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HomeMy WebLinkAbout05-22-2019 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, May 22, 2019 Regular Meeting of the s, 6:00 P.M. BOARD OF DIRECTORS Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER (Board Chairman David Shawver) INVOCATION AND PLEDGE OF ALLEGIANCE (Lucille Kring, City of Anaheim) ROLL CALL (Clerk of the Board) DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: None. REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. ELECTIONS: 1. NOMINATIONS FOR CHAIRPERSON AND VICE CHAIRPERSON OF THE BOARD OF DIRECTORS (Clerk of the Board) A. Open nominations for Chairperson of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). B. Open nominations for Vice Chairperson of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). 05/22/2019 OCSD goad of Directors'Agenda Page 1 of 8 CONSENT CALENDAR: Consent Calendar Items are considered to be routine and willbe 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board of Directors held on April 24, 2019. 3. SALE OF DOIG DRIVE PROPERTY (Lorenzo Tyner) A. Receive and file the amended Purchase and Sale Agreement/escrow instructions with the sale price of$6,672,000; and B. Receive and file the closing documents from the sale of the Orange County Sanitation District's previously owned property at 7311 Doig Drive, Garden Grove, CA. RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 4. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: A. Steering Committee Meeting of March 27, 2019 B. Operations Committee Meeting of April 3 2019 C. La PA Committee Meeting of April 6, 2019 D. Administration Committee Meeting of April 10, 2019 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF APRIL 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of April 2019. OPERATIONS COMMITTEE: 6. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 (Kathy Millea) RECOMMENDATION: Approve a Cost Sharing Agreement between the Orange County Sanitation District and the City of Anaheim for traffic signal construction in conjunction with the Orange-Western Sub-Trunk Rehabilitation, Contract No. 3-64A, for an amount not to exceed $220,000. 05/22/2019 OCSD goad of Directors'Agenda Page 2 of 8 7. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Kathy Millea) RECOMMENDATION: Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2019. 8. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION, PROJECT NO. MP-105 (Kathy Millea) RECOMMENDATION: Approve renegotiated Purchase Order terms and conditions with Dresser-Rand for the assessment and standard overhaul of Plant No. 2 Central Generation Steam Turbine Rehabilitation, Project No. MP-105. 9. FERRIC CHLORIDE PURCHASE (Rob Thompson) RECOMMENDATION: A. Approve a Purchase Order Agreement with Pencco, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-103713D, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of $597 per dry ton delivered, for an estimated annual amount of $1,791,000 (plus applicable sales tax)with four (4) one-year renewal options. B. Approve a Purchase Order Agreement with Kemira Water Solutions, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-103713D, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of $630 per dry ton delivered, for an estimated annual amount of $3,150,000 (plus applicable sales tax)with four (4) one-year renewal options; and C. Approve a unit price contingency of 10% per agreement. 10. REGIONAL ODOR AND CORROSION CONTROL SERVICES (ROCCS) PROGRAM, SPECIFICATION NO. C-2017-899BD—CONTINGENCY INCREASE (Rob Thompson) RECOMMENDATION: Approve a unit price contingency increase of $116.39/dry ton (11.91%) to the Ferrous Chloride Chemical Agreement with Hill Brothers Chemical Company for the Regional Odor and Corrosion Control Services Program, Specification No. C-2017-899BD, for the period beginning July 1, 2019 through June 30, 2020, for a new total contingency amount not to exceed $136.93/dry ton (26.91%); an estimated total amount of$2,583,000. ADMINISTRATION COMMITTEE: 11. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) 05/2212019 OCSD Boad of Directors'Agenda Page 3 of 8 RECOMMENDATION: A. Approve an Annual Purchase Order Contract with Dataskill, Inc. for the renewal of software licensing and maintenance for IBM Maximo and WebSphere, for an amount not to exceed $173,774, for the period beginning July 1, 2019 through June 30, 2020, with four(4) one-year renewal options; and B. Approve a contingency of$26,066 (15%). 12. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) RECOMMENDATION: A. Receive and file Orange County Sanitation District purchases made under the General Managers authority for the period of January 1, 2019 to March 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of January 1, 2019 to March 31, 2019: • DME - Expansion Joints • DRAKE CONTROLS - On-site Training for Woodward Governor Controls • ENVIRONMENTAL RESOURCES ASSOCIATES (ERA) - Quality Control Standards • ORANGE COUNTY SHERIFF'S DEPARTMENT - Law Enforcement and Security Services • OVIVO - Trickling Filter Clarifier Assessment and Repairs • SOT NORTH AMERICAN - On-site Training for Ultrasound Detectors • TPC TRAINING - On-site Electricity Training 13. CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 14. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) 05/22/2019 OCSD goad of Directors'Agenda Page 4 of 8 RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of April 2019. 15. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) RECOMMENDATION: Receive and file the Public Affairs Update for the month of April 2019. STEERING COMMITTEE: 16. PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET, 18429 PACIFIC STREET, 1 8368-1 837 5 AND 1 841 0-1 843 6 BANDILIER CIRCLE, FOUNTAIN VALLEY (Lorenzo Tyner) RECOMMENDATION: Approve Amendment No. 3 with The Muller Company for Property Management Services, to extend the services for twelve-months from September 1, 2019 through August 31, 2020 with all terms and provisions of the Agreement remaining unmodified and in full force and effect. NON-CONSENT: 17. SECOND READING OF PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-53 (Lorenzo Tyner) RECOMMENDATION: A. That proposed Ordinance No. OGSD-53 be read by title only, and that reading of said Ordinance in its entirety be, and is hereby, waived; B. Adopt Ordinance No. OCSD-53 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD48", and C. Direct the Clerk of the Board to publish a summary of the Ordinance as required by law. 18. SECOND READING OF PROPOSED ORDINANCE NO. OCSD-54 AMENDING SECTION 2.06 OF ARTICLE II, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSDSO CONCERNING CAPITAL FACILITY CAPACITY CHARGES (Lorenzo Tyner) RECOMMENDATION: A. That proposed Ordinance No. OCSD-53 be read by title only, and that reading of said Ordinance in its entirety be, and is hereby, waived; 05/22/2019 OCSD goad of Directors'Agenda Page 5 of 8 B. Adopt Ordinance No. OCSD-54 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Section 2.06 of Article II, Table A, Table B, and Table C of Ordinance No. OCSD-50 Concerning Capital Facilities Capacity Charges'; and C. Direct the Clerk of the Board to publish a summary of the Ordinance as required by law. INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense, per Government Code§53232.3(d). CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Laura Kalty, Liebert Cassidy Whitmore; James Herberg; Lorenzo Tyner; and Celia Chandler. Employee Organizations: 3 International Union of Operating Engineers, Local 501; Orange County Employees Association; and the Supervisors and Professionals Group. (2) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 1 05/22/2019 OCSD Bead of Directors'Agenda Page 6 of 8 Klean Waters, Inc. at al. v. Orange County Sanitation District, at al., United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. (3) CONFERENCE WITH REAL PROPERTY NEGOTIATORS (Government Code Section 54956.8) Properties and Negotiating Parties: De La Rosa Maintenance. 18368 Bandilier Cir. Contractors, Inc Fountain Valley, CA APN No. 156-163-11 Gigamem, LLC 18375 Bandilier Cir. Fountain Valley, CA APN No. 156-163-11 Thuan Nguyen 18381 Bandilier Cir. Fountain Valley, CA APN No. 156-163-11 Uber Chic Home, LLC 18384 Bandilier Cir. Fountain Valley, CA APN No. 156-163-11 Deborah Muccillo 18436 Bandilier Cir. dba Interiors Within Reach Fountain Valley, CA APN No. 156-163-10 Leadingware Group, Inc. 18430 Bandilier Cir. Fountain Valley, CA APN No. 156-163-10 Car Prep Inc. 18429 Pacific Street Fountain Valley, CA APN No. 156-163-09 Agency negotiators: James Herberg, Rob Thompson, Lorenzo Tyner Under negotiation: Price and terms of lease renegotiations 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: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Board of Directors on June 26, 2019 at 6:00 p.m. in memory of former Principal Contracts Administrator, Gary Prater. 05/22/2019 OCSD Boad of Directors'Agenda Page 7 of 8 Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Aaenda Postina: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue,Fountain Valley,California,and on the Sanitation District's websile at www.ocsd.com not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted in writing to the Clerk of the Board 14 days before the meeting. Kelly A.Lore,MMC Clerk of the Board (714)593-7433 klore(a)ocsd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherberatalocsd.com. Assistant General Manager Lorenzo Tyner (714)593-7550 INnentlocsd.com Assistant General Manager Rob Thompson (714)593-7310 rthomosonOZocsd.com Director of Human Resources Celia Chandler (714)593-7202 cchsndlerCdocsd.com Director of Engineering Kathy Millea (714)593-7365 kmilleafdocsd.com Director of Environmental Services Lan Wibo 714 593-7450 Iwiborq0DocscI.com 05/22/2019 OCSD Board of Directors'Agenda Page 8 of 8 BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. -- 05/22/19 AGENDA REPORT Item Item Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kelly A. Lore, Clerk of the Board SUBJECT: NOMINATIONS FOR CHAIRPERSON AND VICE CHAIRPERSON OF THE BOARD OF DIRECTORS GENERAL MANAGER'S RECOMMENDATION A. Open nominations for Chairperson of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). B. Open nominations for Vice Chairperson of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). BACKGROUND As provided in the Board's Rules of Procedures, nominations for the Chairperson and Vice Chairperson are made at the regular May meeting, and the election will take place at the June meeting. The following is an excerpt from the current Rules of Procedures relative to the election of the Chairperson and Vice Chairperson for the Board of Directors of Orange County Sanitation District: "G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice Chairperson of the Board shall be elected by a majority vote of Directors at the regular meeting in June of each year, and will assume office July 1st. The nominations for Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of each year. Any person nominated for Chairperson shall be deemed to be nominated for Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, the nominees shall prepare a statement setting forth their qualifications for the office sought. The statements should be forwarded to the Clerk of the Board who will in turn mail to the members of the Board of Directors with the Agenda and other meeting material for the June regular meeting. If only one individual is nominated for Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Chairperson, no election shall be held in June, and the individual shall assume office July 1st. If only one individual is nominated for Vice Chairperson at the regular Board meeting in May, that individual shall be deemed elected as Vice Chairperson, no election shall be held in June, and the individual shall assume office July 1s'. The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of the Directors. In the event the office of Chairperson becomes vacant due to resignation or retirement of the incumbent prior to the expiration of the regular term, the Vice Page 1 d 2 Chairperson shall automatically succeed to the office of the Chairperson and shall continue to serve through the remainder of the regular term unless sooner removed by action of a majority of the Directors. In the event the office of Vice Chairperson becomes vacant prior to the expiration of the regular term, nominations and the election of a Director to serve in that capacity shall be conducted at the next regular Board meeting. The person so elected shall serve the balance of the regularly-scheduled term unless sooner removed as a result of action by a majority of the Directors. The Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Chairperson. The Vice Chairperson shall not serve more than two consecutive one-year terms for which he/she has been elected to the office of Vice Chairperson." RELEVANT STANDARDS • Resolution No. OCSD 18-12; Rules of Procedure for the Conduct of Business of the District • Comply with transparency and communication requirements, including the Brown Act ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: N/A Page 2 of 2 ITEM NO. 2 Orange County Sanitation District MINUTES BOARD MEETING April 24, 2019 O NS AHI Tgr�Oy � 9 O y 9°r t� p •A�2~ �cr�N H ENV`�p� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 04/24/2019 Minutes of Board Meeting Page 1 of 9 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Board Chairman David Shawver on April 24, 2019 at 6:03 p.m. in the Administration Building. Director Doug Chaffee delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X David Shawver, Chair Carol Warren A Brad Avery Joy Brenner Allan Bernstein X Chuck Puckett X Doug Chaffee Michelle Steel X Robert Collacott Chad Zimmerman X James M. Ferryman Bob Ooten X Phil Hawkins Brooke Jones Steven Jones X John O'Neill X Peter Kim Marshall Goodman X Lucille Kring Denise Barnes X Sandra Massa-Lavitt Schelly Sustarsic X Mark Murphy Kim Nichols X Richard Murphy Dean Grose Steve Nagel X Patrick Harper X Andrew Nguyen Al Krippner X Glenn Parker Steven Vargas X Erik Peterson Mike Posey A Tim Shaw Tom Beamish X Christina Shea Anthony Kuo A Jesus J. Silva Jan Flory X Fred Smith Sunny Park X Chad Wanke Ward Smith A John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry VACANT X Cecilia Iglesias STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Mike Dorman, Engineering Manager; Kelly Lore, Clerk of the Board; Bob Bell; Jennifer Cabral; Rod Collins; Damein Frabizio; Al Garcia; Mark Kawamoto; Tina Knapp; Riaz Moinuddin; Tyler Ramirez;Wally Ritchie; Paul Spassoff; and Roya Sohanaki. OTHERS PRESENT: Brad Hogin (General Counsel); Rich ten Bosch, Black and Veatch; and Austin Mejia, Supervisor Chaffee's office. 04/24/2019 Minutes of Boats Meeting Page 2 of 9 PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: Assistant General Manager Lorenzo Tyner presented 25-year employee service awards to Mark Kawamoto, Engineering Supervisor— Division 620; and Paul M. Spassoff, Office Assistant— Division 620. REPORTS Board Chairman Shawver reminded everyone that the Operations and Administration Committee meetings will be held at Plant No. 2 in Huntington Beach in May; with both meetings to begin at 4:00 p.m. with a Tour of Plant No. 2. Alternate Directors were encouraged to attend as well. Chair Shawver also reminded the Directors and Alternate Directors of the mandated AB 1661 sexual harassment prevention training which OCSD will host on May 9 and May 15 at 2:00 p.m. Chair Shawver updated the Board on the recent OCSD/SAWPA Joint Policy Committee Meeting; and the Sacramento Advocacy day where he described visits to: State Water Resources Control Board regarding current legislation and possible new regulations; Offices of Senator Hertzberg regarding: his water recycling bill; Offices of Assemblymember Cooley regarding video storage; and Offices of Assemblymember Bloom regarding microfibers. General Manager Herberg provided information regarding OCSD's participation in an Infrastructure Roundtable organized by Congressman Harley Rouda's office today. Vice-Chair Withers represented OCSD as a participant on the panel and invited the Congressman to tour our facility. Mr. Herberg indicated that OCSD had won the Superior Achievement Award for Odor Control Program and the Facilities Master Plan received an Honor Award from the American Academy of Environmental Engineers and that Director of Engineering, Kathy Millea was in Washington DC accepting the awards on behalf of the Sanitation District. Mr. Herberg announced two save the dates: Honor Walk May 22nd at 4:00 p.m. and the 65th Anniversary Open House & Centrifuge Ribbon Cutting VIP event on July 27th at 9:00 a.m. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on March 27, 2019. 04/24/2019 Minutes of Boats Meeting Page 3 of 9 AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver, Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. Steering Committee Meeting of February 27, 2019 B. Operations Committee Meeting of March 6, 2019 C. La PA Committee Meeting of March 11, 2019 D. Administration Committee Meeting of March 13, 2019 E. Steering Committee Special Meeting of March 18, 2019 F. GWRS Steering Committee Meeting of January 14, 2019 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF MARCH 2O19 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of March 2019. OPERATIONS COMMITTEE: 4. PLANT NOS. 1 AND 2 CENTRAL GENERATION ENGINE OVERHAULS (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Authorize the General Manager to commence negotiations with identified firms for the overhaul of two central generation engines located at Plant No. 1 and Plant No. 2 Central Generation Facilities. AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver; Shea; F. Smith; Wanke; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers 04/24/2019 Minutes of Boats Meeting Page 4 of 9 5. 65-75 TON A/T CRANE REPLACEMENT (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Purchase Order to Western Pacific Crane & Equipment for the purchase of a 704on rough terrain crane using Sourcewell (formerly National Joint Powers Alliance) Cooperative Contract #032515-GUS, for a total amount not to exceed $679,413; and B. Approve a contingency of $33,971 (5%) to accommodate for fluctuations in pricing/freight costs. AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver; Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers 6. SITE ACCESS AND LICENSE AGREEMENT— 2899 MENDOZA DRIVE, COSTA MESA (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a Site Access and License agreement with Costa Mesa Sanitary District(CMSD)and the City of Costa Mesa, to allow mobilization of an odor control chemical dosing station and injection of chemicals into the Baker-Main Interceptor at 2899 Mendoza Drive in the city of Costa Mesa, in a form approved by General Counsel. AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver; Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers ADMINISTRATION COMMITTEE: Committee Chair Wanke stated that two Ordinances were approved for introduction at the Administration Committee but have been moved to Non-Consent. 04/24/2019 Minutes of Boats Meeting Page 5 of 9 LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 7. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O19 (Rebecca Long) Received and filed the Legislative Affairs Update for the month of March 2019. 8. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O19 (Jennifer Cabral) Received and filed the Public Affairs Update for the month of March 2019. STEERING COMMITTEE: 9. NEWHOPE-PLACENTIA TRUNK REPLACEMENT, PROJECT NO. 2-72 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: A. Adopt Resolution No. OCSD 19-03 entitled, "A Resolution of the Board of Directors of Orange Sanitation District Amending the Proposition 84 Integrated Regional Water Management Program 2015 Implementation Grant Funding Contract for Newhope-Placentia Trunk Sewer Replacement Project 2-72, and Repealing Resolution No. OCSD 16-20"; and B. Approve Amendment No. 1 to the Contract between the Orange County Sanitation District and the Santa Ana Watershed Project Authority(SAWPA) to allow the Newhope-Placentia Trunk Replacement, Project No. 2-72, to receive Proposition 84 related grant funds up to $1,000,000. AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver; Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers NON-CONSENT: 10. PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-53 (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner introduced the Ordinance and provided an overview of the changes included. 04/24/2019 Minutes of Boats Meeting Page 6 of 9 MOVED. SECONDED, AND DULY CARRIED TO: A. Introduce Ordinance No. OCSD-53, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD48" for first reading at the April 24, 2019 Board meeting; B. Motion to read Ordinance No. OCSD-53 by title only and waive reading of said entire Ordinance on April 24, 2019; C. Set May 22, 2019, as the date for the second reading and adoption of Ordinance No. OCSD-53; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. The Clerk of the Board read the Ordinance title and recorded the following roll call vote: AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver; Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers 11. PROPOSED ORDINANCE NO. OCSD-54 AMENDING SECTION 2.06 OF ARTICLE II, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSD-50 CONCERNING CAPITAL FACILITY CAPACITY CHARGES (Lorenzo Tyner) Mr. Tyner introduced the Ordinance and provided an overview of the changes included. MOVED. SECONDED, AND DULY CARRIED TO: A. Introduce Ordinance No. OCSD-54 entitled: "An Ordinance of the Board of Directors of Orange County Sanitation Amending Section 2.06 of Article II Table A, Table B, and Table C of Ordinance No. OCSD-50 Concerning Capital Facility Capacity Charges"; B. Motion to read Ordinance No. OCSD-54 by title only and waive reading of said entire ordinance on April 24, 2019; C. Set May 22, 2019, as the date for the second reading and adoption of the Ordinance No. OCSD-54; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. The Clerk of the Board read the Ordinance title and recorded the following roll call vote: 04/24/2019 Minutes of Boats Meeting Page 7 of 9 AYES: Chaffee; Collacott; Ferryman; Harper (Alternate); Hawkins; Iglesias (Alternate); Kim; Kring; Massa-Lavitt; M. Murphy; R. Murphy; Nguyen; O'Neill (Alternate); Parker; Peterson; Puckett (Alternate); Shawver, Shea; F. Smith; Wanks; and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Shaw; Silva; and Withers INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense, per Government Code§53232.3(d). Director Ferryman provided information regarding the recent OCCOG General Assembly meeting and commended Assistant General Manager Rob Thompson on his presentation. He also provided an update of his recent attendance at meetings of: Waste Not Orange County, NWRI, and the Borders Committee. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 54956.9(d)(1): The Board convened in closed session at 6:36 p.m. to discuss one item. Item No. CS-1 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:52 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: Chair Shawver briefly discussed the upcoming Strategic Plan process presented at the Steering Committee meeting. 04/24/2019 Minutes of Boats Meeting Page 8 of 9 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: Chair Shawver announced that Board members may request that staff place an item on a future agenda. ADJOURNMENT: At 6:59 p.m. Chair Shawver adjourned the meeting until the Regular Meeting of the Board of Directors on May 22, 2019 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board 04/24/2019 Minutes of Boats Meeting Page 9 of 9 BOARD OF DIRECTORS Meeting Date TOBE.Of Dir. -- 05/22/19 AGENDA REPORT Item Item 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: SALE OF DOIG DRIVE PROPERTY GENERAL MANAGER'S RECOMMENDATION A. Receive and file the amended Purchase and Sale Agreementlescrow instructions with the sale price of$6,672,000; and B. Receive and file the closing documents from the sale of the Orange County Sanitation District's previously owned property at 7311 Doig Drive, Garden Grove, CA. BACKGROUND In September 2006, the Orange County Sanitation District(Sanitation District) purchased the property at 7311 Doig Drive in the city of Garden Grove for$6.2 million with the intent of using it as a Collections facility. However, as a result of local sewer transfers in the cities of Costa Mesa, Newport Beach, Orange, Tustin, and unincorporated areas of Orange County, it was determined that the new facility was no longer needed, and the building was declared surplus. The Board of Directors authorized staff to lease the property to a manufacturing firm with guaranteed extensions through 2022. Over the past seven years, the Sanitation District has collected $1.6 million in revenue by leasing the facility. In 2017, the Board directed staff to dispose of the property. Staff has been working with a broker to facilitate the sale of the property. Six offers were received and vetted by the Sanitation District's broker. The two most qualified offers were asked to submit Best and Final Offers. MCA Realty, Inc. stood out as not only the highest offer at $6,850,000, but the lowest risk with an all cash offer. The Board of Directors voted unanimously in Closed Session to accept the offer of MCA Realty, Inc. to purchase the Doig Drive property for the purchase price of$6,850,000 and enter into the Purchase and Sale Agreement with the buyer in a form approved by General Counsel. As a result of information that MCA Realty, Inc. discovered during the due diligence process, MCA Realty, Inc. indicated that it will terminate the agreement unless the Sanitation District is willing to lower the purchase price. The Board of Directors voted unanimously in Closed Session to authorize staff to renegotiate an up to $200,000 reduction to the original priced of$6,850,000 in lieu of the seismic repairs needed. Page 1 of 3 RELEVANT STANDARDS • Ensure the public's money is wisely spent • Protect Orange County Sanitation District assets PRIOR COMMITTEE/BOARD ACTIONS April 2019 - The Board of Directors voted unanimously in Closed Session to authorize staff to renegotiate an up to$200,000 reduction to the original priced of$6,850,000 in lieu of the seismic repairs needed. February 2019 - The Board of Directors voted unanimously in Closed Session to accept the offer of MCA Realty, Inc. to purchase the Sanitation District's Doig Drive property (7311 Doig Drive, Garden Grove, CA 92841) for the purchase price of $6,850,000, and authorized the Board Chairman to enter into the Purchase and Sale Agreement in a form to be approved by General Counsel. October 2017 - Authorized the General Manager to conduct a Request for Proposal process and subsequently award for real estate broker services to facilitate the sale of the Orange County Sanitation District's real property at 7311 Doig Drive, Garden Grove, CA. November 2016 -Approved the Second Amendment to the Doig Property Lease to enter into an eight-month extension of the Sanitation District's real property at 7311 Doig Drive, Garden Grove, in a form approved by General Counsel. July 2016 - Board of Directors approved First Amendment to extend the lease by three months. December 2011- Board of Directors authorized the lease at 7311 Doig Drive. November 2010 - Board of Directors declared the property at 7311 Doig Drive as surplus property. ADDITIONAL INFORMATION As approved by the Board of Directors, the original approved purchase price of $6,850,000 was negotiated down to $6,672,000 with the final settlement is as follows: Sales Price $ 6,672,000.00 Commission $ 166,800.00 (2.5% of the Sale Price) Other Fees & Costs a) Transfer Tax 7,339.20 b) Title Insurance 5,480.00 c) General Closing Fees 3,000.00 Page 2 d 3 d) Rents 513119 — 6/1/19 20,159.68 Seller Credit (County Taxes) ( 16.77) Net Proceeds S 6,469,237.89 CEQA N/A FINANCIAL CONSIDERATIONS The proceeds of the sale may be used to offset other property acquisitions by the Sanitation District. ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: • Amended Escrow/Final Purchase and Sale Agreement • Grant Deed • Closing Statement Page 3 of 3 1\ n 46 First American Tide Insurance Company National Commercial Services 18500 Von Kaman Ave,Suite 600, Irvine,CA 92612 (949)885-2466- Fax(877)372-0260 AMENDMENTTO ESCROW INSTRUCTIONS and/or PURCHASE CONTRACT To: First American Tide Insurance Company 04/22/2019 National Commercial Services File No: NCS-944258-SA3(knw) Re: 7311 Doig Drive,Garden Grove,CA 92841 The above referenced escrow is hereby modified in the following particulars only: PURCHASE PPrCEREDUCTION • The undersigned hereby agree to reduce the Purchase price by$178,000 to$6,672,000.00. ALL OTHER TERMS AND CONDITIONS OF THIS ESCROW WILL REMAIN THE SAME. MCA Realty, Inc,a/California ®corporation By: l/�l N e: Title: c4v Orange county Sanitation District, a public agency By: tr Name: r yAR41 w Title: Boa Chairman Page 1 of 1 Recorded in Official Records, Orange County Hugh Nguyen, Clerk-Recorder RECORDING REQUESTED BY IIIIIIIIIIIIIIIIIIIIIIIIIIIII 3H.00 First American Title NCS + g p C 0 1 0 8 1 1 0 5 8 $ + AND WHEN RECORDED MAIL TO: 2019000148359 3:20 pm 05/03/19 48 401 G02 5 18 Stutrman, Bromberg, ESserman& Plifka, P.C. 3669.60 3669.60 20.00 0.0012.00 0.00 0.000.000.00 0.00 Suite 2200, 2323 Bryan Street Dallas, Texas 75201 Attn: Kenneth F. Plifka SPACE ABOVE THIS LINE RESERVED FOR RECORDER'S USE Title Grant Deed Pursuant to Senate Bill 2—Building Homes and Jobs Act(GC Code Section 27388.1),effective January 1,2018,a fee of seventy-five dollars($75.00)shall be paid at the time of recording of every real estate instrument,paper,or notice required or permitted by law to be recorded,except those expressly exempted from payment of recording fees,per each single transaction per parcel of real property.The fee imposed by this section shall not exceed two hundred twenty-five dollars ($225.00). Reason for Exemption: • Exempt from fee per GC 27388.1, recorded in connection with a transfer subject to the imposition of documentary transfer tax(DTT),or o Exempt from fee per GC 27388.1, recorded in connection with a transfer of real property that is a residential dwelling to an owner-occupier,or o Exempt from fee per GC 27388.1,recorded in connection with a transfer that was subject to documentary transfer tax which was paid on document recorded previously on (date)as document number of Official Records. (Cap.$225.00) o Exempt from fee per GC 27388.1,fee cap of$225.00 reached,and/or O Exempt from fee per GC 27388.1, not related to real property Failure to Include an exemption reason will result in the imposition of the$75.00 Building Homes and Jobs Act fee. Fees collected are deposited to the State and may not be available for refund. 1 RECORDING REQUESTED BY FIRSTAMERICAN TITLE CO NATIONAL COMMERCIAL SERVICES w1IEN RECORDED MAU,TO: Stutzman,Bromberg,Essenum&Plifka,P.C. Suite 2200,2323 Bryan Street Dallas,Texas 75201 Attn: Kenneth F.Plifka AND MAIL TAX STATEMENT TO: The Realty Associates Fund XI[Portfolio,L.P. 1301 Dove St, Suite 860 Newport Beach, California 92660 Attention:Asset Manager-Orange County,CA e SPACE ABOVE THIS LINE FOR RECORDER'S USE Re: 7311 Doig Drive Garden Grove,California GRANT DEED ' The undersigned Grantor(s)declare(s) DOCUMENTARY TRANSFER TAX IS $7,339.20 ® Computed on full value of the interest or property conveyed,or ❑ Computed on full value less value of liens or encumbrances remaining at time of sale, ❑ Unincorporated Area or City of Garden Grove Parcel No.: 131-651-20 FOR VALUABLE CONSIDERATION,THE ORANGE COUNTY SANITATION DISTRICT, a public agency("Grantor"),hereby grants to THE REALTY ASSOCIATES FUND XII PORTFOLIO,L.P.,a Delaware limited partnership,the real property in the County of Orange, State of California, described in Exhibit A attached to and incorporated herein("Property"), together with all improvements thereon,and all rights,privileges,easements,hereditaments, tenements and appurtenances belonging to such Property,subject to non-delinquent general and special real property taxes and assessments and all matters of record. GRANT DEED-PAGE 1 OF 3 Dated: U9/wf "/V .2019 GRANTOR: ORANGE COUNTY SANITATION DISTRICT, a public agency By: Aj�"XAWVAI Name: David J Shawver Title: Board Chairman ATTEST: By: ell Io Cler of Board APPRO AS�TJO F RM: I GG/• Bradley R.Ho i i General Counsel GRANT DEED-PAGE 2OF3 CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§1189 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached,and not the truthfulness,accuracy,or validity of that document. State of California ) County of D V ll �'� ) On OA!11A(9 be T � 4`1 fore me, 6 (Vt � a-P p/ Date Here Insert Name and Title of the 01 personally appeared rp f—y I P k S 0.y�fYCIi Names)of Signers) who proved to me on the basis of satisfactory evidence to be the ersci whose name(s)�I are subscribed to the within instrument and acknov/J�dged to n thatUlhe/they executed the se, in his/her/their authorized capacity(ies),and that byMiBlher/their signature(s)on the instrument the person(s), or the entity upon behalf of which the persons) ed, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. nrvn wuxva WITNESS my hand and official seal. Nota TINAAo-Ca6lOmW E mange 21 comma:�xneszez SignatureT My Comm.Up...May 31,Xon FF�w� Signature of Notary Public Place Notary Seal Above OPTIONAL Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: - Signer's Name: ❑Corporate Officer — Title(s): ❑Corporate Officer — Title(s): ❑ Partner — O Limited ❑General ❑ Partner — ❑ Limited ❑General ❑ Individual ❑Attorney in Fact ❑ Individual ❑Attorney in Fact ❑Trustee ❑Guardian or Conservator ❑Trustee ❑Guardian or Conservator ❑Other: ❑ Other: Signer is Representing: Signer is Representing: ©2014 National Notary Association•www.NationalNotary.org • 1-800-US NOTARY(1-800-876-6827) Item#5907 EXHIBIT A LEGAL DESCRIPTION Real property in the City of Garden Grove, County of Orange, State of California,described as follows: PARCEL 3,AS SHOWN ON A PARCEL MAP FILED IN BOOK 111, PAGE 1 OF PARCEL MAPS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT ANY RIGHTS TO OIL OR OTHER HYDROCARBON PRODUCTS IN THE LANDS TAKEN, PROVIDED, HOWEVER, THAT THE OWNERS MAY NOT PERFORM ANY OPERATIONS ON THE SURFACE OF SAID LAND SUCH AS DRILLING,EXPLORATION OR EXTRACTION OF SUCH MINERALS WITHOUT THE WRITTEN CONSENT OF THE UNITED STATES,AS SET FORTH IN AN INSTRUMENT RECORDED FEBRUARY 24, 1943 IN BOOK 1177,PAGE 540 OF OFFICIAL RECORDS. ALSO EXCEPT ALL OIL, OIL RIGHTS,MINERALS,MINERAL RIGHTS,NATURAL GAS, NATURAL GAS RIGHTS, AND OTHER HYDROCARBONS BY WHATSOEVER NAME KNOWN,GEOTHERMAL STEAM,AND ALL PRODUCTS DERIVED FROM ANY OF THE FOREGOING THAT MAY BE WITHIN OR UNDER THE PARCEL OF LAND HEREINABOVE DESCRIBED, TOGETHER WITH THE PERPETUAL RIGHT OF DRILLING, MINING, EXPLORING AND OPERATING THEREFOR AND STORING IN AND REMOVING THE SAME FROM SAID LAND OR ANY OTHER LAND, INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM LANDS OTHER THAN THOSE HEREINABOVE DESCRIBED, OIL OR GAS WELLS, TUNNELS AND SHAFTS INTO, THROUGH OR ACROSS THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED, AND TO BOTTOM SUCH WHIPSTOCKED OR DIRECTIONALLY DRILLED WELLS, TUNNELS AND SHAFTS UNDER AND BENEATH OR BEYOND THE EXTERIOR LIMITS THEREOF, AND TO REDRB,L, RETUNNEL, EQUIP, MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES, WITHOUT,HOWEVER,THE RIGHT TO DRILL,MINE,STORE,EXPLORE AND OPERATE THROUGH THE SURFACE OR THE UPPER FIVE HUNDRED (500) FEET OF THE SUBSURFACE OF THE LAND HEREINABOVE DESCRIBED, IN THE DEED FROM THE IRVINE COMPANY, A MICHIGAN CORPORATION, SUCCESSOR BY MERGER WITH IRVINE INDUSTRIAL COMPLEX, RECORDED APRIL 28, 1978 IN BOOK 12652, PAGE 1715 OF OFFICIAL RECORDS. APN: 131-651-20 EXHIBIT A-PAGE I OF 1 sT xa e,� FirstAmerican Tide Insurance Company National Commercial Services 18500 Von Karmen Ave, Suite 600•Irvine, CA 92612 TG Once Phone:(949)885-2400 Office Fax: Seller's Final Setdement Statement File No: NCS-944258-SA1 Escrow Officer: Kathryn Wood/knw Settlement Date: 0 510 3/2 01 9 Disbursement Date: 0 510 3/2 01 9 Property: 7311 Doig Drive, Garden Grove, CA 92841 Buyer: The Realty Associates Fund XII Portfolio, L.P. Attn:Tyler Mattox, 18818 Teller Ave., Suite 250, Irvine, CA 92612 Seller: Orange County Sanitation District Attn:Clerk of the Board, 10844 Ellis Avenue, Fountain Valley, CA 92708-8127 Description Seller Charge Seller Credit Consideration Total Consideration 6,672,000.00 Prorations County Taxes 05/03/19 to 07/O1/19 $51.86/semi 16.77 Rents 05/03/19 to 06/01/19 $21,550.00/mo 20,159.68 Commission Broker: Cushman&Wakefield Real Estate Commission 166,800.00 Title/Escrow Charges Closing-Coordination Fee to First American Title Insurance Company 3,000.00 Policy-Standard ALTA 2006 Owners to First American Title Insurance Company National 5,480.00 Commercial Services Documentary Transfer Tax-Countyto Orange County Clerk-Recorder 7,339.20 Cash(X To)( From)Seller 6,469,237.89 Totals 6,672,016.77 6,672,016.77 Settlement Statement Page 1 of 1 Print Date:05/03/2019,3:38 PM ITEM NO. 4 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, March 27, 2019 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Board Chairman David Shawver on Wednesday, March 27, 2019 at 5:01 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: David Shawver, Board Chair Jim Herberg, General Manager John Withers, Board Vice-Chair Rob Thompson, Assistant General Robert Collacott, Operations Committee Manager Chair Lorenzo Tyner, Assistant General Peter Kim, La PA Committee Chair Manager Glenn Parker, Member-At-Large Celia Chandler, Director of Human Tim Shaw, Member-At-Large Resources Kathy Millea, Director of Engineering COMMITTEE MEMBERS ABSENT: Kelly Lore, Clerk of the Board Chad Wanke, Administration Committee Stephanie Barron Chair Rod Collins Thys DeVries Mike Dorman Al Garcia Larry Johnson Tina Knapp Rebecca Long Laura Maravilla Andrew Nau Adam Nazaroff Wally Ritchie Jim Spears Thomas Vu OTHERS PRESENT: Brad Hogin, General Counsel Laura Kalty, Liebert Cassidy Whitmore, Special Counsel PUBLIC COMMENTS: No public comments were provided. ON2712019 Steenng Commgtee Minutes Page 1 of 4 REPORTS: Chair Shawver announced that Director Donald Wagner was sworn in today as Orange County Supervisor and would therefore no longer be able to serve as the appointed member from the city of Irvine. Chair Shawver announced the following Committee appointments: Tim Shaw (La Habra) Steering Committee (At-Large Member) Erik Peterson (H.B.) Legislative & Public Affairs Committee Jesus Silva (Fullerton) GWRS Steering Committee (Alternate) Chair Shawver stated that he intends to keep the Board apprised of OCSD's public outreach and legislative efforts by providing this information in various ways beginning with the inclusion of the Legislative and Public Affairs Committee monthly reports as a receive and file item included in the Board meeting packets. He also stated that proposed positions on newly introduced bills will be introduced and discussed at the upcoming Legislative and Public Affairs Committee. Chair Shawver also stated that he has requested staff incorporate information and major decision points regarding OCSD's future building in the General Manager's monthly report. Chair Shawver reminded the Board Members that April 1 is the last day to file an Annual Statement of Economic Interests - Form 700. General Manager Jim Herberg notified the Directors of a recent CAL OSHA Process Safety Management inspection and subsequent minor violations which were remedied the same day. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED SECONDED AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held February 27, 2019 and the Special Meeting held March 18, 2019. AYES: Collacott, Kim, Parker, Shaw, Shawver, and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke NON-CONSENT ITEMS 2. ORANGE COUNTY SANITATION DISTRICT/ORANGE COUNTY WATER DISTRICT JOINT AGREEMENT FOR GWRS FINAL EXPANSION (Kathy Millea) 03/27/2019 Steenng Committee Minutes Page 2 of 4 Director of Engineering Kathy Millea provided a brief introduction to this item. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Second Amendment to the Second Amended and Restated Joint Exercise of Powers Agreement for the Development, Operation, and Maintenance of the Groundwater Replenishment System and Green Acres Project between Orange County Sanitation District and Orange County Water District, in a form approved by General Counsel. AYES: Collacott, Kim, Parker, Shaw, Shawver, and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke INFORMATION ITEMS: None. CLOSED SESSION CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.91d11218 54957.6: The Board convened in closed session at 5:07 p.m. to discuss two items. Item No. 2 was not heard. Confidential minutes of the Closed Sessions have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 5:35 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Assistant General Manager Rob Thompson responded to questions regarding the construction traffic impacting the area near Angels Stadium, noting the project was nearing completion. 03W/2019 Steenng Commdee Minutes Page 3 of 4 ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:37 p.m. to the next Steering Committee meeting to be held on Wednesday, April 24, 2019 at 5:00 p.m. Submitted by: Ke A. re, MMC CI rk of a Board 03n7/2019 Slashing Committee Minutes Page 4 of 4 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, April 3, 2019, 5:00 p.m. A meeting of the Operations Committee was called to order by Committee Chair Robert Collacott on Wednesday, April 3, 2019 at 5:03 p.m. in the Administration Building. Director Brad Avery led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Robert Collacott, Chair Jim Herberg, General Manager Mariellen Yarc, Vice-Chair Rob Thompson, Assistant General Manager Brad Avery Lorenzo Tyner, Assistant General Manager Tom Beamish (Alternate) Celia Chandler, Director of Human Resources Allan Bernstein Kathy Millea, Director of Engineering Doug Chaffee Kelly Lore, Clerk of the Board Brooke Jones (Alternate) Bob Bell Lucille Kring Don Cutler Sandra Massa-Lavitt Martin Dix Fred Smith Mike Dorman Dave Shawver, Board Chair Dean Fisher John Withers, Board Moe-Chair Alfredo Garcia Larry Johnson COMMITTEE MEMBERS ABSENT: Cortney Light Steve Jones Rebecca Long Jesus J. Silva Jeff Mohr Riaz Moinuddin Adam Nazaroff Tyler Ramirez Wally Ritchie Don Stokes Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten, Alternate Director(CMSD) Austin Mejia (Supervisor Chaffee's office) PUBLIC COMMENTS: None. 04103/2019 Operarims Camntlttee Mines Page 1 of 4 REPORT OF GENERAL MANAGER: General Manager Jim Herberg announced that next month's meeting will be held at Plant No. 2 and will begin at 4:00 p.m. with a tour of the Plant. Alternate Directors are encouraged to attend. REPORT OF COMMITTEE CHAIR: Committee Chair Collacott did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular meeting of the Operations Committee held on March 6, 2019. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Kring, Shawver, F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: B. Jones (Alternate) and Massa-Lavitt ABSENT: S. Jones and Silva Item pulled and heard separately. 2. PLANT NOS. 1 AND 2 CENTRAL GENERATION ENGINE OVERHAULS (Rob Thompson) Assistant General Manager Rob Thompson provided an informative PowerPoint presentation with an overview of the required engine overhaul of the Central Generation Engines. Mr. Thompson provided a history of the prior bids and the reasons associated with the lack thereof. MOVED SECONDED AND DULY CARRIED TO Recommend to the Board of Directors to: Authorize the General Manager to commence negotiations with identified fines for the overhaul of two central generation engines located at Plant No. 1 and Plant No. 2 Central Generation Facilities. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, B. Jones (Alternate), Kring, Massa-Lavitt, Shawver, F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Silva 04/00@019 Operations comminee Minutes Page 2 of 4 NON-CONSENT: 3. 65-75 TON A/T CRANE REPLACEMENT (Rob Thompson) Mr. Thompson provided a PowerPoint presentation and overview of the proposed purchase of the Sany Crane replacement. Mr. Thompson stated the various uses of the crane and the unreliability of the crane that this will replace. Mr. Thompson responded to questions and concerns from the Committee regarding the legal recourse against the dealer and manufacturer, warranty information, and alternate solutions. The Committee requested additional information regarding these items be included in the item moving to the Board of Directors. MOVED, SECONDED. AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order to Western Pacific Crane & Equipment for the purchase of a 70-ton rough terrain crane using Sourcewell (formerly National Joint Powers Alliance) Cooperative Contract #032515-GUS, for a total amount not to exceed $679,413; and B. Approve a contingency of$33,971 (5%) to accommodate for fluctuations in pricinglfreight costs. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, B. Jones (Alternate), Kring, Massa-Lavitt, Shawver, F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Silva 4. SITE ACCESS AND LICENSE AGREEMENT—2899MENDOZA DRIVE, COSTA MESA (Rob Thompson) Mr. Thompson provided a brief report on this item. MOVED. SECONDED. AND DULY CARRIED TO Recommend to the Board of Directors to: Approve a Site Access and License agreement with Costa Mesa Sanitary District (CMSD) and the City of Costa Mesa, to allow mobilization of an odor control chemical dosing station and injection of chemicals into the Baker-Main Interceptor at 2899 Mendoza Drive in the city of Costa Mesa, in a form approved by General Counsel. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, B. Jones (Alternate), Kring, Massa-Lavitt, Shawver, F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Silva Om03rz019 Operations Committee Minutes Page 3 of 4 INFORMATION ITEMS: 5. CAPITAL IMPROVEMENT PROGRAM PERFORMANCE UPDATE FOR FY 2018-19 (Kathy Millea) Engineering Manager Jeff Mohr provided an informative PowerPoint presentation on Orange County Sanitation District Capital Improvement Program performance that included: Capital Project Life Cycle, CIP outlays; Planning Studies; CEQA Facilities Master Plan Project No. PS17-08, Collections Capacity Evaluation Study Project No. PS15-08; Design and Construction Accomplishments; performance indicators, and factors affecting non-construction cost and change order rates. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT Chair Collacott declared the meeting adjourned at 6:01 p.m. to the meeting to be held on Wednesday, May 1, 2019 at 4:00 p.m. to be held at Plant No. 2 in Huntington Beach, CA. Sub tted by, 4Ke"ryL Mt a Board 04/03/2019 Operations CommMee Minutes Page 4 of 4 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, April 8, 2019 at 3:30 p.m. A meeting of the Legislative and Public Affairs Committee was called to order by Committee Chair Peter Kim on Monday, April 8, 2019 at 3:30 p.m. in the Administration Building of the Orange County Sanitation District. Chair Kim led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Peter Kim, Chair Jim Herberg, General Manager Allan Bernstein, Vice-Chair Lorenzo Tyner, Assistant General Manager Lucille Kring, Member-At-Large Celia Chandler, Director of Human Resources Erik Peterson, Member-At-Large Kathy Millea, Director of Engineering David Shawver, Board Chair Kelly Lore, Clerk of the Board John Withers, Board Vice-Chair Jennifer Cabral Tanya Chong COMMITTEE MEMBERS ABSENT: Daisy Covarrubias Chad Wanke, Member-At-Large Rebecca Long Mark Manzo OTHERS PRESENT: Brad Hogin, General Counsel Eric Sapirstein, ENS Resources (via teleconference) Eric O'Donnell, Townsend Public Affairs (TPA) PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Kim welcomed new member Director Erik Peterson to the Committee. REPORT OF GENERAL MANAGER: General Manager Jim Herberg provided a brief report of the recent trip to Sacramento with visits to: Sean Maguire, State Water Resources Control Board; Susan Chen, Consultant for Budget Subcommittee 3; offices of Assemblymember Phil Ting; Senator Robert Hertzberg; Senator Tom Umberg; Senator Richard Bloom; and Amanda Mattson with the Senate Judiciary Committee. 0 4/0 812 01 9 Legislative and Public Affabs committee Minutes Page 1 of 4 Board Chair Shawver complimented staff and TPA on the great preparatory work and success during the visits in Sacramento. Vice-Chair Withers also stated that throughout the seven meetings he noticed a great amount of turnover of staff, which he stated proves the importance of visiting regularly, with good talking points and information regarding the Sanitation District's accomplishments. CONSENT CALENDAR: Committee Chair Kim indicated that Item No. 1 should be approval of the minutes for the Committee meeting held on March 11, 2019 not February 11, 2019. 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. and DULY CARRIED TO: Approve minutes for the Committee meeting held on March 11, 2019. AYES: Bernstein, Kim, Shawver and Withers NOES: None ABSTENTIONS: Kring and Peterson ABSENT: Warlike 2. SUPPORT HOUSE OF REPRESENTATIVES BILL 1497 AND 1162 (Jennifer Cabral) MOVED. SECONDED. and DULY CARRIED TO: A. Approve letter of Support for House of Representatives Bill 1497 - Water Quality Protection and Job Creation Act of 2019 (DeFazio); and B. Approve letter of Support for House of Representatives Bill 1162 - Water Recycling Investment and Improvement Act (Napolitano). Bernstein, Kim, Kring, Peterson, Shawver and AYES: Withers NOES: None ABSTENTIONS: None ABSENT: Warlike Item pulled and heard separately. 3. POSITION LETTERS: ASSEMBLY BILL 292, ASSEMBLY BILL 1486, AND SENATE BILL 332 (Jennifer Cabral) Public Affairs Supervisor Jennifer Cabral noted that after the recent visits to Sacramento, staff recommends taking a watch position on Item Nos 3.B. and 3.C., with no letters being sent at this time. 04/09/2019 Legislative and Public Affairs Committee Minutes Page 2 of MOVED. SECONDED. and DULY CARRIED TO: A. Approve letter of Support for Assembly Bill 292 - Potable Reuse Terminology (Quirk); B. Take a watch position on Senate Bill 332-Wastewater treatment: recycled water(Hertzberg and Wiener); and C. Take a watch position on Assembly Bill 1486- Local agencies: surplus land (Ting). Bernstein, Kim, Kring, Peterson, Shawver and AYES: Withers NOES: None ABSTENTIONS: None ABSENT: Wanke NON-CONSENT: 4. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O19 (Rebecca Long) Senior Public Affairs Specialist Rebecca Long indicated that two letters have been sent in support of introduced bills AB 1672 (Bloom) and HR 1764 (Garamendi). Eric Sapirstein provided a PowerPoint presentation and a brief overview of his monthly report including: infrastructure initiatives, permit terms legislation, and letters of support for key legislation. Eric O'Donnell, TPA, provided a PowerPoint presentation with information including: vurrent legislative schedule, Water Tax Update-SB 200, SB 669, AB 217, and 2019 Legislation AB 510 (Cooley). Mr. O'Donnell then provided a brief report of the recent Advocacy Day with meetings to State Water Resources Control Board member Sean Maguire and Assembly Budget Subcommittee 3 — Resources and Transportation. Committee Chair Kim deemed the Legislative Affairs Update for the month of March 2019 received and filed. 5. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MARCH 2O19 (Jennifer Cabral) Ms. Cabral indicated that moving forward, informational items presented at this meeting will be received and filed and move to the Board of Directors for enhanced communication. Ms. Cabral then provided a PowerPoint presentation which reviewed outreach efforts made and meetings attended over the last month. Ms. Cabral announced and provided a brief description of upcoming events including information on OCSD's 6511 Anniversary Open House which will take place on Saturday, July 27 04/0812019 Legislative and Public AOaiis Committee Minutes Page 3of4 from 9:00 a.m. to 12:00 p.m., along with the new Centrifuge Ribbon Cutting event. Ms. Cabral then announced recent awards received by the agency. Committee Chair Kim deemed the Public Affairs Update for the month of March 2019 received and filed. INFORMATION ITEMS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Kring reported that due to the recent rain, mosquitos are abundant in California and reminded the Committee to fix any torn screens and dump standing water. Board Chair Shawver stated that Director Wanks will no longer be able to serve on the Legislative and Public Affairs Committee and that he will be making an alternate appointment in the near future. Board Chair Shawver also announced that a new item will be added to all future agendas to allow any Board member to add an item to a future meeting. ADJOURNMENT: Committee Chair Kim declared the meeting adjourned at 4:32 p.m.to the next Legislative and Public Affairs Committee meeting, Monday, May 13, 2019 at 12:00 p.m. aSubmi d by: Kell A. L , MC Cler oft Board 0410812019 Legislative and Public Affairs Committee Minutes Page 4 of 4 3� 1 �= :: L-C te•: ti Z MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, April 10, 2019 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chairman Wanks on April 10, 2019 at 5:05 p.m. in the Administration Building of the Orange County Sanitation District. Director Christina Shea led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Chad Wanke, Chairman Jim Herberg, General Manager Richard Murphy, Vice-Chairman Lorenzo Tyner, Assistant General Manager James Ferryman Celia Chandler, Director of Human Resources Cecilia Iglesias (Alternate) Kathy Millea, Director of Engineering Peter Kim Tina Knapp, Assistant Clerk of the Board Mark Murphy Jennifer Cabral Steve Nagel Rod Collins Andrew Nguyen Al Garcia Glenn Parker Ted Gerber Erik Peterson Heidi Janz Christina Shea Lori Karaguezian David Shawver, Board Chairman Mark Kawamoto John Withers, Board Vice-Chairman Laura Maravilla Jeff Mohr COMMITTEE MEMBERS ABSENT: Tyler Ramirez Mark Murphy Wally Ritchie Roya Sohanaki Steve Speakman John Swindler OTHERS PRESENT: Brad Hogin, General Counsel Robert Lowe, Alliant PUBLIC COMMENTS: None. REPORTS: Committee Chair Wanks welcomed Christina Shea, recently appointed Director from the City of Irvine and reminded the Committee that the May meeting of this Committee to be held on May 8 will meet at Plant No. 2 in Huntington Beach, CA. Chair Wanks also 04/10//2019 Aeministragon Committee Minutes Page 1 of 5 indicated that the meeting will begin at 5:00 p.m.; with a tour scheduled prior to the meeting, beginning at 4:00 p.m. The Clerk's office will ensure that a reminder is sent to the Committee. General Manager Jim Herberg indicated that he will be out of the office from April 11 — April 22 and that Assistant General Manager Rob Thompson has his designation of authority while he is out. Assistant General Manager Lorenzo Tyner indicated that Lan Wiborg has been hired as the new Director of Environmental Services and starts later this month. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED SECONDED AND DULY CARRIED TO: Approve Minutes of the March 13, 2019 Administration Committee Meeting. AYES: Ferryman, Iglesias(Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 2. DIGITAL DROPLET POLYMERASE CHAIN REACTION (DDPCR) LABORATORY INSTRUMENT PURCHASE (Lorenzo Tyner) MOVED SECONDED, AND DULY CARRIED TO: Approve a purchase order contract to Bio-Rad for a Digital Droplet Polymerase Chain Reaction laboratory instrument for Sole Source Control Number 2074 in an amount not to exceed $99,990 including tax, freight, and a two-year service contract. AYES: Ferryman, Iglesias(Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 3. ENTERPRISE CONTENT MANAGEMENT SYSTEM AND RECORDS MANAGEMENT NEEDS ASSESSMENT (Lorenzo Tyner) MOVED SECONDED AND DULY CARRIED TO: A. Approve a Professional Consultant Services Agreement to ThirdWave Corporation to provide Enterprise Content Management System and 04/10/12019 AGministration Committee Minutes Page 2 of 5 Records Management Needs Assessment, Specification No. CS-2019- 101013D, fora total amount not to exceed $116,903; and B. Approve a contingency of$23,380 (20%). AYES: Ferryman, Iglesias(Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanks NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers NON-CONSENT: 4. PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-XX (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD-48" for first reading at the April 24, 2019 Board meeting; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on April 24, 2019; C. Set May 22, 2019, as the date for the second reading and adoption of Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Ferryman, Iglesias(Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers 5. PROPOSED ORDINANCE NO. OCSD-XX AMENDING SECTION 2.06 OF ARTICLE 11, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSD- 60 CONCERNING CAPITAL FACILITY CAPACITY CHARGES (Lorenzo Tyner) MOVED SECONDED. AND DULY CARRIED TO: _Recommended to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX entitled: "An Ordinance of the Board of Directors of Orange County Sanitation Amending Section 2.06 of Article II Table A, Table B and Table C of Ordinance No. OCSD-50 Concerning Capital Facility Capacity Charges"; B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire ordinance on April 24, 2019; 04/10/2019 Ad.mstraWn Committee Minutes Page 3 of 5 C. Set May 22, 2019, as the date for the second reading and adoption of the Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Ferryman, Iglesias(Alternate), Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: M. Murphy and Withers INFORMATION ITEMS: 6. FY 2019-20 OPERATING BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner provided a brief overview of this item and introduced Wally Ritchie, Controller, who provided a PowerPoint presentation that included an overview of the line-item expenditure details for the FYI 2019-20 Operating Budget, including salaries, wages, and benefits; contractual services; repairs and maintenance; operating materials and supplies; utilities; other operating supplies; administrative expenses; training and meetings; printing and publishing; and cost allocation. Board Vice-Chair John Withers arrived at 5:14 p.m. In response to questions from Board Vice-Chair Withers, staff indicated a report on chemical utilitzation at OCSD will be presented in the future. 7. STATUS OF 2019-20 PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler porivded an introduction to this item and introduced Robert Lowe from Alliant, who is part of the Santiation District's brokerage team. Mr. Lowe provided a PowerPoint presentation that provided an update regarding the upcoming annual renewals of the Sanitation District's major insurance policies and reviewed impacts of unforeseen catastrophic events like wildfires, public entity liability, excess workers' compensation, an overview of property insurance and earthquakes, historical rates, and renewal strategy. Board Vice-Chair Withers asked for specifies about OCSD claims and how the Saniation District's experience compares to other agencies and if there are additional measures that can be taken to minimize risk and reduce rates. Mr. Lowe indicated that the Sanitation District is about average in the marketplace. 04/10//2019 Adminisaatton Committee Minutes Page 4 of 5 8. CAPITAL IMPROVEMENT PROGRAM PERFORMANCE UPDATE FOR FY 2018-19 (Kathy Millea) Director of Engineering Kathy Millea briefly introduced this item and indicated that Jeff Mohr, Engineering Manager, would provide the presentation pertaining to this item. Mr. Mohr's presentation included an overview of the Sanitation District's Capital Project life cycle, FY 18/19 Capital Improvement Program (CIP) outlays by project phase, projected net CIP outlay, planning studies, specific information on several projects, design accomplishments, construction accomplishments, performance indicators, cumulative change order rates, program non-construction costs, and factors affecting non-construction costs & change order rates. Ms. Millea provided a brief overview of the projects needed to complete the Groundwater Replenishment System (GWRS) and how the grant money will be distributed between the Sanitation District and Orange County Water District. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: Committee Chairman Wanke declared the meeting adjourned at 6:04 p.m. to the next regularly scheduled meeting of May 8, 2019 at 4:00 p.m. to be held at Plant No. 2 in Huntington Beach, CA. Submitted by: 7-yl,, w K- uy Tina Knapp, CMG Assistant_Clerk of the Board 041101/2019 Administration Committee Minutes Page 5 of 5 BOARD OF DIRECTORS Meeting Date TOBE.Or Dk. -- 05/22/19 AGENDA REPORT ItemNumber IemNumber s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF APRIL 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of April 2019. BACKGROUND The CA Government Code requires that a monthly report of investment transactions be provided to the legislative body. Attached is the monthly report of investment transactions for the month ended April 30, 2019. RELEVANT STANDARDS CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Report of the Investment Transactions for the month ended April 30, 2019 Page 1 of 1 U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP ld E.plarati.n Units Price Net Cash Amt C.st Gain/L.ss ACQUISITIONS 04/01/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CLZ 6,551,125.0000 1.000000 -6,551,125.00 6,551,125.00 0.00 04/01/2019 31946VS67 PURCHASED UNITS OF FIRST AM GOV7 OB FD CL Z 5,410,125.0000 1.000000 -5,410,125.00 5,410,125.00 0.00 04/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,021,120.7500 1.000000 .5,021,120.75 5,021.120.75 0.00 04/02/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 81,762.3400 1.000000 -81,762.34 81.762.34 0.00 04/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 3,450.5300 1.000000 3,450.53 3,450.53 0.00 04/05/2019 06417GS07 PURCHASED PAR VALUE OF BANK OF NOVA C D 2.610%l2123/19/MLPFS 2,300,000.0000 1.000267 -2,300,614.40 2,300,614.40 0.00 INC/FIXED INCOME/2,300,000 PAR VALUE AT 100,02671304% 04/05/2019 912828TH3 PURCHASED PAR VALUE OF U S TREASURY NT 0.875% 7/31/19INOMURA 5,000,000.0000 0.995117 4,975,585.94 4,975.585.94 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.5117188% 04/05/2019 912828F62 PURCHASED PAR VALUE OF U S TREASURY NT 1.500%10/31119/NOMURA 2,500,000.0000 0.994688 -2,486,718.75 2,486.718.75 0.00 SECURITIES INTERNATIONA/2,500,000 PAR VALUE AT 99.46875% 04/05/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 46,875.0000 1.000000 46,875.00 46,875.00 0.00 04/10/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV7 OB FD CL Z 36,250.0000 1.000000 -36,250.00 36,250.00 0.00 04/12/2019 912828VBO PURCHASED PAR VALUE OF U S TREASURY NT 2.250% 1/31/24/JELLS FARGO 4,500,000.0000 0.9%758 4,485,410.16 4,485.410.16 0.00 SECURITIES,LLC/4,500,000 PAR VALUE AT 99.67578133% 04/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 199,798.7100 1.000000 -199,798]1 199.798.71 0.00 04/15/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 913,201.5100 1.000000 -913,201.51 913,201.51 0.00 04/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV7 OB FD CL Z 7,500,000.0000 1.000000 -7,500,000.00 7,500,000.00 0.00 04/18/2019 313384JV2 PURCHASED PAR VALUE OF F H L S DISC NITS 7/31/19IMIZUHO SECURITIES 5,500,000.0000 0.993081 -5,461,946.11 5,461,946.11 0.00 USA FXD INC/5,500,000 PAR VALUE AT 99.30811109% 04/18/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 250,523.4900 1.000000 -250,523.49 250.523.49 0.00 04/22/2019 912828TR1 PURCHASED PAR VALUE OF U S TREASURY NT 1,000% 9/30/19/J.P.MORGAN 10,000,000.0000 0,993750 -9,937,500.00 9,937,500.00 0.00 SECURITIES LLC/10,000,000 PAR VALUE AT 99.375% 04/22/2019 912828H52 PURCHASED PAR VALUE OF U S TREASURY NT 1.250% 1/31/20/NOMURA 5,000,000.0000 0.990703 4,953,515.63 4,953,515.63 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99,0703126% 04/22/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 56,500,000.0000 1.000000 -56,500,000.00 56,500,000.00 0.00 04/22/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 36,012,177.1300 1.000000 -36,012,177.13 36,012.177.13 0.00 04/23/2019 94988J5G8 PURCHASED PAR VALUE OF WELLS FARGO MTN 2.150%12/06/19 M.P.MORGAN 500,000.0000 0.996850 498,425.00 498,425.00 0.00 SECURITIES LLC/500,000 PAR VALUE AT 99.685% 04/24/2019 06051GHF9 PURCHASED PAR VALUE OF BANK OF AMERICA 3.550% 3/05/24 IGOLDMAN 2,900,000.0000 1.010780 -2,931,262.00 2,931,262.00 0.00 SACHS&CO.LLC/2,900,000 PAR VALUE AT 101,078% 04/24/2019 89233GAH9 PURCHASED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 1I17mlDBTC 2,00g000.0000 0.980942 .1,961,894.44 1,%1,884.44 0.00 AMERICAS/COMMERCIAL PAPER/2,000,000 PAR VALUE AT 98.094222% 04/24/2019 912796VM PURCHASED PAR VALUE OF U S TREASURY BILL 5/07/19/WELLS FARGO 12,000,000.0000 0.999146 -11,989,747.77 11,989.747.77 0.00 SECURITIES,11012,000,000 PAR VALUE AT 99.91456475% 04/24/2019 912796VA4 PURCHASED PAR VALUE OF U S TREASURY BILL 5/07/19 AVELLS FARGO 20,000,000.0000 0,999146 -19,982,912.94 19,982,912.94 0.00 SECURITIES,LLC/20,000,000 PAR VALUE AT 99.9145647% 1 of 8 U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss 04124/2019 912796VCO PURCHASED PAR VALUE OF U S TREASURY BILL 5121/19 HELLS FARGO 10,000,000.0000 0.998220 -9,982,197.25 9,982,197.25 0.00 SECURITIES,LLCI10,000,000 PAR VALUE AT 99.8219725% 04/25/2019 06406HCZ0 PURCHASED PAR VALUE OF BANK OF NY MELLO MTN 2.150% 2124120/PERSHING 1,500,000.0000 0.995950 .1,493,925.00 1,493.925.00 0.00 LLC/1,500,000 PAR VALUE AT 99.595% 04/25/2019 912828W48 PURCHASED PAR VALUE OF U S TREASURY NT 2.125% 2/29/24/J.P.MORGAN 10,000,000.0000 0.991172 -9,911,718.75 9,911.718.75 0.00 SECURITIES LLC/10,000,000 PAR VALUE AT 99.1171875% 04/25/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVF OB FD CL Z 10,125.6000 1.000000 -10,125.60 10,125.60 0.00 04/26/2019 69353RDZ8 PURCHASED PAR VALUE OF PNC BANK NA MTN 2.400%10/18/19/J.P.MORGAN 1,000,000.0000 0.999000 -999,000.00 999,000.00 0.00 SECURITIES LLC/1,000,000 PAR VALUE AT 99.9% 04/30/2019 31846VW7 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 18,750.0000 1.000000 .18,750.00 18.750.00 0.00 04/30/2019 31846V567 PURCHASED UNITS OF FIRST AM COW OB FD CL Z 106,250.0000 1.000000 -106,250.00 106,250.00 0.00 TOTAL ACQUISITIONS 213,361,535.0600 .213,013,899.20 213,013,899.20 0.00 DISPOSITIONS 04/01/2019 06051GFD6 MATURED PAR VALUE OF BANK OF AMERICA CORP 2.650% 41011191,500,000 PAR -1,500,000.0000 1,000000 1,500,000.00 -1,499,910,00 90.00 VALUE AT 100% 04/01/2019 912828W97 MATURED PAR VALUE OF U S TREASURY NT 1.250% 3/31/195,000,000 PAR VALUE -5,000,000.0000 1.000000 5,000,000.00 4,965,429.69 34,570.31 AT 100% 04/01/2019 912828SN1 MATURED PAR VALUE OF U S TREASURY NT 1,500% 3/31/19 5,000,000 PAR VALUE -5,000,000.0000 1.000000 5,000,000.00 -5,016,423.00 -16,423.00 AT 100% 04/02/2019 912796UV9 MATURED PAR VALUE OF U S TREASURY BI LL 4/02/195,000,000 PAR VALUE 5,000,000.0000 1.000000 4,988,678.47 4,988,678.47 0.00 AT 100% 04/05/2019 31846VW7 SOLD UNITS OF FI PST AM GOVT OB FD CL Z -7,486,199.7200 1.000000 7,486,199.72 .7,486.199.72 0.00 04/05/2019 31846V567 SOLD UNITS OF FI RST AM GOUT OB FD CL Z -2,302,948.9000 1.000000 2,302,948.90 -2,302,948.90 0.00 04/12/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,482,456.0900 1.000000 4,482,456.09 4,482,456.09 0.00 04/15/2019 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C 9786064 4.677% 1/01/28 MARCH FHLMC -16.5100 0.000000 16.51 -16.11 0.40 DUE 4115119 04/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.587% 8/15/32 -526.9500 9,961.541873 526.95 -527.50 -0.55 04/15/2019 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 -76,138.7700 0.000000 76,138.77 -76,137.29 1.48 04/15/2019 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15/20 -91,913.6600 0.000000 91,913.66 -91,899.19 14.47 04/15/2019 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4/15/20 CMO FINAL -49,440.6300 0.000000 49,440.63 49,436.34 4.29 PAYDOWN 04/15/2019 47788BADB PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15Q1 .17,026.6500 0.000000 17,026.65 .17,025.40 1.25 04/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -149,119.0200 0.000000 149,119.02 -148,816.12 302.90 04/15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -93,704.6400 0.000000 93,704.64 -92,954.27 750.37 04/15/2019 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.500% 9/15121 -149,007.6200 0.000000 149,007.62 -148,076.32 931.30 04/15/2019 89238BABB PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100%10/15/20 .376,213.0900 0.000000 376,213.09 .376.174.64 38.45 2 of U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt CDst GainILDss 041l6/2019 912796UX5 MATURED PAR VALUE OF U S TREASURY BILL 4/16/197,500,000 PAR VALUE -7,500,000.0000 1.000000 7,490,553.83 -7,490,553.83 0.00 AT 100% 04/18/2019 43814RAC0 PAID DOWN PAR VALUE OF HONDA AUTO 1.210%12/18120 .160,049.4100 0.000000 160,049.41 .158,292.62 1,766.79 04/18/2019 43814PAB6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21/20 69,988.9400 0.000000 69,988.94 -69,98272 6.22 04/18/2019 31846VS67 SOLD UNITS OF FIRSTAM GOVT OB FD CL Z -5,461,946.1100 1.000000 5,461,946.11 -5,461,946.11 0.00 04/22/2019 94974BFU9 MATURED PAR VALUE OF WELLS FARGO COM MTN 2.125% 4/22/191,500,000 PAR -1,500,000.0000 1.000000 1,500,000.00 -1,494,090.00 5,910.00 VALUE AT 100% 04/22/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#080023 4.125%12/20/26 MARCH GNMA .172.8500 0.000000 172.85 .175.71 .2.86 DUE 4/20/19 04/22/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A 11#080088 3.625% 6120/27 MARCH GNMA -186.9900 0.000000 186.99 -191.08 4.09 DUE 4/20/19 04/22/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#080395 3.625% 4/20/30 MARCH GNMA -89.1500 0.000000 89.15 -88.34 0.81 DUE 4/20/19 04/22/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 3.625% 5/20/30 MARCH GNMA -368.3400 0.000000 368.34 -364.60 3.74 DUE 4120/19 04/22/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#080965 3.750% 7/20/34 MARCH GNMA .1,140.2200 0.000000 1,140.22 .1,139.51 0.71 DUE 4/20/19 04/22/2019 31846V567 SOLD UNITS OF FIRSTAM GOVTOB FD CLZ -14,895,073.8700 1.000000 14,895,073.87 -14,895,073.87 0.00 04/23/2019 31846V567 SOLD UNITS OF FIRSTAM GOVT OB FD CLZ -502,515.9700 1.000000 502,515.97 -502,515.97 0.00 04/24/2019 31846V567 SOLD UNITS OF FIRSTAM GOVLOB FD CLZ -31,926,994.6300 1.000000 31,926,994.63 31,926,994.63 0.00 04/24/2019 31846V567 SOLD UNITS OF FIRSTAM GOVT OB FD CL Z -2,945,274.6400 1.000000 2,945,274.64 .2,945,274.64 0.00 04/24/2019 31 S46V567 SOLD UNITS OF FIRSTAM COW OB FD CL Z -11,989,747.7700 1.000000 11,989,747.77 -11,989.747.77 0.00 04/25/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4,251% 1/25/20 6,937.3500 1,923,676170 6,937.35 -7,330.83 393.48 04/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -2,574.6700 0.000000 2,574.67 -2,915.81 341.14 04/25/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4101128 MARCH FNMA .1437900 0.000000 14379 .152.07 -8.28 DUE 4/25/19 04/25/2019 313761<T22 PAID DOWN PAR VALUE OF F N M A#357969 5.000% 9101/35 MARCH FNMA -1,001.0700 0.000000 1,001.07 -1,076.15 -75.08 DUE 4/25/19 04/25/2019 31381 PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3,400%11/01/20 MARCH FNMA 685.6400 0.000000 685.64 -670.80 14.84 DUE 4/25/19 04/25/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6101136 MARCH FNMA -1,734.0100 0.000000 1,734.01 -1,864.06 -130.05 DUE 4125/19 04/25/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 MARCH FNMA .8.7400 0.000000 8.74 -9.40 .0.66 DUE 4/25/19 04/25/2019 31406POY8 PAID DOWN PAR VALUE OFF N M A#815971 5.000% 3101135 MARCH FNMA -3,337.0400 0.000000 3,337.04 -3,587.32 -250.28 DUE 4/25/19 04/25/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4,722% 2/01135 MARCH FNMA 426.0400 0.000000 426.04 322.71 3.33 DUE 4/25119 3of8 U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash�t Cost GainlLoss 04Q5/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A4826080 5.000% 7101135 MARCH FNMA -85.1900 0.000000 85.19 -91,58 -6.39 DUE 4125/19 04/25/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7101136 MARCH FNMA .3,226.4600 0.000000 3,226.46 .3,468.44 .241.96 DUE 4/25/19 04/25/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01129 MARCH FNMA -217.1300 0.000000 217.13 -229.64 -12.51 DUE 4/25/19 04/25/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4,500% 4/01/29 MARCH FNMA -294.5100 0.000000 294.51 -311.47 -16.96 DUE 4/25/19 04/25/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2/25/41 -3,020.4300 0.000000 3,020.43 -3,019.49 0.94 04/25/2019 78445JAA5 PAID DOWN PAR VALUE OF S L M A 4.27063% 4125123 -849.9600 0.000000 849.96 -846.51 3.45 04/25/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,499,389.5800 1.000000 1,499,389.58 -1,499.389.58 0.00 04/25/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -9,917,215,9100 1.000000 9,917 21 5.91 -9,917,215.91 0.00 04/26/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -999,533,3300 1.000000 999,533,33 -999,533,33 0.00 TOTAL DISPOSITIONS .121,168,941.9900 w 121.148,174.29 -121,121,675.55 26,498.74 OTHERTRANSACTIONS 04/01/2019 06051GFD6 INTEREST EARNED ON BANK OF AMERICA CORP 2650% 4/01/19$1 PV ON 0.0000 0,000000 19,875.00 0,00 0.00 1500000.0000 SHARES DUE 4/1/2019 04/01/2019 31946VS67 INTEREST EARNED ON FIRST AM GOVT OB FD CLZ UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 21,120.75 0.00 0.00 3/31/2019 INTEREST FROM 311/19 TO 3131/19 04/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CLZ UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 34,887.34 0.00 0.00 3/31/2019 INTEREST FROM 3/1/19 TO 3/31/19 04/01/2019 912828TU INTEREST EARNED ON U S TREASURY NT 1.125% 9130121 $1 PV ON 7000000.0000 0.0000 0.000000 39,375.00 0.00 0.00 SHARES DUE 3/31/2019 04/01/2019 912828W97 INTEREST EARNED ON U S TREASURY NT 1.250% 3/31119$1 PV ON 5000000.0000 0.0000 0.000000 31,250.00 0.00 0.00 SHARES DUE 3/31/2019 04/01/2019 912828SN1 INTEREST EARNED ON U S TREASURY NT 1.500% 3131119$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 3/31/2019 04/01/2019 912828J76 INTEREST EARNED ON U S TREASURY NT 1.750% 3131122$1 PV ON 5000000.0000 0.0000 0.000000 43,750.00 0.00 0.00 SHARES DUE 3/31/2019 04/01/2019 912828F39 INTEREST EARNED ON U S TREASURY NT 1.750% 9130/19$1 PV ON 5800000.0000 0.0000 0.000000 50,750.00 0.00 0.00 SHARES DUE 3/31/2019 04/01/2019 9128281-57 INTEREST EARNED ON U S TREASURY NT 1,750% 9/30122$1 PV ON 0.0000 0.000000 113,750.00 0.00 0.00 13000000.0000 SHARES DUE 3/31/2019 04/01/2019 9128284139 INTEREST EARNED ON U S TREASURY NT 2.500% 3/31123$1 PV ON 0.0000 0.000000 125,000.00 0.00 0.00 10000000.0000 SHARES DUE 3/31/2019 04/02/2019 3137EADM8 INTEREST EARNED ON F H L M C M T N 1.2W%10/02/19$1 PV ON 7500000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 4/2/2019 4 of U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost Gain)Loss 04/02/2019 912796UV9 INTEREST EARNED ON U S TREASURY BILL 4/02119$1 PV ON 5000000.0000 0.0000 0.000000 11,321.53 0.00 0.00 SHARES DUE 4/2/2019 5,000,000 PAR VALUE AT 100% 04/04/2019 525ESCOY6 Unknown LEHMAN BRTH HLO ESC PARTIAL LIQUIDATING DISTRIBUTION PAID @ 0.0000 0.000000 2,652.08 .2.652.08 0.00 1.326040 04/04/2019 525ESCIB7 Unknown LEHMAN BIRTH MTN ES 0.00001% 1/24113 PARTIAL LIQUIDATING 0.0000 0.000000 798.45 -798.45 0.00 DISTRIBUTION PAID @ 1.330750 04/05/2019 3135GOT45 INTEREST EARNED ON F N M A 1.875% 4/05/22$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 4/5/2019 04/05/2019 06417GS07 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NOVA C D 2.610%12r23/19 0.0000 0.000000 -2,334.50 0.00 0.00 04/05/2019 912828TH3 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 0.875% 7131119 0.0000 0.000000 .7,734.81 0.00 0.00 04/05/2019 912828F62 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.500%10/31/19 0.0000 0.000000 -16,160.22 0.00 0.00 04/10/2019 02665WCO2 INTEREST EARNED ON AMERICAN HONDA MTN 3.625%10/10/23$1 PV ON 0.0000 0.000000 36,250.00 0.00 0.00 2000000.0000 SHARES DUE W10/2019 04/11/2019 912828WUG BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 22360.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/11/2019 912828WUG FED BASIS OF U S TREASURY I P S 0.125% 7116124 ADJUSTED BY 22360.00 UNITS 0.0000 0.000000 0.00 22,360.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/11/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22360.0000 22,360.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 04/11/2019 912828WUG STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 22360.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/12/2019 24422EUM9 INTEREST EARNED ON JOHN DEERE MTN 3.650%10/12/23$1 PV ON 1250000.0000 0.0000 0.000000 22,812.50 0.00 0.00 SHARES DUE 4/12/2019 04/12/2019 912828VBO PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.250% 1131124 0.0000 0.000000 -19,858.43 0.00 0.00 04/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15122$1 PV ON 10084.2300 0.0000 0.000000 10,084.23 0.00 0.00 SHARES DUE 4/1 512 01 9$0.001611PV ON 6,270,000.00 PV DUE 4/15/19 04/15/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4.677% 1/01/28$1 PV ON 7.5900 SHARES 0.0000 0.000000 7.59 0.00 0.00 DUE 4/15/2019 FEBRUARY FHLMC DUE 4115/19 04/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.587% 8/15/32$1 PV ON 34.7600 0.0000 0.000000 34.76 0.00 0.00 SHARES DUE 4/15/2019$0.002991PV ON 10,580.45 PV DUE 4/15/19 04/15/2019 43814OAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 256.0200 0.0000 0.000000 256.02 0.00 0.00 SHARES DUE 4/15/2019$0.001161PV ON 221,021.05 PV DUE 4115/19 04/15/2019 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 114.4000 0.0000 0.000000 114.40 0.00 0.00 SHARES DUE 4/15/2019$0.001131PV ON 100,940.43 PV DUE 4115/19 04/15/2019 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5/15/23$1 PV ON 1429,1600 0.0000 0.000000 1,429.16 0.00 0.00 SHARES DUE W15/2019$0.001241PV ON 1,151,000.00 PV DUE 4115119 04/15/2019 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 65.5100 0.0000 0.000000 65.51 0.00 0.00 SHARES DUE 4/15/2019$0.001321PV ON 49,440.63 PV DUE 4/15/19 5 of U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss 041l5/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15121 $1 PV ON 1023.7500 0.0000 0.000000 1,023.75 0,00 0.00 SHARES DUE 4/15/2019$0.00152/PV ON 675,000.00 PV DUE 4115/19 04/15/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420%10/15120$1 PV ON 2157.5200 0.0000 0.000000 2,157.52 0.00 0.00 SHARES DUE 4/15/2019$0.00202/PV ON 1,069,844.48 PV DUE 4/15119 04/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 4/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 4/15119 04/15/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850%12115/21 $1 PV ON 8271,3200 0.0000 0.000000 8,271.32 0.00 0.00 SHARES DUE W15/2019$0.00253/PV ON 3,265,000.00 PV DUE 4115119 04/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11/15122$1 PV ON 11883.6800 0.0000 0.000000 11,883.68 0.00 0.00 SHARES DUE 4/15/2019$0.00257/PV ON 4,630,000.00 PV DUE 4/15M9 04/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 847.9400 0.0000 0.000000 847.94 0.00 0.00 SHARES DUE 4/15/2019$0.00110/PV ON 770,859.02 PV DUE 4115/19 04/15/2019 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9115/21 $1 PV ON 788.7500 0.0000 0.000000 788.75 0.00 0.00 SHARES DUE 4/15/2019$0.00125/PV ON 630,999.45 PV DUE 4115/19 04/15/2019 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 3828.1200 0.0000 0.000000 3,828.12 0.00 0.00 SHARES DUE 4/15/2019$0.00146/PV ON 2,625,000.00 PV DUE 4115119 04/15/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 4/15/2019$0.00255/PV ON 3,560,000.00 PV DUE 4/15/19 04/15/2019 674599CK9 INTEREST EARNED ON OCCIDENTAL PETROLEUM 2.600% 4/15/22$1 PV ON 0.0000 0.000000 43,550.00 0.00 0.00 3350000.0000 SHARES DUE 4/15/2019 04/15/2019 89238BABB INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 4976.2300 0.0000 0.000000 4,976.23 0.00 0.00 SHARES DUE 4/15/2019$0.00175/PV ON 2,843,557.73 PV DUE 4/15/19 04/15/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15/21 $1 PV ON 8525.3600 0.0000 0.000000 8,525.36 0.00 0.00 SHARES DUE W15/2019$0.00236/PV ON 3,615,000.00 PV DUE 4115119 04/16/2019 912796UX5 INTEREST EARNED ON U S TREASURY BILL 4116/19$1 PV ON 7500000.0000 0.0000 0.000000 9,446.17 0.00 0.00 SHARES DUE 4/16/2019 7,500,000 PAR VALUE AT 100% 04/18/2019 CASH RECEIPT INCOMING WIRES WIRE REC'D 4/18119 0.0000 0.000000 55,000p00.00 0.00 0.00 04/18/2019 CASH RECEIPT INCOMING WIRES WIRE REC'D 4118119 0.0000 0.000000 36,000,000.00 0.00 0.00 04/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18120$1 PV ON 1414,5400 0.0000 0.000000 1,414.54 0.00 0.00 SHARES DUE W18/2019$0.00101/PV ON 1,402,847.57 PV DUE 4/18119 04/18/2019 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1/21/20$1 PV ON 100.2200 0.0000 0.000000 100.22 0.00 0.00 SHARES DUE 4/18/2019$0.00131/PV ON 76,602.22 PV DUE 4/18119 04/18/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 4609.2500 0.0000 0.000000 4,609.25 0.00 0.00 SHARES DUE 4/18/2019$0.00149/PV ON 3,090,000.00 PV DUE 4/18/19 04/18/2019 43814WAB1 INTEREST EARNED ON HONDA AUTO 2.750% 9/20/21 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 4/8/2019$0.00229/PV ON 4,395,000.00 PV DUE 4/18/19 04/18/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00 SHARES DUE W18/2019$0.00251/PV ON 1,710,000.00 PV DUE 4/18119 6 Of U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP ld Explanation Jnit� Price Net Cash Amt Cost Gain)!