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HomeMy WebLinkAbout06-26-2019 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, June 26, 2019 AND q 6:00 P.M. Orange County Sanitation District Board Room Financing Corporation 10844 Ellis Avenue Regular Meeting of the Fountain Valley, CA 92708 BOARD OF DIRECTORS (714) 593-7433 AGENDA CALL TO ORDER (Board Chairman David Shavrver) INVOCATION AND PLEDGE OF ALLEGIANCE (Glenn Parker, City of Brea) ROLL CALL (Clerk of the Board) 1. RECEIVE AND FILE MINUTES EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR City of Santa Ana Cecilia Iglesias Dave Penaloza (effective 5122119) 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: Board Member Recognition: Director James Ferryman — 30 years REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters ofgeneral interest to the Directors. These reports are for information only and require no action by the Directors. 06/26/2019 OCSD Boad of Directors'Agenda Pagel of 10 CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors,after one motion,without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board of Directors held on May 22, 2019. RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 3. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: A. Steering Committee Meeting of April 24, 2019 B. Operations Committee Meeting of May 1, 2019 C. Administration Committee Meeting of May 8, 2019 D. La PA Committee Meeting of May 13, 2019 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF MAY 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of May 2019. OPERATIONS COMMITTEE: 5. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE CONDENSER REPAIR, PROJECT NO. MP-257 (Kathy Millea) RECOMMENDATION: A. Approve a service contract to Manley's Boiler LLC for Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257, Specification No. S-2019-10196D, for an amount not to exceed $289,900; and B. Approve a contingency of$57,980 (20%). 6. FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS (Rob Thompson) RECOMMENDATION: A. Approve a Purchase Order to National Auto Fleet Group for the purchase of four Toyota Prius sedans, four Nissan Leaf sedans, and four Ford Transit 0612W2019 OCSD Boad of Directors'Agenda Page 2 of 10 vans using Sourcewell (formerly National Joint Powers Alliance)Cooperative Contract No. 120716-NAF for a total amount not to exceed $361,554; and B. Approve a contingency of$18,078 (5%). 7. PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR (Rob Thompson) RECOMMENDATION: A. Approve a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filter Clarifier "E" rotating scum skimmer troughs, sludge ducts and their associated components for a total amount not to exceed $190,280; B. Approve a contingency of$38,056 (20%); and C. Approve Amendment to Orange County Sanitation District Purchase Order Terms and Conditions. 8. PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 (Kathy Millea) RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248; B. Award a Construction Contract to W.M. Lyles for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248, for a total amount not to exceed $3,048,000; and C. Approve a contingency of$304,800 (10%). 9. PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 (Kathy Millea) RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Plant No. 1 ICS Network Extension, Project No. FE17-05; B. Receive and file Clarification Request No. 2 issued to ODC Engineering and Technology on April 29, 2019; C. Receive and file ODC's response to Clarification Request No. 2 received by the Orange County Sanitation District on May 6, 2019; 0612W2019 OCSD Boad of Directors'Agenda Page 3 of 10 D. Receive and file Award Recommendation Notice issued to CDC on May 17, 2019 informing them of the Orange County Sanitation District's findings and subsequent recommendation to reject their Bid as non-responsive; E. Reject low bid from ODC Engineering and Technology as non-responsive; F. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders dated May 17, 2019; G. Award a construction contract to RP Controls, for the Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889; and H. Approve a contingency of$32,188 (10%). ADMINISTRATION COMMITTEE: 10. FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) RECOMMENDATION: Adopt Resolution No. OCSD 19-04, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2019-20 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA")". 11. ENVIRONMENTAL REGULATORY REPORTS (Lan Wiborg) RECOMMENDATION: Receive and file environmental regulatory reports: Biosolids Management Compliance Report 2018; Annual Pretreatment Program Report Fiscal Year 2017-2018; Semi-Annual Pretreatment Program Report Fiscal Year 2018-2019 (July-December); Annual Greenhouse Gas Emissions Report 2018; Annual Emission Report 2018; and Marine Monitoring Annual Report 2017/2018. 12. 2019-20 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) RECOMMENDATION: A. Approve the Orange County Sanitation District FY 2019-20 Operational Property-Liability Insurance Renewals for the not-to-exceed amounts specified below: • Excess General Liability Insurance— Not to Exceed $515,371; • Property and Boiler& Machinery— Not to Exceed $837,230; • Earthquake Insurance— Not to Exceed $86,585; and 0612W2019 OCSD Boad of Directors'Agenda Page 4 of 10 Excess Workers' Compensation Insurance - a rate of $0.3120 per $100 of payroll — Not to Exceed $218,000; and B. Provide an analysis of pricing and different retentions within six months. 13. FLEET MANAGEMENT INFORMATION SYSTEM (Lorenzo Tyner) RECOMMENDATION: A. Award a Professional Consultant Services Agreement to Total Resource Management, Inc. for the procurement of software and services to implement and configure the Transportation Module for Enterprise Asset Management System (IBM Maximo), Specification No. CS-2018-1003BD, for a total amount not to exceed $424,101; and B. Approve a contingency of$42,410 (10%). 14. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT — BIOSOLIDS MANAGEMENT (Lan Wiborg) RECOMMENDATION: A. Approve Agreement number 4600002709-HD with the Inland Empire Regional Composting Authority (IERCA) for the Orange County Sanitation District (Sanitation District) to pay IERCA to receive and compost up to approximately 50 wet tons per day of the Sanitation District's biosolids at a base fee (tipping fee)of$56 per wet ton, plus an administrative fee of$2 per wet ton, and an annual base fee increase of $1 per fiscal year, with a term of the Agreement of five (5) years and, upon mutual written agreement, an option to extend on a year-to-year basis with up to two (2) annual extensions in a total annual amount not to exceed $820,000 per year, and B. Approve a 10% contingency of $400,000 in the event the Sanitation District needs to send additional loads to this compost option. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 15. TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR EFFLUENT REUSE PROJECT UNDER THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION (WIIN) ACT (Jim Herberg) RECOMMENDATION: Adopt Resolution No. OCSD 19-05 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving and authorizing the grant application for the third round of the Title XVI Water Recycling Projects under the Water Infrastructure Improvements for the Nation (WIIN) Act including Orange County Sanitation District's Effluent Reuse Project; and the Execution of Grant Documents with the United States Department of the Interior, Bureau of Reclamation". 0612W2019 OCSD Boad of Directors'Agenda Page 5 of 10 16. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of May 2019. 17. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) RECOMMENDATION: Receive and file the Public Affairs Update for the month of May 2019. STEERING COMMITTEE: 18. GENERAL MANAGER'S FY 2018-2019 WORK PLAN YEAR-END UPDATE (Jim Herberg) RECOMMENDATION: Receive and File the General Manager's FY 2018-2019 Work Plan Year-End Update. Recess OCSD Board of Directors Meeting. 0612W2019 OCSD Boad of Directors'Agenda Page 6 of 10 ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION The members of the Orange County Sanitation District Board of Directors are each being compensated $212.50 for the Board Meeting;there is no additional compensation for the Financing Corporation Meeting. CALL TO ORDER: Board of Directors, Orange County Sanitation District Financing Corporation. ROLL CALL: (Secretary of the Financing Corporation) APPROVAL OF MINUTES: FC-1. APPROVAL OF MINUTES (Secretary of the Financing Corporation) If no corrections or amendments are made, the minutes for the meeting held on June 27, 2018 will be deemed approved and be so ordered by the Chair. INFORMATION ITEM: FC-2. ANNUAL STATUS REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION (Lorenzo Tyner) RECOMMENDATION: Receive and File the Annual Status Report of the Orange County Sanitation District Financing Corporation. Adjourn, Board of Directors, Orange County Sanitation District Financing Corporation. 0612W2019 OCSD Boad of Directors'Agenda Page 7 of 10 Reconvene, Board of Directors, Orange County Sanitation District. NON-CONSENT: 19. PROPOSED FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) RECOMMENDATION: Approve proposed Operating, Capital, Debt/COP Service, and Self-Insurance Budgets for FY 2019-20 as follows: Adopted Proposed Budget Budget FY 2019-20 FY 2019-20 Operations & Maintenance $160,204,370 $168,216,487 Net Capital Improvement Program 137,027,258 153,377,431 Allocation for Rehabilitation/Replacement 0 200,000,000 Debt/COP Service 79,956,000 76,775,000 General Liability and Property Self-Insurance 780,000 780,000 Worker's Compensation Self Insurance 1,750,000 1,750,000 Intra-District Joint Equity Purchase/SaleM 3,500,000 5,000,000 TOTAL $383,217,628 $605,848,918 0)Cash to/from Revenue Area 14(RA14) in exchange for capital assets to/from Consolidated Revenue Area 15(RA15). 20. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 (Lorenzo Tyner) RECOMMENDATION: Adopt Resolution No. OCSD 19-06, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2019-20 for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code". 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 potentiallitigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property; (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public 06/26/2019 OCSD Board of Directors'Agenda Page 8 of 10 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) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED INITIATION OF LITIGATION (Government Code Section 54956.9(d)(4)) Number of Potential Cases: 1 Action against Sany Crane based on sale of a defective crane. (2) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED INITIATION OF LITIGATION (Government Code Section 54956.9(d)(4)) Number of Potential Cases: 4 Initiation of litigation regarding improvements interfering with pipeline easement at 8192 Willow Drive (APN 262-032-27), 8201 Denni Street (APN No. 262-032-28), 8191 Willow Drive (APN No. 262-032-37), and 8187 Willow Drive (APN No. 262- 032-38), in the city of Cypress, CA. (3) 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. 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: 0612W2019 OCSD Bead of Directors'Agenda Page 9 of 10 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 July 24, 2019 at 6:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue,Fountain Valley,California,and on the Sanitation District's website 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(ftesd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbem(alocsd.com Assistant General Manager Lorenzo Tyner (714)593-7550 Ityner[cDocsd.com Assistant General Manager Rob Thompson (714)593-7310 rthompson(docsd.com Director of Human Resources Celia Chandler (714)593-7202 cchandler(cDocsd.com Director of Engineering Kathy Miles (714)593-7365 kmillea(rpoosd.com Director of Environmental Services Lan Wibo 714 593-7450 Iwibo omd.com 06/26/2019 OCSD Board of Directors'Agenda Page 10 of 10 ITEM NO. 2 Orange County Sanitation District MINUTES BOARD MEETING May 22, 2019 O NS AHI Tgr�Oy � 9 O y 9°r � p •A�2~ �cr�N H ENV`�p� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 512 212 01 9 Minutes of Board Meeting Page 1 of 12 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 May 22, 2019 at 6:03 p.m. in the Administration Building. Director Lucille Kring 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 X Brad Avery Joy Brenner X Allan Bernstein Chuck Puckett X Doug Chaffee Michelle Steel X Robert Collacott Chad Zimmerman James M. Ferryman X Bob Ooten X Phil Hawkins Brooke Jones X Cecilia Iglesias David Penaloza Steven Jones X John O'Neill X Peter Kim Marshall Goodman X Lucille Kring Denise Barnes X Sandra Massa-Lavitt Schelly Sustarsic Mark Murphy X 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 Tim Shaw X Tom Beamish X Christina Shea Anthony Kuo X Jesus J. Silva Jan Flory X Fred Smith Sunny Park X Chad Wanks Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson, Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler, Director of Human Resources; Kathy Millea, Director of Engineering; Lan Wiborg, Director of Environmental Services; Kelly Lore, Clerk of the Board; Stephanie Barron; Jennifer Cabral; Thys DeVries; Damein Fabrizio; Al Garcia; Tom Grant; Mark Kawamoto; Tina Knapp; Laura Maravilla; Jeff Mohr; Wally Ritchie; Roya Sohanaki and Thomas Vu. 05/22/2019 Minutes of Boats Meeting Page 2 of 12 OTHERS PRESENT: Brad Hogin (General Counsel); Gary Weisberg, Woodruff, Spradlin & Smart; Roger Cerda, Alston & Bird, (Special Counsel); and Laura Kalty, Liebert Cassidy Whitmore (Special Counsel); Austin Mejia (Supervisor Chaffee's office). PUBLIC COMMENTS: None. SPECIAL PRESENTATIONS: None. REPORTS Chair Shawver announced that the City of Santa Ana appointed Cecilia Iglesias as their representative to the Board, and David Penaloza as the alternate representative. Chair Shawver reported on today's Honor Walk program and acknowledged the 2019 Honor Walk Recipients: Chris Cervellone, retired Engineer Supervisor, and Ingrid Hellebrand, a retired Senior Staff Analyst. He stated that both former employees deserved this recognition for their dedication and service. General Manager Jim Herberg reported that Senate Bill (SB) 332 by Senator Hertzberg is currently suspended, but it is anticipated to come back next year. The bill, as written, would have mandated a 50 percent reduction of baseline volume of ocean discharge by January 1, 2030, and a 95 percent reduction of baseline volume by January 1, 2040. He stated that staff will continue to meet with the author and sponsors of the bill, along with participating in CASA's SB 332 workgroup. Mr. Herberg announced the OCSD's 65th Anniversary Open House and Centrifuge Ribbon Cutting VIP event will take place on Saturday, July 27 from 9 a.m:12 p.m. He stated that the VIP event will invite elected officials throughout Orange County and local media, and that the Open House will follow. Mr. Herberg stated that it is with great regret and sorrow that he requests to adjourn the meeting in honor of Gary Prater, Principal Contracts Administrator who recently passed away and had 13 years of service with OCSD. ELECTIONS: 1. NOMINATIONS FOR CHAIRPERSON AND VICE CHAIRPERSON OF THE BOARD OF DIRECTORS (Clerk of the Board) General Counsel Brad Hogin provided instructions and facilitated the nomination and election process. 05/22/2019 Minutes of Boats Meeting Page 3 of 12 A. Mr. Hogin opened nominations for Chairperson of the Board of Directors (Election to be held at the regular June Board Meeting unless only one candidate is nominated). One nomination was received. With no further nominations, David Shawver was elected as Chairman of the Board of Directors for the 2019/20 term. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None B. Mr. Hogin opened 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). One nomination was received. With no further nominations, John Withers was elected as Vice-Chairman of the Board of Directors for the 2019/20 term. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None CONSENT CALENDAR: 2. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Meeting of the Board of Directors held on April 24, 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 05122 2019 Minutes of Boats Meeting Page 4 of 12 3. SALE OF DOIG DRIVE PROPERTY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file the amended Purchase and Sale AgreemenUescrow 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. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 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) Received and filed 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 S, 2019 D. Administration Committee Meeting of April 10, 2019 AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF APRIL 2019 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of April 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill 05/22/2019 Minutes of Boats Meeting Page 5 of 12 (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None OPERATIONS COMMITTEE: 6. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 7. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 8. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION, PROJECT NO. MP-105 (Kathy Millea) MOVED, SECONDED,AND DULY CARRIED TO: Approve renegotiated Purchase Order terms and conditions with Dresser-Rand for the assessment and standard 05/2212019 Minutes of Board Meeting Page 6 of 12 overhaul of Plant No. 2 Central Generation Steam Turbine Rehabilitation, Project No. MP-105. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 9. FERRIC CHLORIDE PURCHASE (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: 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-2019-10376D, 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. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 10. REGIONAL ODOR AND CORROSION CONTROL SERVICES (ROCCS) PROGRAM, SPECIFICATION NO. C-2017-899BD—CONTINGENCY INCREASE (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: 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 05/22/2019 Minutes of Boats Meeting Page 7 of 12 amount not to exceed $136.93/dry ton (26.91%); an estimated total amount of $2,583,000. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None ADMINISTRATION COMMITTEE: 11. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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%). AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 12. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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 05/22/2019 Minutes of Boats Meeting Page 8 of 12 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 AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 13. CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 14. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) Received and filed the Legislative Affairs Update for the month of April 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None 05/22/2019 Minutes of Boats Meeting Page 9 of 12 ABSTENTIONS: None ABSENT: None 15. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) Received and filed the Public Affairs Update for the month of April 2019. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None STEERING COMMITTEE: 16. PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET, 18429 PACIFIC STREET, 18368-18375 AND 1 841 0-1 84 36 BANDILIER CIRCLE, FOUNTAIN VALLEY (Lorenzo Tyner) MOVED, SECONDED,AND DULY CARRIED TO: 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. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None NON-CONSENT: 17. SECOND READING OF PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-53 (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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 Minutes of Boats Meeting Page 10 of 12 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. Clerk of the Board, Kelly Lore read the Ordinance title and called roll for the vote. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanks; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None 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. OCSD-50 CONCERNING CAPITAL FACILITY CAPACITY CHARGES (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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-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. Clerk of the Board Kelly Lore read the Ordinance title and called roll for the vote. AYES: Avery; Beamish (Alternate); Bernstein; Chaffee; Collacott; Harper (Alternate); Hawkins; Iglesias; Kim; Kring; Massa-Lavitt; R. Murphy; Nguyen; Nichols (Alternate); O'Neill (Alternate); Ooten (Alternate); Parker; Peterson; Shawver; Shea; Silva; F. Smith; Wanke; Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: None INFORMATION ITEMS: None. 05/22/2019 Minutes of Boats Meeting Page 11 of 12 AB 1234 DISCLOSURE REPORTS: This Rem 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). None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6, 54956.9(d)(1) & 54956.8: The Board convened in closed session at 6:19 p.m. to discuss three items. 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 7:38 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: Director Murphy thanked Assistant General Manager Rob Thompson for his recent informational presentation at the Los Alamitos City Council meeting. Director Bernstein invited everyone to the City of Tustin Street Fair& Chili Cook-off on Saturday, June 2. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None requested. ADJOURNMENT: At 7:40 p.m. Chair Shawver adjourned 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. Submitted by: Kelly A. Lore, MMC Clerk of the Board 05/22/2019 Minutes of Boats Meeting Page 12 of 12 ITEM NO. 3 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, April 24, 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, April 24, 2019 at 5:03 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 Chad Wanke, Administration Committee Resources Chair Mike Dorman, Engineering Manager Kelly Lore, Clerk of the Board COMMITTEE MEMBERS ABSENT: Stephanie Barron Tim Shaw, Member-At-Large Jennifer Cabral Rod Collins Thys DeVries Dean Fisher Al Garcia Tina Knapp Laura Maravilla Andrew Nau Adam Nazaroff Tyler Ramirez Wally Ritchie OTHERS PRESENT: Brad Hogin, General Counsel Laura Kalty, Liebert Cassidy Whitmore, Special Counsel PUBLIC COMMENTS: No public comments were provided. 0 412412 01 9 Steenng Committee Minutes Page 1 of 4 REPORTS: Chair Shawver did not provide a report. General Manager Jim Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Regular Meeting of the Steering Committee held March 27, 2019. AYES: Collacott, Kim, Parker, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shaw NON-CONSENT ITEMS 2. SELECTION OF 2019 HONOR WALK RECIPIENTS (Jim Herberg) Mr. Herberg presented a brief overview of the program and the method for selection of honorees. MOVED. SECONDED, AND DULY CARRIED TO: Approve nominated former employees Chris Cervellone and Ingrid Hellebrand as Honor Walk brick recipients for the year 2019. AYES: Collacott, Kim, Parker, Shawver, Wanks and Withers NOES: None ABSTENTIONS: None ABSENT: Shaw 3. NEWHOPE-PLACENTIA TRUNK REPLACEMENT, PROJECT NO. 2-72 (Kathy Millea) Assistant General Manager Rob Thompson provided a brief presentation regarding the item. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Adopt Resolution No. OCSD 19-XX 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. 0 4/2 412 01 9 Steering Committee Minutes Page 2 of 4 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 grantfunds up to$1.000.000. AYES: Collacott, Kim, Parker, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shaw INFORMATION ITEMS: 4. STRATEGIC PLAN DEVELOPMENT PROCESS AND TIMELINE (Rob Thompson) Mr. Thompson provided an overview of the process and development of the upcoming Strategic Plan, listed the policy goals focusing on broad policy statements and provided a proposed schedule. Mr. Herberg added that staff requests the feedback of the Directors. A brief discussion took place. CLOSED SESSION Board Chairman Shawver stated that a supplemental item was added to the Closed Session. CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION 64957.6 & 54956.9(d)(1): The Board convened in closed session at 5:26 p.m. to discuss two items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 5:55 p.m. CONSIDERATION OF ACTION, IF ANY,ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 04/24=9 Steering committee Minutes Page 3 of 4 BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:56 p.m. to the next Steering Committee meeting to be held an Wednesday, May 22, 2019 at 5:00 p.m. Submitted by: / I elyA. tl L e, IAMC Clerk of Board 04/24/2019 Steering Committee Minutes Page 4 of MINUTES OF THE SPECIAL OPERATIONS COMMITTEE MEETING Orange County Sanitation District Wednesday, May 1, 2019, 4:00 p.m. A meeting of the Operations Committee was called to order by Committee Chair Bob Collacott on Wednesday, May 1, 2019 at 4:05 p.m. in the Operations and Training Conference Room located at Plant No. 2 Operations Center, 22212 Brookhurst Street, Huntington Beach, CA 92646. The meeting was recessed to a tour of Plant No. 2 beginning at 4:05 p.m. The meeting reconvened at 5:00 p.m. Alternate Director Brooke Jones 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 Lan Wiborg, Director of Environmental Services Brooke Jones (Alternate) Tina Knapp, Assistant Clerk of the Board Steve Jones Don Cutler Lucille Kring Mike Dorman Jesus J. Silva Dean Fisher Schelly Sustarsic (Alternate) Alfredo Garcia Fred Smith Christopher Johnson John Withers, Board Vice-Chair Rebecca Long Kelly Lore COMMITTEE MEMBERS ABSENT: Jeff Mohr David Shawver, Board Chair Riaz Moinuddin Adam Nazaroff Wally Ritchie Jim Spears Don Stokes MarcoPolo Velasco Thomas Vu Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Denise Barnes, Alternate Director (Anaheim) Austin Mejia (Supervisor Chaffee's office) 0510V2019 Operations Committee SPECIAL MEETING Minutes Page 1 of PUBLIC COMMENTS: None. REPORT OF GENERAL MANAGER: General Manager Jim Herberg introduced Lan Wiborg, the newly hired Director of Environmental Services. 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 April 3, 2019. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 2. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 (Kathy Millea) MOVED SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver OW0112019 Operations Committee SPECIAL MEETING Minutes Page 2 or 6 3. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Capital Improvement Program Contract Performance Report for the period ending March 31, 2019. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic (Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 4. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION, PROJECT NO. MP-105 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic (Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 5. QUARTERLY ODOR COMPLAINT REPORT (Rob Thompson) Received and filed the Fiscal Year 2018/19 Third Quarter Odor Complaint Report. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic(Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver NON-CONSENT: 6. FERRIC CHLORIDE PURCHASE (Rob Thompson) Assistant General Manager Rob Thompson provided a PowerPoint presentation that addressed both Item Nos. 6 and 7 and reviewed the purpose and commercial considerations of Ferric Chloride, regional odor control, and collections liquid-phase. Mr. Thompson responded to a question from the Committee 05/01/2019 Operations Committee SPECIAL MEETING Minutes Page 3 of 6 regarding cost trends. At the Committee's request, staff committed to looking into chemical sustainability and responding to the Committee's request and questions. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Purchase Order Agreement with Pencco, Inc. for the purchase of liquid ferric chloride, Specification No. C-2019-1037BD, 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-2019-10371313, 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. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic (Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 7. REGIONAL ODOR AND CORROSION CONTROL SERVICES (ROCCS) PROGRAM, SPECIFICATION NO. C-2017-899BD — CONTINGENCY INCREASE (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Avery, Beamish (Alternate), Bernstein, Chaffee, Collacott, Jones (Alternate), Kring, Silva, Sustarsic (Alternate), F. Smith, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: S. Jones and Shawver 0510112019 Operations Committee SPECIAL MEETING Minutes Page 4 of 6 INFORMATION ITEMS: 8. CAPITAL IMPROVEMENT PROGRAM PROPOSED BUDGET FOR FY 2019-20 (Kathy Millea) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Capital Improvement Program Proposed Budget for FY 2019-20. Director of Engineering Kathy Millea provided a PowerPoint presentation that reviewed total CIP budget authority, new projects, top budget increases and decreases, project cancellations/closures, projected FY 2019-20 net CIP outlays by project phase, projected FY 2019-20 net CIP outlays by project driver, and 10-year net CIP outlay: $2.8 billion, and 20-year net CIP outlay: $5.5 billion. Director Steve Jones arrived at 5:34 p.m. 9. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner introduced this item and Wally Ritchie, Controller, gave a PowerPoint presentation that provided an overview of the budget, revenue, expenses, operating expenses, Capital Improvement Program, and debt service. DEPARTMENT HEAD REPORTS: Ms. Millea introduced Eros Yong who was recently promoted to Engineering Manager. CL OSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 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. 0 510112 01 9 Operations Committee SPECIAL MEETING Minutes Page 5 of 6 ADJOURNMENT Chair Collacott declared the meeting adjourned at 5:45 p.m. to the meeting to be held on Wednesday, June 5, 2019 at 5:00 p.m. Submitted by, � Tina Knapp, C C Assistant Clerk of the Board ` ~ 0 510112 0 1 9 Operations Committee SPECIAL MEETING Minutes Page 6016 MINUTES OF THE SPECIAL ADMINISTRATION COMMITTEE MEETING Orange County Sanitation District Wednesday, May 8, 2019, 4:00 p.m. A meeting of the Administration Committee was called to order by Committee Chairman Wanke on Wednesday, May 8, 2019 at 4:00 p.m. in the Operations and Training Conference Room located at Plant No. 2 Operations Center, 22212 Brookhurst Street, Huntington Beach, CA 92646. The meeting was recessed to a tour of Plant No. 2 beginning at 4:06 p.m. The meeting reconvened at 5:08 p.m. 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 Lan Wiborg, Director of Environmental Services Mark Murphy Kelly Lore, Clerk of the Board Steve Nagel Jennifer Cabral Glenn Parker Damien Fabrizio Erik Peterson Al Garcia Christina Shea Tina Knapp David Shawver, Board Chairman Jeff Mohr Wally Ritchie COMMITTEE MEMBERS ABSENT: John Swindler Andrew Nguyen Thomas Vu John Withers, Board Vice-Chairman Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Alternate Directors: Marshall Goodman (La Palma); Bob Ooten (CMSD); Patrick Harper (Fountain Valley); Dean Grose (Los Alamitos); Steve Vargas (Brea); and Carol Warren (Stanton). PUBLIC COMMENTS: None. 05/08/2019 Administration Committee SPECIAL MEETING Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg introduced Director of Environmental Services Lan Wiborg. Assistant General Manager Lorenzo Tyner announced that escrow for the sale of the Doig Drive property in Garden Grove closed on Friday, May 3rtl. REPORT OF COMMITTEE CHAIR: Committee Chair Wanke did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the April 10, 2019 Administration Committee Meeting. AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Parker, Peterson, Shawver, and Wanke NOES: None ABSTENTIONS: M. Murphy and Shea ABSENT: Nguyen and Withers 2. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISEONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: M. Murphy ABSENT: Nguyen and Withers 0 510 8/2 01 9 Adminisl ation Committee SPECIAL MEETING Minutes Page 2 of 5 3. LAPTOP AND DESKTOP COMPUTER REPLACEMENT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Award a Purchase Order Contract to Zones, Inc. for the purchase of 131 HP computers, Specification No. E-2019-1051 BD, for a total amount not to exceed $113,783; and B. Approve a contingency of$11,378 (10%). AYES: Ferryman, Iglesias (Alternate), Kim, R. Murphy, Nagel, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: M. Murphy ABSENT: Nguyen and Withers 4. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Receive and file 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 AYES: Ferryman, Iglesias (Alternate), Kim, M. Murphy, R. Murphy, Nagel, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: Nguyen and Withers 05/08/2019 Administration Committee SPECIAL MEETING Minutes Page 3of5 5. CONSOLIDATED FINANCIAL REPORT FOR THIRD QUARTER ENDED MARCH 31, 2019 (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Receive and file the Orange County Sanitation District Third Quarter Financial Report for the period ended March 31, 2019. AYES: Ferryman, Iglesias (Alternate), Kim, M. Murphy; R. Murphy, Nagel, Parker, Peterson, Shawver, Shea and Wanke NOES: None ABSTENTIONS: None ABSENT: Nguyen and Withers NON-CONSENT: None. INFORMATION ITEMS: 6. CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FY 2019-20 (Kathy Millea) Director of Engineering Kathy Millea provided a PowerPoint presentation that reviewed total Capital Improvement Program Budget authority, new projects, top budget increases and decreases, project cancellations/closures, projected FY 2019-20 net CIP outlays by project phase, projected FY 2019-20 net CIP outlays by project driver, and 10-year net CIP outlay: $2.8 billion, and 20-year net CIP outlay: $5.5 billion. 7. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner introduced this item and Wally Ritchie, Controller, gave a PowerPoint presentation that provided an overview of the budget, revenue, expenses, operating expenses, Capital Improvement Program, and debt service. Mr. Ritchie and Mr. Tyner responded to questions from the Committee. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. 05/082079 Administration Committee SPECIAL MEETING Minutes Page 4 of OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT Committee Chairman Wanke declared the meeting adjourned at 5:35 p.m. to the meeting to be held on Wednesday, June 12, 2019 at 5:00 p.m. M Kell A. e, MMC Cle of Board D5OM019 Mministration Commatee SPECIAL MEETING Minutes Page 5 of MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, May 13, 2019 at 12:00 p.m. A meeting of the Legislative and Public Affairs Committee was called to order by Committee Chair Peter Kim on Monday, May 13, 2019 at 12:00 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 Rob Thompson, Assistant General Manager Lucille Kring, Member-At-Large Lorenzo Tyner, Assistant General Manager Erik Peterson, Member-At-Large Celia Chandler, Director of Human Resources Christina Shea, Member-At-Large Kathy Millea, Director of Engineering David Shawver, Board Chair Lan Wiborg, Director of Environmental Services John Withers, Board Vice-Chair Tina Knapp, Assistant Clerk of the Board Jennifer Cabral COMMITTEE MEMBERS ABSENT: Tanya Chong None. Daisy Covarrubias Rebecca Long Tyler Ramirez OTHERS PRESENT: Brad Hogin, General Counsel Eric Sapirstein, ENS Resources (via teleconference) Eric O'Donnell, Townsend Public Affairs (TPA) Cori Williams, Townsend Public Affairs (TPA) PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: None. REPORT OF GENERAL MANAGER: None. 05/13/2019 Legislative and Public Attain committee Minutes Page 1 of 4 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. and DULY CARRIED TO: Approve minutes for the Committee meeting held on April 8, 2019. AYES: Bernstein, Kim, Peterson and Withers NOES: None ABSTENTIONS: Shea ABSENT: Kring and Shawver 2. POSITION LETTERS: ASSEMBLY BILL 405 AND SENATE BILLS 69 AND 667 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve letter of Support for Assembly Bill 405 - Sales and use taxes: exemption: water treatment (Rubio); B. Approve letter of Oppose Unless Amended for Senate Bill 69 - Ocean Resiliency Act of 2019 (Wiener); and C. Approve letter of Support for Senate Bill 667 - Greenhouse gases: recycling infrastructure and facilities (Hueso). AYES: Bernstein, Kim, Peterson, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Kring and Shawver NON-CONSENT: 3. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) Board Chairman Shawver arrived at 12:02 p.m. and Director Kring arrived at 12:30 p.m.; both arriving during Item No. 3. Committee Chair Kim welcomed Director Shea to the Legislative and Public Affairs Committee. Senior Public Affairs Specialist Rebecca Long indicated that with the guidance of this Committee, staff signed a California Association of Sanitation Agencies (CASA) joint coalition letter to Senator Stern in support of his goal to appropriate funds for research relating to fire ravaged land reclamation using biosolids. The request includes a State investment of $200,000. A successful demonstration project will give important insights into the potential for utilizing California sourced biosolids to reclaim and stabilize wildfire burn scars in the aftermath of catastrophic wildfire events. 05/13/2019 Legislative and Public Allain Committee Minutes Page 2 of 4 Ms. Long also indicated that staff is currently monitoring Senate Bill (SB) 332 by Senator Hertzberg that, in its current state, would mandate a 50% reduction of baseline volume by January 1, 2030, and a 95% reduction of baseline volume by January 1, 2040. As part of this process, staff met with the sponsor of the bill, the Natural Resources Defense Council (NRDC). Additionally, the Sanitation District is participating in the CASA SB 332 workgroup helping to create a framework for the author that represents water and wastewater agencies as well as the work done by the Sanitation District. Staff is working with TPA to finalize a response letter to the NRDC. Ms. Long also indicated that DC advocacy days are schedule for June 17-19, 2019. Eric Sapirstein provided a PowerPoint presentation and a brief overview of his monthly report which included: infrastructure initiatives, permit terms legislation, and letters of support for key legislation. Eric O'Donnell, TPA, provided a PowerPoint presentation with information on: current legislative schedule, the Governor's May revise to the budget, and an update on 2019 legislation. Mr. O'Donnell reviewed the current status of SB 332 (Hertzberg)—Ocean Discharge and reviewed the meeting that was had to discuss the bill during the Sacramento advocacy trip and reviewed bill proponents and components and the details of the letter that was sent outlining suggested improvements. Mr. O'Donnell also reviewed the status of AB 1672 (Bloom) — Flushable Wipes. Board Vice-Chair Withers requested an update on the economics surrounding the food digester project at Plant No. 2 as the fee discussion develops. Committee Chair Kim deemed the Legislative Affairs Update for the month of April 2019 received and filed. 4. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF APRIL 2019 (Jim Herberg) Jennifer Cabral, Public Affairs Supervisor, provided a PowerPoint presentation which reviewed outreach efforts made and meetings attended over the last month. Ms. Cabral provided a brief description of upcoming events including information on OCSD's 651h Anniversary Open House which will take place on Saturday, July 27 from 9:00 a.m. to 12:00 p.m., along with the Centrifuge Ribbon Cutting event being held at 8:30 a.m. on this same day. Ms. Cabral then announced recent awards received by the agency. Board Chair Shawver expressed interest in information pertaining to the agencies invited to participate in the Open House, specifically SAWPA. Committee Chair Kim deemed the Public Affairs Update for the month of April 2019 received and filed. 05/1 312 01 9 Legislative and Public Affai s Committee Minutes Page 3 of 4 INFORMATION ITEMS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Committee Chair Kim and Board Chairman Shawver thanked staff for the recent tour of Plant No. 2. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Committee Chair Kim declared the meeting adjourned at 1:00 p.m.to the next Legislative and Public Affairs Committee meeting, Monday, June 10, 2019 at 12:00 p.m. Submitted by: T KP °�' Tina c Assistant Clerk of the Board 0 5/1 312 01 9 Legislative and Public Affairs Committee Minutes Page 4 of 4 BOARD OF DIRECTORS Meeting Date TOad. /26/19mar. -- 06 AGENDA REPORT learn Number Item Number a 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 MAY 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of May 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 May 31, 2019. RELEVANT STANDARDS • CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following affachment(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 May 31, 2019 Page 1 of 1 U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP ld E.plarati.n Units Price Net Cash Amt Gnat Gain/L.ss ACQUISITIONS 05/01/2019 31848V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 28,525.0000 1.000000 -28,525.00 28,525.00 0.00 05/02/2019 31946VS67 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 17,655.5600 1.000000 -17,655.56 17,655.56 0.00 05/022019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 39,422.4900 1.000000 .39,422.49 39.422.49 0.00 05/03/2019 31 B46V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 59,929.3800 1.000000 -59,929.38 59.929.38 0.00 05/06/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 6,400,000.0000 1,000000 -6,400,000.00 6,400,000.00 0.00 05/07/2019 06406RAE7 PURCHASED PAR VALUE OF BANK OF NV MTN 2.950% 1/29/23/PERSHING 1,000,000.0000 1.003490 -1,003,490.00 1,003,490.00 0.00 LLC/1,000,000 PAR VALUE AT 100,349% 05/07/2019 46625HRL6 PURCHASED PAR VALUE OF JP MORGAN CHASE CO 2.700% 5/18/23/SUNTRUST 1,000,000.0000 0.989470 .989,470.00 989,470.00 0.00 ROBINSON HUMPHREY,IN/1,000,000 PAR VALUE AT 98.947% 05/07/2019 912828387 PURCHASED PAR VALUE OF U S TREASURY NT 2.000% 1/3120/MLPFS INC/FIXED 15,000,000.0000 0.997031 -14,955.468.75 14,955,468.75 0.00 INCOMEI15,000,000 PAR VALUE AT 99.703125% 05/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 9,964,973.2400 1,000000 -9,964,973.24 9,964,973.24 0.00 05/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 9,986,334.4400 1.000000 -9,986,334.44 9,986,334.44 0.00 05/10/2019 912796RU5 PURCHASED PAR VALUE OF U S TREASURY BILL 6/13/19/NOMURA 10,000,000.0000 0.997755 -9,977,545.83 9,977,545.83 0.00 SECURITIES INTERNATIONA/10,000,000 PAR VALUE AT 99.7754583% 05/13/2019 09247XAL5 PURCHASED PAR VALUE OF BLACKROCK INC 3.500% 3118124/HILLTOP 1,000,000.0000 1.036330 -1,036,330.00 1,036.330.00 0.00 SECURITIES INC.I1,000,000 PAR VALUE AT 103.633% 05/13/2019 458140BD1 PURCHASED PAR VALUE OF INTEL CORP 2.875% 5A1124/BARCLAYS CAPITAL 5,000,000.0000 1,005180 -5,025,900.00 5,025,900.00 0.00 INC.FIXED IN/5,000,000 PAR VALUE AT 100.518% 05/13/2019 31946VS67 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 24,659.3800 1.000000 -24,659.38 24,659.38 0.00 05/14/2019 40428HPR7 PURCHASED PAR VALUE OF HSBC USA INC MTN 2.350% 3/05/20 M.P.MORGAN 2,500,000.0000 0.997320 .2,493,300.00 2,493.300.00 0.00 SECURITIES LLC2,500,000 PAR VALUE AT 99.732% 05/15/2019 31B46V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 923,230.0600 1.000000 -923,230.06 923.230.06 0.00 05/152019 31946V567 PURCHASED UNITS OF FIRST AM GOV-OB FD CL Z 149,786.8200 1.000000 -149,786.82 149,786.82 0.00 05/16/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 26,250.0000 1.000000 -26,250.00 26,250.00 0.00 05/172019 31846V567 PURCHASED UNITS OF FIRST AM DOW OB FD CL Z t6,875.0000 1.000000 46,875.00 46.875.00 0.00 05/20/2019 31846V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 517,797.2900 1.000000 -517,797.29 517.797.29 0.00 05202019 31846V567 PURCHASED UNITS OF FIRST AM GOV7 OB FD CL Z 6,613.2800 1.000000 6,613.28 6,613.28 0.00 0521/2019 037833CU2 PURCHASED PAR VALUE OF APPLE INC 2.850% 5/1124/PERSHING 3,000,000.0000 1.005920 -3,017,760.00 3,017,760.00 0.00 LLC/3,000,000 PAR VALUE AT 100,592% 05/212019 31 B46V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 10,000,000.0000 1.000000 -10,000,000.00 10,000.000.00 0.00 05/212019 31 B46V567 PURCHASED UNITS OF FIRST AM GOW OB FD CL Z 9,759.5700 1.000000 -9,759.57 9.759.57 0.00 0522/2019 912828H52 PURCHASED PAR VALUE OF U S TREASURY NT 1.250% 1/31/20/NOMURA 5,000,000.0000 0,991914 4,959,570.31 4,959,570.31 0.00 SECURITIES INTERNATIONA/5,000,000 PAR VALUE AT 99.1914062% 0522/2019 9128282X7 PURCHASED PAR VALUE OF U S TREASURY NT 1.375% 9/30/19 ANELLS FARGO 10,000,000.0000 0.996250 -9,962,500.00 9,962,500.00 0.00 SECURITIES,LLC/10,000,000 PAR VALUE AT 99,625% 1 of 8 U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss OW23/2019 808513AT2 PURCHASED PAR VALUE OF CHARLES SCHWAB CORP 2.650% 1/25/23/CREDIT 6,750,000.0000 0.996960 -6,729,480.00 6,729,480.00 0.00 SUISSE SECURITIES(USA}/6,750,000 PAR VALUE AT 99.696% 05/23/2019 94974BGF1 PURCHASED PAR VALUE OF WELLS FARGO MTN 2.150% 1/30/20 NJELLS FARGO 1,00g000.0000 0.996600 -996,600.00 996.600.00 0.00 SECURITIES,LLC/1,000,000 PAR VALUE AT 99.66% 05/28/2019 31 S46V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 30,786.0300 1.000000 -30,786.03 30.786.03 0.00 05/28/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 21,691.9100 1.000000 -21,691.91 21,691.91 0.00 05/30/2019 89114MM20 PURCHASED PAR VALUE OF TORONTO DOMINION C D 2.470% 9/30119/RBC CAPITAL 2,000,000.0000 1.000033 -2,000,066.62 2,000,066.62 0.00 MARKETS,LLC/2,000,000 PAR VALUE AT 100.003331 % 05/30/2019 912796VH9 PURCHASED PAR VALUE OF U S TREASURY BILL 6/25119 NVELLS FARGO 5,000,000.0000 0.998337 4,991,686.50 4,991.686.50 0.00 SECURITIES,LLC/5,000,000 PAR VALUE AT 99.83373% 05/30/2019 31846V567 PURCHASED UNITS OF FIRST AM COW OB FD CL Z 56,250.0000 1.000000 -56,250.00 56,250.00 0.00 05/31/2019 31846V567 PURCHASED UNITS OF FIRST AM GOUT OF FD CL Z 435,000.0000 1,000000 -435,000.00 435,000,00 0,00 TOTAL ACQUISITIONS 106.995.539.4500 -106,884,707.46 106.884,707.46 0.00 DISPOSITIONS 05/07/2019 912796VM MATURED PAR VALUE OF U S TREASURY BILL 5/0 711 9 12,000,000 PAR VALUE -12,000,000.0000 1.000000 11,989,747.77 -11,989,747.77 0.00 AT 100% 05/07/2019 912796VA4 MATURED PAR VALUE OF U S TREASURY BILL 5/07/1920,000,000 PAR VALUE -20,000,000.0000 1.000000 19,982,912.94 -19,982,912.94 0.00 AT 100% 05/07/2019 912796VA4 MATURED PAR VALUE OF U S TREASURY BILL 5/07/195,000,000 PAR VALUE 5,000,000.0000 1.000000 4,986,733.33 4,986,733.33 0.00 AT 100% 05/10/2019 31846V567 SOLD UNITS OF FI RST AM GOVT OB FD CL Z -9,977,545.8300 1.000000 9,977,545.83 .9,977,545.83 0.00 OW13/2019 31846V567 SOLD UNITS OF FI RST AM GOUT OB FD CL Z -6,020,975.8300 1.000000 6,020,975.83 -6,020,975.83 0.00 05/14/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,504,560.4200 1.000000 2,504,560.42 -2,504,560.42 0.00 05/15/2019 31348SWZ3 PAIDDOWNPARVALUEOFFHLMC#786064 4.677% 1/01128APRIL FHLMC -16.5800 0.000000 16.58 -16.18 0.40 DUE 5115119 05/15/2019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.587% 8/1SQ2 452.8500 0.000000 452.85 453.32 .0.47 OW15/2019 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15/20 -70,674.2000 0.000000 70,674.20 -70,672.83 1.37 05/15/2019 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4/15/20 CIAO FINAL -9,026.7700 0.000000 9,026.77 -9,025.35 1.42 PAYDOWN 05/15/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 -66,267.1500 0.000000 66,267.15 -66,262.30 4.85 05/15/2019 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -186,540.1400 0.000000 186,540.14 .186,161.23 378.91 OW15/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15121 -92,045.7800 0.000000 92,045.78 -91,308.70 737.08 05/15/2019 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.500% 9/15/21 -139,671,4700 0.000000 139,671.47 -138,798.52 872.95 05/15/2019 89238BABB PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100%10/15/20 -373,959.9000 0.000000 373,959.90 -373,921.68 38.22 05/20/2019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 11#080023 4.125%12MG126 APRIL GNMA .689.8500 0.000000 689.85 .701.25 .11.40 DUE 5/20/19 2of8 U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss 05/20/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A I 1#080088 3.625% 6/20/27 APRIL GNMA DUE -185.1500 0,000000 185.15 -189,20 -4.05 5/20119 05/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#080395 3.625% 4/20130 APRIL GNMA DUE .138.2900 0.000000 138.29 -137.04 1.25 5/20/19 05/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 3.625% 5/20/30 APRIL GNMA DUE -870.9900 0.000000 870.99 -862.14 8.85 5/20/19 05/20/2019 36225DCB8 PAID DOWN PAR VALUE OF G N M A 11#080965 3.750% 7/20/34 APRIL GNMA DUE -927,7300 0.000000 927.73 -927.15 0.58 5120/19 05/20/2019 43814RAGO PAID DOWN PAR VALUE OF HONDA AUTO 1.210%12118120 -152,081.3500 0.000000 152,081.35 -150,412.02 1,669.33 05/20/2019 43814PAS6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21/20 CMO FINAL -6,613.2800 0.000000 6,613.28 .6,612.69 0.59 PAYDOWN 05/20/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -190,467.8500 0.000000 190,467.85 -187,"7.15 3,020.70 05/21/2019 912796VCO MATURED PAR VALUE OF U S TREASURY BI LL 5/21/1910,000,000 PAR VALUE -10,000,000.0000 1.000000 9,982,197.25 -9,982,197.25 0.00 AT 100% 05/21/2019 31846V567 SOLD UNITS OF FI RST AM GOVT OB FD CL Z -3,020,135.0000 1.000000 3,020,135.00 -3,020,135.00 0.00 05/22/2019 31846VW7 SOLD UNITS OF FI RST AM GOVT OB FD CL Z -14,9W,770.1900 1.000000 14,960,770.19 -14,%0,770.19 0.00 05/23/2019 31846V567 SOLD UNITS OF FI RST AM GOVT OB FD CL Z -1,003,348.6100 1.000000 1,003,348.61 -1,003,348.61 0.00 05/23/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z $788,111.2500 1.000000 6,788,111.25 6,788,111.25 0.00 05/28/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25/20 -8,972.3300 166.449239 8,972.33 -9,481.23 -508.90 05/28/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -14,670.6000 0.000000 14,670.60 .16.614.45 -1,943.85 05/28/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4101/28 APRIL FNMA DUE -130.5700 0.000000 130.57 -138.09 -7.52 5/26/19 05/28/2019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357969 5,000% 9/01135 APRIL FNMA DUE -1,214.1400 0.000000 1,214.14 -1,305.20 -91.06 5/25/19 05/28/2019 31381PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/01/20 APRIL FNMA DUE -734.1300 0.000000 734.13 -718.24 15.89 5/25/19 05/28/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6101136 APRIL FNMA DUE -1794.9100 0.000000 1794.91 -1,929.53 .134.62 5/25/19 05/28/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01133 APRIL FNMA DUE -8.2800 0.000000 8.28 -8.90 -0.62 5/2S/19 05/28/2019 31406POY8 PAID DOWN PAR VALUE OF F N M A#815971 5,000% 3/01135 APRIL FNMA DUE -5,727,7400 0.000000 5,727.74 -6,157.32 429.58 5/25/19 05/28/2019 31406XWTS PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2/01135 APRIL FNMA DUE -433.9600 0.000000 433.96 430.57 3.39 5/25/19 05/28/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5.000% 7101135 APRIL FNMA DUE .245.9700 0.000000 246.97 .264.42 .18.45 5/25/19 05/28/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7101/36 APRIL FNMA DUE -3,316.0100 0.000000 3,316.01 -3,564.71 -248.70 5/2S/19 3 of U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIPId Explanation Unit� Pri�� N�t Ca�h A.t Cost GainlLoss 05128/2019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 APRIL FNMA DUE -128.8800 0,000000 128.88 -136.30 -7.42 5/25119 05/28/2019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 APRIL FNMA DUE .242.6700 0.000000 242.67 -256.65 -13.98 5/25/19 05/28/2019 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125/41 -2,694.2000 0.000000 2,694.20 -2,693.36 0.84 05/30/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -6,991,890.3400 1.000000 6,991,890.34 -6,991,890.34 0.00 TOTAL DISPOSITIONS A9,598.281.1900 99,539,872.48 419.536.536.48 3,330.00 OTHER TRANSACTIONS 05/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOUT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 17,655.56 0.00 0.00 413 012 01 9 INTEREST FROM 411/19 TO 4/30/19 05/01/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CLZ UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 39,422.49 0.00 0.00 4/30/2019 INTEREST FROM 4/1/19 TO 4130/19 05/01/2019 64971 MSE8 INTEREST EARNED ON NEWYORK CITY NY 4.075%11/01Y20$1PVON 0.0000 0.000000 28,525.00 0.00 0.00 1400000.0000 SHARES DUE 5/1/2019 05/03/2019 00440EAU1 INTEREST EARNED ON ACE INA HOLDINGS 2.875%11/03/22$1 PV ON 4169000.0000 0.0000 0.000000 59,929.38 0.00 0.00 SHARES DUE 5/3/2019 05/06/2019 CASH RECEIPT INCOMING WIRES RECEIVED FROM BANC OF CALIFORNIA 0.0000 0.000000 6,400,000.00 0.00 0.00 05/07/2019 912796VA4 INTEREST EARNED ON U S TREASURY BILL 5I07/19$1 PV ON 12000000.0000 0.0000 0.000000 10,252.23 0.00 0.00 SHARES DUE W7/2019 12,000,000 PAR VALUE AT 100% 05/07/2019 912796VA4 INTEREST EARNED ON U S TREASURY BILL 5/07119$1 PV ON 20000000.0000 0.0000 0.000000 17,087.06 0.00 0.00 SHARES DUE 577/2019 20,000,000 PAR VALUE AT 100% 05/07/2019 912796VA4 INTEREST EARNED ON U S TREASURY BILL 5107/19$1 PV ON 5000000.0000 0.0000 0.000000 13,266.67 0.00 0.00 SHARES DUE 5/7/2019 5,000,000 PAR VALUE AT 100% 05/07/2019 06406RAE7 PAID ACCRUED INTEREST ON PURCHASE OF BANK OF NY MTN 2.950% 1/29/23 0.0000 0.000000 -8,030.56 0.00 0.00 05/07/2019 46625HRL6 PAID ACCRUED INTEREST ON PURCHASE OF JP MORGAN CHASE CO 2.700% 0.0000 0.000000 -12,675.00 0.00 0.00 5/18/23 05/07/2019 9128283S7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.000% 1131/20 0.0000 0.000000 -79,558.01 0.00 0.00 05/13/2019 912828WUG BOOK VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 29744.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 05/13/2019 912828WUG FED BASIS OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 29744.00 UNITS 0.0000 0.000000 0.00 29.744.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 05/13/2019 369550BE7 INTEREST EARNED ON GENERAL DYNAMICS 3.000% 5/11121$1 PV ON 0.0000 0.000000 47,400.00 0.00 0.00 3160000.0000 SHARES DUE 5/11/2019 05/13/2019 4581XOCX4 INTEREST EARNED ON INTER AMER DEV BK 1,625% 5/12120$1 PV ON 0.0000 0.000000 24,659.38 0.00 0.00 3035000.0000 SHARES DUE 5/1 M019 05/13/2019 09247XAL5 PAID ACCRUED INTEREST ON PURCHASE OF BLACKROCK INC 3.500% 3/18/24 0.0000 0.000000 -5,347.22 0.00 0.00 05/13/2019 4581401501 PAID ACCRUED INTEREST ON PURCHASE OF INTEL CORP 2.875% 5/11/24 0.0000 0.000000 .798.61 0.00 0.00 4 of U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP ld Explanation Unit� Price Net Cash Amt Cost GainlLoss OB/13/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 29744.0000 29,744.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 05/13/2019 912828WUG STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 29744.