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HomeMy WebLinkAbout07-24-2019 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, July 24, 2019 Regular Meeting of the s, 6:00 P.M. BOARD OF DIRECTORS Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER (Board Chairman David Shawver) INVOCATION AND PLEDGE OF ALLEGIANCE (Fred Smith, City of Buena Park) ROLL CALL (Clerk of the Board) DECLARATION OF QUORUM (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairperson and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: Employee Service Awards REPORTS: The Board Chairperson and the General Manager may present verbal reports on miscellaneous matters ofgeneml interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and willbe enacted, by the Board of Directors,after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board of Directors held on June 26, 2019. 07/24/2019 OCSD Boad of Directors'Agenda Page 1 of 8 RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 2. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following committees: A. Steering Committee Meeting of May 22, 2019 B. Operations Committee Meeting of June 5, 2019 C. La PA Committee Meeting of June 10, 2019 D. Administration Committee Meeting of June 12, 2019 E. GWRS Steering Committee Meeting of April 8, 2019 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JUNE 2019 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of June 2019. OPERATIONS COMMITTEE: 4. PLANT NO. 2 TRICKLING FILTER INFLUENT (FEED) PUMP REPAIRS (Rob Thompson) RECOMMENDATION: A. Approve a Sole Source Purchase Order to Vaughan's Industrial Repair Co., Inc for the repair and reinstallation of six influent pumps at the Plant No. 2 Trickling Filter Pump Station,for a total amount not to exceed $631,010; and B. Approve a contingency of$126,202 (20%). 5. RENEWAL AGREEMENT FOR LIQUID OXYGEN PURCHASE AND ASSOCIATED VAPORIZATION SYSTEM MAINTENANCE SPECIFICATION NO. C-2018-926BD (Rob Thompson) RECOMMENDATION: A. Approve Amendment No. 1 for a unit price increase of $0.0535 per centum cubic feet(22.8%)to the chemical supplier agreement with Airgas USA, LLC for the purchase of liquid oxygen, Specification No. C-2018-92613D, for the period beginning August 21, 2019 through August 20, 2020 for a unit price of $0.288 per centum cubic feet delivered, plus applicable sales tax, for a total estimated annual amount of$496,512; and B. Authorize unit price adjustment of up to 15% annually using mutually acceptable price indices for subsequent agreement renewal periods. 07/24/2019 OCSD Boad of Directors'Agenda Page 2 of 8 6. HEADWORKS REHABILITATION AND EXPANSION AT PLANT NO. 1, PROJECT NO. P1-105 (Kathy Millea) RECOMMENDATION: A. Consider, receive, and file the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, prepared by Carollo and Environmental Science Associates; and B. Adopt Resolution No. OCSD 19-07, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Mitigated Negative Declaration for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, adopting a Mitigation Monitoring and Reporting Program, and approving the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105." 7. PLANT NO. 2 TRUCKLOADING AUGER REPLACEMENT (Rob Thompson) RECOMMENDATION: A. Approve a Sole Source Purchase Order to Putzmeister for the procurement of up to 12 replacement Putzmeister augers along with their associated mounting components including gear motor assembly for the Plant No. 2 truckloading facility, for a total amount not to exceed $663,359; B. Approve payment of$198,008(30%)of the not-to-exceed amount at the time of order; and C. Approve a contingency of $132,672 (20%). 8. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2, PROJECT NO. 132-92 (Kathy Millea) RECOMMENDATION: Approve a contingency increase of $498,500 (1%) to the construction contract with Shimmick Construction Company, Inc. for Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, for a total contingency of$2,991,000 (6%). 9. SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 (Kathy Millea) RECOMMENDATION: Approve a contingency increase of $357,000 (5%) to the Professional Consultant Services Agreement with HDR Engineering, Inc.to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of$2,499,000 (35%). 07/24/2019 OCSD Boad of Directors'Agenda Page 3 of 8 10. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 (Kathy Millea) RECOMMENDATION: A. Approve a budget increase of$1,300,000 for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total budget of$10,300,000; B. Approve a Professional Construction Services Agreement with AECOM Technical Services, Inc. to provide construction support services for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $140,000; and C. Approve a contingency related to the Professional Construction Services Agreement of$14,000 (10%). ADMINISTRATION COMMITTEE: 11. 2020 BENEFITS INSURANCE RENEWAL (Celia Chandler) RECOMMENDATION: Approve the Orange County Sanitation District 2020 Benefits Insurance Renewal for the overall not-to-exceed amount of$13,137,895; and a one-time adjustment to 2019 Health &Welfare Insurance purchase order for the not-to-exceed (NTE) amount of$230,000, as specified below: A. WORKTERRA (medical, dental, and vision plans; Health Savings Accounts [HSA]; and Employee Assistance Program [EAP]) — Not to Exceed $12,377,584; B. Prudential (basic life, short- and long-term disability) — Not to Exceed $730,311; C. The Standard (EMT & Manager disability)— Not to Exceed $30,000; and D. Approve a contingency of$656,895 (5%). E. For the 2019 Plan Year, approve a one-time reallocation from the 2019 operating budget in the amount of$230,000 to be transferred to group health insurance benefits, resulting in a change in the total cost approved by the Board, from $12,894,770 to $13,124,770. The reallocation would not result in an increase to the overall 2019 budget. LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE: 12. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 (Jim Herberg) RECOMMENDATION: Receive and file the Legislative Affairs Update for the month of June 2019. =4/2019 OCSD goad of Directors'Agenda Page 4 of 8 13. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 (Jim Herberg) RECOMMENDATION: Receive and file the Public Affairs Update for the month of June 2019. STEERING COMMITTEE: 14. RIGHT OF ENTRY AGREEMENT (Lorenzo Tyner) RECOMMENDATION: A. Approve a Right of Entry Agreement for Orange County Transportation Authority, and its authorized agents, to enter upon Orange County Sanitation District's property located on the north side of Westminster Boulevard, East of Springdale Street, in Westminster, CA adjacent to the Interstate 405 Freeway for temporary use in connection with its project to widen the Interstate 405 Freeway for a term of four (4) years from the 30-day notice prior to the beginning of construction, in a form approved by Special Counsel; and B. Direct the Clerk of the Board to record the Agreement with the Orange County Clerk-Recorder. 15. FIRST AMENDMENT TO 800 MHZ LEASE (Lorenzo Tyner) RECOMMENDATION: Approve the First Amendment to the 800 MHz Lease Agreement with the County of Orange with the following modifications, in a form approved by Special Counsel: • Term of Lease shall expire May 4, 2023; with an optional one (1) additional five-year period • Increase the annual lease rate from $0.42 per square foot to $0.52 per square foot • Decrease the site footprint from 10,000 square feet to 4,784 square feet before December 31, 2019 16. COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA (Lan Wiborg) RECOMMENDATION: Approve a Cooperative Agreement among the County of Orange, Orange County Sanitation District, Orange County Water District (collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority (SAWPA), a joint powers authority, for the Orange County Parties agreeing to remain a part of the Santa Ana Funding Area covered by the One Water One Watershed Plan for a period of ten (10)years, from date of execution. 07/24/2019 OCSD goad of Directors'Agenda Page 5 of 8 NON-CONSENT: 17. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 (Kathy Millea) RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129; B. Award a Construction Contract to Abhe R Svoboda, Inc. for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $6,863,092; and C. Approve a contingency of$686,309 (10%). 18. FUEL CELL AND BOILER FACILITIES DEMOLITION, PROJECT NO. FE16-06 (Kathy Millea) RECOMMENDATION: A. Receive and file Bid Tabulation and Recommendation for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06; B. Receive and file Clarification Request No.1 issued to Innovative Construction Solutions (ICS) on May 21, 2019; C. Receive and file ICS's response to Clarification Request No.1 received on May 22, 2019; D. Receive and file Clarification Request No. 2 issued to Innovative Construction Solutions (ICS) on June 12, 2019; E. Receive and file ICS's response to Clarification Request No. 2 dated June 19, 2019; F. Reject low Bid received from ICS as non-responsive; G. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders on July 11, 2019; H. Award a Construction Contract to Mehta Mechanical Company, Inc. for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06, for a total amount not to exceed $474,000; and I. Approve a contingency amount of$47,400 (10%). =4/2019 OCSD goad of Directors'Agenda Page 6 of 8 INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the Agency's expense, per Government Code§53232.3(d). CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chairperson may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potential litigation,orpersonnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property, (b) matters of pending or potential litigation; (c)employment actions or negotiations with employee representatives;or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. (1) CONFER WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Laura Kalty, Liebert Cassidy Whitmore; James Herberg; Lorenzo Tyner; and Celia Chandler. Employee Organizations: 3 International Union of Operating Engineers, Loral 501; Orange County Employees Association; and the Supervisors and Professionals Group. (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. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: 07/24/2019 OCSD Board of Directors Agenda Page 7 of 8 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: At this time Board members may request staff to place an item on a future agenda. ADJOURNMENT: Adjourn the meeting until the Regular Meeting of the Board of Directors on August 28, 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(doced.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherberg(cbocsd.com. Assistant General Manager Lorenzo Tyner (714)593-7550 Ityneraocsd.com Assistant General Manager Rob Thompson (714)593-7310 rthomusonaocsd.com Director of Human Resources Celia Chandler (714)593-7202 cchandler(a)oced.com Director of Engineering Kathy Millea (714)593-7365 kmillea(@ocsd.com Director of Environmental Services Lan Wibo 714 593-7450 Iwibo omd.com 07/24/2019 OCSD Board of Directors'Agenda Page 8 of 8 ITEM NO. 1 Orange County Sanitation District MINUTES BOARD MEETING June 26, 2019 ANITAT� 9 U N 2 ,y t o � ftwowm0i l�NG THE ENV�Q, Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 612 612 01 9 Minutes of Board Meeting Page 1 of 15 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 June 26, 2019 at 6:13 p.m. in the Administration Building. Director Glenn Parker delivered the invocation and led the Pledge of Allegiance. 1. RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT BOARD OF DIRECTORS (Clerk of the Board) AGENCY DIRECTOR ALT. DIRECTOR City of Santa Ana Cecilia Iglesias Dave Penaloza (effective 5122119) The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X David Shawver, Chair Carol Warren A Brad Avery Joy Brenner X Allan Bernstein Chuck Puckett X Doug Chaffee Michelle Steel X Robert Collacott Chad Zimmerman X James M. Ferryman Bob Ooten A Phil Hawkins Brooke Jones X Cecilia Iglesias David Penaloza X Steven Jones John O'Neill X Peter Kim Marshall Goodman X Lucille Kring Denise Barnes X Sandra Massa-Lavitt Schelly Sustarsic A Mark Murphy Kim Nichols X Richard Murphy Dean Grose A Steve Nagel Patrick Harper X Andrew Nguyen Al Krippner X Glenn Parker Steven Vargas X Erik Peterson Mike Posey X Tim Shaw Tom Beamish Christina Shea X Anthony Kuo X Jesus J. Silva Jan Flory X Fred Smith Sunny Park A Chad Wanke Ward Smith X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry 06/26/2019 Minutes of Board Meeting Page 2 of 15 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; Jennifer Cabral; Megan Carlson; Al Garcia; and Tina Knapp. OTHERS PRESENT: Brad Hogin (General Counsel); Laura Kalty, Liebert Cassidy Whitmore (Special Counsel); Rob Harriers, RBH Associates; Kaitlin Tran,Art Perry, Dyana Bojayski, and Noelani Middenway, CMSD; James Fisler, Mesa Water; and Austin Mejia (Supervisor Chaffee's office). Clerk of the Board Kelly Lore announced that additional information in regard to Item No. 12 was received and distributed to the Board of Directors. She also stated that correspondence was received from Saliem Aregave, Orange County Employee Association (OCEA), and from Marc Brown, Supervisory and Professional Management Group (SPMG), regarding Closed Session Item No. CS-3 which was also distributed to the Board of Directors. PUBLIC COMMENTS: Saliem Aregaye, OCEA, and Marc Brown, President and Chief Negotiator SPMG, spoke in favor of a cost of living increase for the bargaining units. SPECIAL PRESENTATIONS: Chair Shawver announced that Director James Ferryman was being honored for his 30 years of service to the Board of Directors. The following special guests spoke: Former Board Chairmen Doug Davert, John Collins, Larry Crandall, Troy Edgar, and Greg Sebourn; Former General Manager Jim Ruth; CMSD Board Member Bob Ooten and CMSD District Engineer Rob Harriers. James Fisler, Mesa Water District, presented a proclamation to Director Ferryman; Clerk of the Board Kelly Lore read regrets from three former Board Chairpersons who could not be in attendance; and Mr. Herberg and Chair Shawver presented a Certificate of Appreciation from OCSD for Director Ferryman's dedication and support of the Sanitation District. Director Ferryman expressed his appreciation to all. REPORTS: Chair Shawver announced the OCSD's 65di Anniversary Open House&Centrifuge Ribbon Cutting VIP event would take place Saturday, July 27th from 9 a.m. - 12 p.m. General Manager Jim Herberg reported that he recently traveled to Washington D.C. with Board Vice-Chairman John Withers, and the Legislative and Public Affairs Chairman Kim and Vice Chairman Bernstein, where they met with Congressional and Senate Offices, EPA, and NACWA about current legislation, regulatory affairs, and funding opportunities. He stated that a full report will be presented to the Legislative and Public Affairs Committee and will be included in the July Board agenda. 06/26/2019 Minutes of Board Meeting Page 3 of 15 Mr. Herberg announced that the deadline to complete the Strategic Plan Survey is June 301h. A hard copy and electronic version were distributed to the Board of Directors. 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 May 22, 2019. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the Board Chair. 3. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following committees: A. 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) Received and filed 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) MOVED, SECONDED, AND DULY CARRIED TO: 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-201 9-1 01 96D, for an amount not to exceed $289,900; and B. Approve a contingency of$57,980 (20%). 06/26/2019 Minutes of Board Meeting Page 4 of 15 AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 6. FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: 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%). AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanks 7. PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 06/26/2019 Minutes of Board Meeting Page 5 of 15 8. PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: 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%). AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 9. PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: 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; 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 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%). AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None 06/26/2019 Minutes of Board Meeting Page 6 of 15 ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanks ADMINISTRATION COMMITTEE: 10. FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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")". AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 11. ENVIRONMENTAL REGULATORY REPORTS (Lan Wiborg) MOVED, SECONDED, AND DULY CARRIED TO: 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) MOVED, SECONDED, AND DULY CARRIED TO: 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. 06/26/2019 Minutes of Board Meeting Page 7 of 15 AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 13. FLEET MANAGEMENT INFORMATION SYSTEM (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: 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-2018-10036D, for a total amount not to exceed $424,101; and B. Approve a contingency of$42,410 (10%). AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanks 14. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT — BIOSOLIDS MANAGEMENT (Lan Wiborg) MOVED, SECONDED, AND DULY CARRIED TO: 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. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc 06/26/2019 Minutes of Board Meeting Page 8 of 15 NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 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) MOVED, SECONDED, AND DULY CARRIED TO: 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'. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 16. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Legislative Affairs Update for the month of May 2019. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 17. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Public Affairs Update for the month of May 2019. 06/26/2019 Minutes of Board Meeting Page 9 of 15 AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke STEERING COMMITTEE: 18. GENERAL MANAGER'S FY 2018-2019 WORK PLAN YEAR-END UPDATE (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Receive and File the General Manager's FY 2018-2019 Work Plan Year-End Update. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke Chair Shawver recessed the Orange County Sanitation District Board of Directors Meeting at 7:03 p.m. 06/26/2019 Minutes of Board Meeting Page 10 of 15 ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION CALL TO ORDER: Chair Shawver called the Board of Directors, Orange County Sanitation District Financing Corporation meeting to order at 7:03 p.m. Kelly Lore, Secretary of the Financing Corporation, declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X David Shawver, Chair Carol Warren A Brad Avery Joy Brenner X Allan Bernstein Chuck Puckett X Doug Chaffee Michelle Steel X Robert Collacott Chad Zimmerman X James M. Ferryman Bob Ooten A Phil Hawkins Brooke Jones X Cecilia Iglesias David Penaloza X Steven Jones John O'Neill X Peter Kim Marshall Goodman X Lucille Kring Denise Barnes X Sandra Massa-Lavitt Schelly Sustarsic A Mark Murphy Kim Nichols X Richard Murphy Dean Grose A Steve Nagel Patrick Harper X Andrew Nguyen Al Krippner X Glenn Parker Steven Vargas X Erik Peterson Mike Posey X Tim Shaw Tom Beamish Christina Shea X Anthony Kuo X Jesus J. Silva Jan Flory X Fred Smith Sunny Park A Chad Wanks 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. 06/26/2019 Minutes of Board Meeting Page 11 of 15 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 27, 2018 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) Assistant General Manager Lorenzo Tyner provided a verbal overview of the annual status report. MOVED SECONDED AND DULY CARRIED TO: Receive and File the Annual Status Report of the Orange County Sanitation District Financing Corporation. AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke Chair Shawver adjourned the meeting of the Board of Directors, Orange County Sanitation District Financing Corporation at 7:04 p.m. ...................................... 06/26/2019 Minutes of Board Meeting Page 12 of 15 Chair Shawver reconvened the meeting of the Board of Directors, Orange County Sanitation District at 7:04 p.m. NON-CONSENT: 19. PROPOSED FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Mr. Herberg provided a brief overview of the Budget Update and noted the key focus areas including: Expanded Water Recycling; Infrastructure Reliability and Operational Sustainability; Safety and Security; Operating Expense Cost Containment; Biosolids Management; and Staffing Cost Containment. He stated that Operating and Debt Service Budgets approximate the initial two-year forecast with no increases. MOVED. SECONDED, AND DULY CARRIED TO: 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 137,027,268 153,377,431 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/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). AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke 20. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 (Lorenzo Tyner) Mr. Tyner provided a brief overview of the described routine action. MOVED. SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 19-06, entitled: "A Resolution of the Board of Directors of the Orange County 06/26/2019 Minutes of Board Meeting Page 13 of 15 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". AYES: Bernstein; Chaffee; Collacott; Ferryman; Iglesias; S. Jones; Kim; Kring; Kuo (Alternate); Massa-Lavitt; R. Murphy; Nguyen; Parker; Peterson; Shaw; Shawver; Silva; F. Smith;Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Avery; Hawkins; M. Murphy; Nagel and Wanke INFORMATION ITEMS: None. AB 1234 DISCLOSURE REPORTS: Director Ferryman announced that he will be attending the SARFCA meeting on June 27th. Board Vice-Chair John Withers; and Directors Peter Kim and Allan Bernstein provided a report of their recent trip to Washington DC. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54956.9(d)(4) & 54957.6: The Board convened in closed session at 7:15 p.m. to discuss two items. Closed Session Item No. CS-2 was not heard. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 7:36 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel Brad Hogin did not provide a report. 06/26/2019 Minutes of Board Meeting Page 14 of 15 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: Director Kring thanked staff for their informational presentation to the Anaheim City Council regarding the Newhope-Placentia Trunk Replacement, Project No. 2-72 on St. College Boulevard. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None requested. ADJOURNMENT: At 7:38 p.m., Chair Shawver adjourned the meeting until the Regular Meeting of the Board of Directors to be held on July 24, 2019 at 6:00 p.m. Submitted by: Kelly A. Lore, MMC Clerk of the Board 06/26/2019 Minutes of Board Meeting Page 15 of 15 ITEM NO. 2 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, May 22, 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, May 22, 2019 at 5:00 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, LaPA Committee Chair Manager Glenn Parker, Member-At-Large Celia Chandler, Director of Human Chad Wanke, Administration Committee Resources Chair Kathy Millea, Director of Engineering Lan Wiborg, Director of Environmental COMMITTEE MEMBERS ABSENT: Services Tim Shaw, Member-At-Large Kelly Lore, Clerk of the Board Stephanie Barran Jennifer Cabral Thys DeVries Damein Fabrizio Al Garcia Tom Grant Tina Knapp Laura Maravilla Jeff Mohr Wally Ritchie Thomas Vu OTHERS PRESENT: Brad Hogin, General Counsel Gary Weisberg, Woodruff, Spradlin & Smart Roger Cerda, Alston & Bird, Special Counsel Laura Kalty, Liebert Cassidy Whitmore, Special Counsel 05/22/2019 Steering Committee Minutes Page 1 of 3 PUBLIC COMMENTS: No public comments were provided. REPORTS: Chair Shawver did not provide a report. General Manager Jim Herberg stated that the 35 percent Preliminary Design Report for the new Headquarters Building has been received and is currently undergoing review. The project continues to move forward as planned. Mr. Herberg stated that a Headquarters Complex Ad Hoc Committee meeting has been called for June 20 to review the design. 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 April 24, 2019. AYES: Collacott, Kim, Parker, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shaw 2. PROPERTY MANAGEMENT SERVICES FOR 18350 MT. LANGLEY STREET, 18429 PACIFIC STREET, 18368-18375 AND 18410-18436 BANDILIER CIRCLE, FOUNTAIN VALLEY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors 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: Collacott, Kim, Parker, Shawver, Wanke and Withers NOES: None ABSTENTIONS: None ABSENT: Shaw NON-CONSENT ITEMS: None. INFORMATION ITEMS: None. 051=019 Steering committee Minutes Page 2 of 3 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 5:05 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 5:57 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. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Chair Shawver declared the meeting adjourned at 5:57 p.m. to the next Steering Committee meeting to be held on Wednesday, June 26, 2019 at 5:00 p.m. Sub itted by: Kell A. L e, MMC Cle k of t Board 05/=019 Steenng Committee Minutes Page 3 of 3 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, June 5, 2019, 5:00 p.m. A meeting of the Operations Committee was called to order by Committee Chair Bob Collacott on Wednesday, June 5, 2019 at 5:00 p.m. in the Administration Building. Alternate Director Stacy Berry led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Robert Collacott, Chair Jim Herberg, General Manager Allan Bernstein Rob Thompson, Assistant General Manager Stacy Berry (Alternate) Lorenzo Tyner, Assistant General Manager Joy Brenner (Alternate) Celia Chandler, Director of Human Resources Doug Chaffee Kathy Millea, Director of Engineering Brooke Jones (Alternate) Lan Wiborg, Director of Environmental Services Steve Jones Tina Knapp, Assistant Clerk of the Board Lucille Kring Bob Bell Tim Shaw Jennifer Cabral Jesus J. Silva Don Cutler Fred Smith Mike Dorman John Withers, Board Vice-Chair Dean Fisher David Shawver, Board Chair Alfredo Garcia Ted Gerber COMMITTEE MEMBERS ABSENT: Mark Kawamoto Sandra Massa-Lavitt Jeff Mohr Shahrzad Namini Adam Nazaroff Victoria Pilko Tyler Ramirez Roya Sohanaki Steve Speakman Don Stokes Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Bob Ooten, Alternate Director(CMSD) Austin Melia (Supervisor Chaffee's office) Rich ten Bosch, Black &Veatch Cherylle Barrido, Brown and Caldwell PUBLIC COMMENTS: None. 06/052019 Operations Committee Minutes Page 1 of 6 REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. REPORT OF COMMITTEE CHAIR: Committee Chair Collacott announced that Late Communication pertaining to Item No. 9 regarding the budget update was provided this evening in the blue folders. Chair Collacott also announced that at the Board of Directors meeting on June 26, OCSD will celebrate the 30t' anniversary of Director Jim Ferryman's service to the OCSD Board and casual attire is encouraged. CONSENT CALENDAR: Item No. 3 was pulled by Alternate Director Brooke Jones for separate discussion and a vote was taken separate from the balance of the Consent Calendar. 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the Special meeting of the Operations Committee held on May 1, 2019. AYES: Bernstein, Berry (Alternate), Brenner (Alternate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, F. Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt and Silva 2. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE CONDENSER REPAIR, PROJECT NO. MP-257 (Kathy Millea) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Bernstein, Berry (Alternate), Brenner (Alternate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, F. Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt and Silva 06/05/2019 Operations Committee Minutes Page 2 of 6 4. PLANT NO. 2 TRICKLING FILTER CLARIFIER "E" REPAIR (Rob Thompson) MOVED, SECONDED. AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Bernstein, Berry (Alternate), Brenner (Alternate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, F. Smith and Wdhers NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt and Silva Item No. 3 was pulled by Alternate Director Brooke Jones for separate discussion and a vote was taken separate from the balance of the Consent Calendar. Director Silva arrived at the meeting at 5:05 p.m. 3. FLEET PURCHASE OF EIGHT SEDANS AND FOUR TRANSIT VANS (Rob Thompson) Assistant General Manager Rob Thompson provided a verbal overview of this item and addressed questions regarding the reason for the low mileage on the vehicles scheduled for replacement. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Bernstein, Berry (Alternate), Brenner (Altemate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, Silva, F. Smith and Withers NOES: None 06105' 19 Operations Committee Minutes Page 3 of ABSTENTIONS: None ABSENT: Massa-Lavitt NON-CONSENT: 5. PLANT NO. 2 SECONDARY CLARIFIER REPAIRS, PROJECT NO. MP-248 (Kathy Millea) Director of Engineering Kathy Millea introduced Engineering Manager Jeff Mohr who provided a verbal overview of this item. MOVED SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Bernstein, Berry (Alternate), Brenner (Alternate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, Silva, F. Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt 6. PLANT NO. 1 ICS NETWORK EXTENSION, PROJECT NO. FE17-05 (Kathy Millea) Director of Engineering Kathy Millea introduced Engineering Manager Mike Dorman who provided a verbal overview of this item. Mr. Dorman provided the dollar amount of the bid received for the low bid that was deemed non-responsive in response to an inquiry made by the Committee. MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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; 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; D6105/ 019 Operations Ca tmittee Minutes Page 4 of 6 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%). AYES: Bernstein, Berry (Alternate), Brenner (Alternate), Chaffee, Collacott, B. Jones (Alternate), S. Jones, Kring, Shaw, Shawver, Silva, F. Smith and Withers NOES: None ABSTENTIONS: None ABSENT: Massa-Lavitt INFORMATION ITEMS: 7. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION (Lan Wiborg) Each month, staff provides an informational presentation on topics of interest to the Board of Directors. This month's topic: Orange County Sanitation District Environmental Services Resource Protection: Protecting Water, Biosolids, and Gas for Reuse. Lan Wiborg, Director of Environmental Services, provided an informative PowerPoint presentation on this that included an overview of the divisions within Environmental Services department, resource recovery at OCSD, OCSD source control, an overview of the Clean Water Act, an overview of an industrial user (definition and requirements), and non-industrial source control and the urban runoff program. Roya Sohanaki, Engineering Manager, presented information on the awards received by the OCSD program and an overview of the effectiveness of the source control program. Ms. Wiborg and Ms. Sohanaki also answered questions from the Committee regarding program requirements. 8. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 (Kathy Millea) Staff will present information regarding the Preliminary Design Report cost estimate and its anticipated impact to the FY 2019-20 Budget. Kathy Millea, Director of Engineering, provided a PowerPoint presentation that reviewed this project, project objectives, construction cost estimates, project budget changes, total CIP budget authority, and top budget increases. General Manager Herberg and Ms. Millea answered questions from the Committee regarding specific project needs. O6/0512019 Operations Commipee Minutes Page 5 of 6 9. FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner provided a PowerPoint presentation for this item that included an overview of revenue sources, expenses, operating expenses, the capital improvement program,debt service, and closed with a recap. Mr. Tyner answered questions from the Committee pertaining to interest rates reserves. DEPARTMENT HEAD REPORTS: None. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: Board Chair David Shawver indicated that Board Vice-Chair John Withers, Director Bernstein, and Director Kim will be traveling to Washington, DC the week of June 17 for advocacy days. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT Chair Collacott declared the meeting adjourned at 5:45 p.m. to the meeting to be held on Wednesday, July 10, 2019 at 5:00 p.m. Submitted by, ,,a a�' ", Ti a K app, MMC Assistant Clerk of the Board 06/052019 Operations Committee Minutes Page 6 of 6 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, June 10, 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, June 10, 2019 at 12:01 p.m. in the Administration Building of the Orange County Sanitation District. Chair Kim led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Peter Kim, Chair Jim Herberg, General Manager Allan Bernstein, Vice-Chair Lorenzo Tyner, Assistant General Manager Lucille Kring, Member-At-Large Kathy Millea, Director of Engineering Christina Shea, Member-At-Large Lan Wiborg, Director of Environmental Services David Shawver, Board Chair Tina Knapp, Assistant Clerk of the Board John Withers, Board Vice-Chair Jennifer Cabral Tanya Chong COMMITTEE MEMBERS ABSENT: Daisy Covarrubias Erik Peterson, Member-At-Large Lisa Frigo Rebecca Long Kelly Lore Tyler Ramirez Wally Ritchie 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: Committee Chair Kim indicated that Board Vice-Chair John Withers, Committee Vice-Chair Bernstein, and he will be traveling to Washington, D.C. the week of June 17 for advocacy days. REPORT OF GENERAL MANAGER: General Manager Jim Herberg indicated that Item No. 2 is interpreted by the Sanitation District as being storage related. 06/10/2019 LegWative and Public Affairs Canmdee Minutes Page 1 of CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED. and DULY CARRIED TO: Approve minutes for the Committee meeting held on May 13, 2019. AYES: Bernstein, Kim, Kring, Shawver, Shea, and Withers NOES: None ABSTENTIONS: None ABSENT: Peterson 2. POSITION LETTER: ASSEMBLY BILL 1184 (Jim Herberg) MOVED, SECONDED, AND DULY CARRIED TO: Approve letter of Oppose for Assembly Bill 1184 - Public records: writing transmitted by electronic mail: retention (Gloria). AYES: Bernstein, Kim, Kring, Shawver, Shea, and Withers NOES: None ABSTENTIONS: None ABSENT: Peterson NON-CONSENT: 3, TITLE XVI BUREAU OF RECLAMATION FUNDING OPPORTUNITY FOR EFFLUENT REUSE PROJECT UNDER THE WATER INFRASTRUCTURE IMPROVEMENTS FOR THE NATION (WIIN) ACT (Jim Herberg) Senior Public Affairs Specialist Rebecca Long provided an overview of this item. Mr. Herberg and Ms. Long responded to questions from the Committee regarding the amount of funding being applied for. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-XX 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". AYES: Bernstein, Kim, Kring, Shawver, Shea, and Withers NOES: None ABSTENTIONS: None ABSENT: Peterson 0611012019 Legislative and Public AM9Us Committee Minutes Page 2 of 4 4. LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) Ms. Long indicated that October 25 is the tentative date for this year's State of the District event, which will be held at the Mile Square Golf Course. Eric Sapirstein, ENS Resources, provided a PowerPoint presentation and a brief overview of his monthly report which included: infrastructure funding and policymaking, permit terms legislation, and PFAS/PFOAS update. Board Vice-Chair John Withers inquired about the possibility of classifying the finalization of the GWRS project as stornwater related. In response to a question from Mr. Herberg, Mr. Sapirstein indicated that the Orange County Water District is the lead agency on the delegation letter being drafted to the USEPA pertaining to PFAS. Director Shea inquired about her participation at the US Conference of Mayors and what items might be of focus for her. Staff will work with Mr. Sapirstein to provide talking points and general information to Director Shea. Mr. Herberg indicated that staff is monitoring the PFAS issue. Eric O'Donnell, TPA, provided a PowerPoint presentation that included information on the current legislative schedule and deadlines, FY 2019-2020 budget, water tax update, and 2019 legislation. Mr. O'Donnell also reviewed the current status of AB 1672 (Bloom) — Flushable Wipes and SB 332 (Hertzberg) — Ocean Discharge. Committee Chair Kim deemed the Legislative Affairs Update for the month of May 2019 received and filed. 