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HomeMy WebLinkAbout03-28-2018 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, March 28, 2018 Regular Meeting of the 6:00 P.M. BOARD OF DIRECTORS Board Room ` 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER INVOCATION AND PLEDGE OF ALLEGIANCE (Peter Kim, City of La Palma) ROLL CALL (Clerk of the Board) RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR Huntington Beach Erik Peterson Mike Posey DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: None. REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. 03/28/2018 OCSD Board of Directors Agenda Page 1 of 9 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board of Directors held on January 24, 2018. RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: A. Steering Committee Meeting of January 24, 2018 B. Legislative and Public Affairs Meeting of February 5, 2018 C. Operations Committee Meeting of February 7, 2018 D. Administration Committee Meeting of February 14, 2018 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2018 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of February 2018. PUBLIC HEARING — REGIONAL SEWER SERVICE CHARGES 4. PROPOSED ORDINANCE NO. OCSD-49 ADOPTING REGIONAL SEWER SERVICE CHARGES (Lorenzo Tyner) A. Conduct a Public Hearing under Proposition 218 for Proposed Multi-Year Regional Sewer Service Charges and under Health and Safety Code section 5473.1 for collection of charges on the tax roll. • Open Public Hearing. • Receive Public Comment. • Close Public Hearing. B. Direct the Clerk of the Board to tabulate the results of the protests received and report the number of protests to the Board of Directors. If no majority protest: C. Motion to read Ordinance No. OCSD-49 by title only and waive second reading of said entire ordinance. 03/28/2018 OCSD Board of Directors Agenda Page 2 of 9 D. Adopt Ordinance No. OCSD49 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD41 and Ordinance No. OCSD46"; and E. Adopt Resolution No. OCSD 18-03 entitled, "A Resolution of the Board of Directors Directing the County Tax Collector-Treasurer to include Regional Sanitary Sewer Service Charges on the Tax Roll for Fiscal Years 2018-2019 through 2022-2023." PUBLIC HEARING — CAPITAL FACILITIES CAPACITY CHARGES 5. PROPOSED ORDINANCE NO. OCSD-50 ADOPTING CAPITAL FACILITIES CAPACITY CHARGES A. Conduct a Public Hearing for Capital Facilities Capacity Charges • Open Public Hearing • Receive Public Comment • Close Public Hearing B. Motion to read Ordinance No. OCSD-50 by title only and waive second reading of said entire ordinance; C. Adopt Ordinance No. OCSD-50 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42". PUBLIC HEARING — MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS 6. PROPOSED ORDINANCE NO. OCSD-51 ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS RECOMMENDATION: A. Conduct a Public Hearing for Proposed Miscellaneous Charges and Fees relating to Industrial Dischargers, Source Control Permittees, and Wastehaulers. • Open Public Hearing • Receive Public Comment • Close Public Hearing 03/28/2018 OCSD Board of Directors Agenda Page 3 of 9 B. Motion to read Ordinance No. OCSD-51 by title only and waive second reading of said entire ordinance; and C. Adopt Ordinance No. OCSD-51 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42." OPERATIONS COMMITTEE: 7. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO. 2, PROJECT NO. P2-123 (Rob Thompson) RECOMMENDATION: A. Approve a Professional Design Services Agreementwith Spec Services, Inc. for the Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, for an amount not to exceed $668,217; and B. Approve a contingency of$66,822 (10%). 8. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Rob Thompson) RECOMMENDATION: A. Approve a contingency increase of $856,800 (12%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of $2,142,000 (30%); and B. Direct staff to prepare a detailed report describing the project including significant design, construction and commission issues, and how the issues were resolved (i.e. lessons learned). 9. EAST BASIN DISTRIBUTION BOX REPAIR, PROJECT NO. FE16-10 (Rob Thompson) RECOMMENDATION: A. Award a construction contract to Howard Ridley Company, Inc. for the East Basin Distribution Box Repair, Project No. FE16-10,for a total amount not to exceed $529,350; and B. Approve a contingency of$52,935 (10%). 03/28/2018 OCSD Board of Directors Agenda Page 4 of 9 10. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION (Ed Torres) RECOMMENDATION: A. Approve a Sole Source Purchase Order to Dresser-Rand for the assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount not to exceed $245,424, including applicable tax and freight; and B. Approve a contingency of $49,085 (20%). 11. SITE ACCESS AND LICENSE AGREEMENT— BREA DOSING STATION (Ed Torres) RECOMMENDATION: A. Approve a new Site Access and License agreement with Pacific Quality Partners to lease property for the purpose of installing, maintaining, and operating a chemical dosing station at 1355 West Imperial Highway in the city of Brea, for a term of 36 months, at the following lease terms, in a form approved by General Counsel: • April 22, 2018 through April 21, 2019, $2,500 per month • April 22, 2019 through April 21, 2020, $2,560 per month • April 22, 2020 through April 21, 2021, $2,620 per month; and B. Authorize the General Manager or designee to negotiate and subsequently award an option for an additional 36-month lease renewal period beginning April 22, 2021. 12. SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) RECOMMENDATION: Approve a contingency increase of$211,365 (7.5%) to the Professional Design Services Agreement with Brown and Caldwell for SCADA System and Network Upgrades, Project No. P2-107, for a total contingency amount of$493,185 (17.5%). 13. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117 AND SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) RECOMMENDATION: A. Approve a budget increase of $19,000,000 for Ocean Outfall System Rehabilitation, Project No. J-117, fora total budget amount of$166,000,000; and 03/28/2018 OCSD Board of Directors'Agenda Page 5 of 9 B. Approve a budget reduction of$19,100,000 for SCADA System and Network Upgrades, Project No. P2-107, for a total budget amount of$5,000,000. 14. SOLE SOURCE LOAD SHEDDING AND PROTECTIVE RELAY SYSTEM (Rob Thompson) RECOMMENDATION: A. Authorize staff to specify Schweitzer Engineering Laboratories as the sole source provider for current and future projects equipment, materials, and services for electrical power system protective relays and load-shedding systems at Plant Nos. 1 and 2; B. Authorize staff to negotiate service agreements for services related to protective relays and load-shedding systems for current and future projects, and for on-going operations and maintenance at Plant Nos. 1 and 2; and C. Ratify the addition of Schweitzer Engineering Laboratories to the list of pre-approved Original Equipment Manufacturers for procurements under $100,000 for equipment, materials, and services for electrical power system protective relays and load-shedding systems. ADMINISTRATION COMMITTEE: None. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: None. STEERING COMMITTEE: None. NON-CONSENT: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense, per Government Code§53232.3(d). 03/28/2018 OCSD Board of Directors Agenda Page 6 of 9 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 potentiallitigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Property: 10950 Virginia Cir. Fountain Valley, CA- APN No.156-165-05; 10870 Spencer Ave. Fountain Valley, CA -APN No.156-163-07; 18480 Pacific St. Fountain Valley, CA -APN No.156-165-04; 18430 Pacific St. Fountain Valley, CA -APN No.156-165-06; 18370 Pacific St. Fountain Valley, CA -APN No.156-165-08; 18429 Pacific St. Fountain Valley, CA -APN No.156-163-09; 18410 Bandilier Cir. Fountain Valley, CA -APN No.156-163-10; 18368 Bandilier Cir. Fountain Valley, CA -APN No.156-163-11; 10700 Spencer St. Fountain Valley, CA-APN No.156-163-16; 10700 Spencer Ave. Fountain Valley, CA -APN No.156-154-07; 18386 Mt. Langley St. Fountain Valley, CA-APN No.156-154-06; 18385 Bandilier Cir. Fountain Valley, CA -APN No.156-163-12; 18401 Bandilier Cir. Fountain Valley, CA -APN No.156-163-13; 18424 Mt. Langley St. Fountain Valley, CA-APN No.156-154-05; 18435 Bandilier Cir. Fountain Valley, CA -APN No.156-163-14; 18475 Bandilier Cir. Fountain Valley, CA -APN No.156-163-15; 10725 Ellis Ave. Fountain Valley, CA -APN No.156-154-04; and 10540 Talbert Ave. Fountain Valley, CA -APN No.156-151-03 Agency negotiators: General Manager, Jim Herberg; Assistant General Manager, Bob Ghirelli; Assistant General Manager, Rob Thompson; Director of Finance and Administrative Services, Lorenzo Tyner; Engineering Managers, Kathy Millea and Jeff Mohr; CIP Project Manager, Tom Grant; Kevin Turner and John Gallivan, Cushman and Wakefield. Negotiating parties: Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165-08; Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai, Nevon, APN No. 156-163-16; The Ins Trust, APN No. 156-154-07; 03/28/2018 OCSD Board of Directors Agenda Page 7 of 9 Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156-154-04; and SFII Fountain Valley LLC, APN No. 156-151-03 Under negotiation: Instruction to negotiator will concern price and terms of payment. (2) CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION Significant exposure to litigation (Government Code Section 54956.9(2)) Claim of Carlos Quiroz. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: Adjourn the Board meeting until the Regular Meeting of the Board of Directors on April 25, 2018 at 6:00 p.m. 0 312 812 01 8 OCSD Board of Di rectors'Agenda Page 8 of 9 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations,please contact the Orange County Sanitation District Cleric 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 Califomia Govemment Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation Districts website at..ocsd.com,not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each gem of business to be considered or discussed. The recommended action does not indicate what anion will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting,items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A.Lore Clerk of the Board (714)593-7433 kloret&,ocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 Iherberga..d.com Assistant General Manager Bob Ghimili (714)593-7400 rghirethAocsd.com Assistant General Manager Rob Thompson (714)593-7310 dhompson/glocsd.com Director of Environmental Services Jim Colston (714)593-7450 colstoruBocstl com Director of Finance and Lorenzo Tyner (714)593-7550 Itvnenslloced.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandlerAocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etooes .csd..m 03/28/2018 OCSD Board of Directors Agenda Page 9 of 9 ITEM NO. 1 Orange County Sanitation District MINUTES BOARD MEETING February 28, 2018 ANITAT� 9 U N 2 ,y t o � ftwowm0i l�NG THE ENV�Q, Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 212 812 01 8 Minutes of Board Meeting Page 1 of 13 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman Greg Sebourn on February 28, 2018 at 6:00 p.m. in the Administration Building. Director Richard Murphy delivered the invocation and led the Pledge of Allegiance. 1. RECEIVED AND FILED MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR Orange County Board of Supervisors Michelle Steel Shawn Nelson The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Gregory Seboum, Chair Jesus Silva X Denise Barnes Lucille Kring X Allan Bernstein Chuck Puckett X Robert Collacott Diana Fascenelli X Ellery Deaton Sandra Massa-Lavitt X James M. Ferryman Bob Ooten Phil Hawkins X Brooke Jones A Steven Jones Kris Beard Peter Kim X Marshall Goodman X Charlie Nguyen Al Krippner X Richard Murphy Warren Kusumoto X Steve Nagel Cheryl Brothers X Glenn Parker Cecilia Hupp X Scott Peotter Brad Avery X Mike Posey Erik Peterson Tim Shaw X Michael Blazey X David Shawver Carol Warren X Fred Smith Virginia Vaughn A Teresa Smith (excused) Mark Murphy X Michelle Steel Shawn Nelson X Sal Tinajero David Benavides X Donald Wagner Lynn Schott A Chad Wanke (excused) Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry 02(2812018 Minutes of Board Meeting Page 2 of 13 STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Assistant General Manager; Celia Chandler, Director of Human Resources; Ed Torres, Director of Operations & Maintenance; Lorenzo Tyner, Director of Finance & Administrative Services; Kelly Lore, Clerk of the Board; Jennifer Cabral; Mike Dorman; Dean Fisher;Al Garcia; Tina Knapp; Kathy Millea; Jeff Mohr; Ddaze Phuong; Tyler Ramirez; and Jim Spears. OTHERS PRESENT: Brad Hogin (General Counsel); Alternate Directors Bob Ooten (CMSD) and Jesus Silva (City of Fullerton); and Jose Zepeda, IRWD. PUBLIC COMMENTS: No public comments were provided. The Clerk of the Board, Kelly Lore, provided late communication regarding Item No. 15 which include a revised recommended action. SPECIAL PRESENTATIONS: None. REPORTS: Chair Seboum reported on the recent loth anniversary celebration of the GWRS held on February 16. OCSD and OCW D hosted a 24-hour event that concluded with a community Winter Fast attended by over 1,000 guests. Staff provided the Directors with a commemorative snow globe that was distributed at the event. Within the 24-hour period, the GWRS set a Guinness World Record of just over 100,008,000 gallons of recycled water. Chair Seboum stated that several honors were received from representatives from Congress and the Assembly as well as recognition on the State and Assembly floors on Monday February 26. Local, State, and National media coverage with a combined "known" news coverage that has reached or will reach more than 350 million potential readers, listeners, and viewers. CBS This Morning (will run in the coming weeks), National Public Radio, Orange County Register, LA Times, KNBC, and KABC. General Manager Jim Herberg announced that the selection of two Assistant General Managers (AGM)had been made: Rob Thompson was appointed as the AGM overseeing the Operations & Maintenance and Engineering departments and Lorenzo Tyner will be the new AGM overseeing the Administrative Services and Environmental Services Departments. Mr. Herberg stated that Lorenzo's appointment will become effective upon the retirement of Bob Ghirelli at the end of August. Mr. Herberg provided information regarding the Honor Walk program, explained the nomination and selection procedures, and stated that the ceremony will be held on May 23 prior to the Board Meeting. Nomination Forms were distributed to the Directors. 02(2812018 Minutes of Board Meeting Page 3 of 13 Mr. Herberg informed the Board that informational presentations were provided to the City of Tustin City Council, OC Tax, and the Orange County Building Association and will be provided to the Orange County Business Council regarding the rate increases. Mr. Herberg stated the receipt of a certificate of appreciation for our annual contribution to the CASA Education Foundation, which helps ensure clean water for Californians by awarding scholarships to promising students on a path to working in a water or sanitation agency. CONSENT CALENDAR: 2. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on January 24, 2018. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 3. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Operations Committee Meeting of December 6, 2017 B. Legislative and Public Affairs Meeting of December 11, 2017 C. Administration Committee Meeting of December 13, 2017 D. Steering Committee Meeting of December 20, 2017 AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JANUARY 2018 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of January 2018. 02(2812018 Minutes of Board Meeting Page 4 of 13 AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke OPERATIONS COMMITTEE: 5. ANNUAL MANHOLE REHABILITATION SERVICES CONTRACT (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a Service Contract for Specification No. 5-2017-89513D, annual manhole rehabilitation services, to Ayala Engineering, for a total amount not to exceed $266,945 for the period beginning April 1, 2018 through March 31, 2019, with four one-year renewal options; and B. Approve a contingency of$40,042 (15%). AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 6. PLANT NO. 1 ACTIVATED SLUDGE AERATION DIFFUSER MEMBRANE REPLACEMENT REPAIR (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Purchase Order Contract to IQA Construction Inc. to provide rehabilitation services for up to six (6) Aeration Basins at Plant No. 1, Specification No. S-2017-87513D,for a total amount not to exceed $232,001; B. Approve a contingency of$46,400 (20%); and C. Approve a Sole Source Purchase Order to DC Frost Associates Inc. (exclusive representative for Xylem Sanitaire) for the required mechanical parts for three (3) Aeration Basins at Plant No. 1, for a total amount not to exceed $106,098. 02/28/2018 Minutes of Board Meeting Page 5 of 13 AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 7. HOSE REEL TRAILER FOR TEN-INCH PUMPS (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Award the purchase of 2,640 feet of twelve-inch lay flat sewer hose with mobile hose reel trailer to West Coast Safety Supply, for a total cost of $295,704; and B. Approve a contingency amount of$29,570 (10%). AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 8. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Capital Improvement Program Contract Performance Report for the period ending December 31, 2017. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 9. SECOND AMENDMENT TO THE 1972 WASTEWATER INTERCEPTOR CAPACITY AGREEMENT DATED APRIL 12, 1972 TO MODIFY THE COST-SHARING REACH DEFINITIONS FOR THE NEW PIPING SEGMENTS (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a Second Amendment to the Wastewater Interceptor Capacity Agreement dated April 12, 1972, between Orange County Sanitation District and Santa Ana Watershed Project Authority to 02(2812018 Minutes of Board Meeting Page 6 of 13 modify the cost-sharing reach designations for the newly installed pipe and metering station. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanks 10. CONTRACTING AQUATIC BIOASSAY& CONSULTING LABORATORIES, INC. FOR TAXONOMIC SERVICES (Jim Colston) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a service contract to Aquatic Bioassay & Consulting Laboratories, Inc., Specification No. S-2017-881, to provide taxonomic services, specifically infauna sample sorting and echinoderm (e.g., sea stars) taxonomic identification, for a total amount not to exceed $190,630, for the period March 1, 2018 through February 28, 2019, with four (4) one-year renewal options; and B. Approve a contingency of$19,063 (10%). AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 11. SECONDARY TREATMENT AND PLANT WATER VFD REPLACEMENT AT PLANT NO. 1, PROJECT NO. FE15-07 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a construction contract to Helix Electrical, Inc. for Secondary Treatment and Plant Water VFD Replacement at Plant No. 1, Project No. FE15-07, for a total amount not to exceed $1,797,000; and B. Approve a contingency of$179,700 (10%). AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Wagner; Withers; and Yarc 02(2812018 Minutes of Board Meeting Page 7 of 13 NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; Tinajero; and Wanke 12. PROCESS CONTROL SYSTEMS UPGRADES STUDY, PROJECT NO. SP-196 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Services Agreement with Stantec Consulting Services, Inc. to provide engineering services for the Process Control Systems Upgrades Study, Project No. SP-196, for an amount not to exceed $1,398,866; and B. Approve a contingency of$139,887 (10%). AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Shawver; F. Smith; Steel; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: Sebourn (Recusal) ABSENT: S. Jones; T. Smith; Tinajero; and Wanke Director Tinajero arrived at 6:13 p.m. ADMINISTRATION COMMITTEE: 13. GM APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file District purchases made under the General Manager's authority for the period of October 1, 2017 to December 31, 2017; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2017 to December 31, 2017: • AMOT - Gas valves for CenGen engines • ELECTRABOND - Coating of belt filter press rollers • FONTAINE-AQUANOX- PVC stem covers • INGERSOLL RAND -Air compressor valves and parts • OVIVO - Trickling filter parts • PULSAFEEDER - Ferric injection pumps • QUINCY COMPRESSOR -Air compressor parts and service • SAFT AMERICA - UPS batteries • TIRESHARK - Traffic spikes 02(2812018 Minutes of Board Meeting Page 8 of 13 AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanke 14. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2017 (Lorenzo Tyner) MOVED, SECONDED,AND DULY CARRIED TO: Receive and file Orange County Sanitation District Mid-Year Report for the period ended December 31, 2017. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanke 15. ADOPT RESOLUTION ESTABLISHING AN ENVIRONMENTALLY PREFERABLE PURCHASING AND PRACTICES POLICY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 18-02 entitled: "A Resolution of the Board of Directors of Orange County Sanitation District adopting the "Environmentally Preferable Purchasing and Practices Policy." AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanks 16. CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2018-19 AND FY 2019-20 BUDGET TWO-YEAR BUDGET (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Approve the FY 2018-19 and FY 2019-20 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); 02(2812018 Minutes of Board Meeting Page 9 of 13 R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanks LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: None. STEERING COMMITTEE: 17. ESTABLISH PROJECT NO. J-131 FOR 18350 MT. LANGLEY ST. (Rob Thompson) At the request of Director Steel, Mr. Thompson provided information regarding a timeline of Project No. J-131. MOVED, SECONDED, AND DULY CARRIED TO: A. Establish 18350 Mt. Langley St. Building Purchase and Improvement Project, Project No. J-131, for the purchase and needed improvements of 18350 Mt. Langley Street, Fountain Valley, with a budget of $11,000,000; and B. Approve a supplemental appropriation of $11,000,000 from available reserves to the Net Capital Improvement Program Budgeted Outlays for FY 2017-18, from $148,061,000 to $159,061,000. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanks 18. PROPERTY MAINTENANCE SERVICES FOR 18350 MT. LANGLEY STREET, FOUNTAIN VALLEY (Lorenzo Tyner) At the request of Director Steel, Mr. Tyner provided additional information regarding the management fee. MOVED. SECONDED, AND DULY CARRIED TO: Approve a sole source agreement with The Muller Company for Property Management Services, for the period March 1, 2018 through August 31, 2018, for a management fee of $4,200 per month plus other incurred expenses, including two additional renewal periods of six months each. 02(2812018 Minutes of Board Meeting Page 10 of 13 AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Steel; Tinajero; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanke NON-CONSENT: Chair Sebourn announced that two speaker slips were received for Item Nos. 19-21. Ms. Olivia Sanchez (Fullerton) and Mr. Daryoush Yamtoobian (Costa Mesa) spoke in opposition/protest of the proposed rate increases (Ordinances). 19. PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE CHARGES (Lorenzo Tyner) Mr. Tyner provided an informative PowerPoint presentation and responded to questions regarding a summary of the Rate Program which included: operational and financial efficiencies; proactive planning and forecasting; strong financial planning; strategic debt program; projected 10-year cashflow; non-discretionary and discretionary reserves; and cost saving measures. MOVED. SECONDED, AND DULY CARRIED TO: A. Motion to read Ordinance No. OCSD-49 by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-49, entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance No. OCSD-46"; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-49. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Tinajero; Wagner; Withers; and Yarc NOES: Steel ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanke 20. PROPOSED ORDINANCE ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND FEES (Lorenzo Tyner) Mr. Tyner provided a brief overview of the item. 02(2812018 Minutes of Board Meeting Page 11 of 13 MOVED. SECONDED, AND DULY CARRIED TO: A. Motion to Read Ordinance No. OCSD-50 by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-50, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinances No. OCSD-40 and No. OCSD- 42"; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-50. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver, F. Smith; Tinajero; Wagner; Withers; and Yarc NOES: Steel ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanke 21. PROPOSED ORDINANCE ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS (Lorenzo Tyner) Mr. Tyner provided a brief overview of the item. MOVED. SECONDED, AND DULY CARRIED TO: A. Motion to Read Ordinance No. OCSD-51 by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-51, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD42; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-51. AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Goodman (Alternate); B. Jones (Alternate); R. Murphy; Nagel; Nguyen; Parker; Peotter; Posey; Sebourn; Shawver; F. Smith; Tinajero; Wagner; Withers; and Yarc NOES: Steel ABSTENTIONS: None ABSENT: S. Jones; T. Smith; and Wanks 02(2812018 Minutes of Board Meeting Page 12 of 13 AB 1234 DISCLOSURE REPORTS: Vice-Chair Shawver and Director Withers reported on their recent attendance at the State Senate and Assembly Floor Recognition for the GWRS 10th Anniversary. Director Ferryman provided information regarding recently attended meetings of the Borders Committee, NWRI and OCCOG commended staff on and excellent GWRS 10-year anniversary celebration. Alternate Director Jones provided information regarding his recent attendance at the Urban Water Users meeting where a topic of discussion was the unintended consequences of low flow and the accelerated deterioration of the pipes. CLOSED SESSION: The Board did not convene in Closed Session. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Bernstein congratulated the staff on the successful GWRS event and commended the project in general. At the request of Director Murphy, Mr. Tyner briefly explained the process for reviewing all OCSD fees. ADJOURNMENT: At 7:05 p.m., Chair Seboum adjourned the meeting until the Regular Meeting of the Board of Directors to be held on March 28, 2018 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board 02(2812018 Minutes of Board Meeting Page 13 of 13 ITEM NO. 2 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, January 24, 2018 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Sebourn on Wednesday, January 24, 2018 at 5:02 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Greg Sebourn, Board Chair Jim Herberg, General Manager David Shawver, Board Vice-Chair Bob Ghirelli, Assistant General Manager Chad Wanks, Administration Committee Celia Chandler, Director of Human Chair Resources John Withers, Operations Committee Jim Colston, Director of Environmental Chair Services Ellery Deaton, Member-At-Large Rob Thompson, Director of Engineering Tim Shaw, Member-At-Large Ed Torres, Director of Operations & Maintenance COMMITTEE MEMBERS ABSENT: Lorenzo Tyner, Director of Finance & Donald Wagner, Member-At-Large Administrative Services Kelly Lore, Clerk of the Board Jennifer Cabral Mike Dorman Dean Fisher Al Garcia Ted Gerber Mark Kawamoto Mark Manzo Tina Knapp Kathy Millea Jeff Mohr Ddaze Phuong Roya Sohanaki Jim Spears OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: No public comments were provided. 01/24/2018 Steering Committee Minutes Page 1 of 4 REPORTS: • Chair Sebourn announced that Administration Committee Chair Wanke and Operations Committee Chair Withers will be attending the CASA Conference on January 25-26 on behalf of the Board of Directors. • GWRS Steering Committee/OCSD Wastewater Ordinance Discussion General Manager Jim Herberg introduced Director of Environmental Services Jim Colston who provided information regarding a recent meeting of the GWRS Joint Steering Committee Meeting where the subject of AB 967: Disposal of Human Remains via Water Cremation was discussed at length. A recommendation from the Committee was proposed to OCSD to modify the Wastewater Ordinance to prohibit the receipt of hydrolysate through the sewer system. After Committee discussion, this item was referred to the Legislative and Public Affairs Committee for further review. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held on December 20, 2017. AYES: Deaton; Sebourn, Shaw; Shawver; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner NON-CONSENT: 2 LABOR COMPLIANCE PROGRAM MANUAL AND RESOLUTION (Rob Thompson) Mr. Herberg provided a brief overview of this item. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 18-01, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District to Approve and Adopt the Labor Compliance Policies and Procedures Manual Dated January 24, 2018 to be Utilized During the Construction of Grant Funded Projects". AYES: Deaton; Sebourn, Shaw; Shawver; Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner O1/2412018 Steering Committee Minutes Page 2 of 4 3. RESTRUCTURING OF GENERAL MANAGER'S OFFICE (Jim Herberg) Mr. Herberg provided an overview of his restructuring plan. The Chairman and Vice-Chairman both stated their support. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Create a second Assistant General Manager position with responsibility for the Operations and Maintenance (O&M) and Engineering Departments; and appoint one of the existing department heads to assume these additional responsibilities, while maintaining their current responsibilities; and B. Upon the retirement of the existing Assistant General Manager, appoint one of the existing department heads to that position, overseeing the Finance & Administrative Services and Environmental Services departments. The resulting department head vacancy will remain unfilled. AYES: Deaton; Sebourn, Shaw; Shawver;Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner a GENERAL MANAGER'S FY 2017-2018 WORK PLAN MID-YEAR UPDATE (Jim Herberg) Mr. Herberg provided highlights of the Mid-Year update and the Cost Savings memo provided with this item. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and File the General Manager's Fiscal Year 2017- 2018 Work Plan Mid-Year Update and Cost Savings Measures Memo. AYES: Deaton; Seboum, Shaw; Shawver;Wanke; and Withers NOES: None ABSTENTIONS: None ABSENT: Wagner INFORMATION ITEMS: Nore. ed z_ - Steering Committee Minutes Page 3 of 4 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957(b)(1): The Committee convened in closed session at 5:25 p.m. to discuss one item. Item No. CS-1 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Section and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:37 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Chair Sebourn declared the meeting adjourned at 5:38 p.m. to the next Steering Committee meeting to be held on Wednesday, February 28, 2018 at 5:00 p.m. Submitted by: Kelly . Lor Clerk f th oard 01/24/2018 Steering Committee Minutes Page 4 of 4 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, February 5, 2018 at 12:00 p.m. A meeting of the Legislative and Public Affairs Committee was called to order by Chair Sebourn on Monday, February 5, 2018 at 12:00 p.m. in the Administration Building of the Orange County Sanitation District. Chair Sebourn led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Greg Sebourn, Board Chair Jim Herberg, General Manager David Shawver, Board Vice-Chair Bob Ghirelli, Assistant General Manager Allan Bernstein, Member-At-Large Celia Chandler, Director of Human Resources Peter Kim, Member-At-Large Jim Colston, Director of Environmental Services Donald P. Wagner, Member-At-Large Rob Thompson, Director of Engineering Lorenzo Tyner, Director of Finance & COMMITTEE MEMBERS ABSENT: Administrative Services Chad Warlike, Member-At-Large Tina Knapp, Deputy Clerk of the Board John Withers, Member-At-Large Jennifer Cabral Cory Coogan Daisy Covarrubias Rebecca Long Kelly Newell Tyler Ramirez OTHERS PRESENT: Brad Hogin, General Counsel Eric O'Donnell, Townsend Public Affairs Cori Williams, Townsend Public Affairs David French, ENS Resources (via teleconference) PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Chair Sebourn did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. 02/05/2018 Legislative and Public Affairs Committee Minutes Page 1 of 4 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, and DULY CARRIED TO: Approve minutes for the Committee meeting held on December 11, 2017. AYES: Bernstein, Kim, Sebourn, Shawver, and Wagner NOES: None ABSTENTIONS: None ABSENT: Wanke and Withers NON-CONSENT CALENDAR: None. INFORMATION ITEMS: 2. LEGISLATIVE AFFAIRS UPDATE (Rebecca Long) Rebecca Long, Senior Public Affairs Specialist, indicated that the 2018 Legislative Priorities Key Message Card was distributed to the Committee. Ms. Long indicated that Assemblymember Daly would be sponsoring OCSD's legislation pertaining to bid advertising requirements and that Townsend Public Affairs (TPA)would provide more information about this item later in the meeting. Ms. Long also indicated that lobby days are being scheduled and that David French, ENS Resources, would provide additional information in his report. Lastly, Ms. Long indicated that Water Infrastructure Improvement for the Nation Act (WIIN) funding information should be available in the next several months. Ms. Long introduced David French, ENS Resources, who reported that lobby days meetings are being scheduled in Washington, DC for April 19 and the morning of April 20. Mr. French provided an overview of current activity pertaining to the Federal budget and indicated that legislation pertaining to water was recently introduced including S.2364, Securing Required Funding for Water Infrastructure Now Act or SRF WIN Act (Boozman). Mr. French briefly highlighted a few key components of S.2364. Mr. French provided information on the Federal administration's infrastructure principles and goals. Mr. French also provided an update on the Waters of the US Rule (WOTUS) and Water Infrastructure Finance and Innovation Act (WIFIA) development. Ms. Long indicated that staff anticipates the support of the Sanitation Districts of Los Angeles and the California Association of Sanitation Agencies for AB 2003 (Daly), legislation pertaining to bid advertising requirements. Cori Williams, Townsend Public Affairs (TPA), provided an informative PowerPoint presentation that reviewed the key dates of the 2018 legislative session and composition of the legislature due to recent changes, an overview of the Governor's 000512018 Legislative and Public Affairs committee Minutes Page 2 of 4 January budget including components specific to water, a breakdown of the funding of the Cap and Trade expenditure plan and details of funding of interest to OCSD, an update on OCSD's request made to Assemblymember Quirk-Silva for a direct expenditure through cap and trade for the installation and operation of a food waste co-digestion facility at Plant No. 2, and information pertaining to AB 2003 (Daly) which was introduced on February 1 and is legislation to modify the bid advertising requirement. The language for AB 2003 remains as previously seen by the Committee, that bid advertising requirements are to be published in a manner that the OCSD Board determines to be reasonable, which may include, but is not limited to, newspapers, Internet Web site, radio, television or other means of mass communications. The co-author is Senator Wilk. The introduced legislation will now sit for 30 days until heard in its first policy committee. During this time, TPA will be working with the author and co-author on next steps and to secure support for this legislation. 3. PUBLIC AFFAIRS UPDATE (Jennifer Cabral) Jennifer Cabral, Public Affairs Supervisor, introduced Cory Coogan who is a new intern from Long Beach State and will be providing support for graphics work in the Public Affairs Office. Ms. Cabral provided an overview of recent Public Affairs activities and reported on a couple of media tours recently given and a meeting recently held with Bloomberg for an article being developed regarding fuel cells. Ms. Cabral provided information on the upcoming Winter Fest event being held on February 16 to celebrate the 101h anniversary of the Groundwater Replenishment System and the Guinness World Record attempt for the most wastewater recycled to drinking water in 24 hours. Ms. Cabral indicated that OCSD received 22 entries to the recent Public Service Announcement contest and gave an overview of next steps. Ms. Cabral indicated that the Honor Walk nomination period will begin this month and briefly described the Honor Walk program. Ms. Cabral reviewed the steps being taken for the upcoming rehabilitation of the western regional sewer project that will impact six member agencies. Ms. Cabral indicated that staff is working closely with the Orange County Transportation Authority regarding the upcoming 1-405 improvement project. Ms. Cabral indicated that the Prop. 218 notices regarding rates will be mailed on February 9 and the OCSD website will be updated to include the information being mailed. Meetings pertaining to this topic are scheduled with Orange County Tax, Orange County Building Industry Association, and the Orange County Business Council. The public hearing for the adoption of the rates will be held at the Board of Directors meeting on March 28. Vice-Chair Shawver requested that the website include information as to the cost of the services OCSD provides broken into a daily expense. Ms. Cabral reviewed some of the information included on the notice and responded to Chair Sebourn's request to include information on the website regarding urban run-off. