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Home My WebLink About03-27-2013 Board Agenda Package Wednesday, March 27, 2013 Orange County Sanitation District _ 6:30 P.M. Regular Meeting of the Board Room Board of Directors 10844 Ellis Avenue Fountain Valley, CA 92708 (714)593-7130 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Steve Jones, Garden Grove) DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CLAIMS: 1. Ratify payment of claims of the District, by roll call vote, as follows: Claims Paid for the Period Ending: 02/15/13 02/28/13 Totals $6,239,764.23 $15,929,834.22 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party seeking a contract with OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractorsNendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. Approve minutes for the Regular Board Meeting held on February 27, 2013. 03/27/13 OCSD Board of Directors Agenda Page 1 of 6 3. A. Ratify a Sole Source maintenance repair service agreement with Ovivo USA, LLC for trickling filters No. 1 & 2 at Plant No.1 for an amount of $144,773; and, B. Approve a contingency of$14,477 (10%). 4. A. Consider, receive, and file the Final Subsequent Environmental Impact Report for the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, prepared by Environmental Science Associates, dated January 2013; and, B. Adopt Resolution No. OCSD 13-04, certifying the Final Subsequent Environmental Impact Report for implementation of Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92; making certain findings relating to environmental effects identified in the Final Subsequent Environmental Impact Report; adopting a Mitigation Monitoring and Reporting Program; adopting a Statement of Overriding Considerations; and approving the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92. 5. A. Approve Plans and Specifications for Dover Drive Trunk Sewer Relief, Contract No. 5-63, on file at the Office of the Clerk of the Board; B. Approve Addendum Nos. 1 through 4 to the plans and specifications; C. Award a construction contract to Mike Bubalo Construction Co., Inc. for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, for a total amount not to exceed $6,189,000; and, D. Approve a contingency of$618,900 (10%). PUBLIC HEARING — REGIONAL SEWER SERVICE CHARGES 6. Items A through F: A. Open 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. B. Receive Public Comment. C. Close Public Hearing. D. The Clerk of the Board will count the protests and report the number of protests to the Board of Directors. 03/27/13 OCSD Boats of Directors Agenda Page 2 of 6 E. If no majority protest: a. Adopt a five year rate schedule for regional sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. b. Motion to read Ordinance No. OCSD-41 by title only and waive second reading of said entire ordinance on March 27, 2013. C. Adopt Ordinance No. OCSD-41, An Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordnance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. d. Adopt Resolution No. OCSD 13-05, 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 2013-2014 through 2017-1018. F. If there is a majority protest, the Board will take no action and provide direction to staff. PUBLIC HEARING — INDUSTRIAL SEWER SERVICE CHARGES 7. A. Open Public Hearing and Receive Public Comment. B. Close Public Hearing. C. Adopt a five year rate schedule for industrial sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4% D. Motion to read Ordinance No. OCSD-42 by title only and waive second reading of said entire Ordinance on March 27, 2013. E. Adopt Ordinance No. OCSD-42, An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD-40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees: 03/27/13 OCSD Boats of Directors Agenda Page 3 of 6 STEERING COMMITTEE: 8. Approve minutes for the Steering Committee Meeting held on February 27, 2013. OPERATIONS COMMITTEE: 9. Approve minutes for the Operations Committee Meeting held on March 6, 2013. 10. A. Approve a Professional Consultant Services Agreement with Atkins North America, Inc. (Atkins) to provide construction support services for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, for an amount not to exceed $353,791; and, B. Approve a contingency of$537069 (15%). 11. Amend the motion, Item 15, July 28, 2010, authorizing an Agreement with OpenCEL, LLC for installation of Equipment and Onsite Proprietary Testing of Plant No. 1 Waste Activated Sludge Treatment, Project No. SP-125-6, to include all applicable taxes. 12. Approve a Reimbursement Agreement with the City of Newport Beach for street improvements along Dover Drive for Dover Drive Trunk Sewer Relief, Contract No. 5-63, in an amount not to exceed $633,000, in a form approved by General Counsel. ADMINISTRATION COMMITTEE: 13. Approve Minutes of the Administration Committee Meeting held on March 13, 2013. 14. Adopt Resolution No. OCSD 13-06, adopting a Conflict of Interest Code which supersedes all prior conflict of interest codes and amendments previously adopted. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property, (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. 03/27/13 OCSD Boats of Directors Agenda Page 4 of 6 Convene in closed session. (1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Case: Santa Ana Station District, LLC v. Matosantos, Sacramento County Superior Court, Case No. 2013-800001416 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 next regular Meeting on April 24, 2013, at 6:30 p.m. OM7/13 OCSD Board of Directors Agenda Page 5 d 6 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 mavala(rIIocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Ruth (714)593-7110 iruth(olocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelliacesd.00m Assistant General Manager Jim Herberg (714)593-7300 iherbem0ocsd.com Director of Engineering Nick Kanetis (714)593-7310 nkanetis((Docsd.com Director of Facility Support Services Nick Arhontes (714)593-7210 narhontes0ocsd.cem Director of Finance and Lorenzo Tyner (714)593-7550 Itvnentbocsd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 imed(cbocsd.cem Director of Operations&Maintenance Ed Tortes 714 593-7080 etomes ocsd.com 03/27/13 OCSD BcaM of Directors Agenda Page 6 of 6 Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board Glossary of Terms and Abbreviations SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Glossary of Terms and Abbreviations Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed. BOARD OF DIRECTORS Needng Dare I TOBd.Of Dir. — o3/Z7/13 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 2/01113— 2/15/1 3 and 2/16/13—2/28/13 Page 1 of 1 Return to Agenda Report Claims Paid From 2/1/13 to 2/15/13 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 851 $ 4,792.41 Repair&Maintenance Services andlar Supplies AAOHN 54328 510.00 Professional Organizations Meetingaraining/Membership ACCU Sludge 54449 806.18 Laboratory Services&Supplies Accurate Measurement Systems 54450 4,204.20 Repair&Maintenance Services and/or Supplies AccuStandard 54451 179.44 Laboratory Services&Supplies Agilent Technologies,Inc. 54452 979.53 Laboratory Services&Supplies Ago IndustriesDBA So-Cal Sweeping 54549 980.00 Street Sweeping Services Air Liquids America Specialty Gases LLC 54453 1,615.12 Laboratory Services&Supplies Air Products is Chemicals.Inc. 54329 9,256.69 Chemicals,WatooWastewater Treatment Air Products&Chemicals,Inc. 54454 6,598.48 Chemicals,WaterMastewater Treatment Airgas Safety,Inc. 852 1,504.78 Safety,Security,Health Equipment,Supplies,and Services Airgas USA,LLC 843 1,017.82 Laboratory Services&Supplies Airgas USA,LLC 853 1,217.34 Laboratory Services&Supplies Alhambra Foundry Co.,Ltd. 54330 4,732.56 Repair&Maintenance Services andfor Supplies All American Sever Tools 54455 217.94 Repair&Maintenance Services and/or Supplies Alta Dena Certified Dairy,LLC 54456 1,200.00 Electrical Utility Services for Odor Treatment pumping station American Express TVL Related Svcs Co.,Inc. W57 5,517.90 Purchasing Card Program for Miscellaneous Travel Expenses Amtech Elevator Services 54458 1,035.00 Miscellaneous Services Applied Industrial Technology 54459 26.52 Repair&Maintenance Services and/or Supplies Argus-Hazco 54331 156.62 Repair&Maintenance Services and/or Supplies Argus-Hazco woo 753.84 Repair is Maintenance Services andlar Supplies AT&T Mobility ll,L.L.C. 54334 399.98 Telecommunications AT&T Universal Biller M332 2,517.87 Telecommunications AT&T 54333 32.29 Telecommunications Austin Building and Design doe The Austin Company 54437 154500.90 Professional ServiceslEngineering Design Services Awards&Trophies Company 54461 231.12 Awards and Framing Services AWSI 54335 174.00 Professional Services-DOT Program Administration AWWA 543M 238.00 Professional Organizations Meeting/TminingfMembership Bank of New York Mellon Trust M337 23,956.95 Professional Services-Financial Battery Specialfies 54462 62.64 Batteries,Various Battery Systems,Inc. 54463 590.80 Repair&Maintenance Services and/or Supplies Bell Pipe&Supply Co. 54464 1,982.40 Repair&Maintenance Services and/or Supplies Berendsen Fluid Power W65 1,101.11 Electiical)Elecbonic Equipment,Pads&Repairs Bioexpress Corp 54466 117.63 Repair&Maintenance Services andfor Supplies Black&Veatch Corporation 54438 7,630.98 Professional Services/Engineering Design Services Black&Veatch Corporation 54438 116,196.01 Professional ServiceslEngineering Design Services Bon Air,Inc. 54446 113,240.00 Construction Brown&Caldvrell 54439 160,911.18 Professional Services/Engineering Design Services Brown&Caldvrell 54439 335,564.31 Professional Services/Engineering Design Services C.Eddie Baker 54582 190.00 MeetinglTmining Expense Reimbursement California Beall Rentals 54338 2,600.00 Miscellaneous Services California Dept.of Child Support 54339 2,630.39 Judgments Payable California Recreation Company 54469 3,376.67 Boat Slip Rental-Nerisss Ocean Monitoring Vessel California Relocation Services,Inc. 54340 112.50 Miscellaneous Services-MoAnglRelocation California Relocation Services,Inc. 54470 112.50 Miscellaneous Services-Moving/Relocation Camali Cam. 54471 1,857.12 Repair&Maintenance Services andfor Supplies CAPPO,Inc. 54341 1,430.00 Professional Organizations MeetinglTainingfMembership CCG Systems,Inc. 54352 13,169.00 Computer Applications&Services EXHIBITA fnrzncs- Page 1 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2115/13 Vendor Warrant No. Amount Description CDN Isotopes 54472 410.00 Laboratory Services&Supplies Charles P.Crowley Co. 54473 4,311.81 Repair&Maintenance Services anchor Supplies Christine W.Yates 54587 508.01 Meeting/Training Expense Reimbursement Chuck M.Forman 545M 146.59 MeetinglTraining Expense Reimbursement City of Fountain Valley 54489 410.00 Water Use City of Huntington Beach 54371 24.94 Water Use City of Huntington Beach 54503 11.82 Water Use Clean Harbors Environmental Services 54342 3,697.01 Grit&Screenings;Hazard Waste Disposal CMAA 54474 1,200.00 Professional Organizations MeetinglTainingfMembership Coast Rubber Stamp,Mfg. 54343 36.89 Stationery&Office Supplies Coastal Traffic Systems,Inc. 54475 2,400.00 Safety,Security,Health Equipment,Supplies,and Services Consumers Pipe&Supply Co. 844 814.00 Repair&Maintenance Services and/or Supplies Consumers Pipe&Supply Co. 854 2,627.59 Repair&Maintenance Services and/or Supplies Converse Consultants 54344 11,991.00 Professional Services/Professional Services/Materials&Geotechnical Testing Converse Consultants 54476 6,840.50 Professional Services/Professional Services/Materials&Geotechnical Testing Cooperative Personnel Services 54345 643.80 Human Resources Services Cooperative Personnel Services 54479 284.00 Human Resources Services Corporate Image Maintenance,Inc. 5"to 36,436.89 Janitor&Household Service&Supplies Corlech Engineering 54477 3,315.31 Repair&Maintenance Services andfor Supplies County of Orange-Health Care Agency 54478 5,098.50 Governmental Agency Fees&Charges Court Order 54378 2,179.38 Judgments Payable Court Order 54403 108.00 Judgments Payable Court Order 54433 912.50 Judgments Payable C-Temp International 544M 898.91 Repair&Maintenance Services and/or Supplies Culligan of Orange County 54480 60.40 Repair&Maintenance Services and/or Supplies CWEA Annual Conference 54346 724.00 Professional Organizations Meeting/rreininghMembership CWEA Annual Conference 54481 450.00 Professional Organizations MeetinghTrainingfMembership CWEA Membership 54482 240.00 Professional Organizations MeetinglTainingfMembership David Cutoff 54347 225.00 Laboratory Services&Supplies DOB Engineering,Inc. 54348 2,970.00 Professional Services-Advocacy Denovo Ventures LLC 54349 7,350.00 JOE Upgrade Consulting Services Desert Pumps&Pads,Inc. 54441 41,N7.42 Repair&Maintenance Services and/or Supplies Dudek&Associates,Inc. 543H 10,634.45 Professional ServiceslEngineering Design Services Dunn-Edwards Corporation W83 55.34 Facilities,Maintenance,Services&Supplies Dwyer Instruments,Inc. 54484 1,237.69 Electrical Electronic Equipment,Pads&Repairs Employee Benefits Specialists,Inc. M351 11,297.40 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists,Inc. 54485 1,469.30 Reimbursed Prepaid Employee Medical&Dependent Care Excel Door&Gate Co.,Inc. W86 4,164.00 Repair&Maintenance Services and/or Supplies Executive Portraits 54559 119.00 Photograph Services Express Lens Lab 855 833.88 Safety,Security,Health Equipment,Supplies,and Services Fleet Services 54354 1,585.03 Truck Repair Fluid Components Int.Go Proton Industries W87 2,825.97 Repair&Maintenance Services and/or Supplies Fountain Valley AAA Auto Spa 54488 678.52 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Franchise Tax Board 54355 360.00 Judgments Payable Franklin Covey 543H 321.96 Office Supplies Franklin Covey 54490 356.83 Office Supplies Fresno Fiat Bank-Acct 100013307 54580 17,992.35 Construction,Retention Ganahl Lumber Company 54357 378.40 Facilities,Maintenance,Services&Supplies Gardner-Denver,Inc. 54491 598.51 Repair&Maintenance Services and/or Supplies EXHIBITA nnrzrwmm Page 2 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2115/13 Vendor Warrant No. Amount Description Garrett Callahan Company 54358 5,007.00 Chemicals,WatepWastewater Treatment General Petroleum 54359 4,899.32 Fuel and Lubricants Glens Alignment&Brake Service 54492 110.00 Autos.Trucks&Marine Equipment,Paris,Accessories&Services Golden State Overnight Delivery Service 54360 227.59 Courier Services Golden West Machine,Inc. 54361 3,969.00 Repair&Maintenance Services anchor Supplies Golden West Window Service 54362 432.00 Facilities.Maintenance,Services&Supplies Golden West Window Service 54493 6,020.86 Facilities,Maintenance,Services&Supplies Government Finance Officers Association 544N 950.00 Professional Organizations MeetinglTaining/Membership Grainger,Inc. 54495 11,803.39 Repair&Maintenance Services anchor Supplies Graybir Electric Company 54496 378.24 ElectiicallElactronic Equipment,Pads&Repairs Greatland Corporation 54363 07.77 Once Supplies Greentech Landscape,Inc 54364 395.00 Landscape Maintenance Services Guarantee Records Management 54365 751.50 Professional Services-Document Storage&Shredding Hach Company 54497 74.32 Laboratory Services&Supplies Handy Hose Services 54498 2,992.12 Repair&Maintenance Services and/or Supplies Hardy Diagnostics 54499 955.27 Laboratory Services&Supplies Harrington Industrial Plastics,Inc. 543H 208.20 Repair&Maintenance Services anchor Supplies Hamngton lndusmal Plastics.Inc. 545M 181]1 Repair&Maintenance Services anchor Supplies Helix Electric,Inc. 54327 112,322.59 Construction Hevlett Packard Company 54367 645.84 Computers,Software/Hardware Hi Standard Automotive,L.L.C. 543N 188.08 Autos,Trucks&Marine Equipment,Paris,Accessories&Services Hill Brothers 840 191 Chemicals,WatenWaslewater Treatment Hill Brothers 848 33,468.66 Chemicals,WasuWastewater Treatment Home Deed M369 80.72 Miscellaneous Pads and Supplies Havant Ridley Company 54601 4,270.00 Repair Maintenance Services anchor Supplies Hub Auto Supply M370 350.09 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Hub Ado Supply 54502 133.92 Autos.Trucks&Marine Equipment,Pads.Accessories&Services LD.Industries,Inc. M372 632.53 Repair&Maintenance Services and/or Supplies Indiana Child Support Bureau 54373 290.00 Judgments Payable Industrial Fabrics Corp. M374 13,449.58 Repair&Maintenance Services anchor Supplies Industrial Metal Supply 54375 2,820.96 Repair&Maintenance Services and/or Supplies Inplant Sales,L.L.C. 54504 621.62 Repair&Maintenance Services and/or Supplies Inside EPA 54605 160.00 Subscription Interstate Batteries of Cal Coast M506 2,307.98 Repair&Maintenance Services andhar Supplies Intl.Union of Oper.Eng.AFL CIO Local 501 54376 4,662.18 Dues Deductions Irvine Pipe&Supply M507 507.23 Repair&Maintenance Services and/or Supplies J.Fletcher Creamer&Son,Inc. 54447 501,562.00 Construction Jacobs Project Management Co. M323 81,964.85 Professional Servicesi-finn mr,Services James D.Niswonger 54585 743.22 MeetinghTaining Expense Reimbursement Jamison Engineering Contactors,Inc. M508 4,995.00 Professional Servicea/Consimdion Support Services Jays Catering 54377 1,353.51 Catering Services Jeffrey L.Key 54588 1,150.50 Meetingfraining Expense Reimbursement Jennifer L.Alexander 54581 190.00 Professional Organizations MeetinglTaining/Membership Johnstone Supply 54509 890.49 Repair&Maintenance Services and/or Supplies Karl Insurance Company 54510 2,476.11 Voluntary Benefits-SSTD Insurance Kemira Water Solutions All 48,294.00 Chemicals,WasnWaslewator Treatment Kemira Water Solutions 850 36,317.00 Chemicals,WasuWastewater Treatment Lee&go,Inc. 54379 1,591.47 Professional Services/Engineering Design Services Lee&Ro,Inc. 54511 5,099.37 Professional ServicesrEngineering Design Services EXHIBITA fnrzrwmm Page 3 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2/15/13 Vendor Warrant No. Amount Description Liebed Cassidy 54512 890.00 Professional ServiceslEmployee Relations Lucas Gourmet Foods,Inc. 54513 149.90 Catering Services Mainline Information Systems 54381 22,417.11 Computer Applications&Services Marcus D.Dubois 544M 680.16 MeetinglTraining Expense Reimbursement Matheson Tri Gas,Inc. 54382 240.75 Laboratory Services&Supplies McMaster-Carr Supply Co. 856 1,746.82 Repair&Maintenance Services and/or Supplies MCR Technologies,Inc. 54514 4,351.90 Repair&Maintenance Services and/or Supplies Miele,Inc. 54515 93.48 Laboratory Services&Supplies Mine Safety Appliance 867 5,002.66 ElectncalMoctronic Equipment,Parts&Repairs Moore Medical Inc. M516 237.62 Medical Supplies Moore,Kathleen C. 54380 12,208.72 Septic Tank User Refund Motion Industries,Inc. M517 1,274.46 Electrical0ectronic Equipment,Pacts&Repairs MWH Americas,Inc. 54442 65,228.97 Professional ServiceslEngineering Design Services Neal Supply Co. M519 24.30 Repair is Maintenance Services and/or Supplies New West Builders 54518 673.00 CFCC Fees Refund Newark Electronics M520 804.02 Electrical/Electsmic Equipment,Parts&Repairs North Central Labs 54621 263.12 Laboratory Services&Supplies Nodhem Tool&Equipment W67 161.28 Electrical Pads&Supplies NRG Engine Services,L.L.C. 54522 13,838.75 Repair&Maintenance Services and/or Supplies OCEA M383 711.75 Dues Deductible Ocean Test Equipment,Inc. 543M 1,646.75 Autos,Trucks&Marine Equipment,Paris,Accessories&Services Office Depot M385 932.59 Office Supplies Office Depot 54523 345.12 Office Supplies Olin Corporation M386 9,506.28 Chemicals,WatesWastewater Treatment Olin Corporation 54524 3,987.34 Chemicals,WatepWastewater Treatment Olin Corporation 54524 9,161.70 Chemicals,WaterMastewater Treatment Omega Engineering Inc 54387 1,937.41 Elecidcel/Electronic Equipment,Pads&Repairs OneSouroe Distributors,Inc. M525 558.37 ElectncallElectsmic Equipment,Parts&Repairs Oracle America Inc. 543H 2,139.03 Software Maintenance Agreement Orange Coast Auto Body,Inc. M389 5,334.76 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Orange County Auto Pads 54390 166.07 Truck Supplies Orange County Auto Parts M526 18.49 Truck Supplies Orange County United Way 54391 40.00 Employee Contributions Orange County Vector Control District M527 160.66 Pest Control P.Thys DeVnes 54583 250.00 Employee Computer Loan Program Pace,Inc. M392 1,095.00 Professional Services Pacific Mxhanical Supply 868 664.29 Repair&Maintenance Services and/or Supplies Parker Supply Company 859 1,846]5 Miscellaneous Pads and Supplies Parkhouse Tire,Inc. 54393 265.73 Autos,Trucks&Marine Equipment,Pads,Accessories&Services Parkson Corporation M528 1,392.23 Mechanical Pans&Supplies PBS&J 54322 127,102.36 Professional ServiceslEngineering Design Services Peace Officers Council of CA 54394 2,265.50 Dues Deductions,Supervisors&Professionals Polydyne,Inc. 849 103,955.04 Chemicals,WatepWastewater Treatment Ponton Industries,Inc. M395 4,155.00 Laboratory Services&Supplies Ponton Industries,Inc. 545N 15,849.91 Laboratory Services&Supplies Postmaster General 54436 500.00 Postage Power Bros.Machine,Inc. 543% 456.00 Repair&Maintenance Services and/or Supplies Powerlo Products,Inc. 54530 97.21 Repair&Maintenance Services and/or Supplies Pmxmr Distribution,Inc. 54397 369.60 Laboratory Services&Supplies EXHIBITA OnrzlWmm Page 4 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2115/13 Vendor Warrant No. Amount Description Precision Digital Corporation 54531 787.59 Repair&Maintenance Services andfor Supplies Poodle West 54532 7,164.77 Computers,Sofhvzre/Hardware Presidia West 54533 736.65 Computers,Software/Handel re Primary Source Office Furnishings,Inc. 543M 16,980.24 Minor EquipmentlFurniture&Fixtures Projects Partners 543N 7,392.00 Professional Services/Temporary Employment Services PSOMAS 54400 8,800.00 Computer Applications&Services Pump Action 54534 4,304.05 Oil Filters Q Air-Calif.Div.Pump Engineering 54401 1,339.83 Repair&Maintenance Services and Supplies Quickstart Intelligence 54635 3,672.00 Professional Organizations MeetinglTreiningfMembership Rainbow Disposal Co. 54404 3,499.00 Waste Disposal Rehab West,Inc. 54537 841.66 Human Resources Services Restek Corp. 54405 190.00 Laboratory Services&Supplies RF MacDonald Co. 54402 2,994.00 Repair&Maintenance Services andfor Supplies RF MacDonald Co. M536 562.12 Repair is Maintenance Services antler Supplies RMC Water and Environment 54406 14,165.77 Professional Services Roto Rooter NOC#11 54407 195.00 Repair&Maintenance Services and/or Supplies Royale Cleaners 54406 153.50 Miscellaneous Services Royale Cleaners M538 114.50 Miscellaneous Services Safety Max 54409 419.07 Safety,Security,Health Equipment,Supplies,and Services San DiegofOange Fluid System Technologies,Inc. 54410 696.47 Repair&Maintenance Services and/or Supplies San DiegofOmnge Fluid System Technologies,Inc. 54639 1,118.34 Repair&Maintenance Services andfor Supplies Sancon Engineering,Inc. M324 28,531.00 Repair&Maintenance Services and/or Supplies Sancon Engineering,Inc. 54540 8,101.00 Repair&Maintenance Services and/or Supplies SARBS-CWEA 54435 50.00 Professional Organizations MeetinglTainingfMembership Schwing Bioset 845 526.95 Repair&Maintenance Services andfor Supplies Salon Name Plate 54541 1,065.24 $ignage Supplies Saver Equipment Company of America 54542 136.19 Repair&Maintenance Services and/or Supplies Shepard Brothers,Inc. 54543 3,445.20 Chemicals,WatedWastewater Treatment Shunduck Sales&Engineering 54412 25.86 Repair&Maintenance Services andfor Supplies $hureluck Sales&Engineering 54544 845.21 Repair&Maintenance Services andler Supplies Siemens Energy,Inc. 54545 4,644.00 Repair&Maintenance Services and/or Supplies Sigma-Aldrich,Inc. 54546 351.02 Laboratory Services&Supplies Simon L.Watson 54586 1,096.53 MeetinglTreining Expense Reimbursement $KC West,Ina 54547 230.81 Laboratory Services&Supplies Snap On Industrial 54413 122.22 Tools Snap On Industrial 54W 276.20 Tools So.Cal Gas Company 54443 29,998.10 UBlities South Coast Environmental Co. 54411 1,669.03 Professional Services-Air Quality Monitoring Southern California Edison 54414 261.93 Utilities Southern California Edison 54550 1,601.07 Utilities Sparklett-Dallas 54651 1,184.40 Miscellaneous Services $PEX Cediprep,Inc. M552 471.58 Laboratory Services&Supplies St.Croix Sensory,Inc. 54553 1,980A0 Olfactometry Testing Services Staheli Trenchless Consultants,Inc. 54554 6,106.50 Constmdion Staples 54415 431.08 Office Supplies Staples 54555 4,024.06 Office Supplies State Board of Equalization 545M 5,732.00 Governmental Agency Fees&Charges State of California 54557 68.30 Governmental Agency Fees&Charges Statewide Traffic Safety And Signs 545H 1,147.68 Miscellaneous Pads and Supplies EXHIBITA fniols— Page 5 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2115/13 Vendor Warrant No. Amount Description Summit Training Source,Inc. 54416 3,731.25 Safety Training Supplies Sunset Industrial Pads 54560 77.50 Repair&Maintenance Services andlor Supplies Tektronix Inc W17 126.00 Instrument Repairs&Calibration Services Term Renewal,L.L.C. M325 51,064.02 Grit&Screenings Disposal TestAmedca Ontano 846 210.00 Laboratory Services&Supplies TastAmerica Ontario 860 1,408.00 Laboratory Services&Supplies The Bank of Nay,York Mellon 54561 1,712.65 Quarterly Service Fee-Asset Administration The Fire X-Tinguisher Service Co. 54353 690.98 Safety,Security,Health Equipment,Supplies,and Services The Nam,Institute 54418 50.00 Professional Organizations MeetingffminingrMembership Theodore Robins Ford 54419 120.25 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Theodore Robins Ford 54562 19.84 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Thompson Industrial Supply,Inc. 847 555.52 Repair&Maintenance Services and/or Supplies Thompson industrial Supply,Inc. 861 3,856.39 Repair&Maintenance Services and/or Supplies Time Warner Communications 54420 62.10 Telecommunications Titus Industrial Group,Inc. 54421 4,328.01 Repair&Maintenance Services andror Supplies Toshiba Business Solutions USA Inc. 54422 941.47 Computers,Software/Hadbaore&Managed Services Tremco Incorporated 862 3,410.00 Repair&Maintenance Services and/or Supplies Triad Pacific 54563 1,300.00 Freight Truck&Auto Supply,Inc. W23 981.82 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Truck&Auto Supply,Inc. 54564 639.72 Autos,Trucks&Marine Equipment,Pans,Accessories&Services Tule RanchiMagan Farms 544 1 291,499.74 Biosolids Management UC Regents W25 1,500.00 Professional Organizations MeetimpTnaininglMembership UC Regents 54567 750.00 Professional Organizations MeetinglTrainingrMembership Underground Service Alen of So.Calif M565 1,513.50 Professional Services-Dig Alen Notification Service United Parcel Service W24 440.79 Freight Services Univar USA Inc 842 25,517.68 Chemicals,WatodWastewater Treatment Unwereal Flooring Systems,Inc. 54566 589.00 Facilities,Maintenance,Services&Supplies US Peroxide,L.L.C. M326 36,521.48 Chemicals,WaterMastewater Treatment US Peroxide,L.L.C. 546N 24,577.86 Chemicals,WatebWastewater Treatment V&A Consulting Engineers M569 6,689.76 Professional Services Vapex Products,Inc. 54570 2,641.20 ElectricallElecoonic Equipment,Pads&Repairs Verson Wireless W26 1,296.82 Telecommunications Veme's Plumbing W27 1,338.44 Plumbing Services&Supplies Veme's Plumbing M571 4,950.00 Plumbing Services&Supplies Village Nurseries W28 34.52 Repair&Maintenance Services andror Supplies Vision Financial Corporation M572 1,187.20 Employee Voluntary Benefits Voyager Fleet Systems,Inc. 54673 19,503.67 Autos,Trucks&Marine Equipment,Pans,Accessories&Services MR Scientific Products 54429 3,112.52 Laboratory Services&Supplies MR Scientific Products 54574 5,616.49 Laboratory Services&Supplies W.M.Lyles Co. 54448 341,854.65 Construction Water Environment Federation W30 187.00 Professional Organizations MeelinglTmininglMembership Water Environment Federation M575 228.00 Professional Organizations Meeting/rreininglMembership Walls Supply Co. 54576 54.82 Repair&Maintenance Services amber Supplies West Coast Arbonsts,Inc. 54577 750.00 Landscape Maintenance Services Woodruff Sport lin&Smart 54445 93,904.08 Professional Services-Legal Xerox Corporation 863 117.67 Computers,Software/Hardware&Managed Services Xyon Business Solutions,Inc. 54431 1,440.00 Professional Services7remporary Services Xyon Business Solutions,Inc. 54578 2,025.00 Professional ServicesTemporary Services Vale/Chase Materials Handling,Inc. W32 1,864.93 ElectncalMocbonic Equipment,&Electric Cad Pans&Repairs EAHIBITA fnrzlWmm Page 6 of 7 VM013 Return to Agenda Report Claims Paid From 2/1/13 to 2115/13 Vendor Warrant No. Amount Description 24 Hour Fire Protection,Inc. 54579 4,112.60 Repair&Maintenance Services and/or Supplies Total Accounts Payable-Warrants $ 3,853,371.68 Payroll Disbursements Employee Paychecks W749 - W771 $ 3,816.33 Interim Payroll-ARBA(VO1/13) Employee Paychecks W772 - W833 106,095.99 Biweekly Payroll(2r06113)' Employee Paychecks M836 - M837 3,539.41 Interim Payroll-Rate(V05/13) Employee Paychecks N838 254.60 Interim Payroll-Retirements(2/07/13) Direct Deposit Statements 332602-332771 29.72176 Interim Payroll-ARBA(2/01/13) Direct Deposit Statements 332772-333356 1,423,797,32 Biweekly Payroll(2r06/13) Total Payroll Disbursements $ 1,667,225.41 check numhere spa34s093suuilnlonar(kewsl Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 799,587.88 Biweekly Payroll(VO6/13) Union Bank of Caldernie 19,579.26 Workers'Compensation Services(2/14/13) Total Wire Transfer Payments $ 819,167.14 Total Claims Paid 2101113-2115113 $ 6,239,764.23 EXHIBITA fnrzrwmm Pape 7 of 7 VM013 Return to Agenda Report Claims Paid From 2/16/13 to 2/28113 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 874 $ 16,501A2 Repair&Maintenance Services and/or Supplies ACCU Sludge 54689 1 291 72 Laboratory Services&Supplies AccuStandard M690 446.33 Laboratory Services&Supplies Advanced Cooling Technologies 545N 540.00 Repair&Maintenance Services and/or Supplies Aerotek 546M 1,258.05 Professional Servicesfferewrary Services Agilent Technologies,Inc. 54691 990.36 Laboratory Services&Supplies Air Liquids America Specialty Gases LLC 54692 7,789.20 Laboratory Services&Supplies Air Products&Chemicals,Inc. 54601 13,021.00 Chemicals,WatenWasteeater Treatment Air Products&Chemicals,Inc. 54693 9,016.81 Chemicals,WatooWastewater Treatment Airgas Safety,Inc. 875 8,709.72 Safety,Security,Health Equipment,Supplies,and Services Airgas USA,LLC 864 1,393.0 Laboratory Services&Supplies Airgas USA,LLC 876 1,077.04 Laboratory Services&Supplies All American Sewer Tools 546N 3,697.43 Repair&Maintenance Services and/or Supplies Allied Electronics,Inc. 54695 202.97 Electiical0ectionic Equipment,Pads&Repairs Alta-Robbins,Inc. 54697 786.84 ElectricaVElectronic Equipment,Parts&Repairs Amtech Elevator Services 546H 1,035.00 Miscellaneous Services Analytical Instrument Services 54603 111 Repair&Maintenance Services and/or Supplies Andrew H.Neu 54673 120.25 MeetingfTmining Expense Reimbursement AppleOne Employment Service 865 6,714.57 Professional Services/Temporary Services Applied Industrial Technology 546N 415.32 Repair&Maintenance Services and/or Supplies Archie lvy,Inc. 546N 780.00 Repair&Maintenance Services and/or Supplies Anna International Inc 54701 399.00 Professional Organizations MeetingfTraining/Membership ASCE 54605 320.00 Professional Organizations MeetinglTminingfMembership Ashbrook Simon Hadley Operations,L.P. 54702 1,130.83 Repair&Maintenance Services and/or Supplies ASTM 54703 41.00 Books and Publications AT&T 54688 248.20 Telecommunications AT&T Long Distance. 