5. PUBLIC AFFAIRS UPDATE FOR THE MONTH OF MAY 2019 (Jim Herberg) Jennifer Cabral, Public Affairs Supervisor, provided a PowerPoint presentation which reviewed outreach efforts made and meetings attended overthe last month, highlighting OCSD's participation in the Crisis/Risk Communications Strategy. Ms. Cabral thanked the Board Chair and Board Vice-Chair for their participation in the Honor Walk in May. Ms. Cabral provided a definition of what impressions means as it pertains to social media. Board Chair Shawver indicated that an online contest offering the winner a tour of OCSD might gamer an increase in interaction with our public. Ms. Cabral welcomed Kelly Newell, Public Affairs Specialist, back from maternity leave and thanked Daisy Covarrubias, Senior Staff Analyst, for assisting Public Affairs while Kelly was on leave. Ms. Cabral also provided a brief description of upcoming events including information on the centrifuge facility ribbon cutting being held on July 27. In response to a comment made by Board Vice-Chair Withers, Ms. Cabral assured the Committee that staff is sensitive to project activity in Huntington Beach, near Plant No. 2, and is collaborating with city staff and the city of Huntington Beach Director appointed to the OCSD Board as appropriate. O51102019 Legislative and Public Affairs Cannniltee Minutes Page 3 of 4 Committee Chair Kim deemed the Public Affairs Update for the month of May 2019 received and filed. INFORMATION ITEMS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. BOARD OF DIRECTORS INITIATED ITEMS FOR A FUTURE MEETING: None. ADJOURNMENT: Committee Chair Kim declared the meeting adjourned at 12:49 p.m. to the next Legislative and Public Affairs Committee meeting, Monday, July 8, 2019 at 3:30 p.m. Submitted by: Tin Kn M C As Till leric of the Board 0611012019 Legislative and Public Affairs Committee Minutes Page 4 of 4 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, June 12, 2019 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Vice-Chairman Richard Murphy on June 12, 2019 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Director Mark Murphy led the Flag Salute. A quorum was declared present as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Richard Murphy, Vice-Chairman Jim Herberg, General Manager James Ferryman Lorenzo Tyner, Assistant General Manager Cecilia Iglesias Celia Chandler, Director of Human Resources Peter Kim Kathy Millea, Director of Engineering Mark Murphy Lan Wiborg, Director of Environmental Services Steve Nagel Kelly Lore, Clerk of the Board Andrew Nguyen Bob Bell Glenn Parker Jennifer Cabral Erik Peterson Lisa Frigo Christina Shea Al Garcia David Shawver, Board Chairman Ted Gerber John Withers, Board Vice-Chairman Brad Hamilton Heidi Janz COMMITTEE MEMBERS ABSENT: Mark Kawamoto Chad Wanke, Chairman Laura Maravilla Joshua Martinez Tom Meregillano Jeff Mohr Victoria Pilko Tyler Ramirez Wally Ritchie Roya Sohanaki John Swindler Eros Yong Paula Zeller OTHERS PRESENT: Brad Hogin, General Counsel Dennis Mulqueeney, Alliant PUBLIC COMMENTS: None. 06/12/2019 Administration Committee Minutes Page 1 of 7 REPORTS: Vice-Chair Murphy did not provide a report. General Manager Jim Herberg stated that a Strategic Planning Survey had been entailed to all Board Members for their input. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO Approve Minutes of the May 8, 2019 Administration Committee Meeting. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 2. FY 2019-20 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 19-XX, 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")". AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 3. ENVIRONMENTAL REGULATORY REPORTS (Lan Wiborg) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None O6/122019 Mininistiation committee Minutes Page 2 of 7 ABSTENTIONS: None ABSENT: Shea, Wanke and Withers 4. PHYSICAL SECURITY ACCESS SYSTEM (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Authorize an additional $108.980 to Purchase Order No. 106467-OB with Maxim Security Systems to service the card access, surveillance cameras, and intercom systems, and to maintain physical security systems in accordance with the terms and conditions of Bid Specification No. S-2018-983, for a total amount not to exceed $198,980 for the period ending October 22, 2019. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver NOES: None ABSTENTIONS: None ABSENT: Shea, Wanke and Withers Director Shea arrived at the meeting at 5:03 p.m. Board Vice-Chair John Withers arrived at the meeting at 5:16 p.m. NON-CONSENT: 5. 2019-20 OPERATIONAL PROPERTY-LIABILITY INSURANCE RENEWALS (Celia Chandler) Director of Human Resources Celia Chandler provided a brief overview of the item and introduced Dennis Mulqueeney, broker from Aliant, who provided a PowerPoint presentation which included information regarding: current state of the insurance market; insurance marketing activities in Property& Liability and Excess Workers' Compensation; OCSD historic rates and an overview of the renewal not to exceed costs. Mr. Mulqueeney responded to questions regarding: probable premium estimates; reductions to premiums; alternative dispute resolution; recent asset values up to 2.147 billion; self-insurance retentions (SIR); admitted v. non- admitted carriers; rating of carriers; and deductibles v. SIR. MOVED SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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 OW12/2019 Administration committee Minutes Page 3 of 7 • 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. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke 6. FLEET MANAGEMENT INFORMATION SYSTEM (Lorenzo Tyner) Assistant General Manager Lorenzo Tyner provided a brief description of the item. MOVED SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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%). AYES: Ferryman, Iglesias, Kim, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: M. Murphy ABSENT: Wanke 7. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT — BIOSOLIDS MANAGEMENT (Lan Wiborg) Director of Environmental Services Lan Wiborg provided a brief description of the item. MOVED SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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 tans 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 06/12/2019 Administration committee Minetea Page 4 of 7 B. Approve a 10% contingency of$400,000 in the event the Sanitation District needs to send additional loads to this compost option. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanke INFORMATION ITEMS: 8. DIGESTER GAS FACILITIES REHABILITATION, PROJECT NO. J-124 (Kathy Millea) Director of Engineering Kathy Millea provided a PowerPoint presentation that reviewed the project and the preliminary design report including: Project objectives; construction cost estimates; project budget changes; total CIP budget authority; and top budget increases. Ms. Millea and Mr. Herbert responded to questions regarding alternatives to the projects. NON-CONSENT: 9. PROPOSED FY 2019-20 BUDGET UPDATE (Lorenzo Tyner) Mr. Tyner provided a brief update of the Budget process and introduced Controller Wally Ritchie who provided PowerPoint presentation which included an overview of revenue, expenses, CIP, and debt service. Mr. Ritchie stated that the Budget Update contains an errata sheet which includes an increase to the operating units and a few minor corrections made after the publication of the budget book. Mr. Ritchie and Mr. Tyner responded to questions regarding the allocation for rehabilitation/replacement. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: 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/Sale(') 3,500,000 5,000,000 TOTAL $383,217,628 $605,848,918 0511212019 AdminisUation Committee Minutes Page 5 of 0)Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15). AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanks 10. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2019-20 (Lorenzo Tyner) Mr. Tyner provided a brief description of the item. MOVED. SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 1g-XX, 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'. AYES: Ferryman, Iglesias, Kim, M. Murphy, R. Murphy, Nagel, Nguyen, Parker, Peterson, Shawver, Shea and Withers NOES: None ABSTENTIONS: None ABSENT: Wanks INFORMATION ITEMS: 11. ORANGE COUNTY SANITATION DISTRICT ENVIRONMENTAL SERVICES RESOURCE PROTECTION (Lan Wiborg) Lan Wiborg, Director of Environmental Services, provided an informative PowerPoint presentation that included: an overview of the divisions within Environmental Services Department; resource recovery at OCSD; OCSD source control; an overview of the Clean Water Act; an overview of an industrial user (definition and requirements); and non-industrial source control and the urban runoff program. Roya Sohanaki, Engineering Manager, presented information on the awards received by the OCSD program and an overview of the effectiveness of the source control program. DEPARTMENT HEAD REPORTS: None. 06112mig Administration Committee Minutes Page 6 of 7 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: None. ADJOURNMENT: Vice-Chair Murphy declared the meeting adjourned at 5:45 p.m. to the Special meeting to be held on Wednesday, July 17, 2019 at 5:00 p.m. Submitted by: K II A. L MC Cie r oft a card 0 611 2 2 01 9 Administration Committee Minutes Page 7 of 7 MINUTES OF THE MEETING GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE Monday, April 8, 2019 OCSD Director Shawver called the Groundwater Replenishment System Steering Committee meeting to order in the Boardroom at the District office. Following the Pledge of Allegiance to the flag, the Secretary called the roll and reported a quorum. Committee Members David Shawver Roger Yoh James Ferryman (absent) Cathy Green Tim Shaw Vicente Sarmiento (absent) Alternates Jesus Silva Phil Hawkins Erik Peterson Tri Ta Dina Nguyen (absent) Steve Sheldon (absent) OCWD Director Bilodeau was in attendance. OCWD Staff 1 OCSD Staff John Kennedy, Eleanor Torres Jim Herbera Mehul Patel Sandv Scott-Roberts I Jennifer Cabral Christina Fuller Assistant District Secretary CONSENT CALENDAR The Consent Calendar was approved upon motion by Director Green, seconded by Director Yoh and carried (4-0-21 as follows. Yes—Shawver, Yoh, Green, Shaw 'Directors Peterson and Hawkins abstained 1. Minutes of Previous Meeting The minutes of the GWRS Steering Committee meeting held January 14, 2019 are approved as presented. INFORMATIONAL ITEMS 2. GWRS Operating Budget Summary Executive Director of Operations/GWRS Mehul Patel reminded the Committee that OCWO is required to prepare and submit its annual operating budget for the GWRS to OCSD. He stated the budget will be submitted to the OCWD Board of Directors for its consideration at the April 2019 Board meeting. Mr. Patel reviewed the details of the recommended GWRS operational budget and advised of the joint agency efforts to help control costs. 3. GWRS Operations Update Mr. Patel reported that the average daily average production for the quarter, January through March 2019, was 97 mgd. He stated that as of March 31, 2019, the GWRS Fiscal Year to Date production total is 67,991-acre feet (af) which Is 9,332 of below the target production of 77,323 of for the 18/19 fiscal year. 4. Update on GWRS Final Expansion GWRS program Manager Sandy Scott-Roberts reported that staff from OCSD and OCWD are completing the design phase of the GWRS Final Expansion Project. She provided an update on the status of project elements and reported that all project components are progressing as anticipated. She reported that in March 2019, the OCWD Board of Directors approved authorization for staff to advertise the GWRSFE Project(Contract 1 which includes the AWTF Improvements, pump station and flow equalization tanks at Plant 2)for construction bid. Ms. Scott-Roberts stated the engineer's estimate for Contract 1 is $189 million. She advised that staff anticipates awarding the project in Fall 2019 to the responsive low bidder and that construction is estimated to last 3 years with a completion date of first quarter 2023. 5. Quarterly Outreach Report[January—March 20191 Director of Public Affairs Eleanor Torres stated the report and media clips are included in the packet. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 5:40 p.m. O� Gv'UeN OCSD Dire or avid Shawver, Chair 2 BOARD OF DIRECTORS Meeting Date TOBE.Of Dk. -- 07/24/19 AGENDA REPORT Item Item 3 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 JUNE 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of June 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 June 30, 2019. RELEVANT STANDARDS CA Government Code Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following aftachment(s)is included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Report of the Investment Transactions for the month ended June 30, 2019 Page 1 of 1 U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Ent,Date CUSIP Id Explanation U�ita Pdoe Net Cash Amt Cost GaintLoss ACQUISITIONS O6/0312019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 64,769.8000 1,000000 -64,769.80 64,769.80 0.00 06/04/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 23,095.0400 1.000000 -23,095.04 23,095.04 0.00 06I0 MO19 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 58,362.0400 1.000000 .58.362.04 58,362.04 0.00 O610612019 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 5,375.0000 1.000000 -5.375.00 5,375.00 0.00 06/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 26,250.0000 1.000000 -26,250.00 26,250.00 0.00 06/07/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00 06110MO19 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 81,250.0000 1.000000 -81,250.00 81,250.00 0.00 06/10/2019 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 256,250.0000 1.000000 -256.250.00 256,250.00 0.00 06/11/2019 912828WJ5 PURCHASED PAR VALUE OF U S TREASURY NT 2.500% 5115/24 IRBC CAPITAL 7,000,000.0000 1,027578 -7,193,046.88 7,193,046.88 0.00 MARKETS,LLC/7,000,000 PAR VALUE AT 102.75781257% 06/11/2019 31846V567 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 2,000,000.0000 1.000000 -2,000,000.00 2,000,000.00 0.00 0611IM019 31846V567 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 28,917.7800 1.000000 .28.917.78 28,917.78 0.00 06/12/2019 31846V567 PURCHASED UNITS OF FI RST AM GOUT OB FD CL Z 43,750.0000 1.000000 43.750.00 43,750.00 0.00 06/13/2019 31846V567 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 5,000,000.00 5,000,000.00 0.00 06/13/2019 31846V567 PURCHASED UNITS OF FI RST AM DOW OB FD CL Z 11,138,790.3300 1.000000 -11,138,790.33 11,138,790.33 0.00 06114MO19 89114QCA4 PURCHASED PAR VALUE OF TORONTO DOMINION MTN 2.650% WIM4/MORGAN 3,000.000.0000 1.000190 3,000,570.00 3.000,570.00 0.00 STANLEY&CO.LLC/3,000,000 PAR VALUE AT 100.019% 06/17/2019 3130A1XJ2 PURCHASED PAR VALUE OF F H L B 2.875% 6I14/24/MORGANSTANLEY& 5,700,000.0000 1.043010 5,945,157.00 5,945,157.00 0.00 CO.LLC15,700,000 PAR VALUE AT 104.301 % 06/17/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 417.5200 1,000000 317.52 417.52 0.00 06/18/2019 31846VS67 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 368,908.8300 1.000000 368,908.83 368,908.83 0.00 06119MO19 3130A1XJ2 PURCHASED PAR VALUE OF F H L B 2.875% 6114124 INOMURA SECURITIES 5,410.000.0000 1.N3230 -5,643,874.30 5,643,874.30 0.00 INTERNATIONA15,410,000 PAR VALUE AT 104.323% 06W2019 62479MVK6 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 8/19/19IMUFG UNION 11,125,000.0000 0.996083 -11,081.427.08 11.081,427.08 0.00 BK NA/MMIIPIMS/IPAI11,125,000 PAR VALUE AT 99.6083333% 06/20/2019 62479MVK6 PURCHASED PAR VALUE OF MUFG BANK LTD NY BRAN C P 8/19/191MUFG UNION 3,290,000.0000 0,996083 3,277,114.17 3,277,114.17 0.00 BK NAIMMIIPIMS/IPAI3,290,000 PAR VALUE AT 99.60833343% O6120/2019 31846VS67 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 2,160,000.0000 1.000000 -2,160,000.00 2,160,000.00 0.00 06120MO19 31846V567 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 10,023,112.6000 1.000000 .10,023.112.60 10.023,112.60 0.00 O612112019 31846V567 PURCHASED UNITS OF FI RST AM GOUT OB FD CL Z 9,759.5800 1.000000 -9.759.58 9,759.58 0.00 06/24/2019 31846V567 PURCHASED UNITS OF FI RST AM GOVT OB FD CL Z 1,354,866.3300 1,000000 -1,354,866.33 1,354,866.33 0.00 O6125/2019 96130AAK4 PURCHASED PAR VALUE OF WESTPAC BIKING C D 2.970%10118119IRBC CAPITAL 1,500,000.0000 1.002202 -1,503,302.80 1,503,302.80 0.00 MARKETS,LLC/1,500,000 PAR VALUE AT 100,22018667% 06125MO19 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 5,000,000.0000 1.000000 .5,000,000.00 5.000,000.00 0.00 O612512019 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 1,086,050.4500 1.000000 -1,086.050.45 1.086,050.45 0.00 06125/2019 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,715.6100 1.000000 -59,715.61 59,715.61 0.00 1 of 8 U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 EntI,Date CUSIP Id Explanation Units Price Net Cash Amt C.�t GainlL.. O6/2612019 31846V567 PURCHASED UNITS OF FIRSTAM GOVT OB FD CL Z 78,406.6400 1.000000 -78,406.64 78,40664 0,00 06128/2019 313384LW7 PURCHASED PAR VALUE OF F H L B DISC NTS 9118119/MIZUHO SECURITIES 2,850,000.0000 0.994989 .2,836.718.33 2.835,718.33 0,00 USA FXD INC/2,850,000 PAR VALUE AT 99.49888877% O6/28/2019 912828H52 PURCHASED PAR VALUE OF U S TREASURY NT 1.250% 1/31/20/NOMURA 3,500,000.0000 0.995273 -3,483,457.03 3,483,457.03 0,00 SECURITIES INTERNATIONA/3,500,000 PAR VALUE AT 99.52734371 % TOTAL ACQUISITIONS 83,243,047.5500 -83,831,715A4 83,831,715.14 0.00 DISPOSITIONS 06107/2019 89113X3W2 MATURED PAR VALUE OF TORONTO DOMINION C D 2.700% 6/07/191,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -1,000,000.00 0.00 VALUE AT 100% 06/11/2019 06370RQY8 MATURED PAR VALUE OF BANK MONTREAL C D 2.860% 6/11119 2.000,000 PAR -2,000,000.0000 1.000000 2,000.000.00 -2,000,000.00 0.00 VALUE AT 100% 06/11/2019 31846V567 SOLD UNITS OF FIRST AM GOV7 OB FD CIE Z -7,168,386.5500 1.000000 7,168,386.55 -7,168,386.55 0.00 O6113/2019 313384GV5 MATURED PAR VALUE OF F H L B DISC NTS 6/13119 5,000,000 PAR VALUE AT -5,000,000.0000 1.000000 4,971,094.44 4,971,094.44 0.00 100% O6113/2019 912796RU5 MATURED PAR VALUE OF U S TREASURY BILL 6113/1910,000,000 PAR VALUE .10,000,000.0000 1.000000 9,977,545.83 -9,9T7,545.83 0.00 AT 100% O6113/2019 674599CK9 SOLD PAR VALUE OF OCCIDENTAL PETROLEUM 2.600% 4/15/22/WELLS FARGO -1,140,000.0000 0.994750 1,13g015.00 -1,141,561.80 -7,546.80 SECURITIES,LLC/1,140,000 PAR VALUE AT 99.475% 06/14/2019 31846V567 SOLD UNITS OF FIRST AM GOV7 OB FD CIE Z -3,001,011.6700 1.000000 3,001,011.67 -3,001,011.67 0.00 O6117/2019 31846V567 SOLD UNITS OF FIRSTAM GOV7 OB FD CL Z -5,054,463.7500 1.000000 5,054,463.75 -5,054,463.75 0.00 O6117MO19 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 4.677% 110128 MAY FHLMC DUE -17.3300 0.000000 17.33 .16.91 0.42 6/15/19 O611712019 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.587% 8115/32 -385.5000 0.000000 385.50 -385.90 -0.40 06/17/2019 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4115/20 -67,399.4400 0.000000 67,399.44 -67,398.13 1.31 O6/17/2019 47788BAD6 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.820%10/15/21 - 4,602.2300 0.000000 44,602.23 44,598.97 3.26 O6117=9 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 .137,653.4000 0.000000 137.663.40 .137,373.79 279.61 O6117/2019 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -86,066.8200 0.000000 86.066.82 -85,377.61 689.21 06/17/2019 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.500% 9/15121 -124,352.2400 0.000000 124,352.24 -123,575.04 777.20 O6/17/2019 89238BAB8 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100%10115/20 -369,207.7400 0.000000 369,207.74 -369,170.01 37.73 O611MO19 43814RACO PAID DOWN PAR VALUE OF HONDA AUTO 1.210%1 Vl8120 .141,700.7000 0.000000 141.700.70 .140,145.31 1,655.39 O6118/2019 43814PAC4 PAID DOWN PAR VALUE OF HONDA AUTO 1.790% 9/20/21 -207,422.0600 0.000000 207.422.06 -204,132.48 3,289.58 06/19/2019 31846V567 SOLD UNITSOF FIRSTAM GOVTOB FD CLZ -5,508,534.5400 1.000000 5,508,534.54 -5,508,534.54 0.00 O6120/2019 62479MTL7 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 6/20/1910,020,000 PAR -10,020,000.0000 1.000000 9,933,160.00 -9,933,160.00 0.00 VALUE AT 100% O6120MO19 62479MTL7 MATURED PAR VALUE OF MUFG BANK LTD NY BRAN C P 6120/192,160,000 PAR .2,160,000.0000 1.000000 2,141,280.00 .2.141,280.00 0.00 VALUE AT 100% 06MO12019 31846V567 SOLD UNITS OF FIRST AM COW OB FD CL Z -3.277,114.1700 1.000000 3,277.114.17 -3,277,114.17 0.00 2 of8 U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 06120/2019 31846V567 SOLD UNITS OF FIRSTAM GOVi OB FD CL Z -11,081,427.0800 1.000000 11,081,427.08 -11,081,427.08 0,00 061202019 36225CAZ9 PAID DOWN PAR VALUE OF G N M A I 1#080023 4.125%12I20126 MAY GNMA DUE -176.6500 0.000000 176.65 -179.57 .2.92 6/20/19 O6120/2019 36225CC20 PAID DOWN PAR VALUE OF G N M A I I N80088 3.625% 6/20/27 MAY GNMA DUE -202.9100 0.000000 202.91 -207.35 4.44 6/20/19 06/20/2019 36225CNM4 PAID DOWN PAR VALUE OF G N M A 11#080395 3,625% 4/20/30 MAY GNMA DUE -52.0900 0.000000 52.09 51.62 0.47 6/20/19 06/20/2019 36225CN28 PAID DOWN PAR VALUE OF G N M A 11#080408 3.625% 5/20/30 MAY GNMA DUE -1,677.0700 0.000000 1,677.07 -1,660.04 17.03 6/20/19 06/20/2019 36226DC68 PAID DOWN PAR VALUE OF G N M A 119080965 3.750% 7/20/34 MAY GNMA DUE -658.8500 0.000000 558.85 .558.50 0.35 6/20/19 0624/2019 674599CK9 SOLD PAR VALUE OF OCCIDENTAL PETROLEUM 2.600% 4/15/22/MITSUBISHI UFJ -1,150,000.0000 1.002320 1,152.668.00 -1,151,575.50 1,092.50 SECURITIES USAI7,150,000 PAR VALUE AT 100.232% 06125/2019 912796VH9 MATURED PAR VALUE OF U S TREASURY BILL 6125/195,000,000 PAR VALUE AT -5,000,000.0000 1,000000 4,991,686.50 4,991,686.50 0.00 100% 06125/2019 674599CK9 SOLD PAR VALUE OF OCCIDENTAL PETROLEUM 2.600% 4/15/22/MITSUBISHI UFJ -1,060,000.0000 1.000720 1,060,763.20 -1,061,452.20 -689.00 SECURITIES USA11,060,000 PAR VALUE AT 100,072% 061252019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z .1,534,116.5500 1.000000 1,534,116.55 .1.534,116.55 0.00 0625/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1125/20 -54,896.1900 1.604805 54,896.19 -58,009.83 -3,113.64 06/25/2019 31394JY35 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -10,489.0400 0,000000 10,489.04 -11,878.84 -1,389.80 06125/2019 31371NUC7 PAID DOWN PAR VALUE OF F N M A#257179 4.500% 4/01/28 MAY FNMA DUE -134.7400 0.000000 134.74 -142.50 -7.76 6/25/19 06/252019 31376KT22 PAID DOWN PAR VALUE OF F N M A#357%9 5.000% 9/01/35 MAY FNMA.DUE -2,214.9600 0.000000 2.214.96 -2,381.08 .166.12 6/25/19 O6125/2019 31381 PDA3 PAID DOWN PAR VALUE OF F N M A#466397 3.400%11/0120 P 81 DUE O6125119 -691.5400 0.000000 691.54 -676.57 14.97 06125/2019 31403DJZ3 PAID DOWN PAR VALUE OF F N M A#745580 5.000% 6/01/36 MAY FNMA DUE -1,100.2000 0.000000 1,100.20 -1,182.72 -82.52 6/25/19 06125/2019 31403GXF4 PAID DOWN PAR VALUE OF F N M A#748678 5.000%10/01/33 MAY FNMA DUE -9.3100 0.000000 9.31 -10.01 -0.70 625/19 06/252019 31406POY8 PAID DOWN PAR VALUE OF F N M A 9815971 5.000% 3/01/35 MAY FNMA DUE .2,620.6700 0.000000 2,620.67 -2,817.22 -196.55 6/25/19 O6125/2019 31406XWT5 PAID DOWN PAR VALUE OF F N M A#823358 4.722% 2101135 MAY FNMA DUE 436.4000 0.000000 436.40 432.99 3.41 6/25/19 06125/2019 31407BXH7 PAID DOWN PAR VALUE OF F N M A#826080 5,000% 7/01/35 MAY FNMA DUE -92.4000 0.000000 92.40 -99.33 -6.93 6/25/19 06125/2019 31410F4V4 PAID DOWN PAR VALUE OF F N M A#888336 5.000% 7/01/36 MAY FNMA DUE -3,070.4900 0.000000 3,070.49 -3,300.78 -230.29 6/25/19 061252019 3138EG6F6 PAID DOWN PAR VALUE OF F N M A#AL0869 4.500% 6/01/29 MAY FNMA DUE .216.4500 0.000000 216.45 .228.92 .12.47 6/25/19 3 of U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Entr,Date CUSIP Id Explanation U�it� Pri.� N�t C..h A.t Cost Gain/Loss O6/2512019 31417YAY3 PAID DOWN PAR VALUE OF F N M A#MA0022 4.500% 4/01/29 MAY FNMA DUE -379.9300 0.000000 379.93 -401.81 -21.88 6/25/19 06125=9 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125/41 .3,794.1000 0.000000 3,794.10 -3,792.91 1.19 O62612019 31846V567 SOLD UNITSOF FIRSTAM GOVTOB FD CLZ -53,087.7200 1.000000 53.087.72 -53,087.72 0.00 06/26/2019 31398VJ98 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 4.251% 1125/20 -1,808.4700 0.000000 1,808.47 -1,911.04 -102.57 O6126/2019 31398VJ98 PAID DOWN-RV PAR VALUE OF F H L M C MLTCL MTG 4.251% 1/25120 RATE 54,896.1900 1.604805 -54,896.19 58,009.83 3,113.64 REVISION 06128/2019 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z 4 ,337,062.1000 1.000000 6,337,062.10 .6,337,062.10 0.00 TOTAL DISPOSITIONS 42.753.737.8600 82,585,950.83 .82,588,648.35 .2,697.52 OTHER TRANSACTIONS 06/03/2019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 00000 SHARES DUE 0,0000 0,000000 23,095,04 0,00 0,00 5/31/2019 INTEREST FROM 5/1119 TO 5131119 0610312019 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 58,362.04 0.00 0.00 5/31/2019 INTEREST FROM 5/1119 TO 5131119 06103/2019 73358WAG9 INTEREST EARNED ON PORT AUTH NY NJ 5.309%12/01/19$1 PV ON 2440000.0000 0.0000 0.000000 64,769.80 0.00 0.00 SHARES DUE 6/1/2019 06106/2019 94988J5G8 INTEREST EARNED ON WELLS FARGO MTN 2,150%12/06/19$1 PV ON 500000,0000 0.0000 0,000000 5,375.00 0.00 0.00 SHARES DUE 6/612019 O6107/2019 89113X3W2 INTEREST EARNED ON TORONTO DOMINION C D 2.700% 6/07/19$1 PV ON 0.0000 0.000000 26,250.00 0.00 0.00 1000000.0000 SHARES DUE 617/2019 INTEREST ON 6/7/19 MATURITY 06110MO19 313383OR5 INTEREST EARNED ON F H L B DEB 3.250% 6109123$1 PV ON 50000W0.0000 0.0000 0.000000 81.260.00 0.00 0.00 SHARES DUE 6/10MI9 6/10119 INT 06/10/2019 3130AOF70 INTEREST EARNED ON F H L B DEB 3.375%12/08/23$1 PV ON 10000000.0000 0.0000 0.000000 168.750.00 0.00 0.00 SHARES DUE 6/812019 06/10/2019 69353RFL7 INTEREST EARNED ON PNC BANK NA 3,500% 6/08/23$1 PV ON 5000000.0000 0.0000 0,000000 87,500.00 0.00 0.00 SHARES DUE 6/812019 O6111/2019 06370RQY8 INTEREST EARNED ON BANK MONTREAL C D 2.860% 6/11/19$1 PV ON 0.0000 0.000000 28,917.78 0.00 0.00 2000000.0000 SHARES DUE 6111/2019 INTEREST ON 6111/19 MATURITY 06/11/2019 313379RB7 INTEREST EARNED ON F H L B DEB 1.875% 6111121 $1 PV ON 4000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 6/1IM19 06/11/2019 912828WJ5 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 2.500% 5/15124 0.0000 0.000000 -12.839.67 0.00 0.00 06/12/2019 313383HU8 INTEREST EARNED ON F H L B DEB 1,750% 6/12120$1 PV ON 5000000.0000 0.0000 0,000000 43,750.00 0.00 0.00 SHARES DUE 6/12/2019 O6113/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 29536.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 06113MO19 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY29536.00 UNITS 0.0000 0.000000 0.00 29,536.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 4 of U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Ent�Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss O6/1312019 313384GV5 INTEREST EARNED ON F H L B DISC NTS 6/13/19$1 PV ON 5000000.0000 0.0000 0.000000 28,905.56 0,00 0,00 SHARES DUE 6/13/2019 5,000,000 PAR VALUE AT 100% 06/13/2019 912796RU5 INTEREST EARNED ON U S TREASURY BILL 6/13119$1 PV ON 10000000.0000 0.0000 0.000000 22,454.17 0.00 0.00 SHARES DUE 6113/2019 10,000,000 PAR VALUE AT 100% 06/13/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 29536.0000 UNITS 29,536.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 06/13/2019 674599CK9 RECEIVED ACCRUED INTEREST ON SALE OF OCCIDENTAL PETROLEUM 2.600% 0.0000 0.000000 4,775.33 0.00 0.00 4/15/22 O6113/2019 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 29536.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 06114/2019 89114QCA4 PAID ACCRUED INTEREST ON PURCHASE OF TORONTO DOMINION MTN 2.650% 0.0000 0.000000 .441.67 0.00 0.00 6/12/24 06/17/2019 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9/15122$1 PV ON 10084.2400 0.0000 0.000000 10.084.24 0.00 0.00 SHARES DUE 6/15/2019$0.001611PV ON 6,270,000.00 PV DUE &15119 06/17/2019 31348SWZ3 INTEREST EARNED ON F H L M C#786064 4,677% 1101128$1 PV ON 7.4700 SHARES 0.0000 0,000000 7.47 0.00 0.00 DUE 6115/2019 APRIL FHLMC DUE 6/15119 O6117/2019 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.587% 8115132$1 PV ON 32.0200 0.0000 0.000000 32.02 0.00 0.00 SHARES DUE 6/15/2019$0.002991PV ON 9,600.65 PV DUE 6/15/19 06/17=9 43814QAC2 INTEREST EARNED ON HONDA AUTO 1.390% 4115120$1 PV ON 85.9600 0.0000 0.000000 85.96 0.00 0.00 SHARES DUE 6/15/2019$0.001161PV ON 74,208.08 PV DUE 6/15/19 06117/2019 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5115/23$1 PV ON 1429.1600 0.0000 0.000000 1.429.16 0.00 0.00 SHARES DUE 6/15/2019$0.001241PV ON 1,151,000.00 PV DUE &15119 06117/2019 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 897.4200 0.0000 0,000000 897.42 0.00 0.00 SHARES DUE 6/15/2019$0.00152/PV ON 591,706.20 PV DUE 6115/19 O6117/2019 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420%10/15/20$1 PV ON 1480.6100 0.0000 0.000000 1,480.61 0.00 0.00 SHARES DUE 6/15/2019$0.00202/PV ON 734,185.32 PV DUE 6/15/19 06117/2019 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4118M2$1 PV ON 2970.3300 0.0000 0.000000 2.970.33 0.00 0.00 SHARES DUE 6/15/2019$0.002221PV ON 1,340,000.00 PV DUE 6115/19 06/17/2019 47789JAB2 INTEREST EARNED ON JOHN DEERE OWNER 2.850%12/15/21 $1 PV ON 77 .3800 0.0000 0.000000 7.754.38 0.00 0.00 SHARES DUE 6/15/2019$0.002381PV ON 3,265,000.00 PV DUE &15119 06/17/2019 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11/15/22$1 PV ON 11883.6700 0.0000 0,000000 11,883.67 0.00 0.00 SHARES DUE 6/15/2019$0.00257/PV ON 4,630.000.00 PV DUE 6/15/19 O6117/2019 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 643.6200 0.0000 0.000000 643.62 0.00 0.00 SHARES DUE 6/15/2019$0.00110/PV ON 585,108.60 PV DUE 6/15/19 06117/2019 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 427.9000 0.0000 0.000000 427.90 0.00 0.00 SHARES DUE 6/15R019$0.001251PV ON 342,320.36 PV DUE 6115119 06/17/2019 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 6/15/2019$0.001461PV ON 2,625,000.00 PV DUE 6/15/19 06/17/2019 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3,060% 3/15/23$1 PV ON 9078,0000 0.0000 0,000000 9,078.00 0.00 0.00 SHARES DUE 6/15/2019$0.002551PV ON 3,560.000.00 PV DUE 6/15/19 5 of8 U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Ent�Date CUSIP Id Explanation Units Price Net Cash Amt C.�t GainlL.. O6/1712019 89238BAB8 INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 3663.4300 0.0000 0.000000 3,663.43 0,00 0,00 SHARES DUE 6/15/2019$0.001751PV ON 2,093,384.74 PV DUE 6/15/19 06/17/2019 89239AAB9 INTEREST EARNED ON TOYOTA AUTO 2.830%10/15121 $1 PV ON 8525.3700 0.0000 0.000000 8.525.37 0.00 0.00 SHARES DUE 6/15/2019$0.00236/PV ON 3,615,000.00 PV DUE 6115/19 O6117/2019 3130AW2 PAID ACCRUED INTEREST ON PURCHASE OF F H L B 2.875% 6/14/24 0.0000 0.000000 -1.365.63 0.00 0.00 06/18/2019 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 1099.8100 0.0000 0,000000 1,099.81 0.00 0.00 SHARES DUE 6/18/2019$0.00101/PV ON 1,090.716.81 PV DUE 6/18/19 O6118/2019 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9120/21 $1 PV ON 4325.1300 0.0000 0.000000 4,325.13 0.00 0.00 SHARES DUE 6/18/2019$0.00149/PV ON 2,899,532.15 PV DUE 6/18/19 0611MO19 43814WA61 INTEREST EARNED ON HONDA AUTO 2.750% 9120121 $1 PV ON 10071.8800 0.0000 0.000000 10,071.88 0.00 0.00 SHARES DUE 6/18/2019$0.002291PV ON 4,395,000.00 PV DUE 6118/19 O6118/2019 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18122$1 PV ON 4289.2500 0.0000 0.000000 4.289.25 0.00 0.00 SHARES DUE 6/18/2019$0.002511PV ON 1,710,000.00 PV DUE 6/18/19 06/19/2019 3137EAEN5 INTEREST EARNED ON F H L M C 2,750% 6/19/23$1 PV ON 10000000.0000 0.0000 0.000000 137,500.00 0.00 0.00 SHARES DUE 6/19/2019 O6119/2019 3130A1XJ2 PAID ACCRUED INTEREST ON PURCHASE OF F H L B 2.875% 6/14/24 0.0000 0.000000 -2,160.24 0.00 0.00 06/20=9 36225CAZ9 INTEREST EARNED ON G N M A 11#0800234.125%12/20126$1 PV ON 58.1900 0.0000 0.000000 58.19 0.00 0.00 SHARES DUE 6/20/2019 MAY GNMA DUE 6/20119 O6120/2019 36225CC20 INTEREST EARNED ON G N M A 11 i 80088 3.625% 6/20/27$1 PV ON 51.2100 SHARES 0.0000 0.000000 51.21 0.00 0.00 DUE 61=019 MAY GNMA DUE 6/20/19 06/20/2019 36225CNM4 INTEREST EARNED ON G N M A 11 N080395 3.625% 4/20/30$1 PV ON 20.7900 SHARES 0.0000 0.000000 20.79 0.00 0.00 DUE 6/20/2019 MAY GNMA DUE 6120119 O6120/2019 36225CN28 INTEREST EARNED ON G N M A 11#080408 3.625% 5/20/30$1 PV ON 165.6400 0.0000 0.000000 165.64 0.00 0.00 SHARES DUE 6/20/2019 MAY GNMA DUE 6/20/19 06120MO19 36226DC68 INTEREST EARNED ON G N M A 11#080965 3.750% 7/20/34$1 PV ON 149.2000 0.0000 0.000000 149.20 0.00 0.00 SHARES DUE 6120/2019 MAY GNMA DUE 6/20119 O612012019 62479MTL7 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 6/20/19$1 PV ON 0.0000 0.000000 86,840.00 0.00 0.00 10020000.0000 SHARES DUE 6/20/2019 10,020,000 PAR VALUE AT 100% 06/20/2019 62479MTL7 INTEREST EARNED ON MUFG BANK LTD NY BRAN C P 6/20/19$1 PV ON 0.0000 0.000000 18,720.00 0.00 0.00 2160000.0000 SHARES DUE 6/20/2019 2.160,000 PAR VALUE AT 100% O6121/2019 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8122122$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00 SHARES DUE 6/21/2019$0.00246/PV ON 3,970,000.00 PV DUE 6/21119 06124MO19 166764AH3 INTEREST EARNED ON CHEVRON CORP 3.191% 6/24/23$1 PV ON 3500000.0000 0.0000 0.000000 55,842.50 0.00 0.00 SHARES DUE 6/24/2019 O6/2412019 3135GOU35 INTEREST EARNED ON F N M A 2.750% 6/22/21 $1 PV ON 7500000.0000 0.0000 0.000000 103.125.00 0.00 0.00 SHARES DUE 6/22/2019 06124/2019 3135GOD75 INTEREST EARNED ON F N M A DEB 1,500% 6/22/20$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00 SHARES DUE 6/22/2019 6 of8 U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt C.�t GainlL.. 06/2412019 674599CK9 RECEIVED ACCRUED INTEREST ON SALE OF OCCIDENTAL PETROLEUM 2.600% 0.0000 0.000000 5,730.83 0,00 0,00 4/15/22 06125/2019 03215PFN4 INTEREST EARNED ON AMRESCO 3.14513% 6/25129$1 PV ON 350.5300 0.0000 0.000000 350.53 0.00 0.00 SHARES DUE 6/25/2019$0.002621PV ON 133,743.29 PV DUE 6125119 0625/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125R0$1 PV ON 3131.8900 0.0000 0.000000 3.131.89 0.00 0.00 SHARES DUE 6/25/2019$0.003541PV ON 884,090.32 PV DUE 6126119 06125/2019 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9125143$1 PV ON 3899,9600 0.0000 0.000000 3,899.96 0.00 0.00 SHARES DUE 6/25/2019$0.005421PV ON 719,993.82 PV DUE 6125/19 06/25/2019 31371NUC7 INTEREST EARNED ON F N M A 9257179 4.500% 4/01/28$1 PV ON 57.3300 SHARES 0.0000 0.000000 57.33 0.00 0.00 DUE 6125/2019 MAY FNMA DUE 6125119 06125/2019 31376KT22 INTEREST EARNED ON F N M A#357%9 5.000% 9/01/35$1 PV ON 442.3300 0.0000 0.000000 442.33 0.00 0.00 SHARES DUE 6/25/2019 MAY FNMA DUE 6125/19 06125/2019 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 995.9900 0.0000 0.000000 995.99 0.00 0.00 SHARES DUE 6/25/2019 P&I DUE 06/25/19 06125/2019 31403DJZ3 INTEREST EARNED ON F N M A#745580 5,000% 6/01/36$1 PV ON 406.6600 0.0000 0,000000 406.66 0.00 0.00 SHARES DUE 6/25/2019 MAY FNMA DUE 6125119 06/25/2019 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 7.5700 SHARES 0.0000 0.000000 7.57 0.00 0.00 DUE 6125/2019 MAY FNMA DUE 6125119 061252019 31406POY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 699.0900 0.0000 0.000000 699.09 0.00 0.00 SHARES DUE 6/25/2019 MAY FNMA DUE 6125/19 06125/2019 31406XWT5 INTEREST EARNED ON F N M A#823358 4.722% 2/01135$1 PV ON 436.8900 0.0000 0.000000 436.89 0.00 0.00 SHARES DUE 625/2019 MAY FNMA DUE 6125/19 06/25/2019 31407BXH7 INTEREST EARNED ON F N M A#826080 5,000% 7/01/35$1 PV ON 82.2800 SHARES 0.0000 0,000000 82.28 0.00 0.00 DUE 6125/2019 MAY FNMA DUE 6125119 O6125/2019 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 804.8600 0.0000 0.000000 804.86 0.00 0.00 SHARES DUE 6/25/2019 MAY FNMA DUE 6125/19 06125/2019 3138EG6F6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 40.7500 SHARES 0.0000 0.000000 40.75 0.00 0.00 DUE 6125/2019 MAY FNMA DUE 6125119 06125/2019 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01129$1 PV ON 66.6200 0.0000 0.000000 66.62 0.00 0.00 SHARES DUE 625/2019 MAY FNMA DUE 6125/19 06125/2019 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 521.4400 0.0000 0,000000 521.44 0.00 0.00 SHARES DUE 6/25/2019$0.002591PV ON 201,213.15 PV DUE 6125/19 06/25/2019 912796VH9 INTEREST EARNED ON U S TREASURY BILL 6/25119$1 PV ON 5000000.0000 0.0000 0.000000 8,313.50 0.00 0.00 SHARES DUE 6/25/2019 5,000,000 PAR VALUE AT 100% 06125/2019 96130AAK4 PAID ACCRUED INTEREST ON PURCHASE OF WESTPAC EKING C D 2.970%10/18/19 0.0000 0.000000 .30.813.75 0.00 0.00 06125/2019 674599CK9 RECEIVED ACCRUED INTEREST ON SALE OF OCCIDENTAL PETROLEUM 2.600% 0.0000 0.000000 5.358.89 0.00 0.00 4/15G2 06126/2019 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 29536.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 7 of U.S. Bank Transaction History O6/01/2019 Thru 06/30/2019 Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cast G.in/Loss O6/2612019 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 29536.00 UNITS 0.0000 0.000000 0.00 29,536.00 0,00 INCREASE TO ADJUST FOR CHANGE IN CPI 06126=9 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1125120$1 PV ON 3131.8900 0.0000 0.000000 3.131.89 0.00 0.00 SHARES DUE 6/25/2019$0.00354/PV ON 884,090.32 PV DUE 6125119 06126/2019 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25120$1 PV ON 3131.8900 0.0000 0.000000 -3.131.89 0.00 0.00 SHARES DUE 612 512 01 9 RATE REVISION 06126/2019 931142EK5 INTEREST EARNED ON WALMART INC 3.400% 6126/23$1 PV ON 3880000,0000 0.0000 0.000000 65,960.00 0.00 0.00 SHARES DUE 6/26/2019 O6126/2019 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 29536.0000 UNITS 29,536.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI 06126=9 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7115124 ADJUSTED BY 29536.00 UNITS 0.0000 0.000000 0.00 0.00 0.00 INCREASE TO ADJUST FOR CHANGE IN CPI O6128/2019 912828H52 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.250% 1131120 0.0000 0.000000 -17,886.74 0.00 0.00 OTAL OTHER TRANSACTIONS 59,072.0000 .245.]fi4.31 59.0]2.00 0.00 8 Of OPERATIONS COMMITTEE Meng D310 TOBE. Dir. 07/lti10/19 07/24/1Of9 AGENDA REPORT ItemNumber Item Number z a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 2 TRICKLING FILTER INFLUENT (FEED) PUMP REPAIRS GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to Vaughan's Industrial Repair Co., Inc for the repair and reinstallation of six influent pumps at the Plant No. 2 Trickling Filter Pump Station, for a total amount not to exceed $631,010; and B. Approve a contingency of$126,202 (20%). BACKGROUND The trickling filter process is one of two secondary treatment processes at the Orange County Sanitation District's (Sanitation District) Plant No. 2 that remove suspended and dissolved organic material using microorganisms, enabling the Sanitation District to meet ocean discharge permit limits. The other secondary treatment process is pure oxygen activated sludge. The trickling filter process consists of three trickling filters: A, B, and C; each containing two influent pumps at the trickling filter pump station. The purpose of these pumps is to provide essential supply of influent for the trickling filter treatment process. The six pumps were installed as part of Project No. P2-90, Trickling Filters at Plant No. 2, and have been in service since 2012. These pumps have been in service for approximately seven years. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Comply with environmental permit requirements • Maintain a proactive asset management program • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The influent pumps were experiencing reduced pumping efficiency with two of six pumps out of service. One of the influent pumps was removed for evaluation. The evaluation concluded that this pump had developed a problem with seal water flow due to severe corrosion in the seal water supply tube. Seal water is clean water used to protect pump bearings by flushing processed fluid debris away from the bearing surfaces. Corrosion in the seal water supply tube prevents the free flow of seal water, resulting in reduced Page 1 of 3 pumping efficiency which eventually leads to premature pump failure. It was determined that this pump needs to be rebuilt with higher-grade stainless-steel components in order to minimize future corrosion. PROPOSED SOLUTION Rebuild all six influent pumps, one at a time, at the Plant No. 2 Trickling Filter Pump Station through Vaughan's Industrial Repair Co., Inc. (VIRC), who is the sole authorized service center for these types of pumps. TIMING CONCERNS The trickling filter pump station is critical to the secondary treatment process. With only four out of six pumps available, the trickling filter pump station does not have the required redundancy to support the secondary treatment process, especially during high flow situations. The proposed repairs to at least two pumps would need to be completed prior to the next wet weather season. RAMIFICATIONS OF NOT TAKING ACTION Failure to repair the trickling filter pumps would result in the reduction of secondary treatment capacity. Additional pump failures would severely handicap the ability for the trickling filter pump station to provide the required influent to the trickling filter treatment process, with the possibility of partially treated primary effluent spilling into the ocean. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A contingency of 20% is requested to cover additional costs for labor and materials should further damage be discovered once the influent pumps have been removed. The quote was based on the evaluation of one pump. It is assumed that the same work would be required for the remaining pumps. CEQA The repair and replacement of the Trickling Filter Pump Station influent pumps is categorically exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use,' including"(b)Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". 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 Years FY 2018-19 and 2019-20 Budget, Section 6, Page 100), and the available funding is sufficient for this action. Date of ADDroval Contract Amount Continaencv 07/10/2019 $631,010 $126,202 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A RM:ab:gc Page 3 of 3 OPERATIONS COMMITTEE Meng Date TOBE. Dir. 07/eti10/19 07/24/1Or9 AGENDA REPORT Item Item Number 3 5 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: RENEWAL AGREEMENT FOR LIQUID OXYGEN PURCHASE AND ASSOCIATED VAPORIZATION SYSTEM MAINTENANCE SPECIFICATION NO. C-2018-926BD GENERAL MANAGER'S RECOMMENDATION A. Approve Amendment No. 1 for a unit price increase of $0.0535 per centum cubic feet (22.8%) to the chemical supplier agreement with Airgas USA, LLC for the purchase of liquid oxygen, Specification No. C-2018-92613D, for the period beginning August 21, 2019 through August 20, 2020 for a unit price of$0.288 per centum cubic feet delivered, plus applicable sales tax, for a total estimated annual amount of$496,512; and B. Authorize unit price adjustment of up to 15% annually using mutually acceptable price indices for subsequent agreement renewal periods. BACKGROUND The Orange County Sanitation District's (Sanitation District) previous bid solicitation in 2018 for liquid oxygen received three bids. The lowest bidder was Airgas USA, LLC (Airgas)with a unit price of$0.2345 per centum cubic feet(ccf). The second lowest bidder was Air Products and Chemicals, Inc. with a unit price of$0.40 per ccf. Subsequently, in June 2018, the Sanitation District's Board of Directors awarded an agreement to Airgas USA, LLC for the purchase of liquid oxygen for a unit price of$0.2345 per ccf delivered, plus applicable sales tax, for a total estimated amount of$404,278. RELEVANT STANDARDS • Comply with environmental permit requirements • Maintain a culture of improving efficiency to reduce the cost to provide the current service level or standard PROBLEM The current liquid oxygen agreement expires on August 20, 2019. The previous Board action authorized four potential renewals. The vendor, Airgas, has expressed a willingness to renew the agreement at a higher unit cost. Airgas proposes a $0.0535 (22.8%) increase to $0.288 per ccf. This increase is primarily driven by high costs due to energy, transportation, and tariffs. Page 1 d 3 PROPOSED SOLUTION Staff recommends approval of the unit price increase to ensure that the supply and delivery of liquid oxygen is not disrupted. The new proposed price of $0.288 per ccf is 28% less than the $0.40 per ccf bid from the next lowest bidder in 2018. TIMING CONCERNS The Sanitation District requires a contract to be in place before the existing agreement expires on August 20, 2019. Liquid oxygen is necessary for the normal operation of the Activated Sludge process at Plant No. 2. RAMIFICATIONS OF NOT TAKING ACTION If the new vendor is not in place before the existing agreement expiration date,the service and supply of liquid oxygen would discontinue, and the Sanitation District would not be able to provide effective secondary treatment at Plant No. 2. Spot market purchases while rebidding this purchase will be more expensive and carry greater risk of disruption. PRIOR COMMITTEE/BOARD ACTIONS June 2018 - Awarded a Chemical Supplier Agreement to Airgas USA, LLC for the purchase of liquid oxygen, Specification No. C-2018-92613D, for the period beginning August 21, 2018 through August 20, 2019 for a unit price of $0.2345 per ccf delivered, plus applicable sales tax, for a total estimated annual amount of $404,278, with four (4) one-year renewal options; authorized the General Manager to approve price adjustments based upon indices from Southern California Edison's Rate Time of Use (TOU)-8 Base Interruptible Program (BIP) and Bureau of Labor Statistics' employment Cost Index for subsequent agreement periods; and authorized services related to routine and emergency maintenance of the Sanitation District's liquid oxygen storage and vaporization equipment for the period beginning August 21, 2018 through August 20, 2019 a total estimated annual amount of $20,000; with four (4) one-year renewal options. ADDITIONAL INFORMATION N/A CEQA N/A Page 2 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the Proposed Budget FY 2018-19 and FY 2019-20 Operating Budget, Division 840, Plant No. 2. (Line item: Supplies, Section 6, Page 88). Date of Aooroval Contract Amount Price Adiustment 07/24/2019 $496,512 $74,477 (15%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Amendment No. 1 JS:MVP:cf:gc Page 3 of 3 AMENDMENTNO. 1 To CHEMICAL SUPPLIER AGREEMENT Purchase of Liquid Oxygen (LOX), Specification No. C-2018-926BD THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective on August 21, 2019, by and between Orange County Sanitation District (hereinafter referred to as "OCSD") and Airgas USA, LLC (hereinafter referred to as"Supplier")collectively referred to as the "Parties". WHEREAS, OCSD and Supplier executed, delivered and entered into the Agreement between OCSD and Supplier, the effective date of which is August 21, 2018 ("Agreement"); and WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be called Amendment No. 1 ("Amendment"); and WHEREAS, the Parties desire that the Agreement as modified by this Amendment No. 1 shall constitute the sole and entire agreement among the Parties; NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein, the Parties agree to amend the Agreement to: 1. Exercise option to renew the Agreement for one (1) additional year, for the period of August 21, 2019 through August 20, 2020; and 2. Revise Scope of Work, Article 1.3 Liquid Oxygen — Price Adjustments to add a paragraph stating, "Price adjustments for subsequent agreement periods may be based upon mutually acceptable price indices.", and 3. Increase the unit price of Liquid Oxygen (LOX)from $0.2345 per centum cubic feet (ccf) to $0.288 per ccf effective August 21, 2019 through August 20, 2020, in accordance with Airgas USA, LLC's Proposal dated May 7, 2019, attached hereto as part of this Amendment No. 1. Except as expressly amended above, the Agreement will remain unchanged and in full force and effect. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment No. 1 to be signed by the duly authorized representatives as of the day and year last signed below. Orange County Sanitation District Airgas USA, LLC By: Lorenzo Tyner Date Dale Assistant General Manager Name: David John Shawver Date Board Chairman Title: Kelly A. Lore, MMC Date Clerk of the Board Amendment No. 1 Specification No. C-2018-926BD Revision Date: 032018 OPERATIONS COMMITTEE Meng Date TOBE. Dir. 07/eti10/19 07/24/1Of9 AGENDA REPORT Item Item Number 4 fi Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: HEADWORKS REHABILITATION AND EXPANSION AT PLANT NO. 1, PROJECT NO. P1-105 GENERAL MANAGER'S RECOMMENDATION A. Consider, receive, and file the Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, prepared by Carollo and Environmental Science Associates; and B. Adopt Resolution No. OCSD 19-07, entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District adopting the Mitigated Negative Declaration for the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, adopting a Mitigation Monitoring and Reporting Program, and approving the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105." BACKGROUND The headworks of a wastewater treatment plant is where all incoming sewers converge through a series of pipes, meters, flow diversions, and gates. Orange County Sanitation District's (Sanitation District) Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105, includes demolition of existing facilities, construction of new facilities, and rehabilitation of existing facilities for influent flow diversions, metering, preliminary treatment, and water-in/water-out pumping of wastewater through Plant No. 1. It is anticipated that the construction phase of this project will take approximately seven years to complete. RELEVANT STANDARDS • Listen to and seriously consider community input on environmental concerns • Meet CEQA and NEPA standards • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting PROBLEM The California Environmental Quality Act (CEQA) requires public agencies to participate in an environmental review process for all projects that are defined as a discretionary Page 1 of 3 action with potential physical effects on the environment. Pursuant to CEQA, a Mitigated Negative Declaration (MND) was prepared based on the finding from the Initial Study. PROPOSED SOLUTION Adopt Resolution No. OCSD 19-07 which will certify the attached MND. TIMING CONCERNS The Sanitation District may not commit to construction of the project until the CEQA process has been completed. Without certifying the CEQA documentation, the South Coast Air Quality Management District will not review the permit to construct/operate. This will cause additional delays thatwill ultimately impact advertisement and construction dates. RAMIFICATIONS OF NOT TAKING ACTION The project may not proceed into construction without completion of the environment process. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District received comments from regulatory agencies including State Clearinghouse, Federal Emergency Management Agency, California Department of Transportation, South Coast Air Quality Management District, Gabrieleno Band of Mission Indians, Orange County Public Works, City of Irvine, and City of Fountain Valley. The Public Agencies acknowledged the receipt of the Draft MND and required the Sanitation District to comply with their agencies' provisions. The Sanitation District evaluated all environmental comments, provided written responses to each comment where necessary, and included the comments and responses in the MND. For most of the comments, responses were not required because there were no specific comments on the contents of the Draft MND. Minor modifications to the Draft MND did not alter the conclusion of the MND. CEQA The Sanitation District, as lead agency, prepared an Initial Study analyzing the project's potential environmental impacts. Based on the Initial Study, it was determined that all of the project's potentially significant environmental impacts can be mitigated to a level of less than significant impact. On this basis, an MND and Mitigation Monitoring and Reporting Program was prepared. A 30-day public review period commenced on April 26, 2019. The Draft MND was submitted to the State Clearinghouse for a 30-day comment period (State Clearinghouse No. 2019049152). The Sanitation District received Page 2 d 3 eight comments from public agencies and none from the public. The MND includes these comments, as well as the Sanitation District's responses. The proposed Resolution presenting CEQA findings and adopting the MND and Mitigation Monitoring and Reporting Program is attached for the Board's consideration and approval. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program (separate file, electronic only) • Draft Resolution No. OCSD 19-07 GR:dm:gc Page 3 of 3 RESOLUTION NO. OCSD 19-07 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT ADOPTING THE MITIGATED NEGATIVE DECLARATION FOR THE HEADWORKS REHABILITATION AND EXPANSION AT PLANT NO. 1, PROJECT NO. P1-105, ADOPTING A MITIGATION MONITORING AND REPORTING PROGRAM, AND APPROVING THE HEADWORKS REHABILITATION AND EXPANSION AT PLANT NO. 1, PROJECT NO. P1-105 WHEREAS, the Orange County Sanitation District (the "District") is presently considering the approval of a project known as the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105 (the "Project"); and WHEREAS, pursuant to the California Environmental Quality Act (Public Resources Code Sections 21000 et seq. ("CEQA")) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.), the District, as lead agency, prepared an Initial Study/Mitigated Negative Declaration ("IS/MND") for the Project that analyzes the potential impacts of the Project and identifies applicable mitigation measures; and WHEREAS, the IS/MND found that the Project may have one or more significant environmental effects, but the District has agreed to revise the Project and incorporate feasible mitigation measures to eliminate or avoid all potentially significant environmental effects of the Project; and WHEREAS, the District has consulted with other public agencies and the general public, and provided such agencies and the public with the opportunity to provide written and oral comments on the IS/MND as required by CEQA, including a public review period of 30 days which commenced on April 26, 2019 and ended on May 28, 2019; and WHEREAS, the District has reviewed all comments received on the IS/MND and has prepared a Final MND that responds to all significant environmental issues raised during the review and consultation process; and WHEREAS, the comments received on the IS/MND, either in full or in summary, together with the District's responses, have been included in the Final MND for the proposed Project; and WHEREAS, the District has prepared a Mitigation Monitoring and Report Plan ("MMRP") for the implementation of, and compliance with, all feasible mitigation measures identified in the IS/MND and Final MND; and 1417263.1 OCSD 19-07-1 WHEREAS, the Final MND, including the comments received by the District on the IS/MND, and the MMRP have been presented to the District's Board of Directors (the "Board") for review and consideration prior to the District's approval of, and commitment to,the Project, and approval of the Final MIND and MMRP is consistent with the provisions of CEQA. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE, AND ORDER: 1. The Board of Directors certifies that the Final MND, attached to this Resolution as Exhibit A, including comments and responses thereto, has been completed in compliance with CEQA and represents a complete and adequate description of the environmental conditions of the proposed Project; 2. The Board of Directors has independently reviewed and considered the Final MIND together with all comments received during the public review process; 3. The Final MIND reflects the independent judgment and analysis of the Board; 4. The Board of Directors finds on the basis of the whole record before it that there is no substantial evidence that the Project, as mitigated, will have a significant effect on the environment; 5. The Board of Directors finds that the recommended mitigation measures contained in the Final MIND shall be implemented and adopts the Mitigation Monitoring and Reporting Program ("MMRP"), included in Exhibit A, to ensure that all mitigation measures will be implemented; 6. The Final MIND has been completed in compliance with the requirements of CEQA and is hereby adopted; 7. The Board of Directors approves the Headworks Rehabilitation and Expansion at Plant No. 1, Project No. P1-105; 8. The documents and other materials that constitute the record of proceedings on which the Board of Directors decision is based are located at the District Administration Offices, 10844 Ellis Avenue, Fountain Valley, CA 92708 and the custodian for these documents is the Clerk of the Board; and 9. District staff is authorized and directed to file the Notice of Determination (NOD) and any other documents in accordance with the requirements of CEQA. 1417263.1 OCSD 19-07-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held July 24, 2019. David John Shawver Board Chairman ATTEST: Kelly A. Lore, MMC Clerk of the Board 1417263.1 OCSD 19-07-3 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 19-07 was passed and adopted at a regular meeting of said Board on the 241h day of July 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 241h day of July 24, 2019. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District 1417263.1 OCSD 19-07-4 OPERATIONS COMMITTEE Meng Date TOBd. oir. 07/eti10/19 07/24/1w9 AGENDA REPORT ItemNumber Item Number s 7 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Assistant General Manager SUBJECT: PLANT NO. 2 TRUCKLOADING AUGER REPLACEMENT GENERAL MANAGER'S RECOMMENDATION A. Approve a Sole Source Purchase Order to Putzmeister for the procurement of up to 12 replacement Putzmeister augers along with their associated mounting components including gear motor assembly for the Plant No. 2 truckloading facility, for a total amount not to exceed $663,359; B. Approve payment of $198,008 (30%) of the not-to-exceed amount at the time of order; and C. Approve a contingency of$132,672 (20%). BACKGROUND Approximately 300 tons per day of biosolids are generated from the wastewater treatment operations at Orange County Sanitation District's (Sanitation District) Plant No. 2. These biosolids are loaded on trucks for off-site reuse through two truckloading bays at the truckloading facility. The augers were installed as part of Project No. P2-60, Solids Storage and Truckloading Facility at Plant No. 2, and have been in service since 2000. The augers are used for moving biosolids from overhead storage bins into trucks. There are six augers in each of the two truckloading bays. Truckloading operations would not be possible without property operating augers. Two augers recently failed, and a third auger is exhibiting signs of wear indicating failure potential. Auger replacement is highly recommended based on a recently concluded technical assessment, which included a remaining useful life analysis. In addition, these augers are under more stress now that Plant No. 2 is producing denser biosolids since the new dewatering centrifuges have come on-line. The original augers were manufactured by Putzmeister. Pumpaction Corporation (Pumpaction) is the sole authorized company for Putzmeister parts and repairs. RELEVANT STANDARDS • 24/7/365 treatment plant reliability Safe, beneficial reuse of Biosolids Page 1 d 3 PROBLEM The augers have reached the end of their useful life and reliable operation of the augers is critical for ensuring timely removal of the biosolids produced as part of the wastewater treatment operation. The accessibility of the augers is limited, and any auger related work requires shutdown of an entire truckloading bay. In order to maintain the required biosolids truckloading rates, one of the two truckloading bays must be in operation at all times. PROPOSED SOLUTION Staff recommends procurement of up to 12 replacement augers for Plant No. 2 truckloading and associated installation inspection services from the original equipment manufacturer (OEM). Staff will procure installation services using the master services repair and maintenance contract in two phases as only one loading bay can be taken out of service at any one time. Staff also recommends a relatively high contingency of 20% since these high wear parts are being removed for the first time and unknown conditions may be encountered. TIMING CONCERNS Augers are already showing signs of wear, and more dense solids produced by the newly commissioned dewatering centrifuges are aggravating the condition of the worn augers. RAMIFICATIONS OF NOT TAKING ACTION Failure to replace the augers could seriously jeopardize ability to effectively remove biosolids causing potential wastewater treatment capacity impacts. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The proposed replacement augers are a design unique to the Sanitation District and are not used elsewhere. As such, the vendor has requested a 30% upfront payment to begin the fabrication of these unique parts that cannot be put back into stock if the order were to be cancelled. CEQA The replacement of the truckloading augers is categorically 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 Page 2 of 3 structures facilities, mechanical equipment, or topographical features, involving negligible or no expansion of existing or former use," including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". 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 in FY 2018-19 Budget Line Item: Repairs and Maintenance, Section 6, Page 92. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: N/A RM:ab:gc Page 3 d 3 OPERATIONS COMMITTEE Meng Date TOBd. Dir. 07/etl10/19 07/24/1of9 AGENDA REPORT Item Item Number 6 8 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2, PROJECT NO. P2-92 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $498,500 (1%) to the construction contract with Shimmick Construction Company, Inc. for Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, for a total contingency of$2,991,000 (6%). BACKGROUND This project replaces existing solids dewatering and odor control facilities at Orange County Sanitation District (Sanitation District) Plant No. 2. The objectives of the project include replacing aging facilities, lowering biosolids management costs, and improving odor control treatment. The project includes installation of centrifuges for the dewatering facility and demolition of existing facilities. The new dewatering facility was first placed into service in March 2019, and the old facility was taken out of service in June 2019. Demolition is scheduled to begin in early July 2019. RELEVANT STANDARDS • Sound engineering and accounting practices, complying with local, state and federal laws • 24/7/365 treatment plant reliability PROBLEM In preparation for the upcoming demolition activities, a much larger number of flange gaskets were found to contain asbestos than was identified in the Hazardous Material Survey included with the bid documents. The piping associated with those gaskets also has lead-based paint that makes cutting the flanges without disassembly impractical. Addressing issues with asbestos and lead containing materials will require approximately $200,000, which is most of the remaining Board-approved construction contract contingency. The remaining demolition work could reveal conditions and circumstances impacting the construction effort that are not detectable prior to construction. Page 1 d 3 For the construction changes to date, the large majority have either been negotiated, or the magnitude of the costs are reasonably well-known and factored into the remaining contingency. There are, however, several unresolved disputed items with a contractor requested value of approximately $500,000. While the Sanitation District has disputed the merit of these items, the full problem-solving procedures offered the Contractor by the Public Contract Code have not concluded. Final determination of merit and extent of potential added costs for these items remains a potential risk. PROPOSED SOLUTION Approve a construction contract contingency increase to cover the additional lead and asbestos abatement costs, provide sufficient authorization for staff to complete demolition activities, and resolve disputed items. No additional project budget is required to fund this increase. TIMING CONCERNS Demolition activities will begin in July 2019. If problems arise, the construction work might have to be stopped until additional contract funds can be authorized to resolve the issue. These delays would result in increased staff costs to administer the contract and potentially extended overhead claims from the Contractor. RAMIFICATIONS OF NOT TAKING ACTION If additional contingency is needed, but not available, it might be necessary to leave some demolition work uncompleted. Any uncompleted demolition work would constrain the future use of the site and add to the cost and duration to future projects. PRIOR COMMITTEE/BOARD ACTIONS November 2014 - Awarded a construction contract to Shimmick Construction Company, Inc. for Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, for a total amount not to exceed $49,850,000, and approved a contingency of$2,492,500 (5%). ADDITIONAL INFORMATION N/A CEQA The Final Subsequent Environmental Impact Report for implementation of Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, was certified on March 23, 2013. A notice of determination was filed with the Orange County Clerk- Recorder's Office on March 28, 2013. Page 2 of 3 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (FY 2019/20 Budget Update, Appendix A, Page A-9), and the budget is sufficient for the recommended action. Even with this contract action, staff anticipates the project will finish at least $2 million under budget. Date of Approval Contract Amount Continaencv 11/19/2014 $49,850,000 $2,492,500 (5%) 07/24/2019 $ 498,500 (1%) $2,991,000 (6%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Presentation from July 10, 2019 Operations Committee Meeting JM:VR:dm:sa:gc Page 3 of 3 Sludge Dewatering and Odor Control at Plant 2 Project No. P2-92 Operations Committee ®'�" t■�"� �_ July 10, 2019 MIsM ^ 4� 00MMINA •1apoM A rProject Scope 1 oi6Esrtxs Replacement YEWMEax6 6,y� 6HIRIN6E nppp6E 4FE lUPMIIi LI 747:�w 2 1 ProjectObjectives �Ysl • Replace dewatering facilities that have reached the end of their service life at Plant No. 2 with more efficient technology • Lower biosolids management costs by reducing water content • Construct new odor control and chemical feed facilities for the new dewatering process • Demolish the aging belt press building 3 Project Eli • Construction 95% complete • Testing of centrifuges is complete • Demolition of existing dewatering building Ras started a 2 Lead and Asbestos _, Abatement • 2013 Hazardous Material Survey: • Asbestos testing was limited • Lead paint was in fair condition not requiring abatement • 2019 Hazardous Material Survey: • Identified over 700 gaskets as asbestos containing material • Lead paint is now in poor condition requiring abatement • Abatement will use the remaining project contingency vviry 5 Contract Contingency Status �MIN!, Groundwater dewatering risk(45 feet drawdown required) Unidentified subgrade structures Unidentified utilities passing through demolition area Construction interface with adjacent facilities Original Construction Contract $49,850,000 Authorized Contingency $2,492,500 5% Additional Contingency Requested $498,500 1% Total Contingency with this request $2,991,000 6% • 6 3 Recommended Action • Approve a contingency increase of $498,500 (1%) to the construction contract with Shimmick Construction Company, Inc. for Sludge Dewatering and Odor Control at Plant 2, Project No. 132-92, for a total contingency of $2,991 ,000 (6%). 7 Questions? t � f tN C , . 4 OPERATIONS COMMITTEE Meng Date TOBE. Dir. 07/eti10/19 07/24/1Or9 AGENDA REPORT Item Item Number 7 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 1, PROJECT NO. P1-101 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $357,000 (5%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of$2,499,000 (35%). BACKGROUND This project replaces existing solids dewatering, sludge thickening, and odor control systems at Orange County Sanitation District (Sanitation District) Plant No. 1. The objectives of the project include additional capacity to support expansion of the Groundwater Replenishment System, replacing aging facilities, lowering biosolids management costs, and improving sludge thickening to avoid the need to construct new digesters. This project includes installation of centrifuges for the dewatering system and the thickening system. Commissioning of the dewatering systems was completed with beneficial occupancy of that system occurring in March 2019. Commissioning of the thickening system is in progress and was expected to be completed by mid-June 2019. RELEVANT STANDARDS • Sound engineering and accounting practices, complying with local, state, and federal laws • 24/7/365 treatment plant reliability PROBLEM Commission of the thickening system has been delayed due to an unexpected accumulation of solids in the thickened sludge piping impacting the sludge density meters used to control the thickening centrifuge and reducing pipe capacity. Engineering time is needed to support optimization to the operation of the mechanical and chemical addition systems. Page 1 d 3 Additionally, due to the unanticipated complexity of the project that resulted in multiple design and functionality changes, additional contingency is needed to complete the record drawings for the project. PROPOSED SOLUTION Increase the Consultant contract contingency for extended support for the Design Consultant's process startup specialist and for additional as-built drawing efforts. No additional project budget is required to fund this increase. TIMING CONCERNS Construction is nearing completion and commissioning is close to complete. To address the current unknown condition affecting commissioning,the additional consultant services are needed such that commissioning can be successfully completed without delay to the project. RAMIFICATIONS OF NOT TAKING ACTION The current contingency is insufficient to cover the projected costs for Consultant support needed to complete the project. Without the additional funds commissioning activities would be severely hampered and project delays would be incurred. PRIOR COMMITTEE/BOARD ACTIONS March 2018 - Approved a contingency increase of $856,800 (12%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, and approved a contingency of$2,142,000 (30%). February 2017 -Approved a contingency increase of$714,000 (10%)to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. 131-101, and approved a contingency of$1,285,200 (18%). April 2012 - Approved a Professional Consultant Services Agreement with HDR Engineering, Inc. to provide bid and construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for an amount not to exceed $7,140,000, and approved a contingency of$571,200 (8%). November2011 -Authorized the General Managerto negotiate a Professional Consultant Services Agreement with HDR Engineering, Inc. for engineering support services during construction of Project No. P1-101, Sludge Dewatering and Odor Control at Plant No. 1. Page 2 of 3 ADDITIONAL INFORMATION HDR Engineering, Inc., the project's Design Consultant, was awarded a Professional Consultant Services Agreement for engineering support services during construction, including reviewing Contractor submittals, responding to requests for information, preparing design modifications,and providing otherservices needed of the original design firm. This support has been essential for successful completion of the project. The Design Consultant has been providing the services of a process startup specialist to assist Sanitation District staff in fully testing and optimizing systems before beneficial occupancy. That specialist is uniquely qualified by technical expertise, familiarity with the new systems, and relationships with Sanitation District staff to diagnose and resolve the problem. As the Consultant's Scope of Work is otherwise nearly complete, there is no remaining contingency to fund the troubleshooting and to continue the now-delayed thickening system testing. CEQA Construction of this project is within the scope of the Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project dated March 2005. The Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project, supplementing the Sanitation District's Strategic Plan Program Environmental Impact Report (PEIR), was certified in October 1999. Pursuant to CEQA Guidelines section 15168(c)(4), the Sanitation District has used a written checklist to document its evaluation of the project and has determined that the project is still within the scope of program EIR. In addition, the project was determined to be eligible for a categorical exclusion under the National Environmental Pollution Act (NEPA) in June 2006. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (FY 2019/20 Budget Update, Appendix A, Page A-9), and the budget is sufficient for this action. Date of Aooroval Contract Amount Contingency 04/25/2012 $7,140,000 $ 571,200 (8%) 02/22/2017 $ 714,000 (10%) 03/28/2018 $ 856,800 (12%) 07/24/2019 $ 357,000 (5%) $ 2,499,000 (35%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: Presentation from July 10, 2019 Operations Committee Meeting AL:dm:sa:gc Page 3 of 3 Sludge Dewatering and Odor Control at Plant No. 1 Project No. P1 -101 Operations Committee ®'�" t■�"� �_ July 10, 2019 MIsM ^ M� MMMMPBIA •1apoM A r = 1 ObjectivesProject • Replace aging sludge dewatering facilities • Lower biosolids management costs by reducing water content. • Improve sludge thickening to avoid the need to construct new digesters. z i ScopeProject , Milli Replacement PRIMARYRxI.EmNG Replacement Rehabilitation mR xTRIFUGE YEWLTERIN4 --E CENTRIFUGE EmRAGE (OROMY 3 Project . tjups—•"5 • Construction 99% complete • Dewatering centrifuges complete • Existing dewatering facilities demolished • Thickening centrifuges testing in _- progress Mai a z Project Challenge tom . - • Started testing thickening system • Testing impacted by unknown material buildup • Affects density meters & piping • Evaluating causes & options Consultant Costs MOM • Process troubleshooting support — Research& resolve unknown material buildup • Allowance for concept development — Develop options to mitigate unknown material condition • Project closeout support — Accurately document all as-built conditions&design changes 6 3 Contract Contingency Status Process Troubleshooting Support $160,000 2% Allowance for Concept Development $67,000 1% Project Closeout Support $130,000 2% Total $357,000 5% Original Consultant Contract $7,140,000(5%) Original Contingency Amount $571,200(8%) Currently Authorized Contingency $2,142,000(30%) Total Contingency with this request $2,499,000(35%) 7 Project • • • Currently project budget is $199,500,000 • Project budget is sufficient for this action • Remaining project activities — Resolution of unknown material buildup — Successful commissioning of Thickening System — Dewatering&Thickening Systems performance testing s 4 Recommended • • �o. �- • Approve a contingency increase of $357,000 (5%) to the Professional Consultant Services Agreement with HDR Engineering, Inc. to provide construction support services for Sludge Dewatering and Odor Control at Plant No. 1, Project No. P1-101, for a total contingency amount of $2,499,000 (35%). 9 0- Questions? t � s io 5 OPERATIONS COMMITTEE Meeting Date TOBtl.of Dir. 07/10/19 07/24/19 AGENDA REPORT ern Number Iem Number 8 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 GENERAL MANAGER'S RECOMMENDATION A. Approve a budget increase of $1,300,000 for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total budget of$10,300,000; B. Approve a Professional Construction Services Agreement with AECOM Technical Services, Inc. to provide construction support services for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $140,000; and C. Approve a contingency related to the Professional Construction Services Agreement of$14,000 (10%). BACKGROUND Activated Sludge Plant No. 1, constructed in 1974, is one of the three biological treatment processes at the Orange County Sanitation District (Sanitation District) at Plant No. 1. The facility includes 230 feet of 30-inch return activated sludge piping required to maintain full capacity and supply effluent to the Orange County Water District. The condition of this discharge pipe is compromised, and it no longer provides reliable service. This project will completely replace the existing pump station discharge header piping and buried piping from the pump station to the aeration basin walls. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Ensure the public's money is wisely spent • Comply with California Government Code Section 4526 to engage the best qualified firm "on the basis of demonstrated competence and qualifications" and "negotiate fair and reasonable fees' Page 1 d 4 PROBLEM In October 2018, the Board of Directors approved a budget increase based on a construction cost estimate of $5.8 million. That increase was to support a decision to purchase rather than rent bypass pumps for use on the project and then use the same pumps again for Headworks Rehabilitation at Plant No. 1, Project No. P1-105. By the time final design was completed, the estimated construction cost had risen to $6.1 million. On June 24, 2019, bids were received, with the lowest bid nearly$6.9 million, $1.1 million more than the estimate at the time the budget was increased. The contractors' bids were highly dependent on the means and methods of construction, as well as perceived risks working in tight spaces. To complete this project, an additional $1.3 million of project budget is requested; $1.1 million for the construction contract, and an additional$200,000 for the related construction contract contingency. The project also requires the design consultant to provide as-needed services during construction including submittal review, answering the contractors requests for information, reviewing construction change orders, participating in meetings, site visits, and preparing record drawings. PROPOSED SOLUTION Increase the project budget by $1.3 million from $9,000,000 to $10,300,000. Award a Professional Construction Services Agreement with AECOM Technical Services, Inc. to provide engineering support services during construction. TIMING CONCERNS The additional project budget is needed to award the construction contract and engineering support services will be needed at the start of construction. RAMIFICATIONS OF NOT TAKING ACTION The project budget is not sufficient to award the construction contract for which bids were received. Without additional budget, staff would need to reduce project scope and re-advertise for bids. To reduce costs, the purchase of the bypass pumps would be replaced with rental of the pumps. In that case, the cost of Headworks Rehabilitation at Plant No. 1, Project No. P1-105, would increase by the same amount, since that project was expected to use the pumps to facilitate construction. The engineering support services needed to facilitate and review construction activities will not be available, which may negatively impact the contract execution. Page 2 of 4 PRIOR COMMITTEE/BOARD ACTIONS October 2018 — Approved a project budget increase of $1,100,000 for a total budget of $9,000,000. June 2018 — Approved through the Fiscal Year 2019/2020 Budget a project budget of $7,900,000 for the Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129. May 2017—Approved a Professional Design Services Agreement with AECOM Technical Services, Inc. to provide engineering design services for the Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for an amount not to exceed $523,039 and approved a contingency of$52,304 (10%). December 2016 - Approved the creation of the P1-129 project for a total project cost of $3,300,000. ADDITIONAL INFORMATION AECOM Technical Services, Inc. has successfully furnished engineering services for the design of this project and their support services during construction will provide continuity through the completion of the project. Staff negotiated with AECOM Technical Services, Inc. for these support services in accordance with the Sanitation District's adopted policies and procedures. A review of the proposed price was conducted using estimated quantities of requests for information, submittals, meetings, site visits, change order review, and design revisions, as well as the level of effort for preparing record drawings. Based on this review, staff determined the negotiated fee to be fair and reasonable for these services. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination', including '(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services". The project consists of minor alterations to existing public facilities. A Notice of Exemption for this project was filed and recorded with the County of Orange on May 25, 2017, after the Board of Directors approved the Professional Design Services Agreement. Page 3 of 4 FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This project has been budgeted (FY2019-20 Budget Update, Appendix A, Page A-10) and the budget is sufficient to award the Professional Construction Services Agreement. Funds for the budget increase will be taken from a corresponding project budget reduction for Plant No. 2 Digester Facilities Rehabilitation, Project No. P2-91-1. That project budget can be reduced because the project is expected to be completed significantly under budget. Date of ADDroval Prolect Budget Continaencv 06/27/2018 $ 7,900,000 10/24/2018 $ 1,100,000 07/24/2019 $ 1,300,000 $10,300,000 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Professional Construction Services Agreement • Presentation from July 10, 2019 Operations Committee Meeting RL:dm:sa:gc Page 4 of 4 PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 24th day of July, 2019 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and AECOM TECHNICAL SERVICES, INC., for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide Construction Support Services for RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1, PROJECT NO. P1-129; and, WHEREAS, CONSULTANT is qualified to provide the necessary services for Construction Support Services in connection with these requirements; and, WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with the SANITATION DISTRICT's Purchasing Ordinance Section 4.03(B)for the continuation of services and has proceeded in accordance with said procedures to perform this work; and, WHEREAS, at its regular meeting on July 24, 2019 the Board of Directors, by Minute Order, accepted the recommendation of the Director of Engineering and General Manager pursuant to SANITATION DISTRICT's Purchasing Ordinance to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as "Attachment A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsullants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 1 of 19 C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CADD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT standard software. Conversion of CADD work from any other non-standard CADD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall be subject to an acceptance period of thirty calendar days during which the SANITATION DISTRICT shall perform appropriate acceptance tests. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that(a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, (b)subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. 2. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed One Hundred Forty Thousand Dollars ($140,000). Total compensation to CONSULTANT including burdened labor(salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment "E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 2 of 19 charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is$250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E" - Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E" - Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 3 of 19 DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"—Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 - COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications in scope of work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to attachment"D"Allowable Direct Costs for payment information. H. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan" as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a"per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at hftp://www.gsa.gov/portal/category/104711#. The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem" as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 4 of 19 Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2 -COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 5 of 19 such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: I. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 - COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 6 of 19 A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a) (3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 7 of 19 ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class VIII, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20) days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 8 of 19 accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000) or alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Drone Liability Insurance If a drone will be used, drone liability insurance must be maintained by CONSULTANT in the amount of one million dollars ($1,000,000) in form acceptable to the SANITATION DISTRICT. F. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 9 of 19 G. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the tern of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Two Million Dollars ($2,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a"claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5)years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail' coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10) days prior to the expiration of each policy term. H. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 (5/2010) or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 10 of 19 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. I. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty(30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30)days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, and shall be received by the SANITATION DISTRICT not less than thirty (30) days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. J. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. K. Separation of Insured All liability policies shall contain a "Separation of Insureds' clause. L. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 11 of 19 M. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. N. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. O. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. P. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 8. SCOPE CHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 2 - COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 12 of 19 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer, such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3) years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 13 of 19 Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Clarice Marcin, Senior Contracts Administrator Copy: Rich Leon, Project Manager Notices shall be mailed to CONSULTANT at: AECOM Technical Services, Inc. 999 Town and Country Road Orange, CA 92868 Attention: Keith Campbell All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT's staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty (30)days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30) days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13 - NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE A. Labor CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 14 of 19 and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. B. Air Pollution CONSULTANT and its subconsultanls and subcontractors shall comply with all applicable federal, state and local air pollution control laws and regulations. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1)current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 15 of 19 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, consultants, and agents (collectively the "Indemnified Parties'), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses including without limitation, attorneys'fees, disbursements and court costs, and all other professional, expert or consultants fees and costs and the SANITATION DISTRICT's general and administrative expenses (individually, a"Claim", or collectively, "Claims") which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, consultants, subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising from: (A)the sole or active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, consultant, subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 16 of 19 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall comply with all SANITATION DISTRICT policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30) days of receipt of notice of Agreement closeout. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 17 of 19 Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. AECOM TECHNICAL SERVICES, INC. By Date Printed Name&Title ORANGE COUNTY SANITATION DISTRICT By David John Shawver Date Board Chairman By Kelly A. Lore Date Clerk of the Board By Ruth Zintzun Date Purchasing & Contracts Manager Attachments: Attachment"A"—Scope of Work Attachment"B"— Not Used Attachment"C"— Not Used (or Not Attached) Attachment"D"—Allowable Direct Costs Attachment"E"— Fee Proposal Attachment"F"—Not Used (or Not Attached) Attachment"G"—Not Used (or Not Attached) Attachment"H"—Not Used (or Not Attached) Attachment"I"—Cost Matrix&Summary Attachment"J"—Not Used (or Not Attached) Attachment"K"— Not Used (or Not Attached) Attachment"L"—OCSD Safety Standards CMM PCSA PROJECT NO.P1.129 Revised 050719 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT 1 Page 19 of 19 AA Operations Committee Presentati July 10,2019 RAS Piping Replacement • Activated Sludge Plant No.l (built in 1974) provides 90 mgd of treatment capacity • Divided into two sides, both needed for normal operation • 220 feet of 30-inch piping r corroding, causing multiple leaks 2 1 RAS Piping Replacement • Tight spaces make construction difficult • Construction requires full bypassing of pump station • Avoids overlap between construction and operational activities • Minimize risks of leaks during construction • Pumps to be used on future projects as they will be purchased 3 Construction Bids Abhe&Svoboda,Inc. $6,863,092 Myers and Sons construction,LLC $7,035,000 MIMIC,Inc. $7,448,000 PCL Construction,Inc. $7,915,097 Stanek Constructors,Inc. $8,787,600 Construction Cost Estimates October 2018 $5,800,000(at time of last budget increase) May 2019 $6,100,000(when advertised for bids) 4 2 Proposed Project Budget MM Construction Contract $5,800,000 $6,900,000 $1,100,000 Construction Contract Contingency $517,914 $690,000 $172,086 OCSD Labor $1,434,083 $1,434,083 $0 Consultant Design Contract $550,054 $550,054 $0 Professional Construction Support $140,000 $140,000 $0 Services General Contingency $557,949 $585,863 $27,914 Total $9,000,000 $30,300,000 $1,300,000 5 Recommendation • Approve a budget increase of$1,300,000 for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total budget amount of$10,300,000. • Approve a Professional Construction Service Agreement with AECOM Technical Services Inc., for an amount of$140,000 with a $14,000 contingency. 6 3 ADMINISTRATION COMMITTEE Meng Dat0 TOBE. Dir. 07/lti17/19 07/24/1Of9 AGENDA REPORT Item Item Number 3 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: 2020 BENEFITS INSURANCE RENEWAL GENERAL MANAGER'S RECOMMENDATION Approve the Orange County Sanitation District 2020 Benefits Insurance Renewal for the overall not-to-exceed amount of$13,137,895; and a one-time adjustment to 2019 Health &Welfare Insurance purchase order for the not-to-exceed (NTE) amount of$230,000, as specified below: A. WORKTERRA (medical, dental, and vision plans; Health Savings Accounts [HSA]; and Employee Assistance Program [EAP])— Not to Exceed $12,377,584; B. Prudential (basic life, short- and long-term disability)— Not to Exceed $730,311; C. The Standard (EMT & Manager disability)— Not to Exceed $30,000; and D. Approve a contingency of$656,895 (5%). E. For the 2019 Plan Year, approve a one-time reallocation from the 2019 operating budget in the amount of $230,000 to be transferred to group health insurance benefits, resulting in a change in the total cost approved by the Board, from $12,894,770 to $13,124,770. The reallocation would not result in an increase to the overall 2019 budget. SUMMARY In accordance with collective bargaining agreements, the Orange County Sanitation District(Sanitation District) has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents. Over the years, Human Resources (HR) has implemented ongoing cost-containment measures to include: joining a risk-sharing pool under California State Association of Counties—Excess Insurance Authority(CSAC-EIA), making plan design changes to align with best practices, bundling insurance coverages, and negotiating rate guarantees. HR met and conferred with the unions to secure all benefit changes. The Sanitation District's health insurance broker, Alliant, began the renewal process for the agreed to benefits in March and received quotes in June. After negotiating with the insurance carriers, Alliant was able to secure competitive rates for the Sanitation District Page 1 of 5 without compromising the level of benefits provided to employees and eligible dependents. The cost of insurance coverage will increase by 0.1% overall for the 2020 Plan Year, with premiums specified in the attached rate list. Employees share in the cost of medical and dental insurance, paying 10% of the cost for employee-only HMO plans and 20% of the cost for all other medical plans and enrollment levels, as well as 20% of the cost of dental plans. A contingency budget in the amount of $656,895, or 5% of the total cost for benefits insurance, is requested. This contingency budget may be utilized in the event that the actual costfor benefits insurance exceeds the NTE amounts requested due to fluctuations such as changes in the Sanitation District's number of employees, changes in employees' eligibility for District-paid benefits, and other factors. Additionally, a one-time reallocation is requested from the 2019 operating budget in the amount of $230,000 to be transferred to group health insurance benefits to account for actual 2019 Plan Year costs. The benefit renewal data used in the 2019 projections was calculated based on the census data, which is required by the insurance carriers eight (8) months in advance of the plan year. Throughout the plan year, changes in employee composition such as new hires, employee plan selection and turnover, resulted in an increase in actual costs. BACKGROUND For the 2018 Plan Year, the overall increase to insurance was 3.1%, followed by 4.1% in 2019. In May 2015, the Board of Directors approved moving the Sanitation District's medical insurance from direct contracts with the carriers to joining the insurance risk sharing pool under California State Association of Counties—Excess Insurance Authority(CSAC-EIA). The association with CSAC-EIA resulted in immediate and future cost savings to the Sanitation District in medical insurance premiums and dictated a change from fiscal to calendar-based plan year, from January through December. Staff typically presents the benefits renewal information to the Board of Directors annually every July, for an effective date of January 151 of the year therafter. The move to CSAC-EIA has proved to be beneficial based on the rate increases the Sanitation District has received in the past few years. RELEVANT STANDARDS • Offer competitive compensation and benefits • Comply with OCSD Policy 4.1 — Insurance Page 2 of 5 PROBLEM The Sanitation District has a contractual obligation to provide healthcare and welfare insurance benefits to employees and eligible dependents, and any benefit changes are subject to the meet and confer process. Additionally, the Sanitation District is required to hold an annual benefits open enrollment period every October to provide employees and eligible dependents the opportunity to make changes to their benefit elections, for an effective date of January 151 of the year thereafter. Insurance contracts are required to be finalized in August 2019, ahead of open enrollment. Each year, the benefit renewal data used in cost projections is calculated based on the census data, which is required by the insurance carriers eight months in advance of the plan year. Throughout the plan year, changes in employee composition such as new hires, employee plan selection and turnover, may result in a change in actual costs. Based on the required timelines, projected costs and actual costs will vary year to year. PROPOSED SOLUTION Approve the benefits insurance renewals as described above with the respective carriers to ensure continued coverage for employees and eligible dependents, along with the contingency and 2019 budget reallocation. TIMING CONCERNS Board approval is necessary in July 2019 to ensure that the Sanitation District meets its insurance renewal deadlines in August, to finalize preparations for the October benefits open enrollment, and for continued coverage for Sanitation District employees and eligible dependents, in accordance with collective bargaining agreements and personnel policies. RAMIFICATIONS OF NOT TAKING ACTION Without Board approval, the Sanitation District cannot finalize the contracts with the insurance carriers in August for the 2020 Plan Year, and may not be able to fulfill remaining payments for the 2019 Plan Year. A lapse in payment to the insurance carriers would result in the interruption of medical, dental, vision, EAP, life, and disability coverage and services to employees and eligible dependents; and the Sanitation District would not be meeting its obligation to provide these benefits as provided for in collective bargaining agreements and personnel policies. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 3 d 5 ADDITIONAL INFORMATION Medical Insurance The Sanitation District's medical benefits are designed to help maintain wellness and protect employees and their families from major financial hardship in the event of illness or injury. The Sanitation District offers a choice of medical plans through Anthem Blue Cross and Kaiser Permanents. HMO (Health Maintenance Organization) plans offer comprehensive coverage. Employees have a choice between the Anthem Blue Cross HMO orthe Kaiser HMO plan. The PPO (Preferred Provider Organization) plan through Anthem Blue Cross offers a network of doctors and healthcare facilities that provide services to plan members at special discounted rates. The Sanitation District also offers two high deductible plans; a high deductible HMO plan through Kaiser, and a high deductible PPO plan through Anthem Blue Cross. District-Paid Retiree Medical Insurance Employees hired prior to July 1, 1988 receive a limited duration of District-paid medical insurance upon retirement. Retirees falling within this group receive 2.5 months of District- paid medical insurance for each year of continuous service. Employees hired after July 1, 1988 are ineligible for this benefit. Therefore, the benefit will reduce and eventually expire over time as the remaining employees within this group retire, and as the limited duration of each eligible retiree's benefit is completed. Dental Insurance The Sanitation District provides the Delta Dental plan to all benefit eligible employees. Vision Insurance The Sanitation District currently provides vision insurance to all benefit eligible employees through Vision Service Plan (VSP). Basic Life Insurance Life insurance provides protection for an employee's beneficiary in the event of death. All benefit eligible full-time and part-time employees automatically receive Basic Life and Accidental Death & Dismemberment insurance coverage. The benefit amount is$50,000 for employees, and three times salary for managers and executives. Coverage is offered through Prudential. Short-Term Disability Insurance The short-term disability insurance plan protects employees when non-work related illness or injury makes it impossible for them to work for a short period of time. Under the plan, income may be continued for up to 26 weeks. The Sanitation District pays the entire cost of coverage for regular full-time and part-time employees. Coverage is offered through Prudential. Page 4 of 5 Long-Term Disability Insurance The long-term disability insurance plan protects employees when an illness or injury makes it impossible for them to work for an extended period of time. Under the plan, employees who are disabled for more than 90 days are eligible to receive a benefit of 67%of their basic monthly pay up to$5,000/month. The Sanitation District pays the entire cost of coverage for regular full-time and part-time employees with five or more years of service. Coverage is offered through Prudential. Executive Disability The additional long-term disability insurance plan provides increased income protection for executives and managers. Under the plan, eligible employees who are disabled for more than 90 days due to a non-work related illness or injury are eligible to receive an additional benefit of $3,100/month. The first $5,000/month is covered by the Sanitation District group long-term disability plan benefit. Coverage is offered through The Standard. Health Savings Account Employees who elect the Anthem High Deductible Health Plan (HDHP) are simultaneously enrolled in a Health Savings Account (HSA)which provides a method for the employee to save for heath-related expenses. The Sanitation District currently makes an annual contribution to the HSA based on the increased deductible and the savings incurred by employees electing the HDHP plan compared to the PPO plan. Employee Assistance Program The EAP plan protects employees and family members when they need help with personal problems such as marital and relationship problems; stress, anxiety and depression; grief and loss; or substance abuse. Coverage is offered through ComPsych. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. The funds for the renewal of these insurances are derived from the Sanitation District FY 2019-20 Operating Budget. For the adjustment to 2019 group health insurance benefits, no additional budgeted funds are needed due to savings in other salary and benefit line items. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (mmocsd.corn with the complete agenda package: • 2020 Group Health & Welfare Insurance Renewal Rate List Page 5 of 5 2020 Group Health&Welfare Insurance Renewal Rates Monthly Rates per Employee Current Monthly 2020 Renewal %Change Medical Rate(2019) Kaiser HMO-Employee Only $629.00 $631.00 0.3% Kaiser HMO-Employee+1 $1,242.00 $1,245.00 0.2% Kaiser HMO-Employee+Fam $1,749.00 $1,754.00 0.3% Kaiser Bronze HMO-Employee Only $374.00 $375.00 0.3% Kaiser Bronze HMO-Employee+1 $731.00 $733.00 0.3% Kaiser Bronze HMO-Employee+Fam $1,027.00 $1,030.00 0.3% Anthem Blue Cross HMO-Employee Only $661.00 $663.00 0.3% Anthem Blue Cross HMO-Employee+1 $1,388.00 $1,392.00 0.3% Anthem Blue Cross HMO-Employee+Fam $1,983.00 $1,989,00 0.3% Anthem Blue Cross PPO-Employee Only $890.00 $892.00 0.2% Anthem Blue Cross PPO-Employee+1 $1,867.00 $1,872.00 0.3% Anthem Blue Cross PPO-Employee+Fam $2,666.00 $2,673.00 0.3% Anthem Blue Cross HDHP- Employee Only $746.00 $748.00 0.3% Anthem Blue Cross HDHP-Employee+1 $1,566.00 $1,570.00 0.3% Anthem Blue Cross HDHP- Employee+Fam $2,236.00 $2,242.00 0.3% Dental Delta Dental PPO-Employee Only $50.80 $50.30 -1.4% Delta Dental PPO-Employee+Family $137.10 $135.20 -1.4% Vision VSP Vision $16.70 Rate guaranteed through 12/31/2020 Life&Disability Prudential Basic Life/AD&D $0.214 per$1,000 Rate guaranteed through 12/31/2021 Prudential Long-Term Disability* $1.00 per$100 Rate guaranteed through 12/31/2021 Prudential Short-Term Disability $30.001 Rate guaranteed through 12/31/2021 Employee Assistance Program(EAP) ComPsych EAP $1.561 Rate guaranteed through 12/31/2024 Health Savings Account** Health Savings Account Banking Fees $2.721 $2.721 0.0% *Prudential Long-Term Disability is District-paid only for employees with at least 5 years of service ** Health Savings Accounts are only provided to those employees who select the Anthem High Deductible Health Plan LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE M eli gDale T07/z4/19r AGENDA REPORT Item Item Number 2 12 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: LEGISLATIVE AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Legislative Affairs Update for the month of June 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 Sanitation District Board Vice-Chair John Withers, Committee Chair Peter Kim, Committee Vice-Chairman Allan Bernstein, and General Manager Jim Herberg attended the Washington D.C. Advocacy Days, which took place June 17-19, during which current legislation, regulatory affairs, and possible funding opportunities were discussed. Meetings took place with Congressman Lowenthal; staff from the offices of Congressman Cisneros, Congresswoman Porter, Congressman Correa, and Congressman Rouda; and the National Association of Clean Water Agencies CEO Adam Krantz. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: • Federal Update & Legislative Matrix - ENS Resources • State Update & Legislative Matrix - Townsend Public Affairs • Grant Matrix • D.C. Lobby Day Report • Presentations from July 8, 2019 Legislative & Public Affairs Committee Meeting Page 2 of 2 Ll �V RESOURCES MEMORANDUM TO: Rebecca Long FROM: Eric Sapirstein DATE: June 17, 2019 SUBJECT: Washington Update During the past month,congressional efforts to develop fiscal year 2020 spending bills continued in the House. The Senate leadership continued to work with the Administration to develop a consensus understanding on how to reach an overall spending limit to avoid sequestration that would mean at least 10 percent across- the-board program cuts. On policy issues,several House committees continued to develop a legislative record on the need for infrastructure assistance with a focus on water,despite the apparent collapse of a comprehensive infrastructure package. Concern over Per-and PolyFluoroalkyl Substances- PFAS/PFOA contamination of drinking water supplies continued to command congressional attention through the budget,and policy making process. The following summarizes the status of these and other issues of interest to OCSD. Washington Meetings In Place for Board Members and District Representatives Over the past month,the annual Washington federal advocacy visit was arranged. Meetings are in place for OCSD to meet with its congressional delegation to identify and advocate on behalf of its priorities for infrastructure assistance,advancing support for food waste to energy programs,addressing biosolids management,and water recycling assistance. 2 1 P a g e Fiscal Year 2020 Spending Decisions Maintain Strong Support for Water Needs The House Committee on Appropriations approved both the Interior and Environment Appropriations Bill,which funds the US Environmental Protection Agency(USEPA) programs,and the Energy and Water Development Appropriations Bill,which funds water recycling and water efficiency programs at the United States Bureau of Reclamation (USER). The House will debate and pass the measures before it recesses for the Independence Day week. Passage of the min-busses is all but assured. Assuming this occurs,the Senate will then have adequate time to develop and pass its versions of these bills. In theory,this would mean that the two chambers could then meet in a conference committee to fashion a final measure in September,before the new fiscal year begins on October 1. However,the Administration has signaled that the increased spending in the House bills and the packaging of several bills into a minibus would result in a veto. It is too early to conclude that the Administration would follow through on the veto. Instead, it would appear highly likely that a stopgap spending measure will be required as Congress and the Administration seek to address contentious issues including the ongoing debate to fund the border wall, increase the debt ceiling limit and reconcile spending priorities in September and October. At USEPA,the State and Tribal Assistance Grants (STAG) program that includes the State Revolving Loan Fund would be funded at a total of$4.6 billion, an increase of $1 billion. Of this amount,the Clean Water SRF would be allocated$1.8 billion and the Drinking Water SRF would receive a record$1.3 billion. Grants to support sustainability projects would be funded at$4 million; a small amount,but the first time such grants have been appropriated. Additionally, for the first time,funding would be provided at$90 million to support direct grants to agencies for addressing stormwater capture for recycling. The Energy and Water Development Appropriations Bill seeks to provide significant funding for water recycling projects with Title XVI receiving$63 million. The Water Infrastructure Improvements for the Nation Act(WIIN) water recycling program would receive $10 million,but has been boosted with$13 million of Title XVI funding directed to be transferred. The small appropriation for WIIN water recycling projects is attributable to the fact that only$10 million in program authorization remains. Assuming the full$63 million is ultimately signed into law,it will offer OCSD a continued source of federal assistance to compete for in the year ahead. The important WaterSmart program that has benefited wastewater agencies implement innovative technologies in the past is appropriated$60 million, providing robust funding for technology assistance. 31Page Regulation and Remediation ofPFAS/PFOA The continuing escalating concern over the health impacts connected to PFAS/PFOA contamination of drinking water sources has generated dozens of bills to require either the listing of the chemicals for regulation under the Safe Drinking Water Act or developing grants assistance to communities for the cleanup of water supplies. The Senate is expected to vote on this comprehensive approach that would be attached to the National Defense Authorization Act, all but guaranteeing passage if the amendment is agreed to by the House during conference later this year. As drafted,USEPA would be required to impose monitoring requirements on water agencies. The key issue for OCSD is language that requires USEPA to issue interim guidance on the destruction and disposal of PFAS from,among other sources, biosolids,spent membranes,and filters. In addition,another approach that draws serious consideration is to impose compliance with treatment mandates upon manufacturers of products that contain PFAS/PFOA through effluent limitations. As Congress considers legislation,USEPA continues to study the extent of PFAS/PFOA in the drinking water supply and what the science deems appropriate to develop an enforceable human health protection standard. Recently, California's Attorney General sent a letter(on behalf of several state Attorneys Generals) to USEPA Administrator Andrew Wheeler demanding that a standard,known as an MCL,be established without delay. The standard if adopted would create an exceptionally low level of detection that could impose new monitoring and treatment mandates on water agencies. Infrastructure Initiative Collapses Due to Inability to Identify Funding Source The conventional wisdom that the White House and Congress would come together and work on a massive infrastructure program evaporated this past month when the president rejected the effort until such time as congressional investigations end. However, it seems that irrespective of the politics surrounding the infrastructure debate,the key challenge involves finding a source of revenue to support a dramatic funding demand in excess of a trillion dollars. While legislative time remains to develop an infrastructure package,it seems more likely that the House and Senate will develop individual infrastructure packages that will be finalized no earlier than next session. To this end,the Committee on Transportation&Infrastructure is expected to approve H.R. 1497 by the end of June or early July. H.R. 1497 would authorize$4 billion annually for five years to support the Clean Water SRF program along with provisions to support disadvantaged communities and other needs including green infrastructure. The priority to address resiliency and alternative water supply needs like water recycling continues to be a focus for the House Committee on Natural Resources and the Senate Committee on Energy and Natural Resources. ENS Resources,Inc. 1901 Pennsylvania Avenue,N.W. Suite 1005 Washington,D.C.20006 Phone 202.466.3955/TeleW 202.466.3787 41Page In the House, Representative josh Harder(D-CA) introduced the S.A.V.E 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's water recycling provisions mirror an earlier introduced bill, H.R. 1162,sponsored by Representative Grace Napolitano (D-CA). Both bills received a hearing before the House Subcommittee on Water, Oceans and Wildlife this month. The hearing now allows the bills to be redrafted into one measure, approved by the committee, and sent to the House Floor for debate and a vote this summer,at the earliest In the Senate, Senator Feinstein has just about completed a draft drought resiliency bill that she is collaborating with Senator Cory Gardner(R-CO). The bipartisan bill would likely become the key Senate water bill to address water needs in the western U.S. Staff for Senator Feinstein and the Committee on Energy and Natural Resources continue to work on provisions to address renewal of MIN provisions related to Bay-Delta issues. Central to the draft are provisions providing$100 million to support water recycling projects,raising the project assistance cap to$30 million,deauthorizing water recycling projects that have not received federal assistance over the past ten years,and creating a low interest loan program - Reclamation Infrastructure Finance and Innovation Act (RIFIA) to stimulate billions in new water infrastructure project funding. OCSD Federal Bills of Interest AUTHORBILL SUMMARY LATEST ACTIONOCSID POSITION POSITIONS Federal Legislation I 2020 Water Recycling Investment and Improvement Act. Establishes a House-3/4/19 grant program for the funding of water recycling and reuse projects, Referred to H.R. 1162 Rep.Grace Napolitano(D-CA) and for other purposes. Subcommittee on Watch CASA SUPPORTS Water,Oceans,and Wildlife Water Quality Protection and Job Creation Act of 2019. Provides House-03/06/2019 nearly$23.5 billion in direct infrastructure investment over the next Referred to the H.R. 1497 Rep. Peter DeFazio(D-OR) five years to address wastewater infrastructure and local water Subcommittee on Watch CASA SUPPORTS quality challenges.This bill allocates$20 billion in grants for the Water Resources and Clean Water State Revolving Fund. Environment To require the Administrator of the Environmental Protection House-2/7/19 Agency to shall designate per-and polyfluoroalkyl substances as Referred tp H.R.535 Rep. Debbie Dingell (D-MI) hazardous substances under the Comprehensive Environmental Subcommittee on Watch NYC Response,Compensation,and Liability Act of 1980. Railroads, Pipelines, and Hazardous Materials Pacific Northwest Earthquake Preparedness Act of 2019. Requires House-2/6/19 Passed the FEMA to develop a plan for the purchase and installation of an House by voice vote, earthquake early warning system for the Cascadia Subduction Zone. received in Senate The term "Cascadia Subduction Zone" and referred to H.R.876 Rep. Peter DeFazio(D-OR) Committee on Watch NYC Homeland Security and Governmental Affairs Updated June 2019 OCSD Federal Bills of Interest BILL SUMMARY OCSID POSITION OTHER E�� POSITIONS Regulatory Certainty for Navigable Waters Act. Repeals the Waters House -2/7/19 of the United States rule and amend the Federal Water Pollution Referred to H.R. 667 Rep.Jaime Herrre)ra Beutler(R- Control Act definition of navigable waters,and for other purposes. Subcommittee on Watch NYC Water Resources and Environment A bill to encourage the research and use of innovative materials Senate-2/7/19 and associated techniques in the construction and preservation of Referred to S.403 Sen.Sheldon Whitehouse(D-RI) the domestic transportation and water infrastructure system,and Committee on Watch NYC for other purposes. Environment and Public Works To require the Corps of Engineers to notify affected communities House-2/7/19 before releasing water contaminated with cyanobacteria from Referred to H.R. 977 Rep. Brian Mast(R-FL) flood risk management projects,and for other purposes. Subcommittee on Watch NYC Water Resources and Environment To amend the Federal Water Pollution Control Act to limit attorney House-2/7/19 fees and penalties in citizen suits,and for other purposes. Referred to H.R. 892 Rep. Duncan Hunter(R-CA) Subcommittee on Watch NYC Water Resources and Environment California New River Restoration Act of 2019. Requires the USEPA to House-2/7/19 establish a California New River restoration program for the New Referred to H.R. 358 Rep.Juan Vargas(D-CA) River. USEPA must(1) implement projects, plans,and initiatives for Subcommittee on Watch NYC the New River supported by the California-Mexico Border Relations Water Resources and Council;and (2) provide grants and technical assistance for Environment coordinating restoration and protection activities. A bill to amend the Federal Water Pollution Control Act to clarify Senate-2/7/19 the definition of navigable waters,and for other purposes. Referred to S. 376 Sen. Rand Paul (R-KY) Committee on Watch NYC Environment and Public Works Updated June 2019 OCSD Federal Bills of Interest BILL SUMMARY LATEST ACTION OCSID POSITION OTHER IL POSITIONS National Infrastructure Development Bank Act. Facilitates efficient House -2/7/19 investments and financing of infrastructure projects and new job Referred to creation through the establishment of a National Infrastructure Subcommittee on H.R. 658 Rep. Rosa DeLauro Development Bank, and for other purposes. Economic Watch NYC Development, Public Buildings, and Emergency Management To amend the Water Resources Development Act of 1986 to repeal House-2/12/19 the authority relating to reprogramming during national Referred to the H.R. 1137 Rep.John Garamendi (D-CA) emergencies. Subcommittee on Watch NYC Water Resources and Environment Coastal Communities Adaption Act. Improves the resilience of the House-3/619 built and natural environment to natural disasters and climate Referred to H.R. 1317 Rep. Harley Rouda(D-CA) change using,among other measures, natural and nature-based Subcommittee on Watch NYC features,and for other purposes. Water Resources and Environment A bill to require the Administrator of the Environmental Protection Senate-2/28/19 Agency to designate per-and polyFluoroalkyl substances as Referred to 5. 