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 02/052018 Legislative and Public Affairs Committee Minutes Page 3 of 4 ADJOURNMENT: Chair Sebourn declared the meeting adjourned at 12:36 p.m. to the next Legislative and Public Affairs Committee meeting, Monday, March 12, 2018 at 12:00 p.m. Submitted by: T(iL-,U (- t t?X Tina Knapp, CMC Clerk of the Board 02/05/2018 Legislative and Pvblic Affairs Committee Minutes Page 4 of 4 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, February 7, 2018, 5:00 p.m. A regular meeting of the Operations Committee was called to order by Committee Chair Withers on Wednesday, February 7, 2018 at 5:00 p.m. in the Administration Building. Director Bernstein led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Jim Herberg, General Manager Ellery Deaton, Vice-Chair Bob Ghirelli, Assistant General Manager Denise Barnes Celia Chandler, Director of Human Resources Allan Bernstein Rob Thompson, Director of Engineering Stacy Berry (Alternate) Ed Torres, Director of Operations & Maintenance Robert Collacott Lorenzo Tyner, Director of Finance & Phil Hawkins Administrative Services Steve Jones Kelly Lore, Clerk of the Board Richard Murphy Cindi Ambrose Tim Shaw Jennifer Cabral Fred Smith Ron Coss Greg Sebourn, Board Chair Mike Dorman David Shawver, Board Vice-Chair Mark Esquer Dean Fisher COMMITTEE MEMBERS ABSENT: Alfredo Garcia Michelle Steel Tam Grant Kathy Millea Jeff Mohr Ddaze Phuong Tyler Ramirez Roya Sohanaki Jim Spears OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten, Alternate Director (CMSD) PUBLIC COMMENTS: None. Late Communication was provided by Clerk of the Board Kelly Lore regarding the addition of the Specification No. in the staff recommendation of Item No. 6. 0 210 712 01 8 Operations Committee Minutes Page 1 of 7 REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. and DULY CARRIED TO: Approve Minutes of the December 6, 2017 Operations Committee Meeting. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 2, QUARTERLY ODOR COMPLAINT REPORT (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Receive and file the Fiscal Year 2017/18 Second Quarter Odor Complaint Summary. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 3. ANNUAL MANHOLE REHABILITATION SERVICES CONTRACT (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a Service Contract for Specification No. S-2017-895BD, annual manhole rehabilitation services, to Ayala Engineering, for a total amount not to exceed $266,945 for the period beginning April 1, 2018 through March 31, 2019, with four one-year renewal options; and B. Approve a contingency of$40,042 (15%). 02/07/2018 Operations Committee Minutes Page 2 of 7 AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 4. PLANT NO. 1 ACTIVATED SLUDGE AERATION DIFFUSER MEMBRANE REPLACEMENT REPAIR (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order Contract to ICA Construction Inc. to provide rehabilitation services for up to six (6) Aeration Basins at Plant No. 1, Specification No. S-2017-875BD, for a total amount not to exceed $232,001; B. Approve a contingency of $46,400 (20%); and C. Approve a Sole Source Purchase Order to DC Frost Associates Inc. (exclusive representative for Xylem Sanitaire) for the required mechanical parts for three (3) Aeration Basins at Plant No. 1, for a total amount not to exceed $106,098. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 5. INCREASE TO PURCHASE ORDER FOR ACCESS WAY MAINTENANCE & REPAIR, SPECIFICATION NO. S-2017-857 (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Approve an increase with Excel Door & Gate Company for preventative and corrective maintenance repairs, Specification No. S-2017-857, for the period July 1, 2017 through June 30, 2018, for an additional amount of $50,000, increasing the total amount not to exceed $140,000. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 02/0712C i F Operations Committee Minutes Page 3 of 7 6. HOSE REEL TRAILER FOR TEN-INCH PUMPS (Ed Torres) MOVED, SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award the purchase of 2,640 feet of twelve-inch lay flat sewer hose with mobile hose reel trailer to West Coast Safety Supply, Specification No. E-2017-910BD for a total cost of$295,704; and B. Approve a contingency amount of$29,570 (10%). AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 7. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Capital Improvement Program Contract Performance Report for the period ending December 31, 2017. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 8. SECOND AMENDMENT TO THE 1972 WASTEWATER INTERCEPTOR CAPACITY AGREEMENT DATED APRIL 12, 1972 TO MODIFY THE COST-SHARING REACH DEFINITIONS FOR THE NEW PIPING SEGMENTS (Rob Thompson) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Approve a Second Amendment to the Wastewater Interceptor Capacity Agreement dated April 12, 1972, between Orange County Sanitation District and Santa Ana Watershed Project Authority to modify the cost-sharing reach designations for the newly installed pipe and metering station. AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 02/07/2018 Operations Committee Minutes Page 4 of 7 9. CONTRACTING AQUATIC BIOASSAY & CONSULTING LABORATORIES, INC. FOR TAXONOMIC SERVICES (Jim Colston) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a service contract to Aquatic Bioassay & Consulting Laboratories, Inc., Specification No. S-2017-881, to provide taxonomic services, specifically infauna sample sorting and echinoderm (e.g., sea stars) taxonomic identification, for a total amount not to exceed $190,630, for the period March 1, 2018 through February 28, 2019, with four (4) one-year renewal options; and B. Approve a contingency of$19,063 (10%). AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel NON-CONSENT CALENDAR: 10. SECONDARY TREATMENT AND PLANT WATER VFD REPLACEMENT AT PLANT NO. 1, PROJECT NO. FE15-07 (Rob Thompson) Engineering Manager Mike Dorman provided a PowerPoint and brief overview of the project. MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award a construction contract to Helix Electrical, Inc. for Secondary Treatment and Plant Water VFD Replacement at Plant No. 1, Project No. FE15-07, for a total amount not to exceed $1,797,000; and B. Approve a contingency of$179,700 (10%). AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Sebourn, Shaw, Shaviver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Steel 02107P20 8 Operations Committee Minutes Page 5 of 7 Board Chairman Seboum stated a recusal and left the room during discussion and the vote of Item No. 11. 11. PROCESS CONTROL SYSTEMS UPGRADES STUDY, PROJECT NO. SP-196 (Rob Thompson) Engineering Manager Mike Dorman provided an informative PowerPoint and overview of the project. MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Services Agreement with Stantec Consulting Services, Inc. to provide engineering services for the Process Control Systems Upgrades Study, Project No. SP-196, for an amount not to exceed $1,398,866; and B. Approve a contingency of$139,887 (10%). AYES: Barnes, Bernstein, Berry (Alternate), Collacott, Deaton, Hawkins, S. Jones, Murphy, Shaw, Shawver, F. Smith, and Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn (recusal) and Steel INFORMATION ITEMS: 12. BATTERY STORAGE SYSTEM AT PLANT NO. 1, PROJECT NO. FE17-03 (Rob Thompson) Engineering Manager Mike Dorman provided an informative PowerPoint regarding the Battery Energy Storage System including: Summer peak demand, LCR and future Super-Peak Operations, Plant Loads Modifications, and key procurement dates. Mr. Dorman also responded to questions from the Committee. DEPARTMENT HEAD REPORTS: Mr. Herberg reminded the Committee of the upcoming GWRS 1011 Anniversary event to be held on Friday, February 161h from 3:30 — 6:30 p.m. and encouraged everyone to attend. He also stated that the OCSD administrative offices will be closed in observance of the Presidents' birthdays on Feb. 12 & 19. Mr. Herberg stated that the Ordinances for the rate increases will be brought to the February Administration Committee and will be introduced to the full board on February 28. He also stated the Proposition 218 notices will be mailed on Friday, February 9. 02/07/2018 Operations committee Minutes Page 6 of 7 Director of Engineering Rob Thompson reported the successful completion of the pipe bursting project in Newport Beach,which therefore will not require the use of the approved contingency. Mr. Thompson stated that OCSD staff is currently working with agency staff in the cities of Seal Beach, Cypress, Los Alamitos, La Palma, Buena Park, Anaheim, and OCTA in coordination of Project 3-64; and will hold a partnering meeting on February 22 at the Cypress Community Center to provide information and a better understanding of the project; and to ensure that the needs of all will be met. Board Chair Sebourn also encouraged the Committee to register and attend the GWRS 1011 Anniversary Winterfest this Thursday for the kickoff event and the all-day events on Friday. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT Committee Chair Withers declared the meeting adjourned at 5:45 p.m. to the next scheduled meeting of Wednesday, March 7, 2018 at 5:00 p.m. Submitted by, ey oe, M CI rk f he Board 02/072018 Operations Committee Minutes Page 7 of 7 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, February 14, 2018 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chairman Wanke on February 14, 2018 at 5:04 p.m. in the Administration Building of the Orange County Sanitation District. Director Mike Posey led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Chad Wanke, Chairman Jim Herberg, General Manager Jim Ferryman Bob Ghirelli, Assistant General Manager Peter Kim Rob Thompson, Director of Engineering Al Krippner(Alternate) Celia Chandler, Director of Human Resources Steve Nagel Jim Colston, Director of Environmental Glenn Parker Services Scott Peotter Ed Torres, Director of Operations & Mike Posey Maintenance Teresa Smith Lorenzo Tyner, Director of Finance & Greg Sebourn, Board Chairman Administrative Services David Shawver, Board Vice-Chairman Kelly Lore, Clerk of the Board Jennifer Cabral COMMITTEE MEMBERS ABSENT: Rhea De Guzman Donald P. Wagner, Vice-Chairman Al Garcia Sal Tinajero Ddaze Phuong Tyler Ramirez Mike White OTHERS PRESENT: Brad Hogin, General Counsel Bill Dennehy, Chandler Asset Management PUBLIC COMMENTS: None. REPORTS: General Manager Jim Herberg reported on the following: OCSD Administrative Offices will be closed on Monday, February 19 in observance of President's Day; and provided information regarding the GWRS 1011 Anniversary Winterfest event this Friday, 02/14/2018 Administration Commdee Minutes Page 1 of 6 February 16 and the State Assembly and Senate Floor Recognition for the GWRS 10t' Anniversary on February 26. Committee Chair Wanke did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the December 13, 2017 Administration Committee Meeting. AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, T. Smith and Wanke NOES: None ABSTENTIONS: None ABSENT: Tinajero and Wagner 2. GM APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED, SECONDED. AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file District purchases made under the General Manager's authority for the period of October 1, 2017 to December 31, 2017; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of October 1, 2017 to December 31, 2017: • AMOT- Gas valves for CenGen engines • ELECTRABOND - Coating of belt filter press rollers • FONTAINE-AQUANOX - PVC stem covers • INGERSOLL RAND -Air compressor valves and parts • OVIVO -Trickling fitter parts • PULSAFEEDER - Ferric injection pumps • QUINCY COMPRESSOR -Air compressor parts and service • SAFT AMERICA- UPS batteries • TIRESHARK -Traffic spikes AYES: Ferryman, Kim, Kdppner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, T. Smith and Wanks NOES: None ABSTENTIONS: None ABSENT: Tinajero and Wagner 02/14/2018 Administration Committee Minutes Page 2 of 6 Item No. 3 was pulled and heard separately. 3. MID-YEAR CONSOLIDATED FINANCIAL REPORT FOR THE PERIOD ENDED DECEMBER 31, 2017 (Lorenzo Tyner) At the request of Director Peotter, Director of Finance and Administrative Services Lorenzo Tyner and Controller Mike White presented information regarding the Mid-Year Financial report including: Total revenues, sewer service fee cashflow thru December 31, Orange County property tax collection and apportionments, Capital Improvement Program cashflow budget, debt service forecast, self-insurance, and a basic overview of the investment portfolio. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file Orange County Sanitation District Mid-Year Report for the period ended December 31, 2017. AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Seboum, Shawver, T. Smith and Wanks NOES: None ABSTENTIONS: None ABSENT: Tinajero and Wagner 4. ADOPT RESOLUTION ESTABLISHING AN ENVIRONMENTALLY PREFERABLE PURCHASING AND PRACTICES POLICY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt RESOLUTION NO. OCSD 18-XX entitled "Environmentally Preferable and Practices Policy." AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, T. Smith and Wanks NOES: None ABSTENTIONS: None ABSENT: Tinajero and Wagner INFORMATION ITEMS: 5, INVESTMENT PERFORMANCE RESULTS (Lorenzo Tyner) Mr. Tyner Introduced Investment Manager Bill Dennehy from Chandler Asset Management who distributed an Investment Report in hard copy and provided an informative presentation which included: Economic Update (Employment, Inflation, Consumer Price Index and the Personal Consumption Expenditures, Gross Domestic Product, and Bond Yields) and OCSD's account profile and how to insulate it from the rising rate environment (Portfolio Characteristics, Sector allocation, Long term portfolio, issuers and the portfolio compared to the Benchmark, Compliance with investment policy, Liquidity Portfolio, treasury allocation, and the other various securities were presented.) Mr. Dennehy 02/14/2018 Administration Committee Minutes Page 3 06 responded to questions regarding vulnerabilities and the conservative method of the diversified portfolio. The Committee requested that in the future, they receive this type of lengthy information prior to the meeting to allow further time to study. NON-CONSENT: 6 CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2018-19 AND FY 2019-20 BUDGET TWO- YEAR BUDGET (Lorenzo Tyner) Mr. Tyner provided a brief overview of the item and Mr. White provided a PowerPoint presentation regarding the Budget Assumptions including: projected inflation, revenue, proposed SFR rate increase and a comparison to other agencies, operations (daily flow projections and expenses), staffing levels and salary adjustments, cash flow assumptions and baseline CIP cost, debt financing and the percentages of revenues and expenditures in the proposed budget summary, and reviewed the budget development key meeting dates. Mr. White and Mr. Tyner responded to questions regarding: projected surplus vs. reserves, cash flow models, proactive UAL payoff, future capital costs, investments, and cost saving measures. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the FY 2018-19 and FY 2019-20 budget assumptions and direct staff to incorporate these parameters in the preparation of this two-year budget. AYES: Ferryman, Kim, Kdppner (Alternate), Nagel, Parker, Peotter, Posey, Seboum, Shawver, T. Smith and Wanke NOES: None ABSTENTIONS: None ABSENT: Tinajero and Wagner Director T. Smith departed the meeting at 6:05 p.m. 7. PROPOSED ORDINANCE ADOPTING REGIONAL SEWER SERVICE CHARGES (Lorenzo Tyner) Mr. Tyner provided a summary of the three proposed Ordinances reflected in Item Nos. 7-9. Mr. Herberg notified the Committee that the Notice of Public Hearing was mailed out on Friday February 9 and we anticipate public input and comment regarding the increases, which will be provided to the Board of Directors. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of 02/14/2016 Administration Committee Minutes Page 4 of 6 Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance No. OCSD-46"; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX. AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, and Wanke NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero and Wagner 8, PROPOSED ORDINANCE ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND FEES (Lorenzo Tyner) Late communication was provided by the Clerk of the Board which redlined minor changes to the Ordinance. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinances No. OCSD-40 and No. OCSD-42"; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX. AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, and Wanks NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero and Wagner 9. PROPOSED ORDINANCE ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGES, SOURCE CONTROL PERMITTEES AND WASTEHAULERS (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Motion to Read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance; B. Introduce Ordinance No. OCSD-XX, entitled: "An Ordinance of the Board of Directors of the Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control 02/14/2018 Administration Committee Minutes Page 5 of 5 Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42; and C. Set March 28, 2018, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-XX. AYES: Ferryman, Kim, Krippner (Alternate), Nagel, Parker, Peotter, Posey, Sebourn, Shawver, and Wanke NOES: None ABSTENTIONS: None ABSENT: T. Smith, Tinajero and Wagner INFORMATION ITEMS: None. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Peotter requested that staff hold a Budget Workshop to assist the Board with the budget process. ADJOURNMENT: Committee Chair Wanke declared the meeting adjourned at 6:11 p.m.to the next regularly scheduled meeting of Wednesday, March 14, 2018 at 5:00 p.m. Submitted by: Kel y A. L re, MM CI rk o t e Board 0&14/2018 Administration Committee Minutes Page 6 of 6 BOARD OF DIRECTORS Meeting Date TOBd.Of Dk. -- 03/28/18 AGENDA REPORT Item Item 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF FEBRUARY 2018 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of February 2018. BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. Attached is the monthly report of investment transactions for the month ended February 28, 2018. RELEVANT STANDARDS CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following aftachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Report of the Investment Transactions for the month ended February 28, 2018 Page 1 of 1 U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 PostDate CUSIPId Explanation Units Price Net Cash Amt Cost Gain/Loss ACQUISITIONS 02/20/2018 06050TMC3 PURCHASED PAR VALUE OF BANK OF AMERICA MTN 1.750% 6/05/18/PERSHING 1,000,000.0000 0.999110 -999,110.00 999,110.00 0,00 LLC/1,000,000 PAR VALUE AT 99.911 % 02/28/2018 06406RAE7 PURCHASED PAR VALUE OF BANK OF NV MTN 2.950% 1129123/RBC CAPITAL 1,500,000.0000 0,990710 -1,486,065.00 1,486,065.00 0.00 MARKETS,LLC/1,500,000 PAR VALUE AT 99.071 % 02/27/2018 313385UN4 PURCHASED PAR VALUE OF F H L B DISC NTS 3/21/18/JEFFERIES 5,000.000.0000 0.999144 -4,995,722.22 4,995.722.22 0.00 LLC/5,000,000 PAR VALUE AT 99.9144444% 02/272018 313385UV6 PURCHASED PAR VALUE OF F H L B DISC NTS 3/28/18/GOLDMAN SACHS& 1,500,000.0000 0,998816 -1,498,223.75 1,498,223.75 0.00 CO.LLC/1,500,000 PAR VALUE AT 99.88156333% 02/26/2018 313385VB6 PURCHASED PAR VALUE OF F H L B DISC NTS 6/14118/BMO CAPITAL 10,000.000.0000 0.994990 -9,949.900.00 9,949.900.00 0.00 MARKETS CORPBONDS/10,000,000 PAR VALUE AT 99.499% 02/27/2018 3137EAEL9 PURCHASED PAR VALUE OF F H L M C M T N 2,375% 2/16121 /WELLS FARGO 7,500,000,0000 0,997930 -7,484,475.00 7,484,475.00 0.00 SECURITIES,LLCf7,500,000 PAR VALUE AT 99.793% 02/09/2018 43814RACO PURCHASED PAR VALUE OF HONDA AUTO 1.210%12/18120/INTL FCSTONE 2,875.000.0000 0.989023 -2,843,442.38 2,843,442.38 0.00 FINL INC./BD RATE/2,875,000 PAR VALUE AT 98.90234365% 02/15/2018 40428HPJ5 PURCHASED PAR VALUE OF HSBC USA INC 2,625% 9/24/18/PERSHING 619,000,0000 1,002070 -620,281.33 620,281.33 0.00 LLC/619,000 PAR VALUE AT 100.207% 02/28120184581XOCZ9 PURCHASED PAR VALUE OF INTER AMER DEV BK 1.750% 9114/22/WELLS FARGO 5,000,000.0000 0.955730 -4,778,650.00 4,778,650.00 0.00 SECURITIES,LLC/5,000,000 PAR VALUE AT 95.573% 02/26/2018 24422ESXB PURCHASED PAR VALUE OF JOHN DEERE MTN 1.600% 7/13/18/PERSHING 1,500,000,0000 0,998400 -1,497,600.00 1,497,600.00 0.00 LLC/1,500,000 PAR VALUE AT 99.84% 02/28/2018 47788CAC6 PURCHASED PAR VALUE OF JOHN DEERE OWNER 2.660% 4/13/22/RBC CAPITAL 1,340,000.0000 0.999928 -1,339,903.65 1,339,903.65 0.00 MARKETS,LLC/1,340,000 PAR VALUE AT 99.9928097% 02/21/201846625HJL5 PURCHASED PAR VALUE OF JPMORGAN CHASE CO 1,625% 5/15/18/PERSHING 1,250,000,0000 0,999620 -1,249,525.00 1,249,525.00 0.00 LLC/1,250,000 PAR VALUE AT 99.962% 02/14/2018 65478VAD9 PURCHASED PAR VALUE OF NISSAN AUTO 1.320% 1115121 /BONV7rORONTO 2,000,000.0000 0.991992 -1,983.984.38 1,983.984.38 0.00 DOMINION SECURITI/2,000,000 PAR VALUE AT 99.199219% 02/13/2018 65477UAD2 PURCHASED PAR VALUE OF NISSAN AUTO 1.500% 9/15/21 /INTL FCSTONE 1,800,000,0000 0,993750 -1,788,750.00 1,788,750.00 0.00 FINL INC./BD RATE11,800,000 PAR VALUE AT 99.375% 02/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 1,007,083.3000 1.000000 -1,007.083.30 1,007.083.30 0.00 02/02/2018 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 8,926.8900 1.000000 -8,926.89 8,926.89 0.00 02/02/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 34,386.1500 1,000000 -34,386.15 34,386.15 0.00 02/07/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CLZ 1,332,500.0000 1.000000 -1,332,500.00 1,332,500.00 0.00 02/08/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,006.166.6000 1.000000 -1,006.166.60 1,006.166.60 0.00 02/08/2018 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 23,598.7500 1.000000 -23,598.75 23.598.75 0.00 02/09/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 4,554,528,3500 1,000000 4,554,528.35 4,554,528.35 0.00 1 of 9 U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIP Id Explanation Units Price Net Cash Anat Cost Gain/Loss 02/1512018 89233HFE9 PURCHASED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 6/14/18/DBTC 1,800,000.0000 0.993620 -1,788,516.50 1,788,516.50 0.00 AMERICAS/COMMERCIAL PAPER/1,800,000 PAR VALUE AT 99.36202778% 02/15/2018 31846VS67 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 1,021,154.7300 1.000000 -1,021.154.73 1,021.154.73 0.00 02/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,334,490.6000 1.000000 -2,334,490.60 2,334,490.60 0.00 02/16/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 5,000,000.00 5,000,000.00 0.00 02/16/2018 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 13,000.906.4000 1.000000 -13,000.906.40 13,000.906.40 0.00 02/20/2018 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 1,145.053.3600 1.000000 -1,145.053.36 1,145.053.36 0.00 02/20/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,262.5400 1.000000 -1,262.54 1,262.54 0.00 02/21/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 154,243.1200 1.000000 -154,243.12 154,243.12 0.00 02/21/2018 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 7,500.000.0000 1.000000 -7,500.000.00 7,500.000.00 0.00 02/22/2018 31846VS67 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z 1.000,000.0000 1.000000 -1,000.000.00 1,000.000.00 0.00 02/23/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 45,000.0000 1.000000 45,000.00 45,000.00 0.00 02/26/2018 69372BEQ9 PURCHASED PAR VALUE OF PACCAR FINANCIAL CORP C P 5/24/181MIZUHO 1,500,000.0000 0.995529 -1,493,293.75 1,493,293.75 0.00 SECURITIES USA FXD INC/1,500,000 PAR VALUE AT 99.55291667% 02/26/2018 69372BEQ9 PURCHASED PAR VALUE OF PACCAR FINANCIAL CORP C P 5/24/18/MIZUHO 5.000,000.0000 0.995529 4,977.645.83 4,977.645.83 0.00 SECURITIES USA FXD INC/5,000,000 PAR VALUE AT 99.5529166% 02/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,999,533.3300 1.000000 5,999,533.33 5,999,533.33 0.00 02/26/2018 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 91.549.9600 1.000000 -91.549.96 91.549.96 0.00 02/27/2018 857477AK9 PURCHASED PAR VALUE OF STATE STREET CORP 1.350% 5/15/18/CITIGROUP 1.300,000.0000 0.998660 -1,298.258.00 1.298.258.00 0.00 GLOBAL MARKETS INC./1,300,000 PAR VALUE AT 99,866% 0228/2018 78012UAX3 PURCHASED PAR VALUE OF ROYAL BK OF C D 2.320%11/27/18/RBC CAPITAL 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0,00 MARKETS,LLC/1,000,000 PAR VALUE AT 100% TOTAL ACQUISITIONS 98,744,384,0800 -98,333,730.87 98,333,730.87 0.00 DISPOSITIONS 02/13/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,790,850,0000 1,000000 1,790,850.00 -1,790,850.00 0.00 02/14/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z -1,986,111.0500 1.000000 1,986,111.05 -1,986,111.05 0.00 02/15/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z -1,788.516.5000 1.000000 1,788.516.50 -1,788.516.50 0.00 02/15/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z .626.645.4200 1.000000 626,645.42 .626.645.42 0.00 02/202018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,002,755.8300 1,000000 1,002,755.83 -1,002,755.83 0.00 0221/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z -1,254,941.6700 1.000000 1,254,941.67 -1,254,941.67 0.00 0226/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z -11,443.193.7500 1.000000 11,443.193.75 -11,443.193.75 0.00 02/26/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z 4,962,295.8000 1.000000 4,962.295.80 4,962.295.80 0.00 02/272018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,303,230.5000 1,000000 1,303,230.50 -1,303,230.50 0.00 0227/2018 31846V567 SOLD UNITS OF FIRST AM DOW OB FD CL Z -6,493,945.9700 1.000000 6,493,945.97 -6,493,945.97 0.00 2 of U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 PostDate CUSIPId Explanation Units Price Net Cash Amt Cost Gain/Loss 02/27/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -7,489,917 7100 1,000000 7,489,917.71 -7,489,917,71 0.00 02/28/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z -1,000.000.0000 1.000000 1,000.000.00 -1,000.000.00 0.00 02/28/2018 31846V567 SOLD UNITS OF FIRST AM GOUT OB FD CL Z 4,078,669.3400 1.000000 4,078.669.34 -4,078.669.34 0.00 02/15/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.187% 1101/28 JANUARY FHLMC -16.3100 0.000000 16.31 -15.91 0.40 DUE 2/15118 02/15/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.349% 8115/32 -1.265.0000 0.000000 1.265.00 -1,266.32 -1.32 02/15/2018 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4115/20 -130.695.1000 0.000000 130,695.10 -130.692.56 2.54 02/15/201847788NAB4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.090% 2/15119 -346,753.1300 1.444877 346,753.13 -346,731.98 21.15 02/15/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15120 -225,468.7600 13.488153 225,468.76 -225,433.27 35.49 02/15/201847787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 -175.907.950017.288343 175.907.95 -175.907.25 0.70 02/15/2018 65478WA81 PAID DOWN PAR VALUE OF NISSAN AUTO 1.070% 5115/19 -150.985.9200 3.318294 150,985.92 -150.979.97 5.95 02/15/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1115120 -109,093.0100 4.592555 109,093.01 -109,092.45 0.56 02/15/201889236WAC2 PAID DOWN PAR VALUE OF TOYOTA AUTO 1.120% 2/15/19 -140,183.4300 0.000000 140,183.43 -140,162.23 21.20 02/16/2018 3837H4NX9 PAID DOWN PAR VALUE OF G N M A GTD REMIC 2.059% 016/30 -873.7400 0.000000 873.74 -873.74 0.00 02/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 119080023 3.125%12/20/26 JANUARY GNMA -188.0000 0.000000 188.00 -191.11 .3.11 DUE 2120118 02/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#080088 2.625% 6/20/27 JANUARY GNMA -1,238.1800 0.000000 1,238.18 -1,265.27 -27.09 DUE 2/20/18 02/20/2018 36225CNM4 PAID DOWN PAR VALUE OF G N M A 119080395 2.625% 4/20130 JANUARY GNMA .68.2400 0.000000 68.24 .67.62 0.62 DUE 2/20/18 02/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 2.625% 5/20130 JANUARY GNMA -2,613.8600 0.000000 2,613.86 -2,587.31 26.55 DUE 2120/18 02/20/2018 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#080965 2.750% 7/20134 JANUARY GNMA -724.9900 0.000000 724.99 -724.54 0.45 DUE 2/20/18 02/21/2018 43814TAB8 PAID DOWN PAR VALUE OF HONDA AUTO 1.420% 7/22/19 -152,920.6800 6.530142 152,920.68 -152,917.03 3.65 02/26/2018 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9125/43 -7.445.4300 0.000000 7.445.43 -8,431.95 -986.52 02/26/2018 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01128 JANUARY FNMA -157.6600 0.000000 157.66 -166.74 .9.08 DUE 2/25/18 02/26/2018 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9/01/35 JANUARY FNMA -1,126.9100 0.000000 1,126.91 -1,211.43 -84.52 DUE 2/25/18 02/26/2018 31381 PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.51332%11/01/20 JANUARY FNMA .645.1500 0.000000 645.15 .631.19 13.96 DUE 2/25/18 02/26/2018 31403DJZ3 PAID DOWN PAR VALUE OFF N M A#745580 5.000% 6/01/36 JANUARY FNMA -1,803.7900 0.000000 1,803.79 -1,939.07 -135.28 DUE 2/25/18 02/26/2018 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 JANUARY FNMA -582.6500 0.000000 582.65 .626.35 .43.70 DUE 2/25/18 30f9 U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss 02/26/2018 31406POYS PAID DOWN PAR VALUE OF F N M A#815971 5.000% 3/01/35 JANUARY FNMA -3,221.5800 0.000000 3,221.58 -3463 20 -241.62 DUE 2125/18 02/26/2018 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 3.484% 2/01135 JANUARY FNMA 475.6000 0.000000 475.60 471.88 3.72 DUE PJ25118 02/26/2018 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7/01/35 JANUARY FNMA 491.1500 0.000000 491.15 -527.99 -36.84 DUE 2125118 02/26/2018 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01136 JANUARY FNMA -3.987.9700 0.000000 3.987.97 4.287.07 -299.10 DUE 2/25/18 02/26/2018 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 JANUARY FNMA -252.1400 0.000000 252.14 -266.66 -14.52 DUE 2125118 02/26/2018 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4101/29 JANUARY FNMA -390.3100 0.000000 390.31 412.79 -22.48 DUE PJ25118 02/26/2018 31397OREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 225/41 -4,091.5600 0.000000 4,091.56 -4,090.28 1.28 02/07/2018 313385SUl MATURED PAR VALUE OF F H L B DISC NTS 2107/18 1,300,000 PAR VALUE AT -1,300.000.0000 1.000000 1,299.094.33 -1,299,094.33 0.00 100% 02/09/2018 313385SW7 MATURED PAR VALUE OF F H L B DISC NTS 2/09/18 7,400,000 PAR VALUE AT -7,400,000.0000 1.000000 7,394,345.17 -7,394,345.17 0.00 100% 02/15/2018 674599CD5 MATURED PAR VALUE OF OCCIDENTAL PETROLM 1.500% 2/151182.000,000 PAR -2,000.000.0000 1.000000 2,000.000.00 -1,986,340.00 13,660.00 VALUE AT 100% 02/162018 313385TD8 MATURED PAR VALUE OF F H L B DISC NTS 2/16/18 13,000,000 PAR VALUE AT -13,000,000.0000 1,000000 13,000,000.00 -13,000,000.00 0.00 100% 02/16/2018 313385TD8 MATURED PAR VALUE OF F H L B DISC NTS 2116/18 5,000,000 PAR VALUE AT 5,000.000.0000 1.000000 5,000.000.00 5,000.000.00 0.00 100% 02/202018 313385TD8 MATURED PAR VALUE OF F H L B DISC NTS 2/16/18 13,000,000 PAR VALUE AT -13,000,000,0000 1,000000 12,992,019.44 -12,992,019.44 0.00 100% 02/20/2018 313385TD8 MATURED PAR VALUE OF F H L B DISC NTS 2116/18 5,000,000 PAR VALUE AT 5,000.000.0000 1.000000 4,996.930.56 4,996.930.56 0.00 100% 02/20/2018 313385TH9 MATURED PAR VALUE OF F H L B DISC NTS 2/20/18 1,100,000 PAR VALUE AT -1,100,000.0000 1,000000 1,098,689.78 -1,098,689.78 0.00 100% 0220/2018 313385TD8 MATURED-REV PAR VALUE OF F H L B DISC NTS 2/16118 13,000.000 PAR 13,000.000.0000 1.000000 -13,000.000.00 13,000.000.00 0.00 VALUE AT 100% 02202018 313385TD8 MATURED-REV PAR VALUE OF F H L B DISC NTS 2/16/18 5,000,000 PAR 5,000,000.0000 1,000000 -5,000,000.00 5,000,000.00 0.00 VALUE AT 100% 0221/2018 313385TJ5 MATURED PAR VALUE OF F H L B DISC NTS 221/18 7,500,000 PAR VALUE AT -7,500.000.0000 1.000000 7,492.311.67 -7,492.311.67 0.00 100% 02/222018 02665KBN6 MATURED PAR VALUE OF AMERICAN HONDA FINANCE C P 2/22/18 1,000,000 PAR -1,000,000.0000 1,000000 997,237.50 -997,237.50 0.00 VALUE AT 100% 02/262018 313385TP1 MATURED PAR VALUE OF F H L B DISC NTS 226/18 7,500,000 PAR VALUE AT -7,500.000.0000 1.000000 7,492.904.17 -7,492.904.17 0.00 100% 4 of U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 PostDate CUSIPId Explanation Units Pries Net Cash Amt Cost Gain/Loss 02/28/2018 912828UR9 MATURED PAR VALUE OF U S TREASURY NT 0.750% 2/28/18 3,500,000 PAR -3,500,000,0000 1,000000 3,500,000,00 -3,496,457,04 3,542.96 VALUE AT 100% 02/01/2018 46623EKDO FULL CALL PAR VALUE OF JPMORGAN CHASE MTN 1.700% 3/01118/CALLS/ -1,000,000.0000 1.000000 1,000,000.00 -999,780.00 220.00 02/08/2018 808513AK1 FULL CALL PAR VALUE OF CHARLES SCHWAB CORP 1.500% 3/10/18/CALLS/ -1,000,0000000 1,000000 1,000,000,00 -1,001,100,00 -1,100.00 TOTAL DISPOSITIONS -52,763,668.2000 52,727,200.82 -52,712,644.82 14,556.0000 OTHER TRANSACTIONS 02/16/2018 313385TD8 ACCREDITED DISCOUNT ON F H L B DISC NITS 2116/18 MARKET DISCOUNT 0.0000 0.000000 0.00 3,069.44 0.00 02/16/2018 313385TD8 ACCREDITED DISCOUNT ON F H L B DISC NITS 2116/18 MARKET DISCOUNT 0.0000 0.000000 0.00 7,980.56 0.00 02/20/2018 313385TD8 ACCREDITED DISCOUNT ON F H L B DISC KITS 2116/18 MARKET DISCOUNT 0.0000 0.000000 0.00 -3,069.44 0.00 02/20/2018 313385TD8 ACCREDITED DISCOUNT ON F H L B DISC NITS 2/16/18 MARKET DISCOUNT 0.0000 0.000000 0.00 -7,980.56 0.00 02/13/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 02/26/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY-3016.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 02/13/2018 912828WUO FED BASIS OF U S TREASURY I PS 0.125% 7115124 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 J,120.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 02/26/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY-3016.00 UNITS 0.0000 0,000000 0.00 -3,016.