54607 22.71 Telecommunications AT&T Mobility ll,L.L.C. 547N 549.93 Telecommunications AT&T Universal Biller M606 146.38 Telecommunications AT&T Teleconference Services 54705 32.92 Telecommunications ATM AA,Inc. 54706 280.00 Laboratory Services&Supplies Battery Specialties 54707 101.09 Batteries,Various BC Wire Pops&Rigging 54708 43.20 Tools&Supplies Biospherical Instruments,Inc. 54608 534.45 Repair&Maintenance Services and/or Supplies BNSF Railway Company M609 600.00 Professional Services 241.N BOC Edwards Inc. 54727 207.37 Laboratory Services&Supplies Brian J.Tafolla 54854 100.00 Meetingfrreining Expense Reimbursement Bureau Ventas North America,Inc. 877 1,585.00 Industrial Hygiene Services Burlington Safety Laboratory of CA,Inc. 54709 519.63 Safety,Security,Health Equipment,Supplies,and Services Caliagua,Inc. 54W 16,382]5 Construction Cflhfomia Bank&Trust#201037519 54668 8,514.64 Construction California Dept.of Child Support 54610 2,786.85 Judgments Payable Cal-Therm Inc. 54710 1,950.00 Repair&Maintenance Services and/or Supplies Cadhol Corporation 54677 26,100.00 Repair&Maintenance Services and/or Supplies Carl Warren&Co. 54711 600.00 Professional Services-Workers'Compensation Camillo Engineers 54611 9,586.19 Professional ServicenuEngineering Design Services Caputo Engineers 54678 31,021.84 Professional ServicesfEngineering Design Services Caputo Engineers 545H 32,471.42 Professional Services EXHIBIT B fnretwmm Page t of 7 WWO133 Return to Agenda Report Claims Paid From 2I16113 to 2/26/13 Vendor Warrant No. Amount Description Carmel,Environmental,Inc. 54712 4,291.87 CEMS Maintenance Agreement Centre for Organization Effectiveness 54659 775.00 Professional Services-Cultural Assessment&Organizational Improvement Project Chris A.Stri in 54853 1,330.50 Meeting/Training Expense Reimbursement City of Brea 54589 55,571.20 CFCC Refund City of Huntington Beach 54747 10,769.29 Water Use City of Newpod Beach 54775 1,092.16 Water Use City of Newport Beach 54857 1,392.00 Water Use CODESP 54612 2,125.00 Professional Organizations MeetinglTmining/Membership Cole-Parmer Instrument Co. 54713 130.77 Laboratory Services&Supplies Columbia Analytical Services 54602 1,587.00 Laboratory Services&Supplies Columbia Analytical Services 546% 450.00 Laboratory Services&Supplies Condition Monitoring Solutions M714 30.17 ElectdcallElectsmic Equipment,Parts&Repairs Consumers Pipe&Supply Co. 866 1,866.24 Repair&Maintenance Services andfor Supplies Consumers Pipe&Supply Co. 878 4,112.19 Repair is Maintenance Services andlon Supplies Corner Bakery Care(CBC) 54716 290.09 Catering Services Codech Engineering M717 5,646.82 Repair&Maintenance Services and/or Supplies County of Orange Auditor Controller 54613 300.00 Governmental Agency Fees&Charges County of Orange Auditor Controller M614 270.00 Governmental Agency Feas&Charges County of Orange Auditor Controller 54615 915.00 Governmental Agency Fees&Changes County of Orange Auditor Controller M718 495.00 Governmental Agency Fees&Charges Court Order 546M 2,179.38 Judgments Payable Court Order 54656 108.00 Judgments Payable Court Order 54666 912.50 Judgments Payable CR&R,Inc. 54719 673.56 Waste Disposal CS-AMSCO 54617 4,066.21 Repair&Maintenance Services andfor Supplies CS-AMSCO 54720 872.64 Repair is Maintenance Services andlon Supplies CWFA Annual Conference 54618 350.00 Professional Organizations MeatingffminingtMembership David M.Reiss,M.D.,Psychiatry 54619 950.00 Human Resources Services David Wheeler Pest Control,Inc. 54721 3,230.00 Pest Control Services Danovo Ventures LLC 51 7,275.00 JOE Upgrade Consulting Services Desert Pumps&Pads,Inc. 54723 6,632.86 Repair&Maintenance Services and/or Supplies DIVAmans Valve M620 106.71 Test Valve for API Compliance Dmke Controls-West,L.L.C. 54724 2,978.00 ElectricaMecbonic Equipment,Pads&Repairs Dunn-Edwards Corporation 54725 305.09 Facilities.Maintenance,Services&Supplies Eberhard Equipment 54726 497.61 Tractor Repair Electri M621 1,463.40 Repair&Maintenance Services and/or Supplies Emerson Process Management,L.L.P. 54728 414.84 Repair&Maintenance Services andfor Supplies Employee Benefits Specialists,Inc. 54622 12,726.76 Reimbursed Prepaid Employee Medical is Dependent Care Enchanter,Inc. 54623 3,800.00 Vessel Services-Marketing Vessel Nerissa Environmental Resource Associates 54729 965.54 Laboratory Services Is Supplies Environmental Resource Center 54624 1,574.49 Safety,Security,Health Equipment,Supplies,and Services Environmental Resource Center 54730 739.35 Safety,Security,Health Equipment,Supplies,and Services Eros Yong 54674 250.00 MeetinglTraining Expense Reimbursement Ewing Irrigation 54625 173.39 Irrigation Repair&Maintenance Services and/or Supplies Excel Door&Gate Co.,Inc. 54626 580.17 Repair&Maintenance Services andfor Supplies Fatlex Corporation 54627 13.85 Freight Services Fades Corporation 54731 62.52 Freight Services First American Comfogic 54715 6,258.17 Sofbvare Maintenance Agreement Fisher Scientific 54628 897.06 Laboratory Services&Supplies EXHIBIT B fnUmerm Page 2 of 7 WWO133 Return to Agenda Report Claims Paid From 2116/13 to 2/28/13 Vendor Warrant No. Amount Description Fisher Scientific 54732 8,194.95 Laboratory Services&Supplies Fluideadl Inc. 54733 1,558.50 Repair&Maintenance Services and/or Supplies Franchise Tax Board 54629 360.00 Judgments Payable Garland Manufacturing Co. M630 800.33 Repair&Maintenance Services and/or Supplies Gates Fiberglass Installers 54734 4,946.00 Repair&Maintenance Services and/or Supplies Giedich-Mkchell,Inc. 54735 1,080.33 Repair&Maintenance Services and/or Supplies Goodyear Tim&Rubber Company 54736 3,005.69 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Government Finance Officers Association 54631 785.00 Professional Organizations MeetinglTaining/Membership Grainger,Inc. 54737 380.49 Repair&Maintenance Services and/or Supplies Grail Electric Company 54738 8,068.61 ElechicallElecbonic Equipment,Pads&Remains Greintach Landscape,Inc 54739 395.00 Landscape Maintenance Services Hach Go Ponton Industries 54740 310.64 Laboratory Services&Supplies Hach Company 54741 101.46 Laboratory Services&Supplies Hardy Diagnostics 54742 41.78 Laboratory Services&Supplies Haningen Industrial Plastics,Inc. 54743 6,938.49 Repair&Maintenance Services and/or Supplies Hasler,Inc. 54744 64.65 Postage Meter Rental HOP Engineering,Inc. 54632 2,832.00 Professional Services/Engineering Design Services Helix Electric,Inc. M687 401,091 Constmcton HeWeft Packard Company 54745 8,160.36 Computers,Softess./Hardwsre Hill Brothers 871 109,814.83 Chemicals,WatedWastewater Treatment Home Depot 54146 619.37 Miscellaneous Pads and Supplies IDEXX Distribution,Inc. 54748 6,037.20 Laboratory Services&Supplies Indiana Child Support Bureau 54633 290.00 Judgments Payable Industrial Distribution Group M749 67.07 Repair&Maintenance Services and/or Supplies Industrial Electric Machinery LLC 547H 5,896.95 Repair&Maintenance Services and/or Supplies Inorganic Ventures,Inc. 54751 110.43 Laboratory Services&Supplies Intl.Union of Oper.Eng.AFL CIO Local 501 54634 4,708.84 Dues Deductions Ironman Pans&Services 54752 164.59 Repair&Maintenance Services and/or Supplies Irvine Ranch Water District 54635 9.30 Water Use J I Solutions,Inc. 54754 437.59 Laboratory Services&Supplies J R Filanc Construction 54755 13,895.00 Construction James D.Heiberg M670 654.55 MeetinglTaining Expense Reimbursement James D.Ruth 54852 453.46 MeetinglTaining Expense Reimbursement James G.Tinge 54855 330.59 Meeting/rreining Expense Reimbursement Jamison Engineering Contractors,Inc. 54756 4,950.00 Professional Services/Construction Support Services Janet L.Gay 54669 231.54 MeetinglTaining Expense Reimbursement Jays Catering 54757 668.25 Catering Services JCI Jones Chemicals,Inc. 869 4,808.70 Chemicals,WatiroWasta"ter Treatment JIG Tucker And Son,Inc. 54753 628.84 Safety,Security,Health Equipment,Supplies,and Services John S.Anderson 54856 655.98 MeetinglTaining Expense Reimbursement Johnstone Supply 547H 220.90 Repair&Maintenance Services and/or Supplies JP Morgan Chase Bank,NA M591 46,493.95 Purchasing Card Program for Miscellaneous Pads and Supplies Kaman Industrial Technologies 54759 88.62 Repair&Maintenance Services and/or Supplies Kendra Water Solutions 873 93,156.56 Chemicals,WaterMasteadder Treatment L.Johnson Painting 54637 2,220.00 Facilities,Maintenance,Services&Supplies Lab Support 54638 5,292.00 Professional Services/Temporary Services Laum Marayilla 54672 209.04 MeefinglTmining Expense Reimbursement LECO Corporation 54592 31,048.95 Laboratory Services&Supplies LECO Corporation 547N 14,330.00 Laboratory Services&Supplies EXHIBIT B gMifomm Page 3 of 7 WWO13 Return to Agenda Report Claims Paid From 2116113 to 2f28113 Vendor Warrant No. Amount Description Liberty Mutual Claims 54761 165.66 Insurance Lillestrand and Associates 54762 1,772.25 Professional Services Loggerhead Navigation Inc 54763 3,252.00 Tools&Supplies Loran Education Services 54639 112.27 Professional Organizations MeetinglTainingrMemberehip L.'s HIW,Inc. 54640 24.52 Repair&Maintenance Services andlor Supplies Mail Dispatch,LLC 54764 314.70 Mail Delivery Service Malcolm Pimie,Inc. 54593 32,520.94 Professional Services/Engineering Design Services Marine Taxonomic Services 54641 17,550.00 Laboratory Services&Supplies Marmc Electronics 54765 89.38 ElectncapElectronic Equipment,Parts&Patients Matheson To Gas,Inc. 54766 4,792.51 Laboratory Services&Supplies Maximo Utility Working Group fMUWG) 54767 1,56ono Professional Organization&MeetinglTmining Registration MBC Applied Environmental Sciences 54768 3,350.00 Professional Services-Regional Ocean Monitoring McMaster-Carr Supply Co. 879 2,415.47 Repair&Maintenance Services andlor Supplies Mettler-Toledo 54769 1,232.92 Computer Applications&Services Mid-West Associates,Inc. 54770 1,461.18 Repair&Maintenance Services andror Supplies Morrow Meadows Corp. 54597 331,177.50 Construction National Fire Protection Association 54771 165.00 Professional Organizations MeetinglTminingrMemberehip National Fire Protection Association M858 895.00 Professional Organizations Meeting/rruninglMemberehip National Water Research Institute 54642 10,000.00 Professional Organizations MeetinglTrainin,pMembership Neal Supply Co. 54772 4,931.28 Repair&Maintenance Services andlor Supplies NetwurkFleet,Inc. 54773 2,819.48 Sofhvam Maintenance Agreement Newark Electronics 54774 65.61 ElectiicallElectronic Equipment,Pads&Repairs Ninyo&Moore 54643 1,135.00 Professional Services/Geotech&Material Tasting Ni.Sports LTD 54776 1,011.33 Bicycle Purchases Norman A.Traub Associates 54W 3,910.10 Legal Services Northeast Laboratory Services,Inc. 54777 890.45 Laboratory Services&Supplies OCB Reprographics 54700 3,127.54 PrintingrReprogrephics Services OCEA 54645 711.75 Dues Deductible Office Depot 54778 3,970.92 Office Supplies Officemax Incorporated 54779 401.28 FumiturelFixtures Olin Corporation 54W 4,190.70 Chemicals,WaterrWastawater Treatment Olin Corporation 54646 4,622.00 Chemicals,WaterrWastawater Treatment Olin Corporation 54780 6,930.29 Chemicals,WaterNJastewater Treatment Omega Engineering Inc 54781 192.30 ElectricallElechonic Equipment,Parts&Repairs Omega Industrial Supply,Inc. 54782 2,375.17 Janitor&Household Service&Supplies OneSource Distributors,Inc. 54783 14,604.01 ElectricallElectumnic Equipment,Parts&Repairs Orange County Engineering Council(Ocec) 547M 85.00 Professional Organizations MeetinglTreininglMembership Orange County Sanitation District 54676 1,085.93 Petry Cash Expense Orange County United Way 54647 40.00 Employee Contributions Orange County Vector Control District Sew 160.86 Pest Control PAC 54785 2,427.45 Laboratory Services&Supplies Pacific Mechanical Supply 880 5,353.54 Repair&Maintenance Services andlor Supplies Pamela A.Koester 54671 129.00 Meeting/Training Expense Reimbursement Pamela A.Koester 54851 228,00 MeetinglTraining Expense Reimbursement Penthouse Tire,Inc. 54786 1,698.87 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Parkson Corporation 54787 3,869.58 Mechanical Parts&Supplies PCS Express,Inc. 54649 245.78 Courier Services Peace Officers Council of CA 54650 2,265.50 Dues Deductions,Supervisors&Professionals Phenomenex 547H 434.88 Laboratory Services&Supplies EXHIBIT B fnclWmm Page 4 of 7 WWO133 Return to Agenda Report Claims Paid From 2/16/13 to 2/28113 Vendor Warrant No. Amount Description Pivot Interiors Inc. 54789 711.65 Office SuppliesTumiture PL Hawn Company,Inc. 54790 2,235.19 Repair&Maintenance Services and/or Supplies Plumbers Damp,Inc. 54791 2,592.00 Repair&Maintenance Services and/or Supplies Polydyne,Inc. 872 86,T16]9 Chemicals,Water/Wastewater Treatment Pointed Industries,Inc. 54792 1,351.92 Laboratory Services&Supplies Port Supply M651 3,942.10 Autos.Trucks&Marine Equipment,Paris,Accessories&Services Poseur Distribution,Inc. 54793 711.25 Laboratory Services&Supplies Presidia West 54794 765.42 Computers,Software/Hardware Primrose Ice Co.,Inc. 54652 131.25 Water&Ice Services Primrose Ice Co.,Inc. 54795 105.00 Water&Ice Services Prepare Work Injury Center 54653 505.00 Medical Services Projectline Technical Services,Inc. 54654 4,026.50 Professional ServicesfEngmeering Design Services Prudential Insurance Company of America 54679 47,359.89 Benefits Prudential Overall Supply 881 7,891.06 Uniforms PSOMAS 547% 8,800.00 Computer Applications&Services Public Resources Advisory Group 54797 376.85 Professional Services/Engineering Design Services Pump Action 54798 680.64 Oil Filters Pyramid Fence Company,Inc. 54655 4,576.00 Fecildies,Maintenance,Services&Supplies Q Air-Calif.Div.Pump Engineering 54799 399.97 Repair&Maintenance Services and Supplies Radaisign,L.L.C. 54800 11,490.00 Safety,Security,Health Equipment,Supplies,and Services Rae Systems,Inc. 54801 1,064.25 Instrument Repairs Raymond Handling Solutions,Inc. M802 185.00 Material Handling Tools&Equipment Rebecca A.Brooks 54849 170.00 Meeting/Training Expense Reimbursement Reilly Workplace Investigations M803 17,03.10 Human Resources Services Rotor,Controls,Inc. 548N 473.01 Electrical/Electronic Equipment,Parts&Repairs Royal Wholesale Electric 54805 10,653.82 Repair&Maintenance Services and/or Supplies Royale Cleaners 548M 119.70 Miscellaneous Services Safety-Kleen 54807 334.45 Repair&Maintenance Services and/or Supplies San DiegofOmnge Fluid System Technologies,Inc. 54808 2,650.07 Repair&Maintenance Services andfor Supplies Sea Diego/Orange Fluid System Technologies,Inc. 54808 255.83 Repair&Maintenance Services and/or Supplies SARBS-CWEA 54859 100.00 Professional Organizations Meeting/TrsiningrMembership SAWPA(Santa Ana Water Protection Agency) 545N 243,450.82 Governmental Agency Fees&Charges SC Field Technical Services 548N 6,121.40 Repair&Maintenance Services andfor Supplies $chWng Biosel 882 2,716.23 Repair&Maintenance Services and/or Supplies Scientific Instrument Services,Inc. 54811 492.12 Laboratory Services&Supplies Sao Bid Electronics,Inc. 54812 3,574,25 Electrical/Eleciddic Equipment,Pads&Repairs Seaventures 54813 4,423.20 Ocean Monitoring $Kontos Security Services USA,Inc. 54595 31,324A6 Safety,Security,Health Equipment,Supplies,and Services SGS Testator,Inc. 54814 19.22 Computer Hadware and Services Shamrock Supply Co.,Inc. 54815 3,496.09 Repair&Maintenance Services and/or Supplies Shureluck Sees&Engineering 54816 2,689]4 Repair&Maintenance Services andfor Supplies Siemens Water Technologies Corp. 867 1,479.49 Repair&Maintenance Services andfar Supplies Sigma-Aldrich,Inc. 54817 329.96 Laboratory Services&Supplies Snap On Industrial 54818 224.28 Tools Solana Press Book,Inc. 54819 92.72 Books and Publications South Coast Environmental Co. 54810 6,865.61 Professional Services-Air Quality Monitoring Southern California Edison 545% 261,757.37 Utilities Southern California Edison 54680 67,008.16 Utilities Southern Counties Lubricants 54820 1,222.95 Fuel and Lubricants EXHIBIT B fnrztwmm Page 5 of 7 WWO133 Return to Agenda Report Claims Paid From 2/16/13 to 2/28113 Vendor Warrant No. Amount Description Sparkled-Dallas 54821 959.72 Miscellaneous Services $PEX Ceruprep,Inc. 54M 344.27 Laboratory Services&Supplies Stanek Constructors Inc 54598 76,631.76 Construction Stantec Consulting Services,Inc. 54657 4,102.00 Professional ServicesfSurveying Staples 54823 239.36 Office Supplies State Chemical Mfg Co. M824 404.76 Janitorial Supplies Stericycle Inc 54825 707.22 Waste Disposal Stryper Technologies 54656 3,723.66 Computer Hardware&Software Summit Steel 883 4,123.21 Repair&Maintenance Services andfor Supplies $ynagro West,Inc. M681 194,360.56 Biosolids Management TCH Associates,Inc. 54826 970.45 Laboratory Services&Supplies TekSystems 868 3,006.00 Professional Services/Temporary Services Tens Renewal,L.L.C. 54682 53,418.21 Grit&Screenings Disposal The Cal Group,Inc. 54827 2,381.82 Repair&Maintenance Services anchor Supplies The Creative Group 54616 4,735.50 Professional Services/Temporary Services The Walking Man,Inc. 54828 825.00 Miscellaneous Services Thompson Industrial Supply,Inc. 884 2,616.66 Repair&Maintenance Services andfor Supplies Tim H.Hopkins 54675 1,496.49 Meetingffmining Expense Reimbursement Tongs Lock&Safe Service&Sales 54660 739.68 Repair&Maintenance Services andfor Supplies Total Resource Management,Inc. 54683 223,304.09 Professional Servicesflmplementation of IBM Maxim Townsend Public Affairs 548N 7,500.00 Professional Services-State Legislative Advocacy Tref0c Logix Corporation 54830 11,830.50 Safety,Security,Health Equipment,Supplies,and Services Trenscet 885 2,778.61 Repair&Maintenance Services andfor Supplies Trani Incorporated 886 7,268.00 Repair&Maintenance Services and/or Supplies Triad Pacific 54831 930.00 Freight Troy D.Edgar 548N 588.89 Meeting/rreining Expense Reimbursement Tule RancIVMegan Farms 546M 303,100.12 Biosolids Management TW Telecom Holdings,Inc. 54832 9,478.63 Telecommunications Two Wheels One Planet 54661 613.03 Autos,Trucks&Marine Equipment,Parts,Accessories&Services U S Bank 54662 1,605.00 Annual COP Administrative Fee UC Regents 54685 33,000.00 Professional Organizations Meetingf iraininWMembership Union Bank of California 54833 1,038.80 Banking Services United Parcel Service 54663 456.52 Freight Services United Parcel Service 548M 329.30 Freight Services Unwar USA Inc 870 19,037.12 Chemicals,WatenWastewater Treatment UPS Ground Freight,Inc. 54837 265.31 Freight Services US Peroxide,L.L.C. 54686 74,410.72 Chemicals,WaterMastewater Treatment USC 54835 5,882.01 Professional Servicesl$tudies USC 548H 3,211.54 Professional Services/Studies Valley Power Systems,Inc. 548M 330.05 Repair&Maintenance Services and/or Supplies Vapex Products,Inc. 54839 12,612.23 ElectricaVElectronic Equipment,Parts&Repairs Vemek Plumbing 546M 4,492.47 Plumbing Services&Supplies Veme's Plumbing 54840 596.82 Plumbing Services&Supplies Village Nurseries 54841 10.08 Repair&Maintenance Services and/or Supplies MR Scientific Products 54842 2,162.47 Laboratory Services&Supplies Water Environment Federation 54665 228.00 Professional Organizations Meeting/rraininglMemberehip WateReuse Association 54843 400.00 Professional Organizations MestingfTrainingrMembership Waxie Sanitary Supply 54W 985.50 Janitor&Household Service&Supplies West Lite Supply Company,Inc. 54845 1,613.57 ElectricaVElecronic Equipment,Pads&Repairs EXHIBIT B fnrzWmm Page 6 of 7 WWO133 Return to Agenda Report Claims Paid From 2116/13 to 2/28113 Vendor Warrant No. Amount Description Western Blue/Insighi/Heviett Packard 54846 1,421.94 Computers,Sof erme/Harlaare Workforce Sofhvare,Inc. 54847 12,933.00 Computer Applications and Services Yorba Linda Water District 54667 42.74 Utilities Total Accounts Payable-Warrants $ 3,608,966.69 Payroll Disbursements Employee Paychecks M839 - M880 $ 92,100.83 greasily Payroll(2120/13) Employee Paychecks N881 - N883 1,112.78 Inlenm Payroll-Reissue DireQDeposk82Retine (2I19/13) Employee Paychecks 50884 1,905.32 Interim Payroll-Termination Hours(M1/13) Employee Paychecks 50885 1,611.76 Interim Payroll-Termination Leave Payout(V21/13)' Employee Paychecks 50949 3,048.36 Interim Payroll-Resignation Hours(V28/13) Employee Paychecks N950 1,321.36 Interim Payroll-Resignation Leave Payout(=8/13) Direct Deposit Statements 333357 -333926 1,422926.81 Bivreekly Payroll(2/20/13) Total Payroll Disbursements $ 1,524,027.22 'check numnes 50ee6-50918 m be used in future wood. Wire Transfer Payments OCSD Payroll Taxes 8 Contributions $ 796,840.31 Bivreekly Payroll(220/13) Omni County Flood Control District 10,000,000.00 SARI Line Paged(V27/13) Total Wire Transfer Payments $ 10,796,840.31 Total Claims Paid 2116113-2128113 $ 15,929,834.22 EXHIBIT B fni Page 7 of 7 WWO133 BOARD OF DIRECTORS Mewing Dare I TOBfI.o(Dir. — o3/Z7/13 AGENDA REPORT ern Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: MAINTENANCE REPAIRS OF TRICKLING FILTERS NO. 1 & 2 at PLANT NO. 1 GENERAL MANAGER'S RECOMMENDATION A. Ratify a Sole Source maintenance repair service agreement with Ovivo USA, LLC for trickling filters No. 1 & 2 at Plant No.1 for an amount of$144,773; and, B. Approve a contingency of$14,477 (10%). SUMMARY Trickling filters are one of two types of secondary treatment processes operated by OCSD for removal of dissolved organic material prior to reuse or ocean outfall discharge. The process consists of two circular tanks filled with filter media and each tank has a set of four rotating distribution arms that evenly distribute the wastewater across the media. The trickling filter distribution arms rotate 24 hours a day 365 days a year and have been in service since March 2006. An inspection of both units by Ovivo, the original equipment manufacturer, (OEM) and OCSD staff revealed that the turntable that rotates each set of distribution arms are worn and are due for overhaul. In addition, there are two major components not part of the normal overhaul process that have cracked and need to be replaced. The OEM now fabricates these additional parts out of stainless steel so that they will not crack and will provide longer service life. PRIOR COMMITTEE/BOARD ACTIONS February 2013 — This maintenance repair service agreement was approved at the February 6, 2013 Operations Committee meeting, however it was determined Board approval is required subsequent to the February Board mailing deadline. ADDITIONAL INFORMATION The tricking filter is a biological process that can only be without water for no more than four hours at a time. Staff is recommending the sole source of the manufacturer to ensure the parts are manufactured to the correct tolerance and reduce the risk of the filters being out of service for an extended period of time causing loss of the biological Page 1 of 2 mass which would result in degradation of treatment performance and a potential reduction in supply water for the Ground Water Replenishment System (GWRS). CEQA A Notice of Exemption has been filed for this work. The work is categorically exempt from CEQA under section 15302 (c) — replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item was not budgeted and as such will require the deferral of other maintenance work if the additional expense cannot be absorbed in the current budget. ATTACHMENT The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package and attachments: • Ovivo Agreement (7 Pages) Page 2 of 2 Return to Agenda Report SOLE SOURCE SERVICE AGREEMENT Ovivo USA, LLC Maintenance Repair Service and Parts Trickling Filters 1 &2 at Plant No. 1 THIS AGREEMENT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Ovivo USA, LLC with a principal business at 4255 Lake Park Blvd., Suite 100, Salt Lake City, Utah 84120 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". RECITALS WHEREAS, OCSD desires to retain the services of Contractor for maintenance repair service and parts for trickling filters No. 1 &2 at Plant No. 1 "Services"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Purchasing Resolution No. OCSD07-04; and WHEREAS, on February 27, 2013, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and education and expertise to accomplish such Services, NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows: 1. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement") is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit"A". 1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein. Exhibits to this Agreement are as follows in order of precedence: Exhibit"A" Proposal from Contractor dated December 10, 2013 Exhibit"B" Safety and Human Resources Policies Exhibit"C" Acknowledgement of Insurance Requirements 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 1.4 The provisions of this Agreement may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any Paragraph or provision hereof. Orange County Sanitation District Page 1 of 7 Return to Agenda Report 1.6 The term "days", when used in the Agreement, shall mean calendar days, unless otherwise noted as business days. 1.7 Contractor shall provide OCSD with all required parts, Services, premiums and/or overtime work at no charge beyond the price provided under "Compensation" below without prior written authorization of OCSD Project Manager. 1.8 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation for this project shall not exceed the total amount of One Hundred Forty-four Thousand Seven Hundred Seventy-three and 00/00 Dollars ($144,773.00). 3. Payments Payments shall be made upon approval by OCSD Project Manager, Bernardo De Anda, or his designee, of invoices submitted for milestones completed as described in Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the tasks and deliverables for each milestone have been satisfactorily completed. 4. Audit Rights Contractor agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Agreement. 5. Invoices 5.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon. Contractor shall not pay less than the prevailing wage, if applicable. Invoices shall include the Purchase Order Number. 5.2 Invoices shall be emailed by Contractor to OCSD at the following email address and the Purchase Order number shall be referenced in the subject line: APStaffo.00SD.com. 6. Scope of Work Subject to the terms of this Agreement, Contractor shall perform the Services identified in Exhibit "A". Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 6. Exceptions OCSD takes exception to and rejects the terms and conditions submitted with the Proposal, Exhibit"A". 9. Aureement Tenn The Services provided under this Agreement shall commence on the date of Notice to Proceed be completed Eighty-five (85) days from Notice to Proceed ("Date of Completion'). 10. Termination 10.1 OCSD reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD, (delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Agreement (unless the Orange County Sanitation District Page 2 of 7 Return to Agenda Report notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 10.2 OCSD reserves the right to terminate this Agreement immediately upon OCSUS determination that Contractor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Agreement. 10.3 OCSD may also immediately cancel for default of this Agreement in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Agreement; or • if total amount of compensation exceeds the amount authorized under this Agreement. 10.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Agreement, whichever occurs first. 11. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "B"). Contractor shall not commence work under this Agreement until all required insurance is obtained in a forth acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Agreement. 12. Indemnification and Hold Harmless Provision Contractor agrees to save, indemnify, defend and hold harmless OCSD against any and all liability, claims, judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly or indirectly out of the negligence or willful misconduct of Contractor, its employees or agents, in relation to the rendition of services pursuant to this Agreement, except claims or litigations arising through the sole negligence or willful misconduct of OCSD. Contractor agrees to reimburse OCSD for any expenditure, including reasonable attorney's fees, OCSD may incur by reason of such matters, and, if requested by OCSD, will defend any such suits at the cost and expense of Contractor. 13. Warranty 13.1 Manufacturer's standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract. 13.2 Contractor's warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that any part of the Services fails to meet the standards required under this Agreement, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies). Orange County Sanitation District Page 3 of 7 Return to Agenda Report 14. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Agreement. 15. Freiaht (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 16. Independent Contractor It is agreed that Contractor shall act and be an independent contractor and not an agent or employee of OCSD, and shall obtain no rights to any benefits which accrue to OCSDS employees. 17. Limitations upon Subcontracting and Assignment Contractor shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 16. Licenses, Permits. Ordinances and Reaulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement will be paid by Contractor. 19. Applicable Laws and Regulations Contractor shall comply with all applicable federal, stale, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Agreement whether or not specifically referenced. 20. Familiarity with Work By executing this Agreement, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 21. Public Contracts Law 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. Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this project as required by Labor Code Section 1774 of the State of California. 22. Governing Law This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof. 23. Dispute Resolution 23.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of Orange County Sanitation District Page 4 of 7 Return to Agenda Report the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS'), or any similar organization or entity conducting an alternate dispute resolution process. 23.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 24. Performance Time is of the essence in the performance of this Agreement and the provisions hereof. 25. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSDS rights to seek remedies available to it for any subsequent breach. 26. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Agreement; (2) recover whatever amount of the purchase price OCSD has paid, and/or(3) "cover by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages. 27. Survival The provisions of this Agreement dealing with Payment, Warranty, and Forum for Enforcement, shall survive termination or expiration of this Agreement. 28. Severability If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 29. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 30. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. Orange County Sanitation District Page 5 of 7 Return to Agenda Report 31. Damage to OCSD'S Property Any of OCSD'S property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 32. Safety and Human Resources Policies Contractor shall adhere to the Safety and Human Resources Policies in Exhibit"B". 33. Attorney's Fees If any action at law or inequity 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 he may be entitled. 34. South Coast Air Quality Management District's (SCAQMD) Reguirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District(SCAQMD). All contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 35. Regulatory Reguirements Contractor shall perform all work under this Agreement in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, and 261, Title 22, 23, and California Water Codes Division 2. 36. Read and Understood By signing this Agreement, Contractor represents that he has read and understood the terms and conditions of the Agreement. 37. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. 36. Entire Agreement This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District Page 6 of 7 Return to Agenda Report 39. Notices All notices under this Agreement must be in writing. Written notice shall be sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Any facsimile notice must be followed within three (3) days by written notice. All notices shall be effective when first received at the following addresses: OCSD: Clarice M. Marcin Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Contractor: Ovivo USA, LLC IN WITNESS WHEREOF, the Parties hereto have hereunto set their hands the day and year indicated below. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair Board of Directors Dated: By: Clerk of the Board Dated: By: Contracts/Purchasing Manager OVIVO USA, LLC Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District Page 7 of 7 BOARD OF DIRECTORS Needng Dare I TOBfI.o(Dir. — o3/Z7/13 AGENDA REPORT em Number Item Number a Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering Project Manager: Jeff Mohr SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2, PROJECT NO. P2-92 GENERAL MANAGER'S RECOMMENDATION A. Consider, receive, and file the Final Subsequent Environmental Impact Report for the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, prepared by Environmental Science Associates, dated January 2013; and, B. Adopt Resolution No. OCSD 13-04, certifying the Final Subsequent Environmental Impact Report for implementation of Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92; making certain findings relating to environmental effects identified in the Final Subsequent Environmental Impact Report; adopting a Mitigation Monitoring and Reporting Program; adopting a Statement of Overriding Considerations; and approving the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92. SUMMARY The Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, will replace dewatering facilities that have reached the end of their service life. A newer dewatering technology employing centrifuges will be utilized and will reduce biosolids management costs. The Final Subsequent Environmental Impact Report (SEIR) found that while certain impacts can be mitigated to less than significant levels, the project will potentially result in significant and unavoidable impacts including cumulative air emissions during operational activities and temporary ambient noise impacts during construction activities. For this reason, a Statement of Overriding Considerations identifying the project's expected benefits was prepared for the Board's consideration. The Draft SEIR was circulated for a 45-day public review on October 18, 2012. The public review period ended December 3, 2012. A total of four comment letters were received during the public review period. A public hearing was held on November 15, 2012. Page 1 of 3 Comment letters received from the State Water Resources Control Board (SWRCB) and Department of Toxic Substances Control (DTSC) noted procedural requirements that are not applicable for this project. In addition, DTSC repeated comments provided on the Notice of Preparation that were addressed in the Draft Environmental Impact Report (EIR). The South Coast Air Quality Management District (SCAQMD) commented that additional information should have been presented to justify the findings in the Draft SEIR and also requested consideration of additional mitigation measures. The Final SEIR explains how emissions associated with the proposed Project would be less than under existing conditions, but includes the addition of a mitigation measure (Mitigation Measure 4.2-1, Final SEIR p. 12-9) to address concerns regarding cumulative emissions from biosolids haul trucks. A letter received from a City of Huntington Beach resident, Ann Tweedy, expressed concerns regarding potential air quality impacts to nearby marsh and wetland wildlife and to nearby residents. The Final SEIR addresses these comments by providing clarification that emissions associated with the proposed Project would be less than under existing conditions. The response also describes mitigation measures that address direct and cumulative impacts to neighboring residences. All of these comments have been responded to in the Final SEIR. Staff recommends approval of the Final SEIR prepared for the Sludge Dewatering and Odor Control at Plant No. 2, Project No. 132-92. ADDITIONAL INFORMATION None. PRIOR COMMITTEE/BOARD ACTIONS May 2005 - The recommended action was further analyzed in the Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project, dated March 2005. Pursuant to CEQA Guidelines section 15168(c)(4), the Sanitation District used a written checklist to document its evaluation of the recommended action, as presently designed, and determined that the recommended action required additional environmental review. The Draft SEIR and Final SEIR were prepared accordingly. October 1999 - The recommended action was first included in the Orange County Sanitation District's (Sanitation District) Strategic Plan Program Environmental Impact Report (PEIR) that was certified in October 1999. Page 2 d 3 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD websife (wwwocsd.coml with the complete agenda package and attachments: • Exhibit A: OCSD Resolution No. OCSD 13-04 (2 Pages) • Attachment A, Findings of Facts (20 Pages) • Attachment B, Statement of Overriding Considerations (3 Pages) • Attachment C, Mitigation Monitoring and Reporting Program (MMRP) (8 Pages) Final SEIR documents may be viewed on the Sanitation District's webpage: www.ocsewers.com NK:JM:dm:gc Page 3 of 3 Return to Agenda Report RESOLUTION NO. OCSD 13-04 CERTIFYING THE FINAL SUBSEQUENT ENVIRONMENTAL IMPACT REPORT FOR THE SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2,PROJECT NO. P2-92; ADOPTING A STATEMENT OF OVERRIDING CONSIDERATIONS; ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM; AND APPROVING THE PROJECT WHEREAS,the Orange County Sanitation District(OCSD)is presently considering the approval of a project known as the Sludge Dewatering and Odor Control at Plant No. 2,Project No. P2-92 (proposed Project), WHEREAS, the environmental impacts of the proposed Project were previously analyzed in the 1999 Strategic Plan Program Environmental Impact Report, State Clearinghouse No. 97101065, and in the Secondary Treatment and Plant Improvement Project Subsequent Environmental Impact Report, State Clearinghouse No. 2004031076,pursuant to the California Environmental Quality Act, Public Resources Code §§21000 et seq. and California Code of Regulations, Title 14, §§ 15000 et seq. (CEQA); WHEREAS, OCSD has caused to be prepared the Draft Subsequent Environmental Impact Report(Draft SEIR)for the proposed Project that assesses the significant environmental impacts,mitigation measures, and alternatives associated with the proposed Project; WHEREAS, OCSD has consulted with other public agencies and the general public, and provided such agencies and the public with the opportunity to provide written and oral comments on the proposed Project and the Draft SEIR as required by CEQA, including a public review period of 45 days which commenced on October 18, 2012 and ended on December 3, 2012; WHEREAS, on November 15, 2012,OCSD staff held a public hearing to provide a further opportunity for public agencies and the general public to comment on the Draft SEIR; WHEREAS, OCSD has reviewed the comments received and responded to the environmental concerns raised during the review and consultation process; WHEREAS, the comments received on the Draft SEIR, either in full or in summary, together with the OCSD responses have been included in the Final SEIR for the proposed Project; Return to Agenda Report WHEREAS,the Final SEIR,consisting of the Draft SEIR and the Responses to Comments Received on the Draft SEIR,has been presented to OCSD's Board of Directors (the Board) for review and consideration prior to the approval of, and commitment to, the proposed Project. NOW, THEREFORE, the Board hereby resolves, determines and finds, as follows: 1. That the Final SEIR has been completed in compliance with the requirements of CEQA; 2. That the Board has independently reviewed and considered the information contained in the Final SEIR and the Final SEIR reflects the independent judgment and analysis of the Board; 3. That the Board makes the findings set forth herein as Attachment A and certifies that such findings are based on the Board's independent review of the information contained in the Final SEIR and reflect the independent judgment and analysis of the Board; 4. That changes or alterations have been required in, or incorporated into, the proposed Project which avoid or substantially lessen certain significant effects of the proposed Project; 5. That certain environmental impacts of the proposed Project are significant and unavoidable even after implementation of mitigation measures incorporated into the proposed Project; 6. That the Board adopts the Statement of Overriding Considerations, attached as Attachment B,which identifies the specific benefits of the proposed Project that outweigh the proposed Project's significant and unavoidable impacts which are acceptable in light of the proposed Project's benefits; 7. That the Board adopts the Mitigation Monitoring and Reporting Program(MMRP), attached as Attachment C to ensure that all mitigation measures identified in the Final SEIR are implemented; 8. That the General Manager is authorized and directed to the file the Notice of Determination(NOD)and any other documents in accordance with the requirements of CEQA and the Agency's CEQA procedures; and 9. That the Board approves the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92. 