638 Sen.Tom Carper(D-DE) hazardous substances under the Comprehensive Environmental Committee on Watch NYC Response,Compensation, Liability Act of 1980,and for other Environment and purposes. Public Works A bill to provide adequate funding for water and sewer Senate-2/28/19 infrastructure,and for other purposes. Referred to S. 611 Sen. Bernie Sanders(I-VT) Committee on Watch NYC Environment and Public Works To amend the Federal Water Pollution Control Act to reauthorize House-4/9/19 Passed certain programs relating to nonpoint source management,and for House 329-56. other purposes. Received in Senate, H.R. 1331 Rep.Angie Craig(D-MN) referred to Watch NYC Committee on Environment and Public Works Updated June 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSID POSITION OTHER J� POSITIONS To amend the Federal Water Pollution Control Act with respect to House-3/15/19 permitting terms, and for other purposes. Referred to CASA, NACWA, H.R. 1764 Rep.John Garamendi (D-CA) Subcommittee on Watch Water Resources and ACWA-Support Environment PFAS Detection Act of 2029. Requires the Director of the United Senate-3/28/19 States Geological Survey to perform a nationwide survey of Referred to S. 950 Sen. Debbie Stabenow(D-MI) per0uorinated compounds,and for other purposes. Committee on Watch NYC Environment and Public Works BLUE GLOBE Act. Improves data collection and monitoring of the Senate-3/28/19 Great Lakes,oceans, bays,estuaries,and coasts,and for other Referred to S. 933 Sen.Sheldon Whitehouse(D-RI) purposes. Committee on Watch NYC Commerce,Science, and Transportation Coordinated Ocean Observations and Research Act of 2019. Senate-4/3/19 Reauthorizes the Integrated Coastal and Ocean Observation System Referred to Act of 2009,to clarify the authority of the Administrator of the Committee on S. 914 Sen. Roger Wicker(R-MS) National Oceanic and Atmospheric Administration with respect to Commerce,Science, Watch NYC post-storm assessments,and to require the establishment of a and Transportation National Water Center,and for other purposes. Smart Energy and Water Effeciency Act of 2029. Provides for a smart House-4/9/19 water resource management pilot program. Referred to H.R. 2019 Rep.Jerry McNerney(D-CA) 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 Water Quality Certification Improvement Act of 2019.Amends the House-4/11/19 Federal Water Pollution Control Act to make changes with respect to Referred to H.R.2205 Rep. David McKinley(R-WV) water quality certification,and for other purposes. Subcommittee on Watch NYC Water Resources and Environment Updated June 2019 OCSD Federal Bills of Interest BILL A��� SUMMARY ��W POSITIONS OCSID POSITION OTHER Digital Coast Act. Requires the Secretary of Commerce, acting House -4/9/19 through the Administrator of the National Oceanic and Atmospheric Referred to Administration,to establish a constituent-driven program to provide Committee on Natural a digital information platform capable of efficiently integrating Resources H.R.2189 Rep. Dutch Ruppersberger(D- MD) coastal data with decision-support tools,training,and best practices Watch NYC and to support collection of priority coastal geospatial data to inform and improve local,State,regional,and Federal capacities to manage the coastal region,and for other purposes. A bill to require the Secretary of Commerce,acting through the Senate-4/9/19 Administrator of the National Oceanic and Atmospheric Referred to Administration,to establish a constituent-driven program to Committee on provide a digital information platform capable of efficiently Commerce,Science, S. 1069 Sen.Tammy Baldwin (D-WI) integrating coastal data with decision-support tools,training,and and Transportation Watch NYC best practices and to support collection of priority coastal geospatial data to inform and improve local,State,regional,and Federal capacities to manage the coastal region,and for other purposes. A bill to amend the Federal Water Pollution Control Act to make Senate-4/9/19 changes with respect to water quality certification,and for other Referred to S. 1087 Sen.John Barrasso(R-WY) purposes. Committee on Watch NYC Environment and Public Works S.A.V.E.Water Resoures Act. Promotes water supply reliability and House-5/14/19 improved water management for rural communities, the State of Referred to H.R. 2473 Rep.Josh Harder(D-CA) California, and the Nation, and for other purposes. Subcommittee on Watch NYC Water,Oceans and Wildlife 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-5/1/19 Rep. Debbie Mucarsel-Powell(D a certain percentage of funds appropriated for revolving fund Referred to H.R. 2458 Ft) capitalization grants be used for green projects,and for other Subcomittee of Water Watch NYC purposes. Resrources and Environment Updated June 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSID POSITION OTHER in POSITIONS Protect Drinking Water from PFAS Act of 2019. Requires the House-4/29/19 Environmental Protection Agency (EPA)to address the level of Referred to perfluoroalkyl and polyfluoroalkyl substances(PFAS) in drinking Committee on Energy H.R.2377 Rep. Brendan Boyle(D-PA) water.Specifically,the EPA must publish a maximum contaminant and Commerce Watch NYC level goal and promulgate a national primary drinking water regulation for total PFAS. PFAS are man-made chemicals that may lead to adverse human health effects. To assist community water systems affected by PFAS House-5/7/19 contamination,and for other purposes. Referred to H.R.2533 Rep. Frank Pallone (D-NJ) Committee on Energy Watch NYC and Commerce To require the Administrator of the Environmental Protection House-5/7/19 Agency to revise the Safer Choice Standard to provide for a Safer Referred to X.R.2566 Rep. Darren Soto(D-FL) Choice label for pots,pans,and cooking utensils that do not contain Committee on Energy Watch NYC PFAS,and for other purposes. and Commerce PFAS Right-To-Know Act.Amends the Emergency Planning and House-5/8/19 Community Right-To-Know Act of 1986 to include per-and Referred to H.R.2577 Rep.Antonio Delgado(D-NY) polyfluoroalkyl substances on the Toxics Release Inventory,and for Committee on Energy Watch NYC other purposes. and Commerce A bill to encourage Federal agencies to expeditiously enter into or Senate-5/8/19 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 strata, Environment and and for other purposes. Public Works Making appropriations for energy and water development and House-6/17/19 H.R.2740 Rep. Kaptur, Marcy(D-OH) related agencies for the fiscal year ending September 30,2020,and Debating Watch NYC for other purposes. amendments on the floor Making appropriations for the Department of the Interior, House-6/17/19 H.R. 3055 Rep. McCollum, Betty(D-MN) environment,and related agencies for the fiscal year ending Amendments filed Watch NYC September 30,2020,and for other purposes with Committee on Rules Updated June 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSID POSITION OTHER am POSITIONS To establish a Water Infrastructure Trust Fund, and for other House-5/15/19 purposes. Referred to H.R.2705 Rep. Earl Blumenauer(D-OR) Subcommittee on Watch NYC Water Resources and Environment To standardize and extend certain Buy America Provisions. House-5/15/19 Referred to Committees on H.R.2755 Rep. Brendan Boyle(D-PA) Watch NYC Transportation and Infrastructure, Energy and Commerce A bill to amend the Safe Drinking Water Act to require the House-5/15/19 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 purposes. Environment and Public Works 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 the Referred to Watch NYC establishment of an Infrastructure Financing Authority,and for Committee on other purposes. Finance To make certain municipalities eligible for grants under the Federal House-5/16/19 Water Pollution Control Act,and for other purposes. Referred to H.R. 2776 Rep. Lori Trahan(D-MA) Subcommittee on Watch NYC Water Resources and Environment To amend the Safe Drinking Water Act to require continued and House-5/16/19 expanded monitoring of perfluoroalkyl and polyfluoroalkyl Referred to H.R.2800 Rep. Elissa Slotkin (D-MI) substances in drinking water,and for other purposes. Committee on Energy Watch NYC and Commerce A bill to include certain perfluoroalkyl and polyfluoroalkyl Senate-5/16/19 Sen.Shelley Moore Capito (D- substances in the toxics release inventory,and for other purposes. Referred to 5. 1507 Committee on Watch NYC WV) Environment and Public Works Updated June 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSID POSITION OTHER J� POSITIONS Contaminant and Lead Electronic Accounting and Reporting Senate - 5/22/19 Requirements for(CLEARR) Drinking Water Act of 2019. Amends Referred to S. 1613 Sen. Ed Markey(D-MA) the Safe Drinking Water Act to update and modernize the reporting Committee on Watch NYC requirements for contaminants,including lead, in drinking water,and Environment and for other purposes. Public Works Aquifer Recharge Flexibility Act. Provides flexibility to allow greater Senate-5/21/19 aquifer recharge,and for other purposes. Referred to the S. 1570 Sen.James Risch (R-ID) Committee on Energy Watch NYC and Natural Resources Aquifer Recharge Flexibility Act. Provides flexibility to allow greater House-5/21/19 H.R.2871 Rep. Russ Fulcher(R-ID) aquifer recharge,and for other purposes. Referred to Watch NYC Committee on Natural Resources Local Water Protection Act. Amends the Federal Water Pollution Senate-5/22/19 Control Act to reauthorize certain programs relating to nonpoint Referred to S. 1604 Sen.Amy Klobuchar(D-MN) source management, and for other purposes. Committee on Watch NYC Environment and Public Works Updated June 2019 OCSD Federal Bills of Interest BILL AUTHOR SUMMARY LATEST ACTION OCSID POSITION OTHER M POSITIONS Living Shorelines Act of 2019. Directs the Administrator of the Senate- 6/5/19 National Oceanic and Atmospheric Administration to make grants to Referred to State and local governments and nongovernmental organizations for Committee on S. 1730 Sen. Kamala Harris(D-CA) purposes of carrying out climate-resilient living shoreline projects Commerce,Science Watch NYC that protect coastal communities by supporting ecosystem functions and Transportation and habitats with the use of natural materials and systems, and for other purposes. To direct the Administrator of the National Oceanic and House-6/5/19 Atmospheric Administration to make grants to State and local Referred to governments and nongovernmental organizations for purposes of Committee on Natural H.R. 3115 Rep. Frank Pallone (D-NJ) carrying out climate-resilient living shoreline projects that protect Resources Watch NYC coastal communities by supporting ecosystem functions and habitats with the use of natural materials and systems,and for other purposes. Safe Water for Military Families Act. Directs the Secretary of House-6/12/19 H.R. 3226 Rep.Andy Kim (D-NJ) Defense to prohibit the use of firefighting foam containing Referred to Watch NYC perfuoroalkyl or polyfluoroalkyl substances,and for other purposes. Committee on Armed Services A bill to require the Administrator of the Environmental Protection Senate-6/13/19 Agency to establish a discretionary grant program for drinking Referred to S. 1637 Sen. Kristen Gillibrand (D-NY) water and wastewater infrastructure projects,and for other Committee on Watch NYC purposes. Environment and Public Works To require the Administrator of the Environmental Protection House-6/14/19 Agency to establish a discretionary grant program for drinking Referred to H.R.3254 Rep.Antonio Delgado(D-NY) water and wastewater infrastructure projects,and for other Subcommittee on Watch NYC purposes. Water Resources and Environment Legend: ACC-OC-Association of California Cities,Orange County LOCO- League of California Cities NYC-Not yet Considered CASA-California Association of Sanitation Agencies NACWA- National Association of Clean Water Agencies ACWA-Association of California Water Agencies CSDA-California Special Districts Association Updated June 2019 TC", WNSEND I f - C - TPA To: Orange County Sanitation District From: Townsend Public Affairs, Inc. Date: June 18, 2019 Subject: Legislative and Public Affairs Agenda Report State Political Update After the Appropriations Committee deadline on May 17, the focus of the Legislature was shifted primarily toward the Budget deadline of June 15.The Assembly and the Senate convened a series of budget subcommittee hearings to negotiate and adopt specific funding priorities and positions. Once these various budget subcommittees finalized their work, the Senate, and Assembly introduced their own Budget proposals to fund their priority policy areas and projects. Differences between the Senate and Assembly versions of the Budget were consolidated by a Budget Conference Committee before the final Budget was approved by both houses on June 13. In addition to focusing on the budget process, the Legislature also worked to pass all bills out of their first house by June 1. Any bills that did not pass before June 1 are now two-year bills and can be heard again in January 2020. The Legislature's focus will now shift toward passing bills out of their second-house policy committees before their Summer Recess. Below is a list of key upcoming deadlines in the Legislature: July 10 — Last day for policy committees to hear and report fiscal bills in their second house to fiscal committees. July 12—Summer Recess begins upon adjournment Fiscal Year 2019-2020 State Budget On June 13, the Assembly voted 60-15 to pass a $214.8 billion FY 19-20 State Budget. Shortly after, the Senate voted 29-11 to pass the same Budget bill. The Budget is currently on Governor Newsom's desk for his consideration and signature.When the Budget deal was announced earlier in June, Governor Newsom called it balanced and praised its fiscal responsibility and resiliency. As a reminder, the Governor of California has line-item veto authority of the State Budget. This record-setting Budget includes $150.7 billion in General Fund expenditures, as well as contains the largest reserves in California history of over$19 billion. The Budget includes a sweeping compromise on a sustainable funding source for safe and affordable drinking water projects for disadvantaged communities, as well as the highest per pupil education funding in State history and over$2 billion in one-time funding for programs to combat homelessness, promote housing-related infrastructure, and expand the State's Low Income Housing Tax Credit Program. Safe Drinking Water Proposals The Budget that the Assembly and the Senate passed on June 13 included a safe and affordable drinking water compromise. Included in the Budget for Fiscal Year 19-20 is $100 million from the Greenhouse Gas Reduction Fund (GGRF) as well as $30 million from the General Fund for safe drinking water projects in communities that do not have access to safe drinking water. Additionally, a trailer bill will be introduced and considered in the next couple of weeks, which will have a 5 percent GGRF continuous appropriation beginning 2020-21 with a total cap of $130 million toward safe and affordable drinking water programs. It will also provide a General Fund backstop to fill the Safe Drinking Water Fund should the 5 percent of the GGRF be lower than $130 million beginning 2023-24, with a sunset in 2030. As a reminder, the GGRF generates money as a key component of the State's Cap and Trade program, which sells emissions credits through quarterly auctions to large polluters in the State. The California constitution limits the use of GGRF to only projects that reduce greenhouse gas emissions or sequester carbon in the atmosphere. The nexus the Legislature is using to authorize GGRF appropriations is the reduction of vehicle emissions from trucking in water to several communities that do not have clean drinking water. The deal struck by legislators to provide a sustainable source of funding for clean drinking water projects means that the concept of a water tax is likely dead for the year. AB 217 (Garcia), which previously included a $0.50 per month charge to urban water system customers has been gut and amended to now deal with income tax credits. TPA will continue to monitor the Budget situation, policy bills, and trailer bills for language that institutes a water tax. Cap and Trade Auction In May, the California Air Resources Board (CARB) conducted their second Cap and Trade auction of the calendar year.The Cap and Trade program is a greenhouse gas emission reduction strategy that places a statewide cap on emissions and auctions off emission allowances on a quarterly basis. Major carbon emitters must bid on allowances in order to report their total emissions to the state each year. Once again, all available emission credits were sold, and the state expects to receive over$740 million from the May 2019 auction. Revenues generated from the Cap and Trade program currently fund various transportation projects, affordable housing, and sustainable community programs. 40 percent of the revenue is available through the discretion of the Legislature for future appropriations for projects that will reduce greenhouse gas emissions. The adopted Budget highlights the State's continued commitment to achieving a carbon-neutral economy and transitioning away from fossil fuels by investing $1.4 billion in new and continuing programs. The next Cap and Trade auction will take place in August 2019. 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 0 June 2019 Report 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 Floor and is now in the Senate Judiciary Committee. SB 210 (Leyva)—Heavy-Duty Vehicle Inspection and Maintenance Program SB 210 directs the Air Resources Board (ARB)to work in coordination with multiple state agencies in order to develop and implement a Heavy-Duty Inspection and Maintenance Program for non- gasoline, heavy-duty, on-road trucks. Specifically, SB 210 would develop a pilot program to measure and enforce new regulations on heavy duty on-road trucks and then require ARB to adopt a full program within two years after the pilot program ends. SB 210 is currently in the Assembly Transportation Committee and will be heard on July 1, 2019. 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 Floor and is currently in the Assembly Natural Resources Committee. 0 June 2019 Report 3 OCSD State Bills of Interest BILL SUMMARY &�ATEST ACTION r POSITION OTHERLEGISLATIVE qmmw�� PLAN POSITIONS Proposed Legislation 2019-2020 AB 11 Chiu [D] Community Redevelopment Law of 2019 Current law dissolved Failed to pass the Assembly Watch State Priorities: ACCOC-NYC redevelopment agencies as of February 1, 2012, and designates Appropriations Committee and Continue to monitor LOCC-Watch successor agencies to act as successor entities to the dissolved is now a two-year bill 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 Currently in the Senate Watch Legislative and ACCOC-NYC authorizes a local agency to provide, by ordinance,for the creation of Housing Committee Regulatory LOCC-Watch accessory dwelling units in single-family and multifamily residential zones Policies: Special CASA-NYC and sets forth required ordinance standards, including, among others, lot 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 Currenity in the Senate Watch Legislative and ACCOC-NYC Department of Housing and Community Development to propose building Housing Committee 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 Drinking Water Restoration Would require the State Water Passed the Assembly Watch State Priorities: ACCOC-NYC Resources Control Board to report to the Legislature by July 1,2025,on Appropriations Committee. Support legislation LOCC-Watch its progress in restoring safe drinking water to all California communities Will be heard next on the or regulations that CASA-NYC and to create an internet website that provides data transparency for all of Assembly Floor restrict the use of ACWA-NYC the board's activities described in this measure.The bill would require the microplastics in any CSDA-Watch board to develop metrics to measure the efficacy of the fund in ensuring product that is safe and affordable drinking water for all Californians. disposed of through the sewer system. OCSD State Bills of Interest r • . AB 217 Garcia [D] Income taxation: credits: exclusions: federal conformity The Personal Bill was gut and amended. Watch State Tactics: N/A ACCOC - NYC Burke [D] Income Tax Law, beginning on or after January 1, 2015, in modified Previously addressed safe and LOCC- NYC conformity with federal income tax laws,allows an earned income tax affordable drinking water. No CASA-NYC credit against personal income tax, and a payment from the Tax Relief longer of utmost importance to ACWA-NYC and Refund Account for an allowable credit in excess of tax liability,to an OCSD CSDA-NYC eligible individual that is equal to that portion of the earned income tax credit allowed by federal law as determined by the earned income tax credit adjustment factor, as specified.The law provides that the amount of the credit is calculated as a percentage of the eligible individual's earned income and is phased out above a specified amount as income increases. The law deems,for each taxable year beginning on or after January 1, 2018, and before January 1, 2019, the California Consumer Price Index as the greater of 3.1% or the percentage change in the California Consumer Price Index for the recomputalion of specified earned income amounts, phaseout amounts, and the amount of disqualified income that would disallow this credit.This bill,for taxable years beginning on or after January 1,2019,and before January 1,2020, would deem the California Consumer Price Index as the greater of 3.5% or the percentage change in the California Consumer Price Index for the recomputation of those specified amounts. 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. OCSD State Bills of Interest r • . ' AB 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. AS 291 Chu Emergency preparedness Would establish a Local Emergency Two Year Bill Watch State Priorities: ACCOC-NYC Preparedness and Hazard Mitigation Fund to support staffing, planning, 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 OCSD State Bills of Interest 7promote AB 292 Quirk [D] Recycled water: raw water and groundwater augmentation Current Currently in the Senate Legislative and ACCOC-NYC law requires the State Water Resources Control Board, on or before Environmental QualityRegulatory LOCC-Watch December 31, 2023,to adopt uniform water recycling criteria for direct Committee and will be heardPolicies:Water CASA-NYC potable reuse through raw water augmentation, as specified.This bill on June 19 Quality and ACWA-NYC would eliminate the definition of"direct potable reuse"and instead would 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 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 Two Year Bill Watch Guiding ACCOC-NYC Sales and Use Tax the gross receipts from the sale in this state of, and 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;❑ 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. OCSD State Bills of Interest 7adversely AB 587 Friedman [D] Accessory dwelling units: sale or separate conveyance Current Currently in the Senate Legislative and ACCOC-NYC property tax law establishes a welfare exemption under which property is Governance and FinanceRegulatory LOCC-Watch exempt from taxation if the property is owned and operated by a nonprofit Committee and will be heardPolicies: Special CASA-Work wl corporation that is organized and operated for the purpose of building and June 19. 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 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. AB 756 Garcia [D] Public water systems: perfluoroalkyl substances and polyfluoroalkyl Currently in the Senate Watch Legislative and ACCOC-NYC substances Would authorize the State Water Resources Control Board Environmental Quality Regulatory LOCC-Watch to order a public water system to monitor for pernuoroalkyl substances Committee and will be heard Policies: Source CASA-Watch and polyfluoroalkyl substances.The bill would require a community water on June 19 Control -Support ACWA-Watch system or a nontransient noncommunity water system, upon a detection legislation and CSDA-Watch of these substances,to report that detection, as specified.The bill would funding require a community water system or a nontransient noncommunity water mechanisms that system where a detected level of these substances exceeds the response reduce the amount level to take a water source where the detected levels exceed the of trash,waste, response level out of use or provide a prescribed public notification. chemicals,and harmful organic material that enter the sewer system. OCSD State Bills of Interest AB 841 Ting [D] Drinking water: contaminants: perfluoroalkyl and polyfluoroalkyl Currently in the Senate Watch Legislative and ACCOC-NYC substances. Would require the Office of Environmental Health Hazard Environmental Quality Regulatory LOCC-Watch Assessment to adopt and complete a work plan within prescribed Committee and will be heard Policies: Source CASA-Watch timeframes to assess which substances in the class of perfluoroalkyl and on June 19 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 in the Senate Watch State Priorities: ACCOC-NYC Would establish the California Circular Economy and Plastic Pollution Environmental Quality Support legislation LOCC-Support Reduction Act,which would require the Department of Resources Committee and will be heard or regulations that CASA-NYC Recycling and Recovery, in consultation with the State Water Resources on July 3. 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 in the Senate Watch Legislative and ACCOC-NYC the State Water Resources Control Board to administer provisions Appropriations Committee and Regulatory LOCC-Watch relating to the regulation of drinking water to protect public health. Current will be heard on June 24. 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 r • . . ' AB 1184 Gloria [D] Public records: writing transmitted by electronic mail: retention Currently in the Senate Watch Legislative and ACCOC-NYC Would, unless a longer retention period is required by statute or Judiciary Committee and will Regulatory LOCC-Oppose regulation, require a public agency for purposes of the California Public be heard on July 9. 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. adversely impact special district financing, operations, and administration. AS 1588 Gloria [D] Drinking water and wastewater operator certification programs Currently in the Senate Watch Legislative and ACCOC-NYC Current law requires a person who operates a nonexempt wastewater Environmental Quality Regulatory LOCC-Watch treatment plant to possess a valid, unexpired wastewater certificate or Committee and will be heard Policies: Special CASA-Support water treatment operator certificate of the appropriate grade. This bill, on June 19 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 AB 1672 Bloom [D] Solid waste: flushable products The California Integrated Waste Two Year Bill Support Legislative and ACCOC-NYC Management Act of 1989, administered by the Department of Resources 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 Currently in the Assembly Watch State Priorities: ACCOC-NYC establish in state government the Affordable Housing and Community Housing and Community Continue to monitor LOCC-Support Development Investment Program,which would be administered by the Development Committee and the state budget CASA-Watch Affordable Housing and Community Development Investment Committee. the Assembly Local process and ACWA-NYC The bill would authorize a city, county,city and county,joint powers Government Committee. 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 r • . ' SB 13 Weickowski [D] Accessory dwelling units Would authorize the creation of accessory Currently in the Assembly Watch Legislative and ACCOC-NYC dwelling units in areas zoned to allow single-family or multifamily dwelling Housing and Community Regulatory LOCC-Oppose use.The bill would also revise the requirements for an accessory dwelling Development Committee and Policies: Special unless amended unit by providing that the accessory dwelling unit may be attached to, or the Assembly Local Districts-Oppose CASA-Work wl located within, an attached garage, storage area, or other structure, and Government Committee. 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: Currently in the Assembly Watch Legislative and ACCOC-NYC enforcement.Current law requires the State Water Resources Control Water, Parks,and Wildlife Regulatory LOCC-Watch Board, no earlier than January 1, 2019, and no later than July 1,2020,to Committee and will be heard Policies:Water CASA-NYC adopt rules requiring urban retail water suppliers to meet performance on June 18. 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 r • . . ' SB 200 Safe and Affordable Drinking Water Fund. Would establish the Safe Currently in the Assembly Watch State Tactics: ACCOC-NYC and Affordable Drinking Water Fund in the State Treasury to help water Environmental Quality and Support tax reform LOCC-Watch systems provide an adequate and affordable supply of safe drinking water Toxic Materials Committee. 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 210 Leyva [D] Heavy-Duty Vehicle Inspection and Maintenance Program.Current law Currently in the Assembly Recommend Legislative and ACCOC-NYC requires the State Air Resources Board,in consultation with the Bureau of Transportation Committee and Oppose Regulatory LOCC-Watch Automotive Repair and a specified review committee,to adopt regulations the Assembly Natural Policies:Air CASA-Watch requiring owners or operators of heavy-duty diesel motor vehicles to perform Resources Committee Quality- Support ACWA-Watch regular inspections of their vehicles for excessive emissions of smoke.Current law CSDA-Welch requires the state board,in consultation with the State Energy Resources measures that Conservation and Development Commission,to adopt regulations requiring heavy- maintain and duty diesel motor vehicles to use emission control equipment and alternative fuels. enhance local This bill would require the state board,in consultation with the bureau and other decision-making specified entities,to implement a pilot program that develops and demonstrates authority,where technologies that show potential for readily bringing heavy-duty vehicles into an appropriate, in the inspection and maintenance program. development and implementation of air quality 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 OCSD State Bills of Interest r • . . ' SB 457 Hueso [D] Biomethane: gas corporations Under existing law, the Public Utilities Currently in the Assembly Watch Legislative and ACCOC-NYC Commission has regulatory authority over public utilities, including gas Appropriations Committee Regulatory LOCC-Watch corporations. Existing law authorizes the commission to fix the rates and 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. SB 667 Hueso[D] Greenhouse gases: recycling infrastructure and facilities.Would Currently in the Assembly Watch Legislative and ACCOC-NYC require the Department of Resources Recycling and Recovery to develop, Natural Resources Committee Regulatory LOCC-Support on or before January 1, 2021, and would authorize the department to and will be heard on June 24. Polciles: 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 funding 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. OCSD State Bills of Interest SB 732 Allen [D] Transactions and use tax. Current law establishes the South Coast Air Two Year Bill Watch Legislative and ACCOC-NYC Quality Management District vested with the authority to regulate air 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 6/21/2019 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. Other The primary focus of the Community Partnering Program (CPP) is sponsorship of water conservation and water-use efficiency programs and activities. Applications must be submitted 30 days prior to the start date of the event or program. Community Partnering Program Grant Metropolitan Water District Requests for a maximum $2,000 award will be $2,000 Yes For Plant No. 1 Signage We are applying Match ongoing Education Yes reviewed year-round and funds are awarded throughout the year. Funds are limited, however, and may be depleted prior to the ending of this fiscal year(June 30). The California Government Operations Agency (GovOps)will award $500,000 in grants as part of the statewide California Mass Timber Building Competition. Grants will be awarded to selected proponent teams presenting viable and repeatable mass timber solutions for commercial and multi- Mass Timber Competition CalGovOps family projects in California. The competition is being $250,000 Yes Headquarters Building We are applying No 18-Mar-19 Environment TBD hosted by GovOps and administered by WoodWorks—Wood Products Council. Updated 6/21/2019 Ll �V RESOURCES MEMORANDUM TO: Rebecca Long FROM: Eric Sapirstein DATE: June 21, 2019 SUBJECT: Washington Trip Summary On June 18-19,2019,OCSD Vice Chair,John Withers and Board Members Peter Kim and Alan Bernstein,accompanied by General Manager Jim Herberg,met with OCSD's congressional delegation Members and staff to discuss federal policy issues of interest. Additional meetings with senior officials in the USEPA Office of Water and National Association of Clean Water Agencies were held. Because of the legislative schedule a number of Members were unable to attend the meetings due to travel schedules and/or committee meetings. Summary and Outcome of Meetings The meeting discussions revealed a continuing support of OCSD federal priorities. In each discussion with congressional offices,there was a desire to ensure that OCSD's needs are advanced. To this end,the delegation expressed a willingness to endorse OCSD initiatives related to water recycling,delivering effective alternative energy production,and providing Flexibility in developing permit terms. L Congressional Meetings Summary A. Sheresh Khan,Legislative Assistant,Office of Representative Lou Correa was provided an overview of OCSD's current activities. In the discussion on PFAS/PFOA,appreciation for Rep. Correa's leadership in seeking a national drinking water health standard was noted. The priority expressed by OCSD to ensure that the underlying research and science is developed to establish an appropriate health standard was understood and accepted. Khan was informed that current legislative approaches should not impose new regulations on biosolids management absent definitive science because it could lead to decisions that would preclude effective and safe management of biosolids. Khan understood this issue and requested that any recommendations on how to address the issue be provided. 