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 02/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 8.926.89 0.00 0.00 1/31/2018 INTEREST FROM 111/18 TO 1131118 02/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0,0000 0,000000 34,386.15 0.00 0.00 1/31/2018 INTEREST FROM 111/18 TO 1/31118 02/01/2018 46623EKDO INTEREST EARNED ON JPMORGAN CHASE MTN 1.700% 3/01/18$1 PV ON 0.0000 0.000000 7,083.30 0.00 0.00 1000000.0000 SHARES DUE 2/1/2018 02/07/2018 06406RAA5 INTEREST EARNED ON BANK OF NY MTN 2,600% 2/07/22$1 PV ON 2500000.0000 0,0000 0,000000 32,500.00 0.00 0.00 SHARES DUE 2/7/2018 02/07/2018 313385SUl INTEREST EARNED ON F H L B DISC NITS 2107118$1 PV ON 1300000.0000 0.0000 0.000000 905.67 0.00 0.00 SHARES DUE 217/2018 1,300.000 PAR VALUE AT 100% 02/08/2018 808513AK1 INTEREST EARNED ON CHARLES SCHWAB CORP 1.500% 3110/18$1 PV ON 0,0000 0,000000 6,166.60 0,00 0.00 1000000.0000 SHARES DUE 2/8/2018 02/08/2018 594918BP8 INTEREST EARNED ON MICROSOFT CORP 1.550% 8/08/21 $1 PV ON 0.0000 0.000000 23,598.75 0.00 0.00 3045000.0000 SHARES DUE 2/8/2018 02/09/2018 313385SW7 INTEREST EARNED ON F H L B DISC NITS 2/09/18$1 PV ON 7400000.0000 0,0000 0,000000 5,654.83 0.00 0.00 SHARES DUE 2/9/2018 7,400,000 PAR VALUE AT 100% 02/15/2018 02665WAH4 INTEREST EARNED ON AMERICAN HONDA MTN 2.250% 8/15/19$1 PV ON 0.0000 0.000000 45.000.00 0.00 0.00 4000000.0000 SHARES DUE 2/1 512 01 8 5 Of U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss 02/15/2018 31348SWZ3 INTEREST EARNED ON F H L M C#786064 3.187% 1/01/28$1 PV ON 5.8200 SHARES 0.0000 0.000000 5.82 0.00 0.00 DUE 2/15/2018 DECEMBER FHLMC DUE 2/15/18 02/15/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.349% 8115/32$1 PV ON 66.2200 0.0000 0.000000 66.22 0.00 0.00 SHARES DUE 2115/2018$0.002791PV ON 23,726.00 PV DUE 2/15/18 02/15/2018 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 1891.1800 0.0000 0.000000 1,891.18 0.00 0.00 SHARES DUE 2/15/2018$0.00116/PV ON 1,632,677.04 PV DUE 2/15118 02/15/2018 47788NA94 INTEREST EARNED ON JOHN DEERE OWNER 1.090% 2/15/19$1 PV ON 442.6800 0.0000 0.000000 442.68 0.00 0.00 SHARES DUE 2115/2018$0.00091/PV ON 487,352.60 PV DUE 2/15/18 02/15/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 2305.0100 0.0000 0.000000 2,305.01 0.00 0.00 SHARES DUE 2/15/2018$0.00113/PV ON 2.033,829.14 PV DUE 2/15118 02/15/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500%10/15/19$1 PV ON 1531.3800 0.0000 0.000000 1.531.38 0.00 0.00 SHARES DUE 2/15/2018$0.00125/PV ON 1,225,104.02 PV DUE 2/15118 02/15/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 1272.0000 0.0000 0.000000 1,272.00 0.00 0.00 SHARES DUE 2/15/2018$0.00133/PV ON 960,000.00 PV DUE 2115/18 02/15/2018 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 0.0000 0.000000 1,023.75 0.00 0.00 675000.0000 SHARES DUE 2/15/2018 02/15/2018 65478WAB1 INTEREST EARNED ON NISSAN AUTO 1.070% 5/15/19$1 PV ON 517.0800 0.0000 0.000000 517.08 0.00 0.00 SHARES DUE 2/15/2018$0.00089/PV ON 579,900.19 PV DUE 2115/18 02/15/2018 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15121 $1 PV ON 2000000.0000 0.0000 0.000000 2.200.00 0.00 0.00 SHARES DUE 2/15/2018 02/15/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15/20$1 PV ON 1404.0600 0.0000 0.000000 1,404.06 0.00 0.00 SHARES DUE 2/15/2018$0.001231PVON 1,146,173.95PVDUE 2/15118 02/15/2018 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15121 $1 PV ON 2250.0000 0.0000 0.000000 2.250.00 0.00 0.00 SHARES DUE 2115/2018$0.00125/PV ON 1,800,000.00 PV DUE 2/15118 02/15/2018 674599CD5 INTEREST EARNED ON OCCIDENTAL PETROLM 1.500% 2115/18$1 PV ON 0.0000 0.000000 15,000.00 0.00 0.00 2000000.0000 SHARES DUE 2/1 512 01 8 02/15/2018 89236WAC2 INTEREST EARNED ON TOVOTA AUTO 1.120% 2/15/19$1 PV ON 367.5400 0.0000 0.000000 367.64 0.00 0.00 SHARES DUE PJ15/2018$0.00093/PV ON 393,791.63 PV DUE 2/15/18 02/16/2018 3837H4NX9 INTEREST EARNED ON G N M A GTD REMIC 2.059% 2116/30$1 PV ON 32.6600 0.0000 0.000000 32.66 0.00 0.00 SHARES DUE 2/lr/2018$0.00172/PV ON 19,029.07 PV DUE 2116/18 02/20/2018 3130A7CV5 INTEREST EARNED ON F H L B DEB 1.375% 2/18/21 $1 PV ON 5365000.0000 0.0000 0.000000 36.884.38 0.00 0.00 SHARES DUE 2/18/2018 02/20/2018 313385TD8 INTEREST EARNED ON F H L B DISC NTS 2116/18$1 PV ON 13000000.0000 0.0000 0.000000 7,980.56 0.00 0.00 SHARES DUE 2/16/2018 13,000,000 PAR VALUE AT 100% 02/20/2018 313385TD8 INTEREST EARNED ON F H L B DISC NTS 2116/18$1 PV ON 5000000.0000 0.0000 0.000000 3.069.44 0.00 0.00 SHARES DUE 2/16/2018 5,000,000 PAR VALUE AT 100% 02/20/2018 313385TH9 INTEREST EARNED ON F H L B DISC NTS 2120/18$1 PV ON 1100000.0000 0.0000 0.000000 1,310.22 0.00 0.00 SHARES DUE 2/20/2018 1.100,000 PAR VALUE AT 100% 6 of U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss 02/20/2018 36225CAZ9 INTEREST EARNED ON G N M A 11#080023 3.125%12/2026$1 PV ON 55.1700 0.0000 0.000000 55.17 0.00 0.00 SHARES DUE 2/20/2018 JANUARV GNMADUE 220/18 02202018 36225CC20 INTEREST EARNED ON G N M A 11#080088 2.625% 62027$1 PV ON 53.6800 0.0000 0.000000 53.68 0.00 0.00 SHARES DUE 2120/2018 JANUARV GNMADUE 220/18 0220/2018 36225CNM4 INTEREST EARNED ON G N M A 11#0803952.625% 4/20/30$1 PV ON 19.0000 0.0000 0.000000 19.00 0.00 0.00 SHARES DUE 2/20/2018 JANUARV GNMADUE 220/18 02/202018 36225CN28 INTEREST EARNED ON G N M A 11#080408 2.625% 520130$1 PV ON 153.7000 0.0000 0.000000 153.70 0.00 0.00 SHARES DUE 212012018 JANUARV GNMADUE 220/18 0220/2018 36225DCB8 INTEREST EARNED ON G N M A 11#0809652.750% 7/20/34$1 PV ON 155.2000 0.0000 0.000000 155.20 0.00 0.00 SHARES DUE 2/20/2018 JANUARV GNMADUE 2/20/18 02/202018 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 2898.9600 0.0000 0.000000 2.898.96 0.00 0.00 SHARES DUE PJ18/2018$0.00101/PV ON 2,875,000.00 PV DUE 2/18118 0220/2018 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 121/20$1 PV ON 1262.5400 0.0000 0.000000 1,262.54 0.00 0.00 SHARES DUE 2/18/2018$0.00131/PV ON 965,000.00 PV DUE 2118/18 02/212018 313385TJ5 INTEREST EARNED ON F H L B DISC NTS 2/21/18$1 PV ON 7500000.0000 0.0000 0.000000 7.688.33 0.00 0.00 SHARES DUE 2/21/2018 7,500,000 PAR VALUE AT 100% 0221/2018 43814TAB8 INTEREST EARNED ON HONDA AUTO 1.420% 722/19$1 PV ON 1322.4400 0.0000 0.000000 1,322.44 0.00 0.00 SHARES DUE 2/21/2018$0.00118/PV ON 1,117,554.76 PV DUE 221118 0222/2018 02665KBN6 INTEREST EARNED ON AMERICAN HONDA FINANCE C P 2/22/18$1 PV ON 0.0000 0.000000 2.762.50 0.00 0.00 1000000.0000 SHARES DUE 2/22/2018 1,000,000 PAR VALUE AT 100% 0223/2018 037833BS8 INTEREST EARNED ON APPLE INC 2.250% 212321 $1 PV ON 4000000.0000 0.0000 0.000000 45,000.00 0.00 0.00 SHARES DUE 2/23/2018 02/262018 03215PFN4 INTEREST EARNED ON AMRESCO 2.6681% 625129$1 PV ON 297.3700 0.0000 0.000000 297.37 0.00 0.00 SHARES DUE PJ25/2018$0.00222/PV ON 133,743.29 PV DUE 225/18 0226/2018 313385TP1 INTEREST EARNED ON F H L B DISC NTS 2126/18$1 PV ON 7500000.0000 0.0000 0.000000 7,095.83 0.00 0.00 SHARES DUE 226/2018 7.500,000 PAR VALUE AT 100% 0226/2018 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1126/20$1 PV ON 3188.2500 0.0000 0.000000 3.188.25 0.00 0.00 SHARES DUE PJ25/2018$0.00354/PV ON 900,000.00 PV DUE 225/18 0226/2018 31394JY35 INTEREST EARNED ON F H L M C MLTCL NITS 6.500% 9125/43$1 PV ON 4716.3500 0.0000 0.000000 4,716.35 0.00 0.00 SHARES DUE 2/25/2018$0.00542/PV ON 870,709.95 PV DUE 2125118 02262018 31371 NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/0128$1 PV ON 77.7500 0.0000 0.000000 77.75 0.00 0.00 SHARES DUE 2125/2018 JANUARV FNMADUE 2/25/18 0226/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 549.7600 0.0000 0.000000 549.76 0.00 0.00 SHARES DUE 2/25/2018 JANUARV FNMADUE 225/18 0226/2018 31381 PDA3 INTEREST EARNED ON F N M A#466397 3.51332%11/0120$1 PV ON 1028.7100 0.0000 0.000000 1.028.71 0.00 0.00 SHARES DUE 2125/2018 JANUARV FNMADUE 2/25/18 0226/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 535.4200 0.0000 0.000000 535.42 0.00 0.00 SHARES DUE 2/25/2018 JANUARV FNMADUE 225/18 7of9 U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIPId Explanation Units Price Net Cash Anat Cost Gain/Loss 02/26/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 14.2700 0.0000 0.000000 14.27 0.00 0.00 SHARES DUE 2/2 512 01 8 JANUARY FNMADUE 2/25/18 02/26/2018 31406PQYB INTEREST EARNED ON F N M A M5971 5.000% 3/01135$1 PV ON 924.0000 0.0000 0.000000 924.00 0.00 0.00 SHARES DUE 2125/2018 JANUARY FNMADUE 2/25/18 02/26/2018 31406XWT5 INTEREST EARNED ON F N M A#823358 3.484% 2/01/35$1 PV ON 381.0800 0.0000 0.000000 381.08 0.00 0.00 SHARES DUE 2/25/2018 JANUARY FNMADUE 2/25/18 02/26/2018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON 102.3700 0.0000 0.000000 102.37 0.00 0.00 SHARES DUE 212512018 JANUARY FNMADUE 2/25/18 02/26/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 1042.0200 0.0000 0.000000 1,042.02 0.00 0.00 SHARES DUE 2/25/2018 JANUARY FNMADUE 2/25/18 02/26/2018 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01129$1 PV ON 53.5000 0.0000 0.000000 53.50 0.00 0.00 SHARES DUE PJ25/2018 JANUARY FNMADUE 2/25/18 02/26/2018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01129$1 PV ON 88.1500 0.0000 0.000000 88.15 0.00 0.00 SHARES DUE 2/2 512 01 8 JANUARY FNMADUE 2/25/18 02/26/2018 3135GOJ20 INTEREST EARNED ON F N M A DEB 1.375% 2/26121 $1 PV ON 10000000.0000 0.0000 0.000000 68.750.00 0.00 0.00 SHARES DUE 2/26/2018 02/26/2018 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 479.0900 0.0000 0.000000 479.09 0.00 0.00 SHARES DUE 2/25/2018$0.001871PV ON 256,501.82 PV DUE 2125/18 02/28/2018 912828UR9 INTEREST EARNED ON U S TREASURY NT 0.750% 2/28/18$1 PV ON 3500000.0000 0.0000 0.000000 13.125.00 0.00 0.00 SHARES DUE 2/28/2018 02/28/2018 91282BL24 INTEREST EARNED ON U S TREASURY NT 1.875% 8131/22$1 PV ON 6000000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 2/28/2018 02/09/2018 43814RAGO PAID ACCRUED INTEREST ON PURCHASE OF HONDA AUTO 1.210%12/18/20 0.0000 0.000000 -2.029.27 0.00 0.00 02/13/2018 65477UAD2 PAID ACCRUED INTEREST ON PURCHASE OF NISSAN AUTO 1,500% 9/15121 0.0000 0.000000 -2,100.00 0.00 0.00 02/14/2018 65478VAD9 PAID ACCRUED INTEREST ON PURCHASE OF NISSAN AUTO 1.320% 1/15/21 0.0000 0.000000 -2,126.67 0.00 0.00 02/15/2018 40428HPJ5 PAID ACCRUED INTEREST ON PURCHASE OF HSBC USA INC 2.625% 9124/18 0.0000 0.000000 -6,364.09 0.00 0.00 02/20/2018 06050TMC3 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF AMERICA MTN 1.750% 0.0000 0.000000 -3.645.83 0.00 0.00 6/05118 02/21/2018 46625HJL5 PAID ACCRUED INTEREST ON PURCHASE OF JPMORGAN CHASE CO 1.625% 0.0000 0.000000 -5,416.67 0.00 0.00 5/15118 02/26/2018 24422ESXB PAID ACCRUED INTEREST ON PURCHASE OF JOHN DEERE MTN 1.600% 7113/18 0.0000 0.000000 -2.866.67 0.00 0.00 02/27/2018 3137EAEL9 PAID ACCRUED INTEREST ON PURCHASE OF F H L M C M T N 2.375% 2/i6/21 0.0000 0.000000 5,442.71 0.00 0.00 02/27/2018 857477AK9 PAID ACCRUED INTEREST ON PURCHASE OF STATE STREET CORP 1.350% 0.0000 0.000000 -4.972.50 0.00 0.00 5115118 02/28/2018 06406RAE7 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NY MTN 2.950% 1/29/23 0.0000 0,000000 -3,564.58 0.00 0.00 8 Of U.S. Bank Transaction History 02/01/2018 Thru 02/28/2018 Post Date CUSIPId Explanation Units Price Net Cash Arat Cost Gain/Loss 02/28/2018 4581XOCZ9 PAID ACCRUED INTEREST ON PURCHASE OF INTER AMER DEV BK 1.750% 9/14122 0.0000 0.000000 -39,861.11 0.00 0.00 02/13/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3120.0000 -3,120.0000 0.000000 0.00 0.00 0.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 02/26/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY-3016.0000 -3,016.0000 0.000000 0.00 0.00 0.00 UNITS DECREASE TO ADJUST FOR CHANGE IN CPI 02/13/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY-3120.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI 02/26/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY-3016.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 DECREASE TO ADJUST FOR CHANGE IN CPI TOTAL OTHER TRANSACTIONS -6,136.0000 385,456.51 -6,136.00 0.00 9 Of BOARD OF DIRECTORS Meng D310 TOBE. Dir. 02/lti28/18 03/28/1Of8 AGENDA REPORT Item Item Number 9 4 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED ORDINANCE NO. OCSD-49 ADOPTING REGIONAL SEWER SERVICE CHARGES GENERAL MANAGER'S RECOMMENDATION A. Conduct a Public Hearing under Proposition 218 for Proposed Multi-Year Regional Sewer Service Charges and under Health and Safety Code section 5473.1 for collection of charges on the tax roll. • Open Public Hearing. Receive Public Comment. • Close Public Hearing. B. Direct the Clerk of the Board to tabulate the results of the protests received and report the number of protests to the Board of Directors. If no majority protest: C. Motion to read Ordinance No. OCSD-49 by title only and waive second reading of said entire ordinance; D. Adopt Ordinance No. OCSD49 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance No. OCSD-46"; and E. Adopt Resolution No. OCSD 18-03 entitled, "A Resolution of the Board of Directors Directing the County Tax Collector-Treasurer to include Regional Sanitary Sewer Service Charges on the Tax Roll for Fiscal Years 2018-2019 through 2022-2023." BACKGROUND Carollo Engineers completed the 2017 Facilities Master Plan which was approved by the Board in December 2017. In conjunction with the Facilities Master Plan, Carollo was tasked with providing an independent analysis of the Sanitation District's cash flow modeling and a rate study. This rate study was received and filed by the Board in December 2017. Page 1 of 3 The proposed five-year rate schedule provides for equitable and proportionate distribution for the cost of service of operating the Sanitation District's wastewater system: 2018-19 2019-20 2020-21 2021-22 2022-23 $335 $339 $343 $347 $351 RELEVANT STANDARDS • Stable rates, no large unforeseen rate increases PROBLEM The Orange County Sanitation District's Board of Directors approved a five-year rate schedule which expires at the end of the current fiscal year. PROPOSED SOLUTION Adopt an ordinance with the new proposed five-year rate schedule based internal staff review and 2017 Master Plan 2017 Rate Study performed by an independent engineering consultant and received and filed by the Board in December 2017. TIMING CONCERNS February 91h— Notifications Mailed February 281h— First Reading of the Ordinance March 28� — Public Hearing, Second Reading and Adoption of the Ordinance July 151— Ordinance takes effect RAMIFICATIONS OF NOT TAKING ACTION Sewer service fees will be insufficient to support the on-going operational costs and costs associated with the facilities master plan update. PRIOR COMMITTEE/BOARD ACTIONS February 2018 — 1s1 reading of Ordinance No. OCSD-49 December 2017 -Approval of the 2017 Facilities Master Plan and Received and Filed the 2017 Rate Study June 2014 - Adoption of Ordinance No. OCSD-46 (Amends OCSD41) July 2013 -Adoption of Ordinance No. OCSD41 January 2013-Approval of the previous Sanitation District Wastewater Revenue Program Rate Study Page 2 of 3 ADDITIONAL INFORMATION Based on the results of the rate study completed by Carollo Engineers, Sanitation District staff is in the process of recommending a five-year revenue program which includes an increase of approximately 1.2 percent annually for the next five years. Rate Development Schedule 1) June 2017 - Board Meeting— Budget and 10-year Cashflow Approval 2) June 2017 - November 2017 - Development of the Facilities Master Plan 3) June 2017 - November 2017 - Development of the Independent Rate Study 4) December 2017 - Operations Committee - Facilities Master Plan Review & Approval 5) December 2017 -Administration Committee - Rate Study Review and Approval 6) December 2017 - Board Meeting - Facilities Master Plan Review and Approval 7) December 2017 - Board Meeting - Independent Rate Study Review and Approval 8) December 2017 - Board Meeting -Approval to issue Proposition 218 Notices 9) February 2018 - Proposition 218 Notice Mailed 10)February 2018 -Administration Committee - Budget Assumptions for 2018-19 11)February 2018 - Board Meeting - Rate Ordinances - First Reading 12)March 2018 - Board Meeting - Rate Ordinances - Second Reading -Adoption ATTACHMENT The following attachment(a)is available in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: • Ordinance No. OCSD-49 • Resolution No. OCSD 18-03 • Cost Savings Measures Memorandum • Correspondence received to date in response to Proposition 218 notification to parcel owners Page 3 d 3 ORDINANCE NO. OCSD-49 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING REGIONAL SEWER SERVICE CHARGES AND REPEALING ORDINANCE NO. OCSD-41 AND ORDINANCE NO. OCSD46 WHEREAS, Health & Safety Code Section 5471 authorizes the Orange County Sanitation District's ("District") Board of Directors to impose fees and other charges for services and facilities furnished by the District in connection with the District's sewage collection, treatment, disposal, and reuse system; and WHEREAS, the District imposes annual sewer service charges on residential and commercial users. The District uses revenue from these charges to operate, maintain, replace, and improve the District's existing facilities. The current service charges are set forth in Ordinance No. OCSD-41, as amended by Ordinance No. OCSD-46; and WHEREAS, the District recently retained Carollo Engineers to evaluate the District's projected revenue needs and recommend rates for the five-year period of July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its "Final Report and Recommendations on Wastewater Rates, Fees, and Charges" ("Carollo Report'). The District's Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and WHEREAS, the recommendations set forth in the Carollo Report are based in part on the District's 2017 Facilities Master Plan ("Master Plan"). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District's Board of Directors approved the Master Plan on December 20, 2017; and WHEREAS, pursuant to Article XIIID, section 6, of the California Constitution, the District mailed notice of a public hearing on the proposed sewer service charges to the record owner of each parcel subject to the proposed charges. The notice, which set forth the date, time, and location of the public hearing, as well as the charges, fees, and rates proposed for imposition, was mailed no less than 45 days prior to the public hearing; and WHEREAS, pursuant to Health and Safety Code sections 4766 and 5473, the Board of Directors may elect to have the proposed regional sewer service charges collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes; and WHEREAS, pursuant to Health and Safety Code section 5473.1, on March 14, 2018 and again on March 21, 2018, notice of a public hearing regarding the proposed sewer service charges and the election to have such charges collected on the tax roll was published in the Orange County Register, a newspaper of general circulation within the District published in the county where OCSD-49-1 the District is located. The notice set forth the date, time and location of the hearing; and WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing in order to receive and consider comments, including objections, concerning the proposed regional sewer service charges and the election to have such charges collected on the tax roll; and WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing; NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: SECTION I. Adopt Regional Sewer Service Charges TABLE OF CONTENTS ARTICLE I: FINDINGS Section 1.01 Findings ARTICLE II: SEWER SERVICE CHARGES Section 2.01. Purpose and Scope Section 2.02. Annual Sewer Service Charge Section 2.03. Exemptions, Rebates, Refunds and Reduced Charges A. Exemptions B. Application for Water Efficiency Rebate/ Reduced Charge C. Application for Refund D. Limitation Period E. Determination F. Administrative Fee G. Duration of Reduced Charge H. Penalty Section 2.04. Annual Charge Based on Fiscal Year Section 2.05. Method of Collection Section 2.06. Credit for Industrial Permittees Section 2.07. Open-Air Facilities Table A Annual Sewer Service Charges for Residential Users Table B Annual Sewer Service Charges Property Use Classifications OCSD-49-2 ARTICLE III: MISCELLANEOUS Section 3.01. Application of Ordinance Section 3.02. Exceptions Section 3.03. Out of Area Sewer Service Agreements ARTICLE I FINDINGS Section 1.01. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby finds that: A. The revenues collected pursuant to this Ordinance shall be used to finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District's existing facilities, fund necessary reserves, and retire debt incurred to finance such activities. The revenues shall be used for no other purpose. B. The revenues collected pursuant to this Ordinance are reasonably related to, and will not exceed, the cost of the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District's existing facilities, fund necessary reserves, and retire debt incurred to finance such activities over a reasonable period of time. C. The amount charged to each parcel pursuant to this Ordinance does not exceed the proportional cost of the service attributable to the parcel. D. The financial requirements of the District as reflected in the Master Plan and other documents, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facility needs are expected to be realized in each year as described in the reports. E. The successful operation, maintenance, replacement, and improvement of the District's existing facilities is necessary to protect public health, safety, and the environment. F. The Sewer Service Charges adopted herein will not result in an expansion of facilities to accommodate growth within or outside the existing service area. The adoption of these Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. G. This Ordinance is statutorily exempt from review under the California Environmental Quality Act pursuant to Section 21080(b)(8)of the Public Resources Code, because the Sewer Service Charges will be used (i)for operating expenses, (ii) for the purchase or lease of supplies, equipment, or materials, (iii)to meet financial reserve needs and requirements, and (iv)to obtain OCSD-49-3 funds for capital projects necessary to maintain service within existing service areas. H. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. ARTICLE II SEWER SERVICE CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sewer Service Charges to be paid by property owners for the services and facilities furnished by the District. The revenues collected pursuant to this Ordinance shall be used to finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District's existing facilities,fund necessary reserves, and retire debt incurred to finance such activities. Section 2.02. Annual Sewer Service Charge. Commencing with the effective date of this Ordinance, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use and which, at the request of the owner or the owner's predecessor-in-interest, is connected to the District's sewerage system, shall pay an annual Sewer Service Charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, below, and incorporated by reference herein. The annual Sewer Service Charges for residential users are set forth in Table A. The applicable single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the annual Sewer Service Charge rate per 1,000 square feet or per unit. The annual Sewer Service Charges are dependent upon the respective classifications of property use, determined by reference to Table B. Section 2.03. Exemptions, Rebates, Refunds and Reduced Charges A. Exemptions. It is the intent of the District that the legal owner(s) of parcels of real property, otherwise subject to the levy and payment of the Sewer Service Charges, as prescribed herein, be relieved, in whole or in part, from the payment of said charges, in certain circumstances and under conditions prescribed herein, and be entitled to either a water efficiency rebate, reduced charge, or a refund with respect to charges paid, as more specifically set forth in Subparagraphs 2.03B and 2.03C below, provided an inequity is established or a billing error is proven, as specified in Subparagraphs 2.03B or 2.03C. B. Application for Water Efficiency Rebate or Reduced Charge. (1) A "water efficiency rebate" is the difference between the original flow portion of the service charge paid by a OCSD-49-4 property owner and the recalculated flow portion of the service charge for the property based on past water use as provided herein. (2) A "reduced charge" is a lower sewer service charge imposed for the current fiscal year or a future fiscal year for the flow portion of the service charge based on water consumption as provided herein. (3) "Biochemical Oxygen Demand" (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a wastewater sample. It is used as a measurement of the readily decomposable organic content of wastewater. (4) "Suspended Solids" (SS) shall mean any insoluble material contained as a component of wastewater and capable of separation from the liquid portion of said wastewater by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. (5) Any property owner, or legally recognized authorized representative of the property owner, may apply to the District for a water efficiency rebate or reduced charge by establishing that an inequity exists between the amount of the charge paid and the amount of wastewater discharged to the District's system. Proof satisfactory to the General Manager of the District, or his/her designee, shall establish that either: (a) The principal water use is agricultural or horticultural; or (b) The property is devoted to any other use wherein the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. (6) Satisfactory proof shall include, but not be limited to, verifiable documentation showing actual water usage for each billing cycle during the entire period for which the rebate is sought. (7) The amount of any water efficiency rebate shall not reduce the charge payable by any property owner, whose property is connected to the District's system,to OCSD-49-5 less than the single family residential charge shown on the applicable Table attached hereto. (S) Once a water efficiency rebate or reduced charge to a service charge is granted, additional rebates or reduced charges will not be granted in the same year unless the property was vacant for the entire year. (9) If a property owner submits a claim for a water efficiency rebate and also believes that an inequity exists in the BOD and SS components of the sewer service charge, the property owner may contact the District for sampling procedures to submit verifiable BOD and SS data to have these charges reviewed. The District may, in its sole discretion, grant an exemption upon finding satisfactory evidence that the BOD and SS of the property's wastewater discharge is significantly less on a regular basis than the amounts that would normally be expected to be discharged by the class of property in question. C. Application for Refund. (1) A"refund" is the difference between the original service charge paid by a property owner and the corrected service charge when the original charge was billed erroneously. (2) Any property owner, or legally recognized authorized representative of the property owner, may apply to the District for a refund of Sewer Service Charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount paid. The applicant for a refund must submit proof satisfactory to the General Manager of the District, or his/her designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (a) The owners parcel of property is not connected to the District's system; or (b) The property has not been classified in the proper property use classification code; or (c) A clerical error has been made. D. Limitations Period. OCSD-49-6 (1) Applications for water efficiency rebates and reduced charges shall be deemed a claim and be governed by the provisions of California Government Code Sections 935 et seq. Water efficiency rebates are only available for the most recently ended fiscal year and shall be presented to the District as provided in the Government Tort Claims Act, Government Code Sections 915 at seq., Reduced charge claims are available for the current fiscal year or future fiscal years. The claim for water efficiency rebate or reduced charge may only be made with respect to amounts paid or payable under such property tax bill. A claim for water efficiency rebate or reduced charge is not deemed a claim for refund, and California Revenue & Taxation Code Sections 5096 and 5097 are not applicable. (2) Applications for refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097. (3) Consistent with Section 2.04, a "year" for purposes of this Section 2.03 commences on July 1 for all annual Sewer Service Charges, based on the District's fiscal year. E. Determination. All applications for water efficiency rebates, reduced charges or refunds of the Sewer Service Charge will be determined by the General Manager of the District, or his/her designee, who, based on the submitted proof, may grant a full or partial rebate, reduced charge or refund. F. Administrative Fee. At the time of filing the application for a water efficiency rebate, reduced charge or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund. G. Duration of Reduced Charge. A reduced charge will remain in effect for one fiscal year, subject to the provisions below: (1) Standard 3 Year Lock-In. Upon submission of two consecutive fiscal years of verifiable water data that resulted in a rebate or reduced charge,the District shall determine the average annual consumption based upon those two years and implement a locked-in reduced charge for a standard period of three years. (2) Renewals. At the end of the lock-in period, the owner of the parcel may apply for a renewal by submitting OCSD-49-7 verifiable water consumption data for the previous two years. (3) Failure to Submit. Failure to submit the required water consumption data with lock-in renewal application is equivalent to making an election to opt-out pursuant to Section 2.03, Article II, G4. (4) Lock-In Opt-Out. At the time the owner of a parcel qualifies for a three-year lock-in pursuant to Section 2.03, Article II, G1, whether as a first time application for rebate or reduced charge, as a renewal pursuant to Section 2.03, Article II, G2, or upon two annual submittals of the most recent fiscal year of verifiable water consumption records, the owner may elect in writing to opt-out of the lock-in and instead elect year to year renewals and submit verifiable water consumption records annually. (5) Significant Change in Business Operation- Demonstration. If the owner of a locked-in parcel is able to demonstrate that a significant change in business operation has occurred, verifiable water consumption may be submitted for the most recently ended fiscal year to be used in a recalculation of the fee with a duration of one year until two consecutive fiscal years of water consumption have been submitted and then the standard lock-in will apply. (6) Audit. If the District becomes aware that a lock-in parcel has had a significant change in business operation that increases water consumption, the District may request current verifiable water consumption records for the most recently ended fiscal year and re-establish the reduced charge prior to the expiration of the three-year period. H. Penalty. The falsification of an application for a water efficiency rebate or reduced charge is a misdemeanor, punishable as provided by the law. In addition, any person who falsifies an application for a water efficiency rebate or reduced charge shall be civilly liable to the District in the maximum sum provided by law. Section 2.04. Annual Charge Based on Fiscal Year. The Sewer Service Charges established by this Ordinance shall be effective as of July 1 of each year, as set forth in Tables A and B, attached hereto, for the District's fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in any fiscal year. OCSD-49-8 Section 2.05. Method of Collection. A. Pursuant to the authority granted by California Health & Safety Code Sections 4766 and 5473, and except as otherwise provided in Subparagraph 2.05B below, all Sewer Service Charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner (or person who paid the tax) has underpaid annual Sewer Service Charges payable to District, District, within four(4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 2.06. Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD-51, as amended, in an amount equal to the annual Sewer Service Charge established by Section 2.02 of this Ordinance. Section 2.07. Open-Air Facilities. Sewer Service Charges for open-air facilities will be based on annual attendance records. Open-Air facilities will pay a rate per million gallons based upon the related sewage flow, Biochemical Oxygen Demand ("BOD") and Suspended Solids ("SS') charge for single family residences. The usage per attendee will be 15 gallons. OCSD-49-9 TABLE A ANNUAL SEWER SERVICE CHARGES RESIDENTIAL USERS FISCAL YEAR 2018-19 2019-20 2020-21 2021-22 2022-23 SFR* $335.00 $339.00 $343.00 $347.00 $351.00 MFR $234.50 $237.30 $240.10 $242.90 $245.70 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL * The SFR fee is the minimum sewer service charge any user must pay. All properties located within Revenue Area No. 14 pay no annual sewer service charges. District costs relating to providing service to these properties are billed by the District directly to the Irvine Ranch Water District, the local agency providing the local sewer service. OCSD-49-10 TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 "Hold" Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption Add'l. 0% 666 Unassigned Vacant 0% 777 Septic Tank Property 0% 112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries (Plants) 10% 100 Drive-In Theater 10% 44 Lumber/Constr. Material Yard 17% 71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse — Single Tenant 17% 111 Warehouse — Multi Tenant 17% 115 Recreational Vehicle Storage 17% 116 Truck Terminal 17% 33 Church Buildings 20% 94 Department Store 23% 95 Discount Store 23% 96 Unattached Single Store 23% 97 Strip Store 23% 74 Recreational Vehicle Park 27% 36 Financial Buildings 27% 40 Health Club 29% 68 High Rise Office 30% 225 United States Post Office 35% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41% 24 Used Car Lot 41% 39 Golf Course 41% 57 Motorcycle/Small Vehicle Building 41% 83 Automotive Service Station 41% OCSD-49-11 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF 84 Marine Service Station 41% 86 Combin.-Service Station/Convenience 41% 65 Single Office Bldgs. to 3 Stories 41% 66 Small Office Center 41% 67 Office Complex 41% 69 Converted Residence to Office 41% 7 Mobile Home 50% 55 Mobile Home Park 50% 107 Light Industrial — Single Tenant 50% 108 Light Industrial — Multi Tenant 50% 109 Research and Development 50% 114 Industrial Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% 26 Airport and Related Buildings 53% 45 Marinas 53% 88 Low Flow Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70% 12 04-Units Only 70% 13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26 to 40 Units Only 70% 16 41-99 Units Only 70% 17 100 or More Units 70% 18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 56 Low Demand Hotel/Motel 70% 81 Pre-Schools, Nursery or Care 82% 82 Private Schools 82% 98 Store with Offices or Living Quarter 82% 99 Store with Office Upstairs 82% 118 Governmental Use Vacant/Develop. 82% 19 SFR with 1 or 2 rental units 85% 34 Dormitory 97% 42 Hospital 97% 43 High Demand Hotel/Motel 97% 0 Conversion-C/1, Rural PC 100% 2 One Residence 100% OCSD-49-12 TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Assessor Use Code Percentage of SFR or Unit Description Per 1,000 SF 4 Miscellaneous Improvement 100% 85 Comb. Serv. Stn./Restaurant 100% 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100% 106 Factory 100% 119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery & Related Buildings 101% 38 Funeral Home 101% 60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112% 92 Skating Rinks 112% 50 Single Medical Bldgs. to 3 Stories 124% 51 Small Medical Center 124% 52 Medical Center Complex 124% 53 High Rise Medical 124% 54 Converted Residence to Medical 124% 89 Average Flow Center 139% 20 Amusement Parks 144% 35 Entertainment Center 144% 73 Recreation 144% 30 Coin Operated Car Wash 151% 47 Supermarket 151% 48 Convenience Market 151% 224 Nightclub 200% 90 High Flow Center 226% 76 Restaurant— Low Demand 300% 77 Restaurant—Coffee Shop 600% 78 Restaurant— Dinner House 600% 79 Restaurant—Conversion from SF 600% 29 Conventional Car Wash 796% 223 Laundromat 1,800% NOTE: Multiply the Table A Single Family Residential Rate by the percentage figure above in order to determine the rate per 1,000 square feet for the commercial or industrial user. OCSD-49-13 ARTICLE III MISCELLANEOUS Section 3.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to (i) the provisions of the District's Wastewater Discharge Regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto; (ii) District's ordinance establishing Fees Concerning Annexations of Territory to the District; (III) District's ordinance establishing Local Sewer Service Fees, where applicable, and (iii) any other District Ordinances and Resolutions not in conflict herewith. Section 3.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 3.03. Out of Area Sewer Service Agreements. Pursuant to Health and Safety Code Section 4742.1, the District is empowered to contract for the handling, treatment or disposal by the district of sewage or industrial wastes originating within the district or county or within areas outside of the district or county when, in the judgment of the District Board, it is for the best interest of the district to do so. In exercise of such power, the District may, from time to time, enter into Out-of-Area Sewer Service Agreements. These Out-of- Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: SECTION II. Severabilitv. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018. SECTION IV. Repeal. Ordinance No. OCSD-41 and Ordinance No. OCSD-46 are repealed in their entirety effective June 30, 2018. SECTION V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. OCSD-49-14 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018. Gregory C. Seboum, PLS Chairman, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District APPROVED AS TO FORM: Bradley R. Hogin General Counsel Orange County Sanitation District OCSD-49-15 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-49 was introduced for first reading at a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, 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 28th day of March, 2018. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District OCSD-49-16 RESOLUTION NO. OCSD 18-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT DIRECTING THE COUNTY TAX COLLECTOR- TREASURER TO INCLUDE REGIONAL SANITARY SEWER SERVICE CHARGES ON THE TAX ROLL FOR FISCAL YEARS 2018-2019 THROUGH 2O22-2023. The Board of Directors of the Orange County Sanitation District ("District") does hereby find: WHEREAS, On March 28, 2018, the Board of Directors adopted Ordinance No. OCSD49, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Regional Sewer Service Charges and Repealing Ordinance No. OCSD-41 and Ordinance OCSD-46; WHEREAS, by adoption of Ordinance No. OCSD49, the Board of Directors elected to adopt, impose, and collect rates and charges for regional sewer services provided by the District and correspondingly established procedures related thereto; WHEREAS, California Health & Safety Code section 5473 provides that such charges, as adopted by District Ordinance No. OCSD-49, may be collected on the County tax roll in the same manner, by the same persons, and at the same time as, together with, and not separate from, its general taxes; WHEREAS, the charges established by Ordinance No. OCSD49 are no more than necessary to cover the reasonable costs of the wastewater collection, treatment, and disposal services and facilities provided by the District; the revenues received are not used for any other purpose; and the manner in which the costs are allocated to each payor bears a fair and reasonable relationship to the payor's burdens on, and benefits received from, the District's system; and WHEREAS, the District provided notice as required by Health and Safety Code section 5473.1, and held a public hearing on March 28, 2018, at which time the Board received and considered all comments and protests related to the collection of the fees on the tax roll. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: That the rates and charges set forth in Ordinance No. OCSD- 49 are affirmed herein by the Board of Directors, as consistent with the findings OCSD 18-03-1 1300]01.1 hereinabove stated, for Fiscal Years 2018-2019 through 2022-2023, in the following amounts: Annual Sewer Service Charges Residential Users FISCAL YEAR 2018-19 2019-20 2020-21 2021-22 2022-23 SFR $335.00 $339.00 $343.00 $347.00 $351.00 MFR $234.50 $237.30 $240.10 $242.90 $245.70 SFR = Single Family Residential MFR = Multi-Family Residential All properties located within Revenue Area 14 pay no annual sewer service charges. District costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service. Section 2: That pursuant to California Health & Safety Code Section 5473, the Board hereby elects and directs the County Tax Collector-Treasurer to include regional sanitary sewer service charges, as adopted by Ordinance No. OCSD-49, on the tax roll, in the same manner, by the same persons and at the same time as, together with, and not separately from, the general taxes; and that such regional sanitary sewer service charges be included in the annual property tax bills for Fiscal Years 2018-2019 through 2022-2023. Section 3: That pursuant to California Health & Safety Code Section 5473, this Resolution shall remain in full force and effect until amended or repealed, or until such time as the rates of sanitary sewer service charges, as established by Ordinance No. OCSD-49, are changed by increasing the annual rate. Section 4: That the General Manager, or his designee, be, and is hereby authorized and directed, to execute any necessary documents or agreements to affect the order set forth in Section 2 herein. Section 5: That the provisions of any Resolution(s) previously adopted by the Orange County Sanitation District that are in direct conflict with the provisions of this Resolution No. OCSD 18-03 are hereby superseded. OCSD 13-03-2 1300]01.1 Section 6. That the General Manager, or his designee, is hereby authorized to forward a copy of this Resolution to the Orange County Tax Collector-Treasurer. PASSED AND ADOPTED at a regular meeting of the Orange County Sanitation District Board of Directors held March 28, 2018. Gregory C. Seboum, PLS Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin General Counsel OCSD 18-03-3 1300901.1 STATE OF CALIFORNIA ) as COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 18- 03 was passed and adopted at a regular meeting of said Board on the 2P day of March, 2018, 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 2811 day of March, 2018. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 18-03-4 1300]01.1 ORANGE COUNTY SANITATION DISTRICT Memorandum January 24, 2018 TO: Members of the Steering Committee FROM: James D. Herberg, General Manager SUBJECT: Cost Savings Measures As the Board of Directors prepares to consider a new rate program in 2018, 1 want to share with you some of the many cost saving measures implemented during the past five years. Our ratepayers want to know they are getting a good return on their investment and that we are spending their fees to produce substantial benefits. In an effort to reduce costs, our employees are always looking for innovative ways to be more resourceful and efficient while ensuring we maintain our high standard of customer service. The following list is a sample of some cost saving measures that support our overarching goal to contain costs and limit long-term liabilities to the Orange County Sanitation District (Sanitation District). FINANCIAL MANAGEMENT • Beginning in 2014, the Sanitation District issued four debt financing refunding obligations that generated a total of $67 million in net present value savings due to the lower interest rate environment. • After issuing a request for proposal of custodian banking and investment management services, we have retained new firms with an annual cost savings of $667,000. • Since paying off the Sanitation District's Unfunded Actuarial Accrued Liability (Pension)over three years, the employer premium retirement contribution rate has decreased 72 percent since FY 2014-15. • Transitioning to an insurance risk pool with California State Association of Counties resulted in a $700,000 cost savings in comparison to the open market. • We continue to maintain a AAA bond rating. ENVIRONMENTAL SERVICES • After 12 years of certification, the Sanitation District became a Platinum Plus Graduate of the National Biosolids Partnership certification program and began the transition to our own internal set of performance standards for our Biosolids Program. This created an annual cost savings of$200,000. • After ten years of disinfecting our ocean discharge, we worked with State and Federal regulators to cease the disinfection process, yielding an annual savings of $600,000 in chemical costs, while improving the health of marine life near the Sanitation District's ocean outfall. WORKFORCE OPTIMIZATION • While increasing our level of treatment to meet full secondary standards, and operating and maintaining nearly $600 million in new facilities, the Sanitation District's total authorized full-time equivalent (FTE) staffing level has decreased over the past ten years from 641 FTE in 2008-09 to 637 in 2017-18. • The Sanitation District built partnerships with local colleges to develop a Vocational Internship Program to build a pipeline of potential entry-level candidates. • To further ensure we have the right people with the right skills and abilities, we improved our recruitment process, speeding-up the time-to-fill for a vacant position and reducing the need for temporary staff and overtime. • We implemented a new performance based compensation system for Executive Management and Managers based on established goals and objectives. • We outsourced our Rideshare Program to include more accessible commute options, while increasing the average vehicle ridership and reducing air emissions. • The Incentives for Sanitation District Employee Achievement (IDEA) program provides a way for employees to submit innovative cost saving ideas that improve procedures,working conditions and work methods. The program has brought forth ideas from employees that have created over $2 million in annual savings. • Through our Building Leadership Abilities and Skills for Tomorrow (BLAST) program, we are preparing journey-level staff to take on future leadership positions, ensuring a bench of competent staff to run the Sanitation District in the future. • We are providing training — specific for first-year supervisors and staff who aspire to become supervisors — coaching and mentoring opportunities, job shadowing, professional and vocational internships, and tuition reimbursement to further ensure we have the right person, at the right time, in the right job. OPERATIONS AND MAINTENANCE • Optimization studies resulted in re-negotiation of the grit and screenings contract, cooling CenGen engines with plant water, reducing Ferric Chloride for digesters and overall peroxide usage, resulting in a cost savings of$2 million per year. • The move to full secondary treatment at the Plant No. 2 treatment facility yielded cost savings in liquid oxygen plant operations, bleach and bisulfate costs in the amount of$1 million per year. • A comprehensive energy audit found that we can save an estimated $700,000 annual savings in lighting costs within nine years. Page 2 • Implementation of cutting-edge catalytic converter technology helped to reduce emissions from the central generation engines which allowed all eight engines to operate simultaneously, creating an annual cost savings of$700,000 per year. ENGINEERING • We are nearing completion of sludge dewatering projects which will result in four less truckloads of biosolids per day yielding an ongoing savings of$3.7 million per year. • We received grant funds for several projects, reducing the cost of these projects by nearly $2.5 million: o Sludge Dewatering and Odor Control at Plant No. 1 ($1 million) o Newhope-Placentia Trunk Replacement ($1 million) o WaterSMART Grant to share with the Orange County Water District ($450,000) PLANNING FOR THE FUTURE • I am recommending organizational changes to the Steering Committee that will streamline our Executive Management Team and increase our focus on the rehabilitation and maintenance of our infrastructure, while better positioning our agency for leadership succession. Page 3 CORRESPONDENCE RECEIVED AS OF March 21 , 2018 In response to PROPOSITION 218 NOTIFICATION Correspondence Received as of 03/21/18 10:00 a.m. Property Specific city Parcel Support Protest Opposed Question Other Anaheim WA 1 Brea 320-213-32 1 Brea 336-213-11 1 Brea 939-967-09 1 Costa Mesa 419-031-07 1 Costa Mesa 419-031-08 1 Costa Mesa 419-031-09 1 Costa Mesa 419-031-10 1 Costa Mesa 419-031-11 1 Costa Mesa 419-031-12 1 Costa Mesa 422-071-12 1 Costa Mesa 422-071-13 1 Costa Mesa 422-071-14 1 Costa Mesa 422-071-15 1 Costa Mesa 141-554-04 1 Fountain Valle 143493-27 1 Fountain Valley 143353-04 1 Fountain Valley WA 1 Fullerton 339-244-35 1 Fullerton WA 1 Fullerton WA 1 Fullerton 293-112-13 1 Garden Grove 090-262-09 1 Garden Grove 090-5N 04 1 Garden Grove 130-206-12 1 Garden Grove 130592-02 1 Garden Grove 130-613-01 1 Garden Grove 130-732-06 1 Garden Grove 130-841-07 1 Garden Grove 217-284-02 1 Garden Grove 233-022-17 1 Garden Grove N/A 1 Huntin ton Beach 023-03130 1 Huntington Beach 023-505-04 1 Huntington Beach 024-025-33 1 Huntington Beach 025-085-18 1 Huntington Beach 110-334-09 1 Huntington Beach 114494-13 1 Huntington Beach 114494-14 1 Huntington Beach 145-041-24 1 Huntington Beach 146-091-01 1 Huntington Beach 146-201-54 1 Huntington Beach 146-271-16 1 Huntington Beach 14645333 1 Huntin ton Beach 146.531-09 1 Huntington Beach 149-094-14 1 Huntington Beach 151-062-35 1 1 Huntington Beach 151-182-05 1 1 Correspondence Received as of 0 3/2111 8 1 0:00 a.m. Property Specific city Parcel Support Protest Opposed Question Other Huntington Beach 151-314-09 1 Huntington Beach 151-563-13 1 Huntington Beach 159-042-10 1 Huntington Beach 159-042-11 1 Huntington Beach 159-083-14 1 Huntington Beach 165-042-19 1 Huntington Beach 165-101-23 1 Huntington Beach 165-141.43 1 Huntington Beach 195-223-16 1 Huntington Beach 933-874-23 1 Huntington Beach 933-874-78 1 Huntington Beach 936-175-87 1 Huntington Beach 937-150-47 1 Huntington Beach 937-152-17 1 Huntin ton Beach 938-311-59 1 Huntin ton Beach I N/A 1 Huntington Beach I N/A 1 Huntington Beach I N/A 1 Huntin ton Beach I N/A 1 Huntin ton Beach N/A 1 Huntington Beach N/A 1 La Habra 395-252-52 1 N/A N/A 1 N/A N/A 1 N/A N/A 1 N/A N/A 1 N/A N/A 1 N/A N/A 1 N/A 032-222.26 1 Newport Beach 117-392.21 1 Newport Beach 934-057-36 1 Newport Beach 934-057-37 1 Newport Beach 934-057-38 1 Newport Beach 934-057-39 1 Newport Beach 934-057-40 1 Newport Beach 934-057-41 1 Newport Beach 934-057-42 1 Newport Beach 934-05743 1 Newport Beach 934-057-44 1 Newport Beach 934-057-45 1 Newport Beach 934-057-46 1 Newport Beach 934-057-47 1 Santa Ana 108-371-05 1 Seal Beach 199-076-04 1 Seal Beach 199-152-01 1 Santa Ana 408-443-10 i1 Santa Ana 412-241-01 1 Correspondence Received as of 03/21/18 10:00 a.m. Property Specific city Parcel Support Protest Opposed Question Other Santa Ana 503-152-05 1 Santa Ana 890-630-49 1 Seal Beach 936-292-43 1 Santa Ana N/A 1 Tustin N/A 1 Tustin Various 1 Westminster 107-201-16 1 1 1 Westminster 145-272-19 1 Westminster 108-022-27 1 Yorba Linda N/A 1 Yorba Linda 322-171-29 1 Yorba Linda 932-480-79 1 1 80 19 4 3 24 Phone calls-2 Support, 1 Oppose, Remaining calls were property specific questions Brandt, Angela From: Jim Benet �> Sent: Monday, February 12,2018 5:09 PM To: Rates Subject EXTERNAL: Rate Increase I support the rate increase as outlined by the OCSD-recent mailer that I received on 2M2t2018. Of course, no one really wants to see their rates increase, but this proposed increase is very modest. It amounts to less than 1.2 percent per year. That does not even cover the cost of inflation. Moreover, the monthly service is very low to begin with; less than $28 per month. Even with the proposed increase the monthly rate would still be under$30 per month. That fee is very low. My house value has gone up significantly more than the percentage increase that the OCSD is proposing. I therefore support the increase. James Banat 5285 Manor Yew Dr Yorba Linda, CA 92886 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t yt. Brandt, Angela From: Lore,Kelly Sent: Thursday, March 8, 2018 6:05 AM To: Brandt,Angela r Cc: Knapp,Tina Subject: FW: EXTERNAL Stop the Sewer Scam Angela, Please add this letter to your count Thanks "^ Kelly Lore, MMC Clerk of the Board --i7 Orange County Sanitation District Offim 714.59374331 Cell:714.587.81971 Far.714.962.0356 1 w .ocsctrom III F1 From:Victor KTFkgyarto[mailto Sent:Thursday, March 8,2018 6:04 AM To:Lore, Kelly<KLore@OCSD.COM> Subject:EXTERNAL:Stop the Sewer Scam OCSD: Stop the Sewer Scam I I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips,big screen TVs and Disneyland ticketsl Stop the Sewer Scam I Regards, Victor Kerekgyarto 2863 W Bridgeport Ave Anaheim,CA 92804 t �'la�1>ti1 Brandt, Angela From: Douglas K Sent: Monday, March 19,2018 9:13 AM To: Rates Cc: Douglas K;Jocelyn Kersh Subject: EXTERNAL: Protesting OCSD Fee Increase APN93996709 We are Protesting the rate increase as there are enough funds to pay projected service costs. Another fee increase will not provide improved services but will encumber rate payers with higher taxes. From: Douglas and Jocelyn Kersh 3333 Granada Circle Brea CA 92823 APN 93996709 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. 1 SYLVIA SAHAGIAN 2698 Woodacre Street Brea, CA 92821-4733 February 18,2018 OCSD 10844 Ellis Avenue Fountain Valley,CA 92708 Re: Owner of Record of APN 32021332 Proposed Fee/Notice of Public Hearing Wednesday,March 28,2018 I PROTEST THE PROPOSED FEES. I]mow you're going to raise fees anyway Vey yyours, Sylvia Sehagian ends. C-v �aa, avi 1t Ro Silverman 31 Ws Riendos Dr. ^ WUe+mn,CA 4FB3S-13�1306 Brandt, Angela From: Gray Enterprises Sent: Thursday, February 22,2018 4:19 PM To: Rates Subject: EXTERNAL:STATEMENT OF PROTEST I am John Hundley, Managing General Partner for the Gray Enterprises, L.P. and the Stovall Family Partnership for the shopping center located at 2200 Harbor Blvd., Costa Mesa, CA 92627 APN #'s: 419-031-07; 419-031-08; 419-031-09; 419-031-10; 419-031-11; 419-031- 12 We strongly protest your proposed fees. They are already too high as it is now. - John R. Hundley, Sr. t ��� Brandt, Angela From: Julie Savant Sent: Tuesday, February 27, 2018 2:59 PM To: Rates Subject: EXTERNAL:Protest of Proposed Fees Re Parcel No:422-071-12 Property Owner: Solteros Apartments LP Property Address: 2205 Canyon Dr;Costa Mesa I protest the increase of water and sewer rates.The rate Increase will push rental rates higher.The OCSD already has at least one assessment per property on the tax bill for infrastructure, listed as OCSD SEWER USER FEE. Further pushing up costs will make Costa Mesa even less affordable.Given this information a rate increase is inappropriate and I am protesting a rate Increase for these reasons. Sincerely, Katherine Johansen Property Owner t C Brandt, Angela From: Julie Savant Sent: Tuesday, February 27,2018 3:00 PM To: Rates Subject: EXTERNAL:Protest of Proposed Fees Re Parcel No: 422-071-13 Property Owner: Solteros Apartments LP Property Address: 2207 Canyon Dr; Costa Mesa I protest the increase of water and sewer rates.The rate increase will push rental rates higher.The OCSD already has at least one assessment per property on the tax bill for infrastructure, listed as OCSD SEWER USER FEE. Further pushing up costs will make Costa Mesa even less affordable.Given this information a rate Increase is Inappropriate and 1 am protesting a rate Increase for these reasons. Sincerely, Katherine Johansen Property Owner i h CI �n Brandt, Angela From: Julie Savant Sent: Tuesday, February 27,2018 8:01 PM To: Rates Subject: EXTERNAL Protest of Proposed Fees - Re Parcel No:422-071-14 Property Owner: Solteros Apartments LP Property Address: 22 Canyon Dr; Costa Mesa - I protest the increase of water and sewer rates.The rate increase will push rental rates higher.The OCSD already has at least one assessment per property on the tax bill for infrastructure, listed as OCSD SEWER USER FEE. Further pushing up costs will make Costa Mesa even less affordable.Given this Information a rate increase is inappropriate and I am protesting a rate increase for these reasons. Sincerely, Katherine Johansen Property Owner 1 cm Brandt, Angela From: Julie Savant Sent: Tuesday, February 27,2018 3:02 PM To: Rates Subject: EXTERNAL:Protest of Proposed Fees Re Parcel No:422-071-15 Property Owner: Solteros Apartments LP Property Address: 2215 Canyon Dr;Costa Mesa I protest the Increase of water and sewer rates.The rate increase will push rental rates higher.The OCSD already has at least one assessment per property on the tax bill for Infrastructure, listed as OCSD SEWER USER FEE. Further pushing up costs will make Costa Mesa even less affordable.Given this Information a rate Increase is inappropriate and I am protesting a rate Increase for these reasons. Sincerely, Katherine Johansen Property Owner 1 C� 00, n RETURN SERVICE PRESORTED ,,gyp VESTED FIRST-CLASS Q OCSD e ypg, t ��Q U.S.POSTAGE by Mf 1- a " • :. 9 PAID SANTA ANA,CA 10844 Ellis Ave ���BFE921 Ap 6 48 PERMIT NO.1464 Fountain Valley,CA 9 7D8, p..;4 E=D v5�€: Beverly J Tr B J Morgan Living Tr Morgan F Este material esta 957 Presidio Dr dispmble en r a Costa Mesa, CA 92626-5609 Ih9pb ht Iph^^Rq Il,plhlnpul„Indlp llnl' q I v NOTICE OF PUBLIC HEARING * , Wednesday, March 28, 2018 9 6 p.m. 10844 Ellis Avenue, Fountain Valley, CA 92798 \a We protect public 1the environmentI • Helping to ensure our beaches are safe. V u • Supplying 100 million gallons per day of treated water for recycling. I� • Recycling 800 tons per day of solids from = _ wastewater and creating soil amendment and compost. • Producing over 60 percent of electricity to Power our treatment facilities. • Maintaining our infrastructure — guaranteeing reliability of our pipelines and treatment systems — preventing sewer spills and beach closures. All while being fiscally responsible and keeping your rates below the industry average. 9' To learn more about OCSD visit.www.oesd.corn QUESTIONS & ANSWERS Now do I Protest the Proposed Fees? A public hearing.will be held at6 p.m.in the OCSD Board Room, 10844.Ellis Avenue, Fountain Valley, California.Any property owner within the sewer service area may protestthe proposed fee at the public hearing or may file.a written protest by sending a letter to OCSD, 10844 Ellis- Avenue,Fountain Valley,CA 92708 or an email to ratesOoesd.com.A valid protest letter or email must include your name the parcel number< at which you receive sewer service from OCSD and a statement of protest.The letter or.email must be received prior to or during the public.. hearing on March 28,201 B. p; I already nav a sewer fee on another hill. Is this a doolicate sewer chorus? Brandt, Angela From: T KELEHER Sent Saturday, February 10, 2018 1:11 PM To: Rates Subject: EXTERNAL:Oppose The Proposed Fee Increase Parcel# 143-493-27 Thomas & Fredda Keleher , 16346 Sycamore St. Fountain Valley, Ca. 92708. PARCEL # 143-493- 27. We oppose the proposed fee. Sent from my iPhone This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hypedinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. 1 Brandt, Angela From: Malone,Javitta Sent: Wednesday, February 21,2018 7:12 AM To: Rates Subject: FW:Notice of Public Hearing Protest From:Webmaster OCSD[mailto:webmaster@ocsd.com] Sent:Tuesday,February 20,2018 9:17 PM To: Malone,Javitta<JMalone@OCSD.COM> Subject: Notice of Public Hearing Protest Message submitted from the<Orange County Sanitation District>website. Site Visitor Name:Marilyn Reyes Site Visitor Email: In response to Proposed Fees,I object to an increase. My parcel number 143-353-04 Please forward to appropriate department.Letter received just states to e-mail or send a letter, but does not give an exact address just i atcs,D,.i_a urn. Thank you. 1 1 Quynh Huong Nguyen 17802 independence Ln,Fountain Valley,CA 92708,1 TelephoneAlinkINOME-mail: February 13,2018 OCSD Board Room Sewerage System 10844 Ellis Ave Fountain Valley,CA 92708 Dear OCSD Board Room: My name is Quynh Huong Nguyen,I received a letter from your Company regarding the sewerage rate increase In 2018 through 2023. 1 am currently on disability income of$1011.00/monthly. I am currently seeking treatment with Kaiser for my breast lumps and scars for both breasts and 1 am also following on my rectal cancer symptom due to my eating problems in2015 until now. I could not eat any meats and was on vegetarian for 2 and a haftyear until I am exhausted. I am try to eatvery little turkey now. My monthly budged is very limited sow the rest of the residents. Most of us are retired or on disability. would like to against this proposal for my own property. Sincerely, Quynh Huong Nguyen OCPL Patron �v JUDITH A.KALUZNY Mediator&Lawyer February 13,2018 Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708 re:APN 03222226 Greetings: Please note: the above-referenced property has no structures whatsoever,much less a sewer. It is an easement. I pay property taxes ofjust $107 per year on this easement. See also the enclosed copy of the notice you sent regarding this parcel. Please remove this APN from you considerations of a rate increase. You note present rate at $0,which should remain the rate. There is no building,no sewer. i l�A.KALUZNY enclosure •xrww'.t�. ra..� arm. aw �wwr �IIU�. PHILLIP E. SILVERMAN 620 SOUTH EUCLID STREET ANAHEIM, CALIFORNIA 92802 TELEPHONE # FAX # February 21, 2018 OCSD 10899 Ellis Avenue Fountain Valley, California 92708, RE: ARROUES, FULLERTON, CA 92305 Gentlepersons: In reference to your Notice of Public Hearing, let this letter serve as my objection to your request to raise rates. It is interesting that your memo says that due to "efficient operations and size, OCSD sewer service.." and then in the next line you want to raise your rates, seems to be contradictory. I therefore want to go on record to objecting to any raise in the rates. Thank you for your attention in this regard. - uly Yours, LL E. SILVERMAN _ PES/mk Brandt, Angela From: Forinfonnation Sent: Tuesday, February 13,201810:23 AM To: Don Waterbury Cc: Rates Subject: RE: EXTERNAL regarding address name for notice of Public Hearing and another question Thank you for your email. I have copied our staff that is aking the calls and emails for the rate line.They should be able to assist. Jennifer M.Cabral,MPA Orange County Sanitation District Public Affairs Office I Public Affairs Supervisoi _ Office:714.593.75811 Cell:714.803.1905 I From:Don Waterbury[mailto Sent:Monday, February 12,2018 5:28 PM To: Forinformation<Forinfonnation@OCSD.COM> Subject: EXTERNAL:regarding addressee name for notic e of Public Hearing and another question I just received the Notice of the Public Hearing for March 28,2018 regarding proposed service fees. Thank you for the notice. I believe I have the answer for my first question,that is the notice was sent to"Donald M.Tr Living Tr Waterbury". My home is covered by my living trust,that is,Donald Wate rbury Living Trust. Hence,the addressee appeared as it was written on the notice. Maybe the records of the OCSD might want to reflect the proper name of the living trust. lam not aware of the legalities of such. This maybe inciden I since the notice was received by me. I do pay the OCSD Sewer User Fee through my OC prop rty tax bill. I live in an association, Foothill Village Townhouses of Ft Ilerton for what it is worth. The association pays the water bill which I indirectly pay for through the monthly associalk n fee. Thank you for your attention and assistance, Don 1 Brandt, Angela From: Don Hugar�> Sent: Friday, February 9,2018 1:57 PM To: Lore, Kelly Subject: EXTERNAL Stop the Sewer Scam Follow Up Flag: FollowUp Flag Status: Flagged OCSD: Stop the Sewer Scam I I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services, hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips,big screen TVs and Disneyland ticketsl Stop the Sewer Scaml Regards, Don Hugar 1620 W Valencia Dr Fullerton, CA 92833 t Brandt, Angela From: - Sent: Thursday, February 15,2018 4:53 PM To: Rates Subject: EXTERNAL:Protest proposed fees To whom it may concern: John L Freer Parcel#090-262-09 1 am protesting the proposed fee by the Orange County Sanitation District. Thankyou, John Freer 1 Brandt, Angela From: BRUCE PRINCE 1> Sent: Friday, February 16,2018 9:11 AM To: Rates Cc: BRUCE PRINCE Subject EXTERNAL:Rates Protest Letter To Whom It may concern; This shall serve as our statement of protest regarding the increase of proposed sewer service fees. Property: 11432 Kearney Way, Garden Grove CA 92840 Parcel#: 090-504-04 Owner: Bruce J Prince and Christine R Prince Sincerely, Bruce and Christine Prince t 66 Brandt, Angela From: Sent: Thursday, February 15, 2018*59 PM To: Rates Subject: EXTERNAL Proposed Fees To whom it may concern; John L Freer Lucille I Freer Parcel#130-592-02 We are sending this to protest the proposed fee by the Orange County Sanitation District. John L Freer& Lucille I Freer 1'1 February 14, 2018 Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Parcel: 130-613-01 — at 6122 Richmond Ave. GG 92845 Property Owners: 12312 Blackmer Street Garden Grove, CA 92845 We Protest the water rate increase. Robert E. Taylor Tr (Taylor Family Trust) n � 7� cam- Ij Gretchen M. Taylor (Taylor Family Trust) i February 14, 2018 Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Parcel: 130-732-06 — at 12801 Sylvan St. GG. 92845 Property Owners: 12312 Blackmer Street Garden Grove, CA 92845 We Protest the water rate increase. Robert -EE. Taylor Tr (Taylor Family Trust) Gretchen M. Taylor (Taylor Family Trust) February 14, 2018 Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Parcel: 130-841-07 — at 12312 Blackmer St. GG 92845 Property Owners: 12312 Blackmer Street Garden Grove, CA 92845 We Protest the water rate increase. Robert E. Taylor Tr (Taylor Family Trust) Gretchen M. Taylor (Taylor Family Trust) ,f�r�Glr���i- ��✓ a — � s'—ice 10844 Ellis Avenue Foun?ain Valley, CA 92708 Yung Huai TrH4ang disn5292RichroondAve pal[ a�.n.Lt ,t�aY la p 'le en '' ' Garden Grove,�A 92845-19 t hIn611P.tatpgt�mriq•gtl•ltli MR. A . r1 Kua Lee, J'o 14. NOTICE OF PUBLIC HEARING "'�' . I�WL�� Wednesday, March 28, 2018 • 6 p.m. 10844 Ellis Avenue. Fountain Valley, CA 92708 C2�j �.� CA- - T'a_ _Q8 1 _ - 03 ac:ai Wd s avM ---- -- Wooa vww nsae - - 66 - Brandt, Angela From: Lore,Kelly Sent: Monday, March 12,2018 11:S3 AM To: Brandt,Angela Subject: Fwd:EXTERNAL Stop the Sewer Scam Angela, please add this letterto your rate letters. Thank you. Sent from my Verizon,Samsung Galaxy smanphone —Original message From:David Rodriguez Date:3/12/18 10:47 AM(GMT-08:00) To:"Lore, Kelly"<KLore@OCSD.COM> Subject:EXTERNAL:Stop the Sewer Scam OCSD: Stop the Sewer Scam! I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips, big screen TVs and Disneyland tickets! Stop the Sewer Scam! Regards, David Rodriguez 10141 McMichael Dr Garden Grove,CA 92840 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hypedinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t t� t p A✓ry� i?icr MAST} My ggpss l S 9�7 11Dan* 77foa� Y1Y Mary F Shanor 20092 Crater Circle Huntington Beach, CA 92646 APN1513916 TO:OCSID 10844 Ellis Avenue Fountain Valley, CA 92708 ] am protesting the proposed rate increase by OCSD. I think that the OCSD should offset the proposed rate increase by selling the natural by-products of the sewage as fuel or at least convert it into electric energy to be sold. In addition, we in Fountain Valley and Huntington Beach put up with the smell of the plant in our backyards, as it were. We really shouldn't pay what other towns do for the use of the plant. Sincerely, Brandt, Angela From: Sent: Wednesday, February 28, 2018 8:24 AM To: Rates Subject: EXTERNAL rate protest Paul and Sandra Hayashi 20581 Sandpiper In. Huntington Beach 92646 Parcel#151-314-09 We protest the proposed increase in fees. This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357)for assistance with any questionable email sources, content or requests. 1 1 fA�,,- z1 ur/P — __-_ /�✓/tub, ,/.�iu/iln� F, ra_ -- _- _ C,7 Gf//Lt:ALL 4VA,71ZZSS ,Itm.) dl41zt1ZC No MAIL ROOM 7010 FEB 13 q11 7, 57 12 February 2018 TeresaM. Campbell 19026 Stonehurst Lane Huntington Beach, CA 92648 OSCD 10944 Ellis Avenue Fountain Valley, CA 92708 I RE: Written OCSD Rate Increase Prot t. Dear OCSD Representative; My name is Teresa Al. Campbell I am the owner of APN: 023-505-04; also known as a single-family dwelling addressed: 19026 Stonehurst Lane, Huntington Beach, CA 92648. My statement of Protest: We protest the increase of OCSD sewer service rates. Thanks for your consideration. Teresa✓�V l� OCSB ocsD MAIL BOOM 10844 Ellis Avenue 2010 FEB 13 AM 7: 59 Fountain Valley,CA92708 R� ,e . ,— Subject: Protest of proposed fees Property Information: Frank and Darleen Yee APN 93617587 We protest the proposed rate increases. Sincerely, o� Frank a rlee ee 3� I�. OL�SD oaD MAIL ROOM 10944 Ellis Avenue 2010 FEB 13 Ali 7: 59 Fountain Valley,CA92708 Subject: Protest of proposed fees Property Informatlom Frank and Darteen Yee APN 02303130 We protest the proposed rate increases. Sincerely,` Frank�and D eennl e I� so Stephen & Lynn Johsz/Johsz Family Trust MAIL OOM 16352 Mercier Lane Huntington Beach, CA 92647 2818 FEB 13 AM 8: 51 February 12, 2017 R Ei . I V€: Orange County Sanitation District (OCSD) 10844 Ellis Ave. Fountain Valley, CA 92708 Subject: Protest of Proposed OCSD Sewer Rate Increase Parcel Number. 146-531-09 Dear OCSD Board of Directors, In accordance with Article XI II D, Section 6 of the California Constitution, this letter is being sent to protest the increase of sewer rates proposed by the OCSD. In protest, Stephen & n J sz Johsz Family T Parcel Owner - l " -7 �a,14 �f r-a � �& . x� Iq aa' `s^ �J q) pro 01- � n �F Brandt, Angela From: Sent: Wednesday, February 14, 2018 8:08 AM To: Rates Subject: EXTERNAL fees We oppose and protest all the proposed fee increases.A reply confirmation our desires have been duly recorded will be appreciated. Thank you, Charles T Bums Usbeth A Burns 5502 Edinger Ave Huntington Beach, CA 92649 APN 146-091-01. -- -- --- F � zo, ss- ;flora11 cs4 � - -- --- Brandt, Angela From: Sent: Sunday, February 11,2018 4:59 PM To: Rates Subject: EXTERNAL Protest OCSD Rate Increase-APN 02408518 As a home owner in Orange County, I protest the proposed rate increase by Orange County Sanitation District. Name: CRAIG T. LOU and ZAVINA HONG, TRUSTEES OF CRAIG T. LOU AND ZAVINA HONG LIVING TRUST Parcel Number: 025-085-18 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hypedinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. 1 H5 Brandt, Angela From: - Sent Sun a�11,2018 5:00 PM To: Rates Subject EXTERNAL Protest MD Rate Increase-APN 02402533 As a home owner in Orange County, I protest the proposed rate increase by Orange County Sanitation District. Name: CRAIG T. LOU and ZAVINA HONG, TRUSTEES OF CRAIG T. LOU AND ZAVINA HONG LIVING TRUST Parcel Number: 024-025-33 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t t' n� FROM 7WE DESX OF 'rHE B.a.S71ANS February 12,2018 OCSD 10844 Ellis Avenue Fountain Valley, CA 92708 Re: Proposed Water and Sewer Rate Increase To Whom It May Concern, This memo is to protest the proposed increase of water and sewer rates to be discussed at the March 28,2018 public hearing. Thank you for consideration, Names of parcel owners: Cheryl and Steve Bastian II Pa�diess 10052 El Capitan Drive Huntington Beach, CA 92646 BECKv TEE WLPO • 8612 RENNRICK CIRCLE I'D HUNTINGTON BEACH CALIFORNIA,92647 Febmmy 10,2018 OCSD 108"Ellis Avenue Fountain Valley, CA 92708 ORANGE COUNTY SANITATION DISTRICT SEWER RATES PARCEL OWNER: Becky Tee Wain PARCEL NUMBER: 165-101-23 PARCEL ADDRESS: 6612 Rennrick Cimle,Huntington Beach, CA 92647 Statement of Protest, Proposed OCSD Sewer Fee Increase: I, Becky Tee Ward, owner of parcel number 165-101-23, protest the proposed increase of OCSD sewer rates. Best regards, � �� Becky e Ward Owner of Parcel Number 165-101-23 Brandt, Angela From: stephen thomas sent Monday,February 26,2018 3:09 PM To: Rates cc stephen thomas Subject:. EXTERNAL:Protest OCSD Proposed Fee Increase Attachments: OCSD Protest In Sewer Rate Increase scan.doa.pdf To: OCSD/Sewer Fee Increase Protest 10844 Ellis Ave Fountain Valley, CA 92708 Subject: OCSD Sewer Fee Increase Protest I'm a long time Orange County resident, & I'm writing to PROTEST the proposed increase of OCSD sewer rates, to be heard at the public hearing on 3/28/2018. Sincerely, Stephen S. Thomas 20061 Shorewood Circle Huntington Beach, CA 92646 APN#: 161-182-05 Attached: Signed document of protest. t Ronald and Susan Wuckert 6911 Verlene Circle Huntington Beach,CA 92647 February 26,2018 OCSD 10844 Ellis Avenue Fountain Valley,CA 92708 RE: OCSD Sewer Service Board Members: Please accept this correspondence as formal protest for the proposed increase of sewer service fees. Parcel Owner: Wuckert, Ronald Wuckert,Susan M Parcel Address: 6911 Verlene Circle Huntington Beach,CA 92647 Parcel Number:146-271-16 Sincerely, Ronald J.Wuckert - nK Susan M.Wuckert Brandt, Angela From: John Howell Sent: Thursday, March 1,2018 1:42 PM To: Rates Subject: EXTERNAL Rate protest I am opposed to the proposed rate increase. John D Howell Parcel No. 151-062-35 J 'Virus-free. 1 I I �� New 1� Brandt, Angela From: Lore, Kelly Sent: Thursday, March 1S, 2018 5:S7 AM To: Brandt,Angela Subject: FW: EXTERNAL Stop the Sewer Scam Please add this to your letters in regards to rates. Thanks Kelly Lore, MMC t Clerk of the Board -=,j Orange County Sanitation District Y,y % Office:714.593.74331 Cell:714.587.81971 Fax 714.962.0356 ~.ocsd.com From:janet doe [mailt� Sent:Tuesday, March 13,2018 7:14 PM To: Lore, Kelly<KLore@OCSD.COM> Subject: EXTERNAL:Stop the Sewer Scam OCSD: 1553 Regards, janet doe 18945 York Ln Huntington Beach,CA 92648 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. Ili 1 ► 'Y CIA. ac a sw i Ap(4 - /5OCSP 1663�3 _ iE-1a8 -- -- - _ --_ - z 4 - - - ; Ull �nC m fir, m CrLL I I greanroom- a- S9�ifT H.q Pro foccb OGsIj �,Z, S,crcowt F Roy Fri edric�. Parcel Ao. 1"- 141-43 J-s3 aaz? Cn 06 y O - -- Daniel & Sharon Becker & our Renters 2-12-18 Strongly Protest any increases in Water and Sewer rates. We own three properties in Huntington Beach Parcel #159-083-14 6411 Glenfox dr. Huntington Beach CA. 92647 Parcel #159-042-10 7771 Ellis St. Huntingtin Beach CA. 92648 Parcel #159-042-11 7781 Ellis St. Huntington Beach CA. 92648 It is LONG OVERDOE our Elected politicians in Huntington Beach started working for the people that voted them in. k"-wP Daniel P. Becker Sharon M. Becker OcsO MAIL RQOP4 2018 MAR 16 AM ffi 45 3/13/2018 Mastropaolo,Janet 4737 Rey Drive Huntington Beach, CA 92649 OCSD 10844 Ellis Avenue Fountain Valley, Ca 92708 Dear Sir: Please accept this as my letter to protest the proposed fee increase. Sin ly, - - -S Mart paolo,Janet Hom owner / I Brandt, Angela From: Connie Ngo Sent: Tuesday, March 20,20181:04 AM To: Rates Subject EXTERNAL PROTEST THE PROPOSED FEE SEWER SERVICES INCREASING March 20,2018 Dear OCSD, We protest the proposed fee increasing of the sewer services. We have paid more than enough. My name: Connie Ngo(The CP Ngo Living Tr) My Parcel#:APN 93387423 -Sincerely, Connie P Ngo This email was sent by someone outside CCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. i nV 03 15 2018 To OCSD, I protest and object to the proposed rate increases for sewer services for my property. Again, I am against any rate increases for your services. Thankyou My name is Maryam Sharifi lna� Parcel Number is # 145-041-24 5021 Pheasant Circle Huntington Beach, CA 92649 N.� P�s� i1�F i�c,eca-sue .__ /'�t.EN,v q-IGCEL A 4,r:Q6F� I Brandt, Angela From: Timothy Storer Sent: Monday, March 19,201810:08 PM To: Rates Subject: EXTERNAL Protesting proposed fee I live at 6532 Kirklund circle Huntington Beach ca and I am hereby protesting the proposed sewer service fee. As Storer Sent from my !Pad This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hypedinks. Contact the IT Service Desk (x4357)for assistance with any questionable email sources, content or requests. t Brandt, Angela From: PhuleGIOMMENIM Sent: Friday, March 9,2018 7.57 AM To: Rates Subject: EXTERNAL Sewer fee Name:Phu Le 933-87478 - 1 already pay a very high water/trash bill and cannot afford any highly fee. Thank you. Phu Le -. . ,.r.rnp Sarnamg Galez� smaryhone. 1 Brandt, Angela From: - Sent Sunday, March 11,2018 4:35 PM To: Rates Subject EXTERNAL Rate increase We protest the proposed sewer fees on the following parcels: APN 19522316, APN 10720116, APN 14527219, APN 10802227. Owners of record, Walter S. Jones and Mary Lee-Jones Sent from my iPhone This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357)for assistance with any questionable email sources, content or requests. Brandt, Angela From: Marie Whittington Sent: Thursday, February 15,20181A2 PM To: Rates Subject: EXTERNAL PROPOSED SEWER SERVICE FEES I own a home at 730 Ryan Ave,to Habra 90631—APN 39525252. 1 strongly object to the proposed rate increase in sewer treatment rates for the following reasons: 1. The surge in building new homes and rental units means you will be collecting from thousands of additional customers.This increases your revenue without capital expansion so the rates should go DOWN, not up. 2. The drought regulations to reduce water use-limiting when landscaping can be watered, prohibiting/discouraging car washing,short showers, sidewalk washing and other measures, REDUCE the amount of water that drains into the sewer system. Therefore,even though the population goes UP,the water use/sewer run off goes DOWN. 3. 50%of treated water is allowed to flow into the ocean,rather than back into domestic use. Retum that water to home use and you reduce the cost of buying water,which should REDUCE rates rather than increase. 4. When citizens don't have enough money to pay everything,they figure ways to cut expenses. That is not an unreasonable expectation of OCSD. Sent from Mail for Windows 10 1 Brandt, Angela From: ROBERT BLACK Sent: Saturday,February 10,201812:14 PM To: Rates Subject EXTERNAL,PROTESTING RATE INCREASE Hello, I am sending this email to officially protest the proposed rate hike for sewer service disclosed in a mailer I received today. The rate increase is small but there is no explanation of new, improved service or extraordinary costs incurred to justify the increase. Only a vague reference to "engineering studies and reports' is offered as justification, which amounts to zero information. The size of a rate increase is important but so is the justification; such as an increase/improvement in the service I would receive in return for the rate increase. Let's hear about that before making an arbitrary increase. Thank you for your consideration, Robert Black Parcel 117-392-21 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t A(I Fourcher 4340 LLC 4340 Von Kansan Ave.,Suite 400 Newport Beach, CA 92660 March 20, 2018 Via Email rat s@o d om OCSD 10844 Ellis Avenue Fountain Valley, CA 92708 Re: Protest of Proposed Fees, 4340 Von Kansan Ave., Newport Beach, CA 92660 Dear OCSD Representative, I am a partner in PRES 4340 LP and a member of Fourcher 4340 L-C, which owns 12 Condo units in the above referenced property. I wanted to submit my objections to the proposed user rates and alert OCSD of an anomaly in billing. In the second half of 2016 PRIES 4340 LP recorded a condominium map (Parcel Map No. 2014-180), which subdivided 4340 Von Kansan Ave., Newport Beach, CA into 47 office condominiums. Note that the 2015-16 Seared Property Tax Bill was for one parcel(same SF as the total of the 47 office condos today). That parcel was 445-131-11 and the Sewer User Fee was $5,787.82 or$0.084 psf. This is the baseline in billing. However, 2016-17 Seared Propety Tax bills include an assessment of$331 per parcel with proposed annual increases. What this means for the businesses in 4340 is that instead of paying $0.084 psf, they are now being billed $0.256 psf. ($331 x 47 = $15,557/68,621 SF). That is an escalation of 3x the previous Sewer User Fee from 2015- 2016. Meanwhile, there have been no increases in water usage so the fee is disproportionate to the water/sewer usage. A representative from our condo owners association will be formally submitting a rebate request in July. Von Kaman Corporate Owners Association pays the water/sewer bill for the entire building and has the water meter records. There are two bills monthly paid by the association. One is for the fire line and the other is for the building.The usage has not increased since the property has been converted to office condos in the second half of 2016. We have common area bathrooms on each floor.This would be consistent with the building when the space was leased and assessed as one parcel. 4340 Von Kamwn Ave.Suite 400 Newport Beach.CA 92660 I f Wfi Brandt, Angela From: J. D. Romanoff�> Sent Saturday, February 10, 2018 3:29 PM TO: Rates Subject EXTERNAL:Public Hearing Regarding Regarding Proposed Sewer Service Fees RE: OCSD Sewer User Fees to the Owner of APN 50315205 As the owners of Parcel# 503-152-05 we already pay OCSD Sewer User Fees. We hereby object to the addition of any more fees by OCSD. 1n fact we are sick and tired of all the fees, taxes, and everything else that adds to our property taxes,which are already outrageous. We firmly oppose and refuse any further fees proposed to be levied by OCSD. Jan D, & Mary Romanoff 10371 Mjralago Place Cowan Heights, CA 92705-2559 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. i Brandt, Angela From: Anthony Sent: Tuesday, February 13,2018 1:34 PM To: Rates Subject: EXTERNAL:Protest of Rates increase Dear OCSD Board, I,Anthony G Eckersall,of 2201 W Flora St,Santa Ana,CA 92704.Parcel Number 412-241-03. Fully Protest the proposed rate increase Please count this notification of protest in your hearing dated March 28' 2018 Thank you Anthony G Eckersall This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t Brandt, Angela From: Lore, Kelly Sent: Friday, March 9,2018 10.44 PM To: Brandt,Angela Subject: Fwd:EXTERNAL Stop the Sewer Scam Angela please add this letter to your tally. Sent from my Verizon,Samsung Galaxy smartphone —Original message From:Sandra Blum Date:3/9/1811:29 PM(GMT-07:00) To:"Lore, Kelly"<KLore@OCSD.COM> Subject:EXTERNAL:Stop the Sewer Scam OCSD: Stop the Sewer Scam I I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips, big screen TVs and Disneyland tickets) Stop the Sewer Scaml Regards, Sandra Blum 18201 Casselle Ave Santa Ana,CA 92705 This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t Sty Brandt, Angela From: Charles Sent: Friday, March 2,2018 10:31 AM To: Rates Subject: EXTERNAL To Whom It May Concern: I am protesting the proposed new fees. I already pay a number of fees as a renter in a mobile home park owning my home. I am a senior living alone and use a minimum amount of water. My Assessor Parcel Number is: 890-630-49. My home address is 3929 W.Sth Street Space 49,Santa Ana,CA 92703. Thank you. charlesfcovey@hotmall.com t /C V� Brandt, Angela From: Claudia Carrillo Sent: Friday, February 23,201811:31 AM To: Rates Subject: EXTERNAL,Protest letter for parcel 408-443-10 I, Claudia Carrillo, would like to protest the proposed increase fees for OCSD at parcel number4o8-443-io at property address: 17i9 St Gertrude Pl, Santa Ana, CA 927o4 t �Ila Brandt, Angela From: Roy Melcher � Sent: Wednesday, March 7,2018 9:37 PM To: Rates Subject: EXTERNAL Proposed Sewer Service Fees OCSD, My name is Royal Melcher. My parcel number is 10837105. 