2 Return to Agenda Report 10. The record of proceedings on which the Board's decision is based is located at OCSD Administration Offices, 10844 Ellis Avenue,Fountain Valley, CA 92708 and the custodian of records is the Clerk of the Board. PASSED AND ADOPTED at a regular meeting held March 27, 2013. Troy Edgar, Board Chair ATTEST: Maria E. Ayala, Clerk of the Board 3 Return to Agenda Report Attachment A Findings of Facts I_IP) I Return to Agenda Report ATTACHMENT A Findings of Fact I. Final SEIR for the Project The Final Subsequent Environmental Impact Report (Final SEIR), prepared pursuant to Section 15089 of the CEQA Guidelines, consists of the Draft SEIR, comment letters received on the Draft SEIR, and responses to those comments. II. The Administrative Record Contents of the Record The following information is incorporated by reference and made part of the record supporting these findings and the actions taken by Orange County Sanitation District (OCSD)in certifying the Final SEIR and approving the proposed Project: 1. The Final SEIR and all documents relied upon or incorporated by reference in the Final SEIR. 2. All testimony, documentary evidence, and all correspondence submitted to or delivered to OCSD in connection with the meetings and public hearings at which the Draft SEIR or Final SEIR was considered by OCSD. 3. All staff reports, memoranda, maps, slides, letters, minutes of meetings and other documents relied upon or prepared by OCSD staff and consultants relating to the project. 4. Any other documents specified by Public Resources Code section 21167.6(e). Location of Administrative Record OCSD is the custodian of the administrative record, including all CEQA documents and the other background documents and materials that constitute the record of the proceedings in which the Board's decision to certify the Final SEIR and approve the project are based. The administrative record is located at OCSD's Administrative Office Building at 10844 Ellis Avenue,Fountain Valley, California, 92708. III.Purpose of Findings The Final SEIR, prepared in accordance with CEQA, evaluates the significant adverse environmental impacts that could result from the Project. CEQA Guidelines Section 15091 requires that the public agency approving or carrying out the project shall make .Cb 111161W ..-a ondC ,...1INa]aW t E9AR113W 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts written findings for each significant impact identified in the EIR, accompanied by a brief explanation of the rationale for each finding. These findings include one of the following: 1. Changes or alterations have been required in, or incorporated into, the project which avoid or substantially lessen the significant environmental effect as defined in the Final SEIR. 2. Such changes or alterations are within the responsibility and jurisdiction of another public agency and not the agency making the finding. Such changes have been adopted by such other agency, or can and should be adopted by such other agency. 3. Specific economic, legal, social, technological, or other considerations, including provision of employment opportunities for highly trained workers, make infeasible the mitigation measures or project alternatives identified in the Final SEIR. These findings accomplish the following: 1. They address the significant environmental effects identified in the EIR for the approved project. 2. They incorporate all mitigation measures associated with these significant impacts identified in either the Draft SEIR or Final SEIR. 3. They explain why a significant effect is avoided or reduced by the adopted mitigation measures to a less than significant level. The conclusions presented in these findings are based on the Initial Study, the Draft SEIR, the Final SEIR,and other evidence in the record of proceedings. IV. Effect of Findings To the extent that these findings conclude that various proposed mitigation measures outlined in the Final SEIR are feasible and have not been modified, superseded, or withdrawn, OCSD hereby binds itself to implement these mitigation measures. These findings, in other words, are not merely information. The mitigation measures identified as feasible and within OCSD's authority to implement for the approved project we expressed conditions of approval to which OCSD binds itself upon adoption of this resolution and project approval. The Board will adopt a Mitigation Monitoring and Reporting Program (MMRP) concurrently with these findings to ensure that all of the mitigation measures identified in the Final SEIR are implemented. The MMRP includes applicable mitigation measures developed as part of the EIR process for the proposed Project. V. Project Background In 1999, OCSD adopted the OCSD Master Plan (Strategic Plan) and the Strategic Plan Program EIR (1999 PEIR). The Strategic Plan addressed all aspects of OCSD's system facilities and operations. The existing sludge dewatering and odor control system were installed over 25 years ago and were identified in the Strategic Plan as in need of .as 1111 s1w ..rms aodorcenum walew 2 cwauzw 912189.1 Return to Agenda Report replacement. The certified 1999 PEIR proposed to rebuild 15 belt filter press dewatering facilities and refurbish three 80-foot diameter digesters and three holding tanks at Treatment Plant 2. The proposed modification of the belt filter presses would have constituted a replacement of the same technology. In 2003, OCSD prepared a Long-Range Biosolids Management Plan that recommended replacement of the existing belt filter presses with centrifuges (a new technology) rather than replacement of the belt filter presses with like equipment. As such, OCSD modified the sludge dewatering and odor control system project to include centrifuges rather than belt filter presses. In 2005, OCSD certified a Secondary Treatment and Plant Improvement Project EIR (2005 EIR), which analyzed the environmental impacts of proposed upgrades to OCSD's secondary treatment capacity to meet secondary treatment standards. As a part of the Secondary Treatment project, the P2-92 facility was planned to upgrade the biosolids handling facilities by replacing existing belt filter presses with centrifuges as recommended by the 2003 Long-Range Biosolids Management Plan. The new technology and updated building features included six new centrifuges, replacement of the existing odor control system with an upgraded system, retrofitting of the existing dewatering building, replacement of the existing polymer system with an upgraded system, and replacement and/or upgrade of other ancillary equipment. This change in technology compared to the project analyzed in the 1999 PEIR triggered subsequent environmental review. The 2005 EIR included the required subsequent environmental review for the P2-92 project. The currently proposed Project is similar to the P2-92 facility described in the 2005 EIR, except that the current Project proposes to build two new buildings rather than update the existing building. Project Description OCSD proposes to implement the Sludge Dewatering and Odor Control Project at Plant 2. The existing sludge dewatering and odor control systems were installed over 25 years ago and are in need of replacement. The proposed Project would also include a power distribution center, electrical and process control systems, and utilities in support of the new sludge dewatering and odor control systems. After construction of the new facilities, the proposed Project would require the demolition of the existing sludge dewatering and odor control systems at Plant 2. The proposed Project would be constructed entirely within the existing Plant 2 property. The proposed Project would not expand the capacity of the existing wastewater treatment facility. Need for Project The 2003 Long Range Biosolids Management Plan recommended that the existing belt presses be replaced with centrifuges to improve the dewatering process and reduce solids C SO ez�z Slw oea.mrms Md odor tonal INalew 3 eannuzw 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts storage and truck hauling costs. The 2003 Long-Range Biosolids Management Plan was developed to create a sustainable, reliable, and economical program for long-range biosolids management. Centrifuges produce drier biosolids, which reduces the amount of required truck hauling. The objectives of the proposed Project include the following: • Replace outdated maintenance intensive machines with newer technology. • Reduce dewatered biosolids cake hauling costs. • Produce drier biosolids cake material. • Reduce fenceline odors by improving odor control at the existing truck loading silos and from the centrifuge dewatering operation. The Final SEIR was prepared in compliance with CEQA. In accordance with CEQA Guidelines Section 15082, a Notice of Preparation (NOP) was published by OCSD on April 23, 2012. The NOP was circulated to local, state, and federal agencies and other interested parties for 30 days. The NOP comment period ended on May 23,2012. In accordance with CEQA Guidelines Section 15082, the Draft SEIR was circulated to local, state, and federal agencies and other interested parties who wished to review and submit comments on the Draft SEIR. The 45-day public review period began on October 18, 2012 and ended on December 3, 2012. A public hearing to receive public comments on the proposed Project was held on November 15, 2012 at the OCSD Administrative Office Building in the City of Fountain Valley.A total of four(4)written comment letters were received on the Draft SEIR. The Final SEIR for the P2-92 Sludge Dewatering and Odor Control Project consists of the Draft SEIR, Response to Comments on the Draft SEIR, and OCSD initiated editorial refinements. VI. Findings Concerning Significant Unavoidable Adverse Impacts The following impacts were identified in the Final SEIR as significant and unavoidable. Air Quality- Cumulative Operations A. Facts 1. The Draft SEIR analyzes cumulative air emissions in Section 4.2-3. Based on the analysis in the 1999 PEIR, which had analyzed the mobile emissions associated with delivery truck trips to OCSD's Plant 1 and Plant 2 facilities, it was determined that mobile NOx emissions would exceed SCAQMD's significance threshold for operational emissions. Despite implementation of Mitigation Measures 6.5-3a through 6.5-3d, this impact was found to be significant and unavoidable in the 1999 PEIR. Because the proposed Project was previously CSD ez�z Slw Dw me and odor co[INalew 4 cwauzw 912189.1 Return to Agenda Report analyzed in the 1999 PEIR and impacts were found to be significant and unavoidable, the daily operational emission levels of NOx generated by mobile trips to OCSD's Plant 1 and Plant 2 facilities would continue to be significant and unavoidable. However, the proposed Project would actually reduce overall existing truck trips associated with biosolids hauling. The proposed Project would therefore reduce the daily operational emission levels of NOx generated by mobile trips to OCSD's Plant 2 facilities.. The Final SEIR did not identify any new significant impacts in this area, and, therefore, no additional mitigation measures are required. 2. Mitigation Measures 6.5-3a through 6.5-3d are from the 1999 PEIR MMRP. Mitigation Measure 6.5-3a requires OCSD to maintain its ride-share programs to reduce commuter traffic and air quality impacts. Mitigation Measure 6.5-3b and 6.5-3c requires the implementation of compressed natural gas (CNG) stations, the use of CNG-powered engines on haul trucks, and the use of alternative fuels on haul trucks. Mitigation Measure 6.5-3d requires OCSD to research alternative methods of transporting biosolids. Implementation of 1999 PEIR mitigation measures would not reduce emissions to less than significant levels. The daily operational emission levels of NOx generated by mobile trips to OCSD's Plant 1 and Plant 2 facilities would not change as a result of the proposed Project with implementation of mitigation measures. 3. In response to SCAQMD's suggestion that the lead agency consider requiring the use of 2010 and newer diesel haul trucks (e.g., material delivery trucks and biosolids haul trucks), OCSD has added Mitigation Measure 4.2-1 to the Final SEIR. Mitigation Measure 4.2-1 requires OCSD to incentivize the use of newer biosolids haul trucks by awarding points to haul contract bidders that commit to using 2010 or newer fleets. B. Findings The Board finds that: 1. Air quality impacts related to cumulative air emissions of NOx would be significant and unavoidable; the proposed Project and mitigation measures described will reduce this impact,but not to a level of insignificance. 2. This impact is overridden by project benefits as set forth in the statement of overriding considerations adopted concurrently herewith. Noise and Vibration-Construction A. Facts 1. The Draft SEIR analyzes noise and vibration impacts in Section 4.5. Sensitive receptors located in proximity to the Project site could experience noise levels as ocso n�z 11w d omrcowaiwa]ew 5 cwauzw 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts high as 73 dBA Leq during non-pile driving construction activities and 85 dBA Leq when pile driving occurs. As construction of the proposed Project might temporarily increase ambient noise levels by more than 5 dBA, construction noise impacts with respect to a temporary or periodic increase in ambient noise levels in the Project vicinity would be potentially significant. 2. Mitigation Measures 4.5-1 and 4.5-2 would be implemented requiring the implementation of noise reduction devices and techniques during construction at the Project site. Mitigation Measures 6.4-la through 6.4-le of the 1999 PEIR, which would require the use of noise muffling devices on construction equipment and notification of neighboring residential areas, will also be implemented. Implementation of these mitigation measures would serve to reduce the noise levels associated with construction of the proposed Project to the maximum extent feasible. Despite implementation of these mitigation measures, daytime noise levels from construction of the proposed Project, especially during pile driving operations, is still expected to substantially exceed the existing daytime ambient levels at the nearby residential uses and thus could result in a substantial disturbance to these sensitive receptors. B. Findings The Board finds that: 1. Noise impacts during construction at the Project site would be significant and unavoidable;the mitigation measures described above are adopted and will reduce this impact,but not to a level of insignificance. 2. Noise impacts are temporary in nature and will cease upon construction completion. 3. This impact is overridden by project benefits as set forth in the statement of overriding considerations adopted concurrently herewith. VII. Findings Concerning Significant Impacts Reduced to Less Than Significant Levels by Mitigation Measures Incorporated into the Project The Final SEIR identifies significant impacts that are reduced to a "less than significant' level provided that the mitigation measures identified in the Final SEIR are incorporated into the proposed Project. These measures avoid, minimize, rectify, or reduce the significant environmental effects identified in the Final SEIR to a less than significant level. Air Quality A. Facts C SO ez�z slwee oea.mrms and odor tonal INalew 6 eann 12. 912189.1 Return to Agenda Report 1. Construction emissions of the proposed Project would not exceed the maximum SCAQMD daily significance thresholds for criteria pollutants (ROG, NOx, CO, SO2, PM10, and PM2.5). Implementation of the 1999 PEIR Mitigation Measure 6.5-la and 6.5-lb requiring proper maintenance of equipment engines and requiring trucks and vehicles in loading or unloading queues to turn off their engines would further reduce the less than significant construction emissions of the proposed Project. 2. The nearest sensitive receptors to the proposed Project site are located approximately 305 feet away. The peak daily emissions generated during a worst- case construction day within the proposed Project site during Project construction would not exceed the applicable construction localized significance thresholds (LSTs) for a two-acre site in the sensitive receptors area. Proposed Project construction would not expose sensitive receptors to substantial emissions of toxic air contaminants (TACs)because the use of off-road heavy-duty diesel equipment would be temporary and due to the highly dispersive properties of diesel PM. Mobile source emissions under the proposed Project would be slightly less than that of the existing facility, and would not increase in magnitude as analyzed in the 1999 PEIR. 3. Mitigation Measures 6.5-2a and 6.5-2b of the 1999 PEIR ensure that criteria pollutant and air toxics emissions from stationary sources at Plant 2 comply with SCAQMD rules and permit requirements. 4. Odors associated with proposed Project construction and demolition of the existing sludge dewatering and odor control facility would be temporary and intermittent in nature. Mitigation Measure 4.2-2 shall minimize odors from demolished equipment at Plant 2 during Project construction. Mitigation Measure 6.5-5b of the 1999 PEIR requires OCSD to provide odor control systems to reduce construction odor impacts when necessary. 5. The new odor control system under the proposed Project would be equipped with more advanced technology than the existing odor control system, an improvement in odor control is expected during its operation at Plant 2. Mitigation Measure 4.2-3 requires OSCD to prepare an odor study with odor modeling of the new odor control system at Plant 2 to ensure that odors generated at Plant 2 would be minimized to the maximum extent feasible. Mitigation Measure 6.5-5a of the 1999 PEIR would require periodic review of odors at Plant 2. B. Findings The Board finds that: 1. The recommended mitigation measures in the Final SEIR and 1999 PEIR are adopted. The mitigation measures will ensure the Project's impacts to air quality, C SO ez�z Slw De mg na odor tonal wolew 7 eannuzw 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts other than cumulative air emissions addressed above, are reduced to less than significant levels. Cultural Resources 1. As Plant 2 is an active wastewater treatment facility and is previously disturbed due to construction and upgrades of the plant, it is not anticipated that the proposed Project would disturb any human remains. However, in the unlikely event that human remains are found, Mitigation Measure 7.10-2c from the OCSD 1999 Strategic Plan EIR would apply. B. Findings The Board finds that: 1. The recommended mitigation measure in the Final SEIR and 1999 PEIR are adopted. The mitigation measure will ensure the Project's impacts to any human remains, are reduced to less than significant levels. Geology, Soils, and Seismicity A. Facts 1. Earthquakes in Orange County potentially could produce strong ground shaking in the project area. The geotechnical study provides seismic design considerations that would ensure the California Building Code (CBC) regulations are followed and seismic-related impacts are minimized. Mitigation Measure 6.6-lb from the OCSD 1999 Strategic Plan EIR will be followed. Therefore, impacts would be less than significant. 2. The project site is located within a State and County Hazard Zone for Liquefaction. Because of the depth to groundwater and the soil types at the site, the potential for liquefaction at the site is high. Mitigation Measure 6.6-la from the OCSD 1999 Strategic Plan EIR, will be followed to ensure that the recommendations in the Geotechnical Report are followed. Therefore, impacts would be less than significant. 3. Construction of the proposed structures would disturb existing site conditions and could potentially leave loose soil exposed to the erosive forces of rainfall and high winds. Implementation of Mitigation Measures 6.7-la through 6.7-le, as presented in the OCSD 1999 Strategic Plan DEIR, would ensure impacts due to soil erosion or loss of topsoil would be less than significant. B. Findings The Board finds that: CGSv 111161W Oew0<MB ECdor Conual INa]aw 8 E9AnuzW 912189.1 Return to Agenda Report 1. The recommended mitigation measures in the Final SEIR and 1999 PEIR are adopted. The mitigation measures will ensure the Project's impacts to geology, soils, and seismicity are reduced to less than significant levels. Hazards and Hazardous Materials A. Facts 1. The Draft SEIR analyzes hazards and hazardous materials impacts in Section 4.4. Adherence to safety regulations, manufacturer's recommendations, and implementation of best management practices (BMPs) would minimize potentially significant hazards to the public involving the the release of hazardous materials to the environment. The OCSD Stormwater Onsite Management Plan identifies BMPs that would be implemented onsite during construction activities. Implementation of Mitigation Measure 4.4-1 would ensure impacts from accidental upset of hazardous materials are minimized through implementation of BMPs for the handling and storage of hazardous materials. 2. Demolition of the existing Plant 2 facilities, including the carbon scrubbing vessel, existing belt filter press building, sludge conveyor system, cake transfer pumps, and truck loading bays and existing sludge storage silos for stations C and D, could release hazardous materials including hazardous chemicals, ACM's, lead-based paints or products, mercury, and PCBs into the environment Implementation of Mitigation Measure 4.4-2 requires the completion of asbestos, lead, and PCB surveys prior to demolition activities. 3. During operation of the replacement facilities, handling and storage of hazardous materials would be required to comply with existing regulatory standards including compliance with OCSD's Integrated Emergency Response Plan. Implementation of proposed Mitigation Measures 4.4-1 and 4.4-2 would ensure that public health and safety impacts due to the potential release of hazardous materials during Project construction and operation we reduced to less than significant levels. B. Findings The Board finds that: 1. The recommended mitigation measures in the Final SEIR are adopted. The mitigation measures will ensure the Project's hazards and hazardous materials impacts are reduced to less than significant levels. Hydrology and Water Quality A. Facts C SD ez�z Slw oea.mrms Md odor c no lINalew 9 eann 12. 912189.1 Return to Agenda Report AttacFmevl A:FwNngs ofFacts 1. Construction activities have the potential to result in the accidental release of materials and pollutants associated with heavy machinery and equipment such as oils, fuels,and lubricants. Implementation of Mitigation Measures 6.7-la through 6.7-1e,as presented in the OCSD 1999 Strategic Plan EIR,would ensure stormwater runoff does not impact or violate any water quality standards. 2. Construction of the new facilities may require dewatering and construction contractors would be required to conform to the District's Dewatering Specifications. Implementation of Mitigation Measures 6.7-2a through 6.7-2b, as presented in the OCSD 1999 Strategic Plan EIR,would ensure impacts to groundwater during construction are reduced to less than significant levels. 3. The proposed Project would not substantially alter the existing drainage pattern of a site or area through the alteration of the course of a stream or river,or by other means,nor would it substantially increase the rate or amount of surface runoff in a manner that would result in flooding on-or off-site.New area drains would be placed around the building to capture the roof leaders and surface drainage. Implementation of Mitigation Measures 6.7-1a through 6.7-1e would ensure impacts related to stormwater remain at less than significant levels. B. Findings The Board finds that: 1. The recommended mitigation measures in the Final SEIR and 1999 PEIR are adopted. The mitigation measures will ensure the Project's impacts to hydrology and water quality are reduced to less than significant levels. Noise and Vibration A. Facts 1. The Draft SEIR analyzes noise and vibration impacts in Section 4.5. The nearest off-site sensitive receptors to the Project site are located approximately 305 feet from the Project site and could be exposed to outdoor noise levels ranging as high as 73 dBA Leq during non-pile driving construction activities and 85 dBA Leq when pile driving. However, intervening structures, such as the 8-foot wall bordering Plant 2 along Brookhurst Street and the block wall bordering the residences, would partially shield and attenuate noise from construction activities for the residences located across Brookhurst Street. Construction activities associated with the proposed Project are short term and would comply with the noise regulations established in Sections 8.40.090 of the City of Huntington Beach's Noise Ordinance. 2. Mitigation Measures 4.5-1 and 4.5-2 require the implementation of noise reduction devices and techniques during construction at the Project site, including C SD M53 SlW Dw mg mE�rOo [INo]eW 10 E9AR113W 912189.1 Return to Agenda Report the placement of noise or vibration-generating equipment as far as possible from the nearest residential land uses and the use of sound dampening devices. Implementation of Mitigation Measures 6.4-la through 6.4-le of the 1999 PEIR limits the hours of construction activities to 7:30 a.m. to 5:30 p.m. requires the use of noise muffling devices on construction equipment, and notification of neighboring residential areas concerning the Project timing and construction schedule. Implementation of these mitigation measures would serve to reduce the noise levels associated with temporary construction of the proposed Project to the maximum extent feasible. 3. Vibration velocities associated with sonic pile drivers could reach as high as approximately 0.734 inch per second PPV at 25 feet from the source activity. This corresponds to a RMS velocity level (in VdB) of 105 VdB at 25 feet from the source activity. The vibration velocity forecasted to occur at the nearest off-site residences would be 0.02 PPV for sonic pile driving and would not exceed 0.2 inches per second during construction of the proposed Project. 4. In terms of human annoyance, the vibration levels forecasted to occur at the nearest off-site residences would be approximately 72 VdB and would not exceed the FTA's 80 VdB threshold for residences or places where people may sleep. 5. Implementation of Mitigation Measure 4.5-1 requires that groundborne vibration construction activities be placed as far as practical from the nearest vibration- sensitive land uses, and would reduce the vibration levels experienced at these sensitive receptors. B. Findings The Board finds that: 1. The recommended mitigation measures in the Final SEIR are adopted. The mitigation measures will ensure the Project's impacts to noise and vibration, other than the ambient noise impacts addressed above, we reduced to less than significant levels. Traffic and Circulation A. Facts 1. The Draft SEIR analyzes air quality impacts in Section 4.6. Total construction trips for the proposed Project would be up to approximately 125 daily temporary truck trips, and Brookhurst Street has available capacity to accommodate this temporary increase. Impacted Brookhurst Street intersections operate at LOS A or B, and the additional 125 temporary truck trips we not anticipated to reduce the LOS to levels beyond the acceptable LOS C and D. Operation of the new facilities would not require additional OCSD full-time employees as the new facilities CCbO PR5361W Oew0<MB QR��R�aal INa]aW It E9AR113W 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts would replace older facilities of similar function. Although operation activities would require up to 5 additional chemical deliveries for the new facilities, the proposed facilities and updated technology would result in drier biosolids which in turn would require fewer biosolids haul truck trips. It is anticipated that the proposed Project would result in 130 fewer biosolids truck trips per month after construction is complete. This would result in a significant net reduction in existing overall truck trips. 2. To minimize potential construction traffic impacts, implementation of Mitigation Measure 4.6-1 would require a detailed schedule and plan from the construction contractor to minimize truck traffic on arterial highways during peak periods and to reduce their impediment on street construction. B. Findings The Board finds that: 1. The recommended mitigation measure in the Final SEIR is adopted. The mitigation measure will ensure Project's impacts to traffic and circulation are reduced to less than significant levels. VIII. Findings Concerning Identified impacts that Were Determined to be Less than Significant without Needing to Identify Mitigation Measures The Final SEIR identifies impacts that are considered to be "less than significant" not requiring mitigation measures. It is hereby determined that the following environmental impacts of the Project will be less than significant. Aesthetics A. Facts 1. The Draft SEIR analyzes aesthetics impacts in Section 4.1. There are no officially-designated State Scenic Highways within the Project area. There would be no impact to a designated State Scenic Highway. 2. Plant 2 is equipped with controlled lighting that eliminates unnecessary lighting during nighttime hours. The lighting system for the new facility would be designed to meet current light minimization requirements and would be similar to the existing facilities that will be replaced. The proposed Project would not introduce any additional lighting. 