Acting Clerk of the Board of Directors Orange County Sanitation District 1069790.1 OCSD 15-06-2 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION This Policy applies to all regular District Board Members and Alternate Board Members. ARTICLE I: TERMS AND DEFINITIONS As used in this Policy, the following terms shall have the identified meanings. "Accountable Plan" shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. "Board Vice-Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Vice-Chair. Whenever this Policy authorizes or requires the Board Chair to act, the Board Vice-Chair may act in the event that the Board Chair is reasonably unavailable to act. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. "Director" shall mean a Member of the District's Board of Directors, and is the same as "Board Member" as described above. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. 1069790.1 OCSD 15-06-3 ARTICLE II. BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT Section 1: General Provisions. The District shall reimburse Board Members for actual and necessary expenses incurred in the performance of their official duties, in accordance with this Article II. Reimbursable expenses include, but are not necessarily limited to, expenses related to travel, meals, and lodging. This Policy serves as the District's "Accountable Plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. Section 2: Activities Eligible for Reimbursement. Board Members may receive reimbursement for actual and necessary expenses incurred in the performance of official duties in connection with the following activities: i. Communicating with representatives of regional, state, and national government on issues or matters affecting the District; ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; Ill. Participating in regional, state, and national organizations whose activities support the District's interests; iv. Attending District events at the invitation of the Board Chair, General Manager, or his/her designee; and V. Implementing a strategy approved by the District for District-related matters. vi. Meetings such as those listed above for which compensation is expressly authorized under this Policy. A Board Member and his or her Alternate Board Member cannot both be compensated for attendance at the same event without prior approval by the Board Chair. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure that all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair may approve or deny requests for travel or business activities and reimbursements for Board Members. 1069790.1 OCSD 15-06-4 B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all travel expenses that have not been reconciled. The Travel Liaison will also arrange all travel, lodging, accommodations, and seminar/conference registrations for Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case- by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses conform to this Policy. Section 4: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars. Conferences. and Meetings. A. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry. Attendance at seminars, conferences, and meetings, such as the aforementioned, must be approved in advance by the Steering Committee, except when specifically pre- authorized by this Policy. In the event there is not sufficient time to receive approval from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. B. Directors may be asked to, or may desire to, give presentations or otherwise represent the District at seminars, conferences, or meetings. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the Steering Committee. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to receive authorization to act as District representative from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. 1069790.1 OCSD 15-06-5 C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an officer of the association or trade group organizing the event. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States may only be approved by the Steering Committee. Section 6: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the 1069790.1 OCSD 15-06-6 period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G. Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffeur-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally-owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section7: Air Travel . A. Air Travel must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air Travel should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 8: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. C. Overnight stays may be allowed for meetings or training functions lasting more than one day in OCSD's general geographical area (Orange, Los Angeles, 1069790.1 OCSD 15-06-7 Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties) when the travel time involved is significant. Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. All meals that are subject to reimbursement will not exceed the rates indicated below. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts in Internal Revenue Service Publication 463, or any successor publication, or as specifically indicated below, whichever is less. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $30.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $75 per travel day. Receipts must provide a detailed account from the restaurant describing actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. 1069790.1 OCSD 15-06-8 Ill. Meals provided to a spouse or guest. iv. Alcoholic beverages. Section 10: Extended Travel and/or Travel with Family Members. A. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. B. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days must be approved by the Board Chair in advance. Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted and coordinated through the Travel Liaison, no later than three weeks after the travel has concluded. The Travel Liaison shall ensure that all applicable forms and receipts are prepared and attached, and follow District procedure on expense reimbursement. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair. All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to, in-room movies, service bar, and similar extras will not be reimbursed. B. All expense reports shall include detailed receipts and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. If a receipt is misplaced or lost, a lost/unavailable receipts memorandum must be prepared detailing the information required for the expense report, including the date, payee, description of the expense, business purpose, those in attendance, and the amount. The memorandum must be signed by the General Manager and attached to the reimbursement request. Section 12: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which reimbursable expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. 1069790.1 OCSD 15-06-9 Section 13: Misuse of Resources: Falsification of Reports. Any Board member that misuses public resources, or falsifies expense reports, may lose reimbursement privileges, be required to pay restitution, and/or be subject to civil penalties and/or criminal prosecution. ARTICLE III. COMPENSATION Section 1: Stipends and Compensation. A. Rate. Directors shall be paid compensation for each meeting attended and for each day's service rendered as a member of the Board, at the rate established by District Ordinance, in accordance with this Policy. Directors may receive compensation up to a maximum number of days each month, as prescribed by District Ordinance. B. Authorized Meetings. Directors shall receive compensation, without further action or authorization of the Steering Committee or Board of Directors, for attendance at the following: i. Board of Directors Meetings, Standing Committee Meetings, Special Committee Meetings, and Ad Hoc Committee Meetings, at which the Director is a duly appointed member; ii. Meetings, conferences, and committee meetings of the California Association of Sanitation Agencies, and the National Association of Clean Water Agencies; iii. Meetings of other governmental agencies to which the Director was appointed by the Board Chair; iv. Meetings or events approved by the Board Chair. Meetings or events not approved by the Board Chair or listed above are not considered business of the District. C. Travel Reimbursement. For the purposes of calculating mileage to attend the meetings described in Section 1B of this Article, Directors shall be reimbursed for the lesser of: the mileage from their primary administrative local government office, or the actual distance travelled. 1069790.1 OCSD 15-06-10 Section 2: Waiver of Compensation. Directors may waive their compensation or so choose to be compensated at a lower rate than the rate established under District Ordinance. Such requests must be submitted in writing to the Clerk of the Board. Section 3: Additional Service Subject to Compensation. Each day's service rendered as a Member of the District's Board of Directors shall be deemed to include, but not be limited to: A. Attendance at any meeting of a Committee of which the Director is not a member, when expressly invited or requested to attend by the Board Chair. B. Attendance at conferences or meetings with State and/or Federal Legislators regarding District business, when approved by the Steering Committee. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by the Steering Committee or Board Chair, or when designated by the General Manager with the concurrence of the Board Vice-Chair in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events when attending as an official representative of the Board of Directors of the District. iii. Meetings with other elected officials or their employees, which may or may not include District staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or National Association of Clean Water Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. 1069790.1 OCSD 15-06-11 viii. Ethics training required by Government Code sections 53234 — 53235.5. Section 4: Non Comoensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. B. Nonprofit organization events. C. District-sponsored employee events, including, but not limited to, the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Steering Committee. E. Service club meetings other than those included in Sections 1 and 3 above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. I. Meetings, tours, and similar events conducted at the request of the Board Member. Section 5: One meeting per day. No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 6: Alternates. No Alternate Director shall receive compensation for attendance at any meeting or event unless serving in the absence of the regular Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. 1069790.1 OCSD 15-06-12 ARTICLE IV. EFFECTIVE DATE This Policy was duly adopted by action of the Board of Directors, on February 25, 2015 and shall be effective upon its adoption. 1069790.1 OCSD 15-06-13 RESOLUTION NO. OCSD 14-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING A REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION AND REPEALING RESOLUTION NO. OCSD 06-11 WHEREAS, pursuant to Government Code section 53232.2, the Board of Directors has adopted a written policy specifying the types of occurrences that qualify a member of the Board of Directors to receive reimbursement of expenses related to travel, meals, lodging, and other actual and necessary expenses; and WHEREAS, pursuant to Health & Safety Code section 4733, the District has adopted an Ordinance and a written policy authorizing the payment of compensation to members of the Board of Directors for attendance at meetings and for each day's service rendered as a member by request of the Board Chair; and WHEREAS, the Board of Directors desires to revise its policies for expense reimbursement and compensation; NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: Adoption of Policy and Establishment of Procedures. The Board of Directors hereby adopts the revised Policy Regarding Board of Directors' Expense Reimbursement and Meeting Attendance and Compensation, set forth on Exhibit "A", attached hereto and incorporated herein by reference. Section 2: Rescission of Inconsistent Resolutions and Policies. Resolution No. OCSD 06-11 is hereby rescinded. In addition, any prior resolutions and/or policies established by the Board of Directors that are in conflict with the policy set forth in Exhibit "A" shall be deemed rescinded to the extent of such conflict. PASSED AND ADOPTED at a regular meeting held March 26, 2014. 1� Troy Edg r Chairman of t Board ATTEST: Maria Ayala C2rk of the Board 9627492 OCSD 14-04-1 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Maria E. Ayala, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 14-04 was passed and adopted at a regular meeting of said Board on the 26th day of March 2014, by the following vote, to wit: AYES: Beamish, Benavides, Choi, Curry, Diep, Edgar, Ferryman, Hernandez, Jones, Kim, Kring, Levitt, Murdock, Nagel, Nelson, Nguyen, Nielsen, Reinhart (Alternate), Seabourn, Shawver, Smith, F., Smith, T., and Sullivan (Alternate). NOES: None. ABSTENTIONS: None. ABSENT: Narain and Reese. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 26th day of March, 2014. Maria . Ayala Clerk of the Board of Directors Orange County Sanitation District 962749.2 OCSD 14-04-2 EXHIBIT "A" ORANGE COUNTY SANITATION DISTRICT POLICY REGARDING BOARD OF DIRECTORS' EXPENSE REIMBURSEMENT AND MEETING ATTENDANCE AND COMPENSATION This Policy applies to all regular District Board Members and Alternate Board Members. ARTICLE I: TERMS AND DEFINITIONS As used in this Policy, the following terms shall have the identified meanings. "Accountable Plan" shall mean the Internal Revenue Service Publication No. 463 for Travel, Entertainment, Gift and Car Expenses, or any successor publication. "Alternate Board Member" shall mean a Member of the District's Board of Directors designated by the Director's agency to serve in the absence of the Board Member. "Board Chair"shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Chair. "Board Vice-Chair" shall mean the Member of the District's Board of Directors who has been elected by the other Members to serve as Vice-Chair. Whenever this Policy authorizes or requires the Board Chair to act, the Board Vice-Chair may act in the event that the Board Chair is reasonably unavailable to act. "Board Member" shall mean a Member of the District's Board of Directors, appointed by a member agency pursuant to California Health and Safety Code Section 4730.65. "Director" shall mean a Member of the District's Board of Directors, and is the same as "Board Member" as described above. "Incidentals" shall mean any minor, miscellaneous expense incurred during travel, including but not limited to, telephone, facsimile or computer connection service, local ground transportation, baggage handling and storage, and snacks. "Travel Liaison" shall mean the Secretary to the General Manager, or such other employee as designated in writing by the General Manager. 9627492 OCSD 14-04-3 ARTICLE II. BUSINESS AND TRAVEL EXPENSE REIMBURSEMENT Section 1: General Provisions. The District shall reimburse Board Members for actual and necessary expenses incurred in the performance of their official duties, in accordance with this Article II. Reimbursable expenses include, but are not necessarily limited to, expenses related to travel, meals, and lodging. This Policy serves as the District's "Accountable Plan" under the applicable requirements of the Internal Revenue Code and Treasury Regulations. Section 2: Activities Eligible for Reimbursement. Board Members may receive reimbursement for actual and necessary expenses incurred in the performance of official duties in connection with the following activities: i. Communicating with representatives of regional, state, and national government on issues or matters affecting the District; ii. Attending conferences and/or educational seminars designed to improve the Board Members' expertise and information levels, including, but not limited to, ethics training required pursuant to Government Code Section 53234; iii. Participating in regional, state, and national organizations whose activities support the District's interests; iv. Attending District events at the invitation of the Board Chair, General Manager, or his/her designee; and V. Implementing a strategy approved by the District for District-related matters. vi. Meetings such as those listed above for which compensation is expressly authorized under this Policy. A Board Member and his or her Alternate Board Member cannot both be compensated for attendance at the same event without prior approval by the Board Chair. Section 3: Responsibilities. A. Directors shall be familiar with and comply with this Policy; ensure that all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences to avoid unnecessary duplication; and promote economic means of travel. The Board Chair may approve or deny requests for travel or business activities and reimbursements for Board Members. 962749.2 OCSD 14-044 B. The General Manager shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses are reasonable; coordinate multiple Director participation at conferences; and promote economic means of travel. C. The Travel Liaison shall be familiar with and comply with this Policy; promote economic and reasonable means of travel; and inform the General Manager of all travel expenses that have not been reconciled. The Travel Liaison will also arrange all travel, lodging, accommodations, and seminar/conference registrations for Directors. The Travel Liaison shall use the District's designated travel agency for booking all air and ground travel. The General Manager is authorized to grant exceptions on a case- by-case basis. Any travel or registration not booked through the Travel Liaison, or not granted an exception, may be subject to payment by the Director without reimbursement from the District. D. The District Controller shall be familiar with and comply with this Policy; ensure all travel and other reimbursable expenses conform to this Policy. Section 4: Designated Travel Agency. The District will designate a single travel agency for the Travel Liaison to use to arrange all travel and lodging accommodations for Directors. Section 5: Seminars. Conferences. and Meetings. A. Directors may from time to time receive requests or may elect to attend meetings or conferences pertaining to the water and wastewater utility industry. Attendance at seminars, conferences, and meetings, such as the aforementioned, must be approved in advance by the Steering Committee, except when specifically pre- authorized by this Policy. In the event there is not sufficient time to receive approval from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. B. Directors may be asked to, or may desire to, give presentations or otherwise represent the District at seminars, conferences, or meetings. Any Director wishing to attend such events and represent the District by providing a presentation or oral commentary shall request and receive advance authorization from the Steering Committee. If such a request is granted, all expense reimbursements and travel and meeting attendance requirements shall comply with this Policy. In the event there is not sufficient time to receive authorization to act as District representative from the Steering Committee, the Board Chair has the authority to approve such a request in advance. Any such approval shall be ratified by the Steering Committee at its next regularly scheduled meeting. 962749.2 OCSD 14-04-5 C. The number of Directors attending a seminar, conference, or meeting should be minimized, and there must be a District business reason for attendance. Such reasons would include, but are not limited to: presentation of technical findings; attendance at committee meetings, or technical sessions dealing with issues related to District business; or participation as an officer of the association or trade group organizing the event. D. Seminars must be selected based on value to the District. Benefits would include improved efficiency and effectiveness, as well as becoming familiar with new regulatory standards. Preference will be given to seminars that are provided within the Southern California region. E. Attendance at seminars, conferences, or meetings in "destination resort" areas outside California or areas outside the continental United States may only be approved by the Steering Committee. Section 6: Ground Transportation. A. The most economical mode and class of transportation reasonably consistent with travel and scheduling requirements will be used. Each Director shall be reimbursed at the rate per mile established by the United States Internal Revenue Service as allowable for mileage expense deduction for use of a personal vehicle on business of the District. As said allowable rate established by the Internal Revenue Service is periodically changed, said changes in the reimbursement rate shall become effective on the first day of the month following the month in which the change is announced by the Internal Revenue Service. B. In no event shall the amount paid for mileage reimbursement for use of a personally-owned vehicle used for travel in lieu of air travel, exceed the lowest available cost of coach class airfare. C. Personally-owned vehicles used in the conduct of District business must be insured for property and liability damage in an amount not less than the minimum limits required by the California Financial Responsibility Act. D. Reasonable vehicle parking and storage costs will be allowed when rental or personally-owned vehicles are used for District business. E. Highway and bridge tolls are allowable expenses when incurred while conducting District business. F. Directors should only use rental cars for ground transportation when necessary or when it is less expensive than other forms of transportation such as trains, buses, taxis, or shuttles. Discretion must be used in selecting rental car size. The rental car should be the smallest size that provides adequate safety and comfort for the 962749.2 OCSD 14-04-6 period of time it is in use. To accommodate a group of travelers, a larger vehicle may be rented in lieu of renting separate vehicles. G. Directors will not be reimbursed for any surplus insurance purchased for rental cars. The District and Director are sufficiently insured through existing District policies. Only Directors are allowed to operate rental cars. H. Use of chauffeur-driven limousines is not allowed while conducting District business. I. When using ground transportation other than personally-owned vehicles, Directors shall use government and group rates offered by the provider of transportation services when available. Section 7: Air Travel . A. Air Travel must be at coach class level. First class travel will only be allowed on an exception basis and must be approved in advance by the Board Chair, based upon physical needs or ability to conduct meaningful work while on board. B. Air Travel should be arranged as early as possible to take advantage of reduced fares for early reservations. Consideration should be given to alternative departure times, departure and arrival airports, dates, flight times, and stopovers to minimize airfares; however, the total cost of the alternatives (e.g., ground transportation, lodging) should also be considered in selecting an alternative. Internet booking services can be consulted to help in finding the optimum alternative; however, flights must still be reserved by the Travel Liaison. C. Government and group rates for airline travel shall be used when available. Section 8: Lodging. A. Government and group rates offered by a provider of lodging services shall be used when available. B. When travel is to a conference or organized educational activity, lodging costs shall not exceed the maximum group published by the conference or activity sponsor. Some conferences require early booking to take advantage of reduced rates. If lodging cannot be arranged at the conference group rate, other lodging accommodations may also be arranged if the cost is less than or equal to the conference group rate. C. Overnight stays may be allowed for meetings or training functions lasting more than one day in OCSD's general geographical area (Orange, Los Angeles, 962749.2 OCSD 14-04-7 Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties) when the travel time involved is significant. Section 9: Meals and Incidentals. Meal expenses are allowed while Directors are traveling. Expenditures for meals will be moderate and reasonable. Expenses for meals not associated with travel but related to an appropriate business purpose meeting, are also allowed. Non-travel business meals will only be reimbursed if taken in conjunction with a District business meeting. All meals that are subject to reimbursement will not exceed the rates indicated below. A. Reimbursement Rates. Directors will be reimbursed for actual meal expenses, including all taxes and gratuities, up to the amounts in Internal Revenue Service Publication 463, or any successor publication, or as specifically indicated below, whichever is less. If meal expenses exceed the allowance amount, the Director will only be reimbursed the allowance amount, with the remainder being paid by the Director. If meal expenses are less than the allowable amount, only the actual expense amount will be reimbursed. All meal expenses must be documented in detail in accordance with this Policy. When receipts are provided, the maximum per meal/expense reimbursements are as follows: Breakfast $15.00 Lunch $20.00 Dinner $30.00 Snacks $10.00 Multiple meal expenses cannot be combined to pay for a more expensive single meal. The Policy is applied strictly as a per meal expense. In no event will a Director be reimbursed more than $75 per travel day. Receipts must provide a detailed account from the restaurant describing actual costs. Restaurant bill stubs do not provide sufficient detail and are not acceptable for reimbursement. Credit card receipts may be accepted, subject to Board Chair approval if itemized, if detailed meal receipts are not provided by the restaurant. B. Non-Reimbursable Meals and Incidentals. Directors will not be reimbursed for the following: i. Meals that are included in the cost of a conference or seminar, nor for meals taken elsewhere in lieu of the meal provided. ii. Meals provided by others. Conflict of interest policies and applicable statutes should be considered when providing meals for or receiving meals from persons or entities other than the District representatives. 