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 05/14/2019 4W28HPR7 PAID ACCRUED INTEREST ON PURCHASE OF HSBC USA INC MTN 2.350% 3105/20 0.0000 0.000000 -11,260.42 0.00 0.00 05/15/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9115122$1 PV ON 10084.2400 0.0000 0.000000 10,094.24 0.00 0.00 SHARES DUE 5/15/2019$0.00161/PV ON 6,270,000.00 PV DUE 5115119 05/15/2019 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22$1 PV ON 0.0000 0.000000 60,000.00 0.00 0.00 4000000.0000 SHARES DUE 5/15/2019 05/15/2019 31348SW23 INTEREST EARNED ON F H L M C 97860" 4.677% 1/01/28$1 PV ON 7.5300 SHARES 0.0000 0.000000 7.53 0.00 0.00 DUE 5/15/2019 MARCH FHLMC DUE 5/15/19 05/15/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.587% 8/15/32$1 PV ON 33.2400 0.0000 0.000000 33.24 0.00 0.00 SHARES DUE 5/15/2019$0.002991PV ON 10,063.50 PV DUE 5/15/19 05/15/2019 438140AC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 167,8200 0.0000 0.000000 167.82 0.00 0.00 SHARES DUE 5/15/2019$0.00116/PV ON 144,882.28 PV DUE 5115/19 05/15/2019 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 10.2300 0.0000 0.000000 10.23 0.00 0.00 SHARES DUE 5/15/2019$0.00113/PV ON 9,026.77 PV DUE 5A5119 05/15/2019 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 5/15/2019$0.00124/PV ON 1,151,000.00 PV DUE 5/15119 05/15/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 997.9300 0.0000 0.000000 997.93 0.00 0.00 SHARES DUE 5/15/2019$0.001521PV ON 657,973.36 PV DUE 5115/19 05/15/2019 47788CABB INTEREST EARNED ON JOHN DEERE OWNER 2.420%10115/20$1 PV ON 1856,8000 0.0000 0.000000 1,856.80 0.00 0.00 SHARES DUE 5/15/2019$0.00202/PV ON 920,725.46 PV DUE 5115/19 05/15/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18Y22$1 PV ON 2970.3400 0.0000 0.000000 2,970.34 0.00 0.00 SHARES DUE 5/15/2019$0.00222/PV ON 1,340,000.00 PV DUE 5/15/19 05/15/2019 47789JA62 INTEREST EARNED ON JOHN DEERE OWNER 2.85O%12/15121 $1 PV ON 7754.3800 0.0000 0.000000 7,754.38 0.00 0.00 SHARES DUE 5/15/2019$0.00238/PV ON 3,265,000.00 PV DUE 5/15A9 05/15/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11115/22$1 PV ON 11883.6800 0.0000 0.000000 11,883.68 0.00 0.00 SHARES DUE 5/15/2019$0.00257/PV ON 4,630,000.09 PV DUE W15/19 05/15/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 744,8700 0.0000 0.000000 744.87 0.00 0.00 SHARES DUE 5/15/2019$0.00110/PV ON 677,154.38 PV DUE 5115/19 05/15/2019 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21$1 PV ON 602.4900 0.0000 0.000000 602.49 0.00 0.00 SHARES DUE 5/15/2019$0.00125/PV ON 481,991.83 PV DUE 5115/19 05/15/2019 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 5/15/2019$0.00146/PV ON 2,625,000.00 PV DUE 5/15A9 OrW5/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3115/23$1 PV ON 9078.0000 0.0000 0.000000 9,078.00 0.00 0.00 SHARES DUE 5/15/2019$0.00255/PV ON 3,560,000.00 PV DUE W15/19 05/15/2019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 4317.8500 0.0000 0.000000 4,317.85 0.00 0.00 SHARES DUE 5/15/2019$0.00175/PV ON 2,467,344.64 PV DUE 5115119 5 of U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss 05/15/2019 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 5/15/2019$0.00236IPV ON 3,615,000.00 PV DUE 5/15/19 05/15/2019 913366EJ5 INTEREST EARNED ON UNIV OF CALIFORNIA 5.035% 5/15/21 $1 PV ON 400000.0000 0.0000 0.000000 10,070.00 0.00 0.00 SHARES DUE 5/15/2019 0&16/2019 166764BG4 INTEREST EARNED ON CHEVRON CORP 2.100% 5116121 $1 PV ON 2500000.0000 0.0000 0.000000 26,250.00 0.00 0.00 SHARES DUE 5/16/2019 05/17/2019 3137EAEKI INTEREST EARNED ON F H L M C M T N 1,875%11/17/20$1 PV ON 5000000,0000 0.0000 0.000000 46,875.00 0.00 0.00 SHARES DUE 5/17/2019 05/20/2019 36225CAZ9 INTEREST EARNED ON G N M A 11#080023 4.125%12120/26$1 PV ON 60.5600 0.0000 0.000000 60.56 0.00 0.00 SHARES DUE 5/20/2019 APRIL GNMADUE 5120/19 05/20/2019 36225CC20 INTEREST EARNED ON G N M A I 1#080088 3.625% 6/20/27$1 PV ON 51.7700 0.0000 0.000000 51.77 0.00 0.00 SHARES DUE 5/20/2019 APRIL GNMADUE 5I20/19 05/20/2019 36225CNM4 INTEREST EARNED ON G N M A 11#080395 3.625% 4/20130$1 PV ON 21.2000 0.0000 0.000000 21.20 0.00 0.00 SHARES DUE 5/20/2019 APRIL GNMADUE 5120/19 05/20/2019 36225CN28 INTEREST EARNED ON G N M A 11#080408 3,625% 5/20/30$1 PV ON 168.2700 0.0000 0.000000 168.27 0.00 0.00 SHARES DUE 5/20/2019 APRIL GNMADUE 5120/19 05/20/2019 36225DCB8 INTEREST EARNED ON G N M A 11#080965 3.750% 7/20/34$1 PV ON 152.1000 0.0000 0.000000 152.10 0.00 0.00 SHARES DUE 5/20/2019 APRIL GNMADUE 5120/19 05/20/2019 43814RAC0 INTEREST EARNED ON HONDA AUTO 1.210%1 V18120$1 PV ON 1253.1500 0.0000 0.000000 1,253.15 0.00 0.00 SHARES DUE 5/18/2019$0.00101IPV ON 1,242,798.16 PV DUE 5/18/19 05/20/2019 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1/21/20$1 PV ON 8.6500 SHARES 0.0000 0.000000 8.65 0.00 0.00 DUE 5/18/2019$0.00131/PV ON 6,613.28 PV DUE W18119 05/20/2019 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 5/18/2019$0.001491PV ON 3,090,000.00 PV DUE 5/18119 05/20/2019 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 5/18/2019$0.00229IPV ON 4,395,000.00 PV DUE 5/18/19 05/20/2019 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 5/18/2019$0.00251IPV ON 1,710,000.00 PV DUE 5/18/19 05/20/2019 46625HRL6 INTEREST EARNED ON JP MORGAN CHASE CO 2.700% 5118/23$1 PV ON 0.0000 0.000000 67,500.00 0.00 0.00 5000000.0000 SHARES DUE 5/18/2019 05/20/2019 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5118/23$1 PV ON 2000000,0000 0.0000 0.000000 28,000.00 0.00 0.00 SHARES DUE 5/18/2019 05/20/2019 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5/20/20$1 PV ON 5000000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 5/20/2019 05/21/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8M2/22$1 PV ON 9759.5700 0.0000 0.000000 9,759.57 0.00 0.00 SHARES DUE 5/21/2019$0.00246IPV ON 3,970,000.00 PV DUE 5/21/19 05/21/2019 912796VCO INTEREST EARNED ON U S TREASURY BILL 5121119$1 PV ON 10000000.0000 0.0000 0.000000 17,802.75 0.00 0.00 SHARES DUE 5/21/2019 10,000,000 PAR VALUE AT 100% 05/21/2019 037833CU2 PAID ACCRUED INTEREST ON PURCHASE OF APPLE INC 2.850% 5/11/24 0.0000 0.000000 -2,375.00 0.00 0.00 6 Of U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss 0&22/2019 912828H52 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.250% 1131120 0.0000 0.000000 -19,164.36 0,00 0.00 05/22/2019 9128282X7 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.375% 9130119 0.0000 0.000000 .19,536.52 0.00 0.00 05/23/2019 808513AT2 PAID ACCRUED INTEREST ON PURCHASE OF CHARLES SCHWAB CORP 2.650% 0.0000 0.000000 -58,631.25 0.00 0.00 1/25/23 05/23/2019 94974BGF1 PAID ACCRUED INTEREST ON PURCHASE OF WELLS FARGO MTN 2.150% 1/30/20 0.0000 0.000000 6,748.61 0.00 0.00 05/28/2019 03215PFN4 INTEREST EARNED ON AMRESCO 3.75831% 6/25129$1 PV ON 418.8700 0.0000 0.000000 418.87 0.00 0.00 SHARES DUE 5/25/2019$0.003131PV ON 133,743.29 PV DUE 5125/19 05/28/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 3163.6700 0.0000 0.000000 3,163.67 0.00 0.00 SHARES DUE 5/25/2019$0.00354IPV ON 893,062.65 PV DUE 5125/19 05/28/2019 313MJY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 3979.4300 0.0000 0.000000 3,979.43 0.00 0.00 SHARES DUE 5/25/2019$0.00542/PV ON 734,654.42 PV DUE 5125/19 05/28/2019 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 57.8200 SHARES 0.0000 0.000000 57.82 0.00 0.00 DUE 5/25/2019 APRIL FNMA DUE 5125/19 05/28/2019 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01135$1 PV ON 447.3900 0.0000 0.000000 447.39 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 965.9400 0.0000 0.000000 965.94 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01136$1 PV ON 414.1400 0.0000 0.000000 414.14 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 7.6100 SHARES 0.0000 0.000000 7.61 0.00 0.00 DUE 5/25/2019 APRIL FNMA DUE 5125/19 05/28/2019 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01135$1 PV ON 722.9600 0.0000 0.000000 722.96 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01136$1 PV ON 438.5900 0.0000 0.000000 438.59 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01135$1 PV ON 83.3000 SHARES 0.0000 0.000000 83.30 0.00 0.00 DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 818.6800 0.0000 0.000000 818.68 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 41.2400 0.0000 0.000000 41.24 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 67.5300 0.0000 0.000000 67.53 0.00 0.00 SHARES DUE 5/25/2019 APRIL FNMA DUE 5/25/19 05/28/2019 313970REO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25141 $1 PV ON 536.3800 0.0000 0.000000 536.38 0.00 0.00 SHARES DUE 5/25/2019$0.00263/PV ON 203,907.35 PV DUE 5125/19 05/29/2019 912828WUG BOOK VALUE OF U S TREASURY I P S 0,125% 7115/24 ADJUSTED BY 32240.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 05/29/2019 912828WUG FED BASIS OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 32240.00 UNITS 0.0000 0.000000 0.00 32,240.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 70f8 U.S. Bank Transaction History 05/01/2019 Thru 05/31/2019 Entry Date CUSIP Id Explanation Unit� Price Net Cash Amt Cost GainlLoss OW29/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 32240.0000 32,240.0000 0.000000 0.00 0.00 0.00 UNITS INCREASE TO ADJUST FOR CHANGE IN CPI 05/29/2019 912828WUG STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 32240.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 05/30/2019 3135GOF73 INTEREST EARNED ON F N M A 1.500%11/30/20$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 5/30/2019 05/30/2019 89114MM20 PAID ACCRUED INTEREST ON PURCHASE OF TORONTO DOMINION C D 2,470% 0.0000 0.000000 -137.22 0.00 0.00 9/30/19 05/31/2019 912828XE5 INTEREST EARNED ON U S TREASURY NT 1.500% 5131120$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 5/31/2019 05/31/2019 9128281361 INTEREST EARNED ON U S TREASURY NT 1.5ffl 11/30/19$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00 SHARES DUE 5/31/2019 05/31/2019 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5131/23$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00 SHARES DUE 5/31/2019 05/31/2019 912828U65 INTEREST EARNED ON U S TREASURY NT 1,750%11/30/21$1 PV ON 7000000.0000 0.0000 0.000000 61,250.00 0.00 0.00 SHARES DUE 5/31/2019 05/31/2019 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000%11/30/22$1 PV ON 8000000.0000 0.0000 0.000000 80,000.00 0.00 0.00 SHARES DUE 5/31/2019 05/31/2019 9128281-57 INTEREST EARNED ON U S TREASURY NT 2.125%11/30/23$1 PV ON 0.0000 0.000000 159,375.00 0.00 0.00 15000000,0000 SHARES DUE 5/31/2019 TOTAL OTHER TRANSACTIONS 61.984.0000 7,344,834.98 61,984.00 0.00 8 Of OPERATIONS COMMITTEE Melting D310 TOBE.Of Dir. 06/OS119 O6/26/19 AGENDA REPORT ItemNumber Item Number z 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 CONDENSER REPAIR, PROJECT NO. MP-257 GENERAL MANAGER'S RECOMMENDATION A. Approve a service contract to Manley's Boiler LLC for Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257, Specification No. S-2019-101913D, for an amount not to exceed $289,900; and B. Approve a contingency of$57,980 (20%). BACKGROUND The Orange County Sanitation District (Sanitation District) operates eight Central Generation engines at its two treatment plants. The engines generate approximately two-thirds of the Sanitation District's electric demand and the majority of the process heat demand for sludge digestion. Plant No. 2 includes a steam turbine to convert waste heat into electrical energy. The steam turbine system includes a stand-alone condenser unit essential for operation. The condenser is not made by the manufacturer of the steam turbine. In May 2019, the Board approved modifications to terms and conditions for overhaul of the steam turbine. That overhaul does not address the condenser unit and is unrelated to this action. RELEVANT STANDARDS • Use all practical and effective means for resource recovery • Maintain a proactive asset management program PROBLEM The steam turbine condenser has an internal leak, resulting in cooling water entering the closed-loop boiler water circuit. Staff inspected the condenser and found severe corrosion beyond repair. PROPOSED SOLUTION Approve a service contract for the replacement, installation, and disposal of the appropriate components of the steam turbine condenser. Page 1 of 3 TIMING CONCERNS Until the overhaul of the condenser is complete, the steam turbine will not be operational. 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 N/A ADDITIONAL INFORMATION The Sanitation District advertised for bids on February 8, 2019. Two sealed bids were received on April 2, 2019. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding a service contract to the lowest responsive and responsible bidder, Manley's Boiler LLC, for the completion of Plant No. 2 Central Generation Steam Turbine Condenser Repair, Project No. MP-257. Summary information on the bid opening for this project is as follows: Bidder Amount of Bid Manley's Boiler LLC $289,900 California Boiler, Inc. $545,563 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. Page 2 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation would be funded under the Repairs and Maintenance line item for Division 880 (Fiscal Year FY 2018-19 and 2019-20 Budget, Section 6, Page 100), and the available funding is sufficient for this action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Service Contract ML:dm Page 3 of 3 SERVICE CONTRACT Plant 2 Can Gen Steam Turbine Condenser Repair(MP-257) Specification No. S-2019-1019BD THIS CONTRACT 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 Manley's Boiler LLC with a principal place of business at 7931 Whitaker Street, Buena Park, CA 90621-2932 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD desires to temporarily retain the services of Contractor for the Plant 2 Can Gen Steam Turbine Condenser Repair hereinafter referred to as "Services" as described in Exhibit"A"; and WHEREAS, OCSD has chosen Contractor to conduct Services in accordance with Ordinance No. OCSD-52; and WHEREAS, on June 26, 2019, the Board of Directors of OCSD, by minute order, authorized execution of this Contract between OCSD and Contractor; and WHEREAS, Contractor is qualified by virtue of experience, training, and expertise to accomplish such Services, NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the Contractor. The terms and conditions herein exclusively govern the purchase of Services as described in Exhibit"A". 1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibit"A" Scope of Work Exhibit"B" Bid Exhibit"C" Acknowledgement of Insurance Requirements Exhibit"D" OCSD Safety Standards (incorporated by reference) Exhibit "E" Human Resources Policies (incorporated by reference) Exhibit "F" Labor and Material Bond, and Performance Bond 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect Orange County Sanitation District 1 of 10 Specification No. S-2019-1019BD Version 120518 the meaning or interpretation of this Contract or any paragraph or provision hereof. 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 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. 1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit"A". 1.9 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation to be paid by OCSD to Contractor for the Services provided under this Contract shall be a total amount not exceed two hundred eighty nine thousand nine hundred Dollars ($289,900.00). 3. California Department of Industrial Relations(DIR)Registration and Record of Wages 3.1 To the extent Contractors employees and/or its subcontractors who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, Contractor and its subcontractors shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 3.2 The Contractor and its subcontractors shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non- compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 3.3 Pursuant to Labor Code Section 1776, the Contractor and its subcontractors shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 3.4 The Contractor and its subcontractors shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 4. Payments and Invoicing 4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted for Milestones completed in accordance with Exhibit "A", Scope of Work, Section 9, Invoicing and Payments, Table 3. OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. Orange County Sanitation District 2 of 10 Specification No. 5-2019-1019BD Version 120518 4.2 Invoices shall be emailed by Contractor to OCSD Accounts Payable at APStaff(@.00SD.com and "INVOICE" with the Purchase Order Number and S-2019- 1019BD shall be referenced in the subject line. 5. Audit Rights Contractor agrees that, during the term of this Contract and for a period of Three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Services identified in Exhibit"K. Contractor shall perform said Services in accordance with generally accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 6. Contract Term The Services provided under this Contract shall be completed within one hundred seventy seven(177)calendar days from the effective date of the Notice to Proceed. 9. Renewals-NOT USED 10. Extensions The term of this Contract may be extended only by written instrument signed by both Parties. 11. Performance Time is of the essence in the performance of the provisions hereof. 12. Termination 12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon receipt of a termination notice,Contractor shall immediately discontinue all work under this Contract(unless the notice directs otherwise). OCSD shall thereafter, within thirty(30) days, pay Contractor for work performed(cost and fee)to the date of termination. Contractor expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not complying with the Scope of Work requirements, K the level of service is inadequate, or any other default of this Contract. 12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Contract; or • if total amount of compensation exceeds the amount authorized under this Contract. 12.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the termination of this Contract, whichever occurs first. Orange County Sanitation District 3 of 10 Specification No. S-2019-1019BD Version 120518 13. Insurance Contractor and all subcontractors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "C"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Bonds Contractor shall, before entering upon the perfonnance of this Contract, furnish bonds (attached hereto in Exhibit "F") approved by OCSD's General Counsel - one in the amount of one hundred percent (100%) of the total Contract price bid, to guarantee the faithful performance of the work, and the other in the amount of one hundred percent(100%) of the total Contract price bid, to guarantee payment of all claims for labor and materials furnished. This Contract shall not become effective until such bonds are supplied to and accepted by OCSD. Bonds must be issued by a California admitted surety and must be maintained throughout the life of the Contract and during the warranty period. 15. Indemnification and Hold Harmless Provision Contractor 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 Contractor's services under this Contract, or by its subcontractor(s) or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be discovered before or after the termination of the Contract. Except as to the sole active negligence of or willful misconduct of OCSD, Contractor 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 Contractor's performance under the Contract, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Contract, and/or (c) on account of any goods and services provided under this Contract. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Contractor of or anyone employed by or working under Contractor. To the maximum extent permitted by law, Contractor'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. Contractor agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 16. OCSD Safety Standards OCSD requires Contractor 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 Contract it is discovered that OCSD Safety Standards do not comply with Federal, State, or local regulations, then the Contractor is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Contractor and all their employees and subcontractors, shall adhere to all applicable OCSD Safety Standards and Human Resources Policies found at www.ocsd.com "Safety and Human Resources Policy" (hover over ABOUT US), select "Safety and Human Resources Orange County Sanitation District 4 of 10 Specification No. 5-2019-1019BD Version 120518 Policy". Click "Safety Policies' to access the OCSD Safety Standards 2018-10-25 (Rev8) and Safety Standard Operating Procedures (SOPS.) In addition to the OCSD Safety Standards 2018-10-25 (Rev8), Contractor shall adhere to the following applicable Standard Operating Procedures: • SAFETY-SOP-102 PPE • ADM-SOP-604 Confined Soace • ADM-SOP-605 LOTO 1-22-2015 • SAFETY-SOP-106 Hearing Conservation Program • ADM SOP-607 HazComm • ADM-SOP-617 Fire Prevention • SAFETY-SOP-118 Hot Work • SAFETY-SOP-121 Lead. Asbestos and Mold • SAFETY-SOP-205 Electrical Safety • ADM-SOP-626 Fall Protection • SAFETY-SOP-303 Crane Safety Program The OCSD Safety Standards 2018-09-10 (Rev 8)and SOPS are hereby incorporated into this Contract by reference as though attached and fully set forth herein as Exhibit "D". Disregard OCSD Safety Standards 2015-10-15 (Rev7). To access the Human Resources Policies, from the link identified above, click on "HR Policies", The listed Human Resources Policies are hereby incorporated into this Contract by reference as though attached and fully set forth herein as Exhibit"E". 17. Warranties In addition to the warranties stated in Exhibit"A", the following shall apply: 17.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence on the date of acceptance by the OCSD Project Manager or designee of the work as complete. 17.2 Contractor's Warranty (Guarantee): If within a one (1)year period of completion of all work as specified in Exhibit "A", OCSD informs Contractor that any portion of the Services provided fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, take all such actions as are necessary to correct or complete the noted deficiency(ies) at Contractor's sole expense. 18. Liquidated Damages - NOT USED 19. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Contract. 20. Freiaht (F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2)it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the Orange County Sanitation District 5 of 10 Specification No. 5-2019-1019BD Version 120518 work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Contractor's risk, until written instructions are received from OCSD. 22. Regulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable Federal, State, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and California Water Codes Division 2. 23. Licenses. Permits. Ordinances and Regulations Contractor represents and warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, Stale, County, City and/or municipal laws, codes and/or tariffs that pertain to the work performed under the terms of this Contract will be paid by Contractor. 24. Applicable Laws and Regulations Contractor shall comply with all applicable Federal, State, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whether or not specifically referenced. 25. Contractor's Employees Compensation 25.1 Davis-Bacon Act — Contractor will pay and will require all subcontractors to pay all employees on said project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis- Bacon Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by Federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. 25.2 General Prevailing Rate — OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract, and copies of same are on file in the Engineering Department. The Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each project site,which shall be made available to any interested party upon request. 25.3 Forfeiture For Violation—Contractor shall, as a penalty to OCSD,forfeit fifty dollars($50.00) for each calendar day or portion thereof for each worker paid (either by the Contractor or any subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. 25.4 Apprentices—Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the Contractor Orange County Sanitation District 6 of 10 Specification No. 5-2019-1019BD Version 120518 shall comply therewith if the prime contract involves thirty thousand dollars ($30,000.00) or more or twenty(20)working days or more;or if contracts of specialty contractors not bidding for work through the general or prime Contractor are two thousand dollars ($2,000.00) or more or five (5)working days or more. 25.5 Workday—In the performance of this Contract, not more than eight(8)hours shall constitute a day's work, and the Contractor shall not require more than eight(8)hours of labor in a day from any person employed by it hereunder. Contractor shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of twenty-five dollars ($25.00)for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one (1) calendar day and forty (40) hours in any one (1) week in violation of said Article. Contractor shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by Contractor in connection with the project. 25.6 Record of Wages: Inspection — Contractor agrees to maintain accurate payroll records showing the name, address, social security number, work classification, straight-time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker or other employee employed by it in connection with the project and agrees to require that each of its subcontractors do the same. All payroll records shall be certified as accurate by the applicable Contractor or subcontractor or its agent having authority over such matters. Contractor further agrees that its payroll records and those of its subcontractors shall be available to the employee or employee's representative, the Division of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-compliance with the requirements of Section 1776 may be deducted from project payments per the requirements of Section 1776. 26. South Coast Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Contract work practices, which may have associated emissions such as sandblasting, open field spray painting or demolition of asbestos containing components or structures, shall comply with the appropriate rules and regulations of the SCAQMD. 27. Governing Law This Contract shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in the County of Orange, in the event any action is brought in connection with this Contract or the performance thereof. 28. Breach The waiver of either party of any breach or violation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 29. Remedies In addition to other remedies available in law or in equity, if the Contractor fails to make delivery of the goods or Services or repudiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover" as Orange County Sanitation District 7 of 10 Specification No. S-2019-1019BD Version 120518 described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the Contract price, together with any incidental or consequential damages. 30. Dispute Resolution 30.1 In the event of a dispute as to the construction or interpretation of this Contract, 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. 30.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two(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. 31. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 32. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and Forum for Enforcement, shall survive termination or expiration of this Contract. 33. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid,the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 34. Damage to OCSD's Property Any of OCSD's property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 35. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 36. Independent Contractor The legal relationship between the parties hereto is that of an independent contractor, and nothing herein shall be deemed to make Contractor an OCSD employee. During the performance of this Contract, Contractor and its officers, employees, and agents shall act in an independent capacity and shall not act as OCSD's officers, employees, or agents. Contractor and its officers, employees, and agents shall obtain no Orange County Sanitation District 8 of 10 Specification No. 5-2019-1019BD Version 120518 rights to any benefits which accrue to OCSD's employees. 37. Limitations upon Subcontractina and Assignment Contractor shall not delegate any duties nor assign any rights under this Contract without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 33. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. 39. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to Contractor, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Contractor or to its successor, or for breach of any obligation for the terms of this Contract. 40. Read and Understood By signing this Contract, Contractor represents that he has read and understood the terms and conditions of the Contract. 41. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 42. Entire Contract This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 9 of 10 Specification No. 5-2019-1019BD Version 120518 43. Notices All notices under this Contract must be in writing. Written notice shall be delivered by personal service or 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. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: B. Cori Voss Senior Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Contractor: Brian Alvarez Chief Executive Officer Manley's Boiler LLC 7931 Whitaker Street Buena Park, CA 90621-2932 Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Contract 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 COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 10 of 10 Specification No. 5-2019-1019BD Version 120518 OPERATIONS COMMITTEE Meeting Date TOBE.Or Dir. 06/OS119 O6/26/19 AGENDA REPORT Item Item Number 3 fi Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS GENERAL MANAGER'S RECOMMENDATION A. Approve a Purchase Order to National Auto Fleet Group for the purchase of four Toyota Prius sedans, four Nissan Leaf sedans, and four Ford Transit vans using Sourcewell (formerly National Joint Powers Alliance)Cooperative Contract No. 120716-NAF for a total amount not to exceed $361,554; and B. Approve a contingency of$18,078 (5%). BACKGROUND As part of an overall fleet right-sizing and modernization strategy, the Fleet Services Division of the Orange County Sanitation District (Sanitation District) is systematically replacing the oldest vehicles of the fleet. Vehicle replacement is based on vehicle age, maintenance cost, and mileage. The Sanitation District maintains a fleet of vehicles necessary to meet its business needs. The fleet is comprised of 22 heavy-duty equipment trucks, 103 light-duty trucks, 33 sedans, 12 SUVs, and 10 vans, for a total of 180 vehicles. Replacement of older vehicles improves staff safety by ensuring vehicles are equipped with airbags, anti-lock brakes, and traction control. Light-duty trucks compose the largest segment of the fleet and support equipment needs of Engineering, Operations, Collections, and Maintenance staff. Approximately 25%of the Sanitation District's vehicles are "Green'or FLEX fuel vehicles. Replacement vehicles are evaluated for replacement as "Green" (electric, hybrid, CNG) vehicles. RELEVANT STANDARDS • Participate in local, state, and national cooperative purchasing programs • Maintain a proactive asset management program • Ensure the public's money is wisely spent Page 1 d 3 PROBLEM Eight 1998-2001 Ford Taurus sedans identified for replacement have a current average maintenance cost per year of $1,550. Four 2001 Ford F-150 trucks are proposed for replacement in the Source Control Division and have an average maintenance cost per year of$2,025. PROPOSED SOLUTION Staff recommends that the sedans be replaced with a combination of full electric sedans and Hybrid/elect sedans. This combination will provide vehicles meeting current safety standards, reduce fuel costs, and reduce annual maintenance costs. The vans will provide evidentiary control for samples collected by the Source Control staff and provide a secure workspace while in the field. Currently, sampling related tasks are done outside, leaving staff and samples exposed to the elements (sun, heat, rain, cold) which can negatively impact evidentiary control and sampling standards. The average procurement cost per sedan is $27,500. The procurement cost per van is $35,400. TIMING CONCERNS A 5% contingency has been recommended should there be a pricing change between the date of approval and date of purchase due to tariffs and uncontrolled market conditions. RAMIFICATIONS OF NOT TAKING ACTION The vehicles selected to be replaced are unreliable, deteriorating, and are no longer economical to maintain. Additionally, these vehicles are not equipped with more modern safety features currently required for Fleet vehicles. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District has provisions to purchase materials, services, and equipment from cooperative agreements. These cooperative agreements tend to produce lower unit prices. The Sanitation District is utilizing a cooperative agreement through Sourcewell (formerly National Joint Powers Alliance), Cooperative Contract No. 120716-NAF with National Auto Fleet Group, in accordance with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases. Page 2 of 3 The amount of savings under this cooperative agreement is $23,069.79 versus non-cooperative contract list pricing. Summary information on the quote for eight (8) passenger sedans and four (4) transit vans is as follows. These costs are inclusive of freight and sales tax. Vehicle Description & Unit Quantities Total Amounts (Including O lions, Tax, Tire Fee Four (4) 2019 Toyota Prius L $101,539 Four (4) 2019 Nissan Leaf S Hatchback $118,421 Four (4) 2019 Ford Transit T-250 Medium Roof Vans $141,592 Summary information on the identified vehicles for replacement. Type Year Make Model Mileage Sedan 1998 Ford Taurus 34,466 Sedan 1998 Ford Taurus 66 930 Sedan 1999 Ford Taurus 46,997 Sedan 2000 Ford Taurus 49,562 Sedan 2001 Ford Taurus 58,124 Sedan 2001 Ford Taurus 42,957 Sedan 2001 Ford Taurus 63 028 Sedan 2001 Ford Taurus 64,384 Light-Truck 2001 Ford F-150 86,469 Light-Truck 1 2001 1 Ford I F-150 121,303 Light-Truck 1 2001 1 Ford I F-150 116,000 Light-Truck 2001 Ford F-150 103 312 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation Districfs Purchasing Ordinance. This item has been budgeted in the FY 2018-19 Budget, Line item: Section 8, Page 96, Fleet Services, eleven Sedans and six light trucks. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A DS:sr:gc Page 3 d 3 OPERATIONS COMMITTEE Meeting Date TOBd.woir. 06/OS119 O6/26/19 AGENDA REPORT ItemNumber Item Number a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filter Clarifier"E" rotating scum skimmer troughs, sludge ducts and their associated components for a total amount not to exceed $190,280; B. Approve a contingency of$38,056 (20%); and C. Approve Amendment to Orange County Sanitation District Purchase Order Terms and Conditions. BACKGROUND The trickling filter process is one of the two secondary wastewater treatment processes at the Orange County Sanitation District's (Sanitation District) Plant No. 2. The three trickling filters remove suspended and dissolved organic material using microorganisms. The trickling filters are followed by six clarifiers, Clarifiers A through F. The Trickling Filter Secondary Clarifier "E" experienced a failure and damage to the rotating scum troughs and is in need of repair. RELEVANT STANDARDS 24/7/365 treatment plant reliability • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The upper scum trough failure at Trickling Filter Clarifier "E" occurred when a sludge suction duct came in contact with the drain gate in the bottom of the clarifier due to misalignment of the center column. The scum trough is damaged along with its structural support elements. PROPOSED SOLUTION Replace the outer sections of both the scum trough and the suction duct with shorter sections to reduce the possibility of such failure in the future, conduct repairs of the damaged elements of the scum trough, and realign the center column. Page 1 of 3 TIMING CONCERNS The repairs need to be conducted prior to the onset of the next wet weather season to ensure operational availability of all six trickling filter clarifiers required for handling the peak wet-weather flows. RAMIFICATIONS OF NOT TAKING ACTION Failure to repair the trickling filter clarifier would result in loss of rapacity to handle peak wet-weather flows and also reduces the ability to provide normal maintenance of the Plant No. 2 secondary treatment system. PRIOR COMMITTEE/BOARD ACTIONS September 2018 - Board approved a Sole Source Purchase Order to Ovivo USA, LLC to refurbish and repair Trickling Filer "A" rotary distributor and associated damaged components for a total amount not to exceed $175,085; approved a contingency of $35,017 (20%); and approved Amendment to the Orange County Sanitation District Purchase Order Terms and Conditions. February 2018 - Ovivo USA, LLC approved by the Board as a sole source provider of Trickling Filter related service and replacement parts. ADDITIONAL INFORMATION A contingency of 20% is requested to cover additional costs for labor and materials should further damage be discovered to the seals or rotating mechanisms. In September 2018, Ovivo requested, and the Board approved, the same amendments to the purchase order Terms and Conditions as currently being considered. General Counsel has again reviewed the requested revisions to the Terms and Conditions and approves such as presented in the attached Addendum to the Orange County Sanitation District Purchase Order Terms and Conditions. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation will be funded under the Repairs and Maintenance line item for the Operations and Maintenance Department, and the available funding is sufficient for this action. FY 2018-19 Budget Line Item: Repairs and Maintenance, Section 6, Page 92. Page 2 of 3 Date of Approval Contract Amount Contingency 06/26/2019 $190,280 $38,056 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Addendum to Orange County Sanitation District Purchase Order Terms and Conditions • Orange County Sanitation District Purchase Order Terms and Conditions RT:RM:ab:gc Page 3 of 3 Addendum to Orange County Sanitation District Purchase Order Terms and Conditions In the event of conflict between the Purchase Order documents("Purchase Order")and this Addendum,the terms of the Addendum shall control. The parties are Orange County Sanitation District("OCSD")and Ovivo USA, LLC("Contractor"). Limitation of Liability and Consequential Damage Disclaimer To the extent permissible by applicable law, Contractor shall have no further liability in connection with this Purchase Order in excess of the cost of correcting any defects,or in the absence of any defect, in excess of the value of the equipment supplied hereunder. However, notwithstanding any other provision of the Purchase Order to the contrary, in no event shall Contractor be liable for any punitive, exemplary,special, incidental,or consequential loss or damage suffered by OCSD,or any other party, in connection with this Purchase Order. These limits shall not apply to third party claims based on injury,death,or property damage. These limits shall not apply to claims which are based on the willful misconduct,gross negligence,or fraud of the Contractor. Liquidated Damages Except in cases of Force Majeure,Contractor agrees to pay OCSD, as liquidated damages,one hundred dollars ($100) per day for every working day of delay attributable to Contractor. Contractor's liability for liquidated damages shall not exceed, in the aggregate, any amount more than ten percent(10%)of the Purchase Order price. Contractor shall not be liable to pay liquidated damages for solely Owner/OCSD-caused delays such as late drawing approval, inspection delays,scope changes etc. Notwithstanding any other provision of the Purchase Order to the contrary, payment of liquidated damages shall be Contractor's sole liability and OCSD's sole remedy for delays. Such remedies shall not be enforced unless OCSD suffers an economic loss as a result of Contractor's delay. Indemnity Any and all indemnity obligations of Contractor in connection with this Purchase Order shall be limited to the extent of Contractor's fault. Insurance Contractor shall maintain its current level of insurance for the duration of the Purchase Order,as set forth in sample certificate of insurance,attached hereto as Exhibit A. Certificates of insurance shall be sufficient evidence of coverage, and in no event,will Contractor be required to provide copies of insurance policies. Bonds In no event shall Contractor be required to provide a Bond for which the value exceeds the Purchase Order price, nor a duration which exceeds the first twenty-four(24) months of the warranty period. Orange County Sanitation District Ovivo USA, LLC ("OCSD") ("Contractor") By: By: Kcwety& rn-k Name:—Lorenzo Tyner Name:—Karen Burns Title:_Assistant General Manager_ Title: Product Manager Date: Date:_May 21,2019 1330529.1 ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 1. CONTRACTTERMS. 1.1Forms/Acceptance. Except as otherwise provided in subsection 1.2 below,the complete agreement the("Agreement")between OCSD and Contractor(collectively,the"Parties")consists of,in order of precedence:(1)OCSD's solicitation/request for bids/proposals,together with plans and specifications(collectively,the"NIB/RFP"),if any,(2)the purchase order signed by OCSD's Purchasing Manager(the"Purchase Order"),(3)Addendum to Orange County Sanitation District Purchase Order Terms and Conditions(4)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 "WAIVED",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. 1.2Additional Terms.Any other terms,conditions,or limitations suggested by Contractor or incorporated in Contractor's invoice,or other correspondence,shall not forma part of the Agreement unless expressly accepted in writing by OCSD's Purchasing Manager. 2. PAYMENTTERMS. 2.1Standard:Net 30 days unless otherwise stated on the Purchase Order. 2.2 Price.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 includes applicable California,county and municipal sales and use taxes. 2.3lnvoices.Contractor shall submit invoices to APstaff@ocsd.com 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/services performed. OCSD shall pay for goods/services after receipt of a conforming invoice and confirmation by OCSD of its accuracy. In connection with any cash discount specified in the Agreement:(a)time will be computed from the date OCSD accepts the goods/services,or the date OCSD receives a conforming invoice,whichever date is later,and(b)payment shall be deemed to have been made on the date of mailing of OCSD's check. 2.4Blanket Invoices.Contractor shall submit invoices for Blanket Orders as outlined in paragraph 2.3 as well as add the following information:(a)the Blanket Order Number;(b)the Last Name of the authorized OCSD employee placing the order;(c)the Date the order is placed on;and(d)a unique request tracking number for each order placed. 3. DELIVERY/PERFORMANCE,INSPECTION,AND RISK OF LOSS. 3.1Deliyery/Performance.Contractor shall 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 F.O.B.destination in one shipment and no partial deliveries shall be accepted.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,title to goods shall pass to OCSD at the F.O.B. point per the Agreement,and title to materials shall pass to OCSD when the materials are affixed to OCSD property or paid for by OCSD. 3.2inspection.OCSD shall have the right to inspect the goods/services within a reasonable amount of time prior to acceptance and payment.If,on inspection,OCSD determines that the goods or services do not meet the Agreement requirements,OCSD may reject nonconforming goods and services.In addition,OCSD shall have the right to keep,at no expense to OCSD,a small sample of the goods tendered,for evidence of kind/quality.Contractor shall pay for the cost of inspection and charges for delivery to return nonconforming goods(at Contractor's risk and expense)which do not meet Agreement requirements. 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. 3.3Risk of Loss.Risk of loss of the goods/materials passes to 00513 only after acceptance. 4. PERFORMANCE OF SERVICES/CONTRACTOR COVENANTS. 4.1Personnel/Compliance 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,authorizations and other documents as required by federal,state or local laws or regulations.The persons performing services under this Agreement on behalf of Contractor,if any,shall at all times be under Contractor's exclusive direction and control.Neither OCSD nor any of its 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. 4.2Standard Provisions/Specifications.If so provided in the NIB/RFP,the services performed under the Agreement are subject to, and must conform with,the General Provisions herein,as adopted and amended by OCSD from time to time. 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 4.3Status of Contractor.The legal relationship between the parties hereto is that of an independent contractor,and nothing herein shall be deemed to make Contractor 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. 4ATaxes.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. 4.5Records.Contractor shall keep and maintain full and complete documentation and accounting records concerning all services performed that are compensable under the Agreement and shall make such documents and records available to OCSD for inspection at any reasonable time.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 prepared by,assembled by,or 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 written products to be produced,if any,by Contractor,under this Agreement are conclusively deemed"works made for hire"within the meaning of the United States Copyright Act,and that OCSD will be 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.All written products prepared in connection with this Agreement and any and all intellectual property rights arising from their creation,including,but not limited to,all copyrights and other proprietary rights,shall be and remain the property of OCSD without restriction or limitation upon their use by OCSD.OCSD's ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. 5. WARRANTIES. 5.1 Warranty of Title.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:(!)be new unless otherwise specified,(it)conform to(A)OCSD's plans,specifications,and/or descriptions,and(B)Contractor's representations and/or samples,and(III)be of first-class material and workmanship and free from defect;and(b)all services will be: (i)of good quality,free from defect,and in conformance with the Agreement,and (it)performed to the standard of care customary in Contractor's trade or profession.Contractor shall transfer to OCSD all of Contractor's rights to and interest in the manufacturer's warranty or guarantee for each item delivered or installed,if applicable.All manufacturers'warranties and guarantees shall be in addition to Contractor's warranty under the Agreement. In the event of a breach of warranty,Contractor shall repair or replace the goods, materials and equipment and remedy any defects in workmanship,without charge and within 5 business days after receipt of OCSD's request.If Contractor does not do so within 5 business days,OCSD shall be entitled to a refund of the purchase price. In addition,OCSD shall have the right to remedy any defects itself and to collect the cost of the same from Contractor.OCSD's inspection,acceptance,and/or payment shall not relieve Contractor of liability under this warranty,which shall be effective for 1 year after the date of OCSD's final payment.The remedies in this subsection are in addition to those described in Section 6,below. 6. OCSD'S REMEDIES.If Contractor defaults under the Agreement,OCSD may pursue any and all remedies provided under the Agreement,the California Commercial Code,and/or any other applicable provision of law,including,but not limited to,anyone or more of the following remedies: (a)in the event of untimely or nonconforming delivery/performance of goods/services,OCSD may purchase substitute goods/services from other sources and recover from Contractor the difference between the Agreement prices for such goods/services and the actual cost,to OCSD,of the substitute goods/services;OCSD may deduct such difference from any moneys due Contractor under the Agreement,or collect such difference(i)from any applicable surety,or(ii)in any other manner permitted bylaw;(b)OCSD may terminate the Agreement for breach;and (c)OCSD shall be entitled to recover all damages, including consequential and/or incidental damages. 7. CONTRACTOR'S REMEDIES.If OCSD defaults under the Agreement,Contractor may file a claim with OCSD,in accordance with applicable provisions of law. 8. TERMINATION FOR CONVENIENCE AND DEFAULT 8.1.Termination for Convenience.OCSD,in its sole and absolute discretion, may terminate the Agreement,in whole or in part,at any time,without cause,at any time by written notice to Contractor.In such case,Contractor shall immediately discontinue all work (unless the notice directs otherwise).Contractor shall be entitled to payment only for those goods, materials and equipment delivered and services performed that 005D has accepted. 8.2.Termination for Default.OCSD may terminate the Agreement based on the Contractor's default_If Contractor breaches any provision of this Agreement and if such breach is not cured within fifteen(15)days after receiving written notice from OCSD specifying such breach in reasonable detail,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 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 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. 9.INDEMNIFICATION/DUTY TO DEFEND.Contractor 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 Contractor's services under this Agreement,or by its subcontractor or by anyone directly or indirectly employed by Contractor,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 or willful misconduct of OCSD, Contractor 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 Contractor's performance under the Agreement,and/or(b)on account of use of any copyrighted or uncopyrighted material, composition,or process,or any patented or unpatented invention,article or appliance,furnished or used under the Agreement, and/or(c)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 Contractor or anyone employed by or working under Contractor.To the maximum extent permitted by law,Contractor's duty to defend shall apply whether or not such claims,allegations,lawsuits,or proceedings have merit or are meatless,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.Contractor agrees to provide this defense immediately upon written notice from OCSD,and with well qualified,adequately insured,and experienced legal counsel acceptable to 005D.This section shall survive the expiration or early termination of the Agreement. 10.GENERAL PROVISIONS. 10.1 Notice.Notice shall begiven by certified mail,return receiptrequested,facsimile orother electronic telecommunications transmission with a date and time receipt acknowledgment,or personal delivery.Notice shall be effective on receipt. 10.2 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. 10.3 Force Maieure.Neither party shall be liable for any delay or failure in the performance of the Agreement to the extent the delay or failure is caused by labor disputes,strikes,war,riots, insurrection,civil commotion,fire,flood,accident,storm or any Act of God. 10.4 Assignment.Contractor may neither assign a right under or an interest in the Agreement,nor delegate or subcontract an obligation under the Agreement,without the written consent of OCSD's Purchasing Manager.Any attempted assignment,delegation or subcontract,without such written consent,shall be void. 10.5 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 constitute a waiver of another provision,or an excuse of another breach. 10.6 Applicable Law/Venue/Attorneys'Fees.The Agreement shall be governed by,and construed in accordance 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 prevailing party shall be entitled to reasonable attorneys'fees,costs and expenses. 10.7 Construction and Severability.To the fullest extent allowed by law,the provisions of the Agreement shall be construed in a mannerthat avoids any violation of statute,ordinance,regulation,or law. If a court of competent jurisdiction holds any provision of the Agreement to be void,the remaining provisions shall continue in full force and effect. 11.INSURANCE AND BOND REQUIREMENTS.Before beginning work under the Agreement,Contractor shall provide OCSD with: 11.1 Such bonds,insurance and certificates of insurance,as may be required by OCSD in the NIB/RFP;and 11.2 If not described in 11.1,(1)Certificates of commercial general liability,automobile liability,and workers compensation insurance,all to the satisfaction of OCSD,as well as pollution liability coverage and professional liability coverage,if requested by OCSD to the satisfaction of OCSD;(2)Proof of Products Liability Insurance,which shall be maintained during the life of the Agreement and thereafter as required by OCSD,which insurance shall be in form and with limits to the satisfaction of OCSD(3) 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; (4)Labor and materials bonds, satisfactory to OCSD,for 100%oftheAgreement price and any additions added per change order.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 Vill,or better,in accordance with the most current AM Best rating.All sureties and insurers must have agents for service of process in California. 923732.1 Rev.0104171L ORANGE COUNTY SANITATION DISTRICT(OCSD) - PURCHASE ORDER TERMS AND CONDITIONS 12.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.ocsd.com.A printed version of the Safety Standards will be made available only upon request. 923732.1 Rev.0104171L OPERATIONS COMMITTEE Meeting Date TOBd.of Dir. 06/OS119 06/26/19 AGENDA REPORT ItemNumber Item Number s s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248; B. Award a Construction Contract to W.M. Lyles for Plant No. 2 Secondary Clarifier Repairs, Project No. MP-248, for a total amount not to exceed $3,048,000; and C. Approve a contingency of$304,800 (10%). BACKGROUND The Activated Sludge Plant at Orange County Sanitation District(Sanitation District)Plant No. 2 has twelve rectangular clarifiers that include chain and flight sludge collector mechanisms that are subject to wear and corrosion and that require periodic replacement. The age of the collectors ranges from 14 to 25 years old. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Sustain 1, 5, 20-year planning horizons • Maintain a proactive asset management program PROBLEM Staff, working with the original equipment manufacturer, performed inspections and determined that the sludge collector mechanisms within six of the twelve clarifiers require replacement at this time. Replacement of the equipment in the remaining six clarifiers is not required at this time. PROPOSED SOLUTION Award a contract to replace the sludge collector mechanisms in six rectangular clarifiers at the Activated Sludge Plant at Plant No. 2. Page 1 d 3 TIMING CONCERNS The clarifiers must be reliable so that the Activated Sludge Plant at Plant No. 2 will have sufficient capacity while other projects in the vicinity are being implemented. RAMIFICATIONS OF NOT TAKING ACTION Not replacing the sludge collector mechanisms will reduce reliability of the clarifiers and potentially impact wet weather performance. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised forbids on February 28, 2019. Eight sealed bids were received on April 16, 2019. The bids were evaluated in accordance with the Sanitation District's policies and procedures. Staff recommends awarding a construction contract to the lowest responsive and responsible bidder, W.M. Lyles Company, for the completion of P2 Secondary Clarifier Repairs, Project No. MP-248. Summary information on the bid opening for this project is as follows: Bidder Amount of Bid W.M. Lyles Company $3,048,000 PCL Construction, Inc. $3,604,457 JR Filanc $3,996,088 Myers & Sons Construction, LLC $4,122,000 MIMIC Inc. $4,254,000 Metro Builder& Engineers Group $4,395,295 Abhe & Svoboda, Inc. $4,676,202 Tharsos Inc. $5,778,000 The engineer's estimate was $4,100,000. Staff is also working on a separate project to replace the inlet gates. Completing these two projects will allow a much larger capital improvement program rehabilitation project to be postponed. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations sections 15301. Page 2 of 3 Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including"(b)Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." This project is exempt because it involves maintenance activities with the replacement of existing facilities involving no expansion of use or capacity. A Notice of Exemption will be filed with the County Clerk Recorder office following award of this agreement by the Board. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This recommendation would be funded under the Repairs and Maintenance line item for Division 880 (Fiscal Year FY 2018-19 and 2019-20 Budget, Section 6, Page 100), and the available funding is sufficient for this action. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (wwwocsd.corn with the complete agenda package: Construction Contract SS:dm:sa Page 3 of 3 PART A CONTRACT AGREEMENT C-CA-112818 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION- 1 GENERAL CONDITIONS.................................................................1 SECTION-2 MATERIALS AND LABOR................................................................4 SECTION-3 PROJECT ........................................................................................4 SECTION -4 PLANS AND SPECIFICATONS........