3. The proposed new facilities, particularly the new Sludge Dewatering Building, would only be partially visible from Brookhurst Street, but would not be visible from the Santa Ana River, Talbert Marsh, or Pacific Coast Highway, due to view obstruction by the existing facilities. Landscaping and screening would partially CSD ez�z Slw Dw mg and odor co[INalew 12 cwauzw 912189.1 Return to Agenda Report shield and soften views of the project site. All facilities would be designed and constructed with materials that are compatible with the existing treatment facilities onsite at Plant 2. 4. The new proposed facilities would not exceed the existing maximum height of 86 feet on Plant 2, as the new structures would have a maximum height of approximately 51 feet. The IL zone provides an exception to heights for certain types of structures, including 4 feet parapet walls. The proposed building would be 47 feet high, plus a 3.5 feet parapet wall. The 3.5 parapet wall is exempted from the building height and it is anticipated that the proposed building would be approved by the City via a variance to the zoning code. 5. The proposed Project would require an approval for a height variance and Coastal Development Permit from the City prior to construction. B. Findings The Board finds that: 1. The proposed Project would not create adverse impacts to aesthetics and impacts would therefore be less than significant. No mitigation measures we necessary. Air Quality A. Facts 1. Operation of the proposed Project would replace the existing sludge dewatering and odor control facility at Plant 2 with a newer facility and would not lead to an increase in operational emissions.The proposed Project would replace the existing 25-year old sludge dewatering system and odor control system. 2. A total of 130 fewer biosolids truck haul trips deliveries per month and 5 additional deliveries per month of chemicals to Plant 2 from implementation of the proposed Project are expected. This would result in a significant net reduction in overall truck trips. B. Findings The Board finds that: 1. Construction and operation of the proposed Project will have a less than significant direct impact related to air quality. No mitigation measures are necessary. Global Warming/Climate Change C SD ez�z Slw oea Mg Md odors no lINalew 13 eann 12. 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts A. Facts 1. The Draft SEIR analyzes global warming/climate change impacts in Section 4.3. The proposed Project's aggregated annual construction and operational emissions would not exceed SCAQMD's 10,000 MT/year CO2e benchmark. Specifically, a total net increase of approximately 4,173 MT/year of CO2e would occur under the proposed Project. Impacts associated with direct and indirect emissions of GHGs by the proposed Project would be less than significant. 2. The proposed Project will aid OCSD in improving its biosolids management system, and would not pose any apparent conflict with the California Air Resources Board (CARB) Scoping Plan Recommended Actions. The proposed Project would support Recommended Action W-2 for the Water Sector to increase water recycling and would therefore be consistent with the Recommended Actions under the CARB Scoping Plan. B. Findings The Board finds that: 1. Construction and operation of the proposed Project would not create newglobal warming and climate change impacts and impacts would be less than significant. No mitigation measures me necessary. Hazards and Hazardous Materials A. Facts 1. The proposed Project is not located within a quarter mile of a school. 2. The proposed Project site is listed on a regulatory agency list for leaking underground storage tanks (LUST); however, site cleanup associated for the two LUST listings has occurred. No known releases have occurred from the existing permitted underground storage tank (DUST). The proposed Project site is not listed on any other regulatory agency list as having had a known release of hazardous materials. 3. There are no public airports or private airstrips within two miles of the proposed Project site. 4. OCSD implements an Integrated Emergency Response Program in accordance with OSHA regulations which addresses worker safety, spill prevention, emergency response, and hazardous materials management. The proposed Project would not interfere with the existing Integrated Emergency Response Program. C SD ez�z slwee oea.mrms ona odor c no lINalew 14 eann 12. 912189.1 Return to Agenda Report 5. The use of polymer to improve the dewatering of digested sludge from the digesters before the sludge is dewatered by the centrifuges and the biosolids cake generated at Plant 2 are not considered a hazardous or regulated material. Minor additional quantities of sulfuric acid to support the odor control processes would also be used. The sulfuric acid storage and feed equipment will be located in its own containment area. OCSD would comply with existing and future hazardous materials laws and regulations for the transport, use and disposal of hazardous materials. Implementation of the Integrated Emergency Response Program Program would ensure chemicals are properly stored and handled to minimize spills and protect environment and public health. B. Findings The Board finds that: 1. Construction and operation of the proposed Project will have a less than significant impact related to hazards and hazardous materials, other than those hazards and hazardous materials impacts addressed above. No mitigation measures are necessary. Noise and Vibration A. Facts 1. The proposed Project would be located within Plant 2 and would be replacing a similar facility that is currently in operation at Plant 2. The dewatering building will be designed to insulate the noise of the machinery such that fence-line noise standards would not be exceeded. No increase in worker or delivery truck trips to Plant 2 above existing operating conditions would occur. 2. The proposed Project is not located within an airport land use plan, nor is it located within two miles of a public or private airport. B. Findings The Board finds that: 1. Construction and operation of the proposed Project will have a less than significant impact related to noise and vibration impacts, other than those noise and vibration impacts addressed above. No mitigation measures are necessary. Traffic and Circulation A. Facts C SD P2�2 Slw oea.mrms Md odor c no lINalew 15 eann 12. 912189.1 Return to Agenda Report AttacFmevl A:FwNngs ofFacts 1. The nearest airport is located eight miles northeast from the project site. Due to the proposed Project's distance from the airport and because it is a wastewater treatment plant, no increase in air traffic levels or a change in location of air traffic patterns would occur. 2. The proposed Project does not include the construction or design of any roadway infrastructure that would cause a safety risk to vehicle operations. 3. The proposed Project would not alter roadways, propose lane closures, and does not include any features or elements that would impede emergency access routes or result in long-term impacts to emergency access and maneuverability. 4. The proposed Project would not affect bus routes nor bikeways located along Brookhurst Street as no construction would be conducted in the streets and construction-related vehicular traffic would be short-term and temporary. All construction parking and staging areas would be located onsite at Plant 2 and would not impact public transit routes. Operation of the proposed Project would be similar to existing operation conditions and would not impact public transportation facilities or conflict with applicable policies,plans, or programs. B. Findings The Board finds that: 1. Operation of the proposed Project activities would be temporary and have a less than significant impact. No traffic and circulation mitigation measures are necessary other than those adopted above. Utilities, Service Systems, and Energy A. Facts 1. The Draft SEIR analyzes air quality impacts in Section 4.7. Plant 2 is currently operating under permits issued by the Regional Water Quality Control Board (RWQCB) and the proposed Project is not anticipated to conflict with the current permits. The proposed Project would be in compliance with the RWQCB permits and implementation of OCSD's Onsite Stormwater Management Plan (OSSWMP). 2. OCSD would not be required to provide additional wastewater treatment capacity as the proposed Project has adequate capacity to serve current treatment demands. 3. Plant 2 is equipped with an internal drainage system designed to collect and treat stormwater and collect wastewater and chemical spills from industrial areas of each site,which is then conveyed back to the plant's headwork for treatment 4. Water needs of the proposed Project during construction would be relatively minor and temporary. Operation of the new facilities would require water supplies from CSO M53 SlW Dw mg mEC rOo [INo]eW 16 E9AR112. 912189.1 Return to Agenda Report City water, reclaimed water, and plant water. All water supply demands would be met for facilities operations. 5. The proposed Project would result in approximately 14,000 cubic yards of demolition and construction waste,which is a minimal amount with respect to the capacity of the Frank R. Bowerman Landfill. In addition, the proposed Project would comply with federal, state, and local statutes and regulations related to solid waste disposal, including recycling program requirements. 6. Implementation of the proposed system would replace the current system with energy efficient pumps and machinery. In addition, the proposed Project would receive electrical power directly from the existing 12 kV Southern California Edison(SCE)/Electric Service Center(ESC)located at the north end of the Plant 2 property and from the new Distribution Center K. The proposed Project would add approximately 3 megavolt ampere (MVA) and remove approximately 1 MVA through demolition of the existing dewatering building, for a projected net demand load of approximately 2 MVA. Upon completion of the proposed Project, SCE / ESC is anticipated to have 12 MVA spare capacity available for future energy needs. B. Findings The Board finds that: 1. Construction and operation of the proposed Project will have a less than significant impact on energy consumption, wastewater treatment, water supply, and landfill capacity, and would comply with applicable regulations. No mitigation measures are necessary. Cumulative Effects A. Facts 1. The Draft SEIR analyzes cumulative impacts in Chapter 5.0 of the Draft SEIR. The Draft SEIR analyzes the project contribution to cumulatively significant effects to aesthetics, air quality, greenhouse gas emissions, hazards and hazardous materials, noise and vibration,traffic and circulation, and utilities, service systems and energy. 2. Significant and unavoidable cumulative impacts regarding cumulative operational air quality and construction noise would occur as a result of the proposed Project, as discussed under Section VI. Findings Concerning Significant Unavoidable Adverse Impacts. 3. No additional significant cumulative effects were identified. ocso P2�2 Slw oea Mg Md odors no lwjew 17 eann12. 912189.1 Return to Agenda Report AttacFmev�A:FwNngs ofFacts B. Findings The Board fords that: 1. Construction and operation of the proposed Project will have less than significant cumulative aesthetics, air quality, greenhouse gas emissions, hazards and hazardous materials, noise and vibration, traffic and circulation, and utilities, service systems, and energy impacts. Growth Inducment A. Facts 1. The Draft SEIR discusses growth inducing impacts in Chapter 6. According to the Draft SEIR, the Project would have no potential to directly foster population growth or to result in the construction of additional housing because the Project would update and replace existing outdated facilities, but would not expand the capacity of the existing Plant 2. Project activities are not expected to create substantial employment opportunities beyond the level normally available to construction workers in the area. B. Findings The Board finds that: 1. The recommended Project would not induce growth to the project area. IX. Findings Concerning Alternatives This Final SEIR is subsequent to the environmental analysis presented in the 1999 EIR and the Secondary Treatment and Plant Improvement Project Subsequent EIR (2005). These two EIRs identified and analyzed proposed alternatives for facility improvements at Plant 2. These alternatives have been eliminated from further consideration for this proposed Project. No Project Alternative Under the No Project Alternative, OCSD would not implement the proposed changes to the P2-92 Sludge Dewatering and Odor Control Project and would implement the P2-92 Sludge Dewatering and Odor Control Project as approved in the 2005 EIR. The P2-92 facility described in the 2005 FIR is similar to the proposed Project, except that the current Project proposes to build two new buildings, rather than update the existing structures. Construction of two new buildings (dewatering building and power distribution center) would not occur under the No Project Alternative. The following components would occur under the No Project Alternative: the new technology and updated building features included six new centrifuges, replacement of the existing odor .Cb 111161W ..-a dC ,...1 Mu]eW 18 E9AnuzW 912189.1 Return to Agenda Report control system with an upgraded system, retrofitting of the existing dewatering building, replacement of the existing polymer system with an upgraded system, and replacement and/or upgrade of other ancillary equipment. The Board finds that this alternative is less desirable than the proposed Project and rejects this alternative for the following reasons: 1. Although the Dmft SEIR concluded that the No Project Alternative would meet all of the Project Objectives, upgrading the existing building as proposed in the No Project Alternative was found to be less efficient than constructing an entirely new building. The proposed Project met the District's goal of ensuring efficient wastewater treatment facilities over the long term. 2. Although the proposed Project would have slightly higher impacts for all of the environmental resource areas due to the construction activities associated with the new buildings that would increase the proposed Project footprint and duration compared to the No Project Alternative, the proposed Project would construct a new building that would be expected to last as long as the new equipment installed therein. The construction of a new building would not result in any new significant and unavoidable environmental impacts and was seen to reduce long term maintenance in a building, designed specifically for the new equipment that reduced life-cycle costs over the long term. This added value met the District's goal of ensuring efficient wastewater treatment facilities for the long term. X. Adoption of Mitigation Monitoring and Reporting Program Public Resources Code Section 21081.6 requires a public agency making findings required by subdivision (a) of Section 21081 to adopt a reporting and monitoring program for the changes to the Project which it has adopted or made a condition of Project approval in order to mitigate or avoid significant effects on the environment. The Board hereby adopts the MMRP. The Board further finds that said program meets the requirements of Public Resources Code Section 21081.6 by ensuring compliance during project implementation of the mitigation measures identified in the Final SEIR. The MMRP is attached to these findings as Attachment C. C SD ez�z Slw oea.mrms and odor tonal INalew 19 eann 12. 912189.1 Return to Agenda Report Attachment B Statement of Overriding Considerations 91,1951 Return to Agenda Report 1. Attachment B a. Statement of Overriding Considerations CEQA requires that the decision makers balance the benefits of a proposed project against its unavoidable environmental risks in determining whether to approve the project (Public Resources Code §21081(b); 14 CCR §§15043, 15093(a)). As documented in the Draft SEIR and explained in the Findings of Fact for the Project, the Project will potentially result in significant and unavoidable impacts in the following environmental areas: • Cumulative air emissions during operational activities; • Temporary ambient noise impacts during construction activities. The Project provides substantial benefits for OCSD's collection, treatment, disposal, and wastewater recycling processes and facilities. In 1999, OCSD adopted the OCSD Master Plan (Strategic Plan) and the Strategic Plan Program FIR (1999 PEIR). The purpose of the Strategic Plan was to identify projects needed to accommodate projected population growth through 2020 in the service area and to comply with changing future regulations that affect treatment facilities and effluent quality. The certified 1999 PEIR proposed to rebuild 15 belt filter press dewatering facilities and refurbish three 80-foot diameter digesters and three holding tanks at Treatment Plant 2. In 2005, OCSD certified a Secondary Treatment and Plant Improvement Project FIR, which overhauled proposed upgrades to OCSD's secondary treatment capacity to meet secondary treatment standards. The P2-92 facility was planned to upgrade the biosolids handling facilities by replacing existing belt filter presses with centrifuges. The Project is similar to the P2-92 facility described in the 2005 FIR, except that the current Project proposes to build two new buildings, rather than update the existing facilities. The new facility would replace the old facility, performing the same function with newer equipment. The replacement equipment would not increase the capacity of the plant. The Project would replace an existing process with newer more energy efficient technology. In addition, the current dewatering building is an open environment where fugitive emissions can escape into the atmosphere. The overall emissions from the Project would be reduced because the more efficient technology would be operating in a closed environment where emissions are captured and treated prior to discharge. In addition, implementation of the Project would result in approximately 130 fewer biosolids truck haul trips per month. There are currently approximately 466 biosolids truck trips per month at Plant 2; the Project would result in approximately 336 biosolids truck trips per month at Plant 2. As a result, the project would reduce monthly mobile source emissions at Plant 2. This Board has balanced the Project's benefits against the Project's significant unavoidable impacts on operational cumulative air emissions and construction-related ambient noise impacts. The Board finds that the Project's benefits outweigh the Project's significant unavoidable impacts. Therefore, the Project's significant unavoidable impacts .Cb 1111 SIWga d C ,...1INa]aW t E9AR113W 912185.1 Return to Agenda Report alm<n�l e:smu�larwema�og cnmmerneo�: we acceptable in light of the Project's benefits. The Board finds that each of the following benefits is an overriding consideration, independent of the other benefits, that warrants approval of the Project notwithstanding the Project's significant and unavoidable impacts: 1. The new sludge dewatering building and odor control facility replaces the existing aging sludge dewatering system and odor control system that were installed over 25 years ago and have reached the end of their service life. 2. Newer equipment and technology will be more energy efficient and would be operating in a closed environment where emissions will be captured and treated prior to discharge. 3. A significant net reduction in overall biosolids truck trips (mobile emissions) compared to estimates in the 1999 PEIR as drier biosolids cake material will require fewer biosolids truck deliveries, which will also reduce biosolids management costs. 4. Improvement in odor control and reduction in fence line odor impacts as the new odor control system would control odor from the proposed new enclosed dewatering building and from the existing truck loading facility. C SO M52 SlW Dw mg andC rC ntl lINo]eW 2 E9ARI 12. 912185.1 Return to Agenda Report Attachment C Mitigation Monitoring and Reporting Program Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM Orange County Sanitation District P2-92 Sludge Dewatering and Odor Control Project Introduction In accordance with Section 15091(d) and Section 15097 of the CEQA Guidelines, which require a public agency to adopt a program for reporting on or monitoring required changes in the project or conditions of approval to substantially lessen or avoid significant environmental effects, the Mitigation Monitoring and Reporting Program is hereby adopted for this project. This Mitigation Monitoring and Reporting Program (MMRP) summarizes the mitigation commitments identified in the P2-92 Sludge Dewatering and Odor Control Project Final Subsequent EIR (State Clearinghouse No. 2004031076). Mitigation measures are presented in the same order as they occur in the Final SEIR. The columns in the MMRP table provide the following information: • Mitigation Measure(s): The action(s)that will be taken to reduce the impact to a less-than-significant level. • Implementation, Monitoring, and Reporting Action: The appropriate steps to implement and document compliance with the mitigation measures. • Responsibility: The agency or private entity responsible for ensuring implementation of the mitigation measure. However, until the mitigation measures are completed, the Orange County Sanitation District (Sanitation District), as the CEQA Lead Agency, remains responsible for ensuring that implementation of the mitigation measures occur in accordance with the MMRP (CEQA Guidelines, Section 15097(a)). • Monitoring Schedule: The general schedule for conducting each monitoring task, either prior to construction, during construction and/or after construction ocav ez-vz s1w ..-r domrco.um epl� 1 eannuzw 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule Aesthetics None Required. Air Quality From the 1999 PE1R MMRP Mitigation Measure 6.5-1a:General contractors should maintain equipment engines • Include mitigation measure in construction OCSD;Construction Contractor During Construction in proper tune and operate construction equipment so as to minimize exhaust contractor specifications. emissions.Such equipment shall not be operated during second state smog alerts. Maintain records of specifcatlons In project file. Mitigation Measure 6.5.1b: During construction, trucks and vehicles in loading or • Include rafigabon measure in construction OCSD;Construction Contractor During Construction unloading queues should be kept with their engines off, when not in use, to reduce contractor specifications. vehicle emissions. Construction activities shall be phased and scheduled to avoid . Maintain records of specifcatlons In project file. emissions peaks,and discontinued during second-state smog alerts. Mitigation Measure 6.5-3a: OCSD will maintain its ride-share programs to reduce • Include mitigation measure in project design OCSD During Construction commuter traffic and air quality impacts. specifications. Maintain records of specifications in project file. Mitigation Measure 6.5-3b: OCSD will complete the implementation of compressed . Include mitigation measure in project design OCSD;Construction Contractor During Construction natural gas (CNG) stations and encourage contractors to employ CNG-powered specifications. engines on residual solids haul trucks through contract Incentives where possible. Include mitigation measure in construction contractor specifications. . Maintain records of specifications in project file. Mitigation Measure 6.54fic:Alternative fuels should be considered for biosolids haul Include mitigation measure in construction OCSD;Construction Contractor Prior to and During trucks including low NOx emitters. contractor specifications. Construction • Maintain records of specifcatlons In project file. Mitigation Measure 6.53d:OCSD should initiate research on alternative methods of Maintain records of specifications in project file. OCSD Ongoing OCSD transporting biosolids to land application sites including electric vehicles and mil. measure Mitigation Measure 6.5-2a: OCSD will research and implement ways of reducing Maintain records of specifications in project file. OCSD Ongoing OCSD NOx and air loxics emissions from stationary sources, including non-combustion measure sources to meet future emission reductions that will be imposed by the SCAQMD. Mitigation Measure 6.5-2b: OCSD will comply with existing and future air quality Include mitigation measure in project design OCSD Ongoing OCSD regulations including SCAQMD Rules and permit requirements. As air quality specifications. measure regulations become more restrictive in the South Coast Air Basin coinciding with Include mitigation measure In construction increased operational demand, OCSD will be required to reduce emissions through contractor specifications. process modifications or by Implementing new control technologies. Maintain records of specifications in project file. ons.r?M shms,Pown,eMgaud OAo[WVWI im., 2 Emouns 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule Mitigation Measure 6.5-5a:OCSD will evaluate the need for odor control equipment • Include mitigation measure in project design OCSD Prior to and After for future facilities to reduce fugitive foul odors and include odor control when specifications. Construction necessary. OCSD will also periodically review air emissions from existing facilities to . Maintain records of specifications In project file. determine if odor control is necessary. Mitigation Measure 6.5.5b:When dewatering is required during excavation, 01 • Include mitigation measure in project design OCSD During Construction shall provide odor control systems to reduce construction odor impacts when specifications. necessary. Maintain records of specifications in project file Project Specific Mifica tion Measure Mitigation Measure 4.2-1:OCSD shall incentivize the use of newer biosolids haul Include as part of the evaluation criteria on the OCSD During Operation trucks through awarding points to haul contract bidders that commit to using 2010 or next biosolids hauling contracts. newer fleets. Mitigation Measure 4.2-2: During demolition of the existing sludge dewatering and • Include mitigation measure in project design OCSD;Construction Contractor During Construction odor control facility at Plant 2, OCSD shall ensure that contractors remove all specifications. odorous demolished equipment from the Plant 2 property to minimize potential odors . Include mitigation measure in construction on nearby sensitive receptors. Staging areas shall not be used to store odorous contractor specifications. demolished equipment. If equipment is to be salvaged and may contain odorous , Maintain records of specifications In project file. material, this equipment shall be covered to contain the odors from leaving the fenceline until the equipment is cleaned and odorous materials removed. Mitigation Measure 4.24: Prior to construction of the new sludge dewatering and Prepare an odor study that includes odor OCSD Prior to Construction odor control facility at Plant 2, OCSD shall prepare an odor study to be conducted modeling of the new odor control system to that entails odor modeling of the new odor control system to ensure that odors ensure odors emitted from the facility would be emitted from the facility would minimized to the maximum extent feasible. minimized to the maximum extent feasible • Retain copies of the odor study and results in the project file Biological Resources None Required. Cultural Resources From the 1999 PEIR MMRP Measure 7.10-2c In the event of accidental discovery or recognition of any human • Include mitigation measure In construction OCSD;Construction Contractor During Construction remains, the County Coroner would be notified immediately and construction contractor specifications. activities shall be halted. If the remains are found to be Native American,the Native . Retain records of all inadvertent discovery American Heritage Commission would be notified within 24 hours. Guidelines of the evaluations in the project file. Native American Heritage Commission shall be adhered to in the treatment and disposition of the remains. Geology,Soils,and Seismicity From the 1999 PEIR MMRP ocso rz 9z Simseoewmears.m om,c...]'M.' 3 ssnMIM 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule Measure 6.6-1b: OCSD will design and construct new facilities in accordance with • Maintain records of specifications in project file. OCSD Ongoing OCSD OCSD's seismic standards and/or meet or exceed seismic, design standards in the measure most recent edition of the CBC. Measure 6.6-1 a: Geotechnical Evaluations.During the project design phase for all Incorporate recommendations of the OCSD Prior to Constiucton facilities,OCSD will perform design-level geotechnical evaluations.The geolechnical geotechnical report into the design and evaluations will include subsurface exploration and review of seismic design criteria construction of proposed facilities. to ensure that design of the facilities meet seismic safety requirements of the UBC. Retain geotechnical evaluation reports in the Site-specific testing for soils susceptible to liquefaction shall be conducted. If testing projectfle. results indicates that conditions are present that could result in significant liquefaction and damage to project facilities,appropriate feasible measures will be developed and incorporated into the project design. The performance standard to be used in the geotechnical evaluations for mitigating liquefaction hazards will be minimization of the hazards. Measures to minimize significant liquefaction hazards could include the following: • Densifcation or cambering of surface or subsurface soils. • Construction of pile or pier foundations to support pipelines and/or buildings. • Removal of material that could undergo liquefaction In the event of an earthquake and replacement with stable material. Recommendations of the geotechnical report will be incorporated into the design and construction of proposed facilities. Greenhouse Gas Emission None Required, Hazards and Hazardous Materials Prolecf Specific Mitigation Measure Mitigation Measure 4.4-1:During construction,OCSD shall implement BMPs for the Include mitigation measure in construction OCSD;Construction Contractor During Construction handling and storage of hazardous materials. Implementation of the BMPs shall contractor specifications. minimize adverse affects to the surrounding vicinity,and will include: • Retain a qualified construction monitor to • Implementation of applicable BMPS as identified in the OCSD Stormwater conduct routine inspections of mitigation Onsite Management Plan; implementation during project construction. • Adherence to manufacturer's recommendations and regulatory requirements for ' Retain construction monitoring reports in project use,storage,and disposal of hazardous materials,and; file. • Proper disposal of fuels and other chemicals and hazardous materials. Maintenance and operation records shall be retained in the project file. Mitigation Measure 4.4-2: Prior to construction, OCSD shall prepare and complete Prepare asbestos, lead, and PCB survey of the OCSD Prior to Construction asbestos, lead, and PCB surveys of the facilities to be demolished. facilities to be demolished. Recommendations and procedures shall be described for the removal, handling,and • Include mitigation measure in construction disposal of these hazardous materials and associated elements. OCSD shall require contractor specifications. ocs.ni M sims,Pownlenngavd OAo[CovWl Pmjml 4 96AMIM 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule the contractor performing the asbestos removal andlor demolition project to comply • Submit the Asbestos-Demolition Notification with Air Quality Management District Rule 403,to prevent asbestos emissions from Form to the South Coast Air Quality emanating during building renovation and demolition activities.The contractor Management District at least 14 days prior to performing the asbestos removal andlor demolition project shall submit the Asbestos- demolition activities. Demolition Notification Form to the South Coast Air Quality Management District at • Retain asbestos, lead, and PCV survey in the least 14 days prior to demolition activities. project file. • Retain Asbestos-Demolition Notification Form in Me project file. Hydrology and Water Quality From the 1999 PEIR MMRP Measure (.7-1 a: OCSD will implement Best Management Practices (BMPs) as • Include mitigation measure In construction OCSD During Construction outlined in the On-Site Stormwater Management Plan(OSSWMP). contractor specifications. • Maintenance and operation records shall be retained in the project file. Measure 6.7-1b: OCSD will train construction and operation employees in storm Include mitigation measure in construction OCSD Prior to and During water pollution prevention practices.Individual contractors performing construction at contractor specifications. Construction each treatment facility shall be required to comply with provisions of the OSSWMP. • Retain records of Me compliance and implementation in the project file. Measure 6.7-1c: 01 will inspect and maintain all on-site storm water drains and • Retain records of the compliance and 01 Ongoing Measure catch basins on plant property regularly. implementation in the project file. Measure 6.7-1d: OCSD will apply the Santa Ana RWOCB's recommended BMPs Retain records of the compliance and OCSD During Construction, during construction and operation as specified in the OSSWMP. implementation in the project file. Operation Measure 6.7-1e: For construction involving disturbance greater than one acre of Include mitigation measure in construction OCSD During Construction land,OCSD will incorporate into contract specifications the following requirements: contractor specifications. • The contractor(s) will comply with the RWQCB requirements of the NPDES • Retain records of Me