962749.2 OCSD 14-04-8 Ill. Meals provided to a spouse or guest. iv. Alcoholic beverages. Section 10: Extended Travel and/or Travel with Family Members. A. When a Director elects to extend his/her stay at travel destinations, or when traveling with family members, all expenses related to such extended or family travel, including, but not limited to airfare, extra meals, extended car rental, lodging, or incidentals shall be paid by the Director without reimbursement. B. When travel time restrictions or transportation discounts make it desirable for a Director to arrive at a conference, seminar, or meeting a day early, or to stay an additional day, those travel days must be approved by the Board Chair in advance. Section 11: Requests for Reimbursement. A. Requests for reimbursement shall be submitted and coordinated through the Travel Liaison, no later than three weeks after the travel has concluded. The Travel Liaison shall ensure that all applicable forms and receipts are prepared and attached, and follow District procedure on expense reimbursement. A delinquent expense report will not be reimbursed unless justified in writing and approved by the Board Chair. All requests for reimbursement must be accompanied by receipts or documentation evidencing each expense. Improper expenditures, or those not adequately documented, will not be reimbursed. Non-essential expenses, including but not limited to, in-room movies, service bar, and similar extras will not be reimbursed. B. All expense reports shall include detailed receipts and state the date, type of expense, District business purpose, those in attendance and their affiliations, and amounts expended. If a receipt is misplaced or lost, a lostlunavailable receipts memorandum must be prepared detailing the information required for the expense report, including the date, payee, description of the expense, business purpose, those in attendance, and the amount. The memorandum must be signed by the General Manager and attached to the reimbursement request. Section 12: Brief Reports to Board. At the next regular meeting of the Board of Directors following the event for which reimbursable expenses are incurred, Directors shall briefly report, orally or in writing, on any meetings attended at District expense. If multiple Directors attended the meeting at District expense, a joint report may be made to the Board of Directors. 962749.2 OCSD 14-D4-9 Section 13: Misuse of Resources: Falsification of Reports. Any Board member that misuses public resources, or falsifies expense reports, may lose reimbursement privileges, be required to pay restitution, and/or be subject to civil penalties and/or criminal prosecution. ARTICLE III. COMPENSATION Section 1: Stipends and Compensation. A. Rate. Directors shall be paid compensation for each meeting attended and for each day's service rendered as a member of the Board, at the rate established by District Ordinance, in accordance with this Policy. Directors may receive compensation up to a maximum number of days each month, as prescribed by District Ordinance. B. Authorized Meetings. Directors shall receive compensation, without further action or authorization of the Steering Committee or Board of Directors, for attendance at the following: i. Board of Directors Meetings, Standing Committee Meetings, Special Committee Meetings, and Ad Hoc Committee Meetings, at which the Director is a duly appointed member; ii. Meetings, conferences, and committee meetings of the California Association of Sanitation Agencies, and the National Association of Clean Water Agencies; iii. Meetings of other governmental agencies to which the Director was appointed by the Board Chair; iv. Meetings or events approved by the Board Chair. Meetings or events not approved by the Board Chair or listed above are not considered business of the District. Section 2: Waiver of Compensation. Directors may waive their compensation or so choose to be compensated at a lower rate than the rate established under District Ordinance. Such requests must be submitted in writing to the Clerk of the Board. Section 3: Additional Service Subject to Compensation. Each day's service rendered as a Member of the District's Board of Directors shall be deemed to include, but not be limited to: %2749 z OCSD 14-04-10 A. Attendance at any meeting of a Committee of which the Director is not a member, when expressly invited or requested to attend by the Board Chair. B. Attendance at conferences or meetings with State and/or Federal Legislators regarding District business, when approved by the Steering Committee. C. Attendance at a meeting, hearing, or conference relating to the business of the District, when approved by the Steering Committee or Board Chair, or when designated by the General Manager with the concurrence of the Board Vice-Chair in advance, and when deemed to be in the best interests of the District, including but not limited to the following: i. Meetings of nonprofit organizations or service club meetings where a Board Member is making a presentation on behalf of the District. ii. Ceremonial events when attending as an official representative of the Board of Directors of the District. Ill. Meetings with other elected officials or their employees, which may or may not include District staff. iv. Meetings of the governing body of another agency, of which the District has an official delegate, where a matter directly affecting the interests of the District is agendized for discussion and the Board Member is not compensated by the other agency. V. Meetings with District Staff. vi. Industry related conferences other than California Association of Sanitation Agencies' or National Association of Clean Water Agencies' work conferences. vii. Telephone conferences when physical attendance is impractical and not mandatory. viii. Ethics training required by Government Code sections 53234 — 53235.5. Section 4: Non Comoensable Attendance. Board Members shall not be compensated for the following meetings where there is no District-related business to be conducted: A. Nonprofit organization meetings. 962749.2 OCSD 14-04-11 B. Nonprofit organization events. C. District-sponsored employee events, including, but not limited to, the annual holiday luncheon, employee picnic, or retirement events. D. Social or ceremonial events not pre-authorized by the Steering Committee. E. Service club meetings other than those included in Sections 1 and 3 above. F. Parades, festivals, holiday events, or retirement dinners. G. Meetings with existing or potential contractors, vendors, or consultants. H. Meetings of partisan political organizations. I. Meetings, tours, and similar events conducted at the request of the Board Member. Section 5: One meeting per day. No Director shall receive compensation for attendance at more than one meeting on any one calendar day. Section 6: Alternates. No Alternate Director shall receive compensation for attendance at any meeting or event unless serving in the absence of the regular Director, unless the Board Chair invites the Alternate Director to attend the meeting and approves payment of compensation. ARTICLE IV. EFFECTIVE DATE This Policy was duly adopted by action of the Board of Directors, on March 26, 2014 and shall be effective upon its adoption. 9627492 OCSD 14-04-12 ITEM NO. 13 MINUTES LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE MEETING Orange County Sanitation District The Legislative and Public Affairs Special Committee meeting convened on Monday, February 9, 2015, at 8:03 a.m. in the Administration Building of the Orange County Sanitation District. Vice-Chair Nielsen called the meeting to order and Director Greg Seboum led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS STAFF PRESENT PRESENT: Jim Herberg, General Manager John Nielsen, Board Vice-Chair Bob Ghirelli, Assistant General Greg Sebourn, Operations Committee Manager Vice-Chair Nick Arhontes, Director of Facilities David Benavides, Director Support Services Tyler Diep, Director Jeff Reed, Director of Human Lucille Kring, Director Resources John Withers, Administration Rob Thompson, Director of Committee Chair Engineering Ed Torres, Director of Operations & Maintenance COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance & Tom Beamish, Board Chair Administrative Services Kelly A. Lore, Acting Clerk of the Board Jennifer Cabral Jim Colston Norbert Gaia Al Garcia Rebecca Long Kelly Newell OTHERS PRESENT: Brad Hogin, General Counsel Eric Sapirstein, ENS (via Teleconference) Ian Delzer, Townsend Public Affairs Heather Stratman, Townsend Public Affairs Minutes of the Legislative and Public Affairs Special Committee February 9, 2015 Page 2 of 5 PUBLIC COMMENTS: None. REPORTS: General Manager Herberg stated that to accommodate the members of Legislative and Public Affairs (LAPA) Committee and the Groundwater Replenishment System (GWRS) Steering Committee, the start time for LAPA meetings will begin at 3:30 p.m. on days when the GWRS Steering Committee meets, which is four times per year. The committee will be notified/reminded in advance. Vice-Chair Nielson reported that he had recently attended the California Association of Sanitation Agencies (CASA) winter conference where converting food waste into energy was discussed. CONSENT ITEMS: 1. MOVED, SECONDED and DULY CARRIED TO: Approve minutes for the Committee meeting held on January 12, 2015. AYES: Diep; Kring; Nielsen; Seboum and Withers NOES: None ABSTENTIONS: None ABSENT: Benavides; Beamish INFORMATIONAL ITEMS: 2. Public Affairs Update Principal Public Affairs Specialist, Jennifer Cabral reported on the Public Affairs outreach as follows: 15 tours with 200 guests hosted last month; two legislative tours and participation in a science fair at a local elementary school in Fountain Valley. In upcoming events, the District will participate at the Garden Grove Tat Festival on February 21 and the STEM Science Night at Sunny Hills High School on February 24. Ms. Cabral reported on the upcoming Honor Walk nominations due on Minutes of the Legislative and Public Affairs Special Committee February 9, 2015 Page 3 of 5 March 16 and explained the program, which recognizes former OCSD board members and staff for significant contributions to the District. If you are interested in nominating a past member, please submit that person's name to General Manager Herberg. The Honor Walk Recognition will be taking place in May. Ms. Cabral further reported on the following: high school video contest; construction outreach efforts regarding the Newport Force Main project, and Tustin project; stakeholder outreach meetings; levels of outreach/coordination efforts between OCSD and Orange County Water District (OCWD). Director Benavides arrived at 8:10 a.m. Ms. Cabral discussed the recent Board Orientation, handed out the list of monthly informational presentations that are scheduled for Committee meetings and inquired if there is anything the committee would like to add. Questions regarding the consultant for the construction outreach of the Newport Force Main Project 5-60, issues with the contractor and changes that have been made were answered by Ms. Cabral and Director of Engineering Rob Thompson. Mr. Thompson also stated that he would be speaking at the April meeting of Speak Up Newport. Director Withers suggested that, due to the large board member turnover, staff prepare a Board orientation online, which could be easily accessed at any time on the Directors webpage. 3. Legislative Updates Sr. Public Affairs Specialist Rebecca Long reported that a letter would be going out to various congressional staff thanking them for their support in the completion of construction activities to relocate a portion of the Santa Ana River Interceptor(SARI) line. She further reported on OCSD's opposition to SP-119 (Hill) which relates to the marking of lateral sewer lines that are not owned by OCSD; letters of support which are being prepared for the USRB WaterSMART grant for the GWRS feasibility study; plant tours taking place today for Assembly members' Ling Ling Chang and Matthew Harper; and the upcoming tour for Assemblywoman Young Kim. Minutes of the Legislative and Public Affairs Special Committee February 9, 2015 Page 4 of 5 Eric Saperstein, ENS Resources, Inc., reported on the President's budget submittal to Congress last week containing new bond programs to support water infrastructure and infrastructure financing tools. He further reported on drought relief; ongoing efforts to redefine which waters of the U.S. are subject to the Clean Water Act - no more additional mandates on fund sources and the CASA Washington DC Conference in late February, which Ms. Long will be attending for the District. Ms. Long reported that Public Affairs Specialist, Kelly Newell recently attended Senator Huff's Brea Chamber luncheon. Heather Stratman, Townsend Public Affairs, reported on Governor Brown's 2015-16 budget allocations from Proposition 1 Expenditure Plan and the District's eligibility for funds; GWRS expansion - feasibility study; guidelines and processes for acquiring funds; Integrated Regional Water Management (IRWM) grant program funding opportunities; legislation cycle and the matrix list of bill introductions effecting the District; and education and outreach with new members Senator Pat Bates and Senator Janet Nguyen. Director Withers left the meeting at 8:40 a.m. NON-CONSENT ITEMS: Assistant General Manager Bob Ghirelli and Ms. Cabral explained the educational program and answered questions from the committee. The committee suggested that this item be brought back for an update in one year to see the progress and outcome of the program. 4. MOVED, SECONDED and DULY CARRIED TO: Approve a Cooperative Agreement with Orange County Department of Education (OCDE) for Educational Services with Inside the Outdoors, through June 30, 2015 with an amount not to exceed $11,065, with four one-year renewal options, at an amount not to exceed $24,365 per renewal year. AYES: Benavides; Diep; Kring; Nielsen and Sebourn NOES: None ABSTENTIONS: None ABSENT: Beamish and Withers Minutes of the Legislative and Public Affairs Special Committee February 9, 2015 Page 5 of 5 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: In regards to Item 4, Ms. Cabral clarified that the dollar amount per student previously given was the total cost of the program, not just OCSD's portion. The final cost is $14.00 per student. ADJOURNMENT: Vice-Chair Nielsen declared the meeting adjourned at 9:03 a.m. to the next Legislative and Public Affairs Committee Meeting, March 9, 2015. Submitted by: Kelly A. Lore Acting Clerk of the Board BOARD OF DIRECTORS Neetlng Dare I TO%50/f Dir. 02/2 /15 AGENDA REPORT Item Number Item Numbe 4 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: MACARTHUR PUMP STATION REHABILITATION, PROJECT NO. 7-63 GENERAL MANAGER'S RECOMMENDATION A. Consider, receive, and file the Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the MacArthur Pump Station Rehabilitation, Project No. 7-63, prepared by JACOBS; and B. Adopt Resolution No. OCSD 15-07 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Mitigated Negative Declaration for the MacArthur Pump Station Rehabilitation Project No. 7-63; Adopting a Mitigation Monitoring and Reporting Program; an approving the MacArthur Pump Station Rehabilitation Project No. 7-63." SUMMARY MacArthur Pump Station Rehabilitation, Project No. 7-63, (Project) will design and construct mechanical, electrical, instrumentation and controls, structural, and architectural improvements to bring the existing facility into compliance with current Orange County Sanitation District (Sanitation District) standards, and local, state, and national laws. The existing facility is located at 4219 MacArthur Boulevard in the City of Newport Beach. The pump station has two vertical, non- clog sewage pumps (one duty and one standby). The Project will replace the existing pumps with new pumps to accommodate existing and projected flows and add emergency standby capacity. The pump station receives flows from the local tributary sewage system and has a 12-inch-diameter force main that discharges into the Von Karman Trunk Sewer. A Negative Declaration for this rehabilitation project was previously adopted in 2006. However, the rehabilitation project was not completed at that time and additional construction elements have since been added. Specifically, the new project elements include replacing 2,130 feet of existing force main with high-density polyethylene pipe, modifying an existing manhole located at the intersection of Birch Street and MacArthur Boulevard, and reconstructing 2,000 feet of upstream sewers and manholes. Pursuant to California Environmental Quality Act (CEQA), a Mitigated Negative Declaration (MND) was prepared because the Project, with mitigation, cannot or will not have a significant effect on the environment. Page 1 of 2 1060021.1 PRIOR COMMITTEE/BOARD ACTIONS May 2006 — Adopted the Negative Declaration for the original MacArthur Pump Station Rehabilitation Project. The original project was not constructed and additional elements were added. CEQA The Sanitation District, as lead agency, prepared an Initial Study in 2014 analyzing the Project's potential environmental impacts. Based on the Initial Study, it was determined that all of the Project's potentially significant environmental impacts can be mitigated to a level of less than significance. On this basis, an MIND and Mitigation Monitoring and Reporting Program have been prepared. A 30-day public review period commenced on November 20, 2014 and ended on December 20, 2014. The Draft Initial Study/MND was also submitted to the State Clearinghouse for a 30-day comment period (State Clearinghouse No. 2006031042). The Sanitation District received comments on the Draft Initial Study/MND, which are attached as Appendix A to the MIND. Responses to those comments have also been included in Appendix C to the MND. The proposed Resolution making CEQA findings and adopting the MND and Mitigation Monitoring and Reporting Program is attached for the Board's consideration and approval. BUDGET/PURCHASING ORDINANCE COMPLIANCE N/A ATTACHMENT The following attachment(a) maybe viewed on-line at the OCSD website (Mm w.ocsd.com) with the complete agenda package: • Exhibit A: OCSD Resolution No. 15-07 • Exhibit B: Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program KM:DC:sa:gc Page 2 d 2 1060021.1 RESOLUTION NO. OCSD 15-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING THE MITIGATED NEGATIVE DECLARATION FOR THE MACARTHUR PUMP STATION REHABILITATION, PROJECT NO. 7-63; ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM; AND APPROVING THE MACARTHUR PUMP STATION REHABILITATION, PROJECT NO. 7-63 WHEREAS, the Orange County Sanitation District (the "District") is presently considering the approval of a project known as the MacArthur Pump Station Rehabilitation, Project No. 7-63 (the "Project"); and WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 at seq. ("CEQA")) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 at seq.), the District as lead agency prepared an Initial Study/Mitigated Negative ("IS/MND") for the Project that analyzes the potential impacts of the Project, and identifies mitigation measures; and WHEREAS, the District has consulted with other public agencies and the general public, and provided such agencies and the public with the opportunity to provide written and oral comments on the Project and the IS/MND as required by CEQA, including a public review period of 30 days which commenced on November 20, 2014 and ended on December 20, 2014; and WHEREAS, on December 11, 2014, OCSD staff held a public meeting to provide a further opportunity for public agencies and the general public to comment on the IS/MND; and WHEREAS, the District has reviewed the comments received and has responded to the significant environmental issues raised during the review and consultation process; and WHEREAS, the comments received on the IS/MND, either in full or in summary, together with the District's responses have been included in the Mitigated Negative Declaration for the proposed Project; and 1060020.1 WHEREAS, the Mitigated Negative Declaration has been presented to the District's Board of Directors (the "Board") for review and consideration prior to the approval of, and commitment to, the Project. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVES, DETERMINES AND ORDER: 1. The Board has independently reviewed and considered the Mitigated Negative Declaration together with all comments received during the public review process; 2. The Mitigated Negative Declaration reflects the independent judgment and analysis of the Board; 3. The Board finds on the basis of the whole record before it that there is no substantial evidence that the Project, as mitigated, will have a significant effect on the environment; 4. The Board adopts the Mitigation Monitoring and Reporting Program (the "MMRP") attached as Attachment B to ensure that all mitigation measures identified in the Mitigated Negative Declaration are implemented; 5. The Mitigated Negative Declaration has been completed in compliance with the requirements of CEQA and is hereby adopted; 6. The Board approves the MacArthur Pump Station Rehabilitation, Project No. 7-63. 7. The documents and other materials that constitute the record of proceedings on which the Board's decision is based, are located at the District Administration Offices, 10844 Ellis Avenue, Fountain Valley, CA 92708 and the custodian for these documents is the Clerk of the Board. 