1 must protest yet another tax to live in southern California. My spouse and I have lived in Santa Ana for 52 years and have been retired since 2006. Please find another source of funds to finance the increase in fees you are proposing. Our governor and our government are taxing us way too much. And, they are coming up with a high speed rail project we do not want and are fighting the U.S. government over subjects they have no legal leg to stand on. Our city government is using our taxes to create a light rail system which only supports the northern part of the city. Please reconsider imposing this increase or implement it when and if the high speed rail system is cancelled or our recent increase in gasoline taxes is cancelled. Thank you for requesting the community's input. Royal And Julie Melcher t February 12, 2018 Orange County Sanitation District 10844 Ellis Ave. Fountain Valley, CA 92708 Re: APN's 19915201, 93629243 and 19907604 To Whom It May Concen: I hereby protest the proposed rate increases for the referenced parcels. Sincerely, Da relStoskopf 1630 Crestview Ave. Seal Beach, CA 90740 DR. VERONICA THOMAS, PH.D. A Psychological Corporation 17662 Irvine Blvd., Ste 11 Tustin, California 92780 To: From: @: Fax #: Pages: Date:~ �+ Re: Re: To whom it may concern: C c-'jj� va,� c6 Al i �fTi� qg " t g PRESORTED RETURN SERVICE FIRST-CUSS —`1 a REDUESTED U.S.POSTAGE PAID PERMIT NO 1464 'r rz. .J 10844 Ellis Avenue Fountain Valley,CA 92708 Davis Khuong Hung Trinh tIMC6 q74 Le,Theo Thanh Trinh y 1777 Mitchell Ave Apt 115 disporbleenBspaiiolen Tustin, CA92780-6370 i ulll'Ilr'IP'1,pn'lhUpll,1410„p,,,,lll,lll„y'hlrr A� NC1W'- NOTICE OF PUBLIC HEARING Jerk. k1Aj 4/VL&Nt�, .E4 Wednesday, MarCh 26, 2010 • 6 p.m. p _ n 11 10644 Ellis Avenue, Fountain Valley, CA 92708 we protect public health and the environment by. • Helping to ensure our beaches are safe. 1 . 1I44 /rG-yr-jj V t> o,,N�� + Supplying 100 million gallons per day of fu„ f u ]treated water for recycling. �C • Recycling Soo tons per day of solids from r wastewater and creating soil amendment and compost. p • Producing over 60 percent of electricity to cz w�y ^vya r� power our treatment facilities. U • Maintaining our infrastructure — guaranteeing reliability of our pipelines and r treatment systems — preventing sewer L/^� spills and beach closures. .. 2/16/18 OCSD—Orange County Sanitation District 10844 Ellis Ave. Fountain Valley,CA 92708 RE: Proposed Rate Increase 1 received your'Notice Of Public Hearing'of increase for the disposal of sewage and wish to protest this rate increase. My parcel#is 932-48D-79 and I ask that you be reasonable; I live in a condo complex and have had trouble with the system backing up so I have to pay out of pocket approximately$400.00 each time this happens. If I am paying you for a service and paying them to make sure I can use your service,then why the rate increase? I am retired without the view of my income increasing and every dollar is a must in my household which means I cannot afford what you propose year after year. Please reconsider and you have my many thanks �for ryyour help. Charlie Edwards yL Brandt, Angela From: Charles Tam Sent: Thursday, February 22, 2018 5:19 PM To: Rates Subject EXTERNAL:Protest of fee increase: Parcel APN 32217129 1 live at APN 32217129 with my mother. My mother's name is WING NGOR TAM,which is the name on the Assessor's property tax record. She has some difficulty with the English language, so she asked me to type an email message. This email message is TO PROTEST the proposed sewer user fee increase. We have lived below the federal poverty level for over ten years. We have very little control over our income. Our income is heavily dependent on interest from the bank. I am unemployed and my mother is retired,and we have had huge unexpected expenses this year in the form of repair bills for household appliances and other stuff. In addition, our household and auto insurance premium costs have increased even though we have reduced our coverage limits. We CANNOT AFFORD any Increase in fees far sewage treatment. (It is very difficult to apply for summer jobs,as there is so much competition,and so many forms and paperwork to fill out.) Thank you for your attention. t y� Brandt, Angela From: Edward Gogin - Sent: Friday, February 23,2018 5:50 PM To: Lore, Kelly Subject: EXTERNAL Stop the Sewer Scam Follow Up Flag: FollowUp Flag Status: Flagged OCSD: I have been recently informed of the top heavy pork filled OCSD board members.With all the corruption in government, I was saddened to see it is once again rearing its head in Orange County.Shame on you. Stop the Sewer Scam! I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips,big screen TVs and Disneyland ticketsl Stop the Sewer Scam I Regards, Edward Gogin 19275 Jasper Hill Rd Trabuco Canyon,CA 92679 Gv� Brandt, Angela From: Irmin Langton Sent: Wednesday, March 7, 2018 8:21 PM To: Rates Subject: EXTERNAL Proposed increase to sewer service fee The Sanitation District has announced more multi-year sewer service fee increases. Fees are assessed per parcel regardless of dwelling size or water consumption. Such a reverse Robin Hood approach is highly unfair. It disproportionately affects seniors/single seniors who discharge very little into the sewer system. When sewer fees have been soaring and are as high as they are now, it is time to rethink your billing algorithm so you can treat your low-use customers with a measure of fairness. Sincerely, Irmin Langton Please keep personal info confidential Sent from my Fact This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357)for assistance with any questionable email sources, content or requests. r AIA Brandt, Angela From: James Saber Sent: Tuesday, February 27,2018 7:31 PM To: Rates Subject EXTERNAL Proposed Rate Increase I am old enough to have grown weary of these facades called Public Hearings. The utility wishing the increase must do this dance and regardless will get their rate hike. I have never seen an intense examination into any utility designed to counter a rate hike through examination of current business practice and savings the utility could leverage to reduce or eliminate the rate high. This poor system(public hearing and comment)does not encourage efficient business, it only allows rate hikes. Stop the hike and force the company to run more efficiently.Any company can find efficiencies and a company which denies such efficiencies exits is lying. Sincerely, Jim Saber Brandt, Angela From: Lore, Kelly Sent: Friday, March 9, 2018 10:43 PM To: Brandt, Angela Subject: Fwd: EXTERNAL: Stop the Sewer Scam Please add this letter to your tally. Thankyou. Sent from my Vefizon,Samsung Galaxy smanphone --------Original message-------- From:Beth Swift- Date: 3/9/18 10:22 PM(GMT-07:00) To: "Lore, Kelly"<KLore@OCSD.COM> Subject:EXTERNAL:Stop the Sewer Scam OCSD: Stop the Sewer Scaml I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips,big screen TVs and Disneyland ticketsl Stop the Sewer Scaml Regards, Beth Swift This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t Nb4 Brandt, Angela From: Diana Killy Sent: Monday,March 12,2018 11:01 AM To: Rates Subject EXTERNAL Protesting Rate Increase Name:Yan& Diana Killy Parcel number:936r540-30 We are protesting rate increase for Sewer services from OCSD. regards,Diana Killy t 'Wr4 wvnuo Brandt, Angela From: Kathy Montano Sent: Friday, February 23,201810:18 AM To: - Lore,Kelly Subject: EXTERNAL Stop the Sewer Scam Follow Up Flag: Follow up Flag Status: Flagged OCSD: Stop the Sewer Scaml I am very disappointed at how you conduct business at the Orange County Sanitation District. You overcharge for your services,hold people's money hostage when,even when you admit you've over charged them. And clearly you have lost sight of your mission by spending money on lavish international trips,big screen Ns and Disneyland ticketsl Stop the Sewer Scaml Regards, Kathy Montano t �r� Brandt, Angela From: Gerald O'Connell Sent: Sunday, February 11,2018 8:35 PM To: Rates Subject FXrERNAL rate increase protest My name is Gerald O'Connell and I reside at 19862 Saltwater Circle, Huntington Beach,CA 92648. 1 am contacting you to protest the proposed sewer service fee increase. After reading the studies/plans as outlined at www.ocsd.com I do not agree that there is enough evidence presented by the ORSD to support this increase. Cordially, Gerald O'Connell This email was sent by someone outside OCSD's business network. Please exercise caution before opening any attachments or hyperlinks. Contact the IT Service Desk (x4357) for assistance with any questionable email sources, content or requests. t AC) WN BOARD OF DIRECTORS Meng Date TOBd.Of Dir. 02/eti28/18 03/28/18 AGENDA REPORT Item Number Item Number zo s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED ORDINANCE NO. OCSD-50 ADOPTING CAPITAL FACILITIES CAPACITY CHARGES GENERAL MANAGER'S RECOMMENDATION A. Conduct a Public Hearing for Capital Facilities Capacity Charges • Open Public Hearing • Receive Public Comment • Close Public Hearing B. Motion to read Ordinance No. OCSD-50 by title only and waive second reading of said entire ordinance; and C. Adopt Ordinance No. OCSD-50 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD-42" BACKGROUND The Orange County Sanitation District (Sanitation District) will progress to the fees determined by the Rate Study over the next five years as opposed to implementing the increases in one year. The five-year schedules for the various fees will follow. The Capital Facilities Capacity Charge (CFCC) is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the OCSD's system, or an existing structure is expanded or increased. This charge is to pay a portion of the capacity costs and for access to capacity in the system. Based upon the new Facilities Master Plan, the 3-bedroom base rate for the residential CFCC proposed schedule is as follows: 2018-19 2019-20 2020-21 2021-22 2022-23 $4,228 $4,601 $4,973 $5,346 $5,719 The non-residential CFCC schedule for 2018-19 is below and will adjust by the Engineering News Record Construction Cost Index each year, thereafter. Use Category 2018-19' Low Demand $ 332 Average Demand $2,066 Page 1 a 3 High Demand $4,908 .per thousand square feet The Supplemental Capital Facilities Capacity Charges (SCFCC) are fees to Industrial Permittees that exceed their annual baselines for Flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS): 2018-19 2019-20 2020-21 2021-22 2022-23 FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996 BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210 SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840 FLOW—Gallons Per Day BOD— Pounds Per Day SS— Pounds Per Day RELEVANT STANDARDS Fair and equitable costs across all customer classes PROBLEM The Sanitation District's Board of Directors approved a five-year rate schedule for Industrial Sewer Service Charges which expires at the end of the current fiscal year. Capital Facilities Capacity Charges and Supplemental Capital Facility Capacity Charges are currently based upon expansion costs which are now minimal requiring a review and update of the methodology used to calculate the fees. PROPOSED SOLUTION Adopt ordinance with updated fee schedules based upon the 2017 Rate Study performed by Carollo Engineers and received and filed by the Board in December 2017. TIMING CONCERNS February 91h— Notifications Mailed February 2811— First Reading of the Ordinance March 28'h— Public Hearing, 2nd Reading and Adoption of the Ordinance July 1s'— Ordinance takes effect RAMIFICATIONS OF NOT TAKING ACTION Revenues will be insufficient to support the facilities master plan adopted in December 2017. Page 2 of 3 PRIOR COMMITTEE/BOARD ACTIONS February 2015 — 1s' reading of Ordinance No. OCSD-50 December2017—Adopted 2017 Facilities Master Plan and Received and filed 2017 Rate Study March 2013—Adoption of Ordinance No. OCSD 42 (Industrial Charges) January 2013 — Approval of the previous Sanitation District Wastewater Revenue Program Rate Study. May 2010—Adoption of Ordinance No. OCSD40 (CFCC's) ADDITIONAL INFORMATION To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (Sanitation District) engaged an engineering consulting firm, Carollo Engineers, to provide an independent analysis of the Sanitation District's cash flow modeling and a cost of service study. The study demonstrates that the Sanitation District's proposed fees are appropriate and reasonable and will support its projected capital and operating requirements. Carollo Engineers completed the facilities master plan update. In conjunction with this update, Carollo was tasked with performing an updated sewer rate study to determine the appropriate rates going forward to support the facilities master plan update. The Rate Study was received and filed and the Facilities Master Plan was adopted by Resolution No. OCSD 17-16 in December 2017. ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Ordinance No. OCSD-50 Page 3 of 3 ORDINANCE NO. OCSD-50 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND REPEALING ORDINANCE NO. OCSD-40 AND ORDINANCE NO. OCSD42 WHEREAS, Health & Safety Code Section 5471 authorizes the Board of Directors of the Orange County Sanitation District ("District") to impose fees and other charges for services and facilities furnished by the District in connection with the District's wastewater collection, treatment, disposal, and reuse system; and WHEREAS, the District imposes Capital Facilities Capacity Charges on new users and Supplemental Capital Facilities Capacity Charges on specified existing users. These charges are set forth in Ordinance No. OCSD-40, as amended by Ordinance No. OCSD-42; and WHEREAS, the District recently retained Carollo Engineers to evaluate the District's projected revenue needs and recommend service fees and capacity charges for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its "Final Report and Recommendations on Wastewater Rates, Fees, and Charges" ("Carollo Report"). The District's Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and WHEREAS, the Carollo Report recommended that the District (1) increase the residential CFCC from $3,855 per equivalent dwelling unit to $5,719 per equivalent dwelling unit by 2023, and (2) increase the commercial-industrial CFCC from $2,000 per 1,000 square feet to $3,639 per 1,000 square feet by 2023; and WHEREAS, the recommendations set forth in the Carollo Report are based on various studies and plans including, among others, financial forecasts and the District's 2017 Facilities Master Plan ("Master Plan"). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District's Board of Directors adopted the Master Plan on December 20, 2017; and WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California,the District held a property noticed public hearing, and received and considered comments concerning the proposed charges; and WHEREAS,the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing; OCSD-50-1 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: SECTION I. Adopt Capital Facilities Capacity Charges TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS Section 1.01. Findings— Declaration of Intent ARTICLE II: CAPITAL FACILITIES CAPACITY CHARGES Section 2.01. Purpose and Scope Section 2.02. Definitions Section 2.03. Connection Permits: Required Section 2.04. Capital Facilities Capacity Charge: Payment Section 2.05. Capital Facilities Capacity Charge: Time of Payment Section 2.06. Capital Facilities Capacity Charge: Schedule of Amounts Table A Capital Facilities Capacity Charges— Non-Residential Table B Capital Facilities Capacity Charges— Residential Table C Plan Check and Inspection Fee Schedule Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users— Special Purpose Dischargers— Definitions Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users Section 2.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users— Special Purpose Dischargers Table D Supplemental Capital Facilities Capacity Charges Section 2.11. Capital Facilities Capacity Charge: Replacement Section 2.12. Capital Facilities Capacity Charge: Remodeled Section 2.13. Accessory Dwelling Units Section 2.14. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements Section 2.15. No Refund or Transfer Section 2.16. Baseline Transferability Section 2.17. Capital Facilities Capacity Charge: Annual Updates Section 2.18. Affordable Housing Projects OCSD-50-2 ARTICLE III: MISCELLANEOUS Section 4.01. Application of Ordinance Section 4.02. Exceptions Section 4.03. Out of Area Sewer Service Agreements ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings. Based on substantial evidence in the record, the Board of Directors hereby finds as follows: A. The District operates a system for the collection, treatment, disposal, and reuse of wastewater ("System'). The System protects human health and the environment from the potentially harmful effects of wastewater. B. The District regularly constructs, reconstructs, repairs, and/or rehabilitates System facilities through capital improvement projects ("Capital Projects"). The District recovers the cost of Capital Projects through Capital Facilities Capacity Charges imposed on new users and Supplemental Capital Facilities Capacity Charges imposed on specified existing users. This Ordinance imposes Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges as recommended in the Carollo Report. C. The District will use the revenues from Capital Facilities Capacity Charges and the Supplemental Capital Facilities Capacity Charges to fund future Capital Projects and/or repay principal and interest on debt incurred in connection with past Capital Projects. The revenues shall not be used for the acquisition or construction of new local street sewers or laterals as distinguished from main trunk, interceptor and outfall sewers. D. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are based on the information and analysis set forth in the Carollo Report and the Master Plan, both of which were made available to the public in accordance with Government Code Section 66016 and other provisions of law. E. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance do not exceed the estimated reasonable cost of providing the wastewater collection, treatment, disposal, and reuse services for which the fees are charged. The manner in which the costs are allocated to each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits received from, the District's System. OCSD-50-3 F. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance will retire debt and fund capital projects necessary to maintain service within the District's existing service area. Therefore, adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). G. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are not imposed as an "incident of property ownership" within the meaning of Article MID of the California Constitution. Thus, the substantive and procedural requirements of Article MID do not apply. H. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. ARTICLE II CAPITAL FACILITIES CAPACITY CHARGES Section 2.01. Purpose and Scope. This Ordinance is designed to ensure that each user pays his or her fair share of the costs of Capital Projects, based on the burden that each user places on the System. The District will use revenues generated by this Ordinance to (1) fund future Capital Projects, and (ii) repay principal and interest on debt incurred in connection with past Capital Projects. Section 2.02. Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of the District facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's System, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for the District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District, and in the Building Department of each City within the District. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the District's System, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection OCSD-50-4 and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non-public users, and is not in excess of the proportionate share of the cost of the District's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis, as determined by the District. Said charge is required to be paid by dischargers that exceed the maximum quantity of Flow or constituents (BOD or SS) allowed as a base use for which the Capacity Charge is paid. G. "Accessory Dwelling Unit" means an attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons, includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated, and has been approved by a local agency pursuant to Government Code Section 65852.2 and/or a local ordinance. Section 2.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the District's sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the District's facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305—305.6 of the District's Wastewater Discharge Regulations, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit. There will be a non-discriminatory Capital Facilities Capacity Charge assessed to public agencies for connecting directly or indirectly to the District's sewerage system facilities, and a connection permit must be obtained. OCSD-50-5 Section 2.04. Capital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to the District's sewerage facility, or to any sewerage facility which discharges into the District sewerage facility, shall be approved, nor a permit issued, until the District's Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which establishes the category of use of said property. Section 2.05. Capital Facilities Capacity Charge: Time of Payment. A. Payment of the Capital Facilities Capacity Charge established by this Ordinance for connection to the District's sewerage system facilities shall be required at the time of issuance of the building permit for all construction within the District, except in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the District, or if none, prior to the issuance of a Certificate of Occupancy. B. Upon application of any property owner seeking to connect to the District's sewerage system, the General Manager or his designee, upon a finding of compelling need, may, pursuant to the authority of California Health &Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge and/or annexation fees in installment payments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. Section 2.06. Capital Facilities Capacity Charge and Plan Check and Inspection Fees: Schedule of Amounts. A. Every person or entity connecting any new or expanded building or structure to the District's system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table A & B, below. B. Every person or entity connecting any new or expanded building or structure directly to the District's local or regional system facilities shall pay Plan Check and Inspection Fees in the amount set forth n Table C, below. OCSD-50-6 TABLE A CAPITAL FACILITIES CAPACITY CHARGES (CFCC) NON-RESIDENTIAL Use Category Rate Basis Base Charge Low Demand= Per 1,000 square feet' $ 332.001 Average Demands Per 1,000 square feet $2,066.001 High Demand3 Per 1,000 square feet $4,908.001 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4,228; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. ?Low Demand connections are the following categories of users: Parking Structures; Nurseries; Warehouses; Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards; Public Storage Buildings; and other facilities whose wastewater discharge is similar to these listed categories. Parking Structures not connected to the sewer will not be charged. 31-igh Demand connections are the following categories of users: Food/Beverage Service Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to these listed categories. !All other connections are Average Demand users including: Church Offices and Schools; Hotels, Shopping Centers/Strip Malls without food/beverage service establishments, Music Halls without food facilities, Office buildings, Senior Housing with individual living units without kitchens but with a common kitchen 5 Residential Accessory Structures such as workshops and hobby shops that connect to the sewer, will be charged at the average demand rate and the minimum charge does not apply. OCSD-50-7 TABLE B CAPITAL FACILITIES CAPACITY CHARGES (CFCC) RESIDENTIAL (PER UNIT)- Single Family Residential (SFR)' Base Charge 5+ Bedrooms $5,877.00 4 Bedrooms $5,031.00 3 Bedrooms $4,228.00 2 Bedrooms $3,425.00 1 Bedroom $2,621.00 Multi-Family Residential (MFR)z Base Charge 4+ Bedrooms $4,566.00 3 Bedrooms $3,763.00 2 Bedrooms $2,960.00 1 Bedroom $2,114.00 Studio' $1,353.00 'The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate that is a percentage of the base rate depending on the size of the unit. The schedule for the base rate shall be as follows: 2018-19 2019-20 2020-21 2021-22 2022-23 $4,228 $4,601 $4,973 $5,346 $5,719 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other enclosed addition which could potentially be used as a bedroom are included in this category. The classification of these additions will be reviewed and determined by staff. 2 MFR units consist of multiple attached units that receive one secured property tax bill such as apartments. Senior housing with individual living units that include a kitchen are considered MFR units. 'Studio—one single room with no separating doors or openings leading to another part of the room (except for a bathroom). Live/Work units will be charged at the residential rate for the living quarters and at the non- residential rate for the work portion square footage. OCSD-50-8 TABLE C PLAN CHECK AND INSPECTION FEE TABLE INSPECTION FEES FOR SINGLE CONNECTIONS Lateral installation to property line: 2018-19 2019-20 2020-21 2021-22 2022-23 $575.00 $650.00 $725.00 $800.00 $875.00 Lateral Installation to existing manhole with clean out: 2018-19 2019-20 2020-21 2021-22 2022-23 $650.00 $800.00 $950.00 $1,050.00 $1,150.00 Core drilling into existing manhole base—add: 2018-19 2019-20 2020-21 2021-22 2022-23 $600.00 $900.00 $1,200.00 $1,450.00 $1,500.00 Installation of new manhole over existing manhole: 2018-19 2019-20 2020-21 2021-22 2022-23 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00 Gas Flap Installation —add: 2018-19 2019-20 2020-21 2021-22 2022-23 $450.00 $455.00 $460.00 $465.00 $470.00 INSPECTION FEES FOR MULTIPLE CONNECTIONS Plan check and inspection fees of 20 percent of the sewer construction cost for new tract sewers, sewer extensions or special facilities are required when plans are submitted for plan check. If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the project. If funds are required after the work is completed, they must be paid before the District finals the sewer project. OCSD-50-9 Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users and Significant Special Purpose Dischargers— Definitions. A. A Significant Commercial — Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Article 3 of the District's Wastewater Regulations, due to having federally or the District regulated or significant discharges. B. A Significant Special Purpose Discharger ("SSPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the District's Wastewater Regulations. A Special Purpose Discharger (SPD) discharges 25,000 gpd or less. C. An Existing SCIU or SSPD is any SCIU or SSPD connected and discharging to the District's system prior to January 1, 2000. D. A New SCIU or SSPD is any user who connects and discharges to the District's System pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs 2.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SSPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day("gpd"), or 150 pounds per day each of BOO and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection 2.07E shall be subject to the provisions of Sections 2.08 and 2.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the the District as of January 1, 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 2.07A above, shall have a minimum baseline established as follows: Flow — 25,000 gallons per day; BOD— 150 pounds per day; and SS— 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a Supplemental Capital Facilities Capacity Charge. OCSD-50-10 H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective date of this Ordinance. Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table A, for commercial — industrial use category properties, all New SCIU's shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the amount shown in Table D. Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities Capacity Charge of$.001948 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial — Industrial Users connected to and discharging to the District's System shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day over its established baseline authorization, whichever is lesser; or(ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharger or the District. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 2.10A above. TABLE D SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge 2018-19 2019-20 2020-21 2021-22 2022-23 FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996 BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210 SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840 OCSD-50-11 FLOW—Gallons Per Day BOD — Pounds Per Day SS — Pounds Per Day C. All Existing SPDs connected and discharging to the sewer shall be required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $ 0.001948 per gallon per day of discharge for each gallon above 25,000 gpd. D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District. Section 2.11. Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A and B that would be for the prior category of use which was terminated and removed. Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the District's system facilities, to which new construction or alteration is made to change or increase the category of use or number of bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A and B for the prior category of use. Section 2.13. Accessory Dwelling Units. Notwithstanding Section 2.12, pursuant to Government Code Section 65852.2, the District shall not collect Capital Facilities Capacity Charges from any ADU if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Section 2.14. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the District Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the District and the property owner, shall be paid in the amount provided for in said Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06 through 2.10 hereinabove, established for property connecting to said facilities. OCSD-50-12 Section 2.15. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason once the connection has been made. If the connection is not made and the request for connection is withdrawn within 12 months of the payment date, the charges paid will be refunded upon establishing proof from the City or County of a canceled permit. The connection permit is non-transferable to any other parcel of property. Section 2.16. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable to a different property, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property for a different use. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 2.08 above. Section 2.17.Capital Facilities Capacity Charge Annual Updates. The Capital Facilities Capacity Charge is based upon the most recently completed Facilities Master Plan. This The non-residential charge will be updated annually based upon the increase in the Engineering News-Record construction cost index for Los Angeles as of December of the prior year until the completion of the next Rate Study. The residential charge will be updated based upon the schedule of base fees in Table B. Section 2.18.Affordable Housing Projects. Per Resolution OCSD 11-02, development projects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the District makes specific written findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following: (a) insufficient water supply or insufficient water treatment or distribution capacity; (b) a State Department of Health Services order prohibiting new water connections; (c) insufficient sewer treatment or collection capacity; (d) a Regional Water Quality Control Board order prohibiting new sewer connections; (a) the applicant has failed to agree to reasonable terms and conditions ARTICLE III MISCELLANEOUS Section 4.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District's Wastewater Discharge Regulations for use of the District's sewage facilities, including provisions for payment of charges or fees related thereto; the District's ordinance establishing Fees Concerning Annexations of OCSD-50-13 Territory to the District; and any other the District Ordinances and Resolutions not in conflict herewith. Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 4.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport,treatment and disposal of wastewaters originating within areas outside of the District if it is in the best interest of the District to do so. These Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: SECTION II. Severabilitv. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018. SECTION IV. Repeal. Ordinance No. OCSD-40 and Ordinance No. OCSD-42 are hereby repealed. SECTION V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. OCSD-50-14 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018. Gregory C. Seboum, PLS Chairman, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District APPROVED AS TO FORM: Bradley R. Hogin General Counsel Orange County Sanitation District OCSD-50-15 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-50 was introduced for first reading at a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, 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 28th day of March, 2018. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District OCSD-50-16 BOARD OF DIRECTORS Meetlag Date Te Bd.Of Oil. 02/28/18 03/28/18 AGENDA REPORT Item Number Item Number 21 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED ORDINANCE NO. OCSD-51 ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS GENERAL MANAGER'S RECOMMENDATION A. Conduct a Public Hearing for Proposed Miscellaneous Charges and Fees relating to Industrial Dischargers, Source Control Permittees, and Wastehaulers. • Open Public Hearing • Receive Public Comment • Close Public Hearing B. Motion to read Ordinance No. OCSD-51 by title only and waive second reading of said entire ordinance; and C. Adopt Ordinance No. OCSD-51 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Miscellaneous Charges and Fees Relating to Industrial Dischargers, Source Control Permittees and Wastehaulers and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD42." BACKGROUND The Orange County Sanitation District (Sanitation District) will progress to the fees determined by the Rate Study over the next five years as opposed to implementing the increases in one year. The 5 year schedules for the various fees will follow. Industrial Sewer Services Charges for Class I and Class II Permittees for Flow, BOD and TSS: Class I and II 2018-19 2019-20 2020-21 2021-22 2022-23 Flow(') $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22 B.O.D. (") $ 658.09 $ 661.39 $ 664.69 $ 667.99 $ 671.28 S.S. ("') $ 716.60 $ 736.73 $ 756.86 $ 777.00 $ 797.14 (') Flow Per million gallons of Flow (") B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***) S.S. Per thousand pounds of Suspended Solids Page 1 of 4 Special Purpose Discharge Permits for Flow: Special Purpose Discharge Permit 2018-19 2019-20 2020-21 2021-22 2022-23 Flow(*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22 (*) Flow Per million gallons of Flow Wastehauler charges for use*: 2018-19 2019-20 2020-21 2021-22 2022-23 Within OCSD Boundaries $0.06 $0.07 $0.08 $0.09 $0.09 Outside OCSD Boundaries"" $0.14 1 $0.16 1 $0.18 $0.20 $0.22 (*) per gallon (") Outside OCSD boundaries and inside OCSD service area or authorized by the OCSD General Manager Class I, Class 11, SPDP, Wastehauler, and Certified Permit Fees: 2018-19 2019-20 2020-21 2021-22 2022-23 A. Class I/Certified Discharger $ 945 $1,105 $1,265 $1,425 $1,585 B. Class II $ 240 $ 310 $ 380 $ 450 $ 520 C. SPDP' $1,072 $1,094 $1,116 $1,138 $1,160 SPDP Renewal $ 760 $ 775 $ 785 $ 795 $ 810 D. Wastehauler $ 190 $ 190 $ 190 $ 190 $ 190 E. Certified Zero/No Discharge $ 120 $ 120 $ 120 $ 120 $ 120 'New permit only-add nonrefundable deposit for first 1 million gallons as defined in Table G Additional Plan Check Fees and Miscellaneous Fees for Industrial Dischargers that have remained flat for over 10 years, are proposed to be updated as well and are included the attached revised ordinance. RELEVANT STANDARDS Fair and equitable costs across all customer classes PROBLEM The Sanitation District's Board of Directors approved a five-year rate schedule for Industrial Sewer Service Charges which expires at the end of the current fiscal year. All other industrial, wastehauler and miscellaneous fees have not been updated in over 10 years. Page 2 d 4 PROPOSED SOLUTION Adopt ordinance with updated fee schedules based upon internal staff review and the 2017 Master Plan and 2017 Rate Study performed by an independent engineering consultant that was received and filed by the Board in December 2017. TIMING CONCERNS February 91h— Notifications Mailed February 281"— First Reading of the Ordinance March 28� — Public Hearing, 2nd Reading and Adoption of the Ordinance July 161— Ordinance takes effect RAMIFICATIONS OF NOT TAKING ACTION Revenues will be insufficient to support the on-going operational costs and costs associated with the facilities master plan adopted in December 2017. PRIOR COMMITTEE/BOARD ACTIONS February 2018 - V1 Reading of Ordinance No. OCSD-51 December 2017 -Adopted 2017 Facilities Master Plan and Received and Filed the 2017 Rate Study March 2013 -Adoption of Ordinance No. OCSD 42 (Industrial Charges) January 2013-Approval of the previous Sanitation District Wastewater Revenue Program Rate Study May 2010 - Adoption of Ordinance No. OCSD-40 (CFCC's) ADDITIONAL INFORMATION To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (Sanitation District) engaged an engineering consulting firm, Carollo Engineers, to provide an independent analysis of the Sanitation District's cash flow modeling and a cost of service study. The study demonstrates that the Sanitation District's proposed fees are appropriate and reasonable and will support its projected capital and operating requirements. Carollo Engineers completed the facilities master plan update. In conjunction with this update, Carollo was tasked with performing an updated sewer rate study to determine the appropriate rates going forward to support the facilities master plan update. The Rate Study was received and filed and the Facilities Master Plan was adopted by Resolution No. OCSD 17-16 in December 2017. Page 3 of 4 ATTACHMENT The following adachment(s)are available in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Ordinance No. OCSD-51 Page 4 of 4 ORDINANCE NO. OCSD-51 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS AND REPEALING ORDINANCE NO. OCSD40 AND ORDINANCE NO. OCSD-42 WHEREAS, Health & Safety Code Section 5471 authorizes the Board of Directors of the Orange County Sanitation District (the "District") to impose fees and other charges for services and facilities furnished by the District in connection with the District's wastewater collection, treatment, disposal, and reuse system; and WHEREAS, the District imposes charges and fees on industrial dischargers, source control permittees, and wastehaulers pursuant to Ordinance No. OCSD-40, as revised by Ordinance No. OCSD42; and WHEREAS, the District recently retained Carollo Engineers to evaluate the District's projected revenue needs and recommend service fees and capacity charges for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its "Final Report and Recommendations on Wastewater Rates, Fees, and Charges" ("Carollo Report"). The District's Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and WHEREAS, the Carollo Report recommended specified adjustments to the fees and charges that the District imposes on industrial dischargers, source control permittees, and wastehaulers; and WHEREAS, the recommendations set forth in the Carollo Report are based on various studies and plans including, among others, financial forecasts and the District's 2017 Facilities Master Plan ("Master Plan"). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District's Board of Directors adopted the Master Plan on December 20, 2017; and WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a property noticed public hearing, and received and considered comments concerning the proposed charges; and WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing; OCSD-51-1 NOW,THEREFORE,the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: SECTION I. Adopt miscellaneous charges and fees relating to industrial discharges, source control permittees and wastehaulers. TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS Section 1.01. Findings— Declaration of Intent ARTICLE II: MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 2.01. Purpose and Scope Section 2.02. Administrative Fees and Charges Relating to Permittees Section 2.03. Industrial Discharger, Source Control, and Non-Compliance Sampling Fees Section 2.04. Special Purpose Discharge Permittees; Charges for Use Section 2.05. Class I and Class II Permittees— Charges for Use Section 2.06. Wastehauler Charges for Use Section 2.07. Administrative Appeals Table E Administrative Fees and Charges Relating To Permittees Table F Industrial Discharger, Source Control and Non-Compliance Sampling Fees Table G Class I and Class II Permittees and Special Purpose Discharge Permittees Charges For Use Table H Wastehauler Charges for Use ARTICLE III: MISCELLANEOUS Section 3.01. Application of Ordinance Section 3.02. Exceptions Section 3.03. Severability Section 3.04. Effective Date Section 3.05. Repeal Section 3.06. Certification and Publication OCSD-51-2 ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings— Declaration of Intent. A. The District operates a system for the collection, treatment, disposal, and reuse of wastewater ("System'). The System protects human health and the environment from the potentially harmful effects of wastewater. B. The revenues collected pursuant to this Ordinance shall be used to finance the improvements, programs, and staffing needed to operate, maintain, replace, and improve the District's existing facilities, fund necessary reserves, and retire debt incurred to finance such activities. The revenues shall be used for no other purpose. C. The fees and charges established by this Ordinance are based on the information and analysis set forth in the Carollo Report and the Master Plan, both of which were made available to the public in accordance with Government Code Section 66016 and other provisions of law. D. The fees and charges established by this Ordinance do not exceed the estimated reasonable cost of providing the wastewater collection, treatment, disposal, and reuse services for which the fees are charged. The manner in which the costs are allocated to each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits received from, the District's System. E. The fees and charges established by this Ordinance will fund the operations, maintenance, construction, rehabilitation, and repair necessary to maintain service within the District's existing service area. Therefore, adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). F. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. ARTICLE II MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL DISCHARGERS, SOURCE CONTROL PERMITTEES AND WASTEHAULERS Section 2.01. Purpose and Scope. The purpose of this Ordinance is to recover those costs incurred by the District (i) on account of industrial dischargers' and wastehaulers' use of the District's facilities; (ii) when administering the District's Source Control Program; and (iii) when performing non-compliance sampling of industrial wastewater dischargers who have violated the District's Wastewater Discharge OCSD-51-3 Regulations or the terms and conditions of the discharger's permit. Revenues derived under the provisions of this Ordinance shall be used to defray the costs incurred by the District (i) on account of such use of the District's facilities; and (ii) in performing these tasks. Section 2.02. Administrative Fees and Charges Relating to Permittees. Administrative fees and charges relating to permittees are hereby established in the sum or sums as set forth in Tables E, F, G, H, I and J, below. Section 2.03. Source Control Non-Compliance Fees. Source control non- compliance fees are hereby established for dischargers' non-compliance sampling and for self-monitoring and data reporting non-compliance, in the sum or sums as set forth in Table F, below. Section 2.04. Special Purpose Discharge Permittees: Charges for Use. As authorized by Sections 305.5 and 305.6 of the District's Wastewater Discharge Regulations, charges for use are hereby established for Special Purpose Discharge Permittees, as set forth in Table G, below. Section 2.05. Class I and Class 11 Permittees — Charges for Use. As authorized by Sections 302.3, 302.6, 303.3 and 303.6 of the District's Wastewater Discharge Regulations, the charges for use are hereby established for Class I and Class I I Permittees as set forth in Table F, below. Section 2.06. Wastehauler Charges for Use. As authorized by Sections 306.3 and 306.7 of the OCSD's Wastewater Discharge Regulations, the charges for use are hereby established for wastehaulers as set forth in Table H, below. Section 2.07. Administrative Appeals. A. Any user, permit applicant, or permittee affected by any decision, action, or determination by the District may, within forty-five (45) days of the date of mailing by the District of the initial invoice for fees imposed pursuant to this Ordinance, request that the District reconsider imposition of such fees. Following review of such a request, the District shall notify the user, permit applicant, or permittee by certified mail of the District's decision on the reconsideration request. B. Any user, permit applicant, or permittee adversely affected by the District's decision on the reconsideration request, may file an appeal in accordance with Sections 618 and 621 of the District's Wastewater Discharge Regulations. TABLE E ADMINISTRATIVE FEES AND CHARGES RELATING TO PERMITTEES Permit Fees Charges Per year 2018-19 2019-20 2020-21 2021-22 2022-23 A. Class I/Certified Discharger $ 945.00 $1,105.00 $1,265.00 $1,425.00 $1,585.00 OCSD-51-4 B. Class II $ 240.00 $ 310.00 $ 380.00 $ 450.00 $ 520.00 C. SPDP' $1,072.00 $1,094.00 $1,116.00 $1,138.00 $1,160.00 SPDP Renewal $ 760.00 $ 775.00 $ 785.00 $ 795.00 $ 810.00 D. Wastehauler $ 190.00 $ 190.00 $ 190.00 $ 190.00 $ 190.00 E. Certified Zero/No Discharge $ 120.00 $ 120.00 $ 120.00 $ 120.00 $ 120.00 New permit only-add nonrefundable deposit for first 1 million gallons as defined in Table G Wastehauler Fees Charges F. Permit Decal Initial Issue $ 25.00 G. Permit Decal Replacement $ 50.00 H. Entry Card Initial Issue $ 50.00 I. Entry Card Replacement $100.00 J. Aker Hours Discharge- Prearranged $102.00/event K. After Hours Discharge- Emergency $165.00/event Administrative/Processing Fees Charges L. OCSD's Collection of Water Consumption Data $ 500.00/permit M. Appeal Hearing Filing Fee $ 800.00/appeal N. Late Application (30 days or less from expiration date) $ 500.00 O. Late Application (15 days or less from expiration date) $1,000.00 TABLE F INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Charge Cost of Processing and Sampling Following a Minor Violation $200.00/event Cost of Processing and Sampling Following a Ma or Violation $400.00/event Non-Compliance Resampling Fee $275.00/event Cost of Analysis Heavy Metals: $ 50.00/each - Aluminum - Antimony - Arsenic - Cadmium - Chromium - Copper - Gold - Lead - Molybdenum - Nickel - Palladrum OCSD-51-5 TABLE F (CONTINUED) INDUSTRIAL DISCHARGER, SOURCE CONTROL AND NON-COMPLIANCE SAMPLING FEES Platinum Selenium Silver Thallium Zinc Charge Mercury $ 85.00 601/602 $152.00 604 $223.00 606 $254.00 608 $523.00 610 $ 73.00 612 $200.00 624 $355.00 625 $661.00 Ammonia Analysis as Nitrogen $ 32.00 Biochemical Oxygen Demand (BOD) $ 49.00 BOO and Suspended Solids (SS) Analysis $ 97.00 Chemical Oxygen Demand $ 33.00 Conductivity $ 65.00 Cyanide (Amenable) $146.00 Dissolved Mineral Solids $ 15.00 Gamma Radiation Determination $286.00 Gross Alpha and Beta Determination $ 34.00 Tritium Determination $123.00 Oil & Grease (Hexane Soluble Matter) $ 81.00 Oil & Grease (Mineral Partition) $ 81.00 Total Organic Nitrogen $ 65.00 pH $ 32.00 Fluoride $ 49.00 Suspended Solids (Total) $ 49.00 Suspended Solids (Total and Volatile) $146.00 Total Dissolved Solids $ 49.00 Total Sulfides $ 69.00 SELF-MONITORING AND DATA REPORTING NON-COMPLIANCE Cost of Processing and Issuing Significant Non-Compliance Notification $165.00 Cost of Processing Annual SNC and Publication $485.00 Non-Compliance Appeal Filing Fee* $150.00 *Filing Fee will be refunded if customer wins appeal OCSD-51-6 TABLE G CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and ll 2018-19 2019-20 2020-21 2021-22 2022-23 Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22 B.O.D. (**) $ 658.09 $ 661.39 $ 664.69 $ 667.99 $ 671.28 S.S. (***) $ 716.60 $ 736.73 $ 756.86 $ 777.00 $ 797.14 Special Purpose Discharge Permit 2018-19 2019-20 2020-21 2021-22 2022-23 Flow (*) $1,433.49 $1,489.42 $1,545.35 $1,601.28 $1,657.22 (*) Flow Per million gallons of Flow (**) B.O.D. Per thousand pounds of Biochemical Oxygen Demand (***)S.S. Per thousand pounds of Suspended Solids All properties located within Revenue Area No. 14 pay no annual service fees. The District's costs relating to providing service to these properties are billed by the District directly to the Irvine Ranch Water District, the local agency providing the local sewer service. TABLE H WASTEHAULER CHARGES FOR USE 2018-19 2019-20 2020-21 2021-22 2022-23 Within OCSD Boundaries $0.06 $0.07 $0.08 $0.09 $0.09 Outside OCSD Boundaries** $0.14 $0.16 $0.18 $0.20 $0.22 (*) per gallon (**) Outside District boundaries and inside the District service area or authorized by the District's General Manager Waste hauled from a source that is not within the District's service area is prohibited unless authorized by the General Manager. Service area is defined as any area the OCSD has an agreement to serve. OCSD-51-7 ARTICLE IV MISCELLANEOUS Section 4.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District's Wastewater Discharge Regulations for use of the District's sewage facilities, including provisions for payment of charges or fees related thereto; the District's ordinance establishing Fees Concerning Annexations of Territory to the District; and any other District Ordinances and Resolutions not in conflict herewith. Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 4.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport, treatment and disposal of wastewaters originating within areas outside of the District if it is in the best interest of the District to do so. These Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: SECTION II. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018. SECTION IV. Repeal. Ordinance No. OCSD-40 and No. OCSD-42 are hereby repealed. SECTION V. Certification and publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. OCSD-51-8 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018. Gregory C. Sebourn, PLS Chairman, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District APPROVED AS TO FORM: Bradley R. Hogin General Counsel Orange County Sanitation District OCSD-51-9 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-51 was introduced for first reading at a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, 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 28th day of March, 2018. Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District OCSD-51-10 OPERATIONS COMMITTEE Melting D310 TOBE.Or Dir. 03/07/18 03/28/18 AGENDA REPORT ItemNumber Item Number z 7 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO. 2, PROJECT NO. P2-123 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Spec Services, Inc. for the Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, for an amount not to exceed $668,217; and B. Approve a contingency of$66,822 (10%). BACKGROUND Orange County Sanitation District (Sanitation District) Plant No. 2 has two biological secondary treatment facilities, one of which is the High Purity Oxygen Activated Sludge Plant, with a rated capacity of 90 million gallons per day, which is approximately 60% of the Plant No. 2 rated capacity. This Plant was built in the mid-1980s and includes 1,800 feet of sludge return piping and appurtenances ranging in size from 4 inches to 36 inches. RELEVANT STANDARDS Protection of Orange County Sanitation District assets • 24/7/365 treatment plant reliability PROBLEM The return activated sludge piping system is severely corroded and has had numerous corrosion-related leaks resulting in process interruptions and the expenditure of staff time for repairs. The corrosion is significant enough that a sudden leak could be a safety issue in the tunnel system. PROPOSED SOLUTION Replace the return activated sludge piping and valves. The services of a design consulting firm are required to complete this work. Page 1 of 4 TIMING CONCERNS A sudden pipeline rupture could present a safety issue for Operations staff. The loss of a section of piping could also lead to a short-term loss of operational flexibility in the aeration basin facilities. RAMIFICATIONS OF NOT TAKING ACTION Reliability of the treatment process will suffer and Maintenance staff will be required to make inefficient, unplanned repairs to maintain the full operational ability of the aeration basin facilities. A sudden pipeline rupture is a risk to staff and equipment in the tunnel system. PRIOR COMMITTEE/BOARD ACTIONS April 2017 - The Board established a project for Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, and a budget of$15,000,000. ADDITIONAL INFORMATION Consultant Selection: The Sanitation District requested and advertised for proposals for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 2, Project No. P2-123, on October 31, 2017. The following evaluation criterion were described in the Request for Proposals (RFP) and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 20% Related Project Experience 40% Project Team and Staff Qualifications 40% Six proposals were received on November 30, 2017 and evaluated in accordance with the evaluation process set forth in the Sanitation District's Purchasing Ordinance, by a pre-selected Evaluation Team consisting of the following Sanitation District's staff. Don Stokes Maintenance Superintendent William Cassidy Engineering Supervisor Rich Leon Project Manager The Evaluation Team also included one non-voting technical advisor from Sanitation District staff and one non-voting representative from the Contracts Administration Division. Following scoring by the Evaluation Team,four consultants were shortlisted for interviews on December 14, 2017. Following the interview, each member of the Evaluation Team Page 2 of 4 ranked the consultants based on both the proposal and interviews using the evaluation criteria and weighting described above. Based on the ranking shown below, Spec Services, Inc. was selected as the most qualified Consultant. AECOM Consultant Technical Atkins North CDM Smith, Spec Evaluator Services Inc. America, Inc. Inc. Services Inc. Evaluator 1 4 2 3 1 Evaluator 2 4 2 3 1 Evaluator 3 3 2 4 1 Combined 4 2 3 1 Rankin Spec Services, Inc. was selected based on the strength of their team experience and their ability to identify and focus on important Sanitation District concerns of the project. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with the Sanitation District's Purchasing Ordinance, the fee proposal of only the highest-ranked firm was opened after approval by the Director of Engineering of the Evaluation Team's recommendation. Staff conducted negotiations with Spec Services, Inc. to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. A total of two meetings were held with the top-ranked proposer, Spec Services, Inc., to review, in detail, each project element, the assumptions regarding the project elements, the requirements of each task in the scope, and the basis for estimating the associated level of effort. Sanitation District staff clarified the Sanitation District's standards for construction documents. The clarification resulted in a significant reduction in the number of design documents and the level of detail contained within each document. Original Fee Proposal Negotiated Fee Total Hours 6,991 3,970 Total Fee $1,207,468 $668,217 The Consultant's fringe and overhead costs, which factor into the billing rate, have been substantiated. The contract profit is 9.36%, which is based on an established formula based on the Sanitation District's standard design agreements. Page 3 d 4 Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Design Services Agreement to Spec Services, Inc. CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in CEQA Guidelines (14 California Code of Regulations) Sections 15301. Section 15301 (Class 1) exempts from CEQA projects involving "the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination." This exemption includes, but is not limited to, projects involving "[b] Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project is exempt because it involves repairs and minor replacement of existing facilities involving no expansion of use or capacity. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted (Budget Update FY2017-18, Page A-14) and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Professional Design Services Agreement RL:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 28' day of March, 2018 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT', and SPEC SERVICES, INC., for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for Return Activated Sludge Piping Replacement at Plant No. 2, Project No. 152-123; and to provide Design services for analyzing the existing Return Activated Sludge (RAS) piping system and preparing drawings to span the limits of the work to show the demolition and replacement of the piping and appurtenances; and, 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 March 28, 2018 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT Ordinance No. OCSD-47 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. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. CONSULTANT PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 1 of 19 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 one hundred percent (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 and agreed to with CONSULTANT. 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 twenty-five (25) 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 (1) 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 (2) brand names of products that are capable of meeting the functional requirements applicable to the project. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 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 Hundred Sixty-Eight Thousand Two Hundred Seventeen Dollars ($668,217). 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 Subconsultants 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 ten percent (10%). Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between ten percent(10%)and five percent (5%). For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be five percent(5%). Addenda shall PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 3 of 19 be governed by the same maximum Profit percentage after adding consulting services fees. 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. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications to the Scope of Work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to Attachment"D"Allowable Direct Costs for payment information. H. 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 PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 4 of 19 the IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Services Administration's website at http://www.gsa.gov/oortal/category/104711#. The CONSULTANT shall be responsible for the most economical and practical means of 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. 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 general 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 the 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. I. Limitation of Costs 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 PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 5 of 19 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. 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 and not to exceed sixty(60) days 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 it. The percentage of the work accomplished for each project element. The SANITATION DISTRICT's Director of Engineering may, at his or her 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. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 6 of 19 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 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. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 7 of 19 CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 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. PDSA PROJECT NO. P2423 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 8 of 19 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. 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: One Million Dollars ($1,000,000) per occurrence with One Million Dollars ($1,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, 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. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 9 of 19 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 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 Two Million Dollars ($2,000,000) 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. PDSA PROJECT NO. P2423 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 10 of 19 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: • 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 PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 11 of 19 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 the SANITATION DISTRICT's Risk Management Division, 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. 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, with the exception of 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. PDSA PROJECT NO. P2423 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 12 of 19 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. 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. 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 PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 13 of 19 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 fifteen (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 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: Larry Roberson, Senior Contracts Administrator Copy: Richard Leon, Project Manager Notices shall be mailed to CONSULTANT at: SPEC SERVICES, INC 10540 Talbert Avenue, Suite 100 East Fountain Valley, CA 92708 Attention: Nathan VanderBeek, Director of Operations Copy: Brett Kelley, Project Manager All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 14 of 19 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. 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. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 15 of 19 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth (10d')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. 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 and agreed to with CONSULTANT, 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 parry 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. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 16 of 19 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 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 SANITATION 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. 25. COMPLIANCE WITH OCSD POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all OCSD policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. PDSA PROJECT NO. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 17 of 19 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 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. P2-123 Revised 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 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. SPEC SERVICES, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Clerk of the Board Date By Contracts, Purchasing and Materials Date Management 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 & Summary Attachment"J"— Not Attached Attachment"K"—Hourly Rate Schedule for Minor Subconsultant Attachment"L"—OCSD Safety Standards LDR:ms PDSA PROJECT NO. P2-123 Remed 091217 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO.2 Page 19 of 19 OPERATIONS COMMITTEE Meeting Date TOBE.Or Dir. 03/07/18 03/28/18 AGENDA REPORT Item Item Number 3 8 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 GENERAL MANAGER'S RECOMMENDATION A. Approve a contingency increase of$856,800 (12%)to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1- 101, for a total contingency amount of$2,142,000 (30%); and B. Direct staff to prepare a detailed report describing the project including significant design, construction and commission issues, and how the issues were resolved (i.e. lessons learned). BACKGROUND Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, replaces existing solids dewatering, sludge thickening, and odor control systems at the Orange County Sanitation District (Sanitation District) Plant No. 1. The objectives of the project include the following: 1. Additional solids handling capacity to support expansion of the Ground Water Replenishment System (GWRS). 2. Replacement of aging sludge dewatering facilities built in the late 1970s and early 1980s. 3. Lowering biosolids management costs by $3.6 milion per year by reducing water content. 4. Improving sludge thickening to avoid the need to construct new digesters. HDR Engineering, Inc. was awarded a Professional Consultant Services Agreement for engineering support services during construction, including reviewing contractor submittals, responding to requests for information, preparing design modifications, and providing other services needed of the original design firm. This support is essential for successful completion of the project. In April 2017, the Board approved a Consultant contingency increase related to construction delays and unexpected complexities which resulted in significantly more Page 1 d 4 requests for information and design changes. This increase was based on the expectation at the time that construction would be finishing and commissioning beginning in September 2017. Now, commissioning is expected to begin in earnest in late March 2018. Consultant costs are being incurred proportionally with the delay. At the time, the Professional Consultant Services Agreement was negotiated, the expectation was that operational expertise and engineering support during commissioning could be provided by Sanitation District staff. In the following years, staff has concluded that commissioning and startup will be more complex than originally envisioned, and that those activities involve substantial risks such as delays and claims, operational impacts, and unsustainable demands on operational staff. For this reason, staff recommends utilizing commissioning support from the Consultant's process startup specialist during the commissioning phase of the project. This specialist has a proven track record with the Sanitation District. RELEVANT STANDARDS • Sound engineering and accounting practices, complying with local, state and federal laws PROBLEM There is insufficient Consultant contract contingency to fund the engineering support services through the construction phase of the project and for the commissioning specialist support during commissioning. PROPOSED SOLUTION Increase the Consultant contract contingency. TIMING CONCERNS Construction is nearing completion and commissioning activities are ramping up. To complete all remaining work and address any unknown conditions that arise, the additional consultant services are needed such that design clarifications can be addressed timely, commissioning can progress as scheduled without delay to the project, and the new facilities can be commissioned successfully. RAMIFICATIONS OF NOT TAKING ACTION The current contingency is insufficient to cover the projected costs for Consultant support needed to complete the project. Without the additional funds, construction and commissioning activities would be severely hampered and project delays would be incurred. Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS February 2017 -Approved a contingency increase of$714,000 (10%)to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. 131-101, for a total contingency amount of$1,285,200 (18%). April 2012 - Approved a Professional Consultant Services Agreement with HDR Engineering, Inc. to provide bid and construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for an amount not to exceed $7,140,000, and approved a contingency of$571,200 (8%). November2011 -Authorized the General Managerto negotiate a Professional Consultant Services Agreement with HDR Engineering, Inc. for engineering support services during construction of Project No. P1-101, Sludge Dewatering and Odor Control at Plant No. 1. ADDITIONAL INFORMATION N/A CEQA Construction of this project is within the scope of the Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project dated March 2005. The Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project, supplementing the Sanitation District's Strategic Plan Program Environmental Impact Report (PEIR), was certified in October 1999. Pursuant to CEQA Guidelines section 15168(c)(4), the Sanitation District has used a written checklist to document its evaluation of the project and has determined that the project is still within the scope of program EIR. In addition, the project was determined to be eligible for a categorical exclusion under the National Environmental Pollution Act (NEPA) in June 2006. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (FY2016-17 and 2017-18), Section 8, Page 50, and the budget is sufficient for this action. Staff is currently evaluating the likely cost to complete the project including additional staff costs, potential additional construction costs, and this request. Based on that evaluation, staff will request the appropriate budget adjustment as part of the annual budget development and approval process. Date of Aooroval Contract Amount Continaencv 04/25/12 $7,140,000 $ 571,200 (8%) 02/22/17 $ 714,000 (10%) 03/28/18 $ 856,800 (12%) $ 2,142,000 (30%) Page 3 d4 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (mmocsd.corn with the complete agenda package: Presentation from 3/7/18 Operations Committee meeting AL:JM:dm:gc Page 4 d4 `yl u - i- - ua. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1 PROJECT NO. P1-101 '_-- • • • 1 f I - .. 2018 ti - y L 1 Plant No . 1 Before P1 -100 & P1-101 Projects PRIMARY CLARIFIER DIGESTER BELT FILTER PRESSES CAKE CAKE Q STORAGE LOADOUT DISSOLVED AIR SECONDARY FLOTATION CLARIFIER THICKENERS After P1 -100 & P1 -101 Proiects Replacement PRIMARY THICKENING Replacement Rehabilitation CLARIFIER CENTRIFUGE DIGESTER - DEWATERNG CAKE CAKE CENTRIFUGE STORAGE LOADOUT SECONDARY CLARIFIER • Fiber& PLCs Secondary Truck Thickening-Mix, Age Sludge Cake Drainage and System Load-Out and Feed Polymer Conveyance Slop Pump • Electrical System Trickling Filter Systems System Systems • Cake Silos 1& 3 Sludge Pump 1 Dewatering- Mix,Age Centrate System Industrial Water • Cake Silos 2&4 Trickling Filter and Feed Polymer Sludge Cake Booster Pumps • Silo Foul Air Sludge Pump 2 System Transfer System System Collection System Trickling Filter Caustic Soda Bulk Foul Air Collection Water Softener • Permanent/ Sludge Valve Storage& Feed System Systems System Primary Truck (Suction Side) Sulfuric Acid Bulk Odor Control Bridge Crane Load-Out • Trickling Filter Storage& Feed System System System • Secondary Truck Sludge Valve Thickening Centrifuge Bleach Facility Power Building Load-Out Foul Air (Discharge Side) System Pumps A&D 2 (Engine Collection System • Sludge Feed System Thickened Sludge Bleach Facility Generator) (PS, WAS,SW,TFS) Transfer System Pumps B&C • HVAC System Blend Tanks Dewatering Centrifuge Security System Bulk Storage System Fire Alarm Polymer Systems System I nprl�.'�-" Current Progress • Construction 97% complete • Structural and mechanical work complete • Detailed commissioning plans prepared • Current focus is electrical terminations Project Challenges • o � i►ill 1 � � 7��={ r , .�, 50 / more control points than the two big secondarysj � expansion projects , combined • 25% of Plant 1 control points ru "w • Complications of cake pump changes • 37 systems are spread over 50 control panels m Schedule Update Projection Feb 2017 Projection Start Commissioning Sep 2017 Mar 2018 Dewatering Centrifuges Jun 2018 Feb 2019 Thickening Centrifuges Jun 2018 Jun 2019 Demolition Complete Oct 2018 Jun 2019 • Schedule has slipped 8 months in a year • Mitigation Measures — Management Oversight Committee — Panel Task Force — Streamlined commissioning procedures O&M Staffing Challenges • Centrifuges are all new to staff • Both new and old dewatering system must be operated during startup and optimization • Startup of Plant 2 centrifuge will coincide J rl i' Al Consultant Costs • Longer duration and unanticipated complexity • Commissioning support from process startup specialist • Discretionary, but highly recommended • Key to mitigating startup risks (delays, claims, process failures, staff limitations) • Jorj Long has a long track record with other complex Sanitation District startups • Already involved in project • Very effective at training staff Project Budget Considerations • Currently project budget is $ 188,328,000 • Additional budget may be needed • Remaining uncertainties • Completion schedule • Global settlement with Contractor • Staff currently evaluating for annual budget validation Recommended Action • Approve a contingency increase of $856,800 ( 12%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No . 1, Project No . P1- 101, for a total contingency amount of $2, 142,000 (30%) . OPERATIONS COMMITTEE Melting D310 TOBE.Of Dir. 03/07/18 03/28/18 AGENDA REPORT Item Item Number 5 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: EAST BASIN DISTRIBUTION BOX REPAIR, PROJECT NO. FE16-10 GENERAL MANAGER'S RECOMMENDATION A. Award a construction contract to Howard Ridley Company, Inc. for the East Basin Distribution Box Repair, Project No. FE16-10, for a total amount not to exceed $529,350; and B. Approve a contingency of$52,935 (10%). BACKGROUND Orange County Sanitation District's (Sanitation District) Plant No. 1 includes two parallel trains of primary clarifiers; one set of circular clarifiers built in 1959 and one set of rectangular clarifiers built in 1992 and expanded in 2003. A recent concept report determined that the circular clarifiers are in very poor condition and should be replaced rather than rehabilitated. Replacement of these clarifiers will be performed as part of the Primary Clarifier Replacement and Improvements at Plant No. 1, Project No. P1-126, which is currently scheduled to start construction in December 2023. The East Basin Distribution Box (EBDB) is used to distribute flow to the circular clarifiers. A recent condition assessment of this structure concluded that the upper interior wall surfaces and top deck are deteriorated, creating an unsafe environment for operating and maintaining the diversion gates. As a result, the circular clarifiers have been removed from service indefinitely. RELEVANT STANDARDS • Protection of Orange County Sanitation District assets • 24/7/365 treatment plant reliability PROBLEM The deteriorated condition of the EBDB creates an unsafe environment and no longer supports operation of Primary Clarifier Nos. 3, 4, and 5. As a result, this treatment train is removed from normal service. Page 1 of 3 PROPOSED SOLUTION The East Basin Distribution Box Repair, Project No. FE16-10, will repair the distribution box by removing and replacing the deteriorated concrete, stop plate guides, weir troughs, and fiberglass reinforced plastic covers. These repairs will restore the EBDB to a condition that will allow the circular clarifiers to be placed back into service. TIMING CONCERNS Operation of the circular primary clarifiers will allow up to 36-mgd of wastewater flow to be diverted from the rectangular clarifiers. This is critical to support operation and maintenance of the rectangular clarifiers and to maintain hydraulic capacity of Plant No. 1. It is recommended this work occur during the dry-weather season between April 1, 2018 and October 1, 2018, prior to the next wet weather season. RAMIFICATIONS OF NOT TAKING ACTION Not performing these repairs to the EBDB will prevent the Sanitation District from placing Primary Clarifier Nos. 3, 4, and 5 in service. This could ultimately impact the ability to perform routine maintenance in the rectangular clarifiers and create risk in high-flow situations. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised for bids on December 6, 2017, and two sealed bids were received on January 25, 2018. A summary of the bid opening with one additive bid item follows: Engineer's Estimate $500,000 Bidder Amount of Bid Howard Ridley Company, Inc. $529,980 Interlog HYM Engineering $541,200 The bids were evaluated in accordance with the Sanitation District's policies and procedures. A notice was sent to all the bidders on February 8, 2018, informing them of the intent of Sanitation District staff to recommend award of the Construction Contract to Howard Ridley Company. Staff recommends awarding a construction contract to the lowest responsive bidder, Howard Ridley Company, Inc., for East Basin Distribution Box Repair, Project No. FE16-10, for a total amount not to exceed $529,350. Page 2 of 3 The difference between the engineer's estimate and low bid price is less than 6% and staff believes that the bid was reasonable for the work involved. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination," including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project consists of repairing a corroded portion of a concrete box. The corroded concrete will be removed by chipping and sandblasting, and will be patched with epoxy grout. The project will not increase the capacity of the use of the concrete box. Section 15301(b) specifically contemplates the exemption of repairs, maintenance, or minor alterations to existing sewerage facilities, and therefore applies to the project. A Notice of Exemption will be filed with the County Clerk Recorder office following award of this agreement by the Board. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted under the Facilities Engineering Program - Plant (Budget FY2017-18 Update, Appendix, Page A-9, M-FE-PLANT) and the 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: Construction Contract JK:dm:gc Page 3 of 3 PART A CONTRACT AGREEMENT C-CA-090817 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS............................................................................................1 SECTION -2 MATERIALS AND LABOR..........................................................................................4 SECTION -3 PROJECT....................................................................................................................4 SECTION -4 PLANS AND SPECIFICATONS..................................................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION....................................................5 SECTION -6 TIME IS OF THE ESSENCE.......................................................................................5 SECTION -7 EXCUSABLE DELAYS................................................................................................6 SECTION -8 EXTRA WORK............................................................................................................6 SECTION -9 CHANGES IN PROJECT............................................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.......................................................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT...................................................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS.................9 SECTION - 13 COMPLETION...........................................................................................................10 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.................................................10 SECTION - 15 SURETY BONDS......................................................................................................12 SECTION - 16 INSURANCE.............................................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION.................................................................................22 SECTION - 18 TERMINATION..........................................................................................................22 SECTION - 19 WARRANTY..............................................................................................................23 SECTION -20 ASSIGNMENT...........................................................................................................24 SECTION -21 RESOLUTION OF DISPUTES..................................................................................24 SECTION -22 SAFETY& HEALTH..................................................................................................24 SECTION -23 NOTICES ..................................................................................................................25 C-CA-090817 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR THIS AGREEMENT is made and entered into, to be effective, this March 28, 2018, by and between Howard Ridley Co., Inc., hereinafter referred to as "CONTRACTOR"and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 1 of 26 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans iIL General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR'S Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 2 of 26 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 3 of 26 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION-3 PROJECT The Project is described as: PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 4 of 25 SECTION -4 PLANS AND SPECIFICATIONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION—5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within one hundred fifty-seven (157) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes five (5)calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION—6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 5 of 26 the various portions of the Work shall be installed or the priority of the work of subcontractors, and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 6 of 26 SECTION — 9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER Initiated Changes". SECTION—10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Five Hundred Twenty-Nine Thousand Three Hundred Fifty Dollars ($529,350)as itemized on the Attached Exhibit"X. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 7 of 26 Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but not limited to Sections entitled "Mobilization Payment Requirements' and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4)week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 8 of 26 B. As used in this Section, the following defined terms shall have the following meanings: 1. "Net Progress Payment' means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment' means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount'for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 9 of 26 SECTION - 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION-14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 10 of 26 agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 11 of 26 required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. F. Registration: Record of Wages: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION-15 SURETYBONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%)of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 12 of 26 Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 13 of 26 CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premises/worksite without possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirements) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Three Million Dollars ($3,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 14 of 26 b. Products and Completed Operations, with limits of at least Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Three Million Dollars ($3,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 15 of 26 h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile 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: Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and Two Million Dollars ($2,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. 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 automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Emolover's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employer's liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 16 of 26 liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least One Million Dollars ($1,000,000) and shall apply to sudden and non-sudden pollution conditions CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 17 of 26 (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 18 of 26 a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. 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 by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20)days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 19 of 26 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20)days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 20 of 26 F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured"on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 21 of 26 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION — 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION-18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 22 of 26 manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION—19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 23 of 26 SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 24 of 26 SECTION-23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: Howard Ridley Co., Inc. 3936 Chino Avenue Chino, CA 91710 Copy to: Thomas Ridley, Corporate Secretary Howard Ridley Co., Inc. 3936 Chino Avenue Chino, CA 91710 CONFORMED C-CA-090817 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 25 of 26 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Howard Ridley Co., Inc. 3936 Chino Avenue Chino, CA 91710 By Printed Name Its CONTRACTOR's State License No. 304198 (Expiration Date—7/31/2018) OCSD: Orange County Sanitation District By Gregory C. Sebourn, PLS Chair, Board of Directors By Kelly A. Lore Clerk of the Board By Marc Dubois Contracts, Purchasing and Materials Management Manager C-CA-090817 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 26 of 26 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION ...........................................................................1 EXA-2 PROGRESS PAYMENTS.................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS.......................................................1 EXA-4 STOP PAYMENT NOTICE...............................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS...............................................................3 EXA-6 PAYMENT OF TAXES......................................................................................3 EXA-7 FINAL PAYMENT.............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT....5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES..................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESS PAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General", 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment—Mobilization Payment Requirements;" 5. General Conditions—"Payment—Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments'; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. CONFORMED C-EXA-080414 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty(20) calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%) of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code §9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7)days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. CONFORMED C-EXA-080414 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR(per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent(150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent(125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract (per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty(30) days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; CONFORMED C-EXA-080414 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Acts to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Act and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractor's performance. Name Title Date CONFORMED C-EXA-080414 PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (Howard Ridley Co., Inc.): BF-14 Schedule of Prices C-EXA-080414 CONFORMED PROJECT NO. FE16-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 8 of 8 Bid Submitted By: Howard Ridley Co.. Inc. (Name of R m) BF44 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work, whether they be more or less than those shown. CONTRACTOR'S compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSD via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks.Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total price for each item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid Price shall include all costs to complete the Work. including Profit, overhead, etc., unless otherwise specified in the Contract Documents All applicable sales taxes, state and/or federal, and any other special taxes, patent rights or royalties shall be included in the Prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID.THE LOWEST BID IS DEFINED AS THE"TOTAL AMOUNT OF BID"LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials,equipment and services for the construction of the Project per the Contract Documents. Note 2: The Additive Bid Item will be used to determine the lowest Responsive, Responsible Bidder. Additive items will not be included as part of the initial award amount. In the event that OCSD elects to add the Additive Bid Item, it will do so via change order(s). Refer to Part C— SPECIAL PROVISIONS. All Work in the Contract Documents shall be included in Base Bid Items. The Additive Bid Item is for Work either not specifically shown or in excess of quantities shown in the Contract Documents. The Contractor shall provide a unit price and extended total price for each Additive Bid Item. Bidders shall accurately reflect the cost to perform the Work. OCSD may reject unbalanced Bids. Refer to Part 2—INSTRUCTIONS TO BIDDERS. BF-14 SCHEDULE OF PRICES C-BF-050517 ADDENDUM NO. 1 PROJECT NO.FE76-10 FAST BASIN DISTRIBUTION BOX REPAIR Page 2 of 4 B. Bid Item 2—Construction of East Basin Distribution Box Repair 1. Description: This Item includes all labor, materials and equipment necessary for the completion of the Contract Work for The Eastside Basin Distribution Box Repair, in conformance with the Contract Documents. 2. Measurement and Payment:The lump sum payment for this Item will be apportioned each billing cycle according to actual percentage of completion, and will be full compensation for providing all Work complete as indicated in the ContractDocuments. 3. In addition, CONTRACTOR'S attention is directed to the specificconstruction requirements,which include but are not limited to thefollowing: a. Remove and disposes of odor control cover and supportframing. b. Protect in place or temporarily remove all the existing pipe, handrail, foul air duct, utilities and etc. C. Remove and dispose of deteriorated interior concrete, embedded steel stop plate guides,weir trough. d. Repair concrete, install new stop plate guide, install new weir trough, and install new FRP cover. e. Reconnect and restore all the existing pipe, valves, wiring, handrail, ublitiesand etc. f. Assist OCSD for startup activities. 1.4 ADDITIVE BID ITEMS The Bid Form includes Additive Bid Items which provide unit prices forte hems as shown on the Contract Documents.This item will be paid on a unit basis based on actual quantity of work performed as verified by theENGINEER. PART 1 - PRODUCTS(NOT USED) PART 2- EXECUTION(NOT USED) EAST BASIN DISTRIBUTION BOX REPAIR MEASUREMENT AND PAYMENT Project No. FE16-10 Addendum No.1 011553 Bid Submitted By: Iln. nid Ridley Co.. Inc. (Name of Firm) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS (Refer to Note 1 in the Instructions): No Description Ma surern I EUnit of x en Price 1 Mobilization, initial progress payment for all fees, labor, materials and equipment required for mobilization, Jd 1 staging area, and surety bonds, and other activities in conformance with the Contract Documents, not to Lump Sum $ n exceed four percent(4%)of the contract amount, for the lump sum price of... � 2. 1Furnish all labor, materials and equipment necessary for the completion of the Contract Work, except for the Work specified for Bid Item 1, in conformance with the Contract Documents,for a lump sum price of: j Lump Sum $ p g f SUBTOTAL BASE BID ITEMS NO.1 AND NO.2(AWARD AMOUNT) q, 3 5 D, ADDITIVE BID ITEMS (Refer to Note 2 in the Instructions): Item Description Unit of APprox Unit Price Extended Price No. Measurement I Qty A Repair corroded rebar based on Sheet S5001.Assume for bidding purposes one gp_ xo location, two feel of corroded rebar, and using two rebar couplers. Bid Item pricing EA 1 $to include concrete removal and replacement as well as rebar repair with couplers. ao SUBTOTAL ADDITIVE BID ITEMS NO.A $ (.�30. BF-14 SCHEDULE OF PRICES C-BF-050517 ADDENDUM NO. 1 PROJECT NO.FE15-10 EAST BASIN DISTRIBUTION BOX REPAIR Page 3 of 4 \b\e Bidd` \ Do C " w P a ,'B' \cemta�' c e to'+�ast' the POO �p\lY tMSolof o ew pW\\\ \nt 6"E° oowe0d�is P"ce oi ta � io POW the award \Pe°ApD Z ve.tea°�itP^oa a"d B�ems No Kg N 9pR\�t°� sPE� o"th U d�She\\PTovk1 ks sa na C gan9e°rdor �shod"`" "t� Ol �\w� o �e TO04 Q��b� U� of SO (Bpi� A� � olO am SotA< �,of fo 10 PROJEO' 7r.REPA\P F1't-�'VN p\SCP\0US ease 4 of§ pu`E OF PFt\GE`.a BEp OMµ01 OPERATIONS COMMITTEE Meeting Date TOBd 011Dir. 03/07/18 03/28/18 AGENDA REPORT Item Number Item Nu bar 7 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to Dresser-Rand for the assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount not to exceed $245,424, including applicable tax and freight; and B. Approve a contingency of$49,085 (20%). BACKGROUND Orange County Sanitation District (Sanitation District) operates eight Central Generation (Cen Gen) engines manufactured by Cooper Bessemer at both treatment plants. The engines generate approximately two-thirds of our electric demand and the majority of the process heat demand, which is used in the solids digestion process. At Plant No. 2, a Murray Steam Turbine is employed to take advantage of the exhaust heat generated by the engines to convert the waste heat into electrical energy. Waste heat recovery by the steam turbine is especially important approximately 10 months out of the year due to the reduced heat demand of the plant. The steam turbine unit captures the engine waste heat and uses it to generate electricity for use at Plant No. 2. This amounts to annual savings of approximately $125,000, which otherwise would be incurred as an additional annual cost for electricity purchases. If the steam turbine is not utilized, the excess heat cannot be captured and must be expelled to the environment. RELEVANT STANDARDS • Protection of Orange County Sanitation District assets • Maintain a proactive asset management program • Use all practical and effective means for recovering energy • Provide a safe and collegial workplace PROBLEM The Plant No. 2 steam turbine requires a major overhaul and has been in operation for approximately 175,000 hours, with 70,000 hours (i.e. 8 years) transpiring since the last overhaul. It is pertinent that a thorough assessment of the steam turbine and Page 1 of 2 supporting safety systems is performed to identify, address, and rehabilitate any deficiencies accordingly. PROPOSED SOLUTION Staff recommends Dresser-Rand to perform an assessment and comprehensive overhaul of the steam turbine at Plant No. 2, to ensure safe and reliable operation of the system as a whole. TIMING CONCERNS Without the steam turbine available, consistent steam Flow control is hampered for the engine heat recovery system during certain operating conditions resulting in potentially costly repairs to the engine exhaust steam boilers and emissions system components. RAMIFICATIONS OF NOT TAKING ACTION Failure to take action on this repair will inhibit the ability to salvage waste heat for electricity generation, resulting in an annual cost of approximately $125,000 for additional electricity purchases. In addition, the steam turbine helps to balance the steam system, improving the safety and integrity of the steam system as a whole. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Dresser-Rand acquired the Murray Steam Turbine brand in a 2006 company acquisition. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted in the FY17/18 Updated Budget (Line item: Repairs and Maintenance, Page 49). Date of Approval Contract Amount Contingency 0 312 812 01 8 $245,424 $49,085(20%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 2 d 2 OPERATIONS COMMITTEE Medlin,Date To Bd.Of Dir. 03/07/18 03/28/18 AGENDA REPORT I em Number I em Number s u Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: SITE ACCESS AND LICENSE AGREEMENT — BREA DOSING STATION GENERAL MANAGER'S RECOMMENDATION A. Approve a new Site Access and License agreement with Pacific Quality Partners to lease property for the purpose of installing, maintaining, and operating a chemical dosing station at 1355 West Imperial Highway in the city of Brea, for a term of 36 months, at the following lease terms, in a form approved by General Counsel: • April 22, 2018 through April 21, 2019, $2,500 per month • April 22, 2019 through April 21, 2020, $2,560 per month • April 22, 2020 through April 21, 2021, $2,620 per month; and B. Authorize the General Manager or designee to negotiate and subsequently award an option for an additional 36 month lease renewal period beginning April 22, 2021. SUMMARY Orange County Sanitation District (Sanitation District) currently uses chemicals for corrosion and odor control in its collection system, which also helps reduce the level of odors at the treatment plants. One of the Sanitation Districts's continuous chemical dosing locations is in the city of Brea, where we have leased property since 2010. The current lease expires in April 2018 and staff recommends renewal of this lease. This Brea chemical dosing site reduces odors in Buena Park, La Habra, La Palma, Anaheim, Stanton, Cypress, Garden Grove, and Westminster as well as reducing the amount of chemical needed further downstream in the Knott Trunk sewer. PRIOR COMMITTEE/BOARD ACTIONS April 2015 - The Board approved a Site Access and License agreement with Pacific Quality Partners, to allow mobilization of a chemical dosing station and injection of chemicals at 1355 West Imperial Highway in the city of Brea, for a term of 36 months, at a total cost of $2,280 per month for the first 12 months, in a form approved by General Counsel;and approved the General Manager, or his designee,to negotiate future monthly license fees, after one year, up to three percent price escalation per year, beginning July 1, 2016 and annually therafter. December 2012 - The Board approved an amendment to the existing lease, a two year (24-month) real property lease and subterranean license agreement, with Brea Imperial Page 1 d 2 Inc. and RV Storage Depot Brea to allow mobilization of chemical dosing equipment and injection of chemicals at 1225 West Imperial Highway in Brea, with an option to extend for up to two additional years with up to a three percent price escalation per year beginning December 31, 2012 and ending December 31, 2014. December 2010 - The Board approved a real property lease, and subterranean license agreement with an option to extend, with Brea Imperial Inc. and RV Storage Depot Brea to allow mobilization of a chemical dosing station and injection of chemicals at 1225 West Imperial Highway in Brea. ADDITIONAL INFORMATION Staff negotiated this 3-year monthly lease fee. This lease fee is approximately 2.5% higher than the current lease term. CEQA The project is exempt from CEQA pursuant to CEQA's Class 3 Exemption for "New Construction or Conversion of Small Structures". BUDGET/ PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the Sanitation District's Purchasing Ordinance. ATTACHMENT The following attachment is included in hard copy and may be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package and attachments: • Site Access and License Agreement MPV:MD:ME:sr Page 2 d 2 SITE. ACCESS AND LICENSE AGREEMENT THIS SITE ACCESS AND LICENSE AGREEMENT ("Agreement") is made and entered into as of , 2018 ("Effective Date") between PACIFIC QUALITY PARTNERS, a California limited partnership ("PACIFIC"), and ORANGE COUNTY SANITATION DISTRICT, a county sanitation district organized and existing under the County Sanitation District Act, Health & Safety Code §§4700 et seq., ("OCSD"). PACIFIC and OCSD are individually or collectively referred to herein as the "Party" or the "Parties." This Agreement is made with reference to the following facts: A. PACIFIC is the fee interest owner of in the real property located at 1355 W. Imperial Highway, in the City of Brea, State of California 92821 ("Property"); and B. OCSD is responsible for safely collecting, treating and disposing of wastewater generated by more than 2.5 million people living and working within the County of Orange, State of California; and C. OCSD desires to operate a chemical dosing site on the Property, which will add ferrous chloride and/or calcium nitrate and/or magnesium hydroxide to the sewer lines existing adjacent to the Property for delivery within OCSD's facilities downstream of the Property("Dosing Site");and D. OCSD has identified a City of Brea sewer manhole immediately adjacent to the Property ("Manhole") as an ideal location for dosing into the adjacent sewer lines. E. PACIFIC desires to assist OCSD in establishing and operating the Dosing Site by allowing OCSD to access, and enter into and upon the Property. NOW, THEREFORE, in consideration of the mutual obligations, representations, and promises contained in this Agreement, the Parties hereby agree as follows: 1. Grant of Access. PACIFIC hereby grants to OCSD, its employees, consultants, representatives,contractors, subcontractors and/or agents ("Authorized Personnel") the right to use, access and enter into and upon the portion of the Property set forth in the Site Plan, attached hereto as Attachment "A" and incorporated herein by reference ("Access Area") for the purpose of establishing and operating the Dosing Site, to access the sewer line through said Manhole,to install conduit through the Manhole and into the sewer line, and to transport ferrous chloride and/or calcium nitrate and/or magnesium hydroxide for delivery within OCSD's lines downstream of the Property. 2. Dosing Site Improvements. The Dosing Site will consist of no more than two above-ground storage tanks, and a double-wall pipe through which OCSD will transport the following chemicals: ferrous chloride and/or calcium nitrate and/or magnesium hydroxide for injection into the City of Brea's local sewer system adjacent of the Property and eventual discharge into OCSD's sewer system. OCSD represents that no ferrous chloride and/orcalcium nitrate and/or magnesium hydroxide will be allowed to escape the facilities, tanks or piping into the surrounding environment. The Dosing Site layout is presented in the Plan Views,attached hereto as Attachment "B" and incorporated herein by reference. OCSD may utilize other products, chemicals, or 1297953.1 Page 1 technologies if mutually agreed upon by the Parties. 3. Cooperation. PACIFIC will cooperate with OCSD to provide access to the Property and Access Area as may be reasonably necessary to allow OCSD to operate the Dosing Site,so long as the same does not unreasonably interfere with PACIFIC's operations, or cause an undue inconvenience to PACIFIC's employees, guests, customers, tenants, occupants and invitees. 4. Term. This Agreement shall expire thirty-six (36) months from the Effective Date ("Initial Term"). OCSD may exercise an option to renew the Agreement for an additional thirty-six (36) month term if mutually agreed upon terms can be negotiated. Upon expiration of the Initial Term, this Agreement shall automatically extend and continue in full force and effect on a month-to-month basis unless and until terminated in writing by either Party. 5. Utilities. Pacific shall be responsible for providing to OCSD a source, of electricity and water on the Property. OCSD shall be responsible, at its sole cost, for routing electricity and water to the Dosing Site,and for routing discharge from the Dosing Site. 6. OCSD Promise to Pay - License. PACIFIC will bill OCSD on a monthly basis fora license fee at the following lease terms: • April 22,2018 through April 21,2019, $2,500 per month • April 22,2019 through April 21,2020, $2,560 per month • April 22,2020 through April 21,2021, $2,620 per month The sum of the monthly license fee shall include compensation for all utilities used by OCSD in connection with the dosing site. 7. Machinery&Equipment. PACIFIC authorizes OCSD,and its Authorized Personnel, to bring onto the Property such equipment and/or machinery as may be reasonably necessary to establish and operate the Dosing Site, so long as such activity is consistent with the terms and conditions stated herein. 8. Unreasonable Interference: Prior Notice. In operating the Dosing Site, OCSD shall not unreasonably interfere with PACIFIC's operations. OCSD shall give PACIFIC no less than three (3) business days' notice prior to its first entry upon the Access Area and the commencement of Dosing Site activities. PACIFIC and its employees and agents shall not interfere with, or obstruct, the Dosing Site or such entry by OCSD's Authorized Personnel, and PACIFIC shall not cause, or permit others to cause, any such interference or obstruction. 9. Restoring Condition of Access Area and the Properly. OCSD agrees: (1) to minimize, to the extent practicable, interference with the activities of PACIFIC 's employees,guests, customers, tenants, occupants and invitees on, and ingress to, and egress from, the Access Area; (2) to maintain its machinery, equipment, and other materials in an orderly manner while located on the Property; and (3) within 30 days following the expiration of the term of this Agreement, to remove from the Access Area and the Property all debris, trash, machinery, equipment and other materials and items used by OCSD or caused by it to be on the Access Area or on the Property. Additionally, OCSD agrees that at the completion of each day OCSD utilizes the Access Area, it shall restore the Access Area to as close to the same condition as existed at the commencement of that day, to the maximum extent possible. Following the expiration of the term of this Agreement,at its sole cost OCSD shall restore the Access Area to as close to the same condition as existed before OCSD's first entry upon and use of the Access 1297953.1 Page 2 Area in connection with the Dosing Site, to the maximum extent possible, and to the reasonable satisfaction of PACIFIC. At its sole cost, OCSD shall be responsible for the proper lawful disposal of all chemicals, compounds, and other products and materials it brings onto, or causes to be on, the Property. 10. Preparatory Activities. At its sole cost, OCSD agrees to assume full responsibility to perform all relevant preparatory work as it deems necessary to establish and operate the Dosing Site. OCSD also agrees to provide appropriate notification to, and to obtain all required permits from, all applicable regulatory authorities in connection therewith. It. No Nuisance. OCSD agrees that it will not maintain any public or private nuisance on the Property, and will not allow any odors, smoke, noise or objectionable elements to unreasonably affect PACIFIC's employees, agents, customers, visitors, or neighboring real property occupants or visitors. 12. Indemm . OCSD hereby agrees to indemnify, defend, save and hold PACIFIC, and its owners, partners,agents,officers,members, employees,representatives, and affiliates hamtless from, and against, all losses, costs, expenses, claims, causes of action, and damages suffered or incurred by any of them, which may arise from, pertain to, or relate to, the negligent acts or omissions, recklessness, or willful misconduct of OCSD or its Authorized Personnel in connection with the exercise of the rights granted herein. OCSD's obligation to indemnify, defend, save and hold harmless shall not apply to the extent that any such losses, costs, expenses, claims, causes of action or damages are caused by the negligence or willful misconduct of PACIFIC, or its owners, partners, agents, officers, members, employees, representatives or affiliates. 13. Safety and Site Condition. OCSD shall conduct its operations in a safe manner in compliance with all laws, including, but not limited to, environmental laws, and shall cooperate in maintaining the site in a safe, clean and orderly condition. 14. Sole Cost of OCSD. OCSD agrees that any work or activities conducted by OCSD on or beneath the Access Area and Property shall be at the sole cost and expense,of OCSD. OCSD agrees to keep the Property free and clear of all liens by paying off all subcontractors before any debt to the same becomes a matter of a lien of record against the Property. 15. Insurance. During the term of this Agreement, OCSD shall require all contractors or subcontractors, and their employees and agents,to maintain insurance with the following minimum coverage: (i) Workers Compensation with California minimum statutory limits; (it) Automobile Liability with $1,000,000 single limit, or equivalent; and, (iii) Commercial General Liability, with $2,000,000 single limit, or equivalent During the term of this Agreement, OCSD shall request each such contractor or subcontractor to provide PACIFIC with a Certificate(s) of Insurance reflecting that PACIFIC is named as an "Additional Insured" on each contractors and each subcontractor's Commercial General Liability, or similar, liability insurance policy. 16. Limited Access. OCSD agrees that entry upon the Access Area shall be limited to the extent necessary, or desirable, for the establishment and operation of the Dosing Site and/or for the purposes expressed in this Agreement. 1297953.1 Page 3 17. Temporary Use. The right to use and access granted herein is intended by the Parties, and shall be construed, as a temporary right to use the Access Area to conduct the Dosing Site upon the Property, and not as a grant of an easement or of any other legal or equitable interest in, or to, the Property. Except as expressly set forth herein, no other rights are created in OCSD by this Agreement. 18. Attorneys' Fees. If it becomes necessary for any Party to engage the services of legal counsel to institute any civil action to enforce or confirm, or to defend against, or to interpret or construe, any of provision(s) of this Agreement, the prevailing Party shall be entitled to recover from the other Party or Parties therein all of such Party's attorneys' fees, expert witness fees, other expenses and court costs as the prevailing party actually incurs in connection therewith. 19. Binding on Successors. This Agreement shall be binding upon the Parties to this Agreement, and upon their respective successors,representatives, heirs and assignees. 20. No Waiver. It is further understood and agreed that no failure or delay in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other, or further, exercise thereof, or the exercise of any right, power or privilege hereunder. A waiver of any right by any one of the Parties hereunder must be in writing, and signed by the Parry granting the waiver. 21. Assignability. OCSD shall not assign, or otherwise transfer, or attempt to transfer, to any other person or entity, any of its rights herein stated, and shall not transfer, or attempt to transfer, to any other person or entity, any of the duties or obligations herein stated,without the prior written consent of PACIFIC, which may be given or withheld in PACIFIC's sole and absolute discretion, and any other attempt to do so shall be void and of no legal force or effect. 22. Choice of Law. The terms of this Agreement shall be interpreted and construed according to the laws, regulations and ordinances of the United States of America, the State of California, the County of Orange, and the City of Brea, as they may apply, from time to time. 23. Further Acts. For the duration of this Agreement,each Party shall, whenever requested to do so by the other Party or Parties, execute, acknowledge and deliver, or cause to be executed, acknowledged or delivered, any and all such further instruments and documents, and do any and all other acts as may be reasonably necessary to accomplish the purpose and intent of this Agreement. 24. Entire Agreement. This Agreement constitutes the entire agreement and understanding between the Parties pertaining to the subject matter addressed herein, and supersedes all prior, or contemporaneous, agreements and understandings, both written and oral, pertaining to such subject matter 25. Interpretation. This Agreement will be interpreted according to the fair meaning of its terms and not strictly for,or against, any Party hereto. 26. Modification. The provisions of this Agreement may only be amended or modified by a written agreement executed by the Parties. 27. Authori . Each person executing this Agreement hereby warrants that he/she has legal authority to bind the Parry for whom he/she so executes this Agreement. 