compliance and General Permit for Discharges of Storm Water Associated with Construction Implementation in the project file. Activity.The contractor will implement control measures that are consistent with the General Permit and with the recommendations and polities of the RWQCB. This would include submitting a Notice of Intent and site map to the RWQCB, developing a Storm Water Pollution Prevention Plan, and implementing site- specific BMPs to prevent sedimentation to surface waters. Measure 6.7-2a: Construction contractors will comply with OCSD's Dewalering • Include mitigation measure in construction 01 During Construction Specifications. contractor specifications. • Retain records of the compliance and implementation in the project file. Measure 6.7-2b:Water from dewatering operations will be disposed of in a suitable • Retain records of the compliance and OCSD During Construction manner in conformance with a NPDES permit,as approved by Me RWQCB. implementation in the project file. and Operation ocs.r?M sims,Pownlenngavd OAo[CovWl'Mro S EMMI1H1 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule Land Use and Planning None Required. Mineral Resources None Required. Noise From the 1999 PEIR MMRP Mitigation Measure 6.4-1a: Construction activities shall be limited to between the • Include mitigation measure in construction OCSD;Construction Contractor During Construction hours of 7:30 a.m.and 5:30 p.m.and as necessary to comply with local ordinances. contractor specifications. Any nighttime or weekend construction activities would be subject to local permitting. Retain records of implementation in the project file Mitigation Measure 6.4-1b:All equipment used during construction shall be muffled • Include mitigation measure In construction OCSD;Construction Contractor During Construction and maintained in goad operating condition. All internal wmbustan engine driven contractor specifications. equipment shall be fitted with intake and exhaust mufflers that are in good condition. • Retain records of implementation in the project file. Mitigation Measure 6.4-1 c: OCSO shall hire an acoustical engineer to evaluate Retain an acoustical engineer to implement OCSD During Construction other alternatives for mitigating impacts from extensive pile driving activities. Mitigation Measure 6.4-1c. Retain records of the construction noise survey in project files. Mitigation Measure 6.4-id: OCSD shall employ alternative foundation designs to • Include mitigation measure in project design OCSD Prior to avoid a need for pilings,or use cast-in-place pilings constructed in boreholes. specifications. Construction • Include mitigation measure in construction contractor specifications. • Retain records of implementation in the project file. Mitigation Measure 6.4-le:Nearby sensitive receptors affected by construction shall • Include mitigation measure in construction OCSD;Construction Contractor During Construction be notified concerning the project timing and construction schedule, and shall be contractor specifications. provided with a phone number to call with questions or complaints. During construction, OCSD or the construction contractor shall provide information on the project and include a phone number to call with questions or complaints. • Retain Implementation records In the project file, including any complaints and resolution of complaints. nice.r?M sims,Pownlenngaud nW,WVWI'M.' 6 EMMIM 912186.1 Return to Agenda Report MITIGATION MONITORING AND REPORTING PROGRAM OCSD P2-92 SLUDGE DEWATERING AND ODOR CONTROL PROJECT COMPONENT Implementation, Monitoring, and Reporting Monitoring Mitigation Measures Action Responsibility Schedule Protect Specific Mitigation Measure Mitigation Measure 4.5-1:Stationary construction equipment that generate noise or • Include mitigation measure in construction CCSD;Construction Contractor During Construction vibration(e.g.,compressors,generators,cement mixing,general truck idling)shall be contractor specifications. placed on the construction site as far as possible from the nearest residential land . Retain records of implementation in the project uses. file Mitigation Measure 4.5-2: Sound dampening devices shall be placed around or • Include mitigation measure in construction OCSD;Construction Contractor During Construction adjacent to pile driving activities to minimize noise impacts to the surrounding contractor specifications. community. . Retain records of implementation in Me project file Population and Housing None Required. Public Services None Required. Recreation None Required. Transportation and Traffic Project Specific Mitigation Measure Mitigation Measure 4.6-1: Prior to construction, the construction contractor shall . Include mitigation measure in construction OCSD;Construction Contractor Prior to Construction complete and submit for review and comment a detailed construction schedule to contractor specifications. OCSD. The contractor will be required to comply with the schedule and plan to . The construction contractor shall submit a minimize truck traffic on arterial highways during peak periods and to reduce their detailed construction schedule to OCSD for impediment on street construction. review. . Retain records of the construction schedule In the project files. . Retain implementation records in the project file. Utilities and Energy None Required, ocs.c?M SIWx,Pownlenngaud rxk,WVWI im., 7 EMMIM 912186.1 BOARD OF DIRECTORS Meeting Date I TOBd.Of Dir. — D3/2]/13 AGENDA REPORT ItemNumber Item Number - s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering CIP Project Manager: Hardat Khublall SUBJECT: DOVER DRIVE TRUNK SEWER RELIEF, CONTRACT NO. 5-63 GENERAL MANAGER'S RECOMMENDATION A. Approve Plans and Specifications for Dover Drive Trunk Sewer Relief, Contract No. 5-63, on file at the Office of the Clerk of the Board; B. Approve Addendum Nos. 1 through 4 to the plans and specifications; C. Award a construction contract to Mike Bubalo Construction Co., Inc. for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, for a total amount not to exceed $6,189,000; and, D. Approve a contingency of$618,900 (10%). SUMMARY The Dover Drive Trunk Sewer Relief, Contract No. 5-63, provides for the increase in the hydraulic capacity of approximately 7,300 feet of existing sewer lines located along Dover Drive, between Irvine Avenue and Pacific Coast Highway, in the City of Newport Beach. This work was designed by Atkins North America, Inc. and the design was completed in November 2012. The Orange County Sanitation District (Sanitation District) advertised for bids on November 28, 2012. Nine sealed bids were received on February 21, 2013. The bids were evaluated in accordance with the Sanitation District policies and procedures. Mike Bubalo Construction Co., Inc. was deemed the lowest responsive, responsible bidder. Staff recommends awarding a construction contract to Mike Bubalo Construction Co., Inc. for Dover Drive Trunk Sewer Relief, Contract No. 5-63, for a total amount not to exceed $6,189,000. Summary information on the bid opening for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, is as follows: Project Budget $14,296,000 Construction Contract Budget $ 9,500,000 Engineer's Estimate $ 8,505,535 Lowest Responsive, Responsible Bid $ 6,189,000 High Bid $11,212,850 Page 1 of 2 Bidder Amount of Bid Mike Bubalo Construction Co., Inc. $ 6,189,000 Paulus Engineering, Inc. $ 6,952,802 Vido Artukovich & Son, Inc. $ 7,386,870 GRFCO, Inc. $ 7,475,000 CCL Contracting, Inc. $ 7,978,960 Lonerock, Inc. $ 8,562,550 Mike Prlich and Sons, Inc. $ 8,748,760 Trautwein Construction Inc. $ 9,908,510 ARB, Inc. $11,212,850 PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION None. CEQA This project was included in the June 2007 Collections, Programmatic Environmental Impact Report, and was certified on August 22, 2007. Notice of Determination was filed on August 23, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (FY2012-13 Section 8, Page 31) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contincencv 03/27/13 $6,189,000 $618,900 (10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package and attachments: • Construction Contract (40 Pages) NK:HK:dm:gc Page 2 of 2 Return to Agenda Report PART A CONTRACT AGREEMENT C-CA-071012 Return to Agenda Report TABLE OF CONTENTS CONTRACT AGREEMENT SECTION — 1 GENERAL CONDITIONS..................................................................1 SECTION —2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................5 SECTION —4 PLANS AND SPECIFICATONS ........................................................5 SECTION —5 TIME OF COMMENCEMENT AND COMPLETION ..........................5 SECTION —6 TIME IS OF THE ESSENCE .............................................................6 SECTION -7 EXCUSABLE DELAYS......................................................................6 SECTION —8 EXTRA WORK...................................................................................7 SECTION -9 CHANGES IN PROJECT...................................................................7 SECTION — 10 LIQUIDATED DAMAGES FOR DELAY.............................................8 SECTION — 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................8 SECTION — 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ............................................................................................10 SECTION — 13 COMPLETION.................................................................................10 SECTION — 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................11 SECTION — 15 SURETY BONDS ............................................................................14 SECTION — 16 INSURANCE....................................................................................15 SECTION — 17 RISK AND INDEMNIFICATION.......................................................16 SECTION - 18 TERMINATION................................................................................16 SECTION — 19 WARRANTY....................................................................................16 SECTION —20 ASSIGNMENT.................................................................................17 SECTION —21 RESOLUTION OF DISPUTES ........................................................17 SECTION —22 SAFETY& HEALTH........................................................................18 SECTION —23 NOTICES.........................................................................................18 C-CA-071012 Return to Agenda Report CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION THIS AGREEMENT is made and entered into, to be effective, this March 27, 2013, by and between Mike Bubalo Construction 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. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 1 of 19 Return to Agenda Report A. Contract Documents Order of Precedence '.Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions - Definitions. 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 i. OCIP Insurance policies ii. Exhibit B III. Exhibit C OCIP Insurance Manual iv. Exhibit D OCIP Safety Standards V. Other provisions of the 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 2 of 19 Return to Agenda Report iii. 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 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 3 of 19 Return to Agenda Report 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. 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 4 of 19 Return to Agenda Report 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: CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION 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 443 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 20 calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 5 of 19 Return to Agenda Report In addition, CONTRACTOR shall accomplish such milestones within the periods of performance set forth in Appendix A of the Special Provisions entitled "Work Completion Schedule." 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 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 6 of 19 Return to Agenda Report 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. 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. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 7 of 19 Return to Agenda Report 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 Six Million One Hundred Eighty-Nine Thousand Dollars ($6,189,000)as itemized on the Attached Exhibit"A". 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. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 8 of 19 Return to Agenda Report 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. 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-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 9 of 19 Return to Agenda Report C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts of OCIP payments for the CONTRACTOR's obligation, OCIP-related costs and OCIP penalties assessed as specified in the General Conditions; f. 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." 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'. Within 10 days after the Contract completion date of the Project, CONTRACTOR shall file with OCSD's ENGINEER its affidavit stating that all workers and persons employed; all firms supplying materials; all Subcontractors; and all OCIP Contractor Obligation payments, audit charges and penalties (as specified in the General Conditions); upon the Project having been paid in full, and that there are no claims outstanding against the Project for either labor or material, except those certain items, if any, to be set forth in an affidavit covering disputed claims, or items in connection with C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 10 of 19 Return to Agenda Report stop payment notices which have been filed under the provisions of the statutes of the State of California. OCSD may require affidavits or certificates of payment and/or releases from any Subcontractor, laborer or material Supplier, and/or service provider. Upon receipt of CONTRACTOR'S affidavit, and all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Final Payment", OCSD shall prepare a Final Closeout Agreement setting forth the particular details of the completed Project, including but not limited to, description and amount of all Change Orders, the final amounts of the Contract, as amended, the time and dates of the total agreement and the identification of any unresolved Claims or disputes. Upon receipt of a Final Closeout Agreement duly executed by CONTRACTOR, OCSD's ENGINEER shall submit the Project and the agreements to the General Manager for acceptance of the Project as complete, and for approval of the Final Closeout Agreement, as per the current Delegation of Authority. 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. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 11 of 19 Return to Agenda Report 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 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. C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 12 of 19 Return to Agenda Report 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 seg.)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 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. Record of Wages: Inspection: CONTRACTOR agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the Project and agrees to require that each of its Subcontractors do the same. All payroll records shall be certified as accurate by the applicable CONTRACTOR or Subcontractor or its agent having authority over such matters. CONTRACTOR further agrees that its payroll records and those of its Subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 13 of 19 Return to Agenda Report with all of the provisions of Labor Code Section 1776, in general. Penalties for non- compliance with the requirements of Section 1776 may be deducted from Project payments per the requirements of Section 1776. SECTION— 15 SURETY BONDS 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 It 00%)of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent It 00%)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 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 14 of 19 Return to Agenda Report B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall not commence Work under this Contract until it enrolls in the Owner Controlled Insurance Program (OCIP) and all additional insurance as required by the Contract Exhibit B and Exhibit C is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until each eligible Subcontractor enrolls in the OCIP and all additional insurance required of the Subcontractor by the Contract, Exhibit B and Exhibit C has been obtained. CONTRACTOR shall maintain all of the additional 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 additional insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the additional insurance shall not derogate from the provisions for indemnification of OCSD by CONTRACTOR under Section 17 of this Contract. CONTRACTOR's additional 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, which 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 15 of 19 Return to Agenda Report requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. 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 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 16 of 19 Return to Agenda Report 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. 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 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 17 of 19 Return to Agenda Report provisions as set forth in the General Conditions and as otherwise required by law. This Section does not apply to any OCIP-related claims. 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 D, OCIP Safety Standards. 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: Mike Bubalo Construction Co., Inc. 5102 Gayhurst Avenue Baldwin Park, CA 91706 Copy to: Dave Sorem, Secretary Mike Bubalo Construction Co., Inc. 5102 Gayhurst Avenue Baldwin Park, CA 91706 C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 18 of 19 Return to Agenda Report IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Mike Bubalo Construction Co., Inc. 5102 Gayhurst Avenue Baldwin Park, CA 91706 By Printed Name Its CONTRACTOR's State License No. 771279 (Expiration Date— 11/30/13) OCSD: Orange County Sanitation District By Chair, Board of Directors By Maria Ayala Clerk of the Board By Marc Dubois Contracts, Purchasing and Materials Management Division Manager C-CA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 19 of 19 Return to Agenda Report EXHIBIT A SCHEDULE OF PRICES C-EXA-071012 Return to Agenda Report 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.....6 ATTACHMENT 1 CERTIFICATION FOR REQUEST FOR PAYMENT........................7 ATTACHMENT 2 SCHEDULE OF PRICES ...........................................................8 C-EXA-071012 Return to Agenda Report EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Document 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." EXA-3 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. C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 1 of 17 Return to Agenda Report 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 Deductions: 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 but not limited to OCIP related withholdings, costs and fees as specified in Exhibit B and Exhibit C Insurance Manual. C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 2 of 17 Return to Agenda Report 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. EXA-4 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 slop 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. C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 3 of 17 Return to Agenda Report 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. Less all amounts for the OCIP including, but not limited to, payments for the Contractor's Obligation, OCIP-related audit costs and OCIP penalties assessed; d. Amounts retained; e. A conditional waiver and release on final payment for each Subcontractor(per Civil Code section 8136); f. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code section 8136); g. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, h. 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 i. 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. j. All completed Aon Form-5 Notices of Work Completion for itself and each Subcontractor as specified in Exhibit B and Exhibit C Insurance Manual. 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 fled with the application for Final Payment must be otherwise timely under the Contract and applicable law. C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 4 of 17 Return to Agenda Report 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 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 (30) 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. C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 5 of 17 Return to Agenda Report EXA-6 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; 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 Contractor applicable law. C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 6 of 17 Return to Agenda Report ATTACHMENTI 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 C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 7 of 17 Return to Agenda Report ATTACHMENT SCHEDULE OF PRICES BASE BID ITEMS Unit of Item No. Description Measure- Apt x Unit Price Extended Price ment 1, Mobilization Mobilization not to exceed 4%of the Total Bid Amount as Lump described in Division 01, Section 01271 and in Sum 1 = $ 198,000.00 conformance with the Contract Documents for the lump sum price of... 2, Provide Staging Area Provide staging area including but not limited to property lease, fencing, securing all equipment, materials, and all items stored off Work site, maintaining cleanliness in and Lump p 1 = $ 65,000.00 around staging area, and restoration of the staging area to its original condition as described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 3. Field Office Furnish all labor, materials and equipment necessary for CONTRACTOR's field office, construction scheduling, Lump construction photographs,surveying, dust control, odor Sum 1 = $ 80,000.00 control, utilities and drinking water as described in Division 01, Section 01271 and in accordance with the Contract Documents for the lump sum price of... 4. Shoring and Bracing Furnish all labor, materials and equipment necessary for sheeting, shoring and bracing for protection of life and limb Lump 1 $ 100,000.00 in trenches, open excavations and confined spaces as Sum described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 5. Storm Water Pollution Prevention Plan (SWPPP) Provide all labor, equipment, and materials to prepare the Storm Water Pollution Prevention Plan (SWPPP), provide Lump 1 = $ 30,000.00 implementation and monitoring, permit and fees as Sum described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 6. Dewatering Furnish all labor, materials, and equipment necessary for Lump 1 $ 60,000.00 dewatering during construction as described in Division 01, Sum Section 01271 and in conformance with the Contract Documents,for the lump sum price of... C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 8 of 17 Return to Agenda Report Unit of Item Description Neesure- AQtY x Unit Price Extended Price ment 7. Bypass Systems Install, operate, maintain and subsequently remove bypass systems, piping, and appurtenances as required to Lump 1 = $ 90,000.00 maintain uninterrupted service during construction as Sum described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 8. Temporary Traffic Control Provide, operate and maintain necessary equipment and materials for temporary traffic control during the Sump 1 = $ 100,000.00 construction as described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 9. 244nch VCP Sewer Construct 24-inch vitrified clay pipe(VCP)gravity sewer, including backfill, pavement removal and replacement, Linear protection of existing utilities in place, replacement of Feel 6,940 x $ 450.00 = $3,123,000.00 surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 10. 24-inch Bell less VCP Sewer Construct 24-inch bell-less vitrified clay pipe(VCP)gravity sewer, including backfill, pavement removal and replacement, protection of existing utilities in place, Linear 80 x $ 300.00 = $ 24,000.00 replacement of surface features, all labor, and materials, Feel complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 11. 10-inch VCP Sewer Construct 10-inch vitrified clay pipe(VCP)gravity sewer, including backfill, pavement removal and replacement, protection of existing utilities in place, replacement of Linear 10 x $ 100.00 = $ 1,000.00 surface features, all labor, and materials, complete in place Feel as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 12. 8-inch VCP Sewer Construct 8-inch vitrified clay pipe (VCP)gravity sewer, including backfill, pavement removal and replacement, Linear protection of existing utilities in place, replacement of Feel 415 x $ 450.00 = $ 186,750.00 surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 9 of 17 Return to Agenda Report Unit of Itern No. Description Measure- A pr x unit Price Extended Price ment Qty 13. 84-inch PVC Lined Manhole(OCSD) Construct 84-inch internal diameter PVC lined manhole, including concrete base, precast concrete units,frame and cover, bedding, backfill, pavement removal and replacement, replacement of surface features, protection of Each 2 x $ 35,000.00 = $ 70,000.00 existing utilities in place, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price Of... 14. 72-inch PVC Lined Manholes (OCSD) Construct 72-inch internal diameter PVC lined manholes, including concrete base, precast concrete units,frame and cover, bedding, backfill, pavement removal and replacement, replacement of surface features, protection of Each 3 x $ 30,000.00 = $ 90,000.00 existing utilities in place, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 15. 60-Inch PVC Lined Manholes (OCSD) Construct 60-inch internal diameter PVC lined manholes, including concrete base, precast concrete units,frame and cover, bedding, backfill, pavement removal and replacement, replacement of surface features, protection of Each 34 x $ 25,000.00 = $ 850,000.00 existing utilities in place, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price Of... 16. 48-inch City of Newport Beach Manholes Construct 48-inch internal diameter unlined manholes, including concrete base, precast concrete units,frame and cover, bedding, backfill, pavement removal and replacement, replacement of surface features, protection of Each 17 x $ 15,000.00 = $ 255,000.00 existing utilities in place, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price Of... 17. 60-inch PVC Lined Drop Manholes(OCSD) Construct 60-inch internal diameter PVC lined drop manholes, including concrete base, precast concrete units, frame and cover, bedding, backfill, pavement removal and replacement, replacement of surface features, protection of Each 2 x $ 30,000.00 = $ 60,000.00 existing utilities in place, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 10 of 17 Return to Agenda Report Unit of Item No. Description Is"Sure- Apt x Unit Price Extended Price menl 18. Cleanout per City of Newport Beach Construct Sewer Cleanout per the City of Newport Beach Standard Drawing No. STD-406-L, including piping, frame and cover, bedding, backfll, pavement removal and replacement, replacement of surface features, protection of Each 1 x $ 3,000.00 = $ 3,000.00 existing utilities in place, all labor, materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 19. Field Closures Construct Field Closures per OCSD Standard Drawing No. S-040, including all incidentals, bedding, backfll, pavement removal and replacement, replacement of surface features, Each 6 x $ 3,000.00 = $ 18,000.00 protection of existing utilities in place, all labor and materials complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 20. Abandonment of Manholes Abandon in place various sizes of manholes including backfill, pavement removal, and replacement, protection of existing utilities in place as defined in Contract Documents Each 21 x $ 2,000.00 = $ 42,000.00 including all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 21. Abandonment of Sewer Pipe Sand-cement slurry fill abandoned sewer including all Lump labor, and materials,complete in place as described in Sum AN = $ 45,000.00 Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 22. Modify Manholes Modify existing manholes including all coating requirements, labor, and materials,complete in place as Each 3 x $ 5,000.00 = $ 15,000.00 described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price Of... 23. Steel Casing Construct 39-inch minimum I.D.jacked steel casing, minimum thickness 3/4-inch including grouting, receiving Linear and jacking pits, and protection of utilities in place, all labor, Feel 11 x $ 600.00 = $ 6,600.00 and materials,complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 11 of 17 Return to Agenda Report tern Unit of INo. Description Measur - AQtY x Unit Price E#ended Price merle 24. Utility Supports Construct utility supports across trenches including protection of existing utilities in place, all labor and Lump 1 = $ 15,000.00 materials, complete in place as described in Division 01, Sum Section 01271 and in conformance with the Contract Documents for the lump sum price of... 25. Remove and Replace Traffic Signals Remove and replace existing traffic signal and appurtenances in kind in the vicinity of the Westcliff Drive and Dover Drive intersection including but not limited to Lump backfill, pavement removal and replacement, replacement Sum 1 = $ 20,000.00 of surface features, protection of existing utilities in place, all labor,and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 26. Remove and Replace Street Lights Remove and replace existing street lights at Stations 13+26 and 16+80 in kind including but not limited to backfill, pavement removal and replacement, replacement Lump 1 = $ 10,000.00 of surface features, protection of existing utilities in place, Sum all labor,and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 27. Remove and Dispose Asbestos Cement(AC) Pipe Remove and dispose of existing asbestos cement pipe including but not limited to backfill, pavement removal and Linear replacement,replacement of surface features,protection of Feet 130 x $ 50.00 = $ 6,500.00 existing utilities in place,all labor,and materials,complete in place as described in Division 01,Section 01271 and in con- formance with the Contract Documents for the unit price of... 28. Remove and Replace Concrete Curb and Gutter Remove and replace concrete curb and gutter including but not limited to pavement removal and replacement, Linear replacement of surface features, all labor, and materials, Feet 2,100 x $ 25.00 = $ 52,500.00 complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 29. Remove and Replace Sidewalk Remove and replace concrete sidewalk including but not limited to pavement removal and replacement, replacement Square of surface features, all labor, and materials, complete in Feel 6,500 x $ 10.00 = $ 65,000.00 place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 12 of 17 Return to Agenda Report Unit of Item Description Measure- A pr x Unit Price Extended Price ment City 30. Remove and Replace Cross Gutters Remove and replace cross gutters including but not limited to removal and replacement, pavement removal and Linear replacement, replacement of surface features,all labor, Feet 100 x $ 40.00 = $ 4,000.00 and materials,complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 31. Remove and Replace Traffic Detector Loops Remove and replace existing traffic detector loops including but not limited to pavement removal and replacement, protection of existing utilities in place, all Each 26 x $ 500.00 = $ 13,000.00 labor, and materials,complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 32. Remove and Dispose of Trees Remove and dispose of existing trees including but not limited to any incidental work, protection of existing utilities in place, all labor, and materials, complete in place as Each 4 x $ 1,000.00 = $ 4,000.00 described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price Of... 33. Rehabilitate Sewer(CIPP) Rehabilitate existing sewer(CIPP)including but not limited Lump 1 = $ 45,000.00 to all labor, and materials, complete in place as described Sum in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum of... 34. Rehabilitate Sewer Manhole(polyurethane coating) Rehabilitate existing sewer manhole (polyurethane coating) including but not limited to all labor, and materials, S mp 1 = $ 30,000.00 complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the lump sum price of... 35. 314-inch Max. Crushed Rock(0 inches to 12 inches below) Provide 3/4-inch max.crushed rock, 0 inches to 12 inches below pipe zone, complete in place, including but not Cubic 200 x $ 50.00 = $ 10,000.00 limited to excavation, disposal, installation, and compaction Yards as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 13 of 17 Return to Agenda Report Unit of Item No. Description Measure- A pr x unit Price Extended Price ment city 36. 3/4-inch Max. Crushed Rock(12 inches to 24 inches below) Provide 3/4-inch max. crushed rock, 12 inches to 24 inches below pipe zone, complete in place, including but not Cubic 200 x $ 75.00 = $ 15,000.00 limited to excavation, disposal, installation, and compaction Yards as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 37. Remove and Replace PCC Curb Access Ramps Remove and replace PCC curb access ramps including but not limited to removing and disposing of the existing curb access ramp,subgrade compaction, constructing PCC curb access ramps, restoring all existing improvements Each 2 x $ 5,000.00 = $ 10,000.00 damaged by the work, pavement removal and replacement, replacement of surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 38. 