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION..........................5 SECTION -6 TIME IS OF THE ESSENCE ............................................................5 SECTION -7 EXCUSABLE DELAYS.....................................................................6 SECTION -8 EXTRA WORK.................................................................................6 SECTION -9 CHANGES IN PROJECT..................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS.............................................................................................9 SECTION - 13 COMPLETION..................................................................................9 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10 SECTION - 15 SURETY BONDS...........................................................................12 SECTION - 16 INSURANCE..................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION......................................................22 SECTION - 18 TERMINATION...............................................................................22 SECTION - 19 WARRANTY...................................................................................22 SECTION -20 ASSIGNMENT................................................................................23 SECTION -21 RESOLUTION OF DISPUTES........................................................23 SECTION -22 SAFETY& HEALTH.......................................................................24 SECTION -23 NOTICES.......................................................................................24 C-CA-112818 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS THIS AGREEMENT is made and entered into, to be effective, this June 26, 2019, by and between W.M. Lyles Co., hereinafter referred to as 'CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as 'OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION- 1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions— Definitions. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report(GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans iii. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR'S Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 2 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surely to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION —3 PROJECT The Project is described as: PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 4 of 25 SECTION-4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION-5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within six hundred forty four(644) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes fourteen (14) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION —6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which the various portions of the Work shall be installed or the priority of the work of subcontractors, CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 5 of 25 and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR orOthers—Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 6 of 25 SECTION —9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surely, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and "OWNER Initiated Changes". SECTION — 10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION — 11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Three Million Forty-Eight Thousand Dollars ($3,048,000)as itemized on the Attached Exhibit"A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 7 of 25 not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4) week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. B. As used in this Section, the following defined terms shall have the following meanings: C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 8 of 25 1. "Net Progress Payment' means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, slop payment notices, etc.). 2. "Progress Payment' means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount'for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION — 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 et seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." SECTION — 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion', "Final Payment" and Exhibit A- Schedule of Prices. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 9 of 25 Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION— 14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 10 of 25 C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. ADDrentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith K the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight(8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seg.) of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 11 of 25 F. Registration: Record of WapeS: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION — 15 SURETY BONDS CONTRACTOR shall, before entering upon the performance of this Contract,furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%) of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%) of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 12 of 25 A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION — 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion". Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and/or"OWNER Initiated CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 13 of 25 Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premisestworksite without Dossessina the reauired insurance coveraae. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work(collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Two Million Dollars ($2,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 14 of 25 additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 15 of 25 Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and Two Million Dollars ($2,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employers liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 16 of 25 performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least One Million Dollars ($1,000,000) and shall apply to sudden and non-sudden pollution conditions (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 17 of 25 made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 6. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 18 of 25 b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20) days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 19 of 25 D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20) days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured" on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 20 of 25 all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 21 of 25 OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION- 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION — 18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 22 of 25 The CONTRACTOR guarantees for a period of at least one (1)year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or (2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specked in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION —21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 23 of 25 arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION—23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any party whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 Copy to: Robert P. Saleen W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 C-CA-112818 CONFORMED PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: W.M. Lyles Co. 1210 West Olive Avenue Fresno, CA 93728 By Printed Name Its CONTRACTOR's State License No. 422390 (Expiration Date—5/31/2020) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By Lorenzo Tyner Assistant General Manager, Director Administrative Services CONFORMED C-CA-112818 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 25 of 25 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION ...........................................................................1 EXA-2 PROGRESS PAYMENTS.................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS.......................................................1 EXA-4 STOP PAYMENT NOTICE...............................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS...............................................................3 EXA-6 PAYMENT OF TAXES......................................................................................3 EXA-7 FINAL PAYMENT.............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT....5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES..................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESS PAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General", 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment—Mobilization Payment Requirements;" 5. General Conditions—"Payment—Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments'; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty(20) calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%) of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code §9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7)days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7) days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code §7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR(per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent(125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract (per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty(30) days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Acts to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Act and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractor's performance. Name Title Date CONFORMED C-EXA-080414 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages for Bid Submittal Forms—(W.M. Lyles, Co.): BF-14 Schedule of Prices, Pages (1-2) C-EXA-080414 CONFORMED PROJECT NO.MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 8 of 8 Bid Submitted By: W.M.Lyles Co. (Name of Flrm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work,whether they be more or less than those shown. CONTRACTOR'S compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSD via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total price for each Rem shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each Rem shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work, including profit,overhead, etc., unless otherwise specified in the Contract Documents. All applicable sales taxes, state and/or federal, and any other special taxes, patent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials,equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO. MP-248 P2 SECONDARY CLARIFIER REPAIRS Page 1 of 2 Old Submitted Bin w.M.LNaa Co. EIlHIBIT A SCHEDULE OF PRICES BASE BID ITEMS(Refer to Note 1 in the Instructions): Wectlptlon Mwww . W Unll Price EMMSI Mce t Mobllb ation:The amount far this Bid Item Shell not exceed specified amount and shall Include all work not included in other items and shall be in Lump Sum 1 E150,000.00 $150,000.00 conformance with the Contract Documents for the lump sum price of... 2. Clarifier Repairs:The amount for this Bid Item includes all fees,labor, materials,and equipment necessary for do replacement of the chain and flight clarifier equipment within the rectangularrk clarifier and all other wo Earl1 $ = E2J898� aa� not included in Nam Ne.1 in conformance with the Contract Documents SUBTOTALBASEBIDITEMSNO.I THROUGH NO.2 (AWARDAMOUNT) $3, 04 8, aao TOTAL AMOUNT OF BID (BASIS OF AWARD) E 3,OL{9, O a a BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.MP-20 P2 SECONDARY CLARIFIER REPAIRS Pepe 2 or OPERATIONS COMMITTEE Melting Dat0 TOBE.Of Dir. 06/OS119 O6/26/19 AGENDA REPORT Item Item Number 6 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Plant No. 1 ICS Network Extension, Project No. FE17-05; B. Receive and file Clarification Request No. 2 issued to ODC Engineering and Technology on April 29, 2019; C. Receive and file CDC's response to Clarification Request No. 2 received by the Orange County Sanitation District on May 6, 2019; D. Receive and file Award Recommendation Notice issued to ODC on May 17, 2019 informing them of the Orange County Sanitation District's findings and subsequent recommendation to reject their Bid as non-responsive; E. Reject low bid from CDC Engineering and Technology as non-responsive; F. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders dated May 17, 2019; G. Award a construction contract to RP Controls, for the Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889; and H. Approve a contingency of$32,188 (10%). BACKGROUND Plant No. 1 has a network of programmable logic controllers (PLCs) and operator workstations that are essential for monitoring and controlling the plant processes. The operator workstations are currently connected to the office network, which communicates to the PLCs using an outdated Modbus Plus network. Failure in the network would require operators to locally observe and control each process area, which is not practical with normal staff levels. The Department of Homeland Security recommended that the PLCs and operator workstation be connected to a segregated industrial control systems (ICS) network to improve cybersecurity. An ICS networkfor Plant No. 1 was built underthe Power Monitoring and Control Systems project, Project No. J-33-3. A few projects have since migrated several of the process Page 1 of 4 PI-Cs to the ICS network. This project will migrate the remaining PI-Cs and all the process operator workstations over to the ICS network at Plant No. 1. These risks are currently being resolved at Plant No. 2 through Outfall Low Flow Pump Station, Project J-117B, which is currently under construction. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the existing network will become less reliable and cause control system problems as aging equipment fails and replacement parts become increasingly difficult to obtain. In addition, the lack of separation between the control system network and the office network could pose a cybersecurity risk. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • 24/7/365 treatment plant reliability • California Public Contract Code Section 20103.8: Award Construction Contract to lowest responsive, responsible bidder PROBLEM The existing PLC and workstation network resides on the Plant No. 1 business network, which poses cybersecurity risks. In addition, the PI-Cs communicate to the workstations through an older communication protocol. The equipment that supports that protocol is obsolete which puts the process network at risk. PROPOSED SOLUTION Provide the conduit, cabling, and network hardware required to connect various PLCS and operator workstations at Plant No. 1 to the new ICS network at Plant No. 1. TIMING CONCERNS The project is urgent due to the risk of failure of existing network components. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the existing network will become less reliable and cause control problems as aging equipment fails and replacement parts become increasingly difficult to obtain. In addition, the SCADA network will be exposed to traffic on the business network which is a cybersecurity risk. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 2 of 4 ADDITIONAL INFORMATION The Orange County Sanitation District (Sanitation District) advertised for bids on January 22, 2019, and three sealed bids were received on March 12, 2019. A summary of the bids follows: Engineer's Estimate $456,000 Bidder Amount of Bid CDC Engineering &Technology $292,000 RP Controls $321,889 M.B. Herzog Electric $525,000 The bids were evaluated in accordance with the Sanitation District's policies and procedures. After evaluation, CDC Engineering and Technology (ODC), the apparent low bidder, was found to be non-responsive based on the following reason: The Bid failed to provide the information required under Part 5, BID SUBMITTAL FORMS, BF-4 — PERFORMANCE HISTORY AND FINANCIAL RESOURCES, Section A, specifically, the following bid requirement: "2. Bidder shall list at least three (3) projects completed within the past ten (10) years involving construction installation or modification of Programmable Logic Controller(PLC) cabinets which are similar in nature, scope, complexity, and cost to this IFB." ODC listed a total of four projects, one of which was outside the number of years required per the bid requirements and was removed from consideration. Only one of the three remaining projects listed in the bid requirements met the requirement for PLC cabinet experience. On April 29, 2019, the Sanitation District issued a letter titled "Clarification Request No. 2" to CDC Engineering and Technology requesting information that clearly demonstrates CDC could meet the bid requirements. That letter stated that failure to provide this information would render the bid non-responsive. On May 6, 2019, the Sanitation District received CDC's response. The Sanitation District reviewed the response and determined that it did not provide the information requested in the Clarification Request No. 2 and required by the bid requirements. An Award Notice was sent to ODC on May 17, 2019 informing them of the Sanitation District's finding that their bid was non-responsive and subsequent recommendation to reject their Bid as non-responsive. An evaluation of the second apparent low bidder, RP Controls, determined the bid to be both responsive and responsible. Based on this, an Award Notice was sent to all the bidders on May 17, 2019, informing them of the intent of Sanitation District staff to recommend award of the construction contract to RP Controls. Page 3 of 4 Staff recommends awarding a construction contract to the lowest responsive bidder, RP Controls, for Plant No. 1 ICS Network Extension, Project No. FE17-05, for a total amount not to exceed $321,889. 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, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination' including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services" This project consists of minor alterations to existing public facilities. A Notice of Exemption will be filed with the OC Clerk-Recorder after the Sanitation District Board award of the construction contract. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted under the Small Construction Projects Program (M-FE), Fiscal Years 2018-19 and 2019-20 budget, Section 8, Page 47, and the budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (www.ocsd.com) with the complete agenda package: • Clarification Request No. 2 Issued to ODC April 29, 2019 • ODC's Response to Clarification Request No. 2 Received May 6, 2019 • Award Recommendation Notice Issued to ODC May 17, 2019 • Award Recommendation Notice Issued to All Bidders May 17, 2019 • Construction Contract SH:dm:sa:gc Page 4 of 4 serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • wwmomd.com Brea Buena Park April 29, 2019 Via Email: OVEDDAGANGdomail.com Cypress &Overnight Mail Fountain Valley Oved Dagan Fullerton ODC Engineering and Technology Garden Grove 5675 Walnut Ridge Dr. Agoura Hills CA, 91301 Huntington Beach SUBJECT: Clarification Request No. 2 nvins Re: Project FE17-05, Plant 1 ICS Network Extension La Hab OCSD has contacted the references your firm provided for the projects listed in La Palma BF-4, A. of your Bid. Information provided by these references indicate that the following listed projects do not meet the minimum experience requirements for Los Alaml , Programmable Logic Controller(PLC) Cabinets: Newport Bea 1. *4 Elementary School Safety and Technology" Orange 2. "Normont Elementary School' Placentia Please note that Form BF-4, A. of the Invitation For Bid (IFB) states, in part, that "Bidder shall list at least three (3) projects completed within the past ten (10) Santa Ana years involving construction installation or modification of Programmable Logic Controller(PLC) Cabinets which are similar in nature, scope, complexity, and Seal Beach cost to this IFB." Stanton OCSD requests that you provide the information required in paragraphs 4 and 5 Tustin of BF-4, A. of the IFB. This information must include at least 2 other projects which demonstrate that your firm meets the minimum experience requirements Villa Park regarding construction, installation, or modification of PLC Cabinets that are County of orange similar in nature, scope, complexity, and cost to this IFB. Failure to provide this information shall render your Bid as Non-Responsive. Costa Mesa Sanitary District To meet our evaluation schedule, your written response must be received by 12:00 pm (noon) on Monday, May 6, 2019. Please send your reply via email Midway City Sanitary District to constructiontccDocsd.com, with the subject line: "FE17-05 - CDC Response to Clarification Request No. 2". Irvine Ranch Water District Yorba Li Water Dia Brandon Garcia Contract Administrator BG:YP Our Mission: To protect public health and the environment by Revision 110714 providing effective wastewater collection, treatment, and recycling. From: Construction Sent: Monday,April 29,2019 10:16 AM To: 'oveddagan@gmail.com' Subject: FE17-05 Clarification Request 2 -CDC Engineering Attachments: FE17-05 Clarification Request 2 -CDC.pdf Mr.Dagan, Attached is the Clarification Request No. 2 of Project FE17-05 which was overnight mailed to your attention today.your written response must be received by 12:00 pm(noon)on Monday,May 6,2019. Orange County Sanitation District Contracts, Purchasing&Material Management Division w ocsd.com 1 Page 1 of 1 GSII (awXGLS wwOw.g o co5m jShip From Tracking#: 544613530 PAS !ORANGE COUNTY SANITATION DISTRICT iYAI PHONGMEKHIN III IIIIIIIIIII IIII III I I IIII III 13084 ELLIS4 ELLIS AVE FOUNTAIN VALLEY, CA 92708 ;Ship To �iODC ENGINEERING&TECHNOLOGY '.OVER DAGAN AGOURA HILLS 5675 WALNUT RIDGE DRIVE AGOURA HILLS, CA 91301 S91301A COD: $0.00 Weight: 0 lb(s) ;Reference: 'FE17-05 CLARIFICATION REQUEST 2 Delivery Instructions. .Signature Type: ADULT 1915110 BUR CA913-D 0 Print Dale:4/29/2019 1):19 AM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique baroode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inkjet printer. Step 2: Fold this page In half. Step 3: Securely attach this label to your package and do not cover the bafcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms&conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our webslte at www.gso.com. https://app.gso.com/Shipping/ShippingLabel 4/29/2019 Tmck Shipment Result Details Page 1 of 1 CrS41 I (.z2GLS SteN FRI. Contact OF 500.322.3555 YAS p1MyFNNl M I My Poe le Sh"t, Trecklna Mppal T.1, Iatdw LMOut ShlpmeNlt Tnddrig Illfmvinuden p� LG Tncklnp Mumeen 54Eu5M shipped Fr^m $p pDplrp Campnny: ORANGE COUNTY SANRATION DBIRILT Company: OOCENGINEERING&TECMNOLOG Addrro: 101i ELUS AVE Addmaa: 975 WALNUT RIDGE DRIVE FOUNTAIN VALLEY,G 92TIS AGOURA HILLS,G 91301 Sent Ny: 'Al PMONGNEKMIN Attention: OVED DAGAN Ship DaN ^rsll 04-39-2019 Si P05 Reference: Fli Oarincetbn Net Del Po[at 05-01.3019 Weight Obal: 0 sIB^atme Tygl Mu¢Sl9nean Rpmna Tn Del m I0:17 AM Co.Value: 0 Spcl eallnatruNpnc Blamed Wn O.De9en Dec.Value: 0 View Sign Imepe II Tranelt Daml. I DAb/V. MPa � —.___— ..._ .._.._.._PM A MI_.. . .............. ._._..._... . __ ._,._. __...,_.__.. II pe-i9-3019 6:50 ARRIVAL SCAM SCXEDW FM 01/30/3019 05-01-2019I=AM DEL RESCMED-FROM OV3O/ZM9 TO O5/OI/2019 D541-20197:20AM ON ROUTE FOR DELIVERY 05-01301910:17 AN SMIPMEMDELFYINEO _._____..._._—__._._._______.............. ...._.................. _._............... ...._...____..__.....__.. —..--_—_.............._..._.....___.........._......................................____'__._—.__.__._.__..._...�._ 01995.20190N0en Sbb OYamgbe Dallwry"naca Inc. SUbacNEe Privacy PWIcy, Terms ache Shia map https://app.gso.com/'Fracking/TrackShipment 5/1/1019 From: Oved Daaan TO: Construdion Subject EXTERNAL FE17-05 Clarlficatlon#2.pdf Dale: Sunday,May 5,201911:13:29 PM Attachments: FE1J-OStlar'fication#2 odf Warning:This email originated from outside OCSD.Do not click links or open attachments unless you recognize the sender and are expecting the message. FE17-05 Clarification #2.pdf This email has been checked for vimses by AVG. h1ws://w .ayg.com ODC ENGINEERING & TECHNOLOGY 5675 Walnut Ridge Drive Agoura Hills CA. 91301 Phone 818-707-3405 " Fax 818-889-7585 May 6th,2019 OCSD Brandon Garcia Contracts Administrator Subject: Clarification Request No. 2 Re: Project No. FE17-05 I have looked closely to the District concern I have looked through the project scope of work and I found that my firm is qualified to perform this project. 1. The document that I submitted me correct, meaning there is no missed representation,#4 Elementary school it was F.O. Cat 5 and Cat 6 we did not mentioned PLC same about Normont Elementary School. And other 17 schools of safety and Technology that F.O. Cat 5 Some Cat 6 and MDFs was involved and they are similar to some PLC. 2. On P2-105 Project we built PLC and RIO. 3. The request of 3 project for Modification of Programmable Logic Controller is not applicable since there is no really existence of study to show 3 project experiences is better than one project's experience, especially when my firm built one. 4. The scope of work does show that there is any programing that will be done by the contractor. programing will be done by OCDS or third part that would be hired by the District. 5. RIO is like PLC and we build one on P2-105 Project. 5. In#4 school we had MDF that it is like what requested. 6. The requirement is asking"at least"and not must, it interpret as you can be qualified with one or even none since the programing is not in the scope of work. 7. When the qualification is not part of the scope of work is like to determine that bidder that had 3 projects is better than bidder that had one or two. After all it is Public Work Thank You Overt Dagan serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 Brea .o 714.962.2411 • wwwcsd.com Buena park May 17, 2019 Via Email: oveddacan(agmail.com Cypress & Overnight Mail Fountain Val, Oved Cagan Fuue. ODC Engineering and Technology 5675 Walnut Ridge Drive Garden G Augora Hills CA, 91301 Huntington 8 - SUBJECT: Award Recommendation Notice Irvi Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra The Orange County Sanitation District (OCSD) is in receipt of your letter dated La Palma May 6, 2019, and has completed its evaluation of your firm's Bid submitted in Los Alamitos response to the Invitation for Bids (IFB) for the above-referenced Project. Newport Beach After evaluating your firm's Bid and related clarification responses, OCSD has determined that ODC Engineering and Technology's (ODC)'s Bid is Orange Non-Responsive to the IFB based on the following: Placentia The Bid fails to provide the information required under Part 5, BID SUBMITTAL Santa Ana FORMS, BF-4— PERFORMANCE HISTORY AND FINANCIAL RESOURCES, Section A. That section reads as follows: Seal Bea "A. LIST OF CURRENT AND COMPLETED PROJECTS AND Stanton EXPERIENCE REQUIREMENTS Tustin Using the table in this section, the Bidder shall provide a list of projects Villa Park to demonstrate that it has the experience described below. Projects listed are not required to demonstrate all elements individually, but County of Orange collectively the projects listed shall demonstrate all elements. Costa Mesa Sanitary District 1. Bidder shall list at least three (3) projects completed within the past ten (10) years involving installation of conduit, Cal cable and 120 Midway City VAC power which are similar in nature, scope, complexity, and cost Sanitary District to this IFB. Irvine Ranch Water District 2. Bidder shall list at least three (3) projects completed within the past ten (10) years involving construction installation or modification of Yorba Linda Programmable Logic Controller(PLC) cabinets which are similar in Water District nature, scope, complexity, and cost to this IFB. Bidder must submit this item with its Bid. Attach documents directly ,s behind this page and/or fill in the provided pages. Revision 110218 Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. xSV SANI, 1 - o b2 Off? 77 E Oved Dagan Page 2 of 3 May 17, 2019 For each listed project, include: the project name and location; role as prime contractor or subcontractor; description of work; owner's name, address, phone number of project manager or project engineer; final contract value; and, completion date. Bidder shall ensure the contact names and numbers are current at the time of Bid. If the contacts are no longer employed with the owner, Bidder shall identify at least one contact familiar with the project and Bidder's work thereon. In addition to contacting the references included herein, OCSD may, and retains its right to contact other project owners and such other entities for which Bidder has performed or is performing work." Your firm listed a total of four(4) completed projects on the BF-4. Please note that the fourth project entitled "OCSD Plant 1" was completed outside the number of years required per BF-4, and therefore it was removed from consideration. OCSD has previously informed ODC that only one (1) of the three (3) projects listed in the BF-4 met the requirement for PLC experience under BF-4, Section A.2. On April 29, 2019, OCSD issued a letter titled "Clarification Request No. 2"to your firm requesting that ODC provide information that clearly demonstrates that your firm's Bid meets the requirements of BF-4, Section A.2. That letter stated that failure to provide this information will render ODC's Bid non-responsive. On May 6, 2019, OCSD received ODC's response. OCSD has reviewed the response and has determined that it does not provide any of the information requested in the Clarification Request No. 2 and required by BF-4, Section A.2. Please note that the Bidder must meet both items "I" and "2" of BF-4, Section A. This includes at least three (3) completed projects within the past ten (10) years involving construction, installation, or modification of Programmable Logic Controller (PLC) cabinets which are similar in nature, scope, complexity, and cost to the FE17-05 IFB. In conclusion, ODC has failed to provide the information required under Section A of the BF-4 and specifically requested in OCSD's letter dated April 29, 2019. Therefore, OCSD finds ODC Engineering and Technology's Bid non-responsive to the requirements of the IFB and will proceed with staff's recommendations to the OCSD's Board of Directors as follows: 1. Reject the Bid of CDC Engineering and Technology as Non-Responsive. Revision 11021 B JHVV 5 N4q /o W O W� T C/NC THE EM Oved Dagan Page 3 of 3 May 17, 2019 2. Award the Contract to RP Controls, the lowest responsive and responsible Bidder. The recommendations will first be presented to the OCSD Operations Committee for Contract award. The Operations Committee meeting is scheduled for: Date: June 5, 2019 Time: 5:00 p.m. Location: Orange County Sanitation District Board Room, Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 If approved by the Operation Committee, the recommendations will be forwarded to the OCSD Board of Directors for Contract award. The Board of Directors Meeting is scheduled for: Date: June 26, 2019 Time: 6:00 P.M. Location: Orange County Sanitation District Board Room, Administration Building 10844 Ellis Avenue Fountain Valley, CA 92708 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors Meeting. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593- 7433. randon Garcia Contracts Administrator BG:yp cc: K. Millea S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revislon 110218 From: Construction Sent: Friday, May 17,2019 10:52 AM To: 'oveddagan@gmaii.com' Subject: FE17-05 Award Recommendation Notice- ODC Engineering Attachments: FE17-05 Award Recommendation Notice- CDC Engineering.pdf Mr. Dagan, Attached is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. Orange County sanitation District Contracts, Purchasing&Material Management Division vmw.ouo.com 1 From: Microsoft Outlook To: oveddagan@gmail.com Sent: Friday, May 17, 2019 10:52 AM Subject: Relayed: FE17-05 Award Recommendation Notice - ODC Engineering Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: oveddaaan0amail.com (oveddagan(Womail.com) Subject: FE17-05 Award Recommendation Notice-ODC Engineering 1 Page 1 of 1 80 (4mXGLS www.g o co5m :Ship From .........__... Traek...9.#.�..�_......._....._...._.. Tracking 544838886 PDS ORANGE COUNTY SANITATION DISTRICT ;YAI EKHIN III IIII II II II II II II III I I III 130894 ELLIS ELLIS AVE !FOUNTAIN VALLEY, CA 92708 Ship To ODC ENGINEERING !TECHNOLOGY '.OVED DAGAN AGOURA HILLS 5675 WALNUT RIDGE DRIVE AGOURA HILLS,CA 91301 S91301 A COD: $0.00 Weight: 0 lb(s) Reference: YAI/ FE17-05 NOTICE Delivery Instructions: Signature Type: ADULT 2867961 BUR CA913-D 0 Pint Oats:5/16/3a1g 32! LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique bartode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inklet printer. Step 2: Fold this page In half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms a conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our webslte at www.gso.com. https://app.gao.com/Shipping/ShippingLabel 5/16/2019 Track Shipment Result Details Page 1 of 1 SUrt Page Contact us 800.322.5555 YArpMONOMINMIN I MY Profile Shipping Tracking Repartinr Tools Seconds Leg Out Shipment Tracking Information Tracking Number: SIABISMS6 Sir ooe6 From bS i�pe2s Company: ORANGE COUNTY SANITATION DISTRICT Company: NBC ENGINEERING 6 TECHNOLOGY Address: Ii E WS AVE Address: 5675 WALNUT RIDGE OR VE FOUNTAIN VALLEY CA 92708 AGOURA HILLS,CA 91301 Sent By: YAI PHONGMENHIN Attention: OVEO CAGAN Ina mmtM Sid,DON: 05-12-2019 Service: IDS Reference: Yai/FE32-05 NMICe Del Date: 05-20-2019 Weight(lbs): 0 Signature Type: Adult Signature Rrunned Del Time: 1021 AM COD Value: 0 Special Instructions: Signed BY: D.Oved Dec Value: 0 V ieo I"'Image Transit Details DMo,Tlme Nose 05-17-20196:36 PM ARRilSl-DELLVERY SCHED FOR 05/20/2019 O1-20-2019 6:57 AM ON ROUTE FOR OEINE0.Y 05 20 2019 10:21 AM SHIPMENT DELIVERED BA� 01995-2019 Golden 5ta40vem1gbt Delivery Service Inc. Subscribe Prlvacy Polity TnmS of Use Site Map https://app.gso.com/Tracking/TrackShipment 5/20/2019 Serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Park May 17, 2019 Via Email: roimentel(cDrocontrolsencineer com Cypress & Overnight Mail Fountain Valley Richard J. Pimentel Fullerton RP Controls 1895 West Commonwealth Avenue, Garden Grove Suite D Huntington Beach Fullerton CA, 92833 Irvine SUBJECT: Award Recommendation Notice Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra La Palma The Orange County Sanitation District (OCSD) completed its evaluation of the Bids Los Alamitos submitted in response to the Invitation for Bids (IFB) for the above referenced Project. The lowest responsive, responsible Bidder is RP Controls. The Evaluation Newport Beach Team is recommending RP Controls for Contract award. Orange The recommendation for Contract award will be included as an item on OCSD's Placentia Operations Committee agenda. Santa Ana The Operations Committee Meeting is scheduled for: Seal Beach Date: June 5, 2019 Time: 5:00 p.m. Stanton Location: Orange County Sanitation District Board Room, Administration Building Tustin 10844 Ellis Avenue Villa Park Fountain Valley, CA 92708 County of orange If approved by the Operations Committee, the award recommendation will be forwarded to OCSD's Board of Directors for Contract award. Costa Mesa Sanitary District The Board of Directors Meeting is scheduled for: Midway city Date: June 26, 2019 Sanitary District Time: 6:00 p.m. Irvine Ranch Location: Orange County Sanitation District Water District Board Room, Administration Building vorba Linda 10844 Ellis Avenue Water District Fountain Valley, CA 92708 Revision 110218 Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. 53 �e o � 'HE EPH`P�� P Richard J. Pimentel Page 2 May 17, 2019 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors and Operations Committee Meetings. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593-7433. randon Garcia Contracts Administrator BG:yp cc: K. Miles S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revision 110218 From: Construction Sent: Friday, May 17,2019 10:52 AM To: 'rpimentel@rpcontrolsengineer.com' Subject: FE17-05 Award Recommendation Notice- RP Controls Attachments: FE17-05 Award Recommendation Notice- RP Controls.pdf Mr. Pimentel, Attached is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. 16 Orange County Sanitation District Contracts, Purchasing&Material Management Division wanv.ocsd.com 1 From: Microsoft Outlook To: rpimentel@rpcontrolsengineer.com Sent: Friday, May 17,2019 10:52 AM Subject: Relayed: FE17-05 Award Recommendation Notice- RP Controls Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: rpimentelCahocontrolsenaineer.com (roimentelCalmcontrolsenaineer.mmt Subject: FE17-05 Award Recommendation Notice - RP Controls I Page I of 1 GSII C.�/GLS ww�w.g o cosm Ship From Tracking#: 544838783 PDS '.ORANGE COUNTY SANITATION DISTRICT YAl PLUS EKHIN 1044 ELLIS III II IIII II II II IIIII II II IIII i 108 AVE ;FOUNTAIN VALLEY, CA 92708 Ship To RP CONTROLS RICHARD I. PIMENTEL FULLERTON 1895 W COMMONWEALTH AVE SUITE D FULLERTON, CA 92833 S92832A COD: $0.00 Weight: 0 lb(s) !Reference: YAI/FE17-05 AWARD RECOMMENDATION !Delivery Instructions: Signature Type:ADULT 2867532 NWK CA906-0 0 PrfM DNr:5/WM19 3:35 PM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique barcode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or Inklet printer. Step 2: Fold this page in half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service temrs&conditions Including, but not limited to; limits of liability,declared value conditions, and claim procedures which are available on our website at www.gso.com. https://app.gm.com/SMpping/ShippingLabel 5/16/2019 Serving. Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Pa May 17, 2019 Via Email: brentm(cDherzoaelectric.com Cypress & Overnight Mail Fountain Valley Kevin Ryan Fullerton M.B. Herzog Electric, Inc. 15709 Illinois Avenue Garden Grove Paramount, CA, 90723 Huntington Beal SUBJECT: Award Recommendation Notice wine-. Re: Project No. FE17-05, Plant 1 ICS Network Extension La Habra The Orange County Sanitation District(OCSD) completed its evaluation of the Bids La Palma submitted in response to the Invitation for Bids (IFB)for the above referenced Los Alamitos Project. The lowest responsive, responsible Bidder is RP Controls. The Evaluation Team is recommending RP Controls for Contract award. Newport Beach The recommendation for Contract award will be included as an item on OCSD's Orange Operations Committee agenda. Placentia The Operations Committee Meeting is scheduled for: Santa Ana Date: June 5, 2019 Seal Beach Time: 5:00 p.m. Location: Orange County Sanitation District Stan Board Room, Administration Building 10844 Ellis Avenue Tustin Fountain Valley, CA 92708 Villa Park If approved by the Operations Committee, the award recommendation will be County of orange forwarded to OCSD's Board of Directors for Contract award. Costa Mesa The Board of Directors Meeting is scheduled for: Sanitary District Midway City Date: June 26, 2019 Sanitary District Time: 6:00 p.m. Location: Orange County Sanitation District Irvine Ranch Board Room, Administration Building Water District 10844 Ellis Avenue votes Linda Fountain Valley, CA 92708 Water District Revision 110218 ,.,...... Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. A 7 N a u fp ? NO HE V\ Kevin Ryan Page 2 May 17, 2019 The final Agenda Report will be posted not less than seventy-two (72) hours prior to the Board of Directors and Operations Committee Meetings. Should you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593-7433. Fz�.¢ Brandon Garcia Contracts Administrator BG:yp cc: K. Millea S. Harris K. Lore J. Mohr D. Cutler N. Dubrovski Revision 110218 From: Construction Sent: Friday, May 17, 2019 10:52 AM To: 'brentm@herzogelectric.com' Subject: FE17-05 Award Recommendation Notice- M.B. Herzog Electric Attachments: FE17-05 Award Recommendation Notice- Herzog Electric.pdf Mr. Ryan, Attached Is the Award Recommendation Notice of Project FE17-05, Plant 1 ICS Network Extension.The letter was overnight mailed to your attention today. Orange County Sanitation District Contracts, Purchasing&Material Management Division w.awocsd.com 1 From: Microsoft Outlook To: brentm@herzogelectric.com Sent: Friday,May 17,2019 10:52 AM Subject: Relayed:FE17-05 Award Recommendation Notice- M.B. Herzog Electric Delivery to these recipients or groups is complete, but no delivery notification was sent by the destination server: brentm(aherzoaelectric.com fbrentm(fterzooelectric com) Subject: FE17-05 Award Recommendation Notice -M.B. Herzog Electric t Page 1 of 1 00-322-5555 G,S,1 ( ICI S ww.gso.com I\ www.gso.com Ship From Tracking #: 544838851 PDS ORANGE COUNTY SANITATION DISTRICT YAI PHONGMEKHIN FOUNTAIN VALLEY, CA 92708 III IIIIIIIIIIIIIIIIIIIIIII III Ship To M.B. HERZOG ELECTRIC INC KEVIN RYA N PARAMOUNT 15709 ILLINOIS AVENUE PARAMOUNT,CA 90723 S90723A COD: $0.00 Weight: 0 lb(s) Reference: YAI/ FE17-05 AWARD RECOMMENDATION Delivery Instructions: Signature Type:ADULT 2867827 NWK CA906-J 0 Print Date:5/16/2019 3:37 PM LABEL INSTRUCTIONS: Do not copy or reprint this label for additional shipments-each package must have a unique barcode. Step 1: Use the"Print Label"button on this page to print the shipping label on a laser or inkjet printer. Step 2: Fold this page in half. Step 3: Securely attach this label to your package and do not cover the barcode. TERMS AND CONDITIONS: By giving us your shipment to deliver, you agree to all of the GSO service terms &conditions Including, but not limited to; limits of liability, declared value conditions, and claim procedures which are available on our website at www.gso.com. https://app.gso.com/Shipping/ShippingLabel 5/16/2019 Track Shipment Result Details Page 1 of 1 GSOI 7,GLS soft v.a. CmttaR IN BOD.3223555 YM PMOMOMR I My FROM. Shipping h+Mm9 R.POnm! TWIa Sytums .10.1 Shipment Tracking Information Tracking Number;Sa093e951 Somme From WpyG,rp Capany:m ORANGE COUNTY SANTIATIOM DISTRICT Ca mw M.B.HER20G ELECTRIC INC AOOnen 101144 EWS AVE Addr : MAH)IWNOIS AVENUE FOUNTAIN VAIlIY,CA92JOB PARAMOUNT,CA 90733 Sent By: YAI PXONGMINMIN AMW..: KEVIN RYAN Shipment netella Ship Oat*: 05-I1-2019 SIR POS IMI.NMe: Val/FESJ-OS AwaM Return Del oath 0-21-2019 wa9ML pB.N 0 BI9BBtUre Typal AOUN Sho a me Required Del"me: 1012BAM COO V.IW: 0 Spena 2nebualenn Blpned W: III~ DW Valpel D View spn ImOe TlNalbDe� DRIA/Time IAFG d)-M196:9)HIM ARRIVAL SCAN-DELIVERY SCXID Ppl05/N1/2019 -19-20197: 0AM DEL RESCMIO-110 DEL ATTEMPT-FROM 05/20/2019 T00WW2019 -18-2019 MISS AM ON ROUTE MR DELIVERY 19-20199:13 AM DEL ATTEMPTED-BUSINESS CLOSED-DX9 LOB)53)51 Y18-210199:17,01 DEL ATTEMPT NOTIFICATION SENT-PH*105753751 I8-20191:5B PM DEL RISCXED-BUSINESS CLOSED-FROM OWISS2019 T005/20/2019 5.203019919E PM DEL RESCHED-SECURITY GAR-FROM OS/10/2019 T005/21/2019 5-21-2019 J:IJ AM ON ROUTE FOR DELIVERY 5-21-201910:28 AM 01995-2019 WM State OVmwm DMNaryS l.1 . Su910Oe FXVa,Realty Terms a USE SIM Map https://app.gso.com/Tracking/TrackShipment 5/22/2019 PART A CONTRACT AGREEMENT C-CA-112818 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS..................................................................1 SECTION -2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................4 SECTION -4 PLANS AND SPECIFICATONS ........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5 SECTION -6 TIME IS OF THE ESSENCE .............................................................5 SECTION -7 EXCUSABLE DELAYS......................................................................6 SECTION -8 EXTRA WORK...................................................................................6 SECTION -9 CHANGES IN PROJECT...................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ..............................................................................................9 SECTION - 13 COMPLETION...................................................................................9 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10 SECTION - 15 SURETY BONDS ............................................................................12 SECTION - 16 INSURANCE....................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION.......................................................22 SECTION - 18 TERMINATION................................................................................22 SECTION - 19 WARRANTY....................................................................................22 SECTION -20 ASSIGNMENT.................................................................................23 SECTION -21 RESOLUTION OF DISPUTES ........................................................23 SECTION -22 SAFETY& HEALTH ........................................................................24 SECTION -23 NOTICES.........................................................................................24 C-CA-112818 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION THIS AGREEMENT is made and entered into, to be effective, this June 26, 2019, by and between RP Controls, hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 1 of 25 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans H. General Requirements (GR) iv. Standard Drawings and Typical Details j. CONTRACTOR's Bid 2. In the event of a conflict between terms within an individual Contract Document, the conflict shall be resolved by applying the following principles as appears applicable: a. Figured dimensions on the Contract Documents shall govern. Dimensions not specified shall be as directed by the ENGINEER. Details not shown or specified shall be the same as similar parts that are shown or specified, or as directed. Full-size details shall take precedence over scale Drawings as to C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 2 of 25 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 3 of 25 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION-3 PROJECT The Project is described as: PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 4 of 25 SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION—5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within two hundred seventy (270) calendar days from the date of the "Notice to Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for completion includes five (5) calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION—6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which the various portions of the Work shall be installed or the priority of the work of subcontractors, C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 5 of 25 and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—S EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 6 of 25 SECTION-9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER Initiated Changes'. SECTION-10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Three Hundred Twenty-One Thousand Eight Hundred Eighty Nine Dollars ($321,889)as itemized on the Attached Exhibit"A". Upon satisfaction of the conditions precedent to payment set forth in the General Requirements, Additional General Requirements and General Conditions (including but C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 7 of 25 not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4)week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. B. As used in this Section, the following defined terms shall have the following meanings: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 8 of 25 1. "Net Progress Payment" means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment" means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount"for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." SECTION—13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 9 of 25 Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION—14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 10 of 25 C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 11 of 25 F. Registration: Record of Wages: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION-15 SURETYBONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%)of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 12 of 25 A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)"and/or"OWNER Initiated C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 13 of 25 Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premises/worksite without possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirement(s) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Five Million Dollars ($5,000,000) per occurrence and a general aggregate limit of Five Million Dollars ($5,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 14 of 25 extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 15 of 25 Either(1)a combined single limit of Five Million Dollars ($5,000,000) and a general aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Five Million Dollars ($5,000,000) per person for bodily injury and Five Million Dollars ($5,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employer's liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 16 of 25 performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least One Million Dollars ($1,000,000) and shall apply to sudden and non-sudden pollution conditions (including sewage spills), both at the site or needed due to migration of pollutants from the site, resulting from the escape or release of smoke, vapors, fumes, acids, alkalis, toxic chemicals, liquids or gases, waste materials, or other irritants, contaminants or pollutants. If CONTRACTOR provides coverage written on a claims-made basis, OCSD has the right to approve or reject such coverage in its own discretion. If written on a claims- C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 17 of 25 made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 18 of 25 b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty(30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20)days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 19 of 25 D. Acceptability of Insurers Insurers must have an "A2, or better, Policyholder's Rating, and a Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of 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. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured"on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 20 of 25 all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 21 of 25 OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION—17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION-18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION—19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 22 of 25 The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 23 of 25 arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION-23 NOTICES Any notice required or permitted under this Contract may be given by ordinary mail at the address set forth below. Any parry whose address changes shall notify the other party in writing. TO OCSD: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Clerk of the Board Copy to: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, California 92708-7018 Attn: Construction Manager Bradley R. Hogin, Esquire Woodruff, Spradlin & Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 Copy to: Ricardo J. Pimentel, Owner RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 24 of 25 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: RP Controls 1895 W. Commonwealth Avenue, Suite D Fullerton, CA 92833 By Printed Name Its CONTRACTOR's State License No. 981508 (Expiration Date 03/31/2021) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By Lorenzo Tyner Assistant General Manager and Administrative Services Director C-CA-112818 PROJECT NO. FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 25 of 25 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION.............................................................................1 EXA-2 PROGRESS PAYMENTS ..................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1 EXA-4 STOP PAYMENT NOTICE.................................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3 EXA-6 PAYMENT OF TAXES .......................................................................................3 EXA-7 FINAL PAYMENT...............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...5 ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7 ATTACHMENT 2-SCHEDULE OF PRICES...................................................................8 C-EXA-080414 EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION CONTRACTOR will be paid the Contract Price according to the Schedule of Prices, and all other applicable terms and conditions of the Contract Documents. EXA-2 PROGRESSPAYMENTS Progress payments will be made in accordance with all applicable terms and conditions of the Contract Documents, including, but not limited to: 1. Contract Agreement—Section 11 —"Contract Price and Method of Payment;" 2. General Conditions—"Payment—General"; 3. General Conditions—"Payment—Applications for Payment"; 4. General Conditions—"Payment— Mobilization Payment Requirements;' 5. General Conditions—"Payment— Itemized Breakdown of Contract Lump Sum Prices"; 6. General Conditions—"Contract Price Adjustments and Payments"; 7. General Conditions—"Suspension of Payments"; 8. General Conditions—"OCSD's Right to Withhold Certain Amounts and Make Application Thereof"; and 9. General Conditions—"Final Payment." EXA-3 RETENTION AND ESCROW ACCOUNTS A. Retention: OCSD shall retain a percentage of each progress payment to assure satisfactory completion of the Work. The amount to be retained from each progress payment shall be determined as provided in General Conditions— "Retained Funds; Substitution of Securities". In all contracts between CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not exceed the percentage specified in the Contract Documents. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20)calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 2 of 8 The failure of OCSD to deduct any of the above-identified sums from a progress payment shall not constitute a waiver of OCSD's right to such sums or to deduct them from a later progress payment. EXA-4 STOP PAYMENT NOTICE In addition to other amounts properly withheld under this article or under other provisions of the Contract, OCSD shall retain from progress payments otherwise due the CONTRACTOR an amount equal to one hundred twenty-five percent (125%)of the amount claimed under any stop payment notice under Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for labor, materials, supplies, equipment, and any other thing of value claimed to have been furnished to and/or incorporated into the Work; or for any other alleged contribution thereto. In addition to the foregoing and in accordance with Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop payment notices by refusing to release funds held in escrow pursuant to public receipt of a release of stop payment notice executed by a stop payment notice claimant, a stop payment notice release bond, an order of a court of competent jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR has resolved such claim by settlement. EXA-5 PAYMENT TO SUBCONTRACTORS Requirements 1. The CONTRACTOR shall pay all Subcontractors for and on account of Work performed by such Subcontractors, not later than seven (7) days after receipt of each progress payment as required by the California Business and Professions Code §7108.5. Such payments to Subcontractors shall be based on the measurements and estimates made pursuant to article progress payments provided herein. 2. Except as specifically provided by law, the CONTRACTOR shall pay all Subcontractors any and all retention due and owing for and on account of Work performed by such Subcontractors not later than seven (7)days after CONTRACTOR'S receipt of said retention proceeds from OCSD as required by the California Public Contract Code§7107. EXA-6 PAYMENT OF TAXES Unless otherwise specifically provided in this Contract, the Contract Price includes full compensation to the CONTRACTOR for all taxes. The CONTRACTOR shall pay all federal, state, and local taxes, and duties applicable to and assessable against any Work, including but not limited to retail sales and use, transportation, export, import, business, and special taxes. The CONTRACTOR shall ascertain and pay the taxes when due. The CONTRACTOR will maintain auditable records, subject to OCSD reviews, confirming that tax payments are current at all times. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent (125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract(per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty (30)days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 6 of 8 ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT I hereby certify under penalty of perjury as follows: That the claim for payment is in all respects true, correct; that the services mentioned herein were actually rendered and/or supplies delivered to OCSD in accordance with the Contract. I understand that it is a violation of both the federal and California False Claims Ads to knowingly present or cause to be presented to OCSD a false claim for payment or approval. A claim includes a demand or request for money. It is also a violation of the False Claims Acts to knowingly make use of a false record or statement to get a false claim paid. The term "knowingly" includes either actual knowledge of the information, deliberate ignorance of the truth or falsity of the information, or reckless disregard for the truth or falsity of the information. Proof of specific intent to defraud is not necessary under the False Claims Acts. I understand that the penalties under the Federal False Claims Ad and State of California False Claims Act are non-exclusive, and are in addition to any other remedies which OCSD may have either under contract or law. I hereby further certify, to the best of my knowledge and belief, that: 1. The amounts requested are only for performance in accordance with the Specifications, terms, and conditions of the Contract; 2. Payments to Subcontractors and Suppliers have been made from previous payments received under the Contract, and timely payments will be made from the proceeds of the payment covered by this certification; 3. This request for progress payments does not include any amounts which the prime CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in accordance with the terms and conditions of the subcontract; and 4. This certification is not to be construed as Final Acceptance of a Subcontractors performance. Name Title Dale C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 7 of 8 ATTACHMENT 2— SCHEDULE OF PRICES See next pages for Bid Submittal Forms (RP Controls) BF-14 SCHEDULE OF PRICES, Page 1 -2 C-EXA-080414 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION CONFORMED Page 8 of 8 Bid Submitted By: l'1 CON ROts Itleere of FYm) BF-14 SCHEDULE OF PRICES INSTRUCTIONS A. General For Unit Prices, it is understood that the following quantities are approximate only and are solely for the purpose of estimating the comparison of Bids, and that the actual value of Work will be computed based upon the actual quantities in the completed Work,whether they be more or less than those shown. CONTRACTOR's compensation for the Work under the Contract Documents will be computed based upon the lump sum amount of the Contract at time of award, plus any additional or deleted costs approved by OCSO via approved Change Orders, pursuant to the Contract Documents. Bidder shall separately price and accurately reflect costs associated with each line item, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total prim for each Rem shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each Rem shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid once shall include all costs to complete the Work including profit overhead. etc., unless otherwise specified in the Contract Documents All applicable sales taxes state and/or federal and any other special taxes Patent rights or royalties shall be included in the prices quoted in this Bid B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and services for the construction of the Project per the Contract Documents. BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.FE17-05 PLANT 1 ICS NET WORK EXTENSION Page 1 of 2 Bid Submitted By: I P W W-wLS (Name of Firm) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS (Refer to Note 1 in the Instructions): - Item Description Unit of Ap x Unit Price Emended Price No. Measurement 1. Mobilization: Furnish all labor, materials and equipment and other activities required for Mobilization as described in Division 01, Section Lump Sum +}, iOQ�w { _ $ 22,000.00 01155 and in conformance with the Contract Documents,for the lump sum I price of 5 t 2. Furnish all labor, materials,equipment and services necessary for the i G1 completion of the Contract Work of Project No. FE17.05, Plant 1 ICS Lump Sum : �{ _ $ Network Extension, except for the Work specified under Bid Item No. 1, % L in conformance with the Contract Documents,for a lump sum price of... TOTAL AMOUNT OF BID (BASIS OF AWARD) $ 52 1, X17 BF-14 SCHEDULE OF PRICES C-BF-121817 PROJECT NO.FE17-05 PLANT 1 ICS NETWORK EXTENSION Page 2 of 2 ADMINISTRATION COMMITTEE Melting Dat0 TOBE.Of Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number 2 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 19-04, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the 2019-20 Fiscal Year Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority ("SAWPA")". BACKGROUND Currently, the Orange County Sanitation District (Sanitation District) invoices the Santa Ana Watershed Project Authority (SAWPA) on a quarterly basis for the wastewater discharge received from the SARI line. Annually, the rates for flow, biochemical oxygen demand (BOD), and total suspended solids (TSS) are calculated based upon the fiscal year budget for treatment and disposal costs and the 1996 Wastewater Treatment and Disposal agreement. The rates calculated for each constituent for FY 2019-20 for wastewater discharge are: FLOW $221.03 BOD $319.73 TSS $471.81 The FY 2019-20 rates result in approximately an 18.1%increase in the Flow rate, a 12.4% increase in the BOD rate, and a 15% increase in the TSS rate. These increases are due to a combination of a 6% increase in the Operations & Maintenance budget and changes to the allocation parameters between discharge constituents and the change in equivalent usage per EDU for each constituent as a result of the 2017 Rate Study that was adopted in December 2017. Staff has worked with SAWPA over the past several months and officially communicated the exact rates in May 2019. These rates are separate from the rates charged for additional capacity purchases by SAWPA. RELEVANT STANDARDS • Comply with OCSD Policy — Establishing annual SAWPA treatment and disposal rates • Supports 1996 Treatment and Disposal agreement with SAWPA Page 1 of 2 TIMING CONCERNS Rates should be effective for July 1 of FY 2019-20. RAMIFICATIONS OF NOT TAKING ACTION Rates would not be established for FY 2019-20 for cost recovery for treatment and disposal of SAWPA's wastewater discharge. PRIOR COMMITTEE/BOARD ACTIONS A Resolution is adopted annually in June pursuant to the Wastewater Treatment and Disposal Agreement with SAWPA. ATTACHMENT The following attachment(a)is available in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: Draft Resolution No. OCSD 19-04 Page 2 d 2 RESOLUTION NO. OCSD 19-04 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING USE CHARGES FOR THE 2019-20 FISCAL YEAR PURSUANT TO THE WASTEWATER TREATMENT AND DISPOSAL AGREEMENT W ITH THE SANTA ANA WATERSHED PROJECT AUTHORITY ("SAW PA") WHEREAS, the Board of Directors has approved the Wastewater Treatment and Disposal Agreement with the SANTA ANA WATERSHED PROJECT AUTHORITY ("SAWPA"); and, WHEREAS, said agreement provides for payment of Disposal Costs for the measured and sampled flow of Wastewater discharged from SAWPA's SARI Service Area to Districts' facilities; and, WHEREAS, said agreement provides for adjustment of said Disposal Costs on an annual basis. NOW, THEREFORE, The Board of Directors of the Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. That pursuant to Section C4 of the Wastewater Treatment and Disposal Agreement, the 2019-20 fiscal year charges for Disposal Costs are hereby established as follows: For Flow: $ 221.03 per million gallons of flow For Biochemical Oxygen Demand: $ 319.73 per thousand pounds For Total Suspended Solids: $ 471.81 per thousand pounds PASSED AND ADOPTED at a regular meeting of the Board of Directors held June 26, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-04-1 STATE OF CALIFORNIA ) as COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-04 was passed and adopted at a regular meeting of said Board on the 261h day of June 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 26th day of June 2019. Kelly A. Lore, MIMIC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-04-2 ADMINISTRATION COMMITTEE Meath,Dare TOBA.Of Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Number Item Number 3 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan Wiborg, Director of Environmental Services SUBJECT: ENVIRONMENTAL REGULATORY REPORTS GENERAL MANAGER'S RECOMMENDATION Receive and file environmental regulatory reports: Biosolids Management Compliance Report 2018; Annual Pretreatment Program Report Fiscal Year 2017-2018; Semi-Annual Pretreatment Program Report Fiscal Year 2018-2019 (July-December); Annual Greenhouse Gas Emissions Report 2018; Annual Emission Report 2018; and Marine Monitoring Annual Report 2017/2018. BACKGROUND The Orange County Sanitation District (Sanitation District) is subject to environmental regulatory oversight by the U.S. Environmental Protection Agency (EPA), Regional Water Quality Control Board (Santa Ana Region), California Air Resources Board (CARB), and South Coast Air Quality Management District (SCAQMD). These regulatory bodies require routine reporting, which is prepared by the Sanitation District's Environmental Services Department. These reports include: 1. Annual Biosolids Report (40 CFR Part 503) required by the Sanitation District's NPDES permit for ocean discharge. Due February 19th of every year. 2. Annual and Semi-Annual Pretreatment Program Reports required by the Sanitation District's NPPES permit. Due October 3151 and March 318t respectively, of every year. 3. Annual Mandatory Reporting of Greenhouse Gas Emissions required by CARB. This report uses an online portal for report preparation and submission. Due April 10'h of every year. 4. Annual Emission Report required by SCAQMD. Due early-mid March of every year. 5. Annual Marine Monitoring Report required by the Sanitation District's NPDES ocean discharge permit. Due March 151h of every year. RELEVANT STANDARDS • Comply with environmental permit requirements Page 1 of 4 ADDITIONAL INFORMATION Environmental regulatory reporting is routinely required by local, state, and federal regulatory bodies to ensure protection of water, air, and land resources. Some of the reporting is required to be completed using online reporting portals, which perform calculations based on user input of operational data. The following regulatory reports were filed recently. The Biosolids Annual Report contains details about the volume, quality, and locations of management of the Sanitation District's biosolids. The Sanitation District produced about 799 tons per day of biosolids, including digester cleanings, in 2018. The biosolids are anaerobically digested and dried to about 20% solids. The biosolids are managed via composting and land application. The Biosolids Annual Report was submitted electronically as required by EPA's Electronic Reporting Rule. Under its ocean discharge permit, the Sanitation District is required to establish and implement an approved pretreatment program to control the level of pollutants discharged into the sewer system. The Sanitation District is also required to submit Pretreatment Program Annual and Semi-Annual Reports detailing the status of the approved program. The reports identified herein contain information about all industrial dischargers permitted by both the Sanitation District and the Santa Ana Watershed Project Authority (SAWPA). The Annual and Semi-Annual reports were successfully completed and submitted prior to the October 31, 2018 and March 31, 2019 respective deadlines. The SCAQMD's Annual Emissions Report (AER) represents a facility's annual inventory of criteria pollutants (VOC, NOx, SOx, CO, PM) and toxic air emissions. The emissions are calculated based on throughput volume and emissions measured at applicable process areas and emission units. The report assesses fees based on a facility's emissions of air contaminants for the reportable year, as specified in SCAQMD Rule 301. The AER reports for both Plants Nos.1 and 2 are prepared and submitted using SCAQMD's web-based emission reporting tool. For calendar year 2018, Plant No. 1 emitted approximately 32 tons of criteria pollutants and paid total fees in the amount of $12,914.04; Plant No. 2 emitted approximately 25 tons of criteria pollutants and paid total fees in the amount of $8,465.03. The reports were successfully completed and submitted on March 13, 2019, prior to the March 19 deadline. In accordance with the California Global Warming Solutions Act [Assembly Bill 32, 2006], the California Air Resources Board (GARB) requires all major sources that directly emit Greenhouse Gases (GHG) to annually calculate and submit on a calendar year basis their GHG emissions resulting from their combustion of fuel and importation of electrical power. The GHG inventory report focuses primarily on the emissions of carbon dioxide (CO2), methane (CH4), and nitrous oxide (N20). Similar to SCAQMD's AER reporting portal, the GHG report is electronically prepared and submitted via CARB's Cal a-GGRT reporting system. For calendar year 2018, Plant No. 1 reported roughly 26,802 metric tons Of CO2 emissions, while Plant No. 2 reported approximately 31,352 metric tons Of CO2 emissions. The reports were successfully completed and Page 2 of 4 electronically submitted on April 9, 2019 and are pending third party verification due by August 10, 2019. The Sanitation District has completed its annual report for the marine monitoring program, required by the USEPA and the Santa Ana Regional Water Quality Control Board under our NPDES permit. This report summarizes and presents data collected from July 2017 through June 2018, and was successfully completed and electronically submitted on March 14, 2018, in advance of the March 15 deadline. This report evaluates and measures potential impacts to water quality, sediment chemistry, fish and invertebrate community, fish health, and sediment toxicity. The Sanitation District's ocean monitoring has three required components: Core Monitoring, Regional Monitoring, and Strategic Process Studies. Components of these monitoring activities include: monitoring of benthic sediments for chemical deposition, changes in biological communities, and the health of fish living near the Sanitation District's ocean outfall. In addition to profiling plume dynamics from the Sanitation District's effluent discharge, water chemistry, oxygen availability, and physical conditions throughout the water column are monitored to ensure the Sanitation District's continued compliance with permit requirements and mission. As the Sanitation District continues to make advancements to the wastewater treatment processes, our marine monitoring program continues to show improvement of environmental health around the outfall and outer monitoring area. Water quality measurements demonstrate no negative environmental impacts due to the Sanitation District's effluent and brine discharge. Sediment quality concentrations of metals and organic contaminants were well below established guidelines that might result in biological concerns. Marine invertebrates and fish have shown comparable abundances near the outfall and non-outfall stations alike. Monitoring of fish tissue for trace metals and chlorinated pesticides in muscles and/or livers were also low and comparable at outfall and non-outfall stations. These results were also well below federal and state human consumption guidelines. 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: • Biosolids Management Compliance Report 2018 (separate electronic file) • Annual Pretreatment Program Report Fiscal Year 2017-2018 (separate electronic file) Page 3 d4 • Semi-Annual Pretreatment Program Report Fiscal Year 2018-2019 (July-December) (separate electronic file) • Annual Greenhouse Gas Emissions Report 2018 (separate electronic file) • Annual Emission Report 2018 (separate electronic file) • Marine Monitoring Annual Report 2017/2018 (separate electronic file) Page 4 d 4 ADMINISTRATION COMMITTEE Melting Dat0 TOBE.Of Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number s 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: 2019-20 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS GENERAL MANAGER'S RECOMMENDATION A. Approve the Orange County Sanitation District FY 2019-20 Operational Property- Liability Insurance Renewals for the not-to-exceed amounts specified below: Excess General Liability Insurance— Not to Exceed $515,371; • Property and Boiler & Machinery— Not to Exceed $837,230; • Earthquake Insurance — Not to Exceed $86,585; and • Excess Workers' Compensation Insurance - a rate of$0.3120 per $100 of payroll — Not to Exceed $218,000; and B. Provide an analysis of pricing and different retentions within six months. BACKGROUND The Risk Management Division of Human Resources (Risk Management) provides the Administration Committee an annual status update regarding the upcoming annual renewals of the Orange County Sanitation District's (Sanitation District) major insurance policies for the upcoming year. Risk Management staff and the Sanitation District's operational insurance broker, Alliant, began the renewal process in January and received final quotes in June. After successfully negotiating with the insurance carriers,Alliant was able to secure competitive rates for the Sanitation District without compromising the quality of coverage provided. The insurance market has been in a state of flux due to events around the world and in the state of California. Insurers have taken losses for previous years and, as a result, insurance costs will increase to absorb the losses. The cost of insurance coverage will increase by 11.5%, or $170,294, for a total cost of $1,657,186 for FY 2019-20. The four major lines of insurance, which are included in the Sanitation District's budget, are: 1) Excess General Liability Insurance 2) All-Risk Property and Flood insurance (includes Boiler& Machinery insurance) Page 1 of 4 3) Earthquake Insurance 4) Excess Workers' Compensation RELEVANT STANDARDS • Protect Orange County Sanitation District assets PROBLEM Insurance is necessary to protect the Sanitation District's assets and financial well-being. PROPOSED SOLUTION Approve the insurance renewals as described above to ensure continued coverage of the Sanitation District's assets. TIMING CONCERNS Board approval is necessary since current insurance will expire June 30, 2019. RAMIFICATIONS OF NOT TAKING ACTION Without Board approval, the Sanitation District cannot finalize the contracts with the insurance carriers, and the Sanitation District's insurance will lapse. PRIOR COMMITTEE/BOARD ACTIONS April 2019 - Informational presentation to the Administration Committee detailing each of the five major insurances for the Sanitation District operations, and the status of the insurance market. ADDITIONAL INFORMATION 1) Excess General Liability Insurance Program The Sanitation District's Excess General Liability Insurance Program is currently provided through the California Municipal Excess Liability Program (CAMEL) and its sister program, the Alliant National Municipal Liability Program (ANML). The Sanitation District has participated in the CAMEL program since FY 1996-97. This program currently provides the Sanitation District with a $40 million dollar policy of comprehensive coverage for municipal liability, bodily injury and property damage, and personal injury. The program was structured to also include Employment Practices and Public Officials Errors & Omissions coverage. The $40 million dollar coverage has a self- insured deductible of $500,000. Since 1997, the Employment Practices portion of coverage has been enhanced from a $2 million dollar sub-limit to the full policy limit of $40 million dollars. Page 2 of 4 2) All-Risk Property and Flood Insurance The All-Risk Property and Flood Insurance Program (Property Insurance) provides for comprehensive coverage for much of the Sanitation District's real and personal property regarding virtually all perils including fire, flood, and business interruption. Current Property Insurance limits are$1 billion dollars for most perils other than flood and earthquakes, and $300 million dollars forflood,with many sub-limitsfor various situations. In order to reach $1 billion dollars in limits, the broker had to arrange for more than a dozen different insurers. The Self-insured Retention (SIR), or deductible, is$250,000 per occurrence for most types of losses. Since the late 1990's, the Property Insurance has been with a nationwide joint purchase property insurance program called Public Entity Property Insurance Program (PEPIP), one of the world's largest property programs. It is important to note that this joint purchase property insurance program offers the purchasing power of numerous large public entities without the pooling or sharing of coverage or losses. The Boiler & Machinery insurance program, part of the property insurance, provides comprehensive coverage for loss caused by machinery breakdown and explosion of steam boilers or other covered process equipment, including damage to the equipment itself and damage to other property caused by covered accident. The current Boiler & Machinery insurance program provides coverage of $100 million dollars per occurrence with deductibles ranging from $25,000 to $350,000 for losses caused by covered machinery breakdown (e.g., motors, steam turbines, digesters, co-gen engines). Damages to the equipment, as well as damages to other property and improvements caused by the machinery breakdown, are covered by the Boiler & Machinery insurance. This program augments the Sanitation District's all-risk property insurance that covers perils such as fire and flood. 3) Earthquake Insurance The Sanitation District previously carried earthquake insurance as part of its Property Insurance, but in the last 15 years earthquake insurance proved difficult to obtain or not cost-effective. The Sanitation District asked its insurance broker each year to survey the market to see if rates have changed. Finally, in 2015 a plan was created to insure several key Sanitation District structures identified by Engineering, thus keeping the cost in line. The insurance is a high deductible plan with a limit of$25 million dollars in total. 4) Excess Workers' Compensation Insurance The Excess Workers' Compensation insurance coverage is with the California State Association of Counties Excess Insurance Authority (CSAC EIA). The Sanitation District has participated in this program or its predecessor since 2003. The Excess Workers' Compensation program currently provides "Statutory" (unlimited) coverage with a SIR of Page 3 d4 $1 million dollars. The use of Excess Workers' Compensation Insurance dates back to the late 1980's. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (wwwocsd.corn with the complete agenda package: • PowerPoint Presentation from Administration Committee of June 12, 2019 Page 4 of 4 :, Administration Committee At June 12, 2019 s 2019-20 Operational p v Insurance Renewals Alliant: The specialty insurance leader • - • - AAL INant IL State of ■ Commercial Insurance marketplace overall is hard ■ 2016, 2017 and 2018 were poorly performing years for the industry: 2017: Highest year insurable loss year on record 2018: 3rd highest insurable loss year on record 2016, 2017, 2018 Market Posting a Loss in all three years ■ Accordingly, shrinking market appetite for risk ■ Largest carriers, Travelers, AIG, FM Global, Lloyds of London, Chubb retrenching/re-underwriting everything ■ Wildfire risk is real pressure point in California, as are "runaway" jury awards in CA, and concerns over police brutality, road design and abuse AM U .J. Inflation-Adjusted Cat Losses Hara�iama, Katrina, Rita, 104 $100 Wilma —Average for Decade $90 Hurricane WTC 79 $80 Andrew -u* $70 00 o $60 N $so 1990s: $15 B 2000s: $25 B 2010s: $35 B 50 0 40 540 37 ra 1980s-$5 B $30 $20 $10 $0 ao ao ao ao co co ao ao ao aommmm m mmmmm o 000000000 .� .-+ .-+ .-+ .-+ .� .� .� ao r 1 • worst year for - • Catastrophe Insured Loss per • 9 : 1 1 ' *2018: Inflation-adjusted estimate,subject to change.2010s is average of 2010 to 2018. Sources: Property Claims Service,a Verisk Analytics business; Insurance Information Institute. s Marketing Activities Property & Liability Insurance programs for OCSD are marketed with a multi-year strategy in mind. Recognizing a significant hardening of the market, the Property and Liability programs were heavily marketed in 2018. Physical site inspections were conducted XL Catlin, Zurich and Travelers as well as AIG for Property, and 20 separate carriers were approached for Liability. The renewal quotes received are representative of a full canvassing of available public entity marketplace. Significant advantages in current program were seen in the area of Flood and cyber liability coverage. Excess Workers' Compensation OCSD participates in the CSAC-EIA program with a retention that is lower than the open market. A competitive quotation was received this year in the open market, however, the quotation carries a significantly higher retention for the van pool operation, and further lacks the depth and breadth of services offered by the EIA which are valued by OCSD, so this proposal was rejected. 1 1 OCSD Historic am - Premium to Values/Payroll by Year 0.60U — 0.500 — 0.400 0.300 0.200 am 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 —Property&Boiler —Liability —Excess WC A= X�µ CostsInsurance Renewal Excess Liability 2018(Actual) 2019(Proposed) Dollar Change %Change Limit 40,000,000 40,000,000 - 0% SIR 500k/500k 500k/500k - Premium 497,763 515,371 17,608 4% Excess Workers'Como Payroll 69,779,430 69,871,030 91,600 0.1% Limit Statutory Statutory - - Rate Per$100 0.3143 0.3120 (0.002) -0.7% SIR 1,000,000 1,000,000 - 0.0% Premium 219,328 218,000 -1,328 -0.6% Property(incl. B&M) Values 2,135,970,500 2,174,174,381 38,203,881 2% Deductible 500,000 500,000 - 0% Rate Per$100 0.03215 0.03851 .0064 20% Premium 686,622 837,230 150,608 21.9% Earthquake Values 104,773,728 105,392,597 618,869 1% Rate Per$100 0.0794 0.0822 0.00 -0.83% Deductibles 5%$5MM Min 5%$5MM Min - 0% Premium 83,179 86,585 3,406 4.1% Total Premium 1,486,892 1,657,186 170,294 11.5% It { . Questions ? T HAN K YO U ! m1 iant ADMINISTRATION COMMITTEE Melting D310 TOBE.Of Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number 6 13 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FLEET MANAGEMENT INFORMATION SYSTEM GENERAL MANAGER'S RECOMMENDATION A. Award a Professional Consultant Services Agreement to Total Resource Management, Inc. for the procurement of software and services to implement and configure the Transportation Module for Enterprise Asset Management System (IBM Maximo), Specification No. CS-2018-100313D, for a total amount not to exceed $424,101; and B. Approve a contingency of$42,410 (10%). BACKGROUND The current Fleet Management Information System (FMIS)was implemented in 2007 and provides basic Fleet asset tracking, motor pool management, and maintenance management capabilities for the Orange County Sanitation District (Sanitation District). Fleet assets are comprised of vehicles, mobile/portable equipment, and shop equipment, totaling more than 700 assets. IBM Maximo was implemented in January 2013 and is used by the Sanitation District's Warehouse and Operations and Maintenance Department in the lifecycle management of the treatment plants' physical assets. The system provides real-time visibility into asset performance and enables staff to proactively control and optimize asset performance. 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 service level or standard PROBLEM The current FMIS operates as a stand-alone system and does not integrate with other systems including the Financial Management (JD Edwards), IBM Maximo, Time Card (WorkForce Software), Outlook, and SharePoint. Page 1 of 3 Having the Plant Asset in one system and the Fleet Asset in another system has created a significant operational scheduling complexity and inefficiency for the Sanitation District. The current FMIS does not allow maintenance planners to directly schedule Fleet equipment for use in plant maintenance activities. The coordination of Fleet equipment is performed using a manual process by phone. Additionally, the current FMIS is based on an outdated technology which requires additional support and maintenance efforts. PROPOSED SOLUTION To properly maintain, repair, and manage the Sanitation District's Fleet Assets, the Information Technology (IT) and Fleet Services divisions request to purchase the IBM Maximo Transportation module and related professional services to install and configure the system. This will allow the Sanitation District to consolidate Fleet Asset with the Plant Asset and leverage the existing IBM Maximo integration with our other Enterprise Systems. The result for the Sanitation District will be improved asset and labor productivity, better optimization of maintenance resources, improved efficiency in inventory management, and prevention of asset failure. The Maximo Transportation module will add required functionality for Fleet vehicles and portable/mobile equipment. This module also provides required support for Fleet Motor Pool management and equipment reservations. TIMING CONCERNS Proper maintenance and performance of fleet assets is imperative for the continued support and safety of plant operations. RAMIFICATIONS OF NOT TAKING ACTION The decision not to purchase the IBM Maximo Transportation Module and related professional services will result in continued inefficiencies. This will negatively impact the Maintenance organization's planned maintenance environment. PRIOR COMMITTEE/BOARD ACTIONS December 2017 - Approved a Professional Services Agreement for Specification No. 5-2017-871 BD with Total Resource Management, Inc. for IBM-Maximo Enterprise Asset Management Phase IV— Lock Out Tag Out (LOTO) Software. ADDITIONAL INFORMATION On December 18, 2018, the Sanitation District issued a Request for Proposal (RFP) for the Fleet Management Information System; the RFP closed on January 31, 2019. The Sanitation District received responses from Total Resource Management, Inc.; Fields Consulting; CCG Systems Inc.; and AssetWorks LLC. A panel consisting of four Sanitation District staff reviewed and ranked the proposals. This RFP used the individual scoring method. Evaluators discussed the relative strengths and weaknesses of the vendor's proposal in each area. Staff recommends selection of Total Resource Page 2 d 3 Management, Inc. to provide software licensing, implementation, and configuration services of the IBM Maximo Transportation Module for a not-to-exceed amount of $424,101. PROPOSAL EVALUATION TABLE Total Firm Evaluator# 1 Evaluator#2 Evaluator#3 Evaluator#4 Weighted Score (Points)/ Rankin Total 675.00 672.50 690.00 322.50 590.00 Resource Rank: 1 Management, Inc. AssetWorks, 602.50 365.00 400.00 212.50 395.00 LLC I ank: 2 Fields 490.00 250.00 350.00 92.50 295.63 Consulting Rank: 3 CCG 417.50 300.00 280.00 185.00 295.63 Systems Inc. Rank: 3 Initial Proposed Fee $531,603 Negotiated Fee $424,101 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 8, Page 10, EAM Software & Process Implementation (SP-100)). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Consultant Services Agreement Page 3 of 3 PROFESSIONAL CONSULTANT SERVICES AGREEMENT Fleet Management Information System Specification No. CS-2018-1003BD 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 Total Resource Management, Inc. with a principal place of business at 510 King Street, Suite 200, Alexandria, VA 22314 (hereinafter referred to as "Consultant") collectively referred to as the "Parties". WITNESSETH WHEREAS, based on Consultant's expertise and experience, OCSD desires to temporarily engage Consultant to provide Fleet Management Information System "Services" as described in Exhibit"A", and WHEREAS, Consultant submitted its Proposal, dated January 31, 2019; and WHEREAS, on June 26, 2019, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Consultant; and WHEREAS, OCSD has chosen Consultant to conduct Services 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 agree as follows: 1. Definitions 1.1. As-Built Documentation. The term "As-Built Documentation" means the Baseline Documentation plus the Documentation for any Configuration Changes and Customization Modifications. All "As-Built Documentation" shall supplement and not conflict with the terms of this Agreement. In the event of a conflict, the terms of this Agreement shall prevail. 1.2. Configuration Changes. The term "Configuration Changes" is defined as any modification or changes other than a Custom Modification. 1.3. Consultant Application Software. The term "Consultant Application Software" is defined as any Software owned or sublicensed, installed and/or configured by Consultant as a component of the Project, whether in machine readable or printed form, including, but not limited to any applications, modules, subsystems, Interfaces, Configuration Changes, Custom Modifications, Updates and Documentation. 1.4. Custom Modification. The term "Custom Modification" is defined as a modification of the Consultant Application Software Source Code or data base structure, which provides new or improved functions or features to address specific requirements of this Agreement. Orange County Sanitation District 1 of 20 Specification No. CS-2018-1003BD Version 032018 1.5. Defect. The term "Defect' is defined as any error, failure, deficiency, or any other unacceptable variance or failure of the System or any component thereof to fully conform to the warranties and requirements described in this Agreement. With respect to the Consultant Application Software, the term "Defect" is defined as any error, failure, or deficiency or any other unacceptable variance from any required, specified, or expected program behaviors as may be required by OCSD or necessary for the Consultant Application Software to operate correctly and in full compliance with the terms of this Agreement. This includes expected program behaviors as described in any Consultant Application Software Documentation. In the event of a conflict between this Agreement and Documentation provided by Consultant to OCSD, the terms and conditions of this Agreement shall prevail. 1.6. Documentation. The term "Documentation" is defined as all written, electronic, or recorded works including all"As-Built Documentation"that describe the uses,features, functional capabilities, performance standards,and reliability standards of the System, or any subsystem, component, or Interface, and that are published or provided to OCSD by Consultant or its subcontractors, including, without limitation, all end user and System administrator manuals, help files, training aids and manuals, training and support guides, program listings, data models, flow charts, logic diagrams, and other materials related to or for use with the System. 1.7. Final System Acceptance. The term "Final System Acceptance" shall be defined as that date on which all Services under Section Titled "Project Scope and Deliverable" of Exhibit "A" Scope of Work have been successfully completed by Consultant and accepted by OCSD. 1.8. Fix Pack. The term "Fix Pack" is defined as a formal release of programming code and Documentation that provides corrections to any Consultant Application Software programs including, but not limited to, bug fixes, error corrections and patches. 1.9. Functional, Performance and Reliability Specifications and Requirements. The term "Functional, Performance and Reliability Specifications and Requirements" is defined as all definitions, descriptions, requirements, criteria, warranties, and performance standards relating to the System set forth in: (a) this Agreement; (b) any mutually agreed upon Change Orders pursuant to Section 4, Modification to Exhibit"A" Scope of Work; and (c) any functional and/or technical specifications which are published or provided by Consultant or its licensors or suppliers from time to time with respect to the System or any Products. 1.10.Interfaces. The term"Interfaces" is defined as one or more of the specialized software applications developed or sublicensed by Consultant and installed as a part of the Project for the purpose of sharing information (data) between Consultant and/or Consultant Application Software and any other software program or device. Functional requirements for each Interface to be included as a part of the System are provided Exhibit"A", Scope of Work. 1.11.Products. The term "Products" is defined as all Software listed in the "Exhibit "A" Scope of Work, Exhibit "B" Consultant's Best and Final Offer (BAFO) Proposal and Exhibit"BA" Consultant's BAFO Cost Proposal Form respectively. 1.12.Project. The term "Project" is defined as the totality of Consultant's obligation under this Agreement to develop, supply, install, configure,test, implement and maintain the System. Orange County Sanitation District 2 of 20 Specification No. CS-2018-1003BD Version 032018 1.13.Services. The term "Services" is defined as the implementation, development, training, configuration, loading, testing, project management and other services to be provided by Consultant under this Agreement, including, without limitation, the tasks detailed in Exhibit"A", Scope of Work. 1.14.Software. The term "Software" includes the following components provided and licensed by Consultant under this Agreement: (a)Consultant Application Software; (b) Third-Party Software; (c) Custom Modifications and (d) Interfaces. 1.15.System. The term "System" is defined as the collective whole of all Products and Services to be purchased, developed, licensed, supplied, installed, configured, tested and implemented by Consultant under this Agreement. 1.16.System Administrator Documentation. Is defined as that portion of the Documentation addressing the operation and maintenance functions of the System. 1.17.Third-Party Software. The term "Third-Party Software" is defined as any Software to be supplied under this Agreement that is purchased or licensed directly from any source external to Consultant for use with or integration into the System. 1.18.Updates. The term "Updates" is defined as modifications, improvements, additions, and corrections to the Products and/or related Documentation, including functional and/or product enhancements, bug fixes, patches, new releases, new versions, and replacement modules or products that Consultant makes generally available to its customers with or without an additional fee. 1.19.Go-Live Support. The term "Go-live Support" is as described in "Exhibit"A" Scope of Work, Exhibit "B" Consultant's BAFO Proposal and Exhibit "B-1" Consultant's BAFO Cost Proposal Form of this Agreement. 1.20.Work Product. The term "Work Product" is defined as the Products and Services and all other programs, algorithms, reports, information, designs, plans and other items developed by Consultant under this Agreement, including all partial, intermediate or preliminary versions thereof. 2. Miscellaneous 2.1. Access to Premises. OCSD shall provide Consultant with reasonable and timely access to the sites and personnel necessary for Consultant to perform its obligations under this Agreement. OCSD shall allow Consultant personnel reasonable access to OCSD site and facilities (telephone, facsimile, parking, etc.) during normal business hours and at other reasonable times as requested by Consultant and pre-approved by OCSD. The assistance or presence of OCSD's personnel will not relieve Consultant of any responsibilities under this Agreement. 2.2. Amendments. No amendment or modification to this Agreement is valid unless it is contained in a writing signed by both parties. 2.3. Approvals in Writing. All approvals or consents required or contemplated by this Agreement must be in writing to be effective. Orange County Sanitation District 3 of 20 Specification No. CS-2018-1003BD Version 032018 2.4. Background Checks and Removal of Personnel. Prior to being allowed to perform any work on this Project, all non-OCSD personnel assigned to the Project may be required to submit to and pass a background check by the Fountain Valley, California Police Department. In addition, OCSD shall have the sole and exclusive right to require Consultant to immediately remove any individual from the Project for any reason deemed to be in the best interests of OCSD. Consultant shall replace any employee removed from the project within ten (10) business days of said removal. 2.5. Compliance with Work Rules. Consultant will ensure that, while they are on OCSD premises, Consultant's personnel and subcontractors will comply with OCSD's working rules and policies, including OCSD's security and safety procedures, and the Human Resources Policies specified in Exhibit "F". 2.6. Successors and Assigns. This Agreement is binding on and inures to the benefit of the parties and their respective successors and assigns. 2.7. Advertising. Consultant shall not refer to the existence of this Agreement in any press release, advertising or materials distributed to prospective customers without the prior written consent of OCSD. 2.8. This Agreement and all Exhibits hereto (called the "Agreement") is made by OCSD and Consultant. The terms and conditions herein exclusively govern the purchase of Services as described in the Scope of Work Exhibit"A". 2.9. Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein. Exhibits to this Agreement are as follows: Exhibit"A" Scope of Work Exhibit"B" Consultant's BAFO Proposal Exhibit"B-1" Consultant's BAFO Cost Proposal Form Exhibit"C" Acknowledgement of Insurance Requirements Exhibit"ID" OCSD Safety Standards Exhibit"E" Not Used Exhibit"F" Human Resources Policies 2.10.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. 2.11.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. 2.12.The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any Paragraph or provision hereof. 2.13.The term "workday". Workdays are defined as all days that are not Friday, Saturday and Sunday, or legally OCSD observed holidays. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 6:30AM and 4PM PST and shall conform to OCSD work schedules. OCSD review periods shall not include legally OCSD observed holidays. Orange County Sanitation District 4 of 20 Specification No. CS-2018-1003BD Version 032018 2.14.00SD holidays (non-working days) are as follows: New Years Day, Lincoln's Birthday, Presidents' Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 2.15.The term "days", when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays. 2.16.Work Hours: The work required under this Agreement may include normal Business hours, evenings, and weekends. 2.17.Consultant shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 2.18.Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Consultant as a result of work performed in anticipation of purchases of said services by OCSD. 2.19.Goods and Services,whether stated separately or in conjunction with each other,shall mean Fleet Management Information System and the services related to the provision of such as described in Exhibit"A" 2.20.Construction of Agreement. This Agreement is the product of joint discussions and negotiations at arms' length between the parties, both of whom are sophisticated and knowledgeable in business matters and both of whom have relied on the advice of independent legal counsel. Any rule of law which would require interpretation of this Agreement against the party that drafted it shall have no application to this Agreement. 3. Scone of Work: General requirements for the scope of this Project are listed below. A detailed list of tasks and responsibilities are included in Exhibit"A", Scope of Work. 3.1. Scope of Work. Subject to the terms of this Agreement, Consultant shall perform the Services identified in Exhibit "A" Scope of Work. Consultant warrants that all of its Services shall be performed in a competent, professional and satisfactory manner. 3.2. Modifications to Equipment and Facilities. OCSD shall be responsible for making OCSD-approved modifications identified in an OCSD approved, Site Analysis Report. Thereafter, Consultant will be precluded from asserting that it is unable to perform its obligations under this Agreement because of any pre-existing condition. During implementation, any changes to the System or any costs that may be incurred in order to complete the requirements of this Agreement but were not identified in the Site Analysis Report will be the sole and exclusive responsibility of Consultant. In addition, if the System is unable to meet the Functional, Performance and Reliability Specifications and Requirements in this Agreement after the identified upgrades and changes have been made, then Consultant will be responsible, at its own expense, for making any further upgrades or changes necessary to achieve this result. 3.3. User Qualifications. OCSD shall use its best efforts to ensure that persons operating the System will be qualified, supervised, and trained in the use of personal computers and normal operations. Consultant will ensure that all training on the System or System components will be conducted professionally and effectively so that each operator trained by Consultant is proficient in its use. Orange County Sanitation District 5 of 20 Specification No. CS-2018-1003BD Version 032018 3.4. Transition. Consultant will work with OCSD to ensure a smooth and efficient transition from OCSD's current systems to the new System and to minimize disruption to current operations, even if it necessitates working late evening, early morning, or weekend hours. Any required disruptions to OCSD's operations shall be scheduled in advance and approved by OCSD. 4. Modifications to Scope of Work: Requests for modifications to the Exhibit "A" Scope of Work can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. A review of the time required for the modification will be made by OCSD and Consultant and the Agreement period adjusted accordingly. 5. License 5.1. Grant of License. 5.1.1. OCSD shall have the right to use all Consultant Application Software as may be necessary in order to operate the System purchased under this Agreement. In addition, OCSD shall have the right to use the Consultant Application Software as necessary to (a) operate the System (b) conduct internal training and testing, and (c)perform disaster recovery, backup, archive and restoration testing and implementation as may be required in OCSD's judgment. This license shall apply to all commercially available Updates throughout the term of this Agreement. OCSD shall have the right to use all Consultant Application Software licensed under this Agreement on any equipment at any facility and at any location and may make as many copies of the Software as it desires to support its authorized use of the Software, provided the copies include Consultant's or the third-party owner's copyright or other proprietary notices. 5.1.2. Not Used. 5.1.3. The approval of Consultant to use Consultant Application Software and Third Party Software and OCSD's use of it shall not constitute a waiver of OCSD's right to reject the System, in whole or in part, if the requirements for Final System Acceptance are not met. 5.2. Limitations on License. Except as licensed to OCSD, Consultant retains all of its current rights, title, and interest in the Consultant Application Software, including Derivative Works, Custom Modifications, Configuration Changes and Updates. Unless authorized by Consultant or required by law, OCSD will not: (1)make available or distribute all or part of the Software to any third party by assignment, sublicense or any other means; or(2)disassemble, decompile, or reverse engineer the Software, or allow any third party to do so. 5.3. Security. Certain Software Packages are required to operate in conjunction with a hardware lock device or in conjunction with license administration Software and a license authorization key provided by Consultant or its representative. OCSD shall take no steps to avoid or defeat the purpose of any required lock device or authorization key. Use of any Software Package without a required lock device or authorization key shall be unlicensed under this Agreement. Orange County Sanitation District 6 of 20 Specification No. CS-2018-1003BD Version 032018 5.4. Restricted Access. OCSD shall use every reasonable method to restrict access to the Consultant Application Software, or Documentation related thereto, to persons not authorized to use the Consultant Application Software under the terms of this Agreement. OCSD shall not copy the Consultant Application Software or Documentation except as necessary for use under this Agreement. OCSD shall not decrypt, reverse compile or disassemble the Consultant Application Software. OCSD shall not export or re-export the Consultant Application Software or Documentation. Furthermore, OCSD shall abide by all applicable Federal and State Trademark and Copyright laws. 6. Compensation: Compensation to be paid by OCSD to Consultant for the Services provided under this Agreement shall be a total amount not to exceed Four Hundred Twenty-Four Thousand One Hundred One Dollars ($424,101.00). 7. California Department of Industrial Relations(D/R)Repistration and Record of Wastes 7.1. To the extent Consultant's employees and/or subconsultants who will perform work under this Agreement for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, Consultant and subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. 7.2. The Consultant and subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. 7.3. Pursuant to Labor Code Section 1776,the Consultant and subconsultants shall furnish a copy of all certified payroll records to OCSD and/or general public upon request, provided the public request is made through OCSD, the Division of Apprenticeship Standards, or the Division of Labor Standards Enforcement of the Department of Industrial Relations. 7.4. The Consultant and Subconsultant shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 8. Payment and Invoicing 8.1. OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project Manager or designee, of itemized invoices submitted for Services completed in accordance with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 8.2. Invoices shall be emailed by Consultant to OCSD Accounts Payable at APStaff(aOCSD.com and "INVOICE" with the Purchase Order Number and Specification No. CS-2018-1003BD shall be referenced in the subject line. Orange County Sanitation District 7 of 20 Specification No. CS-2018-1003BD Version 032018 9. Audit Rights: Consultant agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Consultant relating to the invoices submitted by Consultant pursuant to this Agreement. 10. Term: The Services to be provided by Consultant under this Agreement shall commence on the effective date of the Notice to Proceed. 11. Extensions: The term of this Agreement may be extended only by written instrument signed by both Parties. 12. Performance: Time is of the essence in the performance of the provisions hereof. 13. Termination 13.1. 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, Consultant shall immediately discontinue all work under this Agreement (unless the notice directs otherwise). OCSD shall thereafter, within thirty(30) days, pay Consultant for work performed (cost and fee)to the date of termination. Consultant expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. Such notice of termination shall terminate this Agreement and release OCSD from any further fee, cost or claim hereunder by Consultant other than for work performed to the date of termination. 13.2. OCSD reserves the right to terminate this Agreement immediately upon OCSD's determination that Consultant is not complying with the Scope of Work requirements, if the level of service is inadequate, or any other default of this Agreement. 13.3. OCSD may also immediately terminate for default of this Agreement in whole or in part by written notice to Consultant: • if Consultant becomes insolvent or files a petition under the Bankruptcy Act; or • if Consultant sells its business; or • if Consultant breaches any of the terms of this Agreement; or • if total amount of compensation exceeds the amount authorized under this Agreement. 13.4. All OCSD property in the possession or control of Consultant shall be returned by Consultant to OCSD on demand, or at the termination of this Agreement,whichever occurs first. In addition, Consultant will deliver to OCSD all Work Product currently in existence and for which payment has been made. 13.5. Upon termination or expiration of this Agreement, Consultant will cooperate with OCSD to assist with the orderly transfer of services, functions, and operations provided by Consultant under this Agreement to another provider or to OCSD as determined by OCSD in its sole discretion. Prior to the termination or expiration of this Agreement, OCSD may require Consultant to perform those transition services described below that OCSD deems necessary to migrate Consultant's work to another provider or to OCSD. Transition services may include, but are not limited to the following: Orange County Sanitation District 8 of 20 Specification No. CS-2018-1003BD Version 032018 13.5.1 Pre-Migration Services. 13.5.1.1 Working with OCSD to jointly develop a mutually agreed upon Transition Services Plan to facilitate the termination of the services; 13.5.1.2 Notifying all affected vendors and subcontractors of Consultant; and 13.5.1.3 Freezing all non-critical changes to the System. 13.5.2 Migration and Post-Migration. 13.5.2.1 Performing the Transition Services Plan activities. 13.5.2.2 Answering questions regarding the services performed by Consultant or the System on an as-needed basis; 13.5.2.3 Providing such other reasonable services needed to effectuate an orderly transition to a new System. 14. Indemnification and Hold Harmless Provision: Consultant 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 Consultant's services under this Agreement, or by its subconsultant(s) or by anyone directly or indirectly employed by Consultant, 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, Consultant 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 Consultant's performance under the Agreement, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, or any patented or unpatented invention, article or appliance, furnished or used under the Agreement, and/or (c) 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 Consultant or anyone employed by or working under Consultant. To the maximum extent permitted by law, Consultant'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. Consultant 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. 15. Insurance: Consultant and all subconsultants 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". Consultant shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Consultant allow any subconsultant to commence service pursuant to a subcontract until all insurance required of the subconsultant has been obtained. Failure to maintain required insurance coverage shall result in termination of this Agreement. Orange County Sanitation District 9 of 20 Specification No. CS-2018-1003BD Version 032018 16. Warranty 16.1. System Warranty. Consultant warrants that the System will meet the Functional, Performance and Reliability Specifications and Requirements as defined in this Agreement. The System and/or each of its subsystems, components and Interfaces will be capable of operating fully and correctly in conjunction with the System Hardware. Consultant warrants that for the term of this Agreement, the System will perform as described in Exhibit "A" Scope of Work, Exhibit "B" Consultant's BAFO Proposal and Exhibit"13-1"Consultant's BAFO Cost Proposal Form,respectively and in material and workmanship and will remain in good working order. In the event the System does not meet these warranties, Consultant shall provide, at no charge, the necessary software, hardware, and/or services required to attain the levels or standards contained in these warranties. 