8. District staff is authorized and directed to file the Notice of Determination (NOD) and any other documents in accordance with the requirements of CEQA. 1060020.1 PASSED AND ADOPTED at a regular meeting of the Board of Directors held February 25, 2015. Tom Beamish Board Chair ATTEST: Kelly A. Lore Acting Clerk of the Board 1060020.1 Mitigated Negative Declaration MacArthur Pump Station Rehabilitation Project Newport Beach, California Prepared for `o,H1Y SANI i4TON ti � ON POJfCT Nr' THE ENYYPO���? Orange County Sanitation District Prepared by JACOBS January 2015 Mitigated Negative Declaration Project Proponent: Orange County Sanitation District(Sanitation District) 10844 Ellis Avenue, Fountain Valley,California 92708 Project Description: The proposed MacArthur Pump Station Rehabilitation Project(Project)would design and construct mechanical, electrical, instrumentation and controls, structural, and architectural improvements to bring the existing facility into compliance with current Sanitation District standards, and local, state, and national laws. A Negative Declaration for this project was adopted in 2006. However,it was not constructed and additional construction elements have since been added. Specifically,the new project elements include replacing 2,130 feet of existing force main with high-density polyethylene pipe, modifying an existing manhole located at the intersection of Birch Street and MacArthur Boulevard, and reconstructing 2,000 feet of upstream sewers and manholes. Project Location: 4219 MacArthur Boulevard Newport Beach, California 92660 Finding: Pursuant to the provisions of the California Environmental Quality Act (CEQA), the Sanitation District has determined that the proposed Project will not have a significant effect on the environment. Following an Initial Study and assessment of possible adverse impacts,the proposed Project was determined not to have a significant impact on the environment. Therefore, the Sanitation District has prepared a Mitigated Negative Declaration in accordance with the provisions of CEQA. The Initial Study is available at www.ocsd.com. Copies are also available for viewing at: • Orange County Sanitation District, Administrative Office Bldg., Engineering Department, 10844 Ellis Avenue, Fountain Valley, CA 92708 • Orange County Public Library—Costa Mesa, 1855 Park Ave., Costa Mesa, CA 92627 • Newport Beach Public Library, 1000 Avocado Avenue,Newport Beach, CA 92660 • Newport Beach Public Library—Mariners Branch, 2005 Dover Drive,Newport Beach, CA 92660 Date: Signature: Staff: Date Filed with County Clerk: Initial Study MacArthur Pump Station Rehabilitation Project Newport Beach, California Prepared for ,rtv SANS,, 0 x q0 � �f rrHC THE 14' Orange County Sanitation District Prepared by JACOBS January 2015 Table of Contents Tableof Contents....................................................................................................................................i 1.0 Introduction................................................................................................................................. 1 1.1 Background ............................................................................................................................. 1 1.2 Purpose................................................................................................................................... 1 1.3 Statutory Requirements and Authority..................................................................................... 1 1.4 Permits and Approvals.............................................................................................................2 1.5 Agency Consultation and Coordination....................................................................................2 2.0 Project Description......................................................................................................................4 2.1 Project Background and Location............................................................................................4 2.2 Project Elements .....................................................................................................................4 2.3 Project Construction ................................................................................................................7 2.4 Project Operation................................................................................................................... 11 3.0 Environmental Checklist Form................................................................................................... 12 3.1 Project Description and Background...................................................................................... 12 3.2 Determination........................................................................................................................ 14 3.3 Evaluation of Environmental Impacts..................................................................................... 15 3.4 CEQA Checklist..................................................................................................................... 17 4.0 Environmental Evaluation.......................................................................................................... 29 4.1 Aesthetics..............................................................................................................................29 4.2 Agricultural Resources........................................................................................................... 30 4.3 Air Quality.............................................................................................................................. 30 4.4 Biological Resources.............................................................................................................34 4.5 Cultural Resources................................................................................................................35 4.6 Geology and Soils ................................................................................................................. 37 4.7 Greenhouse Gas Emissions.................................................................................................. 39 4.8 Hazards and Hazardous Materials.........................................................................................43 4.9 Hydrology and Water Quality.................................................................................................47 4.10 Land Use and Planning .........................................................................................................49 4.11 Mineral Resources.................................................................................................................50 4.12 Noise..................................................................................................................................... 51 4.13 Population and Housing......................................................................................................... 53 4.14 Public Services...................................................................................................................... 53 4.15 Recreation.............................................................................................................................54 4.16 TransportationfTraffic.............................................................................................................54 4.17 Utilities and Service Systems................................................................................................. 57 4.18 Mandatory Findings of Significance....................................................................................... 58 5.0 Preparers and Contributors....................................................................................................... 60 6.0 References................................................................................................................................ 61 Appendix A: Construction Emission Calculations Appendix B: Mitigation Monitoring and Reporting Plan Appendix C: Comment Letters and Response to Comments List of Figures Figure 2-1: Project Vicinity Map.............................................................................................................5 Figure2-2: Project Area Map.................................................................................................................6 List of Tables Table 1-1: Project Permits and Approvals..............................................................................................2 Table 2-1: Construction Equipment for Pump Station Rehabilitation......................................................9 Table 2-2: Construction Equipment for Force Main Replacement..........................................................9 Table 2-3: Construction Equipment for Manhole Modification .............................................................. 10 Table 2-4: Construction Equipment for Gravity Sewer Lines Reconstruction........................................ 10 Table 4-1: Projected Construction Emissions.......................................................................................32 Table 4-2: On-Road Greenhouse Gas Emissions................................................................................40 Table 4-3: Off-Road Greenhouse Gas Emissions................................................................................40 iii Acronyms and Abbreviations AC Air Conditioning BMP best management practice CEQA California Environmental Quality Act CO carbon monoxide EBt Environmental Impact Report gpm gallons per minute HVAC Heating, Ventilation, and Air Conditioning lb/day pounds per day MGD million gallons per day ND Negative Declaration NOx nitrogen oxides NPDES National Pollutant Discharge Elimination System PM10 particulate matter less than I0-microns Project MacArthur Pump Station Rehabilitation Project ROC reactive organic compounds Sanitation District Orange County Sanitation District SCAB South Coast Air Basin SCAQMD South Coast Air Quality Management District sox sulfur oxides UBC Uniform Building Code iv 1 .0 Introduction 1.1 Background This Initial Study has been prepared in accordance with the California Environmental Quality Act (CEQA) and the Guidelines for CEQA. The Initial Study examines the direct, indirect, growth-inducing, irreversible, short-and long-term and cumulative environmental effects associated with the construction and operation of the proposed MacArthur Pump Station Rehabilitation Project(Project). On May 24, 2006 a Negative Declaration was approved for the rehabilitation of the MacArthur Pump Station. However, because an extended period of time has elapsed since its adoption, and new elements have been added to the project, a new Initial Study document is required. The intent of this document is to re-evaluate the pump station rehabilitation,including the additional project elements under the current CEQA guidelines. 1.2 Purpose Pursuant to Section 15063(a) of CEQA Guidelines, the Orange County Sanitation District(Sanitation District),acting in the capacity of Lead Agency, is required to undertake the preparation of an Initial Study to determine if the proposed action will have a significant effect on the environment. The purposes of this Initial Study are to: (1)identify potential environmental impacts, (2)provide the Lead Agency with information to use as the basis for deciding whether to prepare an Environmental Impact Report(EIR) or Negative Declaration(ND), (3) enable the Lead Agency to modify the proposed Project (through mitigation of adverse impacts), (4)facilitate assessment of potential environmental impacts early in the design of the proposed Project, and(5)provide documentation for the potential finding that the proposed Project will not have a significant effect on the environment or can be mitigated to a level of insignificance. This Initial Study is an informational document providing an environmental basis for subsequent discretionary actions that could be required from other Responsible Agencies. 1.3 Statutory Requirements and Authority In the State of California CEQA Guidelines, Section 15063 identifies specific disclosure requirements for inclusion in an Initial Study. Pursuant to those requirements,an Initial Study shall include: (1) a description of the proposed Project, including the location of the Project site; (2)an identification of the environmental setting; (3) an identification of environmental effects by use of a checklist,matrix, or other method,provided that entries on a checklist or other form are briefly explained to indicate that some evidence exists to support the entries; (4) a discussion of ways to mitigate significant effects identified, if any; (5) an examination of whether the proposed Project is compatible with existing zoning,plans,and other applicable land-use controls; and(6)the name(s)of the person or persons who prepared or participated in the preparation of the Initial Study. 1 The Sanitation District will host a public meeting on December 11,2014, located at the Orange County Sanitation District Administration Offices Board Room(10844 Ellis Avenue,Fountain Valley, CA 92708) at 6:00 p.m. to solicit comments on the proposed Project and this Initial Study. You may provide comments during the hearing or in writing. Comments will be considered before action is taken to approve, approve with amendments, or deny the proposed Project. All comments must be received by December 20,2014. Submit comments via postal mail or email to: Daisy Covarrubias, Senior Staff Analyst Orange County Sanitation District, Planning Division 10844 Ellis Ave,Fountain Valley, CA 92708-7018 Email: dcovarrubim@ocsd.com The Initial Study is available at www.ocsd.com. Copies are also available for viewing at: • Orange County Sanitation District, Administrative Office Bldg.,Engineering Department, 10844 Ellis Avenue,Fountain Valley, CA 92708 • Orange County Public Library—Costa Mesa, 1855 Park Ave., Costa Mesa, CA 92627 • Newport Beach Public Library, 1000 Avocado Avenue,Newport Beach, CA 92660 • Newport Beach Public Library—Mariners Branch, 2005 Dover Drive,Newport Beach, CA 92660 1.4 Permits and Approvals Public agencies may use this Initial Study as the basis for their decisions to issue approvals and/or permits that could be applicable to the proposed Project. Table 1-1 provides a list of those entitlements and permits that could be required for the proposed Project. Table 1-1: Project Permits and Approvals Agency Name Permit or Approval South Coast Air Quality Permit to Construct Management District City of Newport Beach Fire Permit/Approval of Traffic Control Plan 1.5 Agency Consultation and Coordination The agencies listed in Table 1-1 could require the Sanitation District to obtain approval for the proposed Project. Coordination with other agencies would be required to determine the specific nature of any 2 future permits or approvals that could be required. Agencies would be notified pursuant to CEQA, and any subsequent comments would be considered accordingly. In addition, this document is intended to provide agencies and the general public with an environmental basis under CEQA to facilitate the dissemination of information deemed necessary to the discretionary approvals process and the approval, or conditional approval, of any aspect of the proposed Project within the jurisdiction of the agency. 3 2.0 Project Description 2.1 Project Background and Location The Orange County Sanitation District(Sanitation District)is proposing to upgrade the existing MacArthur Pump Station in the City of Newport Beach(Figure 2-1). The Sanitation District maintains a collection system composed of sewers and pump stations. The collection system conveys wastewater from the Sanitation District member cities and other local agencies to treatment facilities located in the cities of Fountain Valley and Huntington Beach. The proposed Project would design and construct mechanical, electrical, instrumentation and controls, structural, and architectural improvements to bring the existing facility into compliance with current Sanitation District standards and local, state, and national laws. The existing facility is located at 4219 MacArthur Boulevard in the City of Newport Beach(Figure 2-2). The pump station has two vertical,no clog sewage pumps (one duty and one standby). The proposed Project would replace the existing pumps with new pumps to accommodate existing and projected flows and add emergency standby capacity. The pump station receives flows from the local tributary sewage system and has a 12-inch-diameter force main that discharges into the Von Karman Trunk Sewer. The proposed Project would be located in an area comprising primarily commercial and professional businesses. Figure 2-2 shows the existing conditions at the proposed Project site. This project was previously approved on May 24, 2006 for the pump station rehabilitation only. However,the pump station was not rehabilitated and additional construction elements have been added to the proposed design since that time. Specifically, the new project elements include replacing 2,130 feet of existing force main with high-density polyethylene pipe,modifying an existing manhole located at the intersection of Birch Street and MacArthur Boulevard, and reconstructing 2,000 feet of upstream sewers and manholes. 2.2 Project Elements The proposed Project would consist of a new vault partially above ground to house new electrical equipment and controls and would replace the equipment in the existing pump station vault The proposed Project consists of the following elements: • mechanical improvements • electrical modifications • structural modifications • architectural improvements 4 Figure 2-1: Project Vicinity Map Irvine Huntington 73 Beach 0 J 66 I � \ Newport " Beach Orange 6 County Laguna Beach - Project Area 2 0 2 4 Newport Beach City Limits Miles 5 Figure 2.2: Project Area Map Campus Dr. s� co dR f t Manhole i 0 T. Q A Y n� 7 { Pump Station ,t✓ - �a. m� 0&� s' s`ySPw Source Es,,.Dlgira�Glote.GeoEye�i- 1a CNE9 Airbus DS USDA USGSAE', IGo.sdisstapo.anC lM1e GIS User Co. - Project Area 0 500 1,000 2,000 Feet (rT7) 6 Mechanical improvements for the proposed Project would include the replacement of existing pumps with new pumps,to accommodate the existing(2.4 MUD, 1650 gpm)and projected flows (2.8 MGD, 1945 gpm). The proposed Project would install the new pumps and include piping modifications within the existing structure. A flowmeter also would be added to the pump station. Electrical modifications would include replacement of all existing electrical equipment. New electrical equipment would be placed in a new below-grade electrical vault(approximately 10 feet by 32 feet)to comply with existing electrical codes. The new electrical vault would be constructed within the western part of the existing Sanitation District easement. Structural modifications would include a retrofit of the existing structure to comply with building standards for seismic stability,replacement of the existing precast concrete access equipment hatch with a new metal hatch, and replacement of the sidewalk hatch with a new sidewalk aluminum valve hatch. Additional project elements,not included in the 2006 Negative Declaration would include the following (see Figure 2-2 for locations of the pump station and new construction elements): • Replacement of 2,130 feet of existing 12-inch asbestos cement force main with 2,150 feet of 12- inch high-density polyethylene pipe, • Modification to a 72-inch manhole located at the intersection of Birch Street and MacArthur Boulevard, and • Reconstruction of upstream gravity sewer lines and manholes along 2,000 feet of gravity sewer lines. New sewer lines will be installed parallel with an estimated 10 foot offset to the existing sewer lines. After installation of the new lines, the existing sewer lines will be abandoned in place using injected grout Architectural improvements would include the replacement of the existing sidewalk and landscape improvements to minimize potential visual impacts. 2.3 Project Construction All proposed Project construction would take place within the proposed Project area, which includes public right-of-way(i.e., MacArthur Blvd.) and private property(see Figure 2-2). Access to the proposed Project area would be along MacArthur Boulevard. Construction staging would occur on the Project site, or on approved, adjacent privately held parcels. Additionally, construction vehicle may temporarily park on adjacent roads. Construction Schedule Under the current schedule, construction is anticipated to occur between July 2017 and July 2018. Construction would occur during permitted hours identified in the City of Newport Beach Building Code, and construction activities would comply with the City of Newport Beach Noise Ordinance. No construction activities would occur outside these hours or on Sundays or federal holidays unless a temporary waiver is granted by an authorized agency representative. 7 Traffic Control The proposed Project would require the delivery of materials and equipment during construction. Deliveries and vehicle parking would be coordinated to minimize impacts to local traffic. Vehicles entering and exiting the proposed Project site during construction would use MacArthur Boulevard. Use of construction equipment would encroach on one lane of traffic along MacArthur Boulevard from the pump station to the Birch Street intersection, located approximately 2,000 feet to the north. Construction activities associated with the repair or replacement of the gravity sewer lines will likely require the closure of one to two lanes of traffic along MacArthur Boulevard and Jamboree Road. And construction activities associated with the modification of the existing manhole at the MacArthur Boulevard/Birch Street intersection will require the temporary closure on one lane of traffic. A traffic management plan, approved by the City of Newport Beach, would be implemented during construction of the proposed Project. Traffic control will allow vehicle traffic to continue along MacArthur Boulevard at all times during construction and could include flagmen and/or signs to direct traffic. During hours when construction does not occur, all lanes of traffic would be open along MacArthur Boulevard.Nighttime construction may be proposed to limit temporary impacts to traffic along MacArthur Boulevard. Any nighttime construction would be coordinated with the City of Newport Beach in accordance with applicable noise and traffic ordinances. Excavation Excavation will be required for the new improvements to the existing pump station,which include the construction of a below-grade vault(approximately 10 feet wide by 32 feet long by 6 feet deep),the removal and replacement of the force main adjacent to MacArthur Blvd,modification of the manhole at the Birch Street/MacArthur Boulevard intersection, and the reconstruction of two gravity sewer lines (see Figure 2-2 for locations of the project elements). Excavation would be limited to the proposed Project site. Excavation spoils and all solid waste produced during construction activities would be disposed at a properly permitted facility in accordance with federal and state laws. Construction Equipment The types of equipment anticipated for use during construction activities are listed in Table 2-1 through Table 2-4. 