-� 04/22/2019 36225CAZ9 INTEREST EARNED ON G N M A 11#0800234.125%12/20/26$1 PV ON 61.1500 0.0000 0.000000 61.15 0,00 0.00 SHARES DUE 4/20/2019 MARCH GNMADUE 4120119 04/22/2019 36225CC20 INTEREST EARNED ON G N M A 11#080088 3.625% 6/20/27$1 PV ON 52.3400 0.0000 0.000000 52.34 0.00 0.00 SHARES DUE 4/20/2019 MARCH GNMADUE 4120119 04/222019 36225CNM4 INTEREST EARNED ON G N M A 11#080395 3.625% 4/20130$1 PV ON 21.4700 0.0000 0.000000 21.47 0.00 0.00 SHARES DUE 4/20/2019 MARCH GNMA DUE 4120119 04/22/2019 36225CN28 INTEREST EARNED ON G N M A 11#080408 3,625% 5/20/30$1 PV ON 169.3800 0.0000 0.000000 169.38 0.00 0.00 SHARES DUE 4/20/2019 MARCH GNMA DUE 4120119 04/22/2019 36225DCB8 INTEREST EARNED ON G N M A 11#080965 3.750% 7/20/34$1 PV ON 155.6600 0.0000 0.000000 155.66 0.00 0.00 SHARES DUE 4/20/2019 MARCH GNMADUE 4120119 04/22/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 822/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 4/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 4/21/19 04/222019 94974BFU9 INTEREST EARNED ON WELLS FARGO COM MTN 2.125% 4/22119$1 PV ON 0.0000 0.000000 15,937.50 0.00 0.00 1500000.00W SHARES DUE 4/222019 INTEREST ON 4/=9 MATURITY 04/22/2019 912828TR1 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.000% 9/30119 0.0000 0,000000 6,010.93 0.00 0.00 04/22/2019 912828H52 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.250% 1131120 0.0000 0.000000 -13,984.81 0.00 0.00 04/23/2019 94988J5G8 PAID ACCRUED INTEREST ON PURCHASE OF WELLS FARGO MTN 2.150%1V06119 0.0000 0.000000 4,090.97 0.00 0.00 04/24/2019 06051GHF9 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF AMERICA 3.550% 3105/24 0.0000 0.000000 -14,012.64 0.00 0.00 04/25/2019 03215PFN4 INTEREST EARNED ON AMRESCO 3.5397% 6125/29$1 PV ON 394,5100 0.0000 0.000000 394.51 0.00 0.00 SHARES DUE 4/25/2019$0.00295/PV ON 133,743.29 PV DUE 4125/19 04/25/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 3188.2500 0.0000 0.000000 3,188.25 0.00 0.00 SHARES DUE 4/25/2019$0.00354/PV ON 900,000.00 PV DUE 4125/19 04/25/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 925/43$1 PV ON 3993.3800 0.0000 0.000000 3,993.38 0.00 0.00 SHARES DUE 425Y2019$0.00542/PV ON 737,239.09 PV DUE 4125/19 04/25/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01128$1 PV ON 58.3600 SHARES 0.0000 0.000000 58.36 0.00 0.00 DUE 4/252019 MARCH FNMA DUE 4125/19 0425/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 451.5600 0.0000 0.000000 451.56 0.00 0.00 SHARES DUE 4/252019 MARCH FNMA DUE 4/25/19 0425/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/0120$1 PV ON 1000.1500 0.0000 0.000000 1,000.15 0.00 0.00 SHARES DUE 425/2019 MARCH FNMA DUE 4/25/19 04/252019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% W01136$1 PV ON 421.3700 0.0000 0.000000 421.37 0.00 0.00 SHARES DUE 4/252019 MARCH FNMA DUE 4/25/19 04/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 7.6400 SHARES 0.0000 0.000000 TIM 0.00 0.00 DUE 4/252019 MARCH FNMA DUE 4125/19 0425/2019 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 736.8600 0.0000 0.000000 736.86 0.00 0.00 SHARES DUE 4/252019 MARCH FNMA DUE 4/25/19 04/25/2019 31406XW r5 INTEREST EARNED ON F N M A#823358 4.722% 2101135$1 PV ON 440.2700 0.0000 0.000000 440.27 0.00 0.00 SHARES DUE 425/2019 MARCH FNMA DUE 4/25/19 7 of8 U.S. Bank Transaction History 04/01/2019 Thru 04/30/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash�t Cost GainlLoss 04/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON 83.6600 SHARES 0.0000 0.000000 83.66 0.00 0.00 DUE 4/25/2019 MARCH FNMA DUE 4/25/19 04/25/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01136$1 PV ON 832.1200 0.0000 0.000000 832.12 0.00 0.00 SHARES DUE 4/25/2019 MARCH FNMA DUE 4/25/19 04/25/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 42.0500 0.0000 0.000000 42.05 0.00 0.00 SHARES DUE 4/25/2019 MARCH FNMA DUE 4/25/19 04/25/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 68.6300 0.0000 0.000000 68.63 0.00 0.00 SHARES DUE 4/25/2019 MARCH FNMA DUE 4/25/19 04/25/2019 31397QREG INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25141 $1 PV ON 545.8600 0.0000 0.000000 545.86 0.00 0.00 SHARES DUE 4/25/2019$0.002641PV ON 206,927.78 PV DUE 4125/19 04/25/2019 78445JAA5 INTEREST EARNED ON S L M A 4.27063% 4125123$1 PV ON 158.7000 SHARES 0.0000 0.000000 158.70 0.00 0.00 DUE 4/25/2019$0.010681PV ON 14,864.50 PV DUE 4/25/19 04/25/2019 06406HCZO PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NY MELLO MTN 2.150% 0.0000 0.000000 -5,464.58 0.00 0.00 2124/20 04/25/2019 912828W48 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2,125% 2129/24 0.0000 0.000000 -32,336.96 0.00 0.00 04/26/2019 912828WUG BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 23296.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/26/2019 912828WUG FED BASIS OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 23296.00 UNITS 0.0000 0.000000 0.00 23,296.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/26/2019 69353RDZ8 PAID ACCRUED INTEREST ON PURCHASE OF PNC BANK NA MTN 2.400%10/1B/19 0.0000 0.000000 -533.33 0.00 0.00 04/26/2019 912828WUG PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 23296.0000 23,296.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 04/26/2019 912828WUG STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 23296.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 04/30/2019 912828T67 INTEREST EARNED ON U S TREASURY NT 1.250%10/31/21$1 PV ON 6000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 4/30/2019 04/30/2019 9128281-99 INTEREST EARNED ON U S TREASURY NT 1.375%10/31/20$1 PV ON 0.0000 0.000000 68,750.00 0.00 0.00 10000000.0000 SHARES DUE 4/30/2019 04/30/2019 912828F62 INTEREST EARNED ON U S TREASURY NT 1.500%10/31/19$1 PV ON 25000000000 0.0000 0,000000 18,750.00 0,00 0.00 SHARES DUE 413 012 01 9 TOTAL OTHER TRANSACTIONS 45,656.0000 91,866.72A.91 42,205.47 0.00 8 Of OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 05/01/19 05/22/19 AGENDA REPORT Item Item Number 2 fi Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 GENERAL MANAGER'S RECOMMENDATION Approve a Cost Sharing Agreement between the Orange County Sanitation District and the City of Anaheim for traffic signal construction in conjunction with the Orange-Western Sub-Trunk Rehabilitation, Contract No. 3-64A, for an amount not to exceed $220,000. BACKGROUND Orange-Western Sub-Trunk Rehabilitation, Contract No. 3-64A, the most north easterly section of the Rehabilitation of the Western Regional Sewers, Project No. 3-64, rehabilitates approximately 2.6 miles of existing 21-inch sewers along Orange Avenue and Western Avenue within the Cities of Anaheim, Cypress, and Buena Park. Three intersections and two school pedestrian crossings within the City of Anaheim (City) will be impacted by the project. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Ensure the public's money is wisely spent PROBLEM Construction of the project will damage traffic sensor loops and variable signal timers at three intersections and two school pedestrian crossings in the City. Normally, the Orange County Sanitation District (Sanitation District) would replace the traffic loops after construction. In this case, the City would also require compensation for labor to manually change signal timing twice per day until the work is completed. PROPOSED SOLUTION The City intends to replace in-ground traffic loops with networked cameras for better traffic management. The City has proposed to replace the impacted traffic loops with cameras prior to construction of the Orange-Western Sub-Trunk Rehabilitation, Contract No. 3-64A, which would eliminate the need for the Sanitation District to replace the loops Page 1 of 2 and the need for the City to manually change signal timing. In return for a negotiated fee of $220,000, the City would waive any work required for the traffic loops, signal timing, and public-works related inspection fees. TIMING CONCERNS The agreement requires approval so the detection cameras can be installed prior to construction, currently scheduled to start in November 2019. RAMIFICATIONS OF NOT TAKING ACTION Without the Cooperative Agreement, the impacted intersections would cause traffic impacts to the traveling public throughout the construction phase. The Sanitation District would have to reinstall the magnetic loops after the project is completed and the streets are repaved. Staff estimates more than $300,000 of additional costs would be incurred for loop replacement, charges for the City's costs to manually change signal timing, inspection and permit fees, and less favorable work hours than those the City has accepted in association with this agreement. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA The Sanitation District prepared an Environmental Impact Report (EIR) entitled, Final Environmental Impact Report forThe Rehabilitation of Western Regional Sewers, Project No. 3-64. The Board certified the EIR on March 22, 2017. The Sanitation District filed a Notice of Determination on March 23, 2017. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation DistricPs Purchasing Ordinance. This item has been budgeted. (FY2018-19 Budget Update, Appendix, Section 8, Page 24, Project No. 3-64). The expense of this agreement will be offset by the savings in the cost of the construction contract. 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: • Cooperative Agreement with City of Anaheim HK:dm:gc Page 2 of 2 COST SHARING AGREEMENT BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND THE CITY OF ANAHEIM FOR CONSTRUCTION OF CITY FACILITIES IN CONJUNCTION WITH THE REHABILITATION OF WESTERN REGIONAL SEWERS PROJECT NO. 3-64 THIS AGREEMENT ("Agreement"), is made and entered into on this day of May, 2019,by and between the: ORANGE COUNTY SANITATION DISTRICT, a County Sanitation District,hereinafter referred to as "OCSD"; AND CITY OF ANAHEIM, California, a Municipal Corporation, hereinafter referred to as "City." OCSD and City are sometimes hereinafter individually referred to as `Party" and 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 seq.,providing for the ownership, operation, and maintenance of waste collection, treatment, and disposal facilities within Orange County,California; and WHEREAS, City is a charter city and municipal corporation duly organized and validly existing under the laws of the State of California and its charter, with the power to carry on its business as it is now being conducted under the statutes of the State of California; and WHEREAS, OCSD owns, operates and maintains a sewer main within the City located beneath streets called Orange Avenue and Western Avenue("Sewer Facility"); and WHEREAS,this Sewer Facility currently consists of one 21-inch diameter sewer pipeline which OCSD intends to rehabilitate as part of a project known as Orange-Western Sub-Trunk Rehabilitation,Project 3-64A ("Project 3-64A"); and WHEREAS, the construction of Project 3-64A will damage certain traffic loops located in the vicinity of the Sewer Facility that are owned and operated by City; and WHEREAS, it is mutually advantageous for City to install certain fiber communication networks and equipment within the Project 3-64A corridor before construction of Project 3-64A to provide uninterrupted traffic management during and after construction of Project 3-64A; and 1 1399455.2 WHEREAS, within the Project 3-64A corridor, the City would like to install fiber communication network, traffic cameras and associated equipment prior to the start of Project 3- 64A construction for the following intersections:Orange Avenue at Knott Avenue,Orange Avenue at Western Avenue, Orange Avenue at the Pedestrian Crossing signal west of Knott Avenue, Western Avenue at Lincoln Avenue, and Western Avenue at the Pedestrian Crossing signal south of Lincoln Avenue (hereinafter, collectively, these projects shall be referred to as the "Traffic Signal Construction"); and WHEREAS, the City requires the Traffic Signal Construction work to be performed by the City and their Contractors; and WHEREAS,it is advantageous to both Parties for the Traffic Signal Construction to occur prior to construction of Project 3-64A to minimize the impacts to the environment,the public,and the surrounding homeowners; and WHEREAS,the City agrees to procure and install all equipment necessary for the Traffic Signal Construction; and WHEREAS, the Parties agree that the Traffic Signal Construction will allow OCSD to forego the replacement or repair of any traffic loops that are damaged or removed due to construction of Project 3-64A; and WHEREAS, OCSD agrees to pay to City one lump-sum payment of TWO HUNDRED AND TWENTY THOUSAND DOLLARS AND NO/100 CENTS ($220,000.00) for costs associated with the procurement, installation and commissioning of the Traffic Signal Construction,including,but not limited to,City permit fees,and City construction inspection fees; and WHEREAS, the Parties agree to enter into this Agreement for the sharing of costs associated with the procurement, installation and commissioning of Traffic Signal Construction and related City permit fees and City construction inspection fees in a manner agreeable to both Parties and subject to the terms and conditions set forth below. 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 will work cooperatively in order to perform the Traffic Signal Construction in a manner that minimizes the costs and impacts to the public. The specific terms and conditions governing the elements of this Agreement we set forth herein. 2 1399455.2 Section 3: OCSD's Specific Obligations. A. OCSD will be responsible for modifying the Project 3-64A plans and specifications to account for the changes involving the Traffic Signal Construction. B. OCSD shall provide to City the modified Project 3-64A plans and specifications for review. C. OCSD shall make one lump-sum payment to City for costs associated with the Traffic Signal Construction in accordance with Section 5 of this Agreement. Section 4: City's Specific Obligations. A. City shall make reasonable efforts to complete all procurement, installation, construction and commissioning activities associated with the Traffic Signal Construction prior to November 21,2019. The affected locations are identified in the table depicted in Section 5 below. B. City shall consider all Public Works permit and Inspection Fees that may apply to OCSD due to construction of Project 3-64A to be included in the lump sum payment for Traffic Signal Construction. City shall not impose or assess any additional or separate Public Works permit and Inspection Fees against OCSD due to construction of Project 3-64A. C. City shall be responsible for compliance with the California Environmental Quality Act ("CEQA") (Pub. Resources Code § 21000, et seq.) with respect to the Traffic Signal Construction and related activities. City shall serve as lead agency for Traffic Signal Construction for purposes of CEQA and will supply OCSD with copies of City-approved environmental documents, if any, for OCSD's files. D. City shall provide OCSD with monthly updates regarding Traffic Signal Construction activities, and City shall promptly notify OCSD upon completion of Traffic Signal Construction. E. City shall be responsible for ensuring that the Traffic Signal Construction and related activities comply with all applicable federal,state,and local laws,rules and regulations. Section 5: Traffic Construction Locations and Total Costs. The table below provides a tabular account of the locations for Traffic Signal Construction 3 1399455.2 No. Traffic Signal Construction Locations 1 I Orange Avenue at Knott Avenue 2 Oran e Avenue at WesternAvenue 3 Orange Avenue at Pedestrian Crossing signal west of Knott Avenue 4 1 Western Avenue at Lincoln Avenue 5 1 Western Avenue at Pedestrian Crossing signal south of Lincoln Avenue A. OCSD shall not be responsible for any costs associated with any design modification necessary to accommodate the Traffic Signal Construction performed by City at the locations identified in the table above and as further described herein. B. OCSD shall make a single lump-sum payment of TWO HUNDRED AND TWENTY THOUSAND DOLLARS AND NO/100 CENTS ($220,000.00) to City for costs associated with the procurement, installation, and commissioning of the Traffic Signal Construction. OCSD shall have no obligation to reimburse City for any costs associated with the Traffic Signal Construction, including City permit fees and City construction inspections fees, in excess of TWO HUNDRED AND TWENTY THOUSAND DOLLARS AND NO/100 CENTS ($220,000.00). Section 6: Timingof f Payment OCSD shall make the single lump-sum payment of TWO HUNDRED AND TWENTY THOUSAND DOLLARS AND N0/100 CENTS ($220,000.00)to City within thirty (30) days of OCSD's approval and execution of this Agreement. Section 7: Indemnification. A. OCSD will indemnify, defend and hold City, 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 as a result of any work or action performed by or on behalf of OCSD,its officers,agents,employees,contractors or consultants, save and 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. B. City will indemnify, defend and hold OCSD, 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 City, its officers, agents, employees, contractors, or consultants, with respect to the Traffic Signal Construction, 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. City will also indemnify, defend and hold OCSD, its elected and appointed officials, officers, agents, employees, and consultants, harmless from any and all actions, suits, claims, liability, cost or expense which may arise or is claimed to have arisen as a result of City's denial of any change order or part thereof. 4 1399455.2 Section 8: Tenn. This Agreement will remain in full force and effect until the specified obligations of both Parties have been fulfilled. Notwithstanding the foregoing, either Party may terminate this Agreement with or without cause upon giving the other Party one hundred (100) calendar days prior written notice. If this Agreement is terminated, City will be paid for those reimbursable costs incurred up to the date of termination, in accordance with Section 5. Section 9: Agents. Any contractor or subcontractor performing work in connection with the work described herein on behalf of either Party will be conclusively deemed to be the servant and agent of each respective Party employing said contractor or subcontractors hereof, acting on behalf and within the scope of such contractor and subcontractor employment for said Party. Section 10: Notices. All notices or other communications required or permitted hereunder will be in writing and will be personally delivered or sent by registered or certified mail,postage prepaid,return receipt requested, delivered or sent by electronic transmission, and will 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 72 hours by letter mailed or delivered. Notices or other communications will be addressed as follows: To OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Attention: Kelly Lore, Clerk of the Board Facsimile: (714) 962-0356 To City: City of Anaheim—Public Works Department 200 South Anaheim Boulevard Anaheim, CA 92805 Attention: Rudy Emami, Director of Public Works Facsimile: (714) 714-765-5176 Section 11: 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 will lie in the Superior Court of California for Orange County. Section 12: No Third Party Beneficiaries. This Agreement is entered into by and for City and OCSD, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. Section 13: Force Maieure. Except for the payment of money, neither Party will 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. 5 1399455.2 Section 14: Governing Law. This Agreement will be governed by the laws of the State of California. Section 15: 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 16: Waiver. A waiver of a breach of the covenants, conditions, or obligations under this Agreement by either Party will not be construed as a waiver of any succeeding breach of the same or other covenants, conditions, or obligations of this Agreement. Section 17: Modification. Alteration, change, or modification of this Agreement will be in the form of a written amendment,which will be signed by both Parties. Section 18: Severabiliri. 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 will continue in full force and effect. Section 19: 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 by two or more counterparts, each of which shall be deemed an original,but which together shall constitute a single Agreement. [SIGNATURES ON THE NEXT PAGE] 6 1399455.2 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 By: David John Shawver, Chair, Board of Directors APPROVED AS TO FORM: GENERAL COUNSEL ATTEST: By: By: Bradley R. Hogin, Kelly Lore, Orange County Sanitation District Clerk of the Board, Board of Directors CITY OF ANAHEIM By: Harry Sidhu,Mayor APPROVED AS TO FORM: ATTEST: ANAHEIM CITY ATTORNEY By: By: Bryn M. Morley, Theresa Bass, City Clerk Deputy City Attorney 7 1399455.2 OPERATIONS COMMITTEE Melting Dat0 TOBE.Or Dir. 05/01/19 05f22/19 AGENDA REPORT Item Item Number 3 7 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2019. BACKGROUND The Capital Improvement Program involves awarding and managing many construction and consulting contracts. In 2008, the Orange County Sanitation District (Sanitation District) Board of Directors began awarding contingencies along with construction and consulting contracts. The contingencies allow the General Manager to approve change orders for construction contracts and amendments for consulting contracts up to the amount of the approved contingency. This practice reduces administrative costs, expedites resolution of project issues that arise, helps avoid Contractor delay claims, and facilitates efficient management of many contracts. The Capital Improvement Program Contract Performance Report summarizes construction and consulting contract performance and activities for the quarter ending March 31, 2019. This report is updated quarterly. RELEVANT STANDARDS • Ensure the public's money is wisely spent ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Capital Improvement Program Contract Performance Report for the period ending March 31, 2019 JM:dm:gc Page 1 of 1 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending March 31, 2019 DATE: April 22, 2019 TO: Orange County Sanitation District Board of Directors FROM: James D. Herberg, General Manager Through: Kathy Millea, Director of Engineering This report summarizes the status, activities, and performance of public works construction contracts and consultant agreements. This report also identifies the names and status of projects being performed under master budgets for planning studies, research, small construction projects, O&M capital projects, and information technology projects. PART 1 - CONSTRUCTION CONTRACTS When the Orange County Sanitation District (Sanitation District) Board awards a construction contract, a contingency is also approved which allows the General Manager to approve contract change orders up to the amount of the contingency. One of the purposes of this report is to document how that contingency is managed and how much of the contingency is utilized.A project's change order rate can only be documented when the work is complete. As such, the change order performance charts in this report are based only on projects closed since the Board began approving contingencies in 2008. Activity in Last Quarter FE14-05 Plant No. 1 Fleet Services UST Leak Contract Award 23-Jan-19 Remediation P2-98B B/C-Side Primary Clarifiers Interim Contract Award 23-Jan-19 Repair at Plant 2 J-126C NFPA 820 Improvements at Plant Contract Award 27-Mar-19 No. 1 and Plant No. 2 Page 1 of 5 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending March 31, 2019 Anticipated Activity in Next Quarter P2-92A Truck Loading Bay Odor Control at Final Completion 13-May-19 Plant 2 FE17-05 Plant 1 ICS Network Extension Contract Award 22-May-19 6-17 District 6 Trunk Sewer Relief Final Completion 30-Apr-19 J-126L Various Final Completion 14-Jun-19 PART 2 - DESIGN CONSULTANT AGREEMENTS The Sanitation District engages design consultants through Professional Design Services Agreements (PDSAs), Professional Consultant Services Agreements (PCSAs), and Master Professional Services Agreements (Master Agreements). PDSAs are used to obtain design engineering services, and PCSAs are a subsequent agreement with the design consultant to provide support services during construction. Activity in Last Quarter PS17-02 Guidelines for Development in the Final Study 15-Jan-19 Area of OCSD Facilities Received PS17-08 CEQA- Facilities Master Plan PSA Award 27-Feb-19 J-117B Ocean Outfall System Rehabilitation PSA Award 27-Mar-19 PS17-03 Active Fault Location Study at Plant PSA Award 27-Mar-19 No. 2 Page 2 of 5 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending March 31, 2019 Anticipated Activity in Next Quarter P1-133 Primary Sedimentation Basis 6-31 RFP 30-Apr-19 Reliability Improvements at Plant No. 1 Advertisement P1-132 Uninterruptable Power Supply RFP 06-May-19 Improvements at Plant 1 Advertisement 7-66 Sunflower and Red Hill Interceptor RFP 14-May-19 Repairs Advertisement J-98 Electrical Power Distribution System RFP 20-May-19 Improvements Advertisement 5-68 Newport Beach Pump Station Odor RFP 28-May-19 Control Improvements Advertisement PS15-06 Seismic Evaluation of Structures at Final Study 04-Jun-19 Plant Nos. 1 and 2 Received 3-67 Seal Beach Pump Station Replacement RFP 21-Jun-19 Advertisement Master Agreements are issued to a pool of pre-qualified consultants for smaller projects. On those smaller projects, the Sanitation District solicits task order proposals from three or four of the firms, and awards a task order to the most qualified consultant. There are currently seven sets of Master Agreements. 2009 Master Design Agreements (expired) 2012 Master Design Agreements (expired) 2015 Master Design Agreements (expired) 2018 Master Design Agreements 2017 Master Agreements for CEQA Studies 2017 Master Agreements for Collection Planning Studies 2017 Master Agreements for Wastewater Treatment Planning Studies Page 3 of 5 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending March 31, 2019 The three Master Design Agreements from 2009, 2012, and 2015 have expired, meaning no new task orders can be issued under them, but previously-issued task orders remain active until completed. Task Orders are limited by Sanitation District Ordinance No. OCSD-52 $300,000 per task order. PART 3 — MASTER BUDGET PROJECTS The Board-adopted budget for Fiscal Years 2018-19 and 2019-20 includes master program budgets that allow staff to more quickly initiate, execute, and manage smaller projects that fit within the scope of a particular program. The projects chartered under these program budgets are referred to as sub-projects, and are managed to the same standards as projects specifically listed in the adopted budget. A status table for each of these programs listing the sub-projects is attached. Master Program Title Status Table Planning Studies Program Table 3.1 Research Program Table 3.2 Small Construction Projects Program Table 3.3 Information Technology Capital Program Table 3.4 Operations & Maintenance Capital Program Table 3.5 PART 4—STAFF AUGMENTATION CONTRACT In May 2016, the Sanitation District Board of Directors approved a $41 million professional services agreement with Jacobs Project Management Co. to provide supplemental engineering and support staff services for a four-year term with the option of three one-year renewals. The benefits of using staff augmentation, as opposed to hiring full-time staff or limited-term employees, include rapid mobilization of highly skilled/technical staff, flexibility to change the mix of staff positions on an immediate and as-needed basis, the ability to reduce staff as workloads decrease, access to technical experts to support special tasks, and access to staff with wastewater project experience. CHARTS AND TABLES Chart 1.1 — Program Overview Chart 1.2 — Change Order Rates Over Time—All Closed Projects Chart 1.3—Change Order Rates Over Time—Collections Projects Chart 1.4 — Change Order Rates Over Time— Plant Projects Page 4 of 5 ORANGE COUNTY SANITATION DISTRICT Capital Improvement Program Contract Performance Report For the period ending March 31, 2019 Table 1.1 —Summary of Closed Construction Contracts by Category Table 1.2—Contract Performance —Active Construction Contracts Table 1.3—Active Construction Contracts by Contractor Table 2.1 —Active Design Consultant Contracts by Consultant Table 2.2—Activity Report for 2012 Master Professional Design Services Agreements Table 2.3—Activity Report for 2015 Master Professional Design Services Agreements Table 2.4—Activity Report for 2018 Master Professional Design Services Agreements Table 2.5—Activity Report for 2017 Master Agreements for CEQA Studies Table 2.6—Activity Report for 2017 Master Agreements for Collection Planning Studies Table 2.7—Activity Report for 2017 Master Agreements for Wastewater Treatment Studies Table 3.1 — Planning Studies Status Report Table 3.2— Research Program Status Report Table 3.3— Small Construction Project Program Status Report Table 3.4— Information Technology Capital Program Status Report Table 3.5— Operations & Maintenance Capital Program Status Report Table 4.1 — Staff Augmentation Contract Status Table 4.2—Staff Augmentation Labor Summary Page 5 of 5 Chart 1.1 Program Overview CUMULATIVE DATA THROUGH QUARTER ENDING MARCH 31,2019 3 QTR FY18/19 •Collections1100 .Collectians •Plant ProleRs .Plant Projects CLOSED PROJECTS-DISTRIBUTION BY CATEGORY* ACTIVE PROJECTS-DISTRIBUTION BY CATEGORY Total Base Contract Value $ 1,254,226,489 Total Base Contract Value $ 386,555,900 Collections $ 312,548,525 25.0% Collections $ 66,139,383 17.1% Plant Projects $ 941,677,964 75.0% Plant Projects $ 320,416,517 82.9% Total Base#of Contracts 76 Total Base#of Contracts 22 Collections 31 Collections 4 Plant Projects 45 Plant Projects 18 •Projects closed since 2 QTR FY07/08 Chart 1.2 Change Order Rates Over Time All Closed Projects 7.00% 61% 6.00% s.m 5.3% 0% 5.00% Q.pS 0. 6.8% 8'n 08% )% 0.)%A.]%6.)% 5.M4.6% 4.00% 3.8% g8jy 3.8% 18% 3.8% 3.5% 3.0% 3.5% 3.00% 2.00% 1.00% No Contracts closed in the last quarter 0.00% a a a a a a a a a a a o 0 0 o N o o N o 0 0 0 � � crecuod8888Ei88Ei88Ei88aEi88888 od 88888888888822 Chart 1.3 Change Order Rates Over Time Closed Collections Projects 14.00% 12.35% 12.00% L6.77% 10.00% 9.53% 8.91% 9.08% 8.00% ].14% 7.14% 7.14 4%7.10% 6.19% 88% 5.81 6.00% 5.51% 4.00% No Contracts closed in the last quarter 2.00% 0.00% a a a a a a a a a a a 0 0 0000coc8888Ei888Ei8Ei8 8888 d d888888888888 d Chart 1.4 Change Order Rates Over Time Closed Plant Projects 7.00% 6.00% 5.73% 5.00% 4.31% 4.28% 4.36% 4.19% 4.18% 411% 4.20% 4.04% 4.00% 3.89% 3.11% 3.00% 2.88% 2.90% 2.90% 2.70% 2.59% 2.00% No Contracts closed in the last quarter 1.00% 0.00% c c 8 8 c c S 8 c c S 8 c c 0 0 �u �u �u Ef m w aaca 0a c 888 8 "a8c8 "a8c8 "a8c8 "a8c8 "a8c8 8 88c888c8888888 Table 1.1 Summary of Closed Construction Contracts by Category Project Category Original Contract Approved Cha-� Final 9w Change Order Category Value Orders Contract Value Percentage Change Order Goal COLLECTIONS $312,548,525 $28,378,795 $340,927,320 9.08% 6.50% PLANT PROJECTS $941677 964 $38 019 650 $979 697 614 4.04% 2.75% Total $1,254,226,489 $ 66,398,445 $1,320,624,934 5.29% 5.00% Table 1.2 Contract Performance - Active Construction Contracts Construction Original Contract Approved Change Current Contract Project No %Complete Amount Orders Amount Collections 2-726 24% $ s8,24z,000 $ - $ 58,242,000 2-41-8 0% $ 28,090,802 $ - $ 2,809,082 6-17 95% $ 3,699,301 $ 409,174 $ 4,108,475 FE15-10 100% $ 1,389,000 $ - $ 1,389,000 Plant Projects ■ FE14-05 0% $ 648,675 $ - $ 648,675 FE15-07 75% $ 1,790,000 $ 23,562 $ 1,813,562 FE16-10 100% $ 529,350 $ 43,696 $ 573,046 J-117A 99% $ 12,609,012 $ 635,038 $ 13,244,050 J-117B 2% $ 90,200,000 $ - $ 90,200,000 J-126AH 77% $ 452,757 $ - $ 452,757 J-126BFG 58% $ 557,759 $ - $ 557,759 J-126E 100% $ 418,000 $ - $ 418,000 J-1261 0% $ 881,800 $ - $ 881,800 J-126JK 0% $ 3,637,601 $ - $ 3,637,601 J-126L 43% $ 212,700 $ - $ 212,700 J-126PQ 0% $ 786,000 $ - $ 786,000 P1-101 99% $ 126,908,300 $ 11,024,152 $ 137,932,452 PI-115B 65% $ 2,235,563 $ 59,634 $ 2,295,197 P2-110 78% $ 16,730,000 $ 1,095,746 $ 17,825,746 P2-92 93% $ 49,850,000 $ 1,400,093 $ 51,250,093 P2-92A 98% $ 3,304,000 $ 224,179 $ 3,528,179 P2-98B 0% $ 8,665,000 $ - $ 8,665,000 Table 1.3 Active Construction Contracts by Contractor Current Contract Contractor/Project Number Project Name Value Access Pacific J-126E Roof Fall Protection and Skylights $ 418,000 Amtek Construction J-126AH Hot Surfaces Insulation P3/P2/Bay Bridge PS/Slater PS $ 452,757 J-126BFG Lights, Ladder and Walkway Hazards $ 557,759 Charles King Company, Inc. 6-17 District 6 Trunk Sewer Relief $ 3,699,301 FE15-10 East Lido Force Main Rehabilitation $ 1,389,000 Engineering/Remediation Resources Group, Inc. FE14-05 Plant No. 1 Fleet Services UST Leak Remediation $ 648,675 Filanc FE15-09 CenGen Hot Water Pipe Bracing at Plant 1 $ 94,784 Flatiron West Inc P2-130 Consolidated Demolition and Utility Improvements at Plant 2 $ 16,730,000 Griffith Company 2-41-8 SARI Rock Stabilizers Removal $ 2,809,082 Helix Electric, Inc J-1261 Exit Signs Exit Lights Electrical Disconnects Gas Detection $ 881,800 FE15-07 Secondary Treatment and Plant Water VFD Replacement at Plant 1 $ 1,797,000 CIA Construction J-126L Various $ 212,700 Kiewit Infrastructure West Co. P2-92A Truck Loading Bay Odor Control at Plant 2 $ 3,304,000 Myers&Sons Construction, LLC P2-98B B/C-Side Primary Clarifiers Interim Repair at Plant 2 $ 8,665,000 CDC Engineering and Technology P1-115B Rehabilitation of Fleet Services Building, Building 8 and Paving Area $ 2,235,563 Olsson Construction, Inc. Table 1.3 Active Construction Contracts by Contractor Current Contract Contractor/Project Number Project Name Value 1-126JK Stairs, Hatches,Walkway Hazards, Ladders, Guardrails, Roof Fall Protection $3,637,601 OHLUSA 2-72B Newhope-Placentia Trunk Replacement,Segment B $ 58,242,000 Shimmick Construction Co., Inc. J-117A Interplant Effluent Pipeline Rehabilitation $ 12,609,012 J-117B Outfall Low Flow Pump Station $ 90,200,000 P2-92 Sludge Dewatering and Odor Control at Plant 2 $ 49,850,000 Tharsos, Inc. J-126PQ Ladders, Hatches, Roof Fall Protection $ 786,000 WM Lyles Company P1-101 Sludge Dewatering and Odor Control at Plant 1 $ 126,908,300 Table 2.1 Active Design Consultant Contracts by Consultant Project Agreement Original Number of ents Number Project Name Type Value Amendments a AECOM Technical Services,Inc. $ 20,923,626 8 $ 748,273 3-64 Rehabilitation of Western Regional Sewers PDSA $ 17,639,250 7 $ 721,258 PI-100 Digester Rehabilitation at Plant l PCSA $ 2,761,337 0 $ - PS-129 Return Activated Sludge Piping Replacement at Activated Sludge Plant No.1 PDSA $ 523,039 1 $ 27,015 Arcadis $ 9,677,000 3 $ 1,795,434 5-57 Bay Bridge Pump Station Replacement PDSA $ 7,137,000 2 $ 295,434 J-126 Safety Improvements Program PDSA $ 1,540,000 1 $ 1,500,000 Black&Veatch $ 18,690,957 5 $ 1,279,488 P2-98 Primary Treatment Rehabilitation at Plant 2 PDSA $ 18,141,423 5 $ 1,279,488 P2-9BB B/C-Side Primary Clarifiers Interim Repair at Plant 2 PCSA $ 549,534 0 $ - Brown and Caldwell $ 28,495,832 5 $ 951,881 5-60 Newport Force Main Rehabilitation PCSA $ 2,231,925 4 $ 839,714 J-117A Interplant Effluent Pipeline Rehabilitation PCSA $ 1,121,666 1 $ 112,167 J-124 Digester Gas Facilities Rehabilitation PDSA $ 11,770,000 0 $ - P2-92 Sludge Dewatering and Odor Control at Plant 2 PCSA $ 4,798,328 0 $ - J-117B Outfall Low Flow Pump Station PCSA $ 8,563,913 0 $ - CarolloEngineers $ 21,317,792 9 $ 7,968,103 PI-1U5 Headworks Rehabilitation and Expansion at Plant I PDSA $ 17,528,957 4 $ 7,659,692 PS15-10 2017 Facilities Master Plan PSA $ 3,132,052 5 $ 208,411 REI7-02 Blogas Scrubber Evaluation PSA $ 656,783 0 $ - CDM Smith $ 5,319,930 0 $ P2-122 Headworks Modifications at Plant 2 for GWRS Final Expansion PDSA $ 5,319,930 0 $ - Dudek&Associates,Inc. $ 812,709 0 $ PS17-08 CEDA-Facilities Master Plan PSA $ 812,709 0 $ - GeosyntecConsultants $ 2,578,028 2 $ 132,425 P51546 Seismic Evaluation of Structures at Plant Nos.I and 2 PSA $ 2,578,029 2 $ 132,425 Hagen and Sawyer $ 697,952 0 $ SP-152 Climate Change Impact Study PSA $ 697,952 0 $ - HDREngineerin&Inc. $ 19,057,648 7 $ 3,251,999 FE16-11 Lane Channel Crossing PDCSSA $ 131,939 0 $ - PI-101 Sludge Dewatering and Odor Control at Plant 1 PCSA $ 7,140,000 3 $ 2,086,303 P3-128 Headquarters Complex,Site and Security,and Entrance Realignment Program PDSA $ 11,785,709 4 $ 1,165,696 Kennedy/Jenks Consultanu $ 695,000 0 $ P2-124 Interim Food Waste Receiving Facility PDSA $ 695,000 0 $ - Lee&go $ 11,722,178 5 $ 434,974 2-72 Newhope-Placentia Trunk Replacement PDSA $ 8,468,232 4 $ 434,974 2-72 Newhope-Placentia Trunk Replacement PCSA $ 3,253,946 1 $ - Table 2.1 Active Design Consultant Contracts by Consultant Project Agreement Original Number of Amendments Number Project Name Type Value Amendments To Date Lockwood,Andrews&Newnam,Inc(LAN) $ 505,042 0 $ PSIS-02 Edinger Pump Station Rehabilitation Study PSA $ 505,042 0 $ - ISA ASSOCIATES INC $ 420,927 1 $ PS-128 Headquarters Complex,Site and Security,and Entrance Realignment Program PSA $ 420,927 1 $ - MICHAEL BAKER INTERNATIONAL,INC. $ 930,429 1 $ 54,839 241-8 SARI Rack stabilizers Removal PCSA $ 215,129 0 $ - PS16-01 Stolrnwater Master Plan PSA $ 715,300 1 $ 54,839 PM Web Inc $ 1,022,500 2 $ 79,525 J-129 Project Management Information System PSA $ 1,022,500 2 $ 79,525 Schweitzer Engineering Laboratories(SEL) $ 1,096,074 a $ J-117B Outfall Low Flow Pump Station PSA $ 1,096,074 0 $ - StmHec Consulting Services,Inc. $ 9,835,880 5 $ (697,6891 362 Westminster Blvd Force Main Replacement PDSA $ 6,917,175 5 $ (697,689) P2-110 Consolidated Demolition and Utility Improvements at Plant 2 PCSA $ 1,499,839 0 $ - SP-196 Process Control Systems Upgrades Study PSA $ 1,398,866 0 $ - THEAUSTINCOMPANY $ 606,622 0 $ P3-135 Title 24 Access Compliance and Building Rehabilitation Project PCSA $ 606,622 0 $ - Woodard&Curran $ 3,092,675 3 $ 19,372 6-17 District 6 Trunk Sewer Relief PCSA $ 290,000 1 $ - PSIS-08 Collections Capacity Evaluation Study PSA $ 2,802,675 2 $ 19,372 Table 2.2 Activity Report for 2012 Master Professional Design Services Agreements Firm Task Order Status PROJECT TITLEMESCRIPTION FY12.13 FY13-14 FY14.15 FE13-02, Repairs to Bar Screen at D Headworks at 12-00-01-01 Closed P2 $ 27,980.00 FE13-02 Amendment No.1 $ 9,200.00 FE13-02 Amendment No.2 $ 6,770.00 FR12-035,Edinger Pump Station Record Drawing $ 42,511.00 LEE&RO, INC 12-00-01-02 Closed Preparation PO#104615-OB FR12-035 Amendment No. 1 $ 10,455.00 Contract No.FE12-00-01 Closed FE13-01,(5-60)Newport Force Main Rehabilitation $ 74,600.00 12-00-01-03 FE13-01 5-60 Amendment No. 1 $ 24,943.00 FR13-020, Plant No.2 Gas Compressor Building $ 68,917.00 12-00-01-04 Open Piping Replacement FR13-020 Amendment No. 1 $ 30,568.00 FR13-020 Amendment No.2 $ 25,896.00 CUMULATIVE $ 43,950.00 $ 152,509.00 $ 125381.00 12-00-02-01 Closed FE12-06,84-inch P2 PI Line for Dist.Box B Rehab. $ 64,095.00 and Flow Meter Structure Alban.CLOSED DUDEK&ASSOCIATES, INC. FE09-04, P1 Potable Water System Improvements $ 50,472.00 PO#104616-OB 12-00-02-0240ossedContract No.FE12-00-02 FE09-04 Amendment No.1 $ 13,320.00 12-00-02-03FE14-04, Primary Influent Channels Repair at Plant l $71,841.00 CUMULATIVE $ 64,095.00 $ 63,792.00 $ 71,841.00 FR12-003,Warner Avenue Manholes StructuralRMC WATER AND ENVIRONMENT 12-00-03-01Repair Project $ 42,081.00 PO#104611-OB FR12-003 Amendment No. 1 $ 24,739.00 Contract No.FE12-00-03 12-00-03-02 Closed FR13-012,Santa Ana River Interceptor $ 56,404.00 CUMULATIVEI $ 66,820.00 1 $ 56,404.00 1E Table 2.2 Activity Report for 2012 Master Professional Design Services Agreements Firm Task Order Status PROJECT TITLE/DESCRIPTION FY12-13 FY13-14 FY14-15 TRAN CONSULTING ENGINEERS 12-00-04-01 Closed FR32-012,Slater Ave VFD Replacement $ 39,963.00 PO#104617-OB Contract No.FE12-00-04 FR12-012 Amendment No. 1 $ 26,968.00 CUMULATIVE $ 66,931.00 $ $ FE30-19, Landscaping and Miscellaneous $ 74,957.00 RBF CONSULTING 12-00-05-01 Closed Improvements Along Ellis Avenue PO#104626-OB FE10-19 Amendment No.1 $ 12,295.00 Contract No.FE12-00-05 I FE10-19 Amendment No.2 $ 5,876.00 CUMULATIVE $ 93128.00 $ $ 12-00-06-01 Closed FR12-030,P2 Solids Loading Station Truck Loading $ 15,935.00 Auger Access FE12-05, 15th St,Rocky Point and Bitter Point Pump IDS GROUP 12-00-06-02 Closed Station Fall Protection Improvements $ 40,575.00 PO#Contract No.FE FE12-05 Amendment No.1 $ 2,330.00 Contract No.FE12-00-06 12.00-06-03 Closed FE12-10, IT Server Room Cwlinq Improvements $ 43,470.00 12-00-06-04 Closed FE14-01, Plant 1 Primary Sludge Handling $6,200.00 Modifications CUMULATIVE $ 58,840.00 $ 43,470.00 $ 6,200.00 PSOMAS 12-00-07-01 Closed FE12-02, Pl Hazardous Waste Storage Relocation $ 51,400.00 PO#104610-OB Contract No. FE12-00-07 CUMULATIVE $ 51400.00 $ $ Table 2.2 Activity Report for 2012 Master Professional Design Services Agreements Firm Task Order Status PROJECT TITLEIDESCRIPTION FY12.13 FY13-14 FY14-15 FE10-21,Area 02 Craig Regional Park Manhole $ 58,440.00 12-00-08-01 Open Improvements FE10-21 Amendment No.1 $ 18,780.00 FE10-21 Amendment No.2 $ 22,780.00 GRID 12-00-08-02 Closed FE32-07, Upgrade PLC Panels at P3 and P2- $ 69,940.00 PO#104612-OB FE33-04, Plant 2 Trickling Filter Odor Control System $ 74,910.00 Contract No.FE12-00-08 Upgrade 12-00-08-03 Open FE13-04 Amendment No.1 $ 9,635.00 FE13-04 Amendment No.2 $ 14,455.00 FE13-04 Amendment No.3 $ 24,235.00 FE13-04 Amendment No.4 $ 11,095.00 CUMULATIVE $ 169840.00 $ $ 134330.00 RMS ENGINEERING&DESIGN, INC. 12-00-09-01 Closed FE12-08, P2 TF/SC Blower Insultation Modifications $ 57,351.00 PO#104625-OB Contract No.FE12-00-09 FE12-08 Amendment No. 1 $ 27,390.00 CUMULATIVE $ $ 84741.00 $ HARRIS AND ASSOCIATES PO#104613-OB Contract No.FE12-00-10 CUMULATIVE $ $ $ TOTAL $ 615 004.00 $ 400 916.00 $ 337 752.00 Table 2.3 Activity Report for 2015 Master Professional Design Services Agreements Firm Task Order Status Project Title/Description FY15-16 FY16.17 FY17-18 FE14-05, Plant No. 1 Fleet Services UST Leak $86,116.00 FE15-00-01-01 Open Remediation DUDEK FE14-05 Amendment No. 1 $53 137.00 Purchase Order No. 1054350E FE14-05 Amendment No. 1 $20 000.00 Contract No. FE15.00-01 FE15-00-01-02 Open FE15-09, CenGen Hot Water Pie Bracing at P1 $146,516.00 FE15-00-01-03 Open FE16-14, Slater Pump Station Valve Replacements $175,500.00 FISCAL YEAR TOTAL $159 253.00 $146 516.00 1 $175 500.00 LEE&RO,INC. No task orders issued Purchase Order No. 105436OB Contract No. FE15-00-02 FISCAL YEAR TOTAL $0.00 $0.00 $0.00 GHD, INC. No task orders issued Purchase Order No. 105469OB Contract No. FE15-00-03 FISCAL YEAR TOTAL $0.00 $0.00 $0.00 FE15-00-04-01 Open PS17-02Guidelines for Development in the Area o $93,186.61 AECOM Purchase Order No. 105440OB Contract No. FE15-00-04 FISCAL YEAR TOTAL $0.00 $0.00 $93,186.61 HAZEN AND SAWYER No task orders issued Purchase Order No. 105451 OB Contract No. FE15-00-OS FISCAL YEAR TOTAL] $0.00 $0.00 $0.00 Table 2.3 Activity Report for 2015 Master Professional Design Services Agreements Firm Task Order Status I Project Title/Description FY15-16 FY16-17 FY17-18 FE15-00-06-01 Open PS16-04, Rectangular Primary Clarifier Reliability $156,518.00 RMC WATER AND ENVIRONMENT Study at Plant 1 Purchase Order No. 105441 oB Contract No. FE15-00-06 FISCAL YEAR TOTAL 0.00 $0.00 $156,518.00 PROJECTLINE TECHNICAL FE15-00-07-01 Closed FE15-02, Plant No.2 Control Center Server Room $83,624.00 SERVICES, INC. HVAC Upgrade Purchase Order No. 105452OB Contract No. FE15-00-07 FISCAL YEAR TOTAL $83,624.00 $0.00 $0.00 TAIT&ASSOCIATES, INC. No task orders issued Purchase Order No. 105449OB Contract No. FE15.00-08 FISCAL YEAR TOTAL $0.00 E0.00 $0.00 BEYAZ&PATEL,INC. No task orders issued Purchase Order No. 105445OB Contract No. FE15-00-09 FISCAL YEAR TOTAL $0.00 $0.00 $0.00 IDS GROUP,INC. No task orders issued Purchase Order No. 105437OB Contract No. FE15.00-10 FISCAL YEAR TOTAL $0.00 $0.00 $0.00 KLEINFELDER,INC. No task orders issued Purchase Order No. 105433OB Contract No. FE15-00-11 FISCAL YEAR TOTAL $0.00 $0.00 $0.00 Table 2.3 Activity Report for 2015 Master Professional Design Services Agreements Finn Task Order Status Project Title/Description FY15-16 FY16.17 FY17-18 RMS ENGINEERING 8 DESIGN, INC. FE15-00-12-01 Open FE16-10, East Basin Distribution Box Repair $79,990.00 Purchase Order No. 1054390B Contract No. FE15-00-12 FISCAL YEAR TOTAL $0.00 $79,990.00 $0.00 TOTAL $242,877.00 $226,506.00 $425,204.61 Table 2.4 Activity Report for 2018 Master Professional Design Services Agreements Finn Task Order Status Project Title/Description FY18-19 FY19-20 FY20-21 No Task Orders Issued to Date AECOM Contract No. FE18-00-01 FISCAL YEAR TOTAL $0 $0 $0 2-01 Active J-127• Natural Gas Pipelines Replacement at Plant $271 964,000 Black&Veatch Nos. 1 and 2 Contract No. FE18-00-02 FISCAL YEAR TOTAL $271 964 000 $0 $0 No Task Orders Issued to Date Dudek Contract No. FE18-00-03 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date GHD Contract No. FE18-00-04 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date HDR Engineering Contract No. FE18-00-05 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date IDS Group Contract No. FE18-00-06 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date Infrastructure Engineering Contract No. FE18-00-07 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date Michael Baker International Contract No. FE18-00-08 FISCAL YEAR TOTAL $0 $0 $0 TOTAL $271,964,000 $0 $0 Table 2.5 Activity Report for 2017 Master Agreements for CEQA Studies Firm Task Order Status Project Title/Description FY18-19 FY19-20 FY20-21 No Task Orders Issued to Date HDR Engineering CEQA PLAN2017-01 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date Michael Baker International CEQA PLAN2017-02 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date Helix Environmental CEQA PLAN2017-03 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date ESA CEQA PLAN2017-04 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date AECOM CEQA PLAN2017.05 FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date LSA CEQA PLAN2017.06 FISCAL YEAR TOTAL $0 $0 $0 TOTAL $0 $0 $0 Table 2.6 Activity Report for 2017 Master Agreements for Collection Planning Studies Firm Task Order Status Project Title/Description FY17-18 FY18-19 FY19-20 No Task Orders Issued to Date Brown and Caldwell PLAN2017-01 (Collections) FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date AECOM PLAN2017-02(Collections) FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date HDR Engineering PLAN2017-03(Collections( FISCAL YEAR TOTAL E0 $0 $0 No Task Orders Issued to Date Dudek PLAN2017-04(Collections) FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Dale Woodard and Curran PLAN2017-05(Collections) FISCAL YEAR TOTAL EO EO EO TOTAL $0 1 $0 $0 Table 2.7 Activity Report for 2017 Master Agreements for Wastewater Treatment Studies Firm Task Order Status I Project Title/Description FY18-19 FY19-20 FY20-21 01-01 Active Root Cause Analysis of Malfunctioning Process $24 783 Brown and Caldwell 1 Units at TFSC Facility at Plant No.2 PLAN2017-01 (Wastewater) FISCAL YEAR TOTAL 0 $24 783 $0 Spill Prevention, Control,and Countermeasure Plan $28 216 AECOM 02-01 Open for Sludge Dewatering and Odor Control at Plant 1 PLAN2017-02(Wastewater) Amendment No. 1 $10,935 FISCAL YEAR TOTAL $39151 $0 $0 No Task Orders Issued to Date HDR Engineering PLAN2017-03(Wastewater) FISCAL YEAR TOTAL $0 $0 $0 No Task Orders Issued to Date Dudek PLAN2017-04(Wastewater) FISCAL YEAR TOTAL $0 $0 E0 No Task Orders Issued to Date Woodard and Curran PLAN2017-05(Wastewater) FISCAL YEAR TOTAL §0 $0 §0 TOTAL $39,151 $24,783 $0 Table 3.1 Planning Studies Status Report Project Name Status Allocated Budget P515-01 PS15-01 Biosolids Master Plan Closed $ 3,496,985 PS15-02 PSIS-02 Edinger Pump Station Rehabilitation Study Active $ 971,000 P515-06 P515-06 Seismic Evaluation of Structures at Plant Nos. 1 and 2 Active $ 3,860,000 PS15-07 PS15-07 Pressurization and Odor Control Study at Newport Beach Closed $ 344,145 P515-08 PSIS-08 Collections Capacity Evaluation Study Active $ 3,682,000 P515-10 P515-102017 Facilities Master Plan Closeout $ 4,150,000 PS16-01 PS16-01 Stormwater Master Plan Active $ 1,415,700 P516-02 P516-02 SCE Feed Reliability Improvements Study Active $ 293,000 PS16-04 PS16-04 Rectangular Primary Clarifier Reliability Study at Plant No. 1 Closeout $ 420,000 PS17-01 PS17-01 Fire Flow Testing at Plant No. 1 Cancelled $ 28,043 P517-02 P517-02 Guidelines for Development in the Area of OCSD Facilities Closeout $ 176,000 PS17-03 PS17-03 Active Fault Location Study at Plant No.2 Active $ 1,121,000 P517-04 P517-04 Office Workspace Study for Plant No 1 and 2 Closeout $ 110,000 P517-08 P517-08 CEQA-Facilities Master Plan Active $ 1,170,000 PS17-09 PS17-09 Calibration of Plant 1/Plant 2 InfoWorks Hydraulic Model Closed $ 51,996 P517-10 P517-10 Emergency Overflow Weirs,Wing Wall Structural and Geotechnical Inves Active $ 357,000 PS18-01 PS18-01 Asset Management Plan Development Active $ 420,000 PS18-02 PSIS-02 Bushard Diversion Structure Rehabilitation Study Active $ 96,000 P518-04 P518-04 Easements Assessment Cancelled $ - PS18-05 PS18-05 Plant No.2 Future Site Plan Development Active $ 193,000 P518-06 PS18-06 Go/No-Go Lights and Signage Active $ 495,000 P518-07 P518-07 ASCE Review of CIP Program Active $ 50,000 PS18-08 PSIS-08 Plant 2 Cen Gen Engine Exhaust Oxidizer Catalyst Cracking Root Cause Ar Cancelled $ - P518-09 P518-09 Ocean Outfall Condition Assessment and Scoping Study Active $ 1,850,000 PS18-10 PS18-10 Root Cause Analysis of Malfunctioning Process Units at TFSC Facility at PI Active $ 41,000 Grant Total $ 24,791,869 Total Chartered Project 25 Board Approved Program Budget $ 28,652,000 Remaining Unallocated Budget $ 3,860,131 Table 3.2 Research Program Status Report Project Numb Project Name stat t RE37-01 RE37-01 Operational Research Technical Support FY18-19 Active $ 650,000 RE17-02 RE17-02 Biogas Scrubber Evaluation Active $ 865,000 RE17-03 RE37-03 Reliant Wet Well Wizard Test Active $ 74,000 RE17-04 RE37-04 AquaNereda Aerobic Granular Sludge Process Active $ 242,000 RE17-05 RE17-05 Organica FCR Process On-Hold $ 242,000 RE37-06 RE17-06 TWAS Pump Reliability Improvement Trials at Plant No. 2 Closed $ 8,392 RE17-07 RE17-07 Super Oxygenation System Research at Seal Beach Pump Station On-Hold $ 80,000 RE18-01 RE18-01 Trickling Filter Bleach Test at Plant No. 1 Active $ 125,000 Grand Total $ 2,286,392 Total Chartered Project 8 Board Approved Program Budget $ 81500,000 Remaining Unallocated Budget $ 6,213,608 Table 3.3 Small Construction Projects Program-Status Report Project Num�Ell Project Name Status Allocated Budget FE10-21 FE30-21 Area 02 Craig Regional Park Manhole Improvements Design $ 1,359,000 FE12-10 FE12-10 IT Server Room Cooling Improvements Closed $ 956,096 FE13-04 FE13-04 Plant No.2 Trickling Filter Chemical Odor Control Close-0ut $ 4,830,000 FE14-03 FE14-03 Rehabilitation of Digester Mixing Pumps at P2 Digesters E,H,R,S,and T Close-0ut $ 1,360,000 FE14-05 FE14-05 Plant No.1 Fleet Services UST Leak Remediation Design $ 1,487,311 FE15-01 FE35-01 Fullerton Creek Channel Crossing Closed $ 84,640 FE15-06 FE35-06 Gas Compressor Building Piping Replacement at Plant 2 Close-Out $ 3,924,000 FE15-07 FE35-07 Secondary Treatment and Plant Water VFD Replacement at Plant 1 Construction $ 3,319,600 FE15-09 FE15-09 CenGen Hot Water Pipe Bracing at Plant 1 Close Out $ 425,000 FE15-10 FE35-10 East Lido Force Main Rehabilitation Construction $ 2,628,000 FE16-01 FE16-01 Big Canyon Nature Park Improvements Closed $ 29,915 FE16-02 FE16-02 Jamboree Sewer Realignment at BigCanyon Closed $ 54,434 FE16-05 FE16-05 Buried Water Valve Support Upgrades at Plant 2 Construction $ 500,000 FE16-06 FE16-06 Fuel Cell Facilities Demolition Design $ 810,000 FE16-08 FE16-08 Carbon Canyon Clay Pipe Repairs Closed $ 648,756 FE16-10 FE16-10 East Basin Distribution Box Repair Construction $ 1,021,960 FE16-11 FE16-11 Lane Channel Crossing Construction $ 501 FE16-12 FE16-12 Garfield Road Perimeter Security Fence Closed $ 37,410 FE16-13 FE16-13 Collections Infrastructure Relocation at Plant 2,Phase 18 Close-Out $ 120,000 FE16-14 FE16-14 Slater Pump Station Valve Replacements Construction $ 1,050,000 FE17-01 FE17-01 Carbon Canyon Pipeline Sag Repairs Design $ 783,000 FE17-03 FE17-03 Battery Storage System at Plant No.1 Project Develop. $ 571,000 FE17-04 FE17-04 Storm Water Compliance Improvements at 3 Pump Stations Cancelled $ 8,929 FE17-05 FE17-05 Plant 1 ICS Network Extension Design $ 91 FE17-06 FE17-06 Tustin Ave Manhole and Pipe Repair Project Develop. $ 273,000 FE17-07 FE17-07 Fruit Street Trunk Sewer Relocation-OC Streetcar Project Develop. $ 334,000 FE17-08 FE17-08 Big Canyon Trunk Sewer Realignment-BCCC Maintenance yard Project Develop. $ 130,000 FE18-01 FE38-01 Interim Relocation to 18350 Mt.Langley Project Develop. $ 665,000 FE18-02 FE38-02 Jamboree Sewer Transfer Closed $ 300,000 FE18-03 FE38-03 Building 6 Staff Consolidation Cancelled $ - FE18-04 FE38-04 Activated Sludge Basin Lighting Repair at Plant No.2 Design $ 1,600,000 FE18-08 FE38-08 West Trunk Bypass Sewer Realignment Project Develop. $ Sal FE18-10 FE38-10 Mt Langley HVAC Replacement and Upgrades Project Develop. $ 560,000 Grand Total $ 31,419,041 Total Chartered Project 38 Board Approved Program Budget $ 55,000,000 Remaining Unallocated Budget $ 23,580,959 Table 3.4 Information Technology Capital Program Status Report Project Number Project Name Status Allocated Budget IT16.03 ITI6-03 Plant 2Internet Connection Active $ 50,000 IT36-05 IT36-05 Plant 2 Radio Repeater Upgrade Active $ 35,000 IT36-06 IT16-06 Network Equipment 2016-17 Active $ 44,302 IT36-07 IT16-07 Server Replacement and Obsolescence Active $ 337,332 IT36-08 IT36-08 IT Security 2016-17 Active $ 162,000 IT36-09 IT36-09 iPACS Enhancements Active $ 85,000 IT36-10 IT36-10 LIMS Compliance Improv Project Active $ 754,800 IT16-11 ITI6-11 Business Continuity Plan Active $ 140,000 IT17.01 IT37-01VMWare Active $ 800,000 IT17-02 IT17-02 Upgrade Active Directory Directory to 2016 Active $ 56,000 IT17-03 IT37-03 Upgrade ShoreTel System Server Active $ 190,000 IT37-04 IT37-04 PCI Improvements Active $ 131,093 IT37-05 IT37-05 Conference Room Monitor Upgrade Active $ 75,686 IT17-06 IT37-06 Printer Obsolescence Active $ 350,000 IT37-07 IT37-07 Safety Management Suite Active $ 106,000 IT17-08 IT37-08 Perimeter Physical Security Im Active $ 170,077 IT17.09 IT17.09 MYOCSD Redesign Active $ 170,077 IT17-20 IT17-10 Electronic Operator Round Form Active $ 45,000 IT17-11 IT17-11 P2 Radio Repeater Active $ 170,077 IT17-12 IT17-12 Sever/Network Power Improvements Active $ 90,000 IT37-13 IT37-13 Graphric Workstations for PAO Active $ 15,000 IT37-14 IT37-14 Specialized Application Programing&Support Active $ 600,000 IT37-15 IT37-15 Data Storage Replac/Obsolescens Active $ 600,000 Grand Total $ 5,177,444 Total Chartered Project 23 Board Approved Program Budget $ 10,000,000 Remaining Unallocated Budget $ 4,822,556 Table 3.5 Operations& Maintenance Capital Program Status Report Project Number Project Name Status Allocated Budget FR00001 SAILS Hidrostal Pump Open $ 250,000 FR00002 New Chopper Pump at Digester P,Plant 2 Cancelled $ 200,000 FR00003 Rehab Clarifiers 4&5 at Plant( Open $ 450,000 FR00006 PEPS No.4 Submersible Replacement Open $ 30,000 FR00007 PI,M at D Structure:Concrete&Rebar Repairs to 2 Existing Airbase Sluice Gates Cancelled $ 180,000 FR00008 Rag Bin Ramp Retrofit Open $ 20,000 FR00009 P2 Remove&Replace Disgester Mixing Pumps at Digesters R,S,T,E&H Cancelled $ 950,000 FR00010 Toshiba Breaker Replacement Open $ 190,000 FRD0011 Westside PS Impeller&Liner Replacement Open $ 75,000 FR00012 P2 Primary Scum Pumps Cancelled $ 58,360 HE Small Cap HE 14/15 Small Cap Replac(Ops charges to CIP) Closed $ 1,399,500 Replac SC15-01 Replace Intercom at P2 Main Gate Cancelled $ 12,000 SC15-02 SAILS Vibration Monitoring Server Closed $ 17,000 SC15-03 Installing Card Readers in Men's Locker Rooms Cancelled $ 40,000 SC15-04 Replace CEMS(emissions monitoring)System Closed $ 54,057 SC16-01 Maintenance Storage Area Tool Cage P2 Open $ 9,572 SC17-01 CenGen g1 Elevator Rehabilitation Open $ 180,000 SC17-02 PI CenGen Plant Water Piping Rehabilitation Open $ 250,000 SC17-03 P1 P2 CenGen Oil Lube Platform Open $ 61,000 SC17-04 PI CenGen 12KV Circuit Breaker Replacement Open $ 220,000 SC17-05 Hidrostal Pump-TEFC Close Coupled Motor g2(Pump for SAILS) Open $ 261,260 SC17-06 PI Lab UPS System Replacement Open $ 290,294 SC18-01 P1 Primary Clarifier Fall Protection Improvements Open $ 50,000 SC18-02 Joint Cen Gen Oil Centrifuge Heater&Controls Rehabilitation(MP-18) Open $ 120,000 SC18-03 PI SALS Main Duty Pump&Motor&Installation-Remaining 2(MP-524) Open $ 500,000 SC18-04 Edinger UPS Replacement(MP-444) Open $ 15,000 SC18-05 Improvements to P1 Laboratory Boilers-New Burners(MP-485) Open $ 311,000 SC18-06 Pump Station Bypass Parts-Procurement(MP-426) Open $ 500,000 SC18-07 Power Building 512kv Switchgear Replacement Pending $ 1,000,000 SC18-08 MacArthur Pump Station-FM Valve Replacement Open $ 55,109 SC18-09 Admin Bldg UPS System Replacement Open $ 185,000 Grand Total $ 7,933,152 Total Chartered Project 31 Board Approved Program Budget $ 15,622,000 Remaining Unallocated Budget $ 7,688,848 Table 4.1 Staff Augmentation Contract Status Total Fees Time Contract $41,000,000 86 months Iti Actuals to Date $15,108,591 37% 35 months 41% Remaining $25,891,409 63% 51 months 59% Assuming three 1-year extensions Table 4.2 Staff Augmentation Labor Summary This Quarter Inception to Date Labor Hours 9,976 112,334 Full Time Equivalents 22.2 21.4 Labor Costs(no expenses) $1,325,679 $14,744,736 Average Hourly Rate $133 $131 OPERATIONS COMMITTEE Meeting Date TOBd.of Dir. 05/01/19 05/22/19 AGENDA REPORT ItemNumber Item Number a s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION, PROJECT NO. MP-105 GENERAL MANAGER'S RECOMMENDATION Approve renegotiated Purchase Order terms and conditions with Dresser-Rand for the assessment and standard overhaul of Plant No. 2 Central Generation Steam Turbine Rehabilitation, Project No. MP-105. BACKGROUND Orange County Sanitation District (Sanitation District) operates eight Central Generation (Can Gen) engines at its two treatment plants. The engines generate approximately two-thirds of the electric demand for the Sanitation District and the majority of the process heat demand for sludge digestion. Plant No. 2 includes a steam turbine to convert the waste heat into electrical energy. The Plant No. 2 steam turbine has been in operation for approximately 175,000 hours, with 70,000 hours (approximately 8 years) since the last overhaul. A thorough assessment of the steam turbine and supporting safety systems is needed to identify, address, and rehabilitate any deficiencies accordingly. RELEVANT STANDARDS • Maintain a proactive asset management program • Use all practical and effective means for resource recovery PROBLEM In March 2018, the Board approved a sole-source purchase order with Dresser-Rand, the successor company to the original steam turbine manufacturer for $245,424 with a $49,085 contingency to complete a major overhaul. Following receipt of the Sanitation District's Purchase Order Terms and Conditions, Dresser-Rand requested changes related to ownership of intellectual property rights. The Sanitation District and Dresser-Rand then negotiated changes which the Board approved in December 2018. In March 2019, Dresser-Rand noted inconsistencies between the provisions of Section 4 (Records) and Section 9 (Confidentiality) of the Purchase Order Terms and Conditions. Page 1 d 3 In reviewing the terms and conditions, staff worked with General Counsel to resolve the inconsistencies. These revised terms and conditions now require Board approval. PROPOSED SOLUTION Approve revised Terms and Conditions for this purchase order. The proposed revisions do not change the project cost, do not significantly modify the terms and conditions previously approved in December 2018, and are necessary to retain Dresser-Rand's services for this purchase order. Approval will allow Dresser-Rand to begin the assessment and overhaul of the steam turbine. The proposed revisions ensure Section 4 (Records) is consistent with Section 9 (Confidentiality) of the Purchase Order Terms and Conditions, which was the subject of prior negotiations between Sanitation District and Dresser-Rand in 2018. The 2018 revisions clarified that the Sanitation District may use the work product provided by Dresser-Rand for operating/repairing/maintaining the steam turbine, but the Sanitation District would have no intellectual property rights to any of the background information used to prepare the work, including steam turbine design and manufacturing methods. TIMING CONCERNS Without approval of the revised terms and conditions, the assessment and overhaul will be delayed indefinitely. RAMIFICATIONS OF NOT TAKING ACTION Failure to take action will reduce the recovery of waste heat for electricity, resulting in an annual cost of approximately $125,000 for additional electricity purchases. In addition, the steam turbine helps to balance the steam system, improving the safety and integrity of the steam system as a whole. PRIOR COMMITTEE/BOARD ACTIONS December 2018 - Approved negotiated Purchase Order Terms and Conditions following negotiations with Dresser-Rand. March 2018 - Approved a Sole Source Purchase Order to Dresser-Rand for the assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount not to exceed $245,424, including applicable tax and freight, and a contingency of $49,085 (20%). ADDITIONAL INFORMATION N/A Page 2 of 3 CEQA The project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". The project is exempt because it involves repairs and minor replacement of existing facilities involving no expansion of use or capacity. FINANCIAL CONSIDERATIONS The requested modifications to the terms and conditions do not alter the amount of the sole source purchase order approved by the Board in March last year. 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: • Orange County Sanitation District- Purchase Order Terms and Conditions ML:dm:gc Page 3 of 3 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 1. CONTRACT TERMS. 1.1 Forms/Acceptance. Except as otherwise provided In subsection 1.2 below, the complete agreement the ("Agreement')between OCSD and Contractor(collectively, the"Partles") consists of, in order of precedence: (1)the agreed plans and speclfiatbns of the Purchase Order, (2) the Purchase Order signed by OCSD's Purchasing Manager and Contractor(the "Purchase Order"), (3) these terms and conditions(the"Terms and Conditions"),and(5)Contractor's bid/proposal, If any,as though fully set forth herein.To the extent of any Inconsistency between the provisions of any of the foregoing, the order of precedence shall dictate the result. Except for any section or subsection OCSD has marked "WANED", each provision of the Terms and Conditions applies to the Agreement. Contractor's shipment of goods/performance of services shall constitute acceptance of these Terms and Conditions. 1.2 Additional Terms.Any other terms,conditions,or limitations suggested by Contractor or Incorporated In Contractor's invoice,or other correspondence,shall not form a part of the Agreement unless expressly accepted in writing by OCSD's Purchasing Manager. 2. PAYMENT TERMS, 2.1 Standard, Net 30 days unless otherwise stated on the Purchase Order. 2.2 BkL Except as may otherwise be included in the Purchase Order,Contractor shall not charge for transportation,packing,containers, storage, or any similar charge unless pre-approved by OCSD. OCSD is exempt from the payment of federal excise tax, which shall be excluded from the purchase price.The total purchase price quoted In the Purchase Order also excludes applicable California,county and municipal sales and use taxes or similar taxes now or hereafter applicable to, measured by, or Imposed upon or with respect to the goods,Its or their sale,their value or their use,or any services performed In connection therewith. OCSD agrees to pay or reimburse Contractor for any such taxes which Contractor or Its subcontractors are required to pay. 2.3Inyoices,Contractor shall submit Invoices to APstaftood.rom or in duplicate to the Orange County Sanitation District,Attn:Accounts Payable, 10844 Ellis Ave.,fountain Valley,CA 92708.Each Invoice must show OCSD's purchase order number,description of goods and services, unit price,quantities billed,extended totals, and shall cover only goods delivered or shipped/services performed.OCSD shall pay for goods/services after receipt of a conforming Invoice and confirmation by OCSD of Its accuracy. 3. DELIVERY/PERFORMANCE,INSPECTION.AND RISK OF LOSS, 3.1 Deliverv/Performance,Contractor shall reasonably endeavor to deliver the goods/perform the services according to the schedule In the Agreement, with numbers of days meaning calendar days, unless otherwise stated, and to the locations specified by OCSD. All goods shall be delivered to OCSD in accordance with the applicable delivery terms set forth In the Purchase Order(INCOTERMS 2010). All pre-approved transportation and delivery charges must be prepaid in full to destination, and the prepaid freight bill must be submitted to OCSD with the invoice. Goods shall not be accepted If shipped C.O.D. Subject to OCSD's right of rejection, this to goods shall pass to OCSD upon delivery at 22212 Brookhurst Street, Huntington Beach,CA 92646. 3.2 Inspection,OCSD shall have the right to Inspect the goods within a reasonable amount of time prior to acceptance.If,on Inspection, OCSD reasonably determines that the goods do not meet the Agreement requirements, OCSD may reject nonconforming goods until such nonconformance has been rectified to the reasonable satisfaction of OCSD. Prior to shipment,Contractor, if requested by OCSD, will inform OCSD of those tests and procedures which an be witnessed. Should OCSD elect to witness specific tests, DOSE)must so specify such requirement in ample time to permit Contractor to include said witness tests in the schedule. Contractor, If requested,will advise OCSD of the schedule of such tests. However, no rescheduling of tests or delays In manufacturing or shipment will be made to accommodate such Inspection. OCSD shall have the right to Inspect services within a reasonable amount of time prior to acceptance and payment. If OCSD does not Inspect the services within a reasonable time not to exceed seven(7)business days after receipt of notice from Contractor that the services have been completed,the services shall be deemed accepted by OCSD. If services do not conform to the Agreement requirements,OCSD shall have the right to withhold payment or enforce any other remedy provided for In the Agreement until the services conform to the Agreement requirements. 3.3 Risk of Loss. Risk of loss of the goods/materials passes to OCSD upon delivery In accordance with the applicable Incoterm delivery term. 4. COVENANTS, 4.1 Personnel/Comoiiance with Law. All services shall be performed: (a)by competent and qualified personnel,who shall be paid at least the prevailing rate of per diem wages,as determined by the Director of the Department of Industrial Relations,applicable to the work to be done for the locality In which the work Is to be performed, unless exempted, and (b) in conformance with applicable federal, state and local laws. Contractor certifies that it Is registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5 and shall obtain and maintain valid,permits,licenses,certificates,authorl2aWnsand otherdocuments as required by federal,state or local laws or regulations to be held In In Contractor's name.The persons performing services under this Agreement on behalf of Contractor, If any, shall at all Was be under Contractor's exclusive direction and control. Neither OCSD nor any of Its 1392110.2 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS officers, employees, or agents shall have control over the conduct of Contractor or any of Its officers,employees, or agents, except as set forth in the Agreement. 4.2 Status of Contractor.The legal relationship between the parties hereto is that of an independent contractor,and nothing herein shall be deemed to make Contractor or any subcontractor(s)an OCSD employee.During the performance of this Agreement,Contractor and Its officers,employees,and agents shall act in an Independent capacity and shall not act as OCSD's officers,employees, or agents. 4.3 Taxes, Contractor shall pay and/or withhold all applicable sales, use, Income, employment, or other taxes arising out of the performance of the Agreement. Contractor shall pay all wages, salaries, and other amounts due Its employees,agents or independent contractors in connection with this Agreement and shall be responsible for all reports and obligations respecting them,Including but not limited to unemployment compensation,workers'compensation,and other similar matters. 4.4 Records. Contractor shall keep and maintain full and complete documentation and accounting records concerning all services performed that are compensable on a time and material basis under the Agreement and shall make such documents and records available to OCSD for inspection at any reasonable time to determine any amounts due for such work and/or to enable OCSD to comply with all federal,State,and local laws and administrative actions.Contractor shall maintain such records for a period of 3 years following completion of the work under the Agreement. All written product, data, findings, or information in any form provided to Contractor under this Agreement are the property of OCSD, including all copyrights or intellectual property rights inherent in them or their preparation. To the extent permitted by law, It is the intent of the Parties that deliverable written products to be produced, if any, by Contractor under this Agreement will become the property of OCSD, and that the Contractor will remain the sole copyright owner of the deliverables,data,findings,or information,and of all aspects,elements and components of them in which copyright can subsist,and of all rights in connection with such copyright. Upon delivery to OCSD of any deliverable written products prepared under this Agreement,OCSD shall,consistent with Section 9 of this Agreement, obtain a license to use such materials for the sole purpose of operating, repairing and/or maintaining the designated project and associated equipment. All intellectual property rights arising from the creation of deliverable written products prepared by Contractor in connection with this Agreement,including,but not limited to,all copyrights and other proprietary rights,shall be and remain the property of Contractor. S. WARRANT, 5.1 Warranty of Trtle.Contractor warrants that it has title to the goods,and to the materials and equipment used in the performance of services under the Agreement,and that none of the foregoing is subject to any security Interest, lien,or other encumbrance. 5.2 Warranties for Goods/Services.Contractor warrants that: (a)the goods, and any materials and equipment supplied,will: (i)be new unless otherwise specified, (11)conform to OCSD's plans, specifications,and/or descriptions, as mutually agreed by the parties and (III) Contactors goads be of first-class material and workmanship and free from defect until the earlier of eighteen (18) months after the delivery of such goods or twelve(12)months from the date of first use of the Item of the goods(the"Goods Warranty Period");and(b) all services will be: (i)of good quality,free from defect,and in conformance with the Agreement,and(if)performed to the standard of care that reflects competent professional knowledge and judgment, beginning with the start of the Item of services and ending one(1) year after completion of said item of services by Contactor(the"Services Warranty"Period). Contactor shall transfer to OCSD all of Contactors rights to and interest in the manufacturers warranty or guarantee for each Item delivered or Installed, If applicable. All manufacturers'warranties and guarantees shall be in addition to Contractors warranty under the Agreement. In the event of a breach of Warranty,and upon written notice from OCSD,Contractor,at Its option, shall repair or replace the goods, materials and equipment and remedy any defects in workmanship, without charge and within a reasonable period of time after recelpt of OCSD's request. If Contractor does not do so and falls to perform as required under the Goods Warranty,OCSD shall be entitled to remedy any defects itself and to collect the reasonable and verifiable cost of the same from Contractor. If during the Services Warranty Period, Contractor is notified in writing that any portion of the Services falls to conform to the Services Warranty, Contractor will promptly re-perform such nonconforming portion of the Services to the reasonable satisfaction of OCSD. If re-performance Is Impracticable Contractor will refund the amount of the compensation paid to Contactor for such nonconforming portion of the Services, and will reimburse OCSD for its reasonable and verifiable costs to complete the services up to twenty percent(2D%) of the total price paid to Contractor under the Agreement.OCSD's Inspection,acceptance,and/or payment shall not relieve Contractor of liability under this warranty.The remedies In this subsection are in addition to those described in Section 6,below. 5.3 The warranties and remedies set forth in this section are conditioned upon(A)OCSD's receipt,handling,storage,Installation,testing, operation and maintenance,including asks incident thereto,of the Goods in accordance with the recommendations of Contractor to the extent applicable or,In the absence of such recommendations or to the extent not applicable,in In such a manna that reflects competent professional knowledge and judgment. In addition,such goods shall not have been operated in excess of limitations specified in writing by Contractor and not have been subjected to accident,alteration,abuse or misuse. for all warranty work,where equipment unrelated to this Agreement may obstruct access to goods, materials, and structures OCSD shall make reasonable efforts to provide Contractor with access to the nonconformity,by disassembling,removing,replacing and reinstalling any goods,msterlals or structures to the extent necessary to permit Contractor to perform its warranty obligations. 0921102 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 5.4 THE WARRANTIES SET FORTH IN THIS ARTICLE ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER STATI)TORY, EXPRESS, OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE,AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE). 6.EXPORT CONTROL.OCSD acknowledges that Contractor is required to comply with all applicable export laws and regulations relating to the sale,exportation,transfer,assignment,disposal and usage of goods provided under this agreement, including any export license requirements. OCSD agrees that such goods shall not at any time directly or Indirectly be used,exported,sold,transferred,assigned or otherwise disposed of in a manner which will result in non-compliance with such applicable export laws and regulations. It shall be a condition of the continuing performance of Contractor and of its obligations hereunder that compliance with such export laws and regulations be maintained at all times. 7. DELAY LIOUIDATED DAMAGES. In the event that delivery of any goods Is delayed more than twenty-one (21)calendar days beyond the agreed date of delivery as set forth in the Purchase Order,OCSD may assess liquidated damages for Contractor's delivery delay.Such damages will be limited to a rate specified in each Purchase Order. ("Delay Liquidated Damages'). Contractor's exclusive liability and OCSD's sole and exclusive remedy for delay in delivery of the goods caused by Contractor shall be the payment of Delay Liquidated Damages as set forth herein,and no other remedies of any kind whatsoever shall apply whether based in contract, In tort (including negligence and strict liability)or any other theory of recovery.It is agreed by both parties that the aforementioned damages for delivery would be difficult to quantify as such the parties have fairly agreed that these damages are a reasonable estimate and do not constitute a penalty. There are no guarantees relating to the completion date of any services unless specifically set forth in the Purchase Order. In the event any performance guarantees are provided In the Purchase Order,OCSD's sole and exclusive remedy and Contractor's sole and exclusive liability for any unexcused failure of the Contractor to complete the services beyond the agreed date of completion as set forth In the Purchase Order,any theory of recovery,shall be the liquidated damages specified in such Purchase Order up to the limit specified therein. It Is agreed by both parties that the aforementioned damages for completion of the services would be difficult to quantify,and as such, the parties have fairly agreed that these damages are a reasonable estimate and do not constitute a penalty. S. CONTRACTOR'S REMEDIES, If OCSD defaults under the Agreement,Contractor may fide a claim with OCSD, In accordance with applicable provisions of law. 9. CONFIDENTIALITY.Contractor may have a proprietary Interest In Information that may be furnished pursuant to this agreement. To the extent permitted by law,OCSD will keep In confidence and will not disclose any such information which is specifically designated as confidential to Contractor or use any such information for other than the purpose for which It Is supplied without the prior written permission of Contractor. The provisions of this paragraph shall not apply to information, notwithstanding any confidential designation thereof,which is known to OCSD without any restriction as to disclosure a use at the time R is furnished,which is or becomes generally available to the public without breach of any confidentiality obligation of OCSD,which is received from a third party without limitation or restriction on said third party or OCSD at the time of disclosure.Additionally,OCSD's rights to any confidential or proprietary information shall be limited solely to the use in operation,repair and/or maintenance of the designated project At no time will any permanent transfer of title be created for any technical drawings or intellectual property,nor shall any of this specifically designated Information be disclosed other than for the above stated purposes.Contractor acknowledges that OCSD is a public agency subject to compliance with the California Public Records Act.Should OCSD receive a California Public Records Act request that pertains to documents related to this Agreement, OCSD will rrotify Contractor who may then choose to intercede to prevent disdosure of confidential information not otherwise protected by the California Public Records Act. 10.TERMINATION FOR CONVENIENCE AND DEFAULT 10.1.T rmination for Convenience,OCSD,in Its sole and absolute discretion,may terminate the Agreement,in whole or in part,at any time, without cause, by providing thirty(30)days'written notice to Contractor. In such case,Contractor shall immediately discontinue all work(unless the notice directs otherwise). Further, should the work be delayed for a period in excess of 180 days for any reason attributable to force majeure,the Agreement may be deemed to have been terminated at the option of either Party. Should either Parry opt to terminate the Agreement, Contractor shall be entitled only to payment for such goods, materials and equipment delivered and services performed,and reasonable,documented costs related to termination as may be demonstrated by Contractor,including but not limited to manufacturing costs for materials and/or components that cannot be used for another reasonably foreseeable purpose or otherwise returned. 10.2. Termination for Default. (A)OCSD may terminate the Agreement based on the Contractor's default. If Contractor(I) materially breaches any provision of this Agreement and If such breach is not commenced to be cured within fifteen(15)days after receiving written 13W 1101 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS notice from OCSD specifying such breach In reasonable detail,or(il)in the event of an act of Insolvency or bankruptcy by Contractor then OCSD shall have the right to terminate the Agreement by giving written notice to Contractor at which time termination shall be effective Immediately. Upon termination for default,OCSD may exclude Contractor from all OCSD sites;take possession of all materials, equipment, tools, and equipment and machinery owned by the Contractor and remaining on OCSD sites; accept assignment of any subcontracts that OCSD desires to keep and complete the work by whatever reasonable method it deems expedient. In the event the Agreement is terminated for default,OCSD is entitled to recover excess re-procurement costs and delay damages,among other remedies. Contractor may also terminate the Agreement for cause in the event of a material breach of the Agreement by OCSD which OCSD fails to commence to cure within fifteen(15)days after notice thereof from Contractor and falls to diligently pursue thereafter.In such event, Contractor shall be entitled only to payment for such goods,materials and equipment delivered and services performed,and reasonable, documented costs related to termination as may be demonstrated by Contractor, including but not limited to manufacturing costs for materials and/or components that cannot be used for another reasonably foreseeable purpose or otherwise returned. 11.INDEMNIFICATION/DUTY TO DEFEND. Contractor shall assume all responsibility for damages to third party property and/or injudes to persons, including accidental death,to the extent such damages, injuries, or death are caused by Contractor in the performance of services under this Agreement,or by Its subcontractor or by anyone directly or Indirectly employed by Contractor, and whether such damage or Injury shall aalue or be discovered before or after the termination of the Agreement Contractor shall indemnify, protect,defend and hold harmless OCSD, Its elected and appointed of dals,officers, agents and employees,from and against any and all claims, liabilities, damages or expenses of any nature, Including attorneys'fees: (a)for Injury to or death of any person or damage to third party property or Interference with the use of such third party property to the extent such damages Injuries or death are caused by the negligent acts or omissions of Contractor;and/or(b)on account of any goods and services provided under this Agreement,Contractor will,at Its own expense,defend or at Its option settle any suit or proceeding brought against OCSD so far as based on an allegation that any services, or use thereof for their intended purpose,constitutes an Infringement of any United States patent or copyright or misappropriation of a trade secret. In case the services, or any part thereof, as a result of any suit or proceeding so defended Is held to constitute Infringement of any such United States patent,copyright or trade secret,or Its use by OCSD is enjoined,Contractor will,at Its option and Its own expense, either:(1)procure for OCSD the right to continue using said services; (Ip replace the work with substantially equivalent non-infringing work;or(III)modify the work so it becomes non-Infringing. Contractor will pay the damages and costs awarded in any suit or proceeding so defended. Contractor will not be responsible for any settlement of such suit or proceeding made without Its prior written consent. This Indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor or anyone employed by or working under Contractor. If Contractor is promptly given Information, and assistance In a timely manner for the defense of any suit or proceeding, Contractor agrees to provide this defense Immediately upon written notice from OCSD,and with well qualified, adequately Insured, and experienced legal counsel.This section shall survive the expiration or early termination of the Agreement. 12. GENERAL PROVISIONS. 12.1 Notice, Notice shall be given by certified mall, return recelpt requested, facsimile or other electronic telecommunications transmission with a date and time receipt acknowledgment,or personal delivery. Notice shall be effective on receipt. 12.2 Nondiscrimination. Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations in regard to nondiscrimination In employment because of race,color,ancestry,national origin,religion,sex,marital status,age,medical condition, pregnancy,disability,or other prohibited basis.All nondiscrimination rules or regulations required by law to be Included In the Agreement are Incorporated by this reference. 12.3 Force Maleure. Neither parry shall be liable for any delay or failure In the performance of the Agreement to the extent the delay or failure Is mused by circumstances beyond the reasonable control of the parties, including but not limited to labor disputes, strikes,war,riots,Insurrection,civil commotion,fire,flood,accident,storm or any Act of God. 12.4 Assionment. Except with respect to any of Contractor's affiliates, neither party may assign a right under or an Interest in the Agreement nor delegate or subcontract an obligation under the Agreement,without the written consent of the other party(consent of which shall not be unreasonably withheld).Any attempted assignment,delegation or subcontract,without such written consent,shall be void. 12.5 No Waiver or Excuse. No provision of the Agreement shall be deemed waived and no breach shall be deemed excused, unless such waiver or excuse Is In writing and signed by the party making the waiver or excusing the breach. No such waiver or excuse shall mnstltote a waiver of another provision,or an excuse of another breach. 