1297953.1 Page 4 28. Severability. If any provision of this Agreement is held by any court of law or equity having proper jurisdiction over the matter to be void, invalid or unenforceable for any reason, the remaining provisions of this Agreement overall shall continue in full force and effect without being impaired or invalidated in any way. 29. Notice. All notices or other documents (collectively "notices") given hereunder shall be in writing and shall be addressed to the recipient and sent by personal delivery or by overnight delivery service, such as by United States certified mail, postage prepaid, Federal Express, United Parcel, or the like. Unless and until otherwise notified, the address of each of the Parties for the giving of Notices shall be as follows: If to PACIFIC: Chris Chan, Project Manager Pacific Quality Packaging Corporation 660 660 Neptune Avenue, Brea, CA 92821 IftoOCSD: Orange County Sanitation District Attn: Clerk of the Board 10844 Ellis Avenue Fountain Valley, CA 92708 1297953.1 Page 5 IN WITNESS WHEREOF, the parties have executed this Agreement on the date set forth below their respective signatures. ORANGE COUNTY SANITATION DISTRICT Dated: APPROVED AS TO FORM: By: By: Gregory C. Seboum,PLS Bradley R.Hogin Board Chairman General Counsel ATTEST: By: Kelly A. Lore,MMC Clerk of the Board PACIFIC QUALITY PARTNERS Dated: By: Fred Chan Its: 1297953.1 ATTACHMENT Titan Way r-7 Parcel 296-122-08 --= Pacific Quality Partners 1355 W Imperial Hwy Brea, CA 92821 Dosi g Ma hole: Brea City MH ID 3 14 Existing building ..... ® 10,000 gallon chemical storage tank Manhole A "!'`�%.l'' � OCSD sewer Q ' E City sewer E (U ; ■ ■ Electrical /water shutoff r , r , r , r , r , r , F r U; r 6J, VON ; K c� ,W W, r , OCSD Sewers Underground SewerDlverslon Structure Imperial Blvd N 0 75 150 300 Feet I ATTACHMENTS PROPERTY ONE MCHAIN ERGE LINK""""' hill) FILTE I6DaTIDNYUME� G� 110 CHEMICAL STARRALS PUM TS GENTIR SVSTEML 4P lER\ CHEMICA y` UTIOX VPLYE SEGOxpMV HILL&IOTNERE CXEMICAL COMPANY COMPINMRi ENGINEERING DEPARTMENT 15017 E.CWIK AVE. FULSOME ULSO ED COY OF INOUSTR;CA,9ll05 NJEGLNCHMN LINK" LOCATED PP INT MION E.1(636)333-7308 FENCE IADDER R 35 FROM WMP 6V6TEM BREA RV FE DOSING EASTER COED/PACIFIC OF E LVPyH____y,STANCH 1355 W IMP HWY BREA CALIFURNU FROM f 93831-37D6 CHAIN FENCE PRMERIVLINE �11031<OI5DRFA DETAIL TANK ME NDARYCO.N.I. TFIB FIBERGLASS TANK GALLON UGRED STEEL PROPERTY LINE/ R0ENMEIR XOMIC M CHLORIDE LORIO EKIN WMIL PE LINEROµ 100 DEGREES F u-0 11114 1 DIAMETERR. MAMMON SHELL HENi1i Par, T Garda DUAL I HP PUMP SYSTEMFOLILTOPHAROPENERD aNMEMUNIi AT WX41t6 CX HP H Da II-DDIP1I OPERATIONS COMMITTEE Mewin Dale TO g DaBd.OIDir. 03/07/18 03/28/18 AGENDA REPORT Item Item Number 9 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of$211,365 (7.5%)to the Professional Design Services Agreement with Brown and Caldwell for SCADA System and Network Upgrades, Project No. P2-107, for a total contingency amount of$493,185 (17.5%). BACKGROUND The Power Monitoring and Control Systems, Project No. J-33-3, installed a power monitoring and control system at Plant No. 1 that plays a critical part in maintaining power supply by remotely monitoring the plant electrical systems and allowing for remote operation of the electrical distribution circuit breakers to improve safety and response times. The SCADA System and Network Upgrades, Project No. P2-107, will implement a similar power monitoring and control system at Plant No. 2. An extensive network of fiber optic cables has been installed over the years at Plant No. 2 to connect a system of programmable logic controllers (PLC) that are essential for monitoring, control, and maintenance of the plant processes. Without the communications network, operators must directly observe every process, which is not practical with current staffing levels. This project will replace the existing fiber optic network with a series of looped fiber networks and network switches, creating an industrial control system (ICS) that increases the reliability of this critical system. This project will also provide two new server rooms in existing buildings that will contain core switches and other equipment for the process and IT networks. During a loss of Southern California Edison utility power, an electrical load-shedding system will be provided to monitor and automatically shed non-critical loads or loads with standby power from the Central Generation system to maintain water-in/water-out operation. This microprocessor-based control system is similar in design and functionality to those used by larger utilities to maintain electrical service to their customers in the event of power interruption. The opportunity to incorporate a new industrial communication standard called Generic Object-Oriented Substation Event(GOOSE) messaging was not anticipated when the job was originally scoped. This new standard improves the interoperability of the electrical relays for improved resiliency of the power system by isolating and load shedding more quickly and selectively. Page 1 &3 RELEVANT STANDARDS Provide a safe and collegial workplace • 24/7/365 treatment plant reliability PROBLEM This project is developing new guidelines for the monitoring and control signals associated power monitoring/control, revising the programmable logic controller standard drawings due to the obsolescence of the existing controllers, adding fire protection to the Centrifuge Building server room,and designing a load-shedding system using microprocessor-based relays. These design improvements are not part of the Consultant's scope of work, requiring an increase to Consultant fees beyond the amount allocated in the original Professional Design Services Agreement (PDSA) contingency. PROPOSED SOLUTION Increase the PDSA contract contingency, allowing staff to negotiate and authorize additional scope and budget changes. TIMING CONCERNS Additional engineering evaluation and design are required to complete the project design, which will be combined with the Outfall Low-Flow Pump Station at Plant No. 2, Project No. J-117B, as one bid package. The J-117B project is currently on the critical path for accommodating the GWRS Final Expansion project. RAMIFICATIONS OF NOT TAKING ACTION Not approving this contingency increase will prevent the design from being completed to the proposed standards. PRIOR COMMITTEE/BOARD ACTIONS January 2016 - Approved a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the SCADA System and Network Upgrade, Project No. P2-107, for an amount not to exceed $2,818,197, and approved a contingency of$281,820 (10%). ADDITIONAL INFORMATION N/A CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from Page 2 of 3 CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination," including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project consists of minor alterations to existing public facilities. A Notice of Exemption was filed and recorded with the County of Orange on November 5, 2015. FINANCIAL CONSIDERATIONS This item has been budgeted (FY 2017-18 Update, Page A-8), and the budget is sufficient for the recommended action. Date of Aooroval Contract Amount Contlnaencv 02/25/15 $2,818,197 $281,820 (10%) 03/28/18 $211,365(7.5%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Presentation from 3/7/18 Operations Committee meeting (same presentation presented for Operations Item Nos. 10 & 11) DC:dm:gc Page 3 of 3 \vw ,Mk Ocean Outfall System Rehabilitation and SCADA System and Network Upgrades, Pro 'ect Nos. J - 117 and 132- 107 Items 9 10 and 11 ` Mike DIrrnzw Engineering Managaa �► i � Yam... T - Agenda Items 9 , 10 and 11 • Item 9 : Increase contingency for SCADA System and Network Upgrades, Project No . P2-107 • Item 10: Combine Ocean Outfall System Rehabilitation, Project No. J- 117, and SCADA System and Network Upgrades, Project No . P2- 107 • Item 11 : Sole source electrical power system protective relays and load-shedding systems at Plant Nos. 1 and 2 P2 = 107 Project Elements `� . Medium-Voltage Switchgear ® Monitoring and control I ' Lb all breakers - r Automatic transfer ® ® schemes Replace Obsolete Pill ��' Power monitoring Electromechanical /i Replace protective relays Protective Relays Medium-Voltage Switchgear Low-Voltage Switchgear • Monitoring and control e main and tie breakers ■ Automatic transfer schemes ELM on • Power monitoring Low-Voltage Switchgear P2 = 107 Project Elements Project Elements (Cont.) Monitor Status and Alarms • Battery chargers • Fuel systems • Generators • Grounding systems • Transformers Uninterruptible power 12kV-480V Transformer Uninterruptible Power Supply (UPS) supplies (UPS) Load Shedding System Network a-` Battery Charger Standby Generator Load Shedding System TOTAL LOAD 7 MW 10-13 MW CEN GEN CAPACITY 4-6 MW 9 MW LOAD SHEDDING METHODS: CEN GEN OVERLOADED ON ' CONTINGENCY BASED (EVENT DRIVEN) POWER IMPORTED 1-3 MW 1-4 MW ' BACKUP FREQUENCY UTILITY POWER OUTAGE PARTIAL TRIPPING Standby Standby LOADS WITH OF DOWNSTREAM STANDBY POWER LOADS (TYPICAL) Generators Generators (TYPICAL) Oce Pump Station Effluent Pump Stati Primary Clarifiers PLANT PRIMARY POWER SOURCES City Water •••••• Activated Pump Station Sludge Utility Central Generators Standby (S) 3 MW, (1) 1 MW Generators / Centrifug Trickling Filters esso NON-CRITICA1 P imary Effluent Digesters ump Station Standby LOAD Generators & , . , ' 11, t - . 77 � 2 . � Methods to Reduce Arc Flash Levels LIFESPAN OF AN ARC FLASH REDUCE ARC FLASH ENERGY "Clear" the VTRTUALMAN Arc Flash ARC-FLASH PROTECTION condition "faster" Total � mm La Clearin ��m mQm Time \m 0 50 100 150 200 250 300 350 400 "'l°•'—cam m Time (me) so.neameI.m,e.rv....uov... ev,.. e. Adopting Latest Substation Technology LOAD SHEDDING CONTROLLER !10 MEDIUM-VOLTAGE SWITCHGEAR ................. VIRTUAL MAIN I ARC-EfASH I PROTECTION I ............. I ADOPTING THE LATEST I- - - SUBSTATIONAUIONW'IION I IvE GOOSE OOSE TECHNOLOGY ]EC 61850 WITH GENERIC OBJECT ORIENTED - - I 12KV-480V TRANSFORMER SUBSTATIONEVENI I I :, - - - - - - - I VIRTUAL MAW REDUCES ARC HASH LOW-VOLTAGE SWITCHGEAR Ocean Outfall System Rehabilitation , Project No . J -117 • J- 117A Interplant Effluent Pipeline Rehabilitation ($ 12 . 6M ) • J- 117B Outfall Low Flow Pump Station ($76M ) I Ocean Outfall System Rehabilitation, Project No. J-117 ".y ! 84„& PLANT WATER P5 LOW FLOW PS 40 • z i i za OCEAN p OCEAN OUTFALL R �. T FALL PIPELINE BOOSTER STATION a-• a�—a (OOBS) REHAB E� L ( ( ( ( ( ( ( ( ( _(_( \, iREPLACE CEN GEN 'ELECTRICAL < � - i INSi REPLACE EXISTING • ,y I _ - - PLANT WATER o PUMP STATION 1 _ ILI RECLAIMABL WS NON-RECLAIMABLE FLOWS fL � ( i I � ■ _ _ . � i Plant 2 - 12kV Electrical System _ _ _ _12KV SERVICE CENTER SWITCHGEAR WITH LOAD SHEDDING . . . . . . — Bus A _ _ _ _ _Bus B — I P2 107 CENTRAL GENERATION, SWITCHGEAR, — — L Bus A _ Bus G1 _ _ _ tBusB s B I DISTRIBUTION CENTE J 1176 � . _ B - _ _ . _EFFLUENT PUMP STATBus A L . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . _ . � DC 'B' ACTIVATED SLUDGE Bus A Bus B . . . . . . . . . . . . . . . . . . . . . . . . . . . . � DC 'H' (HEADWORKS) Bus A Bus B P2-107 — , DC,'J' (TRICKLING,FILTERSL , — , — , — _ — , I Bus I I. — . _ Bus A _ . . . . . . . . . . . . . . . . . . . . . . . .g _ . J DC 'K' (CENTRIFUGE) Bus A Bus B Other Benefits of Combining Projects: Similar work, IT room in GOBS, concurrent schedule, and reduced soft costs. i J -117B and P2 - 107 Plant 2 Site Plan ro RAS West . . ? SCADA System and Network Upgrades P2-107 Contingency Increase — Item 9 • Design a microprocessor-based load-shedding system • Develop new guidelines for the monitoring and control signals associated power monitoring/control • Revise programmable logic controller standard drawings • Add fire protection to the Centrifuge Building server room Recommendations - Item 9 • Approve a contingency increase of $211,365 (7.5%) to the Professional Design Services Agreement with Brown and Caldwell for SCADA System and Network Upgrades, Project No. P2-107, for a total contingency amount of $493, 185 ( 17 . 5%) . Recommendations - Item 10 • Approve a budget increase of $ 19,000,000 for Ocean Outfall System Rehabilitation, Project No. J - 117, for a total budget amount of $ 166,000,000; and • Approve a budget reduction of $ 19, 100,000 for SCADA System and Network Upgrades, Project No. P2- 107 for a total budget amount of $5,000,000. Load Shedding Sole Source • Request for Information Sent to 5 Vendors • Asea Brown Boveri (ABB) • General Electric (GE) • Schneider Electric • Schweitzer Engineering Laboratories (SEL) • Siemens • 4 out of 5 responded Load-Shedding Criteria Siemens Complies with Substation Automation Standard (IEC 61850, Edition 1 or 2) Microprocessor-based controller Industry standard programming language (IEC 61131 ) Contingency-driven load shedding Load shedding works with other mfrs Redundant Communication Load Shedding Sole Source (Cont. ) Criteria 4 Projects in the US 1 7 Offices in the US 1 (Texas) 14 (1 in Irvine) Technical Staff in US 2 100 Load • • 98 msec 12.24 — 30.46 msec Recommend sole sourcing SEL • Uses industry standard programming languages • Microprocessor-based controller • Fast load-shedding timing coordinates with backup frequency load shedding • Installations in the United States • Local customer support for current and future OCSD projects Also, reduced staff training and less spare parts Recommendations - Item 11 • Authorize staff to specify Schweitzer Engineering Laboratories as the sole source provider for current and future projects equipment, materials, and services for electrical power system protective relays and load-shedding systems at Plant Nos. 1 and 2; and • Authorize staff to negotiate service agreements for services related to protective relays and load-shedding systems for current and future projects, and for on-going operations and maintenance at Plant Nos. 1 and 2; and • Ratify the addition of Schweitzer Engineering Laboratories to the list of pre-approved Original Equipment - Manufacturers for procurements under $100,000 for equipment, materials, and services for electrical power system protective relays and load-shedding systems. OPERATIONS COMMITTEE Meeting Da Bd.Of[Mr. 03/ Date Te07/18 03/28/18 AGENDA REPORT learn Number I em Number 10 13 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117 AND SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 GENERAL MANAGER'S RECOMMENDATION A. Approve a budget increase of $19,000,000 for Ocean Outfall System Rehabilitation, Project No. J-117, for a total budget amount of$166,000,000: and B. Approve a budget reduction of $19,100,000 for SCADA System and Network Upgrades, Project No. 132-107, for a total budget amount of$5,000,000. BACKGROUND Outfall System Rehabilitation, Project No. J-117, includes the Contract No. J-117B which will construct a new Outfall Low Flow Pump Station, a new Plant Water Pump Station, rehabilitation of the existing Ocean Outfall Booster Station, and replacement of existing electrical switchgear in the Plant No. 2 Central Generation system. SCADA System and Network Upgrades, Project No. P2-107, includes implementation at Plant No. 2 of a power monitoring and control system, a new fiber optic process control network, and an interlinked system of protective relays that will better isolate electrical faults and allow coordinated shedding of non-essential power demands on loss of Southern California Edison utility power. The P2-107 project had previously been named Power Monitoring and Control Systems at Plant No. 2, but is now titled SCADA System and Network Upgrades to better reflect the nature of the work. Both projects include power distribution equipment equipped with the interlinked protective relays. The relays from both projects must be connected on the same dedicated, vendor-specific, and vendor-designed network. The relays must also be programmed and tested together. RELEVANT STANDARDS • Ensure the public's money is wisely spent • 24/7/365 treatment plant reliability Page 1 a 3 PROBLEM Installing the interlinked protective relays under separate construction contracts would create significant risk in coordinating the procurement, configuration, and testing of the devices and network. As a result, it would be difficult to assign responsibility to one of the contractors to correct a problem. PROPOSED SOLUTION Construct both projects using a single construction contract, using the budget for Outfall System Rehabilitation, Project No. J-117, which is the larger project. This change involves reducing the budget of the SCADA System and Network Upgrades, Project No. P2-107, to eliminate the construction budget and increasing the budget of Outfall System Rehabilitation, Project No. J-117. The increase in the J-117 budget is less than the decrease in the P2-107 budget due to unrelated savings on both projects and efficiencies of staff time associated with managing only one construction contract. TIMING CONCERNS The construction schedules of the two projects overlap, so combining the work will not delay either project. Combining the work also allows complex schedule constraints to be specified for one contractor. RAMIFICATIONS OF NOT TAKING ACTION Without the additional budget for Project No. J-117, staff will be unable to advertise the work under a single bid package. Construction coordination will be more difficult since two projects are required to execute a complete load-shedding system. Completion of the Outfall Low Flow Pump Station, Contract No. J-117B, is critical for the Orange County Water District's Groundwater Replenishment System's Final Expansion, and delaying advertisement for bids would likely delay that project. PRIOR COMMITTEE/BOARD ACTIONS September 2017 - Adopted Resolution No. OCSD 17-15, making certain findings and adopting the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program pursuant to the California Environmental Quality Act, and approved a contingency increase of$677,801 (10%)to the Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall System Rehabilitation, Project No. J-117, for a total contingency of$3,727,907 (55%). May 2017-Approved through the Fiscal Year 2017/2018 Budget Update a project budget of$147,000,000 for Ocean Outfall System Rehabilitation, Project No. J-117. November 2016 -Approved a budget increase of$28,517,000 for Ocean Outfall System Rehabilitation, Project No. J-117, fora total budget amount of$91,000,000, and approved Page 2 of 3 a contingency increase of $2,372,305 (35%) to the Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall System Rehabilitation, Project No. J-117, for a total contingency of$3,050,106 (45%). February 2015 - Approved a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the Ocean Outfall System Rehabilitation, Project No. J-117, for an amount not to exceed $6,778,015, and approved a contingency of $677,801 (10%). ADDITIONAL INFORMATION N/A CEQA An Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Outfall Low Flow Pump Station, Contract No. J-117B, was adopted by the Board on September 27, 2017. SCADA System and Network Upgrades, Project No. P2-107, is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination,"including"(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project consists of minor alterations to existing public facilities. A Notice of Exemption was filed and recorded with the County of Orange on November 5, 2015. FINANCIAL CONSIDERATIONS Outfall System Rehabilitation, Project No. J-117, has been budgeted (FY2017-18 Budget Update, Section A-8), but the budget is insufficient for the recommended action. SCADA System and Network Upgrades, Project No. P2-107, has been budgeted (FY2017-18 Budget Update, Section A-8), and the budget is sufficient for the recommended action. The savings from P2-107 will cover the additional cost for J-117. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Presentation from 3/7/18 Operations Committee meeting (same presentation as provided in Operations Item No. 9) VP:dm:gc Page 3 a 3 OPERATIONS COMMITTEE MeeOngDate TOBA.ofDir. 03/07/18 03/28/18 AGENDA REPORT Bern Numbe Item Number 11 14 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: SOLE SOURCE LOAD SHEDDING AND PROTECTIVE RELAY SYSTEM GENERAL MANAGER'S RECOMMENDATION A. Authorize staff to specify Schweitzer Engineering Laboratories as the sole source provider for current and future projects equipment, materials, and services for electrical power system protective relays and load-shedding systems at Plant Nos. 1 and 2; B. Authorize staff to negotiate service agreements for services related to protective relays and load-shedding systems for current and future projects, and for on-going operations and maintenance at Plant Nos. 1 and 2; and C. Ratify the addition of Schweitzer Engineering Laboratories to the list of pre-approved Original Equipment Manufacturers for procurements under $100,000 for equipment, materials, and services for electrical power system protective relays and load-shedding systems. BACKGROUND Public Contract Code §3400 allows local agencies to draft bid specifications for public works that call for a designated product if the awarding authority, or its designee, finds that the product is designated "in order to obtain a necessary item that is only available from one source...". An item is available from only one source if there is not an "equal" product, meaning a product that will "function as well, in all essential respects" as the designated product. Electrical power for the Orange County Sanitation District's (Sanitation District) Plant Nos. 1 and 2 is supplied by its own Central Generator System (CenGen)and by Southern California Edison (SCE). In an SCE power outage, the entire plant load is initially supplied only by CenGen until standby diesel generator power starts to feed select loads. If the load exceeds the operating CenGen capacity for a fraction of a second, CenGen will shut down. A centralized, high-speed load-shedding system would maintain plant operations during a SCE power outage by dynamically shifting equipment backed up by standby generators off CenGen and shutting down non-critical equipment. The system utilizes microprocessor-based controllers and relays interconnected with a dedicated high-speed network to monitor plant loads and critical events to immediately shed excess low priority Page 1 a 6 loads. This system also greatly reduces the magnitude of potential arc flash events,which is an important safety concern for power distribution equipment. SCADA System and Network Upgrades at Plant No. 2, Project No. P2-107, was assigned to provide a load-shedding and protective relay system. The original plan was to utilize a less sophisticated system. A detailed evaluation determined that a centralized, high-speed load-shedding and protective relay system would provide the greatest benefit. Staff solicited information from manufacturers capable of providing such systems. Based on an extensive investigation, Sanitation District staff has determined that Schweitzer Engineering Laboratories (SEL) manufactures the only load-shedding system capable of reliably meeting the Sanitation District's needs. The load-shedding system consists of a load-shedding controller, a human-machine interface (HMI), protective relays, and network equipment. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Maintain a culture of improving efficiency PROBLEM Although there are industry standards for load shedding systems, system vendors only guarantee performance and operation when their own products are connected and operated as a system. As a result, a system installed with different vendors' products would present great difficulty in enforcing performance and interoperability. This is particularly challenging because the system must respond extremely quickly using high-speed networks to timely trip loads. Maintenance of systems and training of staff for multiple systems would also be impractical. PROPOSED SOLUTION Sole source Schweitzer Engineering Laboratories for load-shedding systems and protective relays at both plants. The sole source includes equipment, material, engineering, and startup and commissioning services to be provided on specific capital projects and for operational and maintenance assistance as needed. The estimated cost for the load-shedding system at Plant No. 1 is in the range of$2 million to$3 million. That system will be implemented under Electrical Power Distribution System Improvements, Project No. J-98. The estimated cost for the load-shedding system and protective relays at Plant No. 2 is in the range of$1.5 million to$2.5 million. That system will be implemented under Ocean Outfall System Rehabilitation, Project No. J-117, and SCADA System and Network Upgrades, Project No. 132-107. Page 2 of 6 TIMING CONCERNS The Outfall Low Flow Pump Station, Project No. J 117B, will replace the 12-kV switchgear at Can Gen and the Ocean Outfall Booster Station. These switchgear line-ups will include microprocessor-based protective relays. The SCADA System and Network Upgrades, Project No. P2-107, will be implementing a load-shedding system and replacing existing, outdated electromechanical protective relays with microprocessor-based protective relays to reduce relay testing and calibration efforts, improve system troubleshooting and diagnostics features, and reduce arc flash levels with improved tolerances. Furthermore, a complete plant-wide fiber network will also be implemented. Implementing the load-shedding system on these projects provides optimal timing and the greatest financial benefit. RAMIFICATIONS OF NOT TAKING ACTION Not selecting SEL as a sole source manufacturer may result in obtaining a load-shedding system that does not use industry standard programming languages, uses a server-based controller that needs periodic security patches versus a microprocessor-based controller, slower load-shedding timing that could reduce the benefits of a contingency-driven load shedding system, proprietary load-shedding devices that cannot communicate with other manufacturer devices, a system with limited installations in the United States, and lack of local customer support for current and future projects. PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Updated authorization and set administrative controls for sole source procurement required to maintain, service, or replace equipment currently in operation at Orange County Sanitation District facilities where the parts and/or service can only be provided by the Original Equipment Manufacturer (OEM) or their designated representative, for purchases under$100,000, per purchase, and authorized the General Manager to ratify additions or deletions to the OEM list on the General Manager's quarterly approved purchases agenda report. ADDITIONAL INFORMATION Load-Shedding System Technology The original Scope of Work for Project No. P2-107 required the implementation of an under-frequency load-shedding system with hardwired controls to trip preselected 12-kV circuit breakers throughout Plant No. 2. During initial project meetings, it was determined that it would be preferred to trip loads based on the actual plant electrical demand (loading) versus a predetermined trip sequence so that the plant could maintain operations during normal flow conditions with minimal impact to staff. Originally, programmable logic controllers (PLCs) matching the plant process PLCs were planned to be used with under-frequency relays. After discussions with microprocessor-based relay manufacturers, it was determined that a proven contingency-driven, high-speed load-shedding system with backup under-frequency load shedding would provide the Page 3 a 6 most reliable and flexible load-shedding operation. It was determined that the load-shedding system should comply with IEC 61850 for power utility automation. Selection Process The Sanitation District performed a market evaluation of vendors who provide high-speed load-shedding systems and obtained technical advice from experts experienced in load-shedding and the IEC 61850 standard. A request for information (RFI)for equipment and services required to implement an IEC 61850 Edition 2-based substation communications, protection, and load shedding control system was sent to the following vendors on August 30, 2017: 1. Asea Brown Boveri (ABB) 2. General Electric (GE) 3. Schneider Electric 4. Schweitzer Engineering Laboratories (SEL) 5. Siemens Submittals were received from four of the five manufacturers and were reviewed by the Sanitation District. Schneider Electric declined to submit. Based on the information provided, the Sanitation District determined that the following evaluation criteria should be used to select the load-shedding system: 1. Protective relays need to comply with the IEC 61850 Edition 1 and/or Edition 2 standard. 2. Load-shedding calculations need to be performed in a microprocessor-based controller versus a Windows-based server. 3. Load-shedding controller shall be programmed using IEC 61131 standard languages, similar to industrial controllers being utilized by the Sanitation District's Process Control Integration (PCI) group. 4. Load-shedding system needs to have a contingency-based load-shedding element with a backup under frequency element. 5. Load-shedding system needs to integrate with other manufacturers relays. 6. The network needs to have communication redundancy. On November 3, 2017, additional clarification questions were sent to the four vendors to clarify their responses to the original RFI. The Sanitation District reviewed and discussed the manufacturer's responses based on the evaluation criteria. The table below shows the criteria each manufacturer met. Load-Shedding Criteria ABB GE SEL Siemens IEC 61850 (Edition 1 or 2) ✓ ✓ ✓ ✓ Microprocessor-based controller ✓ ✓ ✓ IEC 61131 programming ✓ ✓ ✓ Contingency-driven load shedding ✓ ✓ ✓ ✓ Load shedding works with other mfrs ✓ ✓ ✓ Communication redundancy ✓ ✓ ✓ ✓ Page 4 of 6 Based on this criteria, Asea Brown Boveri (ABB) and SEL were selected to be further evaluated. On January 8, 2018, an additional clarification request was sent to ABB to request answers to the following questions: 1. Locations in the United States where the proposed load-shedding system has been implemented. 2. Offices in the United States with number of staff at each location and expertise and resumes of staff to provide technical support on the different load-shedding components. (Note: Previous RFI response did not provide enough information for the Sanitation District to evaluate). 3. Timing of load shedding system from signal input to breaker trip. (Note: Previous RFI response did not provide enough information for the Sanitation District to evaluate). The following summarizes the responses from ABB and SEL: Criteria ABB SEL Projects in the US 1 7 Offices in the US 1 Texas 14 1 in Irvine Technical Staff in US 2 100 Load Shedding Timing 98 msec 12.24 —30.46 msec Details of ABB responses: 1. One similar project has been implemented in the United States and two similar projects have been implemented in Canada. Most of ABB's experience is outside the United States. 2. ABB listed eight staff members and provided resumes. Based on the resumes, it appears that only two out of the eight technical staff are located in the United States. The six technical staff located outside of the United States are located in India. The staff in India were used to program and configure the load-shedding system located in the United States. 3. ABB calculated a total load-shedding timing of 98 msec. This matches the timing documented for the ABB project installed in Greece. The load-shedding expert supporting the Sanitation District performed calculations to determine the frequency decays of the power system when a load-shedding event is triggered. These calculations indicate that a load-shedding time faster than ABB's 98 milliseconds is needed in order to provide sufficient timing separation between the contingency-driven load-shedding event and the under-frequency load shedding, and to prevent the power system frequency from dropping below 57 Hz, which could result in damage to the motors overtime. The Sanitation District staff plans to train staff to configure, maintain, and troubleshoot the load-shedding and protective relay system. The recommendation is to have the manufacturer's staff program, configure, commission, and test relays installed under Page 5 a 6 future Capital Improvement Program (CIP) projects so that the system is certified after each installation. In summary, SEL is the only manufacturer that responded to the RFIs that meets the required criteria established by the Sanitation District to successfully implement a high- speed load-shedding scheme. Additional SEL Information and Features SEL's equipment costs are sold at a fair market value with no discounts to any customers. SEL also provides a 10-year, no-questions-asked product warranty. The equipment is also designed for an operating temperature of 40 degrees F to +185 degrees F and a service life of over 25 years. In addition, the SEL protective relays can be equipped with overcurrent and arc-flash detection features that reduces fault clearing time and further reduces the arc flash levels in 12kV switchgear. CEQA Pursuant to CEQA Guidelines section 15352, the recommended actions are not approvals requiring environmental review under CEQA because the recommended actions are only to make findings sufficient to allow the Sanitation District to designate specified equipment in construction contracts. The recommended actions do not commit the Sanitation District to a definite course of action to let a contract for bidding, to award a contract, or to authorize any contractor to proceed. FINANCIAL CONSIDERATIONS This request complies with the authority levels in the Sanitation District's Purchasing Ordinance. The required funding will be obtained from the projects where the equipment, material, and services are utilized, or in the appropriate operating budget allocations. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Presentation from 3/7/18 Operations Committee meeting (same presentation as provided in Operations Item No. 9) MD:ND:dm:gc Page 6 a 6 SPRADLWsSMART CLOSED SESSION 1 WOODRUFF, • A 555 ANTON BOULEVARD, SUITE 1200 COSTA MESA, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: March 21, 2018 RE: Closed Session Items The Board of Directors will hold a closed session on March 28, 2018 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: Valley Business Park,APN Nos. 156-165-05, 156-165-06, 156-163- 07; DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13, APN No.156-165- 08; Salon Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust Shabtai,Nevon,APN No. 156-163-16; The his Trust,APN No. 156-154-07; Fountain Valley Star LLC, APN No. 156-154-06; TN Sheet Metal Inc., APN No. 156-163-12; 18401 Bandilier LLC, APN No. 156-163-13; Phone Lilly Lin-Lin TR, APN No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-163-15; Ellis Avenue LLC, APN No. 156- 154-04; and SFII Fountain Valley LLC, APN No. 156-151-03. The District's negotiators are Jim Herberg,Bob Ghirelli, Lorenzo Tyner,Rob Thompson,Kathy Millea and Jeff Mohr, Tom Grant, Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respectfully submitted, By X 6- Bradley R. Hogin, Oeneral Counsel 1290'/35.1 ►` WOODRUFF,.SFRADLIN&SMART CLOSED SESSION 2 555 ANTON BOULEVARD, BUTTE1200 COSTA MN9A, CA 92626-9690 (714)556-0000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: March 21, 2018 RE: Closed Session Items The Board of Directors desires to hold a closed session on March 28, 2018 for the purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and circumstances reflect a significant exposure to litigation against the District. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(2). The facts and circumstances are as follows: The District received a claim from an employee Carlos Quiroz. Respec i submitted, By: Bradley P. Hogin, G neml Counsel 1297914.1 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS Association of California Local Agency Formation Santa Ana River Flood ACWA Water Agencies LAFCO Commission SARFPA Protection Agency APWA American Public Works LOS Level Of Service SARI Santa Ana River Association Interceptor AQMD Air Quality Management MGD Million Gallons Per Day SARWQCB Santa Ana Regional Water District Quality Control Board ASCE American Society of Civil MOU Memorandum of SAWPA Santa Ana Watershed Engineers Understanding Project Authority BOD Biochemical Oxygen Demand NACWA National Association of Clean SCADA Supervisory Control And Water Agencies Data Acquisition California Air Resources Non-Governmental Southern California CARB Board NGOs Organizations SCAP Alliance of Publicly Owned Treatment Works CASA California Association of NPDES National Pollutant Discharge SCAQMD South Coast Air Quality Sanitation Agencies Elimination System Management District CCTV Closed Circuit Television NWRI National Water Research SOCWA South Orange County Institute Wastewater Authority CEQA California Environmental O&M Operations&Maintenance SRF Clean Water State Quality Act Revolving Fund Capital Improvement Orange County Council of Sewer System CIP Program OCCOG Governments SSMP Management Plan CRWQCB California Regional Water OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Quality Control Board Agency CWA Clean Water Act OCSD Orange County Sanitation SWRCB State Water Resources District Control Board CWEA California Water Environment OCWD Orange County Water District TDS Total Dissolved Solids Association EIR Environmental Impact Report OOBS Ocean Oulfall Booster Station TMDL Total Maximum Daily Load EMT Executive Management Team OSHA Occupational Safety and TSS Total Suspended Solids Health Administration US Environmental Protection Professional Waste Discharge EPA Agency PCSA Consultant/Construction WDR Requirements Services Agreement FOG Fats,Oils,and Grease PDSA Professional Design Services WEF Water Environment Agreement Federation gpd gallons per day POTW Publicly Owned Treatment WERF Water Environment& Works Reuse Foundation Groundwater Replenishment Water Infrastructure GWRS System PPm parts per million WIFIA Finance and Innovation Act Professional Services Water Infrastructure ICS Incident Command System PSA Agreement WIIN Improvements for the Nation Act IERP Integrated Emergency RFP Request For Proposal WRDA Water Resources Response Plan Development Act JPA Joint Powers Authority RWQCB Regional Water Quality Control Board ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements,additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere,used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (Dfr)—The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming("greenhouse stil . GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service area is in the Santa Ana River Watershed.