8 Table 2-1: Construction Equipment for Pump Station Rehabilitation Hours of Number of Number of Activity Equipment Operation/ Working Workers Day Days Total Excavator 6 2 2 Excavation Front-end loader 6 2 1 Dump truck 6 2 1 Facility Concrete truck 6 5 3 Installation Crane 6 2 3 Material Delivery Delivery truck 6 15 1 Management Contractor pick-up truck(1) 8 180 1 Activities Sanitation District pick-up truck(1) 3 180 1 Contractor Staff Pick-up trucks (3) 8 180 3 Table 2-2: Construction Equipment for Force Main Replacement Hours of Number of Number of Activity Equipment Operation/ Working Workers Day Days (Total) Excavator 6 60 4 Excavation Front-end loader 8 80 1 Dump truck(3) 8 80 1 Delivery truck 4 30 2 Material Delivery Fork lift 4 30 2 Management Contractor pick-up truck(1) 6 80 1 Activities Sanitation District pick-up truck(1) 6 80 1 Contractor Staff Pick-up trucks (3) 6 80 3 9 Table 2-3: Construction Equipment for Manhole Modification Hours of Number of Number of Activity Equipment Operation/ Working Workers Day Days Total Excavator 6 10 2 Excavation Front-end loader 6 15 2 Dump truck(3) 6 10 1 Concrete truck 6 2 2 Installation Crane 6 5 2 Material Delivery Delivery truck 6 1 1 Management Contractor pick-up truck(1) 6 15 1 Activities Sanitation District pick-up truck(1) 6 15 1 Contractor Staff Pick-up trucks (3) 6 15 3 Assume precast materials Table 2-4: Construction Equipment for Gravity Sewer Lines Reconstruction Hours of Number of Number of Activity Equipment Operation/ Working Workers Day Days Total Excavator 6 100 2 Excavation Front-end loader 6 100 2 Dump truck(3) 8 100 2 Concrete truck 2 16 2 Installation Crane 4 32 2 Material Delivery Delivery truck 4 32 2 Management Contractor pick-up truck(1) 6 100 1 Activities Sanitation District pick-up truck(1) 6 100 1 Contractor Staff Pick-up trucks (3) 6 100 3 Assume precast materials 10 2.4 Project Operation Project operation would include routine facility inspection and maintenance. Vehicles entering and exiling the proposed Project site during operation would use MacArthur Boulevard. During routine facility inspection and maintenance, a maintenance track would park on site. Routine facility inspection and maintenance would include the following types of activities: • Weekly inspection of mechanical and electronic components would be performed to ensure proper functioning. • System features that are found to be not functioning properly during inspection would be maintained, repaired, and/or replaced. • Scheduled preventative maintenance would be completed on a quarterly and annual basis in conformance with Sanitation District Preventative Maintenance Standard Procedure. • Landscape and hardscape maintenance, litter control, and graffiti removal would be conducted. 11 3.0 Environmental Checklist Form 3.1 Project Description and Background 1. Project Title MacArthur Pump Station Rehabilitation Project 2. Lead Agency Name and Address: Orange County Sanitation District, 10844 Ellis Avenue, Fountain Valley, CA 92708 3. Contact Person and Phone Number: Daisy Covarrubias (714) 593-7119 4. Project Location: 4219 MacArthur Boulevard,Newport Beach, CA 92660 5. Project Sponsor's Name and Address: Orange County Sanitation District, 10844 Ellis Avenue, Fountain Valley, CA 92708 6. General Plan Designation: The proposed Project site is designated as Mixed Use Horizontal(i.e., commercial, office,multi- family residential)under the City of Newport Beach General Plan Land Use Element(2014a). 7. Zoning: The proposed Project site is zoned as Planned Community (City of Newport Beach 2014b). 6. Description of Project: The proposed Project would design and construct mechanical, electrical, instrumentation and controls, structural, and architectural improvements to bring the facility into compliance with Sanitation District standards and local and state codes. 9. Surrounding Land Uses and Setting: Land use surrounding the proposed Project site is mainly commercial and professional businesses. 10. Other public agencies whose approval is required: The Sanitation District would be required to obtain approvals from the City of Newport Beach. 12 11. Environmental Factors Potentially Affected: The environmental factors checked below potentially would be affected by this project, involving at least one impact that is a`Potentially Significant Impact' as indicated by the checklist on the following pages. The environmental factors checked below would be potentially affected by this project. Please see the Environmental Checklist for additional information. ❑ Aesthetics ❑ Agriculture and Forestry ❑ Air Quality ❑ Biological Resources ❑ Cultural Resources ❑ Geology/Soils ❑ Greenhouse Gas Emissions ❑ Hazards and HazardousMaterials ElHydrologylVJater Quality ❑ Land Use/Planning ❑ Mineral Resources ❑ Noise ❑ Population/Housing ❑ Public Services ❑ Recreation ❑ Transportation/Traffic ❑ Utilities/Service Systems ❑ Mandatory Findings of Significance 13 3.2 Determination On the basis of this initial evaluation: ❑ I find that the proposed project COULD NOT have a significant effect on the environment,and a NEGATIVE DECLARATION will be prepared. I find that although the proposed project could have a significant effect on the environment, there will not be ® a significant effect in this case because revisions in the project have been made by or agreed to by the project proponent. A MITIGATED NEGATIVE DECLARATION will be prepared. ❑ I find that the proposed project MAY have a significant effect on the environment, and an ENVIRONMENTAL IMPACT REPORT is required. I find that the proposed project MAY have a"potentially significant impact'or"potentially significant unless mitigated" impact on the environment, but at least one effect 1) has been adequately analyzed in an earlier ❑ document pursuant to applicable legal standards, and 2) has been addressed by mitigation measures based on the earlier analysis as described on attached sheets.An ENVIRONMENTAL IMPACT REPORT is require , but it must analyze only the effects that remain to be addressed. I find that although the proposed project could have a significant effect on the environment, because all potentially significant effects(a) have been analyzed adequately in an earlier EIR or NEGATIVE ❑ DECLARATION pursuant to applicable standards, and (b)have been avoided or mitigated pursuant to that earlier EIR or NEGATIVE DECLARATION, including revisions or mitigation measures that are imposed upon the proposed project, nothing further is required Signature. /� Date. // Printed name: /�/� �/� For: oC STD 14 3.3 Evaluation of Environmental Impacts 1) A brief explanation is required for all answers except"No Impact'answers that are adequately supported by the information sources a lead agency cites in the parentheses following each question.A`No Impact' answer is adequately supported if the referenced information sources show that the impact simply does not apply to projects like the one involved(e.g., the project falls outside a fault rupture zone). A`No Impact'answer should be explained where it is based on project-specific factors as well as general standards (e.g., the project will not expose sensitive receptors to pollutants,based on a project-specific screening analysis). 2) All answers must take account of the whole action involved, including offsite as well as onsite, cumulative as well as project-level, indirect as well as direct,and construction as well as operational impacts. 3) Once the Lead Agency has determined that a particular physical impact may occur,then the checklist answers must indicate whether the impact is potentially significant, less than significant with mitigation, or less than significant. "Potentially Significant Impact' is appropriate if there is substantial evidence that an effect may be significant. If there are one or more`Potentially Significant Impact'entries when the determination is made, an EIR is required. 4) `Negative Declaration: Less Than Significant with Mitigation Incorporation' applies where the incorporation of mitigation measures has reduced an effect from"Potentially Significant hnpact' to a"Less Than Significant Impact"The Lead Agency must describe the mitigation measures, and briefly explain how they reduce the effect to a less than significant level(mitigation measures from Section XVII, "Earlier Analyses,"may be cross-referenced). 5) Earlier analyses may be used where,pursuant to the tiering,program EIR, or other CEQA process, an effect has been adequately analyzed in an earlier EIR or negative declaration (Section 15063(c)(3)(D)). In this case,a brief discussion should identify the following: a. Earlier Analysis Used. Identify and state where they are available for review. b. Impacts Adequately Addressed. Identify which effects from the above checklist were within the scope of and adequately analyzed in an earlier document pursuant to applicable legal standards, and state whether such effects were addressed by mitigation measures based on the earlier analysis. c. Mitigation Measures. For effects that are"Less than Significant with Mitigation Incorporation,"describe the mitigation measures that were incorporated or refined from the earlier document and the extent to which they address site-specific conditions for the project. 15 6) Lead agencies are encouraged to incorporate into the checklist references to information sources for potential impacts (e.g., general plans,zoning ordinances). Reference to a previously prepared or outside document should, where appropriate, include a reference to the page or pages where the statement is substantiated. 7) Supporting Information Sources: A source list should be attached, and other sources used or individuals contacted should be cited in the discussion. 8) This is only a suggested form, and lead agencies are free to use different formats;however, lead agencies should normally address the questions from this checklist that are relevant to a project's environmental effects in whatever format is selected. 9) The explanation of each issue should identify: a. The significance criteria or threshold,if any, used to evaluate each question; and b. The mitigation measure identified, if any,to reduce the impact to less than significance. 16 3.4 CEQA Checklist Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation I. AESTHETICS:Would the project: a) Have a substantial adverse effect on a ❑ ❑ ❑ scenic vista b) Substantially damage scenic resources, including, but not limited to, trees, rock ❑ El ® Eloutcroppings, and historic buildings within a state scenic highway c) Substantially degrade the existing visual character or quality of the site and its ❑ ❑ ® ❑ surroundings? d) Create a new source of substantial light or glare which would adversely affect day ❑ ❑ ® ❑ or nighttime views in the area? II. AGRICULTURE AND FOREST RESOURCES: In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model (1997)prepared by the California Dept. of Conservation as an optional model to use in assessing impacts on agriculture and farmland. In determining whether impacts to forest resources, including timberland, are significant environmental effects, lead agencies may refer to information compiled by the California Department of Forestry and Fire Protection regarding the state's inventory of forest land, including the Forest and Range Assessment Project and the Forest Legacy Assessment Project; and the forest carbon measurement methodology provided in Forest Protocols adopted by the California Air Resources Board.Would the project: a) Convert Prime Farmland, Unique Farmland, or Farmland of Statewide Importance (Farmland), as shown on the maps prepared pursuant to the Farmland ❑ ❑ ❑ Mapping and Monitoring Program of the California Resources Agency,to non- agricultural use? b) Conflict with existing zoning for agricultural use, or a Williamson Act ❑ ❑ ❑ contract? 17 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation c) Conflict with existing zoning for,or cause rezoning of,forest land (as defined in Public Resources Code section 12220(g)),timberland (as defined by ❑ ❑ ❑ E Public Resources Code section 4526), or timberland zoned Timberland Production (as defined by Government Code section 51104(g))? d) Result in the loss of forest land or conversion of forest land to non-forest ❑ ❑ ❑ E use? 6) Involve other changes in the existing environment which, due to their location or nature, could result in conversion of ❑ ❑ ❑ E Farmland,to non-agricultural use or conversion of forest land to non-forest use? III. AIR QUALITY:Where available,the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make the following determinations.Would the project: a) Conflict with or obstruct implementation of ❑ ❑ ❑ E the applicable air quality plan? b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? ❑ ❑ ® ❑ c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is nonattainment under an applicable federal or state ambient air quality standard (including releasing ❑ ❑ E ❑ emissions which exceed quantitative thresholds for ozone precursors)? d) Expose sensitive receptors to substantial ❑ ❑ ❑ E pollutant concentrations? e) Create objectionable odors affecting a substantial number of people? ❑ ❑ E FEI 18 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation IV. BIOLOGICAL RESOURCES:Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive, or special status species in Ellocal or regional plans, policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional ❑ ❑ ❑ plans, policies, or regulations or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act (including, but not limited to, marsh, ❑ ❑ ❑ vernal pool, coastal, etc.)through direct removal,filling, hydrological interruption, or other means? d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native ❑ resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? e) Conflict with any local policies or ordinances protecting biological El Elresources, such as a tree preservation policy or ordinance? f) Conflict with the provisions of an adopted Habitat Conservation Plan; Natural Community Conservation Plan; or other ❑ ❑ ❑ approved local, regional, or state habitat conservation plan? V. CULTURAL RESOURCES:Would the project: a) Cause a substantial adverse change in the significance of a historical resource as ❑ ❑ ❑ defined in §15064.5? 19 Potentially Less Than Less Than Significant Significant Significant Impact with Impact Mitigation b) Cause a substantial adverse change in the significance of an archaeological ❑ ❑ ❑ resource pursuant to§15064.5? c) Directly or indirectly destroy a unique paleontological resource or site or unique ❑ ❑ ❑ geologic feature? d) Disturb any human remains, including those interred outside formal cemeteries? ❑ ❑ ❑ VI. GEOLOGY AND SOILS: Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i) Rupture of a known earthquake fault, as delineated on the most recent Alquist- Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area ❑ ❑ ® ❑ or based on other substantial evidence of a known fault? Refer to Division of Mines and Geology Special Publication 42. it) Strong seismic ground shaking? ❑ ❑ ® ❑ in) Seismic-related ground failure, including ❑ ❑ ® ❑ liquefaction? IV) Landslides? ❑ ❑ ❑ b) Result in substantial soil erosion or the ❑ ❑ ❑ loss of topsoil? c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project,and ❑ ❑ ® ❑ potentially result in on-or offsite landslide, lateral spreading, subsidence, liquefaction, or collapse? d) Be located on expansive soil, as defined in Table 18-1-B of the Uniform Building ❑ ❑ ® ❑ Code(1994), creating substantial risks to fife or property? 20 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems ❑ ❑ ❑ where sewers are not available for the disposal of wastewater? VII. GREENHOUSE GAS EMISSIONS:Would the project: a) Generate greenhouse gas emissions, either directly or indirectly,that may have ❑ ❑ ® ❑ a significant impact on the environment? b) Conflict with an applicable plan, policy or regulation adopted for the purpose of ❑ ❑ ❑ reducing the emissions of greenhouse gases? Vill. HAZARDS AND HAZARDOUS MATERIALS:Would the project: a) Create a significant hazard to the public or the environment through the routine ❑ ® ❑ ❑ transport, use, or disposal of hazardous materials? b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident ❑ ® El El involving the release of hazardous materials into the environment? c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within ❑ ❑ ❑ 0.25 mile of an existing or proposed school? d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code ❑ El El 65962.5 and,as a result,would it create a significant hazard to the public or the environment? e) For a project located within an airport land use plan or,where such a plan has not been adopted,within 2.0 miles of a public airport or public use airport, would ❑ ❑ ❑ the project result in a safety hazard for people residing or working in the project area? 21 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation f) For a project within the vicinity of a pdvate airstrip, would the project result in ❑ ❑ ❑ a safety hazard for people residing or working in the project area? g) Impair implementation of or physically interfere with an adopted emergency ❑ ® ❑ ❑ response plan or emergency evacuation plan? h) Expose people or structures to a significant risk of loss, injury or death involving wildland fires, including where ❑ ❑ ❑ wildlands are adjacent to urbanized areas or where residences are intermixed with wildlands? IX. HYDROLOGY AND WATER QUALITY:Would the project: a) Violate any water quality standards or El El ® El discharge requirements? b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table ❑ ❑ ❑ level (e.g.,the production rate of preexisting nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a ❑ ❑ ❑ stream or river, in a manner which would result in substantial erosion or siltation on or off site? d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, or substantially increase ❑ ❑ ❑ the rate or amount of surface runoff in a manner which would result in flooding on or off site? 22 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or ❑ ❑ ❑ provide substantial additional sources of polluted runoff? f) Otherwise substantially degrade water ❑ ❑ ❑ E quality? g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood ❑ ❑ ❑ E Insurance Rate Map or other flood hazard delineation map? h) Place within a 100-year flood hazard area structures which would impede or redirect ❑ ❑ ❑ E flood flows? i) Expose people or structures to a significant risk of loss, injury, or death El ❑ ❑ involving flooding, including flooding as a result of the failure of a levee or dam? j) Inundation by seiche,tsunami,or ❑ ❑ ❑ E mudflow? X. LAND USE AND PLANNING:Would the project: a) Physically divide an established ❑ El Elcommunity? b) Conflict with any applicable land use plan, policy, or regulation of an agency with jurisdiction over the project(including, but not limited to the general plan, specific ❑ ❑ ❑ plan, local coastal program, or zoning ordinance)adopted for the purpose of avoiding or mitigating an environmental effect? c) Conflict with any applicable habitat conservation plan or natural community ❑ ❑ ❑ E conservation plan? XI. MINERAL RESOURCES: Would the project: a) Result in the loss of availability of a known mineral resource that would be of ❑ ❑ ❑ E value to the region and the residents of the state? 23 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact No Mitigation b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local El Elgeneral plan, specific plan or other land use plan? XII. NOISE: Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or ❑ ❑ ® ❑ noise ordinance or applicable standards of other agencies? b) Exposure of persons to or generation of excessive groundbome vibration or ❑ ❑ ❑ groundbome noise levels? e) A substantial permanent increase in ambient noise levels in the project vicinity ❑ ❑ ® ❑ above levels existing without the project? d) A substantial temporary or periodic increase in ambient noise levels in the El ❑ ® El vicinity above levels existing without the project? e) For a project located within an airport land use plan or,where such a plan has not been adopted,within 2.0 miles of a public airport or public use airport, would ❑ ❑ ❑ the project expose people residing or working in the project area to excessive noise levels? f) For a project within the vicinity of a private airstrip, would the project expose ❑ ❑ ❑ people residing or working in the project area to excessive noise levels? XIII. POPULATION AND HOUSING: Would the project: a) Induce substantial population growth in an area, either directly(for example, by proposing new homes and businesses)or ❑ ❑ ❑ indirectly(for example, through extension of roads or other infrastructure)? 24 Potentially Less Than Less Than Significant Significant Significant Impact with Impact Mitigation b) Displace substantial numbers of existing housing, necessitating the construction of ❑ ❑ ❑ replacement housing elsewhere? c) Displace substantial numbers of people, necessitating the construction of ❑ ❑ ❑ replacement housing elsewhere? XIV. PUBLIC SERVICES: a) Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities,or need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts,in order to maintain acceptable service ratios, response times,or other performance objectives for any of the public services: Fire protection? ❑ ❑ ❑ Police protection? ❑ ❑ ❑ Schools? ❑ ❑ ❑ Parks? ❑ ❑ ❑ Other public facilities? ❑ ❑ ❑ El Xv. RECREATION: a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the ❑ ❑ ❑ facility would occur or be accelerated? b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? ❑ ❑ ❑ 25 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation XVI. TRANSPORTATIONITRAFFIC:Would the project: a) Conflict with an applicable plan,ordinance, or policy establishing measures of effectiveness for the performance of the circulation system,taking into account all modes of transportation including mass transit and non-motorized travel and ❑ ❑ ® ❑ relevant components of the circulation system,including but not limited to, intersections,streets, highways and freeways,pedestrian and bicycle paths,and mass transit? b) Conflict with an applicable congestion management program, including, but not limited to, level of service standards and travel demand measures or other ❑ ❑ ❑ standards established by the county congestion management agency for designated roads or highways? c) Result in a change in air traffic patterns, including either an increase in traffic ❑ El Ellevels or a change in location that results in substantial safety risks? d) Substantially increase hazards due to a design feature(e.g., sharp curves or ❑ ❑ ❑ dangerous intersections)or incompatible uses(e.g.,farm equipment)? e) Result in inadequate emergency access? ❑ ® ❑ ❑ f) Conflict with adopted policies, plans or programs regarding public transit, bicycle, or pedestrian facilities or otherwise ❑ ® ❑ ❑ decrease the performance or safety of such facilities? XVII. UTILITIES AND SERVICE SYSTEMS:Would the project: a) Exceed wastewater treatment requirements of the applicable Regional ❑ ❑ ❑ Water Quality Control Board? b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities, ❑ ❑ ❑ the construction of which could cause significant environmental effects? 26 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation c) Require or result in the construction of new stormwater drainage facilities or expansion of existing facilities,the ❑ ❑ ❑ construction of which could cause significant environmental effects? d) Have sufficient water supplies available to serve the project from existing El El ❑ entitlements and resources, or are new or El expanded entitlements needed? e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has ❑ ❑ ❑ El adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? f) Be served by a landfill with sufficient permitted capacity to accommodate the ❑ ❑ ❑ project's solid waste disposal needs? g) Comply with federal, state, and local statutes and regulations related to solid ❑ ❑ ❑ waste? XVIII. MANDATORY FINDINGS OF SIGNIFICANCE a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels,threaten to eliminate a plant or ❑ ❑ ❑ animal community, substantially reduce the number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of the major periods of California history or prehistory? b) Does the project have impacts that are individually limited but cumulatively considerable? ("Cumulatively considerable" means that the incremental effects of a project are considerable when ❑ ❑ ❑ viewed in connection with the effects of past projects,the effects of other current projects, and the effects of probable future projects)? 