12.6 Applicable LawNenue/Attorneys' Fees, The Agreement shall be governed by, and construed in acmrdance with, the laws of the State of California. Any action or proceeding for dispute resolution arising out of the Agreement shall be brought and tried In the County of Orange,State of California,and the prevalling party shall be entitled to reasonable attorneys'fees, costs and expenses.The parties shall attempt In good faith to resolve such dispute promptly by negotiations between executives who haw:authority to settle the dispute, subject to approval by OCSD's Board of Directors. Any trial of any dispute not so settled will be resolved by a judge sitting without a jury and EACH PARTY EXPRESSLY WAIVES ITS RIGHT TO A JURY TRIAL. 13921 W1 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 12.7 Construction and Severabllity. To the fullest extent allowed by law, the provisions of the Agreement shall be construed In a manner that avoids any violation of statute,ordinance, regulation,or law.If a court of competent jurisdiction holds any provision of the Agreement to be vold,the remaining provisions shall continue in full force and effect. 12.8 Chance Order.OCSD may request change orders within the scope of the Agreement and, if accepted by Contractor,the price, performance, schedule and other pertinent provisions of the Agreement will be adjusted by mutual agreement of the parties prior to Implementation of the change. Expenses incurred by Contractor due to(1)delays,other than delays which are deemed to be within the reasonable control of the Contractor,and(a)changes In applicable laws,regulations and technical codes and standards or the imposition of new laws, regulations and/or technical codes and standards after the execution of this Agreement will be treated as changes to the scope of work and the Agreement will be adjusted as set forth above. 12.8 Hazardous Materials. Contractor shall have no responsibility or liability with regard to any hazardous material which It does not know or have reason to know of Its existence In the performance of the work and OCSD shall be responsible for all pollution and environmental Impairment arising from the property,the equipment and the services other than for any such hazardous materials which Contractor may have brought onsite which It may suddenly and accidently release. In the event that any such hazardous materials, Including any asbestos materials, are discovered at the site, Contractor shall have the right to suspend the work in progress, without consequence, until such time as the hazard has been safely remediated or contalned by OCSD. 13. INSURANCE AND BOND REOUIREMENTS. Before beginning wont under the Agreement, Contractor shall accept the terms provided In OCSD's Acknowledgement of Insurance Requirements and shall provide OCSD with: 13.1 Such bonds,insurance and certificates of Insurance,as set forth In 13.2. 13.2 If not described In 11.1, (1) Certificates of commercial general liability, automobile liability, employer's liability and workers compensation Insurance In the following amounts: CGL($10,000,000 each occurrence and In the aggregate),Automobile($10,000,000 combined single limit bodily Injury and property damage), Employer's Liability ($1,DOO,000 each accident and In the aggregate, and $1,000,D00 disease each employee),Worker's Compensation(Statutory amount);(2)Insurance policy endorsements showing additional Insured coverage for OCSD(for general and automobile liability),as well as waivers of subrogation in favor of OCSD with regard to all policies described above provided, however, that such additional Insured status shall apply to the extent of Contractor's Indemnity obligations under Article 11. Subject to a change order for the additional costs of any bond,OCSD may request that Contractor picture labor and materials bonds, reasonably satisfactory to OCSD. All such Insurance and bonds must remain in effect throughout the performance of the Agreement.In addition,all bonds must be Issued by a qualified corporate surety licensed to do business In the State of California and all Insurance carriers must have an A-(A minus),or better,policy holder's rating and a financial rating of Class VIII,or better,in accordance with the most current AM Best rating.All sureties and Insurers must have agents for service of process In California. 14. SAFETY AND HUMAN RESOURCES POLICIES: Contractors who perform work for OCSD must comply with OCSD Safety Standards. A digital version of OCSD's Safety Standards Is available on the OCSD website at www.mcsd.com. A printed version of the Safety Standards will be made available only upon request. 15. LIMITATION OF LIABILITY: NOTWITHSTANDING ANY OTHER PROVISION OF THE AGREEMENT, OCSD EXPRESSLY AGREES THAT NEITHER CONTRACTOR NOR ITS SUBCONTRACTORS WILL UNDER ANY CIRCUMSTANCES BE LIABLE UNDER ANY THEORY OF RECOVERY, WHETHER BASED IN CONTRACT, IN TORT(INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR OTHERWISE,FOR ANY SPECIAL,INDIRECT,INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE WHATSOEVER;DAMAGE TO OR LOSS OF ANY PROPERTY OR EQUIPMENT; LOSS OF PROFITS OR REVENUE OR LOSS OF USE THEREOF;LOSS OF USE OF OCSD'S MATERIAL, EQUIPMENT OR POWER SYSTEM;COST OF CAPITAL: COST OF FUEL; COST OF PURCHASED OR REPLACEMENT POWER; INCREASED COSTS OF ANY KIND;OR ANY CLAIMS OF CUSTOMERS OF OCSO. OCSD EXPRESSLY AGREES THAT THE REMEDIES PROVIDED IT IN THE AGREEMENT ARE EXCLUSIVE,AND THAT NOTWITHSTANDING ANY OTHER PROVISION OF THE AGREEMENT, EXCEPT FOR CONTRACTOR'S OBLIGATIONS UNDER ARTICLES 9., II.(a) AND 11(b) HEREIN,UNDER NO CIRCUMSTANCES SHALL THE TOTAL AGGREGATE LIABILITY OF CONTRACTOR UNDER ANY THEORY OF RECOVERY, WHETHER BASED IN CONTRACT,IN TORT(INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR OTHERWISE, EXCEED THE FOLLOWING AMOUNTS: Order Value Liability Amount Up to$300,000 Three times the Purchase Order amount $300,001 -$500,000 Two times the Purchase Order amount $500,001 -and above The Order amount 1392110.2 ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS ALL LIABILITY OF CONTRACTOR AND ITS SUBCONTRACTORS UNDER THIS AGREEMENT SHALL TERMINATE NO LATER THAN TWELVE (12)MONTHS AFTER THE EXPIRATION OF THE WARRANTY PERIOD.THE PROVISIONS OF THIS ARTICLE SHALL PREVAIL OVER ANY CONFLICTING OR INCONSISTENT PROVISIONS SET FORTH ELSEWHERE IN THE AGREEMENT. IN WITNESS WHEREOF,the Parties hereto have executed these Terms&Conditions as of the Date written below. CONTRACTOR: OCSD: Dresser-Rand Orange County Sanitation District, a public agency PopescuM- By: Gabriel ... .... By: Name: Name: David John Shawver Title: Title: Board Chairman Date: Date: Digitally signed by Miller John Locaof M i I l e r J o h n Datetl2019.on: 100 2215 3015nCe By: ATTEST: Name: By: Kelly Lore Title: Clerk of the Board Date: Date: APPROVED AS TO FORM: By: Bradley R. Hogin General Counsel Date: 13921102 OPERATIONS COMMITTEE Meng Dare TOBE. Dir. 05/etl01/19 05/22/1Of9 AGENDA REPORT em Number Item Number 6 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: FERRIC CHLORIDE PURCHASE GENERAL MANAGER'S RECOMMENDATION A. Approve a Chemical Supplier Agreement with Pencco, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-103713D, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of$597 per dry ton delivered, for an estimated annual amount of $1,791,000 (plus applicable sales tax) with four (4) one-year renewal options; B. Approve a Chemical Supplier Agreement with Kemira Water Solutions, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-10371313, for the period beginning July 1, 2019 through June 30, 2020, for a unit price of$630 per dry ton delivered, for an estimated annual amount of $3,150,000 (plus applicable sales tax)with four (4) one-year renewal options; and C. Approve a unit price contingency of 10% per agreement. BACKGROUND Ferric chloride is the coagulant of choice for wastewater treatment process performance due to its high efficiency and effectiveness in clarification, enhanced solid removal, and cost effectiveness compared to other chemicals (i.e., ferric sulfate, alum, or lime). For the 2019-2020 fiscal year, it is estimated that the Orange County Sanitation District (Sanitation District)will use 1.2 million gallons of ferric chloride at a cost of approximately $4.7M. Ferric chloride is used in the United States primarily for wastewater and water treatment. There are a limited number of suppliers, and it is important for the Sanitation District to maintain a reliable supply chain that encourages competitive pricing and chemical availability/sustainability. Prior to July 2013, the Sanitation District utilized a single supplierfor 15 years. The 2010 Chemical Sustainability Study identified ferric chloride as one of the most critical chemicals for plant operation. It also highlighted the potential supply disruption and price escalation risks associated with this single-supplier system. As a result, the Sanitation District developed a multiple-vendor supply chain that has been in place since that time. The Sanitation District currently purchases ferric chloride through two vendors whose Agreements are scheduled to expire on June 30, 2019. The current agreements can be extended through June 30, 2020; however, at a dry ton rate of$692 which exceeds our current purchase contingency. Page 1 of 4 RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Meet volume and water quality needs for the GWRS • Ensure the public's money is wisely spent PROBLEM The chemical cost has increased beyond the approved contingency amount. PROPOSED SOLUTION Staff recommends approval of the unit price increase to ensure that the supply and delivery of ferric chloride chemical to Plant Nos. 1 and 2 are not disrupted. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will continue to purchase ferric chloride under the existing agreements at a unit price amount of$692 per dry tons. PRIOR COMMITTEE/BOARD ACTIONS April 2016 -Awarded current ferric chloride Purchase Order Agreements to two vendors, Specification No. C-2016-755BD. ADDITIONAL INFORMATION A Request for Proposal was issued, and three proposals were received. Prices were provided for increments of 1,000 dry tons, up to 5,000 dry tons annually. The estimated cost of various scenarios was calculated based on the unit prices. The award recommendation includes a minimum of two vendors and is the best value option that staff believes will provide adequate supply chain reliability. The bid prices are shown below. Applicable sales tax was not included with these values because there is a tax differential between Plant No.1 and Plant No. 2. Tax applies to the product price but does not apply to the freight charge. Page 2 of 4 Proposal Unit Prices (including Freight, but excluding Sales Tax) Quantity (Dry Tons/Yr. Kemira Pencco CWT 1,000 $750.00 - $645.00 2,000 $720.00 - - 3,000 $690.00 $597.00 - 4,000 $660.00 $597.00 5,000 $630.00 $597.00 - 6,000 $600.00 $597.00 - 7,000 $600.00 $597.00 - 8,000 $600.00 $597.00 - Recommended Agreement Awards The table below does not include sales tax. Tax is charged separately, so tax is not part of the award amount. Also, the quantity below is the quantity that the Sanitation District is negotiating with each vendor, which is the estimated usage. Quantity Unit Vendor (Dry Tons/Yr. Price Agreement Amount Pencco 3000 $597.00 $1,791,000 Kemira 5000 $630.00 $3,150,000 Total 8000 $4,941.000 The Sanitation District developed a comprehensive chemical sustainability strategy in 2012. The chemical supply contracts for ferric chloride were developed based on the strategic objectives of: 1) ensuring reliable supplies, 2) ensuring multiple vendor contracts are in place, and 3) competitive pricing. The recommended action above is based on these objectives. At its May 1, 2019 meeting, the Operations Committee directed staff to look into alternative contracting methods to achieve reliability and competitive pricing. Staff will include an initiative in the 2019 Strategic Plan to update the 2012 study and contracting strategies. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted in the FY18-19 and FY19-20 Division 830 and 840 operating budgets (Line item: Supplies, Section 6, Pages 84 & 88). Date of ADDroval Contract Amount Continaencv 05/22/2019 $4,941,000 $494,100 (10%)(Unit Price) Page 3 of 4 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Pencco Chemical Supplier Agreement • Kemira Chemical Supplier Agreement • May 1, 2019 Operations Committee PowerPoint Presentation MPV:cf:gc Page 4 of 4 CHEMICAL SUPPLIER AGREEMENT Purchase of Liquid Ferric Chloride (FeC13) Specification No. C-2019-1037BD 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 (hereinafter referred to as"OCSY) and Pencco, Inc. with a principal place of business at 831 Bartlett Road, Sealy, TX 77474 (hereinafter referred to as "Supplier') collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to temporarily engage Supplier to provide Ferric Chloride (FeC13) as described in Exhibit"A"; and WHEREAS, Supplier submitted its Proposal dated April 1, 2019; and WHEREAS, on May 22, 2019, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Supplier; and WHEREAS, OCSD has chosen Supplier to provide Ferric Chloride (FeC13) in accordance with Ordinance No. OCSD-52; and NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agreed as follows: 1. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement') is made by OCSD and the Supplier. The terms and conditions herein exclusively govern the purchase of Ferric Chloride (FeC13)as described in 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. Exhibit"A" Scope of Work Exhibit"B" Proposal Exhibit"C' Acknowledgement of Insurance Requirements Exhibit"D" OCSD Safety Standards Exhibit"E" Human Resources Policies Exhibit"F" Not Used 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 This Agreement may not be modified, changed, or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties. 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 section or provision hereof. Orange County Sanitation District 1 of 9 Specification No. C-2019-1037BD 120518 1.6 The term "days", when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays. 1.7 The term "workday'. Workdays are defined as all days that are not Saturday, Sunday, or OCSD observed holidays. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff who maintain plant operations 24 hours per day 7 days per week and work a rotated 12- hour shift) and shall conform to OCSD work schedules. 1.8 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents Day, Memorial Day, Independence Day, Labor Day,Veterans Day,Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.9 Work Hours: The work required under this Agreement may include normal business hours, evenings, and weekends. 1.10 Supplier shall provide OCSD with all required premiums and/or overtime work at no charge beyond the total amount of the Agreement. 1.11 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Supplier as a result of work performed in anticipation of purchases of said services by OCSD. 2. Defivery 2.1 LOCATIONS: Deliveries shall be made in accordance with the Scope of Work, Exhibit "A". 2.2 OCSD will pay only for the actual quantity of Ferric Chloride delivered, based upon certified tare weight and net weight. The quantity invoiced by Supplier and payable by OCSD will be for the total net weight of Ferric Chloride delivered (loaded gross weight minus the tare weight). Tare weight shall be determined immediately after each delivery and prior to cleaning, emptying, or clearing the delivery tank. 2.3 A bill of lading shall accompany all shipments in accordance with Exhibit"A". 3. Possession Ownership and control of all Ferric Chloride delivered pursuant to this Agreement shall remain solely and exclusively with Supplier, until complete transfer of possession by delivery to OCSD at the designated locations is made by Supplier. 4. Quant! 4.1 OCSD makes no guarantee to actual use or quantity of Ferric Chloride purchased. Use may be sporadic based on the wastewater treatment requirements unique to each treatment plant. 4.2 OCSD will, through the term of this Agreement, purchase Ferric Chloride from Supplier exclusively, except when OCSD determines Supplier cannot make delivery within the time specified,with the quality and quantity specified, at the Agreement price,the level of Service is inadequate, OCSD unapproved increase in active dry pound rate or for any other default or breach of this Agreement. In such event, OCSD may purchase Ferric Chloride elsewhere and charge Supplier any difference in the delivered price to OCSD from that provided in this Agreement, or alternatively, OCSD may terminate the Agreement based on said breach or failure to deliver the specified product. Quality control tests will be performed by OCSD on Orange County Sanitation District 2 of 9 Specification No. C-2019-1037BD 120518 the delivered Ferric Chloride to ensure it is consistent with the requirements specified in Exhibit "A". 5. Pricing and Invoicing 5.1 Supplier will invoice for Ferric Chloride delivered in accordance with Exhibit "A", and in accordance with the unit price(s) listed in Exhibit 'B". Prices shall include all cartage and taxes except California State Sales Tax. The sales tax will be paid by OCSD. 5.2 OCSD shall pay, net thirty (30) days, upon receipt and approval by OCSD of itemized invoices, submitted in a form acceptable to OCSD to enable audit of the charges thereon. Supplier shall email invoices to OCSD Accounts Payable at APStaff(a)-0CSD.com and "INVOICE"with the Purchase Order Number and Ferric Chloride shall be referenced in the subject line. All invoices shall include a description of the delivery location,the delivery date and the unit price(s). 6. Modifications 6.1 This Agreement may be modified or changed only by written instrument in the form of an amendment to this Agreement signed by both Parties. 6.2 Pricing modifications:The prices established in this Agreement shall remain firm forthe one- year Agreement term. Quarterly pricing will not be accepted. Any adjustments made will allow for increases or decreases in the manufactured cost of the Ferric Chloride and will be based upon OCSD validated information furnished by Supplier and OCSD sources. Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed unit price increase or decrease. 7. Agreement Term The Services provided under this Agreement shall be for the period of one (1)year commencing on July 1, 2019 and continuing through June 30, 2020. 8. Renewals 8.1 OCSD may exercise the option to renew the Agreement for up to four (4) one-year periods based upon the criteria set forth in Exhibit "A", if mutually acceptable terms can be negotiated. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 8.1.1 Renewals may be made through the OCSD Purchase Order Process. 8.2 The prices established in the original Agreement may be adjusted. The adjustment will allow for any increase or decrease in the manufactured cost of the Ferric Chloride and will be based upon OCSD validated information furnished by Supplier and OCSD sources. Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed unit price increase or decrease. 8.2.1 Price adjustments shall be made by amendment to this Agreement signed by both Parties. 9. Termination 9.1 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. Upon receipt of a termination notice, Supplier shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Supplier for work performed (cost and fee) to the date of termination. Supplier 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 Orange County Sanitation District 3 of 9 Specification No. C-2019-1037BD 120518 OCSD from any further fee, cost or claim hereunder by Supplier other than for work performed to the date of termination. 9.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD's determination that Supplier is not meeting specification requirements for delivery of quantities needed, the level of service is inadequate, for poor quality of product, for OCSD unapproved increase in unit price(s), or any other default or breach of this Agreement. 9.3 OCSD may also immediately terminate for default of this Agreement in whole or in part by written notice to Supplier: • if Supplier becomes insolvent or files a petition under the Bankruptcy Act; or • if Supplier sells its business; or • if Supplier breaches any of the terms of this Agreement; or • if total amount of compensation exceeds the amount authorized under this Agreement. 9.4 All OCSD property in the possession or control of Supplier shall be returned by Supplier to OCSD upon demand, or at the termination of this Agreement, whichever occurs first. 10. Indemnification and Hold Harmless Supplier shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Supplier's services under this Agreement,or by its subcontractor or by anyone directly or indirectly employed by Supplier, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OCSD, Supplier shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Supplier's performance under this Agreement, and/or (b) on account of any goods and services provided under this Agreement. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Supplier of or anyone employed by or working under Supplier. To the maximum extent permitted by law, Supplier's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Supplier agrees to provide this defense immediately upon written notice from OCSD,and with well qualified,adequately insured, and experienced legal counsel acceptable to OCSD. This section shall survive the expiration or early termination of the Agreement. 11. Insurance Supplier 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, Exhibit"C". Supplier shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Supplier 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. Orange County Sanitation District 4 of 9 Specification No. C-2019-1037BD 120518 12. Equipment Loss OCSD will be responsible for any loss or damage to Supplier-owned equipment, when OCSD determines OCSD is at fault, only to the extent of OCSD's fault, and will reimburse Supplier for such loss or damage upon receipt of invoices, minus a deduction for any amount determined to be the fault of Supplier or its subcontractor or a third party. 13. Conflict of Interest and Reporting Supplier shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. 14. Supplier's Relationship to OCSD Supplier's relationship to OCSD in the performance of this Agreement is that of an independent contractor. The personnel performing Services under this Agreement shall, at all times, be under Supplier's exclusive direction and control, and shall be employees of Supplier and not employees of OCSD. Supplier shall pay all wages, salaries and other amounts due its employees in connection with this Agreement, and shall be responsible for all legal reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation,worker's compensation and similar matters. 15. OCSD Safety Standards 15.1 In addition to the requirements set forth in Exhibit "A", Supplier shall meet with personnel from OCSD'S Risk Management Division prior to providing Services to OCSD to review safety and accident prevention policies and procedures. All subcontractors should be present at this meeting. Supplier is responsible to inform all subcontractors of the items discussed at this meeting. Supplier shall not be permitted to provide Services to OCSD prior to this meeting. 15.2 OCSD requires Supplier and its subcontractor(s)to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Safety Standards while working at OCSD locations. If during the course of the Agreement it is discovered that OCSD Safety Standards do not comply with Federal, State, or local regulations, then the Supplier is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Supplier and all of its employees and subcontractors, shall adhere to all applicable OCSD Safety Standards attached hereto in Exhibit"D"and the Human Resources Policies (Exhibit „E"). 16. Drug-Free Workplace All employees of Supplier who will perform work under this Agreement must adhere to the California Drug-Free Workplace Act, Government Code Sections 8350 through 8357. 17. Assignments Neither this Agreement nor any interest herein or any claim hereunder may be assigned by Supplier either voluntarily or by operation of law, nor may all or substantially all of this Agreement be further subcontracted by Supplier without the prior written consent of OCSD. 16. Attorney's Fees If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to any other relief to which it may be entitled. Orange County Sanitation District 5 of 9 Specification No. C-2019-1037BD 120518 19. Permits. Ordinances and Regulations Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement shall be paid by Supplier. Fees demanded for obtaining certificates, including associated inspection fees and expenses of regulatory inspectors shall be paid by Supplier. 20. Training Certification When required by regulation, certificates of training shall be maintained on-site for the duration of the activity that requires an employee of Supplier to be certified. Certificates shall be current. Lack of certificates when required will be cause for removal of offending personnel from the site, termination of the Agreement, or both. 21. Compliance with Law Supplier warrants that under the performance of this Agreement, it shall comply with all applicable Federal, State and local laws, and all lawful orders rules and regulations thereunder. In connection with the execution of this Agreement, Supplier shall not discriminate against employees or an applicant for employment because of race, religion, color, sex or national origin. Supplier shall take affirmative action to ensure that applicants are employed and employees are treated during their employment without regard to their race, religion, color, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay-off or termination; rate of pay, or other forms of compensation; and selection for training, including apprenticeship. 22. Disputes 22.1 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. Pending final resolution of a dispute hereunder, Supplier shall proceed diligently with the performance of this Agreement and in accordance with OCSUS decision. 22.2 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 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. 22.3 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(2)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 (3)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. Orange County Sanitation District 6 of 9 Specification No. C-2019-1037BD 120518 23. Right to Review Services. Facilities. and Records 23.1 OCSD reserves the right to review any portion of the Services performed by Supplier under this Agreement, and Supplier agrees to cooperate to the fullest extent possible. Supplier shall furnish to OCSD such reports, statistical data, and other information pertaining to Supplier's Services as shall be reasonably required by OCSD to carry out its rights and responsibilities under its agreements with its bondholders or noteholders an in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bond and other obligations. 23.2 The right of OCSD to review or approve specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Supplier shall not relieve Supplier of any obligation set forth herein. 24. Incorporated Documents 24.1 The Scope of Work, Proposal,Acknowledgement of Insurance Requirements, OCSD Safety Standards, and Human Resources Policies are hereby incorporated into and made a part of this Agreement, and unless modified or changed hereinabove, are controlling for all matters pertaining to the supply of Ferric Chloride and the manner of performance thereof. 24.2 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the other incorporated documents, the provisions of this Agreement shall in all respects govem and control. 25. Severability Any provision of this Agreement which is found to be invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, and the invalidity or unenforceability of such provision shall not affect the validity or enforceability of the remaining provisions hereof. 26. Waiver 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. 27. Breach Any breach by Supplier to which OCSD does not object shall not operate as a waiver of OCSD to seek remedies available to it for any subsequent breach. 2& Public Contracts Law OCSD is subject to the provisions listed in the prevailing wage determination made by the Director of the Department of Industrial Relations pursuant to California Labor Code Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1. It is agreed that all provisions of law applicable to public contracts are part of this Agreement to the same extent as though set forth herein and will be complied with by Supplier. Supplier shall not pay less than the prevailing wage. 29. South Coast Air Quality Management District's (SCAQMD) Requirements It is Supplier'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 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. 30. Performance Time is of the essence in the performance of the provisions hereof. Orange County Sanitation District 7 of 9 Specification No. C-2019-1037BD 120518 31. Familiarity with Work By executing this Agreement, Supplier 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 Supplier 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 Supplier's risk, until written instructions are received from OCSD. 32. Damage to OCSD'S Property Any OCSD property damaged by Supplier, its subcontractor(s), or by the personnel of either will be subject to repair or replacement by Supplier at no cost to OCSD. 33. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Supplier. 34. 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. 35. Read and Understood By signing this Agreement, Supplier represents that it has read and understood the terms and conditions of the Agreement. 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. 37. 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: Jackie Lagade Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Supplier: R.L. Horne President Pencco, Inc. 831 Bartlett Road Sealy, TX 77474 Orange County Sanitation District 8 of 9 Specification No. C-2019-1037BD 120518 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Lorenzo Tyner Assistant General Manager Administrative Services Director PENCCO, INC. Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 9 of 9 Specification No. C-2019-1037BD 120518 CHEMICAL SUPPLIER AGREEMENT Purchase of Liquid Ferric Chloride (FeC13) Specification No. C-2019-1037BD 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 (hereinafter referred to as"OCSD") and Kemira Water Solutions, Inc. with a principal place of business at 4321 West 6'h Street, Lawrence, KS 66049 (hereinafter referred to as "Supplier")collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to temporarily engage Supplier to provide Ferric Chloride (FeC13) as described in Exhibit"A"; and WHEREAS, Supplier submitted its Proposal dated March 28, 2019; and WHEREAS, on May 22, 2019, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Supplier; and WHEREAS, OCSD has chosen Supplier to provide Ferric Chloride (FeC13) in accordance with Ordinance No. OCSD-52; and NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agreed as follows: 1. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement') is made by OCSD and the Supplier. The terms and conditions herein exclusively govern the purchase of Ferric Chloride (FeC13)as described in 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. Exhibit"A" Scope of Work Exhibit"B" Proposal Exhibit"C' Acknowledgement of Insurance Requirements Exhibit"D" OCSD Safety Standards Exhibit"E" Human Resources Policies Exhibit"F" Not Used 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 This Agreement may not be modified, changed, or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties. 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 section or provision hereof. Orange County Sanitation District 1 of 9 Specification No. C-2019-1037BD 120518 1.6 The term "days", when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays. 1.7 The term "workday'. Workdays are defined as all days that are not Saturday, Sunday, or OCSD observed holidays. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8 a.m. and 4 p.m. (exception is Operations staff who maintain plant operations 24 hours per day 7 days per week and work a rotated 12- hour shift) and shall conform to OCSD work schedules. 1.8 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents Day, Memorial Day, Independence Day, Labor Day,Veterans Day,Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.9 Work Hours: The work required under this Agreement may include normal business hours, evenings, and weekends. 1.10 Supplier shall provide OCSD with all required premiums and/or overtime work at no charge beyond the total amount of the Agreement. 1.11 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Supplier as a result of work performed in anticipation of purchases of said services by OCSD. 2. Defivery 2.1 LOCATIONS: Deliveries shall be made in accordance with the Scope of Work, Exhibit "A". 2.2 OCSD will pay only for the actual quantity of Ferric Chloride delivered, based upon certified tare weight and net weight. The quantity invoiced by Supplier and payable by OCSD will be for the total net weight of Ferric Chloride delivered (loaded gross weight minus the tare weight). Tare weight shall be determined immediately after each delivery and prior to cleaning, emptying, or clearing the delivery tank. 2.3 A bill of lading shall accompany all shipments in accordance with Exhibit"A". 3. Possession Ownership and control of all Ferric Chloride delivered pursuant to this Agreement shall remain solely and exclusively with Supplier, until complete transfer of possession by delivery to OCSD at the designated locations is made by Supplier. 4. Quant! 4.1 OCSD makes no guarantee to actual use or quantity of Ferric Chloride purchased. Use may be sporadic based on the wastewater treatment requirements unique to each treatment plant. 4.2 OCSD will, through the term of this Agreement, purchase Ferric Chloride from Supplier exclusively, except when OCSD determines Supplier cannot make delivery within the time specified,with the quality and quantity specified, at the Agreement price,the level of Service is inadequate, OCSD unapproved increase in active dry pound rate or for any other default or breach of this Agreement. In such event, OCSD may purchase Ferric Chloride elsewhere and charge Supplier any difference in the delivered price to OCSD from that provided in this Agreement, or alternatively, OCSD may terminate the Agreement based on said breach or failure to deliver the specified product. Quality control tests will be performed by OCSD on Orange County Sanitation District 2 of 9 Specification No. C-2019-1037BD 120518 the delivered Ferric Chloride to ensure it is consistent with the requirements specified in Exhibit "A". 5. Pricing and Invoicing 5.1 Supplier will invoice for Ferric Chloride delivered in accordance with Exhibit "A", and in accordance with the unit price(s) listed in Exhibit 'B". Prices shall include all cartage and taxes except California State Sales Tax. The sales tax will be paid by OCSD. 5.2 OCSD shall pay, net thirty (30) days, upon receipt and approval by OCSD of itemized invoices, submitted in a form acceptable to OCSD to enable audit of the charges thereon. Supplier shall email invoices to OCSD Accounts Payable at APStaff(a)-0CSD.com and "INVOICE"with the Purchase Order Number and Ferric Chloride shall be referenced in the subject line. All invoices shall include a description of the delivery location,the delivery date and the unit price(s). 6. Modifications 6.1 This Agreement may be modified or changed only by written instrument in the form of an amendment to this Agreement signed by both Parties. 6.2 Pricing modifications:The prices established in this Agreement shall remain firm forthe one- year Agreement term. Quarterly pricing will not be accepted. Any adjustments made will allow for increases or decreases in the manufactured cost of the Ferric Chloride and will be based upon OCSD validated information furnished by Supplier and OCSD sources. Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed unit price increase or decrease. 7. Agreement Term The Services provided under this Agreement shall be for the period of one (1)year commencing on July 1, 2019 and continuing through June 30, 2020. 8. Renewals 8.1 OCSD may exercise the option to renew the Agreement for up to four (4) one-year periods based upon the criteria set forth in Exhibit "A", if mutually acceptable terms can be negotiated. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 8.1.1 Renewals may be made through the OCSD Purchase Order Process. 8.2 The prices established in the original Agreement may be adjusted. The adjustment will allow for any increase or decrease in the manufactured cost of the Ferric Chloride and will be based upon OCSD validated information furnished by Supplier and OCSD sources. Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed unit price increase or decrease. 8.2.1 Price adjustments shall be made by amendment to this Agreement signed by both Parties. 9. Termination 9.1 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. Upon receipt of a termination notice, Supplier shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Supplier for work performed (cost and fee) to the date of termination. Supplier 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 Orange County Sanitation District 3 of 9 Specification No. C-2019-1037BD 120518 OCSD from any further fee, cost or claim hereunder by Supplier other than for work performed to the date of termination. 9.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD's determination that Supplier is not meeting specification requirements for delivery of quantities needed, the level of service is inadequate, for poor quality of product, for OCSD unapproved increase in unit price(s), or any other default or breach of this Agreement. 9.3 OCSD may also immediately terminate for default of this Agreement in whole or in part by written notice to Supplier: • if Supplier becomes insolvent or files a petition under the Bankruptcy Act; or • if Supplier sells its business; or • if Supplier breaches any of the terms of this Agreement; or • if total amount of compensation exceeds the amount authorized under this Agreement. 9.4 All OCSD property in the possession or control of Supplier shall be returned by Supplier to OCSD upon demand, or at the termination of this Agreement, whichever occurs first. 10. Indemnification and Hold Harmless Supplier shall assume all responsibility for damages to property and/or injuries to persons, including accidental death, which may arise out of or be caused by Supplier's services under this Agreement,or by its subcontractor or by anyone directly or indirectly employed by Supplier, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of or willful misconduct of OCSD, Supplier shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Supplier's performance under this Agreement, and/or (b) on account of any goods and services provided under this Agreement. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Supplier of or anyone employed by or working under Supplier. To the maximum extent permitted by law, Supplier's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Supplier agrees to provide this defense immediately upon written notice from OCSD,and with well qualified,adequately insured, and experienced legal counsel acceptable to OCSD. This section shall survive the expiration or early termination of the Agreement. 11. Insurance Supplier 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, Exhibit"C". Supplier shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Supplier 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. Orange County Sanitation District 4 of 9 Specification No. C-2019-1037BD 120518 12. Equipment Loss OCSD will be responsible for any loss or damage to Supplier-owned equipment, when OCSD determines OCSD is at fault, only to the extent of OCSD's fault, and will reimburse Supplier for such loss or damage upon receipt of invoices, minus a deduction for any amount determined to be the fault of Supplier or its subcontractor or a third party. 13. Conflict of Interest and Reporting Supplier shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. 14. Supplier's Relationship to OCSD Supplier's relationship to OCSD in the performance of this Agreement is that of an independent contractor. The personnel performing Services under this Agreement shall, at all times, be under Supplier's exclusive direction and control, and shall be employees of Supplier and not employees of OCSD. Supplier shall pay all wages, salaries and other amounts due its employees in connection with this Agreement, and shall be responsible for all legal reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation,worker's compensation and similar matters. 15. OCSD Safety Standards 15.1 In addition to the requirements set forth in Exhibit "A", Supplier shall meet with personnel from OCSD'S Risk Management Division prior to providing Services to OCSD to review safety and accident prevention policies and procedures. All subcontractors should be present at this meeting. Supplier is responsible to inform all subcontractors of the items discussed at this meeting. Supplier shall not be permitted to provide Services to OCSD prior to this meeting. 15.2 OCSD requires Supplier and its subcontractor(s)to follow and ensure their employees follow all Federal, State, and local regulations as well as OCSD Safety Standards while working at OCSD locations. If during the course of the Agreement it is discovered that OCSD Safety Standards do not comply with Federal, State, or local regulations, then the Supplier is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Supplier and all of its employees and subcontractors, shall adhere to all applicable OCSD Safety Standards attached hereto in Exhibit"D"and the Human Resources Policies (Exhibit „E"). 16. Drug-Free Workplace All employees of Supplier who will perform work under this Agreement must adhere to the California Drug-Free Workplace Act, Government Code Sections 8350 through 8357. 17. Assignments Neither this Agreement nor any interest herein or any claim hereunder may be assigned by Supplier either voluntarily or by operation of law, nor may all or substantially all of this Agreement be further subcontracted by Supplier without the prior written consent of OCSD. 16. Attorney's Fees If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to any other relief to which it may be entitled. 19. Permits. Ordinances and Regulations Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement shall be paid by Supplier. Fees demanded for obtaining Orange County Sanitation District 5 of 9 Specification No. C-2019-1037BD 120518 certificates, including associated inspection fees and expenses of regulatory inspectors shall be paid by Supplier. 20. Training Certification When required by regulation, certificates of training shall be maintained on-site for the duration of the activity that requires an employee of Supplier to be certified. Certificates shall be current. Lack of certificates when required will be cause for removal of offending personnel from the site, termination of the Agreement, or both. 21. Compliance with Law Supplier warrants that under the performance of this Agreement, it shall comply with all applicable Federal, State and local laws, and all lawful orders rules and regulations thereunder. In connection with the execution of this Agreement, Supplier shall not discriminate against employees or an applicant for employment because of race, religion, color, sex or national origin. Supplier shall take affirmative action to ensure that applicants are employed and employees are treated during their employment without regard to their race, religion, color, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay-off or termination; rate of pay, or other forms of compensation; and selection for training, including apprenticeship. 22. Disputes 22.1 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. Pending final resolution of a dispute hereunder, Supplier shall proceed diligently with the performance of this Agreement and in accordance with OCSUS decision. 22.2 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 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. 22.3 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(2)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 (3)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. Orange County Sanitation District 6 of 9 Specification No. C-2019-1037BD 120518 23. Right to Review Services. Facilities. and Records 23.1 OCSD reserves the right to review any portion of the Services performed by Supplier under this Agreement, and Supplier agrees to cooperate to the fullest extent possible. Supplier shall furnish to OCSD such reports, statistical data, and other information pertaining to Supplier's Services as shall be reasonably required by OCSD to carry out its rights and responsibilities under its agreements with its bondholders or noteholders an in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bond and other obligations. 23.2 The right of OCSD to review or approve specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Supplier shall not relieve Supplier of any obligation set forth herein. 24. Incorporated Documents 24.1 The Scope of Work, Proposal,Acknowledgement of Insurance Requirements, OCSD Safety Standards, and Human Resources Policies are hereby incorporated into and made a part of this Agreement, and unless modified or changed hereinabove, are controlling for all matters pertaining to the supply of Ferric Chloride and the manner of performance thereof. 24.2 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the other incorporated documents, the provisions of this Agreement shall in all respects govem and control. 25. Severability Any provision of this Agreement which is found to be invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, and the invalidity or unenforceability of such provision shall not affect the validity or enforceability of the remaining provisions hereof. 26. Waiver 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. 27. Breach Any breach by Supplier to which OCSD does not object shall not operate as a waiver of OCSD to seek remedies available to it for any subsequent breach. 2& Public Contracts Law OCSD is subject to the provisions listed in the prevailing wage determination made by the Director of the Department of Industrial Relations pursuant to California Labor Code Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1. It is agreed that all provisions of law applicable to public contracts are part of this Agreement to the same extent as though set forth herein and will be complied with by Supplier. Supplier shall not pay less than the prevailing wage. 29. South Coast Air Quality Manaaement District's (SCAQMD) Requirements It is Supplier'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 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. 30. Performance Time is of the essence in the performance of the provisions hereof. Orange County Sanitation District 7 of 9 Specification No. C-2019-1037BD 120518 31. Familiarity with Work By executing this Agreement, Supplier 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 Supplier 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 Supplier's risk, until written instructions are received from OCSD. 32. Damage to OCSD'S Property Any OCSD property damaged by Supplier, its subcontractor(s), or by the personnel of either will be subject to repair or replacement by Supplier at no cost to OCSD. 33. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Supplier. 34. 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. 35. Read and Understood By signing this Agreement, Supplier represents that it has read and understood the terms and conditions of the Agreement. 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. 37. 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: Jackie Lagade Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Supplier: Christina M. Imbrogno Customer Service Manager Kemira Water Solutions, Inc. 4321 West6' Street Lawrence, KS 66049 Orange County Sanitation District 8 of 9 Specification No. C-2019-1037BD 120518 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver Chair, Board of Directors Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Lorenzo Tyner Assistant General Manager Administrative Services Director KEMIRA WATER SOLUTIONS, INC. Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 9 of 9 Specification No. C-2019-1037BD 120518 5/1/201s ■ Iron Based Chemicals in Wastewater Treatment Ott 11 rZ !Iiillk &A CI CI Ci CI ■IYte- • Coagulant of choice for WWT applications due to its high efficiency and effectiveness in clarifying and reducing suspended solids • Reacts with sulfates to prevent the formation hydrogen sulfide odors Cost — • $600-750 per dry ton ($25-31 per 1,000 gal) x 7,077 dry tons = $4.2-5.3M Alternatives — None as effective, some create additional sludge • Aluminum Sulfate, Aluminum Chloride and Sodium Aluminate , • Ferrous Chloride, Ferric/Ferrous Sulfate 2 1 s/1/2o1s Ferric Chloride Commercial Considerations • Ferric is a specialty chemical with a limited number of suppliers • In the past there have been industry consolidations (single supplier) and price spikes. • Vendors require a significant supply chain/infrastructure to make/purchase and transport the product. • The District has adopted a policy to support multiple vendors to maintain competition in the market. This is the basis for recommending two contracts to supply the same chemical. 3 Regional Z' Pacific Duality Partners NPOP)BMa ..u„ YOrOa Llnpe Ha9u rA80f80 cucynn •DOOaO�MroI SUIIOn 36 Caustic Slug Dosed Manholes Buena Padfl, q„ g Chemical Dealing Stations o ^„"„Es Fe—Chlonot(6) cv✓ Camum Neale(a) . sGD$D -Ma3mslum NWo* „13I „6 TiXa y PSPe� .yw.uee.-s — auns—er 4 SBe�San r Ciry ...an piwse) Pump"station Sa nary Distract eXr" Nnoa lnrcr¢pWr n„ ry Min St NcwynlT.sent 'pJ Pllmp$lallOn . Mnmt.e ocso sow.. Es. 0IRWD Michelson WWTP Bay Bndge Nle Pump Station 1 Crystal Cove A Pump station 4 2 s/1/2o1s 'Ca(NO3)2 Collection Liquid-Phase rCa(I '�, 1 calcium 6 axygens C' '• 2 nArogens • Ferrous chloride — oxidize and/or precipitate dissolved sulfide. • Sodium hydroxide — deactivating/inhibiting the slime layer. • Calcium nitrate — prevent the formation of sulfides • Magnesium hydroxide — adjustment of pH, suppress odors 1 uyb....q•mwem� Recommendation 5 z • Staff recommend the continued use of ferric chloride and ferrous chloride for odor control and enhanced settling of sludge. • Staff recommend the award of two agreements for ferric chloride purchase to support market competition and resilient supply. • Staff recommend the approval of ferrous chloride contingency increases due to changes in market conditions. 6 3 OPERATIONS COMMITTEE Melting D310 TOBE.Of Dir. 05/01/19 05/22/19 AGENDA REPORT Item Item Number 7 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: REGIONAL ODOR AND CORROSION CONTROL SERVICES (ROCCS) PROGRAM, SPECIFICATION NO. C-2017-899BD — CONTINGENCY INCREASE GENERAL MANAGER'S RECOMMENDATION Approve a unit price contingency increase of $116.39/dry ton (11.91%) to the Ferrous Chloride Chemical Agreement with Hill Brothers Chemical Company for the Regional Odor and Corrosion Control Services Program, Specification No. C-2017-899BD, for the period beginning July 1, 2019 through June 30, 2020, for a new total contingency amount not to exceed $136.93/dry ton (26.91%); an estimated total amount of$2,583,000. BACKGROUND In April, 2018, the Orange County Sanitation District's (Sanitation District) Board of Directors awarded an agreement to Hill Brothers Chemical Company (the Supplier) for the Regional Odor and Corrosion Control Services (ROCCS) Program, Specification No. C-2017-89913D, for the supply, delivery, and dosing services of Ferrous Chloride at the unit price of $508.82/dry ton delivered (plus applicable sales tax); with Application Services at a unit price of $25 per site per day and Field Services at a unit price of $25 per site per day for an estimated total annual amount of $2,001,263, for the period July 1, 2018 through June 30, 2019, with four (4) one-year renewal options, and an annual unit price and program price contingency of 15% per Agreement. Also, the supplier provides all necessary equipment including tanks, containment, pumps, piping, secure fencing, and equipment monitoring to determine tank levels, leaks, and pump rates. In summary, the unit cost will be $645.75/dry ton delivered plus application and field service fees. The Sanitation District's ROCCS program currently operates nine continuous chemical dosing sites located in nine member-agency cities. When staff initiated the agreement renewal process with the Supplier, the Supplier notified staff that there will be an increase in the unit price for ferrous chloride. Some of the reasons cited for the unit price increase are related to (a)trucking and rail freight costs increase, (b) scrap metal rose 12%, and (c) U.S. Tariffs on steel. Furthermore, when looking for comparison in the iron-based chemical market, staff found that the proposed increase in unit price for ferrous chloride compare to ferric chloride ranges between 33-51%. Page 1 of 3 RELEVANT STANDARDS • 12 or fewer odor complaints per year under normal operating conditions in the collections system • Zero odor incidents/events under normal operating conditions for Plant Nos. 1 and 2 • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The chemical unit cost has increased beyond the approved contingency amount. PROPOSED SOLUTION Staff recommends approval of the unit price increase. TIMING CONCERNS If no action is taken, then a lapse in service for odor control will occur. RAMIFICATIONS OF NOT TAKING ACTION Without action, ferrous chloride addition in the collection system will cease. Normal biological action in the sewer system will produce hydrogen sulfide which causes odor and corrosion problems in the collection system. PRIOR COMMITTEE/BOARD ACTIONS April 2018 -Awarded an Agreement to Hill Brothers Chemical Company for the ROCCS Program, Specification No. C-2017-89913D, for ferrous chloride chemical supply and dosing services forthe period July 1, 2018 through June 30, 2019,with four(4)one-year renewal options, for the: for the: Supply and delivery of Ferrous Chloride at the unit price of$508.82/dry ton delivered (plus applicable sales tax);with Application Services at a unit price of$25/per site per day and Field Services at a unit price of$25/per site per day for an estimated total annual amount of$2,001,263; and approved an annual unit price and program price contingency of 15%, per agreement. ADDITIONAL INFORMATION Reasons cited for market increase in ferrous chloride: • China curtailing production of ferrous chloride • US Tariffs on steel imports used in producing ferrous chloride • Oil and gas fracturing competing for hydrochloric acid used in producing ferrous chloride • Trucking and rail freight cost increases have been substantial in 2018 Page 2 of 3 • Scrap metal rose 12% from 2017-2018 • Chlorine costs have risen 5 to 10% Staff evaluated the cost benefits of changing the chemicals used to prevent hydrogen sulfide formation. Magnesium hydroxide or calcium nitrate are alternatives. The cost for the alternative options will be higher compared to ferrous chloride. To replace ferrous chloride with magnesium hydroxide, the cost would be estimated at$7,226,000, and with calcium nitrate, the cost would be estimated at $6,834,000. Also, the treatment plants will lose the benefit of the residual iron received from upstream treatment. For Fiscal Year 2020-21, staff intends to bid out the contract. For comparative purposes, this Supplier also supplies and delivers magnesium hydroxide under the ROCCS Program. During negotiation, the Supplier agreed to hold the unit price for the magnesium hydroxide chemical and their program pricing. FINANCIAL CONSIDERATIONS This complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted in the FY 17-18 Budget, Division 820 (Line item: Supplies, Section 6, page 76). Date of Approval Contract Amount Contingency 05/22/2019 $2,583,000 (Total) $387,450 (15%)(Program and Unit Price) 0412512018 $2,001,263 $300,189 (15%) (Program and Unit Price ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • May 1, 2019 Operations Committee PowerPoint Presentation (same presentation as provided in Item No. 9) MPV:cf:gC Page 3 of 3 ADMINISTRATION COMMITTEE Meeting Date TOBE.Or Dir. 05/08/19 05/22/19 AGENDA REPORT Item Item Number 2 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT GENERAL MANAGER'S RECOMMENDATION A. Approve an Annual Purchase Order Contract with Dataskill, Inc. for the renewal of software licensing and maintenance for IBM Maximo and WebSphere, for an amount not to exceed $173,774, for the period beginning July 1, 2019 through June 30, 2020, with four (4) one-year renewal options; and B. Approve a contingency of$26,066 (15%). BACKGROUND IBM Maximo was implemented in January 2015 and is used by Orange County Sanitation District's (Sanitation District) Operations and Maintenance Department in the lifecycle management of the treatment plants' physical assets. The product provides real-time visibility into asset performance and enables staff to proactively control and optimize asset performance. This includes improved asset and labor productivity, better optimization of maintenance resources, improved efficiency in inventory management, and prevention of asset failure. IBM WebSphere is a necessary software component of JD Edwards, the Sanitation District's Financial Management system. To properly maintain and repair the Sanitation District facilities, the Information Technology (IT) division needs to purchase software support and maintenance as a service for IBM Maximo and IBM WebSphere software. Such requirements will help maintain our Enterprise Asset Management system (IBM Maximo) and the Financial Management system. The renewal and payment for software support and maintenance is executed on an annual basis. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Maintain a proactive asset management program • Maintain a culture of improving efficiency to reduce the cost to provide the current Page 1 d 3 PROBLEM The annual software maintenance for IBM Maximo and IBM WebSphere will expire on June 30, 2019. Failure to renew the software licensing and maintenance will prevent the Sanitation District from accessing software support and necessary updates from IBM to enhance and correct any software issues that may cause interruption in service. PROPOSED SOLUTION Renew the annual software maintenance for IBM Maximo and IBM WebSphere before June 30, 2019. TIMING CONCERNS The renewal must be completed prior to June 30, 2019. RAMIFICATIONS OF NOT TAKING ACTION Not renewing the annual software maintenance will cause the Sanitation District to lose support and software enhancements from IBM. The Sanitation District would also need to repurchase all the software at a cost of more than a million dollars. PRIOR COMMITTEE/BOARD ACTIONS May 2018—Administration Committee approved an Annual Purchase Order Contract with Dataskill, Inc.for the Renewal of Software Licensing and Maintenance Agreement for IBM Maximo and WebSphere, for an amount not to exceed $167,676; and approved a contingency of$16,768 (10%). ADDITIONAL INFORMATION For the upcoming year's renewal, the Sanitation District's Purchasing Division, in collaboration with the IT division, administered a bidding process for this purchase (Specification No. S-2019-1045BD), obtaining competitive sealed bids from vendors in accordance with Section 2.02 of the Sanitation District's Purchasing Ordinance. The Sanitation District received responses from Dataskill, GlassHouse Systems, Fields Consulting services, and Saitech Inc. Saitech Inc. initially came in as the lowest bidder, but the bid did not account for all line items; hence, Saitech Inc. withdrew their bid. The next lowest and most responsive and responsible proposer was Dataskill, Inc. with a bid of $173,774. Staff recommends selection of Dataskill, Inc. to provide IBM Tivoli Maximo and WebSphere (EnterpriseOne) annual subscription and support. The 15% contingency requested is to cover the annual increase in license cost for the four (4) one-year optional renewals. Page 2 of 3 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (FY2018-19 Budget, Section 6, Page 36, Line item: Repairs & Maintenance). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A Page 3 d 3 ADMINISTRATION COMMITTEE Meeting Date TOBE.Or Dir. 05/08/19 05/22/19 AGENDA REPORT Item Item Number 4 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST GENERAL MANAGER'S RECOMMENDATION A. Receive and file Orange County Sanitation District purchases made under the General Manager's authority for the period of January 1, 2019 to March 31, 2019; and B. Approve the following additions to the pre-approved OEM Sole Source List for the period of January 1, 2019 to March 31, 2019: • DME - Expansion Joints • DRAKE CONTROLS - On-site Training for Woodward Governor Controls • ENVIRONMENTAL RESOURCES ASSOCIATES (ERA) - Quality Control Standards • ORANGE COUNTY SHERIFF'S DEPARTMENT - Law Enforcement and Security Services • OVIVO - Trickling Filter Clarifier Assessment and Repairs • SDT NORTH AMERICAN - On-site Training for Ultrasound Detectors • TPC TRAINING - On-site Electricity Training BACKGROUND Staff provides the Administration Committee and the Board of Directors quarterly reports of General Manager approved and executed purchases between $50,000 and $100,000; maintenance and repair Services Task Orders between $50,000 and $300,000; and additions to the pre-approved OEM Sole Source List. The list of additions to the pre-approved OEM Sole Source List displays the original equipment manufacturers (OEM)added this quarter that require sole source procurement to maintain, service, or replace equipment currently in operation at Orange County Sanitation District (Sanitation District)facilities because the parts and/or service can only be provided by the OEM or their designated representative. RELEVANT STANDARDS • Quarterly Financial Reporting • Ensure the public's money is wisely spent Page 1 d 4 PRIOR COMMITTEE/BOARD ACTIONS December 2016 - Minute Order 12(b) authorized the General Manager to ratify additions or deletions to the OEM Sole Source list on the General Manager's quarterly approved purchases agenda report. ADDITIONAL INFORMATION In accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute purchases between $50,000 and $100,000. Below is a summary of General Manager approved purchases, in amounts exceeding $50,000, for the third quarter of fiscal year 2018-19: Vendor Name Amount Department Description/Discussion Maintenance, Testing, and Repair of Fire BEC BUILDING Alarm Systems at Plant 1 and 2 ELECTRONIC $65,000.00 Operations &Maintenance3/1/19 to 2129/20 CONTROLS INC Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 E&M ELECTRIC Wonderware 2017 Historian License AND MACHINERY Upgrades for SCADA(Supervisory Control INC. DBA $70,135.00 Administrative and Data Acquisition) System WONDERWARE Services 218/19 to 11/15/19 WEST Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 iPAC (Information for Planning and ENFOTECH & Administrative Consultation) Support and Services CONSULTING, INC. $70,347.00 Services 11/1/18 to 10/31/19 Board Approved OEM Sole Source List M.O. 12/14/16, Item 12 Purchase of a Gel Permeation Chromatography (GPC) Sample Clean-Up J2 SCIENTIFIC, $54053.61 Environmental System for the Lab , LLC Services Approved CORF Budget FY 18/19 Sole Source Justification 2058 Reason: Unique ProductlService JAMISON Main Street Pump Station Emergency ENGINEERING $g4 707 89 Operations & Force Main Repair CONTRACTORS Maintenance Sole Source Justification 2094 INC Reason: Emergency Page 2 d4 Vendor Name Amount Department Descri tion/Discussion Confidential Studies for Human Resources LIEBERT CASSIDY $60,000.00 Human 7/1/19 to 6/30/20 WHITMORE Resources Sole Source Justification 2019-1090 Reason: Unique Product/Service Purchase of a 2019 Ford F-550 Super Duty Weld Truck NATIONAL AUTO Operations & Approved CORF Budget FY 18/19 FLEET GROUP $83,227.49 Maintenance NJPA Contract# 120716-NAF in accordance with Ordinance OCSD-52, Section 2.03 (B) Cooperative Purchases Purchase of Sulfuric Acid 93% NORTHSTAR Operations & Concentration CHEMICAL $74,592.00 Maintenance 3/1/19 to 2/28/20 with 4 Optional 1-Year Renewal Periods Specification No. C-2019-1017 Secondary Contractor for Annual CCTV PERFORMANCE Sewer Inspection Services PIPELINE $60,000.00 Operations & 2/1/19 to 1/31/20 TECHNOLOGIES Maintenance with 4 Optional 1-Year Renewal Periods Specification No. 5-2018-1001 BD Driveshaft Assembly for Climber Screen SUEZ TREATMENT $6848717 Operations & Channel#6 , . SOLUTIONS, INC. Maintenance Board Approved OEM Sole Source List M.O. 8/23/17, Item 9 Additionally, in accordance with Board purchasing policies, Ordinance No. OCSD-52, the General Manager has authority to approve and execute maintenance and repair Services Task Orders between $50,000 and $300,000. Below is a summary of General Manager approved maintenance and repair Services Task Orders, in amounts exceeding $50,000, for the third quarter of fiscal year 2018-19: Vendor Name Amount Department Descri tion/Discussion JAMISON Plant 1 Primary Clarifier 3 Temporary ENGINEERING $6537500 Operations & Repairs (MP-619) , . CONTRACTORS Maintenance Specification No. TOB-2019-1028 of INC Master Service Contract S-2018-942BD-5 Page 3 d4 FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (Mmocsdxom) with the complete agenda package: N/A Page 4 of 4 ADMINISTRATION COMMITTEE Melting D310 TOBE.Of Dir. 05/08/19 05/22/19 AGENDA REPORT Item Item Number s 13 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. BACKGROUND Included in this consolidated report are the following quarterly financial reports for the period ended March 31, 2019: Third Quarter Budget Review The Budget Review Summary provides the Directors, staff, and general public with a comprehensive overview of the financial results of the Orange County Sanitation District (Sanitation District)through the third quarter ended March 31, 2019. • Quarterly Treasurer's Report This section reports on financial portfolio performance with respect to the Sanitation District's funds. Both Long-Term and Liquid Operating Monies Portfolios are summarized. A performance summary table can be found on page 2 of this section. The report also contains information on the U.S. and global economic outlook from the Sanitation District's investment manager, Chandler Asset Management. • Certificates of Participation Quarterly Report The report includes a summary of each outstanding debt issuance and a comparative chart illustrating the COP rate history. RELEVANT STANDARDS • Quarterly financial reporting ADDITIONAL INFORMATION The quarterly treasurer's report contained within the Consolidated Financial Reports for the Third Quarter Ended March 31, 2019 is being submitted in accordance with the Sanitation District's investment policy that requires the report be submitted to the governing body following the end of each quarter and includes the following information: Page 1 of 3 Performance results in comparison with the ICE BAML 3-month treasury bill index for the liquid operating portfolio; and the ICE BAML Corp./Govt. 1-5 Year Bond index for the long-term portfolio as identified in the investment policy; and the time-weighted total rate of return for the portfolio for the prior three months, six months, nine months, twelve months, and since inception compared to the Benchmark returns for the same periods: Portfolio Performance Summary As of March 31,2019 Liquid Operating Monies(%) Long-Tenn Operating Monies(%) Total Rate of Total Rate of Rehm Benchmark Return Benchmark 3 Months 0.63 0.60 1.51 1.42 6 Months 1.21 1.17 2.85 3.01 9 Months 1.73 1.66 3.12 3.22 12 Months 2.18 2.12 3.39 3.39 Annualized Since inception 30 Nov 2014 0.95 0.85 1.45 1.38 • A listing of individual securities held at the end of each reporting period (see the detailed listings of each security contained within the report). • Cost and market values of the portfolios: Liquid Operating Long-Term Cost $108.0 M $502.3 M Market Value $108.5 M $506.2 M • Modified duration of the portfolio compared to Benchmark: Liquid Operating Long-Term District Policy < 0.50 < 5.00 Benchmark 0.16 2.53 Portfolio 0.27 2.39 • Dollar change in value of the portfolio for a one-percent (1%) change in interest rates: Liquid Operating - $291,563 Long-Term - $127090,168 • None of the portfolios are currently invested in reverse repurchase agreements. • The percent of the Liquid Operating Monies portfolio maturing within 90 days: 30.0% Page 2 of 3 • Average portfolio credit quality: Liquid Operating —AA+/Aal Long-Term —AA/Aal • Percent of portfolio with credit ratings below "A" by any rating agency, and a description of such securities: Liquid Portfolio— no exceptions Long-Term Portfolio— Percent of portfolio— 0.6% Cost Maturity Date Moody S&P Fitch SLMA 2008-9 A $ 14,804.19 4/25/2023 Baa3 A B AMRESCO Residential Securities 1999-1 $ 100,432.85 6/25/2029 Not Rated A+ BBB Morgan Stanley Note $3,200,848.00 7/28/2021 A3 BBB+ A • All investments are in compliance with this policy and the California Government Code, except for the following Lehman Brother holdings that the Sanitation District is pursuing collection through the bankruptcy court: Lehman Brothers Note-Defaulted $ 600,000 par value purchased 9/19/2008 Lehman Brothers Note-Defaulted $2,000,000 par value purchased 9/18/2008 • Sufficient funds are available for the Sanitation District to meet its operating expenditure requirements for the next six months. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Consolidated Financial Report for the Third Quarter Ended March 31, 2019 (separate electronic file) Page 3 of 3 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Meeli S/ng Dale TOS/22/19r AGENDA REPORT emNumber Iem1umber 3 14 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Legislative Affairs Update for the month of April 2019. BACKGROUND The Orange County Sanitation District's (Sanitation District) legislative affairs program includes advocating the Sanitation District's legislative interests, sponsoring legislation (where appropriate), and seeking Local, State, and Federal funding for projects and programs. Staff will provide an update on recent legislative and grant activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Without a strong advocacy program, elected officials may not be aware that the Sanitation District is more than a wastewater treatment plant — treating and sending water to the ocean. The Sanitation District is an environmentally engaged organization which recycles more than 50 percent of its wastewater. Additionally, to help meet the goal of 100 percent recycling, the Sanitation District uses the byproducts from the wastewater treatment process to produce biosolids to fertilize crops and energy used to help power the two plants in Fountain Valley and Huntington Beach. PROPOSED SOLUTION Continue to work with Local, State, and Federal officials to advocate the Sanitation District's legislative interests. Help to create/monitor legislation and grants that would benefit the Sanitation District, the wastewater industry, and the community as a whole. Page 1 of 2 To assist in our relationship building activities, we will continue to reach out to our elected officials providing facility tours, one-on-one meetings, and trips to D.C. and Sacramento. RAMIFICATIONS OF NOT TAKING ACTION If we do not work with Local, State, and Federal elected officials, legislation could be passed that negatively affects the Sanitation District and the wastewater industry as a whole. Additionally, this could affect our chances of receiving grant funding. ADDITIONAL INFORMATION On April 24, staff and Board Vice-Chair John Withers attended Congressman Rouda's roundtable on infrastructure. During the event, the Sanitation District had the opportunity to thank the Congressman for the opportunity to discuss the Sanitation District's current Capital Improvement Program and the importance of funding opportunities for infrastructure. Additionally, the Congressman was invited for a Plant No. 1 tour, which has been scheduled for May 29 at 9 a.m. Staff is currently monitoring Senate Bill (SB) 332 by Senator Hertzberg that, in its current state, would mandate a 50 percent reduction of baseline volume by January 1, 2030, and a 95 percent reduction of baseline volume by January 1, 2040. As leaders in resource recovery, the Sanitation District is participating in the California Association of Sanitation Agencies SB 332 workgroup helping to create a framework for the author that represents water and wastewater agencies and the work the agencies do. Staff and the Sanitation District's lobbyist recently met with the Natural Resources Defense Council (NRDC), the sponsor of the Hertzberg bill (SB 332), to discuss how the Sanitation District can serve as a resource to the author and NRDC. During the meeting, suggestions were offered on the bill and how it can be more workable for all water and wastewater agencies. The Sanitation District also committed to continue working with the NRDC and to serve as a resource as this bill continues through the process. The Washington D.C. Advocacy Days has been scheduled for June 17-19, during which current legislation, regulatory affairs, and possible funding opportunities will be discussed. ATTACHMENT The following attachment maybe viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package: • Federal Update & Legislative Matrix - ENS Resources • State Update & Legislative Matrix - Townsend Public Affairs • Grant Matrix • PowerPoint Presentations from 5/13/2019 Committee Meeting Page 2 of 2 Ll �V RESOURCES MEMORANDUM TO: Rebecca Long FROM: Eric Sapirstein DATE: April 22, 2019 SUBJECT: Washington Update Because Congress was on its annual Spring Recess,legislative activities were limited to only the first half of the month. Nonetheless,it is becoming increasingly clear that the legislative agenda is shaping up to focus on two policy matters.The first is the development and passage of the fiscal year 2020 budget. The second involves Ending common ground between the two parties to fashion an infrastructure assistance bill that could garner overwhelming support in both the House and the Senate. The following provides a brief summary of the status of these matters as well as actions taken on the regulatory front. Fiscal Year 2020 Budget Hearings Illustrate Minimal Support for Administration Requests As expected,both the House and Senate Committees on Appropriations and the Committees on Transportation &Infrastructure and Environment and Public Works that hold authority over USEPA's water quality programs kicked off formal reviews of the budget request that the White House transmitted to Congress in March. During these hearings,there was no bipartisan support for the requests to significantly reduce spending on USEPA's water infrastructure-related programs, such as the Clean Water State Revolving Loan Fund(SRF) and the Water Infrastructure Finance and Innovation Act(WIFIA). Instead,the committees' members voiced strong support to at least maintain current year spending,rather than reduce funding by more than a billion dollars. Similarly,support for water recycling assistance programs was voiced when discussions on funding priorities for the U.S. Bureau of Reclamation that has ENS Resuuttm Inc. 1901 Pennsylvania Avenue,N.W. Suite 1005 Washington,D.C.20006 Phone 202.466.3955/TeleW 202.466.3787 provided OCSD with funding for its project. In tandem with this support,a new priority has been identified in the budget process. This involves funding needs associated with the presence of the chemical PFAS in the environment and water supplies. With more than 5,000 known PFAS compounds,the growing concern on the need to develop treatment and removal processes from waters is expected to play a significant role in the debate to provide for additional funding for research and treatment needs,as well as potentially new regulatory mandates to control for the discharge into the environment(see infrastructure discussion below). As of this writing,House consideration of the twelve spending bills remains on schedule with passage by the House by July 1. Senate action that would follow House passage could occur by early September,but given the narrow Senate majority,it is unclear if final passage might happen before the end of fiscal year 2019,delaying any final spending decisions until after November. Infrastructure Legislation Continues to Evolve in House as Senate Action Remains Work in Progress,OCSD Receives Plaudits for Water Recycling Partnership The House Committee on Transportation&Infrastructure continued its review of approaches to address infrastructure needs of the nation. Representative Harley Rouda (D-CA),who sits on the key Subcommittee on Water Resources and Environment with jurisdiction on wastewater infrastructure needs,has sought input on what kinds of issues should be addressed in a committee infrastructure package. OCSD will have the opportunity to discuss what needs and priorities need to be addressed when Rouda visits to tour the facilities. It is clear that the foundation of any wastewater legislation will be a reinvigoration of the SRF program. Under legislation (H.R. 1497) pending before the subcommittee,the program would be authorized at$4 billion annually. Additionally, renewal of the Alternative Water Sources Act,providing direct grants assistance to agencies to construct water recycling facilities and other innovative water supply projects, as well as strengthening subsidized assistance to disadvantaged communities to comply with water quality mandates will likely be part of any infrastructure bill. One new focus is whether the management and treatment of PFAS contaminated waters might become part of a wastewater infrastructure bill. Earlier statements from committee staff that the infrastructure measure would simply be a funding bill seem to be shifting. It has been reported that subcommittee staff are requesting policy options to address water quality improvement needs. One concept that has been floated could have a direct impact upon OCSD. Under current thinking, a mandate could be developed to require industrial dischargers to remove PFAS compounds from a discharge to reduce the introduction of the chemicals into a treatment works. While this would eliminate impacts upon clean water agencies,it could lead to calls to address clean water agency discharges and biosolids, although this has not been advocated to date. In addition to developing infrastructure for water quality needs,the House Committee on Natural Resources has begun establishing a legislative record on the value of water recycling that is expected to be the run-up to approving a new water recycling program. In a hearing on water recycling and other options to develop sustainable water supplies, Representatives Mike Levin (D-CA) and Alan Lowenthal (D-CA),each cited the incredible accomplishments that OCSD and OCWD achieved through GWRS. These comments came as a follow-up to formal testimony presented by OCWD during which it was noted that without the collaboration of OCSD,GWRS would have been unlikely to be realized. Based upon the hearing,it seems increasingly likely that Representative Grace Napolitano's (D-CA) Water Recycling Investment and Improvement Act(H.R. 1162)will become the legislative vehicle to enhance the federal support of local agencies' efforts to construct water recycling facilities and could assist OCSD's efforts. Under H.R. 1162,federal assistance would be authorized at$500 million over five years through the U.S. Bureau of Reclamation's WIIN Act program. OCSD already received funding for feasibility studies under this program and enactment of H.R. 1162 could lead to a new,robust source of funding assistance that OCSD could seek given the award of study funding assistance. Regulation of Groundwater Contamination of Surface Waters As reported in prior updates,a judicial decision,known as the Maui Decision,found that the transport of pollutants by groundwater into a surface water,absent a National Pollutant Discharge Elimination System (NPDES) permit,is a violation of the Clean Water Act. Under California's Porter Cologne water law,this circumstance already exists. However, the decision, currently under appeal to the U.S. Supreme Court,would,if allowed to stand,allow the use of the Clean Water Act's citizen suit provisions for any such violation as well as a violation of any subsequently imposed permit conditions. The past month saw USEPA draw a line in the proverbial sand with policy guidance,stating that the agency disagrees with the Maui Decision. In the guidance,the agency states that it will not consider the introduction of a pollutant into surface waters through groundwater a violation of the Clean Water Act's mandate that a permit is required. ENS Resources,Inc. 1901 Pennsylvania Avenue,N.W. Suite 1005 Washington,D.C.20006 Phone 202.466.3955/TeleW 202.466.3787 OCSD Federal Bills of Interest AUTHORBILL SUMMARY LATEST ACTIONOCSD POSITION Federal Legislation POSITIONS Priority Water Recycling Investment and Improvement Act. Establishes a House-3/4/19 grant program for the funding of water recycling and reuse projects, Referred to H.R. 1162 Rep. Grace Napolitano(D-CA) and for other purposes. Subcommittee on Watch CASA SUPPORTS Water, Oceans, and Wildlife Water Quality Protection and Job Creation Act of 2019. Provides House-03/06/2019 nearly$23.5 billion in direct infrastructure investment over the next five Referred to the years to address wastewater infrastructure and local water quality Subcommittee on H.R. 1497 Rep. Peter DeFazio (D-OR) challenges. This bill allocates $20 billion in grants for the Clean Water Water Resources and Watch CASA SUPPORTS State Revolving Fund. Environment To require the Administrator of the Environmental Protection House-217/19 Agency to shall designate per-and polyfluoroalkyl substances as Referred tp n hazardous substances under the Comprehensive Environmental Subcommittee on H.R. 636 Rep. Debbie Dingell (D-MI) Response, Compensation, and Liability Act of 1960. Railroads, Pipelines, Watch NYC and Hazardous Materials Pacific Northwest Earthquake Preparedness Act of 2019. House-2/6/19 Passed Requires the FEMA to develop a plan for the purchase and installation House by voice vote, of an earthquake early warning system for the Cascadia Subduction received in Senate and Zone.The term "Cascadia Subduction Zone" referred to Committee H.R. 676 Rep. Peter DeFazio(D-OR) on Homeland Security Watch NYC and Governmental Affairs Updated April 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY ESTACTION OCSD POSITION OTHER Regulatory Certainty for Navigable Waters Act. Repeals the Waters House-217119 of the United States rule and amend the Federal Water Pollution Referred to H.R. 667 Rep. Jaime Herrera Beutler(R- Control Act definition of navigable waters, and for other purposes. Subcommittee on Watch NYC Water Resources and Environment A bill to encourage the research and use of innovative materials Senate-2/7/19 and associated techniques in the construction and preservation Referred to Committee S.403 Sen. Sheldon Whitehouse(D- of the domestic transportation and water infrastructure system, on Environment and Watch NYC RI) and for other purposes. Public Works To require the Corps of Engineers to notify affected communities House-2/7/19 before releasing water contaminated with cyanobacteria from Referred to X.R.977 Rep. Brian Mast(R-FL) flood risk management projects, and for other purposes. Subcommittee on Watch NYC Water Resources and Environment To amend the Federal Water Pollution Control Act to limit House-217/19 attorney fees and penalties in citizen suits, and for other Referred to H.R.892 Rep. Duncan Hunter(R-CA) purposes. Subcommittee on Watch NYC Water Resources and Environment California New River Restoration Act of 2019. Requires the USEPA House-217/19 to establish a California New River restoration program for the New Referred to River. USEPA must(1)implement projects, plans, and initiatives for Subcommittee on H.R.358 Rep.Juan Vargas (D-CA) the New River supported by the California-Mexico Border Relations Water Resources and Watch NYC Council; and (2)provide grants and technical assistance for Environment coordinating restoration and protection activities. Updated April 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATESTACTIO!, OCSD POSITION OTHER A bill to amend the Federal Water Pollution Control Act to clarify Senate- 2/7/19 the definition of navigable waters, and for other purposes. Referred to Committee S.376 Sen. Rand Paul (R-KY) on Environment and Watch NYC Public Works National Infrastructure Development Bank Act. Facilitates efficient House-217119 investments and financing of infrastructure projects and newjob Referred to creation through the establishment of a National Infrastructure Subcommittee on Development Bank, and for other purposes. Economic H.R.658 Rep. Rosa DeLauro Development, Public Watch NYC Buildings, and Emergency Management To amend the Water Resources Development Act of 1986 to House-2/12/19 repeal the authority relating to reprogramming during national Referred to the H.R. 1137 Rep.John Garamendi (D-CA) emergencies. Subcommittee on Watch NYC Water Resources and Environment Coastal Communities Adaption Act. Improves the resilience of the House-31619 built and natural environment to natural disasters and climate change Referred to H.R. 1317 Rep. Harley Feuds (D-CA) using, among other measures, natural and nature-based features, and Subcommittee on Watch NYC for other purposes. Water Resources and Environment A bill to require the Administrator of the Environmental Senate-2/28119 Protection Agency to designate per-and poly0uoroalkyl Referred to Committee substances as hazardous substances under the Comprehensive on Environment and S. 638 Sen. Tom Carer D-DE P ( ) Environmental Response, Compensation, Liability Act of 1980, Public Works Watch NYC and for other purposes. Updated April 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY _MLLATESTACTION OCSD POSITION OTHER -J�� POSITIONS A bill to provide adequate funding for water and sewer Senate-2/28/19 infrastructure, and for other purposes. Referred to Committee S. 611 Sen. Bernie Sanders(I-VT) on Environment and Watch NYC Public Works To amend the Federal Water Pollution Control Act to reauthorize House-4/9119 Passed certain programs relating to nonpoint source management,and House 329-56. for other purposes. Received in Senate, H.R. 1331 Rep.Angie Craig (D-MN) referred to Committee Watch NYC on Environment and Public Works To amend the Federal Water Pollution Control Act with respect to House-3/15/19 permitting terms,and for other purposes. Referred to H.R. 1764 Rep.John Garamendi (D-CA) Subcommittee on Watch CASA-Support Water Resources and Environment To amend the Federal Water Pollution Control Act with respect to House-3/15/19 permitting terms,and for other purposes. Referred to H.R. 1764 Rep.John Garamendi(D-CA) Subcommittee on Watch CASA, NACWA,Water Resources and ACWA-Support Environment PFAS Detection Act of 2019. Requires the Director of the United Senate-3/28/19 States Geological Survey to perform a nationwide survey of Referred to Committee S.950 Sen. Debbie Stabenow(D-MI) pernuorinated compounds, and for other purposes. on Environment and Watch NYC Public Works BLUE GLOBE Act. Improves data collection and monitoring of the Senate-3/28119 Sen Great Lakes,oceans, bays, estuaries, and coasts,and for other Referred to Committee S. 933 . Sheldon Whitehouse(D- purposes. on Commerce, Watch NYC RI) Science, and Transportation Updated April 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY ESTACTIO!, OCSD POSITION OTHER Coordinated Ocean Observations and Research Act of 2019. Senate-4/3/19 Reauthorizes the Integrated Coastal and Ocean Observation System Referred to Committee Act of 2009, to clarify the authority of the Administrator of the National on Commerce, S.914 Sen. Roger Wicker(R-MS) Oceanic and Atmospheric Administration with respect to post-storm Science, and Watch NYC assessments, and to require the establishment of a National Water Transportation Center, and for other purposes. Smart Energy and Water Efficiency Act of 2019. Provides for a House-419/19 smart water resource management pilot program. Referred to Committee H.R. 2019 Rep. Jerry McNerney(D-CA) on Science, Space, Watch NYC and Technology Indian Water Rights Settlement Extension Act.Amends the House-414/19 Omnibus Public Land Management Act of 2009 to make the Committee on Natural H.R. 1904 Rep. Raul Grijalva (D-CA) Reclamation Water Settlements Fund permanent. Resources Hearings Watch NYC Held Water Quality Certification Improvement Act of 2019.Amends the House-4/11119 Federal Water Pollution Control Act to make changes with respect to Referred to H.R. 2205 Rep. David McKinley(R-WV) water quality certification, and for other purposes. Subcommittee on Watch NYC Water Resources and Environment Digital Coast Act. Requires the Secretary of Commerce, acting House-419/19 through the Administrator of the National Oceanic and Atmospheric Referred to Committee Administration,to establish a constituent-driven program to provide a on Natural Resources digital information platform capable of efficiently integrating coastal Rep. Dutch Ruppemberger(D- data with decision-support tools, training, and best practices and to H.R. 2189 MD) support collection of priority coastal geospatial data to inform and Watch NYC improve local, Stale, regional, and Federal capacities to manage the coastal region, and for other purposes. Updated April 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATESTACTIO!, OCSD POSITION OTHER A bill to require the Secretary of Commerce, acting through the Senate-4/9/19 Administrator of the National Oceanic and Atmospheric Referred to Committee Administration,to establish a constituent-driven program to on Commerce, provide a digital information platform capable of efficiently Science, and integrating coastal data with decision-support tools,training,and Transportation S. 1069 Sen.Tammy Baldwin (D-W I) best practices and to support collection of priority coastal Watch NYC geospatial data to inform and improve local,State, regional, and Federal capacities to manage the coastal region, and for other purposes. A bill to amend the Federal Water Pollution Control Act to make Senate-4/9/19 changes with respect to water quality certification, and for other Referred to Committee L087 Sen. John Barrasso(R-WY) purposes. on Environment and Watch NYC Public Works Legend: ACC-OC-Association of California Cities, Orange County LOCC-League of California Cities NYC- Not Yet Considered CASA-California Association of Sanitation Agencies NACWA-National Association of Clean Water Agencies ACWA-Association of California Water Agencies CSDA-California Special Districts Association Updated April 2019 TC", WNSEND I f - C TPA To: Orange County Sanitation District From: Townsend Public Affairs, Inc. Date: April 22, 2019 Subject: Legislative and Public Affairs Agenda Report State Political Update In April, the Legislature has been focused on passing bills out of their policy committees before the deadline on April 26. Due to the way Easter fell on the 2019 calendar, the Legislature only has one week when they return from Spring Recess on Monday April 22 to consider all policy bills that have been tagged as fiscal. They will have an additional week to consider all policy bills that have not been tagged as fiscal. Once those fiscal bills have passed their policy committee, they must also pass their respective appropriations committees before being considered on the Assembly or Senate Floor. Below is a list of key upcoming deadlines in the Legislature: • April 22— Legislature reconvenes from Spring Recess • April 26—Last day for policy committees to hear and report fiscal bills to fiscal committees • May 3—Last day for policy committees to hear and report non-fiscal bills to the floor • May 31 — Last day to pass bills introduced in their house of origin Economic Update In April, the California Department of Finance released its third economic update of 2019. The report analyzes economic data from March 2019 as the report runs about one to two months behind the month in question. Preliminary General Fund agency cash for the first nine months of the fiscal year is $2.22 billion below the 2019-20 Governor's budget forecast of$93.74 billion. Revenues for March 2019 were only $89 million below the Governor's budget, due primarily to a shortfall in personal income tax estimated payments. Sales tax revenues, corporation tax revenues, and insurance tax revenues accounted for approximately$600 million in revenue above forecast,which was offset by personal income tax revenues falling to$2.88 billion below forecast. In January, Governor Newsom anticipated a budget surplus of nearly$22 billion and is relying on that amount to pay for all of his proposals. The same holds true for Legislative Democrats as they also craft their budget priorities. The Governor's revised budget proposal based on the new revenue projections is due out in early May. According to updated data from the Franchise Tax Board, tax revenues for the month of April through late last week are at$12.2 billion. This number is significantly higher than the $10 billion that had been projected to date. If the revenues continue on the same pace, not only is there the potential to eclipse the $14.2 billion monthly total that had been projected in April, but it also could effectively start to eliminate the approximately$2.22 billion shortfall in the General Fund. Cap and Trade In February, the California Air Resources Board (CARB) conducted their first Cap and Trade auction of 2019 and the first since Governor Gavin Newsom took office. For the eighth auction in a row, all available emission credits were sold. The State expects to receive over $850 million from the February 2019 auction. Revenues generated from the Cap and Trade program currently go toward the Brown Administration's High-Speed Rail project, various transportation improvements, affordable housing, and sustainable community programs. 