21Page On water recycling issues, Khan indicated that Rep. Correa was strongly supportive of OCSD's efforts to advance the science and technology to advance GWRS ability to allow for 100%recycling of available effluent. She offered to coordinate a joint delegation letter of support for the pending WaterSmart grant application that OCSD plans to submit to USBR. A review of the priority to advance the development of alternative energy production at OCSD by introducing food wastes into the treatment process to "supercharge'the digester process and create higher value methane was explained. Khan indicated a willingness to provide support as appropriate. She was informed that federal programs to support such efforts is important. Finally, Khan was provided an overview of the effort to allow for ten-year NPDES permit terms and was asked that Rep. Correa cosponsor the bill, H.R. 1764. Khan indicated that she would review the issue with Rep. Correa. B. Beth Hammon,Legislative Assistant,Office of Representative Harley Rouda was provided a similar update. However,as the Member whose congressional district includes OCSD facilities,the focus of the discussion was on PFAS/PFOA and its impact upon the treatment process,the priority for alternative energy production and NPDES permit terms. OCSD Board Members expressed support for Rep. Rouda's efforts to provide resources to cleanup PFAS/PFOA contamination. At the same time,Hammon was informed that premature mandates on destruction and disposal options could impose costs and approaches that could create new challenges for OCSD. Instead, she was told that OCSD would like to work with Rep. Rouda and her to ensure that any legislative response is grounded in sound science. On the matter of permit terms, Rouda's co-sponsorship of H.R. 1764 was noted and appreciation expressed. Finally, Hammon agreed that a letter of support on behalf of OCSD's water recycling grant application was something the congressman would endorse. C. Brieana Marticorena,Legislative Director, Office of Representative Katie Porter was provided an overview of OCSD's mission and priorities. Marticorena was enthusiastic about supporting OCSD's needs,endorsing the notion of a joint delegation letter of support for the water recycling grant application. On PFAS/PFOA she indicated an interest in being kept up to date on any concerns as Congress considers legislative approaches to the health threats. In the discussion, she also noted that Rep. Porter expressly requested the opportunity to tour OCSD during the upcoming congressional recess. D. The Honorable Alan Lowenthal and Chris Gorud,Legislative Director were provided an update on OCSD's legislative priorities which were positively received. In a review of the ongoing priority to allow for extended NPDES permit terms, Lowenthal staff noted that the commitment to allow for extended terms for good actors remained a priority. The request for a support letter on behalf of OCSD's water recycling project grant application to USBR was positively received and the idea of the joint delegation letter was agreed as a good approach. Finally,support for alternative energy such as OCSD's food waste project was expressed. 31Page E. John Watts,Environmental Counsel,Office of Senator Dianne Feinstein was provided an overview of the continued progress in advancing water recycling technologies at GWRS. An explanation of how OCSD is seeking to wring the last drop of recyclable water was provided and followed up with a request for a letter of support. Watts requested that a copy be provided to the Senator's Deputy State Director. On a related matter,Watts informed OCSD that the Senator's drought legislation would be introduced and would support new funding opportunities for water recycling projects like OCSD's. F. Alexis Segal,Legislative Assistant,Office of Senator Dianne Feinstein was provided an overview of the PFAS/PFOA challenges created for organizations like OCSD.She was requested that any legislative recommendations that are considered impose public health mandates that are grounded in adequate research as well as documented science. It was pointed out that mandates should consider the implications for management of biosolids since the possibility of classifying PFAS/PFOA as subject to CERCLA(Superfund) could jeopardize the safe and effective management of biosolids irrespective of the level of any constituents in highly treated biosolids. She was also provided a summary of OCSD's efforts to advance energy production from food wastes to allow OCSD to become 100% energy independent. G. Emma Norville,Legislative Director,Office of Representative Gil Cisneros was provided an overview of OCSD operations and priorities. In the course of reviewing GWRS and the ongoing effort to capture and treat the remaining water supply and the technical challenges, she indicated a willingness to have Rep. Cisneros sign a joint letter of support to USBR. A detailed discussion on the challenges created from PFAS/PFOA to the wastewater treatment process was provided with a focus on the fact that the introduction of the chemical compounds cannot be controlled by clean water agencies and this creates a need to ensure that the compounds are controlled at the source. In response to this and other comments, Norvell requested that OCSD provide her with any recommendations that should be considered as they consider legislative options to control and manage the destruction and disposal of PFAS/PFOA contaminated environments. H. The Honorable Linda Sanchez and Cody Willing,Legislative Assistant were provided an overview of OCSD. Rep. Sanchez noted that she is a strong supporter of water infrastructure. Given her role on the tax writing committee (Ways&Means), she was asked to work to ensure that renewable energy tax credits be available to public private partnerships that seek to advance food waste to energy projects at clean water agencies like OCSD. Last,Willing endorsed signing on to a joint letter in support of the OCSD grant application. This decision meant that the entire delegation will urge support for funding of the project application. 41Page IL U.S.Environmental Protection Agency A meeting with senior Office of Water,U.S. Environmental Protection Agency officials was convened. Attending the meeting were representatives from the Office of Science and Technology, Office of Drinking Water, Office of Wastewater Management,Office of Intergovernmental Affairs, and Region IX. The meeting was convened to review the status of the agency's efforts to address PFAS/PFOA and potential impacts upon OCSD. The discussion also addressed food waste energy production and biosolids availability to generate energy. In the discussion on PFAS/PFOA, EPA staff agreed that it is vital to ensure that the underlying science supports any standard. To that end,they indicated that the ongoing strategy is to use the next year to collect data and evaluate what a national drinking water standard should be set at to ensure public health. At the same time,staff indicated that biosolids and the impact of PFAS/PFOA on the management of biosolids is significant policy matter. They stated that they would like OCSD input,given its role in developing innovative solutions to complex water quality challenges. They also noted that on November 18, 2019 a meeting of key clean water stakeholders (NACWA, CASA and WEF among others) will convene to discuss how best to address biosolids management within the PFAS/PFOA debate. EPA staff also noted that should Congress legislate PFAS/PFOA policies that require guidance to be issued on the destruction and disposal of biosolids, as well as membranes and other spent filters,then the challenges will increase dramatically with no real understanding on how such guidance might be developed. On the issue of food waste and creating alternative energy supplies, the staff suggested that such endeavors are supported by the agency. At the same time, staff were unable to clarify why the agency would have rescinded the renewable energy standard for biosolids. Last,a brief discussion on water recycling and EPA's Water Recycling Action Plan occurred. EPA staff requested OCSD to provide input if appropriate on the Plan with a focus on how EPA might address technical challenges like those OCSD is currently researching to enhance opportunities to recycle all available effluents. National Association of Clean Water Agencies In a meeting with the leadership of NACWA, a discussion on how best to address PFAS/PFOA to protect the public without jeopardizing clean water programs occurred. NACWA officials indicated that the priority is to develop the science upon which a national standard can be based upon, ensure that clean water agencies are not tasked with the responsibility and costs to address a problem they did not create and,last,protect the continued beneficial use of biosolids from unjustified and unreasonable regulation. SIPage III. Action Items A number of action items from the meetings deserve review and,if deemed appropriate,follow-up. • Draft and transmit thanks letters (Eric and Rebecca) • Work with Rep. Rouda staff to ensure grant application letter of support is signed by delegation and transmitted to USBR Commissioner Brenda Burman (Eric and Rebecca) • Review House PFAS/PFOA Defense Authorization Amendment and provide comments on any concerns to Rep. Cisneros (Jim and OCSD staff/Support by Eric and Rebecca) • Extend invitation to Rep. Katie Porter to tour OCSD in August(Rebecca) • Provide follow-up information to USEPA on technical challenges presented by PFAS/PFOA as it relates to biosolids (Jim and OCSD technical staff) • Review USEPA Water Recycling Action Plan and provide any recommendations by July 1, 2019 (public comment period closes htms,//www.epa.gov/waterreuse/water-reuse-action-plan] Qim and technical staff) • Contact CASA biosolids staff to discuss issues of concern in anticipation of November 18 biosolids meeting with USEPA (Eric—Done) • Transmit letter of request to Senator Feinstein Deputy State Director to support grant application (Eric-Done) N['1 SAAH l/ ORANGE Presented By:COUNTY ' p/Np THE ESANITATION M\PoiF�• ISTRICT Eric Sapirstein . ,ATE ENS Resources, Inc. July 8, zosg Key legislative activities . . •$zg Billion over five years • $z Billion Set Asides:Green Infrastructure,Subsidized Assistance Etc. • Funding for Worker Development Programs • House Committee Mark-up July 24/26 PERMITTERIM LEGISLATION H.R. 1764 PE • 2-3Co-sponsors Will Deliverwinning Margin in Committee • Strong Support including CASA Mayors,Counties,NACWA,WEF,ACWA and WateReuse • Republicans Negotiating to Include in H.R.1764 as Condition to Support for Bipartisan Committee Bill • NationalDefense Authorization •Senate adopts language requiring Interim Guidance on disposal of biosolids and Spent Filters • House action pending with language to list PEAS/PFOA as Hazardous Waste under Superfund • If Superfund designation prevails,biosolids could become hazardous waste creating obstacles if no elimination for land application 2 1 Questions *IF S� 3 2 TO) WNSEND PUBLIC AFFAIRS ... TVA L.. z' W TOWNBFHDFACOM , SACMNENTO•WASHINOTON,X NORTIERN CP IFORNIA-CENTUL CAIIFORNIA-SOUMERN CALIFORNIA Agenda Legislative Schedule and Deadlines FY 2019-2020 Budget Water Tax Update Cap and Trade 2019 Legislation Slide and Deadlines Legislative Schedule Legislative • and Deadlines May 31 was the last day for bills to pass out of their house of origin Over 1,900 bills are still eligible for consideration in 2019 July 12 is the second-house policy committee deadline Summer Recess starts July 12 and goes through August 12 a 2 FY 1 ' 1 1 Budget s FY 1 • 1 1 Budget Final Budget proposal signed by Governor Newsom on June 27 $214.8 billion Budget is largest in State history • Includes strong investments in education, early childhood development, healthcare, and housing/homelessness 6 3 FY 1 • 1 1 Budget Continued Specifically, the Budget includes the following appropriations and positions: — $19.4 billion in reserves — Over$2 billion in one-time housing and homelessness funding — More per-pupil education spending than ever before — significant expansion of Medi-Cal — Over$300 million for disaster preparedness and recovery — Over$1 billion in Proposition 68 funds Other major investments in safe drinking water and Cap and Trade UpdateWater Tax 8 4 DrinkingSafe Water Proposal Legislative leadership and the Governor agreed to a safe drinking water funding deal during the Budget negotiations a�`P CA Negotiated Budget deal for FY 19 - 20: tee° °pF — $100 million from the Greenhouse Gas t,P Reduction Fund the Gen ~� — $30 million from the General Fund 5~ J� Pledged to authorize a continuous $130 million per year from the GGRF for future fiscal years 9 i 200 • • Drinking Water New negotiated safe drinking water deal was amended into SB 200 (Monning) SB 200 now contains a 5 percent continuous appropriation from the the GGRF up to $130 million per year — Provides a General Fund backstop until 2030 — Funding would still be used for grants, loans, contracts, or services to help water systems provide safe and affordable drinking water Passed the Assembly Environmental Safety and Toxic Materials Committee on July 2 with 8 ayes and 1 nay 10 5 . . and Trade 11 Cap and Trade Expenditure Plan • Fiscal Year 19-20 Budget included a $1.4 billion Cap and Trade appropriation • Includes: — $238 million for the Clean Vehicle Rebate Project; — $182 million for clean trucks, buses, and off-road freight equipment including the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project and advanced technology freight demonstration and pilot commercial deployment projects; — $165 million for Healthy&Resilient Forests to reduce the risk of wildfire; — $25 million for waste diversion projects 12 6 1 • Legislation 13 • Legislation ® �® me tawl nolwNy.nm.mncl++ae.nN,bv wow. ammylnN.s.mm umwal d�wd msrPwol ramw=Famlm¢mae Wann=omn.pow¢mlrr,ane wpwrr H,w narmby rownwlanom Imn.mlw.mw,ped w.,,w.,.nw,.lw Gmmmee I mnm Emn,m o In lom,„,.emrym,mNN.aw.m lone wwk�em, won�.prinwww amrdmrw .pewbamrlml.pm..waimwmurmamaep a iww lsre mlonml nwaNpe-Ip.nlw+n om mrmn.b.nN.yewW b, l a¢Xnwuabb d wpwrl mby4,111m SO SO 0 Ne IMumbpl Waguw eelWeF No neSM M FFweY4 LF'nMn9 IS., FUM In WMF gneeONe PunnW/Em+ormerN e rrwry. np abx MeryeM imilc MueeYe Cwnmlor eN nknof to Ne Feeemdy µpgMnlors om x B SSR(XVWwp1 WI1n ronema ti INA IPM b 10 Wwb WN mPPoRrINwa wNlly upplen IwNw Gwnmmee w92_ sa Iw megel ary 1,N90.and N.1lean.1 on w Mlon eamary SO SSi lH—S Wwdmpun GlPeoyW bdewkp ennwepn M¢bvrepyb Suppl Ne Meemby N-. � wp W&n WP e nnpwowieAom mdnc,yeW Mp.. n rMd—u n ,rown meA¢pe,NN oyeNoxx6 ndw4on IMNnmFly CommlXee 14 7 TOWNSEND TPA Thank You Cori Williams Eric O'Donnell Southern California Director SentorAssociate CWilliams@townsendpa.com EODonnell@townsendpa.com w .townsendoa.com w .townsendoa.com 15 8 LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE M eli gDale T07/24/19r AGENDA REPORT Item Item Number 3 13 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: PUBLIC AFFAIRS UPDATE FOR THE MONTH OF JUNE 2019 GENERAL MANAGER'S RECOMMENDATION Receive and file the Public Affairs Update for the month of June 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. Page 1 of 2 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. ADDITIONAL INFORMATION June 2019 Activity # # of Guests OCSD/OCWDTours 5 105 OCSD Tours 6 84 Speaking Engagements 3 110 Events 1 500 Current Activities -June 2019 m • 65 Anniversary Coordination • Director Doug Chaffee Tour Cal State Fullerton Speaking Engagement Anaheim OC Green Expo on June 22 • Anaheim District Meeting Upcoming Activities—July 2019 65th Anniversary Open House Join us as we celebrate our 65th Anniversary on Saturday, July 27 from 9 a.m.-1 2 p.m. There will be booths, games, tours, and more. If you want to take a tour, please sign up as soon as possible at www.ocsd.com/tours (time slots are filling fast). Ribbon Cutting for OCSD Centrifuge Celebrate the unveiling of the Sanitation District's newest centrifuges, among the largest in the world on Saturday, July 27 at 9 a.m. Communications Audit The Communications Audit has been finalized and an RFP will be issued by June 30, 2019 to select a firm to conduct the audit. ATTACHMENTS The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Outreach Report June 2019 • Media Clips June 2019 • Presentation from July 8, 2019 Legislative & Public Affairs Committee Meeting Page 2 of 2 Outreach Report June 2019 r . . 5/28/19 New Employee/Open Tour 25 5/30/19 Vanguard Nursing Tour 19 5/31/19 UCI Tour 30 6/4/19 UC Riverside Tour 22 6/5/19 CSUF Nursing tour 12 6/6/19 Lab Tour 2 6/6/19 Cub Scout Tour 15 6/7/19 USFCA Nursing Tour 21 6/12/19 Anaheim District Meeting-Speaking 45 6/12/19 Girl Scout Troop tour 25 6/13/19 Perceiver School Tour 12 6/13/19 Anaheim District Meeting-Speaking 40 6/19/19 Baldly View Nursing Tour 23 6/22/19 OC Green Expo Soo 6/25/19 OCHCA Tour 25 6/26/19 CSUF Nursing tour 24 6/26/19 CSUF Speaking Engagement 25 6/27/19 Director Chafee tour 8 Monthly News Clippings G�JN�V S A N I TgT�Oy = 9 Q 2 c� o � FCTi� �E June 2019 OCSD Public Affairs Office Table of Contents GW RS...................................................................................PAGE 1 May 17, 2019 From Toilet to Tap: What Cities need to Overcome to make that happen By: Sasha Harris-Lovett and David Sedlak The Wall Street Journal HUMAN INTEREST................................................... .................PAGE 4 May 24, 2019 Orange County Sanitation District selects new environmental director By: Daily Pilot Staff Daily Pilot May 24, 2019 Nguyen joins field for appointment to water board seat By: Brooke Staggs OC Register June 11, 2019 OCSD Selects New Leadership By: Association of California Cities Staff Association of California Cities Orange County June 13, 2019 As Californians save more water, their sewers get less and that's a problem By: Gary Pitzer Western Water June 15, 2019 Special districts stress focused services, prudent planning By: Neil McCormick Voice of OC -Opinion SOCIAL MEDIA POSTINGS ........................................................PAGE 20 The Wall Street Journal May 17, 2019 TU WALL srxfr JOURNAL. From Toilet to Tap:What Cities Need to Overcome to Make That Happen Recycled sewage will be a part of more cities'water supplies in the future.But how do you get past the yuck factor? The city of Los Angeles aims to upgrade the Hyperion Water Reclamation Plant,seen above,as part of a plan to recycle 100%of its wastewater by 2035. By Subs Harris-Lovett and David Sedlak May 17,2019 11:05 a.m.ET Would you drink recycled sewage?It's a question you may need to think about someday. J In recent years,the idea of creating a circular economy—in which all of the resources coming into am cities are recycled after they are used—has taken hold.We now routinely recycle paper,glass and food scmps,as well as parts of demolished buildings and crumbling highways.Widespread sewage recycling could be the next frontier. Productively reusing sewage is nothing new.For centuries,people have used their wastes for irrigation.Then, about 50 years ago,engineers developed technologies that allowed them to turn sewage back into drinking water. Since then,water-stressed cities across the country have quietly begun in close the loop on their water systems. Today more than four million Americans in Atlanta,Northern Virginia,Phoenix, Southern California,Dallas,and El Paso,Texas,get some or all of their drinking water from treated sewage. Many more cities are likely to follow that same path.Their current water supplies aren't likely to be adequate in the future,given the many continuing stresses they face—in particular,droughts,the shifting and uncertain precipitation patterns due to climate change,increasing urban populations,more-stringent regulations to protect endangered fish or other wildlife,and the water needs of agriculture and industry. One of its greatest benefits is that sewage keeps flowing even during droughts.And once it's purified to drinking- water quality,it doesn't require the installation of any new pipes to carry it to people's homes. But cities interested in taking the toilet-to-tap plunge must overcome several hurdles. Overcoming reluctance First,of course,the sewage needs to be made clean enough to drink.Fortunately,modern technologies can produce recycled water that is even cleaner than much of the drinking water we get from rivers,lakes and groundwater wells.Reverse-osmosis membranes remove bacteria,viruses,pharmaceuticals and other chemicals in sewage.Follow that with exposure to ultraviolet light and hydrogen peroxide to mop up anything that gets through the membranes,and you have water that meets all drinking-water standards.In fact,recycled water can be so clean that,just like the popular brands of bottled water produced by the reverse-osmosis process,minerals have to be added back in in make it taste like the water we're familiar with. The next hurdle is surmounting the disgust associated with drinking recycled water.In other words,the yuck factor.Treated sewage has long been widely used to water lawns and golf courses,without much fuss.But it's obviously an entirely different story to ingest it,even if people know it's clean. The yuck factor can seem like an insurmountable barrier,especially in an era when public confidence in the safety of tap water has been shaken by reports of lead and fluorinated chemicals in water supplies.But it has proved not to be. Through decades of experience with sewage recycling—also known as potable water reuse—in different locales, water utilities have learned that communities support potable water reuse when it meets a perceived need and is managed by trusted and competent institutions. To overcome the queasiness,utilities planning recycling projects conduct extensive outreach programs to address community concerns.That can include community meetings,public toms of the utility's facilities that and with an opportunity to drink recycled water,and bottles of recycled water being given away at public events.The Orange County Water District in Southern California held thousands of tours and community meetings on its potable reuse project. Beyond sharing their story,water utilities cultivate public trust by demonstrating a commitment to transparency and competency.The utilities that have overcome the yuck factor are the ones that include physicians and public- health specialists on their oversight boards,invest in state-of-the-art treatment and monitoring technologies,make their water-quality data public and otherwise go the extra mile when it comes to ensuring their process is safe and reliable. 2 Retaining"at Once the public is on board and utilities start recycling sewage,they need to be vigilant to ensure that the water remains safe to drink.Treatment plants should continuously monitor for contaminants of all kinds,noljust those they are required to watch for by the federal Environmental Protection Agency and local regulatory agencies. When a new contaminant is discovered or when an unexpected hiccup happens in the treatment process,the utility has to respond before public health and/or confidence are compromised. That requires investment in the people and equipment needed to stay ahead of the curve.For example,in the late 1990s,N-nitresodimethylamine(NDMA)—a potent carcinogen—was detected in recycled water by the Orange County Water District.The utility surmised that local industries were discharging chemicals into the sewer that its water-treatment processes were converting into NDMA.Rather than falling back on the excuse that there wasn't an established drinking-water standard for the chemical,the utility suspended recycling operations until it developed ways to reduce these industrial NDMA-precursor discharges to the sewer,as well as minimize NDMA formation during treatment by acquiring new approaches for destroying the chemical in its treatment processes. This response wasn't cheap:It required investing millions of dollars in research and development despite the absence of a government mandate to do so.Considering the cash-strapped state of utilities in many of the nation's cities,it is worth considering how the vigilance of the early adopters can be replicated by the next set of water- recycling utilities. Let it flow Another concern looms as potable water reuse becomes more common:In and regions,treated wastewater is all that keeps some rivers flowing in the dry season.Parts of the Los Angeles River,where canoeing is becoming more popular,would no longer flow if the city expanded its potable water reuse program.If Dallas recycled more sewage,Houston's water supplies could suffer:The Trinity River,which consists primarily of Dallas's treated sewage during periods when it hasn't been raining,would no longer help refill one of Houston's main reservoirs. (The water from the river is made acceptable for drinking by natural purification during the long trip downstream and Houston's drinking-water treatment plants.)Some of these issues can be circumvented with agreements with downstream users before potable reuse systems are built,but this issue is likely to grow in importance as more cities our to water recycling. Finally,it's important to note that potable water reuse is expensive,so ifs unlikely that a city would consider it in the absence of significant concerns about its water supply. Ultimately,in cities that can make a case for recycled water,the future of potable water reuse depends upon the willingness of water providers to do what it takes to make sure that the public can be confident about the quality of water coming out of their tap. Dr.Hams-Lovett is a postdoctoral fellow at the Berkeley Water Center,at the University of California,Berkeley. Dr.Sedlak is co-director of the Berkeley Water Center and deputy director of the National Science Foundation's Engineering Research Center for Reinventing the Nation's Urban Water Infrastructure.They can be reached at reports@wsj.com. 3 Daily Pilot May 24, 2019 DAILY' PIL(..)T Orange County Sanitation District selects new environmental director Daily Pilot staff- May 24, 2019 The Fountain Valley-based Orange County Sanitation District has chosen Lan Wiborg as its new director of environmental services. Wiborg has served in the water industry for about two decades, with roles including San Diego's deputy public utilities director of long-range planning and water resources. "Lan was selected from a talented pool of candidates," Orange County Sanitation District General Manager Jim Herberg said in a statement. "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." 4 Orange County Register May 24, 2019 ORANGE COUNTY 110misffm Nguyen joins field for appointment to water board seat; she faces 6 rivals Unprecedented interest in Municipal Water District of Orange County after tunnel project affecting SoCal is killed By Brooke Staggs bstaggs(a).scng.com @JournoBrooke on Twitter May 24, 2019 After much speculation about whether Janet Nguyen might run for one of Orange County's hotly contested congressional seats in 2020, the Republican former state senator has thrown her hat in a surprising ring. And she's not alone. Nguyen is one of seven people vying to fill a board of directors seat with the Municipal Water District of Orange County. The seat was left vacant after director Wayne Osborne, who was elected to a four-year term in 2016, retired in late April. "I was really heartened to see someone from that level interested in serving on our board;' district board President Brett Barbra said of Nguyen. With an applicant roster that also includes former city councilmen and a current school board member, Barbre —who's been on the water board since 2000—called the level of interest in working on the water board "unprecedented:' He attributes part of that spike in interest to decisions recently handed down from the state, including Gov. Gavin Newsom's May 2 move to kill a controversial 30-year plan to build twin tunnels under the Sacramento-San Joaquin River Delta to help move water to the south. 5 Indeed, several candidates— including Nguyen — mentioned the twin tunnels project in their water board applications. "That's really heightened interest in water issues," Barbre said. "I think that irresponsibility across the state is driving a lot of this." Metropolitan Water is a wholesale water supplier. It buys water imported from the Colorado River and the State Water Project and sells it to 28 city water departments and private water districts. Those agencies supply water to more than two-thirds of Orange County, including every city except Anaheim, Fullerton and Santa Ana. A seven-member board oversees the district's $10.8 million operating budget and nearly $250 million in annual water sales. Board members can take home more than $30,000 a year in pay and are eligible for benefits that can amount to another $20,000 a year. That includes nearly $300 for every meeting attended, at up to 10 meetings per month, along with optional health insurance coverage, a retirement plan, transportation reimbursement and more. Directors are elected every four years to represent different areas of the county. Osborne's vacant seat is for Division 3, which includes Cypress, Fountain Valley, Los Alamitos, Stanton and Westminster plus portions of Garden Grove and unincorporated Orange County. Nguyen now lives in Fountain Valley. She pointed out that she's represented more than 90 percent of the water district's Division 3 over the last decade in her elected roles on the Garden Grove City Council, county Board of Supervisors and state Senate. There were originally nine candidates for the MWDOC seat. Los Alamitos Councilman Richard Murphy applied for the vacancy and was backed by several local leaders, including First District Supervisor Andrew Do. But once Murphy discovered he couldn't simultaneously sit on the water board and keep his seat on the Los Alamitos City Council, he withdrew his name from consideration. At least two other candidates might face similar decisions if appointed to the water district seat. Khanh Nguyen is a civil engineer who already serves on the Westminster School District board, and Betty Burnett, an attorney from Fountain Valley, serves as general manager at South Orange County Wastewater Authority. Other candidates include former Fountain Valley Mayor Larry Crandall, former Garden Grove mayor pro tem Kris Beard, former Fountain Valley planning commissioner Robert McVicker, construction marketing manager Mathew Forester and former Los Alamitos school board member Jeffrey Barke. Barka, a physician who helps with regional disaster preparedness, received an endorsement from County Supervisor Michelle Steel, who recently announced that she is running against Rep. Harley Rouda, D-Laguna Beach, for the 48th Congressional District. 6 Nguyen was rumored to also be eyeing that CA-48 seat. She declined to elaborate Thursday on her future plans, saying only that if appointed to the water board she'll run for re-election in 2020. The water district board is expected to appoint a candidate to fill Osborne's vacant seat at Wednesday's meeting. Barbra said he'd prefer to have residents vote on who'll hold the seat for the next 19 months, but he couldn't get support from the rest of the board to hold a special election that might cost$1 million. 7 Association of California Cities June 11, 2019 Assodaff California Cities Orange County •Eduutlon •POILry � •AMoray Association of California Cities, Orange County<events@ ccoc.ore> June 11,2019 OCSD SELECTS NEW LEADERSHIP 4&JNty SNIT.gr w � o HE Fountain Valley, California -The Orange County Sanitation District (OCSD) 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. 8 Wiborg is the inaugural recipient of the San Diego State University (SDSU) Graduate School of Public Health a 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. 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. About OCSD OCSD is a public agency that provides wastewater collection, treatment, and recycling for approximately 2.6 million people in central and northwest Orange County. OCSD is a special district that is governed by a 25-member Board of Directors comprised of 20 cities, four special districts, and one representative from the Orange County Board of Supervisors. OCSD has two operating facilities that treat wastewater from residential, commercial and industrial sources. 9 Western Water June 13, 2019 Western Water June 13, 2019 Gary Pitzer AS CALIFORNIANS SAVE MORE WATER, THEIR SEWERS GET LESS AND THAT'S A PROBLEM WESTERN WATER NOTEBOOK: LOWER FLOWS DAMAGE EQUIPMENT, CONCENTRATE WASTE AND STINK UP NEIGHBORHOODS; SHOULD WATER CONSERVATION FOCUS SHIFT OUTDOORS? 0 adCorrosion is evident in this wastewater pipe from Los Angeles County. (Image:Los Angeles County Public Works Department) Californians have been doing an exceptional job reducing their indoor water use, helping the state survive the most recent drought when water districts were required to meet conservation targets. With more droughts inevitable, Californians are likely to face even greater calls to save water in the future. However, less water used in the home for showers, clothes washing and toilet flushing means less water flowing out and pushing waste through the sewers. That has resulted in corroded wastewater pipes and damaged equipment, and left sewage stagnating and neighborhoods stinking. Less wastewater, and thus more concentrated waste, also means higher costs to treat the sewage and less recycled water for such things as irrigating parks, 10 replenishing groundwater or discharging treated flows to rivers to keep them vibrant for fish and wildlife. It's a complex problem with no easy answers. Some water agencies even have suggested the state needs to push more conservation efforts to outdoor water use rather than indoor use to keep wastewater flowing. For now, local sanitation agencies are beginning to assess how best to respond with changes in how they operate—and how they plan for a future that will inevitably include more droughts. "Indoor water savings are good, but the flip side is, as you get lower [use] ... at what point are you causing more harm than the benefit you are getting from saving those drops of water?." said Adam Link, director of operations with the California Association of Sanitation Agencies. dam Link,director of operations with the California Association of Sanitation Agencies(Image:California Association of Sanitation Agencies) Link said his organization had heard anecdotal accounts of problems, but that they varied depending on location. Wastewater agencies generally handled problems through operational changes such as increased chemical treatment. A recent report by the Public Policy Institute of California (PPIC) quantified the problem, finding in a survey of wastewater agencies, that one-fifth of respondents indicated increased corrosion of collection systems due to declining influent quality. The PPIC's report released in April, Managing Wastewater in a Changing Climate, said the wastewater treatment sector"is at a turning point," with drought posing the biggest challenge. The report suggested action is needed to improve coordination between water suppliers and wastewater agencies to ensure that water conservation efforts in the urban sector can be accounted for as part of the short- and long-term planning on the treatment side. "Wastewater managers would benefit from knowing which demand management strategies are deployed, when and where the strategies are being implemented, and how much indoor 11 water savings are expected over time,' according to the report. It noted that the California Department of Water Resources and the State Water Resources Control Board could help facilitate better exchange of information and provide guidance for integrating water supply and wastewater planning. "Indoor water savings are good,but the flip side is, as you get lower [use] ... at what point are you causing more harm than the benefit you are getting from saving those drops of water?" —Adam Link, director of operations with the California Association of Sanitation Agencies Link agreed that as wastewater agencies plan for future treatment capacity and the projected demand for recycled water, they should be included in discussions about further reductions in water use — and how reduced flows affect the planning and sizing of recycled water projects. The state has set a goal of developing at least 2.5 million acre-feet a year of recycled water by 2030. Rob Thompson, assistant general manager of the Orange County Sanitation District, said his agency has planned for changing flow patterns based on factors such as economic activity and the amount of rain received. "When people talk about low flow, it's really one of a plethora of items which are really about resilience," he said. "We are consistently planning ... with our operations, maintenance and engineering to deal with those changes." �mms" w This schematic from Sacramento Regional County Sanitation District is an example of how wastewater systems work. (Image:Sacramento Regional County Sanitation District) The district receives about 185 million gallons of sewage each day from more than 2 million people in north central Orange County (185 million gallons would fill a football field 515 feet 12 deep). One hundred million gallons of that treated wastewater is put back to work to irrigate parks, schools and golf courses and help combat seawater intrusion. The district's collection system and manholes have been protected from corrosion since the 1960s and for the last decade, chemical treatment has been used to block formation of odorous and corrosion-causing compounds, said Thompson, noting that the district has been granted patents for its processes. Re-evaluating Water Conservation Strategies The 2012-2016 drought was the driest in recorded state history. The extent of the impacts from reduced sewage flows — corrosion, odor problems as sewage pools in neighborhood pipes and increased salinity—surprised some people. The episode highlights what's needed in the future. "We know the next drought is coming. This is our reality to manage and adapt to," said Jelena Hartman, senior scientist with the State Water Board, at PPIC's April panel presentation on the report. "California policy on long-term water use efficiency should prioritize outdoor water use restrictions, which will have a lower impact on interconnected water systems, to achieve statewide demand management goals." — 2017California Urban Water Agencies white paper,Adapting to Change: Utility ustems and Declining Flows Because many rivers rely on treated wastewater for water quality and flow, reductions in discharges can add to the environmental impacts on rivers when drought strikes, Hartman said. Less water flowing to rivers —whether from treatment plants, street runoff or stormwater flows — affects overall environmental quality. "It's not just water recycling," she said. "We are talking about low-impact development, capturing storm flows and reducing urban runoff." Meanwhile, the drive to ratchet down water use in California begs the question of whether conservation efforts could eventually shift because of the impacts to the wastewater sector. A 2018 law sets indoor consumption goals at 55 gallons per person per day, with the figure dropping to 52.5 gallons in 2025 and 50 gallons in 2030. It's up to water agencies to work with users to meet the goals. 