27 Potentially Less Than Less Than No Significant Significant Significant Impact Impact with Impact Mitigation c) Does the project have environmental effects which will cause substantial ® ❑ ❑ adverse effects on human beings, either directly or indirectly? 28 4.0 Environmental Evaluation The following evaluation provides responses to the questions in the Environmental Checklist. A brief explanation for each question in the Environmental Checklist is provided to adequately support each impact determination. All responses consider the whole of the action involved, including construction and operational impacts as well as direct and indirect impacts. Environmental factors potentially affected by the proposed Project are presented below and organized according to the format of the Checklist. 4.1 Aesthetics Would the project: a) Have a substantial adverse effect on a scenic vista? No Impact-No scenic vista is related to the proposed Project. b) Substantially damage scenic resources, including, but not limited to,trees,rock outcroppings, and historic buildings within a state scenic highway? Less Than Significant Impact—Although the proposed Project is located within a landscaped area that includes trees,no substantial impacts to scenic resources will occur as a result of this project. There are landscaped trees that may need to be removed,but the number of trees would be small and would not degrade the overall scenic resources of the area. And the disturbed areas will be returned to preconstruction conditions to the maximum extent possible. Additionally, the proposed Project will include landscaping around the pump station,which will serve as a visual screen. Furthermore, the project site is not located within or adjacent to a state scenic highway. c) Substantially degrade the existing visual character or quality of the site and its surroundings? Less Than Significant Impact—Construction of the proposed Project would result in a temporary visual impact at the Project site; however,the level of construction activity is small in scope and would be limited to the proposed Project site. Thus, construction activity related to the proposed Project would not substantially degrade the existing visual character or quality of the site and its surroundings.No long-term impacts to the visual character would occur because the area immediately adjacent to the pump station would be landscaped following rehabilitation of the pump station. This limited modification of the existing conditions at the proposed Project site would not degrade the existing visual character or quality of the site and its surroundings. 29 d) Create a new source of substantial light or glaze which would adversely affect day or nighttime views in the area? Less Than Significant Impact—Temporary construction activities would generally occur during daylight, but may also occur during the nighttime,which would require additional lighting. Operation of the proposed Project would require inside nighttime lighting and would not affect views of the area. The proposed Project could temporarily create a new source of light and glare from the nighttime construction activities but it would be short in duration and not substantial. Mitigation Measures The proposed Project would not result in a significant adverse impact to Aesthetics. No mitigation measures are proposed. 4.2 Agricultural Resources In determining whether impacts to agricultural resources are significant environmental effects, lead agencies may refer to the California Agricultural Land Evaluation and Site Assessment Model(1997) prepared by the California Department of Conservation as an optional model to use in assessing impacts on agriculture and farmland. Would the project: a-e) No Impact—The project site does not contain any farmlands, parcels encumbered under the Williamson Act,forested, or timberland production zones. Thus,no impacts to these resources would occur as a result of this Project. Mitigation Measures The proposed Project would not result in a significant adverse impact to Agricultural Resources. No mitigation measures are proposed. 4.3 Air Quality Criteria for determining the significance of air quality impacts are based on federal, state, and local air pollution standards and regulations. Where available, the significance criteria established by the applicable air quality management or air pollution control district may be relied upon to make significance determinations. Significance Criteria The proposed Project is located within the South Coast Air Basin(SCAB). Construction and operation activities associated with the proposed Project must be consistent with the Air Quality Management Plan that is managed by the South Coast Air Quality Management District(SCAQMD). 30 Thresholds of significance for allowable construction and operational air emissions have been established by the SCAQMD and are provided below. Thresholds ofSienilicance for Construction Emissions: • 75 pounds per day of reactive organic compounds (ROC) • 100 pounds per day of nitrogen oxides (NOx) • 550 pounds per day of carbon monoxide(CO) • 150 pounds per day of particulate matter less than 10 microns in diameter(PMja) • 150 pounds per day of sulfur oxides (SOx) Projects in the SCAB with construction-related emissions that exceed any of the emissions thresholds may be considered to have significant air quality impacts. Thresholds ofSignificance for Operational Emissions.: • 55 pounds per day of ROC • 55 pounds per day of NOx • 550 pounds per day of CO • 150 pounds per day of PMio • 150 pounds per day of SOx Projects in the SCAB with operation-related emissions that exceed any of the emissions thresholds may be considered to have significant air quality impacts. Would the project: a) Conflict with or obstruct implementation of the applicable air quality plan? No Impact—Construction-related emissions would be primarily dust generated from excavation and grading, exhaust emissions from construction equipment, and motor vehicle emissions associated with construction activities. Construction of the proposed Project would not result in a significant air quality impact. Project construction activities would not conflict with or obstruct implementation of the SCAQMD Air Quality Plan. To evaluate potential construction-related air quality impacts, anticipated construction emissions were determined and compared to the thresholds of significance for construction emissions listed above. Construction emissions were evaluated based on 2007 data from SCAQMD (see Appendix A). Table 4-1 below summarizes the construction emissions of criteria pollutants (NO., CO, PM10,ROC, and SOx)that would occur from the operation of construction vehicles for all elements of construction (pump station rehabilitation, force main replacement,manhole 31 modification, and gravity sewer line reconstruction). Emissions associated with construction of the proposed Project would be below thresholds of significance for construction. Therefore,the construction emissions impacts would be less than significant. Operation of the pump station would have no impact on air quality. Table 4-1: Projected Construction Emissions Attribute Emissions Criteria Pollutant NO„ CO PM10 ROC SO, Pump Station Rehabilitation Max Project, pounds per day 31.51 20.95 77.53 5.48 5.31 (lb/day) SCAQMD Significance 100 550 150 75 150 Threshold(lb/day) Project Significance No No No No No Force Main Replacement Max Project, pounds per day 15.15 9.28 1.56 1.46 0.02 (lb/day) SCAQMD Significance 100 550 150 75 150 Threshold Ib/da Project Significance No No No No No Manhole Modification Max Project, pounds per day 1.55 0.96 0.75 0.13 0.003 (lb/day) SCAQMD Significance 100 550 150 75 150 Threshold(lb/day) Project Significance No No No No No Gravity Sewer Line Reconstruction Max Project, pounds per day 12.02 7.75 1.38 1.16 0.02 (lb/day) SCAQMD Significance 100 550 150 75 150 Threshold Ib/da Project Signlfcance No No No No No Source: Orange County Sanitation District 2006 Operational emissions would be limited to emissions associated with scheduled maintenance of the proposed facility and would not increase from existing levels as a result of the proposed Project. Operations of the proposed Project would not result in a significant impact. Operational activities would not conflict with or obstruct implementation of the SCAQMD Air Quality Plan. b) Violate any air quality standard or contribute substantially to an existing or projected air quality violation? 32 Less Than Significant Impact—The proposed Project site is located within the SCAB. The SCAQMD regulates stationary mobile air emission sources within the SCAB. Potential air quality impacts associated with the proposed Project could result from temporary construction activities. As described in 4.3.a above, emissions associated with construction of the proposed Project would be below thresholds of significance for construction. Therefore, the construction emissions impacts would be less than significant. Operation of the pump station would have no impact on air quality. c) Result in a cumulatively considerable net increase of any criteria pollutant for which the project region is nonattainment under an applicable federal or state ambient air quality standard (including releasing emissions that exceed quantitative thresholds for ozone precursors)? Less Than Significant Impact—New emissions associated with the proposed Project would be limited to temporary construction activities and vehicle emissions from scheduled maintenance during operation of the pump station. As described in Response 4.3.b, above,the proposed Project would not result in the exceedance of SCAQMD-established air quality standards during construction or operation. For this reason,construction and operation of the proposed Project would not result in a cumulatively considerable net increase of any criteria pollutant for which the SCAB is in nonattainment. d) Expose sensitive receptors to substantial pollutant concentrations? No Impact—Sensitive receptors include schools,hospitals, and convalescent homes. Children, elderly people, and the infirm are considered to be more sensitive than others to criteria air pollutants. Criteria air pollutants me those that are associated with numerous effects on human health. The proposed Project site is in the City of Newport Beach, and the surrounding area consists mainly of commercial and professional businesses. The nearest sensitive receptor(i.e., Newport Urgent Care) is located 0.5 mile southwest of the Project site. As described in Response 4.3.b, above, a temporary increase in emissions of criteria air pollutants during construction would not exceed SCAQMD-established air quality standards.Additionally, operational emissions would not exceed SCAQMD-established air quality standards. Because the proposed Project is not within a residential area and because of its low-level of emissions,the proposed Project is not anticipated to have any impacts on sensitive receptors during construction or operation. e) Create objectionable odors affecting a substantial number of people? Less Than Significant Impact—Project activities would create a small amount of objectionable odors during construction when the subgrade facilities are open to the atmosphere. During operation,manholes and equipment access covers would be closed and sealed at all times, thus limiting the potential for odor impacts.Additionally, an odor assessment and odor control plan would be implemented during construction and operation. The odor assessment and odor control plan would include the use of a portable carbon system during all tie-in and pump 33 commissioning activities(Sanitation District 2006b). Also, all activities would minimize manhole exposure and duration to limit potential odor impacts during construction and operation. Therefore,the proposed Project would have a less than significant impact associated with the creation of objectionable odors affecting a substantial number of people. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Air Quality. No mitigation measures are proposed. 4.4 Biological Resources Would the project: a) Have a substantial adverse effect, either directly or through habitat modifications, on any species identified as a candidate, sensitive,or special status species in local or regional plans,policies, or regulations, or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? No Impact—The proposed Project site is located in an area zoned for Mixed Use Horizontal (i.e., commercial,office, and multi-family residential)under the City of Newport Beach General Plan Land Use Element(2014a) and is located within a developed urban area that does not support native habitat of any identified species. No impacts to any species are anticipated. b) Have a substantial adverse effect on any riparian habitat or other sensitive natural community identified in local or regional plans,policies, or regulations or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service? No Impact—The proposed Project site is located within a developed urban area,zoned and in use as Mixed Use Horizontal and does not support any riparian habitat or other sensitive natural communities identified in local or regional plans,policies, or regulations or by the California Department of Fish and Wildlife or U.S. Fish and Wildlife Service. No impact to these resources is anticipated. c) Have a substantial adverse effect on federally protected wetlands as defined by Section 404 of the Clean Water Act(including,but not limited to,marsh,vernal pool, coastal, etc.)through direct removal, filling,hydrological interruption, or other means? No Impact—The proposed Project site is located within a developed urban area,zoned and in use as Mixed Use Horizontal and does not contain any federally protected wetlands nor is it located near any federally protected wetlands.No federally protected wetlands would be affected. 34 d) Interfere substantially with the movement of any native resident or migratory fish or wildlife species or with established native resident or migratory wildlife corridors, or impede the use of native wildlife nursery sites? No Impact—The proposed Project site is located within a developed urban area,zoned and in use as Mixed Use Horizontal and does not support native habitat or any migratory fish or wildlife species. Furthermore,the proposed Project site is not located within a migratory wildlife corridor or native wildlife nursery site.No impacts to these resources are anticipated as a result of the proposed Project. e) Conflict with any local policies or ordinances protecting biological resources, such as a tree preservation policy or ordinance? No Impact—No local policies or ordinances have been enacted to protect biological resources for the area surrounding the proposed Project site.No impact with any local policies or ordinances protecting biological resources would occur. f) Conflict with the provisions of an adopted Habitat Conservation Plan;Natural Community Conservation Plan; or other approved local,regional, or state habitat conservation plan? No Impact—The proposed Project is outside the County of Orange Central and Coastal Natural Community Conservation Plan, which is a special area management plan established to protect prime habitat and state-listed species in Orange County. The proposed Project would not conflict with the provisions of an adopted Habitat Conservation Plan;Natural Community Conservation Plan; or other approved local, regional,or state habitat conservation plan. Mitigation Measures The proposed Project would not result in a significant adverse impact to Biological Resources.No mitigation measures are proposed. 4.5 Cultural Resources Would the project: a) Cause a substantial adverse change in the significance of a historical resource as defined in section 15064.5? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station that was constructed in 1960/1961. Results from a 2014 record search conducted at the California Historical Resources Information System(CHRIS), South Central Coastal Information Center (SCCIC) at California State University, Fullerton, indicated that the proposed Project site does not contain any cultural resources with the direct Area of Potential Effects (APE). Construction 35 and operation of the proposed Project would have no impacts on historic resources as defined in Section 15064.5. Two cultural resources have been identified within the %2 mile search radius of the proposed Project site (indirect APE). Neither of these resources would be affected by the proposed Project. The sites are identified as Site P-30-000115A and P-30-000115B. Both are prehistoric shell midden sites that were recorded during surface surveys conducted in 1963, 1966, 1976, and 1985. The 1985 survey identified Site P-30-000115A as having been destroyed. The condition of Site P-30-000115B was noted in the 1985 survey as still having an intact midden component. However,neither site is located within the direct APE nor would neither site be affected by the proposed Project. In addition, 16 cultural resource studies have been conducted within the ''/z mile search radius. These are reports OR-246, OR-252, OR-574, OR-774, OR-933, OR-939, OR-1016, OR-1708, OR-2225, OR-2256, OR-2301, OR-2471, OR-2494, OR-2534, OR-3705, and OR-4103. None of these studies have any direct application to the proposed Project site. b) Cause a substantial adverse change in the significance of an archaeological resource pursuant to section 15064.5? No Impact—The proposed Project site is located in an area that has been heavily disturbed and the depth of excavation is not anticipated to exceed six feet. Additionally, all excavation work would occur within a previously disturbed area where no archaeological resources would be anticipated to occur. Therefore, the proposed Project would not affect archaeological resources and would not cause a substantial adverse change in the significance of an archaeological resource pursuant to Section 15064.5. c) Directly or indirectly destroy a unique paleontological resource on site or unique geologic feature? No Impact—The proposed Project site is located in an area that has been heavily disturbed and the depth of excavation is not anticipated to exceed six feet. As such, the proposed Project would affect areas that already have been disturbed and would not involve any excavation into undeveloped lands. Therefore,the proposed Project would not directly or indirectly destroy a unique paleontological resource on site or a unique geologic feature. d) Disturb any human remains, including those interred outside of formal cemeteries? No Impact—The proposed Project site is located in an area that has been heavily disturbed and the depth of excavation is not anticipated to exceed six feet. As such,the proposed Project would not involve any excavation into undeveloped lands. Therefore,the proposed Project is not anticipated to result in a significant adverse impact related to the disturbance of human remains. 36 Mitigation Measures The proposed Project would not result in a significant adverse impact to Cultural Resources.No mitigation measures are proposed. 4.6 Geology and Soils Would the project: a) Expose people or structures to potential substantial adverse effects, including the risk of loss, injury, or death involving: i. Rupture of a known earthquake fault, as delineated on the most recent Alquist-Priolo Earthquake Fault Zoning Map issued by the State Geologist for the area or based on other substantial evidence of a known fault? Less Than Significant Impact—Surface fault rupture is the offset or rupture of the ground surface by relative displacement across a fault during a seismic event or earthquake. The 2007 edition of Special Publication 42 (California Department of Conservation,Division of Mines and Geology), shows that the proposed Project is not located in an Alquist-Priolo Special Study Zone. Exposure of people or structures to potential substantial adverse effects, including risk of loss, injury, or death, from the rupture of a known earthquake fault is considered to be a less than significant impact. ii. Strong seismic ground shaking? Less Than Significant Impact—The proposed Project site is located in a seismically active area, as is the majority of southern California; and the potential exists for strong ground motion. Twelve regional faults are within 50 miles of the proposed Project site. The closest fault is the Newport-hnglewood fault,which is located approximately 4 miles west of the Project site. The other 11 faults are the Newport-Inglewood(Offshore) fault, the Palos Verdes fault, the Elsinore-Whittier fault,the Chino-Central Avenue (Elsinore) fault,the Elsinore-Glen Ivy fault, the San Jose fault,the Siena Madre(Central) fault, the Cucamonga fault,the Raymond fault, the San Andreas-Southern fault, and the San Andreas-1857 rupture fault. The proposed Project would be designed and constructed in conformance with the Uniform Building Code (UBC) 1997 seismic engineering standards and other applicable jurisdiction and building codes. Exposure of people or structures to potential adverse effects, including risk of loss, injury, or death, from strong seismic ground shaking is considered to be a less than significant impact. iii. Seismic-related ground failure, including liquefaction? 37 Less Than Significant Impact—The potential for seismic-related ground failure is associated with the probability of severe ground shaking as a result of an earthquake or a nearby active fault. Liquefaction is the phenomenon that occurs when saturated granular soils develop high pore water pressures during seismic shaking and behave like a heavy fluid. This phenomenon generally occurs in areas of high seismicity where groundwater is shallow and loose granular soils or hydraulic fill soils subject to liquefaction are present. For liquefaction to develop loose granular sediments below the groundwater table must be present; and shaking of sufficient magnitude and duration must occur. The proposed Project is not mapped as a liquefaction zone according to the maps of seismic hazard zones prepared by the California Department of Conservation, Division of Mines and Geology(2007)(Sanitation District 2006b). Additionally, the proposed Project would rehabilitate and upgrade an existing pump station and would be designed and constructed in conformance with the UBC 1997 seismic engineering standards. Because construction would be temporary and operation would require minimal onsite operations and maintenance staff, exposure of people or structures to potential substantial adverse effects, including risk or loss, injury, or death, from seismic-related ground failure, including liquefaction, is considered to be a less than significant impact. iv. Landslides? No Impact—The proposed Project is not located in an area of probable landslides. The proposed Project would not result in an impact related to landslides. b) Result in substantial soil erosion or the loss of topsoil? No Impact—The proposed Project is a paved pump station, and excavation would occur within a contained area. Construction of the proposed Project would include approximately 50 cubic yards of excavation. Excavation would occur within a contained area and would limit the loss of topsoil due to wind erosion. Excavation soil not replaced as fill would be disposed at a properly permitted facility in accordance with federal and state laws. Because the proposed Project site is contained and the amount of excavation is relatively small, the proposed Project is not anticipated to result in impacts related to substantial soil erosion or loss of topsoil. c) Be located on a geologic unit or soil that is unstable, or that would become unstable as a result of the project, and potentially result in on-or offsite landslide, lateral spreading, subsidence, liquefaction,or collapse? Less Than Significant Impact—Evaluation of liquefaction and landslides is provided in Responses 4.6a.iii and iv, above. The proposed Project would rehabilitate and upgrade an existing pump station and would be designed and constructed in conformance with the UBC 1997 seismic engineering standards. Potential impacts due to an unstable geologic unit or soil, 38 including onsite or offsite landslide, lateral spreading, subsidence, liquefaction,or collapse, would be less than significant. d) Be located on expansive soil,as defined in Table 18-1-B of the Uniform Building Code (1994), creating substantial risks to life or property? Less Than Significant Impact—Subsurface soils encountered during geotechnical investigation generally consisted of sandy clays and clayey sands with some cleaner sands and were classified as soils with low expansive potential(Sanitation District 2006b). Additionally,the proposed facility would rehabilitate and upgrade an existing pump station and would be designed in compliance with requirements of governing jurisdictions and applicable building codes. Therefore,the proposed Project would not result in a significant adverse impact from expansive soil creating substantial risks to life or property. e) Have soils incapable of adequately supporting the use of septic tanks or alternative wastewater disposal systems where sewers are not available for the disposal of wastewater? No Impact—No septic tanks or alternative wastewater disposal systems would serve the proposed Project. The proposed Project would not result in impacts related to septic tanks or alternative wastewater disposal systems. Mitigation Measures The proposed Project would not result in a significant adverse impact to Geology and Soils.No mitigation measures are proposed. 