40 percent of the revenues are available for future appropriation for projects that will reduce greenhouse gas emissions. Governor Newsom has already announced his desire to slow down the High-Speed Rail project as currently planned and focus on completing the Bakersfield to Merced segment. It is anticipated that this could result in the Governor redirecting some of the annual $250 million in Cap and Trade funding to other public transportation purposes. It is anticipated that the May Budget Revise may introduce an updated expenditure plan of Greenhouse Gas Reduction Funds that will shift the conversation toward these new priorities. The next Cap and Trade auction will occur in May 2019. Safe Drinking Water Proposals TPA has been closely monitoring legislation for the last two years regarding taxes on urban water system users and fees on the agricultural and dairy industry. Legislation introduced last year by Senator Monning, SB 623, would have added these fees and taxes to help pay for safe drinking water projects in the State's most severely disadvantaged communities. This bill failed to advance, even with attempts to include it as part of a budget trailer bill. In 2019, Senator Monning introduced SB 200, which would establish the Safe and Affordable Drinking Water Fund to be administered by the State Water Resources Control Board and to be used to secure access to safe drinking water for all Californians. While SB 200 provides a continuous appropriation to fund activities, so far,the bill does not yet identify the revenue source for the funding. On March 20, SB 200 (Monning) was approved by the Senate Environmental Quality Committee. In his 2019-2020 January Budget, Governor Newsom also proposed to establish the Safe and Affordable Drinking Water program to increase access to safe drinking water for Californians. Similar to Governor Brown's proposal last year and SB 623, the program would provide certain local water agencies—particularly ones in disadvantaged communities—with grants, loans, contracts, or services to help support their operations and maintenance costs. This funding would be supported by new charges proposed by the Governor on water system ratepayers (roughly $1 per residential meter per month), fertilizer sales, and certain agricultural entities. In total, the Administration estimates that the various proposed charges would generate roughly $110 million to $140 million annually when fully implemented. Charges on fertilizer and agricultural entities would sunset 15 years after they go into effect. 0 April 2019 Report 2 In late March,Assembly Member Eduardo Garcia amended his AB 217 to add language regarding a tax on water and solution to the safe drinking water problems in some of the most disadvantaged communities across the state. Specifically, AB 217 takes an all-encompassing approach to the issue, and brings funding sources together from the agricultural industry (similar to SB 623), a $200 million/year appropriation from the General Fund for the next 5 years, and (future amendments will come forward)a$0.50 drinking water tax on urban water system customers per month. It is still unclear what the final vehicle for a water tax will be, however these recent amendments show Assembly Member Eduardo Garcia's intention to be a part of the conversation. AB 217 passed the Assembly Environmental Safety and Toxic Materials Committee on a party line vote of 6-3. Additional Priority Legislation AB 510 (Cooley)—Local government records:destruction of records. (OCSD Support) AB 510, sponsored by CSDA and the Municipal Information Systems Association of California (MISAC), would exempt the head of a department of a county or city, or the head of a special district from existing recording retention requirements if the county, city, or special district adopts a records retention policy governing recordings of routine video monitoring and recordings of telephone and radio communications. AB 510 has been pulled by the Author and will be a two-year bill. AB 1672 (Bloom)—Solid waste:flushable products(OCSD Support) AB 1672 would establish performance and labeling standards for flushable wipes that would help prevent the flushing of wipes down the drain. AB 1672 would also define a flushable wipe and a nonflushable wipe for the purposes of the bill. This bill seeks to apply the standards created by the International Water Services Flushability Group to products sold in California. TPA has been aggressively advocating OCSD's position on AB 1672 in Sacramento. AB 1672 is currently in the Assembly Judiciary Committee and will be heard on April 23. SB 332 (Hertzberg)— Wastewater treatment.,recycled water SB 332 requires wastewater treatment facilities and affiliated water suppliers that discharge through ocean outfall to reduce the overall volume of the facility's annual flow by at least 50% by January 1, 2030, and by at least 95% by January 1, 2040 and imposes a penalty of $2,000 per acre-foot of water above the required reduction for failure to comply. TPA has worked with the author's office to set up a meeting with the bill sponsor, the Natural Resources Defense Council, to express our concerns and start a dialogue that can result in positive change. SB 332 is currently in the Senate Judiciary Committee and will be heard on April 23. ® April 2019 Report 3 SB 667(Hueso)— Greenhouse gases:recycling infrastructure and facilities. SB 667 would require CalRecycle in coordination with the Treasurer to develop financial incentive mechanisms, including, but not limited to, loans and incentive payments, to fund organic waste diversion and recycling infrastructure. This bill also requires CalRecycle to develop and amend a 5-year investment strategy to drive innovation and support technological development and infrastructure. SB 667 is currently in the Senate Environmental quality Committee and will be heard on April 24. ® April 2019 Report 4 OCSD State Bills of Interest PLAN POSITIONS Proposed Legislation 2019-2020 AB 11 Chin[D] Community Redevelopment Law of 2019 Current law tlissolvetl Currently in the Assembly Watch State Priorities: ACCOC-NVC redevelopment agencies as of February 1,2012,and designates Local Government Committee Continue to LOCC-Watch successor agencies to act as successor entities to the dissolved monitor the state CASA-NYC redevelopmentagencies.This bill,the Community Redevelopment Law budget process ACWA-NYC of 2019,would authorize a city or county,or two or more cities acting and actively CSDA-Oppose jointly,to propose the formation of an affordable housing and protect the unless amended infrastructure agency by adoption of a resolution of intention that meets allocation of local specified requirements,Including that the resolution of Intention Include property taxes to a passthrough provision and an override passthrough provision,as special districts. defined. AS 68 Ting ID] Land use:accessory dwelling units.The Planning and Zoning Law Currently in the Assembly Watch Legislative and ACCOC-NVC authorizes a local agency to provide,by ordinance,for the creation of Local Government Committee Regulatory LOCC-Watch accessory dwelling units in single-family and multifamily residential Policies:Special CASA-NVC zones and sets forth required ordinance standards,including,among Districts-Oppose ACWA-NVC others,mavmum unit size,parking,and height standards.This bill further state CSDA-Watch would prohibit an ordinance from imposing requirements on minimum lot regulations that size,lot coverage,or Floor area ratio,and would prohibit an ordinance adversely impact from establishing size requirements for accessory dwelling units that do special district not permit at least an 800 square feet unit of at least 16 feet in height to financing, be constructed. operations,and administration. OCSD State Bills of Interest AB 69 Ting[DI Land use:accessory dwelling units.Would authorize the Department Currently In the Assembly Watch Legislative and ACCOC-NYC of Housing and Community Development to submit written findings to a Appropriations Committee Regulatory LOCC-Watch local agency as to whether the local ordinance complies with state law, Policies:Special CASA-NYC and to notify the Attorney General if the ordinance violates state law. Districts-Oppose ACWA-NYC The bill would require a local agency to consider the department's further state CSDA-Watch findings and would authorize the local agency to amend its ordinance to regulations that comply with state law or adopt a resolution with findings explaining why adversely impact the ordinance complies with state law,and addressing the department's special district findings financing, operations,and administration. AS 129 Bloom[D] Waste management:plastic microfiber.Would declare the intent of Hearing canceled at the Watch State Priorities: ACCOC-NYC the Legislature to,among other things,enact legislation to recognize Me request of the Author Support legislabon LOCO-Watch emerging threat that microfbers was to the environment and water or regulations that CASA-NYC quality and would make related findings and declarations. restrict the use of ACWA-NYC microplastics in CSDA-Watch any product that is disposed of through Me sewer system. AS 134 Bloom[D] Safe,clean,affordable,and accessible drinking water.Would state Currently in Me Assembly Watch State Priorities: ACCOC-NYC findings and declarations relating to the intent of the Legislature to Appropriations Committee Support legislation LOCC-Watch adopt policies to ensure that every Californian has the right to safe, or regulations that CASA-NYC clean,affordable,and accessible drinking water. restrict the use of ACWA-NYC microplastics in CSDA-Watch any product that is disposed of through the sewer system. OCSD State Bills of Interest AB 217 Garcia[D] Safe and Affordable Drinking Water Fund Would establish the Safe Currently In the Assembly Watch State Tactics: ACCOC-NYC and Affordable Drinking Water Fund in the State Treasury and would Appropriations Committee Support tax reform LOCC-Watch provide that moneys in the fund are available,upon appropriation by the that CASA-NYC Legislature,to the board to provide a stable source of funding to secure protects public ACW A-NYC access to safe drinking water for all Californians,while also ensuring the agencies CSDA-Watch long-term sustainabilily of drinking water service and infrastructure. AS 223 Stone[D] California Safe Drinking Water Act:microplastics The California Hearing canceled at the Watch State Priorities: ACCOC-NYC Safe Drinking Water Act requires the State Water Resources Control request of the Author Support legislation LOCC-Watch Board to administer provisions relating to the regulation of drinking or regulations that CASA-NYC water to protect public health.Current law requires the state board,on restrict the use of ACWA-NYC or before July 1,2020,to adopt a definition of microplastics in drinking microplastics in CSDA-Watch water and,on or before July 1,2021,to adopt a standard methodology any product that is to be used in the testing of drinking water for microplastics and disposed of requirements for 4 years of testing and reporting of microplastics in through Me sewer drinking water,Including public disclosure of those results.This bill system. would require the state board,to the extent possible,and where feasible and cost effective,to work with the State Department of Public Health in complying with those requirements. AS 231 Mathis[R] California Environmental Quality Act:exemption:recycled water. Failed passage in the Watch State Priorities: ACCOC-NYC Would exempt from CEQA a project to construct or expand a recycled Assembly Natural Resources Support efforts to LOCC-Watch water pipeline for Me purpose of mitigating drought conditions for which Committee reform the CASA-NYC a state of emergency was proclaimed by the Governor If the project California ACWA-NYC means specified criteria.Because a lead agency would be required to Environmental CSDA-Support determine if a project qualifies for this exemption,this bill would impose Quality Ad a state-mandated local program.The bill would also exempt from CEQA (CEQA)to the development and approval of building standards by state agencies streamline current for recycled water systems. procedures and regulations for Projects to refurbish or replace existing infrastructure facilities. OCSD State Bills of Interest mm MOM" AB 233 Cooley[D] Insurance: independent contractors Current case law creates a Currently In the Assembly Watch Legislative and A CC -NYC presumption that a worker who performs services fora hirer is an Insurance Committee Regulatory Watch employee.Current case law requires a 3-part test to establish that a Policies:Public worker is an independentcontractor,including that the worker is free Works-Monitor NVC from the control antl direction of the hirer in performing Me work.This legislation NVC bill vrould clarify the application of the case law described above to connected with Persons licensed by the Department of Insurance to transact insurance government claims In specified capacities by providing that those persons are not against special employees when they have entered into a written agreement with an districts regarding insurer or organizational licensee Mal includes specified provisions, risk and wrap-up including that Me worker is classified as an independent contractor,that insurance each party has the right to terminate Me agreement upon notice to Me other party,and that the worker is responsible for the payment of necessary expenditures and applicable taxes. AS 291 Chu Emergency preparedness Would establish a Local Emergency Currently in Me Assembly Watch State Priorities: ACCOC-NVC Preparedness and Hazard Mitigation Fund to support staffing,planning, Governmental Organization Secure funding LOCC-Watch and other emergency mitigation priorities to help local governments Committee through grants and CASA-NYC meet emergency management,preparedness,readiness,and resilience legislation for ACWA-NYC goals.The bill would require the Office of Emergency Services to infrastructure, CSDA-Watch distribute funds to lead agencies,as defined,throughout Me state.The collection bill would require lead agencies to further distribute those funds to local improvements and governments pursuant to a specified schedule for specified purposes, alternative and impose various requirements on local governments that receive renewable energy funds pursuant to these provisions. at the Fountain Valley,Plant No. 1 and Huntington Beach,Plant No. 2.❑ OCSD State Bills of Interest AS 292 Quirk[D] Recycled water: raw water and groundwater augmentation Current Currently In the Assembly Watch Legislative and ACCOC-NYC law requires the State Water Resources Control Board,on or before Appropriations Committee Regulatory LOCC-Watch December 31,2023,to adopt uniform water recycling cnteria for direct Policies:Water CASA-NYC potable reuse through raw water augmentation,as specified.This bill Quality and ACWA-NYC would eliminate the definition of"direct potable reuse"and instead Supply-Support CSDA-Support would substitute the team"groundwater augmentation"for Indirect measures Mat Potable reuse for groundwater recharge"in these definitions.The bill promote and would require,on or before December 31,2023,the state board to provide for Me use adopt uniform water recycling criteria for raw water augmentation. of reclaimed water AB 405 Rubio[D] Sales and use taxes:exemption:water treatment.Would exempt Currently in the Assembly Watch Guiding ACCOC-NYC from Sales and Use Tax the gross receipts from the sale in this state of, Revenue and Taxation Principles:Seek LOCC-Watch and the storage,use,or other consumption in this state of,chemicals Committee funds for OCSD CASA-Support used to treatwater,recycled water,or wastewater regardless of whether projects through ACWA-NYC those chemicals or other agents become a component part thereof and grants, CSDA-Support regardless of whether the treatment takes place before or after the appropriations,or delivery to consumers. other means; AS 510 Cooley[D] Local government records:destruction of records.Current law Two-year bill Watch Legislative and ACCOC-NYC authorizes the head of a department of a county or city,or the head of a Regulatory LOCC-Watch special district to destroy recordings of telephone and radio Policies:Security CASA-NYC communications maintained by that county,city,or special district after -Support ACWA-NYC 100 days if that person receives approval from the legislative body and legislation that CSDA-Sponsor the written consent of the agency attorney.This bill would exempt the would create head of a department of a county or city,or the head of a special distinct efficiencies around from these recording retention requirements if the county,city,or the retention policy special district adopts a records retention policy governing recordings of of surveillance routine video monitoring and recordings of telephone and radio video for communications. innocuous recordings. OCSD State Bills of Interest AB 587 Friedman[D] Accessory dwelling units:sale or separate conveyance Current Currently In the Assembly Watch Legislative and ACCOC-NVC property tax law establishes a welfare exemption under which property Local Government Committee Regulatory LOCC-Watch is exempt from taxation if the property is owned and operated by a Policies:Special CASA-Andy wl nonprofit corporation that is organized and operated for the purpose of Districts-Oppose author building and rehabilitating single-family or multifamily residences for further state ACWA-NYC sale,as provided,at cost to low-income families.This bill would regulations that CSDA-Watch authorize an accessory dwelling unit that was ministerially approved adversely impact pursuant to Me process described above to be sold or conveyed special district separately from the primary residence to a Qualified buyer if certain financing, conditions are met. operations,and administration. AS 992 Mullin[D] Open meetings:local agencies:social media Would provide that the Currently in the Assembly Watch Legislative and ACCOC-NVC Ralph M.Brown Act does not apply to the posting,commenting,liking, Local Government Committee Regulatory LOCC-Watch interaction with,or participation in,intemet-based social media Policies:Special CASA-Approve platforms that are ephemeral,live,or static,by a majority of the Districts-Oppose ACWA-NVC members of a legislative body,provided that a majority of the members further state CSDA-Support do not discuss among themselves business of a specific nature that is regulations that within the subject matter jurisdiction of the legislative body of the local adversely impact agency special district financing, operations,and administration. AS 1080 Gonzalez[D] California Circular Economy and Plastic Pollution Reduction Act Currently in the Assembly Watch State Priorit es: ACCOC-NVC Would establish the California Circular Economy and Plastic Pollution Appropriations Committee Support legislation LOCC-Support Reduction Act,which would require the Department of Resources or regulations that CASA-NYC Recycling and Recovery,in consultation with the State Water restrict the use of ACWA-NVC Resources Control Board and the Ocean Protection Council,to adopt microplastics in CSDA-NVC regulations to source reduce and recycle 75%of single-use packaging any product Mat is and products sold or distributed in California by 2030. disposed of through Me sewer systerl OCSD State Bills of Interest AB 1180 Friedman[D] Water: recycled water The California Safe Drinking Water Act requires Currently in the Assembly Watch Legislative and ACCOC-NYC the State Water Resources Control Board to administer provisions Appropriations Committee Regulatory LOCC-Watch relating to the regulation of drinking water to protect public health. Policies: CASA-Support Current law requires,on or before January 1,2020,the state board to Recycled Water- ACWA-NYC adopt standards for backfiow protection and cross-connection control support measures CSDA-Support through the adoption of a policy handbook,as specified.This bill would that promote and require that handbook to include provisions for the use of a swivel or provide for Me use changeover device to supply potable water to a dual-plumbed system of reclaimed water. during an interruption in recycled water service. AB 1588 Gloria[D] Drinking water and wastewater operator certification programs Currently in the Assembly Watch Legislative and ACCOC-NYC Current law requires a person who operates a nonexempt wastewater Appropriations Committee Regulatory LOCO-Watch treatment plant to possess a valid,unexpired wastewater certificate or Policies:Special CASA-Support water treatment operator certificate of the appropriate grade.This bill, Districts-Oppose ACWA-NYC when applying for certification by the board as a water treatment further state CSDA-Support operator,distribution system operator,or wastewater operator,would regulations that require operators of complex industrial facilities,including members of adversely impact the military and military service veterans,to receive full equivalent special district experience credit and education credit for work and tasks performed financing, that are directly related to the operation of water or wastewater facilities, operations,and as specified. administration. ACA 1 Aguiia Curry[D] Local government financing:affordable housing and public Currently in the Assembly Watch Guiding ACCOC-NYC infrastructure:voter approval. The Califomia Constitution prohibits Appropriations Committee Principles:Seek LOCC-Support the ad valorem tax rate on real property from exceeding 1%of the full funds for OCSD CASA-Support cash value of the property,subject to certain exceptions.This measure projects through ACWA-NYC would create an additional exception to the l%limit that would authorize grants, CSDA-Support a city,county,city and county,or special district to levy an ad valorem appropriations,or tax to service bonded indebtedness incurred to fund the construction, other means; reconstruction,rehabilitation,or replacement of public infrastructure, affordable housing,or permanent supportive housing,or the acquisition or lease of real property for those purposes.5 the proposition proposing that tax is approved by 55%of the voters of the city,county,or city and county,as applicable,and the proposition includes specified accountability requirements. OCSD State Bills of Interest SB 5 Beall[D] Local-Slate Sustainable Investment Incentive Program Would Currently In the Senate Watch State Priorities: ACCOC-NYC establish in state government the Local-State Sustainable Investment Appropriations Committee Continue to LOCC-Support Incentive Program,which would be administered by the Sustainable monitor the state CASA-Watch Investment Incentive Committee.The bill would authorize a city,county, budget process ACWA-NYC city and county,joint powers agency,enhanced infrastructure financing and actively CSDA-Watch district,affordable housing authority,community revitalization and protect the investment authority or transit village development district to apply to allocation of local the Sustainable Investment Incentive Committee to participate in the property taxes to program and would authorize the committee to approve or deny special districts. applications for projects meeting specific criteria. SB 13 Welckowa l[D] Accessory dwelling units Would express the intent of the Legislature Currently in the Senate Watch Legislative and ACCOC-NYC to enact legislation that would reduce impact fees and other existing Appropriations Committee Regulatory LOCC-Oppose barriers for homeowners seeking to create accessory dwelling units for Policies:Special unless amended the purpose of creating additional residential housing within their Districts-Oppose CASA-Work wl neighborhoods. further state author regulations that ACWA-NYC adversely impact CSDA-Oppose special district financing, operations,and administration. SB 33 Skinner Solid waste:reduction and recycling.The California Integrated Currently in the Senate Rules Watch Legislative and ACCOC-NYC Waste Management Act of 1989,administered by the Department of Committee Regulatory LOCC-Watch Resources Recycling and Recovery,generally regulates the disposal, Policies: CASA-NYC management,and recycling of solid waste.This bill would state the Biosolids and ACWA-NYC intent of the Legislature to enact legislation that would address the Biogas-Limit CSDA-Watch collapse of foreign recycling markets by reducing solid waste redundant generation,encouraging transition to compostable or recyclable reporting materials,and fostering domestic recycling markets. requirements on 53231 organics, recyclable material,and solid waste as mandated by AB 901. OCSD State Bills of Interest SB 134 Hertzberg [D] Water conservation:water loss performance standards: Currently In the Senate Watch Legislative and ACCOC-NVC enforcement.Current law authorizes the State Water Resources Appropriations Committee Regulatory LOCC-Watch Control Board to issue information orders,wriften notices,and Policies:Water CASA-NVC conservation orders to an urban retail water supplier that does not meet Supply- Support ACWA-NYC its urban water use objective,and existing law authorizes the board to legislation and CSDA-Support impose civil liability for a violation of an order or regulation issued regulation that pursuant to these provisions,as speed.Current law requires the necessitate the board,no eadier Man January 1,2019,and no later than July 1,2020, responsible use of to adopt rules requiring urban retail water suppliers to meet water in performance standards for Me volume of water losses.This bill would residential, prohibit the board from imposing liability for a violation of the commercial,and performance standards for Me volume of water losses except as part of industrial areas the enforcement of an urban water use objective. SB 200 Safe and Affordable Drinking Water Fund.Would establish the Safe Introduced Watch State Tactics: ACCOC-NVC and Affordable Drinking Water Fund in the State Treasury and would Support tax reform LOCC-Watch provide that moneys in the fund are available,upon appropriation by the that CASA-NYC Legislature,to the State Water Resources Control Board to provide a protects public ACWA-NVC stable source of funding to secure access to safe drinking water for all agencies CSDA-Watch Californians,while also ensuring the long-term sustainability,of drinking water service and infrastructure. SB 332 Hertzberg[D] Wastewater treatment:recycled water.Would declare,except in Introduced Watch State Legislation: ACCOC-NVC compliance with the bill's provisions,that the discharge of treated Work with LOCC-Oppose wastewater from ocean oulfalls is a waste and unreasonable use of legislators who CASA-Oppose water.The bill would require each wastewater treatment facility Mat introduced ACWA-NYC discharges through an ocean outfall and affiliated water suppliers to legislation such as CSDA-Oppose reduce the facility's annual flow as compared to the average annual SB 163 wastewater discharge baseline volume,as prescribed,by at least 50% (Hertzberg,2015) on or before January 1,2030,and by at least 95%on or before January in order to ensure 1,2040.The bill would subject Me owner or operator of a wastewater that no unrealistic treatment facility,as wall as the affiliated water suppliers,M a civil regulations are penalty of$2,000 per acre-foot of water above the required reduction in placed on overall volume discharge for the failure to meet these deadlines. wastewater treatment facilities, including OCSD OCSD State Bills of Interest SB 457 Hueso[D] Biomethane: gas corporations Under existing law,the Public Utilities Currently In the Senate Watch Legislative and ACCOC-NVC Commission has regulatory authority over public utilities,including gas Appropriations Committee Regulatory LOCC-Watch corporations.Existing law authorizes the commission to fix the rates and Policies: CASA-Refer to charges for every public utility and requires that those rates and Biosolids and Committee charges be just and reasonable,Existing law requires the commission Biogas-Support ACWA-NYC to adopt policies and programs that promote the in-slete production and streamlined CSDA-NVC distribution of biomethane,as defined,and that facilitate the legislation, development of a variety of sources of in-state biomethane.This bill regulations and would require the Public Utilities Commission to extend the program policies that until December 31,2026.This bill contains other related provisions and encourage the other existing laws. procurement of badges,biosolids, and compost. SB 667 Russia[D] Greenhouse gases:recycling Infrastructure and facilities.Would Currently in the Senate Watch Legislative and ACCOC-NVC require the Department of Resources Recycling and Recovery to Environmental Quality Regulatory LOCC-Support develop,on or before January 1,2021,and would authorize the Committee Policies: CASA-Support department to amend,a 5-year investment strategy to drive innovation Biosolids and ACWA-NYC and support technological development and infrastructure,in order to Biogas-Support CSDA-NVC meet specified organic waste reduction and recycling targets,as the promotion and provided.The bill would require,on or before June 1,2021,the funding of local Department,in coordination with the Treasurer,to develop financial pilot programs, incentive mechanisms,including,but not limited to,loans and incentive studies,and payments,to fund organic waste diversion and recycling Infrastructure. research for the beneficial use of biosolids. OCSD State Bills of Interest SIB 732 Allen[D[ Transactions and use tax.Current law authorizes cities,counties,and Currently In the Senate Watch Legislative and ACCOC-NYC certain districts to impose a transactions and use tax in accordance with Governance and Finance Regulatory LOCC-Watch procedures set forth in the Transactions and Use Tax Law,Mich Committee Policies:Air CASA-NYC conforms to the Sales and Use Tax Law.This bill would make a quality-Support ACWA-NVC technical,nonsubstantive change to the Transactions and Use Tax Law. air quality CSDA-No legislations, position regulations,rules, and policies that emphasize the use ofadvanced technologies and promote greater Flexibility and financial incentives to reduce air emission. Legend: ACC-OC-Association of California Cities,Orange County LOCC-League of California Cities NYC-Not Vet Considered CASA-California Association of Sanitation Agencies ACWA-Association of California Water Agencies CSDA-California Special Districts Association OCSD's Grant and Loan Funding Tracker 2018-2019 Name of Grant/Loan Synopsis of Grant/Loan Amount of Grant/Loan Amount Applying Y/N Project/Program ram Reason Match Deadline Category Rcvd Grant/ Applying for 1 g g ry Financing YIN STATE $1 billion from the Cap and Trade program(Greenhouse The Cap and Trade Expenditum Plan Gas Reduction Fund)was Proposed to be appropriated in will need to go through the legleati m Cap and Trade Funding the Governors January Budget.A Cap and Trade $25 million-Waste Divermion Projects.Specif s xp TBD TBD TBD process.It is uncertain how much TBD Unknown at this Energy/Recycling TBD Expenditure plan will be considered later this legislative TBD funding will be available for the time session. District's projects,or what the funding will be used for. The Proposition 1 IRW M Grant Program,administered by TPA and OCSD are abando ,the DW R,provides funding for projects that help meet the long grant pogram development tram the tens water needs of the state,including: Sable Ana Watershed Project Integrated Regional Water Management AuthodryBAWPA).The solicitation NA.Will realm (IRWM)Grant Program Assisting water infrastructure systems adapt to climate NA NA No NA far bids was announced by SAWPA 50% in 2021 for Water TBD change: and staff determined that an Round 2 Providing Incentives throughout each watershed to application for funding was not collaborate In managing the ranch a water resources and ranted due to a lack of eligible and setting regional priorities for water infrastructure competitive projects. FEDERAL The Title WI Water Reclamation and Reuse Projects funding opportunity allows for sponsors of water reclamation and reuse projects that are congressionally Reclamation is making up to$20 million The Sanitation District is applying for authorized or are eligible under section 4009(c)of the Title 1E will Pay up to The Water Infrastructure Improvements available for those projects authorized under Final Expansion of GW RS Neadworks Segregation project that WIN ActantorequnstuctMn of for Planning,Wning, E550,000 Vea 25 percent of the ]/2]/201a Water/InfrasWCWre No Act(WHIN) the WIlN Act and$30 million for the Headworks(P2-122) will help to bring more water to Na design and/or construction of those Projects.Water congressionally authorzed Title%VI projeda. GWRS. available money reclamation and reuse injects provitle improved and d thecie ter Oexiblliry during water shortages and diversifks the water supply. Stomreater and CSO Grant Program USEPA Is authorized to provide grants assistance of public Funding cost-share is not identified in the law TBD TBD.We all monitor for possible tip Funding must be appropriated as part of TBD TBD Water/Infrastructure TBD agencies to rand stormwater flows and CSO's funding oppormunities/A current FY 2019 budget impasse A minimum of$20 million to as much as$100 Project Funding Community: million based upon prior years budgets. Energy production W reduce USER could receive as much as$130 million costa of recydetl water through Innovative technologies like The DOE'a Office of Energy Efficiency Is likely to continue In support of the W aterSmart(due to We will review Me possible funding The Department of Energy(DOE), TBD.W e will monitor for possible Aquacritaz,Innovative water to be funded by Congress energy, such efforts as increased years,funding underWHIN)dunngthe nfM TBD opportunity to District if it isafit for TBD Energy TBO USER and USEPA biogas,biosolids and green energy. several years.USBR will issue solicitations for funding opportunities monitoringceftechnology that can the Senkation District. watertrweapproaches technology water and produce eFdddent realtime water treatment through technology and monitoring and data analysis, processes Biogaa Management and Use Improvements. ppdatee 4/239019 5/13/2019 HSN ShNI) l/ •• ' Presented By: 9 C�Np THE EM\PoiF�• SANITATIONISTRICT Eric Sapirstein APA UPDATE ENS Resources, Inc. April 13, Zosg Key legislative activities INFRASTRUCTURE INITIATIVES • SIRE REAUTHORIZATION IN HOUSE SLATED FOR LATE MAY • WATER TECHNOLOGY AND INNOVATION HEARING • FUNDING FY zozo LEGISLATIONPERMITTERMS • CORE SUPPORT GROWS • ENVIRONMENTAL NGO'S POSITION LETTERS OFSUPPORT FOR KEY LEGISLATION • WATER RECYCLING H.R.2162 (N a pol ita no/Levi n/Ro u da/Cisneros/Lowenthal) • Clean Water SIRE Reauthorization H.R. 1497(DeFazio/Lowenthal/Rouda) z 1 5/13/2019 Questions *IF S� 3 2 TO) WNSEND PUBLIC AFFAIRS ..• TPA �... z' V TOWNSENOPACOM , SACRAMENTO-WASBINGMNL DC SOUR ERN CALIFORNIA-NORTHERN CALIFORNIA Agenda Legislative Schedule Governor's May Revise 2019 Legislation snaez 5/13/2019 Legislative • 3 Legislative • April 26 was the policy committee deadline for bills that were tagged as fiscal May 3 was the policy committee deadline for bills that were tagged as non-fiscal — Over 500 bills did not make these deadlines and are now two-year bills — Over 2100 bills still remain for consideration in 2019 All bills must pass their house of origin by May 31 . � . ENTO nn a 2 5/13/2019 7 Governor's May Revise 7 Governor's • Governor Newsom announced a $213.5 billion Budget - $147 Billion in General Fund expenditures - Emphasis on early childhood education, healthcare, housing , and homelessness, and - emergency preparedness • No change to waste diversion appropriations in proposed Cap and Trade Expenditure Plan • Remains committed to working with the Legislature on a sustainable and reliable funding source for safe drinking water 6 3 5/13/2019 1 • Legislation C • - • • - TPA helped organize a meeting to discuss SIB 332 (Hertzberg) as a follow-up to our Sacramento advocacy trip Meeting attendees included OCSD, Natural Resources Defense Council (NRDC), CA Coastkeeper, Senator Hertzberg's office, and OCWD Meeting focused on education surrounding OCSD's current operations and potential solutions for the bill going forward General feeling from NRDC is that they expect this bill to be amended prior to its final consideration in the Legislature a 4 5/13/2019 • - • Ocean Discharge (Cont) Bill proponents find it overwhelmingly wasteful to import water just to discharge it after one use NRDC and CA Coastkeeper expressed their desire to address early adopters and recyclers TPA helped OCSD staff develop a comprehensive letter that outlines suggested improvements for SB 332 9 Would prohibit labeling wipes as flushable unless they meet certain objective standards Passed the Assembly Judiciary Committee on April 23 TPA was there to testify in support, along with CASA, CSDA, and several wastewater agencies AS 1672 was sent to the ✓ ' Assembly Appropriations Suspense File and will be taken up on May 16 io 5 5/13/2019 4 r TOWNSEND rooaC AFFAIRS TPA Thank You Cori Williams Eric O'Donnell Southern California Director SeniorAssociate CWilliams@townsendpa.com EODonnell@townsendpa.com w .townsendoa.com w .townsendoa.com 11 6 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Meeli S/ng Dale TOS/Z1/19r AGENDA REPORT IternNumber Iemiumber a is Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Public Affairs Update for the month of April 2019. BACKGROUND Staff will provide an update on recent public affairs activities. RELEVANT STANDARDS • Maintain influential legislative advocacy and a public outreach program • Build brand, trust, and support with policy makers and community leaders • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Listen to and seriously consider community input on environmental concerns PROBLEM Many Orange County residents are not aware of the Orange County Sanitation District (Sanitation District) and the important work the agency does to protect public health and the environment. The public is unaware that the Sanitation District is a resource recovery facility that, aside from collecting and treating wastewater generated by 2.6 million people in the service area, the Sanitation District also creates energy, recycles water for further treatment, and generates nutrient-rich biosolids. In general, the community does not realize the implications of improperly disposing of waste into the sanitation system. They are unaware that the treatment process can be negatively impacted, thus affecting the quality of water the Sanitation District supplies for the Groundwater Replenishment System. PROPOSED SOLUTION By providing tours, community outreach education, and general communication via the Sanitation District's website, social media outlets, and mainstream media, the Sanitation District has the ability to educate the community, local agencies, and businesses on the What2Flush program, energy production, water recycling, biosolids, and the source control program. This, in turn, results in a better quality of wastewater. Page 1 of 3 TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION If the community, local agencies, and area businesses do receive education about the Sanitation District, the opportunity to educate thousands of people about the Sanitation District's plants, source control, and the wastewater industry as a whole is lost. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION April 2019 Activity # # of Guests OCSD/OCWDTours 5 91 OCSD Tours 17 305 Speaking Engagements 4 310 Outreach Events 2 400 Current Activities —April 2019: • Construction Network speaking engagement • AAEES Student Chapter Annual Conference • Orange County Council of Government General Assembly • Westminster Spring Festival • Plant No. 2 neighborhood tour • Irvine Earth Day Event • Fountain Valley Crossing Stakeholders Meeting • AAEES Annual Conference and Awards Banquet Honor Walk Ceremony The Honor Walk program will recognize two former employees on Wednesday, May 22 in a brief ceremony prior to the Steering Committee meeting. Ingrid Hellebrand and Chris Cervellone will both be recognized for their contributions to the Sanitation District. Both will receive a permanent engraved brick in front of the main entrance to the Administration Building at Plant No. 1. Silver Mercury Award for GWRS Bottled Water Campaign The Sanitation District and OCWD were selected as the winners of the Silver Mercury Award for the GWRS bottled water campaign. The campaign was created when AB 2022 was signed by the California Governor saying that highly treated water could be bottled to be used for educational purposes, hence the beginning of a year-long promotion. The Page 2 of 3 promotions included a Hollywood media kick-off event, a California bottled water tour, the GWRS 10th Anniversary Winter Fest celebration as thanks for local support, and the Guinness World Record for the most wastewater recycled into drinking water within a 24-hour period. Upcoming Activities - May 2019 • Crisis/Risk Communications Strategy for PFAS - The Emerging Public Issue • Plant No. 2 neighborhood tour • Public Works Week • Honor Walk • Southeast Area (Huntington Beach) Council Committee Meeting CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENTS The following attachments maybe viewed on-line at the OCSD website(wwwocsd.com) with the complete agenda package: • Outreach Report April 2019 • Media Clips April 2019 • PowerPoint Presentation from 5/13/2019 Committee Meeting Page 3 of 3 Outreach April 2019 r . 4/1/19 USC Tour 18 4/2/19 CSULB Nursing Tour 12 4/3/19 Home School Group Tour 15 4/4/19 Tarbut School Tour 12 4/8/19 Construction Network Speaking Engagement 30 4/8/19 Hope University Tour 15 4/9/19 Engineering Tour 1 4/9/19 Golden West College Tour 25 4/11/19 Anaheim Public Works Tour 15 4/11/19 Speaking Engagement-UCI 200 4/12/19 OCC Tour 27 4/12/19 OCCOFG Speaking Engagement 50 4/13/19 Westminster Spring Festival 200 4/13/19 Plant 2 Tour 2 4/15/19 CSULB Nursing Tour 15 4/16/19 CSULB Nursing Tour 24 4/17/19 CSULB Nursing Tour 24 4/18/19 CSULB Nursing Tour 12 4/18/19 Cub Scout Tour 15 4/19/19 Santiago Canyon College Tour 13 4/22/19 Western HS Tour 17 4/22/19 Irvine Earth Day 200 4/23/19 OCC Tour 30 4/24/19 Speaking Engagement-FV 50 4/25/19 Gilbert HS Tour 17 4/26/19 Fullerton HS Tour 30 4/29/19 Beckman H5 Tours 60 4/30/19 Beckman HS Tours 60 Monthly News Clippings O�JNIV S A N I TgT�oy Q x c� vwv FCT�N E ENv\�0� April 2019 OCSD Public Affairs Office Table of Contents CONSTRUCTION.......................................................................PAGE 1 April 10, 2019 Newport adds $357,000 to Jamboree and Bayside Road Improvement project after water main break By: Hillary Davis Daily Pilot HUMAN INTEREST....................................................................PAGE 4 March 19, 2019 Serving the Mandate of World Water Day By: Cindy Wallis-Lage Water Online April 9, 2019 OCWD President Vicente Sarmiento Testifies before Congress about safe and reliable water in the western US By: Water Online Staff Water Online April 16, 2019 Annual Conference 2019 Recap By: Megan Barillo CWEA.com April 17, 2019 Announcing the 209 CWEA Award Winners By: Megan Barillo CWEA.com April 23, 2019 Orange County Water District and Orange County sanitation District Receive Mercury Award By: Dianne Pinnick/Jennifer Cabral Press Release TWITTER POSTINGS ................................................... .............PAGE 22 FACEBOOK POSTINGS ............................................................PAGE 24 INSTAGRAM POSTINGS ........................................................PAGE 28 Daily Pilot April 10, 2019 DAILY PIU.)T Newport adds $ 357, 000 to Jamboree and Bayside road improvement project after water main break By HILLARY DAVIS APR 10, 2019 1 12:25 PM m 9 i Work on Bayside Drive,pictured,and nearby Jamboree Road and MarineAuenue is expected to be completed by next week.(File Photo) A water main break and manhole adjustments will add more than $350,000 to the budget for a road improvement project in Newport Beach. Work was nearly done on the Jamboree Road, Bayside Drive and Marine Avenue area when the main, which is 18 inches in diameter,burst under Jamboree near Bayside on Feb. 12. The break caused significant roadway damage in the construction zone, in addition to the time and cost to get the water main back online. The city had already been drawing on a $300,000 contingency for adjustments unrelated to the water main break, such as water meter relocations, landscaping changes and unforeseen storm drain repairs. The City Council unanimously agreed Tuesday to boost the project funding by $357,000, including $300,000 for repairs related to the break and $57,000 for manhole modifications. The Orange County Sanitation District will reimburse the city for the manhole component. The original $2.o-million construction contract was for narrowing lanes on Bayside and rehabilitating segments of Jamboree and Marine. The work is expected to be completed by next week. Home reconstruction time limit The council agreed Tuesday to limit homeowners to three years when rebuilding as the city looks to tighten the time frame for what can seem like interminable neighborhood construction projects. The original $2.o-million construction contract was for narrowing lanes on Bayside and rehabilitating segments of Jamboree and Marine. The work is expected to be completed by next week. 2 Home reconstruction time limit The council agreed Tuesday to limit homeowners to three years when rebuilding as the city looks to tighten the time frame for what can seem like interminable neighborhood construction projects. One-off home reconstruction or remodeling is common in Newport, which had 2,557 active building permits as of Monday, and the limit is part of a plan to ameliorate nuisance impacts on neighbors. Under a new ordinance, homeowners will have three years to complete their projects, with the possibility of two six-month extensions at the discretion of a hearing officer. The city currently doesn't have a time limit for finishing construction. The council agreed to the changes on a 6-1 vote, with Councilman Marshall "Duffy" Duffield dissenting. He previously had said that even three years is too long. The ordinance will return to the council for a final vote April 23. Regulations on construction worker parking are pending. MacArthur and University repaving The council unanimously approved repaving MacArthur Boulevard between Bonita Canyon Drive and the 73 Freeway and nearby University Drive between Jamboree Road and the city limits just east of the 73. The $2.3-million contract went to Orange-based R.J. Noble Co. With contingencies, geotechnical services and incidentals, both segments of the project — combined for efficiency —will cost $2.6 million total. Work is scheduled to begin in late May and be completed by September. 3 Water Online March 19, 2019 fton March 19, 2019 Serving the Mandate of World Water Day By Cindy Wallis-Lage, President, Black&Veatch Water Business Awl 7 The UN's Sustainable Development Goals (SDGs)have shined new light on steps that must be taken to safeguard our world's critical resources.Addressing everything that impacts the health and economic growth of communities,the SDGs embed sustainability in the global consciousness and offer nations a roadmap for tackling the key challenges of our time. As we celebrate World Water Day 2019,we can't help but focus on SDG No. 6: ensuring safe and plentiful water, along with the sustainable means to treat that supply for everyone — regardless of their place in the developed or developing world. SDG No. 6 is either directly or indirectly linked to all other SDGs. As outlined in a review of the goal's progress,water scarcity,flooding, and lack of proper wastewater management hinder social and economic development. Increasing water 4 efficiency and improving water management are critical in the effort to balance competing and growing water demands from various sectors and users. The question,from many different angles,is,how do we do it? • How do we ensure a resilient and abundant supply amid frequent drought cycles in the American West? • How does a highly water-stressed country like Singapore ensure water sustainability? • How do we prevent flooding in Hong Kong, a megacity often strained to protect its urban density from inundation? • How do we create resilient systems to protect U.S. coastal residents from storm surge and high tides? • How can we efficiently capitalize on the renewable resource opportunities present in wastewater? The problems — and solutions — are as varied as the geographies where they occur and the communities they serve. Reuse: The Ultimate Sustainability Tool Most people outside of California don't realize the state's and climate. Frequent drought cycles have made water an ever more critical resource, especially in Southern California. That's where officials with the Orange County Water District worked to expand their Groundwater Replenishment System (GWRS),which has made the world's largest advanced water purification system for potable reuse even bigger in a region where supply is an acute and everyday challenge. Just over 10 years ago,treated wastewater effluent from the Orange County Sanitation District(OCSD)was discharged into the Pacific Ocean. Today, after wastewater is treated, it flows back into the system at the GWRS. Here,the treated wastewater undergoes an extensive purification process consisting of microfiltration, reverse osmosis, and advanced oxidation using hydrogen peroxide and ultraviolet light. The end product is currently 10o MGD of water that exceeds all state and federal drinking water standards, enough to meet the needs of nearly 850,00o residents in north and central Orange County—proving that finding new ways to safely use what we already have is the ultimate definition of sustainability and resilience. The final expansion of the GWRS, expected to be complete in 2023,will boost its capacity to 130 MGD. 5 In Singapore,where water catchment areas are limited due to lack of land space,its National Water Agency, PUB, undertakes the responsibility to collect every drop of rain water, reuse water endlessly, and desalinate seawater. Namely, its Four National Taps are: local catchment water,imported water,high-grade reclaimed water known as NEWater, and desalinated water. Water demand in Singapore is currently about 430 MGD. By 2o6o, its total water demand is projected to double. NEWater and desalination are integral to Singapore's water strategy to meet future water demand. To ensure water sustainability, PUB has been strengthening its water reuse capabilities. Today, it has five water reclamation facilities.The NEWater plants allow used water,which would otherwise be lost to the sea,to be treated and reused as process water by local industry. Its three-stage process is one of the most efficient ways to recycle used water, and has a recovery rate of 75 percent, although the goal is a sustainable go percent rate. NEWater production also requires significantly less energy than seawater desalination. Pioneering Flood Control Happy Valley,located in the Wan Chai District of Hong Kong, is a cultural, economic, and entertainment center. Despite its metropolitan development,the area is prone to flooding as it is located at low-lying ground near the Victoria Harbor. The Happy Valley Racecourse, one of Hong Kong's most popular attractions,was submerged under nearly three feet of stormwater during a severe rainfall event in 2008. Instead of throwing more drains at the problematic spots,leaders understood such a strategy would not effectively reduce flooding risks because the downstream drains adjacent to the sea would have already been submerged by seawater at high tide, thus reducing the flood protection efficiency. Engineers set out to implement a pioneering underground storage scheme, comprising a large underground tank to store stormwater runoff for reduction of flooding risk during severe rainfall events.The strategy included an integrated ID network, 2D overland flow, and 3D computational fluid dynamics models. There is also a network of sensors capturing tidal level in Victoria Harbor and water levels at several strategic locations,including the storage tank and the upstream and downstream of the drainage culvert. 6 During heavy rain,water level rises and SCADA sensors would trigger the adjustable weir system in which excess runoff would enter the storage tank.After the rainfall event when the water level in the culvert drops,the adjustable weirs would be lowered to drain out part of the stored stormwater to the downstream drainage network by gravity. The remaining stormwater in the tank will then be drained out by pumping. The solution prevents serious disruption to the nearby racecourse and recreational grounds, as well as to traffic along the surrounding roads. `A Stormy Reality' From the Atlantic seaboard to the Gulf Coast, images of a bucolic ocean lifestyle hide a stormy reality. Take Charleston, SC,for instance: Perched on a harbor inlet of the Atlantic Ocean, locals enjoy the temperate conditions common to southern climes,yet they wrestle with the wet-weather consequences of life by the sea. Statistics revealed by city leaders recently showed that by 2040, Charleston's water conveyance systems will be impacted by elevated waters on 18o days of each year— a stark data point for an exposed city already coping with a rising sea. Respecting and understanding the threat, city leaders began a massive large-diameter tunneling project to increase stormwater management capacity. In Houston,where Hurricane Harvey besieged residents in 2o17, officials announced a feasibility study to determine whether a large-scale tunneling system could help it cope with future storms. More broadly, some U.S. cities which had once tacked strategic resilience planning onto the job description for broader managerial roles are now devoting new positions to resilience alone that are focused on water supply and management. In South Florida, multiple jurisdictions have begun appointing"Chief Resilience Officers"to take leadership roles in managing long-term resilience-focused water infrastructure strategy. The city of Miami, Miami Beach, Broward County, Miami-Dade County, and Palm Beach County all have CROs.After Superstorm Sandy battered New York City in 2012, the city created the Mayor's Office of Recovery and Resiliency,which has aggressively pursued projects aimed at shielding Manhattan from the effects of major storms and climate change. Preserving Quality Of Life The safe disposal of municipal wastewater is vital to preserving the environment and protecting the health of communities.As previously discussed,wastewater can be treated and 7 safely reused for potable and non-potable applications. But are there other ways in which we can turn wastewater from a"waste"into a valuable, renewable resource? Yorkshire Water is one of many UK water utilities making investments to unlock wastewater's power generation potential.At Knostrop Wastewater Treatment Works,in the northern city of Leeds,Yorkshire Water is spending£72 million on an upgrade project that will enable the works to meet 55 percent of its own electricity needs— equivalent of providing power to 8,00o homes —through advanced wastewater treatment. Sludge, a byproduct of the sewage treatment process, is the main source of biogas.At Knostrop, a new state-of the-art sludge treatment and anaerobic digestion facility are at the heart of the drive to unlock what the utility refers to as "poo-power." The new treatment process will have other environmental benefits, in addition to generating renewable energy.The site's carbon emissions will be reduced by 15 percent, and 94 percent of Leeds'sewage sludge will be safely recycled. Looking ahead, the design of the new treatment process has used the limited space available efficiently to allow for future expansion. In the present, the efficient design also ensures that the operation and maintenance of the new equipment is not compromised. This has been enabled, in part,by the innovative use of new digital technologies to create intelligent piping and instrumentation diagrams —iP&IDs. Knostrop is one of the first water projects to benefit from iP&IDs. The Interconnectedness Of Sustainability Securing our water supply is a high calling on its own,but what happens when we draw new connections? Let's start at the intersection of water and energy: Black&Veatch recently began exploring how the installation of large-scale floating solar panels could help reduce water loss, suppress algae growth, and minimize erosion. Preliminary results at one site in Asia indicate water loss through evaporation can be reduced by as much as 70 percent, a critical benefit in water- scarce regions relying on surface water reservoirs. Water can return the favor:A 2018 report by the National Renewable Energy Laboratory (NREL) concluded that solar projects placed at reservoirs in the U.S.would have the potential to meet as much as ro percent of the nation's energy supply while saving millions of acres of land. 8 Thinking holistically—how water, power, and all resources are connected— can unlock a wealth of engineering innovation,provided we are open to the possibilities. Accounting for The Human Element The water industry is at a turning point. Utilities recognize the power in making their operations more efficient through strategies that maximize data, manage assets, and more effectively engage with customers —all while doing more with less.A new water economy is encouraging modern tools and efficient technologies to address old problems of resource and cost. But something else is stirring. The human element, which has always been at the center of the engineering solutions that safeguard our water supply, is coming into even sharper focus. Solutions account not just for the hard work of moving and treating water itself,but also for human impact and benefit. How do these solutions integrate, supplement— and,whenever possible, complement—our communities and way of life? That is the mandate of World Water Day, and indeed, every day. Cindy Wallis-Loge is President of Black&Veatch's water business, leading the company's efforts to address billions of dollars in water infrastructure needs around the world. Wallis- Lage joined the company in 1986 and has provided leadership and project expertise to more than too municipal and industrial facilities throughout North America, South America, the United Kingdom,Asia Pacific, and India. Wallis-Loge joined the Black&Veatch Board of Directors in 2012.A licensed professional engineer,she earned a Bachelor of Science in Civil Engineering from Kansas State University in 1985 and her Master of Science in Environmental Health Engineering from the University of Kansas. 9 Water Online April 9, 2019 At OCWD President Vicente Sarmiento Testifies Before Congress About Safe and Reliable Water in the Western United States April 9, 2019 Recently, Orange County Water District (OCWD; the District) President Vicente Sarmiento appeared in Washington D.C. to testify before the House Subcommittee on Water, Oceans, and Wildlife. President Sarmiento spoke about one of the most pressing issues—the provision of a safe and reliable water supply in the western United States. As a leader in water recycling and groundwater management, OCWD was invited to discuss the projects and programs it has implemented that have helped the region to better weather drought and that have created a long-term reliable water supply for the 2.5 million people it serves in north and central Orange County. OCWD's most notable accomplishment is its award-winning Groundwater Replenishment System (GWRS), the world's largest water purification project. A joint project of OCWD and the Orange County Sanitation District, the GWRS has become a global model for water reliability. Seeing wastewater as a resource, the two agencies made history when they brought a 70-million-gallon-a-day (MGD) project online in 2008 and a 30-MGD expansion online in 2015. Today, the GWRS produces 100 MGD and a final expansion of the project will be implemented in 2023 that will bring total water production to 130 million gallons of water a day—enough water for one million people. "The GWRS is a solution to water supply challenges, increasing water demands, local control, and long-term reliability,"said President Sarmiento. "There is no one-size-fits-all solution when it comes to water recycling, but the GWRS is one of the most valuable assets in Orange County and it is a project that can be replicated locally, nationally and globally. The potential 10 for water recycling is tremendous and when implemented, these projects will result in water security." Since, 1933 OCWD has managed and protected the Orange County Groundwater Basin, which provides water to 2.5 million people in north and central Orange County. Nineteen cities and water districts water districts pump 77 percent of their water supply out of the groundwater basin. OCWD's proactive approach to planning and investment resulted in a groundwater basin that is protected against seawater intrusion and has doubled its annual yield since the 1960s. For decades, OCWD has worked with the U.S. Army Corps of Engineers (Corps) to capture more stormwater behind Prado Dam to minimize the loss of stormwater to the ocean and maximize what is put into the groundwater basin. Additional efforts with the Corps include increasing water supply reliability and flood control management through advanced forecasting tools such as Forecast Informed Reservoir Operations (FIRO) that allows improved forecasts and new tools to be used by water managers for water operations. Increased forecast ability (longer lead time) will allow the Corps and OCWD to update operations at Prado Dam to improve water supply reliability in a changing climate, thereby reducing demands on imported water and saving energy. "OCWD was truly honored to testify before the subcommittee and will continue to collaborate and share information in the interest of providing water reliability for all," added President Sarmiento. "OCWD's innovation, along with state and federal support, are the reasons why OCWD's projects and programs are in place." As leaders in the water industry, OCWD is a supporter of legislation currently pending before the Subcommittee, H.R. 1162, that would reinvigorate the United States Bureau of Reclamation's Title XVI water recycling program, authorizing $500M dollars in competitive grants assistance and, for the first time, increasing the ceiling on project assistance to $30M. The District requested that the sub-committee move to approve H.R. 1162 so that many more projects like the GWRS may be built. The Orange County Water District appreciates the opportunity to testify before Congressional and state committees to share information, new research, best practices, and lessons learned. About the Subcommittee on Water, Oceans, and Wildlife The Subcommittee on Water, Oceans, and Wildlife is part of the House Committee on Natural Resources and is responsible for overseeing the agencies that manage America's water resources, hydropower development, and federal transmission lines. To view today's full testimony, please visit httos://voutu.be/ORPK6SsrxGs. About OCWD The Orange County Water District is committed to enhancing Orange County's groundwater quality and reliability in an environmentally friendly and economical manner. The following cities rely on the groundwater basin, managed by OCWD, to provide 77 percent of their ll water demands: Anaheim, Buena Park, Costa Mesa, Cypress, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Palma, Los Alamitos, Newport Beach, Orange, Placentia, Santa Ana, Seal Beach, Stanton, Tustin, Villa Park, Westminster and Yorba Linda. For more information, visit www.ocwd.com. 12 CWEA April 16, 2019 Annual Conference 2019 Recap By Megan Barillo•April 16,2019•Views: 203 The 2019 Annual Conference (held at the Renaissance Palm Springs and Palm Springs Convention Center) included tracks on Leadership,Water Reuse, Biosolids, Pump Basics, Laboratory TNI Standards, Declining Flows,Asset Management,just to name a few.With over 1,000 attendees and 720 vendor attendees,the week was full of energy,learning,networking and fun!You can download conference presentations here. The conference started off on a sweet note with Drew Dudley of Day One Leadership defining what a lollipop moment was. He shared inspiring stories on leadership,recognizing leadership in ourselves,raising leaders,working with leaders and ultimately changing our view on how we see leadership. This was the second year CWEA held the Women Impacting Water breakfast meeting to a sold out group. Megan Yoo Schneider lead the audience on an interactive journey of networking and discussion with California water leaders,engineers,operators and scientists.It was a high energy discussion where participants shared how they achieve work life balance,why having mentors are so important and to keep looking for the opportunities.Thank you United Rentals,ARUP, DN Tanks,Woodard&Curran and V&A Consulting for sponsoring this event. The Conference Committee put together an outstanding program. New and exciting events and items worth mentioning: Several hands-on workshops for pumps, microbiology and process optimization Truck Maintenance training More hotels to select from You Don't Know Pooh Game Show 13 • CWEA Sewer Hunt: Journey of a Thousand Pipes Scavenger Hunt • Chief Plant Operators Networking • Mobile Tech Tours • Partnering with CA-NV AW WA to Launch AWT Operator Certification • More Wednesday networking lunches This year, CWEA recognized 10 SS new inductees.All of these individuals are recognized for being active in protecting the water environment through participation in Local,State, and/or Federal sponsored activities.The 2019 shovel took on the form of the California grizzly bear. These new shovels are available to any SS recipient wanting to upgrade or collect this new shovel. It's a limited availability and can be purchased for a donation of$25 to the Kirt Brooks Scholarship fund.Contact mbarillo@cwea ore for information The week continued with some bittersweet moments,as we said"so long"to CWEA's Executive Director, Elizabeth Allan as she enters retirement after 17 years with CWEA. Read her interview here. The first ever You Don't Know `$j game show was a stinking hit!Two days full of wastewater trivia and prizes galore, including the coveted & emoji trophy! Congratulations to WEF President Tom Kunetz and his various team members for wiping the slate clean with his wastewater knowledge two days in-a-row. But those weren't all the prizes that were in store.The Students and Young Professionals Committee put on a Flawless scavenger hunt through the exhibit hall.The Journey of a Thousand Pipes Sewer Hunt attracted almost 40 participants. Each participant was required to engage with exhibitors to extract an answer from them in order to win points and ultimately,prizes!All of this was done in the CWEA Conference App. 14 Debbie Webster of Central Valley Clean Water Association peRl won the Grand Prize iPad. Check out the feedback we're receiving on the scavenger hunt! "The Scavenger Hunt was a fun thing to play. I hope it continues at future CWEA Conferences." "Great conference, great idea on the scavenger hunt and the app." Thank you Dudek for sponsoring this fun event! The week ended on a high note with the voting in of the new CWEA Board during the Annual Business Meeting and the cheers and applause for all the deserving water professionals being awarded at the Annual Awards Celebration. More than 30 CWEA State award winners were recognized, 10 Kirt Brooks Scholarship winners and several WEF winners.The complete list of winners of CWEA and WEF awards given,including new 5S inductees can be found here.Thank you Xylem,Inc. for sponsoring the awards events. Thank you Tom Kunetz for sharing words of wisdom on what an actual Diva is and for sharing your story on how nothing should be standing in your way.With the right amount of determination,anything can be done. 15 We will all take these words of wisdom,lessons learned,tips,tricks and more with us as we level up in our sector. Thank you to all AC19 sponsors. And to top that all off,thanks to the generous donations from Local Sections and collections from CWEA members during the week,almost$30,000 was raised for the Kirt Brooks Memorial Water Scholarship Fund! CWEA would like to extend a big"thank you'to Ddaze Phuong of Orange County Sanitation District and Ralph Palomares of El Toro Water District for their continuous support in capturing these moments so we can share and look back on them in future years. This conference wouldn't have been successful if it wasn't for these people.Thank you Conference Education Program Team! • Chairs: Brian Peck,SOCWA and Monica Myhill, CWEA • CWEA President: Connie Leonard,PE,BCEE, CUM Smith • Education Program Team: • Gary Warren, EBMUD- Chair • Laurie Brenner, Union Sanitary District • Howard Brewen,Jacobs • Steve Cane,Central Marin Sanitation District • Thomas Falk, CDM Smith • Kathryn Gies,West Yost Associates • Chris Newton, South Coast Water District • Amy Omae, HDR 16 • John Robinson,John Robinson Consulting • Wendy Wert, LACSD • Andrea White, Moleaer • Exhibits: Denis Pollak, Retired; Brian Villacorta, Coombs-Hopkins and Christine Carchia CWEA • Women's Networking Breakfast and Volunteer Reception: Berlinda Blackburn, City of Coachella • Opening General Session: Megan Yoo Schneider, Seven Management Consulting Inc.and Municipal Water District of Orange County • Technical Tours: Charles Greely Dudek • Awards Lunch: Ian Mackenzie,Hazen and Megan Barillo, CWEA • Track Facilitator Co-Chairs: Bryce Danker,Hazen; Sheba Haviz,Arup and Roni Young, SOCWA • SYP: Veronica Astells,Town of Windsor • Golf Tournament: Steve Agor,Skanska • Photo&Video: Ralph Palomares, El Toro Water District and Ddaze Phuong, Orange County Sanitary District To volunteer for AC20 Education Program Team taking place in Reno, NV on March 31 -April 3 contact Gary Warren EBMUD. 17 CWEA April 17, 2019 CWEA corn Announcing the 2019 CWEA Award Winners By Megan Barillo•April 17,2019•Views: 171 The California Water Environment Association (CWEA) announced the winners of its 2019 awards program at its Annual Conference in Palm Springs on April 12. Nominations that advance through CWEA's 17 local sections' awards programs plus a select group of special awards are eligible to compete statewide. CWEA officers are available to make a presentation to CWEA award recipients at agency board or City Council meetings. Please contact Victoria Thornton at vthornton@cwea.org or(510) 382- 7800 x 113. Congratulations to these agencies and individuals leading the way in the protection and enhancement of our water environment. Supervisor of the Year:Ted Gerber,Orange County Sanitation District 18 Quarter Century from the South: • Tony Lee,Orange County Sanitation District 19 OCWD/OCSD Press Release April 23, 2019 PRESS RELEASE G � W � RCS U GROUNDWATER REPLENISHMENT SYSTEM x r x FOR IMMEDIATE RELEASE Contacts: Diane Pinnick, (714) 378-3228 or dpinnick@ocwd.com Jennifer Cabral, (714) 593-7581 or jcabral@ocsd.com Orange County Water District and Orange County Sanitation District Receive Mercury Award FOUNTAIN VALLEY,Calif. (April 23, 2019)—The Orange County Water District (OCWD;the District)and the Orange County Sanitation District(OCSD) received a Silver Mercury Award for their Groundwater Replenishment System (GWRS) Bottled Water Campaign.The International Mercury Awards competition honors the best in public relations, public affairs and corporate communications. The GWRS Bottled Water Campaign spanned a year and included a Hollywood media kick-off event,a California bottled water tour,the GWRS 10th anniversary Winter Fest celebration as thanks for local support, and the garnering of the Guinness World Records'"title for the most wastewater recycled to drinking water in 24 hours. The two agencies collaborated on the creation of the Groundwater Replenishment System (GWRS),the world's largest advanced water purification project for drinking water.Since it came online in 2008, it has produced 282 billion gallons of near-distilled quality water that was added to the Orange County Groundwater Basin and later pumped by 19 cities and water agencies to supply 77 percent of the water needs for 2.5 million people in north and central Orange County.The GWRS currently produces 100 million gallons per day of water. 