8-inch PVC AW WA C900 Water Pipe Construct 8-inch PVC,AW WA C900 water pipe,working pressure 200-psi pipe, including backfill, pavement removal and replacement, protection of existing utilities in place, Linear 1,700 x $ 55.00 = $ 93,500.00 replacement of surface features, all labor, and materials, Feet complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 39. 6-Inch PVC AW WA C900 Water Pipe Construct 6-inch PVC,AW WA C900 water pipe,working pressure 200-psi pipe, including backfill, pavement removal and replacement, protection of existing utilities in place, Linear Feet 680 x $ 100.00 = $ 68,000.00 replacement of surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 40. 4-inch PVC AW WA C900 Water Pipe Construct 4-inch PVC,AW WA C900 water pipe,working pressure 200-psi pipe, including backfill, pavement removal and replacement, protection of existing utilities in place, Linear ee r 20 x $ 300.00 = $ 6,000.00 replacement of surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 14 of 17 Return to Agenda Report Unit of INa Description Measure- '4 aY x unit Price Extended Price intent 41. 4-inch PVC or HDPE Temporary Water Line Furnish and install 4-inch PVC AW WA C900 (Working Pressure 200-psi)or HDPE AW WA C906 temporary bypass line including but not limited to installing all pipe material, pavement removal,exposing utilities in advance of pipe excavation operations,trench excavations, shoring, bracing,temporary patching or trench plates, control of ground and surface water, bedding, backfll, compaction, Linear installation of pipe,fittings, couplings thrust blocks, Feet 780 x $ 60.00 = $ 46,800.00 potholing of all existing facilities, connections to existing facilities, removal, abandonment or protection of interfering portions of existing utilities or improvements,testing and disinfection,temporary and permanent support of utilities, disposal of excess excavation materials, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 42. Remove and Install Fire Hydrants Remove and install fire hydrants assembly including removing the existing fire hydrants assembly and related incidentals including thrust blocks and installing a new fire hydrants assembly, including but not limited to fire hydrants, fire hydrants bury, valve, valve box and cast iron Each 4 x $ 6,000.00 = $ 24,000.00 traffic cover, valve extension, thrust blocks, removal and replacement of existing sidewalk, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 43. 8-Inch Class 150 Resilient Wedge Gate Valves Install 8-inch Class 150 resilient wedge gate valves including but not limited to installing a 8-inch Resilient Wedge Valve stainless steel trim, valve box, cover and Each 10 x $ 1,500.00 = $ 15,000.00 valve extension, thrust blocks,all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 44. 6-inch Class 150 Resilient Wedge Gate Valves Install 6-inch Class 150 resilient wedge gate valves including but not limited to installing a 6-inch Resilient Wedge Valve stainless steel trim, valve box, cover and Each 6 x $ 1,000.00 = $ 6,000.00 valve extension, thrust blocks, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 15 of 17 Return to Agenda Report Unit of Ito. No. Description Measure- AQry x Unit Price Extended Price ment 45. 4-inch Class 150 Resilient Wedge Gate Valves Install 4-inch Class 150 resilient wedge gate valves including but not limited to installing a 4-inch Resilient Wedge Valve stainless steel trim,valve box, thrust blocks, Each 3 x $ 800.00 = $ 2,400.00 and cover and valve extension, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 46. 4-inch Transitional Couplings Install 4-inch Long Body Transitional Couplings(PVC to ACID) including but not limited to backfill, pavement removal, and replacement, protection of existing utilities in Each 3 x $ 350.00 = $ 1,050.00 place, all labor and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 47. 6-inch Transitional Couplings Install 6-inch Long Body Transitional Couplings(PVC to ACP) including but not limited to backfll, pavement removal, and replacement, protection of existing utilities in Each 6 x $ 400.00 = $ 2,400.00 place, all labor and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 48. Landscape and Irrigation System Remove and reconstruct landscaping and irrigation system in kind including but not limited to all labor, and materials, Lump 1 = $ 30,000.00 complete in place as described in Division 01, Section Sum 01271 and in conformance with the Contract Documents for the lump sum price of... 49. 18-inch RCP Stoml Drain Pipe Construct 18-inch reinforced concrete pipe(RCP),2000-D storm drain including but not limited to removal of existing pipe, backfll, pavement removal and replacement, Linear 50 x $ 150.00 = $ 7,500.00 protection of existing utilities in place, replacement of Feet surface features, all labor, and materials, complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... C-EXA-071012 CONTRACT NO. 5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 16 of 17 Return to Agenda RItem eport Unit of No Description Measure- App. x Unit Price Extended Price ment 50. Curb Inlets Construct curb inlets Type OL and OS and local depressions per City of Newport Beach Standard Drawing No. STD-306-L, including but not limited to backfill, pavement removal and replacement, protection of existing Each 2 x $ 2,000.00 = $ 4,000.00 utilities in place, replacement of surface features, all labor, and materials,complete in place as described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... 51. Demobilization Demobilization of not less than 1%of the Total Amount of Bid (final progress payment) including but not limited to Lump final cleanup, Record Drawings, Final Corrections,and Sum 1 = $ 70,000.00 Final Inspection as described in Division 01, Section 01271 and in conformance with the Contract Documents,for the lump sum price of... SUBTOTAL BASE BID ITEMS NO.1 THROUGH NO. 51 (INITIAL AWARD AMOUNT) $ 6,189,000.00 ADDITIVE BID ITEM Item Unit of Approx. No. Description Measurement city. Unit Price Extended Price 52. Additional Potholing Provide additional potholes as required to locate existing utilities as directed by the ENGINEER as Each 20 x $ 500.00 = $ 10,000.00 described in Division 01, Section 01271 and in conformance with the Contract Documents for the unit price of... SUBTOTAL ADDITIVE BID ITEM NO. 52 $ 10,000.00 TOTAL AMOUNT OF BID(BASIS OF AWARD) $6,199,000.00 NOTES: Bid items 1 through 51 together with Additive Bid Item 52 were used to determine the lowest, responsive, responsible bidder. Additive Bid Item was not included as part of the award amount. In the event OCSD elects to add the Additive Bid Item, it will do so via Change Order(s). Refer to the SPECIAL PROVISIONS Section entitled ADDITIVE BID ITEMS. C-EXA-071012 CONTRACT NO.5-63 DOVER DRIVE TRUNK SEWER RELIEF AND DOMESTIC WATERLINE RELOCATION CONFORMED March 27,2013 Page 17 of 17 BOARD OF DIRECTORS meeting Date I TOBd.Or Dir. — 03/27/13 AGENDA REPORT Item Item Number — 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ADOPT FIVE-YEAR REGIONAL SEWER SERVICE CHARGES AND AUTHORIZE SUCH CHARGES TO BE COLLECTED ON THE COUNTY TAX ROLL GENERAL MANAGER'S RECOMMENDATION A. Open 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. B. Receive Public Comment. C. Close Public Hearing. D. The Clerk of the Board will count the protests and report the number of protests to the Board of Directors. E. If no majority protest: a. Adopt a five year rate schedule for regional sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. b. Motion to read Ordinance No. OCSD-41 by title only and waive second reading of said entire ordinance on March 27, 2013. C. Adopt Ordinance No. OCSD-41, An Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordinance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. d. Adopt Resolution No. OCSD 13-06, 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 2013-2014 through 2017-1018. 916052.1 F. If there is a majority protest, the Board will take no action and provide direction to staff. SUMMARY At the December 2012 Operations and Administration Committee meetings and the December 2012 Board meeting, staff presented a proposed financing plan in support of the Sanitation District's operations. The financing plan addressed the Sanitation District's operating and capital programs for the period covering FY 2013-14 through FY 2020-21. On December 19, 2012, the Board gave direction to staff to issue proposed rate adjustment notices to affected rate payers in compliance with Proposition 218 requirements. At the January 2013 Board meeting, staff presented the Wastewater Revenue and Rate Study prepared by Carollo Engineering, which independently found that staffs recommendation to increase the regional sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure. On February 27, 2013, the Board considered the proposed five-year rate schedule for regional sewer service charges and introduced Ordinance No. OCSD-41, an Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordinance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. The Board also set a Public Hearing pursuant to Proposition 218 to hear protests for March 27, 2013. The proposed rate schedule is based on projected inflationary costs. The net effect of adopting this financing plan and subsequent five-year rate ordinance will be to increase annually the single family residential rate (SFR), the basis for all regional sewer service charges, 4.8 percent effective on July 1, 2013, followed by annual increases of 2.4% for the next four years. The proposed increase provides for equitable and proportionate distribution for the cost of service of operating the Sanitation District's wastewater system. PROPOSED ANNUAL OCSD RESIDENTIAL USER FEE FISCAL YEAR 20013-14 2014-15 2015-16 2016-17 2017-18 SFR* $308.00 $316.00 $323.00 $331.00 $339.00 MFR** $215.60 $221.20 $226.10 $231.70 $237.30 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL *The SFR fee is the underlying rate for all other OCSD sewer service user fees. **The MFR is 70 percent of the SFR rate times the number of units. 916052.1 ADDITIONAL INFORMATION The Board of Directors last adopted a five-year rate plan in 2008 to support its $2.0 billion capital improvement and rehabilitation, refurbishment and replacement program and operational activities. During this period, annual rate increases of ten percent (10%)were required to support larger construction efforts, specifically for the completion of Full Secondary and Groundwater Replenishment System (GWRS) projects. The Sanitation District expects to continue and/or improve its level of service and meet demands on its wastewater system through its Capital Improvement Program (CIP), which has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, odor control improvements, air-quality protection needs, conservation, energy and other resource-savings considerations. Now that the larger construction projects related to the Sanitation District's implementation of full secondary treatment are complete, the Sanitation District will change its focus to rehabilitation and refurbishment efforts, the general maintenance of assets and ongoing operations. Future CIP projects are focused on (1) major rehabilitation of the existing headworks, primary-treatment, outfall, and solids handling facilities; (ii) rehabilitation and replacement of many of the Sanitation District's outlying pump stations and trunk sewers; and (ii)fund cooperative projects to help cities upgrade their sewer systems. The cost adjustments associated with these efforts are primarily inflationary in nature. As a result, increases at the 10 percent level are no longer required, and only increases that align with inflation are being proposed. The CIP projected costs totals approximately 1.63 billion in 2012 dollars between Fiscal Year 2013/2014 and FY 2020/2021. Of this total, approximately $1.44 billion will be undertaken for the rehabilitation and refurbishment efforts identified above, while $0.19 billion will be undertaken to provide capacity for projected growth. Based on an analysis of the cost-of-service for existing users and an allocation of the costs of the Sanitation District's sewer services to each class or customer in proportion to the demands they place on the system, staff is recommending rate adjustments based on the projected inflationary costs of 4.8 percent effective July 1, 2013, followed by annual increases of 2.4 percent for the next four years, where increases to the SFR rate will be approximately$8 per year. Sewer service charges are the primary revenue source of the Sanitation District, and such charges have been adjusted in previous years to generate sufficient cash flow for additional capital improvements and debt-service obligations. The revenues derived from the rate schedule proposed herein will be used to cover the cost of providing and maintaining regional sewer service to existing properties, and the rate schedule represents a balanced approach that implements a strategy of no additional debt issuances, prudent reduction of reserves and achieving various operational efficiencies of more than $15 million per year through the CIP. The revenues derived from the regional sewer service fees proposed herein do not exceed the funds required to provide sewer services to existing properties using the Sanitation District's wastewater system, and the amount of the charge based upon the type of use of each parcel does not exceed the proportional cost of the service attributable to the parcel. 916052.1 In addition to sewer service charges, and other proposed user rate adjustments, existing reserves will be reduced and other cost saving measures will be implemented. Without the use of existing reserves and other cost saving measures, additional rate increases beyond what is proposed would have been required. The proposed rate adjustment will generate approximately $150 million in revenue over the next five years. Without a Board action (by 2/3 majority) to approve the proposed rate increase, the Board will need to adopt an ordinance extending the Single Family Residential (SFR) rate at the current rate of$294 per year. If the rates are not adjusted to cover inflationary increases and maintenance costs, cuts to projects and programs resulting in service level reduction may be required. Therefore, the proposed cost adjustments are calculated to align with inflation and do not exceed the cost of providing sewerage services. Additionally, most of the Sanitation District's revenues are user fees listed on and collected through the County property tax bill as provided in the Sanitation District's ordinance. As the Sanitation District receives payments through eight apportionments from December through June, the Sanitation District holds funds in reserve specifically to pay operating and capital expenses during the "dry" period (July-November). Reducing reserve levels to the minimum level would leave no funds to address payment of expenditures during the "dry" period. It is estimated that without the proposed five-year rate adjustments proposed by staff, 13 percent annual increases for the following four years would be required for reserve levels to be in compliance with the Board-approved policy and to ensure that the Sanitation District can maintain its level of service and meet its obligations. Alternatives Using Reserves By policy, operational need and legal requirement, the Sanitation District maintains a specified level of reserves. The proposed rate adjustments to account for inflationary costs contemplate a reduction in the Sanitation District's reserves. Staff believes that, while the reduction in reserves is warranted at this time, substantial reductions could result in reserve levels below that required by Sanitation District Reserve Policy, which will require Board action to revise it, and could result in cuts to projects and programs as well as service level reduction. To address the consideration of using those reserves to avoid any rate adjustment, staff has identified different alternatives that use OCSD reserves: 1) Proposed Rate Adjustment Schedule This proposed schedule includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. Single Family Residential rates would increase by $14 in the first year and $8 each of the next four years. This schedule has been presented to the Committees and the Board. Under this plan, the Capital Improvement Program (CIP) is funded at its current recommended levels and service levels are maintained. Reserves will be reduced from $600 million to $495 million at the end of the five years. 1a) Equal Annual Five-Year Rate Adjustment 916052.1 This alternative rate schedule involves annual rate increases of 2.4% for each of the five years, effective July 1, 2013. Under this plan, the Capital Improvement Program (CIP) is funded at its current recommended levels and service levels are maintained. However, reserves are reduced from $600 million to $455 million at the end of the five years, dropping to a level that has been reached only twice since 2000, which may, in turn, affect service levels in the long run. This reserve amount would also be below the figure determined by the Sanitation District's current Reserve Policy. The Board would need to take action to change the policy. After the proposed five years, annual 4.5% rate increases would be required for the next four years to return reserves to the approved-policy levels and to ensure continuity in the level of service and the Sanitation District's AAA bond rating. 2a) No Rate Increases during the Five Year Period —Subsequent Rate Adjustment If no rate increase is adopted, and the Board elects to extend the existing rate for the next five years, the Sanitation District will reach the reserve level required by bond covenants and other requirements at the end of the five-year period, which is below the Reserve Policy. By the end of the third year, reserves would drop below the Reserve Policy to pre-2000 levels. By the end of the fifth year, annual 6% rate increases would be required for the next four years just to maintain mandatory minimum reserve levels required by bond covenants and other requirements. OCSD would effectively have zero operational reserves. There would be no funds for the "dry' period between apportionments from the County and no funds for a "Catastrophic Loss". Annual 13% rate increases would be required for the next four years to return reserves to the approved Reserve Policy levels and to ensure continuity in the level of service and the Sanitation District's AAA bond rating. 2b) No Rate Increase during the Five Year Period —Service Level Reduction If no rate increase is adopted, and the Board elects to extend the existing rate for the next five years, to delay the reserve level dropping below the level required by bond covenants and other requirements, the Sanitation District would have to cut $100 million in projects out of the Capital Improvement Program and increase rates by 2.5% for four years after the initial five-year rate program. However, this increase would only maintain the reserve level required by bond covenants and other requirements, which is below the Reserve Policy. OCSD would effectively have zero operational reserves. There would be no funds for the "dry' period between apportionments from the County and no funds for a "Catastrophic Loss". Annual 9.5% rate increases would be required for the next four years to return reserves to the approved Reserve Policy levels and to maintain the Sanitation District's AAA bond rating. Based on the review of the above-stated options, staff recommends the proposed rate adjustment schedule under Option 1 to ensure that the Sanitation District (i) continues to provide sewer services to existing properties at the same or improved level; (ii) maintains sufficient reserves consistent with the Reserve Policy; and (iii) avoids more drastic increases in the future. Alternatives 1a, 2a and 2b are not recommended. Each of these other alternatives would result in reserve levels dropping below the level designated in the Board-approved Reserve Policy and could cause impacts to operations and services. More important, the delay in adopting the proposed gradual increases that align with inflation will result in large future rate increases, and also, there 916052.1 would be insufficient funds to address catastrophic loss, "dry" revenue periods, or other unanticipated expenses. These low reserve levels would also likely result in a reduction of the Sanitation District's AAA bond rating and a reduction in interest earnings. Collection of Charges on the Tax Roll Section 5473 of the California Health and Safety Code provides that sanitary sewer service charges may be collected as a separate line item on the annual property tax roll. The District has utilized this method of fee collection since the inception of these fees. The two principal benefits of this collection method are that the District does not need to develop or fund a utility billing division, and that failure to pay these fees results in a lien against the property, so all fees are ultimately received. The Health and Safety Code requires a new Resolution from the District directing the County Tax Collector to collect these fees on the tax roll. The County Tax Collector-Treasurer charges OCSD for an administration fee, which includes a copy of the database, updates, and for minor programming. The County Auditor charges OCSD, via deduction from fees collected, for the actual collection expenses. Annual collections costs are 0.3 percent of the total sewer service fee, or approximately $475,000. Schedule for Implementing Sewer Service Fee Increase Notice of Public Hearing Mailed February 8, 2013 1S1 Reading of Fee Ordinance February 27, 2013 Notice of Public Hearing 151 Publication March 11, 2013 Notice of Public Hearing 2ntl Publication March 18, 2013 2ntl Reading, Public Hearing, &Adoption of Fee Ordinance March 27, 2013 Ordinance is effective in 30 days, or in the new fiscal year July 1, 2013 Fees per parcel due to County Auditor-Controller August 12, 2013 ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package: • Summary of Proposed Rate Schedules • Agency Rate Comparisons • Proposed Ordinance No. OCSD41, an Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordnance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. • Proposed Resolution No. OCSD 13-XX, 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 Years 2013-2014 through 2017-1018. 916052.1 SUMMARY OF PROPOSED RATE SCHEDULES L Return to Agenda Report Option 1 Option 1a Option 2a Option 2b Rate Change 4.8%in Year 1 2.4%in Year 1 0%for 5 Years 0%for 5 Years 4 years @ 2.4% 4 years @ 2.4% Cut Reserves Cut projects CIP Funded Funded Funded $100M in Reductions Unrestricted Reduced by$120M Reduced by$160M Reduced by$270M Reduced by$160M Reserves (27% Reduction) (36% Reduction) (61% Reduction) (36% Reduction) Subsequent rate increases needed 2.4% 4 S% 13.0% 9.S% to maintain Reserve Policy Recommended Not Recommended Not Recommended Not Recommended Staff Recommendation Blends modest rate Results in higher future Results in large future Results in large future adjustment, cost rate increases and rate increases and no rate increases, cuts to efficiencies, reduced reduced reserves for unrestricted reserves projects, large and no reserves, and no new catastrophic loss or for catastrophic loss or unrestricted reserves debt issuances. unanticipated expenses. unanticipated expenses. for catastrophic loss or unanticipated expenses. May impact AAA Bond Would likely impact Rating AAA bond Rating Would likely impact AAA Bond Rating Return to Agenda Report Comparison of SFR Rates (July 2012) $700 668 $600 $500 i o $400 N o $300 $294 0 $200 $149 $0 rr We're here for you. ORDINANCE NO. OCSD41 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING AND RESTATING ORDINANCE NO. OCSD-35 CONCERNING SANITARY SEWER SERVICE CHARGES AND REPEALING ORDINANCE NO. OCSD-35. ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES AND REVISED TABLE B PROPERTY USE CLASSIFICATIONS WHEREAS, The former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998; and WHEREAS, As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District ("District"), came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts; and WHEREAS, The District, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including: a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive 20-year Master Plan of Capital Facilities, entitled "1999 Strategic Plan" ("Master Plan"). WHEREAS, The Master Plan, setting forth and identifying the required future development of District Facilities, including financial projections for providing sewer service to all properties within the District's service area, was approved and adopted by the Board of Directors on October 27, 1999 by OCSD Resolution No. 99-21, with updates adopted in 2002 and 2006, following a noticed public hearing, and in compliance with the provisions of the California Constitution and all other applicable laws; and WHEREAS, The Board of Directors approved the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, which resulted in the development of a Capital Improvement Program that provides for the implementation of secondary W S&S-BRH:pj:201660:04/20/05 1 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities; and WHEREAS, pursuant to Health and Safety Code section 5471, the Board of Directors is authorized to prescribe, revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished by the District in connection with its sewerage system; and WHEREAS, on February 27, 2008, the Board of Directors of the District adopted Ordinance No. OCSD-35, establishing annual Sanitary Sewer Service Charges; and WHEREAS, on January 23, 2013, the Board of Directors was presented with and has reviewed the District's Wastewater Revenue and Rate Study dated January 2013 prepared by Carollo Engineers, on file with the District, which independently found that the proposed increases in the regional sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure; and WHEREAS, for purposes of ensuring that the District has sufficient revenues and reserves to meet the District's obligations and operations, it is the intent, by the adoption of this Ordinance, to establish annual regional sewer service charges; and WHEREAS, Section 21080(b)(8) of the Public Resources Code states that "the establishment, modification, structuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of (A) meeting operating expenses, including employee wage rates and fringe benefits, (B) purchasing or leasing supplies, equipment, or materials, (C) meeting financial reserve needs and requirements, (D) obtaining funds for capital projects necessary to maintain service within existing service areas, or (E) obtaining funds necessary to maintain those intracity transfers as are authorized by city charter' is not subject to CEQA; and WHEREAS, Section 15273(a) of the California Code of Regulations states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of: (1) Meeting operating expenses, including employee wage rates and fringe benefits, (2) Purchasing or leasing supplies equipment, or materials, (3) Meeting financial reserve needs and requirements, (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter; and WHEREAS, pursuant to Article XIIID, section 6, of the California Constitution, Notice of the Public Hearing regarding the proposed regional sewer WSBS-BRH:pj:201660:04/20/05 2 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report service charges, which included 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 by the District to the record owner of each identified parcel upon which the charge is proposed for imposition; and WHEREAS, pursuant to Health and Safety Code sections 4766 and 5473, the Board of Directors is authorized to 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 11, 2013, and again on March 18, 2013, Notice of the Public Hearing regarding the proposed regional sewer services charges and the election to have such charges collected on the tax role, which included the date, time and location of the hearing, was published in The Orange County Register, a newspaper of general circulation within the District published in the county where the District is located; and WHEREAS, on Wednesday, March 27, 2013 at 6:30 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 Wastewater Revenue and Rate Study dated January 2013, and has considered the public and Board comments, and the oral and written presentation by the District's staff and consultants made at the March 27, 2013 public hearing, as well as any written public comments. 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. A. Exemptions B. Application for Rebate WSBS-BRH:pj:201660:04/20/05 3 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report C. Application for Refund D. Limitation Period E. Determination F. Administrative Fee 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 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 adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. The Board of Directors hereby finds: A. That the regional sewer service charges and the annual adjustments to the regional sewer service charges (collectively referred hereafter as the "Sewer Service Charges") as established herein is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. B. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District, together with costs of administration and provisions for necessary reserves. C. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the Capital Improvement Plan, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facilities' needs are expected to be realized in each year as described in the reports. D. That the owners or occupants of properties, upon which all fees and charges established by this Ordinance are levied, discharge wastewater WSBS-BRH:pj:201660:04/20/05 4 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. F. That the Sewer Service Charges established by this Ordinance are reasonably related to, and do not exceed the cost of providing sewer services, and shall herein be levied on each parcel to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for different types of uses. G. That the basis for the respective charge is not based on potential or future use, but rather, is based upon the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service for actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. H. That the revenues derived from the Sewer Service Charges shall not be used for any purpose other than that for which the charge is imposed. I. That the Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the proportional cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. J. That the Sewer Service Charges adopted herein are established upon a reasonable basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. K. That the Sewer Service Charges adopted herein will not result in an expansion of facilities to provide for growth within 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. L. That the Board of Directors is adopting the Sewer Service Charges herein to (i) meet operating expenses, (ii) purchase or lease supplies, equipment, or materials, (iii) meet financial reserve needs and requirements, and (iv) obtain funds for capital projects necessary to maintain service within existing service areas. Therefore, the Board finds and determines, based upon substantial evidence, that the establishment of the Sewer Service Charges are statutorily exempt from CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273(a) of the California Code of Regulations. WSBS-BRH:pj:201660:04/20/05 5 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report M. 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 required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for (1) the acquisition, construction, reconstruction, maintenance, and operation of the wastewater collection, treatment and disposal facilities of the District, (ii) to repay principal and interest on debt instruments, or (iii) to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. 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. 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 rebate or a refund with respect to charges paid, as more specifically set forth in Subparagraphs 2.03E and 2.03C below, provided an inequity is established or a billing error is proven, as specified in Subparagraphs 2.03E or 2.03C. B. Application for Rebate. Any property owner, or legally recognized authorized representative of the property owner, may apply to the District for a rebate of Sewer Service Charges paid to the District by establishing that an unfair valuation of the property has been made by the District. An applicant for a rebate must establish, by proof satisfactory to the General Manager of the District, or his/her designee, that an inequity exists WSBS-BRH:pj:201660:04/20/05 6 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report between the amount of the charge paid and the amount of wastewater discharged to the District's system, resulting in an unfair valuation. Satisfactory proof shall establish that either: (1) The principal water use is agricultural or horticultural; or (2) 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. Satisfactory proof shall include, but not be limited to, documentation showing actual water usage for each billing cycle during the entire period for which the rebate is sought. The amount of any rebate shall not reduce the charge payable by any property owner, whose property is connected to the District's system, to less than the single family residential charge shown on the applicable Table attached hereto. C. AmAcation for Refund. Any property owner (as used herein, includes any person who paid the sewer service charges), 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: (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper property use classification code; or (3) A clerical error has been made. D. Limitations Period. Applications for refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097. Applications for rebates shall be deemed a claim and be governed by the provisions of California Government Code Sections 935 at seq., and shall be presented to the District as provided in the Government Tort Claims Act, Government Code Sections 915 at seq., not later than four (4) years after the submission of the roll to the County Auditor/Controller, and the claim for rebate may only be made with respect to amounts paid or payable under such property tax bill. A claim for rebate is not deemed a claim for refund, and California Revenue & Taxation Code Sections 5096 and 5097 are not applicable. WS&S-BRH:pj:201660:04/20/05 7 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report E. Determination. All applications for rebates 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 or refund. F. Administrative Fee. At the time of filing the application for rebate 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. 