4.7 Greenhouse Gas Emissions Would the project: a) Generate greenhouse gas emissions, either directly or indirectly, that may have a significant impact on the environment? Less Than Significant—Construction emissions would be short-term and within the SCAQMD's thresholds (10,000 metric tons per year for CO2 equivalent). GHG emissions were evaluated based on projected 2007 data from SCAQMD. Table 4-2 summarizes the on-road GHG emissions based on the total number of trips, the distance traveled, and the emission factors. Table 4-3 summarizes the off-road GHG emissions based on the construction equipment used,the hours of operation, and the emission factors. Operation of the proposed Project would not create an increase in GHG emissions. Therefore,the proposed Project's impacts on greenhouse-gas emissions would be less than significant. 39 Table 4-2: On-Road Greenhouse Gas Emissions Parameters CO2 CO2 Emission Number of Total Distance Emissions Source Factors Vehicles Number of Traveled Emissions (metric Trips per Trip (Ibs/day) tons/year) Construction Workers 1.1067 16 32 20 708.288 117.3421 Commuting Light-duty 2.7225 5 5 5 68.0625 11.27591 Trucks Onsite Daily Delivery 2 7225 1 3 20 253.308 41.96554 Trucks Dump Trucks 4.2218 1 7 10 295.526 48.95979 Total 7325.79 219.54 Emission calculations assume that all construction phases overlap. Worker commute is assumed to be 20 miles per trip. Daily Delivery Truck trip distance is assumed to be 20 miles per trip. Source: SCAQMD. On-Road Mobile Source Emission Factors Scenario Year 2007. Table 4-3: Off-Road Greenhouse Gas Emissions CO2 CO2 CO2 Equipment Type Number Hour/Day Horsepower Emission Emissions Emissions Operation Factors (Ibs/day) (metric Ibs/hr tons/ ear Pump Station Rehabilitation Concrete Saw 1 4 120 74.1 296.4 49.10459 Concrete Breaker 1 4 120 74.1 296.4 49.10459 Dump Truck 1 8 25 7.6 60.8 10.07274 Dump Truck 1 6 25 7.6 45.6 7.554552 Excavator 1 6 175 112 672 111.3302 Forklift 1 4 120 31.2 124.8 20.67562 Off-Highway Trucks 12 6 500 272 1632 270.3734 (pick-up trucks Off-Highway Trucks 1 4 500 272 1088 180.249 water truck Paver 1 6 120 69.2 415.2 68.78618 Roller 1 6 120 59.0 354 58.64718 Front End Loader 1 8 120 51.7 413.6 68.52111 Front End Loader 1 6 120 51.7 310.2 51.39083 40 CO2 CO2 Equipment Type Number Hour/Day Horsepower Emission Emissions Emissions Operation Factors missian (metric Ibs/hr tons/year) Total 5709.00 945.81 Force Main Replacement Concrete Saw 1 4 120 74.1 296.4 49.10459 Concrete Breaker 1 4 120 74.1 296.4 49.10459 Dump Truck 1 8 25 7.6 60.8 10.07274 Dump Truck 1 6 25 7.6 45.6 7.554552 Excavator 1 6 175 112 672.0 111.3302 Forklift 1 4 120 31.2 124.8 20.67562 Off-Highway Tmcks 12 6 500 272 1632.0 270.3734 ick-up trucks Off-Highway Trucks 1 4 500 272 1088.0 180.249 water truck Paver 1 6 120 69.2 415.2 68.78618 Roller 1 6 120 59 354.0 58.64718 Front End Loader 1 8 120 51.7 413.6 68.52111 Front End Loader 1 6 120 51.7 310.2 51.39083 Total 5709.00 945.81 Manhole Modification Concrete Truck 1 6 500 272 1632 270.3734 Crane 1 6 250 112 672 111.3302 Dump Truck 1 6 25 7.6 45.6 7.554552 Excavator 1 6 175 112 672 111.3302 Off-Highway Trucks 8 6 500 272 1632 270.3734 (pick-up trucks Off-Highway Trucks 4 4 500 272 1088 180.249 ick-u trucks Off-Highway Trucks 1 4 500 272 1088 180.249 water trucks Paver 1 3 120 69.2 207.6 34.39309 Roller 1 3 120 59.0 177 29.32359 Front End Loader 1 6 120 51.7 310.2 51.39083 41 CO2 CO2 Equipment Type Number Hour/Day Horsepower Emission Emissions ons Emissions Operation Factors missi (metric Ibs/hr a n tons/year) Total 7524.40 1246.57 Gravity Sewer Line Reconstruction Dump Truck 1 6 25 7.6 45.6 7.554552 Excavator 1 6 175 112 672 111.3302 Forklifts 1 4 120 31.2 124.8 20.67562 Off-Highway Trucks (concrete pumper 1 6 500 272 1632 270.3734 trucks Off-Highway Trucks 12 6 500 272 1632 270.3734 (pick-up trucks Off-Highway Trucks 1 4 500 272 1088 180.249 water truck Paver 1 6 120 69.2 415.2 68.78618 Roller 1 6 120 59 354 58.64718 Tractors/Loaders/ 1 6 120 51.7 310.2 51.39083 Backhoes Total 6273.80 1039.38 Source: SCAQMD. Off-Road Mobile Source Emission Factors Scenario Year 2007. b) Conflict with an applicable plan,policy, or regulation adopted for the purpose of reducing the emissions of greenhouse gases? No Impact—The Orange County Sanitation District(Sanitation District) does not have any specific plans,policies,nor regulations adopted for reducing the emissions of GHGs. SCAQMD has several programs available for reducing GHG emissions, including the Climate Change Policy, approved in 2008 and the Green Policy, approved in 2009. The Climate Change Policy was enacted for the purpose of assisting businesses and local government agencies with reducing carbon emissions,while the Green Policy guides SCAQMD decisions relative to reducing its own carbon emissions. The SCAQMD has adopted interim GHG significance thresholds of 10,000 metric tons per year for CO2 equivalent. As shown in Tables 4-2 and 4-3 above, construction GHG emissions would not exceed this threshold. Therefore, the proposed project would not conflict with any applicable plan,policy, or regulation adopted for reducing the emissions of greenhouse gases. As mentioned in Section 4.3, operational emissions would be limited to emissions associated with scheduled maintenance of the proposed facility and would not increase from existing levels as a result of the proposed Project. Operations of the proposed Project would not result in a 42 significant impact. Operational activities would not conflict with or obstruct implementation of the SCAQMD Air Quality Plan. Mitigation Measures The proposed Project would not result in a significant adverse impact to Greenhouse Gas Emissions. No mitigation measures are proposed. 4.8 Hazards and Hazardous Materials Would the project a) Create a significant hazard to the public or the environment through the routine transport,use, or disposal of hazardous materials? Less Than Significant with Mitigation—The proposed Project would use construction materials consistent with existing local, state, and federal regulations. The proposed Project is anticipated to generate hazardous materials through the removal of asbestos-containing concrete by replacing an existing 12-inch,asbestos cement force main pipe with a 12-inch,high-density polyethylene pipe. Therefore,the proposed Project would require the implementation of mitigation measures (see HAZ 1-9)to ensure that any potential impacts from the asbestos removal are less than significant. b) Create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment? Less Than Significant with Mitigation—The proposed Project would remove existing asbestos associated with the pump station, and could generate hazardous materials. Therefore, the proposed Project could create a significant hazard to the public or the environment through reasonably foreseeable upset and accident conditions involving the release of hazardous materials into the environment by the removal of the asbestos cement force main pipe and other asbestos-containing material, lead,or polychlorinated biphenyls that may be present in the pump station. Therefore,the proposed Project would require the implementation of mitigation measures (see below)to ensure that any potential impacts from the removal of asbestos- containing material and potential lead and polychlorinated biphenyls are less than significant. In addition, there are two listed sites that pose a risk to the public: Rockwell Industries,4311 Jamboree Road—This industrial facility treats and/or disposes of liquid or semisolid wastes. This facility is also registered as having a leaking underground storage tank(LUST). On-going monitoring and remediation is being conducted on site. This facility is located less than 1/8 mile from the project. Due to the distance this site is located 43 from the project and with on-going monitoring and remediation; this site poses a risk to the project and would require implementation of mitigation measures(see below)to ensure that any potential impacts are less than significant. • San Joaquin Landfill, SE comer of MacArthur and Fairchild Road— According to EPA, Prior to 1954 the site was a burn site that was expanded to 129 acres and converted to a municipal solid waste disposal facility in 1959. Most waste materials disposed at the site have been identified as residential, commercial, demolition and agricultural wastes.No liquid or hazardous wastes are known to have been disposed. Refuse from the western portion of the site was excavated during the construction of Highway 73. On-going remediation is being conducted on site. Therefore,this site poses a risk to the project and would require implementation of mitigation measures (see below)to ensure that any potential impacts are less than significant. Remedial activities may be required to ensure any potential impacts are less than significant. c) Emit hazardous emissions or handle hazardous or acutely hazardous materials, substances, or waste within 0.25 mile of an existing or proposed school? No Impact—No schools are located within 0.25 mile of the proposed Project. The closest school is the California Pacific Charter School, located approximately 0.30 mile southwest of the proposed Project site. Therefore,the proposed Project would not result in a hazards-related impact on an existing or proposed school within 0.25 mile of the proposed Project site. d) Be located on a site which is included on a list of hazardous materials sites compiled pursuant to Government Code Section 65962.5 and, as a result,would it create a significant hazard to the public or the environment? No Impact—The Project site is not included on the Department of Toxic Substances Control's Hazardous Waste and Substances List(Cortese List). e) For a project located within an airport land use plan or,where such a plan has not been adopted, within 2.0 miles of a public airport or public use airport, would the project result in a safety hazard for people residing or working in the project area? No Impact—The proposed Project would be located approximately 1.3 miles southeast of John Wayne Airport and would rehabilitate and upgrade an existing pump station. Although the Project would result in the removal of asbestos-containing concrete, the construction and operation activities are relatively limited in scope and would not result in a safety hazard associated with an airport for people residing or working in the Project area. t) For a project within the vicinity of a private airstrip,would the project result in a safety hazard for people residing or working in the project area? 44 No Impact—The proposed Project would not be located within the vicinity of a private airport. The proposed Project would not result in a safety hazard related to a private airstrip to people residing or working in the Project area. g) Impair implementation of or physically interfere with an adopted emergency response plan or emergency evacuation plan? Less Than Significant with Mitigation—During construction of the proposed Project,traffic delays within the project area may occur due to the structural modifications associated with this project ; however, implementation the TransportatioNTruffic mitigation measures TT-1 through TT-7(see Transportation/Traffic 4.16)would ensure that the project would not interfere with any emergency response or evacuation plans. h) Expose people or structures to a significant risk of loss, injury, or death involving wildland fires, including where wildlands are adjacent to urbanized areas or where residences we intermixed with wildlands? No Impact—The proposed Project is not located near wildland areas or areas where wildlands are adjacent to urbanized areas. The construction and operation of the proposed Project is not anticipated to have an adverse impact related to the exposure of people or structures to a significant risk of loss, injury, or death involving wildland fires. Mitigation Measures The proposed Project would require the implementation of the following mitigation measures: The following avoidance and minimization measures will reduce potential impacts related to hazardous wastes and materials during construction of the project. HAZ-1 Asbestos, lead-based paint, and polychlorinated biphenyl surveys for any structures that would be renovated or demolished as part of the project shall be conducted during the Plans, Specifications, and Estimates phase of the project by a certified consultant. HAZ-2 If analytical results indicate building materials contain asbestos,the contractor shall prepare an Asbestos Operations and Maintenance Plan in accordance with applicable regulations. The plan will address worker training and safety measures to be taken when disturbing asbestos-containing materials during abatement activities. HAZ-3 The contractor shall ensure that proper removal and disposal of asbestos-containing material is conducted by a licensed contractor registered with the California Occupational Safety and Health Administration for asbestos-related work, or by a licensed and certified asbestos abatement contractor 45 HAZ-4 If the analytical results indicate that lead-based paint is present,the contractor shall ensure that demolition materials are handled and disposed of in accordance with applicable regulations. HAZ-5 Prior to construction, the contractor shall prepare a Materials Management Plan that identifies potential recognized environmental conditions, locations, extent of impact, proposed remediation work,waste management procedures, and avoidance measures, investigation measures, and a contingency plan for addressing unforeseen conditions. Documentation of completed waste profiles,manifest forms, and bill-of-lading forms for proper transportation and disposal of materials off-site will be maintained by the contractor. The plan shall include the following provisions: • Characterization and handling of contaminated soils requiring off-site disposal, • Soils to be stockpiled for further characterization, • Process for identifying soils with waste concentrations below regulatory thresholds that can be reused without restriction, • Process for identifying and handling wastewater requiring off-site disposal and/or treatment, and • Procedures for handling asbestos-containing material potentially discovered during construction activities. HAZ-6 Prior to initiating construction activities, the contractor shall prepare a site-specific Health and Safety Plan that identifies key personnel and provides a summary risk assessment for workers,the community, and the environment. The Health and Safety Plan shall include an Air Monitoring Plan and Emergency Response Plan. HAZ-7 Prior to construction, the contractor shall prepare a Spill Prevention Control and Counter Measures Plan to ensure that construction best management practices are adequate for site conditions and to prevent discharge of any sediment or pollutants into any storm drains, and receiving waters. HAZ-8 Before construction, the contractor shall notify all utility companies to ensure that the locations of underground transmission lines and facilities are marked. In addition, Underground Service Alert shall be contacted at least two working days before subsurface excavation. HAZ-9 The contractor shall adhere to the requirements of SCAQMD during all construction activities. 46 4.9 Hydrology and Water Quality Would the project: a) Violate any water quality standards or waste discharge requirements? Less Than Significant Impact—Minor excavation would occur during construction of the proposed Project. Excavation would occur within the proposed Project site,public rigbt-of-way and private property. The majority of these areas are paved. Groundwater in the Project area occurs approximately 50 feet below mean sea level (OCWD 2012)and is not anticipated to be encountered during construction of the proposed Project. In the event that groundwater is encountered during excavation,dewatering would occur; and the extracted water would be discharged to the sanitary sewer,which is part of the Sanitation District collection system, and would not affect water quality. Construction staging would occur on the Project site,with the exception of temporary parking of vehicles on the adjacent roads. Any residual oil, grease, and other fuel products from equipment would be maintained and would not affect surface waters. Equipment would be inspected to prevent leaks and would be maintained as part of customary construction practices. Therefore, any residual oil, grease,and other fuel products from equipment would be negligible and would not affect surface or groundwater. Because the proposed Project would disturb less than 1 acre of soil disturbance (0.77 acre) a General Construction Stormwater National Pollutant Discharge Elimination System(NPDES) Permit and Stormwater Pollution Prevention Plan would not be required; however,the Sanitation District requires that a Stormwater Pollution Control Plan be developed for any construction site not covered by the General Construction Stormwater NPDES Permit. The Stormwater Pollution Control Plan addresses the implementation of best management practices(BMPs) for construction sites when a formal Stormwater Pollution Prevention Plan is not required. Additionally,construction activities would comply with the requirements of the applicable County of Orange Drainage Area Management Plan(DAMP) for public works construction projects, which includes details for management of stormwater throughout Orange County and compliance with the individual NPDES permit that regulates the municipal separate storm sewer system. All public works construction contracts are governed by"Standard Specifications for Public Works Construction". Section 7 of these standard specifications imposes specific construction practices,which are included within DAMP Appendix H as structural and nonstructural BMPs for public works construction. In general, the standard specifications require ' The total area of disturbance was determined by calculating the area of disturbance for each project component. 1)Pump station[35 feet X 65 feet=2,400 square feet(0.06 acre)]. 2)Force main[2,150 feet X 5 feet=10,750 square feet(0.25 acre)] 3)Gramty sewer lines[4,000'feet X 5 feet=20,000 square feel(0.46 acre)]('includes both existing and replacement lines at 2,000 feet each) 4)Manhole[5 feet x 5 feet=25 square feet(<0.001 acre) 47 the Contractor to keep informed of, observe, and comply with state and federal laws and county and municipal ordinances and regulations. Operation of the proposed Project would not affect surface or groundwater. Therefore,the proposed Project is anticipated to result in a less than significant impact related to a violation of any water quality standards or waste discharge requirements. b) Substantially deplete groundwater supplies or interfere substantially with groundwater recharge such that there would be a net deficit in aquifer volume or a lowering of the local groundwater table level(e.g., the production rate of preexisting nearby wells would drop to a level which would not support existing land uses or planned uses for which permits have been granted)? No Impact—Construction of the proposed Project would not result in a depletion of groundwater supplies, and operation of the proposed Project would not interfere with groundwater recharge. The proposed Project would not result in a significant adverse impact related to groundwater supply or recharge. c) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river, in a manner which would result in substantial erosion or siltation on or off site? No Impact—No natural surface bodies of water, including streams or other bodies of water, are present on the proposed Project site. Furthermore,the proposed Project would not substantially alter the existing drainage pattern of the site or area. Construction activities would be limited to the Project site and would not affect the course of a stream or river. Therefore, the proposed Project is not anticipated to alter the existing drainage pattern of the site and would not result in substantial erosion or siltation on site or off site. d) Substantially alter the existing drainage pattern of the site or area, including through the alteration of the course of a stream or river,or substantially increase the rate or amount of surface runoff in a manner which would result in flooding on site or off site? No Impact—The proposed Project would not substantially alter the existing drainage pattern of the site or area. Construction activities would be limited to the Project site and would not affect the course of a stream or river. Therefore, the proposed Project would not alter the course of a stream or river and would not cause a substantial increase in the volume of runoff that would result in flooding on site or off site. e) Create or contribute runoff water which would exceed the capacity of existing or planned stormwater drainage systems or provide substantial additional sources of polluted runoff? No Impact—The proposed Project would not create or contribute to runoff water that would exceed the capacity of existing or planned stormwater drainage systems. Construction activities would be limited to the Project site, and BMPs would be implemented to control erosion and 48 sedimentation of excavated soil from stormwater runoff. This would prevent erosion and sedimentation associated with stormwater from affecting surface waters. The proposed Project is not anticipated to result in a significant adverse impact related to polluted runoff or on the capacity of stormwater drainage systems. f) Otherwise substantially degrade water quality? No Impact—Refer to Response 4.9.a, above,which addresses impacts to water quality. The proposed Project is not anticipated to substantially degrade water quality. g) Place housing within a 100-year flood hazard area as mapped on a federal Flood Hazard Boundary or Flood Insurance Rate Map or other flood hazard delineation map? No Impact—No housing development is associated with the proposed Project. h) Place within a 100-year flood hazard area structures which would impede or redirect flood flows? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station. Additionally,it would not include structures that would impede or redirect flood flows. Therefore,no impacts would be associated with the placement of structures that would impede or redirect flood flows within a 100-year flood hazard area. i) Expose people or structures to a significant risk of loss, injury, or death involving flooding, including flooding as a result of the failure of a levee or dam? No Impact—No levee or dam is within the vicinity of the proposed Project. Therefore,no impacts would be associated with risk of loss, injury, or death involving flooding as a result of the failure of a levee or dam. j) Inundation by seiche, tsunami, or mudflow? No Impact—Based on the location of the proposed Project site,the site is not likely to be inundated by a sciche,tsunami, or mudflow. Mitigation Measures The proposed Project would not result in significant adverse impacts to Hydrology and Water Quality. No mitigation measures are proposed. 4.10 Land Use and Planning Would the project: 49 a) Physically divide an established community? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station, and project implementation would take place on existing sites that are located on easements granted to the Sanitation District by various property owners. Therefore,the proposed Project would not physically divide an established community. b) Conflict with any applicable land use plan,policy, or regulation of an agency with jurisdiction over the project(including,but not limited to,the general plan, specific plan, local coastal program, or zoning ordinance) adopted for the purpose of avoiding or mitigating an environmental effect? No Impact—The proposed Project would occur on easements granted to the Sanitation District by various property owners. The proposed Project would not change existing land uses and would not conflict with existing general plan designations or zoning ordinances. Therefore, the proposed Project would not conflict with any applicable land use plan,policy, or regulation. c) Conflict with any applicable habitat conservation plan or natural community conservation plan? No Impact—The proposed Project is not within an adopted habitat conservation plan or natural community conservation plan area. The proposed Project would not conflict with any applicable habitat conservation plan or natural community conservation plan. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Land Use and Planning. No mitigation measures are proposed. 4.11 Mineral Resources Would the project: a) Result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state? No Impact—The proposed Project would not use mineral resources and would not affect the availability of any known mineral resources. The proposed Project would not result in the loss of availability of a known mineral resource that would be of value to the region and the residents of the state. b) Result in the loss of availability of a locally important mineral resource recovery site delineated on a local general plan, specific plan, or other land use plan? 50 No Impact—The proposed Project site is not located in a delineated mineral resource area. The proposed Project would not result in the loss of availability of a locally important mineral resource recovery site. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Mineral Resources. No mitigation measures are proposed. 4.12 Noise Would the project result in: a) Exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance or applicable standards of other agencies? Less Than Significant Impact—Construction noise generated from equipment use would be the primary source of noise associated with the proposed Project. Construction would occur during permitted hours identified in the City of Newport Beach Building Code, and construction activities would comply with the City of Newport Beach Noise Ordinance. No construction activities would occur outside these hours or on federal holidays unless a temporary waiver is granted by an authorized representative. These same limitations would be extended to the trucks, vehicles, and equipment that are involved with material deliveries, loading, or transfer of materials, equipment service, and maintenance. Operation of the facility would result in noise from the following pump station sources: pumps, AC blowers, and HVAC building exhaust. Operation of the pumps would have a less than significant impact on noise levels because they will be installed in a below-grade dry well,which will adequately attenuate any noise from their operation. Both the AC and HVAC building exhaust blowers will be installed outside of the dry well. The new blowers are anticipated to operate more quietly than the existing blowers. Thus, the noise from operation of the pumps and blowers would be at or below the existing condition and have a less than significant impact on noise levels. A noise study was conducted to assess the noise impacts from the operation of the pump station. The following conclusions were made: ambient noise levels are higher than the noise ordinances for Newport Beach primarily due to heavy traffic along MacArthur Boulevard; existing operational noise sources have no impact on outdoor ambient noise levels; and the design criteria is lower(more stringent) than existing ambient noise levels (Sanitation District 2006b). The proposed Project would not result in the exposure of persons to or generation of noise levels in excess of standards established in the local general plan or noise ordinance, and impacts would be less than significant. 51 b) Exposure of persons to or generation of excessive groundbome vibration or groundbome noise levels? No Impact—Construction of the proposed Project would not require the substantial duration or amount of activities commonly known to produce excessive groundbome vibration or noise (e.g., pile driving). Additionally, the existing gravity sewer lines are located approximately six feet below the ground surface,which is not anticipated to result in the exposure of persons to or generation of excessive groundbome vibrations or groundbome noise levels, and impacts would be less than significant. c) A substantial permanent increase in ambient noise levels in the project vicinity above levels existing without the project? Less Than Significant Impact—Refer to Response 4.12.a, above,which evaluates potential construction and operational noise impacts of the proposed Project. The proposed Project would rehabilitate and upgrade an existing pump station and would not result in a permanent increase in ambient noise from operation of the proposed Project. Therefore, a substantial permanent increase in ambient noise levels is not anticipated for the proposed Project site, and impacts would be less than significant. d) A substantial temporary or periodic increase in ambient noise levels in the project vicinity above levels existing without the project? Less Than Significant Impact—Refer to Response 4.12.a above. e) For a project located within an airport land use plan or,where such a plan has not been adopted, within 2.0 miles of a public airport or public use airport,would the project expose people residing or working in the project area to excessive noise levels? No Impact—The proposed Project would be located approximately 1.3 miles southeast of John Wayne Airport; however, the proposed Project would rehabilitate and upgrade an existing pump station and would not have any effect associated with an airport or people residing or working in the Project area. Therefore,the proposed Project would not result in the exposure of people residing or working in the Project area to excessive noise levels. f) For a project within the vicinity of a private airstrip,would the project expose people residing or working in the project area to excessive noise levels? No Impact—The proposed Project would not be located within the vicinity of a private airstrip. Therefore, the proposed Project would not expose people residing or working in the Project area to excessive noise levels. 52 Mitigation Measures The proposed Project would not result in a significant adverse impact related to Noise.No mitigation measures are proposed. 4.13 Population and Housing Would the project: a) Induce substantial population growth in an area, either directly(for example, by proposing new homes and businesses)or indirectly(for example,through extension of roads or other infrastructure)? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station, which includes the installation of larger pumps to accommodate current and future flows, but would not directly or indirectly induce substantial population growth in the area. Therefore, the proposed Project would not result in an impact related to inducing population growth. b) Displace substantial numbers of existing housing,necessitating the construction of replacement housing elsewhere? No Impact—The proposed Project would have no impact associated with displacing existing housing or necessitating the construction of replacement housing. c) Displace substantial numbers of people,necessitating the construction of replacement housing elsewhere? No Impact—The proposed Project would have no impact associated with displacing people or necessitating the construction of replacement housing. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Population and Housing. No mitigation measures are proposed. 4.14 Public Services Would the project result in substantial adverse physical impacts associated with the provision of new or physically altered governmental facilities, or need for new or physically altered governmental facilities, the construction of which could cause significant environmental impacts, in order to maintain acceptable service ratios,response times, or other performance objectives for any of the public services: Fire protection? 53 • Police protection? • Schools? • Parks? • Other public facilities? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station and would not result in an adverse impact or additional need for fire protection,police protection, schools,parks, or other public facilities. Also, refer to Response 4.16.e). Mitigation Measures The proposed Project would not result in a significant adverse impact related to Public Services. No mitigation measures are proposed. 4.15 Recreation a) Would the project increase the use of existing neighborhood and regional parks or other recreational facilities such that substantial physical deterioration of the facility would occur or be accelerated? No Impact—The proposed Project would not increase the use of parks of other recreational facilities such that substantial physical deterioration of the facility would occur or would be accelerated. The proposed Project would have no impact on the use of existing neighborhood and regional parks or other recreational facilities. b) Does the project include recreational facilities or require the construction or expansion of recreational facilities which might have an adverse physical effect on the environment? No Impact—The proposed Project does not include recreational facilities and would not require the construction or expansion of recreational facilities. The proposed Project would not have an adverse physical effect on the environment related to recreational facilities. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Recreation. Therefore, no mitigation measures are proposed. 4.16 Transportation/Traffic Would the project: 54 a) Conflict with an applicable plan, ordinance, or policy establishing measures of effectiveness for the performance of the circulation system,taking into account all modes of transportation including mass transit and non-motorized travel and relevant components of the circulation system, including but not limited to, intersections, streets,highways and freeways,pedestrian and bicycle paths, and mass transit? Less Than Significant Impact—The proposed Project site is located on MacArthur Boulevard in the City of Newport Beach. Access to the pump station, force main, gravity sewer line along MacArthur Boulevard,and modification of the manhole located at the intersection of Birch Street and MacArthur Boulevard,would occur using MacArthur Boulevard. Access to the other gravity sewer line between MacArthur Boulevard and Jamboree Road would occur using MacArthur Boulevard and Jamboree Road, as well as the parking lot in between them. One lane of traffic along MacArthur Boulevard would be closed during the rehabilitation of the pump station and removal and replacement of the force main. One to two lanes of traffic along MacArthur Boulevard and Jamboree Road would be closed during the reconstruction of the gravity sewer line. And the modification of the manhole would require the closure of one lane of traffic along Birch Street. However, all of the roadways would remain open at all times. Traffic control could include flagmen and/or signs to direct traffic. During hours when construction does not occur, all lanes of traffic would be open. Nighttime construction may occur,when needed,to reduce any impacts to traffic along MacArthur Boulevard,Jamboree Road, and Birch Street. Deliveries and vehicle parking would be coordinated to minimize impacts to local traffic. Although a small increase in traffic at the proposed Project sites could result during construction from the transport of workers or materials to the site,the proposed Project is not anticipated to result in an adverse impact related to traffic. No increase in traffic would be related to operation at the proposed facility. b) Conflict with an applicable congestion management program, including,but not limited to, level of service standards and travel demand measures or other standards established by the county congestion management agency for designated roads or highways? No Impact—The minimal increase in traffic at the proposed Project area that could result from the transport of workers and materials to the site during construction is not expected to result in change to the existing level of service. The proposed Project would not conflict with applicable congestion management programs,plans and policies. c) Result in a change in air traffic patterns, including either an increase in traffic levels or a change in location that results in substantial safety risks? No Impact—The proposed Project would have no impact on air traffic patterns. d) Substantially increase hazards due to a design feature (e.g., sharp curves or dangerous intersections)or incompatible uses (e.g.,farm equipment)? 55 No Impact—The proposed Project would not increase hazards due to design features or incompatible uses. e) Result in inadequate emergency access? Less Than Significant with Mitigation—Adequate emergency access will be maintained throughout the duration of the project construction. Although construction of the proposed Project could cause traffic delays in the project area which could delay emergency services, the implementation of Transportation/Traffic mitigation measures (TT-1 through TT-5)would ensure that any potential impacts to emergency access would be less than significant. Therefore, the proposed Project is not anticipated to result in a significant adverse impact related to emergency access. f) Conflict with adopted policies,plans,or programs regarding public transit,bicycle, or pedestrian facilities or otherwise decrease the performance or safety of such facilities? Less Than Significant with Mitigation—The proposed Project may impact the Orange County Transportation Authority bus route along MacArthur Boulevard,but access to the transit system will be maintained at all times. Impacts may include the temporary re-location of the MacArthur Boulevard/Jamboree Road stop and delays due to traffic. However, the implementation of Transportation/Traffic mitigation measures (TT-I through TT-5)would ensure that any potential impacts to the transit system would be less than significant. Mitigation Measures Implementation of the following mitigation measures will reduce potential impacts related to transportation and traffic during construction of the project to less than significant: TT-1 A traffic control plan shall be prepared by a qualified professional engineer as required prior to the construction phase of the Project. TT-2 The traffic control plan shall consider the ability of alternative routes to carry additional traffic and shall identify the least disruptive hours of construction; site truck access routes; and the type and location of warning signs, lights, and other traffic control devices. Consideration shall be given to maintaining access to commercial parking lots and sidewalks to the greatest extent feasible. TT-3 The traffic control plan shall comply with the City of Newport Beach's Municipal Code Title 12 (vehicles and traffic)to minimize any traffic and pedestrian hazards that exist during project construction. 56 TT-4 Public roadways shall be restored to their existing condition after Project construction is completed. TT-5 Emergency service purveyors shall be contacted and consulted to preclude the creation of unnecessary traffic bottlenecks that shall seriously impede response times. Additionally,measures to provide an adequate level of access to private properties shall be maintained to allow delivery of emergency services. 4.17 Utilities and Service Systems Would the project: a) Exceed wastewater treatment requirements of the applicable Regional Water Quality Control Board? No Impact—The proposed Project would replace the existing pumps with new pumps and repair or replace existing sewer lines to accommodate existing and projected flow. The proposed Project would not exceed the existing wastewater treatment requirements of the Regional Water Quality Control Board. b) Require or result in the construction of new water or wastewater treatment facilities or expansion of existing facilities,the construction of which could cause significant environmental effects? No Impact—The proposed Project would replace the existing pumps with new pumps to accommodate existing and projected flows. The proposed Project would not require or result in the construction of new water or wastewater treatment facilities or in the expansion of existing facilities. c) Require or result in the construction of new stormwater drainage facilities or expansion of existing facilities,the construction of which could cause significant environmental effects? No Impact—No new stormwater drainage facilities or expansion of existing facilities would result or be required as part of the proposed Project. d) Have sufficient water supplies available to serve the project from existing entitlements and resources,or are new or expanded entitlements needed? No Impact—Construction and operation of the proposed Project would not require the provision of new water supplies. Water entitlements and resources would not be impacted by the proposed Project. e) Result in a determination by the wastewater treatment provider which serves or may serve the project that it has adequate capacity to serve the project's projected demand in addition to the provider's existing commitments? 57 No Impact—The proposed Project would replace the existing pumps with new pumps to accommodate existing and projected flows and would add emergency standby capacity. The proposed Project is not anticipated to have a significant effect on the wastewater treatment capacity of the Sanitation District. f) Be served by a landfill with sufficient permitted capacity to accommodate the project's solid waste disposal needs? No Impact—Small amounts of debris or solid waste could be generated during construction of the proposed Project and would be transported to an approved solid waste disposal facility. Based on the small quantity of material,the proposed Project is not expected to affect the capacity of existing landfills. Solid waste generated by the removal of the force main,which includes asbestos-containing concrete,will be disposed of properly to ensure that any potential impacts from the removal of asbestos-containing material are less than significant. Refer to Section 0 mitigation measure HAZ-3,which requires the proper disposal of hazardous materials by a licensed contractor registered with the California Occupational Safety and Health Administration for asbestos-related work, or by a licensed and certified asbestos abatement contractor. The proposed Project would not generate solid waste following completion of construction. g) Comply with federal, state, and local statutes and regulations related to solid waste? No Impact—Solid waste produced by the proposed Project would be disposed at a properly permitted facility in accordance with federal and state laws. Mitigation Measures The proposed Project would not result in a significant adverse impact related to Utilities and Service Systems. No mitigation measures are necessary. 4.18 Mandatory Findings of Significance a) Does the project have the potential to degrade the quality of the environment, substantially reduce the habitat of a fish or wildlife species, cause a fish or wildlife population to drop below self-sustaining levels, threaten to eliminate a plant or animal community,reduce the number or restrict the range of a rare or endangered plant or animal, or eliminate important examples of the major periods of California history or prehistory? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station and replace existing sewer lines located in a developed area. The proposed Project would not result in a significant adverse impact on the environment, including biological and cultural resources, nor would the proposed Project eliminate important examples of major periods of California history or prehistory. 58 b) Does the project have impacts that are individually limited but cumulatively considerable? ("Cumulatively considerable"means that the incremental effects of a project are considerable when viewed in connection with the effects of past projects,the effects of other current projects, and the effects of probable future projects)? No Impact—The proposed Project would rehabilitate and upgrade an existing pump station and replace existing sewer lines. The proposed Project would not result in any significant adverse cumulative impacts. c) Does the project have environmental effects which will cause substantial adverse effects on human beings, either directly or indirectly? Less Than Significant with Mitigation—The proposed Project could have environmental effects that would cause substantial adverse effects on human beings, either directly or indirectly. However,these impacts would be reduced to a less than significant level with the implementation of mitigation measures. 59 5.0 Preparers and Contributors Orange County Sanitation District Daisy Covarrabias—Senior Staff Analyst Wendy Smith—Engineer Jacobs Lauren Abom—Project Manager, Senior Environmental Planner David Clark—Environmental Program Manager Gary Fink, RPA—Senior Archaeologist Paige Peyton, RPA—Senior Cultural Resources Specialist PMII Peters—Environmental Planner Dana Ragusa—Environmental Planner,Air Quality,Noise and Hazardous Materials Specialist 60 6.0 References California Department of Conservation, Division of Mines and Geology. 2007. Special Publication 42, Fault-Rupture Hazard Zones in California. http://www.conservation.ca.gov/cgs/rghm/ap/Pages/Index.aspx. Accessed September 22,2014. California Department of Toxic Substances Control. 2014. Hazardous Water and Substances List (Cortese List). http://www.envirostor.dtsc.ca.gov/public/search.asp?cmd=search&reporftype=CORTESE&site type =CSITES,OPEN,FUDS,CLOSE&status=ACT,BKLG,COM&report itle=HAZARDOUS+WASTE+ AND+SUBSTANCES+SITE+LIST. Accessed September 9,2014. California Office of Historic Preservation. 2014. California Historical Resources Information System. South Central Coast Information Center. Records Search File No.: 14396.538 City of Newport Beach,Planning Department. 2014a, as amended. City of Newport Beach General Plan, Land Use Element. http://www.newportbeachca.gov/PLN/General_Plan/LUE_Amendment/Figure%20LU11%20- %20Statistical%2OAreas%2OJ6%2OL4%20[PDF].pdf. Accessed October 2,2014. City of Newport Beach,Planning Department. 2014b. http://www.newportbeachea.gov/index.aspx?page=62. Accessed October 2, 2014 Environmental Data Resources (EDR). 2014. The EDR Radius Map Report with GeoCheck for the MacArthur Pump Station Project. Inquiry Number: 4077626.2s, September 24,2014 Orange County Sanitation District. 