'The GWRS Bottled Water Campaign drew tens of thousands of peoples' attention to state and local water needs and provided knowledge about water reuse as a viable new source of drinking water;' said 20 OCWD President Vicente Sarmiento. "OCWD and OCSD were the first to bottle advanced recycled water in the Western Hemisphere. Since bottling, people from as far away as Spain and England have been able to sample reused water for themselves.The GWRS is paving the way for other projects like it around the world and we believe that support begins with tasting and seeing the water." "Educating people that wastewater is a resource is critical to the success of water reuse projects,"said OCSD Chairman David Shawver. 'This project has helped Orange County create a reliable water supply and we look forward to the project's final expansion in 2023, which will bring total water production to 130 million gallons a day—enough water for one million people.At that time,we can proudly say that we have met OCSD's 100 percent recycling goal." The annual International Mercury Award is named for the Roman god who was the messenger of the other gods and symbolizes the spirit of the message communicated.Judging is based on the values of ADD 1-1-1 Orange County Water District and Orange County Sanitation District Receive Mercury Award For creativity,effectiveness, performance, and success.Visit https://www.mercommawards.com/mercury.htm for more information about the award. About Orange County Water District(OCWD) The Orange County Water District is committed to enhancing Orange County's groundwater quality and reliability in an environmentally friendly and economical manner.The following cities rely on the groundwater basin, managed by OCWD,to provide 77 percent of their water demands:Anaheim, Buena Park, Costa Mesa,Cypress, Fountain Valley, Fullerton,Garden Grove, Huntington Beach, Irvine, La Palma, Los Alamitos, Newport Beach, Orange, Placentia,Santa Ana,Seal Beach,Stanton,Tustin,Villa Park, Westminster and Yorba Linda. For more information about OCWD, please visit www.ocwd.com, like @OCWaterDistrict on Facebook,follow @OCWDWaterNews on Twitter,follow Orange County Water District on Linkedln, and follow @OCWD on Instagram. About Orange County Sanitation District(OCSD) OCSD is a public agency that provides wastewater collection,treatment,and recycling for approximately 2.6 million people in central and northwest Orange County.OCSD is a special district that is governed by a 25-member Board of Directors comprised of 20 cities,four special districts, and one representative from the Orange County Board of Supervisors. OCSD has two operating facilities that treat wastewater from residential, commercial and industrial sources. For more information, about the Orange County Sanitation District visit www.ocsd.com or call (714)962-2411. 21 Twitter Posts March/April 2019 a a _ \ 141111111. oc Sew.ra a«a...w 28 day summary sess name over prom us ceded 34 ass% 23.7K az 3% 445*317% 20131 o% 1,560 f15 - AW21119.21 Wesesea.. ThesumadecHus Top Tweet saddle rlaa sommaM1re Top mention eadded ess engagemems Get your Tweets in front of Veslertlay our Board Chair a Vice Chair Las Virperres MWG more people spent the day in Sacramento mtg wN,the Rr2 RdnuRd Twre6 and random[pen m ryur offices of @Philneg, ream en Twmerto more poops. 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At the @tr msportdems hearing today 1 412 31 Lane reductions and turn restrictions,please called for funding for@OCWDWaterNews use alternate roues_More info at and @OCSewers water recycling progeds. .adc.m/StateCcilloge We've got to consider ffolimateehange #OCSDStateCollege#OCSDConstruehon when we think about how to spend 20 piclwitteccoM52i91zGcnz inhashucWre dollars,and I'm pleased OC is taking the lead,pic twitter comlAIRQ7OPyn Y�ewTwlanE'aT Y a1TweNacrmiy .7 -1e exa Vim Tweet Top FdIOWer fan ee w 3162—to f/ Top media lWeet essh valsa .Pleaare Enough already,don't Push v#pes.Please) #National,GetOvedtOay Fy #NoWipeslnThaPipes#WhaUFlush AX plc twitter t.W3P9r3,0.Q MFoa Social Media @Fox9acalMeUh wuca'e va 1Mprq olaiwsse snore mar story aew a amenroar iawl wnems aema a vOnlin me jb%SocialMe inung inmq %OnlineMaekelinp%AOveNainO%Traoin0 vi x mifile Y Ica.UaapwN ^x aae •xo Y Tweet owh, wexaHTwvvamvily 23 Facebook Posts March/April 2019 Page aum Last 28Oay8 a Export Data 6 Results from Mar➢a,2019-Apr 21,2019 Note Does not include today's data.Insights activity Is reported In Ike Pacific 0me zone.Ads activity is reported in the Organic Pad time zone of your ad account Actions an Page F Page VWM F Page Prettiness F March 25-Apal 21 March 25-Afford 21 March 25-Apil 21 3 550 31 I otal Ac(mns pill Page 25% Total Page Views•23% Page Previews•24% Page Likes F Post Reach F Recommendations Mar(i]S Air I71 March 25-Ap1121 Lfaiih/5 AP�e II 15 7,804 Page Likes a 25% People Reachad N% •iii We have ireaXiaent data Ip show for Ne selected ame penal. Post Engagements F Wilson, F Page Followers Ma¢n2S-A,0 1 March 25-Aging 21 March 25-April Fl 3,326 1 ,045 14 Paid Engagement a 18% 3-Second Video Views SIM Page Followers.17% 24 Published Post Type Targeting Reach Engagement 0422RO19 = Ifs#NationalEnvironmenRlEducntionWeek an come �a 5 #w 9:37 AM Rine a tour and learn all about astewater,we mis Proe D I 04212019 When someone says wipes are flushable. 25 =. r 585 ru PM #NoWpesgnThePiius,MIpeSClogPlpes#GOT 1 25 04/21I2019 Happy Easter from the Orange County Sanitation r 191 T Drone!] 9 04I192O18 Construction Alen:Sewer instigation work on State r 173 I 1 I 4:00 PM College in City of Anaheim-Municipal Government is 5 I 0411g2g19 Did you know that in 2016 the Governor of CalifomR 14 r 900 PM signed Assembly Bit 2DU which allows Californians to 04/1B2O19 A big high We to our awesome sag for being pan of the 13 249 PM 2019/20 Board for California Water Environment 3@ I 22 OH182O19 ■ Join us on Wednesday,AMI 24 at Plain No.1 for the r 167 I 6 I 1036 AM Steering Committee and Board meeting shutting at 4 p in 3 I ON182O19 Banner 24 r 390 1239PM I 23 04/162019 Sometimes people lie,we would never lie to you.Believe 271 - 910AM us when we say Mat'lushable-wipes aren't notable. r 44K 162 "152019 Wondering what is part,on at Sate College and Ball Rd 1111114 674 6 I 912 AM in City of Anaheim.Municipal Govemmenl?Its a lack 1 38 / OM142O19 TodayR#NatlonalGardenvil so let's talk#Biosotids. 13 r 900 PM Biosolids are nugdentfiM,treated organic matter 389 I 16 0 4/1 3 2019 As we wrap up#NationalVoluntro Week we want to 48 272 6:00 PM Mark our awesome volunteers who partiapated in r I 29 / "132019 Just anoMer beautiful Saturday at our HunMgton Beam r 344 I 27 / 11 to AN feeldy,Don't la, rwds that we gel to wok hertO 32 / 0411IM19 Our Laboratory has alwaysr been accredited by the Slate, � 296 24 � 1126 AM but now we are the first municipal lab in California to OU1O2O19 It's#NationalSidingsOW so we're giving a big sl ommert 13 3T1 900 AM „av to our sister agency the Orange County Water District r I 14 25 "092019 It's dime go back to Me basics,do you know what the 3 r N 860 85 900 AM Ps am?If you guessed pink,puryle and perwirde , 50 ON 019 - It'sitationalSateDigginghlonM so we want to remind r a 234 5 920 AM ' you thatdiggirg is rwjodng matter.Motheryouare 9 OM052D19 Yesterday our Board Chair Dave Shawver and Vice r 199 13 9:34AM Chair John Withers spent the day In Sacramento 14 0 2019 Why do you think we find so many rags and wipes in our 561 "am system?We should only only ha the 3 P's,pee,poop,and r 1 9K ■ 91 WN32019 ,� OCSD's Administration Committees m 1 meeting to I 8 12:13 PIA i. I Wednesday,April 10 at 5pm at Plant No 1 in Fountain O1/QY2019 It's#Wastemte ordWednesday so we're labor,Air r fi12 34 900 AM Scrubbers.OCSD covers most of Me plant processes so 1 38 OV022019 Join us on Monday,April 8 at 3'.30 pm for the Legislative r 1T/ 8 900 AM and Public Affairs Committee Me yn,,at Plant No.1 in I 1 W12019 A t ig high five to Don Stokes,he is the now Maintenance 115 ■ to 417 3:56 PM Manager for OCSD's Collectors Facility Division. I BB (MMM19 We are kidding,tours are not cancelled We wouldn't do ■4 H 249 I 26 236 PM that to our hns.#ApnlFools ekes are the bestl Sign up 9 00012019 Due to the popular use of flip flops and OCSD's concem ■o 284 114 ■ 1224 PM with satey,we will no longer be o6erng tours to Me I 30 01I012019 ® Paving on Newport BMin City of Newport Beschr-City to1T3 I 5 9 as AM Hall on tonight,we www.ocsd.camMewport for details. 2 IXV292019 ® Reminder,consbuc5on work this weekend on State r 153 I 1 202PM College in City of Anaheim-Muniipal Government 2 03282019 This is a digester,it wars like a big stomach.Solids r 367 39 900 AM - digestion processing takes place here over about 18-21 I 23 03282019 Hip hip hooayl Victor Salinas and Paula Zoller are r 557 ' 115 ■ 229 PM celebrating 30 years of ser sce at OCSDI Over Me last 63 0 M(119 The Operations Committee is meeting next Wednesday, 5 184 7:03 PM Apol3 at 5 p in at Plant No.1 in Fountain Valley.Take a 0 26 MM019 Gonsbuclion Alert.Nighttime work in Giy of Anaheim- 7 a 141 2 4,59 PM Munidpal Goyemment.State Gallege at Katella 1 03272019 Are you smatter than a 51h gradeO The 4M and 5th r 241 52 325 PM graders at the Children's Water Festival hosted by 24 I 032WO19 ® Did you knmv your sullen plumbing is generally only an r 857 130 1232 PM inch and a hag in diameter and can be easily dogged by 24 I 03 019 It's#MorwationMonday,time so how about you visit — 125 137 PM www_ocsd_comljobs and apply for an awesome career in r N 772 34 IX9212019 Construction Alert:night work continues tonight and to 1A ict 0 328 PM tomorrow night at State College and I(atella in City of 3 03212019 65 years in the making...construcfon of digesters at r (li 307 26 848 AM Plant No.2 in Hunhigton Beach in 1954. 30 O1r202019 The Steering Committee and board!of Directors are 7 406 PM �'� meeting nerd Wednesday,March 27 Gheck out the § N 186 3 27 Instagram Posts March/April2019 mewers em— > 158 posts 483 followers 661ollowing OC Sanitation DYtria The OC Sanitation Dirtnd provides wastewater collection,treatment and oen cling for apprw 2.6 million people in central&north Orange County. www.aWsom ®POSTS 14iV SPVEO P TAGGED aim RPPV ERSIER o 28 i/I i • as • z NIGHT ■ o .1. WORK 29 . Pay for what y �'- *''~ you lose. iti.d 5/13/2019 Public Affairs Update Presented by Jennifer Cabral ®11\�.1■! !` Public Affairs ay peralsor 132019 E M ^ 4� 0000111& •1apoM Ate = e Did Tours gin 22 tours / 400 guests connection 4 speaking engagements 2 outreach events lairso3Ooiiuuic. as Social Media © � 0 sxnxxs 6 YIIFEIP Twitter: 34 tweets Participated in: 23.7k impressions Constru&ion Networkspeakingengagement _ Facebook: MEES Student Chapter Annual Conference 37 posts Orange County Council of Government General Assembly 7.8k reach Westminster Spring Festival Plant No.2 neighborhood tour Instagram: Irvine Earth Day Event 2Z posts Fountain Valley Crossing Stakeholders Meeting MEES Annual Conference and Awards Banquet 4k impressions 2 1 5/13/2019 What We Are Doing i ■■®�■ Upcoming Activities ■■ CSr^Anniversary Coordination • Crisis/Risk Communications Strategy ■ for The Emerging Public Issue • Plantt No.No.2 neighborhood tour • Public Works Week ■ Honor Walk Los Alamitos City Council Briefing on July 271 8:30 a.m. Western Regional Sewer Project Southeast Area(Huntington Beach) Council Committee Meeting Water Summit 3 Silver Mercury Award for GWRS Bottled Water Campaign The yearlong bottled water campaign included a Hollywood media kick-off event,a California bottled water tour,the GWRS 10th Anniversary Winter Fast celebration as thanks for localsupport,and the Guinness World Record for the most wastewaterhe recycled into drinking water within a 24-hour period. 4 2 STEERING COMMITTEE Meeting Date TOBE.Or Dir. 05/22/19 05/22/19 AGENDA REPORT Item Item Number 2 16 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET, 18429 PACIFIC STREET, 18368-18375 AND 18410-18436 BANDILIER CIRCLE, FOUNTAIN VALLEY GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 3 with The Muller Company, LLC for Property Management Services to extend the services for twelve-months, from September 1, 2019 through August 31, 2020, with all terms and provisions of the Agreement remaining unmodified and in full force and effect. BACKGROUND In March 2018, the Orange County Sanitation District (Sanitation District) purchased property at 18350 Mt. Langley Street in Fountain Valley. The property was occupied by commercial tenants and was managed by The Muller Company, LLC, a professional property management company. The Sanitation District contracted with The Muller Company to continue to provide professional property management services to maintain the building and interact with the commercial tenants. In August 2018, the District acquired three additional parcels on Pacific Street and Bandilier Circle; each building with multiple commercial leases. The Muller Company agreement was amended to include the management of these three buildings in addition to the Mt. Langley building. RELEVANT STANDARDS Protect Orange County Sanitation District assets PROBLEM The Sanitation District will need to transition these properties from commercially leased to construction ready. This transition process is expected to commence prior to the expiration of the current term of the property management services agreement and continue through Summer 2020. PROPOSED SOLUTION Continue to engage the firm currently managing the properties through the transition process in preparation of the construction of the new Administration Building and until a Page 1 d 3 permanent property management strategy can be developed for the one remaining commercially leased building. TIMING CONCERNS The current schedule calls for the transition to commence prior to the expiration of the current property management agreement and for the transition to be complete before Fall 2020. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will lose continuity of care of the property and could incur potential delays while transitioning from commercially leased to construction ready, thus delaying the construction timeline for the new Administration Building. PRIOR COMMITTEE/BOARD ACTIONS September 2018 - Approved Amendment No. 1 with The Muller Company for Property Management Services for an additional management fee of$3,293 per month plus other incurred expenses, for the addition of Sanitation District acquired properties on Bandilier Circle and Pacific Street including two additional renewal periods of six months each. February 2018 - Approved a sole source agreement with The Muller Company for Property Management Services, for the period March 1, 2018 through August 31, 2018, for a management fee of $4,200 per month plus other incurred expenses, including two additional renewal periods of six months each. September 2017 - Approved a Standard Offer, Agreement and Escrow Instructions for and Authorized General Manager and General Counsel to Execute any and all Instruments Related to the Transaction of Purchase of Real Estate (Purchase Agreement) with K&A Investments LP for Property at 18350 Mt. Langley Street, Fountain Valley. ADDITIONAL INFORMATION Monthly expenses for services such as utility bills and repair work will vary month to month. All expenses will be reviewed and approved by Sanitation District staff. CEQA N/A FINANCIAL CONSIDERATIONS The property management costs will be offset by rents collected on the commercial leases. Page 2 of 3 ATTACHMENT The following attachment(s)in attached in hard copy and may also be viewed on-line at the OCSD website (mmocsd.com) with the complete agenda package: • Proposed Amendment No. 3 Original Agreement • Amendment No. 1 • Amendment No. 2 Page 3 d 3 AMENDMENT NO.3 TO MANAGEMENT AGREEMENT This AMENDMENT NO. 3 TO MANAGEMENT AGREEMENT("Amendment') is made and entered into effective as of May_2019, by and between ORANGE COUNTY SANITATION DISTRICT, a county sanitation district duly organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of the State of California("Owner'),and THE MULLER COMPANY,LLC ("Manager"). RECITALS : A. Owner and Manager entered into that certain Management Agreement dated as of February 28, 2018, Amendment No 1 dated August 28,2018 and Amendment No 2 dated February 28,2019(collectively the "Agreement") pursuant to which Owner contracted with Manager to provide management services fmI8350 Mount Langley, Fountain Valley, California, the 'Property" and to provide management services for 18368, 18375, 18381, 18384, 18410, 18430, 18436 Bandilier Circle and 18429 Pacific Street,Fountain Valley,California, the"Additional Properties". B. Except as otherwise set forth herein,all capitalized terms used in this Amendment shall have the same meaning given such terms in the Agreement. C. Owner and Manager desire to amend the Agreement to change the Expiration Date,as hereinafter provided. NOW, THEREFORE, in consideration of the Foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: 1. Parties agree to renew the Agreement for a twelve(12)month tern from September 1,2019 through August 31,2020("Expiration Date"). 2. No Further Modification. Except as set forth in this Amendment No. 3, all of the terns and provisions of the Agreement shall remain unmodified and in full force and effect. IN WITNESS WHEREOF,this Amendment has been executed as of the day and year first above written. (Signatures on next page) ORANGE COUNTY SANITATION DISTRICT Dated: By: David John Shawver, Chair, Board of Directors Dated: By: Kelly A. Lore, Clerk of the Board Dated: By: Lorenzo Tyner, Contracts, Purchasing and Materials Manager THE MULLER COMPANY, LLC Dated: By: Jon M. Muller President Print Name and Title of Officer IRS Employer's I.D. Number -2- MANAGEMENT AGREEMENT THIS MANAGEMENT AGREEMENT (this "Agreement") is made and entered into as of February 28, 2018 by and between ORANGE COUNTY SANITATION DISTRICT, a county sanitation district duty organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of the State of California (hereinafter called "Owner"), and THE MULLER COMPANY, a California corporation (hereinafter called "Manager'). WITNESSETH WHEREAS, Owner is the owner of that certain real property addressed as 18350 Mt Langley, Fountain Valley, California, commonly known as Fountain Valley Business Center, (the "Property"); WHEREAS, the Property includes an office building and surface parking; and WHEREAS, Owner desires to appoint Manager to manage and operate the Property and Manager desires to accept such appointment, all upon the terms and conditions hereinafter set forth. NOW, THEREFORE, for and in consideration of the promises and mutual covenants and agreements contained in this Agreement and the fees to be paid under this Agreement, Owner and Manager hereby agree as follows: ARTICLE I Establishment of Hiring; Term 1.1 Exclusive Hiring. Owner hereby appoints Manager, in the capacity of an independent contractor, as the sole and exclusive manager for the Property, and Manager hereby accepts such appointment. This Agreement is not one of agency by manager for owner, but one with Manager engaged with respect to the functions undertaken by or assigned to Manager under this Agreement independently in the business of managing properties on its own behalf, as an independent contractor. 1.2 Term of Agreement. The term of this Agreement will be for an initial term of six (6) months and two renew Options with six (6) month term each to be exercised at the discretion of the Owner upon written notice by Owner of renewal at least thirty (30) days prior to the end of the Initial Term. Notwithstanding the foregoing: (i) if Manager defaults in the performance of any of Managers obligation under this Agreement, and such default is not cured within thirty (30) days after written notice thereof is received by Manager (or, if such default is non-monetary and of such a nature that it cannot be reasonably cured within such 30-day period, Manager fails to commence the curing of such default within such 30-day period and fails to thereafter diligently prosecute such cure to completion), then Owner may thereupon terminate this Agreement for cause by giving written notice of such termination to Manager, such termination to be effective as of the effective date specified in such termination notice; and U2502709 2 00nsaivdlwde -1- 12971%1 III) Manager may terminate this Agreement at any time with or without cause by giving Owner at least thirty (30) days' prior written notice. The Initial Term shall commence once Owner obtains legal title to the Property. 1.3 Furthermore, Owner reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, by giving at least thirty (30) day's prior written notice to the Manager. 1.4 Cooperation. Owner and Manager shall consult and meet with each other to the extent necessary or appropriate to enable Manager to perform its duties under this Agreement or as requested by either party. Each parry shall cooperate fully in all matters relating to the management, operation, maintenance and repair of the Property and the defense of any claim, action or proceeding relating thereto or to this Agreement, and both parties shall promptly respond to all requests for information by the other party, including furnishing all documents and services relating thereto required by Owner in connection with the operation of the Property. Any time the consent of Manager or Owner is required under this Agreement, such consent shall not be unreasonably withheld, conditioned or delayed, and whenever this Agreement grants Manager or Owner the right to take action, exercise discretion or make a determination, Manager and Owner shall act reasonably and in good faith unless a different standard is expressly set forth in this Agreement. ARTICLE II Services to be Performed by Manager 2.1 Employment of Personnel. Manager shall employ such personnel as may be necessary, in Manager's sole but good faith discretion, for Manager to (i) accomplish the efficient and successful operation and management of the Property, and (ii) property perform Manager's obligations under this Agreement, which may include, without limitation, employing one (1) or more on-site managers. Such personnel shall in every instance be deemed employees of Manager and not of Owner, and Owner shall have no right to supervise or direct any of such employees. Manager shall fully comply with all applicable laws and regulations having to do with workers' compensation, social security, unemployment insurance, hours of labor, wages, working conditions and other employer-employee related subjects in connection with the Property. All reasonable salaries, wages, and other compensation of personnel employed by Manager under this Agreement, including so-called fringe benefits (but excluding bonuses), medical and health insurance, federal and state unemployment taxes, pension plans, social security taxes, workmen's compensation insurance and the like shall be paid by Manager and reimbursed to Manager by Owner on a pro rate basis of the time such employee has allocated to the Property and where such employee services were required to properly, adequately, safely and economically manage, operate, and maintain the Property, and provided that such employees have been identified by position and compensation enumerated on a schedule provided to Owner by Manager and approved by Owner, or as set forth in the Approved Budget(as defined below). 2.2 Service Contracts. Manager shall make in Manager's name as agent for Owner, contracts for utilities and other services such as water, electricity, gas, telephone, vermin extermination, trash removal, heating, ventilating, and air conditioning maintenance, security, and other services deemed by Manager or Owner to be necessary or advisable for the operation, maintenance, or repair of the Property in accordance with this Agreement. All such contracts shall (i) be in the name of the Manager as agent for owner; (ii) be made expressly 6)3593.WM '2- 9oonaalamub 12971M 39]1061 assignable, at Owner's option, to Owner or Owners nominee, (iii) include a provision for cancellation thereof by Owner or Manager effective upon 30 days' written notice; and (iv) shall provide all contractors provide evidence of adequate and sufficient insurance for the services being proved. Manager shall also place orders in Managers name as agent for Owner for such equipment, tools, appliances, materials, and supplies as are reasonable and necessary, in Managers sole but good faith discretion, to property maintain, manage, operate, or repair the Property in accordance with this Agreement. In entering into any contracts contemplated by this Agreement, Manager shall use commercially reasonable efforts to include as a condition thereof the right of Owner or Manager, as the case may be, to terminate such contract on thirty (30) days' prior written notice. Manager may obtain goods or services for the Property from direct or indirect affiliates of Manager, its officers, directors, shareholders, or employees (collectively, "Manager Affiliated Parties'), but only if such goods and services are of at least equal quality and of no higher prices than comparable goods and services obtainable from unaffiliated parties and such goods and services are otherwise competitive with comparable goods and services and Owner provides written consent of such contacts with Manager Affiliated Parties and after disclosing to Owner the relationship of Manager to the Manager Affiliated Parties. 2.3 Contracts in excess of$5,000.00 shall be procured as follows: (a) For contracts for goods and services with the value $50,000 or less Manager shall obtain three competitive Bids or Proposals as applicable. (b) For construction contracts with value equal or greater than $35,000 all contracts must be competitively bid and the award provided to the lowest, responsive, responsible Bidder. (c) Sole Source contracts may be initiated provided that the following conditions are met: 1. Goods or Services are of a unique nature based on their quality, durability, availability, fitness or qualifications for a particular use; or only available from one source. Written justification must be provided to Owner for approval prior to proceeding with the sole source contract Owner approval must be obtained by Manager prior to proceeding with all new contracts. 2.4 Maintenance and Repair of Property. To the extent funds of Owner are available, Manager shall make all repairs and perform all maintenance on the buildings, grounds and other improvements of the Property necessary, in Managers sole but good faith discretion, to maintain the Property in a manner comparable to similar office buildings in the vicinity of the Property, but only to the extent the cost of such work does not exceed $5,000.00; otherwise, prior written approval from Owner shall be required. Notwithstanding the foregoing, Manager shall also perform or furnish any and all emergency repairs or services necessary, in Managers sole but good faith discretion, for the preservation of the Property or to avoid the suspension of any service to the Property or danger to life or property. Emergency repairs or services may be made or furnished by Manager without Owners prior written approval, but only if it is not reasonably feasible to secure such prior approval. In any event, with respect to any emergency repair or service which costs more than $5,000.00, only, Manager shall, not later than two (2) business days after performing or furnishing such emergency repair or service, notify Owner of the details and cost thereof. a 2,0v 23'r99s OW72 sIv®vdea 3- 12971U6.1 2.5 Tenant Relations. Manager shall use commercially reasonable efforts to make itself fully familiar with the terms and provisions of all leases for space within the Property, and to the extent funds are available shall use commercially reasonable efforts to perform all delegable duties of Owner as landlord under each such lease, so that such lease shall remain in full force and effect, with no default by Owner, and shall use commercially reasonable efforts to enforce the full performance of all obligations of the tenant under each such lease (including, without limitation, the tenant's obligation to deliver estoppel certificates, subordination and attommenl agreements, financial statements and other documents required under such lease). Manager shall maintain business-like relations with tenants, receive requests, complaints and the like, from tenants and shall use reasonable efforts to respond and act upon the foregoing in reasonable fashion. 2.6 Collection of Moneys. Manager shall use commercially reasonable efforts to collect all rent and other charges due from tenants, licensees and other occupants of the Property and such other rents and charges as shall otherwise be due to Owner in connection with Owners ownership of the Property. Owner authorizes Manager to request, demand, collect, receive and deposit all such rent and other charges and to institute proceedings in the name of, and as an expense reimbursable by, Owner for the collection thereof and for the dispossession of tenants and other persons from the Property, and such expense may include the engaging of counsel for any such matter. However, no unlawful detainer action shall be filed by Manager without prior written approval of Owner. In connection with any of the foregoing, Manager may settle, compromise, or release any action, claim, or demand of Owner, provided that Owners prior written consent shall be required for the settlement, compromise, or release of any claim for which the amount at issue exceeds $5,000.00. All moneys collected by Manager shall be forthwith deposited in the Operating Account(as defined below). 2.7 Compliance with Leoal Requirements. Manager shall use commercially reasonable efforts to comply with any and all laws, ordinances, rules, regulations, orders, or other requirements affecting the Property of any federal, state, county, or municipal authority having jurisdiction thereover, and orders of the Board of Fire Underwriters or other similar bodies. Manager, however, shall not take any such action as long as Owner is contesting, or has affirmed in writing to Manager its intention to contest and promptly institutes proceedings contesting, any such order or requirement, except that if failure to comply promptly with any such order or requirement would or could expose Manager to criminal liability, Manager shall have the right, but not the obligation, to cause compliance with such order or requirement. However, before any election by Manager to comply with such order or requirement, Manager shall provide Owner written notice of its intent to do so and Owner or Manager shall have the right to immediately terminate this Agreement. Owner agrees to pay all expenses incurred by Manager, including, without limitation, reasonable attorneys' fees for counsel (not exceeding a rate of $250 per hour) employed to represent Manager or Owner, with respect to any proceeding or suit involving an alleged violation by Manager or Owner, or both, of any orders or requirements of any federal, state, county, or municipal authority or orders of the Board of Fire Underwriters or other similar bodies (unless Manager is finally adjudicated to have personally and not in a representative capacity violated such order or requirement), but nothing contained herein shall require Manager to employ counsel to represent Owner in any such proceeding or suit. 2.6 Construction Management and Supervision. Manager shall provide the "CM Services" set forth in Exhibit attached hereto and made a part of this Agreement. 67£508 03" 23700&000071&&1VdWdb$ -4- 1297106.1 2.9 Leasing Services. Manager shall endeavor to secure and retain tenants for the Property. All leasing activity, whether for retention of existing tenants or obtaining of new tenants, shall be conducted in accordance with the Approved Budget(as defined below) and the applicable terms and conditions set forth in this Agreement. Manager agrees to cooperate with any third party brokers ("Outside Brokers") in leasing space at the Property; leasing commissions to such Outside Brokers shall be paid by Manager (following payment of same by Owner to Manager) with respect to leases hereunder; if such leasing commission to be paid to an Outside Broker is set forth in the Approved Budget, then such leasing commission shall not require the approval of Owner (otherwise such leasing commission shall require Owner's prior written approval). 2.10 Notices. Manager shall promptly deliver to Owner all notices received from any mortgagee, trustee, ground lessor, governmental or official entity, or any other parry with respect to the Property. Manager may sign and serve in the name of Owner any and all notices only required in connection with the proper performance by Manager of the services required to be performed by Manager under this Agreement. ARTICLE III Budgets/Reports 3.1 Process for Approval of Annual Operating Budget. Within thirty (30) days after the commencement of the Initial Term of this Agreement, Manager shall submit to Owner, for Owner's approval (which approval shall not be unreasonably withheld, conditioned or delayed), a current operating budget for the Property from the date of the commencement of the initial Term of this Agreement through June 30, 2018, which proposed budget shall reflect thereon projections of all receipts and operating costs and expenses, capital expenditures, and replacement reserves that Manager, in the exercise of good business judgment, believes will be received or necessary to be incurred, as the case may be, to operate the Property through June 30, 2018. 3.2 Within sixty days from the initial Term of this Agreement, Manager shall submit to Owner for Owner's approval (which approval shall not be unreasonably withheld, conditioned or delayed) a proposed operating budget for the Property for the fiscal year of July 1, 2018 through June 30, 2019. Such proposed budgets and projections shall be submitted by Manager solely as estimates, without warranty of their accuracy or attainability. Manager may not employ any person, to assist Manager with the preparation of such budget. If Manager has not received written approval or disapproval of Managers proposed operating budget within thirty(30) days after submittal thereof by Manager, the proposed operating budget submitted by Manager shall be automatically deemed approved by Owner. If written disapprovals are received by Manager, Manager shall promptly revise the proposed operation budget to incorporate any comments thereto proposed by Owner with which Manager agrees and the parties shall consult with each other in order to mutually agree upon an acceptable final operating budget. The approved and/or deemed approved operating budget shall be referred to herein as the "Approved Budget". If, as of July 1 of each fiscal year, a proposed operating budget has not yet been finalized, then Owner and Manager shall continue to proceed under the prior fiscal years Approved Budget until the current fiscal years operating budget is agreed upon by Owner and Manager, except that all ordinary reimbursable expenses included in such prior years Approved Budget (other than taxes, insurance and utilities, which shall be at the actual costs thereof) shall be increased by five percent (5%). If an Approved Budget has not wzwx.0r arme.00aorre.o-rvuwdm -5- IMI(X.i been agreed upon by March 31st then ether party upon 30-days' written notice may terminate this Agreement. 3.3 Expenditures and Liabilities Which Are in Addition to Items on the Approved Budget. Manager shall secure the written approval of Owner (which approval shall be in the sole discretion of Owner) prior to making any expenditure or incurring any liability or obligation not reflected on the Approved Budget; provided, however, that Manager shall not be required to secure the written approval of Owner if such expenditure does not increase any line item by more than five percent(5%) of the line item amount reflected on the Approved Budget. 3.4 Records: Reporting and Audit. (a) Records. All statements, receipts, invoices, checks, leases, contracts, worksheets, financial statements, books and records, and all other instruments and documents relating to or arising from the operating or management of the Property shall be maintained by Manager, and Owner and Manager shall have the right to inspect and to copy all such items, at such party's expense, at all reasonable times, and from time to time, during the term of this Agreement and for a reasonable time thereafter not to exceed three(3)years. Upon the termination of this Agreement, all of such books, records and other information shall be the property of and be promptly delivered (without warranty) to Owner in readily accessible and readable form; provided, however, that Manager or its representatives shall have the right to inspect such books, records, and other information and to make copies thereof during the three (3) year period referred to in the preceding sentence at the offices of Owner upon reasonable advance notice to Owner. (b) Monthly Reports. On or before the twentieth (20'h) day of each month during the term of this Agreement, Manager shall deliver to Owner an operating report for the Property (on a cash and not an accrual method) for the preceding calendar month. (c) Audit. Owner 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 Owner determines are necessary to discover and verify that Manager is in compliance with all requirements under this Agreement. Manager 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. Owner retains the right to examine Manager's books, records, documents and any other evidence of procedures and practices that the Owner determines are necessary to discover and verify all 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. Manager shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the Owners policy. Manager shall make available to Owner for review and audit, all property related accounting records and documents, and any other financial data within 15 days after receipt of notice from Owner. Upon Owners request, Manager shall submit exact duplicates MW2.dxn nrodsmdw�arvmvdh -a- IMIM I of originals of all requested records to Owner. If an audit is performed, Manager shall ensure that a qualified employee of the Manager will be available to assist Owners auditor in obtaining all accounting records and documents, and any other financial data as they relate to the property and services provided under this Agreement. (d) No Liability for Returns Required by Law. Manager shall not be responsible or liable for preparing or fling any forms, reports, or returns that may be required by law relating to any personnel employed by Owner in connection therewith. Manager, and not Owner, however, shall be responsible for any forms, reports, or returns that may be required by law relating to any of Managers employees. ARTICLE IV Expenses, Operating Account 4.1 Expense of Owner. Everything done by Manager under the provisions of this Agreement shall be done as an independent contractor of Owner. Unless otherwise provided herein, Owner shall not be obligated to reimburse Manager for (a)any expense for office equipment or office supplies of Manager(unless and only to the extent incurred and used in the promotion and leasing of the Property and/or the collection of income or payment of expenses for the Property); (b) any overhead expenses of Manager incurred in its general offices in excess of the pro rate portions of overhead expenses attributable to the Property; (c)any salaries or wages allocable to time spent on projects other than the Property; or(d)any salaries, wages, and expenses for any personnel other than personnel located at the Property site and/or personnel spending a portion of their working hours (to be charged on a pro rate basis) at the Property site specifically performing Managers duties under this Agreement. All payments to be made by Manager under this Agreement shall be payable, or if otherwise paid by Manager, reimbursable, from funds deposited in the Operating Account. Manager shall not be obligated to make any advance to or for the account of Owner or to pay any sums except out of funds held in the Operating Account, nor shall Manager be obligated to incur any liability or obligation for the account of Owner without assurance satisfactory to Manager that the necessary funds for the discharge thereof have been or will be promptty provided by Owner. Owner shall at all times provide Manager, free of charge, with an appropriate management office at the Property. 4.2 Separation of Owners Moneys. Manager shall establish and maintain in a banking or other financial institution reasonably approved by Owner whose deposits are insured by the Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation, a separate bank or similar account in the name of Owner for the deposit of moneys of Owner received with respect to the Property (the "Operating Account'). Manager shall also establish such other special bank or similar accounts as may be reasonably required by Owner, or as required under the law. If and only if the funds are to be used for an item set forth in the Approved Budget, or as otherwise provided for by this Agreement, funds may be withdrawn through authorized signature cards from all accounts upon the sole signature of Manager or any of the following persons, on behalf of Manager: Tim Gooch, George Denington, Tammy Le, or Jenny Blanchart ("Authorized Persons"). Manager shall immediately notify all financial institutions if any of the Authorized Persons are no longer employed by Manager and cause them to be removed as a signatory to withdraw funds. Manager's authority to withdraw funds may be terminated at any time by Owner upon three (3) days written notice to Manager. In the n�m.oru -7- aownsaraimee.12W10 3V]106.1 vent of such termination, Owner will assume full liability for all existing financial obligations incurred by the Manager for the Property incurred prior to the termination and in accordance with this Agreement. 4.3 Manager Disbursements. Manager shall, from the available good funds collected and deposited in the Operating Account, cause to be disbursed regularly and punctually the following amounts (in the following order of priority (1)the amounts which Owner from time to time advises Manager are to be paid for any loans secured by mortgages on the Property, incurred before or after this Agreement becomes affective, including amounts which Owner from time to time advises Manager are due under any mortgage for interest and amortization of principal and for allocation to reserves or escrow funds; (2)the amounts payable to Manager pursuant to this Agreement; and (3)the amounts otherwise due and payable as operating expenses of the Property. Owner shall at all times maintain in the Operating Account a balance equal to the highest projected monthly expenditures as determined by the applicable Approved Budget for the Property. In addition, Owner shall within five (5) business days after Manager's written request, deposit such additional funds as Manager reasonably determines are needed to effect any authorized disbursements to be made by Manager pursuant to the terms of this Agreement. In the event Owner fails to deposit the amount of such expenses and fees, Manager shall be under no obligation to advance any funds to meet the obligations for which the additional funds have been requested and shall not incur any liability in connection therewith. However, Manager may elect to advance funds to pay such expenses and shall in such event be entitled to reimbursement upon demand from Owner therefor. Any funds remaining at the end of each calendar month during the term of this Agreement in the Operating Account (in excess of the balance required to be maintained in such account) shall be disbursed or transferred as generally or specifically directed from time to time by Owner. Within fifteen (15) days after Manager's receipt of written request by Owner(but no more often than once during each calendar month during the term of this Agreement), Manager shall provide Owner with a list of the disbursements made by Manager during such month and if so requested by Owner, invoices supporting the disbursement. Unless otherwise provided for in the Approved Budget, Owner, and not Manager, shall be responsible for the payment of all real estate taxes and other impositions levied by appropriate authorities. ARTICLE V Management and Other Fees 5.1 Management Fee. Owner shall pay to Manager, as compensation for Managers management services, on a monthly basis, a management fee (the "Management Fee") in an amount equal $2,000.00 per month. 5.2 Compensation for Tenant Finish Work and Capital Improvements. For services which it performs in overseeing and/or managing the completion of tenant finish work and construction of capital improvements within the Property, Owner shall pay Manager the fees described on Exhibit "A" attached hereto in accordance with the terms and conditions set forth on Exhibit"A"attached hereto. 5.3 Leasing Commissions. For services which it performs in connection with the leasing of the Property, Owner shall pay Manager the fees described on Exhibit "B" attached hereto in accordance with the terms and conditions set forth on Exhibit"B"attached hereto. 6]250R.OIM znaoa0000nae-rvmaee, -a- i?vna r 5.4 Additional Services. It is expressly agreed that in the event Owner requires Manager to perform or undertake additional services which are of an extraordinary nature or which are not customarily performed (or which are performed less frequently) by property management companies managing projects comparable to the Property located in the vicinity of the Property, Owner shall pay to Manager additional feels) for such additional services, and the amount of such additional feels) shall be reasonably and mutually agreed upon by Owner and Manager. ARTICLE VI Insurance/Indemnity 6.1 Insurance. Owner shall maintain in full force and effect insurance policies with respect to the Property, including any personal property of Owner, issued by insurance companies which have an A.M. Best General Policyholder's Service rating of not less than "A- VIII" which are licensed, or approved to do business, in the state in which the Property is located. Such insurance policies shall provide the following coverages: (a) Property Insurance. "All Risk" property insurance including fire, sprinkler leakage if applicable and water damage in an amount not less than the full replacement cost of the Property, with an agreed value endorsement sufficient to prevent Owner from becoming a co-insurer in any loss under the policy. The policies of insurance carried in accordance with this Section 6.1(a) shall contain (i) a replacement cost endorsement without deduction for depreciation or obsolescence, (ii)coverage for building ordinance, increased cost of construction, sinkhole (subsidence) and pollution clean-up resulting from insured peril, and (iii)a waiver of subrogation clause; (b) Flood Insurance. If at any time the Property or any part thereof is within a 100 year Flood Zone or an area designated "flood zone" pursuant to the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001 4128) or any amendments or supplements thereto or substitutions therefor (collectively, the "National Flood Insurance Program"), flood insurance (to the extent available at commercially reasonably rates) in such total amount as Owner may from time to time reasonably require but in an amount not less than the maximum available under the National Flood Insurance Program with a deductible not exceeding $10,000, and which shall in any event comply with the National Flood Insurance Program as set forth in the legislation; (c) Earthquake Insurance. Earthquake insurance on the Property for not less than the maximum probable loss if located in UBC Seismic Zones 3 and 4; (d) Liability Insurance. Commercial General and Excess Liability Insurance, written on an occurrence basis, including blanket contractual liability, products and completed operations and personal injury coverage, notice of occurrence, knowledge of occurrence, unintentional errors and omissions, pollution from hostile fire, building heating equipment with a combined single limit for any one occurrence of Fifteen Million Dollars ($15,000,000) or such higher limit as Manager may from time to time reasonably request. Such requirement may be satisfied by a layering of Commercial General Liability, Umbrella and Excess Liability policies, but 2370M M007W&lVdIWdW -9- 124LMI in no event will the liability insurance be written for an amount less than Fifteen Million Dollars ($15,000,000) combined single limit for bodily injury and property damage liability; (a) Boiler Insurance. Boiler and Machinery Breakdown Direct Damage Insurance and third parry liability coverage (if not covered under the Commercial General Liability Policy) with full comprehensive coverage on a repair and replacement basis for all HVAC equipment, electrical equipment, boilers and machinery which form a part of the Property, including building ordinance Business Interruption Coverage for Loss of Rental Income in connection therewith in accordance with Section 6.1(d) above; (f) Builder's Risk Insurance. During the course of any construction or repair of improvements or during the course of restoration on the Property (other than tenant installation), Builder's Risk Insurance on a completed value basis and on a non-reporting form against "all risks of physical loss," including flood (if available at commercially reasonable rates), earthquake (if available at commercially reasonable rates), collapse, transit and off-site coverage (if available at commercially reasonable rates), during construction of such improvements or restoration, with deductibles satisfactory to Owner, covering the total replacement cost value of work performed and the equipment, supplies and materials furnished (unless such equipment, supplies and materials are required to be insured by contractors or vendors) and rent loss insurance for a period not less than twelve (12) months or the construction period, whichever is the greater, in an amount satisfactory to Owner. Such policy of insurance shall include coverage for building ordinance, increased cost of construction, sinkhole (subsidence) and pollution clean-up resulting from an insured peril, and shall contain a "permission to occupy" endorsement, a waiver of coinsurance or an agreed amount endorsement and an agreement by the insurer that following a loss, the insurer will pay to the insured (I)the full value of the loss provided Owner is required to or elects to rebuild or (11)the actual cash value of the loss in the event Owner is not required to or does not elect to rebuild; AND (g) Other Insurance. Such other insurance with respect to the Property, in such amounts as Owner(or any lender in connection with a Financing) from time to time may require against such other insurable hazards which at the time are commonly insured against in respect of property similar to the Property. 6.2 Manager's Insurance. Manager shall, at the expense of Manager, maintain in full force and effect insurance policies with respect to Manager and the employees of Manager issued by insurance companies which have an A.M. Best General Policyholder's Service rating of not less than "A-VIII," which are licensed and approved and authorized to do business in the state in which the Property is located. Such policies shall provide the following coverage: (a) Worker's Compensation Insurance. Worker's Compensation Insurance as required by the Labor Code of the State of California, including Employer's Liability Insurance with a minimum limit of $1,000,000.00. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of OCSD. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless your insurance carrier is State of California 67202.02 22700a000071aalvdiadbs -10- 12wim.1 Insurance Fund (SCIF and the endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. (b) Automobile Liability Insurance. Comprehensive automobile liability insurance covering owned, non-owned, and hired vehicles in an amount not less than Five Million Dollars ($5,000,000) combined single limit for bodily injury and property damage. Such requirements may be satisfied by layering of comprehensive automobile liability, umbrella and excess liability policies, but in no event shall the comprehensive automobile liability policy be written for an amount less than One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage. (c) Errors and Omissions Fidelity Bond and Cvber Liability Insurance. Fidelity bond and computer crime insurance with an annual limit of a minimum of One Million Dollars ($1,000,000). (i) Errors and Omissions Coverage (professional liability coverage) in an amount of not less than $1.0 (one) million per occurrence throughout the term of this Agreement (it) A fidelity bond or crime insurance, in content acceptable to OCSD, shall be carried in the amount of$1 (one) million dollars. (iii) If the Manager provides services related to information technology, the Manager must maintain third-party Cyber Liability insurance with limits of not less than $1.0 million per occurrence covering claims involving technology professional liability, privacy liability where applicable (including but not limited to loss of OCSD employee information), security liability where applicable (including but not limited to technology attacks via hackers or viruses, and cyber extortion threats), media liability where applicable (including but not limited to libel, slander and copyright infringement from content created by the Vendor), and damage to or destruction of electronic information or media. (d) Commercial Liability Insurance. Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: $5.0 million per occurrence with $5.0 million aggregate separate for this contract. 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, 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 OCSD and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers Liability must be included in the General Liability policy and coverage must be reflected on submitted Certificate of Insurance. (a) Umbrella Excess Liability The minimum limits of general liability and automotive liability insurance required, as set forth above, shall be provided for either a single policy of primary insurance, or a combination of policies of primary 672502.05M 20700 W00716blVd dtl -11- 129710 1 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. (f) Additional Insured Endorsements Each policy of insurance obtained, except Worker's Compensation Coverage and Errors and Omissions Coverage, shall name OCSD, its Directors, officers, agents, consultants, and employees for this contract, and all public agencies from whom permits will be obtained and their Directors, officers, agents and employees, as determined by OCSD, as additional insured on said policies. No exclusionary language or limitations shall be applicable to any additional insured that are not applicable to the named insured. In addition, insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under said policies. If this coverage is not provided within the coverage form (insurance policy) it shall also be endorsed as primary and non-contributory coverage. (g) Proof of Coverage The Vendor shall furnish OCSD 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 OCSD before work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting 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 or other equivalent Certificate of Insurance form. • Additional Insured (GL) (ISO Form) CG2010 11 85 or The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by OCSD, and OCSD may reject alternatives that provide different or less coverage to OCSD. • Additional Insured (Auto) Submit endorsement provided by carrier for OCSD 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) Period of Coverage Insurance coverage is required during the period of this contract. (i) 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 ACORD Form shall state the required thirty erewz.wnw nrowaowrre lWdWa -12- 129 IM 1 (30) days' written notification Policy shall not terminate, nor shall it be cancelled nor the coverage reduced, until thirty(30)days after written notice is given to OCSD except for non payment of premium which shall require not less than ten (10) days written notice to OCSD. Should there be changes in coverage or an increase in deductible or SIR amounts, the Vendor and its insurance broker/agent shall send to OCSD a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, Div. 260, and shall be received by OCSD 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 OCSD. 0) Insurance Carrier Rating The insurers must have an A- (A minus), or better, policyholders rating, and a financial rating of Class Vill, or better, in accordance with the most current A.M. Best Rating. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best's rating process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of Workers Compensation Insurance, subject to OCSD's option, at any time during the term of this contract, to require a change in insurer, upon twenty (20) days written notice. OCSD will also require Vendor to substitute any insurer whose rating drops below levels herein specified. Said substitution shall occur within twenty (20) days of written notice to Vendor by OCSD or its agent. (k) Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by OCSD shall be excess and not contributing with the insurance provided by Vendor (1) Separation of Insured All liability policies shall contain a "Separation of Insured"clause. (m) 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 the Agreement, or the extent to which Vendor may be held responsible for payments of damages to persons or property. In) Deductibles and Self Insured Retentions Any deductible and/or self insured retention must be declared to OCSD on the Certificate of Insurance. All deductible and/or self insured retentions require approval by OCSD. At the option of OCSD, either: the insurer shall reduce or eliminate such deductible or self- insured retention as respects OCSD; or the Vendor shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration and defense expenses. (0) Defense Costs Liability policies, except for Errors and Omissions Coverage, 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 (p) Limits Are Minimums If Manager maintains higher limits than any minimums shown above, OCSD requires and shall be entitled to coverage for the higher limits maintained by Vendor. arzsoz.mu Imiffi 000'rae-rvaiaaes -13 izmios.i 6.3 Blanket Insurance. Manager may effect any coverage required of Manager under Section 6.2 above under a blanket insurance policy, provided that the protection afforded under any policy of blanket insurance hereunder shall be no less than that which would have been afforded under a separate policy or policies relating only to the Property. 6.4 Policies. (a) Owner Named Insured. All of the insurance policies maintained under Section 6.1 shall name Owner as the insured and shall also include Manager as an additional insured or loss payee, as its interest may appear. (b) Owner and Manager Named Insured. The insurance maintained under Section 6.1(d) (Liability Insurance) shall name Manager as an insured, and the insurance maintained under Section 6.2(b) (Automobile Insurance), Section 6.2(c) (Fidelity Bond Insurance) and Section 6.2(d) (Commercial Liability Insurance) shall name Owner, if requested, as an insured and such other parties in interest as Owner or Manager may reasonably specify from time to time as additional insureds or loss payees, as their respective interests might appear. (c) Terms of Policies. All insurance policies maintained pursuant to this Agreement shall provide that (i) no cancellation, material change or reduction thereof shall be effective until at least thirty (30) days after receipt by Owner and Manager of written notice thereof; and (ii) all losses covered by the required insurance shall be payable notwithstanding any act of negligence of Manager or any tenant or their partners, members, stockholders, directors, officers, employees or agents which might, absent such agreement, result in a forfeiture of all or part of such insurance payment and notwithstanding ( (1)any foreclosure or other action or proceeding taken pursuant to the provision of any financing instruments encumbering the Property or(2)any change in title or ownership of the Property. In the event of any financing secured by the Property, all insurance shall comply with the terms of such financing. (d) Self Insurance. It is understood that Owner is a large public agency that has a program of insurance and self-insurance with regard to its properties. Orange County Sanitation District will arrange for insurance or self-insurance on the Property, as its Board or management shall approve from time to time, and which may include insurance or self-insurance for property, flood, earthquake, business interruption, excess liability, workers compensation, boiler & machinery, builders risk, pollution liability and perhaps others. Owner will from time to time, as reasonably requested by Manager, provide certificates of insurance and letters of self-insurance describing the insurance and self-insurance carried by Owner. Variations of Owners actual insurance program from the requirements defined in the Agreement shall not constitute a default under this Agreement, but shall be deemed to be an election by Owner to self-insure for any risks or liabilities. Upon the full execution of this Agreement, Owner shall provide Manager with a description of the process by which a claim may be made under Owners self- insurance program. All of Owners insurance obligations undertaken with respect to self-insured risks shall survive the expiration or eadier termination of the Agreement. 672502.OJ 232004000021&b12/dldE -14- 1_02106.1 (a) Evidence of Renewal and Premium Payment. Owner and Manager shall furnish to each other, upon request, prior to the expiration date of each insurance policy required to be maintained under this Article VI, certificates of insurance of the renewal thereof. 6.5 Claims. In the event of a loss related to the Property under any of the insurance policies described in Sections 6.1, Section 6.2(b), Section 6.2(c) and Section 6.2(d), Manager shall, at Owner's expense, promptly and timely after Manager learns of such loss, file a claim on behalf of Owner (and Manager or any other party to the extent Manager or such other party is also an insured party) and use commercially reasonable efforts to monitor such claim on behalf of such insured party and cooperate fully with any appointed representatives, consultants and adjusters retained by or on behalf of the insurance companies' interests. 6.6 Subrogation. Owner and Manager each waive any right of recovery against the other(and the respective officers, directors, partners, members and employees of each), for any loss or damage covered by any policy of property insurance applicable to the Property, whether due to the negligence of Owner or Manager or their agents, contractors, officers, directors, partners, members or employees. If any property insurance policy provides that a waiver of subrogation may only be granted by endorsement, the party maintaining such policy shall secure an endorsement providing the waiver of subrogation. 6.7 Indemnity. Neither Manager (nor any employee, agent, director, officer, or owner thereof(collectively, the "Manager Partners")) shall be liable, responsible, or accountable in damages or otherwise to Owner for any acts performed by Manager or any of the Manager Partners in good faith. Manager shall be liable for, and shall indemnify, defend and hold harmless Owner from and against, any and all claims, losses, damages, liabilities, costs and expenses, including reasonable attorneys' fees (collectively, "Claims") arising out of any actions of Manager not within the scope of its duties under this Agreement and proximately caused by the negligence or willful misconduct of Manager, except (1) to the extent such losses are of the type insured, or are required to be insured by Owner under this Agreement, (ii) any latent defect on the Property; or (ill) Owners failure to cooperate in any repairs or remediating any defects to the Property after such conditions are discovered and brought to the attention of Owner. Owner shall be liable for, and shall indemnify, defend and hold harmless Manager and the Manager Partners, from and against any and all Claims arising out of or resulting from (i) the acts or omissions of Manager in connection with the performance of Manager's duties under this Agreement, and (ill)from the acts or omissions of Owner and its directors and officers, except that the foregoing indemnity obligation of Owner shall not apply in the case of the acts or omissions of Manager or any other Manager Partner which (a) are a breach by Manager under this Agreement, (b) are beyond the scope of authority conferred upon Manager under this Agreement, , or (c) constitute gross negligence, fraud, malfeasance, breach of fiduciary duty, willful, reckless or criminal misconduct. The provisions of this Section 6.7 shall survive the expiration or termination of this Agreement. ARTICLE VII Obligations Upon Termination 7.1 Survival of Obligations. Upon termination of this Agreement, each party shall continue to be fully liable for its obligations which have accrued up to and including the termination date and shall promptly pay to the other party all amounts due to such other party 672so2.0a 23700v00007ro-arvdiadbs -15- 12971M I under the terms of this Agreement. Such payment shall be made as soon after the effective date of termination as such amounts are determinable. Upon such payment, neither party shall have any further claim or right against the other, except as expressly provided in this Agreement. 7.2 Obligations Upon Termination. In the event of termination of this Agreement, upon the effective date of such termination, Manager shall (i) surrender and deliver to Owner all rent and other income of the Property and other moneys of Owner then held by Manager and/or in any bank account (including, without limitation, the Operating Account) in excess of compensation or reimbursements owed Manager by Owner, including without limitation any fees payable or reimbursement of expenses due and payable to Manager, (ii) deliver to Owner as received by Manager any moneys or other property due Owner under this Agreement but received after such effective date of termination, and (iii)deliver to Owner (without warranty) copies of all records regarding the Property, keys and all other materials, property and supplies pertaining to the Property and/or this Agreement in the possession of Manager to allow Owner to fully operate, maintain, and manage the Property. ARTICLE VIII Miscellaneous 8.1 No Assignment by Manager. Without the prior written consent of Owner, Manager shall not have the right to assign, transfer, or convey any of its rights, title, or interest under this Agreement, nor shall it have the right to delegate any of the obligations or duties required to be kept or performed by it under this Agreement.,. 8.2 Successors and Assigns. Subject to the terms and conditions of Section 8.1 above, this Agreement shall be binding upon and shall inure to the benefit of the parties to this Agreement and their respective permitted successors and assigns. 8.3 No Agency. Manager is an independent contractor and, as such, shall be solely responsible for all of its employees, for the supervision of all persons performing services in connection with the performance of all of Manager's obligations under this Agreement and/or relating to the Property, and for determining the manner and time of performance of all acts under this Agreement. Nothing contained in this Agreement shall be deemed or construed to create a partnership or joint venture between Owner and Manager or to cause Manager to be responsible in any way for the debts or obligations of Owner or any other party (but nothing contained herein shall affect Manager's responsibility to transmit payments for the account of Owner as provided in this Agreement), it being the intention of the parties that the only relationship under this Agreement is one of independent contractor , and Manager shall not represent to anyone that its relationship to Owner is other than that set forth herein. 8.4 Notices. All notices, demands, consents, approvals, and requests given or required to be given by either parry to the other under this Agreement shall be in writing, shall be sent by (a) United States mail, postage prepaid, return receipt tracked or confirmed, or (b) delivered by a nationally recognized overnight courier or(c)delivered personally: (i)to Manager at the appropriate address set forth below in this Section 8.4, or to such other place as Manager may from time to time designate in a notice to Owner; or(ii)to Owner at the addresses set forth below in this Section 8.4, or to such other place as Owner may from time to time designate in a notice to Manager . Any notice, demand, consent, approval, and/or request will be deemed given (a) on the date which is seventy-two (72) hours after it is mailed as provided in this sr2w2.0x 2a>oosooao�le-sl2naees -is- 12991061 Section 8.4, (b) upon the date personal delivery is made or rejected, or (c) on the date which is one (1) business day after it is sent by nationally recognized overnight courier, as the case may be. If to Owner. Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Attention: Ann M. Grafton Principal Staff Analyst With a copy to: Bradley R. Hogin, Esq. Woodruff, Spradlin & Smart, APC 555 Anton Boulevard, Suite 1200 Costa Mesa, CA 92626-7670 If to Manager: The Muller Company 18881 Von Karmen Avenue, Suite 400 Irvine, CA 92612 Attention: Jenny Blanchart 8.5 Security Deposits. Owner agrees to indemnify, defend and hold harmless Manager from and against any and all Claims with respect to any use, detention, or misapplication by Owner of tenants' security deposits. 8.6 Remedies. Notwithstanding anything herein to the contrary, Manager shall not be liable to Owner and Owner shall not be liable to Manager under this Agreement for any damages (other than actual damages) such as, without limitation, any lost profits, loss of business, consequential, special, or other similar damages. Prior to any recovery against Manager or Owner under this Agreement, Manager or Owner, as the case may be, must be given written notice and a reasonable opportunity to cure any default or other condition which is the basis for such recovery. 8.7 Captions. The captions of this Agreement are inserted only for the purpose of convenient reference and do not define, limit or prescribe the scope or intent of this Agreement or any part hereof. 8.8 No Waiver. The failure of a party hereto to seek redress for breach, or to insist upon the strict performance of any covenant, agreement, provision or condition of this Agreement, shall not constitute a waiver thereof, and such party shall have all remedies provided herein and by applicable law with respect to any subsequent act which would have originally constituted a breach. 8.9 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 8.10 No Third Party Beneficiaries. Neither this Agreement nor any part of this Agreement nor any service, relationship, or other matter alluded to herein shall inure to the benefit of any third party (specifically including any lenders, tenants, or contractors), to any trustee in bankruptcy, to any assignee for the benefit of creditors, to any receiver by reason of 672502M] 23700MO00716-o-lvmmdw -17- 12971051 insolvency, to any other fiduciary or officer representing a bankruptcy or insolvent estate of either parry, or to the creditors or claimants of such an estate. Without limiting the generality of the foregoing sentence, it is specifically understood and agreed that insolvency or bankruptcy of either of Owner (including any partners thereof) or Manager shall at the option of the other void all rights of such insolvent or bankrupt party under this Agreement (or so many of such rights as the other party shall elect to void). 8.11 Subordination. Managers rights hereunder are all expressly subordinate, junior, and inferior to any ground lease, mortgage, or deed of trust now or hereafter placed upon the Property and to any and all advances to be made thereunder and to the interest thereon and to all renewals, replacements, and extensions thereof. 8.12 Attorneys' Fees. If either party to this Agreement brings any action to enforce its terms, the prevailing party shall be entitled to receive reasonable attorneys' fees and costs from the other party. 8.13 Change of Manager Status. If there is any dissolution, termination of corporate status, suspension in any licenses required to carry out Manager's duties as provided in this Agreement, change in control (i.e. sale of stock, sale of company, merger, sale of substantially all the assets, etc.), or any of the of the current Executive Team (as set forth in the 2113/18 proposal) leaves the employment of Manager, Owner shall be provided immediate written notice of such change and Owner shall have the right to terminate this Agreement by delivery of a written notice of termination to Manager within 30 days from receipt of Manager's notice. 8.14 Validi . If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 8.15 Entire Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the matters herein contained and any agreement hereafter made shall be ineffective to effect any change or modification, in whole or in part, unless such agreement is in writing and signed by the party against whom enforcement of the change or modification is sought. [SIGNATURES APPEAR ON THE FOLLOWING PAGE] 672W203" 201006WWVi IVMbWW -18- 12971MI Consultant: THE MULLER COMPANY Jenny Blanchart 18881 Von Kaman Avenue Suite 400 Irvine, CA 92612 c7�I7 ORANGE COUNTY SANITATION DISTRICT Dated: Z'V k � By: Gregory eboum, PLS Chair, BbSrd of Directors Dated: C�Iag� iB By: I . L elly re - A rk of the Board Dated: By. Marc Dubois Contracts, Purchasing and Materials Manager THE MULLER COMPANY Dated: By: � 0-on MulI /131anacer Print Name and Title Office IRS Employer's I.D. Number 672W20Y n704mo67re.Mavde -1& 134n061 EXHIBIT "A" CM SERVICES AND FEES (a) Construction Management Fee. Manager shall be entitled to a fee (the 'Construction Management Fee') for oversight, conformity, coordination and supervision of the design and build out of tenant improvements made in conjunction with new leases, extensions or renewals of existing leases or expansions of the leased space under existing leases, and construction projects authorized by the Owner that take place during the term of the Agreement (each, an "Improvement Project"). For Improvement Projects where the construction costs for the Improvement Project exceed Five Thousand Dollars ($5,000), Owner shall pay Manager a Construction Management Fee in an amount equal to five percent (5%) of the hard construction costs for such Improvement Project. (b) Minor Improvement Proiects. Notwithstanding anything to the contrary, no Construction Management Fee will be paid for any Improvement Projects where either (i)the scope of such Improvement Project is limited to paint and carpet or (ii)the construction costs are Five Thousand Dollars ($5,000)or less. (c) Construction Management Services. As part of Manager's construction management services with respect to Improvement Projects, Manager shall, at Owners expense, use commercially reasonable efforts to manage, arrange, supervise and coordinate, subject to the approval and direction of Owner, the design, construction and planning services of such Improvement Project,which services shall include the following: (i) Arranging, supervising and coordinating the preparation of feasibility, architectural, engineering, environmental and other studies as may be required; (ii) Arranging for the preparation and submission to Owner for approval and, following approval by Owner, monitoring compliance with: A. Plans and specifications, such plans and specifications to be prepared by one or more independent consultants approved by Owner, setting forth the scope of the Improvement Project and methods of construction to be used in the Improvement Project; B. A budget setting forth estimated costs of the design and construction of the Improvement Project; and C. A list of proposed contractors, consultants and other professionals to be employed in the design and construction of the Improvement Project. (iii) Arranging, supervising and coordinating the design, construction and planning services necessary to complete the Improvement Project, which actions shall be subject to the approval and direction of Owner, including the following: A. Coordinating with the consultants and other professionals on matters relating to the plans and specifications and any modifications thereto; 6725U.w 30900F00007M1 IV W -1- 13971W I B. Coordinating with contractors to prepare cost estimates of the Improvement Project and reviewing and advising Owner with respect to all bid documents; C. Preparing and negotiating design and construction contracts and other Contracts, if required, for the supply of services and materials necessary to design, construct and complete the Improvement Project; D. Reviewing and negotiating all change orders for the Improvement Project which change orders shall be submitted to Owner for its approval; E. Reviewing applications for payment submitted by consultants, contractors and suppliers in connection with the design, construction and completion of the Improvement Project, and submission of such applications to Owner for approval of payment; F. Preparing applications to municipal, other governmental, quasi- governmental and private authorities for Permits, including building permits, inspections and approvals, which applications shall be submitted to Owner for Owner's approval, and upon approval thereof by Owner, shall be submitted by Manager to the applicable authority; G. Supervising and coordinating construction of the Improvement Project; H. Coordinating and supervising the obtaining and maintenance of all Permits and other authorizations necessary for the Improvement Project; and I. Recording and reporting to Owner the progress of the construction of the Improvement Project. (iv) Causing complete and accurate files, books of account and other records of all construction costs and expenses of the Improvement Project incurred by Owner to be prepared and maintained in accordance with generally accepted accounting principles. 672502.=u 23700o-000071ssI2/dierdes -2- 12971061 EXHIBIT"B" LEASING COMMISSIONS Owner shall pay Manager a Leasing Commission (i) for each New Tenant (as defined below) who executes an Occupancy Lease (as defined below) during the term of the Agreement (each, a "New Tenant Lease"), (ii) for each tenant who extends the term of its Occupancy Lease during the term of the Agreement (an "Extension"), and (iii) for each tenant who expands the space leased by such tenant under its Occupancy Lease during the term of the Agreement (an "Expansion"), which Extension or Expansion (as the case may be) shall be pursuant to (A)the exercise by such tenant of its extension or expansion rights under the Occupancy Lease, and/or (B) an Amendment to an Occupancy Lease entered into by Owner and such tenant. All leasing commissions shall be paid from the Operating Account and all leases (i.e. New Tenant Lease, Extension, or Expansion) shall be signed by Owner. The term "New Tenant" shall mean a tenant who has not previously entered an Occupancy Lease then in effect for space at the Property. The term "Occupancy Lease" shall mean a lease of space at the Property, executed and delivered by Owner(or Owner's predecessor, as applicable) and a tenant. The term "Amendment to an Occupancy Lease' shall mean an amendment to an Occupancy Lease executed and delivered by Owner and a tenant. The term "Gross Rentals" shall mean the annual base rental rate stipulated in the Occupancy Lease or Amendment to Occupancy Lease (including stipulated increases, if any) multiplied by the rentable square footage of the leased space subject to the New Tenant Lease, Extension or Expansion (as applicable), the total of which shall then be multiplied by the period comprising the Basic Term. For each Occupancy Lease or Amendment to Occupancy Lease, the "Basic Term' shall be the initial term of such New Tenant Lease, Expansion or Extension (i.e., the term of the New Tenant Lease, Expansion or Extension without regard to any option to extend); and provided that if an Occupancy Lease or Amendment to Occupancy Lease contains an express option in favor of the tenant to cancel or terminate the New Tenant Lease, Expansion or Extension (herein a 'Tenant Termination Option"), the "Basic Term" shall initially include only that portion of the term of such New Tenant Lease, Expansion or Extension which is not subject to cancellation by exercise of such Tenant Termination Option; provided, however, if such Tenant Termination Option is waived by the tenant (or otherwise lapses) during the term of the Agreement, then the Leasing Commission applicable to the remainder of the initial term of such New Tenant Lease, Expansion or Extension shall become payable to Manager within thirty (30)days after the date such Tenant Termination Option is waived by such tenant (or otherwise lapses). Notwithstanding the foregoing, should an Occupancy Lease or Amendment to Occupancy Lease for any such New Tenant Lease, Expansion or Extension contain a Tenant Termination Option which is conditioned upon the tenant paying a cancellation penalty to the landlord therefor and such cancellation penalty includes the amount of all unamortized Leasing Commissions payable to Manager with respect to such New Tenant Lease, Expansion or Extension, then Owner will pay Manager all of the Leasing Commissions due hereinabove with respect to such New Tenant Lease, Expansion or Extension as if no such Tenant Termination Option existed. Fifty percent (50%) of the applicable Leasing Commission will be paid to Manager within thirty (30) days after all of the following have occurred: (i) if an Occupancy Lease or Amendment to Occupancy Lease is entered into with respect to such New Tenant Lease, Extension or Expansion, the execution of the Occupancy Lease or Amendment to Occupancy Lease by all parties; (ii)the tenant's payment of any security deposit and prepaid rent applicable to such New Tenant Lease, 672W.09 2370OM060716-61vdWdly -3- 12WI06.1 Extension or Expansion if provided for in the Occupancy Lease or Amendment to Occupancy Lease and delivery of any Occupancy Lease or Amendment to Occupancy Lease guaranty, letter of credit and other security documents that are due on Occupancy Lease or Amendment to Occupancy Lease execution; (iii) if an Occupancy Lease or Amendment to Occupancy Lease is entered into in accordance with such New Tenant Lease, Extension or Expansion, the delivery of the fully executed Occupancy Lease or Amendment to Occupancy Lease by Owner(or Manager on behalf of Owner) to tenant; (iv)the expiration of any contingencies effecting the validity of the Occupancy Lease or Amendment to Occupancy Lease for such New Tenant Lease, the Extension or Expansion; and (v) Owner's receipt of a factually correct invoice from Manager for all Leasing Commissions due for the subject Occupancy Lease or Amendment to Occupancy Lease. The balance of the applicable Leasing Commission will be paid within thirty (30) days after the commencement date of the New Tenant Lease, Extension or Expansion. The Leasing Commission is as set forth below and the percentage set forth below shall equal the percentage of Gross Rentals required to be paid by (x)each New Tenant under its New Tenant Lease over the Basic Term of such New Tenant Lease, and (y) each tenant of any Extension or Expansion over the Basic Term of such applicable Extension or Expansion: I. New Tenant Leases No Outside Broker: 4.0% of Gross Rentals for years 1 to 5 of the Basic Term 2.0% of Gross Rentals for years 6 to 10 of the Basic Term Outside Broker: Lesser of (i) 1.0% of Gross Rentals for years 1 to 5 of the Basic Term/ 0.50% of Gross Rentals for years 6 to 10 of the Basic Term or (ii) the net of 5.0% of Gross Rentals for the Basic Term minus any leasing commission payable to any Outside Broker(if applicable). It. Extension/Expansion No Outside Broker: 2.5% of Gross Rentals for years 1 to 5 of the Basic Term 1.25% of Gross Rentals for years 6 to 10 of the Basic Term Outside Broker: Lesser of (i) 1.0% of Gross Rentals for years 1 to 5 of the Basic Term / 0.5% of Gross Rentals for years 6 to 10 of the Basic Term or(ii)the net of 5.0% of Gross Rentals minus any leasing commissions payable to any Outside Broker or any Listing Broker(if applicable). zr2s ZWm 2$700MD0071asl VdMm 4- 29 iI I A AMENDMENT NO. I TO MANAGEMENT AGREEMENT This AMENDMENT NO. I TO MANAGEMENT AGREEMENT("Amendment") is made and entered ` into effective as of August 28,2018, by and between ORANGE COUNTY SANITATION DISTRICT,a county sanitation district duly organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of the State of California("Owner"),and THE MULLER COMPANY,LLC("Manager"). RECITALS: A. Owner and Manager entered into that certain Management Agreement dated as of February 28, 2018 (the "Agreement') pursuant to which Owner contracted with Manager to provide management services forl8350 Mount Langley, Fountain Valley,California,the"Property". B. Except as otherwise set forth herein,all capitalized terms used in this Amendment shall have the same meaning given such terms in the Agreement. C. Owner and Manager desire to amend the Agreement to change the Management Fee and Properties,as hereinafter provided. NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other goad and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: I. The Parties agree to correct an inadvertent error in the Management Agreement with respect to THE MULLER COMPANY time. Through this Amendment No. 1 to Management Agreement, the name of the Manager is hereby revised to read THE MULLER COMPANY,LLC.The Parties desire that this Item 1 of Amendment No, I to Management Agreement be incorporated into the Agreement,and become a part thereof from the beginning. 