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. 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 2.056 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-40, as amended, in an amount equal to the annual Sewer Service Charge established by Section 2.02 of this Ordinance. WS&S-BRH:pj:201660:04/20/05 8 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report 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. WSBS-BRH:pj:201660:04/20/05 g OCSD.ADB 4/2W07 910662.1 Return to Agenda Report TABLE A ANNUAL SEWER SERVICE CHARGES RESIDENTIAL USERS FISCAL YEAR 2013-14 2014-15 2015-16 2016-17 2017-18 SFR* $308.00 $316.00 $323.00 $331.00 $339.00 MFR $215.60 $221.20 $226.10 $231.70 $237.30 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. W S&S-BRH:pj:201660:04/20/05 10 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unit 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 AddT 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% W S&S-BRH:pj:201660:04/20/05 11 OCSD-ADB 4/25/07 910662.1 Return to Agenda Report TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 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% W S&S-BRH:pj:201660:04/20/05 12 OCSD.ADB 4/25/07 910662.1 Return to Agenda Report TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 4 Miscellaneous Improvement 100% 85 Comb. Se". 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 Markel 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. W S&S-BRH:pj:201660:04/20/05 13 OCSD.ADB 4/25/07 910662.1 Return to Agenda Report 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. Section ll. 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, 2013. Section IV. Repeal. Ordinance No. OCSD-35 is repealed in its entirety effective June 30, 2013. 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. W S&S-BRH:pj:201660:04/20/05 14 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report 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 27, 2013. TROY EDGAR CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: MARIA E. AYALA CLERK OF THE BOARD ORANGE COUNTY SANITATION DISTRICT APPROVED AS TO FORM: BRADLEY R. HOGIN, GENERAL COUNSEL W S&S-BRH:pj:201660:04/20/05 155 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report Return to Agenda Report RESOLUTION NO. OCSD 13-05 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 2013-2014 THROUGH 2O17-2018. The Board of Directors of the Orange County Sanitation District ("District')does hereby find: A. On March 27, 2013, the Board of Directors adopted Ordinance No. OCSD-41, An Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordnance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. B. By adoption of Ordinance No. OCSD-41, the Board of Directors elected to adopt, impose, and collect rates and charges for regional sanitary sewer services provided by the District and correspondingly established procedures related thereto. C. California Health & Safety Code section 5473 provides that such charges, as adopted by District Ordinance No. OCSD-41, 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. D. The charges established by Ordinance No. OCSD-41 reflect an allocation of the costs of operation and maintenance, such that the charges do not exceed the estimated reasonable costs to provide the wastewater collection, treatment, and disposal services and facilities, and the revenues received are not used for any other purpose. E. Pursuant to California Constitution Article XIIID (Proposition 218), sanitary sewer service charges constitute charges for property-related services. The sanitary sewer service charges set by Ordinance No. OCSD-41 comply with the provisions of Article XIIID, in that they do not exceed the cost to the District to provide the service and facilities. F. The District provided notice as required by Health and Safety Code section 5473.1, and held a public hearing on March 27, 2013, 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: 916112.1 1 Return to Agenda Report Section 1: That the rates and charges set forth in Ordinance No. OCSD-41 are affirmed herein by the Board of Directors, as consistent with the findings hereinabove stated, for Fiscal Years 2013-2014 through 2017-2018, in the following amounts: Annual Sanitary Sewer Service User Fees Residential Users FISCAL YEAR 2013-14 2014-15 2015-16 2016-17 2017-18 SFR $308.00 $316.00 $323.00 $331.00 $339.00 MFR $215.60 $221.20 $226.10 $231.70 $237.30 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-41, 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 2013-2014 through 2017-2018. 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-41, 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 effect 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. 13-05 are hereby superseded. 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. 916112.1 2 Return to Agenda Report PASSED AND ADOPTED at a regular meeting held March 27, 2013. Troy Edgar Chair, Orange County Sanitation District ATTEST: Maria Ayala Clerk of the Board 916112.1 3 BOARD OF DIRECTORS Meeting Date I TOBd.O(Dir. — o3/Z7/13 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: ADOPT FIVE-YEAR INDUSTRIAL SEWER SERVICE CHARGES GENERAL MANAGER'S RECOMMENDATION A. Open Public Hearing and Receive Public Comment. B. Close Public Hearing. C. Adopt a five year rate schedule for industrial sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4% D. Motion to read Ordinance No. OCSD-42 by title only and waive second reading of said entire Ordinance on March 27, 2013. E. Adopt Ordinance No. OCSD-42, An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD-40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees. SUMMARY At the December 2012 Operations and Administration Committee meetings and the December 2012 Board meeting, staff presented a proposed financing plan in support of the Sanitation District's operations. The financing plan addressed the Sanitation District's operating and capital programs for the period covering FY 2013-14 through FY 2020-21. On December 19, 2012, the Board gave direction to staff to issue proposed rate adjustment notices to effected rate payers in compliance with Proposition 218 requirements. In January 2013, the Administration Committee received a Wastewater Revenue and Rate Study completed by Carollo Engineers that included the appropriate allocation of costs between and among pollutants (BOD, SS and Flow), including the basis for allocation of non-assignable costs, maintaining a "net cost of service" rate structure for high industrial dischargers (permittees) that is fair and equitable to all rate payers. The rate study did not note any material functional cost allocation change between BOD, 916051.1 SS, and Flow and found that it would be fair and equitable to increase each of these cost components by the overall rate increase established by the Board. At the January 2013 Board meeting, staff presented the Wastewater Revenue and Rate Study prepared by Carollo Engineering, which found that staffs recommendation to increase the industrial sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure. On February 27, 2013, the Board considered the proposed five-year rate schedule for industrial sewer service charges and introduced Ordinance No. OCSD-42, An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD-40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees. The Board also set a Public Hearing to hear protests for March 27, 2013. The proposed rate schedule is based on projected inflationary costs. The net effect of adopting this financing plan and subsequent five-year rate ordinance will be to increase annually all of the Sanitation District's industrial sewer service charges 4.8 percent effective on July 1, 2013, followed by annual increases of 2.4% for the next four years. The proposed increase provides for equitable and proportionate distribution for the cost of service of operating the Sanitation District's wastewater system. PROPOSED ANNUAL INDUSTRIAL SEWER SERVICE FEE Class I, Class II and Special Purpose Discharger Rates 2013-14 2014-15 2015-16 2016-17 2017-18 FLOW $1,284.74 $1,315.58 $1,347.15 $1,379.48 $1,412.59 BOD $610.67 $625.33 $640.33 $655.70 $671.44 TSS $649.55 $665.14 $681.10 $697.45 $714.19 (*) Flow per Million Gallons (**) BOD per Thousand Pounds (**') SS per Thousand Pounds ADDITIONAL INFORMATION The Board of Directors last adopted a five-year rate plan in 2008 to support its $2.0 billion capital improvement and rehabilitation, refurbishment and replacement program and operational activities. During this period, annual rate increases of ten percent (10%)were required to support larger construction efforts, specifically for the completion of Full Secondary and Groundwater Replenishment System (GWRS) projects. The Sanitation District expects to continue and/or improve its level of service and meet demands on its wastewater system through its Capital Improvement Program (CIP), which has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, odor control improvements, air-quality protection needs, conservation, energy and other resource-savings considerations. 916051.1 Now that the larger construction projects related to the Sanitation District's implementation of full secondary treatment are complete, the Sanitation District will change its focus to rehabilitation and refurbishment efforts, the general maintenance of assets and ongoing operations. Future CIP projects are focused on (i) major rehabilitation of the existing headworks, primary-treatment, outfall, and solids handling facilities; (ii) rehabilitation and replacement of many of the Sanitation District's outlying pump stations and trunk sewers; and (ii)fund cooperative projects to help cities upgrade their sewer systems. The cost of adjustments associated with these efforts are primarily inflationary in nature. As a result, increases at the 10 percent level are no longer required, and only increases that align with inflation are being proposed. The CIP projected costs totals approximately 1.63 billion in 2012 dollars between Fiscal Year 2013/2014 and FY 2020/2021. Of this total, approximately $1.44 billion will be undertaken for the rehabilitation and refurbishment efforts identified above, while $0.19 billion will be undertaken to provide capacity for projected growth. Based on an analysis of the cost-of-service for existing users and an allocation of the costs of the Sanitation District's sewer services to each class or customer in proportion to the demands they place on the system, staff is recommending rate adjustments based on the projected inflationary costs of 4.8 percent effective July 1, 2013, followed by annual increases of 2.4 percent for the next four years. User charges are the primary revenue source of the Sanitation District, and such charges have been adjusted in previous years to generate sufficient rash flow for additional capital improvements and debt-service obligations. The revenues derived from the rate schedule proposed herein will be used to cover the cost of providing and maintaining sewer service to industrial users, and the rate schedule represents a balanced approach that implements a strategy of no additional debt issuances, prudent reduction of reserves and achieving various operational efficiencies of more than $15 million per year through the CIP. The amount of the proposed industrial sewer service charge is based upon the demand of each user on the Sanitation District's wastewater system, and such charge does not exceed the proportional cost of the service attributable to the parcel. In addition to industrial sewer service charges, and other proposed user rate adjustments, existing reserves will be reduced and other cost saving measures will be implemented. Without the use of existing reserves and other cost saving measures, additional rate increases beyond what is proposed would have been required. By policy, operational need and legal requirement, the Sanitation District maintains a specified level of reserves. Staff believes that, while the reduction in reserves is warranted at this time, substantial reductions could result in reserve levels below that required by Sanitation District Reserve Policy, which will require Board action to revise it, and could result in cuts to projects and programs as well as service level reduction. Therefore, staff recommends that the Board adopt the proposed five year rate schedule to ensure that the Sanitation District (i) continues to provide sewer services to existing properties at the same or improved level; (ii) maintains sufficient reserves consistent with the Reserve Policy; and (iii) avoids more drastic increases in the future. 916051.1 ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package and attachments: Proposed Ordinance No. OCSD-42, An Ordinance of the Board of Directors of Orange County Sanitation District Amending Ordinance No. OCSD-40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees (7 pages) JDR:LT:MW:AB 916051.1 Return to Agenda Report ORDINANCE NO. OCSD42 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING ORDINANCE NO. OCSD-40 CONCERNING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES AND SOURCE CONTROL PERMITTEES. ADOPTING REVISED TABLE F RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES WHEREAS, The former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 et seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998; and WHEREAS, As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District ("District"), came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts; and WHEREAS, The District, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including: a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive 20-year Master Plan of Capital Facilities, entitled "1999 Strategic Plan" ("Master Plan"). WHEREAS, The Master Plan, setting forth and identifying the required future development of District Facilities, including financial projections for providing sewer service to all properties within the District's service area, was approved and adopted by the Board of Directors on October 27, 1999 by OCSD Resolution No. 99-21, with updates adopted in 2002 and 2006, following a noticed public hearing, and in compliance with the provisions of the California Constitution and all other applicable laws; and 910708.1 1 Return to Agenda Report WHEREAS, The Board of Directors approved the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, which resulted in the development of a Capital Improvement Program that provides for the implementation of secondary treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities; and WHEREAS, pursuant to Health and Safety Code section 5471, the Board of Directors is authorized to prescribe, revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished by the District in connection with its sewerage system; and WHEREAS, On May 26, 2010, the Board of Directors of the District adopted Ordinance No. OCSD40, establishing capital facilities capacity charges, along with miscellaneous charges and fees relating to industrial charges, source control permittees, and wastehaulers; and WHEREAS, on January 23, 2013, the Board of Directors was presented with and has reviewed the District's Wastewater Revenue and Rate Study dated January 2013 prepared by Carollo Engineers, on file with the District, which independently found that the proposed increases in the industrial user charges based on unit costs were appropriate and reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure; and WHEREAS, for purposes of ensuring that the District has sufficient revenues and reserves to meet the District's obligations and operations, it is the intent, by the adoption of this Ordinance, only to amend Table F of Ordinance No. OCSD40 to establish new industrial user charges; and WHEREAS, Section 21080(b)(8) of the Public Resources Code states that "the establishment, modification, structuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of (A) meeting operating expenses, including employee wage rates and fringe benefits, (B) purchasing or leasing supplies, equipment, or materials, (C) meeting financial reserve needs and requirements, (D) obtaining funds for capital projects necessary to maintain service within existing service areas, or (E) obtaining funds necessary to maintain those intracity transfers as are authorized by city charter" is not subject to CEQA; and WHEREAS, Section 15273(a) of the California Code of Regulations states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of: (1) Meeting operating expenses, including 910708.1 2 Return to Agenda Report employee wage rates and fringe benefits, (2) Purchasing or leasing supplies equipment, or materials, (3) Meeting financial reserve needs and requirements, (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter"; and WHEREAS, Notice of the Public Hearing regarding the proposed industrial user charges, which included 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 by the District to the each industrial permitee upon which the charge is proposed for imposition; and WHEREAS, on Wednesday, March 27, 2013 at 6:30 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 industrial user; and WHEREAS, the Board of Directors has carefully reviewed the Wastewater Revenue and Rate Study dated January 2013, and has considered the public and Board comments, and the oral and written presentation by the District's staff and consultants made at the March 27, 2013 public hearing, as well as any written public comments. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. The Board of Directors hereby finds: A. That the industrial user charges and the annual adjustments to the industrial user charges (collectively referred hereafter as the "Sewer Service Charges") as established in Table F herein is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. B. That the revenues derived under the provisions of this Ordinance will be used for (i) the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District, (ii) to repay principal and interest on debt instruments, (iii) to repay federal and state loans issued for the construction and reconstruction of said sewerage 910708.1 3 Return to Agenda Report facilities, together with costs of administration and provisions for necessary reserves, and (iv) to assist in the payment of costs to provide all regulatory administration and laboratory services related to the industrial dischargers and source control permittees of the OCSD's systems. C. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the Capital Improvement Plan, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facilities' needs are expected to be realized in each year as described in the reports. D. That the owners of properties, upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. F. That the Sewer Service Charges established by this Ordinance are reasonably related to, and do not exceed the cost of providing sewer services, and shall herein be levied on each parcel to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for different types of uses. G. That the basis for the respective charge is not based on potential or future use, but rather, is based upon the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service for actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. H. That the revenues derived from the Sewer Service Charges shall not be used for any purpose other than that for which the charge is imposed. I. That the Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the proportional cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. J. That the Sewer Service Charges established herein are not an incident of property ownership, are not an assessment, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. 910708.1 4 Return to Agenda Report K. That the Sewer Service Charges adopted herein are established upon a reasonable basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. L. That the Sewer Service Charges adopted herein will not result in an expansion of facilities to provide for growth within 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. M. That the District is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, at seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 at seq.) to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers. N. That the District is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. O. That pursuant to these requirements, the Board of Directors has adopted a separate ordinance establishing Wastewater Discharge Regulations. P. That the District incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the OCSD's Wastewater Discharge Regulations and in administering the industrial and special discharge permit programs. Q. That the ordinance establishing Wastewater Discharge Regulations provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers who violate the OCSD's Wastewater Discharge Regulations. R. That the Sewer Service Charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger or source control use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance sampling, and related services associated with the OCSD's Source Control Program. S. That the Board of Directors is adopting the Sewer Service Charges herein to (i) meet operating expenses, (ii) purchase or lease supplies, equipment, or materials, (iii) meet financial reserve needs and requirements, and (iv) obtain funds for capital projects necessary to maintain service within existing service areas. Therefore, the Board finds and determines, based upon substantial evidence, that the establishment of the Sewer Service Charges are statutorily exempt from 910708.1 5 Return to Agenda Report CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273(a) of the California Code of Regulations. T. 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. Section It. Amendment. Table F of Ordinance No. OCSD-40 is hereby deleted, effective June 30, 2013, in its entirety and replaced, effective July 1, 2013, with the following: "TABLE F ANNUAL INDUSTRIAL USER FEE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Flow (*) $ 1,284.74 $ 1,315.58 $1,347.15 $1,379.48 $1,412.59 B.O.D. (**) $ 610.67 $ 625.33 $ 640.33 $ 655.70 $ 671.44 S.S. (***) $ 649.55 $ 665.14 $ 681.10 $ 697.45 $ 714.19 Special Purpose Discharge Permit FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Flow (*) $ 1,284.74 $ 1,315.58 $ 1,347.15 $1,379.48 $1,412.59 (*) Flow per Million Gallons (**) BOD per Thousand Pounds (***) SS per Thousand Pounds All properties located within Revenue Area No. 14 pay no annual service fees. OCSD 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 III. Effect of Amendment. Except as expressly amended in Section II herein and to the extent they have been expressly superseded herein, no other amendments, changes, or modifications are being made to the remaining portions of Ordinance No. OCSD40. The remaining findings and provisions set forth in 910708.1 6 Return to Agenda Report Ordinance No. OCSD-40, or portions thereof, not superseded herein shall continue in full force and effect. Section IV. Several ty. 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 V. Effective Date. This Ordinance shall take effect July 1, 2013. Section VI. Repeal. Table F contained in Ordinance No. OCSD-40 is hereby repealed effective June 30, 2013. 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. 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 March 27, 2013. TROY EDGAR CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: MARIA E. AYALA CLERK OF THE BOARD ORANGE COUNTY SANITATION DISTRICT APPROVED AS TO FORM: BRADLEY R. HOGIN, GENERAL COUNSEL 910708.1 7 OPERATIONS COMMITTEE meeting Date TOBd.Of Dir. 03/06/13 03/2]/13 Item AGENDA REPORT Number Item Number 2 10 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering CIP Project Manager: Hardat Khublall SUBJECT: DOVER DRIVE TRUNK SEWER RELIEF, CONTRACT NO. 5-63 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Consultant Services Agreement with Atkins North America, Inc. (Atkins) to provide construction support services for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, for an amount not to exceed $353,791; and, B. Approve a contingency of$53,069 (15%). SUMMARY The Dover Drive Trunk Sewer Relief, Contract No. 5-63, provides for the increase in the hydraulic capacity of approximately 7,300 feet of existing sewer lines located along Dover Drive, between Irvine Avenue and Pacific Coast Highway, in the City of Newport Beach. Atkins North America, Inc., (Atkins) formerly PBS&J, has successfully furnished engineering services for the design of Contract No. 5-63 and their engineering support services during construction will provide continuity through the completion of the project. The proposed construction services include reviewing submittals, answering Contractor's requests for information, reviewing design changes, assisting with claims avoidance and dispute resolution, participating in the final inspection, preparing record drawings, and assisting in closeout of the project. PRIOR COMMITTEE/BOARD ACTIONS December 2012 — Authorized the General Manager to negotiate a Professional Consultant Services Agreement with Atkins North America, Inc. (Atkins) for construction support services for Dover Drive Trunk Sewer Relief, Contract No. 5-63. September 2008 — Approved Professional Design Services Agreement with PBS&J for Dover Drive Trunk Sewer Relief, Contract No. 5-63, providing for engineering design services for an amount not to exceed $956,431 and approve a contingency of $95,643 (10%). ADDITIONAL INFORMATION None. Page 1 of 2 CEQA This project was included in the June 2007 Collections, Programmatic Environmental Impact Report, was certified on August 22, 2007 and a Notice of Determination was filed on August 23, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (FY2012-13 Section 8, Page 31) and the budget is sufficient for the recommended action. Date of ADDroval Contract Amount Contingency 03/27/13 $353,791 $53,069(15%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Professional Consultant Services Agreement (16 Pages) NK:HK:dm Page 2 of 2 Return to Agenda Report PROFESSIONAL CONSULTANT SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27' day of March, 2013 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT', and ATKINS NORTH AMERICA, INC., for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide Construction Support Services for Dover Drive Trunk Sewer Relief, Contract No. 5-63; and, WHEREAS, CONSULTANT is qualified to provide the necessary services for Construction Support Services in connection with these requirements; and, WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with the Delegation of Authority (DOA) Section 5.7 (f)and (g)for the selection of Construction Support Services and has proceeded in accordance with said procedures to perform this work; and, WHEREAS, at its regular meeting on March 27, 2013 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee 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. PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 1 of 16 Return to Agenda Report C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CADD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT standard software. Conversion of CADD work from any other non-standard CADD formal to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall be subject to an acceptance period of 30 calendar days during which the SANITATION DISTRICT shall perform appropriate acceptance tests. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. 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 parry 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 Three Hundred Fifty Three Thousand Seven Hundred Ninety-One Dollars ($ 353,791). 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"— Final Negotiated Fee Proposal. PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 2 of 16 Return to Agenda Report 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"— Final Negotiated Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. 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"- Final Negotiated Fee Proposal. E. Subconsultants 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"G"— Personnel Hourly Rates. 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"- Final Negotiated 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 PCSA CONTRACT NO.5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 3 of 16 Return to Agenda Report 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 Subsection C—Overhead above. 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: I. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or it. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 4 of 16 Return to Agenda Report 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 $10,000 civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. PREVAILING WAGES To the extent CONSULTANT intends to employ employees who will perform work during the design and preconstruction phases of a construction contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. PCSA CONTRACT NO.5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 5 of 16 Return to Agenda Report 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require Contractor to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within 20 days of written notice to Contractor, 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: Two PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 6 of 16 Return to Agenda Report Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and automotive liability insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. 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 Three Million Dollars PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 7 of 16 Return to Agenda Report ($3,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25-S(7/97)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 1001 and CG 2037 1001 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. PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 8 of 16 Return to Agenda Report • 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-S (7/97)shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Contracts Administration, Div. 230, 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 PCSA CONTRACT NO.5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 9 of 16 Return to Agenda Report 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 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. 8. SCOPECHANGES In the event of a change in the scope of the proposed project, requested by SANITATION DISTRICT, the parties hereto shall execute an addendum 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. PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 10 of 16 Return to Agenda Report 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all Project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will 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: Gary V. Prater, Principal Contracts Administrator Copy: Hardat Khublall, Project Manager PCSA CONTRACT NO. 5-63 Remed 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 11 of 16 Return to Agenda Report Notices shall be mailed to CONSULTANT at: ATKINS NORTH AMERICA, INC. 625 The City Drive South Suite 200 Orange, CA 92868-4946 Attention: M. Cenk Yavas, PE, D.WRE All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty(30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days written notice only if CONSULTANT is not Compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13- NOTICES. 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. PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 12 of 16 Return to Agenda Report 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 inequity 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 he may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT'S sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT'S officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT'S fees and costs and the SANITATION DISTRICT'S general and administrative expenses; individually, a"Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT'S suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require PCSA CONTRACT NO.5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 13 of 16 Return to Agenda Report CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, Officer, agent, employee, nor CONSULTANT'S supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT'S liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT'S indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT'S indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 14 of 16 Return to Agenda Report 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 Department and may be considered in future CONSULTANT selection processes. 25. 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. 26. 