16.2. Application Software 16.2.1 All Consultant Application Software licensed under this Agreement is free of known Defects, viruses, worms and Trojan horses, or otherwise (except for documented security measures such as password expiration functions); 16.2.2 During the term of the Agreement; the Consultant Application Software will meet or exceed the Functional, Performance and Reliability Specifications and Requirements herein; 16.2.3 Not Used. 16.2.4 Consultant Application Software is and will be general release versions that have been fully tested at Consultant's site in accordance with best industry practices, and are not beta or pre-release versions (unless agreed to in writing by OCSD); and, 16.2.5 Custom Modifications and Interfaces have been fully tested in accordance with best industry practices and are free of known Defects. Consultant further agrees that during the term of this Agreement,Consultant will provide OCSD, if OCSD so desires,with any Updates at no additional cost(including any and all costs associated with the installation of those Updates) immediately upon their commercial availability to any other entity. 16.3. Work Quality Warranty. Consultant warrants that all work performed by Consultant and/or its subcontractors under this Agreement will conform to best industry practices and will be performed in a professional and workmanlike manner by staff with the necessary skills, experience and knowledge to do so. 16.4. Regulatory Warranty. Consultant warrants that, for the Term of this Agreement, the System will comply with all processing and reporting requirements for State and Federal laws, and regulations. If the Software requires updating due to a change in a State or Federal law, or regulation, affecting OCSD, Consultant will provide these changes per a mutually agreed to schedule at no additional charge to OCSD. Notwithstanding this provision, in no event shall Consultant provide said update later than the date required by the State or Federal law or regulation affecting OCSD. In the event OCSD is notified of a change in State or Federal law or regulations that requires updating the Software, OCSD will notify Consultant of that change as soon as reasonably possible. Orange County Sanitation District 10 of 20 Specification No. CS-2018-1003BD Version 032018 16.5. Documentation Warranty. Consultant warrants that,for the Term of this Agreement, the Documentation for all licensed Consultant Application Software will be complete and accurate in all material respects. The Documentation will be revised to reflect all Updates and Interfaces provided by Consultant under this Agreement. This includes Documentation on any Custom Modification or Configuration Changes made to the System by Consultant during the installation process. 16.6. Service Warranty. During the term of this Agreement, Consultant warrants that it will remedy any failure, malfunction, Defect or nonconformity in the System, as follows: 16.6.1. Priority One (Pl) Defects. For purposes of this Warranty, a P1 Defect includes, but is not limited to, loss of data, data corruption, a System or subsystem abort, any condition where productive use of the System or any component thereof is prohibited and no acceptable workaround is available. Examples of P1 Defects include, but are not limited to: 16.6.1.1. System is down 16.6.1.2. Application, module or Interface is down or non-operational 16.6.1.3. An Interface or application critical to System operation is substantially impaired or problematic 16.6.1.4. Loss of data or data corruption after data has been entered 16.6.1.5. A subsystem or component thereof is non-functional 16.6.1.6. Productive use is prohibited 16.6.1.7. a Server goes down 16.6.1.8. two or more workstations or mobile devices lock up or malfunction intermittently 16.6.1.9. a user cannot log on to the System 16.6.2. Priority Two (P2) Defects. For purposes of this Warranty a P2 Defect includes, but is not limited to, compromise of the primary purpose of the System, subsystem or Interface to an external system. Productive use by the end user is substantially impacted and an acceptable workaround is not available. Examples of P2 Defects include, but are not limited to: 16.6.2.1. a Software function does not work correctly(enter an example, if possible) 16.6.2.2. The user cannot produce a report with correct calculations 16.6.2.3. System, subsystem or an Interface performance is deemed unacceptable per the Functional, Performance, and Reliability Specifications and Requirements. 16.6.2.4. Incorrect cross streets are displayed on a verified address or location 16.6.2.5. Cannot create a scheduled event 16.6.2.6. A single workstation or mobile device locks up or malfunctions intermittently 16.6.3. Priority Three (P3) Defects. For purposes of this Warranty, a P3 Defect includes, but is not limited to, incomplete operation of a System component which impacts productivity of staff but an acceptable workaround is generally available. Examples of P3 Defects include but are not limited to: Orange County Sanitation District 11 of 20 Specification No. CS-2018-1003BD Version 032018 16.6.3.1. Single workstation or mobile device locks up intermittently but infrequently 16.6.3.2. Minor deficiencies occur intermittently in any component of the System 16.6.3.3. A mapping function doesn't work but the failure does not interfere with the user's ability to perform required tasks 16.6.3.4. A report does not function or report provides incorrect results 16.6.3.5. An incorrect message is presented in a dialog box 16.6.4. Priority Four (P4) Defects. For purposes of this Warranty, a P4 Defect consists of those problems deemed by OCSD to be mainly cosmetic. Examples of P4 Defects include, but are not limited to: 16.6.4.1. A misspelled word in the header of a report or in a help file 16.6.4.2. A minor error in output that does not interfere with the correct outputting of statistics from the system 16.6.4.3. Minor printing errors in a report that does not impede OCSD's ability to utilize the report for the required purpose. 16.6.4.4. Minor variances in text where the help file does not match the Documentation 16.6.4.5. Minor variances in text where the Documentation doesn't match the functionality but the System works properly 16.6.4.6. A print button doesn't work but the user can still print without opening or closing multiple windows or loosing data or rebooting the System. 16.6.5. Multiple Failures. Any situation involving multiple, contemporaneous failures, regardless of their individual priorities,will be regarded as a Priority One Defect if, in OCSD's determination, the situation results in OCSD having essentially no productive use of the System or a major subsystem. 16.6.6. Permanent Cure. If OCSD accepts a workaround or other temporary cure as the remedy for any reported Defect, Consultant shall provide and install at no cost to OCSD a permanent correction or cure and installation support within ten (10) days after the permanent cure becomes available. 16.6.7. Third-party Warranty Coverage. Third-party products are provided with a pass-thru-warranty from the original manufacturer. 17. Key Personnel: Personnel, as provided in Exhibit "B", are considered "key" to the work under this Agreement and will be available for the term of the Agreement. No person designated as key under this Agreement shall be removed or replaced without prior written consent of OCSD. If OCSD asks Consultant to remove a person designated as key under this Agreement, Consultant agrees to do so immediately regardless of the reason, or the lack of reason, for OCSD's request. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. 18. Confidentiality and Mon-Disclosure 18.1. Consultant acknowledges that in performing the Services hereunder, OCSD may have to disclose to Consultant orally and in writing certain confidential information that OCSD considers proprietary and has developed at great expense and effort. Orange County Sanitation District 12 of 20 Specification No. CS-2018-1003BD Version 032018 18.2. Consultant agrees to maintain in confidence and not disclose to any person,firm, or corporation, without OCSD's prior written consent, any trade secret or confidential information, knowledge or data relating to the products, process, or operation of OCSD. 18.3. Consultant further agrees to maintain in confidence and not to disclose to any person,firm, or corporation any data, information,technology, or material developed or obtained by Consultant during the term of this Agreement. 18.4. Consultant agrees as follows: • To use the confidential information only for the purposes described herein; to not reproduce the confidential information; to hold in confidence and protect the confidential information from dissemination to and use by anyone not a party to this Agreement; and to not use the confidential information to benefit itself or others. • To restrict access to the confidential information to its Consultant or personnel of Consultant who (1) have a need to have such access and (2) have been advised of and have agreed in writing to treat such information in accordance with the terms of this Agreement. • To return all confidential information in Consultant's possession upon termination of this Agreement or upon OCSD's request, whichever occurs first. • To hold in confidence information and materials, if any, developed pursuant to the Services hereunder. 18.5. The provisions of this section shall survive termination or expiration of this Agreement and shall continue for so long as the material remains confidential. 19. Ownership of Documents: All drawings, specifications, reports, records, documents, memoranda, correspondence, computations, and other materials prepared by Consultant, its employees, subconsultants, and agents in the performance of this Agreement shall be the property of OCSD and shall be promptly delivered to OCSD upon request of OCSD's Project Manager or designee, or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by OCSD of its full rights of ownership of the documents and materials hereunder. Any use of such completed documents for other projects and/or use of incomplete documents without specific written authorization by the Consultant will be at OCSD's sole risk and without liability to Consultant. Consultant shall ensure that all its subconsultants shall provide for assignment to OCSD of any documents or materials prepared by them. 20. Ownership of Intellectual Property 20.1. Consultant agrees that all designs, plans, reports, specifications, drawings, schematics, prototypes, models, inventions, and all other information and items made during the course of this Agreement and arising from the Services (hereinafter referred to as "New Developments") shall be and are assigned to OCSD as its sole and exclusive property. 20.2. Consultant agrees to promptly disclose to OCSD all such New Developments. Upon OCSD's request, Consultant agrees to assist OCSD, at OCSD's expense, to obtain Orange County Sanitation District 13 of 20 Specification No. CS-2018-1003BD Version 032018 patents or copyrights for such New Developments, including the disclosure of all pertinent information and data with respect thereto, the execution of all applications, specifications, assignments, and all other instruments and papers which OCSD shall deem necessary to apply for and to assign or convey to OCSD, its successors and assigns, the sole and exclusive right, title and interest in such New Developments. Consultant agrees to obtain or has obtained written assurances from its employees and contract personnel of their agreement to the terms hereof with regard to New Developments and confidential information. 20.3. Consultant warrants that Consultant has good title to any New Developments, and the right to assign New Developments to OCSD free of any proprietary rights of any other party or any other encumbrance whatever. 20.4. The originals of all computations, drawings, designs, graphics, studies, reports, manuals, photographs, videotapes, data, computer files, and other documents prepared or caused to be prepared by Consultant or its subconsultants in connection with these Services shall be delivered to and shall become the exclusive property of OCSD. OCSD may utilize these documents for OCSD applications on other projects or extensions of this project, at its own risk. 21. Infringement Claims: If an infringement claim occurs, Consultant has thirty(30)days after the receipt of OCSD's written notice of the claim or the date on which Consultant first becomes aware of the claim, whichever is sooner, to either: (a) procure for OCSD the right to continue using the affected Product, Service, subsystem, component or Interface and deliver or provide the Product, Service, subsystem, component, or Interface to OCSD; or (b) repair or replace the infringing Product, Service, subsystem, component, or Interface so that it becomes non-infringing, provided the performance of the System or any subsystems, components, or Interfaces is not adversely affected by the replacement or modification. In the event Consultant is unable to comply with either subsection (a) or (b) of this paragraph within thirty (30) days, OCSD may terminate this Agreement without any further obligation to Consultant. In the event of termination, in addition to any other legal remedies available to OCSD, Consultant will refund OCSD within ten(10)days of OCSD's notice of termination, the license fees OCSD paid to Consultant for the Product, Service, subsystem, component or Interface. If the inability to comply with either subsection (a) or (b) of this paragraph causes the System to fail to meet the Functional, Performance and Reliability Specifications and Requirements or to otherwise become ineffective, Consultant will refund OCSD all fees paid to Consultant under this Agreement. 22. No Solicitation of Employees 22.1. Consultant agrees that it shall not, during the term of this Agreement and for a period of one(1)year immediately following termination of this Agreement, or any extension hereof, call on, solicit, or take away any of the employees whom Consultant became aware of as a result of Consultant's Services to OCSD. 22.2. Consultant acknowledges that OCSD's employees are critical to its business and OCSD expends significant resources to hire, employ, and train employees. Should Consultant employ or otherwise engage OCSD's employees during the term of this Agreement and for a period of one (1)year following termination of this Agreement, Consultant will pay OCSD fifty percent (50%) of the former employee's most recent annual salary earned at OCSD to accurately reflect the reasonable value of OCSD's time and costs. This payment is in addition to any other rights and remedies OCSD may have at law. Orange County Sanitation District 14 of 20 Specification No. CS-2018-1003BD Version 032018 23. Independent Contractor Capacity 23.1. The relationship of Consultant to OCSD is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 23.2. Consultant shall act independently and not as an officer or employee of OCSD. OCSD assumes no liability for Consultant's action and performance, nor assumes responsibility for taxes, funds, payments or other commitments, implied or expressed, by or for Consultant. 23.3. Consultant shall not be considered an agent of OCSD for any purpose whatsoever, nor shall Consultant have the right to, and shall not, commit OCSD to any agreement, contract or undertaking. Consultant shall not use OCSD's name in its promotional material or for any advertising or publicity purposes without expressed written consent. 23.4. Consultant shall not be entitled to any benefits accorded to those individuals listed on OCSD's payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, holiday or sick pay. Consultant shall be responsible for providing, at Consultant's expense, disability, worker's compensation or other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 23.5. Consultant shall be obligated to pay any and all applicable Federal, State and local payroll and other taxes incurred as a result of fees hereunder. Consultant hereby indemnifies OCSD for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OCSD arising out of Consultant's breach of this provision. 23.6. Consultant shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OCSD's payroll as regular employees. Consultant shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OCSD misclassified Consultant for tax purposes. 24. Licenses, Permits: Consultant represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement will be paid by Consultant. 25. Consultant's Representations: In the performance of duties under this Agreement, Consultant shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence for their trade/profession. Consultant agrees to comply with all applicable Federal, State and local laws and regulations. 26. Famfliarity with Work., By executing this Agreement, Consultant 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 Consultant 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 Consultant's risk, until written instructions are received from OCSD. Orange County Sanitation District 15 of 20 Specification No. CS-2018-1003BD Version 032018 27. Right to Review Services. Facilities, and Records 27.1. OCSD reserves the right to review any portion of the Services performed by Consultant under this Agreement, and Consultant agrees to cooperate to the fullest extent possible. 27.2. Consultant shall furnish to OCSD such reports, statistical data, and other information pertaining to Consultant's Services as shall be reasonably required by OCSD to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bonds and other obligations. 27.3. The right of OCSD to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Consultant shall not relieve Consultant of any obligation set forth herein. 28. Force Maieure: Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Agreement. 29. Severability: If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 30. 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. Any breach by Consultant to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 31. Survival: All provisions of this Agreement that by their nature would reasonably be expected to continue after the termination of this Agreement will survive the termination of this Agreement, including, without limitation, the following Sections and Paragraphs: • Payment • License • Audit • Independent Contractor • Warranties • Indemnification • Obligations Upon Expiration or Termination • Transition of Services • Confidentiality and Nondisclosure • Forum for Enforcement Orange County Sanitation District 16 of 20 Specification No. CS-2018-1003BD Version 032018 32. Remedies: In addition to other remedies available in law or equity, H the Consultant fails to make delivery of the goods or Services or repudiates its obligations under this Agreement, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may(1)terminate the Agreement; (2)recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute goods or Services for those due from Consultant. In the event OCSD elects to "cover" as described in (3), OCSD shall be entitled to recover from Consultant as damages the difference between the cost of the substitute goods or Services and the Agreement price, together with any incidental or consequential damages. 33. Governina Law: This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof. 34. Applicable Laws and Reaulations: Consultant shall comply with all applicable federal, state, and local laws, rules, and regulations. Consultant also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Consultant's noncompliance therewith.Any permission required by law to be included herein shall be deemed included as a part of this Agreement whether or not specifically referenced. 35. Attornev's Fees: If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 36. Dispute Resolution 36.1. In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of 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. 36.2. In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et 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 17 of 20 Specification No. CS-2018-1003BD Version 032018 37. Damage to OCSD's Property., Any OCSD property damaged by Consultant will be subject to repair or replacement by Consultant at no cost to OCSD. 38. OCSD Safety Standards: OCSD requires Consultant and its subconsultants 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 Consultant is required to follow the most stringent regulatory requirement at no additional cost to OCSD. Consultant and all of its employees and subconsultants, shall adhere to all applicable OCSD Safety Standards attached hereto in Exhibit"D" and the Human Resources Policies (Exhibit"F"). 39. Freicht(F.O.B. Destination): Consultant assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Agreement. 40. Assicnments, Consultant shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 41. Chances In Control of Consultant 41.1. In the event of a change in Control of Consultant, OCSD shall have the option of terminating this Agreement by written notice to Consultant. Consultant shall notify OCSD within ten (10) days of the occurrence of a change in Control. As used in this Section, "Control" is defined as the possession, direct or indirect, of either: 41.1.1. the ownership or ability to direct the voting of fifty-one percent (51%) or more of the equity interests, value, or voting power in Consultant; or 41.1.2. the power to direct or cause the direction of the management and policies of Consultant, whether through ownership of voting securities, by contract, or otherwise. 42. Conflict of Interest and Reportinc 42.1. Consultant shall at all times avoid conflicts of interest or appearance of conflicts of interest in performance of this Agreement. 42.2. Consultant affirms that to the best of its knowledge there exists no actual or potential conflict between Consultant's families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OCSD any question regarding possible conflict of interest which may arise as a result of such change. 43. Third Party Richts: Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Consultant. 44. Non-Liability of OCSD Officers and Employees: No officer or employee of OCSD shall be personally liable to Consultant, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement. Orange County Sanitation District 18 of 20 Specification No. CS-2018-1003BD Version 032018 45. AuthoritV 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. 46. Read and Understood: By signing this Agreement, Consultant represents that it has read and understood the terms and conditions of the Agreement. 47. 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. 48. Notices: All notices under this Agreement must be in writing. Written notice shall be delivered by personal service or 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. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Jackie Lagade Principal Buyer Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Consultant: Garner Bennet CEO/President Total Resource Management, Inc. 510 King Street, Suite 200 Alexandria, VA 22314 Each party shall provide the other party written notice of any change in address as soon as practicable. Orange County Sanitation District 19 of 20 Specification No. CS-2018-1003BD Version 032018 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 Board Chairman Dated: By: Kelly A. Lore Clerk of the Board Dated: By: Lorenzo Tyner Assistant General Manager TOTAL RESOURCE MANAGEMENT, INC. Dated: By: Print Name and Title of Officer Orange County Sanitation District 20 of 20 Specification No. CS-2018-1003BD Version 032018 ADMINISTRATION COMMITTEE Meeting Date TOBE.Or Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number 7 14 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan C. Wiborg, Director of Environmental Services SUBJECT: INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT— BIOSOLIDS MANAGEMENT GENERAL MANAGER'S RECOMMENDATION A. Approve Agreement number 4600002709-HD with the Inland Empire Regional Composting Authority (IERCA) for the Orange County Sanitation District (Sanitation District) to pay IERCA to receive and compost up to approximately 50 wet tons per day of the Sanitation District's biosolids at a base fee (tipping fee) of $56 per wet ton, plus an administrative fee of$2 per wet ton, and an annual base fee increase of $1 per fiscal year, with a term of the Agreement of five (5) years and, upon mutual written agreement, an option to extend on a year-to-year basis with up to two (2) annual extensions in a total annual amount not to exceed $820,000 per year; and B. Approve a 10% contingency of$400,000 in the event the Sanitation District needs to send additional loads to this compost option. BACKGROUND The Sanitation District continues to actively pursue biosolids management options to maintain a long-term, sustainable program that promotes beneficial use of biosolids. In accordance with the principles of its biosolids management policy (Resolution No. OCSD 13-03), the Sanitation District maintains a diverse portfolio of biosolids management options that utilize multiple contractors, markets, and facilities including the use of local/regional facilities and markets while maintaining fail-safe, back-up options. In 2015, the Los Angeles County Sanitation District and Inland Empire Utilities Agency - collectively known as the joint power authority, Inland Empire Regional Composting Authority (IERCA), offered the option to compost the Sanitation District's biosolids at their Inland Empire Regional Composting Facility (IERCF) located in the City of Rancho Cucamonga. The Sanitation District saw the benefits of this regional composting option located within our local [air] basin and executed an agreement with IERCA. This agreement expires on June 30, 2019. To continue service, IERCA offers a new agreement to receive and compost up to 50 wet tons of the Sanitation District's biosolids per day (five days a week) at their composting facility, at a tipping fee of$56 per ton of biosolids and an administrative fee of$2 per wet ton. The tipping fee may be subject to an annual increase of $1 per fiscal year, which Page 1 d 3 would be implemented only in the event IERCA increases the Standard Biosolids Recycling Rate in that same fiscal year. The term of the Agreement is for five (5) years and, upon mutual written agreement, extends the duration of the Agreement on a year-to-year basis with up to two (2) annual extensions. The total annual amount will not exceed $820,000 per year (reference attachment). With a hauling fee of approximately $15.50 per ton (services provided by Denali Contract effective 5/12/19), the total cost is about $72.50 per ton during the first year. RELEVANT STANDARDS • Comply with Resolution No. OCSD 13-03, Biosolids Recycling Policy • 2017 Biosolids Master Plan • Safe, beneficial reuse of Biosolids PROBLEM The existing biosolids management contract between IERCA and the Sanitation District expires on June 30, 2019. If the Sanitation District does not execute the contract, the Sanitation District's biosolids management diversity will be lessened. There are no other local government operated facilities within a 50-mile radius. PROPOSED SOLUTION Approve the Agreement to continue biosolids management diversity and sustainability while supporting a local, in-basin management option. TIMING CONCERNS The existing biosolids management contract between IERCA and the Sanitation District expires on June 30, 2019. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not be able to utilize this local biosolids management option that is within the basin. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A Page 2 of 3 CEQA CEQA Analysis Reference: November 28, 2012 Agenda Report - Waste Disposal Agreement with Orange County Waste and Recycling and May 27, 2015 Agenda Report- Composting Agreement with Inland Empire Regional Composting Authority. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (FY 18/19 Budget Line Item: Section 5, Page 6). Project contingency funds will not be used for this contract. 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: • Inland Empire Regional Composting Authority Agreement Number 4600002709 for the Reuse of Biosolids • Cost Breakdown Page 3 of 3 INLANE) EMPIRE REGIONAL COMPOSTING A U T H CD R I T Y AGREEMENT NUMBER 4600002709 FOR THE REUSE OF BIOSOLIDS This Agreement, for the Reuse of Biosolids ("Agreement"), dated July 1, 2019 ("Effective Date"), is between the Inland Empire Regional Composting Authority (IERCA, or"the Authority") and the Orange County Sanitation District("the District"). The Authority and the District are referred to, in this Agreement, collectively, as "the Parties." The Authority is a Joint Powers Authority formed by and between the Inland Empire Utilities Agency (IEUA), a Municipal Water District organized and operating pursuant to the California Water Code Sections 71000, et seq., and County Sanitation District No. 2 of Los Angeles County (LACSD), a special district organized and operating pursuant to the California Health and Safety Code Sections 4700, et seq. The Authority operates the Inland Empire Regional Composting Facility(IERCF) located at 12645 Sixth Street, Rancho Cucamonga, CA 91739 ("the Site"). The Authority has all permits and approvals necessary for operation of the Site and desires to reuse Biosolids produced at the District's facilities. 1. DEFINITIONS 1.1 Biosolids means municipal sewage sludge resulting from the treatment of wastewater at the District's facilities that is digested and meets Class B and Table 3 quality standards for land application under Part 503 of Title 40 of the Code of Federal Regulations, "Standards for the Use and Disposal of Sewage Sludge" ("Part 503 Rule"), and dewatered to an annual average of approximately 15%total solids or greater. 1.2 State Certified Weigh Station means any truck weigh station permitted by the State of California to certify weights for commerce. 1.3 Weighmaster's Certificates means certificates obtained in accordance with weighing procedures prescribed in Chapter 7(commencing with Section 12700)of Division 5 of the California Business and Professions Code administered by the Division of Measurement Standards of the California Department of Food and Agriculture. 4600002709 HD Page 1 of 8 06/26/2019 2. BIOSOLIDS TRANSPORTATION AND REUSE 2.1 The District shall transport up to approximately 250 wet tons per week,or 50 wet tons per day of Biosolids from its facilities to the Site for composting, Monday through Friday. This quantity may be adjusted by agreement of the Parties. 2.2 Site delivery hours are from 6:30AM to 2:30PM, Monday through Friday. Hours may change at the sole discretion of the Authority. 2.3 hi event the District wishes to deliver to the Site sewage sludge that does not meet the Part 503 Rule Class B Biosolids Pathogen Reduction Requirements specific to mean cell residence time and temperature for anaerobic digestion,the District shall notify the Authority within reasonable time and request approval to deliver for compost such material in accordance with applicable legal requirements as detailed in Section 3 of this Agreement.The Authority reserves the right not to accept and process such sewage sludge material at the Site. 2.4 The District shall use farm bed trailers to transport Biosolids to the Site. Trailers delivering Biosolids to the Site must meet the following clearance specifications to off-load material into the biosolids hoppers: 2.4.1 All live bottom belt type trailers require a minimum clear distance of 15"between the ground surface and any trailer structure beyond or past the rear tires. This requirement does not apply to any flexible structure like a mud flap. Flexible structures may be removed or re-positioned to allow adequate clearance. 2.5 The Authority shall compost all Biosolids in accordance with applicable legal requirements as detailed in Section 3 of this Agreement.The Authority may not use any other method of reuse for the Biosolids without the prior written agreement of the District. 2.6 The Authority shall determine and record the total tonnage delivered to the Site.The truck weigh station at the Site is certified by the State and will be used to issue a Weighmaster's Certificate for each load measured. The Authority shall use the Site's measured tonnage for its billing to the District. Weighmaster's Certificates submitted by the Authority will show the certified gross weight of each load in each billing and the certified tare weight of each vehicle. 3. PERMITS AND REGULATORY COMPLIANCE 3.1 The Authority shall obtain and maintain in effect all necessary licenses,Permits,and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The Authority and all processes utilized at the Site shall comply with all applicable local, state, and federal laws, rules, regulations, and pronouncements, including but not limited to the following: 4600002709 HD Page 2 of 8 06/26/2019 3.1.1 The Authority shall perform all activities and operations in accordance with the requirements,as applicable,of the Santa Ana Regional Water Quality Control Board,California State Water Resources Control Board, including the General Order (General Waste Discharge Requirements for the Discharge of Biosolids to Land for Use in Agricultural, Silvicultural, Horticultural,and Land Reclamation Activities),Parts 257 and 503 of Title 40 of the Code of Federal Regulations (Criteria for Classification of Solid Waste Disposal Facilities and Practices and Standards for the Use and Disposal of Sewage Sludge, respectively), South Coast Air Quality Management District Rule 1133.2. 3.1.2 The Authority shall also operate in compliance with all current waste discharge requirements contained in the NPDES permits for the District's facility(s) that serves as the source(s) of Biosolids delivered to the Authority. District shall make their NPDES permit available to the Authority upon request. 3.1.3 The Authority acknowledges that Part 503 of Title 40 of the Code of Federal Regulations is a self-implementing rule and that the Authority's activities and operations performed at the Site must comply with all applicable general requirements of the rule,including,but not limited to: pollutant limits, management practices, operational standards, monitoring, recordkeeping, and reporting. The Authority shall provide all information relevant to the activities and operations at the Sites that the District may need or request to complete NPDES or other permit applications or reports. 3.2 The District shall obtain and maintain in effect all necessary licenses, permits, and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The District and Biosolids-generating processes at its facilities shall comply with all applicable local, state, and federal laws, rules, and regulations and orders, including but not limited to Part 503 of Title 40 of the Code of Federal Regulations.The District may transport to the Site only Biosolids that meet the Class B pathogen reduction requirements of 503.32(b), vector attraction reduction requirements of 503.33(b)(1), and metals concentration limits of Table 3 in 503.13(b)(3), unless other arrangement are made per Section 2.3. 4. SITE INSPECTION,MONITORING, RECORDKEEPING,AND REPORTS 4.1 The Authority shall grant the District and it's representatives access to the Site during normal business hours to conduct inspections of the composting activities. The District shall likewise grant the Authority and it's representatives access to its treatment facilities during normal business hours. 4.2 The Authority shall keep complete and correct daily records of all composting activities, including: the date, the origin, and quantity of each load of Biosolids composted; site management practices; and any sampling and laboratory test results regarding the composting program. The Authority shall grant the District timely access to all such records. Likewise, the Authority shall have timely access to the District's Biosolids records and data demonstrating compliance with all federal, state,and local laws,regulations and orders. 4600002709 HD Page 3 of 8 06/26/2019 4.3 The Authority shall submit monthly reports to the District that demonstrate compliance with all required permits and authorizations. The Authority shall submit the reports within 30 days after the close of each reporting period. The reports must include, at a minimum, a description of all activities and operations performed during the reporting period, the items described in Section 4.2, and a certification that all activities and operations were performed in compliance with all applicable regulations. The Authority shall forward to the District, within five days of receipt or transmission, copies of all correspondence with regulatory agencies in regards to the activities or operations performed at the Site. Similarly,the District shall furnish monthly, annual, and other periodic reports to the Authority detailing and certifying compliance with permits and applicable regulations. The District shall provide all information relevant to its operations that the Authority may need or request to complete regulatory reports or permits. 4.4 The Parties agree to notify one another by no later than the next business day of its receipt of any notice,whether formal or informal,of a legal,governmental,judicial,administrative,or similar proceeding,action,or enforcement,pending or threatened,that may affect its ability to lawfully fulfill obligations of this Agreement.The District shall forward to the Authority,within 5 days of receipt or transmission by the District, copies of all correspondence with regulatory agencies in regards to its Biosolids operations. 4.5 The District shall perform all sampling for any monitoring and laboratory analyses of Biosolids required by any federal,state, or local laws,regulations or orders prior to transporting such Biosolids to the Authority. The Authority shall perform all other monitoring and laboratory analyses required by any federal, state, or local laws, regulations, or orders including, but not limited to, any monitoring or laboratory analysis of Biosolids after receipt by the Authority. 5. COMPOSITION OF BIOSOLIDS The District warrants that all Biosolids released to the Authority will be non-hazardous under Title 22, Division 4.5, Chapter 11, Article 3 of the California Code of Regulations. Neither the District nor the Authority shall add any material to the Biosolids that is classified as hazardous, or which creates by-products or residues classified as hazardous, under federal or state laws, regulations, or orders. 6. INCLEMENT WEATHER 6.1 The Parties shall each provide any facilities necessary to ensure their ability to remove, transport,and compost Biosolids during typical inclement weather. 6.2 The Parties acknowledge that severe weather conditions may reduce or suspend the Parties' abilities to deliver and/or compost Biosolids. If either Party reasonably determines that a reduction or suspension is necessary,the Party shall provide the other Party,to the extent reasonably possible: 1) a 24-hour notice of reduction or cessation of operations; and 2) an estimate of when the operations will resume. See also Section 11, Force Majeure. 4600002709 HD Page 4 of 8 06/26/2019 7. FEE FOR BIOSOLIDS REUSE 7.1 The District shall pay, to the Authority, for Biosolids received and processed a base fee of$56.00 per wet ton(beginning July 1, 2019),plus an administrative fee of$2.00 per wet ton. The Authority may increase the base fee by (up to) $1.00 per fiscal year, of the Contract term; such fee increases taking effect on July V of each fiscal year. The annual base fee increase shall be implemented only in the event that the Authority increases the Standard Biosolids Recycling Rate in that same fiscal year, and shall be no greater than the increase in the Standard Biosolids Recycling Rate. The administrative fee shall remain at$2.00 per wet ton for the duration of this contract,unless revised by a mutually agreed-upon Contract Amendment. The District shall pay all hauling and transportation-related costs. 7.2 The Authority shall submit invoices to the District on a monthly basis and the District shall make payment to the Authority within thirty(30)days of receipt. 7.3 If the term of this Agreement extends beyond the initial five-year term provided for in Section 12 below,either the District or the Authority may request an additional adjustment in the fee. 8. OWNERSHIP OF BIOSOLIDS 8.1 The District shall retain ownership of all Biosolids during transport, up to and including off-loading of the Biosolids from the District's trucks. The District shall at all times manage, direct, oversee, and/or conduct operations during transport, and is responsible for leakage prevention and spill mitigation, and compliance with all applicable environmental regulations. 8.2 The Authority shall become the owner of all Biosolids delivered to the Site after off- loading and acceptance of the Biosolids from the District's trucks. The Authority shall compost all Biosolids in accordance with this Agreement. The Authority may not use or dispose of the Biosolids in any other manner without written consent from the District. The Authority shall comply with all applicable laws and regulations in connection with the marketing, use, and sale of the composted Biosolids. 9. INSURANCE 9.1 The District shall require its contractors transporting Biosolids to the Site to obtain and keep in force during the term of this Agreement, at their sole expense, comprehensive general liability insurance with endorsements naming the Authority as an additional insured, covering the transportation of Biosolids in any vehicle whether owned or leased,whether liability is attributable to the District or the Authority. The policy or policies must insure the Authority, its directors, officers, employees, and agents against all claims arising out of or in connection with the activities and operations relating to the transportation and delivery of Biosolids to the Facility. The coverage must provide the following minimum limits, which may be increased during the tern of this Agreement as requested by the Authority in writing and agreed to in writing by the District: 4600002709 HD Page 5 of 8 06/26/2019 Automobile Liability: Bodily Injury $5,000,000 each person $5,000,000 each occurrence Property Damage $5,000,000 each occurrence $5,000,000 aggregate General Liability: Bodily Injury $5,000,000 each occurrence $5,000,000 aggregate products and completed operations Property Damage $5,000,000 each occurrence $5,000,000 aggregate Coverage must be provided by an insurer that has at least an "A" Policy Holder's Rating and "X" Financial Rating in accordance with the current Best's Key Rating Guide. 9.2 The Contractor shall provide the Authority with evidence of coverage by providing certificates of insurance and endorsements and, at the Authority's request, copies of all required policies plus all attached endorsements for the Authority's review. 9.3 The Contractor shall demonstrate to the Authority that it carries Workers Compensation Insurance in accordance with legal requirements and Waiver of Subrogation. 10. INDEMNITY In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Government Code, each Party,pursuant to the authorization contained in Sections 895.4 and 895.6 of the Government Code, hereby agrees to and shall indemnify and hold harmless the other Party, and its elected officials, officers, agents, and employees from and against any and all losses, liability, damages, claims, suits, actions, and administrative proceedings or demands (including reasonable attorneys fees) relating to acts or omissions of the indemnitor, its officers, agents, or employees arising out of or incidental to the performance of any of the provisions of this Agreement. Neither Party assumes liability for the acts or omissions of persons other than each Party's respective officers,agents, or employees. In the event judgment is entered against the Parties because of joint or concurrent negligence of the Parties, or their officers,agents,or employees, an apportionment of liability to pay such judgment shall be made by a Court of competent jurisdiction. This section shall survive termination of the Agreement. 11. FORCE MAJEURE Neither the Authority nor the District shall be responsible or liable for failure to meet their respective obligations under this Agreement if such failure is due to causes beyond the Authority's or the District's control. Such causes include, but are not limited to: strikes, fire, flood, civil disorder, acts of God or of a public enemy, acts of the federal government, or any unit of state or local 4600002709 HD Page 6 of 8 06/26/2019 government in either its sovereign or contractual capacity, epidemics, freight embargoes or delays in transportation, and changes in federal, state, or local law that renders the District's Biosolids impermissible for transportation or composting. Each Party shall immediately notify the other Party via email to administrative staff and in writing, in accordance with Section 15, of the occurrence of any condition believed to constitute a force majeure under this section.If a condition of force majeure exists for 30 days or more, either Party may terminate this Agreement by giving notice in writing in accordance with Section 15. The notice will become effective 24 hours after receipt. 12. DURATION OF AGREEMENT This Agreement will be effective on the Effective Date and will continue in effect for a period of five years. The Parties may, upon mutual written agreement, extend the duration of the Agreement on a year to year basis with up to two annual extensions. 13. SUSPENSION, TERMINATION,AND EARLY TERMINATION 13.1 Suspension. The Authority may suspend its receipt of Biosolids if it determines that the District can no longer timely and legally perform the required obligations of this Agreement. Likewise, the District may suspend shipments of Biosolids if it determines that the Authority can no longer timely or legally perform the required services,or if unacceptable conditions exist at the Site. The suspending Party may lift the suspension and allow operations to resume if it determines that any unacceptable conditions have been corrected. 13.2 Termination. Either Party may terminate this Agreement by providing the other Party with a 90-day notice in writing in accordance with Section 15. 13.3 Early Termination. The Authority and the District, by written agreement, may terminate this Agreement at any time. 14. ADDITIONAL PROVISIONS 14.1 Entire Agreement. This Agreement represents the entire agreement and understanding between the Authority and the District as to those matters stated in this Agreement. No prior oral or written understanding is of any force or effect in regard to any matter covered by this Agreement. 14.2 Assignment. Neither the Authority nor the District may sell, assign, or subcontract its interest and/or obligations in this Agreement without the prior written and mutual agreement of the Parties. 14.3 Governing Law. The provisions of this Agreement will be interpreted and enforced in accordance with the laws of the State of California. 14.4 Counterparts. This Agreement may be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 4600002709 HD Page 7 of 8 06/26/2019 15. NOTICE Except as otherwise required, any notice, payment, or instrument required or permitted to be given under this Agreement will be deemed received upon a signed receipt of personal delivery or 72 hours after deposit in any United States Post Office, registered or certified, postage prepaid and addressed to the Party for whom intended, as follows: TO THE AUTHORITY: Inland Empire Regional Composting Authority Attn: Jeff Ziegenbein 12645 Sixth Street Rancho Cucamonga, CA 91739 TO THE DISTRICT: Orange County Sanitation District Attn: General Manager Post Office Box 8127 Fountain Valley, CA 92728-8127 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 Board Chairman ATTEST: By: Kelly Lore Clerk of the Board APPROVE AS TO FORM: By: Bradley R.Hogin General Counsel INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY Jeff Ziegenbein Project Manager 4600002709 HD Page 8 of 8 06/26/2019 Current and Proposed IERCF Contract Costs - June 2015 to June 2024 Cost Breakdown HISTORIC, CURRENT&MOST IERCF Contract LIKELY SCENARIO Proposal Annual Cost- Annual Cost- Annual Cost- Annual Cost- (Tip fee+ 25 tpd 50 tpd 75 tpd 100 tpd Fiscal Vear Admin fee$2) with Hauling (tip only) (tip only) (tip only) (tip only) 15-16 $ 56.00 $ 62.05 $ 364,000 $ 728,000 $ 1,092,000 $ 1,456,000 16-17 $ 57.00 $ 69.57 $ 370,500 $ 741,000 $ 1,111,500 $ 1,482,000 17-19 $ 58.00 $ 72.62 $ 377,000 $ 754,000 $ 1,131,000 $ 1,508,000 18-19 $ 58.00 $ 74.02 $ 377,000 $ 754,000 $ 1,131,000 $ 1,508,000 19-20 $ 59.00 $ 75.50 $ 383,500 $ 767,000 $ 1,150,500 $ 1,534,000 20-21 $ 60.00 $ 76.83 $ 390,000 $ 780,000 $ 1,170,000 $ 1,560,000 21-22 $ 61.00 $ 77.83 $ 396,500 $ 793,000 $ 1,189,500 $ 1,586,000 22-23 $ 62.00 $ 78.83 $ 403,000 $ 806,000 $ 1,209,000 $ 1,612,000 23-24 $ 63.00 $ 79.83 $ 409,500 $ 819,000 $ 1,228,500 $ 1,638,000 Average annual cost of new contract $ 77.76 NTE $ 4,361,500 $ 396,500.00 (30%CONTIN.) \\sbare0l\ocsd\dept\es\630\Compliance\Riosolids\Distribution_Management\fontrails\04_IERCA_IERCF\2019 New_contrad\CPI-2-mseme.xlsx Current and Proposed IERCF Contract Costs - June 2015 to June 2024 HISTORIC, CURRENT&MOST IERCF Contract LIKELY SCENARIO Proposal Annual Cost- Annual Cost- Annual Cost- Annual Cost- (Tip fee+ 25 tpd 50 tpd 75 tpd 100 tpd Fiscal Year Admin fee) with Hauling (tip only) (tip only) (tip only) (tip only) 15-16 $ 56.00 $ 62.05 $ 364,000 $ 728,000 $ 1,092,000 $ 1,456,000 16-17 $ 57.00 $ 69.57 $ 370,500 $ 741,000 $ 1,111,500 $ 1,482,000 17-18 $ 58.00 $ 72.62 $ 377.000 $ 754,000 $ 1,131,000 $ 1,508,000 18-19 $ 58.00 $ 74.02 $ 3 00 $ 754,000 $ 1,131,000 $ 1,508,000 19-20 $ 59.00 $ 75.50 $ 383,500 $ 767,000 $ 1,150,500 $ 1,534,000 Annual Price Riser 20-21 $ 60.00 $ 76.83 $ 390,000 $ 780,000 $ 1,170,000 $ 1,560,000 $1.00 21-22 $ 61.00 $ 77.83 $ 396,500 $ 793,000 $ 1,189,500 $ 1,586,000 22-23 $ 62.00 $ 78.83 $ 403,000 $ 806,000 $ 1,209,000 $ 1,612,000 23-24 $ 63.00 $ 79.83 $ 409,500 $ 819,000 $ 1,228,500 $ 1,638,000 Average annual cost of new contract $ 77.76 NTE $ 4,361,500 $ 396,500.00 (30%CONTIN.) \\sbare0l\ocsd\dept\es\630\Compliance\Biosolids\Distribution_Management\fontrags\04_IERCA_IERCF\2019 New_contrad\CPI-2-mseme.xlsx LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Meet 6/Ing Date TO6/26/19r. AGENDA REPORT Item Item Number 3 IS Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR EFFLUENT REUSE PROJECT UNDER THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION (WIIN) ACT GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 19-05 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District approving and authorizing the grant application for the Title XVI Water Recycling Projects under the Water Infrastructure Improvements for the Nation (WIIN) Act including Orange County Sanitation District's Effluent Reuse Project; and the Execution of Grant Documents with the United States Department of the Interior, Bureau of Reclamation". BACKGROUND Title XVI Water Reclamation and Reuse Projects under WIIN is for sponsors of projects eligible under section 4009(c) of the WIIN Act to request cost-shared funding for the planning, design, and/or construction of those projects. To be eligible, sponsors must have completed a Title XVI Feasibility Study that Reclamation was reviewed and found to meet all the requirements of Reclamation Manual Release WTR 11-01. The recipient must provide at least 75 percent of the total project cost. Approximately four to eight awards are expected to be made, with up to $20 million available. The Orange County Sanitation District (Sanitation District) has been awarded a $1.325 million grant from the first round of funding through the Title XVI WIIN Program. The grant covers expenses incurred from July 2017 through September 30, 2019. The grant will help fund the design of the Plant No. 2 Headworks Segregation Project (P2-122), which would increase the amount of water delivered to the Groundwater Replenishment System (GW RS). Currently, the Sanitation District will be applying for the third round of funding for Project No. 132-122, which would cover construction costs that are incurred through September 30, 2021. RELEVANT STANDARDS • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard • Use all practical and effective means for resource recovery Page 1 of 3 Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM Due to the regulations, as laid out by the Bureau of Reclamation, the Sanitation District must submit a resolution with our application otherwise it will become null and void and we will have lost the opportunity to receive funding for the final expansion of the GWRS. PROPOSED SOLUTION Approve the resolution granting the Sanitation District the ability to apply for the third round of the WIIN Act funding for the construction of the Plant No. 2 Headworks Segregation Project (P2-122), which would increase the amount of water delivered to the GWRS and support GWRS Final Expansion. TIMING CONCERNS The grant is due to the Bureau of Reclamation on June 28, 2019. According to the rules and regulations set forth by the Bureau, an approved/signed resolution must be submitted with the grant proposal. RAMIFICATIONS OF NOT TAKING ACTION Our application for the grant would not be accepted and we would not receive the funding (if granted) to offset the costs of the Plant No. 2 Headworks Segregation Project. PRIOR COMMITTEE/BOARD ACTIONS June 2018 - Adopted Resolution No. OCSD 18-11 approving and authorizing the grant application for the Title XVI Water Recycling Projects under the WIIN Act including the Sanitation District's Effluent Reuse Project; and the Execution of Grant Documents with the United States Department of the Interior, Bureau of Reclamation. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A Page 2 of 3 ATTACHMENT The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (mmocsd.com) with the complete agenda package: • Draft Resolution No. OCSD 19-05 Page 3 d 3 RESOLUTION NO. OCSD 19-05 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPROVING AND AUTHORIZING THE GRANT APPLICATION FOR THE THIRD ROUND OF THE TITLE XVI WATER RECYCLING PROJECTS UNDER THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATIONS (WIIN) ACT INCLUDING ORANGE COUNTY SANITATION DISTRICT'S EFFLUENT REUSE PROJECT; AND THE EXECUTION OF GRANT DOCUMENTS WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF RECLAMATION WHEREAS, the Board of Directors approved a five-year Strategic Plan in November 2013 establishing future water recycling as a strategic goal; and WHEREAS, in furtherance of the Strategic Plan, the Sanitation District conducted an Effluent Reuse Study (SP-173) to assess the feasibility of water recycling at the Huntington Beach Facility and to evaluate options to improve the region's local water supply reliability by substituting recycled water for existing potable water demands; and WHEREAS, the U.S. Department of the Interior, Bureau of Reclamation, has announced the third-round grant funding through a program entitled "Title XVI Water Recycling Projects Under WIIN Act" ("Grant") established under Title XVI of Public Law No. 114-322 to assist in identifying and investigating opportunities to reclaim and reuse wastewater and promote the availability of new sources of clean water while promoting water and energy efficiency and environmental stewardship; and WHEREAS, this resolution certifies the Board of Directors' approval of the Sanitation District's grant application for the Bureau of Reclamation's Funding Opportunity Number BOR-DO-1 9-F01 8. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The Board of Directors hereby approves the Sanitation District's application for a Grant to the United States Department of the Interior, Bureau of Reclamation, in response to funding opportunity announcement BOR-DO-19-FO18 to support projects identified bythe SP-173 Effluent Reuse Study, supportwater reclamation and reuse, and promote water efficiency, sustainable water management, and environmental stewardship. Section 2: The Board of Directors authorizes the General Manager or his designee to submit an application for the Grant and to negotiate and execute any documents related to this Grant, including a grant application and cooperative agreement, OCSD 19-05-1 to accept financial assistance from the U.S. Department of the Interior, Bureau of Reclamation. Section 3. If the application for the Grant is approved, the Sanitation District has the capability to provide matching grant funds and/or in-kind contributions specified in the grant requirements. Section 4. The Sanitation District will work with the U.S. Department of the Interior, Bureau of Reclamation, to meet established deadlines for entering into a cooperative agreement. PASSED AND ADOPTED at a regular meeting of the Board of Directors held June 26, 2019. David John Shawver Chairman of the Board ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-05-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-05 was passed and adopted at a regular meeting of said Board on the 2611 day of June 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 261h day of June 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-05-3 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Meeli 6/ng Dale TO6/26/19r AGENDA REPORT emNumber Iem1umber 4 16 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Legislative Affairs Update for the month of May 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 Staff was recently notified that Senate Bill (SB) 332 by Senator Hertzberg will be a two-year bill. Additionally, we were notified that the bill has been placed in the Suspense file for this year. The bill is expected to come back next year. In its current form, the bill 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 will continue to monitor this bill and continue working with our partner agencies and organizations including the California Association of Sanitation Agencies and Watereuse. Additionally, we will continue to work with and help educate the sponsor of this bill, the Natural Resources Defense Council (NRDC). The Washington D.C. Advocacy Days have been scheduled for June 17-19, during which current legislation, regulatory affairs, and possible funding opportunities will be discussed. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Federal Update & Legislative/PFAS Matrix- ENS Resources • State Update & Legislative Matrix - Townsend Public Affairs • Grant Matrix • PowerPoint Presentations from 6/10/2019 Committee Meeting Page 2 d 2 Ll �V RESOURCES MEMORANDUM TO: Rebecca Long FROM: Eric Sapirstein DATE: May 20,2019 SUBJECT: Washington Update The past month saw significant progress in congressional action on fiscal year(FS) 2020 spending bills. Aside from setting in motion the decision-making process for spending priorities,efforts to move forward on infrastructure and Per-and Polyfiuoroalkyl Substances (PFAS) policies continued in both chambers. The following summarizes these activities and potential impacts upon OCSD. Regulation and Remediation ofPFAS The escalating concern over the health impacts connected to PFAS contamination of drinking water sources has generated dozens of bills to require either the listing of PFAS for regulation under the Safe Drinking Water Act or developing grants assistance to communities for the cleanup of water supplies. We attached a copy of the bills that have been introduced to date. The issue for OCSD is a growing interest in regulating the discharge of PFAS compounds under the Clean Water Act. Under current thinking, such regulation would be imposed upon manufacturers of products that contain PFAS,such as cookware and fire retardants,through the establishment of effluent limitations. At the same time, there does not seem to be an interest in regulating clean water agencies,but as the debate continues and U.S. Environmental Protection Agency(USEPA) conducts its investigation on PFAS impacts,the potential (and only the potential) exists that biosolids could become part of the review process,setting in motion questions on the feasibility of land application. Again,this has not been a focus of ongoing reviews,but merits continued monitoring. 2 1 P a g e Fiscal Year 2020 Spending Priorities Begin to Take Shake Out in the House The House Committee on Appropriations formally took incremental actions on a series of spending bills,including those that fund the U.S. Bureau of Reclamation, U.S. Department of Energy,U.S.Army Corps of Engineers and USEPA,moving the bills to the House floor for debate and passage. In approving the Energy and Water Development Appropriations Bill,the committee emphasizes and directs the agencies to support projects that address resiliency needs,such as sea level rise. As to actual funding priorities,the bill would fund water recycling, desalination and innovative water technology solutions, reversing the Administration's budget request to effectively eliminate such funding. Under the measure (H.R.XXXX),the WaterSmart Program is funded at$63 million to enhance efforts to develop water conservation and innovation. The all-important water recycling account is funded at$64 million because of the limited authorization that exists. This amount could be increased in the coming months,if Congress renews the Water Infrastructure Improvements for the Nation Act(WIIN) program. The provided funding could assist OCSD in its effort to develop alternative water supply from its effluent. Within the U.S. Department of Energy,the committee states in its report that there is "great potential" for energy savings from wastewater (water) systems. It provides an additional$5 million to support technical assistance to agencies seeking to reduce energy consumption. But in a more meaningful commitment,the bill would appropriate$20 million to support the demonstration of wastewater energy efficient technologies,including alternative energy sources. This funding presents an opportunity for OCSD to consider re-establishing its relationship with USDOE to identify ways in which it could serve as an incubator to demonstrate energy efficient technologies. The committee also approved the USEPA spending bill (H.R.XXXX) and in so doing reaffirmed its support of core water infrastructure assistance programs,the State Revolving Loan Fund Program and the Water Infrastructure Finance and Innovation Act. Under the measure,the SRF would receive $3 billion ($1.8 billion for wastewater and$1.3 billion for drinking water) Water Infrastructure Finance and Innovation Act(WIFIA). WIFIA would receive $45 million,leveraging$5 billion in new construction. Assuming House passage of the two spending bills before July 4th,the Senate Committee on Appropriations is expected to begin considering its versions of the spending bills over the summer with the expectation of finalizing spending bills in the fall before October 1. Infrastructure Policy Initiative Grows to$2 Trillion;But Passage Unclear As congressional infrastructure policy committees continue to consider ways to address the nation's water infrastructure needs, President Trump and Democratic leaders met and agreed to boost the overall infrastructure program budget to$2 trillion. The general reception in Congress was skepticism on the ability to fund such a commitment 31Page Nonetheless,at the time of this writing,the president and Democratic leaders are scheduled to meet the week of May 20 to identify funding mechanisms to achieve the benchmark of$2 trillion. Given the limited time that remains in the legislative session this year and the approaching general election next year,it seems more probable that a piecemeal approach to water infrastructure will be the route to success. To this end,the House clean water infrastructure bill, H.R. 1497,appears to be the vehicle to provide increased funding for the SRF program at a$4 billion annual funding level. This bill could also serve to address affordability issues, including disadvantaged communities, management of wipes, and resiliency policy issues. Committee on Transportation&Infrastructure action on H.R. 1497 is expected before Congress recesses for July 4C . Action in the Senate continues to be elusive as the focus continues to be on transportation infrastructure needs. According to Committee on Environment and Public Works,water infrastructure would be addressed as part of next year's renewal of the Water Resources Development Act. If this occurs,the second session of this Congress in 2020 would be dedicated to sending a significant water bill to the president shortly before the general election or during a Lame Duck Session following the elections. Aside from wastewater infrastructure,the priority to address resiliency and alternative water supply needs continues to be a focus for the House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources. In the House,Representative Josh Harder (D-CA) introduced the Save Our Water Ac (H.R. 2473)that would,among other matters,fund individual water recycling projects at a maximum amount of$30 million. The bill would commit$500 million to the overall program for a period of five years. The bill mirrors an early bill (H.R. 1162,sponsored by Representative Grace Napolitano (D-CA),and which OCSD's Representatives Harley Rouda and Alan Lowenthal cosponsored. Should either legislation be enacted into law,it would provide OCSD with a new source of funding opportunities related to its ongoing water recycling program. Meanwhile, in the Senate,Senator Dianne Feinstein,working with the Committee on Energy and Natural Resources,has developed a draft bill to renew expiring provisions of the Water Infrastructure Improvements for the Nation Act. Within the legislation are provisions to extend the Act's water recycling project assistance by providing similar assistance as authorized under the Napolitano and Harder bills. ENS Resuuttm 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 Federal Legislation 2019 -2020 House-3/4/19 Water Recycling Investment and Improvement Act. Establishes a Referred to H.R. 1162 Rep. Grace Napolitano(D-CA) grant program for the funding of water recycling and reuse projects, Subcommittee on Watch CASA and for other purposes. 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 Referred to the H.R. 1497 Rep. Peter DeFazio (D-OR) five years to address wastewater infrastructure and local water quality Subcommittee on Watch CASA challenges.This bill allocates$20 billion in grants for the Clean Water Water Resources and State Revolving Fund. Environment House-217119 Comprehensive Environmental Response, Compensation,and Referred tp H.R. 535 Rep. Debbie Dingell (D-MI) Liability Act of 1980.Will require the Administrator of the Subcommittee on Watch NYC Environmental Protection Agency to designate per-and Railroads, Pipelines, polyfluoroalkyl substances as hazardous substances under the and Hazardous Materials House-216/19 Passed House by Pacific Northwest Earthquake Preparedness Act of 2019. voice vote, received in H.R. 876 Rep. Peter DeFazio (D-OR) Requires the FEMA to develop a plan for the purchase and Senate and referred to Watch NYC installation of an earthquake early warning system for the Cascadia Committee on Subduction Zone.The term"Cascadia Subduction Zone" Homeland Security and Governmental Affairs Regulatory Certainty for Navigable Waters Act. Repeals the House-2/7/19 Rep.Jaime Herrera Beutler(R- Waters of the United States mle and amend the Federal Water Referred to H.R. 667 WA) Pollution Control Act definition of navigable waters, and for other Subcommittee Watch NYC a Water Resources and purposes. Environment Updated May 2019 OCSD Federal Bills of Interest THOR SUMMARY LATEST ACTION OCSD POSITION OTHER ==U POSITIONS A bill to encourage the research and use of innovative materials Senate-2/7119 Sen. Sheldon Whitehouse(D- and associated techniques in the construction and preservation Referred to 5.403 Committee on Watch NYC RI) of the domestic transportation and water infrastructure system, Environment and and for other purposes. Public Works House-2I7/19 To require the Corps of Engineers to notify affected communities Referred to H.R. 977 Rep. Brian Mast(R-FL) before releasing water contaminated with cyanobacteria from Subcommittee on Watch NYC flood risk management projects, and for other purposes. Water Resources and Environment House-217/19 To amend the Federal Water Pollution Control Act to limit Referred to H.R. 892 Rep. Duncan Hunter(R-CA) attorney fees and penalties in citizen suits, and for other Subcommittee on Watch NYC purposes. Water Resources and Environment California New River Restoration Act of 2019. Requires the House-217/19 USEPA to establish a California New River restoration program for Referred to the New River. USEPA must(1) implement projects, plans,and H.R.358 Rep. Juan Vargas (D-CA) initiatives for the New River supported by the Califomia-Mexico Subcommittee on Watch NYC Border Relations Council; and (2)provide grants and technical Water Resources and assistance for coordinating restoration and protection activities. Environment Senate-217119 A bill to amend the Federal Water Pollution Control Act to clarify Referred to S. 376 Sen. Rand Paul (R-KY) the definition of navigable waters,and for other purposes. Committee on Watch NYC Environment and Public Works Updated May 2019 OCSD Federal Bills of Interest THOR SUMMARY LATEST ACTION OCSD POSITION OTHER House-2/7/19 Referred to National Infrastructure Development Bank Act. Facilitates efficient Subcommittee on H.R. 658 Rep. Rosa DeLauro investments and financing of infrastructure projects and newjob Economic Watch NYC creation through the establishment of a National Infrastructure Development, Public Development Bank, and for other purposes. Buildings, and Emergency Management House-2112119 To amend the Water Resources Development Act of 1986 to Referred to the H.R. 1137 Rep.John Gammendi (D-CA) repeal the authority relating to reprogramming during national Subcommittee on Watch NYC emergencies. Water Resources and Environment Coastal Communities Adaption Act. Improves the resilience of the House-3/619 built and natural environment to natural disasters and climate change Referred to H.R. 1317 Rep. Harley Rouda (D-CA) Subcommittee using, among other measures, natural and nature-based features, on Watch NYC a and for other purposes. Water Resources and Environment A bill to require the Administrator of the Environmental Senate-2128/19 Protection Agency to designate per-and polyfluoroalkyl Referred to S. 638 Sen. Tom Carper(D-DE) substances as hazardous substances under the Comprehensive Committee on Watch NYC Environmental Response, Compensation, Liability Act of 1980, Environment and and for other purposes. Public Works Senate-2128/19 A bill to provide adequate funding for water and sewer Referred to S. 611 Sen. Bernie Sanders(I-VT) infrastructure, and for other purposes. Committee on Watch NYC Environment and Public Works Updated May 2019 OCSD Federal Bills of Interest • - SUMMARY LATEST ACTIONOCSD POSITION POSITIONS House-4/9/19 Passed House 329- To amend the Federal Water Pollution Control Act to reauthorize 56. Received in H.R. 1331 Rep. Angie Craig (D-MN) certain programs relating to nonpoint source management,and Senate, referred to Watch NYC for other purposes. Committee on Environment and Public Works House-3115119 To amend the Federal Water Pollution Control Act with respect to Referred to H.R. 1764 Rep.John Garamendi (D-CA) permitting terms,and for other purposes. Subcommittee on Watch CASA-Support Water Resources and Environment House-3/15/19 To amend the Federal Water Pollution Control Act with respect to Referred to CASA, NACWA, H.R. 1764 Rep.John Garamendi (D-CA) permitting terms,and for other purposes. Subcommittee a Watch ACWA-Support Water Resources and Environment Senate-3128/19 PFAS Detection Act of 2019. Requires the Director of the United Referred to S.950 Sen. Debbie Stabenow(D-MI) States Geological Survey to perform a nationwide survey of Committee on Watch NYC perfluorinated compounds, and for other purposes. Environment and Public Works Senate-3128/19 Sen. Sheldon Whitehouse(D- BLUE GLOBE Act. Improves data collection and monitoring of the Referred to S.933 RI) Great Lakes, oceans, bays, estuaries, and coasts, and for other Committee on Watch NYC purposes. Commerce, Science, and Transportation Updated May 2019 OCSD Federal Bills of Interest Coordinated Ocean Observations and Research Act of 2019. Senate-413/19 Reauthorizes the Integrated Coastal and Ocean Observation System Referred to S.914 Sen. Roger Wicker(R-MS) Act of 2009, to clarify the authority of the Administrator of the National Committee on Watch NYC Oceanic and Atmospheric Administration with respect to post-storm Commerce, Science, assessments,and to require the establishment of a National Water and Transportation Center, and for other purposes. House-419119 Smart Energy and Water Effeciency Act of 2019. Provides for a Referred to H.R. 2019 Rep. Jerry McNerney(D-CA) smart water resource management pilot program. Committee on Watch NYC Science, Space, and Technology Indian Water Rights Settlement Extension Act.Amends the House-4/4/19 H.R. 1904 Rep. Raul Grijalva(D-CA) Omnibus Public Land Management Act of 2009 to make the Committee on Natural Watch NYC Reclamation Water Settlements Fund permanent. Resources Hearings Held House-4/11119 Water Quality Certification Improvement Act of 2019.Amends the Referred to H.R. 2205 Rep. David McKinley(R-WV) Federal Water Pollution Control Act to make changes with respect to Subcommittee on Watch NYC water quality certification, and for other purposes. Water Resources and Environment Digital Coast Act. Requires the Secretary of Commerce, acting through the Administrator of the National Oceanic and Atmospheric Administration, to establish a constituent-driven program to provide a House-419119 Rep. Dutch Ruppersberger(D- digital information platform capable of efficiently integrating coastal Referred to H.R. 2189 MD) data with decision-support tools, training, and best practices and to Committee on Natural Watch NYC support collection of priority coastal geospatial data to inform and Resources improve local, State, regional, and Federal capacities to manage the coastal region, and for other purposes. Updated May 2019 OCSD Federal Bills of Interest A bill to require the Secretary of Commerce, acting through the Administrator of the National Oceanic and Atmospheric Administration,to establish a constituent-driven program to Senate-4/9119 provide a digital information platform capable of efficiently Referred to S. 1069 Sen. Tammy Baldwin (D-W I) integrating coastal data with decision-support tools, training, Committee on watch NYC and best practices and to support collection of priority coastal Commerce, Science, geospatial data to inform and improve local, Stale, regional, and and Transportation Federal capacities to manage the coastal region, and for other purposes. Senate-4/9119 A bill to amend the Federal Water Pollution Control Act to make Referred to S. 1087 Sen. John Barrasso(R-WY) changes with respect to water quality certification, and for other Committee on Watch NYC purposes. Environment and Public Works S.A.V.E.Water Resoures Act. Promotes water supply reliability House-512119 H.R. 2473 Rep.Josh Harder(D-CA) and improved water management for rural communities, the Referredto Committee Watch NYC State of California, and the Nation, and for other purposes. on Natural Resources Safe Drinking Water Assistance Act of 2019. Improves and Senate-4/30/19 coordinate interagency Federal actions and provide assistance to Referred to S. 1251 Sen.Jeanne Shaheen (D-NH) States for responding to public health challenges posed by emerging Committee on Watch NYC contaminants, and for other purposes. Environment and Public Works WISE Act.Amends the Federal Water Pollution Control Act to require House-511/19 Referred to Rep. Debbie Mucarsel-Powell a certain percentage of funds appropriated for revolving fund H.R. 2458 (D-FL) capitalization grants be used for green projects, and for other Su Resrourcesee of Water Watch NYC REnvironm and purposes. Environment Updated May 2019 OCSD Federal Bills of Interest THOR SUMMARY LATEST ACTION OCSD POSITION OTHER ==U POSITIONS Protect Drinking Water from PFAS Act of 2019. Requires the Environmental Protection Agency(EPA)to address the level of House-4/29119 perfluoroalkyl and polyfluoroalkyl substances (PFAS)in drinking Referred to H.R. 2377 Rep. Brendan Boyle (D-PA) water. Specifically, the EPA must publish a maximum contaminant Committee on Energy Watch NYC level goal and promulgate a national primary drinking water regulation and Commerce for total PFAS. PFAS are man-made chemicals that may lead to adverse human health effects. House-517119 7o assist community water systems affected by PFAS Referred to H.R. 2633 Rep. Frank Pallone(D-NJ) contamination, and for other purposes. Committee on Energy Watch NYC and Commerce To require the Administrator of the Environmental Protection House-517/19 H.R. 2566 Rep. Darren Solo(D-FL) Agency to revise the Safer Choice Standard to provide for a Referred to Watch NYC Safer Choice label for pots, pans, and cooking utensils that do Committee on Energy not contain PFAS,and for other purposes. and Commerce PFAS Right-To-Know Act.Amends the Emergency Planning and House-518119 H.R. 2577 Rep.Antonio Delgado(D-NY) Community Right-To-Know Act of 1986 to include per-and Referred to Watch NYC polyfluoroalkyl substances on the Toxics Release Inventory, and for Committee on Energy other purposes. and Commerce A bill to encourage Federal agencies to expeditiously enter into Senate-5/8119 or amend cooperative agreements with States for removal and Referred to S. 1372 Sen. Debbie Stabenow(D-MI) remedial actions to address PFAS contamination in drinking, Committee on Watch NYC surface,and ground water and land surface and subsurface Environment and strata,and for other purposes. Public Works Updated May 2019 OCSD Federal Bills of Interest =WFAUTHOR SUMMARY LATEST ACTIONOCSID POSITION POSITIONS House-5/16/19 Making appropriations for energy and water development and Reported out of H.R. XXXX Rep. Kaptur, Marcy(D-OH) related agencies for the fiscal year ending September 30, 2020, Subcommittee on Watch NYC and for other purposes. Energy and Water Development, and Related Agencies House-5116119 Making appropriations for the Department of the Interior, Reported out of H.R.XXXX Rep. McCollum, Belly(D-MN) environment,and related agencies for the fiscal year ending Subcommittee on Watch NYC September 30,2020,and for other purposes Interior and the Environment, and Related Agencies House-5/15/19 To establish a Water Infrastructure Trust Fund, and for other Referred to H.R. 2705 Rep. Earl Blumenauer(D-OR) Subcommittee on Watch NYC purposes. Water Resources and Environment House-5/15119 Referred to H.R. 2755 Rep. Brendan Boyle(D-PA) To standardize and extend certain Buy America Provisions. Committees on Watch NYC Transportation and Infrastructure, Energy and Commerce A bill to amend the Safe Drinking Water Act to require the House-5115119 Administrator of the Environmental Protection Agency to set Referred to S. 1473 Sen. Kristen Gillibrand (D-NY) maximum contaminant levels for certain chemicals,and for other Committee on Watch NYC Environment and purposes. Public Works Updated May 2019 OCSD Federal Bills of Interest A bill to facilitate efficient investments and financing of Senate-5/16/19 S. 1535 Sen. Mark Warner(D-VA) infrastructure projects and new, long-term job creation through Referred to Watch NYC the establishment of an Infrastructure Financing Authority, and Committee on for other purposes. Finance House-5116119 To make certain municipalities eligible for grants under the Referred to H.R. 2776 Rep. Lod Trahan(D-MA) Federal Water Pollution Control Act,and for other purposes. Subcommittee on Watch NYC Water Resources and Environment To amend the Safe Drinking Water Act to require continued and House-5/16/19 H.R. 2800 Rep. Elissa Slotkin (D-MI) expanded monitoring of pernuoroalkyl and polyttuoroalkyl Referred to Watch NYC substances in drinking water,and for other purposes. Committee on Energy and Commerce Senate-5116/19 Sen. Shelley Moore Capito(D- A bill to include certain perfluoroalkyl and polyfluoroalkyl Referred to S. 1507 WV) substances in the toxics release inventory,and for other Committee on Watch NYC purposes. Environment and 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 ACW A-Association of California Water Agencies CSDA-California Special Districts Association Updated May 2019 116th Congress - 1st Session PFAS LEGISLATION Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date H.R. 535 PFAS Action Act of 2019 1/14/2019 Dingell, 42 2/7/2019 Referred to House: Energy and Requires the Administrator of the Debbie (D- Subcommittee on Commerce, Environmental Protection Agency MI) Railroads, Transportation and to designate per- and Pipelines, and Infrastructure polyfluoroalkyl substances as Hazardous hazardous substances under the Materials Comprehensive Environmental Response, Compensation, and Liability Act of 1980. S.638 PFAS Action Act of 2019 2/28/2019 Carper,Tom 30 2/28/2019 Referred to Senate: A bill to require the Administrator Carper is Ranking (D-DE) Committee on Environment and of the Environmental Protection Democrat on committee Environment and Public Works Agency to designate per-and Public Works polyfluoroalkyl substances as hazardous substances under the Comprehensive Environmental Response, Compensation, Liability Act of 1980, and for other purposes. S.950 PFAS Detection Act of 2019 3/28/2019 Stabenow, 6 3/28/2019 Referred to Senate: Requires the Director of the Stabenow has taken lead Debbie (D- Committee on Environment and United States Geological Survey to on PFAS issue MI) Environment and Public Works perform a nationwide survey of Public Works perfluorinated compounds, and for other purposes. H.R. 1976 PFAS Detection Act of 2019 3/28/2019 Kildee, 19 4/18/2019 Referred to House: Natural Requires the Director of the Daniel (D- Subcommittee on Resources United States Geological Survey to MI) Water, Oceans, perform a nationwide survey of and Wildlife perfluorinated compounds, and For other purposes. PFAS Legislation Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date H.R. 2377 Protect Drinking Water 4/29/2019 Boyle, 14 4/29/2019 Referred to House: Energy and Amends the Safe Drinking Legislative approach is from PFAS Act of 2019 Brendan (D- Committee on Commerce Water Act to require the considered the most PA) Energy and Administrator of the likley outcome for Commerce Environmental Protection congressional action on Agency to publish within one PFAS year of enactment a maximum contaminant level goal and promulgate a national primary drinking water regulation for total per- and polyfluoroalkyl substances, and for other purposes. H.R. 2533 To assist community water 5/7/2019 Pallone, 1 5/7/2019 Referred to House: Energy and Assists community water systems Pallone serves as Chair systems affected by PFAS Frank (D-NJ) Committee on Commerce affected by PFAS contamination, of Energy and contamination, and for Energy and and for other purposes. Commerce with other purposes. Commerce jurisdiction over drinking water H.R. 2566 To require the 5/7/2019 Soto, 0 5/7/2019 Referred to House: Energy and Requires the Administrator of the Administrator of the Darren (D- Committee on Commerce Environmental Protection Agency Environmental Protection FL) Energy and to revise the Safer Choice Agency to revise the Safer Commerce Standard to provide for a Safer Choice Standard to provide Choice label for pots, pans, and for a Safer Choice label for cooking utensils that do not pots, pans, and cooking contain PFAS, and for other utensils that do not contain purposes. PFAS, and for other purposes. PFAS Legislation Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date H.R. 2605 To direct the Administrator 5/8/2019 Stevens, 5 5/8/2019 Referred to House: Energy and Directs the Administrator of the of the Environmental Haley(D- Committee on Commerce Environmental Protection Agency Protection Agency to issue MI) Energy and to issue a final rule adding as a a final rule adding as a class Commerce class all perfluoroalkyl and all perfluoroalkyl and polyfluoroalkyl substances with at polyfluoroalkyl substances least one fully fluorinated carbon with at least one fully atom to the list of hazardous air fluorinated carbon atom to pollutants under section 112(b) of the list of hazardous air the Clean Air Act (42 U.S.C. pollutants under section 7412(b)), and for other purposes. 112(b)of the Clean Air Act (42 U.S.C. 7412(b)), and for other purposes. H.R. 2600 Toxic PFAS Control Act 5/8/2019 Dean, 3 5/8/2019 Referred to House: Energy and Regulates per-and polyfluoroalkyl Madeleine Committee on Commerce substances under the Toxic (D-PA) Energy and Substances Control Act, and for Commerce other purposes. H.R.2577 To amend the Emergency 5/8/2019 Delgado, 4 5/8/2019 Referred to House: Energy and Amends the Emergency Planning Planning and Community Antonio (D- Committee on Commerce and Community Right-To-Know Right-To-Know Act of 1986 NY) Energy and Act of 1986 to include per-and to include per- and Commerce polyfluoroalkyl substances on the polyfluoroalkyl substances Toxics Release Inventory, and for on the Toxics Release other purposes. Inventory, and for other purposes. H.R. 2570 PFAS User Fee Act of 2019 5/8/2019 Rouda, 0 5/9/2019 Referred to House: Energy and Ensures that polluters pay ongoing Harley Subcommittee on Commerce, water treatment costs associated Water Resources Transportation and with contamination from and Environment Infrastructure perfluoroalkyl and polyfluoroalkyl substances, and for other purposes. H.R.2591 PFAS Waste Incineration 5/8/2019 Khanna, Ro 4 5/8/2019 Referred to House: Energy and Prohibits the waste incineration of Ban Act of 2019 (D-CA) Committee on Commerce per-and polyfluoroalkyl Energy and substances, and for other Commerce purposes. PFAS Legislation Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date H.R. 2596 To amend the Toxic 5/8/2019 Kuster, Ann 1 5/8/2019 Referred to House: Energy and Amends the Toxic Substances Substances Control Act with (D-NH) Committee on Commerce Control Act with respect to respect to manufacturing Energy and manufacturing and processing and processing notices for Commerce notices for per-and per-and polyfluoroalkyl polyfluoroalkyl substances, and for substances, and for other other purposes. purposes. H.R. 2608 To require the testing of 5/9/2019 Maloney, 0 5/9/2019 Referred to House: Energy and Requires the testing of perfluoroalkyl and Sean Patrick Committee on Commerce perfluoroalkyl and polyfluoroalkyl polyfluoroalkyl substances (D-NY) Energy and substances under the Toxic under the Toxic Substances Commerce Substances Control Act, and for Control Act, and for other other purposes. purposes. H.R. 2626 To encourage Federal 5/9/2019 Upton, Fred 3 5/10/2019 Referred to House: Energy and Encourages Federal agencies to agencies to expeditiously (R-MI) Subcommittee on Commerce, Natural expeditiously enter into or amend enter into or amend Water Resources Resources, cooperative agreements with cooperative agreements and Environment Transportation and States for removal and remedial with States for removal and Infrastructure actions to address PFAS remedial actions to address contamination in drinking, surface, PFAS contamination in and ground water and land surface drinking, surface, and and subsurface strata, and for ground water and land other purposes. surface and subsurface strata, and for other purposes. H.R. 2638 To direct the Administrator 5/9/2019 Fletcher, 0 5/9/2019 Referred to House: Energy and Directs the Administrator of the of the Environmental Lizzie (D-TX) Committee on Commerce Environmental Protection Agency Protection Agency to issue Energy and to issue guidance on minimizing guidance on minimizing the Commerce the use of firefighting foam use of firefighting foam containing PFAS, and for other containing PFAS, and for purposes. other purposes. PFAS Legislation Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date S. 1372 A bill to encourage Federal 5/8/2019 Stabenow, 10 5/8/2019 Referred to Senate: Encourages Federal agencies to agencies to expeditiously Debbie (D- Committee on Environment and expeditiously enter into or amend enter into or amend MI) Environment and Public Works cooperative agreements with cooperative agreements Public Works States for removal and remedial with States for removal and actions to address PFAS remedial actions to address contamination in drinking, surface, PFAS contamination in and ground water and land surface drinking, surface, and and subsurface strata, and for ground water and land other purposes. surface and subsurface strata, and for other purposes. H.R. XXXX Fiscal Year 2020 Interior- 5/14/2019 McCollum, 0 5/15/2019 Reported out of House: Making appropriations for the Provides$18 million to Environment Apporprations Betty(D- Subcommittee on Appropriations Department of the Interior, USEPA to set MN) Interior and environment, and related agencies enforceable standards Environment, and for the fiscal year ending Related Agencies September 30, 2020, and for other purposes. S. 1473 A bill to amend the Safe 5/15/2019 Gillibrand, 1 5/15/2019 Referred to Senate: A bill to amend the Safe Drinking Drinking Water Act to Kristen (D- Committee on Environment and Water Act to require the require the Administrator NY) Environment and Public Works Administrator of the of the Environmental Public Works Environmental Protection Agency Protection Agency to set to set maximum contaminant maximum contaminant levels for certain chemicals, and levels for certain chemicals, for other purposes. and for other purposes. H.R. 2741 LIFT Act 5/15/2019 Pallone, 30 5/15/2019 Referred to House: Energy and To rebuild and modernize the Provides for a program Frank (D-NJ) Committee on Commerce, Nation's infrastructure to expand to assist communities Energy and Science, Space, and access to broadband and Next impacted by PFAS to Commerce, Technology,Ways Generation 9-1-1, rehabilitate implement remediation Science, Space, and Means, drinking water infrastructure, technologies and Technology, Transportation and modernize the electric grid and Ways and Means, Infrastructure, and energy supply infrastructure, Transportation Education and redevelop brownfields, strengthen and Infrastructure, Labor health care infrastructure, create and Education and jobs, and protect public health and Labor the environment, and for other purposes. PFAS Legislation Bill Number Title Introduced Sponsor Cosponsors Latest Action Last Action Committees Summary Comments Date S. 1507 PFAS Release Disclosure Act 5/16/2019 Shelley 2 5/16/2019 Introduced in the To Include certain perfluoroalkyl Capito sits on key Senate Moore Senate and polyfluoroalkyl substances Committee on Capito (R- in the toxics release inventory, Environment and Public WV) and for other purposes. Works and is chair of the subcommittee with juridsdiction over infrastructure H.R. 2800 To amend the Safe Drinking 5/16/2019 Slotkin, 3 5/16/2019 Referred to House: Energy and To amend the Safe Drinking Water Water Act to require Elissa (D-MI) Committee on Commerce Act to require continued and continued and expanded Energy and expanded monitoring of monitoring of Commerce perfluoroalkyl and polyfluoroalkyl perfluoroalkyl and substances in drinking water, and polyfluoroalkyl substances for other purposes. in drinking water, and for other purposes. TC", WNSEND I F - F - TPA To: Orange County Sanitation District From: Townsend Public Affairs, Inc. Date: May 20, 2019 Subject: Legislative and Public Affairs Agenda Report State Political Update After the Legislature returned from Spring Recess, legislators had only five working days to pass fiscal bills out of their assigned policy committees before the April 26 deadline. This is the first step in the legislative process for bills to either move forward to their appropriations committees or "die" in their house of origin. There have been nearly 3,000 bills introduced in the first year of this two-year session and only 330 of them failed passage before the April 26 deadline. Those bills are now two-year bills and will be considered again in January 2020. Following the policy committee deadline on April 26 was a major appropriations committee deadline on May 17.All bills that passed their respective appropriations committee by the deadline will now move to their respective chambers' Floor. On May 16, the Assembly and Senate Appropriations Committees conducted a Suspense File hearing,where they heard approximately 1,000 bills that have a non-absorbable cost to the State in the span of just a few hours. Over 400 bills were held in their appropriations committee and are now two-year bills. Below is a list of key upcoming deadlines in the Legislature: May 31 — Last day for bills to be passed out of their house of origin June 15—Budget bill must be passed by midnight July 10 — Last day for policy committees to hear and report fiscal bills in their second house to fiscal committees. Governor's May Revise On May 9, Governor Newsom presented his first May Revise, which incorporates changes to the Governor's January Budget proposal aftertaking into account actual state tax revenue and a more accurate financial forecast for the upcoming fiscal years. The January Budget proposal totaled $209.1 billion, however, the May Revise projects additional revenues bringing the total proposed Budget to approximately $213.5 billion. During his press conference, the Governor noted that the majority of these revenue funds are largely constitutionally obligated to fund statewide reserves (rainy day fund), debt repayment, and Prop 98 education investments, making the budget surplus levels more or less unchanged. The May Revise also forecasted slower economic growth over the next three years, a decrease from the January forecast of approximately $1.6 billion overall by FY 2022-23. The Governor took the opportunity to highlight his lop budget priorities in his presentation, including additional education investment, expanding access to Medi-Cal for undocumented immigrants, and establishing a new path forward for working parents. Other major topics revealed include: Housing & Homelessness An additional $150 million for emergency housing shelters and navigation centers, bringing this year's total to $650 million. The State's 13 largest cities will receive $275 million, counties will receive $275 million, and Continuums of Care (CoCs)will receive $100 million. The May Revise pursues this revamp by aligning local jurisdiction housing targets with the forthcoming RHNA. The Budget also mentions that HCD will continue to develop long-term regional housing targets through a new RHNA process by 2022 Cap & Trade The Governor's January budget proposed $1 billion to support programs that reduce greenhouse gas emissions through a Cap and Trade Expenditure Plan.The Governor's May Revise increased the total funding for the Expenditure Plan by over $250 million. Specifically, the May Revise proposes the following changes to the Cap and Trade Expenditure Plan: • Transformative Climate Communities—one-time increase of$92 million for carbon neutral housing development. • Low Carbon Transportation — one-time increase of $130 million for mitigating diesel pollution. This includes $65 million to replace agriculture diesel equipment, $50 million for zero-emission trucks, transit buses, and freight equipment, and $15 million to help individuals replace high-polluting vehicles with more efficient cars and trucks. • Climate Smart Agriculture—one-time increase of$20 million for healthy soils and methane reduction programs. Emergency Preparedness, Response and Recovery The May Revise included $769.6 million in additional funding to enhance the State's fire preparedness including increased capacity to respond to emergency incidents. The May Revise also makes significant investments in the following areas which will be provided through the Budget subcommittee process: • $20 million one-time General Fund appropriation for CalOES targeted activities. • One-time $518,000 General Fund to reimburse cities, counties and special districts for 2018-19 property tax losses resulting from the 2018 wildfires. This augments the $31.3 million proposed in the 2019-20 Governor's Budget, and subsequently added to the 2018 Budget Act by Chapter 1, Statutes of 2019 (AB 72). ® May 2019 Report 2 The Legislature has until June 15 to consider the Governor's Budget proposal and ultimately vote on a final Budget. Budget Committees and Subcommittees will continue to hold hearings related to the Budget over the next month, as well as incorporate its own legislative priorities into their draft Budgets. Once both the Assembly and Senate have passed their respective budgets, a Budget Conference Committee will be convened to reconcile any differences between the two Budgets. Once both chambers pass a Budget, it will go to the Governors desk for approval. The Governor also stated during his May Revise announcement that he remains committed to working with the Legislature on a sustainable and reliable source of funding for safe and affordable drinking water. However, the May Revise included General Fund money to get the State Water Board ready to administer the implementation of a Safe and Affordable Drinking Water Program and to implement statutory changes to support ongoing sustainable funding. 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. In his 2019-2020 January Budget, Governor Newsom 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 (Monning, 2017), 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. The Governors May Revise reaffirmed his commitment to solving the Safe Drinking Water issue in California. Specifically, updated trailer bill language released by the Administration shows that the tax on urban water system ratepayers is still being proposed and championed by the Governor. On Wednesday May 15, the Senate Budget Subcommittee 2 on Resources, Environmental Protection, Energy and Transportation heard and rejected the Governors drinking water tax proposal. Instead,the Subcommittee passed a proposal that would allocate$150 million per year from the General Fund to the Safe and Affordable Drinking Water Fund as created by SB 200 (Monning). That continuous funding will be reduced if the Legislature passes any taxes or fees intended to help provide funding for the Safe and Affordable Drinking Water Fund. 0 May 2019 Report 3 Additional Priority Legislation AB 1184 (Gloria) —Public records., writing transmitted by electronic mail.,retention. Would, unless a longer retention period is required by statute or regulation, require a public agency for purposes of the California Public Records Act to retain and preserve for at least 2 years every writing containing information relating to the conduct of the public's business prepared, owned, or used by any public agency that is transmitted by electronic mail. AB 1184 passed the Assembly Appropriations Committee and is now on the Assembly Floor. 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 AS 1672 in Sacramento. AB 1672 was held in the Assembly Appropriations Committee's Suspense File and is now a two-year bill. TPA will continue to work with CASA in the interim recess to ensure that they are being supported through the process. 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.TPAworked 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. Shortly after that meeting, SB 332 was held in the Senate Appropriations Committee's Suspense File and is now a two-year bill. TPA will continue to work with industry coalitions, the author's office, and the bill sponsors during the interim recess to ensure that OCSD's interests are reflected in the bill going forward. SB 332 is now a two-year bill. 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 passed the Senate Appropriations Committee and is currently on the Senate Floor. 0 May 2019 Report 4 OCSD State Bills of Interest BILL SUMMARY &�ATEST ACTION r POSITION OTHERLEGISLATIVE qmmw�� PLAN POSITIONS Proposed Legislation 2019-2020 High Priority AB 11 Chiu [D] Community Redevelopment Law of 2019 Current law dissolved Currently in the Assembly Watch State Priorities: ACCOC-NYC redevelopment agencies as of February 1, 2012, and designates Appropriations Committee Continue to monitor LOCC-Watch successor agencies to act as successor entities to the dissolved the state budget CASA-NYC redevelopment agencies. This bill,the Community Redevelopment Law of process and ACWA-NYC 2019, would authorize a city or county, or two or more cities acting jointly, actively protect the CSDA-Oppose to propose the formation of an affordable housing and infrastructure allocation of local unless amended agency by adoption of a resolution of intention that meets specified property taxes to requirements, including that the resolution of intention include a special districts. passthrough provision and an override passthrough provision, as defined. AB 68 Ting [D] Land use: accessory dwelling units.The Planning and Zoning Law Passed the Assembly Watch Legislative and ACCOC-NYC authorizes a local agency to provide, by ordinance,for the creation of Appropriations Committee. Regulatory LOCC-Watch accessory dwelling units in single-family and multifamily residential zones Will be heard next on the Policies: Special CASA-NYC and sets forth required ordinance standards, including, among others, lot Assembly Floor Districts -Oppose ACWA-NYC coverage.This bill would delete the provision authorizing the imposition of further state CSDA-Watch standards on lot coverage and would prohibit an ordinance from imposing regulations that requirements on minimum lot size. adversely impact special district financing, operations, and administration. OCSD State Bills of Interest FMV r • . ' AB 69 Ting [D] Land use: accessory dwelling units. Current law requires the Currently on the Assembly Watch Legislative and ACCOC-NYC Department of Housing and Community Development to propose building Floor Regulatory LOCC-Watch standards to the California Building Standards Commission, and to adopt, Policies: Special CASA-NYC amend,or repeal rules and regulations governing, among other things, Districts-Oppose ACWA-NYC apartment houses and dwellings, as specified. This bill would require the further state CSDA-Watch department to propose small home building standards governing regulations that accessory dwelling units smaller than 800 square feet,junior accessory adversely impact dwelling units, and detached dwelling units smaller than 800 square feet, special district as specified,and to submit the small home building standards to the financing, California Building Standards Commission for adoption on or before operations, and January 1, 2021. administration. AB 134 Bloom [D] Safe, clean,affordable, and accessible drinking water.Would, by July Passed the Assembly Watch State Priorities: ACCOC-NYC 1 of each year,would require the State Water Resources Control Board to Appropriations Committee. Support legislation LOCC-Watch adopt an assessment of need for state financial assistance to provide Will be heard next on the or regulations that CASA-NYC safe drinking water that identifies failed water systems throughout the Assembly Floor restrict the use of ACWA-NYC state.The bill would require the assessment of need to prioritize the microplastics in any CSDA-Watch systems with the most urgent need for state financial assistance in light of product that is specified factors. The bill would require each regional engineer to arrange disposed of for a prescribed comprehensive assessment of each failed water system through the sewer in the region of the drinking water regional office to be completed within 2 system. years of the board identifying the failed water system in the assessment of need. AB 217 Garcia [D] Safe and Affordable Drinking Water Fund Would establish the Safe Passed 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 Will be heard next on the that CASA-NYC Legislature, to the board to provide a stable source of funding to secure Assembly Floor protects public ACWA-NYC access to safe drinking water for all Californians, while also ensuring the agencies CSDA-Watch long-term sustainability of drinking water service and infrastructure. OCSD State Bills of Interest AB 223 Stone [D] California Safe Drinking Water Act: microplastics The California Safe Two Year Bill Watch State Priorities: ACCOC-NYC Drinking Water Act requires the State Water Resources Control Board to Support legislation LOCC-Watch administer provisions relating to the regulation of drinking water to protect or regulations that CASA-NYC public health.Current law requires the state board,on or before July 1, restrict the use of ACWA-NYC 2020, to adopt a definition of microplastics in drinking water and,on or microplastics in any CSDA-Watch before July 1, 2021, to adopt a standard methodology to be used in the product that is testing of drinking water for microplastics and requirements for 4 years of disposed of testing and reporting of microplastics in drinking water, including public through the sewer disclosure of those results.This bill would require the state board,to the system. 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. Two Year Bill Watch State Priorities: ACCOC-NYC Would exempt from CEQA a project to construct or expand a recycled Support efforts to LOCC-Watch water pipeline for the purpose of mitigating drought conditions for which a reform the CASA-NYC state of emergency was proclaimed by the Governor if the project meets California ACWA-NYC specified criteria. Because a lead agency would be required to determine Environmental CSDA-Support if a project qualifies for this exemption,this bill would impose a state- Quality Act mandated local program.The bill would also exempt from CEQA the (CEQA)to development and approval of building standards by state agencies for streamline current recycled water systems. procedures and regulations for projects to refurbish or replace existing infrastructure facilities. OCSD State Bills of Interest AB 291 Chu Emergency preparedness Would establish a Local Emergency Held in Committee.Two Year Watch State Priorities: ACCOC-NYC Preparedness and Hazard Mitigation Fund to support staffing, planning, Bill Secure funding LOCC-Watch and other emergency mitigation priorities to help local governments meet through grants and CASA-NYC emergency management, preparedness, readiness, and resilience goals. legislation for ACWA-NYC The bill would, upon appropriation by the Legislature, require the infrastructure, CSDA-Watch Controller to transfer$500,000,000 to the fund. The bill would require the collection Office of Emergency Services to establish the Local Emergency improvements and Preparedness and Hazard Mitigation Fund Committee under the alternative Standardized Emergency Management System Advisory Board. renewable energy at the Fountain Valley, Plant No. 1 and Huntington Beach, Plant No. 2.E AS 292 Quirk [D] Recycled water: raw water and groundwater augmentation Current Cumengy in the Senate Natural Watch Legislative and ACCOC-NYC law requires the State Water Resources Control Board, on or before Resources and Water Regulatory LOCC-Watch December 31, 2023,to adopt uniform water recycling criteria for direct Committee and the Senate Policies:Water CASA-NYC potable reuse through raw water augmentation, as specified.This bill Environmental Quality Quality and ACWA-NYC would eliminate the definition of"direct potable reuse"and instead would Committee Supply-Support CSDA-Support substitute the term"groundwater augmentation"for"indirect potable reuse measures that for groundwater recharge"in these definitions. The bill would require, on promote and or before December 31, 2023, the state board to adopt uniform water provide for the use recycling criteria for raw water augmentation. of reclaimed water AB 405 Rubio [D] Sales and use taxes: exemption:water treatment.Would exempt from Held in Committee.Two Year Watch Guiding ACCOC-NYC Sales and Use Tax the gross receipts from the sale in this state of, and Bill Principles: Seek LOCC-Watch the storage, use,or other consumption in this state of, chemicals used to funds for OCSD CASA-Support treat water, recycled water,or wastewater regardless of whether those projects through ACWA-NYC 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;❑ OCSD State Bills of Interest r • . ' AB 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 legislation ACWA-NYC 100 days if that person receives approval from the legislative body and that would create CSDA-Sponsor the written consent of the agency attorney.This bill would exempt the efficiencies around head of a department of a county or city, or the head of a special district the retention policy from these recording retention requirements if the county, city, or special of surveillance district adopts a records retention policy governing recordings of routine video for video monitoring and recordings of telephone and radio communications. innocuous recordings. AB 587 Friedman [D] Accessory dwelling units:sale or separate conveyance Current Currently in the Senate Watch Legislative and ACCOC-NYC property tax law establishes a welfare exemption under which property is Housing and Senate Regulatory LOCC-Watch exempt from taxation if the property is owned and operated by a nonprofit Governance and Finance Policies: Special CASA-Work w/ corporation that is organized and operated for the purpose of building and Committee Districts -Oppose author rehabilitating single-family or multifamily residences for sale, as provided, further state ACWA-NYC at cost to low-income families.This bill would authorize a local agency to regulations that CSDA-Watch allow, by ordinance, an accessory dwelling unit that was created pursuant adversely impact to the process described above to be sold or conveyed separately from special district the primary residence to a qualified buyer if certain conditions are met. financing, operations, and administration. OCSD State Bills of Interest AB 841 Ting [D] Drinking water: contaminants: perfluoroalkyl and polyfluoroalkyl Currently on the Assembly Watch Legislative and ACCOC-NYC substances. Would require the Office of Environmental Health Hazard Floor Regulatory LOCC-Watch Assessment to adopt and complete a work plan within prescribed Policies: Source CASA-Watch timeframes to assess which substances in the class of perfluoroalkyl and Control -Support ACWA-Watch polynuoroalkyl substances should be identified as a potential risk to legislation and CSDA-Watch human health, as provided.The bill would require the office, as part of funding those assessments,to determine which of the substances are appropriate mechanisms that candidates for notification levels to be adopted by the state board. The bill reduce the amount would require the Office of Environmental Health Hazard Assessment, by of trash,waste, January 1, 2022,to provide to the Legislature an update on the chemicals,and assessment. harmful organic material that enter the sewer system. AB 992 Mullin[D] Open meetings: local agencies: social media Would provide that the Two Year Bill Watch Legislative and ACCOC-NYC Ralph M. Brown Act does not apply to the posting,commenting, liking, Regulatory LOCC-Watch interaction with, or participation in, internet-based social media platforms Policies: Special CASA-Approve that are ephemeral, live, or static, by a majority of the members of a Districts -Oppose ACWA-NYC legislative body, provided that a majority of the members do not discuss further state CSDA-Support among themselves business of a specific nature that is within the subject regulations that matter jurisdiction of the legislative body of the local agency. adversely impact special district financing, operations, and administration. OCSD State Bills of Interest r • . ' AB 1080 Gonzalez [D] California Circular Economy and Plastic Pollution Reduction Act Currently on the Assembly Watch State Priorities: ACCOC-NYC Would establish the California Circular Economy and Plastic Pollution Floor 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 Resources restrict the use of ACWA-NYC Control Board and the Ocean Protection Council,to adopt,on or before microplastics in any CSDA-NYC January 1, 2023, regulations to achieve, by 2030, a 75% reduction by product that is manufacturers and retailers of the waste generated from single-use disposed of packaging and products offered for sale or sold in the state through through the sewer source reduction, recycling, or composting. system.E AS 1180 Friedman [D] Water: recycled water The California Safe Drinking Water Act requires Currently on the Assembly Watch Legislative and ACCOC-NYC the State Water Resources Control Board to administer provisions Floor Regulatory LOCC-Watch relating to the regulation of drinking water to protect public health. Current Policies: Recycled CASA-Support law requires, on or before January 1, 2020, the state board to adopt Water-support ACWA-NYC standards for backflow protection and cross-connection control through measures that CSDA-Support the adoption of a policy handbook,as specified.This bill would require promote and that handbook to include provisions for the use of a swivel or changeover provide for the use device to supply potable water to a dual-plumbed system during an of reclaimed water. interruption in recycled water service. OCSD State Bills of Interest 7adversely AB 1184 Gloria [D] Public records: writing transmitted by electronic mail: retention Currently on the Assembly Legislative and ACCOC-NYC Would, unless a longer retention period is required by statute or Floor Regulatory LOCC-Oppose regulation, require a public agency for purposes of the California Public Policies: Special CASA-Watch Records Act to retain and preserve for at least 2 years every writing Districts-Oppose ACWA-NYC containing information relating to the conduct of the public's business further state CSDA-Oppose prepared,owned,or used by any public agency that is transmitted by regulations that electronic mail. impact special district financing, operations, and administration. AB 1588 Gloria [D] Drinking water and wastewater operator certification programs Currently on the Assembly Watch Legislative and ACCOC-NYC Current law requires a person who operates a nonexempt wastewater Floor Regulatory LOCC-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 operator, further state CSDA-Support distribution system operator, or wastewater operator,would require regulations that operators of complex industrial facilities, including members of the military adversely impact and military service veterans, to receive appropriate equivalent special district experience credit and education credit for work and tasks performed that financing, are directly related to the operation of water or wastewater facilities, as operations, and specified. administration. 