2. Parties agree to exercise the Option to renew the Agreement for a six(6)month tern from August 28,2018 through February 28,2019. 3. The Agreement shall be expanded to include the management of the following: 18368, 18375, 18381, 18384, 18410, 18430, 18436 Bandilier Circle and 18429 Pacific Street, Fountain Valley ("Additional Properties") 4. Effective Date of Additional Properties:August 28,2018 5. The parties hereby agree that the Owner shall pay to Manager, as compensation for Manager's management services, on a monthly basis, a management fee (the "Additional Properties Management Fee") in the amount equal to $0.05/psf/month for the actual Additional Properties in addition to the existing Management Fee in the Agreement for the Property. The square footage of the Additional Properties and Additional Properties Management Fee per each individual Additional Property is as follows: a. 18368 Bandilier Circle 6,000 sq.ft. $ 300.00/month b. 18375 Bandilier Circle 6,000 sq.ft. $ 300.00/month c. 18381 Bandilier Circle 6,000 sq.ft. $ 300.00/month d. 18384 Bandilier Circle 6,000 sq.ft. $ 300.00/month e. 18410 Bandilier Circle 6,000 sq.ft. $ 300.00/month f 19430 Bandilier Circle 6,000 sq.ft. $ 300.00/month g. 18436 Bandilier Circle 6,000 sq.ft. $ 300.00/month h. 18429 Pacific Street 23,847 sq.ft. $ 1,192.35/month Total square footage: 65,847 @$0.05/psf/month= $3,292.35/month 6. No Further Modification. Except as set forth in this Amendment,all of the terms and provisions of the Agreement shall remain unmodified and in full force and effect. IN WITNESS WHEREOF,this Amendment has been executed as of the day and year first above written. ORANGE COUNTY SANITATION /J DISTRICT Dated: "1 OI I g By. Gregory C. Seboum, PLS Chair, Board-of_ /� p� Directors - - Dated: gkyd/ O B7. Kelly A. ore 1 rk of the Board - - Dated: By - ---_ _ Marc Dubois, Contracts, Purchasing and Materials Manager THE MULLER COMPANY, LLC Dated: l?Jy /l g By: h MUllty Print Name and Title of Officer 9V- D3(Poo 7.;2 IRS Employer's I.D. Number -2- AMENDMENT NO.2 TO MANAGEMENT AGREEMENT This AMENDMENT NO.2 TO MANAGEMENT AGREEMENT("Amendment") is made and entered into effective as of February 28,2019,by and between ORANGE COUNTY SANITATION DISTRICT,a county sanitation district duly organized and existing pursuant to Section 4700 et. seq. of the Health & Safety Code of the State of California("Owner"),and THE MULLER COMPANY,LLC("Manager"). RECITALS : A. Owner and Manager enured into that certain Management Agreement dated as of February 28, 2018 and Amendment No 1 dated August 28, 2018 (collectively the "Agreement") pursuant to which Owner contracted with Manager to provide management services forl8350 Mount Langley,Fountain Valley,California, the "Property" and to provide management services for 18368, 18375, 18381, 18384, 18410, 18430, 19436 Bandilier Circle and 18429 Pacific Street,Fountain Valley,California,the"Additional Properties". B. Except as otherwise set forth herein,all capitalized terms used in this Amendment shall have the same meaning given such terns in the Agreement. C. Owner and Manager desire to amend the Agreement to change the Expiration Date,as hereinafter provided. NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,the parties hereto agree as follows: 1. Parties agree to exercise the Option to renew the Agreement for a size(6)month tern from March 1,2019 through August 31,2019("Expiration Date"). 2. No Further Modification. Except as set forth in this Amendment No. 2, all of the terns and provisions of the Agreement shall remain unmodified and in full force and effect. IN WITNESS WHEREOF,this Amendment has been executed as of the day and year first above written. (Sigxaih a oa nWPW) ORANGE COUNTY SANITATION ,,/� DISTRI T Dated: I I ILVVW Ijf_I /�� I By: / ( ld David John h er, Chair; Board of �,�/� �] n Directors Dated: r 1 ICI B n n�f �1..� Kelly /'1A. ore I rk of the Board Dated: r Y I am I d- 1, o �� � By: VI�—, wt Marc Dubois, Contracts, Purchasing and Materials Manager THE MULLER COMPANY, LLC Dated: 31 U LUill By: Jo M uller President Print Mme and Title of Officer IRS Employer's I.D. Number BOARD OF DIRECTORS Meng Date TOBE. Dir. 04/eti24/19 05/22/1Of9 AGENDA REPORT Item Item Number 0 17 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: SECOND READING OF PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-53 GENERAL MANAGER'S RECOMMENDATION A. That proposed Ordinance No. OCSD-53 be read by title only, and that reading of said Ordinance in its entirety be, and is hereby, waived; B. Adopt Ordinance No. OCSD-53 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD-48"; and C. Direct the Clerk of the Board to publish a summary of the Ordinance as required by law. BACKGROUND Assembly Bill 967 (2017), herein referred to as AB 967, creates a regulatory and permitting framework to allow alkaline hydrolysis of human remains (i.e., "water cremation') effective July 1, 2020. Prior to receiving a license to operate, any facility performing water cremation must obtain permits from the appropriate local agency or agencies to properly dispose of the liquefied remains into the local or regional sewerage system. On January 8, 2018, the Groundwater Replenishment System (GWRS) Steering Committee voted unanimously to recommend to the Orange County Sanitation District (Sanitation District) to modify its Wastewater Discharge Regulations Ordinance No. OCSD-48 to prohibit the receipt of hydrolysate through the sewer system. Under AB 967, receipt of such waste is entirely voluntary and at the discretion of the local agency. The law also explicitly recognizes the promotion of advanced water recycling systems as an example basis for prohibiting hydrolysate discharges to the sewer. Wastewater agencies may accept the hydrolysate directly through the sewer system or indirectly via trucked waste to the wastewater treatment plant. On April 25, 2018 and in accordance with the GWRS Steering Committee recommendation, the Sanitation District Board of Directors voted to direct staff to modify the Sanitation District's Ordinance No. OCSD-48 by prohibiting the receipt of hydrolysate either indirectly or directly to the Sanitation District's Sewerage System. Page 1 of 3 The proposed revisions to the Wastewater Discharge Regulations include changes that are administrative and regulatory in nature. Other revisions are changes required or recommended by United States Environmental Protection Agency and the Santa Ana Regional Water Quality Control Board and language clarifications based on recent enforcement actions. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring agencies • Build brand, trust, and support with policy makers and community leaders • Listen to and seriously consider community input on environmental concerns • AB 967— Human remains disposal: alkaline hydrolysis: licensure and regulation • Ordinance No. OCSD48 PROBLEM AB 967 states in the Business and Professions Code Article 2.7, 7639.10, (8)(D), "Authorization for disposal of hydrolysate using a sewer collection system shall be voluntary and at the discretion of each public agency.... Each public agency has the discretion to authorize or to prohibit the discharge of hydrolysate into a sewer collection system for any reason, including for purposes of promoting advanced water recycling systems". After considering three options, the GWRS Steering Committee unanimously voted to recommend that the Sanitation District prohibit all discharges from alkaline hydrolysis of human remains into its sewerage system, whether or not the flows are tributary to the Groundwater Replenishment System. PROPOSED SOLUTION Modify the Sanitation District's Ordinance No. OCSD48 to prohibit the receipt of hydrolysate directly or indirectly into the Sanitation District's sewerage system. TIMING CONCERNS Commencing July 1, 2020, AB 967 would require the Cemetery and Funeral Bureau within the Department of Consumer Affairs to license and regulate hydrolysis facilities. As specified, the bill would require an applicant for a hydrolysis facility license to present to the bureau any state or locally required permits for business operations, prove that it has the appropriate permits and contracts for the disposal of hydrolysate, and employ a hydrolysis chamber approved by the State Department of Public Health. Staff recommends resolving this matter via ordinance amendment by January 1, 2020 in order to allow planning and permitting by July 1, 2020. RAMIFICATIONS OF NOT TAKING ACTION 1. The Sanitation District would not be enacting the GWRS Steering Committee recommendation. Page 2 of 3 2. GWRS's ability to beneficially reuse the reclaimed water may be compromised by the public's perception. 3. The Sanitation District would need to develop and maintain policies and guidelines, establish and enforce permits for hydrolysate dischargers and provide additional safety and spill training and personal protective equipment to on-site Sanitation District staff. PRIOR COMMITTEE/BOARD ACTIONS April 2019 - Board of Directors introduced Ordinance No. OCSD-53 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Wastewater Discharge Regulations; and repealing Ordinance No. OCSD-48". April 2018 - Board of Directors directed staff to prepare amendments to the Sanitation District's Wastewater Discharge Regulations Ordinance No. OCSD-48 for consideration by the Board of Directors prohibiting the direct or indirect receipt of hydrolysate into the Sanitation District's sewerage system. January 2018 - GWRS Steering Committee recommended that OCSD modify its Wastewater Ordinance to prohibit the receipt of hydrolysate through the sewer system. February 2016 - Board of Directors adopted Ordinance No. OCSD48, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District adopting Wastewater Discharge Regulations and repealing Ordinance No. OCSD-39". January 2016 - Board of Directors introduced Ordinance No. OCSD48, entitled "An Ordinance of the Board of Directors of the Orange County Sanitation District Establishing Wastewater Discharge Regulations; Revising Articles 1 through 8, and repealing Ordinance No. OCSD-39".Article 2. Section 212. Prohibition on Liquefaction was deleted. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Ordinance No. OCSD-53 Fact Sheet • Draft Ordinance No. OCSD-53 Establishing Wastewater Discharge Regulations and Repealing Ordinance No. OCSD-48 • Questions & Comments to Proposed Revisions to Ordinance No. OCSD48 Page 3 of 3 Ordinance No. OCSD-53 Fact Sheet What is Ordinance No.OCSD53? Ordinance No. OCSD-53 is the latest revision of Orange County Sanitation District's (OCSD)Wastewater Discharge Regulations, formerly OCSD-48. The Ordinance is a legal mechanism implemented by OCSD that sets out requirements for the discharge of pollutants into OCSD's collection system and reclamation and treatment facilities; ensures that OCSD has adequate legal authority to effectively implement its local Pretreatment Program; and contains Local Limits controlling discharge of pollutants with which Users of OCSD's sewer collection systems must comply. Why does It have to change? This is best described as a special opening of the Ordinance which is prompted, in part, by State legislation that has a near-term effective date. Other sections of the Ordinance are being revised at the direction of the Board of Directors or General Manager to clarify and strengthen language based on on-going enforcement. What are the significant modifications to OCSD's draft Wastewater Discharge Regulations Ordinance impacting permitted users? OCSD's draft Pretreatment Ordinance changes are summarized in the table below: WHAT IS THE CHANGE? WHY DID OCSD MAKE THIS CHANGE? Prohibition on Hvdrolvsate In April 2018,the Board of Directors directed staff to No Person shall discharge Hydrolysate,Wastes, or prepare amendments to OCSD-48 prohibiting the Wastewater resulting from Hydrolysis either directly or direct or indirect receipt of hydrolysate into OCSD's indirectly to the Sewerage System. sewerage system. Flndina that OCSD is a Separate Sewer System This finding defines OCSD as a separate sewer OCSD operates and maintains a separate sewer system and not a combined sewer system. As such, system of pipes, pumps stations, intercepting sewer it is therefore not subject to the EPA's CSO Control lines, and other conveyances upstream of its Policy, published April 19, 1994(59 FIR18688), and wastewater treatment plant headwords collect and the first milestone under the CSO Control Policy was convey domestic,commercial,and indusstt rial the January 1, 1997 deadline for implementing wastewater. is not designed to collect large minimum technology-based controls(i.e., the"nine amounts of stormorm w water runoff from precipitation minimum controls"). events. Finding that OCSD implements a system-specific Sewer System Management Plan This finding explains that OCSD implements a OCSD implements a system-specific Sewer System system-specific Sewer System Management Plan in Management Plan which includes provisions to compliance with the California Statewide General provide proper and efficient management, operation, Waste Discharge Requirements, Systems,Water and maintenance of sanitary sewer systems in Quality Order No. s, because OCSD For Wastewater compliance with the California Statewide General Collection Agencies, because OCSD has taken Waste Discharge Requirements, Systems,Water measures to address sanitary sewer overflows, such Quality Order No. 2006-0003-DWQ For Wastewater as not accepting uncontrolled amounts of storm Collection Agencies. water. Prohibition on Non-Domestic Surface and Floor Drains The language clarification strengthens prohibition of No Person shall discharge non-domestic water via a waters of this type which protects OCSD's collection surface or floor drain directly or indirectly to OCSD's system against inflow and infiltration, uncontrolled Sewerage Facilities. wasteslreams, and sanitary sewer overflows of OCSD's separate sewerage system. May 15,2019 WHAT IS THE CHANGE? WHY DID OCSD MAKE THIS CHANGE? Prohibition on Stormwater No Person shall discharge storm water directly or The language clarification strengthens the indirectly to OCSD's Sewerage Facilities except as prohibition of waters of this type to protect OCSD's provided herein. collection system against inflow and infiltration, uncontrolled wasteslreams, and sanitary sewer overflows of OCSD's separate sewerage system. The prohibition helps OCSD's long-term compliance with the California Statewide General Waste Discharge Requirements, Systems,Water Quality Order No.2006-0003-DWQ For Wastewater Collection Agencies. Reports of Chanced Conditions Each User must notify the General Manager's The language clarification is based on administration designee 30 calendar days in advance. and provides more prescriptive detail to the User. Enforcement The sentence is restructured to clarify actions The language clarification is based on enforcement triggered by receipt of the written report in the Permit and provides clarity when enforcement actions Suspension, Permit Revocation, Civil Penalties, and occur. Appeals to the General Manager sections. Sale or Chance of Ownership The successor owner shall apply for a new permit 30 The change allows OCSD staff more time to calendar days in advance. It was previously 15 days. evaluate changes prior to issuing a new permit. Streamlining Best Management Practice Required and recommended language is being added These were identified by the EPA and RWQCB in to meet"enforceable"equivalency of BMP to numeric the 2013 Pretreatment Compliance Audit and 2014 limit and as per EPA(2007). EPA Model Pretreatment Pretreatment Compliance Inspection. OCSD Ordinance, p. 15, Office of Wastewater Management concurs with the findings. Federal regulations Permits Division, EPA 833-B-06-002, January 2007 evolved over time, so the proposed changes and in 403.12(b), (a), (h)and (o). update/harmonize the language in OCSD's Ordinance. Wastehauler Definitions Discharges from Type III marine sanitation devices, The language clarifies types of wastes that are campers, trailers, and car washes are excluded from accepted at the OCSD Wastehauler Station. the wastehauler definitions. Wastehauler Program Wastehauler manifest requirements are being clarified Clarifications to language and alignment with to include names and addresses of all sources of regulations of other agencies. wastewater. Wastehaulers of grease waste from Food Service Establishments must have a valid California Department of Food and Agriculture permit, if required by law. The term,"non-compliance resampling fee"is relabeled as"processing or sampling fee"to align with OCSD's Fee Ordinance. The fee is the same. Will the Local Limits be revised? No changes are being made to the Table 1 Maximum Allowable Local Discharge Limits. A technical evaluation of local limits was not performed. May 15,2019 ORDINANCE NO. OCSD-53 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING WASTEWATER DISCHARGE REGULATIONS, AND REPEALING ORDINANCE NO. OCSD-48 OCSD53-1 1392497.1 CONTENTS ARTICLE 1. GENERAL PROVISIONS............................................................................5 101. PURPOSE AND POLICY................................................................................5 102. DEFINITIONS .................................................................................................7 103. CONFIDENTIAL INFORMATION..................................................................21 104. SALE OR CHANGE OF OWNERSHIP.........................................................21 105. RESERVED..................................................................................................22 106. AUTHORITY.................................................................................................22 107. DELEGATION OF AUTHORITY...................................................................23 108. SIGNATORY REQUIREMENTS...................................................................23 109. RECORD KEEPING REQUIREMENTS........................................................23 ARTICLE 2. GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE.................................................................................................................25 201. PROHIBITED DISCHARGES .......................................................................25 202. PROHIBITION ON DILUTION.......................................................................27 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER................27 204. PROHIBITION ON UNPOLLUTED WATER .................................................27 205. PROHIBITION ON SLUG DISCHARGES AND NOTIFICATION REQUIREMENT........................................................................................................28 206. PROHIBITION ON THE USE OF GRINDERS..............................................28 207. PROHIBITION ON POINT OF DISCHARGE................................................28 208. HAZARDOUS WASTE DISCHARGE NOTIFICATION REQUIREMENT......28 209. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES TO THE OCSD SEWERAGE SYSTEM AND WASTEHAULER STATION................28 210. PROHIBITION ON MEDICAL WASTE..........................................................30 211. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES ..31 212. RESERVED..................................................................................................31 213. MASS EMISSION RATE DETERMINATION ................................................31 214. MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS ..............................33 ARTICLE 3. DISCHARGE PERMITS, CERTIFICATIONS, CHARGES, AND FEES.....34 301. INTRODUCTION ..........................................................................................34 302. CLASS I WASTEWATER DISCHARGE PERMITS ......................................34 303. CLASS II WASTEWATER DISCHARGE PERMITS .....................................41 304. DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS.......................47 305. SPECIAL PURPOSE DISCHARGE PERMITS .............................................49 OCSD-53-2 1392497.1 306. WASTEHAULER DISCHARGE PERMIT......................................................52 307. DISCHARGE CERTIFICATIONS..................................................................54 308. OUT OF DISTRICT PERMITS/DISCHARGERS...........................................56 309. RESERVED..................................................................................................56 310. RESERVED..................................................................................................56 ARTICLE 4. FACILITIES REQUIREMENTS .................................................................57 401. DRAWING SUBMITTAL REQUIREMENTS..................................................57 402. PRETREATMENT FACILITIES.....................................................................57 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS ................................................................................................... 58 404. MONITORING/METERING FACILITIES.......................................................59 405. WASTE MINIMIZATION REQUIREMENTS..................................................59 ARTICLE 5. MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS .........................................................................................................60 501. MONITORING AND REPORTING CONDITIONS ........................................61 ARTICLE 6. ENFORCEMENT ......................................................................................71 601. PURPOSE AND SCOPE ..............................................................................71 602. DETERMINATION OF NON COMPLIANCE WITH DISCHARGE LIMITS....72 603. ENFORCEMENT PROCEDURES AND APPLICABLE FEES ......................72 604. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA)...........75 605. PERMIT SUSPENSION................................................................................76 606. PERMIT REVOCATION................................................................................78 607. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS.........80 608. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS...........................................................................................................81 609. INDUSTRIAL WASTEWATER PASS THROUGH ........................................81 610. PUBLICATION OF VIOLATION....................................................................83 611. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE...............81 612. PUBLIC NUISANCE .....................................................................................82 613. TERMINATION OF SERVICE ......................................................................82 614. EMERGENCY SUSPENSION ORDER ........................................................82 615. INJUNCTION ................................................................................................83 616. CIVIL PENALTIES ........................................................................................83 617. CRIMINAL PENALTIES................................................................................86 618. APPEALS TO GENERAL MANAGER ..........................................................87 OCSD-53-3 1392497.1 619. PAYMENT OF CHARGES............................................................................88 620. COLLECTION OF DELINQUENT ACCOUNTS............................................88 621. APPEAL OF CHARGES AND FEES ............................................................88 622. RECOVERY OF COSTS INCURRED BY OCSD..........................................89 623. FINANCIAL SECURITY/AMENDMENTS TO PERMIT.................................89 624. JUDICIAL REVIEW.......................................................................................90 ARTICLE 7.SEWER SERVICE CHARGES-CAPITAL FACILITY CAPACITY CHARGES ......................................................................................................................................93 701. SANITARY SEWER SERVICE CHARGE.....................................................93 702. CAPITAL FACILITIES CAPACITY CHARGE................................................93 ARTICLE 8. SEVERABILITY.........................................................................................94 801. SEVERABILITY ............................................................................................94 802. GENERAL APPLICATION ............................................................................94 OCSD53-0 1392497.1 The Board of Directors of the Orange County Sanitation District (OCSD) does hereby FIND: A. That OCSD is required by federal and state law, including the Clean Water Act (33 U.S.C. 1251, at sec.), the General Pretreatment Regulations (40 CFR 403), and the Porter-Cologne Water Quality Control Act (Water Code § 13000, et seq.), to implement and enforce a program for the regulation of Wastewater discharges to OCSD's sewers; and B. That OCSD is required by federal, state, and local law to meet applicable standards of treatment plant effluent quality; and C. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a) and categorically exempt pursuant to California Code of Regulations Sections 15307 and 15308. D. That OCSD operates and maintains a separate sewer system of pipes, pumps stations, intercepting sewer lines, and other conveyances upstream of its wastewater treatment plant headworks to collect and convey domestic, commercial and industrial wastewater, and is not designed to collect large amounts of storm water runoff from precipitation events. E. That OCSD implements a system-specific Sewer System Management Plan which includes provisions to provide proper and efficient management, operation, and maintenance of sanitary sewer systems in compliance with the California Statewide General Waste Discharge Requirements, Systems, Water Quality Order No. 2006-0003-DWQ For Wastewater Collection Agencies. NOW,THEREFORE, the Board of Directors of the Orange County Sanitation District does ORDAIN: Section I: Wastewater Discharge Regulations governing the use of OCSD's Sewerage Facilities are hereby restated and amended to provide as follows: ARTICLE 1. GENERAL PROVISIONS 101. PURPOSE AND POLICY This ordinance sets uniform requirements for Users of OCSD's Sewerage Facilities and enables OCSD to comply with all applicable state and federal laws, including the Clean Water Act (33 United States Code [U.S.C.] 1251, at seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations[CFR] Part 403). This Ordinance OCSD-53-5 1392497.1 shall be interpreted in accordance with the definitions set forth in Section 102. The provisions of the Ordinance shall apply to the direct or indirect discharge of all liquid wastes carried to facilities of OCSD. A. The purpose of this Ordinance is to provide for the maximum public benefit from the use of OCSD's Sewerage Facilities. This shall be accomplished by regulating sewer use and Wastewater discharges; by providing equitable distribution of costs, in compliance with applicable federal, state, and local regulations; and by supporting the proper disposal of Prescription Drugs as noted in the guidelines published by the Office of National Drug Control Policy. The revenues to be derived from the application of this Ordinance shall be used to defray all costs of providing sewerage service by OCSD, including, but not limited to, administration, operation, monitoring, maintenance, financing, capital construction, replacement and recovery, and provisions for necessary reserves; B. This ordinance is meant to protect both OCSD personnel who may be affected by Wastewater, sludge, and biosolids in the course of their employment and the general public. C. To comply with federal, state, and local policies and to allow OCSD to meet applicable standards of treatment plant effluent quality, biosolids quality, and air quality, provisions are made in this Ordinance for the regulation of Wastewater discharges to the public sewer. This Ordinance establishes quantity and quality limits on all Wastewater discharges which may adversely affect OCSD's Sewerage System, processes, effluent quality, biosolids quality, air emission characteristics, or inhibit OCSD's ability to beneficially reuse or dispose of its treated Wastewater, biosolids or meet biosolids discharge criteria. D. It is the intent of these limits to improve the quality of Wastewater being received for treatment and to encourage water conservation and Wastewater minimization by all Users connected to a public sewer. This Ordinance also provides for regulation of the degree of Wastewater Pretreatment required, the issuance of permits for Wastewater discharge and connections and other miscellaneous permits, and establishes penalties for violation of the Ordinance. E. OCSD is committed to: 1) a policy of Wastewater reclamation and reuse to provide alternate sources of water supply for OCSD and agencies with which OCSD has agreements for Wastewater reclamation; and 2) a policy for the protection of groundwater. OCSD is also committed to help protect groundwater goals as established by various water quality and water purveyor agencies. To fulfill these commitments, OCSD may implement more stringent quality requirements on Wastewater discharges through regulation, including revisions to this Ordinance. OCSD-53-6 1392497.1 F. OCSD is committed to a policy for the beneficial use of biosolids, the implementation of programs to land-apply or provide for the marketing and distribution of biosolids, which may necessitate more stringent quality requirements on Wastewater discharges. G. OCSD is also committed to meet applicable air quality goals established by the South Coast Air Quality Management District, which may further necessitate more stringent quality requirements on Wastewater discharges. 102. DEFINITIONS A. Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association, and the Water Environment Federation. The testing procedures for Wastewater constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations; Title 40; Protection of Environment; Chapter I, Environmental Protection Agency; Part 136, Guidelines Establishing Test Procedures for the Analyses of Pollutants), or as specified. Other terms not herein defined shall have the same meaning as defined in the latest California Building and Construction Codes, Title 24, California Code of Regulations. 1. Act or "the Act" shall mean the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. section 1251, at seq. 2. Approved POTW Pretreatment Program or Program or POTW Pretreatment Program shall mean a program administered by a POTW that meets the criteria established in 40 CFR 403.8 and 403.9 and which has been approved by a Regional Administrator or State Director in accordance with 40 CFR 403.11. 3. Authorized Representative or Designated Signatory shall mean: a) A Responsible Officer, as that term is defined in this Ordinance and 40 CFR 403.12(I); or b) A person that is responsible for the overall operation of the facility from which the discharge originates and that a OCSD-53-7 1392497.1 Responsible Officer has designated, in writing and submitted to OCSD, an Authorized Representative; or c) A person that has overall responsibility for environmental matters for the facility from which the discharge originates and that a Responsible Officer has designated, in writing and submitted to OCSD, an Authorized Representative; or d) If the applicant or User is a federal, state, or local governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or the designee. 4. Best Management Practices (BMPs) shall mean management practices to prevent or reduce pollution or to meet Article 2 standards. Such BMPs shall be considered Local Limits and Pretreatment Standards as stated in 40 CFR 403.5(c)(4). 5. Biochemical Oxygen Demand (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a Wastewater sample. It is used as a measurement of the readily decomposable organic content of Wastewater. 6. Board shall mean the Board of Directors of the Orange County Sanitation District. 7. Bypass shall mean the intentional diversion of wastestreams from any portion of a User's treatment facility. 8. Capital Facilities Capacity Charge shall mean the payment of a fee, imposed by the governing Board of OCSD, to pay for the future costs of constructing new sewerage collection, treatment, and disposal facilities; and as a contributive share of the cost of the existing facilities. This charge shall be paid by all property owners at the time they develop the property and connect directly or indirectly to OCSD's Sewerage Facilities as a new system User. This charge, which rates are set forth in a separate Ordinance, is expressly authorized by the provisions of California Health & Safety Code Sections 5471 and 5474. 9. Charge For Use shall mean OCSD's sanitary sewer service charge, a charge established and levied by OCSD upon residential, commercial, and industrial Users of OCSD's Sewerage System, pursuant to Sections 302.6(F), or 303.6(E) of this Ordinance, in proportion to the use of the treatment works by their respective class, OCSD-53-8 1392497.1 that provides for the recovery of the costs of operation and maintenance expenses, capital facilities rehabilitation or replacement, and adequate reserves for the POTW. The minimum charge for use is the Annual Sewer Service Fee Residential Users. 10. Chemical Oxygen Demand (COD) shall mean a measure of the oxygen required to oxidize all compounds, both organic and inorganic, in Wastewater. 11. Class I User shall mean any User who discharges Wastewater that: a) is a Significant Industrial User; or b) Is determined to have a reasonable potential for adversely affecting OCSD's operation or for violating any Pretreatment Standard, Local Limit, or discharge requirement, or may cause Pass Through affecting OCSD's ability to comply with its NPDES Permit or other regulations and standards; or c) may cause pass through or Interference with OCSD's Sewerage Facilities. 12. Class II User shall mean any User whose charge for use is greater than the special assessment "OCSD Sewer User Fee" included on the County of Orange secured property tax bill exclusive of debt service, that discharges wastes other than sanitary, and that is not otherwise required to obtain a Class I permit. 13. Code of Federal Regulations (CFR)shall mean the codification of the general and permanent regulations published in the Federal Register by the executive departments and agencies of the federal government. 14. Compatible Pollutant shall mean a combination of biochemical oxygen demand, suspended solids, pH, fecal coliform bacteria, plus other Pollutants that OCSD's treatment facilities are designed to accept and/or remove. Compatible Pollutants are non-compatible when discharged in quantities that have an adverse effect on OCSD's Sewerage System or NPDES permit, or when discharged in qualities or quantities violating any Federal Categorical Pretreatment Standards, Local Limit, or other discharge requirement. 15. Composite Sample shall mean a collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the OCSD-53-9 1392497.1 sample period. 16. Connection Permit shall mean a permit issued by OCSD, upon payment of a capital facilities capacity charge, authorizing the Permittee to connect directly to an OCSD's Sewerage Facilities or to a sewer which ultimately discharges into an OCSD's Sewerage Facilities. 17. Department Head shall mean that person duly designated by the General Manager to perform those delegated duties as specified in this Ordinance. 18. Discharger shall mean any Person who discharges or causes a discharge of Wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. 19. District shall mean the Orange County Sanitation District or OCSD. 20. Division Head shall mean that person duly designated by the General Manager to implement the OCSD Pretreatment Program and perform the duties as specified in this Ordinance. 21. Domestic Septage shall mean the liquid and solid material removed from food service establishments, or a septic tank, cesspool, portable toilet, or similar treatment works that receives only domestic Wastewater. 22. Domestic Wastewater shall mean the liquid and solid waterborne wastes derived from the ordinary living processes of humans of such character as to permit satisfactory disposal, without special treatment, into the public sewer or by means of a private disposal system. 23. Downstream Sampling or Monitoring shall mean sampling or monitoring usually conducted in a city or agency owned sewer for the purpose of determining the compliance status of an industrial or commercial Discharger. 24. Dry Weather Urban Runoff shall mean surface runoff flow that is generated from any drainage area within OCSD's service area during a period that does not fall within the definition of Wet Weather. It is surface runoff that contains Pollutants that interfere with or prohibit the recreational use and enjoyment of public beaches or cause an environmental risk or health hazard. 25. Enforcement Compliance Schedule Agreement (ECSA) shall mean OCSD-53-10 1392497.1 a mutual agreement between OCSD and Permittee requiring implementation of necessary Pretreatment practices and/or installation of equipment to ensure permit compliance. 26. Enforcement Response Plan shall mean a plan containing detailed procedures indicating how OCSD will investigate and respond to instances of Industrial User non-compliance in accordance with 40 CFR 403.8(f)(1) or other Users in accordance with OCSD non- compliance procedures. 27. Federal Categorical Pretreatment Standards shall mean any regulation containing Pollutant discharge limits promulgated by the U.S. EPA in accordance with Sections 307(b) and (c) of the Clean Water Act (33 U.S.C. 1317) which apply to a specific category of Industrial Users and which appear in 40 CFR Chapter I, Subchapter N, Parts 405-471. 28. Federal Regulations shall mean any applicable provision of the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, Title 33, United States Code, Section 1251 and following, and any regulation promulgated by the United States Environmental Protection Agency under Title 40 CFR implementing that act. 29. Flow Monitoring Facilities shall mean equipment and structures provided at a User's expense to measure, totalize, and/or record, the incoming water to the facility or the Wastewater discharged to the sewer. 30. General Manager shall mean the individual duly designated by the Board of Directors of OCSD to administer this Ordinance (see also Section 107). 31. Grab Sample shall mean a sample taken from a wastestream on a one-time basis without regard to the Flow in the wastestream and without consideration of time. 32. Hydrolvsate shall mean the resultant liquid from the hydrolysis of human remains. 33. Hydrolysis shall mean the process by which the body of a deceased person is chemically reduced to its essential organic components and bone fragments either before or after processing of the remains after removal from the hydrolysis chamber. 34. Indirect Discharge or Discharge shall mean the introduction of OCSD-53-11 1392497.1 Pollutants into a POTW from any non-domestic source regulated under Section 307(b), (c) or (d) of the Act [33 U.S.C. 1317(b)-(d)]. 35. Industrial User shall mean any User that discharges Industrial Wastewater. 36. Industrial Wastewater shall mean all liquid carried wastes and Wastewater of the community, excluding domestic Wastewater and domestic septage, and shall include all Wastewater from any producing, manufacturing, processing, agricultural, or other operation. 37. Inspector shall mean a person authorized by the General Manager to inspect any existing or proposed Wastewater generation, conveyance, processing, and disposal facilities. 38. Instantaneous Limit (see the Maximum Allowable Discharge Limit) 39. Interference shall mean any discharge which, alone or in conjunction with a discharge or discharges from other sources, either: a) inhibits or disrupts OCSD, its treatment processes or operations, or its biosolids processes, use, or disposal; or b) is a cause of a violation of any requirement of OCSD's NPDES permit or prevents lawful biosolids or treated effluent use or disposal. 40. LEL (Lower Explosive Limit) shall mean the minimum concentration of a combustible gas or vapor in air (usually expressed in percent by volume at sea level)which will ignite if an ignition source (sufficient ignition energy) is present. 41. Letter to Discharge shall mean a letter authorizing a User to discharge to the sewer without having to obtain a Special Purpose Discharge Permit. The discharge volume is generally limited to less than 1 million gallons. 42. Local Limit shall mean specific discharge limits developed pursuant to 40 CFR 403.5(c) and enforced by OCSD upon industrial or commercial facilities to implement the general and specific discharge prohibitions listed in 40 CFR 403.5(a)(1) and (b). 43. Local Sewering Agency shall mean any public agency or private corporation responsible for the collection and disposal of Wastewater to OCSD's Sewerage Facilities and duly authorized under the laws OCSD-53-12 1392497.1 of the State of California to construct and/or maintain public sewers. 44. Maior Violation shall mean a discharge over the permitted discharge limit, as determined by the result of a sample analysis, as follows: a) a discharge exceeding a Mass Emission Rate limit by 20% or more, or b) a discharge exceeding a concentration limit by 20% or more, or c) a pH discharge less than 5.0. 45. Mass Emission Rate shall mean the weight of material discharged to the sewer system during a given time interval. Unless otherwise specified, the mass emission rate shall mean pounds per day of a particular constituent or combination of constituents. 46. Maximum Allowable Discharge Limit shall mean the maximum quantity or concentration of a Pollutant allowed to be discharged at any period of time, determined from the analysis of any discrete or composited sample collected, independent of the industrial flow rate and the duration of the sampling event. 47. Medical Waste shall mean the discharge of isolation wastes, infectious agents, human blood and blood byproducts, pathological wastes, sharps, body parts, fomites, etiologic agents, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. 48. Milligrams Per Liter (mg/L or mg/I) shall mean a unit of the concentration of a constituent or compound that is found in water or Wastewater. It is 1 milligram of the constituent or compound in 1 liter of water or Wastewater. 49. Minor Violation shall mean a discharge over the permitted discharge limit as determined by the result of a sample analysis, as follows: a) a discharge exceeding a Mass Emission Rate limit by less than 20%, or b) a discharge exceeding a concentration limit by less than 20%, or. c) a pH discharge equal to or greater than 5.0, but less than 6.0, or OCSD-53-13 1392497.1 d) a pH discharge greater than 12.0. 50. National Pretreatment Standard, Pretreatment Standard. or Standard shall mean any regulation containing Pollutant discharge limits promulgated by the EPA in accordance with section 307 (b) and (c) of the Act, which applies to Industrial Users. This term includes prohibitive discharges and categorical standards established pursuant to 40 CFR 403.5 and 403.6. 51. North American Industry Classification System (NAICS) shall mean an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. 52. National Pollutant Discharge Elimination System Permit (NPDES Permit) shall mean the permit issued to control the discharge to surface waters of the United States as detailed in Section 402 of the Act (33 U.S.C. 1342). 53. New Source shall mean those sources that are new as defined by 40 CFR 403.3(m) as revised. 54. Non-compatible Pollutant shall mean any Pollutant which is not a Compatible Pollutant as defined herein. 55. OCSD shall mean Orange County Sanitation District. 56. OCSD's Sewerage Facilities or System shall mean any property belonging to OCSD used in the treatment, reclamation, reuse, transportation, or disposal of Wastewater, or biosolids. 57. Ordinance shall mean that document entitled "Wastewater Discharge Regulations" containing OCSD requirements, conditions, and limits for connecting and discharging to the sewer system, as may be amended and modified. 58. DH shall mean both acidity and alkalinity on a scale ranging from 0 to 14 where 7 represents neutrality, numbers less than 7 increasing acidity, and more than 7 increasing alkalinity, and is the logarithm of the reciprocal of the quantity of hydrogen ions in moles per liter of solution. 59. Pass Through shall mean discharge through OCSD's Sewerage Facilities to Waters of the U.S. which, alone or in conjunction with discharges from other sources, is a cause of a violation of OCSD's OCSD-53-14 1392497.1 NPDES permit. 60. Permittee shall mean a Person who has received a permit to discharge Wastewater into OCSD's Sewerage Facilities subject to the requirements and conditions established by OCSD. 61. Person shall mean any individual, partnership, copartnership, company, firm, association, corporation or public agency, joint stock company, trust, estate, or any other legal entity; or their legal representatives, responsible corporate officers, agents, assigns, including all federal, state, and local governmental entities. 62. Pesticides shall mean those compounds classified as such under federal or state law or regulations including, but not limited to DDT (dichlorodiphenyltrichloro-ethane, both isomers); DDE (dichlorodiphenyl-ethylene); DDD (dichlorodiphenyldichloroethane); aldrin, benzene hexachloride (alpha [a], beta [(3], and gamma [7] isomers); chlordane; endrin; endrin aldehyde; 2,3,7,8- tetrachlorodibenzo-p-dioxin (TCDD); toxaphene; a-endosulfan; (3- endosulfan; endosulfan sulfate; heptachlor; heptachlor epoxide; dieldrin; demeton; guthion; malathion; methoxychlor; mirex; and parathion. 63. Pollutant shall mean any constituent, compound, or characteristic of Wastewaters on which a discharge limit or requirement may be imposed either by OCSD or the regulatory bodies empowered to regulate OCSD. 64. Polychlorinated Biohenvls (PCB) shall mean those compounds classified as such under federal or state law including, but not limited to Aroclors 1016, 1221, 1228, 1232, 1242, 1248, 1254, 1260, and 1262. 65. Pretreatment shall mean the reduction of the amount of Pollutants, the elimination of Pollutants, or the alteration of the nature of Pollutant properties in Wastewater to a level authorized by OCSD prior to, or in lieu of, discharge of the Wastewater into OCSD's Sewerage System. The reduction or alteration can be obtained by physical, chemical or biological processes, by process changes, or by other means. 66. Pretreatment Facility shall mean any works or devices that the General Manager determines are appropriate to treat, restrict, or prevent the flow of Industrial Wastewater prior to discharge into a public sewer. OCSD-53-15 1392497.1 67. Pretreatment Reguirements shall mean any substantive or procedural requirement related to Pretreatment, other than a National Pretreatment Standard, imposed on an Industrial User. 68. Priority Pollutants shall mean the most recently adopted list of toxic Pollutants identified and listed by EPA as having the greatest environmental impact. They are classified as Non-compatible Pollutants and may require Pretreatment prior to discharge to prevent: a) Interference with OCSD's operation; or b) biosolids contamination; or c) Pass Through into receiving waters or into the atmosphere. 69. Public Agency shall mean the State of California and any city, county, district, other local authority or public body of or within this state. 70. Public Sewer shall mean a sewer owned and operated by OCSD, a city or other local sewering Public Agency which is tributary to OCSD's Sewerage Facilities. 71. Publicly Owned Treatment Works or POTW shall mean a treatment works as defined by section 212 of the Act (33 U.S.C. 1292), which is owned by a state or municipality (as defined by section 502(4) of the Act[33 U.S.C. 1362(4)]). This definition includes any devices and systems used in the storage, treatment, recycling and reclamation of municipal Sewage or industrial wastes of a liquid nature. It also includes sewers, pipes and other conveyances only if they convey Wastewater to a POTW Treatment Plant. The term also means the municipality, as defined in section 502(4) of the Act, which has jurisdiction over the Indirect Discharges to and the discharges from such a treatment works. 72. RCRA shall mean Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901, at seq.) and as amended. 73. Regulatory Agencies shall mean those agencies having jurisdiction over the operation of OCSD including, but not limited to, the following: a) United States Environmental Protection Agency, Region IX, San Francisco and Washington, DC (EPA). b) California State Water Resources Control Board (SWRCB). OCSD-53-16 1392497.1 c) California Regional Water Quality Control Board, Santa Ana Region (RWQCB). d) South Coast Air Quality Management District (SCAQMD). e) California Environmental Protection Agency (Cal-EPA). 74. Regulatory Compliance Schedule Agreement(RCSA)shall mean an agreement between OCSD and Permittee requiring the Permittee to implement Pretreatment practices and/or install equipment to ensure compliance with future revised categorical Pretreatment Standards or revised discharge limits. 75. Responsible Officer shall mean: a) As defined in 40 CFR 403.12(I), if the applicant or User is a corporation: (1) The president, secretary, treasurer, or a vice president of the corporation in charge of a principal business function, or any other person who performs similar policy- or decision-making functions for the corporation; or (2) The manager of one or more manufacturing, production, or operation facilities, provided the manager is authorized to make management decisions that govem the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for individual Wastewater discharge permit requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. b) As defined in 40 CFR 403.12(I), if the applicant or User is a partnership or sole proprietorship: a general partner or proprietor, respectively. c) If the applicant or User is a federal, state, or local OCSD-53-17 1392497.1 governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or the designee. d) An applicant or User not falling within one of the above categories must designate as the Responsible Officer an individual responsible for the overall operation of the facility. 76. Sample Point shall mean a location accepted by OCSD, from which Wastewater can be collected that is representative in content and consistency of the entire flow of Wastewater being sampled. 77. Sampling Facilities shall mean structure(s) provided at a User's expense for OCSD or User to measure and record Wastewater constituent mass, concentrations, collect a representative sample, or provide access to plug or terminate the discharge. 78. Sanitary Waste shall mean domestic Wastewater, human excrement, and gray water (e.g., water from household showers, dishwashing operations, etc.). 79. Septic Waste shall mean any Sewage from holding tanks such as vessels, chemical toilets, and septic tanks. 80. Service Area shall mean an area for which OCSD has agreed to either provide sewer service, or Wastewater treatment, or Wastewater disposal. 81. Sewage shall mean Wastewater. 82. Sewerage Facilities or System shall mean any and all facilities used for collecting, conveying, pumping, treating, and disposing of Wastewater or sludge or biosolids. 83. Significant Industrial User, except as provided in 40 CFR 403.3 (v)(2) and (v)(3), shall mean: (i)All Industrial Users subject to Categorical Pretreatment Standards under 40 CFR 403.6 and/or 40 CFR Chapter I, Subchapter N; and (ii) Any other Industrial User that, pursuant to 40 CFR 403.3(v)(1): discharges an average of 25,000 gallons per day or more of process Wastewater to the POTW (excluding sanitary, noncontact cooling and boiler blowdown Wastewater); contributes a process wastestream which makes up 5 percent or more of the average dry weather hydraulic or organic capacity of the POTW Treatment plant; or is designated as such by OCSD on the basis that the Industrial User has a reasonable potential for adversely affecting the POTW's operation or for violating OCSD-53-18 1392497.1 any Pretreatment Standard or requirement (in accordance with 40 CFR 403.8(f)(6)). 84. Significant Non-Compliance(SNC)shall mean the compliance status of an Industrial User who is in violation of one or more of the criteria as described in 40 CFR 403.8(f)(2)(viii). 85. Slug Load or Slug Discharge shall mean any discharge at a flow rate or concentration, which could cause a violation of the prohibited discharge standards in Section 201 of this Ordinance. A Slug Discharge is any Discharge of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch Discharge, which has a reasonable potential to cause Interference or Pass Through, or in any other way violate the POTW's regulations, Local Limits, or Permit conditions. 86. Sludge shall mean any solid, semi-solid or liquid decant, subnate or supernate from a manufacturing process, utility service, or Pretreatment Facility. 87. Special Assessment Credit shall mean the portion of the secured property tax bill that represents the regional special assessment sewer User fee as defined by OCSD. 88. Special Purpose Use shall mean any Discharger who is granted a Special Purpose Discharge Permit by OCSD to discharge unpolluted water, storm runoff, or groundwater to OCSD's Sewerage Facilities. 89. Spent Solutions shall mean any concentrated Industrial Wastewater or Wastewater that is not authorized to be discharged to a Sewage facility until appropriately treated. 90. Spill Containment shall mean a protection system installed by the Permittee to prohibit the discharge to the sewer of non-compatible Pollutants. 91. Standard Methods shall mean procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and Water Pollution Control Federation. 92. Suspended Solids or Total Suspended Solids (TSS) shall mean any insoluble material contained as a component of Wastewater and capable of separation from the liquid portion of said Wastewater by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. OCSD-53-19 1392497.1 93. Total Organic Carbon (TOC)shall mean the measure of total organic carbon in mg/L using heat, oxygen, ultraviolet irradiation, chemical oxidants, or combinations of these oxidants that convert organic carbon to carbon dioxide, rounded to two significant figures.As such, Total Toxic Organics is a subset of TOC. 94. Total Toxic Organics (TTO) shall mean the summation of all quantifiable values greater than 0.01 milligrams per liter for the organics regulated by the EPA or OCSD for a specific industrial category. 95. Unpolluted Water shall mean water to which no Pollutant has been added either intentionally or accidentally. 96. User shall mean any Person who discharges or causes a discharge of Wastewater directly or indirectly to a public sewer. User shall mean the same as Discharger. User includes Industrial Users as a type of User. 97. Waste-Tracking Form shall mean that receipt which is retained by the generator of hazardous wastes as required by the State of California or the United States Government pursuant to RCRA, or the California Hazardous Materials Act, or that receipt which is retained by the generator for recyclable wastes or liquid non- hazardous wastes as required by OCSD. The Waste-Tracking Form is typically known as a "waste manifest." 98. Wastehauler shall mean any Person carrying on or engaging in vehicular transport of brine, domestic septage (except the SAWPA Sewer Service Area in compliance with the 1996 OCSD/SAWPA Agreement), or Wastewater as part of, or incidental to, any business for the purpose of discharging directly or indirectly said Wastewater into OCSD's Sewerage System. 99. Wastewater shall mean the liquid and water-carried wastes of the community and all constituents thereof,whether treated or untreated, discharged into or permitted to enter a public sewer. 100. Wastewater Constituents and Characteristics shall mean the individual chemical, physical, bacteriological, and radiological parameters, including volume and flow rate and such other parameters that serve to define, classify or measure the quality and quantity of Wastewater. 101. Wet Weather shall mean any period of time during which measurable OCSD-53-20 1392497.1 rainfall occurs within OCSD's service area. This period shall include the time following the cessation of rainfall until OCSD determines that the wet weather event is no longer impacting OCSD's Sewerage System. 102. Working Day shall mean the period of time during which production or operation is taking place or any period during which discharge to the sewer is occurring. 103. Zero Discharge Certification shall mean a control mechanism that is issued by OCSD to ensure that specific facilities are not discharging a Pollutant(s) that may otherwise qualify the facility for a discharge permit. B. Words used in this Ordinance in the singular may include the plural and the plural the singular. Terms used in the masculine form shall include feminine, and terms used in the feminine form shall include masculine. 103. CONFIDENTIAL INFORMATION All user information and data on file with OCSD is presumed to be available to the public and governmental agencies without restriction unless the User specifically requests and is able to demonstrate to the satisfaction of OCSD that the release of such information would divulge information, processes or methods which would be detrimental to the User's competitive position. The demonstration of the need for confidentiality made by the Permittee must meet the burden necessary for withholding such information from the general public under applicable state and federal law. Any such claim must be made at the time of submittal of the information by marking the submittal "Confidential Business Information" on each page containing such information. Information which is demonstrated to be confidential shall not be transmitted to anyone other than a governmental agency without prior notification to the User. Wastewater constituents and characteristics and other effluent data, as defined in 40 CFR 2.302, shall not be recognized as confidential information and shall be available to the public. 104. SALE OR CHANGE OF OWNERSHIP A. Permits issued under this Ordinance are for a specific User, for a specific operation at a specific location or for a specific Wastehauler, and create no vested rights. Notwithstanding 104.C, the existing permit will be terminated upon sale or change of ownership. B. No permit may be transferred to allow a discharge to a public sewer from a point other than the location for which the permit was originally issued. OCSD-53-21 1392497.1 C. When the permittee is a legal entity (such as a corporation, partnership, limited liability company, or other legal entity), the permittee is deemed to have undergone a change of ownership when any other legal entity or person acquires direct or indirect ownership or control of more than fifty percent (50%) of the total ownership interest in the permittee. D. At least thirty (30) calendar days prior to the sale or change of ownership of any business operating under a permit issued by OCSD, the Permittee shall notify OCSD in writing of the proposed sale or change of ownership. The successor owner shall apply to OCSD for a new permit at least thirty (30) calendar days prior to the sale or change of ownership in accordance with the provisions of this Ordinance. A successor owner shall not discharge any Wastewater for which a permit is required by this Ordinance until a new permit is issued by OCSD to the successor owner. E. The written notification of intended sale or change of ownership shall be in a form approved by OCSD and shall include a written certification by the new owner or Authorized Representative, which shall include as a minimum: 1. the specific date on which the sale or change of ownership is to occur; and 2. an acknowledgement to comply fully with all the terms, conditions, limits, and provisions of this Ordinance and the new permit. 105. RESERVED 106. AUTHORITY A. OCSD is regulated by several agencies of the United States Government and the State of California, pursuant to the provisions of federal and state Law. Federal and state laws grant to OCSD the authority to regulate and/or prohibit, by the adoption of ordinances or resolutions, and by issuance of discharge certifications, or discharge permits, the discharge of any Wastewater, directly or indirectly, to OCSD's Sewerage Facilities. Said authority includes the right to establish limits, conditions, and prohibitions; to establish flow rates or prohibit flows discharged to OCSD's Sewerage Facilities; to require the development of compliance schedules for the installation of equipment systems and materials by all Users; and to take all actions necessary to enforce its authority including implementation of the Enforcement Response Plan, whether within or outside OCSD's boundaries, including those Users that are tributary to OCSD or within areas for which OCSD has contracted to provide sewerage services. B. Four jurisdictions contribute to and are under the purview of OCSD's OCSD-53-22 1392497.1 Pretreatment program: a section of the Irvine Ranch Water District; a section of the Sanitation Districts of Los Angeles County, which has several Dischargers at the county border; the South Orange County Wastewater Authority, and the Santa Ana Watershed Project Authority(SAWPA),whose discharge is delivered via the Santa Ana River Interceptor (SARI) and is comprised of mostly Wastewater brines. Nothing in this Ordinance is intended to preclude the discharge from SAWPA's SARI Service Area of discharges consisting solely of Wastewater brines that are compliant with all regulations and agreements. C. OCSD has the authority pursuant to California Health and Safety Code Sections 5471 and 5474 to prescribe, revise, and collect all fees and charges for services and facilities furnished by OCSD either within or without its territorial limits. 107. DELEGATION OF AUTHORITY Whenever any power is granted to or a duty is imposed upon the General Manager, the power may be exercised or the duty may be performed by any person so authorized by the General Manager. 108. SIGNATORY REQUIREMENTS Reports and permit applications required by this Ordinance shall contain the following certification statement: "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations" The statement shall be signed by a Responsible Officer (or his/her Authorized Representative) of the Industrial User as defined in 40 CFR 403.12(1), or as defined and designated by OCSD. 109. RECORD KEEPING REQUIREMENTS Any User subject to OCSD's reporting requirements shall maintain and make available for inspection and copying records of all information obtained pursuant to, or resulting from, any monitoring activities required by OCSD, including documentation associated with Best Management Practices, and any additional records or information obtained pursuant to monitoring activities undertaken by the User independent of such OCSD-53-23 1392497.1 requirements. Such records shall include information as described in 40 CFR 403.12(o)(1) and (2). These records shall remain available for a period of at least three (3) years. This period shall be automatically extended for the duration of any litigation concerning the User or OCSD, or where the User has been specifically notified of a longer retention period by the General Manager. OCSD-53-24 1392497.1 ARTICLE 2. GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE 201. PROHIBITED DISCHARGES These prohibitions apply to all Users of OCSD's Sewerage Facilities whether or not they are subject to Federal Categorical Pretreatment Standards or any other national, state, or local Pretreatment Standards or requirements. A. General Prohibitions. 1. No User shall introduce or cause to be introduced into OCSD's Sewerage Facilities any Pollutant,Wastewater, orflow which causes Pass Through or Interference or would cause OCSD to violate any federal, state, or local regulatory requirement. 2. No User shall increase the contribution of flow, Pollutants, or change the nature of Pollutants where such contribution or change does not meet applicable standards and requirements or where such contribution would cause OCSD to violate any federal, state, or local regulatory permit. 3. No Person shall transport Wastewater from one location or facility to another for the purpose of treating or discharging it directly or indirectly to OCSD's Sewerage Facilities without written permission from OCSD. 4. No Person shall deliver by vehicular transport, rail car, or dedicated pipeline, directly or indirectly to OCSD's Sewerage Facilities, Wastewater which contains any substance that is defined as a hazardous waste by the Regulatory Agencies. 5. No Person shall discharge or cause to be discharged any non- domestic water directly or indirectly to any OCSD Sewerage Facilities without prior authorization. B. Specific Prohibitions. No User shall introduce or cause to be introduced into the Sewerage Facilities, any Pollutant, substance, or Wastewater which: 1. Creates a fire or explosive hazard in the Sewerage Facilities including, but not limited to, wastestreams with a closed-cup flashpoint of less than 140 degrees Fahrenheit (60 degrees Centigrade) using any of the test methods specified in 40 CFR 261.21; or produces a gaseous mixture that is 10% or greater of the lower explosive limit (LEL). OCSD-53-25 1392497.1 2. Causes obstruction to the flow in the Sewerage Facilities resulting in interference or damage to the Sewerage Facilities. 3. Produces noxious or malodorous liquids, gases, solids, or other Wastewater which, either singly or by interaction with other Wastes, is sufficient to create a public nuisance or a hazard to life, or to prevent entry into the Sewerage Facilities for maintenance or repair. 4. Results in toxic gases, vapors, or fumes within the Sewerage Facilities in a quantity that may cause acute worker health and safety problems. 5. Contains any radioactive Wastes or isotopes except in compliance with applicable regulations from other governmental agencies empowered to regulate the use of radioactive materials. 6. Causes, alone or in conjunction with other sources, OCSD's treatment plant effluent to fail a toxicity test. 7. Causes OCSD's effluent or any other product of the treatment process, residues, biosolids, or scums, to be unsuitable for reclamation, reuse or disposal. Examples of items which may cause these conditions include, but are not limited, to food packaging, product containers, and non-dispersible products. 8. Causes discoloration or any other condition which affects the quality of OCSD's influent or effluent in such a manner that inhibits OCSD's ability to meet receiving water quality, biosolids quality, or air quality requirements established by Regulatory Agencies. 9. Creates excessive foaming in the Sewerage Facilities. 10. Violates any applicable Federal Categorical Pretreatment Standards, statute, regulation, or ordinance of any public agency or Regulatory Agency having jurisdiction over the operation of or discharge of Wastewater through the Sewerage Facilities. 11. Has a temperature higher than 140 degrees Fahrenheit, (60 degrees Centigrade), or which causes the temperature at the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade). 12. Has a pH less than 6.0 or greater than 12.0. 13. Causes corrosion, fouling, occlusion, or damage to the POTW beyond normal wear and tear. OCSD-53-26 1392497.1 14. Is released in a discharge at a flow rate and/or Pollutant concentration (including oxygen-demanding Pollutant (BOD, etc.)) which will cause interference with OCSD's Sewerage Facilities. 15. Is in excess of the permitted Mass Emission Rates established in accordance with Section 213 of this Ordinance, or the concentration limits set forth in Table 1, or the discharge permit. 16. Contains material which will readily settle or cause an obstruction to flow in the Sewerage Facilities resulting in interference, such as, but not limited to, sand, mud, glass, metal filings, diatomaceous earth, cat litter, asphalt, wood, bones, hair, fleshings, food packaging, product containers, and non-dispersible products. 17. Includes petroleum oil, non-biodegradable cutting oil, or products of mineral oil origin in amounts that will cause interference or Pass Through. 18. Causes the Orange County Water District Groundwater Replenishment System product water to exceed its TOC limit of 0.5 mg/L. 202. PROHIBITION ON DILUTION No User shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the User's permit or to establish an artificially high flow rate for permit Mass Emission Rates. 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER No Person shall discharge groundwater, storm water, surface runoff, or subsurface drainage directly or indirectly to OCSD's Sewerage Facilities except as provided herein. Pursuant to Section 304 or 305, et seq., OCSD may approve the discharge of such water only when no alternate method of disposal is reasonably available or to mitigate an environmental risk or health hazard. The discharge of such waters shall require a Dry Weather Urban Runoff Discharge Permit, a Special Purpose Discharge Permit, or written authorization from OCSD. If a permit is granted for the discharge of such water into a Public Sewer, the User shall pay all applicable charges and shall meet such other conditions as required by OCSD. 204. PROHIBITION ON NON-DOMESTIC SURFACE AND FLOOR DRAINS No Person shall discharge non-domestic water via a surface or floor drain directly or indirectly to OCSD's Sewerage Facilities except as provided herein. OCSD may approve OCSD-53-27 1392497.1 the discharge of such water at its sole discretion. The discharge of such waters shall require written authorization from OCSD and shall meet other such conditions as required by OCSD and this Ordinance. 205. PROHIBITION ON UNPOLLUTED WATER A. No Person shall discharge unpolluted water such as single pass cooling water directly or indirectly to OCSD's Sewerage Facilities except as provided herein. Pursuant to Section 305, at seq., OCSD may approve the discharge of such water only when no alternate method of disposal or reuse is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Special Purpose Discharge Permit from OCSD. C. If a permit is granted for the discharge of such water into a public sewer, the User shall pay all applicable charges and shall meet such other conditions as required by OCSD. 206. PROHIBITION ON SLUG DISCHARGES AND NOTIFICATION REQUIREMENT OCSD has the right to control slug discharges, if it is determined to be necessary. All Significant Industrial Users are required to notify OCSD immediately of any changes at their facilities that could affect the potential for a slug discharge. 207. PROHIBITION ON THE USE OF GRINDERS A. Waste from industrial or commercial grinders shall not be discharged into a Public Sewer, except wastes generated in packing or preparing food or food products. Such grinders must shred the waste to a degree that all particles will be carried freely under normal Flow conditions prevailing in the Public Sewer. B. Waste from Food Service Establishments operating a grinder is prohibited and shall not be discharged into a Public Sewer unless written authorization from the General Manager is obtained. 208. PROHIBITION ON POINT OF DISCHARGE No Person, except Local Sewering Agencies involved in maintenance functions of sanitary sewer facilities, shall discharge any Wastewater directly into a manhole or other opening in a sewer other than through an approved building sewer, unless approved by OCSD upon written application by the User and payment of the applicable fees and charges established therefor. OCSD-53-28 1392497.1 209. HAZARDOUS WASTE DISCHARGE NOTIFICATION REQUIREMENT Any User that discharges any hazardous waste into the Sewerage System shall notify OCSD immediately as required by 40 CFR 403.12(p). 210. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES TO OCSD'S SEWERAGE SYSTEM AND WASTEHAULER STATION A. No Wastehauler shall discharge to OCSD's Sewerage System, domestic septage or other approved waste or wastewater from a vacuum pumping truck or other liquid waste transport vehicle, without first obtaining both a valid Orange County Health Care Agency (OCHCA) registration or other control mechanism (where applicable), and a OCSD Wastehauler Permit as required by Section 306. Such Wastewaters shall be discharged only at locations designated by OCSD, and at such times as established by OCSD. OCSD may collect samples of each hauled load to ensure compliance with applicable standards. B. No Wastehauler shall discharge domestic septage orother approved Waste or Wastewater constituents in excess of Limits in Table 1. C. The discharge of industrial Wastewater by any Wastehauler is prohibited unless written permission of the General Manager has been obtained, the proper permits have been obtained, and the Industrial Wastewater meets federal and state limits applicable to the User or generator from which the Industrial Wastewater was obtained; or the Maximum Local Discharge Limits as specified in Table 1, whichever are more stringent. The discharge of hauled Industrial Wastewater is subject to all other requirements of this Ordinance. D. No Wastehauler shall discharge or deliver Wastewater to a Sewerage System that is tributary to OCSD's Sewerage Facilities that are from a source that is not within OCSD's service area unless prior authorization for such Wastewater is granted by the General Manager. E. No Wastehauler shall deliver directly to OCSD's Sewerage Facilities any Wastewater originating within OCSD's boundaries, from an industrial user subject to categorical Pretreatment Standards, and is greater than the categorical Pretreatment Standards, OCSD's Local Limits, or hazardous waste levels defined by RCRA (40 U.S.C. § 6901, at seq.) or 40 CFR 261. F. Notwithstanding E above, no Wastehauler shall deliver directly to OCSD's Sewerage Facilities any Wastewater originating within OCSD's boundaries, from a commercial or an industrial user not subject to categorical Pretreatment Standards, and is greater than OCSD Local Limits or hazardous Waste levels defined by RCRA or 40 CFR 261. OCSD-53-29 1392497.1 G. No Wastehauler shall add chemicals into Wastehauler trucks while on OCSD premises before discharging to the OCSD Wastehauler Station unless approved by OCSD. H. No Wastehauler shall discharge Wastewater to the OCSD Wastehauler Station, which contains mixed load types, i.e., domestic septage, brine, etc. I. Wastehaulers shall provide a Waste-Tracking Form for every load. This form shall include, at a minimum,the name and address of the Wastehauler, permit number, truck identification, names and addresses of all sources of Wastewater, and volume and characteristics of Wastewater. J. Discharge at the OCSD Wastehauler Station shall be through an appropriate hose and connection to the discharge port. Discharging Wastewater directly to the surface area of the Wastehauler Station is prohibited. K. Wastehauler hoses must be connected to the Wastehauler Station discharge port when being cleaned. L. Transferring loads between trucks or from portable toilets to trucks on OCSD property is prohibited unless permission from OCSD is obtained. M. Wastehaulers discharging Food Service Establishment grease waste into OCSD's Wastehauler Station must have a valid California Department of Food and Agriculture (CDFA) permit, if required by law. Wastehaulers must have all necessary permits, or copies thereof, in their possession at the time of discharge to the OCSD Wastehauler station and must present copies for inspection by OCSD personnel upon request 211. PROHIBITION ON MEDICAL WASTE A. No solid Wastes consisting of, but not limited to, hypodermic needles, syringes, instruments, utensils or other paper and plastic items from hospitals, clinics, offices of medical doctors, convalescent homes, medical laboratories or other medical facilities shall be discharged to the Sewerage System, unless prior written approval for such discharges has been granted by the General Manager. B. OCSD shall have the authority to require that any discharge of etiologic agents or infectious agents or substances to the Sewerage System be rendered inactive and noninfectious prior to discharge if the infectious Waste is deemed to pose a threat to the public health and safety, or can become an etiologic agent subsequent to discharge to the Sewerage OCSD-53-30 1392497.1 System, or will result in any violation of applicable Wastewater discharge requirements. C. No unused, unwanted, or expired pharmaceuticals (both over the counter and prescription-only medications) shall be disposed of in the Sewerage System, except in accordance with federal and state regulations, or in the absence of such regulations, using Best Management Practices. 212. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES Spent solutions, sludges, and materials of quantity or quality in violation of, or prohibited by this Ordinance, or any permit issued under this Ordinance must be disposed of in compliance with all regulatory requirements at a permitted point of disposal as defined by OCSD or Regulatory Agency with jurisdiction thereof. If the point of disposal is at an OCSD-permitted treatment facility, all Waste-Tracking Forms shall be retained for a minimum of three years by the facility and Wastehauler of said Wastewater and made available for copying for review upon request. 213. PROHIBITION ON HYDROLYSATE No Person shall discharge Hydrolysate,Wastes, or Wastewater resulting from Hydrolysis either directly or indirectly to the Sewerage System. 214. BEST MANAGEMENT PRACTICES OCSD may develop BMPs, by ordinance or individual wastewater discharge permits, to implement Local Limits and the requirements of Article 2. 