2006a. MacArthur Pump Station Rehabilitation Project Negative Declaration(State Clearinghouse Number: 2006031042). Orange County Sanitation District. 2006b. Preliminary Design Report MacArthur Pump Station. Orange County Water District. 2012. Orange County Groundwater Contour Maps. http://www.ocwd.com/Portals/O/ProgramsProj ects/Hydrogeology/GromdwaterContowMaps/June_ WL2012L2.pdf. Accessed September 9, 2014. South Coast Air Quality Management District(SCAQMD). 2014. CEQA Air Quality Handbook. http://www.agmd.gov/home/regulations/cega/air-quality-analysis-handbook. Accessed September 9, 2014. 61 Appendix A Construction Emission Calculations EMISSIONS FROM THE MACARTHUR PUMP STATION REHABILITATION PROJECT Table Sum A: Maximum Daily Construction Emissions by Phase (premitigation) Attribute Emissions CO ROG' NOx sox Combustion Fugitive Total Phase (lb/day) (lb/day) (Ib/day) (lb/day) PM10 PM'° PM', (lb/day) (lb/day) (lb/day) Excavation and Installation 20.95 5.48 31.51 5.31 1.56 75.97 77.53 SCAOMD Threshold(lb/day) 550 75 100 150 150 Significant No No No No No 'ROG=Reactive Organic Gasses Table Sum B: Maximum DailyO erational Emissions Attribute EwEmissions CO ROG NO„ SOx Combustion Fugitive Total Activity (lb/day) (lb/day) (Ib/day) (Ib/day) PM10 PM1° PM10 (lb/day) Ib/da (lb/day) Maximum Daily Emissions O erational emissions will not increase from existin levels due to the rehabilitation ro'ect. SCAOMDThreshold Ib/da 550 55 55 150 150 Significant No No1 No I No I No A-1 Table 1-1: Heavy Construction Equipment Exhaust Emission Factors Equipment Type Fuel CO ROG NOx sox PM, (lb/clay) (lb/day) (lb/day) (lb/day) Ib/hr Front End Loader Diesel 0.425 0.099 1.111 0.221 0.063 Excavator Diesel 0.472 0.097 1.138 0.243 0.060 Crane Diesel 0.355 0.086 1.023 0.196 0.052 Concrete Truck other Const. Equip.) Diesel 0.561 0.118 1.380 0.223 0.065 Source: SCAQMD. Off-Road Mobile Source Emission Factors Scenario Year 2007. Table 1-2: On-Road Mobile Emission Factors from California ARB EMFAC2002 Scenario Year: 2007 -- Model Years: 1965 to 2007 CO ROG Vehicle Type Emissions Emission Em scions SOx Emissions PM10 Emissions Factor Factor (lb/mile) (Ib/mile) (lb/mile) (lb/mile) (lb/mile) Construction Workers 0.01282 0.001361 0.001383 0.000009 0.00008 Commuting Light-duty Trucks 0.017455 0.024978 0.002608 0.000033 0.000440 Heavy Diesel Trucks 0.005520326 0.001226518 0.035634629 0.0000457 0.000644071 Table 1-3: Fugitive Emission Factors for Construction Activities PM10 Activity Emissions Ibs/ton Storage Pile Filling/Truck Dumping 0.009075 Source: SCAQMD CEQA Air Quality Handbook, November 1993. Table 9-9 Table 1.4: Fugitive Emission Factors for On-Road Trucks and Employee Vehicles Emission Source Type Factor Iblvmt Passenger Vehicle/On Paved Roadways 0.018 Trucks on Paved Roadways 0.214 Light Duty Trucks on Unpaved Roads' 1.45 Source: SCAQMD CEQA Air Quality Handbook, November 1993. Table A9-9&Table A9-9C `Emissions calculated from SCAQMD CEQA Air Quality Handbook, November 1993.Table A9-9-D. G=14. H=15, J=4 tons, 1=4 and K=10. VMT=vehicle miles traveled A-2 HEAVY CONSTRUCTION EQUIPMENT COMBUSTION CALCULATIONS BY PHASE Table 2-1: Excavation and Installation Hour/day CO ROG NOx sox Combustion Equipment Type Number Fuel Operation (lb/day) (lb/day) (lb/day) (lb/day) PMJ° Iblhr Front End Loader 1 Diesel 6 2.6 0.6 6.7 1.3 0.4 Excavator 1 Diesel 6 2.8 0.6 6.8 1.5 0.4 Crane 1 Diesel 6 2.13 0.52 6.14 1.18 0.31 Concrete Truck 1 Diesel 6 3.37 0.71 8.28 1.34 0.39 Totals 10.90 2.40 27.90 5.30 1.40 Source: SCAQMD. Off-Road Mobile Source Emission Factors Scenario Year 2007. A-3 VEHICLE EMISSIONS Table 3-1: Excavation and Installation Parameters Peak Day Emissions, Ibslda Number Total Distance Combustion Fugitive Source of Number Traveled CO ROG NOx sox PM10 PMJ' Vehicles of Trips per Trip Emissions Emissions Emissions Emissions Emissions Emissions Construction 16 32 20 8.20 0.87 0.89 0.01 0.05 11.52 Workers Commutin Light-duty Trucks 5 5 5 0.44 0.62 0.07 0.00 0.01 36.25 Onsite Daily Delivery 1 3 20 1.05 1.50 0.16 0.00 0.03 12.84 Trucks Dump Trucks 1 7 10 0.39 0.09 2.49 0.00 0.03 14.98 Totals 1 10.07 3.08 3.60 0.01 0.12 75.59 Emission calculations assume that all construction phases overlap. Worker commute is assumed to be 20 miles per trip. Daily Delivery Truck trip distance is assumed to be 20 miles per trip. Fugitive PM10 is from paved roads for commuters,dump trucks, and delivery trucks and unpaved road for onsite trucks. A-4 Table 4-1: Soil Hauling and Pile Filling by Phase Cubic Average Phase Yards Tons Tons Exported Exported Exported per Da Excavation and Installation 50.0 42.3 42.3 Calculation assumes a soil density of 1.45 6/cubic cm Calculation assumes that all soil hauling occurs during a single day(worst case) Table 4-2: Soil Hauling and Pile Filling Daily PMty Emissions by Phase Phase Emissions (lb/day) Excavation 0.4 A-5 Appendix B Mitigation Monitoring and Reporting Plan MITIGATION MONITORING AND REPORTING PLAN Mitigation Measures Timing Implementing Monitoring Entity Entity Section 4.18 Hazards and Hazardous Materials Mitigation Measure HAZ-1: Asbestos,lead-based paint, and polychlorinated biphenyl surveys for any structures that would be renovated or demolished as part Before Contractor OCSD of the project shall be conducted during the Plans, Specifications,and Estimates phase of the project by a certified consultant. Construction Mitigation Measure HAZ-2: If analytical results indicate building materials contain asbestos,the contractor shall prepare an Asbestos Operations and Before Contractor OCSD Maintenance Plan in accordance with applicable regulations.The plan will address worker training and safety measures to be Construction taken when disturbing asbestos-containing materials during abatement activities. Mitigation Measure HAZ-3: The contractor shall ensure that proper removal and disposal of asbestos-containing material is conducted by a licensed contractor During Contractor OCSD registered with the California Occupational Safety and Health Administration for asbestos-related work,or by a licensed and Construction certified asbestos abatement contractor. Mitigation Measure HAZ4: If the analytical results indicate that lead-based paint is present,the contractor shall ensure that demolition materials are handled Before Contractor OCSD and disposed of in accordance with applicable regulations. Construction B-1 Mitigation Measures Timing Implementing Monitoring W ML Entity Entity Mitigation Measure HAZ-5: Prior to construction,the contractor shall prepare a Materials Management Plan that identifies potential recognized environmental Before Contractor OCSD conditions, locations,extent of impact,proposed remediation work,waste management procedures,and avoidance measures, Construction investigation measures,and a contingency plan for addressing unforeseen conditions. Documentation of completed waste profiles,manifest forms,and bill-of-lading forms for proper transportation and disposal of materials off-site will be maintained by the contractor.The plan shall include the following provisions: • Characterization and handling of contaminated soils requiring off-site disposal, • Soils to be stockpiled for further characterization, • Process for identifying soils with waste concentrations below regulatory thresholds that can be reused without restriction, • Process for identifying and handling wastewater requiring off-site disposal and/or treatment,and • Procedures for handling asbestos-containing material potentially discovered during construction activities. Mitigation Measure HAZ-6: Prior to initiating construction activities,the contractor shall prepare a site-specific Health and Safety Plan that identifies key Before Contractor OCSD personnel and provides a summary risk assessment for workers,the community,and the environment.The Health and Safety Plan Construction shall include an Air Monitoring Plan and Emergency Response Plan. Mitigation Measure HAZ-7: Prior to construction,the contractor shall prepare a Spill Prevention Control and Counter Measures Plan to ensure that construction Before Contractor OCSD best management practices are adequate for site conditions and to prevent discharge of any sediment or pollutants into any storm Construction drains,and receiving waters. B-2 Mitigation Measures Timing Implementing Monitoring Entity Entity Mitigation Measure HAZ-8: Before construction,the contractor shall notify all utility companies to ensure that the locations of underground transmission lines Before Contractor OCSD and facilities are marked. In addition, Underground Service Alert shall be contacted at least two working days before subsurface Construction excavation. Mitigation Measure HAZ-9: The contractor shall adhere to the requirements of SCAQMD during all construction activities. During Contractor OCSD Construction Mitigation Measure TT-1: A traffic control plan shall be prepared by a qualified professional engineer as required prior to the construction phase of the Before Contractor OCSD Project. Construction Mitigation Measure TT-2: The traffic control plan shall consider the ability of alternative routes to carry additional traffic and shall identify the least disruptive Before Contractor OCSD hours of construction;site truck access routes;and the type and location of warning signs,lights,and other traffic control devices. Construction Consideration shall be given to maintaining access to commercial parking lots and sidewalks to the greatest extent feasible. Mitigation Measure TT-3: The traffic control plan shall comply with the City of Newport Beach's Municipal Code Title 12(vehicles and traffic)to minimize any Before Contractor OCSD traffic and pedestrian hazards that exist during project construction. Construction Mitigation Measure TT4: Public roadways shall be restored to their existing condition after Project construction is completed. After Contractor OCSD Construction Mitigation Measure TT-5: Emergency service purveyors shall be contacted and consulted to preclude the creation of unnecessary traffic bottlenecks that Before Contractor OCSD shall seriously impede response times.Additionally, measures to provide an adequate level of access to private properties shall be Construction maintained to allow delivery of emergency services. B-3 Appendix C Comment Letters and Response to Comments From: Seiffert, Mary rmailto:Marv.Celmer-Seiffert(cbvum.com] Sent: Tuesday, December 02, 2014 10:11 AM To: Covarrubias, Daisy Subject: MacArthur Pump Station Rehabilitation Project-Taco Bell #4704 @ 4101 Jamboree Rd. Daisy, Per our conversation this morning,I am in the Property Management Department with Taco Bell Corp. I received your"Notice of Intent to Adopt An Initial Study/Mitigated Negative Declaration" for the 1 MacArthur Pump Station Rehabilitation Project. Reviewing the Project Area Map, it looks like the Gravity Sewer Line, running between MacArthur Blvd and Jamboree Rd, is located near our Taco Bell#4704 at 4101 Jamboree Rd. If this work has any impact on#4704,then I will be your contact person at Taco Bell. If you would please put me down for any future communications in regards to this project. Thank you Mary Seifferr Property Manager/ADA Compliance Taco Bell Corp. / Legal Department 1 61en Bell Way Irvine, CA 92618 ph: 949-863-4315 C-1 Orange County Sanitation District ]W 14 Bk hay.fwnNn VNq.G 92]Oa ]14.9f>2.2411•vnrxmerarsmm January 22,2D15 Ms.Mary Seiffert Property Manager Taco Bell Corp./legal Department 1 Glen Bell Way Irvine,CA 92618 Re: Response to Comment letter Dated December 2,2014 Project Name:Maur rth ur Pump Station Rehabilitation Project fY Dear Ms.Seifert, The Orange County Sa n Ration District(Sa n Ration District)appreciates the comments provided in your letter dated December 2,2014 regarding the MacArthur Pump Station Rehabilitation Project.If the project will have any impact on Taco Bell#4704,we will be in _ contact with you. if you have any questions,please contact me at 714-593-7119.Thank you for your assistance. Sincerely, Daisy Covarrubias,Senior Staff Analyst Orange County Sanitation District To protM public seen and Me embonment by provWing emective waetewawr collection,veatmen4 ant recycling. Ci-2 DEPARTMENT OF TRANSPORTATION AM DISTRICT 12 33,V7WC1ffl80ND .SI3r1'E IW IRVRiE,CA 92612-as99 PHONE (949)] 2000 Flayveyo..w FAX (%9)M2 2019 TP 711 www.4N.ca.gov December 1,2014 Ms.Daisy Covarmbus; IOR/CEQA Orange County Sanitation District SCH#:2006031042 10844 Ellis Avenue Log#: 1713 A&B Fountain Valley,CA,92708 SR-73 Dear Ms.Covarrubias: Thank you for the opportunity to review and comment on the Draft Initial Study and Mitigated Negative Declaration on the MacArthur Pump Station Rehabilitation Project.The Orange County Sanitation District proposes to upgrade the existing pump station.The pump station rehabilitation was previously approved in May of 2006 and since that time replacing 2,130 feet of existing Pone main with high density polyethylene pie,modifying an existing manhole,and reconstructing 2,000 feet of upstream sewer and manholes has been added.The project site is located at 4129 MacArthur Boulevard in the City of Newport Beach.The nearest state transportation facility to the project site is SR-73 The Department of Transportation(Department)is a commenting agency on this project and has the following comment: 2a 1. Coordination of this project with other construction activities on SR-73 may be 2b l needed. Any hauling of materials should not occur during AM and PM peak periods of travel on State facilities during demolition and/or conatmetion of the 2cl proposed project. All vehicle loads should be covered set that materials do not blow over or onto the Deportment's Right-of-Way. Please continue to keep us informed of this project and any future developments that could potentially impact State transportation facilities. If you have any questions or need to contact us,please do not hesitate to call Maryam Molavi at(949)724-2241. Sincerely, e clw e MAUREE/!ENN EL� HARAKE Branch Chief,Regional-Community-Transit Planning District 12 mnronumorow,maemn=ua.toll m- C-3 Orange County Sanitation District 1oaa4EJb Mrue.Fou4n Wrq,G82y08 7149f>2.2A11•wwmsaamm� January 22,2015 Ms.Maureen El Harake,District12 Branch Chief California Departmentof Transportation 3347 Michelson Drive,Suite 100 Irvine,CA 92612 Re: Response to Comment Letter Dated December 1,2014 Project Name:MacArthur Pump Station Rehabiltation Project Dear Ms.El Harake, The Orange County Sanitation District(Sa nRation District)appreciates the comments provided by the California Department of Transportation in your letter dated December 1, 2014 regarding the MacArthur Pump Station Rehabilitation Project. The letter identifies several areas of concern,as summarized below in italics,immediately followed by the Sanitation District's response. Comment2e • Coordination of the project with otherprolec0'along SR 73 may be needed. The Sanitation District will coordinate with Ca trans on this project and other projects along SR 73,as needed. CommeM2b • Any hauling materials shallnot octurbetweenAM and PM peaktrovelperiods on state facilities during demolition or construction. The hauling of materials during project construction shall not occur on state facilities during AM and PM peak travel periods. Comment2c q • All vehicle bads shall be coveredso that materials do not blow over or onto the Department's righter ivoy The contractor shall cover vehicle loads containing materials that could blow over or onto Calhani right-ofway during transport To pmtect public bleat and the environment by provWing enective wastewater collwabn,treatment,ant m Hnql. C-4 In summary, we appred ate the comments provided by the California Department of Transportation,trust that this letter fully responds to them,and are available to discuss any of these issues further. If you have any quest Ions,please rant act meat 714-593-7119. Thank you for your assistance Sincerely, Daisy Covarrubias,Senior Staff Analyst Orange County Sanitation District C-5 _fir, r.m.i s amauwi 1paCRa1 3YINEWCU MTER DISTRICT 16tM 3entl empnAn.,PO.blb]MJ,ImYb,CR OK10.fiW (Br9)46363C0 December 18,2014 Ms.Daisy Covamrbias Orange County Sanitation Distrct 10844 Ellis Avenue Fountain Valley,CA 92708 Re: IS/MND MacArthur Pump Station Rehabilitation Project Dear Ms.Covamubies: Irvine Ranch Water District(IRWD)has received and reviewed the Notice of Intent to adopt an Initial Study/Mitigated Negative Declaration(IS/MND)for the MacArthur Pump Station Rehabilitation Project. IRWD offers the following comments on the IS/MND. 71w proposed project should consider existing and future redevelopment projects that are currently being considered in the areas tributary to this lift station. IRWD recommends OCSD 3a review the IBC SAMP,other pertinent information and consider upsizing the existing facilities to support this proposed project. In February 2008,IRWD completed an Wine Business Complex (IBC)Sub-Area Master Plan(SAMP)that identified redevelopment projects planned at that time in the IBC man,portions of which are tributary to the MacArthur Pump Station.Since that time, many other projects in this area have been proposed. If you have not already done so,the City of Irvine and the City of Newport Beach should be contacted to obtain additional redevelopment 3b planning information. OCSD should also contact Michael Houlihan at(949)453-5553 or Eric Akiyoshi at(949)453-5552 to obtain a copy of the 2008 Irvine Business Complex Sub-Area Master Plan. IRWD appreciates the opportunity to review and comment on the IS/MND for the MacArthur Pump Station Rehabilitation Project. If you have any questions or require additional information,please contact the undersigned or In Ann Corey,Engineering Technician 111,at (949)453-5326. Sincerely, lf /�� Fiona S C/ Director of Water Resources ce: Michael Houlihan,IRWD Eric Akiyoshi,IRWD In Ann Corey,IRWD C-6 Orange County Sanitation District 10aa4 Eta Aerae.Fours,Vabt,G 8gra8 i14ef>2.2411•wwaonwmm� January 22,2015 Fiona Sanchez Irvine Ranch Water District I560D San Canyon Ave. P.O.Box 57000 Irvine,CA 92619 Re: Response to Comment letter Dated December 18,2014 Project Name:MacArthur Pump Station Rehabilitation Project Dear Ms.Sanchez, The Orange County Sa n Ration District(Sanitation District)appreciates the comments provided by the Irvine Ranch Water District in your letter dated December 18,2014 regarding the MacArthur Pump Station Reha bi Illation Project(Project). The letter identifies several areas of concern,as summarized below in italics,immediately followed by the Sanitation District's response. Comment3a • The proposedproject should consider existing endfuture development Projects that arecunantly being considered in the areas tributary to this lii tstation. IRWD recommends OCSD m newthe Imine8usizress Complex Sub Area Master-Plan that identified redevelopment projects planned at that time in the ISCarea,portions of which are tributary to the MacArthur Pump Station.Since that time,many other projects in this area have been proposed. The Sanitation District will consult the Irvine Business Complex Sub Area Master Plan to determine the extent to which future development in the area may increase the flows to the MacArthur Pump Station. As mentioned in the Initial Study, mechanical improvements for the proposed Project would include the replacement 1 of existing purr ps with new pumps,to accommodate existing and projected flows. a Additionally,a detailed hydraulic analysis will be conducted during l design to ensure that the pump station and upstream gravity sewers are sized comedy to accommodate future needs. To protect public hNIN and the emlmnment by provWing effective wastewater collecabn,treatment,and recycling. C-7 commerit3b • If MuhaWm'talready done so,the City of Irvine and the City of Newporteench should be contacted to obtainadditlomiredevelopmentplann)M information.O D should also contact Michael Hoofihan at(949)453ZS53 or Enc Akiyoshi at(949) 453-5552 to obtain a copy of the 2008 frAne Business Complex Sub Area Master plan. The Sanitadl on District will coordinate with the cities of Irvine and Newport Beach to obtain redevelopment planning inform ation. In summary, we appred ate the Comm ends provided by the I"I ne Ranch Water Di Ad ct,trust that this Iefter fully responds to them,and are available to discuss any of these issues further. If you have any questions,please contact meat 714-593-7119.Thank you for your assistance Sincerely, Daisy Covarrublas,Senior Staff Analyst Orange Coundy Sanitation District C-Q From: Alford, Patrick rmailto:PAlford(a)newportbeachca.govl Sent: Friday, December 19, 2014 10:53 AM To: Covarrubias, Daisy Subject: MacArthur Pump Station Rehabilitation Project Dear Ms. Covarrubias, Thank you for the opportunity to comment on the IS/MND for the MacArthur Pump Station Rehabilitation Project. The City of Newport Beach only has the following comment: 4a The project will require an encroachment permit for the work in addition to the Temporary Street Closure Permit mentioned in the MIND.Also,Jamboree is a Moratorium Street(newly paved street with 46 no cutting permitted);so any damage to the street will require extensive street repair. Depending on 4c the extent of the work on Jamboree, permits from the City of Irvine maybe required (TC and excavation). Patrick J. Alford Planning Program Manager City of Newport Beach Community Development Departmentl Planning Division 100 Civic Center Drivel Newport Beach,CA 92660 (949I 644-3235 I(949I 644-3229 l palford@newponbeachca.gov C-9 Orange County Sanitation District 1aaa4Bb Mrue.Fou4n Wzw,G8Zza4 T1496].X31•wwwaosnmm� January 22,2015 Mr.Patrick J.Alford,Planning Program Manager City of Newport Beach Community Development Department,Planning Division 10D Civic Center Drive Newport Beach,CA 92660 Re: Response to Comment letter Dated December 19,2014 Project Name:MacArthur Pump Station Rehabilitation Project Dear Mr.Patrick Alford, The Orange County Sanitation District(Sanitation District)appreciates the comments provided by the City of Newport Beach in your letter dated December 19,2014 regarding the MacArthur Pump Station Rehabilitation Project(Project). The letter identifies several areas of concern,as summarized below in italics,immediately followed by the Sanitation District's response. Comment4a • Thepreject willrequirean arrroaahrtantpermdJorthe work in addition to the Temporary Street Closure Permit mentioned in the MND. The San Ration District will coordinate with the City of Newport Beach and obtain an encmechment permit prior to construction of the Pmject. Co mment4b • Also,Jamboree is a Maratonum Street(newly paved street with no cutting permitted),so any damage to the street will require extortive street repair. We unde nits nd the rem'dications of cutting pavement on Jamboree Road and that extensive street repair nay be required. To protect public rearm and the emlmnment by provWing eaective wastewater correction,treatment,ant recycling. C-10 Commerit4c • Depending on the indent of the work on Jamboree permitsfrom the Oty of Irvine maybe repaired(TC and excavation). The Sanitatl on District will coordinate with the City of Irvine to determine the need for any permits.If temporary construction and/or excavaton permits are required, they will be obtained prior to construction. In summary, we appred ate the comments provided by the Clty of Newport Beach,trust that this letter fully responds to them,and are available to discuss any of these issues further. If you have any questions,please contact me a<734-593-Tk19.Thank you for your assistance Sincerely, Daisy Covarrublas,Senlor Staff Analyst Orange County Sanitation Dist dct C-11 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOO is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) —A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Glossary of Terms and Abbreviations Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!f) — the dilution at which the majority of the people detect the odor becomes the DrT for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Glossary of Terms and Abbreviations Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.