011 State Bills of Interest r • . ' AB 1672 Bloom [D] Solid waste: flushable products The California Integrated Waste Held in Committee.Two Year Support Legislative and ACCOC-NYC Management Act of 1989, administered by the Department of Resources Bill Regulatory LOCC-Watch Recycling and Recovery, generally regulates the disposal, management, Policies: Source CASA-Sponsor and recycling of solid waste. This bill would, among other things,on or Control -Support ACWA-Support after January 1,2021, prohibit a covered entity, as defined,from labeling legislation that CSDA-Support a covered product as safe to flush, safe for sewer systems,or safe for regulates the septic systems, unless the product is a flushable wipe that meets certain disposal of performance standards. The bill would require nonflushable products to flushable wipes. be labeled clearly and conspicuously to communicate that they should not be flushed,as specified. ACA 1 Aguiar-Curry[D] Local government financing:affordable housing and public Currently on the Assembly Watch Guiding ACCOC-NYC infrastructure:voter approval. The California Constitution prohibits the Floor Principles: Seek LOCC-Support ad valorem tax rate on real property from exceeding 1%of the full cash funds for OCSD CASA-Support value of the property, subject to certain exceptions.This measure would projects through ACWA-NYC create an additional exception to the 1% limit that would authorize a city, grants, CSDA-Support county,city and county, or special district to levy an ad valorem tax to appropriations, or 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, if 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. SB 5 Beall [D] Local-State Sustainable Investment Incentive Program Would Passed the Senate Watch State Priorities: ACCOC-NYC establish in state government the Affordable Housing and Community Appropriations Committee and Continue to monitor LOCC-Support Development Investment Program,which would be administered by the is currently on the Senate Floor the state budget CASA-Watch Affordable Housing and Community Development Investment Committee. process and ACWA-NYC The bill would authorize a city, county,city and county,joint powers actively protect the CSDA-Watch agency,enhanced infrastructure financing district,affordable housing allocation of local authority, community revitalization and investment authority, transit village property taxes to development district,or a combination of those entities,to apply to the special districts. Affordable Housing and Community Development Investment Committee to participate in the program and would authorize the committee to approve or deny plans for projects meeting specific criteria. OCSD State Bills of Interest SB 13 Weickowski [D] Accessory dwelling units Would authorize the creation of accessory Passed the Senate Watch Legislative and ACCOC-NYC dwelling units in areas zoned to allow single-family or multifamily dwelling Appropriations Committee and Regulatory LOCC-Oppose use.The bill would also revise the requirements for an accessory dwelling is currently on the Senate Floor Policies: Special unless amended unit by providing that the accessory dwelling unit may be attached to, or Districts-Oppose CASA-Work wl located within, an attached garage, storage area, or other structure, and further state author that it does not exceed a specified amount of total floor area. 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 Waste Currently in the Senate Rules Watch Legislative and ACCOC-NYC Management Act of 1989,administered by the Department of Resources Committee Regulatory LOCC-Watch Recycling and Recovery, generally regulates the disposal, management, Policies: CASA-NYC and recycling of solid waste.This bill would state the intent of the Blosolids and ACWA-NYC Legislature to enact legislation that would address the collapse of foreign Biogas-Limit CSDA-Watch recycling markets by reducing solid waste generation, encouraging redundant reporting transition to compostable or recyclable materials, and fostering domestic requirements on recycling markets. organics, recyclable material, and solid waste as mandated by AS 901. SB 134 Hertzberg [D] Water conservation: water loss performance standards: Passed the Senate Floor and Watch Legislative and ACCOC-NYC enforcement.Current law requires the State Water Resources Control is currently in the Assembly Regulatory LOCC-Watch Board, no earlier than January 1, 2019, and no later than July 1,2020,to Policies:Water CASA-NYC adopt rules requiring urban retail water suppliers to meet performance Supply- Support ACWA-NYC standards for the volume of water losses. This bill would prohibit the legislation and CSDA-Support board from issuing an information order,written notice, or conservation regulation that order to an urban retail water supplier that does not meet its urban water necessitate the use objective if the board determines the urban retail water supplier is not responsible use of meeting its urban water use objective solely because the volume of water water in residential, loss exceeds the urban retail water supplier's standard for water loss and commercial,and the board is taking enforcement action against the urban retail water industrial areas supplier for not meeting the performance standards for the volume of water losses. OCSD State Bills of Interest SB 200 Safe and Affordable Drinking Water Fund. Would establish the Safe Passed the Senate Watch State Tactics: ACCOC-NYC and Affordable Drinking Water Fund in the State Treasury to help water Appropriations Committee and Support tax reform LOCC-Watch systems provide an adequate and affordable supply of safe drinking water is currently on the Senate Floor that CASA-NYC in both the near and the long term.The bill would authorize the board to protects public ACWA-NYC provide for the deposit into the fund of federal contributions, voluntary agencies CSDA-Watch contributions,gifts, grants, and bequests and would provide that moneys in the fund are available, upon appropriation by the Legislature, to the board to fund grants, loans, contracts, or services to assist eligible recipients. SB 332 Hertzberg [D] Wastewater treatment: recycled water. Would declare, except in Two Year Bill Watch State Legislation: ACCOC-NYC compliance with the bill's provisions,that the discharge of treated Work with LOCC-Oppose wastewater from ocean outfalls is a waste and unreasonable use of legislators who CASA-Oppose water.The bill would require each wastewater treatment facility that introduced ACWA-NYC discharges through an ocean ouffall and affiliated water suppliers to legislation such as CSDA-Oppose reduce the facility's annual flow as compared to the average annual SB 163(Hertzberg, wastewater discharge baseline volume, as prescribed, by at least 50%on 2015) in order to or before January 1, 2030, and by at least 95% on or before January 1, ensure that no 2040. The bill would subject the owner or operator of a wastewater unrealistic treatment facility, as well as the affiliated water suppliers,to a civil penalty regulations are of$2,000 per acre-foot of water above the required reduction in overall placed on volume discharge for the failure to meet these deadlines. wastewater treatment facilities, including OCSD SB 457 Hueso[D] Biomethane: gas corporations Under existing law, the Public Utilities Passed the Senate Watch Legislative and ACCOC-NYC Commission has regulatory authority over public utilities, including gas Appropriations Committee and Regulatory LOCC-Watch corporations. Existing law authorizes the commission to fix the rates and is currently on the Senate Floor Polciles: CASA-Refer to charges for every public utility and requires that those rates and charges Biosolids and Committee be just and reasonable. Existing law requires the commission to adopt Biogas-Support ACWA-NYC policies and programs that promote the in-state production and streamlined CSDA-NYC distribution of biomethane, as defined, and that facilitate the development legislation, of a variety of sources of in-state biomethane.This bill would require the regulations and Public Utilites Commission to extend the program until December 31, policies that 2026. This bill contains other related provisions and other existing laws. encourage the procurement of biogas, biosolids, and compost. OCSD State Bills of Interest 7funding SB 667 Hueso [D] Greenhouse gases: recycling infrastructure and facilities. Would Passed the Senate Legislative and ACCOC-NYC require the Department of Resources Recycling and Recovery to develop, Appropriations Committee andRegulatory LOCC-Support on or before January 1, 2021, and would authorize the department to is currently on the Senate FloorPolciles: CASA-Support amend,a 5-year investment strategy to drive innovation and support Biosolids and ACWA-NYC technological development and infrastructure, in order to meet specified Biogas-Support CSDA-NYC organic waste reduction and recycling targets, as provided.The bill would the promotion and require, on or before June 1, 2021, the department, in coordination with of local the Treasurer,to develop financial incentive mechanisms, including, but pilot programs, not limited to, loans and incentive payments,to fund organic waste studies,and diversion and recycling infrastructure. research for the beneficial use of biosolids. SB 732 Allen [D] Transactions and use tax.Current law establishes the South Coast Air Held in Committee.Two Year Watch Legislative and ACCOC-NYC Quality Management District vested with the authority to regulate air Bill Regulatory LOCC-Watch emissions from stationary sources located in the South Coast Air Basin Polciles:Air CASA-NYC and establishes a district board to govern the district. This bill would Quality-Support ACWA-NYC authorize the south coast district board to impose a transactions and use air quality CSDA-No position tax within the boundaries of the south coast district,as specified,with the legislations, moneys generated from the transactions and use tax to be used to regulations, rules, supplement existing revenues being used for south coast district and policies that purposes, as specified. emphasize the use of advanced 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 Yet 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/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for g g y Financing YIN STATE $1 billion from the Cap and Trade program (Greenhouse The Cap and Trade Expenditure Plan Gas Reduction Fund)was proposed to be appropriated in will need to go through the legislative Cap and Trade Funding the Governor's January Budget. A Cap and Trade $25 million - Waste Diversion Projects. Specifics 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 IRWM Grant Program, administered by TPA and OCSD are monitoring the DW R, provides funding for projects that help meet the long grant program development from the term water needs of the state, including: Santa Ana Watershed Project Integrated Regional Water Management Authority (SAWPA). The solicitation 0 NA. Will return (IRWM) Grant Program Assisting water infrastructure systems adapt to climate NA NA No NA for 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 region's water resources and warranted due to a lack of eligible and setting regional priorities for water infrastructure competitive projects. FEDERAL The Title XVI 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 16 will pay up to The Water Infrastructure Improvements available for those projects authorized under Final Expansion of GWRS Headworks Segregation project that Act (WIIN) the WIIN Act and $34 million for the Headworks (P2-122) will help to bring more water to the WIIN Act to request cost-shared funding for planning, $550,000 Yes 25 percent of the 7/27/2018 Water/ Infrastructure No design and/or construction of those Projects. Water congressionally authorized Title XVI projects. GWRS. available money reclamation and reuse projects provide improved efficiency, flexibility during water shortages and diversifies the water supply. The Title XVI Water Reclamation and Reuse Projects funding opportunity allows for sponsors of water reclamation and reuse projects that are congressionally We are evaluating if it is beneficial to authorized or are eligible under section 4009(c) of the Reclamation is making up to $20 million Title 16 will pay up to The Water Infrastructure Improvements WIIN Act to request cost-shared funding for planning, available for those projects authorized under TBD TBD Final Expansion of GWRS apply for the third round of the WIIN 25 percent of the 6/28/2019 Water/ Infrastructure No Act (WIIN) design and/or construction of those Projects. Water the WIIN Act. Headworks (P2-122) grant for the Headworks Segregation available money reclamation and reuse projects provide improved Project. efficiency, flexibility during water shortages and diversifies the water supply. USEPA is authorized to provide grants assistance of public TBD. We will monitor for possible Funding must be appropriated as part of Stormwater and CSO Grant Program agencies to control stormwater flows and CSO's Funding cost-share is not identified in the law TBD funding opportunities/A TBD current FY 2019 budget impasse TBD TBD Water/ Infrastructure TBD Updated 5/22/2019 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/Pro ram Reason Match Deadline Category Rcvd Grant/ Applying for g g y Financing YIN A minimum of$20 million to as much as $100 Project Funding Opportunity: million based upon prior years' budgets. USBR Energy production to reduce costs could receive as much as $130 million in t recycled water through innovative technologies like The DOE's Office of Energy Efficiency is likely to continue support of the WaterSmart (due to increased We will review the possible funding The Department of Energy (DOE), TBD We will monitor for possible Aquacritox, Innovative water USBR and USEPA bl funded by Congress to support such efforts as funding under W I duringthe next several TBD . funding opportunities monitoring technology that can opportunity to determine if it is a fit for TBD Energy TBD bogas, biosolids and green energy. years. USBR issue will issue solicitations for the Sanitation District. innovative approaches to managing water and produce efficient real time water treatment through technology and monitoring and data analysis, processes. Biogas Management and Use Improvements. Updated 5/22/2019 6/10/2019 HSN ShNI) l/ ORANGE• Presented By: •UNTY EM\PoiF�• SANITATIONISTRICT Eric Sapirstein APA UPDATE ENS Resources, Inc. June Zo, zosg Key legislative activities INFRASTRUCTURE FUNDING . POLICYMAKING • SRF REAUTHORIZATION $q Billion • Water Recycling Record S63 Million IN • Piecemeal Approach to Infrastructure Policy LEGISLATIONPERMITTERIVIS • New Cosponsors • Committee Consideration • . UPDATE • Rouda Legislation—H.R. 2570 • Delegation Letter to USEPA • Stakeholder Effort to Address Science and Standard Setting 2 1 6/10/2019 Questions *IF S� 3 2 TO) WNSEND PUBLIC AFFAIRS ... TVA L.. z' \1Yry/.TOBNBFNDFACOM , SAC"All•WASHIl X NORTHERN CAUFORNIA-CENTML CAUFORNIA-SOUTHERN CALIFORNIA Agenda Legislative Schedule and Deadlines FY 2019-2020 Budget Water Tax Update 2019 Legislation Slide 6/10/2019 and Deadlines Legislative Schedule Legislative • and Deadlines May 17 was the last day for fiscal committees to report bills to the Floor Senate and Assembly Appropriations Committees held Suspense File hearings on May 16 — Considered over 1,000 bills in just over two hours — Approximately 400 of these bills failed to pass and are now two-year bills May 31 was the last day for bills to pass out of their house of origin 4 2 6/10/2019 FY 1 ' 1 1 Budget s FY 1 • 1 1 Budget The Governor, Senate, and Assembly all have introduced their own Budget proposals The Senate and Assembly have convened their Budget Conference Committee — Senator Moorlach (R-Costa Mesa)is included Final Budget must be passed by June 15 Due to Proposition 54 (2016), all bills need to be in print 72 hours before they can be voted on 6 3 6/10/2019 Water Tax Update Update Governor Remains committed to establishing a sustainable source of funding for safe and affordable drinking water.2019 Budget proposal includes water tax framework to generate-$110 million/year Senate Rejected the Governor's water tax proposal,and instead adopted a position in their Budget for$150 million per year from the General Fund for safe and affordable drinking water programs,contingent on SB 200(Monning)passing Assembly Deferred action by referring the issue to legislative policy committees s 4 6/10/2019 UpdateWater Tax AB 217 (Garcia) AB 217 takes an all-encompassing approach to the issue: — Same agricultural fees as SB 623 $200 m 11'on/ ear(o.c years from the —General Fund - - $0.50 per month for urban water customers Passed the Asm. Appropriations Committee with 11 ayes and 7 noes — Assemblywoman Cottle Petrie-Norris& Assemblyman Tyler Diep voted no Currently on the Assembly Floor with an urgency clause 9 2019 Legislation 10 5 6/10/2019 1 • Legislation M A31WK, TMexuwle re4JreW WI.mammazq m�dmmwMer SupPyl PMerMbN.SanM.EmlrnmeM.l Ia1a�m mmr,a,m mm,m.rem mI amlm.amm. D 0�m ry1,a0t3. II W xzwreeaene Ce WMs 6m5 a,maa) am 41 cry,eomt,pma,matt and mappm I MIM elv Apm,amam I,.aI,.M.,..a.+ mat m—mama, camm,m. Iaee Rlm, af,mmmm Ammma.m.rmm.l. a.rdR I.aaml WmW maNm g Incex nu.h. Samar H a I tat Amambly am-Mellpm -a"may mmrm�.amndaI Co .I., Bao pdomnpl Fnm rvnc Furs is wmn me..aamt., e u a.sma,yaay.xamm m.—m. _msln+m.emr.ap.m„rm 683331xmmm, PeNaae einwumwereree,eneM koery that IM m.FPmma.a .,ma,aM d— amv ewnmlor aryn y 1,-D,.eye e.wn o.-Ima.lama, •fey Maal emeeuekp annremm.aI suppn aamyln ma m"lnmHm aM appal mMvatyvl Nwlapma,tam Mmmblywltl ,mr amm—ta, rmyaarq I, m,,w am aI ogee.wm mI Cemmmae 11 TOW NSEND TPA Thank You Cori Williams Eric O'Donnell Southem Calitomia Director SeniorAssociate CWilliams@townsendpa.com EODonnell@townsendpa.com w .townsendpa.com w .townsendpacom 12 6 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Meeli 6/ng Dale TO6/26/19r AGENDA REPORT ItemNumber Iem1umber s v Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Public Affairs Update for the month of May 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 Californians are not aware of the Orange County Sanitation District (Sanitation District) and the important work we do to keep the environment clean by using the wastewater byproducts to create energy, water recycling, and the use of biosolids. In general, the community and businesses do not realize that when they improperly dispose of waste into the sanitation system, it can negatively affect the work we do and the quality of water we supply 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, we have the ability to educate the community, local agencies, and businesses on the What2Flush program, energy production, water recycling, biosolids, and our source control program. This, in turn, results in a better quality of wastewater. TIMING CONCERNS N/A Page 1 d 3 RAMIFICATIONS OF NOT TAKING ACTION If we do not educate the community, local agencies, and area businesses about the Sanitation District, we lose an opportunity to educate thousands of people about our plants, source control, and the wastewater industry as a whole. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION May 2019 Activity # # of Guests OCSD/OCWDTours 5 97 OCSD Tours 20 385 Speaking Engagements 1 25 Current 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 Honor Walk Ceremony The Honor Walk program recognized two former employees on Wednesday, May 22 in a brief ceremony prior to the Steering Committee meeting. Ingrid Hellebrand and Chris Cervellone were recognized for their contributions to the Sanitation District during their time here. Both received a permanent engraved brick in front of the main entrance to the Administration Building at Plant No. 1. OC Water Summit The Municipal Water District of Orange County (MWDOC) and the Orange County Water District (OCWD) recently co-hosted the OC Water Summit. Business professionals, elected officials, water industry stakeholders, and community leaders throughout Southern California attended the event. Upcoming Activities -June 2019 • Director Chaffee Tour • Cal State Fullerton Speaking Engagement CEQA N/A Page 2 of 3 FINANCIAL CONSIDERATIONS N/A ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (Mmocsdxorn with the complete agenda package: • Outreach Report May 2019 • Media Clips May 2019 • PowerPoint Presentation from 6/10/2019 Committee Meeting Page 3 of 3 Outreach Report May 2019 5/1/19 Magnolia HS Tour 17 5/1/19 Operations Committee Tour 10 5/2/19 Beckman HS Tours 46 5/3/19 Cypress College Tour 30 5/6/19 Saddleback College Tour 26 5/7/19 Chavez HS Tour 40 5/8/19 Korean Delegation tour 3 5/8/19 Admin Commitee tour 30 5/9/19 ITO Tour 17 5/10/19 CSULB Tour 60 5/11/19 Santiago Canyon College Tour 15 5/15/19 American Univ. of Health Nursing tour 25 5/17/19 Plant 2 Tour 4 5/17/19 Chapman Univ.Tour 10 5/20/19 Santa Ana College Tour 25 5/20/19 Speaking Engagement-Los Alamitos City Council 30 5/21/19 Korean Delegation tour 22 5/23/19 Edison HS Tour 45 5/24/19 La Vista HS Tour 40 5/28/19 New Employee/Open Tour 25 5/29/19 Santa Ana College Tour 25 5/30/19 Vanguard Nursing Tour 19 5/31/19 UCI Tour 30 Monthly News Clippings Oqz$ 1% S A Ni_TqT/0y 2 A Q FCT�N �E ENv\�0� May 2019 OCSD Public Affairs Office Los Al TV May 15, 2019 OC Sanitation seeks public feedback for Boulevard Sewer Project By losalty Ma 15,2019 1 't The Orange County Sanitation District has requested a little feedback about a major construction project coming to our area next year, The project will include 1 improvements of two parallel sewer lines along a two-mile stretch of"the Boulevard" (Seal Beach and Los Al) from the I-405 freeway to Katella Avenue — which will definitely impact the good folks in Seal Beach, Rossmoor and Los Alamitos. Also being repaired is the sewer on Katella Avenue from Oak Street to Lexington Drive and about 65 manholes. So do your good deed of the day and go to the survey site by clicking below. 2 Daily Pilot April 24, 2019 DAILY' PILOT Around Town: Local districts receive award for highlighting groundwater system By DAILY PILOT STAFF APR 24, 2019 1 4:25 PM \R The Orange County Water District and Orange County Sanitation District recently received a Silver Mercury Award for their Groundwater Replenishment System bottled water campaign. (File Photo) 3 The Fountain Valley-based Orange County Water District and Orange County Sanitation District recently received a Silver Mercury Award for their Groundwater Replenishment System bottled water campaign, according to a news release. The international awards competition "honors the best in public relations, public affairs and corporate communications," the release stated. The districts'year-long campaign — which included a California bottled water tour, an anniversary celebration and setting a Guinness world record for the most wastewater recycled to drinking water in 24 hours — spotlighted the water purification system that launched in 2008. The effort "drew tens of thousands of people's attention to state and local water needs and provided knowledge about water reuse as a viable new source of drinking water," Orange County Water District President Vicente Sarmiento said in a statement. "Educating people that wastewater is a resource is critical to the success of water reuse projects," said Orange County Sanitation District board 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 1 million people." For more information about the replenishment system, visit ocwd.comZowrs. a Water Online April 29, 2019 Orange County Water and Sanitation Districts Receive International Mercury Award By Califomia Water News Daily on April 29, 2019 The Orange County Groundwater Replenishment System (GWRS) Bottled Water Campaign—a collaborative effort of the Orange County Water District(OCWD)and the Orange County Sanitation District (OCSD)—has earned global recognition and a silver award in the International Mercury Awards competition. The competition seeks to honor the best in in public relations, public affairs and corporate communications. The two agencies began work more than a decade ago to create the Groundwater Replenishment System, the world's largest advanced water purification project for drinking water. The system came online in 2008 and currently produces 100 million gallons of water per day. The GWRS is now the world's largest advanced water purification project for drinking water. Since it became operational the GWRS has produced approximately 282 billion gallons of near-distilled quality water that has been added to the Orange County Groundwater Basin. Subsequently water has been 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 award-winning GWRS Bottled Water Campaign communications program included the project's 10" anniversary celebration as thanks for local community support and the acquiring of a Guinness World Records- title for the most wastewater recycled to drinking water in 24 hours. The many activities of the GWRS Bottled Water Campaign communications program began with a Hollywood media kick-off event and activities spanned a full year. "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 OCWD President Vicente Sarmienlo. "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." The annual International Mercury Award is based on the values of creativity, effectiveness, performance, and success. The OCWD and OCSD earned their GWRS Bottled Water Campaign Silver Award in the category of Public Affairs/Cause Issue. The Mercury Award is so named for the Roman god who was the messenger of the other gods and symbolizes the spirit of the message communicated. "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." 5 For more information about the International Mercury Awards go to: httns://www.mercommawards.com/mercurv.htm. For more information about the Orange County Groundwater Replenishment System go to: httos://www.ocwd.com/awm/. 6 Teen Vogue April 30, 2019 reem ci i,: Environmental Science Is Crucial to Combat Climate Change — So Why Isn't It a Mandatory Class? In this op-ed, Teen Vogue's Marilyn La Jeunesse argues that environmental science should be a mandatory course taught in public schools around the country. By Marilyn La Jeunesse April 30 Getty Images I was a senior in high school when I first learned that dental floss shouldn't be be flushed down the toilet.Nor should condoms or tampons.This mind-blowing revelation happened on an Advanced Placement Environmental Science(APES) class trip to the Orange Counri 7 Sanitation District,where my peers and I were surrounded by the noise of rushing recycled water and the light scent of excrement wafting through the air. As an 18-year-old, I wasn't thrilled that my one and only field trip away from school was to a glorified sewer,but in hindsight the excursion served as a wake-up call as to how my actions affect the environment around me. Admittedly, I took APES as a way to boost my GPA and make me look more scholarly for college applications. It turns out,the environmental science class was perhaps the most important course I took in my entire academic career. One lesson in particular affected the way I saw my carbon imprint, and was in part based on the amount of trash I disposed of each day.At the beginning of the year, my teacher Mrs. Dang(as she preferred to be called although her full name is Mrs. Dolores Dang-Wright), sorted us into groups and had us make our own classroom landfills.The goal was to see which items we used in everyday life would break down over the course of several months. As I remember it, my team used neon pink and green spoons from a yogurt spot, diced into tiny pieces, a few straws from a fast food restaurant, some shredded lined paper from a notebook, and a few swirls of citrus peels.At the end of the school year,basically all of our trash, including some larger pieces of the citrus peel,was still fully intact and the landfill run- off was a murky brown at the bottom of the container. It was a lesson that would stick with me to this day: Every piece of trash that disappears once you throw it in a garbage bag for disposal never actually vanishes. Instead, it ends up in one of the 2_900 landfills across the nation,where some of the waste,like plastics,will most likely sit for up to a thousand years emitting harmful greenhouse gases and increasing the rate of climate chanee. Since 1960,the amount of municipal solid waste produced has nearly tripled in the United States alone,with the amount of waste generated rising from 88.1 million tons to 262.4 million tons in 2015. Of the amount collected in 2015, only 34.7%was recycled or composted and 12.8%was combusted with energy recovery,which,per the PEA refers to the"conversion of non-recyclable waste materials into usable heat, electricity, or fuel through a variety of processes, including combustion, gasification, pyrolization, anaerobic digestion and landfill gas recovery." (Recycling itself is an imperfect system that, according to many activists,is ultimately a business at its core.And, as a business, economics Dlays a major part in whether or not an item is actually recycled— not the environment, as plastics pollution expert Stiv Wilson recently told Teen Vogue). For the recyclable goods that end up in a landfill,the effect of this waste can generate the deadly pollutant methane,which with buildup can create a highly volatile,explosion risk and is considered to be one of the worst greenhouse gases.Waste in landfills can also contaminate water if the landfills aren't designed with leachate in mind. 8 After months of lectures,exercises, and practice AP tests, it dawned on me the importance of the information I was meant to absorb. Unlike other classes (cough,pre-calculus, cough),the lessons I was learning in APES could be applied to my everyday life choices,like bringing a tote bag with me to the grocery store or shopping at a vintage shop as opposed to a fast fashion brand. It's a wonder as to why public schools across the nation aren't making more of an effort to mandate environmental science as a required course, as the impact of climate change persists. Sea levels continue to rise, and extreme weather events like hurricanes and droughts will continue to threaten the safety of people around the world and multiply in frequency over time. There is no national school curriculum in the U.S., although there are federal laws that mandate state standards in order to qualify for federal assistance.Therefore, it is up to the states and school districts to determine what courses are required in their schools. Seeing as states and local schools have the power to determine their own mandatory curriculum, adding environmental science to the list of required courses would be a relatively simple,but vital addition to every child's education. Unfortunately, as states strip human-caused climate change from school guidelines and conservative groups protest the inclusion of environmental education, making environmental science a recommended course is more difficult than it seems. But if biology and chemistry are graduation requirements, so too should the class that teaches students the importance of the 5Rs,the truth about global carbon emissions, and how your everyday actions —like using lastic straw—can affect the world around you. "Whether you live on a corn farm in Missouri or in an apartment in New York City,you are inextricably linked to the natural world,"University of Michigan Earth and Environment Science PhD candidate Sophia Macarewich tells Teen Vogue. "The choices we make every day —the food we eat,how we travel, and the clothes we buy— all have a lasting impact on the environment and a fundamental understanding of[environmental science] is essential to understanding these impacts." It seems as though, in a given year, about or less than t%of high school students take the course that could quite literally change the future of our planet. Imagine if we were able to increase that number to l00%by making environmental science a required course.That would mean millions of kids a year would learn that the milk cartons and food scraps they toss out at lunch have a significant impact on their environment and, in turn,their future. Rapidly changing our waste habits can significantly reduce the speed of climate change. While there are currently no federal numbers on how many schools offer environmental science as a mandatory or voluntary course, of the nearly la million public school students and about 1.4 million private school students enrolled in grades 9-12 during the 2015-16 school year,the National Science Board reports that just over 149,000 students took the APES test in 2016. When Macarewich was a teen,her high school offered both APES and Marine Ecology courses for students to study.As a student,she took both courses and it inspired her to pursue a 9 career in environmental science. She plans on becoming a professor to continue to educate others on environmentalism. "[This course is] important for students to understand the environment and how everything in the environment, including people, are connected,"my former teacher Mrs. Dang,who has been teaching APES since 20o6,tells Teen Vogue. 10 ASCE May 14, 2019 �6=vSCE American Society of Civil Engineers REPORT CARD FOR INFRASTRUCTURE CALIFORNIA'S 2019 About the Grade Across the country,budget issues and deferred maintenance are taking their toll on critical infrastructure systems constructed by the generations before us and which now must be maintained and modernized. The analysis in this report card and associated grades are intended to increase understanding by the public and the state and local legislators of the importance and value of long-term consistent infrastructure investments, the role of leadership and planning, and the need to prepare for the future. The grades reflect the condition of the infrastructure, and not the diligent local agency personnel who are doing their best to manage, repair, renew, and replace aging systems, with the limited available resources. This Report Card is intended to reflect current infrastructure conditions and be a tool to help agencies request and receive the resources they need. The 2019 Report Card for California's Infrastructure was completed by a committee of over 100 professionals and experts from California who dedicated their valuable time to collect and evaluate existing data, assess the infrastructure, document their findings, and develop recommendations. The committee worked with staff from ASCE National and ASCE's Committee on America's Infrastructure to provide. What Can we Do the Raise the Grades? To raise California's infrastructure grade, ASCE developed the following four recommendations: 1 PROMOTE EFFECTIVE AND COLLABORATIVE LEADERSHIP ASCE encourages all levels of government, business, labor, and nonprofits to collaborate to address challenges associated with California's aging infrastructure. Effective leadership within agencies is critical, and those individuals should be empowered with applicable decision-making authority. Streamlining the project permitting process across infrastructure is also necessary,with safeguards to protect the national environment. 2 DEVELOP SMART PLANS TO BETTER IDENTIFY FUNDING NEEDS Asset management plans enable state and local agencies to make informed decisions on where—and when to spend limited public funds. Policies should be enacted that require high quality data gathering and regularly scheduled maintenance. Further, life cycle cost analysis and risk analysis, which are valuable strategies to extending the lifespan of an asset and saving the taxpayer money in the long run, should be 11 employed for projects costing greater than$5 million. 3 INCREASE STATE AND LOCAL FUNDING Each category evaluated in this report indicates currently available funding to state and local agencies is not adequate to maintain sustainable and safe California infrastructure systems. Long- term funding strategies should be established,based on new and sustained revenue sources, including local and state revenue. Incentives may be appropriate,and adequate funding for innovative new materials, technologies, and processes is imperative. 4INFORM THE PUBLIC AND RAISE AWARENESS There is a need for additional consumer education on the current funding needs and the negative impacts of delaying action to fund infrastructure improvements statewide. The education needs to also extend to the local and state legislators, locally elected boards and commissions, as well as to the media. Why is Infrastructure Important to Us? Californians use infrastructure each day. Our roads, bridges, and transit networks allow us access to our iconic coastlines, lakes, and vineyards.Water systems deliver clean drinking water to our homes, communities, and businesses. School buildings provide a safe place for our children to learn. Wastewater collection and treatment systems protect our lakes,rivers, and beaches from raw sewage, E. coli and other toxins. Our infrastructure systems play a critical role in continued economic prosperity and the preservation of our quality of life. Unfortunately,our state's infrastructure renewal and replacement programs have been significantly underfunded for a long time. While the state Legislature, municipalities, and California voters have made strides in recent years to raise additional revenue for our infrastructure,we have a lot of catch-up to do, and large funding gaps remain. Additionally,we're facing significant new challenges. In May 2018, California's economy surpassed that of the United Kingdom to become the world's fifth largest. Over the next 20 years, California's population is expected to grow by another 25%by over 10 million people. This economic activity and new population requires additional supporting infrastructure. Meanwhile, the climate is changing. California is already grappling with precipitation whiplash—extreme periods of drought followed by extreme periods of rainfall—and sea level rise and increasingly severe storms are also expected. As the stewards of our infrastructure,California's civil engineers have a moral duty to advocate for sustainable infrastructure capable of supporting our state's robust economy,while maintaining public safety and our quality of our life. Join us in our mission to increase infrastructure investment to repair our existing networks and plan for California's future. CALIFORNIA'S INFRASTRUCTURE REPORT CARD The 2019 Report Card for California's Infrastructure gave the state an overall GPA of C-. The good news is there me solutions to these challenges, and we can raise California's infrastructure grades. AVIATION C+ California has 26 commercial service airports and 217 general aviation airports. Based on the Federal Aviation Administration passenger boarding data, 11 airports in California rank nationally within the top 100 Commercial Service Airports,with Los Angeles International Airport ranking second nationally and San Francisco International Airport ranking seventh. The condition of the runways at California airports is healthy,but the airport capacity remains a challenge. On average, 17% of flights were delayed at the 11 busiest airports in California in 2017,just under the national average of 18%the same year. Looking ahead, sufficient investment in commercial and general aviation airports is needed to keep pace with a growing economy and population. According to the 10-year California Capital Improvement Plan published in 2017,there are 1,735 aviation projects that need a total of$2.77 billion in funding over the next 10 years. 12 BRIDGES C- Progress has been made over the past decade to increase the percentage of California bridges in good condition and to reduce the number that are classified as structurally deficient(SD). Today,California has fewer SD bridges than the national average, and this number is expected to continue declining thanks to the passage of the Road and Repair Accountability Act(SB 1),which increased funding for badly needed repairs to the state's transportation system. However,much more remains to be done, especially as it relates to seismic retrofitting to improve the safety of bridges in the event of an earthquake. Approximately 50% of bridges in the state have exceeded their design life and the backlog of recommended maintenance,repair and replacement work continues to grow. California is home to the second largest percentage of"functionally obsolete"(FO)bridges, or bridges with outdated designs that frequently contribute to congestion chokepoints. Over 7% of California's bridges are structurally deficient and California has ranks among the top states for bridges in"poor"condition by bridge deck area. In other words, some of our largest bridges, along corridors such as 1-5 in San Diego,Highway 101 in Los Angeles, and I-80 in Sacramento need major repair and rehabilitation. DAMS C- Dams are a critical element of California's infrastructure. The public depends on them for 70% of state's water supply, 15%of the power, as well as for flood control, recreation, fisheries and wildlife habitat. Changes in climate and population growth require new operational strategies. Over half of California's 1,476 state,federal and locally owned dams are considered high hazard dams,meaning their failure would result in probable loss of human life and economic damage. Approximately 70% of the dams are greater than 50 years old. Aging dam infrastructure challenges most be met with increased resources to ensure their reliability and safety. Fortunately, funding for dam inspection has increased in recent years. In 2015,the California Division of Safety of Dams (DSOD)budget was approximately$13 million,up from$11 million in 2010. This increase kept funding on par with inflation. However, while DSOD's budget is significantly higher per regulated dam than the national average, it does not fully fund the necessary programs to ensure adequate dam safety. DRINKING WATER C Providing effective water supply and treatment in California has always been challenging due to great variations in water availability and demand from year to year across the state. Historically,California has adapted to this challenge by building a vast network of water storage and conveyance facilities. Today, much of this network is aging. In San Francisco,approximately 150 of the 1,200 miles of water mains are over 100 years old. The Los Angeles Department of Water and Power reports that approximately 28% of the city's 6,780 mainline pipes were installed before 1938. And while California's urban centers generally have state-of-the-art water treatment facilities,many of the state's rural areas we dependent on wells,many of which are inadequate in dry years. To fund and finance necessary drinking water infrastructure projects,water rates have risen,and voters passed both Proposition 1 and Proposition 68 to finance water quality and supply projects. While the additional revenue is helpful, it does not cover all needs throughout the state. ENERGY D- California receives and generates energy through a variety of sources,primarily from natural gas, nuclear, and utility-scale solar and wind. Although under duress, California's energy systems have generally met the needs of consumers. However,the threat of natural and anthropogenic stresses, including foes, seismic events, storms, and gas storage mishaps, as well as the elevated cost of service, threaten energy system sustainability. Aging equipment, inferior design, and poor right-of-way vegetation management have caused electrical and oil/gas infrastructure incidents and, in some cases, 13 resulted in deadly wildfires. In another trend,the increased renewable energy contribution has had dramatic impacts on the overall capacity of the California electric grid. California now has a legislatively-mandated target of 100% clean energy by 2045,but the true cost of building infrastructure to support this goal is unknown. Meanwhile,natural gas continues to help meet peak electric and heating demands, but the state depends on in-state production and imports that requires extensive processing resulting in high pricing to the consumer. HAZARDOUS WASTE C- Califomia's hazardous waste infrastructure principally consists of the management of generated hazardous wastes and the cleanup of contaminated sites. In 2017, California entities generated 3.8 million tons of hazardous waste and cleaned up 1,800 contaminated sites. It is estimated that 90,000 properties in California are contaminated with some level of toxic substances. The cost of operating California's existing hazardous waste infrastructure is around $3.4 billion per year,with most of this funding coming from the private sector. The results of this spending are improved human health and a cleaner environment. Economic benefits result from reduced health-care costs for exposure-related illness and increased land values—putting surplus land towards productive reuses such as housing and conservation and returning hazardous recyclables back into industrial production. The infrastructure is challenged by the fluctuating funding levels,new contaminants and new knowledge of health effects,a vast increase in use of consumer electronics, and rising compliance costs for private businesses and public entities. California does not meet its own hazardous waste disposal needs. Over half of all hazardous waste generated is exported to surrounding states for landfill disposal. INLAND WATERWAYS D The U.S. Army Corp of Engineers operates and maintains two inland waterways in California: the Sacramento Deep Water Ship Canal (Sacramento DWSC), and the Stockton Deep Water Ship Channel (Stockton DWSC). Both waterways face similar issues of being neither wide enough nor deep enough for larger ships. Construction costs for projects to deepen the two waterways me estimated at $17 million for the Sacramento DWSC and between $175 and$225 million for the Stockton DWSC. Both projects have been on hold since 1990,while no funding is programmed for future fiscal years. Meanwhile, the current Sacramento DWSC width is unsafe,particularly for marine vessels navigating the canal in inclement weather. There are significant opportunifies for improvement for both waterways when considering seismic readiness, ecological hazards, and lack of necessary inspections. LEVEES D Over the last six years,unprecedented funding was invested in California's aging levee system, and many miles of levee were improved during that time. Yet the fiscal impacts of climate change, increased regulatory pressure,more rigorous maintenance, updated safety standards and higher cost estimates render this investment a mere down payment on the much larger bill. A capital investment of $45 billion is needed to rehabilitate and improve California's levees, and unfortunately,the path to this funding is unclear. Local agencies currently spend$1.3 billion annually on all flood management activities. However, additional annual funding of at least$100 million is necessary to repair infrequent but inevitable flood damage. PORTS C+ California ports play a vital role in maintaining waterbome trade essential to the nation's economy. In 2017, California's ports handled 40%of all containerized cargo entering the U.S. and 30%of the nation's exports. Since 2012,maritime traffic volumes have increased by over 16%, while other factors have also begun impacting port operations: the need to protect against potentially catastrophic natural 14 disasters such as earthquakes and sea-level rise, increased demands for security and emergency management, tighter regulatory requirements including air quality regulations, and modernization to incorporate new technologies to maintain competitiveness. California ports are in satisfactory condition for the time being,but require significant improvements to maintain existing conditions and meet new demands. The funding gap is estimated at$ 10.7 billion over the next 10 years, and available revenue has been insufficient to fill the gap as needs continue to outpace available funds. PUBLIC PARKS D+ California is home to 28 national parks and monuments, two World Heritage Sites, 284 state parks, and 14,000 local parks managed by nearly 1,000 agencies. In total,47 million acres of outdoor recreational areas and local parks are enjoyed by residents of, and visitors to,the state. Unfortunately,park budgets have declined significantly as a result of the 2008 recession and infrastructure deficiencies have been on the rise. Deferred maintenance at state parks is estimated at $1.2 billion,while local parks report an estimated $1 billion in unmet needs. The National Parks Service estimates the maintenance backlog for its parks in California is $1.8 billion. Meanwhile,access to parks continues to be insufficient. Sixty two percent of Californians live in areas that do not meet the California Department of Parks and Recreation recommendation of three acres of park land per 1,000 residents. Fortunately, the tide is turning, as voters approved Proposition 68 in 2018,which will provide $4 billion in bonds for state and local parks and water projects. RAIL C California is home to an extensive network of freight and passenger rail. A major portion of California's passenger rail system operates on right-of-way owned by Class I freight railroads,which are also the major carrier of freight in the state. Passenger rail systems and smaller freight carriers (Class II and III),to a lesser degree, rely on public funding for operations and maintenance. Class I freight railroads are able to fund maintenance and capital investment from their revenues, and generally operate on infrastructure that is in good condition. Progress is being made on safety related Positive Train Control(PTC) systems and most of the state's railroads implemented the service by the December 31,2018 statutory deadline. However, some of the challenges that remain include lack of adequate funding for grade crossing safety programs, and commuter rail and state-supported intercity passenger rail that lack a dedicated revenue source for operations,maintenance,and capital investment programs. California, and the public agencies managing passenger rail systems,are working to remedy the issues regarding funding, interconnectivity, and capital investment,which have been outlined in the 2018 California State Rail Plan. ROADS D Driving on deficient roads costs Californians $61 billion annually due to congestion-related delays, traffic collisions, and increased vehicle operating costs caused by poor road conditions. The condition of California roads is among the worst in the nation,ranking 49th according to the latest US News & World Report Ranking. Meanwhile, Southern California and the Bay Area are the second and third most congested urban areas in the nation,respectively. Repair and improvement to these roads is vital to California's economic health and public safety. The Road and Repair Accountability Act(SB 1) passed in April 2017,provides $52 billion in additional funds for local and state roads over the next 10 years. However,a total of more than $130 billion over that same time is needed to bring the system back to a state of good repair. A good transportation system enables efficient movement of goods and people and is critical to California's economic well-being. 