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 Any items withdrawn from the Consent Calendar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
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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
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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
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Beverly J Tr B J Morgan Living Tr Morgan
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dispmble en r a Costa Mesa, CA 92626-5609
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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
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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
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aa'
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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-
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---
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
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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
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caution before opening any attachments or hyperlinks. Contact the IT Service Desk
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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
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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 .__
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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
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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
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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
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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
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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
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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
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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
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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
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Al
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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.
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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,
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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:
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SECTION -4 PLANS AND SPECIFICATIONS
The Work to be done is shown in a set of Plans and Specifications entitled:
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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
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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.
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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.
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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.
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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."
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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
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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
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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
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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
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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.
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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.
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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
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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
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(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:
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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.
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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.
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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.
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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
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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;
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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.
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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
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ATTACHMENT 2—SCHEDULE OF PRICES
See next pages from the Bid Submittal Forms (Howard Ridley Co., Inc.):
BF-14 Schedule of Prices
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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
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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
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ATTACHMENTS
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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
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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
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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
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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.