215. MASS EMISSION RATE DETERMINATION A. Mass Emission Rates for non-compatible or Compatible Pollutants that are present or anticipated in the User's Wastewater discharge may be set for each User and made an applicable part of each User's permit. These rates shall be based on Table 1, Maximum Allowable Local Discharge Limits, or Federal Categorical Pretreatment Standards, and the User's average daily Wastewater discharge for the past three years, the most recent representative data, or other data acceptable to the General Manager. B. To verify the User's operating data, OCSD may require the User to submit an inventory of all Wastewater streams and/or records indicating production rates. C. OCSD may revise limits or Mass Emission Rates previously established in the discharger's permit at any time, based on: current or anticipated operating data of the discharger or OCSD; OCSD's ability to meet NPDES OCSD-53-31 1392497.1 limits; or changes in the requirements of Regulatory Agencies. D. The excess use of water to establish an artificially high flow rate for Mass Emission Rate determination is prohibited. OCSD-53-32 1392497.1 216. MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS OCSD's Maximum Allowable Local Discharge Limits are shown in Table 1 below. TABLE 1 MAXIMUM ALLOWABLE LOCAL NON-DOMESTIC DISCHARGE LIMITSM CONSTITUENT MILLIGRAMS/LITER 1,4-dioxanet3l 1.0 Ammonia Mass(3) Arsenic 2.0 Biochemical Oxygen Demand (BOD) Mass(3) Cadmium 1.0 Chromium (Total) 20.0 Copper 3.0 Cyanide(Total) 5.0 Lead 2.0 Mercury 0.03 Molybdenum 2.3 Nickel 10.0 Pesticides 0.01 Oil and Grease of Mineral or Petroleum Origin(4) 100.0 Polychlorinated Biphenyls(PCB) 0.01 Selenium 3.9 Silver 15.0 Sulfide (Dissolved) 0.5 Sulfide (Total) 5.0 Zinc 10.0 MAXIMUM ALLOWABLE DISCHARGE LIMITS FOR WASTEHAULERS DISCHARGING DOMESTIC SEPTAGE TO THE OCSD WASTEHAULER STATION CONSTITUENT MILLIGRAMS/LITER Cadmium 1.0 Chromium 35.0 Copper 25.0 Lead 10.0 Nickel 10.0 Zinc 50.0 M Users subject to Federal Categoncal Pretreatment Standards may be required to meet more shingent limits. In 1,4-dioxane is also known as"pEiorane." lai Boo and ammonia mass discharged will be tracked by OCSD and Users. It is the Permittee's responsibility to report the intended technically-based mass use to OCSD. M"Oil and Grease of Mineral or Petroleum Ongin"is also known as"Petroleum Oil and Grease as Silica Gel Treated n- Hexane Extractable Material"or"SGT-HEM Non-Polar Material." OCSD-53-33 1392497.1 ARTICLE 3. DISCHARGE PERMITS, CERTIFICATIONS, CHARGES, AND FEES 301. INTRODUCTION A. To provide the maximum public benefit from the use of OCSD's Sewerage Facilities, written authorization to use said facilities is required. This written authorization shall be in the form of a discharge permit or certification. No vested right shall be given by issuance of permits or certifications provided for in this Ordinance. OCSD reserves the right to establish, by Ordinance regulation, or in Wastewater Discharge Permits or certifications, more stringent standards or requirements on discharges to OCSD Sewerage Facilities if deemed by the General Manager appropriate to comply with this Ordinance and the requirements of Regulatory Agencies. B. The discharge permit shall be in one of five forms and is dependent upon the type of discharger, volume, and characteristics of discharge. The five discharge permits are: 1. Class I Wastewater Discharge Permit. 2. Class II Wastewater Discharge Permit. 3. Dry Weather Urban Runoff Discharge Permit. 4. Special Purpose Discharge Permit. 5. Wastehauler Discharge Permit. C. The Discharge Certification is issued to those Users that are discharging regulated Wastewater but are not otherwise required to obtain a discharge permit. D. The Zero Discharge Certification is issued to certify that a particular Pollutant or process is not used or discharged to OCSD, even though regulated process Wastewater may still be generated on-site and eventually wastehauled or otherwise eliminated. Such a facility does not require a discharge permit, but may require a Zero Discharge Certification. 302. CLASS I WASTEWATER DISCHARGE PERMITS A. No User requiring a Class I permit shall discharge Wastewater without obtaining a Class I Wastewater Discharge Permit. B. Class I Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Wastewater Discharge OCSD-53-34 1392497.1 Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. C. All Class I Users proposing to discharge directly or indirectly into the OCSD Sewerage Facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 302.1 and paying the applicable fees pursuant to Section 302.3. For purposes of this Ordinance, a Class I User is any User: 1. Subject to Federal Categorical Pretreatment Standards under 40 CFR 403.6 and 40 CFR chapter I, subchapter N; or 2. That discharges an average of 25,000 gallons per day or more of process Wastewater to the POTW (excluding sanitary, noncontact cooling and boiler blowdown Wastewater); or 3. Contributes a process wastestream which makes up 5 percent or more of the average dry weather hydraulic or organic capacity of the OCSD POTW; or 4. That is designated as such by OCSD on the basis that the Industrial User has a reasonable potential for adversely affecting the OCSD POTW's operation or for violating any Pretreatment Standard, Local Limit or requirement (in accordance with 40 CFR 403.5(f)(6)); or 5. That may cause Pass Through affecting OCSD's ability to comply with its NPDES Permit or other regulations and standards; or 6. That may cause Interference with OCSD's Sewerage Facilities. 302.1 Class I Wastewater Discharge Permit Application A. Any User required to obtain a Class I Wastewater Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application on the form prescribed by OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s), NAICS number(s), description of the manufacturing process or service activity. 2. (Whichever is applicable) name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of Wastewater to be discharged. OCSD-53-35 1392497.1 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by OCSD, including, but not limited to, those mentioned in Section 216, Mass Emission Rate Determination, and Table 1, Local Discharge Limits, of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the discharger and acceptable to OCSD. 8. Time and duration of discharge. 9. Number of employees per shift and hours of work per employee per day for each shift. 10. Waste minimization, best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste-Tracking Forms, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16. Any other information as specified. B. Applicants may be required to submit site plans,floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, Pretreatment equipment, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit information related to the applicant's business operations, processes, and potential discharge as may be requested by OCSD to properly evaluate the permit application. D. After evaluation of the data, OCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as OCSD-53-36 1392497.1 otherwise determined by the General Manager to be appropriate to protect OCSD's Sewerage Facilities. E. The permit application may be denied if the applicant fails to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. F. The permit application may be denied if the applicant has in the past demonstrated an inability to keep current with OCSD invoices for items such as Permit Fees, Non-Compliance Resampling Fees, Civil Penalties, Administrative Civil Penalties, Charges for Use, and Supplemental Capital Facilities Capacity Charges. 302.2 Class I Permit Conditions. and Limits A. A Class I permit shall contain all of the following conditions or limits: 1. Mass Emission Rates and concentration limits regulating non- compatible Pollutants, including BMPs based on applicable Pretreatment Standards. 2. Requirements to notify OCSD in writing prior to modification to processes or operations through which Industrial Wastewater may be produced. 3. Location of the User's on-site sampling point. 4. Requirements for submission of self-monitoring reports, technical reports, production data, discharge reports, compliance with Pretreatment Standards, BMP-based Pretreatment Standards and/or Local Limits, and/or Waste-Tracking Forms. 5. Requirements for maintaining, fora minimum of three (3)years, plant records relating to Wastewater discharge, and Waste-Tracking Forms as specified by OCSD. 6. Requirements to submit copies of tax and water bills. B. A Class I permit may contain any of the following conditions and/or limits: 1. Requirements for the User to construct and maintain, at his own expense, appropriate Pretreatment equipment, pH control, Flow Monitoring Facilities, and sampling facilities. OCSD-53-37 1392497.1 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Requirements to self-monitor. 4. Assumed values for BOD and suspended solids characteristics that typify the Discharger's effluent for determination of the charge for use. 5. Other terms and conditions which may be appropriate to ensure compliance with this Ordinance or determined by the General Manager to be appropriate to protect OCSD's Sewerage System. 302.3 Class I Permit Fee A. The Class I permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 623.(E)of this Ordinance. 302.4 Class I Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. New source indirect Dischargers shall be required to install and start up any OCSD-53-38 1392497.1 necessary pollution control equipment before beginning discharge, and comply with applicable Federal Categorical Pretreatment Standards not to exceed thirty (30) days after the commencement of discharge. C. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. D. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 302.5 Class I Permit Duration and Renewal Class I permits shall normally be issued for a period not to exceed four(4)years. At least forty-five (45) days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 302.6 Class I Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of Sewage in OCSD's Sewerage Facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing Wastewater collection, treatment, and disposal. B. A Discharger who is issued a Class I Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the unit charge rates adopted by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by OCSD. OCSD shall compute the charge for use based upon actual use for the preceding fiscal year on an annual reconciliation statement. C. The charge for use is payable within forty-five (45) days of invoicing by OCSD. A special assessment credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. D. In order for OCSD to determine actual annual water use, the User shall OCSD-53-39 1392497.1 provide to OCSD copies of its water bills. If these water bill copies are not received by August 15th of each year for the 12-month period ended closest to June 30, OCSD will endeavor to obtain the water use data. Data obtained by OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when OCSD obtains water use data. OCSD's Board of Directors shall adopt the amount of the fee. E. The charge for use shall be computed by the following formula: Charge for Use = VoV + BoB + SoS —Special Assessment Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo, Bo, So = Unit Charge rates established and adopted by Ordinance of OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below: F. The Unit Charge rates in the charge-for-use formula shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the Sewerage System shall be levied at a rate to be determined from time to time by the Board of Directors. This Charge shall be allocated among the three Wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of state and federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 2. A Capital Facilities Replacement Service component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of OCSD-53-40 1392497.1 Directors. This charge shall be allocated among Wastewater charge parameters of flow, biochemical oxygen demand, and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand, and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 3. The Unit Charge rates for each respective Wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for Vo, and in dollars per thousand pounds for Bo and So. G. Other measurements of the organic content of the Wastewater of a Discharger, such as COD or TOC, may be used instead of BOD. However, the Discharger must establish to the General Manager's satisfaction a relationship between the BOD of the Wastewater and the parameter of measure. This relationship shall be used by OCSD in determining the charge for use. When Wastewater from sanitary facilities is discharged separately from the other Wastewater of a Discharger, the charge for use for discharging the Wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic Wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full time on a daily basis. This may be determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects normal employment fluctuations. 303. CLASS II WASTEWATER DISCHARGE PERMITS A. No User requiring a Class II permit shall discharge Wastewater without obtaining a Wastewater Discharge Permit. B. Class II Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use and fees established by OCSD. The conditions of Wastewater Discharge Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. OCSD-53-41 1392497.1 C. All Class II Users proposing to discharge directly or indirectly into the OCSD's Sewerage Facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 303.1 and paying the applicable fees pursuant to Section 303.3. For purposes of this Ordinance, a Class II User is any User: 1. Whose charge for use is greater than the special assessment"OCSD Sewer User Fee'included on the County of Orange secured property tax bill exclusive of debt service; and 2. Discharging Wastewater other than sanitary; and 3. Not otherwise required to obtain a Class I permit. 303.1 Class II Wastewater Discharge Permit Application A. Any User required to obtain a Class 11 Wastewater Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application on the form prescribed by OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s)and NAICS number(s); description of the manufacturing process or service activity. 2. Name and address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of Wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by OCSD, including, but not limited to, those mentioned in Section 216, Mass Emission Rate Determination, and Table 1, Local Discharge Limits of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the Discharger and acceptable to OCSD. OCSD-53-42 1392497.1 8. Time and duration of discharge. 9. Number of employees and average hours of work per employee per day. 10. Production records, if applicable. 11. Waste-Tracking Forms, if applicable. 12. Landscaped area in square feet, if applicable. 13. Tons of cooling tower capacity, if applicable. 14. EPA Hazardous Waste Generator Number, if applicable. 15. Any other information as specified. B. Applicants may be required to submit site plans,floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, Pretreatment systems, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit other information related to the applicant's business operations, processes, and potential discharge as may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, OCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the OCSD system. E. The permit application may be denied if the applicant fails to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 303.2 Class II Permit Conditions and Limits A. A Class II permit shall contain all of the following conditions and/or limits: 1. Applicable Mass Emission Rates and concentration limits regulating non-compatible Pollutants. 2. Requirements to notify OCSD in writing prior to modification to processes or operations through which Industrial Wastewater may OCSD-53-43 1392497.1 be produced. 3. Location of the User's on-site sample point. 4. Requirements for submission of technical reports, production data, discharge reports, and/or Waste-Tracking Forms. 5. Requirements to submit copies of tax and water bills. B. A Class II permit may contain any of the following conditions and/or limits: 1. Requirements for the User to construct and maintain, at his own expense, appropriate Pretreatment equipment, pH control, Flow monitoring and/or sampling facilities. 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Assumed values for BOD and suspended solids characteristics that typify the Discharger's effluent for determination of the charge for use. 4. Requirements to self-monitor. 5. Requirements for maintaining, for a minimum of three years, plant records relating to Wastewater discharge, and Waste-Tracking Forms as specified by OCSD. 6. Other provisions which may be appropriate to ensure compliance with this Ordinance. 7. Other terms and conditions determined by the General Manager to be appropriate to protect OCSD's Sewerage System. 303.3 Class II Permit Fee A. The Class II permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of the permit fee must be received by OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 623.(E)of this Ordinance. OCSD-53-44 1392497.1 303.4 Class II Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. The Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 303.5 Class II Permit Duration and Renewal Class II permits shall normally be issued for a period not to exceed five (5)years. At least forty-five (45) days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 303.6 Class II Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of Sewage in OCSD's Sewerage Facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing Wastewater collection, treatment, and disposal. B. A Discharger who is issued a Class II Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance OCSD-53-45 1392497.1 with the formula contained herein and the Unit Charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by OCSD. Annually, OCSD shall compute the charge for use based upon actual use for the preceding fiscal year on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by OCSD. A special assessment credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. C. In order for OCSD to determine actual annual water use, the User shall provide to OCSD copies of its water bills. If these water bill copies are not received by August 15th of each year for the 12-month period ended closest to June 30, OCSD will endeavor to obtain the water use data. Data obtained by OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when water use data is obtained by OCSD. The amount of the fee shall be adopted by the OCSD Board of Directors. D. The charge for use shall be computed by the following formula: Charge for Use = VoV + BoB + SoS —Special Assessment Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo, Bo, So = Unit Charge rates adopted annually by Ordinance of OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph E below. E. The unit charge rates in the charge for use formula shall be established annually and shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the Sewerage System shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three Wastewater charge parameters of flow, biochemical OCSD-53-46 1392497.1 oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of state and federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 2. A Capital Facilities Replacement component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three Wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 3. The unit charge rates for each respective Wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for Vo, and in dollars per thousand pounds for Bo and So. F. Other measurements of the organic content of the Wastewater of a Discharger, such as COD or TOC, may be used instead of BOD. However, the Discharger must establish to the General Manager's satisfaction a relationship between the BOD of the Wastewater and the other parameter of measure. This relationship shall be used by OCSD in determining the charge for use. When Wastewater from sanitary facilities is discharged separately from the other Wastewater of a Discharger, the charge for use for discharging the sanitary Wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic Wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full time on a daily basis. This may be OCSD-53-47 1392497.1 determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects normal employment fluctuations. 304. DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS A. No User shall discharge urban runoff directly to OCSD's Sewerage System without obtaining a Dry Weather Urban Runoff Discharge Permit. B. OCSD shall determine whether the dry weather urban runoff proposed to be discharged into OCSD's Sewerage System may cause a potential environmental risk and/or health hazard that cannot be economically or practically controlled by alternative disposal methods. C. Dry Weather Urban Runoff Discharge Permits shall be subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. D. All Users required to obtain a Dry Weather Urban Runoff Discharge Permit proposing to discharge directly or indirectly into OCSD's Sewerage Facilities shall file an application pursuant to Section 304.1 and pay the applicable fees pursuant to Sections 304.3 and 304.6. 304.1 Dry Weather Urban Runoff Discharge Permit Application A. An applicant shall contact OCSD prior to any construction of facilities and discharge of dry weather urban runoff into the Sewerage System to determine if the discharge of dry weather urban runoff to the OCSD's Sewerage Facilities is feasible. B. Applicants shall complete and file with OCSD, prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by applicable fees, design plans, a detailed analysis of other disposal alternatives, or other data as needed by OCSD for review. The applicant shall provide justification that disposal alternatives for the dry weather urban runoff are not economically or practically feasible in lieu of sewer discharge. C. In addition to the discharge permit, OCSD may require that the permit applicant enter into an agreement setting forth the terms under which the dry weather urban runoff discharge is authorized. D. Applicants shall provide adequate Pretreatment and/or Best Management Practices included within the applicants' plans to ensure that the applicable discharge limits shall be met. OCSD-53-48 1392497.1 304.2 Dry Weather Urban Runoff Discharge Permit Condition and Limits The issuance of a Dry Weather Urban Runoff Discharge Permit may contain any the following conditions or limits: A. Mass Emission Rates and concentration limits regulating non-compatible Pollutants. B. Requirements for the User to construct and maintain, at the User's expense, appropriate Pretreatment equipment, Flow Monitoring Facilities, and devices to prevent storm water discharge into OCSD's Sewerage System during a wet weather event (rain event). C. Requirements for the User to provide OCSD with its operations and maintenance plan, best management practices, and pollution prevention strategies designed to minimize or eliminate dry weather urban runoff Pollutants. D. Limits on rate and time of discharge or requirements for flow regulation and equalization prior to discharge to the Sewerage System. E. Requirements to self-monitor the discharge to the Sewerage System. F. The General Manager may impose additional requirements as may be appropriate to reduce the burden on OCSD's Sewerage Facilities. G. Prohibitions on the discharge, which may cause OCSD's effluent, biosolids, or any other product of its treatment process, to be unsuitable for reclamation, reuse, or disposal. 304.3 Dry Weather Urban Runoff Discharge Permit Fee The Dry Weather Urban Runoff Discharge Permit fee shall be paid by the applicant in an amount established in the applicable Ordinance adopted by OCSD's Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each Permittee shall also pay delinquent invoices in full prior to permit renewal. 304.4 Dry Weather Urban Runoff Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; OCSD-53-49 1392497.1 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies, which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested changes and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond accordingly. C. A Permittee shall be informed of any changes in the permit at least forty- five (45) days prior to the effective date change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 304.5 Dry Weather Urban Runoff Discharge Permit Duration and Renewal Dry Weather Urban Runoff Discharge Permit shall normally be issued for a period not to exceed five (5)years. At least forty-five (45)days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 304.6 Dry Weather Urban Runoff Discharge Permit Charge for Use A Discharger who is issued a Dry Weather Urban Runoff Discharge Permit under the provision of this Ordinance shall pay a charge for use in accordance with rates established by Ordinance adopted by OCSD's Board of Directors. 305. SPECIAL PURPOSE DISCHARGE PERMITS A. No User requiring a Special Purpose Discharge Permit shall discharge Wastewater without obtaining a Special Purpose Discharge Permit. Alternatively, at the discretion of the OCSD Division Head or Department Head, OCSD may issue a Letter to Discharge in lieu of a Special Purpose Discharge Permit. B. Special Purpose Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Special Purpose Discharge Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. C. All Special Purpose Discharge Permit Users proposing to discharge directly OCSD-53-50 1392497.1 or indirectly into OCSD's Sewerage Facilities shall obtain a Special Purpose Discharge Permit by filing an application pursuant to Section 305.1 and paying the applicable fees pursuant to Sections 305.3 and 305.6. This discharge permit may be granted when no alternative method of disposal is reasonably available, or to mitigate an environmental risk or health hazard. 305.1 Special Purpose Discharge Permit Application A. Applicants seeking a Special Purpose Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by the applicable fees, plumbing plans, a detailed analysis of the alternatives for water disposal, or other data as needed by OCSD for review. B. The permit application may be denied when the applicant has failed to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or that the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 305.2 Special Purpose Discharge Permit Conditions and Limits A. Discharge conditions and limits shall be no less stringent than Section 201(A), General Prohibitions; 201(B), Specific Prohibitions; Section 213, Mass Emission Rate Determination; and Table 1, Local Discharge Limits. B. Monitoring requirements for the discharge shall be for those non-compatible Pollutants known to exist in the discharge. At least one set of baseline analysis prior to or upon sewer discharge may be required for all constituents contained in the most current Environmental Protection Agency (EPA) "Priority Pollutant" list, excluding asbestos, as listed in Appendix A of 40 CFR Part 423, or as subsequently amended. C. OCSD may specify and make part of each Special Purpose Discharge Permit specific Pretreatment Requirements or other terms and conditions determined by the General Manager to be appropriate to protect OCSD's Sewerage Facilities, the Local Sewering Agency, to comply with Regulatory Agencies' requirements, to ensure compliance with this Ordinance, and to assess a charge for use. OCSD-53-51 1392497.1 305.3 Special Purpose Discharge Permit Fee The special purpose discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each Permittee shall also pay delinquent invoices in full prior to permit renewal. 305.4 Special Purpose Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. A Permittee shall be informed of any changes in the permit at least forty- five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 305.5 Special Purpose Discharge Permit Duration and Renewal Special purpose discharge permits shall normally be issued for a period not to exceed five (5) years, but may be renewed as determined by the General Manager. Users seeking permit renewal shall comply with all provisions of this Article 3. 305.6 Special Purpose Discharge Permit Charge for Use The General Manager shall establish a charge for use to cover all costs of OCSD for providing sewerage service and monitoring. A deposit determined by the General Manager to be sufficient to pay the estimated charges for use shall accompany the Special Purpose Discharge Permit application, and said deposit shall be applied to the charges for use. OCSD-53-52 1392497.1 306. WASTEHAULER DISCHARGE PERMIT A. Wastehauler Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Wastehauler Discharge Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. B. A Wastehauler proposing to discharge Waste and/or Wastewater into the OCSD Wastehauler Station shall obtain and keep current both a valid Orange County Health Care Agency registration (where applicable), and a OCSD Wastehauler Discharge Permit. 306.1 Wastehauler Discharge Permit Application A. No User or Wastehauler shall discharge waste and/or Wastewater without both a valid Orange County Health Care Agency registration (where applicable) and an OCSD Wastehauler Discharge Permit. B. Any User or Wastehauler required to obtain a Wastehauler Discharge Permit shall complete and file with OCSD prior to commencing discharge, an application in a form prescribed by OCSD. This application shall be accompanied by the applicable fees. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, telephone number, and description of the industries or clients using the applicant's services. 2. (Whichever is applicable) Name and address of any and all principals/owners/major shareholders of the company, Articles of Incorporation, most recent Report of the Secretary of State, and Business License. 3. Name and address of leaseholder of the vehicle or trailer, if applicable. 4. Number of trucks and trailers and the license numbers and tank hauling rapacity of each truck or trailer. 5. A copy of the applicant's valid Orange County Health Care Agency registration, where applicable. C. Wastehaulers discharging Food Service Establishment grease waste into OCSD's Wastehauler Station must have a valid California Department of Food and Agriculture (CDFA) permit, if required by law. OCSD-53-53 1392497.1 D. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. E. After evaluation of the data furnished, OCSD may issue a Wastehauler Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect OCSD's Sewerage System. 306.2 Wastehauler Discharge Permit Conditions and Limits The issuance of a Wastehauler permit may contain any of the following conditions or limits: A. Limits on discharge of heavy metals and other priority Pollutants. B. Requirements for maintaining and submitting Wastehauling records and Waste-Tracking Forms, and a valid copy of a current Orange County Health Care Agency registration (where applicable). C. Additional requirements as otherwise determined to be appropriate by the General Manager to protect OCSD's Sewerage System or as specified by other Regulatory Agencies. D. Other terms and conditions which may be applicable to ensure compliance with this Ordinance. 306.3 Wastehauler Discharge Permit Fee The Wastehauler discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. A Permittee shall also pay any delinquent invoices in full prior to permit renewal. 306.4 Wastehauler Identification Decal and Access Card Transfer A. The identification decal is non-transferable. B. If a gate access card is issued, it shall be issued to a specific permitted vehicle and is non-transferable unless previously authorized in writing by OCSD. 306.5 Wastehauler Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit maybe subject to modification and change in the sole determination by OCSD during the life of the permit OCSD-53-54 1392497.1 based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limits, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 306.6 Wastehauler Discharge Permit Duration and Renewal Wastehauler Discharge Permits shall be issued for a period not to exceed three(3)years. The Wastehauler Discharge Permit is contingent upon the Permittee maintaining a valid Orange County Health Care Agency Permit registration throughout the duration of the Wastehauler Discharge Permit. If at any time, the Permittee is determined to not have a valid OCHCA registration, the OCSD Wastehauler Discharge Permit will be immediately revoked. Upon expiration of the permit, the User and/or Wastehauler shall apply for renewal of the permit in accordance with the provisions of Article 3. 306.7 Wastehauler Discharge Permit Charge for Use A charge for use to cover all costs of OCSD for providing the Wastehauler Station service and monitoring shall be established by Ordinance of the Board of Directors. 307. DISCHARGE CERTIFICATIONS A. Discharge Certifications may be issued to those Users that are discharging regulated Wastewater but are not otherwise required to obtain a discharge permit. B. No User requiring a Discharge Certification, or a Zero Discharge Certification shall discharge non-domestic Wastewater to OCSD without obtaining certification. OCSD-53-55 1392497.1 C. Discharge Certifications shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of the Discharge Certifications shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. D. All Users subject to Discharge Certifications proposing to discharge directly or indirectly into the OCSD's Sewerage Facilities shall obtain a Discharge Certification by filing an application and paying all applicable fees thereto. E. A User required to obtain a Discharge Certification may be required, at OCSD's discretion, to submit a completed application, and OCSD will approve the certification or otherwise proceed as required by federal law. F. The Discharge Certification shall contain as a minimum: 1. BMPs to regulate the quality of Wastewater discharged; 2. Requirements to periodically certify that appropriate BMPs are being practiced or are no longer necessary; 3. Requirements to notify OCSD in writing prior to modification to processes or operations through which regulated Wastewater may be produced; 4. Notice that OCSD may inspect the facility as necessary to assess and assure compliance with all discharge requirements; and 5. Requirements to comply with Resource Conservation and Recovery Act (RCRA) and state hazardous waste regulations regarding the proper disposal of hazardous waste. G. A Zero Discharge Certification shall contain at a minimum: 1. A statement that no discharge of regulated Wastewater is permitted; 2. Requirements to notify OCSD of any changes in operation resulting in a potential for discharge; 3. Requirements to periodically certify that no discharge of regulated Wastewater has occurred; 4. Notice that OCSD may inspect the facility as necessary to assess and assure compliance with the "no discharge" requirement; and OCSD-53-56 1392497.1 5. Requirements to comply with Resource Conservation and Recovery Act (RCRA) and state hazardous waste regulations regarding the proper disposal of hazardous waste. 308. OUT OF DISTRICT PERMITS/DISCHARGERS A. Industrial Wastewater Discharge Permits for Dischargers located outside OCSD's boundaries but within the OCSD service area and tributary to OCSD's Sewerage Facilities, may be issued by a Local Sewering Agency after approval by OCSD. OCSD shall have the right of inspection and sampling of the User's discharge to determine compliance with Industrial Wastewater discharge regulations. Such inspection and sampling will be performed under a coordinated plan developed with the Local Sewering Agency. The more stringent of the industrial Wastewater discharge regulations and effluent limits of OCSD and the local agency shall apply to the Discharger. B. Pursuant to Article 6 herein, OCSD shall have the right to enforce the Federal Regulations,the provisions of this Ordinance, and permit conditions and limits applicable to any User located outside of OCSD's service area, but whose discharge is tributary to OCSD's Sewerage Facilities. C. The fees for use shall be determined by OCSD and set forth in a use agreement with the Local Sewering Agency. D. The requirements for a liquid wastehauler program may be established by a Local Sewering Agency after obtaining written permission from OCSD. 309. RESERVED 310. RESERVED OCSD-53-57 1392497.1 ARTICLE 4. FACILITIES REQUIREMENTS 401. DRAWING SUBMITTAL REQUIREMENTS Upon request by OCSD: A. Applicants or Users may be required to submit three copies of detailed facility plans. The submittal shall be in a form and content acceptable to OCSD for review of existing or proposed Pretreatment facilities, spill containment facilities, monitoring facilities, metering facilities, and operating procedures. The review of the plans and procedures shall in no way relieve the User of the responsibility of modifying the facilities or procedures in the future, as necessary to produce a discharge acceptable to OCSD, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. B. The drawing shall depict as a minimum the manufacturing process (Wastewater generating sources), spill containment, monitoring or metering facilities, and Pretreatment facilities. C. The applicant or User shall submit a schematic drawing of the Pretreatment facilities, piping and instrumentation diagram, and Wastewater characterization report. D. Users and applicants may also be required to submit for review site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, and appurtenances by size, location, and elevation for evaluation. E. OCSD may require the drawings be prepared by a California Registered Chemical, Mechanical, or Civil Engineer. F. Permittees shall be required to submit updated detailed facility plans. 402. PRETREATMENT FACILITIES A. All Users shall provide Wastewater treatment as necessary to comply with this ordinance and shall achieve compliance with all Categorical Pretreatment Standards, Table 1, Local Discharge Limits, and the prohibitions set out in Sections 201 (A) & (B) of this Ordinance within the time limitations specified by EPA, the state, or OCSD, whichever is more stringent. Any facilities necessary for compliance shall be provided, operated by a qualified operator, and maintained in proper operating condition at the User's expense. OCSD-53-58 1392497.1 B. All Users may also be required by OCSD to submit Wastewater analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation of the Pretreatment facilities and compliance with permit limits and this Ordinance. C. No User shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the User's Permit. 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS A. All Users shall provide spill containment for protection against discharge of prohibited Pollutants, materials or other Wastewaters regulated by this Ordinance. Such protection shall be designed to secure the discharges and to prevent them from entering into the Sewerage System in accordance with reasonable engineering standards. Such facilities shall be provided and maintained at the User's expense. B. The General Manager shall require any Significant Industrial User to develop and implement an accidental discharge/slug control plan. OCSD may evaluate whether each Industrial User needs such a plan. Any User required to develop and implement an accidental discharge/control slug plan shall submit a plan which addresses, at a minimum, the following: 1. Description of discharge practices, including non-routine batch discharges. 2. Description of stored chemicals. 3. Procedures for immediately notifying OCSD of any accidental of slug discharge. Such notification must also be given for any discharge which would violate any of the prohibited discharges in Article 2 of this Ordinance. 4. Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or equipment, measures for containing toxic organic Pollutants (including solvents), and measures and equipment for emergency response. OCSD-53-59 1392497.1 404. MONITORING/METERING FACILITIES All Wastewater samples must be representative of the User's discharge. Wastewater monitoring and flow measurement facilities shall be properly operated, kept clean, and maintained in good working order at all times. The failure of a User to keep its monitoring facility in good working order shall not be grounds for the User to claim that sample results are unrepresentative of its discharge. A. OCSD may require the User to construct and maintain in proper operating condition at the User's sole expense, flow monitoring, constituent monitoring and/or sampling facilities. B. Permittees may be required to install and maintain an appropriate effluent flow monitoring device. Calibration of such flow monitoring device shall be done annually or as specified in the Wastewater discharge permit. C. The monitoring or metering facilities may be required to include a security closure that can be locked with an OCSD provided hasp lock during sampling or upon termination of service. D. The location of the monitoring or metering facilities shall be subject to approval by OCSD. E. The User shall provide immediate, clear, safe and uninterrupted access to OCSD to the User's monitoring and metering facilities. F. For all industries permitted by OCSD, domestic Wastewaters shall be kept segregated from all Industrial Wastewaters until the Industrial Wastewaters have passed through any required Pretreatment system or device and the Permittee's sample point. 405. WASTE MINIMIZATION REQUIREMENTS A. As required by a User's permit, the User shall provide waste minimization plans to reduce or eliminate Pollutant discharge to the Sewerage System and conserve water. The User shall investigate product substitution, housekeeping practices, provide inventory control, implement employee education, and other steps as necessary to minimize Wastewater produced. B. Upon approval by OCSD, a User may certify that their facility does not discharge any type of Wastewater containing Pollutants that may directly or indirectly discharge into OCSD's Sewerage System as a form of Best Management Practice (BMP). OCSD-53-60 1392497.1 ARTICLE 5. MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS 501. MONITORING AND REPORTING CONDITIONS A. Monitoring for Annual Charge for Use The Wastewater constituents and characteristics of a Discharger needed for determining the annual charge for use shall be submitted in the form of self-monitoring reports by the User to OCSD, if requested. The frequency of analyses and reporting shall be set forth in the User's permit. The analyses of these constituents and characteristics shall be by a laboratory acceptable to OCSD, and at the sole expense of the Permittee. Analyses performed by OCSD's personnel may be used in the determination of the annual charge for use. B. Monitoring for Compliance with Permit Conditions or Reporting Reguirements OCSD may require reports for self-monitoring of Wastewater constituents and characteristics of the Discharger needed for determining compliance with any limit or requirements as specified in the User's permit, federal or state regulations, or this Ordinance. The federal Pretreatment regulations, including 40 CFR 403.12(g)-(h), contain requirements for collecting samples, such as requiring that sampling be representative of conditions occurring during the reporting period and that grab samples must be collected for certain parameters. These reports include: 1. Baseline Monitoring Reports. a) Within either one hundred eighty(180)days after the effective date of a categorical Pretreatment Standard, or the final administrative decision on a category determination under 40 CFR 403.6(a)(4), whichever is later, existing Industrial Users subject to categorical Pretreatment Standard(s) currently discharging to or scheduled to discharge to OCSD shall submit to the General Manager a report which contains the information listed in paragraph b), below. At least ninety (90) days prior to commencement of their discharge, New Sources, and sources that become Significant Industrial Users subsequent to the promulgation of an applicable categorical Standard, shall submit to the General Manager a report which contains the information listed in paragraph c), below. A New Source shall report the method of Pretreatment it intends to use to meet applicable categorical Pretreatment Standards. A New Source also shall give estimates of its OCSD-53-61 1392497.1 anticipated Flow and quantity of Pollutants to be discharged. b) Users described above shall submit the information set forth below. (1) All information required in Section 302.13 of this Ordinance, including requirements in 40 CFR 403.12(b)(1)-(7). (2) Measurement of Pollutants. a) The User shall provide the following information. 1) The categorical Pretreatment Standards applicable to each regulated process and any new categorically regulated processes for Existing Sources. 2) The results of sampling and analysis identifying the nature and concentration, and/or mass, where required by the Standard or by the General Manager, of regulated Pollutants in the discharge from each regulated process. 3) Instantaneous, Daily Maximum, and long-term average concentrations or mass, where required, shall be reported. 4) The sample shall be representative of daily operations and shall be analyzed in accordance with procedures set out in Section 501.2 of this Ordinance. Where the Standard requires compliance with a BMP or pollution prevention alternative, the User shall submit documentation as required by the General Manager or the applicable Standards to determine compliance with the Standard. 5) Sampling must be performed in accordance with procedures set out in Section 602 of this Ordinance. b) The User shall take a minimum of one representative sample to compile that data OCSD-53-62 1392497.1 necessary to comply with the requirements of this paragraph. c) Samples should be taken immediately downstream from Pretreatment facilities if such exist or immediately downstream from the regulated process if no Pretreatment exists. If other Wastewaters are mixed with the regulated Wastewater prior to Pretreatment the User should measure the flows and concentrations necessary to allow use of the Combined Wastestream Formula in 40 CFR 403.6(e) to evaluate compliance with the Pretreatment Standards. Where an alternate concentration or mass limit has been calculated in accordance with 40 CFR 403.6(e), this adjusted limit along with supporting data shall be submitted to OCSD; d) Sampling and analysis shall be performed in accordance with this Ordinance; e) The General Manager may allow the submission of a baseline report which utilizes only historical data so long as the data provides information sufficient to determine the need for industrial Pretreatment measures; f) The baseline report shall indicate the time, date and place of sampling and methods of analysis, and shall certify that such sampling and analysis is representative of normal work cycles and expected Pollutant discharges to OCSD. (3) Compliance Certification. A statement, reviewed by the User's Authorized Representative as defined in this Ordinance and certified by a qualified professional, indicating whether Pretreatment Standards are being met on a consistent basis, and, if not, whether additional operation and maintenance (O&M) and/or additional Pretreatment is required to meet the Pretreatment Standards and Requirements. (4) Compliance Schedule. If additional Pretreatment and/or O&M will be required to meet the Pretreatment Standards,the shortest schedule by which the User will OCSD-53-63 1392497.1 provide such additional Pretreatment and/or O&M must be provided. The completion date in this schedule shall not be later than the compliance date established forthe applicable Pretreatment Standard. A compliance schedule pursuant to this Section must meet the requirements set forth in this Ordinance. (5) Signature and Report Certification. All baseline monitoring reports must be certified in accordance with this Ordinance and signed by an Authorized Representative. 2. Compliance Schedule Progress Reports. The following conditions shall apply to the compliance schedule required by this Ordinance: a) The schedule shall contain progress increments in the form of dates for the commencement and completion of major events leading to the construction and operation of additional Pretreatment required for the User to meet the applicable Pretreatment Standards (such events include, but are not limited to, hiring an engineer, completing preliminary and final plans, executing contracts for major components, commencing and completing construction, and beginning and conducting routine operation); b) No increment referred to above shall exceed nine (9) months; c) The User shall submit a progress report to the General Manager no later than fourteen (14) days following each date in the schedule and the final date of compliance including, as a minimum, whether or not it complied with the increment of progress, the reason for any delay, and, if appropriate, the steps being taken by the User to return to the established schedule; and d) In no event shall more than nine (9) months elapse between such progress reports to the General Manager. 3. 90-Day Compliance Reports. Within ninety (90) days following the date for final compliance with applicable categorical Pretreatment Standards, or in the case of a OCSD-53-64 1392497.1 New Source following commencement of the introduction of Wastewater into OCSD, any User subject to such Pretreatment Standards and Pretreatment Requirements shall submit to the General Manager a report containing the information described in this Ordinance. For Users subject to equivalent mass or concentration limits, this report shall contain a reasonable measure of the User's long-term production rate. For all other Users subject to categorical Pretreatment Standards expressed in terms of allowable Pollutant discharge per unit of production (or other measure of operation), this report shall include the User's actual production during the appropriate sampling period. All compliance reports must be signed and certified in accordance with this Ordinance. All sampling will be done in conformance with Section 602. 4. Periodic Compliance Reports. a) Except as otherwise specified in this Ordinance, all Significant Industrial Users must, at a frequency determined by the General Manager, submit no less than twice per year on dates specified by OCSD reports indicating the nature, concentration of Pollutants in the discharge which are limited by Pretreatment Standards and the measured or estimated average and maximum daily flows for the reporting period. In cases where the Pretreatment Standard requires compliance with a Best Management Practice (BMP) or pollution prevention alternative, the User must submit documentation required by the General Manager or the Pretreatment Standard necessary to determine the compliance status of the User including documentation associated with Best Management Practices. b) OCSD will meet reporting requirements as specified by 40 CFR Part 3 (Cross-Media Electronic Reporting). Therefore, Users that send electronic (digital) documents to OCSD to satisfy the requirements of this Section must register for the system online and submit a signed Subscriber Agreement to OCSD for review and approval. 5. Notification of the Discharge of Hazardous Waste. a) Any User who commences the discharge of hazardous waste shall notify OCSD, the EPA Regional Waste Management Division Director, and state hazardous waste authorities, in writing, of any discharge into OCSD of a substance which, if otherwise disposed of, would be a hazardous waste under 40 OCSD-53-65 1392497.1 CFR Part 261. The User shall receive written approval from the OCSD to discharge hazardous waste. Such notification must include the name of the hazardous waste as set forth in 40 CFR Part 261, the EPA hazardous waste number, and the type of discharge (continuous, batch, or other). If the User discharges more than one hundred (100) kilograms of such waste per calendar month to OCSD, the notification also shall contain the following information to the extent such information is known and readily available to the User: an identification of the hazardous constituents contained in the wastes, an estimation of the mass and concentration of such constituents in the wastestream discharged during that calendar month, and an estimation of the mass of constituents in the wastestream expected to be discharged during the following twelve (12) months. All notifications must take place no later than one hundred and eighty (180) days after the discharge commences. Any notification under this paragraph need be submitted only once for each hazardous waste discharged. However, notifications of changed conditions must be submitted under subdivision 6 below. The notification requirement in this Section does not apply to Pollutants already reported by Users subject to categorical Pretreatment Standards under the self-monitoring requirements of this Ordinance. b) Dischargers are exempt from the requirements of paragraph (a), above, during a calendar month in which they discharge no more than fifteen (15) kilograms of hazardous wastes, unless the wastes are acute hazardous wastes as specified in 40 CFR 261.30(d) and 261.33(e). Discharge of more than fifteen (15) kilograms of non-acute hazardous wastes in a calendar month, or of any quantity of acute hazardous wastes as specified in 40 CFR 261.30(d) and 261.33(e), requires a one-time notification. Subsequent months during which the User discharges more than such quantities of any hazardous waste do not require additional notification. c) In the case of any new regulations under section 3001 of RCRA(42 U.S.C. §6921)identifying additional characteristics of hazardous waste or listing any additional substance as a hazardous waste, the User must notify the General Manager, the EPA Regional Waste Management Waste Division Director, and state hazardous waste authorities of the discharge of such substance within ninety (90) days of the effective date of such regulations. OCSD-53-66 1392497.1 d) In the case of any notification made under this Section, the User shall certify that it has a program in place to reduce the volume and toxicity of hazardous wastes generated to the degree it has determined to be economically practical. e) This provision does not create a right to discharge any substance not otherwise permitted to be discharged by this Ordinance, a permit issued thereunder, or any applicable federal or state law. 6. Reports of Changed Conditions Each User must notify the General Manager's designee in writing at least thirty (30) days prior to implementing any significant changes to the User's operations, systems, or processes. Significant changes include any modifications which may alter the nature, quality, or volume of its Wastewater, or which may alter the facility's production processes and/or treatment systems and methods. a) The General Manager may require the User to submit such information as may be deemed necessary to evaluate the changed condition, including the submission of a Wastewater discharge permit application under this Ordinance. b) The General Manager may issue a Wastewater discharge permit under this Ordinance or modify an existing Wastewater discharge permit under this ordinance in response to changed conditions or anticipated changed conditions. 7. Reports of Potential Problems a) In the case of any discharge, including, but not limited to, accidental discharges, discharges of a non-routine, episodic nature, a non-customary batch discharge, a Slug Discharge or Slug Load, that might cause potential problems for OCSD, the User shall follow the notification procedures under Notification of Spill or Slug Loading in Article 5. This notification shall also include the location of the discharge, type of Wastewater, concentration and volume, if known, and corrective actions taken by the User. b) Within five (5) days following such discharge, the User shall, unless waived by the General Manager, submit a detailed written report. This written notification shall include, but not be limited to, the date of the incident, the reasons for the discharge or spill, what steps were taken to immediately OCSD-53-67 1392497.1 correct the problem, and what steps are being taken to prevent the problem from recurring. c) Such notification shall not relieve the User of any expense, loss, damage, or other liability which might be incurred as a result of damage or loss to OCSD, natural resources, or any other damage to person or property; nor shall such notification relieve the User of any fees, fines, penalties, or other liability which may be imposed pursuant to this Ordinance or other applicable law. d) A notice shall be permanently posted on the User's bulletin board or other prominent place advising employees who to call in the event of a discharge described in paragraph a, above. Employers shall ensure that all employees, who could cause such a discharge to occur, are advised of the emergency notification procedure. e) Significant Industrial Users are required to notify the General Manager immediately of any changes at its facility affecting the potential for a Slug Discharge. 8. Reports from Unpermitted Users All Users not required to obtain a Wastewater discharge permit shall provide appropriate reports to the General Manager as the General Manager may require. 9. Notice of Violation/Repeat Sampling and Reporting If sampling performed by a User indicates a violation, the User must notify the General Manager within twenty-four (24) hours of becoming aware of the violation. The User shall also repeat the sampling and analysis and submit the results of the repeat analysis to the General Manager within thirty (30)days after becoming aware of the violation. Resampling by the User is not required if OCSD performs sampling at the User's facility at least once a month, or if OCSD performs sampling at the User's facility between the time when the initial sampling was conducted and the time when the User or OCSD receives the results of this sampling, or if OCSD has performed the sampling and analysis in lieu of the User. 10. Other reports as required by OCSD. a) Monitoring reports of the analyses of Wastewater constituents and characteristics shall be in a manner and form approved OCSD-53-68 1392497.1 by OCSD and shall be submitted upon request of OCSD. When applicable, the self-monitoring requirement and frequency of reporting may be set forth in the User's permit as directed by OCSD. The analyses of Wastewater constituents and characteristics and the preparation of the monitoring report shall be done at the sole expense of the User. b) Failure by the User to perform any required monitoring, or to submit monitoring reports required by OCSD constitutes a violation of this Ordinance, may result in determining whether the Permittee is in significant non-compliance, and be cause for OCSD to initiate all necessary tasks and analyses to determine the Wastewater constituents and characteristics for compliance with any limits and requirements specified in the User's permit or in this Ordinance. The User shall be responsible for any and all expenses of OCSD in undertaking such monitoring analyses and preparation of reports. 501.1 Inspection and Sampling Conditions A. OCSD may inspect and sample the Wastewater generating and disposal facilities of any User to ascertain whether the intent of this Ordinance is being met and the User is complying with all requirements. B. OCSD shall have the right to place on the User's property or other locations as determined by OCSD, such devices as are necessary to conduct sampling or metering operations. Other sampling locations may include downstream manholes, usually in the Sewerage System,for the purpose of determining the compliance status of an industrial or commercial Discharger. C. OCSD may require the User to install and maintain sample points in areas acceptable to OCSD outside the User's facility, within the reasonable control of the User or OCSD. OCSD may also require lockable sample boxes fully containing the sample points. The User shall grant OCSD access to the sample points and sample boxes in accordance with this Ordinance. D. In order for OCSD to determine the Wastewater characteristics of the Discharger for purposes of determining the annual use charge and for compliance with permit requirements, the User shall make available for inspection and copying by OCSD all notices, self-monitoring reports, Waste-Tracking Forms, and records including, but not limited to, those related to production, Wastewater generation, Wastewater disposal, and those required in the Pretreatment Requirements without restriction but OCSD-53-69 1392497.1 subject to the confidentiality provision set forth in Section 103 herein. All such records shall be kept by the User a minimum of three (3) years. E. If a Discharger falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method, the Discharger may be subject to imposition of penalties, permit suspension or permit revocation. 501.2 Analytical Requirements All Pollutant analyses, including sampling techniques, to be submitted as part of a Wastewater discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR 136 and amendments thereto, unless otherwise specified in an applicable categorical Pretreatment Standard. If 40 CFR 136 does not contain sampling or analytical techniques for the Pollutant in question, or where the EPA determines that the 40 CFR 136 sampling and analytical techniques are inappropriate for the Pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures, including EPA-approved procedures or procedures approved by the General Manager. 501.3 Right of Entry A. Persons or occupants of premises where Wastewater is created or discharged shall allow OCSD, or its representatives, reasonable access to all parts of the Wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the Discharger's facility is open, operating, or any other reasonable time. No Person shall interfere with, delay, resist or refuse entrance to authorized OCSD personnel attempting to inspect any facility involved directly or indirectly with a discharge of Wastewater to OCSD's Sewerage System. B. Where a User has security measures in place, the User shall make necessary arrangements so that personnel from OCSD shall be permitted to enter without delay for the purpose of performing their specific responsibilities. 501.4 Notification of Spill or Slug Loading A. In the event the Discharger is unable to comply with any permit condition due to a breakdown of equipment, accidents, or human error, or the Discharger has reasonable opportunity to know that a discharge will exceed the discharge provisions of the User's permit, Sections 201(A) & (B) or Table 1, Local Discharge Limits, the Discharger shall immediately notify OCSD by telephone. If the Wastewater or material discharged to the sewer has the potential to cause or result in a fire or explosion hazard, the Discharger shall immediately notify the local fire department and OCSD. Also see Reports of Potential Problems in this Article. OCSD-53-70 1392497.1 501.5 Bypass Prohibition: Notification of Bvoass A. Bypass of Industrial Wastewater to the Sewerage System is prohibited. OCSD may take enforcement action against the User, unless: 1. Bypass was unavoidable because it was done to prevent loss of life, personal injury, or severe property damage; 2. There were no feasible alternatives to the Bypass, such as the use of auxiliary treatment facilities, retention of untreated Wastes, elective slow-down or shut-down of production units or maintenance during periods of production downtime. This condition is not satisfied if adequate backup equipment could have been feasibly installed in the exercise of reasonable engineering judgment to prevent a Bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3. The Permittee submitted notices as required under Section 501.4(A). B. If a Permittee knows in advance of the need for a Bypass, it shall submit a written request to allow the Bypass to OCSD, if possible, at least ten (10) days before the date of the Bypass. C. OCSD may approve an anticipated Bypass at its sole discretion after considering its adverse effects, and OCSD determines that the conditions listed in Section 501.5(A)(1-3) are met. D. A Permittee shall provide telephone notification to OCSD of an unanticipated Bypass that exceeds its permitted discharge limits within four hours from the time the Permittee becomes aware of the Bypass. A written report shall also be provided within five (5) days of the time the Permittee becomes aware or could reasonably have been aware of the Bypass. The report shall contain a description of the Bypass and its cause; the duration of the Bypass, including exact dates and times, and, if the Bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent recurrence of the Bypass. Failure to comply with the oral notice or written report may be grounds for permit revocation. OCSD-53-71 1392497.1 ARTICLE 6. ENFORCEMENT 601. PURPOSE AND SCOPE A. The Board finds that in order for OCSD to comply with the laws, regulations, and rules imposed upon it by Regulatory Agencies and to ensure that OCSD's Sewerage Facilities and treatment processes are protected and are able to operate with the highest degree of efficiency, and to protect the public health and environment, specific enforcement provisions must be adopted to govern the discharges to OCSD's Sewerage System by Permittees or by facilities required to obtain Zero Discharge Certifications. Certain violations may result in civil or criminal penalties for violation of Pretreatment Standards and requirements, and any applicable compliance schedule. Such schedules may not extend the compliance date beyond applicable federal deadlines. B. To ensure that all interested parties are afforded due process of law and that non-compliance and violations are resolved as soon as possible, the general policy of OCSD is that: 1. Any determination relating to a Zero Discharge Certification, Probation Order, Enforcement Compliance Schedule Agreement (ECSA), or Regulatory Compliance Schedule Agreement (RCSA) will be made by the Division Head of the OCSD Pretreatment Program, with a right of appeal by the Permittee to the General Manager pursuant to the procedures set forth in Section 618. 2. Any permit suspension or revocation recommended by the Division Head responsible for the OCSD Pretreatment Program will be heard and a recommendation made to the General Manager by an OCSD Department Head or other person designated by the General Manager. 3. Actions and decisions by the Division Head or Department Head are made pursuant to a delegation of authority by the General Manager as authorized by Section 107 of this Ordinance. 4. The Board of Directors may adopt rules of procedure to establish the conduct of certain administrative proceedings. C. OCSD, at its discretion, may utilize any one, combination, or all enforcement remedies provided in this Article 6 in response to any permit or Ordinance violation. OCSD-53-72 1392497.1 602. DETERMINATION OF NON-COMPLIANCE WITH DISCHARGE LIMITS A. Sampling Procedures 1. Sampling of all Permittees' facilities, Wastewater and discharges shall be conducted in the time, place, manner, and frequency determined at the sole discretion of OCSD. 2. Non-compliance with Mass Emission Rate limits, concentration limits, permit discharge conditions, or any discharge provision of this Ordinance may be determined by an analysis of a grab or composite sample of the effluent of a User. Non-compliance with Mass Emission Rate limits shall be determined by an analysis of a composite sample of the User's effluent, except that a grab sample may be used to determine compliance with Mass Emission Rate limits when the discharge is from a closed (batch) treatment system in which there is no Wastewater flow into the system when the discharge is occurring, the volume of Wastewater contained in the batch system is known, the time interval of discharge is known, and the grab sample is homogeneous and representative of the discharge. 3. All Wastewater samples must be representative of the User's discharge. Any sample taken from a sample point is considered to be representative of the discharge to the public sewer. 4. Wastewater monitoring and flow measurement facilities shall be properly operated, kept clean, and maintained in good working order at all times. The failure of a User to keep its monitoring facility in good working order shall not be grounds for the User to claim that sample results are unrepresentative of its discharge. 5. If a User subject to the reporting requirement in this section monitors any regulated Pollutant at the appropriate sampling location more frequently than required by the General Manager, using the procedures prescribed in this Ordinance, the results of this monitoring shall be included in the report. 603. ENFORCEMENT PROCEDURES AND APPLICABLE FEES A. Self-Monitoring Requirements as a Result of Non-Compliance 1. If analysis of any sample obtained by OCSD or by a Permittee shows non-compliance with the applicable Wastewater discharge limits set forth in this Ordinance or in the Permittee's discharge permit, OCSD may impose self-monitoring requirements on the Permittee. OCSD-53-73 1392497.1 2. A Permittee shall perform required self-monitoring of constituents in a frequency, at the specific location, and in a manner directed by OCSD. 3. All analyses of self-monitoring samples shall be performed by an independent laboratory acceptable to OCSD and submitted to OCSD in the form and frequency determined by OCSD. 4. All self-monitoring costs shall be bome by the Permittee. 5. Nothing in this section shall be deemed to limit the authority of OCSD to impose self-monitoring as a permit condition. B. Purpose of Non-Compliance Resampling Fees The purpose of the non-compliance resampling fee is to compensate OCSD for costs of additional sampling, monitoring, laboratory analysis, treatment, disposal, and administrative processing incurred as a result of the non- compliance, and shall be in addition to and not in lieu of any penalties as may be assessed pursuant to Sections 616 and 617. C. Non-Compliance Resampling Fees for Composite Samples 1. Each violation of a Permittee's permit limit or condition is a violation of this Ordinance. a) If analysis of any composite sample of a Permittee's discharge obtained by OCSD shows a major violation by the Permittee of the Mass Emission Rates or concentration limits specified in the Permittee's discharge permit or in this Ordinance, then the Permittee shall pay non-compliance resampling fees to OCSD pursuant to fee schedules adopted by OCSD's Board of Directors. b) If analysis of any composite sample of a Permittee's discharge obtained by OCSD shows a minor violation by the Permittee of the Mass Emission Rates or concentration limits specified in the Permittee's discharge permit or in this Ordinance, then OCSD shall impose non-compliance resampling fees pursuant to fee schedules adopted by OCSD's Board of Directors. 2. The fees specified in subsection 603.C.1.a), C.1.b) and D herein shall be imposed for each date on which OCSD conducts sampling as a result of a violation by a Permittee. OCSD-53-74 1392497.1 D. Non-Compliance Resampling Fees for Grab Samples and Self-Monitoring Results 1. If analysis of any grab sample of a Permittee's discharge shows non- compliance with any concentration limits as set forth in the User's permit or in this Ordinance, OCSD may impose non-compliance resampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for resampling conducted by OCSD as a result of a violation by the Permittee. 2. If any self-monitoring analysis of a Permittee's discharge shows non- compliance with any concentration limits or Mass Emission Rates as set forth in the User's permit or in this Ordinance, OCSD may impose non-compliance resampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for sampling conducted by OCSD as a result of a violation by the Permittee. 603.1 Probation Order A. Grounds In the event the Division Head determines that a Permittee has violated any provision of this Ordinance, or the terms, conditions and limits of its discharge permit, or has not made payment of all amounts owed to OCSD for User charges, non-compliance resampling fees or any other fees, the General Manager may issue a Probation Order, whereby the Permittee must comply with all directives, conditions and requirements therein within the time prescribed. B. Provisions The issuance of a Probation Order may contain terms and conditions including, but not limited to, installation of Pretreatment equipment and facilities, requirements for self-monitoring, submittal of drawings or technical reports, operator certification, audit of Waste minimization practices, payment of fees, limits on rate and time of discharge, or other provisions to ensure compliance with this Ordinance. C. Probation Order- Expiration A Probation Order issued by the General Manager shall be in effect for a period not to exceed ninety (90) days. OCSD-53-75 1392497.1 603.2 Enforcement Compliance Schedule Agreement (ECSA) A. Grounds Upon determination that a Permittee is in non-compliance with the terms, conditions or limits specified in its permit or any provision of this Ordinance, and needs to construct and/or acquire and install equipment related to Pretreatment, the General Manager may require the Permittee to enter into an ECSA which will, upon the effective date of the ECSA, amend the Permittee's permit. The ECSA shall contain terms and conditions by which a Permittee must operate during its term and shall provide specific dates for achieving compliance with each term and condition for construction and/or acquisition and installation of required equipment related to Pretreatment. B. Provisions The issuance of an ECSA may contain terms and conditions including but not limited to requirements for self-monitoring, installation of Pretreatment equipment and facilities, submittal of drawings or reports, operator certification, audit of Waste minimization practices, payment of fees, limits on rate and time of discharge, deposit of performance guarantee, interim limits, or other provisions to ensure compliance with this Ordinance. C. ECSA- Payment of Amounts Owed OCSD shall not enter into an ECSA until such time as all amounts owed to OCSD, including User fees, non-compliance resampling fees, deposits, or other amounts due are paid in full, or an agreement for deferred payment secured by collateral or a third party, is approved by the General Manager. Failure to pay all amounts owed to OCSD shall be grounds for permit suspension or permit revocation as set forth in Section 605 and 606. D. ECSA- Permit Suspension/Revocation If compliance is not achieved in accordance with the terms and conditions of an ECSA during its term, the General Manager may issue an order suspending or revoking the discharge permit pursuant to Section 605 or 606 of this Ordinance. 604. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA) A. Grounds If at any time subsequent to the issuance of a Wastewater Discharge Permit to an Industrial User, Federal Categorical Pretreatment Standards are adopted or revised by the United States Environmental Protection Agency, OCSD-53-76 1392497.1 or in the event OCSD enacts revised or new discharge limits, the General Manager, upon determination that an Industrial User would not be in compliance with the adopted revised or new limits, may require the industrial User to enter into a RCSA with OCSD under terms and conditions that would provide for achieving compliance with all new standards by the industrial User on a specific date. The RCSA shall have a maximum term of two hundred-seventy (270) days. The General Manager may approve a longer term, upon a showing of good cause. B. Provisions The issuance of a RCSA may contain terms and conditions including but not limited to requirements for installation of Pretreatment equipment and facilities, submittal of drawings or reports, waste minimization practices or other provisions to ensure compliance with this Ordinance. C. RCSA - Non-Compliance Resampling Fee During the period a RCSA is in effect, any discharge by Permittee in violation of the RCSA will require payment of non-compliance resampling fees in accordance with this Article 6. 605. PERMIT SUSPENSION A. Grounds The General Manager may suspend any permit when it is determined that a Permittee: 1. Fails to comply with the terms and conditions of either an ECSA or RCSA. 2. Knowingly provides a false statement, representation, record, report, or other document to OCSD. 3. Refuses to provide records, reports, plans, or other documents required by OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 4. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 5. Fails to report significant changes in operations or Wastewater constituents and characteristics. 6. Violates a Probation Order. OCSD-53-77 1392497.1 7. Refuses reasonable access to the Permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to OCSD for User charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Violates any condition or limit of its discharge permit or any provision of OCSD's Ordinances or regulations. B. Notice When the General Manager has reason to believe that grounds exist for permit suspension, he/she shall give written notice thereof via personal delivery, mail with proof of delivery, or a similar method to the permittee setting forth a statement of the facts and grounds deemed to exist. C. Suspension Effective Immediately Any discharger notified of a permit suspension shall immediately cease and desist all direct and indirect discharges to the OCSD's sewerage system. In the event the discharger fails to voluntarily comply with the suspension order, the General Manager may take such steps as are reasonably necessary to prevent further discharges, including blocking or severing the discharger's connection to the sewer system. D. Suspension Hearing Any discharger whose permit is suspended may file a written request for a suspension hearing pursuant to this section. Such a request will not stay the suspension. In the event a hearing is requested, the General Manager or his/her designee shall, within fourteen (14) days after receiving the request, hold a hearing to determine whether the permit suspension should be confirmed or terminated. 1. At the suspension hearing, the Permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by OCSD's General Counsel. 2. The General Manager or the General Manager's designee shall render a decision on the suspension within seventy-two (72) hours following the conclusion of the suspension hearing. In the event the OCSD-53-78 1392497.1 General Manager or his/her designee fails to make a decision within seventy-two (72) hours, the suspension shall be stayed pending the decision. 3. The decision shall be made in writing and include a brief statement of facts found to be true and a determination of the issues presented, including a final decision and order regarding whether the suspension is upheld or terminated. 4. The written decision and order of the General Manager or his/her designee shall be sent via personal delivery, mail with proof of delivery, or a similar method to the Permittee or its legal counsel/representative at the Permittee's business address. E. Effect of Suspension Order 1. Upon issuance, an order of permit suspension issued by the General Manager shall be final in all respects. 2. The permittee shall immediately cease and desist its discharge of any Wastewater, directly or indirectly to OCSD's Sewerage System for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the Permittee. 3. Any owner and responsible management employee of the Permittee shall be bound by the order of suspension. F. Reinstatement or Revocation 1. The General Manager shall reinstate the suspended permit upon proof of satisfactory compliance with all discharge requirements of OCSD, including all additional permit requirements deemed necessary by the General Manager or his or her designee to prevent future violations by the per mittee 2. The General Manager may, in his or her sole discretion, seek to permanently revoke any suspended permit pursuant to the procedures outlined in Section 606 of this Ordinance. 606. PERMIT REVOCATION A. Grounds The General Manager may revoke any permit when it is determined that a Permittee: OCSD-53-79 1392497.1 1. Knowingly provides a false statement, representation, record, report, or other document to OCSD. 2. Refuses to provide records, reports, plans, or other documents required by OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 3. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to report significant changes in operations or Wastewater constituents and characteristics. 5. Fails to comply with the terms and conditions of an ECSA, permit suspension, or probation order. 6. Discharges effluent to OCSD's Sewerage System while its permit is suspended. 7. Refuses reasonable access to the Permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to OCSD for User charges, non-compliance resampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Causes interference with OCSD's collection, treatment, or disposal system. 10. Fails to submit oral notice or written report of a Bypass occurrence. 11. Violates any condition or limit of its discharge permit or any provision of OCSD's Ordinances or regulations. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for the revocation of a permit, he/she shall give written notice via personal delivery, mail with proof of delivery, or a similar method thereof to the Permittee setting forth a statement of the facts and grounds deemed to exist together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the hearing, the Permittee shall have an opportunity to respond to OCSD-53-80 1392497.1 the allegations set forth in the notice by presenting written or oral evidence. The revocation hearing shall be conducted in accordance with the procedures established by the General Manager and approved by OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Managerwithin thirty(30) calendar days setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 3. The General Manager shall make his/her determination and should he/she find that grounds exist for permanent revocation of the permit, he/she shall issue his/her decision and order in writing within twenty (20) calendar days of receiving the written report. The written decision and order of the General Manager shall be sent via personal delivery, mail with proof of delivery, or a similar method to the Permittee or its legal counsel/representative at the Permittee's business address. 4. In the event the General Manager determines to not revoke the permit, he/she may order other enforcement actions, including, but not limited to, a temporary suspension of the permit, under terms and conditions that he/she deems appropriate. C. Effect 1. Upon issuance, an order of permit revocation issued by the General Manager shall be final in all respects. 2. The Permittee shall immediately cease and desist its discharge of any Wastewater directly or indirectly to OCSD's Sewerage System. All costs for physical termination shall be paid by the Permittee. 3. Any owner or Authorized Representative of the Permittee shall be bound by the order of revocation. 4. Any future application for a permit at any location within OCSD by any Person subject to an order of revocation will be considered by OCSD after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 607. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS A Wastehauler's non-compliance with permit requirements shall be determined by an analysis of a sample of the discharge for any constituent or conditions specified in the OCSD-53-81 1392497.1 Wastehauler's discharge permit or this Ordinance. If the discharge of a Wastehauler is found by the analysis to be in excess of the concentration limits specified in the Wastehauler's discharge permit or in this Ordinance, the Wastehauler shall, after receiving a demand from OCSD, identify in writing, all sources of the discharge. OCSD reserves the right to sample and inspect any Wastehauler that delivers Wastewater to any facility which is tributary to OCSD's Sewerage Facilities. Even if it is established to the satisfaction of the General Manager that the origin of the discharge is domestic septage, or septic Waste, OCSD may still elect not to accept Wastewater from that particular source. If the discharge is Industrial Wastewater from an industrial source(s)and exceeds permit concentration limits or limits specified in this Ordinance, the following shall apply: A. First Violation 1. The Permittee shall pay a non-compliance processing or sampling fee pursuant to fee schedules adopted by the OCSD Board of Directors. 