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. PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 15 of 16 Return to Agenda Report IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: ATKINS NORTH AMERICA, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Maria E. Ayala Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A"—Scope of Work Attachment'B"—Labor Hours Matrix Attachment"D"—Allowable Direct Costs Attachment"E"—Final Negotiated Fee Proposal Attachment"G"— Personnel Hourly Rates GVP:yp EDMS:003970709 PCSA CONTRACT NO. 5-63 Revised 02/07/13 DOVER DRIVE TRUNK SEWER RELIEF Page 16 of 16 OPERATIONS COMMITTEE Mewing Date TOBd.Of W. 03/06/13 03/27/13 AGENDA REPORT Item Number Item Number 3 11 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering Project Manager: Jeff Brown, Senior Engineer SUBJECT: OPENCEL LEASE PURCHASE AGREEMENT AMENDMENT TO INCLUDE APPLICABLE TAXES GENERAL MANAGER'S RECOMMENDATION Amend the motion, Item 15, July 28, 2010, authorizing an Agreement with OpenCEL, LLC for installation of Equipment and Onsite Proprietary Testing of Plant No. 1 Waste Activated Sludge Treatment, Project No. SP-125-6, to include all applicable taxes. SUMMARY A proprietary process marketed by OpenCEL, LLC treats sludge prior to anaerobic digestion to increase its digestibility, resulting in cost savings from increased digester gas production and reduced amounts of residual biosolids. By action on July 28, 2010, the Board of Directors authorized a sole source installation and lease (with an option to purchase) of OpenCEL equipment for onsite testing, which is about to begin. The authorized lease payments and purchase price did not include sales tax that is payable on these amounts, and no project contingency funds were included in the authorization that could be used to pay the tax. Staff estimates a maximum sales tax liability of $112,000 (8% of the price), resulting in monthly lease payments of about $34,500 and a not-to-exceed purchase cost of$1,512,000. PRIOR COMMITTEE/BOARD ACTIONS July 2010 —Authorized a turn-key installation of OpenCEL equipment and all necessary auxiliary equipment and utilities for an amount not to exceed $300,000; Approved a sole source lease purchase of OpenCEL equipment for onsite proprietary testing for a maximum of 36 months at a cost of $32,000 per month, and a down payment of $250,000; and Authorized purchase of the OpenCEL equipment for a total amount not to exceed $1,400,000 upon successful testing. CEQA N/A Page 1 of 2 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 13, SP-125). Project contingency funds will not be used for this amendment. Date of ADDroval Contract Amount Contlnoencv 07/28/10 $1,700,000 0 JB:sa:gc Page 2 of 2 OPERATIONS COMMITTEE meeting Date TOBd.Of Dir. 03/06/13 03/2]/13 Item AGENDA REPORT N Number Item umber 4 Nu Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering CIP Project Manager: Hardat Khublall SUBJECT: DOVER DRIVE TRUNK SEWER RELIEF, CONTRACT NO. 5-63 GENERAL MANAGER'S RECOMMENDATION Approve a Reimbursement Agreement with the City of Newport Beach for street improvements along Dover Drive for the Dover Drive Trunk Sewer Relief, Contract No. 5-63, in an amount not to exceed $633,000, in a form approved by General Counsel. SUMMARY The Dover Drive Trunk Sewer Relief, Contract No. 5-63, provides for the increase in the hydraulic capacity of approximately 7,300 feet of existing sewer lines located along Dover Drive, between Irvine Avenue and Pacific Coast Highway, in the City of Newport Beach (City). Construction of this trunk sewer requires excavating trenches along Dover Drive and installing new 24-inch diameter sewer lines. As part of the City's permit conditions, the Orange County Sanitation District (Sanitation District) is required to grind and cap portions of the street pavement and rebuild another section of the street that will be damaged from its construction activities. Upon completion of the Sanitation District project, the City will begin its own construction project to repave Dover Drive. As such, the City has agreed to perform the Sanitation District pavement work required by the City permit. Performing the work in this manner will minimize impacts to the environment, the public, and surrounding communities. The cost of the street repairs related to the project has been established with the preparation of a detailed engineering estimate and agreed upon with the City in the amount of$633,000. The proposed reimbursement agreement provides for the reimbursement by the Sanitation District to the City in the amount of $633,000 for the City's construction of the Sanitation District's required pavement repairs to be done as part of a City roadway rehabilitation project following the completion of the Dover Drive Trunk Sewer Relief project. PRIOR COMMITTEE/BOARD ACTIONS None. Page 1 of 2 ADDITIONAL INFORMATION None. CEQA This project was included in the June 2007 Collections, Programmatic Environmental Impact Report, was certified on August 22, 2007 and a Notice of Determination was filed on August 23, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (FY2012-13 Section 8, Page 31) and the budget is sufficient for the recommended action. Date of ADDroval Contract Amount Contingency 03/27/13 $633,000 N/A ATTACHMENT The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: Reimbursement Agreement (8 Pages) NK:HK:dm:gc Page 2 of 2 Return to Agenda Report REIMBURSEMENT AGREEMENT BETWEEN THE ORANGE COUNTY SANITATION DISTRICT (OCSD) AND THE CITY OF NEWPORT BEACH (CITY) FOR THE DOVER DRIVE PAVEMENT RESTORATION IN THE CITY OF NEWPORT BEACH. OCSD Contract No. 5-63 THIS REIMBURSEMENT AGREEMENT ("Agreement"), is made and entered into on this day of , 2013,by and between the: ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District,hereinafter referred to as"OCSD"; AND CITY OF NEWPORT BEACH, a California Municipal Corporation,hereinafter referred to as "CITY." OCSD and CITY are sometimes hereinafter individually referred to as "Party" and hereinafter collectively referred to as "Parties." RECITALS WHEREAS, OCSD is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act, California Health and Safety Code section 4700, et seg., providing for the ownership, operation, and maintenance of wastewater collection, treatment, and disposal facilities within Orange County, California; and WHEREAS, CITY is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of the City; and WHEREAS, OCSD owns, operates and maintains a trunk sewer within the CITY located beneath Dover Drive (hereinafter, District's existing sewer line shall be referred to as the "Sewer," the location of which is depicted on Exhibit "A", attached hereto and incorporated in full by this reference), and OCSD is planning a project for the total replacement of its Sewer (hereinafter, "OCSD Sewer Improvement"); and WHEREAS, following completion of the OCSD Sewer Improvement, OCSD is responsible for the pavement restoration of the street overlying the Sewer including repaving(grind and cap); and WHEREAS, CITY is planning a project to improve the street overlying OCSD's Sewer following completion of the OCSD Sewer Improvement(hereinafter,"CITY Improvements"); and 909822.1 Return to Agenda Report WHEREAS, OCSD and CITY desire to perform OCSD pavement restoration and CITY Improvements in a manner that minimizes the impacts to the environment, the public and surrounding community; and WHEREAS,CITY has agreed to complete OCSD's obligation to restore the pavement as part of the CITY Improvements (hereinafter, the proposed CITY Improvements and pavement restoration following completion of the OCSD Sewer Improvements shall be referred to as the "Street Improvement"); WHEREAS,OCSD has agreed to reimburse CITY for OCSD's share of the Street Improvement costs in the manner and subject to the conditions set forth below. AGREEMENT NOW THEREFORE, in consideration of the mutual promises set forth herein, the Parties hereto agree as follows: Section 1: Recitals. The Recitals above are deemed true and correct, are hereby incorporated in this Section as though fully set forth herein, and each Party to this Agreement acknowledges and agrees that they are bound by the same. Section 2: Elements of Agreement. OCSD and CITY shall work cooperatively together so the Street Improvement can be constructed in a manner that minimizes the costs and impacts to the public. The specific terms and conditions governing the elements of this Agreement are set forth hereinafter. Section 3: CITY's Specific Obligations. ions. A. CITY shall be responsible for the design, construction, and on-going maintenance of the Street Improvement. B. CITY shall be responsible for compliance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code, Section 21000 et seq.) for all activities associated with the Street Improvement and CITY shall be the Lead Agency for purposes of CEQA and, in such capacity, shall conduct such environmental review (whether by Environmental Impact Report, Mitigated Negative Declaration, Negative Declaration, or Notice of Exemption) as CEQA may require. CITY shall supply to OCSD a copy of the CITY-approved environmental review document. C. CITY shall obtain all necessary permits for construction of the Street Improvement from federal, state and local authorities. D. The CITY shall include raising of all OCSD manhole covers within the Street Improvement project limits to finished grade at no additional expense to OCSD. 909822.1 Return to Agenda Report All work related to the raising of all OCSD manholes shall comply with OCSD's standards. E CITY shall issue a permit to OCSD and waive all related fees for the construction of OCSD's Sewer Improvement. Section 4: OCSD's Specific Obligations. A. OCSD shall be responsible for the construction and maintenance of OCSD Sewer Improvements, and, in addition, shall pave the street replacement pavement section with a "T" Trench section per City Standards over the Sewer following completion of the OCSD Sewer Improvements. B. OCSD shall reimburse CITY for the costs agreed to herein related to pavement restoration (grind and cap) Dover Drive between Mariners Drive and Westcliff Drive, and Southbound Dover Drive from Westcliff Drive to West Coast Highway. In addition, OCSD shall reimburse the City for half the cost of the structural reconstruction of Dover Drive from Irvine Avenue to Mariners Drive. OCSD shall not be responsible for an amount greater than the estimated cost of rehabilitating the street agreed upon herein, which amount is based on the cost OCSD would have had to expend if OCSD was solely responsible for such work had OCSD completed the pavement restoration and complied with the CITY's pavement requirements. The costs shall be calculated based on an engineer's cost estimate using current industry prices, and OCSD shall only be responsible for such reimbursement amounts as provided for in Section 5 herein. OCSD's share of the Street Improvement costs shall not include costs and services for the design and construction of CITY's Improvements. C. Aside from OCSD's obligation to reimburse CITY as provided herein, OCSD will not participate nor be involved in the CITY Improvement or the Street Improvement. D. OCSD shall provide field inspection at OCSD's cost for raising all OCSD's manhole covers to grade by CITY's contractor as part of Street Improvement. Section 5: Timing and Amount of Reimbursement. OCSD is obligated to reimburse the CITY hereunder a lump sum amount of Six Hundred and Thirty Three Thousand Dollars ($633,000.00), which represents 50% of the full depth asphalt reconstruction of Dover Drive from Irvine Avenue to Mariner's Drive, 100% of the asphalt overlay of Dover Drive from Mariner's Drive to Westcliff Drive and 50% of the asphalt overlay of South-bound Dover Drive from Westcliff Drive to Pacific Coast Highway. Reimbursement total includes a 10% administration fee. Monies shall be disbursed to the CITY via a lump sum amount, upon the start of construction of OCSD's Sewer Improvement project. CITY agrees that the amount stated herein is the full amount OCSD is required to pay for OCSD's share of the costs for the Street Improvement and any related costs, and CITY shall not be entitled to any more money from OCSD as reimbursement for the Street Improvement. 909822.1 Return to Agenda Report Section 6: Indemnification. A. CITY shall indemnify, defend and hold OCSD, its officers, agents, employees, and consultants harmless from any and all actions, suits, claims, liability or expense for death, injury, loss, or damage to persons or property which may arise or is claimed to have arisen during or out of construction of the CITY Improvements and/or Street Improvement, as a result of any work or action performed by or on behalf of CITY, its officers, agents, employees or consultants, save and except in those instances where such expense, liability or claim is solely caused by any act, omission, or negligence of OCSD, its officers, agents, employees or consultants. B. OCSD shall indemnify, defend and hold CITY, its elected and appointed officials, officers, agents, employees, and consultants, harmless from any and all actions, suits, claims, liability or expense for death, injury, loss or damage to persons or property which may arise or is claimed to have arisen as a result of any act performed by OCSD, its officers, agents, employees or consultants, with respect to the construction of the OCSD Sewer Improvements and Street Improvement, as a result of or in connection with the maintenance and operation of the OCSD Improvements, except in those instances where such expense, liability or claim is solely caused by any act, omission or negligence of CITY, its officers, agents, employees or consultants. Section 7: Term. This Agreement shall commence on the above written date, and be in full force and effect until the specified obligations of both Parties have been fulfilled or the Agreement is terminated as set forth herein. Section 8: Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be personally delivered or sent by registered or certified mail, postage prepaid, return receipt requested, delivered or sent by electronic transmission, and shall be deemed received upon the earlier of: (i)the date of delivery to the address of the person to receive such notice if delivered personally or by messenger or overnight courier; (ii) three (3) business days after the date of posting by the United States Post Office if by mail; or(iii) when sent if given by electronic transmission. Any notice, request, demand, direction, or other communication sent by electronic transmission must be confirmed within forty-eight (48) hours by letter mailed or delivered. Notices or other communications shall be addressed as follows: To OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Clerk of the Board Facsimile: (714) 962-5018 To CITY: City of Newport Beach 3300 Newport Boulevard Newport Beach,CA 92663 909822.1 Return to Agenda Report Attention: Michael J. Sinacori,P.E. Facsimile: (949) 644-3020 Section 9: Jurisdiction. In the event of a dispute regarding performance or interpretation of this Agreement, the venue for any action to enforce or interpret this Agreement shall lie in the Superior Court of California for Orange County. Section 10: No Third Party Beneficiaries. This Agreement is entered into by and for the OCSD and the CITY, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. Section 11: Force Maieure. Except for the payment of money,neither Party shall be liable for any delays or other non-performance resulting from circumstances or causes beyond its reasonable control, including without limitation, fire or other casualty, Act of God, strike or labor dispute, war or other violence, acts of third parties, or any law, order, or requirement of any governmental agency or authority. Section 12: Governing Law. This Agreement shall be governed by the laws of the State of California. Section 13: Entire Agreement. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations and agreements between the Parties pertaining to the subject matter hereof. Section 14: Waiver. A waiver of a breach of the covenants, conditions, or obligations under this Agreement by either Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, conditions, or obligations of this Agreement Section 15: Modification. Alteration, change, or modification of this Agreement shall be in the form of a written amendment,which shall be signed by both Parties. Section 16: Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect Section 17, Agreement Execution and Authorization. Each of the undersigned represents and warrants that they are duly authorized to execute and deliver this Agreement and that such execution is binding upon the entity on whose behalf they are executing this Agreement. This Agreement may be executed in counterparts. Section 18: Amendments. This Agreement may be modified or amended only by a written document executed by the CITY and OCSD and approved as to form by each party's respective Attorney. Section 19: Attorneys Fee. In the event of any dispute or legal action arising under this Agreement, the prevailing party shall not be entitled to attorneys' fees. 909822.1 Return to Agenda Report [SIGNATURES ON FOLLOWING PAGE] 909822.1 Return to Agenda Report IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District By Troy Edgar, Chair of the Board of Directors ATTEST: By Maria Ayala, Clerk of the Board of Directors APPROVED AS TO FORM: GENERAL COUNSEL By Bradley R. Hogin, CITY OF NEWPORT BEACH, a California Municipal Corporation By Keith D. Curry,Mayor ATTEST: By Leilani I. Brown,City Clerk APPROVED AS TO FORM By Aaron Harp, City Attorney 909822.1 Return to Agenda Report JU P P P ST T <2 N TS F�`' OR III> MA �F ;00 SJ. 4i op OCSD _ SEWER LOWER OR NEWPORT BAY// CLIFF PACIFIC COAST HWY _ 1 cygNNFz DOVER DRIVE TRUNK SEWER RELIEF CONTRACT No. 5-63 EXHIBIT "A" ADMINISTRATION COMMITTEE Meeting Date T1.1 III,. 03/13/13 3/27/13 Item AGENDA REPORT N Number Item umber 2 Nu Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Maria Ayala SUBJECT: CONFLICT OF INTEREST CODE GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 13-06, adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted. SUMMARY See attached General Counsel's memorandum dated March 5, 2013. PRIOR COMMITTEE/BOARD ACTIONS May 25, 2011 — Board amended the Conflict of Interest Code ADDITIONAL INFORMATION None CEQA N/A BUDGET/DELEGATION OF AUTHORITY LEVEL N/A 902861.1 ATTACHMENTS The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • General Counsel's Memorandum, March 5, 2013 (3 Pages) • Proposed Resolution No. OCSD 13-06 (2 Pages) • Conflict of Interest Code (6 pages) %2861.1 WOODRUFF SPRADUN&SMART Return to Agenda Report 555 ANION BOULEVARD' SUITE 1200 COSTA MESA, CA 92626.7670 (I14)551.7000 MEMORANDUM TO: Chair and Members of the Board of Directors Orange County Sanitation District FROM: Bradley R. Hogin,Esq. DATE: March 5,2013 RE: Resolution Adopting the District's 2013 Conflict of Interest Code Summary The Political Reform Act requires that every local agency review its Conflict of Interest Code biennially. General Counsel recommends that the Board adopt the 2013 Conflict of Interest Code to reflect the following changes: • Addition and deletion of several positions, including the addition of positions on the Orange County Sanitation District Financing Corporation; • Changes to names under Designated Positions; • Addition and deletion of disclosure classifications; • Reorganization of Designated Positions by disclosure categories; and • Modification to disclosure requirements for certain positions to tailor disclosure categories to the type of economic interests that will foreseeably be materially affected by a designated employee's decision making. Discussion The Resolution adopting the District's 2013 Conflict of Interest Code revises the District's list of designated employees that are required to file statements of economic interests. The Resolution also revises the disclosure requirements to ensure disclosure of economic interests are narrowly tailored to the type of economic interests which may foreseeably be materially affected by decisions made by the designated employees. In addition, the changes include the addition of positions on the Orange County Sanitation District Financing Corporation, for positions involved in the making or participation in the making of decisions which may foreseeably have a material effect on any financial interest. 902866.1 Orange County Sanitation District Return to Agenda Report March 5,2013 Page 2 Government Code section 87300 requires every public agency to adopt and promulgate a conflict of interest code covering all positions within the District(other than statutory filers) who make or participate in making decisions which may foreseeably have a material effect on any financial interest. Government Code Section 87309 provides: "No Conflict of Interest Code or amendment shall be approved by the code reviewing body or upheld by a court if it: (a) Fails to provide reasonable assurance that all foreseeable potential conflict of interest situations will be disclosed or prevented; (b) Fails to provide to each affected person a clear and specific statement of his duties under the Code;or (c) Fails to adequately differentiate between designated employees with different powers and responsibilities." Once a local agency has adopted a conflict of interest code, local agencies are required under Government Code section 87306.5 to review their codes, and if a change to the code is necessitated by changed circumstances,the local agency must submit an amended code. In 2011 and 2012, when the California Fair Political Practices Commission (FPPC) was considering changes to its gift regulations, the FPPC's General Counsel issued several memorandums opining that "conflict of interest code disclosure categories must be narrowly tailored to the type of economic interests that will foreseeably be affected by a designated employee's decisionmaking." (May 7, 2012, Memorandum from Zackery P. Morazzini, General Counsel.) The FPPC's General Counsel also indicated that "requiring over-disclosure is a frequent problem in agency conflict of interest codes." (Id.) The FPPC's General Counsel noted "[c]ase law going back to before the Act was adopted makes it clear that financial disclosure laws must meet certain constitutional standards,and overbreath must be avoided." Two California Supreme Court cases provide guidance concerning financial disclosure laws. In City of Carmel-by-the Sea v. Young, (1970) 2 Cal.3d 259 [Carmel], the Court found a financial disclosure law that required officials and candidates to disclose the nature and extent of investments in excess of $10,000, as well as those of his or her spouse and minor children, undertook an overbroad intrusion in the right of privacy and thereby impermissibly restricted the right to seek or hold public office or employment. Four years later,the Supreme Court in County of Nevada v. MacMillen, (1974) 11 Cal.3d 662, found a different financial disclosure law had been "specially tailored to meet and satisfy the primary concerns of the Carmel ruling." Specifically,the Court explained: "No effort is made to relate the disclosure to financial dealings or asses which might be expected to give rise to a conflict of interest; that is, to those having some rational connection with or bearing upon, or which might be affected by the functions or jurisdiction of any particular agency, whether statewide or local, or on the functions or jurisdiction of any particular public officer or employee." (Id at p. 671.) 90 964A Orange County Sanitation District Return to Agenda Report March 5,2013 Page 3 With guidance from these Memorandums issued by FPPC's General Counsel, it is recommended that the proposed changes to the conflict of interest codes be adopted. These changes are necessary to ensure that disclosure requirements for certain positions are narrowly tailored to the type of economic interests that will foresceably be materially affected by a designated employee's decision making. Additional changes are also proposed that update certain positions that have been added,deleted,or renamed. Recommendation General Counsel recommends that the Board adopt the 2013 Conflict of Interest Code to reflect the changes described herein. Upon adoption, the Code will be submitted to the County Board of Supervisors as the Code-reviewing body. ey It. Hogin General Counsel 9a386/.t Return to Agenda Report RESOLUTION NO. OCSD 13-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A CONFLICT OF INTEREST CODE WHICH SUPERSEDES ALL PRIOR CONFLICT OF INTEREST CODES AND AMENDMENTS PREVIOUSLY ADOPTED WHEREAS, the Political Reform Act of 1974, Government Code Section 81000 at. seq. ('the Act'), requires a local government agency to adopt a Conflict of Interest Code pursuant to the Act; and WHEREAS, the Orange County Sanitation District ("District') has previously adopted a Conflict of Interest Code and that Code now requires updating; and WHEREAS, amendments to the Act have in the past and foreseeably will in the future require conforming amendments to be made to the Conflict of Interest Code; and WHEREAS, the Fair Political Practices Commission has adopted a regulation, 2 California Code of Regulations, Section 18730, which contains terms for a standard model Conflict of Interest Code, which, together with amendments thereto, may be adopted by public agencies and incorporated by reference to save public agencies time and money by minimizing the actions required of such agencies to keep their codes in conformity with the Political Reform Act. NOW THEREFORE, BE IT RESOLVED: Section 1. The terms of 2 California Code of Regulations, Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference and, together with the 2013 Conflict of Interest Code for the Orange County Sanitation District, including Exhibits A and B in which Page 1 of 2 913801.1 Return to Agenda Report members and employees are designated and disclosure categories are set forth, constitute the Conflict of Interest Code of the Orange County Sanitation District. Section 2. The provisions of all Conflict of Interest Codes and Amendments thereto previously adopted by the Orange County Sanitation District are hereby superseded. Section 3. The Filing Officer is hereby authorized to forward a copy of this Resolution to the Clerk of the Orange County Board of Supervisors for review and approval by the Orange County Board of Supervisors as required by California Government Code Section 87303. PASSED AND ADOPTED at a regular meeting held March 27, 2013. Troy Edgar, Chair, Orange County Sanitation District ATTEST: Maria Ayala, Clerk of the Board Page 2 of 2 913801.1 Return to Agenda Report 2013 CONFLICT OF INTEREST CODE FOR THE ORANGE COUNTY SANITATION DISTRICT The Political Reform Act, Government Code Sections 81000, et seq., requires state and local government agencies to adopt and promulgate Conflict of Interest Codes. The Fair Political Practices Commission has adopted a regulation (2 Cal. Code of Regs. Section 18730)which contains the terms of a standard Conflict of Interest Code, which may be incorporated by reference in an agency's code. After public notice and hearing, it may be amended by the Fair Political Practices Commission to conform to amendments in the Political Reform Act. Therefore, the terms of 2 California Code of Regulations Section 18730, any amendments to it duly adopted by the Fair Political Practices Commission, and all additional guidance by the Fair Political Practices Commission, are hereby incorporated by reference. This regulation and the attached Appendix designating officials and employees and establishing disclosure categories, shall constitute the Conflict of Interest Code of the Orange County Sanitation District. Designated employees shall file statements of economic interests with the District's Clerk of the Board who will make the statements available for public inspection and reproduction (Government Code Section 87500). Upon receipt of the statements of the Orange County Sanitation District Board of Directors, Orange County Sanitation District Financing Corporation, General Manager, General Counsel, Assistant General Manager, Director of Engineering, Director of Finance & Administrative Services, Director of Operations and Maintenance, Director of Facility Support Services, Director of Human Resources, and the Clerk of the Board, the Filing Officer shall make and retain a copy and forward Page 1 of 6 913806.1 Return to Agenda Report the original of these statements to the Clerk of the Orange County Board of Supervisors. Statements for all other designated employees will be retained by the Filing Officer. Page 2 of 6 913806.1 Return to Agenda Report EXHIBIT A ORANGE COUNTY SANITATION DISTRICT LIST OF DESIGNATED POSITIONS CONFLICT OF INTEREST CODE Disclosure Designated Positions Categories General Manager OC-01 Orange County Sanitation District Financing Corporation Board of OC-01 Directors General Counsel OC-01 Assistant General Manager OC-01 Director of Engineering OC-41 Director of Facility Support Services OC-41 Director of Finance &Administrative Services OC-41 Director of Human Resources new OC41 Director of Operations and Maintenance OC-41 Principal Accountant OC-41 Capital Improvement Program Project Management Supervisor OC41 Capital Improvement Program Project Manager OC41 Treasurer of the Orange County Financing Corporation OC41 Secretary of the Orange County Financing Corporation OC-05 Clerk of the Board OC-05 Controller OC-05 Engineering Manager OC-05 Environmental Compliance & Regulatory Affairs Manager OC-05 Facilities Manager OC-05 Public Affairs Manager OC-05 Environmental Laboratory & Ocean Monitoring Manager OC-05 Maintenance Manager OC-05 Operations Manager OC-05 Accounting Supervisor OC-05 Chief Plant Operator OC-05 Construction Inspection Supervisor OC-05 Senior Construction Inspection Supervisor OC-05 Engineering Supervisor OC-05 Maintenance Supervisor OC-05 Materials Control Supervisor OC-05 Operations Supervisor OC-05 Purchasing Supervisor OC-05 Contracts Supervisor OC-05 Safet & Health Supervisor OC-OS Bu er OC-05 Page 3 of 6 913806.1 Return to Agenda Report Senior Buyer OC-05 Contracts Administrator OC-05 Senior Contracts Administrator OC-05 Principal Contracts Administrator OC-05 Senior Engineer OC-05 Contracts and Purchasing Manager OC-05 Information Technology Manager OC-08 Information Technology Systems & Operations Manager OC-08 Information Technology Supervisor new OC-08 Construction Inspector OC-10 Senior Construction Inspector OC-10 Human Resources Supervisor OC-11 Risk Manager OC-12 Principal Financial Analyst OC-12 Laboratory Supervisor OC-21 Senior Scientist OC-21 Environmental Supervisor OC-29 Consultant OC-30 Page 4 of 6 913806.1 Return to Agenda Report EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Category Disclosure Description OC-01 All interests in real property in Orange County or the District, as well as investments, business positions and sources of income (including gifts, loans and travel payments). OC-05 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide services, supplies, materials, machinery, equipment (including training and consulting services) used by the department or District, as applicable. OC-08 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that develop or provide computer hardware/software, voice data communications, or data processing goods, supplies, equipment, or services (including training and consulting services) used by the department or District, as applicable. OC-10 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that are engaged in any real estate activity including, but not limited to real estate appraisal, development, construction, planning/architectural design, engineering, sales, brokerage, leasing, lending, insurance, rights of way, and/or studies; and/or property or facilities management/maintenance/custodial and utility services as used by the department or provides capital for the purchase of property used or sold by Orange County or the District. OC-11 All interests in real property in Orange County or located entirely or partly within District boundaries, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that are engaged in the supply of equipment related to (i) recruitment, employment search & marketing, classification, training, or negotiation withpersonnel; ii employee benefits; and iii health and welfare benefits. OC-12 All interests in real property in Orange County, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that invest funds or engage in the business of insurance including, but not limited to insurance companies, carriers, holding companies, underwriters, brokers, solicitors, agents, adjusters, claims mangers and actuaries; from financial institutions including but not limited to, banks, savings & loan associations and credit unions or sources that have filed a claim, or have a claim pending, against Orange County. Page 5 of 6 913806.1 Return to Agenda Report EXHIBIT B ORANGE COUNTY SANITATION DISTRICT DISCLOSURE CATEGORIES CONFLICT OF INTEREST CODE Disclosure Cate go Disclosure Description OC-21 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide laboratory or chemical — related goods, supplies, equipment, or services (including trainin and consulting services) . OC-29 All investments in, business positions with and income (including gifts, loans and travel payments)from sources that are subject to inspection or regulation by the department. OC-30 Consultants shall be included in the list of designated employees and shall disclose pursuant to the broadest category in the code subject to the following limitation: The Department Head/Director/General Manager/Superintendant/etc. may determine that a particular consultant, although a "designated position," is hired to perform a range of duties that is limited in scope and thus is not required to fully comply with the disclosure requirements in this section. Such written determination shall include a description of the consultant's duties and, based upon that description, a statement of the extent of disclosure required. The determination of disclosure is a public record and shall be filed with the Form 700 and retained by the Filing Officer for public inspection. OC41 All interests in real property in Orange County or the District, as applicable, as well as investments in, business positions with and income (including gifts, loans and travel payments)from sources that provide services, supplies, materials, machinery, vehicles, or equipment (including training and consulting services) used by the department or District, as applicable. Page 6 of 6 913806.1