15 SCHOOLS C There are 1,026 school districts in California and over 10,000 public elementary and secondary schools serving more than 6,220,000 students statewide. In some municipalities, capacity is sufficient and overall population is declining,while in others,new facilities to accommodate growing enrollment rates are required. Today,most of California's K-12 school facilities are in fair to good condition thanks to upgrades to structures, roofing systems, fire alarms,ADA access, electrical,HVAC and technology. However,the outdoor environment of the K-12 school facilities, including parking lots, play areas and playfield areas, are only in fair condition. Looking ahead,there is a lack in adequate funding for future routine and major maintenance issues. SOLID WASTE C- Califomia has adequate infrastructure for the minimization, collection,processing,recycling, and disposing of solid waste to protect human health,public safety,and the environment with its 1,390 existing solid waste facilities and operations. However, the existing infrastructure is inadequate to meet existing and recent legislative and regulatory solid waste reduction and recycling goals. While well intentioned, these aspirational policies are being implemented without sufficient markets,planning, infrastructure development and funding, and consideration of recent restrictions by other countries on imported recyclables. Overall, the condition of the solid waste category has declined significantly in recent years, largely due to the insufficient infrastructure to meet new recycling goals and adequately manage the improper discharge of solid waste to the environment. California is considering policies to reduce both the generation and disposal of solid waste including greater manufacturer responsibility, waste reduction, improved recyclability, and increased waste fees. These approaches would likely be implemented through future legislation and regulations that would impose mandated restrictions on solid waste generation and handling, as well as penalties on stakeholders failing to comply. More importantly, California needs to refocus its attention on technologies and internal markets that can help meet its recycling goals/policies, including waste conversion technologies to safely and cost- effectively convert waste residuals (organics,paper,plastics) into low carbon fuels, energy, and chemicals. STORMWATER D+ Stormwater infrastructure in California includes storm drains,pipes, ditches,canals, and channels. It also includes green infrastructure like vegetated areas that provide habitat, flood protection, cleaner air and cleaner water. Much of the drainage infrastructure in California was constructed prior to the 1940s and needs repair or replacement. Further,the new and innovative drainage systems necessary to meet water quality standards and promote a sustainable environment are significantly underfunded. For example,over the next 20 years in Los Angeles County the cost of achieving water quality objectives is estimated at about $20 billion, and in San Diego County, it is estimated at about $5 billion. Clean water is fundamental to our way of life in California and significant investment is needed to insure sustainable clean water for future generations. TRANSIT C- California needs robust, flexible, and reliable transit systems to reduce peak congestion on our highways,provide options for citizens who do not drive,and improve air quality. Public transit in California provides nearly 1.5 billion trips annually on 139 transit systems throughout the state. The California Transportation Commission estimated in 2011 the state needed approximately$174 billion for expansion and state of good repair transit projects over the next 10 years,but at the time only 45% of funding had been identified, leaving a shortfall of$96 billion. Fortunately, recent legislative initiatives and ballot measures are attempting to close the funding gap, including an additional $750 16 million annually for transit agencies across the state provided through the Road and Repair Accountability Act of 2017 (SB 1).Adequate resources must be provided to our transit systems or we risk retreat on sustainability gains as well as the current state of good repair. WASTEWATER C+ California wastewater systems serve a population of 40 million in over 13 million homes and treat 4 billion gallons of sewage per day while protecting surface waters, the coastline and public health. There are approximately 900 publicly-owned collection and treatment systems,while approximately 10%of the population is served by onsite wastewater systems such as septic tanks. The average age of collection system pipes and manholes is approximately 40 years. Most, although not all, systems and treatment plants appear to have adequate capacity and are prepared to meet the population needs for the next 10 to 20 years. Modest progress has been made in recent years to prioritize and invest in wastewater infrastructure. For example, in 2014 Proposition 1 authorized over$7.5 billion in general obligation bonds to fund ecosystems and watershed protection and restoration projects. California also continues to advance in technologies aimed at treating and discharging wastewater at a higher water quality standard. However,the cost to maintain wastewater systems continues to rise with the age of the systems. We must maintain the condition of the infrastructure,meet discharge requirements,and continue elimination of sanitary sewer overflows. 17 CWEA May 16, 2019 V CWEA California Student Design Competition Winners Head to WEFTEC By Megan Barillo•May 16,2019•Views: 7 CWEA held ifs 2nd Annual Student Design Competition on May 4th at the Orange County Sanitation District.A panel of distinguished CWEA members served as judges and three teams from California universities gave their best pitch for engineering designs.The judges were assembled by WEF Past President Jim Clark from Black&Veatch.The Santa Ana River Basin Section handled local logistics. San Diego State University was selected as the team to represent California for their project titled: "Salton Sea: Bioremediation of CA's Largest Lake." The students and their coach receive an all-expenses paid trip to WEFTEC in Chicago representing California in the international competition on Sunday,September 22nd. Students from across the Federation will present their design projects in both the wastewater and environmental topic areas. For more information,visit the WEF Student Design Competition weboage. California needs lots of talented, new environmental engineers;the competition gives them first- hand experience in our field. Let's promote the profession and our young engineers by supporting Team California at the Student Design Competition. If you're at WEFTEC,the teams compete on Sunday,September 22nd inside McCormick Place Chicago. 18 Also,a special note of thanks to WEF Director tan Mackenzie for organizing the competition. If you know a great college team we should invite to next year's competition or wish to volunteer as a judge,please contact amackie(d)cwea.org. 4o�gt1 SAN,,, ci 2 •90 R, �I/MIM11111A11111� Gs , NTH A 19 Patch May 17, 2019 fttch OC Sanitation District Selects Director of Environmental Services The Orange County Sanitation District recently selected Ms. Lan Wiborg,to serve as the new Director of Environmental Services. By Ashley Ludwig, Patch Stiff May 17,2019 2:00 pm ET Ms. Lan Wiborg will take the reins as the new Director of Environmental Services for OC Sanitation District. (oc Sanitation District) FOUNTAIN VALLEY, CA The Orange County Sanitation District recently selected Ms. Lan Wiborg,to serve as the new Director of Environmental Services. Ms. Wiborg comes to OCSD with more than 20 years of water and wastewater utility experience. She served as the City of San Diego's Deputy Public Utilities Director of Long-Range Planning and Water Resources,where she oversaw water resource development and planning,watershed protection,water conservation, climate change adaptation, and grid-scale pumped hydropower energy storage programs. Wiborg is the inaugural recipient of the San Diego State University(SDSU) Graduate School of Public Health and Distinguished Alumni Award and is a member of Delta Omega,the Honorary Society of Public Health. She also held a faculty appointment at SDSU in the areas of water quality and environmental health from 2014-2016. 20 As the Director of Environmental Services, Ms.Wiborg will manage the Environmental Services Department with responsibility over environmental compliance,regulatory affairs, the environmental laboratory, ocean monitoring program,and source control operations. "Lan was selected from a talented pool of candidates. Her longstanding relationships within the regulatory community and within the water and wastewater industry will be extremely valuable when it comes to managing OCSD's environmental and regulatory programs,"stated Jim Herberg,OCSD General Manager. "She is an excellent choice and I look forward to working with her as part of OCSD's Executive Management Team." Wiborg holds a Bachelor's in Mathematical Psychology and Exercise Physiology,and a Master of Public Health in Environmental Health. In her spare time, Ms.Wiborg enjoys volunteering with watershed protection groups, crafting with natural materials, outdoor adventures and traveling. 21 Daily Pilot May 20, 2019 DAiLy ,JiPILOT Why Orange County and California's drinking water should not go to waste By GARRY BROWN MAY 20, 2019 1 9:20 AM Orange County Coastkeeper is advocating support of a clean water bill and reclaimed wastewater as an alternative to desalination and other costly options. (Kent Nishimura/Los Angeles Times) 22 California is in a drinking water crisis. Across the state, residents pay billions of dollars for clean drinking water— and we use this water only once. We drink the water, then it goes to coastal sewage treatment plants, which carry out various levels of sewage treatment, then gets dumped into the ocean through outfall pipes as partially treated sewage, harming the ecosystem in the area. Billions of gallons of treated wastewater is dumped into our California coast each day, and with it, billions of resident dollars are quite literally going to waste. Why aren't we utilizing available solutions to stop this sewage discharge and capitalize on our people's investment in clean drinking water? Orange County Coastkeeper is a co-sponsor of Senate Bill 332, introduced by Senate Majority Leader Robert Hertzberg (D-Van Nuys). This bill recognizes the reuse potential of wastewater by requiring all coastal sanitation districts to reduce ocean wastewater discharge by 50% by 203o and 95% by 2040, and to utilize this water for safe drinking. Is this achievable for California? Luckily, we have developed technology to treat and reuse almost any water. Recently, Gov. Newsom released an executive order to increase California's water security by developing local water supplies, urging our state to use every drop of water wisely and to take advantage of recycling water rather than discharging it into the ocean. Technology in our state is at a point where we can even take raw sewage and turn it into nearly distilled water. This treatment process is now a proven safe source of public drinking water in Orange County. By using an advanced water treatment system, we produce millions of gallons each day of almost-distilled water from sewage. And at three times the cost, California should not consider the much more energy- intensive process of desalinating ocean water. In most cases, desalination makes absolutely no sense (unless you have no other options for safe water). We should stop efforts toward desalination and take advantage of this pure water treatment technology across the California coast. Senate Bill 332 will help us get there. 23 Frequently, Orange County leads the way for other agencies across the state on water issues and water technology. Orange County Water District built the first-of- its kind advanced treatment facility, and Orange County Sanitation District has already significantly reduced its ocean discharge, and it voluntarily set a goal of "zero discharge"to the ocean. It's time that Orange County leads the charge once more. Coastkeeper commends both agencies for their leadership on the reuse of wastewater and urges support of this bill to ensure other sanitation districts in California follow the lead established in Orange County. With Senate Bill 332, we start to pull California out of its single-use water crisis and ensure our safe drinking water doesn't go to waste. Garry Brown is founding director of Orange County Coastkeeper. 24 Twitter Posts May 2019 GC Sewersil 28 day summary am mange ever powered penes oee+ se—, 24aaz3% 30.6K1hI5P" 2281,394% 17a26.1., 1,567tra hay 2919•n paps so la.. Top TM W earned z 218lpapers. 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May 2019 ocsewers - is•poi¢ soa rouw.rs cs rollo..mg :oc sa—bon vi:eiR pnvges wa:a.,n«.cal..mon m.<mM.aw.«xl.,e ro, appro�36 million paopla In<anml&rror[�Onrge Caurny. www.wKcen 29 6/10/2019 Public Affairs Update Presented by Jennifer Cabral rs supervisor ®11\�.1■CJ='!` Public AHalJune 10,2019 E M What We Did �A Tours 23 tours / 574 guests 1 speaking engagements 0 outreach events Social Media © � 0 Twitter: 24 tweets Participated in: =-=_____-_ - -- 273k impressions • Crlsis/Risk Cnmmnmrattonsstate0 Facebook: • Plant NoorksWhborhood tour 4.7kres • Public Works Week 4.7k reach • Honor Walk • Los Alamitos City Council Meeting Instagram: Southeast Area(Huntington Beach)Council Committee 16 posts Meeting • ocwatersummit 1.5k impressions 2 1 6/10/2019 What We Are Doing ialY L ■ Upcoming Activities 65t■ Dire An ctor emary DougCCoordination Director Doug Chaffee Tour ■ Cal Rate Fullerton Speaking Engagement • Attending Anaheim's OC Green ■ Expo on June 22nd from 9-1. • Anaheim District Meeting July 2719 a.m.-10 am mama.•-+edacs mom.:'.°y:......n..«,«... 3 NACWA Platinum Peak Performance Award Orange County Sanitation District's Reclamation Plant No.1 and Treatment Plant No.2 have earned a Platinum Peak Performance Award for peak 6 years of 100%compliance. APerformance r,o-w* A W A R D S a 2 STEERING COMMITTEE M%1110,Dete TOBd.of Dir. 06/26/19 06/26/19 AGENDA REPORT Item Item Number 2 IB Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER'S FY 2018-2019 WORK PLAN YEAR-END UPDATE GENERAL MANAGER'S RECOMMENDATION Receive and File the General Manager's FY 2018-2019 Work Plan Year-End Update. BACKGROUND Each year, the General Manager prepares a work plan of activities supporting Orange County Sanitation District's strategic goals and initiatives to be accomplished during the fiscal year. The General Manager's FY 2018-2019 work plan was reviewed with the Steering Committee in September 2018 and a mid-year update was provided in January 2019. Attached is the year-end update for the General Manager's FY 2018-2019 work plan. RELEVANT STANDARDS • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard • Plan for and execute succession, minimizing vacant position times • Cultivate a highly qualified, well-trained, and diverse workforce • Maintain and adhere to appropriate internal planning documents (Biosolids, Odor, and Energy Master Plans) • Use practical and effective means for resource recovery PRIOR COMMITTEE/BOARD ACTIONS January 2019 - Board of Directors received and filed the mid-year update of the General Manager's FY 2018-2019 Work Plan. September 2018 - Board of Directors received and filed the General Manager's FY 2018-2019 Work Plan. ADDITIONAL INFORMATION The General Manager's work plan includes goals for the fiscal year. All items in the work plan were successfully put into motion and a majority completed. Page 1 of 2 FINANCIAL CONSIDERATIONS All items included in the General Manager's Work Plan were budgeted in the FY 2018-2019 Budget. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • General Manager's FY 2018-2019 Work Plan Year-End Update Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Memorandum June 19, 2019 TO: Chairman and Members of the Board of Directors FROM: James D. Herberg, General Manager SUBJECT: General Manager's Fiscal Year 2018-2019 Work Plan Year-End Update I am pleased to present the year-end update for my Fiscal Year 2018-2019 work plan. The work plan includes nineteen goals organized under five focus areas including safety and security, succession planning, resource recovery, reliability, and operational optimization. The work plan was reviewed with the Steering Committee in August 2018 and a mid-year update was provide in January 2019. 1. Safety and Security • Emergency Preparedness — Develop and conduct an external emergency response and recovery drill by June 30, 2019 that tests the Integrated Emergency Response Plan (IERP). UPDATE: In lieu of developing our own external emergency response and recovery drill, a team of 50 OCSD employees participated in the 2019 Orange Crush Regional Emergency Preparedness and Training Exercise on January 30, 2019. This county-wide exercise used a scenario of a magnitude 7.8 earthquake strike along the San Andreas Fault. A full Emergency Operations Center (EOC) activation occurred, which gave OCSD the opportunity to test the IERP. • Safety Engineering Solutions — Continue the 11 Safety Improvement Construction Projects and implement physical site security enhancements as needed to ensure all facilities remain secure. All identified safety improvement contracts and task orders are awarded by May 30, 2019. UPDATE: All 11 construction projects have been awarded. The last one, NFPA 820 HVAC and Electrical Improvements (1-126C), was awarded in March 2019. Risk Management continues to monitor progress to ensure safety and security is maintained. • Voluntary Protection Plan (VPP) Certification — Complete a full review and audit of all Safety and Health policies, conduct a third-party VPP readiness assessment, and draft a VPP implementation plan by June 30, 2019. UPDATE: A third-party VPP readiness assessment was completed by Arcadis in August 2018. The audit findings were presented to the EMT in December 2018. Risk Management presented the VPP implementation strategies to the EMT in January 2019 and is on track to apply for the Cal OSHA VPP status by the end of the 2019 calendar year. • Safety Help Desk— Create a Safety Help Desk Program by June 30, 2019 with software and in-house telephone extension monitored by Risk Management staff, intended to provide internal customers with prompt information and support related to health and safety services. Services include, but are not limited to: troubleshooting safety problems, scheduling contractor orientation, or getting policy guidance. UPDATE: The new Medgate/Cority Safety Management software module went live in July 2018. Cority is the software program used for online safety requests. Risk Management worked with the IT Department to develop the necessary electronic form in the Cority portal and assigned a telephone extension —SAFE Page 2 (0233) to respond to employee inquiries and provide customer service on safety requests. • Security Committee & Plan — Reconvene the Security Committee to facilitate development and implementation of a Physical and Cyber Security Plan by March 31, 2019. UPDATE: In December 2018 the EMT provided direction regarding committee member composition. Standard Operating Procedures for a Security Committee were developed by Risk Management and approved by the General Manager to define the scope, roles, and responsibilities. The first Security Committee meeting took place in June and the group will meet on an ongoing basis to facilitate the development and implementation of a Physical and Cyber Security Plan. 2. Succession Planning • Realignment of Operations, Maintenance & Engineering (Maintenance Mode) — Assess the roles and responsibilities of each department and workgroup within the Operation and Maintenance and Engineering Departments and adjust the structure and roles to more efficiently support delivery of services to operate, maintain, refurbish, and replace Orange County Sanitation District assets by November 30, 2018. Make the necessary adjustments to the organization by March 31, 2019. UPDATE: An Operations, Maintenance, and Engineering realignment effort was designed by the managers of the departments. The realignment was designed around asset management principles with clearer roles and responsibilities between work groups and improved technical support of craft labor and operations. The plan was rolled out to staff in November 2018 and was fully implemented in January 2019. Page 3 • Labor Negotiations — Complete successful negotiations with all represented bargaining units by June 30, 2019. UPDATE: After selecting a Chief Negotiator, Human Resources worked with management to develop bargaining topics and began negotiations with all represented groups in February 2019. The OCSD negotiations team has met numerous times with each employee organization and is close to reaching successor agreements. It is anticipated that agreements will be reached in June for Board adoption. • Leadership Development — Provide at least two specialized trainings tailored to the Supervisory Level by June 30, 2019. UPDATE: Two specialized trainings were provided to Supervisors. OCSD's Workers Compensation Consultant developed training content targeted for supervisors and above to provide the tools and resources needed to address issues at the onset. This training was completed in February 2019. The second training was the Supervisory Leadership Development module that was provided by Brandman University to all Supervisors. This training focused on team building, communications, conflict management, and developing others. This training was a two-part series and was completed in December 2018. 3. Resource Recovery • Water Quality for Water Recycling — Update OCSD's wastewater ordinance to reflect necessary discharge regulations resulting from alkaline hydrolysis to protect water quality by June 30, 2019. UPDATE: An update to OCSD's wastewater ordinance was adopted by the Board of Directors in May 2019. The adopted version was sent to the State Water Resources Board seeking regulatory approval and will become effective in July 2019. Page 4 4. Reliability • Asset Management Plan — Develop an Asset Management Plan by October 31, 2018 that includes an inventory of critical assets for each process area, the collection system and fleet; an evaluation of their condition and performance; and a budgeting and implementation plan to maintain, rehabilitate, and replace these assets to meet the required levels of service at the lowest life cycle cost and at an acceptable level of risk. UPDATE: An Asset Management intranet site with all the required information was set up in October 2018 and is live. Staff are in the second annual update cycle. A published annual report will be printed at the completion of the second cycle to support the budgeting process. S. Operational Optimization • OCSD Headquarters Building — Create a final concept plan for the new building complex north of Ellis Avenue by February 28, 2019. UPDATE: Two special meetings of the Headquarters Complex Ad-Hoc Committee took place in October and November to provide information to Committee members about the proposed project and the preliminary design concepts leading up to the current layout. OCSD Management met in December to review renderings of the proposed layout. The final concept plan for the new headquarters building was submitted in January 2019. • Board Meeting Agenda Management Software System—Select and install a new Board Meeting Agenda Management Software System by June 30, 2019. UPDATE: The Granicus software and hardware setup and installation has been completed along with user training. Board Services is working with the vendor on fine-tuning various templates. The software is anticipated to go live in July 2019. Page 5 • Document Management — In preparation for creating a more digital workplace and reducing physical record storage, develop a Scope of Work by November 30, 2018 to issue a Request for Proposals for a Trusted System Needs Assessment and award a contract by February 28, 2019. Present the records retention schedule to the Board of Directors for approval by December 31, 2018. UPDATE: A Scope of Work was developed in preparation for creating a more digital workplace and reducing physical record storage. The RFP was advertised in January 2019 with submittals also due back in January 2019. The RFP was awarded to Third Wave Corporation and approved by the Administration Committee. The needs assessment began in June 2019 with a kickoff meeting. The Records Retention Schedule was approved at the December 2018 Board Meeting with a recommendation to adopt the Records Management Program Policy and Procedures & Updated Records Retention Schedule, Authorizing Destruction of Obsolete Records. • Sludge Dewatering and Odor Control Plant No. 1 — Begin production of dewatered biosolids cake by March 31, 2019. UPDATE: The first dewatered cake was produced in November 2018. Commissioning of the dewatering system was completed in March 2019. • American Society of Civil Engineers Peer Review— Complete a peer review of the Engineering Department's Capital Improvement Program delivery system by the American Society of Civil Engineers (ASCE) by May 31, 2019. UPDATE: The ASCE Peer Review began in April 2019 and included an OCSD site visit with multi-day interviews of staff, design consultants, and contractors. The Peer Review Panel completed their review in May 2019. • Communications Audit — Develop scope of work and issue RFP by June 30, 2019 to select firm to conduct a communications audit to review Page 6 effectiveness of OCSD's communication efforts to redefine and rescope the program. UPDATE: The scope of work for the communications audit was finalized and an RFP will be issued by June 30, 2019 to select a firm to conduct the audit. Lobbyist Contract — Complete selection and contract implementation of legislative lobbyist contracts by December 31, 2018. UPDATE: In November 2018, the Legislative and Public Affairs Committee approved professional agreements with Townsend Public Affairs Inc.for State Legislative Services and ENS Resources for Federal Legislative Services. • Return to Work Program— Develop a formal Return to Work (RTW) Program to communicate expectations of what is expected of all parties (employees, supervisors, physicians, etc.) by June 30, 2019. UPDATE: Human Resources staff completed their research on RTW programs and established a projectteam to develop program guidelines and implement a formal RTW Policy. The project team has drafted a formal RTW policy and RTW Standard Operating Procedures. These documents are pending review and feedback from management and legal counsel. The program will be presented to the EMT in July 2019, and an agencywide training will be offered prior to implementation in August -September 2019. Page 7 FC-1 Orange County Sanitation District MINUTES FINANCING CORPORATION MEETING June 27, 2018 OJ�S MTAT 9 _ v 9 t o � FC Cw � 1�4G THE ENV�e' Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 612 712 01 8 Minutes of Board Meeting Page 1 of 3 ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION CALL TO ORDER: Chair Seboum called the Board of Directors, Orange County Sanitation District Financing Corporation meeting to order at 6:13 p.m. Kelly Lore, Secretary of the Financing Corporation, declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X Gregory Sebourn, Chair Jesus Silva A Denise Barnes Lucille Kring X Allan Bernstein Chuck Puckett X Robert Collacott Robbie Pitts X Ellery Deaton Sandra Massa-Lavitt X James M. Ferryman Bob Ooten X Phil Hawkins Brooke Jones Steven Jones X Kris Beard X Peter Kim Marshall Goodman Charlie Nguyen X Al Krippner X Richard Murphy Warren Kusumoto A Steve Nagel Cheryl Brothers X Glenn Parker Cecilia Hupp A Scott Peotter Brad Avery X Erik Peterson Mike Posey X Tim Shaw Michael Blazey X David Shawver Carol Warren X Fred Smith Virginia Vaughn X Teresa Smith Mark Murphy A Michelle Steel Shawn Nelson Sal Tinajero X David Benavides X Donald Wagner Lynn Schott X Chad Wanke Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry Kelly Lore, Secretary of the Financing Corporation, announced that the members of the Orange County Sanitation District Board of Directors are each being compensated $212.50 for the Board of Directors Meeting; there is no additional compensation for the Financing Corporation Meeting. O6/27/2018 Minutes of Board Meeting Page 2 of 3 APPROVAL OF MINUTES: FC-1. APPROVAL OF MINUTES (Secretary of the Financing Corporation) Hearing no corrections or amendments made, the minutes for the meeting held on June 28, 2017 were deemed approved as so ordered by the Chair. INFORMATION ITEM: FC-2. ANNUAL STATUS REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION (Lorenzo Tyner) Director of Finance & Administrative Services Lorenzo Tyner provided a brief overview of the item. MOVED SECONDED AND DULY CARRIED TO: Receive and File the Annual Status Report of the Orange County Sanitation District Financing Corporation. AYES: Beard (Alternate); Bernstein; Collacott; Deaton; Ferryman; Hawkins; Kim; Krippner (Alternate); R. Murphy; Parker; Peterson; Sebourn; Shaw; Shawver; F. Smith; T. Smith; Wagner; Wanks; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Barnes; Benavides (Alternate); Nagel; Peotter and Steel Chair Seboum adjourned the meeting of the Board of Directors, Orange County Sanitation District Financing Corporation at 6:15 p.m. Submitted by: Kelly A. Lore, MMC Financing Corporation Secretary O6/27/2018 Minutes of Board Meeting Page 3 of 3 BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. -- O6/26/19 AGENDA REPORT ItemNumber Item Number - Ku Orange County Sanitation District Financing Corporation FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: ANNUAL STATUS REPORT OF THE ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION GENERAL MANAGER'S RECOMMENDATION Receive and File the Annual Status Report of the Orange County Sanitation District Financing Corporation. BACKGROUND Per Section 2.05 of the Orange County Sanitation District (Sanitation District) Financing Corporation, the Board of Directors will conduct at least one annual meeting where staff shall provide an activity report and conduct other business as necessary. As of June 30, 2019, the Sanitation District had approximately$973 million in outstanding debt that is scheduled to be paid off prior to June 30, 2044. The Sanitation District did not issue any new money debt during the 2018-19 Fiscal Year and no new money debt issuances are planned for the 2019-20 Fiscal Year. A summary of the Sanitation District debt history is provided later in this agenda report. RELEVANT STANDARDS • Ensure the public's money is wisely spent • Ensure that investment proposals and decisions are based on clearly defined standards • Sound accounting practices, complying with local, state and federal laws • Produce appropriate financial reporting PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District began issuing Certificates of Participation (COPS) in 1990. These COPs were a part of the long-term financing plan that included both variable interest rate Page 1 d 3 and traditional fixed rate borrowing. Following are the current outstanding debt issues of the Sanitation District: Outstanding Debt History In May 2010, the Sanitation District issued $80.0 million of fixed rate Build America Bonds (BABs), Series 2010A at a true interest cost of 3.68 percent for the issue. $80 Million Outstanding In December 2010, the Sanitation District issued $157 million of fixed rate BABS, Series 2010C at a true interest cost of 4.11 percent for the issue. $157 Million Outstanding In October 2011, the Sanitation District issued $148 million of fixed rate COPS, Series 2011A refunding a portion of the Series 2000 variable rate debt and a portion of the Series 2003 fixed rate debt. The true interest cost for the issue is 2.61 percent. $75 Million Outstanding In March 2012, the Sanitation District issued $101 million of fixed rate COPS, Series 2012A refunding the Series 2003 fixed rate debt. The true interest cost for the issue is 3.54 percent. $101 Million Outstanding In August2012,the Sanitation District issued $66 million of fixed rate COPS, Series 2012B refunding the Series 2000 variable rate debt. The true interest cost for the issue is 1.50 percent. $47 Million Outstanding. With the issuance of Series 2012B, there remains no variable interest rate COPS at the Sanitation District. In August 2014, the Sanitation District issued $85 million of fixed rate COPS, Series 2014A, refunding a portion of Series 2007E debt. The true interest cost for the issue is 2.34 percent. $71 Million Outstanding In February 2015, the Sanitation District issued $128 million of fixed rate COPS, Series 2015A, refunding $152,990,000 of the Series 2007E debt. The true interest cost for the issue is 3.30 percent. $128 Million Outstanding In March 2016, the Sanitation District issued $146 million of fixed rate certificate anticipation notes (CANS), Series 2016A, refunding a portion of the Series 2009A. The true interest cost for the issue is 3.02 percent. $146 Million Outstanding In February 2017, the Sanitation District issued $66 million of fixed rate COPS, Series 2017A, refunding $92 million of the Series 2007A debt. The true interest cost for this issue is 2.55 percent. $66 Million Outstanding In November 2018, the Sanitation District issued $102 million of fixed rate CANS, Series 2018A, refunding the Series 2016E CANS. The true interest cost for the issue is 2.02 percent. $102 Million Outstanding Page 2 d 3 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 3 of 3 ADMINISTRATION COMMITTEE Melting D310 TOBE.Of Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number 9 19 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: PROPOSED FY 2019-20 BUDGET UPDATE GENERAL MANAGER'S RECOMMENDATION Approve proposed Operating, Capital, Debt/COP Service, and Self-Insurance Budgets for FY 2019-20 as follows: Adopted Proposed Budget Budget FY 2019-20 FY 2019-20 Operations & Maintenance $160,204,370 $168,216,487 Net Capital Improvement Program 137,027,258 153,377,431 Allocation for Rehabilitation/Replacement 0 200,000,000 Debt/COP Service 79,956,000 76,776,000 General Liability and Property Self-Insurance 780,000 780,000 Worker's Compensation Self Insurance 1,750,000 1,750,000 Intra-District Joint Equity Purchase/Sale(') 3,500,000 5,000,000 TOTAL $383,217,628 $605,848,918 (')Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15). The proposed budget includes 4 new staff positions, bringing the total authorized FTE's from 636 to 640. Subsequent to the printing of the FY 2019-20 Budget Update, changes were made to the project budget of the Digester Gas Facilities Rehabilitation project (Project J-124). See the attached Errata sheet for details. BACKGROUND The FY 2019-20 Proposed Budget Update represents known revisions to the second year of the two-year budget and is enclosed for the Committee's consideration. The Budget has been presented to the Operations Committee at the regular June meeting in order to allow each Standing Committee an opportunity to review the proposal prior to the June Board meeting. Although each Committee has had an opportunity to review the proposal, it remains the responsibility of the Administration Committee to recommend approval. Page 1 of 3 The Administration Committee is requested to recommend that the Board of Directors approve this budget at the June 26, 2019 Board meeting. RELEVANT STANDARDS Produce Operations and CIP budgets every two years, with annual update PROBLEM The Orange County Sanitation District (Sanitation District) cannot maintain and monitor its financial condition, operations, and future capital improvements without examination and transparency into its resources, revenues, reserves, and outlays. PROPOSED SOLUTION Providing the Board with an understanding of the Sanitation District's resources will assist in the approval of the proposed two-year budget. TIMING CONCERNS The proposed two-year budget, effective July 1 of this year,will be finalized and presented to the Board for adoption in June. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not be able to carry out its financial fiduciary duties beyond June 30, 2019. PRIOR COMMITTEE/BOARD ACTIONS The FY 2018-19 and 2019-20 biennium budget was adopted on June 27, 2018. ADDITIONAL INFORMATION The proposed FY 2019-20 operating and capital improvement budget totals $321.5 million, or$24.3 million (8.1 percent), above what was approved last year as the second year of the adopted two-year budget. The increase in the FY 2019-20 budget is primarily attributable to $16.3 million of delays in construction start dates where spending has been deferred and an increase of$8.0 million in operating budget. The 4 new staff positions are a Lead Heavy Equipment Mechanic, Senior Heavy Equipment Mechanic (2), and a Senior Regulatory Specialist. The mechanic positions are to support the Maintenance efforts of the Sanitation District and the regulatory specialist will assist in the efforts of the Environmental Services Division. $200 million has been set aside for Rehabilitation and Replacement of assets. This amount will be updated in future years as the funds are expended. Page 2 d 3 The proposed amounts for Debt Service, Self-Insurance, and Intra-District Transfers total $84.3 million, which approximate the originally adopted FY 2019-20 budget. ATTACHMENTS The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Budget Update Fiscal Year 2019-20 (separate electronic and printed document) • Errata Sheet • PowerPoint Presentation from Administration Committee June 12, 2019 Page 3 d 3 Errata Sheet for Orange County Sanitation District FY 2019-20 Budget Update A list of changes made to the Fiscal Year 2019-20 Budget Update following the printing of the book. Changes resul ing from increase in Project J-124 Budget 24 Second Paragraph—Project Budget is$96.5 million Project Budget is$156.5 million. A-8 Digester Gas Facilities Rehab J-124 96,500,000 96,500,000 Digester Gas Facilities Rehab J-124 96,500,000 156,500,000 A-8 Utility Systems Total 373,918,000 411,771,111 Utility Systems Total 373,918,000 471,771,111 A-10 Total Treatment 8 Disposal Projects 3,007,360,000 3,078,695,000 Total Treatment 8 Disposal Projects 3,007,360,000 3,138,695,000 A-10 Total $4,010,422,700 $3,965,967,153 Total $4,010,422,700 $4,025,967,153 . The Cash Flow Projection pages A-2 and A-3 have been updated. The replacement sheets are attached. Errata Sheet (cont.) Pa a Reads Director of Operations and Maintenance should be listed as Director of Engineering 34 Staffing-Engineering Services = 120.00 Staffing-Engineering Services = 121.00 34 Staffing-Operations and Maintenance= 285.00 Staffing-Operations and Maintenance=284.00 35 Staffing-Engineering Services = 120.00 Staffing-Engineering Services = 121.00 35 Staffing-Operations and Maintenance= 285.00 Staffing-Operations and Maintenance= 284.00 45 Staffing-Managers=6.00 Staffing-Managers-7.00 45 Staffing-Total = 120.00 Staffing-Total = 121.00 47 Staffing-Managers=5.00 Staffing-Managers=4.00 47 Staffing-Total =285.00 Staffing-Total =284.00 A-25 Engineering Administration =2.0 Engineering Administration =3.0 A-25 Engineering Department Subtotal = 120 Engineering Department Subtotal = 121 A-25 Operations and Maintenance Administration = 3.0 Operations and Maintenance Administration = 2.0 A-25 Operations and Maintenance Department Subtotal = 285.00 Operations and Maintenance Department Subtotal =284.00 A-29 Director of Engineering =0.00 Director of Engineering = 1.00 A-29 Total Engineering Administration =2.00 Total Engineering Administration = 3.00 A-30 Total Engineering Department= 120.00 Total Engineering Department= 121.00 A-30 Director of Operations and Maintenance= 1.00 Director of Operations and Maintenance=0.00 A-30 Total Operations and Maintenance Administration = 3.00 Total Operations and Maintenance Administration = 2.00 A-32 Total Operations and Maintenance-285.00 Total Operations and Maintenance=284.00 Cash Flow Projection Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Prelim Imply Preliminary Preliminary Preliminary Preliminary Raf Description 19.20 20-21 21-22 22-M 23.24 24-25 Revenues: 1 General User Fees 298,144,000 302,790,000 3W,461,000 312,156,000 320,617.000 329,125,000 2 Parini User Fees 9,917,000 10,034,000 10,151,000 10,268,000 10,502,000 10,736,M 3 WAssessments 17.658,560 21,891,050 19,349.190 19.181,450 19.495.20 20,386,140 4 SAW Asssssrreuts 2.654,000 2.760.000 2,870.000 2,985,000 3,101 3.228.000 5 Property Taxes 96,354,000 99,967,000 103,716.000 107,605,000 111,371,000 115,269,000 6 New COP 6sues - - - - - - 7 Interest Revenues 6,747,000 6.666,000 6,828.000 6,413.000 6.823.000 7,957,000 8 Capital Facilities Capacity Charges 18,000,000 18,012,000 18,673,000 19,441,000 19,517.000 19,597,000 9 Other Revenues 18,880,498 26,866,640 28,019.005 36,652,981 18,505,375 15,795,381 10 Revenues 468,355,05a 489,586,690 497,067,195 514,702,431 508,93g655 522,093,521 Requirements: 11 Oper&Mice&p(4.0%yr) 168,216,487 1M.816,541 171,409,000 178.265,000 185,396,000 192,812,000 12 Capital improvement Program hai 176,325,000 209,326,000 313,739,000 W,067,000 335,302,000 306,509,,000 13 Less:CIP Savings&Deferrals (22,997,569) (24,759,882) (34,039,257) (29,748,929) (22,387,544) (14,548,981) 14 Allocation for Future RehabililatioMl 140,000,000 - - - - 15 COP Service(5.0%,30 yrs) 76,775.000 72,838.000 72,211,000 72,206,000 72,212.000 72.206,000 16 Reduction of Long-Term Useless - - - - - - 17 Other Requirements 7,530,000 6,030,000 2,530.000 2.530,000 2,530,000 2,530,000 18 Requirements 545,048,918 428,262,659 525,849,743 569,319,071 573,052,456 559,507,019 19 Revenues-Req ulrem ants (77,493,860) 61,334,031 (28,782,50) (54,616,640) (64,117,801) (37,413,498) Accumulated!Fur ds: 20 Beginning of Year 716,802,309 639,308,449 700,642,480 671,859,932 617S43,292 553,125,491 21 End of Year 639,308,449 700,642,480 671,859,932 617,243,292 553,125,491 515,711,993 22 Consolidated Reserve Policy 529,777.000 522,032,000 523,366,000 525,208,000 527,105,000 515,025,000 23 Over(Under)Reserve Policy' 109,531,449 178,610,400 148,40,932 92,0%,292 26,020,491 686,03 Sewer Service User Fees: 24 Avg SFR Annual User Fee $339 $343 $347 $351 $359 $367 25 Percentage Change 1.19% 1.18% 1.17% 1,15% 2.28% 2,23% 26 Equivalent Ds eying Units 923,730 926,501 929.281 932,069 934,665 937,670 27 SFR Connection Fee $4.601 $4,973 $5,346 $5.719 $5.736 $5,753 29 outstanding COFS $940,050,000 $909,620. 00 $876,655,000 $540,715,000 $803,320.000 $764,285,000 Reserve PJM 29 50%Next Year Operating 84,108,000 $2,408,000 85,705,000 89,13$000 92,698.000 96,406,000 30 10%Next Year Operating 16,822,000 16.482,000 17,141,000 17,827,000 18,540,000 19.281,000 31 100%Next Year AUG COP Sic, 76,T75,000 72,838,000 72,211,000 72,206,000 72,242,000 72,206.000 32 50%average ter year CIP Sol, 137,302,M 137,302,000 137,302,000 137.302.000 137,302,000 137,302,000 33 DER@ 10%Outstanding COP; 94,005,000 90,962.000 87,666,000 84,072,000 80,332,000 76,429,000 34 SFI@$57. 57,000,000 57,000.000 57,000,000 57.000,000 57.000.000 57,000,000 35 Reel&Re,urb@2%fyr 63.765,000 65,040,000 66,341,000 67.568,000 69.021.000 70.401,000 3, 'Res erve Reduction(in accordance with Board action slow ling a$40M reduction to total res (14,000,000) 37 Total 529,777.000 522.032.000 523,366,000 525,208,000 527,105,000 515,025,000 COP Ratios 38 Sr Lien Cuverge,Mn 1.25 3.67 4.20 425 4.39 4.21 4.29 A-2 2019-20 Budget Update Orange County Sanitation District Consolidated Cash Flow Projections Preliminary Preliminary Preliminary Preliminary 10-Year aP Description 25_26 26_27 27=28 28=29 Total Revenues: 1 General User Fees 337.681.000 346,285,000 354.938.000 363,640,000 3,272,837,000 2 Ferm0ed User Fees 10,970,000 11,204,000 11.438,000 11,672,000 f08,892,000 3 IRyyDAssesements 19.727,490 19,108,870 18,531,800 18,420,770 193,750,600 4 SAWPA Assessments 3,357,000 3.491.000 3,63D,000 3,776,OOU 31,855,000 5 Roperty Taxes 118,727.000 122.289.000 125,958,wa 12%737,000 1.130,993,000 6 New COP issues - - - - 7 interest Revenues 7,827,000 8,366,000 9.374,000 8,837,000 74,838,000 8 Capilal FacPities Capacity Charges 19,673,000 19.749,000 19.830.000 19,906,000 192,998,000 9 Other Revenues 16,124,000 16,464,000 16.813.000 17,169,000 21l,289.880 10 Revenues 534,U08,490 50,90,870 560 512,800 573,157,770 5,215A53A80 Requirements: 11 Oper 86Rce&p(4.0%yr) 200.524.000 208,545,000 216,867,000 225,562,000 1,912,433,028 12 Capital lrrprovernent Rograni 245.664.830 219,403,650 188,966,888 130,544,028 2,471,8411,596 13 Less:CUP Savings 8 Deferrals (6,904,105) (4,155,277) (3,719,338) (2,550,881) (165,811,763) t4 Atlocallon for Future RehabltationlRep - - - 300,000,000 440,000,000 15 COPSewics 72,210,000 68,414,000 72.563,000 72,557,000 724,192,000 10 Reouot,,of Long-'arm Liabuiles - - - - - 17 Other Require rants 2.530,000 2,530,000 2,530.000 2,530,000 33,800,OOD 10 Re qulro ma nts 514,024,725 491 477,227,550 728,642,147 5,416,461,861 19 Revenues-Requirements 20,061,765 52,219,297 83,285,250 (155,484,377) (201,008,381) Accuausted Funds! 20 Beginning of Year 615,711,993 535.773,758 587.993.055 671.278,305 715,802,309 21 End of Year 535.773,758 587,993,055 671.278.305 515.793,928 515,793,928 22 Consolicated Reserve Policy 513.250,000 510,138,000 514.617,000 513,681,001 513.661,001 23 Nor(Under)Reserve Policy' 22,523,758 77,855,055 166,661,305 2,112,927 2,112,927 Sewer Service User Fees: 24 Avg SFRAnnual User Fee $375 $383 $391 $399 25 Percentage Change 2.18% 2.13% 2.09% 2.05% 26 6auivalent Dwelling Units 940,483 943,304 946,134 946,972 27 SFR Connection Fee $5,77D $5,787 $5,804 $5.821 26 Outstai COP; $546,150,000 $490.485.000 $129.090,000 $352,805,000 Fiffleive Poky 29 50%Next Year Operating 100,262,OOD 104,273,000 108,444,000 112,781.000 3O 10%Next Year Operating 20,052,000 20.855.000 21.689.000 22,556,000 31 100%Next Year AUG COP Svc 72,210.000 68,414,000 72,563.000 72,557,000 32 50'16 average ten-year CP Bal. 137,302,000 137.302,000 137,302,000 137.302,000 33 DSR@i D'/a Outstanding COP, 54,615,000 49,049,000 42,900000 35,281.000 34 SFI Q$57. 57,000,000 57,000,WO 57,000,000 57.000,001 35 Feel B Returb @ 2%lyr 71.809.000 73,245,000 74,710,000 76,204.000 36 'Reserve Reduction 37 Total 513,250.000 510.138.000 514.617,000 513,681,001 COPRatios 38 Sr Lien Coverge,Mn 125 4.35 4.66 4.46 4.52 A-3 ■ 4 \ r Proposed 2 1 oposed FY 0 9 -2 0 3 Budget Overview I OF ` 0 �• � � s Administration Committee ` ■ June 12, 2019 . � � '�j ■ A ra M AV= ► ' ; Ep"�- MON � - 0 t! M N�F . ' _ . • 11 . .< •Overview FY 2019-20 Update • 2nd Year of 2-Year Adopted Budget • Stable Revenues • Expenses Include • Operating • Capital Improvement Program • Debt Service • Staffing — 4 New Positions (640 FTE) • No New Debt *All figures in millions unless otherwise noted • �1 Nwidpr Where the Money Comes From 2018-19 2019-20 2019-20 Other Revenue $13.9 M Category Adopted Adopted Proposed 3.0% Service Fees $318.0 $320.5 $318.4 Intradistrict^ Permit User Fees 18.3 18.5 9.9 Transfers \ Capital Facilities Capacity Charges 14.0 14.5 18.0 $1.1 M .1% Property Taxes 99.6 104.5 96.4 Interest Interest 6.5 7.2 6.5 $6.5 M Property Taxes Intradistrict Transfers 3.7 3.5 5.0 1.4% $96.4 M 20.5% Debt Proceeds 0.0 0.0 0.0 Other Revenue 10.8 9.2 13.9 Total Funding Sources $470.9 $477.9 $468.1 • REVENUE - RATES Comparison of Single Family Rates (July 2018) $1 ,000 988 $900 SFR Rate for FY 2019-20 $800 $339 $700 Per 5-year Rate Plan Adopted in March 2018 $600 $4 or 1 .2% Increase $500 $400 $335 ;? $300 p m o $200 $191 c ° c c m PEvc ° m $100 v U o c "m 3 m w m m m Where the Money Goes 2018-19 2019-20 2019-20 Category Adopted Adopted Proposed Operating Expenses $161.2 $160.2 $168.2 Operating Other Expenses Capital Improvement Program 174.5 137.0 153.3 Requirements $168.2 M Debt Service 80.5 80.0 76.8 $207.5 27.8% 34.3% Other Requirements* 6.1 6.0 207.5 Capital Total Funding Uses $422.3 $383.2 $605.8 Improvement *Other Requirements total includes Intradistrict Transfers, Self-Insurance, and Debt Service Program Allocation for Future Replacement, Rehabilitation 8 Refurbishment $76 8 M $153.3 M 12.6% 25.3% • OPERATING EXPENSES 17 Expenses by Department (in millions) $,sa. 2018-19 2019-20 2019-20 Adopted Adopted Proposed Department Budget Budget Budget +,o.ai Administration Units: General Manager's Office $4.6 $4.5 $5.0 Human Resources 8.3 9.0 9.4 Administrative Services 21.1 19.5 19.7 2018-19 2018-19 2019-20 2019-20 Adopted Projected Adopted Proposed Sub-Total $34.0 $33.0 $34.1 Operating Units: Total FY 18-19 & FY 19-20 Adopted Budgets $321 .4 Environmental Services 18.0 18.4 17.8 Total FY 18-19 Projected & Engineering 3.8 3.8 6.6 FY 19-20 Proposed Budgets $320.5 Operations & Maintenance 105.4 105.0 109.7 Sub-Total $127.2 $127.2 $134.1 Total $161.2 $160.2 $168.2 • CAPITAL IMPROVEMENT PROGRAM CIP Categories Regulatory Treatment Projects $ 130.9 9% Collection Projects 42.4 Additional Rehabilitation and Equipment 3.0 Capacity >>% Replacement FY 2019-20 CIP Authority 176.3 54% CIP Savings & Deferrals (23.0) Strategic Initiatives FY 2019-20 Net CIP $ 153.3 zs°i° 10-Year Net CIP Outlay $ 2.8 Billion • CAPITAL IMPROVEMENT PROGRAM mActual M FY 2019-20 Proposed Net CIP OutlayfFY2018-19 Approved Net CIP Outlay $400 $350 $300 $250 $200 0 $150 $100 $50 <1 q, < ti� tib tih ti� ti1 ti� ti� ,�� F�ti3 �,�� F�tiy tie �,ry� �~$ • DEBT SERVICE �: . Total Outstanding COP Balance 7/1/19 $ 972,780,000 Blended Interest Rate 3.05% FY 2019-20 Debt Service $ 76.8 M • DEBT SERVICE �: . $looms OUTSTANDING DEBT $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2010 2015 2020 2025 2030 2035 2040 No Additional Debt Issues are Planned • 'ems Revenue Expenses Proposed Proposed FY 2019-20 FY 2019-20 Fees & Charges $ 346.3 Operating Expenses $ 168.2 Property Taxes 96.4 Capital Improvement Program 153.3 Interest 6.5 Debt Service 76.8 Other Revenue 18.9 Other Requirements 7.5 $ 468. 1 405.8 Allocation for Future Replacement, Rehabilitation & Refurbishment 200.0 $ 605.8 -: 1 ' • C F1EBRnTrvG YEARS ADMINISTRATION COMMITTEE Melting Dat0 TOBE.Or Dir. 06/12/19 O6/26/19 AGENDA REPORT Item Item Number 0 20 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 19-06, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2019-20 for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code." BACKGROUND This routine annual action adopts a resolution establishing the spending limit for "proceeds of taxes" in accordance with Article XIII B of the Constitution of the State of California (Section 7910 of the Government Code). The Orange County Sanitation District's (Sanitation District) annual appropriations are well below the limit. In 1979, Proposition 4 (the Gann Initiative)was approved adding Article XIII B to the State Constitution. The provisions of this article place limits on the amount of revenue that can be appropriated by all entities of government. This initiative was designed to constrain government expenditures by placing an annual limit on jurisdictions' revenue and appropriation growth. The Appropriation Limit is based on actual appropriations during the 1978-1979 fiscal year, as increased each year using specified population and inflationary growth factors. This annual allowance growth is linked to changes in population and cost of living. The passage of Proposition 111 in June 1990 amended Article XIIIB, making changes in the base year upon which the appropriations limit is based, establishing new cost of living factors and new population factors for use by local governments, and increasing appropriations not subject to the limit (primarily qualified capital outlay projects). The financial constraints of Article XIII B apply to the State, all cities, counties, special districts, and all other political subdivisions. RELEVANT STANDARDS Produce Operations and CIP budgets every two years, with annual update PROBLEM Article XIII B of the State Constitution places limits on the amount of revenue that can be appropriated by all entities of government. Page 1 of 2 PROPOSED SOLUTION Approval of the proposed resolution establishing the annual appropriations limit for fiscal year 2019-20 in accordance with the provisions of Division 9 of Title 1 of the California Government Code. TIMING CONCERNS The proposed budget update, effective July 1 of this year, will be finalized and presented to the Board for adoption in June. The appropriations limit resolution needs to be approved in conjunction with the budget. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not be able to carry out its financial fiduciary duties beyond June 30, 2019. ATTACHMENTS The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Draft Resolution No. OCSD 19-06 Page 2 of 2 RESOLUTION NO. OCSD 19-06 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ESTABLISHING THE ANNUAL APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 FOR THE DISTRICT IN ACCORDANCE WITH THE PROVISIONS OF DIVISION 9 OF TITLE 1 OF THE CALIFORNIA GOVERNMENT CODE WHEREAS, Article XIII B of the Constitution of the State of California as proposed by the Initiative Measure approved by the people at the special statewide election held on November 6, 1979, provides that the total annual appropriations limit of each local government agency shall not exceed the appropriations limit of such entity for the prior year, adjusted for changes in the cost of living and population, except as otherwise specifically provided for in said Article; and WHEREAS, the State Legislature added Division 9 (commencing with Section 7900) to Title 1 of the Government Code of the State of California to implement Article XIII B of the California Constitution; and WHEREAS, Section 7910 of the Government Code provides that each year the governing body of each local jurisdiction shall, by resolution, establish its appropriations limit for the following fiscal year pursuant to Article XIII B at a regularly-scheduled meeting or a noticed special meeting and that fifteen (15) days prior to such meeting, documentation used in the determination of the appropriations limit shall be available to the public; and WHEREAS, Section 7902 (a) of the Government Code sets forth the method for determining the appropriations limit for each local jurisdiction for the 2018-19 fiscal year; and WHEREAS, the Board of Directors wishes to establish the appropriations limit for fiscal year 2019-20 for the District. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER: Section 1: That it is hereby found and determined that the documentation used in the determination of the appropriations limit for the Orange County Sanitation District, for fiscal year 2019-20, was available to the public in the Finance Department of said District at least fifteen (15) days prior to this date. Section 2: That the appropriations limit for fiscal year 2019-20 for the Orange County Sanitation District, as established in accordance with Section 7902(b) of the OCSD 19-06-1 California Government Code is $114,427,648 which sum is within the maximum authorized spending limitation for fiscal year 2019-20. Section 3: That the Board of Directors of the Orange County Sanitation District, has determined that the percent change in California per capita personal income from the preceding year would be the cost of living factor to be used and the weighted average population change of the cities within the District would be the population factor to be used in calculating the Orange County Sanitation District's appropriations limit for the Fiscal Year 2019-20. Section 4: The determination of the appropriation limit is based upon the best and most complete information available at this time. The District reserves the right to review and re-establish a new and different limit in the event that it subsequently determines that a modification of the limitation amount is appropriate. PASSED AND ADOPTED at a regular meeting of the Board of Directors held June 26, 2019. David John Shawver Chair, Board of Directors Orange County Sanitation District ATTEST: Kelly A. Lore, MMC Clerk of the Board OCSD 19-06-2 STATE OF CALIFORNIA ) ss COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 19-06 was passed and adopted at a regular meeting of said Board on the 26th day of June 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 26th day of June 2019. Kelly A. Lore, MMC Clerk of the Board of Directors Orange County Sanitation District OCSD 19-06-3 WOODRUFF, SpRADLINe SMART CLOSED SESSION 1 555 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: June 18, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session on June 26, 2019 for the purpose of conferring with its legal counsel regarding potential litigation. Based on existing facts and circumstances, the Board of Directors is deciding whether to initiate litigation against another party. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(4). The facts and circumstances we as follows: The District purchased a crane from Sany Crane. The crane proved to be defective. The Board wishes to consider initiating litigation against Sany Crane based on Sany Crane's manufacture and sale of a defective crane. Respectfully submitted, By: Bradley .Hogin, G eral Counsel 1114541.2 WOODRUFF, SPRADLINeSMART CLOSED SESSION 2 555 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: June 18, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session on June 26, 2019 for the purpose of conferring with its legal counsel regarding potential litigation. Based on existing facts and circumstances, the Committee is deciding whether to initiate litigation against another party. The closed session will be held pursuant to the authority of California Government Code Section 54956.9(d)(4). The facts and circumstances are as follows: The District owns and operates a pipeline within an easement in the City of Cypress. The pipeline and easement run under the following properties: 8192 Willow Drive (APN 262-032-27), 8201 Denni Street(APN No. 262- 032-28), 8191 Willow Drive (APN No. 262-032-37), and 8187 Willow Drive (APN No. 262- 032-38). Improvements have been constructed on these properties that interfere with the District's easement Bud a planned project to replace the pipeline. The District will consider litigation to establish and enforce the District's access to the easement and thereby facilitate the pipe replacement project. Respec submitted, By: Bradley A.Hogin, G neral Counsel 1419456.1 CLOSED SESSION 3 WOODRUFF $PRADllN. . . . . .SMART. 555 ANION BOULEVARD, SUITE 1200 COS1A 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: June 18, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on June 26, 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 submitted, Bradley . Hogin, G eral Counsel 1419446.1 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.