2. The Wastehauler permit for disposal privileges shall be suspended for five (5) days. B. Second Violation 1. The Permittee shall pay a non-compliance processing or sampling fee pursuant to fee schedules adopted by the OCSD Board of Directors. 2. The Wastehauler permit for disposal privileges shall be suspended for ten (10) days. 3. The Wastehauler permit may be revoked in accordance with Section 606. 608. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS A. Any User who discharges any Wastewater which causes or contributes to any obstruction, interference, damage, or any other impairment to OCSD's Sewerage Facilities or to the operation of those facilities shall be liable for all costs required to clean or repair the facilities together with expenses incurred by OCSD to resume normal operations. Such discharge shall be grounds for permit revocation. A service charge of twenty five percent (25%)of OCSD costs shall be added to the costs and charges to reimburse OCSD for miscellaneous overhead, including administrative personnel and OCSD-53-82 1392497.1 record keeping. The total amount shall be payable within forty-five (45) days of invoicing by OCSD. B. Any User who discharges a Wastewater which causes or contributes to OCSD violating its discharge requirements established by any Regulatory Agency incurring additional expenses or suffering losses or damage to the facilities, shall be liable for any costs or expenses incurred by OCSD, including regulatory fines, penalties, and assessments made by other agencies or a court. 609. INDUSTRIAL WASTEWATER PASS THROUGH Any User whose discharge results in a Pass Through event affecting OCSD or its Sewerage Facilities shall be liable for all costs associated with the event, including treatment costs, regulatory fines, penalties, assessments, and other indirect costs. The Discharger shall submit to OCSD plans to prevent future recurrences to the satisfaction of OCSD. 610. PUBLICATION OF VIOLATION Upon a determination in a permit suspension, permit revocation, or civil penalty proceedings that a User has discharged in violation of its permit or any provision under this Ordinance, OCSD may require that the User notify the public and/or other Users of the OCSD's Sewerage Facilities of such violation, of actions taken to correct such violation, and of any administrative or judicial orders or penalties imposed as a result of such violation. 611. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE In accordance with Federal Regulations, including 40 CFR 25 and 40 CFR 403.8(f), OCSD shall annually cause to be published the names of all Industrial Users in significant non-compliance. Upon a minimum of a thirty (30) day notification to the User, said publication shall be made in a newspaper(s) of general circulation that provides meaningful public notice within the jurisdiction(s) served by OCSD. 612. PUBLIC NUISANCE Discharge of Wastewater in any manner in violation of this Ordinance or of any order issued by the General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the General Manager. Any Person creating a public nuisance is guilty of a misdemeanor. 613. TERMINATION OF SERVICE A. OCSD, by order of the General Manager, may physically terminate sewerage service to any property as follows: OCSD-53-83 1392497.1 1. On a term of any order of emergency suspension or revocation of a permit; or 2. Upon the failure of a Person not holding a valid discharge permit to immediately cease discharge, whether direct or indirect, to OCSD's Sewerage Facilities; or 3. Upon the failure of a facility not holding a valid discharge permit or certification. B. All costs for physical termination shall be paid by the User as well as all costs for reinstating service. 614. EMERGENCY SUSPENSION ORDER A. OCSD may, by order of the General Manager, suspend sewerage service or Wastehauler discharge service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause interference to the OCSD's Sewerage Facilities,or may cause OCSD to violate any state or federal law or regulation. Any Discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all Industrial Wastewater to the Sewerage System. B. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) days following the issuance of such order,the General Manager shall hold a hearing to provide the User the opportunity to present information in opposition to the issuance of the Emergency Suspension Order. Such a hearing shall not stay the effect of the Emergency Suspension Order. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the OCSD General Counsel. The General Manager shall issue a written decision and order within two (2) business days following the hearing, which decision shall be sent via personal delivery, mail with proof of delivery, or a similar method to the User or its legal counsel/representative at that User's business address. The decision of the General Manager following the hearing shall be final in all respects. 615. INJUNCTION Whenever a Discharger of Wastewater is in violation of or has the reasonable potential to violate any provision of this Ordinance, permit condition, or any Federal Categorical Pretreatment Standards or Pretreatment Requirements as set forth in 40 CFR Section OCSD-53-84 1392497.1 403.5, at seq., fails to submit required reports, or refuses to allow OCSD entry to inspect or monitor the User's discharge, OCSD may petition the Superior Court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate to restrain the continued violation or to prevent threatened violations by the Discharger. 616. CIVIL PENALTIES A. Authority All Users of OCSD's Sewerage System and facilities are subject to enforcement actions administratively orjudicially by OCSD, U.S. EPA, State of California Regional Water Quality Control Board, or the County of Orange District Attorney. Said actions may be taken pursuant to the authority and provisions of several laws, including but not limited to: (1) Federal Water Pollution Control Act, commonly known as the Clean Water Act (33 U.S.C. Section 1251, et seq.); (2) California Porter-Cologne Water Quality Control Act (California Water Code Section 13000, at sec.); (3) California Hazardous Waste Control Law (California Health & Safety Code Sections 25100, et seq.); (4) Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901, et seq.); and (5) California Government Code= Sections 54739-54740. B. Recovery of Fines or Penalties In the event OCSD is subject to the payment of fines or penalties pursuant to the legal authority and actions of other Regulatory Agencies or enforcement agencies based on a violation of law or regulation or its permits, and said violation can be established by OCSD, as caused by the discharge of any User of OCSD's Sewerage System which is in violation of any provision of this Ordinance or the User's permit, OCSD shall be entitled to recover from the User all costs and expenses, including, but not limited to, the full amount of said fines or penalties to which OCSD has been subjected. C. Ordinance Pursuant to the authority of California Government Code Sections 54739 - 54740.6, any Person who violates any provision of this Ordinance; any permit condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251, et seq., any Person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of OCSD, upon order of the General Manager, shall OCSD-53-85 1392497.1 petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as OCSD may impose, assess, and recover pursuant to federal and/or state legislative authorization. D. Administrative Civil Penalties 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, OCSD may issue an administrative complaint to any Person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit, or certification requirement; or c) any suspension or revocation order. 2. The administrative complaint shall be served via personal delivery, mail with proof of delivery, or a similar method on the Person and shall inform the Person that a hearing will be conducted, and shall specify a hearing date within sixty (60) days. The administrative complaint will allege the act or failure to act that constitutes the violation of OCSD requirements, the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager's designee. The Person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the Person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by OCSD's General Counsel. 4. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager within thirty(30) calendar days setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 5. The General Manager shall make his/her determination and should he/she find that grounds exist for assessment of a civil penalty against the Person, he/she shall issue his/her decision and order in writing within twenty (20) calendar days of receiving the written report. OCSD-53-86 1392497.1 6. If, after the hearing or appeal, if any, it is found that the Person has violated reporting or discharge requirements, the General Manager may assess a civil penalty against that Person. In determining the amount of the civil penalty, the General Manager may take into consideration all relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the Person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish technical, monitoring reports, or any other required documents; b) In an amount which shall not exceed three thousand dollars ($3,000.00)for each day for failing or refusing to timely comply with any compliance schedules established by OCSD; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any Wastewater discharge limit, permit condition, or requirement issued, reissued, or adopted by OCSD; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by OCSD; 8. Any Person aggrieved by an order issued by the General Manager assessing administrative civil penalties may, within fifteen (15) days after the General Manager issues the order, file an appeal with the Governing Board. The evidence on appeal shall consist solely of the General Manager's order and the administrative record before the hearing officer. The Governing Board shall determine whether to uphold, modify, or reverse the General Manager's order. The decision of the Governing Board shall be set forth in writing and be sent by certified mail to the appellant. The decision of the Governing Board shall be final in all respects. If no appeal of the General Manager's decision is filed within fifteen (15)days of its issuance,the General Manager's order becomes final in all respects. OCSD-53-87 1392497.1 9. Copies of the administrative order shall be served on the party served with the administrative complaint, either by personal service or by registered mail to the Person at his business or residence address, and upon other persons who appeared at the hearing and requested a copy of the order. 10. Any Person aggrieved by a final decision issued by the Governing Board, may obtain review in the superior court, pursuant to Government Code Section 54740.6, by filing in the court a petition for writ of mandate within thirty (30) days following the service of a copy of the Governing Board decision. 11. Payment of any order setting administrative civil penalties shall be made within thirty(30)days of the date the order becomes final. The amount of any administrative civil penalties imposed which have remained delinquent for a period of sixty (60) days shall constitute a lien against the real property of the Discharger from which the discharge resulting in the imposition of the civil penalty originated. The lien shall have no effect until recorded with the county recorder. OCSD may record the lien for any unpaid administrative civil penalties on the ninety-first (91st) day following the date the order becomes final. 12. No administrative civil penalties shall be recoverable under Section 616.D for any violation for which OCSD has recovered civil penalties through a judicial proceeding filed pursuant to Government Code Section 54740. 617. CRIMINAL PENALTIES Any Person who violates any provision of this Ordinance is guilty of a misdemeanor,which upon conviction is punishable by a fine not to exceed $1,000.00, or imprisonment for not more than thirty (30) days, or both. Each violation and each day in which a violation occurs may constitute a new and separate violation of this Ordinance and shall be subject to the penalties contained herein. 618. APPEALS TO GENERAL MANAGER A. General Any User, permit applicant, or Permittee affected by any decision, action or determination made by the Division Head may file with the General Manager a written request for an appeal hearing. The request must be received by OCSD within fifteen (15) days of mailing of notice of the decision, action, or determination of OCSD to the appellant. The request for hearing shall set forth in detail all facts supporting the appellanfs OCSD-53-88 1392497.1 request. Filing of an appeal shall stay the proceedings and furtherance of the action being appealed B. Notice The General Manager shall, within fifteen (15)days of receiving the request for appeal, and pursuant to Section 107, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place via personal delivery, mail with proof of delivery, or a similar method. The hearing date shall not be more than thirty (30) days from the delivery date of such notice to the appellant unless a later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. Hearing At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the Division Head's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by OCSD's General Counsel. D. Written Determination After the conclusion of the hearing, the Department Head (or other designee) shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the Division Head's original decision, action or determination. The General Manager shall make his/her determination and shall issue his/her decision and order within thirty (30) calendar days of receiving the written report by the Department Head (or other designee). Upon issuance, the order of the General Manager shall be final in all respects. The written decision and order of the General Manager shall be sent via personal delivery, mail with proof of delivery, or a similar method to the appellant or its legal counsel/representative at the appellant's business address. 619. PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty-five (45) days after date of invoice. OCSD-53-89 1392497.1 B. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty-six (46) days after date of invoice, a basic penalty of ten percent(10%)of the base invoice amount, not to exceed a maximum of$1,000.00; and 2. A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90) days shall be cause for immediate suspension of the permit. D. Penalties charged under this Section shall not accrue to those invoices successfully appealed. E. Payment of disputed charges is still required by the due date during OCSD review of any appeal submitted by Permittees. 620. COLLECTION OF DELINQUENT ACCOUNTS Collection of delinquent accounts shall be in accordance with OCSD's policy resolution establishing procedures for collection of delinquent obligations owed to OCSD, as amended from time to time by the Board of Directors. Any such action for collection may include an application for an injunction to prevent repeated and recurring violations of this Ordinance. 621. APPEAL OF CHARGES AND FEES Except for non-compliance charges and penalties, any User, permit applicant, or Permittee affected by any decision, action, or determination by OCSD, relating to fiscal issues of OCSD in which the User, applicant, or Permittee is located, including but not limited to the imposition and collection of fees, such as capital facility capacity charges, sewer use charges, special purpose discharge use charges and Wastehauler fees, may request that OCSD reconsider imposition of such fees or charges. Following review of such a request, OCSD shall notify the User, permit applicant, or Permittee via personal delivery mail with proof of delivery, or a similar method of OCSD's decision on the reconsideration request. Any User, permit applicant, or Permittee adversely affected by OCSD's decision on the reconsideration request may file an appeal which shall be heard by the Board of Directors. The notice of appeal must be received by OCSD within thirty (30) days of the mailing of OCSD's decision on the reconsideration request. 622. RECOVERY OF COSTS INCURRED BY OCSD In the event any User, permit applicant, or pennittee fails to comply with any of the terms OCSD-53-90 1392497.1 and conditions of this Ordinance, a probationary order, an order of permit suspension or revocation, an ECSA, a RCSA, a certification, or a permit issued hereunder, OCSD shall be entitled to reasonable attorney's fees and costs which may be incurred in order to enforce any of said terms and conditions, with or without filing proceedings in court. 623. FINANCIAL SECURITY/AMENDMENTS TO PERMIT A. Compliance Deposit Permittees that have been subject to enforcement and/or collection proceedings may be required to deposit with OCSD an amount determined by the General Manager as necessary to guarantee payment to OCSD of all charges, fees, penalties, costs and expenses that may be incurred in the future, before permission is granted for further discharge to the sewer. B. Delinquent Accounts OCSD may require an amendment to the permit of any Permittee who fails to make payment in full of all fees and charges assessed by OCSD, including reconciliation amounts, delinquency penalties, and other costs or fees incurred by Permittee. C. Bankruptcy Every Permittee filing any legal action in any court of competent jurisdiction, including the United States Bankruptcy Court, for purposes of discharging its financial debts or obligations or seeking court ordered, protection from its creditors, shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. D. Permit Amendments OCSD shall review and examine Permittee's account to determine whether previously incurred fees and charges have been paid in accordance with time requirements prescribed by this Ordinance. OCSD may thereafter issue an amendment to the User's permit in accordance with the provisions of Article 3 and subsection E below. E. Security An amendment to a Wastewater discharge permit issued pursuant to subdivisions (B), (C)and (D)above, may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by OCSD and shall not be used OCSD-53-91 1392497.1 by OCSD to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. F. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit pursuant to subdivisions (B), (C) and (D), OCSD shall either return the security deposit posted by the Permittee or credit their account. 624. JUDICIAL REVIEW A. Purpose and Effect Pursuant to Section 1094.6 of the California Code of Civil Procedure, OCSD hereby enacts this part to limit to ninety (90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions As used in this Section, the following terms and words shall have the following meanings: 1. Decision shall mean and include adjudicatory administrative decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the General Manager, the final decision, all admitted exhibits, all rejected exhibits in the possession of OCSD or its offices or agents, all written evidence, and any other papers in the case. 3. Party shall mean a Person whose permit has been denied, suspended, or revoked. C. Time Limit for Judicial Review Judicial review of any decision of OCSD or its officer or agent may be made pursuant to Section 1094.5 of the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (90th) day following the date on which the decision becomes final. If there is no provision for OCSD-53-92 1392497.1 reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected. D. Preparation of the Record The complete record of the proceedings shall be prepared by the OCSD officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he/she has filed written request therefor. OCSD may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. Extension If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (30th)day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record. F. Notice In making a final decision, OCSD shall provide notice to the party that the time within which judicial review must be sought is governed by Section 1094.6 of the Code of Civil Procedure. G. Administrative Civil Penalties Notwithstanding the provisions in this Section, and pursuant to Government Code Section 54740.6, judicial review of an order of the General Manager imposing administrative civil penalties pursuant to Section 616.D may be made only if the petition for writ of mandate is filed not later than the thirtieth (30th) day following the day on which the order of the General Manager becomes final. OCSD-53-93 1392497.1 ARTICLE 7. SEWER SERVICE CHARGES —CAPITAL FACILITY CAPACITY CHARGES 701. SANITARY SEWER SERVICE CHARGE Every parcel of real property located within OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD's Sewerage System, shall pay a sanitary sewer service charge in an amount adopted by the Board of Directors by separate Ordinance. 702. CAPITAL FACILITIES CAPACITY CHARGE Every parcel of real property located within OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD's Sewerage System, shall pay a capital facilities capacity charge in an amount adopted by the Board of Directors by separate Ordinance. OCSD-53-94 1392497.1 ARTICLE 8. SEVERABILITY 801. SEVERABILITY If any provision of these Regulations or the application to any circumstances is held invalid, the remainder of the regulations or the application of such provision to other persons or other circumstances shall not be affected. 802. GENERAL APPLICATION The provisions of this Ordinance shall apply to all properties within OCSD 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. Section I: This Ordinance is enacted in order to preserve the public health and safety, and in order to continue the provision of sewer services by OCSD. The facts requiring the public health and safety to be preserved are that the regulation of the discharge of industrial and sanitary Sewage is regulated by federal and state law, and protection of individuals' health and the environment require that no discharges of untreated Sewage/Wastewater are allowed to occur that are not in accord with technical specifications and requirements. Section II: Effective Date. This Ordinance shall take effect July 1, 2019. Section III: Repeal. Ordinance No. OCSD48 is hereby repealed. Section IV: 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 the Board of Directors of the Orange County Sanitation District at a Regular Meeting held the 22nd day of May, 2019. David John Shawver Chair, Board of Directors Orange County Sanitation District OCSD-53-95 1392497.1 ATTEST: Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District Bradley R. Hogin General Counsel OCSD-53-96 1392497.1 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD48 was introduced for first reading at a regular meeting of said Board on the 24th day of April 2019, and passed and adopted at a regular meeting of said Board on the 22nd day of May 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 22nd day of May, 2019. Kelly A. Lore, MIMIC Clerk of the Board Orange County Sanitation District OCSD-53-97 1392497.1 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Forum& Comment Commenters Name Proposed Change Questions/Comments OCSD Response Date No. Representing Received AskTAC 01-01 Unknown industrial permittee Summary of what changed "What changes"were being proposed. Response provided by SAWPA: 02/21/2019 The Fact Sheet provided adequate background information to address the question asked by the industry. 01-02 Unknown industrial permittee Prohibition on Non-Domestic Background information regarding floor drains. Response provided by SAWPA: Surface and Floor Drains The Fact Sheet provided adequate background information to address the question asked by the industry. Agency 02-01 None. Prohibition on Hydrolysate None. None. Meeting 02-02 Katie Greenwood Prohibition on Non-Domestic Does this prohibition extend to rising groundwater that Yes. We have a special type of permit for groundwater. This 02/25/2019 Source Control Manager Surface and Floor Drains would previously had gone to the MS4 prior to new MS4 prohibition focuses mostly on runoff, but for groundwater dischargers, South Orange County Wastewater rules? [7:38] there is a prohibition in our Ordinance. Authority However,we can make accommodations. The discharger must notify OCSD and these types of cases will be handled by OCSD on a case-by-case basis. 02-03 None. Report of Changed None. None. Conditions 02-04 None. Enforcement None. None. 02-05 None. Sale or Change of Ownership None. None. 02-06 None. Streamlining Best None. None. Management Practices 02-07 None. Wastehauler Definitions None. None. 02-08 None. Wastehauler Program None. None. 02-09 None. Other Comments None. None. AskTAC 03-01 Craig Proctor Prohibition on Non-Domestic I wanted clarification in how that would impact SIUs/IUs that Please note the existing prohibitions on 1)dilution;and 2)surface 02/26/2019 IEUA Source Control/Environmental Surface and Floor Drains discharge to floor drains upstream of their treatment system. runoff and groundwater. Process areas with floor drains would need to Resources Supervisor be covered or sectioned off to prevent surface runoff and groundwater Inland Empire Utilities Agency from entering the sewer. [OCSD-48§202.and §203] 03-02 Craig Proctor Sale or Change of Ownership OCSD is requiring the new owner apply for a permit 30 It depends on the case. The Pretreatment Authority will handle every IEUA Source Control/Environmental calendar days in advance of ownership change. My question case appropriately. Resources Supervisor to OCSD is what do they do in the event the ownership Inland Empire Utilities Agency change is not made public to even on-site employees,and OCSD inspectors find out after the fact. As permits are not transferrable,do they require the industry to cease discharge until a new permit is issued or do they issue a temporary permit in the interim? 03-03 Craig Proctor Streamlining Best I was hoping for some clarification on why they are making OCSD-48 added BMP streamlining required changes identified by 2006, IEUA Source Control/Environmental Management Practice this change. They reference the 2013/14 audits yet their 2013 audits. Recommended changes are being added to also enhance Resources Supervisor most recent Ordinance update occurred after these audits. other programs,e.g., dental amalgam. Inland Empire Utilities Agency [RWQCB. Implementation of Streamlining the General Pretreatment Regulations for Existing and New Source of Pollution,June 15,2006.] [RWQCB. Response to 2013 EPA Pretreatment Compliance Inspection, October 30,2013.] 5/15/2019 Page 1 of 6 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Forum& Comment Commenters Name Proposed Change Questions/Comments OCSD Response Date No. Representing Received Industry 04-01 Mark Meredith Prohibition on Hydrolysate What is the definition of hydrolysate?[Recording @9 minutes Hydrolysate shall mean the resultant liquid from the hydrolysis of Meeting Andy Gump 15 seconds] human remains. 02/26/2019 Hydrolysis shall mean the process by which the body of a deceased person is chemically reduced to its essential organic components and bone fragments either before or after processing of the remains after removal from the hydrolysis chamber. Is this like byproduct from rendering or what we call No. I do not believe it is the same. Please refer to the definition interface? [Recording @11 minutes 20 seconds] previously provided relative to human remains,not animals. 04-02 Kaying Lee Prohibition on Non-Domestic Can you clarify what non-domestic water is? [Recording @13 It could be any type of water that is not coming from sinks, kitchens,or Water Quality and Compliance Supervisor Surface and Floor Drains minutes 15 seconds] restrooms.Could be process water,stormwater,groundwater so Mesa Water District anything that is non-domestic. To differentiate,OCSD-48 defines that domestic Wastewater shall mean the liquid and solid waterborne wastes derived from the ordinary living processes of humans of such character as to permit satisfactory disposal,without special treatment, into the public sewer or by means of a private disposal system. Anything that does not fit this definition is non-domestic. What is if it is from our water treatment facility?[Recording Treatment is a process and does not fit the definition of domestic @15 minutes 30 seconds] wastewater. 04-03 None. Report of Changed None. None. Conditions 04-04 None. Enforcement None. None. 04-05 None. Sale or Change of Ownership None. None. 04-06 None. Streamlining Best None. None. Management Practices 04-07 Sandra Rodriguez Wastehauler Definitions Say that there is a storage facility where RVs dump into a If the question is Type III Marine Waste that gets dumped into a OC Pumping holding tank.Would that be classified as Type III Marine storage tank, and then gets hauled and brought to OCSD,this waste? [Recording @20 minutes 29 seconds] prohibition would restrict this type of waste. OCSD has not seen this type of waste coming into the station in recent history,so it would not be an issue. There a couple of cases,e.g., RCMC in Brea has a holding tank RV waste would be sanitary waste and not Type II Marine Waste,so where RVs come and dump at their station and then we sanitary waste would still be acceptable. would pump it out and haul it to OCSD. [Recording @21 minutes 30 seconds] 04-08 None. Wastehauler Program None. None. 04-09 None. Other Comments None. None. AskTAC 05-01 Sandra Rodriguez Definitions Can you please clarify the following changes to Wastehauler 'Typically a holding tank where sewage is stored until it can be 03/25/2019 Orange County Pumping, Inc. Definitions: discharged shore-side or at sea (beyond three miles from shore)" Proposed: Domestic Septage(Eliminate Type III Marine httos://www.epa.eoy/vessels-marinas-and-ports/marine-sanitation- Sanitation Device) devices-msds 5/15/2019 Page 2 of 6 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Forum& Comment Commenters Name Proposed Change Questions/Comments OCSD Response Date No. Representing Received In reference to marine sanitation devices: 'Type III is a device that • Please define Type III Marine Sanitation Device for prevents the overboard discharge of treated or untreated sewage or proper clarity. any waste derived from sewage. This type of device is typically a holding tank and may include other types of technology including Proposed:Septic Waste (Eliminate Campers,Trailers) incineration, recirculation,and composting." https://www.dco.uscg.mil/Our-Organization/Assistant- Please,clarify sewage from campers and trailers will Commandant-for-Prevention-Policy-CG-5P/Commercial-Regulations- still be accepted as septic waste for disposal at standards-CG-SPS/Design-Engineering-Standards/Systems-Engineering- Orange County Sanitation District. Division/Mechanical-Engineering/msd/ Can you also confirm the date and time of the OCSD Board of [33 CFR 159.531 Directors meeting? For clarity,OCSD's intent was to prohibit the discharge from campers and trailers directly into OCSD's sewer system through the Wastehauler Station, i.e.,a camper or trailer-type vehicle that seeks to discharge at OCSD's Wastehauler Station will be denied access to the Wastehauler Station. The first reading of the Ordinance is scheduled to occur at the April 24, 2019 Board Meeting. The second reading of the Ordinance is scheduled to occur at the May 22,2019 Board Meeting. (for more information, please check httos://www.ocsd.com/about-us/board-of- d i rectors/boa rd-meetings) AskTAC 05-02 1 didn't realize that people were able to discharge their RV's Once again, RVs,campers,trailers,etc. are not allowed to discharge 04/18/2019 at the wastehauler station. On the contrary we have people directly to the Wastehauler station-the update language is to clarify call us from time to time that need their RV holding tanks this practice. In addition, licensed, registered,and permitted pumped and we also have RV rentals that have a dump wastehaulers are not allowed to discharge wastewater collected from station that would require service.So,for clarification individual liquid waste transport vehicles. purposes Licensed Wastehaulers are still allowed to discharge sewer from campers and trailers to the wastehauler station? AskTAC 05-03 Thank you for the information. I appreciate the clarification. Thank you for the information and suggestion. 04/22/2019 We will certainly adhere to the guidelines of not bringing waste from holding tanks of RV,Campers,or Trailers to the wastehauler station including holding tanks from facilities where wastewater is collected from RV's.Can I suggest this be clarified with the wastehaulers as these types of services are normally performed by Portable Toilet Companies?Since they service smaller volumes of collected wastewater,it is common practice to service sanitary holding tanks of RV's, Campers,and Trailers.Thank you for your efforts to get this accurately clarified 5/15/2019 Page 3 of 6 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Proposed Revisions to OCSD-48 Wastewater Discharge Ordinance - Agencies Meeting Sign-In Sheet Monday, February 25, 2019 Name Title Agency email Initials James Colston Director of Water Quality& Regulatory Irvine Ranch Water District coiston@irwd.com @irwd.com Jason Dadakis Executive Director,Water Quality& Orange CountyWater strict Technical Resources Di jdadakis@oud.tom Bryce Dragan Lead Source Control Inspector Orange County Sanitation District bdragan@ocsd.com $� Ted Gerber Engineering Supervisor Orange County Sanitation District tgerber@ocsd.com Lucas Gilbert Manager of Permitting and Pretreatment Santa Ana Watershed Project Authority Igilbert@sawpa.org Katie Greenwood Source Control Manager South Orange County WastewaterAuthority kgreenwood@socwa.com K (r Mark Kawamoto Engineering Supervisor Orange County Sanitation District kawamoto@ocsd.com �uZC Michael Plasencia Senior Pretreatment Program Specialist Santa Ana Watershed Project Authority mplasencia@sawpa.org Craig Proctor Pretreatment and Source Control Inland Empire Utilities Agency cproctor@Ieua.org Supervisor Roya Sohanaki Engineering Manager Orange County Sanitation District rohanaki@ocsd.com Christopher 5tacklin Engineer Orange County Sanitation District cstacklin@ocsd.com Linda Shadier Industrial Waste Section Head unrion Districts of Los Angeles Ishadler@Iacsd.org Frank Soto Inspector Irvine Ranch Water District fsoto@irwd.com Ken Tam Senior Associate Engineer Inland Empire Utilities Agency ktam@ieua.org Mike Zedek Engineer Orange County Sanitation District mzedek@ocsd.com 5/15/2019 Page 4 of 6 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Proposed Revisions to OCSD-48 Wastewater Discharge Ordinance - Industries Meeting Sign-In Sheet Tuesday, February 26,2019 No. Name Industry/Organization email and/or phone number 1 c%r,UsrOPy�/! ST�1GkGin� ocsP csT�ck�%J�DcjD, tayt7`�'93i''63 2 f4eli5ra Soriano OGSO (t71q)593 oc"sd g m s R4R 6%4WeZ O05p j,vNvrtz�Ocsd•Wrw 4 5 6 //�avk Kawaw��� oGSJ kauaw.. iat�e ocsd. u~1 7 QQwj^. Ec,c OGS DA 41A2OCS-D • Co ' 8 l4 f� r eot � 9 N. Cs+n+l�+¢ .•r re. OC w�1iw,.Ca.vi 10 vN�sry1-� f toh 11 e e n i i L@ piaZwo 12 �. F� Octa -F g.•Ea•Q oc :.i.�. 13 14 15 16 17 18 19 20 5/15/2019 Page 5 of 6 Responses to Questions and Comments about OCSD's Proposed Revised Ordinance No. OCSD-48 Received from AskTAC Hotline and Emails and Agency and Industry Meetings Proposed Revisions to OCSD-48 Wastewater Discharge Ordinance - Industries Meeting Sign-In Sheet Tuesday, February 26, 2019 No. Name Industry/Organization email and/or pWone number 1 �CLnG�rrti odn � z � ' ti a tXServlC ' Sa'' �sbq,l ,,� 2 —Lzt 3 ,7 p e d � ° RLLC- 5 J)A. Jjdy CN UIJC-) CS Ft�t N�anw�niwi' Cc: , Cian�Y , CALAAg C.i 6 �g,rV 'LQ•S..} l✓tic . OSr�ar}Ido. do�ao® w^ NteJ=�-SJ4.U.T P mbh 8 IA 9u �+�5 A a Q M12sQ . 0^9 10 11 12 13 14 is 16 17 is 19 20 5/15/2019 Page 6 of 6 BOARD OF DIRECTORS Meeting Date TOBd.of Dir. 04/24/19 05/22/19 AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED ORDINANCE NO. OCSD-54 AMENDING SECTION 2.06 OF ARTICLE ll, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSD-50 CONCERNING CAPITAL FACILITY CAPACITY CHARGES GENERAL MANAGER'S RECOMMENDATION A. That proposed Ordinance No. OCSD-54 be read by title only, and that reading of said Ordinance in its entirety be, and is hereby waived; B. Adopt Ordinance No. OCSD-54 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Section 2.06 of Article ll, Table A, Table B, and Table C of Ordinance No. OCSD-50 Concerning Capital Facilities Capacity Charges; and C. Direct the Clerk of the Board to publish a summary of the Ordinance as required by law. BACKGROUND Orange County Sanitation District (Sanitation District) Ordinance No. OCSD-50 was adopted by the Board of Directors on March 28, 2018. Staff is requesting to amend the ordinance with clarification language only. • Table A removes parking structures from the Ordinance • Table B clarifies the multi-family residential definitions • Table C clarifies inspection fee descriptions These clarifications will assist the Sanitation District's member agencies with the collection of the Capital Facility Capacity Charges and will help our customer's understanding of how the capacity/inspection fees are charged. These revisions will not increase any of the fees in the ordinance. RELEVANT STANDARDS • Comply with Ordinance No. OCSD-50 • Sustain 1, 5, 20-year planning horizons PROBLEM The Sanitation District's Board of Directors approved Ordinance No. OCSD-50 in March of 2018. The definitions need clarification so that our member agencies and customers Page 1 of 3 have a better understanding of how our capacity fees are charged. The proposed clarifications will help to reduce errors in calculating the fees. PROPOSED SOLUTION Amend Section 2.06 of Article II, Table A, Table B, and Table C of Ordinance No. OCSD-50 Concerning Capital Facilities Capacity Charges. TIMING CONCERNS April 241h- First Reading of the Ordinance May 22ntl - Second Reading and Adoption of the Ordinance July 1s' - Ordinance takes effect RAMIFICATIONS OF NOT TAKING ACTION Ordinance language will be confusing for our member agencies and customers. PRIOR COMMITTEE/BOARD ACTIONS April 2019 — Introduced Ordinance No. OCSD-54 entitled, "An Ordinance of the Board of Directors of the Orange County Sanitation District Amending Section 2.06 of Article II, Table A, Table B, and Table C of Ordinance No. OCSD-50 Concerning Capital Facilities Capacity Charges; March 2018 — Adopted Ordinance No. OCSD-50 entitled, An Ordinance of the Board of Directors of Orange County Sanitation District Adopting Capital Facilities Capacity Charges and Repealing Ordinance No. OCSD-40 and Ordinance No. OCSD42. December 2017—Adopted 2017 Facilities Master Plan and Received and filed 2017 Rate Study ADDITIONAL INFORMATION To ensure the appropriate allocation of costs and fees, the Orange County Sanitation District (Sanitation District) engaged an engineering consulting firm, Carollo Engineers, to provide an independent analysis of the Sanitation District's cash flow modeling and a cost of service study. The study demonstrates that the Sanitation District's proposed fees are appropriate and reasonable and will support its projected capital and operating requirements. Carollo Engineers completed the facilities master plan update. In conjunction with this update, Carollo was tasked with performing an updated sewer rate study to determine the appropriate rates going forward to support the facilities master plan update. The Rate Study was received and filed, and the Facilities Master Plan was adopted by Resolution No. OCSD 17-16 in December 2017 and the Ordinance concerning Capital Facilities Capacity Charges was adopted in March of 2018. Page 2 of 3 Based upon feedback from our member agencies, definitions in the fee tables need to be clarified. The amendment to Ordinance NO. OCSD-50 provides these clarifications. ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Proposed Ordinance No. OCSD-54 • Ordinance No. OCSD-50 Page 3 of 3 ORDINANCE NO. OCSD-54 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING SECTION 2.06 OF ARTICLE II, TABLE A, TABLE B, AND TABLE C OF ORDINANCE NO. OCSD-50 CONCERNING CAPITAL FACILITY CAPACITY CHARGES WHEREAS,the Board of Directors of the Orange County Sanitation District adopted Ordinance No. OCSD-50 on March 28, 2018 adopting Capital Facilities Capacity Charges; and WHEREAS, the Board of Directors of the Orange County Sanitation District wishes to revise Section 2.06 of Article II, Table A, Table B, and Table C to more clearly define the categories for charges. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: SECTION 1: Section 2.06 of Article ll, Table A, Table B and Table C of Ordinance No. OCSD-50 are hereby amended as follows: OCSD-54-1 TABLE A CAPITAL FACILITIES CAPACITY CHARGES (CFCQ NON-RESIDENTIAL Use Category Rate Basis Base Charge Low Demand2 Per 1,000 square feet' $ 332.00' Average Demand4•' Per 1,000 square feet $2,066.00' High Demand' Per 1,000 square feet $4,908.00' 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4,228; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. 2Low Demand connections are the following categories of users: Nurseries; Warehouses; Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards; Public Storage Buildings; and other facilities whose wastewater discharge is similar to these listed categories. 'High Demand connections are the following categories of users: Food/Beverage Service Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to these listed categories. 4AII other connections are Average Demand users including: Church Offices and Schools; Hotels, Shopping Centers/Strip Malls without food/beverage service establishments, Music Halls without food facilities, Office buildings, Senior Housing with individual living units without kitchens but with a common kitchen 5 Residential Accessory Structures such as workshops and hobby shops that connect to the sewer, will be charged at the average demand rate and the minimum charge does not apply. OCSD-54-2 TABLE B CAPITAL FACILITIES CAPACITY CHARGES (CFCC) RESIDENTIAL (PER UNIT)- Single Family Residential (SFR)1 Base Charge 5+ Bedrooms $5,877.00 4 Bedrooms $5,031.00 3 Bedrooms $4,228.00 2 Bedrooms $3,425.00 1 Bedroom $2,621.00 Multi-Family Residential (MFR)z Base Charge 4+ Bedrooms $4,566.00 3 Bedrooms $3,763.00 2 Bedrooms $2,960.00 1 Bedroom $2,114.00 StudiO3 $1,353.00 "The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate that is a percentage of the base rate depending on the size of the unit. The schedule for the base rate shall be as follows: 2018-19 2019-20 2020-21 2021-22 2022-23 $4,228 $4,601 $4,973 $5,346 $5,719 1 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other enclosed addition which could potentially be used as a bedroom are included in this category. The classification of these additions will be reviewed and determined by staff. 2 MFR units consist of multiple attached units that are not sold individually and receive one secured property tax bill such as apartments. Multiple attached units that are not sold individually and are senior housing with individual living units that include a kitchen are considered MFR units. 3 Studio—one single room with no separating doors or openings leading to another part of the room (except for a bathroom). Live/Work units will be charged at the residential rate for the living quarters and at the non- residential rate for the work portion square footage. OCSD-54-3 TABLE C PLAN CHECK AND INSPECTION FEE TABLE INSPECTION FEES FOR SINGLE CONNECTIONS Lateral installation to property line: 2018-19 2019-20 2020-21 2021-22 2022-23 $575.00 $650.00 $725.00 $800.00 $875.00 Lateral installation with optional cleanout to existing manhole: 2018-19 2019-20 2020-21 2021-22 2022-23 $650.00 $800.00 $950.00 $1,050.00 $1,150.00 Core drilling into existing manhole base—add: 2018-19 2019-20 2020-21 2021-22 2022-23 $600.00 $900.00 $1,200.00 $1,450.00 $1,500.00 Installation of new manhole over existing sewer: 2018-19 2019-20 2020-21 2021-22 2022-23 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00 Gas Flap Installation —add: 2018-19 2019-20 2020-21 2021-22 2022-23 $450.00 $455.00 $460.00 $465.00 $470.00 INSPECTION FEES FOR MULTIPLE CONNECTIONS Plan check and inspection fees of 20 percent of the sewer construction cost for new tract sewers, sewer extensions or special facilities are required when plans are submitted for plan check. If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the project. If funds are required after the work is completed, they must be paid before the District finals the sewer project. OCSD-54-4 The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: SECTION 2. Severability. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. SECTION.3. Effective Date. This Ordinance shall take effect July 1, 2019. SECTION 4. 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 majority vote of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on May 22, 2019. David John Shawver Chairman, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board Orange County Sanitation District APPROVED AS TO FORM: Bradley R. Hogin General Counsel Orange County Sanitation District OCSD-54-5 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-XX was introduced for first reading at a regular meeting of said Board on the 24th day of April 2019, and passed and adopted at a regular meeting of said Board on the 22ntl day of May 2019, by the following vote, to wit: AYES: NOES: ABSTENTIONS: ABSENT: IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 22na day of May 2019. Kelly A. Lore, MIMIC Clerk of the Board Orange County Sanitation District OCSD-54-6 ORDINANCE NO. OCSD-50 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING CAPITAL FACILITIES CAPACITY CHARGES AND REPEALING ORDINANCE NO. OCSD-40 AND ORDINANCE NO. OCSD-42 WHEREAS, Health & Safety Code Section 5471 authorizes the Board of Directors of the Orange County Sanitation District ("District") to impose fees and other charges for services and facilities furnished by the District in connection with the District's wastewater collection, treatment, disposal, and reuse system; and WHEREAS, the District imposes Capital Facilities Capacity Charges on new users and Supplemental Capital Facilities Capacity Charges on specked existing users. These charges are set forth in Ordinance No. OCSD-40, as amended by Ordinance No. OCSD-42; and WHEREAS, the District recently retained Carollo Engineers to evaluate the District's projected revenue needs and recommend service fees and capacity charges for the period July 1, 2018 to June 30, 2023. In December of 2017, Carollo Engineers issued its "Final Report and Recommendations on Wastewater Rates, Fees, and Charges" ("Carollo Report"). The District's Board of Directors received the Carollo Report on December 20, 2017, and the Carollo Report is on file with the District; and WHEREAS, the Carollo Report recommended that the District (1) increase the residential CFCC from $3,855 per equivalent dwelling unit to $5,719 per equivalent dwelling unit by 2023, and (2) increase the commercial-industrial CFCC from $2,000 per 1.000 square feet to $3,639 per 1,000 square feet by 2023; and WHEREAS, the recommendations set forth in the Carollo Report are based on various studies and plans including, among others, financial forecasts and the District's 2017 Facilities Master Plan ("Master Plan"). The Master Plan identified the capital improvement projects that will be needed over the next 20 years, and estimated the cost of each project. The District's Board of Directors adopted the Master Plan on December 20, 2017; and WHEREAS, on Wednesday, March 28, 2018 at 6:00 P.M., in the District's Boardroom on the first Floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing,and received and considered comments concerning the proposed charges; and WHEREAS, the Board of Directors has carefully reviewed the Carollo Report and considered oral and written comments from the public, Board Members, District staff, and District consultants made at and prior to the March 28, 2018 public hearing; OCSD50-1 NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: SECTION I. Adopt Capital Facilities Capacity Charges TABLE OF CONTENTS ARTICLE I: RECITAL OF FINDINGS Section 1.01. Findings — Declaration of Intent ARTICLE 11: CAPITAL FACILITIES CAPACITY CHARGES Section 2.01. Purpose and Scope Section 2.02. Definitions Section 2.03. Connection Permits: Required Section 2.04. Capital Facilities Capacity Charge: Payment Section 2.05. Capital Facilities Capacity Charge: Time of Payment Section 2.06. Capital Facilities Capacity Charge: Schedule of Amounts Table A Capital Facilities Capacity Charges— Non-Residential Table B Capital Facilities Capacity Charges— Residential Table C Plan Check and Inspection Fee Schedule Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users—Special Purpose Dischargers— Definitions Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users Section 2.09. Supplemental Capital Facilities Capacity Charge: New Special Purpose Dischargers Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial— Industrial Users— Special Purpose Dischargers Table D Supplemental Capital Facilities Capacity Charges Section 2.11. Capital Facilities Capacity Charge: Replacement Section 2.12. Capital Facilities Capacity Charge: Remodeled Section 2.13. Accessory Dwelling Units Section 2.14. Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements Section 2.15. No Refund or Transfer Section 2.16. Baseline Transferability Section 2.17. Capital Facilities Capacity Charge: Annual Updates Section 2.18. Affordable Housing Projects OGSD-50-2 ARTICLE III: MISCELLANEOUS Section 4.01. Application of Ordinance Section 4.02. Exceptions Section 4.03. Out of Area Sewer Service Agreements ARTICLE I RECITAL OF FINDINGS Section 1.01. Findings. Based on substantial evidence in the record, the Board of Directors hereby finds as follows: A. The District operates a system for the collection, treatment, disposal, and reuse of wastewater ("System"). The System protects human health and the environment from the potentially harmful effects of wastewater. B. The District regularly constructs, reconstructs, repairs, and/or rehabilitates System facilities through capital improvement projects ("Capital Projects"). The District recovers the cost of Capital Projects through Capital Facilities Capacity Charges imposed on new users and Supplemental Capital Facilities Capacity Charges imposed on specified existing users. This Ordinance imposes Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges as recommended in the Carollo Report. C. The District will use the revenues from Capital Facilities Capacity Charges and the Supplemental Capital Facilities Capacity Charges to fund future Capital Projects and/or repay principal and interest on debt incurred in connection with past Capital Projects. The revenues shall not be used for the acquisition or construction of new local street sewers or laterals as distinguished from main trunk, interceptor and ouffall sewers. D. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are based on the information and analysis set forth in the Carollo Report and the Master Plan, both of which were made available to the public in accordance with Government Code Section 66016 and other provisions of law. E. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance do not exceed the estimated reasonable cost of providing the wastewater collection, treatment, disposal, and reuse services for which the fees are charged. The manner in which the costs are allocated to each payor bears a fair or reasonable relationship to the payor's burdens on, and benefits received from, the District's System. OCSDb03 F. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance will retire debt and fund capital projects necessary to maintain service within the District's existing service area. Therefore, adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a). G. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance are not imposed as an "incident of property ownership" within the meaning of Article XIIID of the California Constitution. Thus, the substantive and procedural requirements of Article XIIID do not apply. H. The Capital Facilities Capacity Charges and Supplemental Capital Facilities Capacity Charges established by this ordinance have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. ARTICLE II CAPITAL FACILITIES CAPACITY CHARGES Section 2.01. Purpose and Scope. This Ordinance is designed to ensure that each user pays his or her fair share of the costs of Capital Projects, based on the burden that each user places on the System. The District will use revenues generated by this Ordinance to (i) fund future Capital Projects, and (ii) repay principal and interest on debt incurred in connection with past Capital Projects. Section 2.02. Definitions. A. "Actual construction costs" include the cost of all activities necessary or incidental to the construction of the District facility, such as financing, planning, designing, acquisition of the property or interests in the property, construction, reconstruction, rehabilitation, and repair. B. "Capital Facilities Capacity Charge" means a one-time, non- discriminatory charge imposed at the time a building or structure is newly connected to the District's System, directly or indirectly, or an existing structure or category of use is expanded or increased. Said charge is to pay for the District facilities in existence at the time the charge is imposed, or to pay for new facilities to be constructed in the future, that are of benefit to the property being charged. This charge does not apply to temporary facilities or operations that are regulated under the provisions of a Special Purpose Discharge Permit. A schedule of the Capital Facilities Capacity Charges specified herein will be on file in the Office of the Board Secretary of the District, and in the Building Department of each City within the District. C. "Connection fee" means a fee equal to the cost necessary to physically connect a property to the District's System, including but not limited to, installation of meters, meter boxes, pipelines, and appurtenances to make the connection OCSD-50-a and which fee does not exceed the actual cost of labor, materials, and overhead for the installation of those facilities. D. "Non-discriminatory" means that the Capital Facilities Capacity Charge does not exceed an amount determined on the basis of the same objective criteria and methodology applicable to comparable public or non-public users, and is not in excess of the proportionate share of the cost of the District's facilities of benefit to the person or property being charged, based upon the proportionate share of use of those facilities. E. "Public agency" means the United States or any of its agencies, the State or any of its agencies, the Regents of the University of California, a county, city, district, school district, local or regional public authority, or any other political entity, subdivision or public corporation of the State. F. The Supplemental Capital Facilities Capacity Charge, as provided for in Sections 2.07, 2.08, 2.09, and 2.10 of this Ordinance, is an annual charge payable to the District on a quarterly or annual basis, as determined by the District. Said charge is required to be paid by dischargers that exceed the maximum quantity of flow or constituents (BOD or SS) allowed as a base use for which the Capacity Charge is paid. G. "Accessary Dwelling Unit" means an attached or detached residential dwelling unit which provides complete independent living facilities for one or more persons, includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated, and has been approved by a local agency pursuant to Government Code Section 65852.2 and/or a local ordinance. Section 2.03. Connection Permits: Required. A. Connection permits are required of each and every dwelling unit, and each commercial or industrial building, and structure connecting directly or indirectly to the District's sewerage system facilities. Included are the connections of laterals to local municipal sewerage facilities, and the connection of local municipal sewerage facilities and laterals to the District's facilities. Multiple detached structures on a single parcel of property shall each be required to obtain a connection permit. B. Except as authorized by the issuance of a Special Purpose Discharge Permit under Sections 305—305.6 of the District's Wastewater Discharge Regulations, or as authorized pursuant to a special extra territorial service agreement approved by the Board of Directors, no permit shall be valid unless the real property to be served by use of the permit is included within the boundaries of the District and within the boundaries of a local sewering agency authorized to maintain public sewering facilities. However, a permit, as authorized above, may be issued for property to be served outside the boundaries of a local sewering agency if a local sewering agency makes application for the issuance of such permit. There will be a non-discriminatory Capital Facilities Capacity Charge assessed to public agencies for connecting directly or indirectly to the District's sewerage system facilities, and a connection permit must be obtained. OCSD50-5 Section 2.04. Caoital Facilities Capacity Charge: Payment Required. No application for a permit for a connection of a structure to the District's sewerage facility, or to any sewerage facility which discharges into the District sewerage facility, shall be approved, nor a permit issued, until the District's Capital Facilities Capacity Charge is paid by the applicant, except as provided for discharges under a Special Purpose Discharge Permit. No connection permit shall be issued unless there is an established category of use of the property to be served or a valid building permit issued which establishes the category of use of said property. Section 2.05. Capital Facilities Capacity Charge: Time of Payment. A. Payment of the Capital Facilities Capacity Charge established by this Ordinance for connection to the District's sewerage system facilities shall be required at the time of issuance of the building permit for all construction within the District, except in the case of a building legally exempt from the requirement of obtaining a permit. The payment of the Capital Facilities Capacity Charge for such exempt buildings will be required at the time of and prior to the issuing of a plumbing connection permit for any construction within the territorial limits of the District, or if none, prior to the issuance of a Certificate of Occupancy. B. Upon application of any property owner seeking to connect to the District's sewerage system, the General Manager or his designee, upon a finding of compelling need, may, pursuantto the authority of California Health&Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge and/or annexation fees in installment payments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. Section 2.06. Capital Facilities Capacity Charge and Plan Check and Inspection Fees: Schedule of Amounts. A. Every person or entity connecting any new or expanded building or structure to the District's system facilities shall pay a Capital Facilities Capacity Charge in the amount for the applicable category of use set forth on Table A & B, below. B. Every person or entity connecting any new or expanded building or structure directly to the District's local or regional system facilities shall pay Plan Check and Inspection Fees in the amount set forth n Table C, below. OCS0.50-6 TABLE A CAPITAL FACILITIES CAPACITY CHARGES ICFCCI NON-RESIDENTIAL Use Category Rate Basis Base Charge Low Demand2 Per 1,000 square feet' $ 332.001 Average Demandd5 Per 1,000 square feet $2,066.001 High Demand' Per 1,000 square feet $4,908,001 'Provided that the minimum Capital Facilities Capacity Charge for such new construction shall be $4,228; and all calculations shall be on a 1,000 square foot, or portion thereof, basis. zLow Demand connections are the following categories of users: Parking Structures; Nurseries; Warehouses; Churches; Truck Terminals; RV Parks; RV Storage Yards; Lumber/Construction Yards; Public Storage Buildings; and other facilities whose wastewater discharge is similar to these listed categories. Parking Structures not connected to the sewer will not be charged. 3High Demand connections are the following categories of users: Food/Beverage Service Establishments; Supermarkets (with bakery, meat counter, and/or food service); Car Washes; Coin Laundries; Amusement Parks; Shopping Centers with one or more Food/Beverage Service Establishments; Food Courts; Food Processing Facilities; Textile Manufacturers; Breweries; and other facilities whose wastewater discharge is similar to these listed categories. 'All other connections are Average Demand users including: Church Offices and Schools; Hotels, Shopping Centers/Strip Malls without food/beverage service establishments, Music Halls without food facilities, Office buildings, Senior Housing with individual living units without kitchens but with a common kitchen 5 Residential Accessory Structures such as workshops and hobby shops that connect to the sewer, will be charged at the average demand rate and the minimum charge does not apply. OCSD-50-7 TABLE B CAPITAL FACILITIES CAPACITY CHARGES (CFCCI RESIDENTIAL (PER UNIT)* Single Family Residential (SFR)' Base Charge 5+ Bedrooms $5,877.00 4 Bedrooms $5,031.00 3 Bedrooms $4,228.00 2 Bedrooms $3,425.00 1 Bedroom $2,621.00 Multi-Family Residential (MFR)2 Base Charge 4+ Bedrooms $4,566.00 3 Bedrooms $3,763.00 2 Bedrooms $2,960.00 1 Bedroom $2,114.00 StudiO3 $1,353.00 The Base Rate for Residential CFCC is the 3 Bedroom SFR with all others having a rate that is a percentage of the base rate depending on the size of the unit. The schedule for the base rate shall be as follows: 2018-19 2019-20 2020-21 2021-22 2022-23 $4,228 $4,601 $4,973 $5,346 $5,719 Bedroom additions are considered a change of use and a CFCC must be paid. Enclosed loft additions, bonus rooms, offices, workout rooms, media rooms, libraries and any other enclosed addition which could potentially be used as a bedroom are included in this category. The classification of these additions will be reviewed and determined by staff. 2 MFR units consist of multiple attached units that receive one secured property tax bill such as apartments. Senior housing with individual living units that include a kitchen are considered MFR units. 3 Studio—one single room with no separating doors or openings leading to another part of the room (except for a bathroom). LiveNVork units will be charged at the residential rate for the living quarters and at the non- residential rate for the work portion square footage. OCSD50-8 TABLE C PLAN CHECK AND INSPECTION FEE TABLE INSPECTION FEES FOR SINGLE CONNECTIONS Lateral installation to property line: 2018-19 2019-20 2020-21 2021-22 2022-23 $575.00 $650.00 $725.00 $800.00 $875.00 Lateral Installation to existing manhole with clean out: 2018-19 2019-20 2020-21 2021-22 2022-23 $650.00 $800.00 $950.00 $1,050.00 $1,150.00 Core drilling into existing manhole base — add: 2018-19 2019-20 2020-21 2021-22 2022-23 $600.00 $900.00 $1,200.00 $1,450.00 $1,500.00 Installation of new manhole over existing manhole: 2018-19 2019-20 2020-21 2021-22 2022-23 $1,200.00 $1,400.00 $1,600.00 $1,800.00 $1,900.00 Gas Flap Installation — add: 2018-19 2019-20 2020-21 2021-22 2022-23 $450.00 $455.00 $460.00 $465.00 $470.00 INSPECTION FEES FOR MULTIPLE CONNECTIONS Plan check and inspection fees of 20 percent of the sewer construction cost for new tract sewers, sewer extensions or special facilities are required when plans are submitted for plan check. If additional funds are needed, they must be deposited as soon as they are requested to complete the inspection on the project. If funds are required after the work is completed, they must be paid before the District finals the sewer project. OCSD-50-9 Section 2.07. Supplemental Capital Facilities Capacity Charge: Significant Commercial — Industrial Users and Significant Special Purpose Dischargers— Definitions. A. A Significant Commercial — Industrial User ("SCIU") is any person or entity who discharges commercial or industrial process flow, but excluding domestic sewage flow, in an amount greater than 25,000 gallons per day ("gpd"), or Biochemical Oxygen Demand ("BOD") greater than 150 pounds per day, or Suspended Solids ("SS") greater than 150 pounds per day, or who is required to obtain a Waste Discharge Permit, as prescribed by Article 3 of the District's Wastewater Regulations, due to having federally or the District regulated or significant discharges. B. A Significant Special Purpose Discharger ("SSPD") is any person or entity who discharges to the sewer system wastewater or process flow in an amount greater than 25,000 gpd (excluding domestic, industrial or commercial) and who is required to obtain a Special Purpose Discharge Permit as prescribed in Section 305 of the District's Wastewater Regulations. A Special Purpose Discharger (SPD) discharges 25,000 gpd or less. C. An Existing SCIU or SSPD is any SCIU or SSPD connected and discharging to the District's system prior to January 1, 2000. D. A New SCIU or SSPD is any user who connects and discharges to the District's System pursuant to a Waste Discharge Permit issued on or after January 1, 2000; or if previously connected and not an SCIU, as defined in Subparagraphs 2.07A and B above, but, subsequent to January 1, 2000, increases flow, or BOD, or SS to a level as to constitute an SCIU or SSPD. E. The maximum discharge allowed to a user, for which a base Capital Facilities Capacity Charge is paid, as per Table A, above, is 25,000 gallons per day("gpd"), or 150 pounds per day each of BOD and SS (the "base use"). Discharge of flow, or BOD, or SS in amounts greater than allowed by this Subsection 2.07E shall be subject to the provisions of Sections 2.08 and 2.09 hereof. F. Each Existing SCIU shall have a baseline of allowed discharge of flow, and BOD, and SS established by the the District as of January 1, 2000. The baseline shall be based upon the discharge for Fiscal Year 1998-99, or upon such other discharge data which the District determines is representative of the user's actual annual discharge to the sewerage system. Dischargers who are deemed to be SCIU's solely because of the requirements to obtain a Waste Discharge Permit, pursuant to Section 2.07A above, shall have a minimum baseline established as follows: Flow — 25,000 gallons per day; BOD— 150 pounds per day; and SS— 150 pounds per day. The SCIU shall be authorized to discharge flow, and BOD, and SS up to the baseline amounts without payment of a Supplemental Capital Facilities Capacity Charge. G. Each Existing SPD shall have a baseline of 25,000 gpd. The Existing SPD shall be authorized to discharge flow up to 25,000 gpd without payment of a Supplemental Capital Facilities Capacity Charge. OCSD-50-10 H. The Supplemental Capital Facilities Capacity Charge, as prescribed by Sections 2.08, 2.09, and 2.10 below, shall be payable commencing with the effective date of this Ordinance. Section 2.08. Supplemental Capital Facilities Capacity Charge: New Significant Commercial — Industrial Users. In addition to the base Capital Facilities Capacity Charge, as prescribed in Table A, for commercial — industrial use category properties, all New SCIU's shall pay a Supplemental Capital Facilities Capacity Charge for each gallon of flow, or pound of BOD, or SS, exceeding the base use discharge maximums, in the amount shown in Table D. Section 2.09. Supplemental Capital Facilities Capacity Charge: Significant Special Purpose Dischargers. All SSPDs shall pay a Supplemental Capital Facilities Capacity Charge of$.001948 per gallon per day for each gallon of flow exceeding 25,000 gallons per day. Section 2.10. Supplemental Capital Facilities Capacity Charge: Existing Significant Commercial — Industrial Users and Special Purpose Dischargers. A. All Existing Significant Commercial — Industrial Users connected to and discharging to the District's System shall be required to pay a Supplemental Capital Facilities Capacity Charge upon the occurrence of either (i) an increase of discharge flow of 25,000 gallons per day ("gpd"), or 25% per day over its established baseline authorization, whichever is lesser; or(ii) an increase of either BOD or SS discharge of 150 pounds each per day, or 25% each per day, whichever is lesser, over its established baseline authorization. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the discharger or the District. B. The Supplemental Capital Facilities Capacity Charge shall be in the following amounts for each component that is increased as provided in Section 2.10A above. TABLE D SUPPLEMENTAL CAPITAL FACILITIES CAPACITY CHARGES Daily Charge 2018-19 2019-20 2020-21 2021-22 2022-23 FLOW $0.001948 $0.001960 $0.001972 $0.001984 $0.001996 BOD $0.427550 $0.440380 $0.453590 $0.467200 $0.481210 SS $0.231510 $0.240770 $0.250410 $0.260420 $0.270840 OCSD-50-11 FLOW—Gallons Per Day BOD— Pounds Per Day SS— Pounds Per Day C. All Existing SPDs connected and discharging to the sewer shall be required to pay a Supplemental Capital Facilities Capacity Charge upon occurrence of an increase of discharge flow over 25,000 gpd. The Supplemental Capital Facilities Capacity Charge shall be $ 0.001948 per gallon per day of discharge for each gallon above 25,000 gpd. D. The Supplemental Capital Facilities Capacity Charge shall be calculated on the basis of the average daily quantity of discharge in excess of the User's baseline or 25,000 gpd for SPDs. The daily averages will be based on the daily discharges for a year, utilizing discharge records and reports of the District. Section 2.11. Capital Facilities Capacity Charge: Replacement Structures. For new construction replacing former structures, the Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A and B that would be for the prior category of use which was terminated and removed. Section 2.12. Capital Facilities Capacity Charge: Remodeled Structures. In the case of existing structures connected to the District's system facilities, to which new construction or alteration is made to change or increase the category of use or number of bedrooms, a Capital Facilities Capacity Charge shall be calculated and paid to the District on the rate basis of the category of the new use and the amounts as set forth in Tables A and B, less a credit amount, up to the amount of the new Capital Facilities Capacity Charge, equal to a charge, as prescribed in Tables A and B for the prior category of use. Section 2.13. Accessory Dwelling Units. Notwithstanding Section 2.12, pursuant to Government Code Section 65852.2, the District shall not collect Capital Facilities Capacity Charges from any ADU if the unit is contained within the existing space of a single-family residence or accessory structure, has independent exterior access from the existing residence, and the side and rear setbacks are sufficient for fire safety. Section 2.14.Payment of Capital Facilities Capacity Charge: Off-Site Sewers Not Part of Master Plan Relative to Reimbursement Agreements. A charge for connection to off-site sewers which are not included as part of the District Master Plan and for which a Non-Master Plan Reimbursement Agreement has been entered into between the District and the property owner, shall be paid in the amount provided for in said Agreement, to be known as a Non-Master Plan Capital Facilities Capacity Charge. The amount set forth in said Agreement shall be the amount due, provided the original Agreement is still in force. The Non-Master Plan Capital Facilities Capacity Charge shall be in addition to the other Capital Facilities Capacity Charges provided for in Sections 2.06 through 2.10 hereinabove, established for property connecting to said facilities. OCSD-50-12 Section 2.15. No Refund or Transfer. A Capital Facilities Capacity Charge is paid for the connection of a specific building or structure on a parcel of property. No refund of any charge shall be made because of non-use or change of use, or any other reason once the connection has been made. If the connection is not made and the request for connection is withdrawn within 12 months of the payment date, the charges paid will be refunded upon establishing proof from the City or County of a canceled permit. The connection permit is non-transferable to any other parcel of property. Section 2.16. Baseline Transferability. The baseline of allowed discharge of flow, BOD and SS used to calculate a Supplemental Capital Facilities Capacity Charge shall not be transferable to a different property, nor shall a credit for such previously existing baseline be provided to another SCIU concurrently or subsequently occupying the same property for a different use. Each such SCIU shall pay Supplemental Capital Facilities Capacity Charges in accordance with Section 2.08 above. Section 2.17.Capital Facilities Capacity Charge Annual Updates. The Capital Facilities Capacity Charge is based upon the most recently completed Facilities Master Plan. This The non-residential charge will be updated annually based upon the increase in the Engineering News-Record construction cost index for Los Angeles as of December of the prior year until the completion of the next Rate Study. The residential charge will be updated based upon the schedule of base fees in Table B. Section 2.18.Affordable Housing Projects. Per Resolution OCSD 11-02, development projects that include lower income housing units shall not be denied approval of an application for service, nor shall conditions be imposed thereon or services reduced which are applied for, unless the District makes specific written findings that the denial, condition, or reduction is necessary due to the existence of one or more of the following: (a) insufficient water supply or insufficient water treatment or distribution capacity; (b) a State Department of Health Services order prohibiting new water connections; (c) insufficient sewer treatment or collection capacity; (d) a Regional Water Quality Control Board order prohibiting new sewer connections; (a) the applicant has failed to agree to reasonable terms and conditions ARTICLE III MISCELLANEOUS Section 4.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to the provisions of the District's Wastewater Discharge Regulations for use of the District's sewage facilities, including provisions for payment of charges or fees related thereto; the District's ordinance establishing Fees Concerning Annexations of OCSD-50-13 Territory to the District; and any other the District Ordinances and Resolutions not in conflict herewith. Section 4.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 4.03 Out of Area Sewer Service Agreements. The District is empowered to contract for the transport, treatment and disposal of wastewaters originating within areas outside of the District if it is in the best interest of the District to do so. These Out of Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. The Board of Directors of the Orange County Sanitation District does further hereby ORDAIN: SECTION II. Severabilitv. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. SECTION III. Effective Date. This Ordinance shall take effect July 1, 2018. SECTION IV. Repeal. Ordinance No. OCSD-40 and Ordinance No. OCSD-42 are hereby repealed. SECTION V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. OCSD-50-14 PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held on March 28, 2018. 5r Gr ory ourn, PLS airman, Board of Directors Orange County Sanitation District ATTEST: r Keiy ' . L rMMId Clerl of t e Board Orange County Sanitation District APPROVED AS TO FORM: r � Bradfey Ft. llogin General Counsel Orange County Sanitation District OCSD-50-15 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-50 was introduced for first reading at a regular meeting of said Board on the 28th day of February 2018, and passed and adopted by a vote of not less than two-thirds at a regular meeting of said Board on the 28th day of March 2018, by the following vote, to wit: AYES: Barnes; Bernstein; Blazey (Alternate); Collacott; Deaton; Ferryman; Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson; Sebourn; Shawver; F. Smith; T. Smith; Wagner; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Hawkins; Steel; Tinajero; and Wanks IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Orange County Sanitation District this 28th day of March, 2018. Kelly . Lor MC Clerk fthe card Orange County Sanitation District OCSD-50.16 (t... CLOSED SESSION 1 WOODRUFF, $PRADllN 6$MAKi 555 ANION BOULEVARD, SUITE 1200 COSTA M.s A, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: May 14, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on May 22, 2019 for the purpose of conferring with its labor negotiators to discuss negotiations with the International Union of Operating Engineers Local 501,the Orange County Employees Association, and the Supervisors and Professionals Group. The Agency Designated Representatives are Laura Kalty, Liebert Cassidy Whitmore,James Herberg, Lorenzo Tyner, and Celia Chandler. The closed session will be held pursuant to authority of California Government Code Section 54957.6. Respec y submitted, By: Bradley . Hogin, G eral Counsel 1411288.1 WOODRUFF, SpRADLINe SMART CLOSED SESSION 2 555 ANION BOULEVARD, BUTTE 1200 COSTA M.s A, CA 92626-7670 (714)559-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: May 14, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session May 22, 2019 for the purpose of conferring with its legal counsel regarding existing litigation to which the District is a party. The title of the case is Klean Waters, Inc. et. al. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(1). Respectfully submitted, By /m Bradle . Hogin, Qeneral Counsel 1411290.1 WOODRUFF, SPRADLIN&SMART CLOSED SESSION 3 555 ANION BOULEVARD, BUTTE 1200 COSTA M.s A, CA 92626-9670 (714)559-9000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: May 14, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session on May 22,2019 for the purpose of conferring with its negotiators regarding the purchase of real property. The negotiating parties and properties are as follows: De La Rosa Maintenance,APN No. 156-163-11, Gigamem,LLC, APN No. 156-163-11,Thum Nguyen, APN No. 156-163-11,Uber Chic Home, LLC, APN No. 156-163-11, LLC, Deborah Muccillo dba Interiors Within Reach,APN No. 156-163-10, Leadingware Group, Inc.,APN No. 156-163-10 and Car Prep hie, APN No. 156-163-09 The District's negotiators are Jim Herberg, Lorenzo Tyner, and Rob Thompson. Said closed session will be held pursuant to authority of California Government Code Section 54956.8. Respec submitted, By: Bradley P. Hogin, G neral Counsel 1411299.1 ORANGE COUNTY SANITATION DISTRICT COMMON ACRONYMS ACWA Association of California LAFCO Local Agency Formation RWQCB Regional Water Quality Water Agencies Commission Control Board APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood Association Protection Agency AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River District Interceptor ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water Engineers Understanding Quality Control Board BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed Water Agencies Project Authority California Air Resources National Environmental Supervisory Control And CARB Board NEPA Policy Act SCADA Data Acquisition California Association of Non-Governmental Southern California CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned Treatment Works CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality Elimination System Management District CEQA California Environmental NWRI National Water Research SOCWA South Orange County Quality Act Institute Wastewater Authority CIP Capital Improvement O&M Operations&Maintenance SRF Clean Water State Program Revolving Fund California Regional Water Orange County Council of Sewer System CRWQCe Quality Control Board OCCOG Governments SSMP Management Plan CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow Agency California Water Environment Orange County Sanitation State Water Resources CWEA Association OCSD District SWRCe Control Board EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids EMT Executive Management Team COBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load EPA US Environmental Protection OSHA Occupational Safety and 7S5 Total Suspended Solids Agency Health Administration Professional Waste Discharge FOG Fats,Oils,and Grease PCSA Consultant/Construction WDR Wastee Discharge Services Agreement gpd gallons per day PDSA Professional Design Services WEE Water Environment Agreement Federation GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERE Water Environment& System Works Reuse Foundation ICS Incident Command System ppm pans per million WIFIA Water Infrastructure Finance and Innovation Act Integrated Emergency Professional Services Water Infrastructure IERP Response Plan PSA Agreement WIIN Improvements for the Nation Act JPA Joint Powers Authority REP Request For Proposal WRDA Water Resources Develo ment Act ORANGE COUNTY SANITATION DISTRICT GLOSSARY OF TERMS ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater. BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also known as the benthic zone. BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms.Testing for BOD is done to assess the amount of organic matter in water. BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used as a fuel. BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements,additional capacity, and projects for the support facilities. COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere,used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater. COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. DILUTION TO THRESHOLD (Dfr)—The dilution at which the majority of people detect the odor becomes the D/T for that air sample. GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming("greenhouse stil . GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern California's current and future water needs.This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply. LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance. N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility. PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant. SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non- reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment. SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban runoff. SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. SLUDGE—Untreated solid material created by the treatment of wastewater. TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater. TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them. URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. WASTEWATER—Any water that enters the sanitary sewer. WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service area is in the Santa Ana River Watershed.