13 Ina 2017 white paper, Adapting to Change: Utility Systems and Declining Flows, California Urban Water Agencies (CUWA) noted that while saving water indoors is an important element of water management programs, more must be done to manage all future water demands. CUWA is an association of 11 major California urban water agencies. "California policy on long-term water use efficiency should prioritize outdoor water use restrictions, which will have a lower impact on interconnected water systems, to achieve statewide demand management goals," the white paper said. Outdoor water use varies greatly in the state, accounting for as little as 25 percent of a household's use in coastal areas and as much as 80 percent in the hotter inland regions. reated wastewater flows into the Los Angeles River.These types of wastewater discharges are important sources of water to help maintain river vitality.(Image:Southern California Coastal Water Research Project) On the environmental side, work is underway to quantify the impact of reduced discharges to surface waters. In Los Angeles, a coalition of state and local agencies are collaborating with the Southern California Coastal Water Research Project on a two-year study launched last fall to determine what happens when treated wastewater effluent and runoff usually sent to the Los Angeles River is diverted for recycling. Researchers are looking at how vulnerable species and habitats along a 45-mile stretch of the lower reach of the river respond to flow reductions with an eye toward developing recommended flow targets by season and section of the river. What's Next When drought returns to California and people do their part to conserve water, use levels will again drop, perhaps even to record-low levels. Wastewater treatment agencies will again be 14 faced with even less flows. Thompson, with the Orange County Sanitation District, said agencies should use their regular retrofit and upgrade schedule to measure their resilience. a Part of a wastewater treatment plant in Contra Costa County. (Image: File) "You don't design for one little problem," he said. "You look at the overall condition of your treatment plant and look at opportunities to replace outdated infrastructure with more focused infrastructure that meets the new needs you are facing:' The state, PPIC said, should help the wastewater sector and direct its funding assistance toward regional approaches to planning and research. "The state also has a responsibility to evaluate its own policies for areas of conflict between water use efficiency, recycled water production and environmental flows," the report said. "The state needs to be clear about the inevitable tradeoffs associated with these goals and help set priorities:" There also needs to be better delineation between what's happening with the long-term trend of reduced indoor water use and the impact drought has on that use. "That is one of the unanswered questions," Link said. "Is there going to be a bounce back [in water use after a drought] or is there where we are and what we have to plan for?" 15 Voice of OC June 13, 2019 VOICEofOC McCormick: Special Districts Stress Focused Services, Prudent Planning 4 By NEIL MCCORMICK June 15, 2019 Special districts often don't receive as much attention as other types of government. Unfortunately, when they do, it is sometimes inaccurate or even misleading. In fact, some news reports have published without even contacting us to ask questions. The truth is that we welcome the opportunity to share facts about how special districts operate and manage their fiscal health as they provide essential local services and infrastructure to millions of Californians. 16 In Orange County, special districts provide utilities to some of the area's best planned communities. They provide sanitation and water services throughout the region, park and recreation services, mosquito and vector control, and even maintain cemeteries. The award-winning Placentia Library District exists because voters created this special district that has become a community treasure. Recently, a few critics have opined that special districts save unnecessarily large amounts of reserves, citing a seriously flawed Little Hoover Commission report from nearly 20 years ago. It's unusual to hear people complain that government is being too prudent and not spending enough money, but there's always room for improvement. Fortunately, the more recent Commission study of 2017 drew more balanced conclusions and used more relevant, accurate information and methodology. It stated that special districts are the "workhorses" of public service delivery, but that they could do a better job of telling their story. We agree. Yet still, those who hope to find fault will find it. One recent Orange County media report on special districts prominently cited a quote from Howard Jarvis Taxpayers Association President Jon Coupal, who said that it was his opinion that "government entities" were "hoarding" money. The problem is that Coupal's predictable stance was in reference to government generally, not just special districts as portrayed by the article. In his full testimony, Coupal went on to stress that he does not see special districts as inherently "good or bad." The same article that misinterpreted Coupal's quote, sought to demonstrate the alleged "hoarding" of money by adding up the total assets and savings of every special district,joint powers authority, and even some corporations and calling it all special district reserves. This was also problematic, considering the largest entity they included was not a special district. It was the Inland Empire Health Plan, which is a not-for-profit Medi-Cal and Medicare health plan with nearly $2 billion in assets. 17 The article also failed to recognize the difference between investments in infrastructure and cash on hand—big difference. When analyzing local governance, it's important to gather the right data. It's also necessary to correctly interpret the data. Asking the local agencies themselves is a good start to an accurate assessment. For example, most special districts provide services using highly specialized infrastructure that make it difficult to compare their financial needs with general purpose governments, such as cities and counties. While general purpose governments typically spend a large portion of their general fund on personnel and day-to-day programs, most special districts are different. For instance, a small water district may employ relatively few people but must budget for developing and maintaining a complex and highly-engineered delivery system and facilities. Planning and saving for the eventual replacement of that infrastructure is responsible management. But again, we do agree with critics on that one key point: special districts can do more to tell their story. Because special district services aren't typically controversial, like most of the issues dominating today's media, they get less coverage. Very few struggling newspapers are going to send a reporter to cover dry, technical meetings, despite our pleas that they do so and our efforts to offer interesting public happenings. But lack of controversy does not mean special district services are insignificant. That is why the California Special Districts Association and our members work so hard to get media coverage of our issues and we are grateful for the few opportunities we get to speak out, such as the Voice of OC has provided us. Special districts focus on providing a single, specialized service or small suite of services as requested and approved by the voters. They are formed to meet a local 18 need with local control. And, they are able to be efficient and effective because they are experts specializing in local service. Virtually all special districts want their communities to better understand their services and issues, and we will continue to shout out their stories at every opportunity. Interested readers can learn more about special districts at Districts Make The Difference. Now through September 30, high school and college students may visit this site to compete for a scholarship by submitting a short video about special districts serving their community. Neil McCormick is the chief executive officer of the California Special Districts Association which promotes good governance and improved local services through professional development, advocacy, and other services for all types of independent special districts. Opinions expressed in editorials belong to the authors and not Voice of OC. Voice of OC is interested in hearing different perspectives and voices. Ifyou want to weigh in on this issue or others please contact Voice of OC Involvement Editor Theresa Sears at TSears@voiceofoc.org 19 Social Media Posts June 2019 Facebook Posts for May/June Pape 9umma Last 26 days a Export Data 4 Results Mona Wy 28.2019-Jan 24,ID19 Note:Does not Include todays data Insights adway is reported in Me Pacfic time Zone.Ads acsvM is mported in Me Organic Pale Mae zone or year ad account. llcpons on Pape 4 Page Views 4 Pape Previews t May28June24 May28 June24 May28 Jupe24 4 413 29 Total Actions on Page A 100%, Total Page Views v 8% Page Prei w49% Page Likes Post Reach Recommendations May 28-June 24 May28-June24 7 2,132 Page Likes 65% People Reached 36% We Kaye Insufi¢iedt data to snow tot Me selected time cenad. Post Engagements videos 2 Pape Followers May28-Ju1e24 May28-June 24 May28-June24 815 27 8 Post Engagement 54%, 3-Second Made Maws•93% Page Fallowded vanes 20 All Posts Published Reath:Organic l Paid w ■ Post Clicks ■ Reactions,Comments Published Post Type Targeting Reach Engagement 06212019 ,.,4Happy first day of Summer!How are to N 130 1 i 2:po PN is'9i� you enjoying this beautiful day?9 3 06212019 CA Water News Today recently 389 35 a o0 nm published an article calleii 31 D62o2019 z, Construction Alert for State College — 5 1 5:00 Pill and Wagner Ave.in the City of r 162 2 D6202019 Have any plans this weekend? r 159 4 1 n:sa An•. t Looking for something fun to do? 4 j D61192019 Today,OCSD had the opportunity to 1123 191 — 8 1 125c PM meet with Rep.Linda Sanchez to 7 1 06/192019 We know that water is an invaluable 11 ■ ow AM at resource and that each one of us r 22 ■ DGMIJ2019 Happy Fathers Day to all the dads 1 1200 Pre out there.Hope you have a 239 17 06/142019 Our last Open House was in 2016. r N 453 87 1c oo All Check out all the fun stun we had for 23 ■ O6M32019 i! Thank you City of Anaheim- 19 ■ zu Pre Municipal Government for inviting us � N 184 5 1 06/112019 It's#TipTuesday time so how about 1 N 608 70 11 AM you visit www ocs t com0obs and 22 ■ 06/082019 Happy Wad Ocean's My"OE D 74 e uu AM does their pad every day to help N 741 78 — D61072019 Happy#NatlonalDonulDrayl Irs a 16 ■ e.Arn bummer that our tulle.;can't eat r N 331 16 ■ ON052019 Thereisa chance that our external — 1 I 3.16 PM wall OCSD.com may experience N 147 2 1 OFV052019 OCSD's Legislative 8 Public Agaim r N 158 5 1 e 21 Am Committee meeting is next Monday. 5 1 O&042019 Who cut the cheese4 Nat USI We 18 ■ e:oa AM snub our air each and every day to t N 464 21 ■ 21 06/032019 This Wednesday.our Operations Ip N 177 — 4 P m"I Committee Meeting will be taking 3 I 05/312019 The 12th Annual OC Water Summd r N 186 8 1 1020 niu is underway!Water U niter the 7 05292019 Today is National Learn About 4 �05 am Composting Day!We all want to do '§ N 224 11 1 O51292019 A big shout out and thank you to 9 1 1231 PN Rep. Hardy Rouda tar taking time tp N 243 14 ' 05292019 Construction Aled in City of 1 N 469 17 530AM Anaheim-Municipal Government- 6 22 Twitter Posts for June 28 hay wmmery mry m.re.err .n iraso om. 174292% 12AK4ei 257 t-, j 44778s 1,566i1 Jun MlBpx arvs sorer Top Tyrtet—oia xs ennaniw Top media oat your Tatum;In front of Mr,cut the cheese?Not U5l We scrvb our DO51D's Legislative s Public Affairs .peepd air each and Peery day W ensure you tort (dydmsmhe meeting is next Monday,June 10 R-..,and mMeM Wm uo You, smell our stink at12 p.in at Plant No.I In Founds Valley nxnm Twiner m a—wwe Take a look at the topics being discussed. Warms earn morel Than come take a Court man comManelshowDocurn Hope to see you short qc Natter congOID5J2reWl ocsd.comrres,derts.urs NNaclerutChaasaDay 13 10.1K Inc twitter com'3TP50JV I,H WHOCUTTHE 217 2 AP •i O a n f� Vea1VBWattlIIW Mawr pradear, i uN1�TNrleNeie VewYimtlrDAb TOp PdltyWer 1drpWA wzaa I.vga ■ Kryaur @a>rm:aewm 23 early Me•n aeyz TOP Well wmea x M.Frgea.nm TUP mention e,ma 59 ag,gem.mi Men your mom ends out you Been Clty.f Lalt.Forest 27 31.9K fil.,e down the lot. #G.T ,Fo.e-Icn .,, . FR.WIp..I.Tfr.plp..zwlp.eCl.eplp.. Tum.out•nuanaele•wines sent nu.nable 269 19� pic b+ntlercomttaO5D65kMk at all'SWlpeamo,fel".@IRWDnew. @OCS..,e twneec.MOCSewerLSU W_. • 2 NewrwM Top media 71AAW eameo 1 ads mrorsslom Everyone's out there looking for the iron .' .x_ mmne wfien its been at OOSD all along. uiewrw.a 4 vlew.0 TweetutirM 1L3oTiMome0f11heReatmmm, pictwitler wm'aVO%yLRTF Top Follower au...ee m n sx i le oiu ACWA n ACWA •- rAn11m9ner r..—, nawn1capnM.oearsoleer...cepenue6 wew Txeaamnb ri-gunreet nart, Mrott MO memcers ae respmsltlefirabA W%W me water eelrrerm In eaemlo. Vlewn¢da uraw ramp.mmwam 24 \f\1\IIFf ❑5 �, kl����� �SUMM�_ y = � Instagram Posts for June jr icm � - _� . f= EAT OONYTS i' y �. WNO CYT TXE �- _ �r Public Affairs Update _r- Presented by Rebecca Long ®11\�.1■C !` Senior Public Maim ialist July 8c2019 E M ^ 4� 0000phlft •1awM Ate = What We Did Tours F11 tours / 189 guests _f 3 speaking engagements 1 outreach events _ Social Media © II r] Set Twitter: 17 tweets Participated in: 13k impressions sst^Anniversary Coordination Facebook: Director Doug Chaffee Tour 20 posts Cal state Fullerton speaking 2.1k reach Engagement Anaheim OC Green Expo on June Instagram: An^^ 12 posts Anaheim District Meeting 4.2k impressions 2 1 What We Are Doing �Y L ■ Upcoming Activities ■ City65thArniversary Open Nause City of Huntington Beach Southeast Area Council ■ Meeting • Society of Plumbing Engineers ■ Tour • P2 Neighborhood Newsletter Sent Out to Residents fuly I7 1 9 a.m.-10 a.m 3 OCSD Receives Certificate of Achievement for Excellence in Financial Reporting The Orange County Sanitation District was awarded the Certificate of /V Achievement by the Government Finance Officers Association for our comprehensive annual financial report.This Certificate is the highest Certificate form of recognition in the area of governmental accounting and Achievement financial reporting. Fiwxial Reporting 4 2 STEERING COMMITTEE Meng Dat0 TOBE. Dir. 07/lti24/19 07/24/1Of9 AGENDA REPORT Item Item Number 2 14 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: RIGHT OF ENTRY AGREEMENT GENERAL MANAGER'S RECOMMENDATION A. Approve a Right of Entry Agreement for Orange County Transportation Authority, and its authorized agents, to enter upon Orange County Sanitation District's property located on the north side of Westminster Boulevard, East of Springdale Street, in Westminster, CA adjacent to the Interstate 405 Freeway for temporary use in connection with its project to widen the Interstate 405 Freeway for a term of four (4) years from the 30-day notice prior to the beginning of construction, in a form approved by Special Counsel; and B. Direct the Clerk of the Board to record the Agreement with the Orange County Clerk-Recorder. BACKGROUND Orange County Transportation Authority (OCTA) is widening the Interstate 405 Freeway between SR-73 and 1-605. The Orange County Sanitation District (Sanitation District) was notified by OCTA of its plans to acquire, through eminent domain, the Sanitation District's parcel in Westminster for a period of 5-years. Staff responded to the notification informing OCTA of the Sanitation District's sewer facilities and a manhole within that parcel. The sewer facilities must be maintained in the interest of public health. Through collaboration, it was proposed that both agencies could use this site concurrently through a Right of Entry agreement. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities PROBLEM The Sanitation District needs access to its facilities within its parcel in the city of Westminster 24 hours per day, 7 days per week and OCTA needs to access the same parcel while widening the Interstate 405 Freeway. Page 1 of 2 PROPOSED SOLUTION Both agencies will access this parcel. OCTA will leave a clear driveway from Westminster Boulevard to the manhole and keep a clearing of a 10-foot radius around the manhole so Sanitation District staff can perform inspections, scheduled maintenance, emergency repairs, and chemical dosing. OCTA will use the rest of the parcel to safely access the Interstate 405 work area. TIMING CONCERNS OCTA expects to start using this area within the year. RAMIFICATIONS OF NOT TAKING ACTION Without the Right of Entry Agreement, the Sanitation District would have no access to its facilities within this parcel. PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.coml with the complete agenda package: Right of Entry Agreement Page 2 d 2 RIGHT OF ENTRY Page 1 of North side of Westminster Boulevard, East of Springdale Street,Westminster, CA 92683 103212-1 203-314-03 Property Address Parcel No. APN. STPLN-6212 (018) 08023298-920-CMM Federal Project No. Title Order No. RIGHT OF ENTRY AGREEMENT (this"Agreement") Permission is hereby granted to the Orange County Transportation Authority, a public entity ("OCTA') or its authorized agents, to enter upon certain real property owned by the Orange County Sanitation District (formerly known as County Sanitation District No. 3 of Orange County) ("Owner") located on the north side of Westminster Boulevard, East of Springdale Street,Westminster, CA 92683(the Trope ")for temporary use in connection with the project to widen the Interstate 405 Freeway (1-405) and accomplishing all necessary incidents thereto. The Property is legally described and depicted in the attached Exhibit "All" and Exhibit "AT', respectively, and identified on the Right of Way map in the attached Exhibit"B". OCTA shall have no obligation to pay any compensation to Owner of the Property for permission to enter the subject Property and to construct the project. Owner hereby fully and forever waives and relinquishes any and all right and entitlement that Owner has or may have to receive compensation for such permission to access and use the Property on the terms set forth in this Agreement as well as any and all rights Owner has or may have to exercise any remedy authorized by law to secure payment or other compensation of any kind therefor. This permission is granted by Owner freely and voluntarily in consideration of the location, improvement, and construction of the above-described freeway improvements and incidents thereto, which Owner understands are required by OCTA. OCTA understands that there is a manhole cover on the surface of the Property(the"Manhole')that is Owners only means of access to an actively-used 60-inch sewer pipe (the "Sewer Pipe"), and that notwithstanding the permission granted to OCTA in this Agreement, Owner must at all times continue to have the ability to access said Manhole and Sewer Pipe in order to perform scheduled, unscheduled, and emergency repairs, chemical dosing, inspections, and maintenance work. As such, Owner grants the foregoing permission to OCTA subject to the following restrictions on use of the Property by OCTA and its authorized agents: A. Neither OCTA nor any authorized agents of OCTA shall place, store, or leave construction materials, equipment,vehicles,or other items on the Property in a manner or location,or at a time,that prevents,limits, or interferes with Owner's immediate access to the Manhole and the Sewer Pipe, it being understood by OCTA that in the event of any damage to, or rupture or breakage of, the Sewer Pipe, Owner will need the immediate and unobstructed ability to enter, access, and exit the Property with multiple large vehicles and equipment to repair the Sewer Pipe and to take the necessary actions to mitigate the public health concerns associated with such damage to, rupture, or breakage of the Sewer Pipe. B. At any time that OCTA and its authorized agents have any construction materials, equipment, vehicles, or other items located on the Property that prevent, limit, or interfere with Owners immediate access to the Manhole and the Sewer Pipe with multiple large vehicles and equipment, OCTA and its authorized agents: (i) must have a written, Owner-approved emergency plan in place for removal from the Property and relocation of such construction materials, equipment, vehicles, and other items; (it)there must be at least one person on site at the Property with the knowledge and authority to commence and ensure completion of OCTA's performance of such emergency plan; and (iii) OCTA and/or its authorized agents must have sufficient personnel available at or near the Property to fully accomplish such emergency plan within one(1) hour from when Owner gives the first notice to OCTA of its need to access the Manhole and Sewer Pipe. C. Prior to the first entry onto the Property by OCTA or its authorized agents, OCTA shall deliver to Owner a copy of the written emergency plan referenced in Paragraph B above,which written emergency plan shall include,among other things,the contact information and protocal for Owner to ratify OCTA of Owners need to enter the Property to perform repairs, chemical dosing, inspections, or maintenance work and, if applicable, to notify OCTA that the written emergency plan must be put into effect. OCTA must have the ability to contact OCTA or its designated representative for such purposes 24 hours per day, seven days per week while this Agreement is in effect. D. OCTA shall give immediate notice to Owner if OCTA or any of its authorized agents causes,contributes to, or becomes aware of any actual,threatened,or suspected damage to or rupture or breakage of the Sewer Pipe or the Manhole. Such notice shall be given to Owner by telephone at Owner's Control Center,which is staffed 24 hours per day,seven days per week. The Control Center telephone number is(714)593-7025. OCTA shall indemnify and hold harmless Owner,from any loss,liability,or expense which Owner may sustain arising out of the use of the Property by OCTA and its authorized agents,except to the extent such loss a damage is caused by the negligence or willful misconduct of Owner,or its employees,officers,agents,or pennittees. It is understood that when OCTA:s need for use of the Property ceases, OCTA shall discontinue all use of the Property by OCTA and its authorized agents and return the Property to Owner free of debris and in a graded, compacted, and drivable condition, with the surface re-paved using an American Association of State Highway Transportation Officials(AASHTO)H-20 load-weighted asphalt. This Agreement and the permission granted herein shall expire four(4)years from the date on which Owner receives from OCTA, or its authorized agents,a 30day notice prior to the beginning of construction. ORANGE COUNTY SANITATION ACCEPTED: ORANGE COUNTY DISTRICT(formerly County Sanitation TRANSPORTATION AUTHORITY District No.3 OF Orange County P.O.Box 8127 Fountain Valley,CA 92728 Telephone: 714-962-2411 By: By; David Shawver Date James G.Bell Date Board Chairman Executive Director,Capital Programs ATTEST: ORANGE COUNTY SANITATION DISTRICT By:Kelly A.Lore,MMC Its:Clerk of the Board ACCEPTED AND APPROVED TO FORM: APPROVED.�I1S TO FORM ,cAIL-5,6 't lLLrd, LLY By:Panne a J. By: Title:Special Counsel James Donich Date General Counsel Orange County Transportation Authority PSOMAS 1 EXHIBIT `Al' 2 LEGAL DESCRIPTION 3 4 Caltrans Parcel No. 103212-1 5 Temporary Construction Easement 6 APN 203-314-03 7 8 j In the City of Westminster, County of Orange, State of California, being that portion of 9 the lands described in the Deed recorded April 10, 1975 in Book 11375, Page 1310 of 10 Official Records of said County, described as follows: 11 12 Beginning at the centerline intersection of Springdale Street and Westminster Boulevard 13 as shown on Record of Survey filed in Book 117, Pages 27 through 34, of Record of 14 Surveys of said County;thence along the centerline of said Westminster Boulevard South 15 89032'24" East 466.69 feet to the southerly prolongation of the westerly line of said 16 lands; thence along said prolongation North 00001'49" East 92.16 feet to the 17 southwesterly corner of the said lands;thence along said westerly line North 00001'49" 18 East 36.70 feet to the True Point of Beginning;thence continuing along last said line 19 North 00101'49" East 8.09 feet to the most northerly comer of said lands;thence along 20 the northeasterly line of said lands South 44003'23" East 58.63 feet to the most easterly 21 comer of said lands; thence along the southerly line of said lands South 86016'18" West 22 6.81 feet to a point thereon;thence North 44034'22" West 48.41 feet to the True Point of 23 Beginning. 24 25 Containing 290 square feet. 26 ' 27 See Exhibit`AT attached hereto and made a part hereof. 28 29 The distances shown herein are grid distances. Ground distances may be obtained by 30 dividing grid distances by the combination factor of 0.99997837. 31 M:=G010900690RVEVILEGALVl o,nent 5139K I egaI003212-1-TCE_doe Page 1 of 2 9/142015 PSOMAS 1 See Exhibit `AT attached hereto and made apart hereof. 2 3 4 �S�p LAND SUP` 5 Prepared under the direction of Og 6 8 Brian E. Bullock, PLS 5260 Date qrF of Cpl1F��� 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 M:\2PTG010900\SIIRVEY\i.EGA S\Seg,eevt 5\398Tegale\1 0 3 212-1-TC doe P,g 2of2 9/142015 TEMPORARY CONSTRUCTION EASEMENT ATTACHMENT TO LEGAL DESCRIPTION Assessor Parcel No: 203-314-03 Caltrans Parcel No: 103212-1 This temporary construction easement shall be in, on, over, under, and across that certain real property described in Exhibit "Al" and depicted in Exhibit "AT' attached hereto, subject to the rights and limitations set forth herein ("TCE"). The TCE shall be used by the Orange County Transportation Authority and its employees, agents, representatives, contractors, successors and assigns (collectively, "OCTA") in connection with the construction of the I-405 Improvement Project. The TCE shall be for a period of forty eight (48) months, a portion of which shall be exclusive (subject to the rights and limitations set forth below) and a portion of which shall be non-exclusive. Specifically, the actual physical construction activities within the TCE area shall be limited to a period of twenty-four (24) consecutive months within the forty eight (48) month TCE period (the "Construction Period"). During the Construction Period, OCTA's use and occupancy of the TCE will be exclusive, subject to the rights and limitations set forth below. OCTA's use and occupancy of the TCE during the remaining twenty four (24) months of the TCE period will be non-exclusive. Rights and Limitations of Use and Occupancy of TCE: • OCTA shall provide the owner(s) and occupant(s) of the property subject to this TCE a mimmum of thirty (30)-days written notice as to when the Construction Period will commence. • During the Construction Period, OCTA may place a temporary fence around the TCE area,provided however, no fence will be placed around or across any driveway within the TCE area. • Reasonable pedestrian and vehicular access to the property shall be maintained at all times. • Access to the TCE area shall be from the public right of way. • Except as to those improvements identified below as being protected in place, improvements within the TCE area will be removed as needed by OCTA to allow for construction activities. All improvements so removed shall be included in the compensation paid by OCTA for this TCE. • The following improvements within the TCE area will be protected in place: o Manhole • The following improvements adjacent to the TCE area will be protected in place: o Bike Rack o Light Pole • Prior to the termination of the Construction Period, OCTA will remove from the TCE area all construction equipment and materials including, without limitation, any temporary fence, any temporary improvements, and all construction-related debris. The TCE area will be graded and compacted to restore it to a condition that is as functionally equivalent as is practicable to its condition prior to commencement of the construction activities. OCTA expressly reserves the right to convey, transfer, or assign the TCE subject to the same rights and limitations described herein. EXHIBIT A2 PARCEL# TITLE AREA APN 103212-1 TCE 290 SF 203-314-03 APN C,R, 8135/305 203-313-04 REC 02-27- 1957 APN C..R, 31}14/99 203-313-02 REC 02-28- 1956 o .7(bxOO /39� l ti �r 3 F00Yo as m v je �x�o �9F i us � FH W �f- Lu ro— 20110003374 2u^6- Or c' ' RED 06-22-2D11 00d to re'— Su (o vT qti AN O T J —TO203 314-02 9/ xQp 9FF ❑ /y � � s ? APN S' 103212-1 a20331 4-01 TPOB axe V) N00001 '49"E o 44.79' L1 S44003'23"E 0 58.63' O� �z \ i/ APN 203-314-03 `L P N00001 '49"ECL I O,R, 487b/30H 92.16' S86016'18"W REC 09- 11 - 1959 40.88' 589032'24"E 466.69' POB -- WESTMINSTER BL VD.� SEE SHEET 2 FOR DETAIL "A" LEGEND LINE DATA BEARING DISTANCE TPOB True Point of Beginning L1 N00001 '49"E 36.70' POD Point of Beginning Caltrons Parcel Number Access Prohibited NOTES The distances shown herein are grid distances. Ground distances TEMPORARY CONSTRUCTION EASEMENT may be obtained by dividing grid distances by the combination factor of 0.99997837. FEET 0 50 100 200 300 PREPARED BY: DATE: 08-13-15 REV.: 09-14-15 EA: OF FAR: PSOMAS DISTRICT I COUNTY1 ROUTE I SHEET PM SHEET N0. TOTAL SHEETS e"o-e once, Me xoo 711)75°i"-i3i3:i714)545°aaa3 (FIX) 1 2 ORANGE 405 1 2 EXHIBIT A2 PARCEL# TITLE AREA APN 103212-1 TCE 290 SF 203-314-03 POL 2 C,R. 4276/303 REC 09- 11 - 1959 lS 1 0321 2-1 co90S T� TPOB FF �q L� S APN 990 203-314-02 Q F P INST. No . w 990 SB 2011000313674 0 39 6a, REO 06-28-201I an an 0 22 o APN 98 203-314-03 O.R. 11375/1310 REC 04-10-1975 6.81 S86016,18"W 40.88, PCL I O.R. 4876/300 REC 09- 11 - 1959 WESTMINSTER BLVD. LEGEND TPOB True Point of Beginning POB Point of Beginning DETAIL "A'' Caitrons Parcel Number SCALE 1" =10' a Access Prohibited NOTES The distances shown herein are grid distances. Ground distances may be obtained by dividing grid TEMPORARY CONSTRUCTION EASEMENT distances by the combination factor of 0.99997837. FEET 0 5 10 20 30 PREPARED BY: DATE: 08-13-15 REV.: 09-14-15 EA: OF PAu: P S O M A S DISTRICTI COUNTY1 ROUTEI SHEET PM SHEET NO. TOTAL SHEETS r � (111)1si-isniiilai545-O 3 iro.i 1 12 JORANGEJ 405 1 2 1 2 ASSESSOR PARCEL NUMBER : 203- 314 - 03 CALTRANS PARCEL NUMBER : 103212 • t-r• • • • RADIUS AROUND Var TEM• • - SEWER MH 48" RCP SEWER ARY EN IF . y EXISTING EASEMENT For illustrative purposes ONLY. �"' TEMPORARY GATE Not to sagie. Not for —X X— TEMPORARY FENCE 4onstrucr,on. Proposes improvements, sonedwe, sroging TEMPORARY CONSTRUCTION }odCwo^kro oe performed suoject ® EASEMENT STEERING COMMITTEE Meng Date TOBE. Dir. 07/eti24/19 07/24/1Or9 AGENDA REPORT Item Item Number 3 IS Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Assistant General Manager SUBJECT: FIRST AMENDMENT TO 800 MHZ LEASE GENERAL MANAGER'S RECOMMENDATION Approve the First Amendment to the 800 MHz Lease Agreement with the County of Orange with the following modifications, in a form approved by Special Counsel: • Term of Lease shall expire May 4, 2023; with an optional one (1) additional five-year period • Increase the annual lease rate from $0.42 per square foot to $0.52 per square foot • Decrease the site footprint from 10,000 square feet to 4,784 square feet before December 31, 2019 BACKGROUND In 1998, Orange County Sanitation District(Sanitation District) entered into an agreement with the County of Orange (County)to lease space at Treatment Plant No. 2 allowing the Orange County Sheriffs Department to construct, operate, and maintain a radio mobile/wireless communication system and appurtenant structures including an antenna tower. The term of the lease was for 20 years. The Sanitation District provided the required advanced notice to the County of its intent to not renew the lease upon expiration of the original term, due to the Sanitation District's need for additional space to construct infrastructure to support its operations. Subsequently,the County provided the Sanitation District with notice of its intent to exercise its first of two options to extend the term of the Lease for an additional five (5) years. Working collaboratively, it was determined that the County would reduce its footprint allowing space for the Sanitation District's construction and expansion projects and the associated staging, laydown, and traffic flows. RELEVANT STANDARDS • Protect Orange County Sanitation District assets • Maintain collaborative and cooperative relationships with regulators, stakeholders, and neighboring communities • Commitment to safety& reducing risk in all operations Page 1 d 2 PROBLEM In 1998, when this lease was established, the Sanitation District had adequate space for the County's project. However, the Sanitation District has expanded its operations, committed to full secondary treatment, is working on the final expansion of the Ground Water Replenishment System, and has continued to construct infrastructure to support its operations. Space is now limited, and the Communication Tower is at the center of several key Sanitation District projects. PROPOSED SOLUTION Reduce the footprint of the Communication Tower's appurtenances reserving room for both the County's infrastructure and Sanitation District construction projects. TIMING CONCERNS Due to upcoming construction projects in the area, it is necessary for the Orange County Sheriffs Communication Tower site to be fully downsized by December 31, 2019. RAMIFICATIONS OF NOT TAKING ACTION If the Orange County Sheriff's footprint is not reduced, there will be impacts to the Sanitation District construction projects due to the lack of staging areas, laydown areas, and traffic paths around the Communication Tower vicinity at Treatment Plant No. 2. PRIOR COMMITTEE/BOARD ACTIONS March 1998 - Authorized staff to enter into a Lease Agreement with the County for installation of an 800MHz system at Plant No. 2 for a period of twenty (20) years. ADDITIONAL INFORMATION The First Amendment to the Lease Agreement is dated to coincide with the expiration of the Original Lease Agreement, which is dated May 5, 1998. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • First Amendment to Lease Agreement • Original Lease Agreement Page 2 of 2 Project No.GA 1239-57-2 Project Name:800 MHz Project Location:O.C.Sanitation District Treatment Plant rig FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT (hereinafter referred to as "First Amendment") is entered into as of the 5a' day of May, 2018 ("Effective Date"), by and between the Orange County Sanitation District, as successor-in-interest to County Sanitation District No. 1 of Orange County, California for itself and as agent for County Sanitation Districts Nos. 2, 3, 5, 6, 7, 11, 13, and 14 of Orange County, California (hereinafter referred to as"DISTRICT"and"LESSOR"), and the County of Orange, a political subdivision of the State of Califomia (hereinafter referred to as "COUNTY" and "LESSEE"). DISTRICT and COUNTY may be referred to individually herein as a"Party"or collectively as the"Parties". RECITALS A. WHEREAS, DISTRICT and COUNTY entered into that certain 800 MHz Lease Agreement("Lease"), for a twenty(20) year teml commencing May 5, 1998, allowing the COUNTY to occupy a portion of property located within the DISTRICT's Treatment Plant#2 in the City of Huntington Beach, County of Orange, State of Califomia (the "Premises") in order for COUNTY to construct, maintain and operate a radio mobile/wireless communications system and appurtenant structures including an antenna tower thereon; and B. WHEREAS, in accordance with Section 7 of the Lease, on August 20, 2016, DISTRICT exercised its right to terminate the Lease by giving written notice to COUNTY of DISTRICT'S election to terminate the Lease upon the expiration of its original term on May 5, 2018 due to the DISTRICT's need for additional space to continue to construct infrastructure to support its operations. Notwithstanding COUNTYs receipt of such termination notice from DISTRICT, on February 16, 2018, COUNTY sent a notice to DISTRICT of its intent to exercise its first of two options to extend the term of the Lease for an additional five(5)years; and C. WHEREAS, following COUNTY'S delivery of its notice of exercise of its extension option, the Parties reached an agreement in principal that DISTRICT would allow COUNTY to continue to occupy and lease a portion(but not all) of the Premises originally leased to COUNTY for an additional five-year term subject to an increase to the rent owed by COUNTY. The decreased footprint for the Premises is described in"Revised Exhibit AV and shown on`Revised Exhibit BV attached hereto. D. WHEREAS,the Parties now desire to amend the Lease to provide the terms and conditions on which DISTRICT agrees to COUNTY'S extension of the Lease term. NOW THEREFORE, in consideration of the Recitals above, which are incorporated herein by this reference, the Parties do hereby agree to amend the Lease as of the Effective Date first written above as follows: A. Clause 1 (PREMISES) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: First Amendment to Lease Page 1of 22 O.C.Sanitation District LEGAL02/3875675M 111. PREMISES (1.2 S) DISTRICT leases to COUNTY that certain real property hereinafter referred to as the "Premises" described in "Revised Exhibit At" and shown on"Revised Exhibit BL" which exhibits are attached hereto and by reference made a part hereof." B. Clause 5 (TERM) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: "5. TERM(2.2A S) The term of this Lease commenced on May 5, 1998 and shall expire on May 4, 2023" C. Clause 7 (OPTION TO TERMINATE LEASE) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: "7. OPTION TO TERMINATE LEASE (2.4 S) DISTRICT shall have the option, at its sole discretion, to terminate this Lease at any time upon giving COUNTY written notice at least two (2) years prior to the effective date of termination("District Termination Notice"). COUNTY'S option, under Section 8 of the Lease, to extend the term of the Lease shall immediately and automatically terminate upon COUNTY'S receipt of any such termination notice from DISTRICT. COUNTY shall have the option, at its sole discretion, to terminate the Lease at any time upon giving DISTRICT written notice at least one hundred twenty(120) days prior to the effective date of termination." D. Clause 8 (OPTION TO EXTEND TERM) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: 118. OPTION TO EXTEND TERM(2.3 S) So long as COUNTY has not received a District Termination Notice, COUNTY shall have the option to extend the term of this Lease for one(1)additional five-year period on the same terms and conditions upon written notification to the DISTRICT of the exercise of said option at least sixty(60)days prior to the Lease termination date." E. Subpart (A) of Clause 9 (RENT) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: 119. RENT (3.1 N) As consideration for the lease of the Premises as described herein, COUNTY and DISTRICT agree: A. Prior to the Effective Date of this Amendment, COUNTY has been paying annual rent in the amount of Four Thousand Two Hundred Dollars and Zero Cents($4,200.00)or approximately Forty-Two Cents($.42)per square foot of leased Premises. Commencing on the Effective Date of this Amendment, COUNTY shall pay annually as rent for the Premises Five Thousand Two First Amendment to Lease Page 2 of22 O.C.Sanitation District LEGAL02/38)56)5M Hundred Dollars and Zero Cents ($5,200.00) or approximately Fifty-Two Cents ($.52) per square foot of leased Premises, and COUNTY shall continue to pay annual rent in such amount until COUNTY fully reduces its footprint in accordance with the Premises described in "Revised Exhibit Al"and shown on"Revised Exhibit Bl". COUNTY shall fully and finally complete the reduction of the leased Premises on or before December 31, 2019. Upon COUNTY's timely completion of the downsizing of its Premises, COUNTY shall then pay annual rent in the amount of Two Thousand Four Hundred Eighty Seven Dollars and Sixty-Eight Cents ($2,487.68) or approximately Fifty-Two Cents ($.52) per square foot of leased Premises; provided that, in addition to the annual rent and as additional rent hereunder ("Additional Rent"), COUNTY shall be obligated to pay DISTRICT fifty percent (50%)of any liquidated damages COUNTY receives pursuant to Section 5 of COUNTY's construction contract with Jitney Company,Inc. ("Jitney Contract"), attached hereto as "Exhibit C", which provides that COUNTY will receive six hundred and twenty five dollars ($625) for each calendar day that completion of all the work required under the Jitney Contract is delayed beyond the Contract Time of 90 days from the effective date of the Notice to Proceed. Commencing on the Effective Date of this Amendment, annual rent, including any past due rent, shall be due and payable by COUNTY on or before the sixtieth (60'") day following said Effective Date of this Amendment, and thereafter, annual rent, including any past due rent and any Additional Rent that may have accrued, shall be due on or before every remaining anniversary of the Effective Date of this Amendment throughout the remaining term of this Lease without notice, demand, setoff, or abatement except as and if expressly provided for in this Lease. F. Clause 13(PROPERTY INSURANCE)is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: "13. INSURANCE (5.3 N) Commencing on the Effective Date and continuing thereafter at all times that COUNTY continues to occupy and/or use the Premises or any part thereof, COUNTY shall provide and maintain in full force and effect the following insurance coverages for the Premises. COUNTY shall not perform or cause or allow to be performed in,on,or under the Premises any work until satisfactory evidence of all required insurance is received and approved by DISTRICT. 1. Worker's Compensation Insurance: COUNTY shall maintain such Worker's Compensation Insurance as required by the Labor Code of the State of California,including Employer's Liability Insurance with a minimum limit of $1,000,000.00. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subro Cation in favor of DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless your First Amendment to Lease Page 3 of22 O.C.Sanitation District LEGAL02/3875675M insurance carrier is State of California Insurance Fund (SCIF) and the endorsement numbers 2570 and 2065 are specifically referenced on the certificate of insurance. 2. Commercial General Liability Insurance: COUNTY shall maintain Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: $5.0 million per occurrence with $5.0 million annual aggregate or $3.0 million per occurrence/aggregate solely and separately for this Lease. Said insurance shall include coverage for the following hazards: Premises-Operations,blanket contractual liability(for this Lease), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability,personal and advertising injury,mobile equipment,cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by DISTRICT and applicable to COUNTY'S operations on the Premises,XCU coverage (Explosion, Collapse and Underground) and Riggers Liability coverage must be included in the General Liability policy and such coverage must be reflected on the Certificate of Insurance submitted. 3. Products Liability Insurance: COUNTY shall maintain Product Liability insurance in the minimum amount of not less than $2.0 million per occurrence. This coverage can be provided either as part of or separate from the Commercial General Liability Insurance Policy. 4. Automotive/Vehicle Liability Insurance: COUNTY shall maintain a policy of Automotive Liability insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles with the following minimum limits of liability coverage: combined single limit of$5.0 million or alternatively, $2.0 million per person for bodily injury and $2.0 million per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. In the event COUNTY utilizes one or more contract motor carriers to deliver products or materials to the Premises, COUNTY shall be responsible to require of each such carrier, and to verify that each such carrier,is properly insured in accordance with the requirements set forth above for Comprehensive Liability, Auto Liability, and in compliance with the Motor Carrier Act of 1980. COUNTY shall provide to DISTRICT, prior to deliveries, a copy of the endorsement issued to each such motor carrier under its policies of insurance (MCS-90 Endorsement). 5. Builder's Risk Insurance: First Amendment to Lease Page 4 of22 O.C.Sanitation District LEGAL02/3875675M COUNTY shall maintain a policy of Builder's Risk insurance for all improvements that are unfinished or under construction on the Premises. During the period that any such improvements remain unfinished or under construction,the Builder's Risk coverage shall be in an amount equal to the full replacement value of such improvements once construction and/or installation has been completed. Completion of construction or installation of improvements on the Premises shall be evidenced by the issuance of a Notice of Completion for such improvements. An additional insured endorsement shall be provided to DISTRICT for such Builder's Risk policy. COUNTY shall maintain such Builder's Risk policy in effect until the completed building and all improvements are covered by COUNTY's Property Liability policy. The Builder's Risk Policy shall include all perils within a Builder's Risk policy,including fire,flood,and earthquake. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. 6. Property Liability hisurance: COUNTY shall maintain a policy of Property Liability insurance as to any improvements on the Premises constructed or installed by COUNTY once each such improvement is fully constructed. The Property Liability policy shall be for the full replacement value of the property and shall cover all buildings and improvements by or for COUNTY located on the Premises. DISTRICT shall be provided with an additional insured endorsement to the Property Liability policy. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. 7. Umbrella Excess Liability: The minimum limits of liability insurance required, as set forth above, shall be provided for either a single policy of primary insurance,or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. All Umbrella excess policies shall be Follows Form to the underlying policies,and shall be evidenced on the insurance certificate as such. 8. Additional Insured Endorsements: Each policy of insurance obtained, except Worker's Compensation Coverage and Errors and Omissions Coverage,shall name as additional insureds on said policies DISTRICT,its directors, officers, agents, consultants, and employees for this Lease, and all public agencies from whom permits will be obtained and their directors, officers, agents and employees, as determined by DISTRICT. No exclusionary language or limitations shall be applicable to any additional insured that is not applicable to the named insured. In addition, insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by DISTRICT shall be excess only and not First Amendment to Lease Page 5 of22 O.C.Sanitation District LEGAL02/38)56)5M contributing with insurance provided under said policies. If this coverage is not provided within the coverage form(insurance policy), it shall also be endorsed as primary and non- contributory coverage. 9. Proof Of Coverage: COUNTY shall furnish DISTRICT with original certificates and amendatory endorsements effecting coverage. All insurance policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by DISTRICT before work commences. DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 or other equivalent Certificate of Insurance form. • Additional Insured (ISO Form) CG201011 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by DISTRICT, and DISTRICT may reject alternatives that provide different or less coverage to DISTRICT. • Additional Insured Submit endorsement provided by carrier for DISTRICT (Auto Liability) approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. 10. Period of Coverage: Insurance coverage is required for the duration of the term of this Lease and until COUNTY fully and finally vacates and surrenders the Premises in their entirety pursuant to the requirements of the Lease. 11. Cancellation Notice: Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled, terminated, or reduced except after thirty (30) days' prior written notice to DISTRICT, except in the event of non-payment of the premium, which shall require not First Amendment to Lease Page 6 of 22 O.C.Sanitation District LEGAL02/38)56)5M less than ten(10) days written notice to DISTRICT. Such requirements shall be expressly stated on the applicable ACORD Form. Should there be any changes in coverage or an increase in deductible or SIR amounts, COUNTY and its insurance broker/agent shall send to DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management,Div. 161,and shall be received by DISTRICT not less than thirty(30)days prior to the effective date of the change(s)if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to DISTRICT. 12. Insurance Carrier Rating: The insurers must have an A- (A minus), or better, policyholder's rating, and a financial rating of Class VIII, or better, in accordance with the most current A.M. Best Rating. DISTRICT recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M.Best's rating process. Nevertheless,DISTRICT will accept State Compensation Insurance Fund for the required policy of Worker's Compensation Insurance, subject to DISTRICT's option, at any time during the term of this contract, to require a change in insurer, upon twenty (20) days written notice. DISTRICT will also require COUNTY to substitute any insurer whose rating drops below levels herein specified. Said substitution shall occur within twenty (20) days of written notice to COUNTY by DISTRICT or its agent. 13. Primary Insurance: All liability policies shall contain a Primary and Non-Contributory Clause. Any other insurance maintained by DISTRICT shall be excess and not contributing with the insurance provided by COUNTY. COUNTY shall provide DISTRICT with an endorsement for all policies except workers compensation. 14. Separation Of Insured: All liability policies shall contain a"Separation of Insured"clause. 15. Non-Limiting(If ADplicable): Nothing in this Lease shall be construed as limiting in any way, the extent to which COUNTY may be held responsible for payments of damages to persons or property nor shall it limit COUNTY'S obligations under the indemnification provision contained in the Lease. 16. Deductibles and Self-Insured Retentions: Any deductible and/or self-insured retention must be declared to DISTRICT on the Certificate of Insurance. All deductible and/or self-insured retentions require approval by DISTRICT. At the option of DISTRICT,either: the insurer shall reduce or eliminate such First Amendment to Lease Page l of22 O.C.Sanitation District LEGAL02/38)56)5M deductible or self-insured retention as respects DISTRICT; or COUNTY shall provide a financial guarantee satisfactory to DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. 17. Defense Costs: Liability policies, except for Errors and Omissions Coverage, shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. 18. Subcontractor(s): COUNTY shall be responsible to establish insurance requirements for any subcontractor hired by COUNTY that will enter and/or work on the Premises. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the subcontractor's operations and work. COUNTY shall ensure that DISTRICT is an additional insured on all policies of insurance required from subcontractors. For general liability coverage, subcontractors shall provide coverage with a form at least as broad as CG 20 38 04 13. 19. Waiver Of Insurance Requirements: DISTRICT reserves the right to waive any insurance requirements based on the nature of the Premises, its location, the size, kind, and use of the structures and improvements situated on the Premises, the time required for removal, method of removal, number of personnel used, and type of vehicles or equipment used for removal of property from the Premises. 20. Limits Are Minimums: If COUNTY maintains higher limits than any minimums shown above, DISTRICT requires and shall be entitled to coverage for the higher limits maintained by COUNTY. 21. Self-Insurance: COUNTY shall have the right to self-insure, in whole or in part, any and all risks that COUNTY is otherwise required to insure under this Section 13 of this Lease; provided, however, that COUNTY'S right to self-insure shall in no way diminish any of the rights and privileges to which DISTRICT would otherwise have been entitled under the terms of this Lease had there been a third-party insurance provider (e.g., waiver of subrogation). DISTRICT hereby accepts COUNTY's Certificate of Self-Insurance (attached hereto as "Exhibit D') as proof of COUNTY'S self-insurance in satisfaction of those insurance requirements COUNTY is otherwise required to insure under this Section 13. G. Clause 18 (NOTICES) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: First Amendment to Lease Page of22 O.C.Sanitation District LEGAL02/38)56)5M "18. NOTICES (9.1 S) All written notices pursuant to this Lease shall be addressed as set forth below or as either Party may hereafter designate by written notice and shall be deemed delivered upon personal delivery, delivery by reputable overnight courier, sent by facsimile or other electronic telecommunication with date/time confirmation,or 72 hours after deposit in the registered or certified United States Mail, return receipt requested. TO: DISTRICT TO: COUNTY Orange County Sanitation District OC Sheriff/Real Estate 10844 Ellis Avenue 320 North Flower Street, 2nd Floor Fountain Valley, CA 92728-8127 Santa Ana, CA 92703 Phone: 714-962-2411 Phone: 714-834-2065 Fax: 714-962-8379 Fax: 714-834-6411 Attn: Clerk of the Board Attn: Jonathan Bordeaux, Real Estate Email Klore@ocsd.com Manager, OC Sheriff/Real Estate Email: Jbordeaux(a.ocsd.org' H. Clause 19 (ATTACHMENTS) is hereby deleted from the Lease in its entirety and the following amended clause is substituted in its place: "19. ATTACHMENTS (9.2 S) This Lease includes the following documents,which are attached hereto and made a part hereof: I. GENERAL CONDITIONS II. EXHIBITS Revised Al. Lease Description—Premises Revised Bl. Location Map&Plot Plan—Premises C. Jitney Contract D. County Certificate of Self-Insurance I. Wherever a conflict in the terms or conditions of this First Amendment and the Lease exists,the terms or conditions in this First Amendment shall prevail. In all other respects, the terms and conditions of the Lease not specifically changed by this First Amendment, shall remain in full force and effect as originally written. / [SIGNATURE PAGE FOLLOWS] First Amendment to Lease Page 9 of22 O.C.Sanitation District LEGAL02/38)56)5M IN WITNESS WHEREOF,the Parties have executed this Amendment as of the date on which the last of the Parties signed it with the agreement that this Amendment shall take effect as of May 5, 2018. LESSOR ORANGE COUNTY SANITATION DISTRICT Date: By: David J. Shawver Chairman of the Board ATTEST: APPROVED AS TO FORM: ptc -� Wel ld-Q Kelly Lore,MMC amela nvett Clerk of the Board Special Counsel LESSEE COUNTY OF ORANGE Date: By: Chairwoman, Board of Supervisors SIGNED AND CERTIFIED THAT A COPY OF THIS AGREEMENT HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD PER G.C.§25103,RESO. 79-1535 ATTEST: APPROVED AS TO FORM: By: Robin Stieler Deputy Clerk of the Board Date: RECOMMENDED FOR APPROVAL: OC Sheriff-Coroner, Real Property Services By: Jonathan W. Bordeaux Real Estate Manager First Amendment to Lease Page to ofn O.C.Sanitation District UGAUR/3ffi5675316 REVISED EXHIBIT Al LEASE DESCRIPTION (11.1 S) PROJECT NUMBER: GA 1239-57-2 DATE: MAY 22,2018 PROJECT: ORANGE COUNTY SANITATION DISTRICT TREATMENT PLANT#2 800 MHz SYSTEM All that certain real property shown as item 7(a)on the site plan marked Revised Exhibit B,attached hereto and made a part hereof, being a portion of that certain wastewater treatment plant located at 22212 Brookhurst Street in Huntington Beach, County of Orange, State of California, and located on a map recorded as an exhibit to grant deed recorded in Book 8485, page 360 of official records in the office of the County Recorder for the County of Orange, consisting of approximately 4,784 square feet. First Amendment to Lease Page 11 of 22 O.C.Sanitation District LEGAL02/38)56)5M LOCATION MAP 22212 BROOK'M'RST STREET J PLOT PLAN r Y.,a..Mn wa /1 tJ GA 1239-57-2 COUNTY OF ORANGE First Amendment to Lease prepared By:RPB SHERIFT COMNIINICATIONS From OC Sanitation District#2 APNw 114-160-36 for Exclusive-Use of fenced area housing &43 Approm 4,794 sf Communications Facility. Dom;10-21-18 REVISED EDIT Bl First Amendment to Lease Page 12 of 22 O.C.Sanitation District LEGAL02/3875675M EXHIBIT C JITNEY CONTRACT [see attached] First Amendment to Lease Page 13 of 22 O.C.Sanitation District LEGAL02/38)56)5M Ooa518n Envarye ID:L6F8IT)8:1]WdffF9]d1£9G5Q15DYB Attachment A Cosuy of Orange,OCPubkc works CT-080.19010]]9 OCSkerJjj Commmtieanaa Rekunrr,Cammunirn0uns B W..g at llunringmn Jlraeli Najr l CONTRACT This Contract is made and entered into the day of ,April,20_,by and between the COUNTY of ORANGE,a political subdivision of the State of California,bercin referred in us,"OW NLRI ,and Jitney Company,Inc.,herein mitered to as"Coubscuf`. OWNER and Conrxtur agree as follows: 1. CONTRACT DOCUMENTS L Contract Documents,which together comprise the complete Contract between OWNER and Contractor,consist of the following:the Bid: This Contract; the General Conditions; Supplementary General Conditions: the Non- collusion Declaration;Addenda and Bulletins;Attachments;Appendicta;Plans;and Specifications mentioned in any Contract D ctimente and all muditicationsandamcndnents to the tirreguing issued after tle date ofcxecutiou of the Contract,including Amendments and Change Orders.The Contract Documents also include the Tailhfal Performance Bond and the Labor and Material Payment Bond.The Contract Documents arecomplementery,and what"led for by my one shall be as binding as ifcalled for by all. 3. SCOPE OF WORK Contractor shall perform all work as required by,and in strict accordance with, the Counsel Documents(the "Project) for the Orange County Sheriff Communications Relocate Communications Budding at Huntingdon Health Project. Contractor shed provide and furnish all labor, project management, supervision, funding administration, planning, scheduling, rmcnials, lesting, cummiaiuning, inspection, quality control, souls, equipment,services and all tnnsWnatiun services in adequate quantity and quality to accomplish completion of the work as specified and all work in&rred as necessary within the time period seal fi nh. The work shall conform to the Construction Documents and all codes,teguladum,lawn,etc.reteremed in the Counsel Documents or by industry stand"including General Requirements,Division 01—011100 Summary cal'Work. 3. CONTRACT PRICE,CONTINGENCY AND TIME 3.1 CONTRACT PRICE OWNER shall pay Contractor for all work required by the Contact Documents the Cumtr :t Price of Six Hundred Ninety-Six Thousand Three Hundred Sixty-rive Dollars(5696,365.00).as it nay be adjusted pursmm to the "CHANGES" Section of the General Conditions,and in accordance with the"PAYMENTS" Section of the General Cuboitimn. 3.2 CONTRACTTIME Within 10 calendar days of the award of the Contract,Contractor shall submit to OWNER for its review bonds (as detailed below);proof of insm-aoce. K OWNER rejects the submitted do:umems, Contractor will have 5 additional calendar days to resubmit. If Contractor Ends to submit documents within the required time(s),The Contract Time(as defined below)will be reduced by The number ofdays which exceed the time for submittal.If Contractor fails to submit acceptable documents by the second submission,OWNER nay,at its sale discretion, proceed to award the Contract to the next lowest rcspundve,responsible bidder m reduce the Contract Time by The number of days between O W NER's rejection of the second submission and OW NER's approval of the documents. C619625 Page J of 6 First Amendment to Lease Page 10 of 22 O.C.Sanitation District LEGAL02/38]56]53v6 D SS^Enveage ID:L6F9rrr&3rDN£FA]82a:aC5ar':pOF6 Attachment A Counh of OFange.0CPub0e no," Cl-08 0-1 9010 7M OCSIreNJI C aoimrdearvns Relocate Cammurd, fia.,Iruildur,ar R nno tor;tk'oebP jr<t Upon OWNER appruval of the bouts insureue,and minaijub Construction Schedule,O W NER will deliver to Commcmra signed copy of the Contract and a Notice to Pmeeed with the work. Contactur shall tan commerce construction until OWNER issues the Notice W Pnxxed. Cntractor shall eumplete all wurk required by the Contract Documents within 90(mrcty)calendar day of the effective date of the Notice to Proceed("Contract Time'). The Contract Time muludes teru days of anticipated weather day mcesvitating stoppage of work,and a tint extension due to rein orotheradvatse weather conditions will only be granted in accordance with the"DELAYS DUE TO WEATHER AND FORCE MAIEURE"Sectrm ofihe General Conditions. The OWNER and Afthure:t will not be responsible for the failure of the Contactor to plan,schedule,and execute the workimaccordanxe with the appr ieedschedule or the failure ofthe Curtrecturm meet theContract completion dates or the failue ofthe Contractor m schedule and coordinate the work of his own trades and subcontractors or to coordinate with uthers separate Contractos. a BONDS Within 10cnlerMudays aftermowd of WeContract,the successful Contraelorsball furnish a kaithf d Perfa mince Bond and a Labor and Material Payment Bond,each in an amount equal to 100%ofthe Contred Price,issued by a suety,in accordance with the requircmcnts of the General Conditions of the Cumact.The bonds shall be in the form of the mu lels inclined in the levitation for Bid Documents,and must be approved by OWNERS Risk Manager and County Counsel.The successful Contractor shad submit the bonds in duplicate,all of which shall bear original signatures. The signature ofthe surety rcpicarmatrte most be notarized. 5. LIQUIDATED DAMAGES In accordance with Gu,ermm:ntCude Section 53069.85,Contractor agrees W furfWt and pay to OWNER the sum of six hundred&twenty five(S625)per day("Liquidated Damages")for each calendarday that completion of all the work required by the Contract Documents%delayed beyond the Contract Time,as may beadjnsteel by Change Order.OWNER may deduct such sum fmmany paymenudue to or to hemme due in Centimeter.Ifihe Liquidated Damages exceed the unpaid balance of the Contract Price olberwise owed to CONTRACTOR, then CONTRACTOR shall immediately pay OWNER the ditTercncc 6. CONTRACTOR SHALL PERFORM 5 • ORMOREOF THE WORK Contractor shall be capable of performing,and shall perform with its own organiretiu ,work amounting to at knot 51 %uftht:Ruse BMAmum . Huwever,my BM hemdesignated rcu specialty bed item will be excluded from the Base Bid Amount for purposes oftltis Sooner only. 7. EMPLOYEE ELIGIBILITY VERIFICATION Contractor hereby certifies that it empties with all applicable laws and reputations,regarding the eligibility,ufitx employees to work in the United States,and that all of its employees performing work under this Contract meet all citizenship or immigration status requirements to do an. Contractor shall obtain all documentation necessary to verify theempluymem etigdbidry suiusufwvendemployeesin described by U.S.Citizenship and Immigratiun Services Enron 1-9. C triacor shall retain such documentation fur the period preso-ribed by law.Cuntra:Wr shad indemnify,defers!with counsel approved in writing by OW\LR,and hold harmless the OW\ER, its agents, officers, and employees firm my sanctions or Lability that may be assessed in coura ctiun with soy alleged violation of federal or State laws or regulations pertaining to the eligibility for employment of my persons performing work under this Contract. & SECURING WORKERS'COMPENSATION INSURANCE CERTIFICATION Contractor,by executing this Contract,hereby certifies: C019625 PaW2oJ6 First Amendment to Lease Page IS of 22 O.C.Sanitation District LEGAL02/38756753v6 D 5,r Envelope ID:88F9rrr&rmJN£FAr82-E4(;5ar".00F6 Attachment A C.uo,nj OFange.OCPubfi nooks CT-0 8 0-1 9010 7M OCSberljf C mm mans,.R,b srie Cammurdcab.,Build,.,a!Ha ift.,un I ,s,h Itraµz1 "1 am aware of the provisions of Section 3"/00 of the labor Cud, which require every employer to be insured against labday fur workers'cumpcnamen or to undertake self-insurance in accordance with the provisions of that code, and 1 will comply with such finwisium before eummencing the performance of the work of this centrawt" 9. PARTIES'REPRESENTATIVES 9.1 OWNER'S REPRESENTATIVES 9.1.1 OC Public Works.The Project is trader the gearal direction ofOW NER's fAadof'Supervisurs. The Board of Supervisors authorizes OC Public Works Director to be OWNER's representative in mnnmbout with the Project 9.1.2 OW NERSS Project Manager The Project Manager shall be Frank Cnsak i unless OC Public Works Diratordessgrntes in writing m alternate person who will act as OW NFR's tpresenative during maitructim of the Project Unless otherwise expressly sated in the Cornier Document, OW NERs desigmded representative will issue and receive all wrinen communications unbehalfi fO W NER herdic Project The dcsigmad representative shall also coommme any communications to or from OWNER's Archilect-Pngineer("A-h")in eonvrctiun with the Project.OW NIBS Prujmt Manager is the OWNER's exclusive contact agent to the Contractor with respect to this Project during construction and until the completion of the Project. The OWNER's mmmun admis with the Contractor and A-E shall be exclusively through the OWNER's Project Manager. Project Manager shall manage the none wsponsibili bes of OW NER,but ism authorized to make decisions for OWNER that maritally affect this Counter or maw additiuml legal liabilities fotOW NER. 9.1.4. The OWNER will nut be nspuoxible for the acts or omissions of the Ounnacten, or my subcontractor, or my ContracturS or submnn ctur's agents or empluyees, or my other persons perfumung my of the work. 92 OWNER OWNER has the find authority in all manes affisaing the weak OWNER has the authority to enforce Contractor's compliane with the Contract Document.OWNER's decision is final and binding m all questions relating to:quantities:acceptability of material,equipment,or work:execution,progress,or sequence of work and interpretation of the Contract Lineaments.AR labur,materials,toot,equipment furnished by Contractor nod all work performed by Contrectur shall be subject to the approval ofOW NER 9.2.1 The OWNER and A-E shall Write responsible for or have central or charge of the construction means, methods, techniques, sequences or paxcdures, or for safety precautions and programs in connection with the work and will not be responsible for the Contractor's failure to carry out the work in mourdame with the Conduct Documents. 9.2.2 The OWNER and A-E will not be responaible for the failure of the Contractor to plan,schedule, aid execute the work in accordance with the approved schedule or the failure of the Contractor to meet the Contract completion dates or the failure ufthe Contractor to scheduleandcmrdimlethewurkufbis own mid.and subcuntractoa or to o nerdir a with others separaw Contractors. 9.2.3. The OWNER will not be responsible for the arts or orommis of the Contractor, or any subcontractor, or my Cum cwA or suhcoutratuA agents or empluyen, or my other persons performing my of the work C019625 Pays 3oj6 First Amendment to Lease Page16of23 O.C.Sanitation District LEGAL02/38)56)53v6 Dm5lgn EmnkpelD:L6F8]]]8a]WAffF6]dbE4G51]15pPF6 Attachment A Cou1a014 ao"i f,0CPu601 nwb CT-08049010]]9 r S6e,W CnMnrara mn9111 e.ae Cammunhnnuna UuildinKat Hun]inKrnn f ,od,Praµ'U 9.3 COMIRACTOR'S REPRESEN7ATIVES 9.3.1 Remesnmh%c and Alternate: Before starting work Contractor shall designate in writing a reprcsenaUve who shall have complete authority to act for it.Contractor may also desigmle an alternate representafive with complete audimily[owl for it.OW NhR may rely om swh representative oraltems, as having the authu ity to execute Change Orders in any amuuot unless Cona-xlur idenfifies to OWNER in writing the uther(s)ur employce(s)with such authority.Any order or wmmumeanun town to this representamw shill be deemed delivered to Contractor.In the absence of Contractor's representative, imvucmins or directions may be given by OWNER to the project manager or superintendent.Such order shall be complied with promptly and refemd to Contractor or its representative. ContrxYur's representative and allermte most be able to read,write,and speak English fluently. 9.3.2 Contractor's Pro ect Manager. Collimator shall provide the services of the pi uect manager. Contractor's project manager,ifdifferent than designm d representative,shall represent Contractor in the absence of Contractor's designated rcpoentative in alternate, sod all dimtium given to the pmjwt tang-er .shall be binding os iftoven toCmWxtur. OWNER may require Contractor to replace[be project manger whose conduct car perlmmrace is meaut mcimy.Cmumc nr shall col change its project monger without OW NER's consent unless the pmjwl tamper is unsaatisfactory to Contractor or craws to be in Cuntracmes employ.If Contractor's project monger leaves the Prnject CumneInn shall replace him or her walmi 24 hours(unless additional fine is speed upon by OWNER)with anew,weRyualified project nwmgcr acxeptable to OWNER. 9.3.3 Superintendents); Contractor shall provide the services of the superimendent(s). A superimendela shall be prewm at the work site wheneverwurk is ins progress ine1 Wing wheneverweather conditions necessitate its presence to tail¢measures necessary to prNwl the work persons or property. Contractor's superiraerdcnt shall represent Contractor in the absence of Contractor's designated representative,alternate or project rmmger,and all directions given to the superintendent(s)shall be binding as if given m Contractur. The supennlerxlenl most read write, and speak English fluently. OWNER may require Contractor to replace a superintendent whose conduct or performance is unsatisfactory. Cuntxetor shall not change ila supurinlendent without OWNER's consent unless the superintendent is unsatisfactory to Contractor in ceases to be in Contractor's employ. If Contractor's superintendent leaves the Project.Contractor shall replace him or her widen 24 hours(unless of tonal fine is agrccd upon by OWNER)with a new,well-qualified superintendent acceptable to O W NM 9.3.4 EmenalleV Cmmcis' Contractor shall provide OWNER with a list of mines and telephone numbers at which Contractor's representative,alternate,superintendent,and other key personal em be reached during nun-wurking hours in the case of an emergency. 10. GOVERNING LAW AND VENUE—CODE OF CIVIL PROCEDURE SECHION 394 Thus Contract has been negotiated and executed the Sate ufCalifor is and shall be governed by and consumed under the laws of the State of Cablumm. In the event of any legal action W enforce in interpret this agreement, the axle and exclusive venue shall be a court ofcompe&nt jurisdietion located in Orange County,California,and the parties hcrcto agree to and hereby submit to the jurisdiction of such cum,notwithstanding Code of Civil Procedure Section 394. The parties speeifimRy agree Ihrl by soliciting and entering into and performing services order this Contract,the Contractor shall be deemed to cnmtimte doing business within Orange County fium the lime of suliciatkt of work through the period when all work under this Contract is wmpleled,and connnuing until the expirimm of my apph.ble limitations periuL Pinlhermtrc,the parties have specifically agreed as Fun of the consideration given and moved forentering this Contract,to waive any and all rights to request that anacfion be,transfemxl fur trial to amgbercomty,under Code ufCivil Procodure Section 394. C619625 Page4oj6 First Amendment to Lease Page 17of 22 O.C.Sanitation District LEGAL02/38]56)53v6 Uoc,SNr E,va"ID:L®F8]]]8a]W-0�FA]82£eC5a]'4�OF6 Attachment Cmm]ynj OFange,0CPu60e no," CT-08049010]]9 O SheNjf Cnmmm4nura.RelarareCammurrhnnons UuildinX a/(iunlinXron lkneh Proµxt H. SIGNATURE REQUIREMENTS The Contract most be vgned byo2Hcer(s)authorized to bind Contractor.Ifdx:umentruton demomRating express authority is not provided then the Contract must be sitmed by thuae officers with apparent authority to bind Contractor.If Contractor is a corporation such signature most comply with Corporations Code Section 313,as fullow,c 1) One signature by the chairman of the banod,the president or any vice president aid One signature by the serae6ay,mY asdstmt secrepuy,the chief fmuxial olScer,or any assutrmt uresmtt. 13, ENTIRE CONTRACT The Contract Documents represent the entire and integrated agreement between OWNER and Contractor and supersede all prior representations, statements,or afneemens;concerning the subject matter of this Cumrixt4 whether verbal or written. C0196as Poe S of First Amendment to Lease Page 18 of 22 O.C.Sanitation District LEGhL02/38]56]53v6 Oga5lgnF umINeID:89F8!]r6a]WdffF9]92£4C50)t:OFF6 Attachment A C0.w.j Otmnge,0CPu60e"ono CT-0 8 0-1 9010 7M OCS6edjj Commtusawn u Hebrnre Cammmrimnons HuildinX al HunnnKrun Ikao6 N,,,l IN WITNESS WHEREOF,the Parties berclo have eseculed this Contract on the elates opposite their rcspecone signatur eze Mary Company,Inc a Cabtbmia Corporation Dole:2/21/2019 D Y Imes Cunningham - President Print Name&Title (Ifa eurpormur,the document most be signed by txv csrplme officers.The 1°must be either Chnimren of the Baanl,President cram,Vice President.) Date?/26/2019 By Wn Nichols - CEO/-rreasurer Print Name&Title (If a rvipomtiem, the god signature most be either the Secretary, an Aaysiant Soc Bury, the Chief Financial O16axr,or any Assistant Treasurer.) COUNTY OF ORANGE, a political subdivisi000f the State ofCalifomia Date: By De"Purchasing Apxot County of(trange,California Date:2/26/2019 APPROVED AS TO FORM Office ofthe County Counsel Orange County,California By:Justin Graham'! Deputy CO19625 Poe 6 of 6 First Amendment to Lease Paget9of22 D.C.Sanitation District LEGAL02/38)56)53v6 EXHIBIT D COUNTY'S CERTIFICATE OF SELF-INSURANCE [see attached] First Amendment to Lease Page 20 of 22 O.C.Sanitation District LEGAL02/38)56)5M COUNTY OF ORANGE CERTIFICATE OF SELF-INSURANCE Office of Risk MansBenent.600 W.Santa An Blvd.,Sm. 104,Serra Ana,CA 92701 Cgveraee: This is to certify that the County of Orange is self-insured for the following coverage: Type of Corenga Self-Incur imce Limit Cwneral Liability: Bodily Injury and Property Damage 55.000,000 per occurrence $5,O00.000 aggregate Automobile Liability: Vehicles owned,non-owned and hired $5,000,000 per occurrence Terms. Conditions and Soccial Items: "rhe provisions under General Liability,above,shall apply only with respect to claims arising out of the negligent acts or omissiom of the County of Orange, its ofcers,agents and employees or any other person under its direction and control. Cancellation: Should any of the above described self-inswed coverages be modified or ancelled before the expiration date shown below, the County of Orange will provide 30 days wrinen notice to the named certificate holder Certirrcata Holder Certificue Effective Date. D.544:18 Orange County Sanitation District Certificate Expiration Due:OW523 108" Ellis Avemse Fountain Valley,CA 92728-8127 ATTN: Clerk Of the Board1Lt RE: Agreement GA-1239-57-2 22212 Brookhurst Street,Huntington Beach,CA 92646 Manager,Risk Management DATES: May 5, 2018 - May 4,2023 (7 141 2 85-5 5 00 Due Certificate Issued 06:W r First Amendment to Lease Page 21 of 22 O.C.Sanitation District LEGAL02/38756753v6 PRav-25M EVIDENCE OF PROPERTY COVERAGE IIw LUq�YtYGSCN A WTIU 6 iYf VPwnOw G)¢Y Nd CUfU!1m RIOMS VJI TXE a®ICNK IMdLBY MB EM'JBICE 09 MOi MIrN1R6Yd 16La1FHY R00.Q16100a KRR Mf GWBIl�IiiCb®IBAY iM6 EMOBYS Of C(R61IlE O�Blmi CQR6IRV'E P m111MR2w1MEB1 11E F®mB/YII@IIGY W11g1®Rf1 WT1iAlM d MmIYU.Mm/GT4LLL WitAFdl. fftixmu CC AUVMF y(CSAC FLA) CIO ALLLWT INSURANCE SEIMCES, INC BY A-CUC E L Imu r=Audbo ty ro eox wo 1IVVW HT SFACM CA a2S6ASaso �.. 9 RICMc(W TE- '/FAX If8li/0 l wgR iOwO� uVRmeR ORAIgC COIRIIY YTl f3NWR18-21 RRX IYIOtOFI®IT OCPARTNf31T ITSTco3 mXmlpw mn vYmR..n P O.BOx 1n s ❑ SWRAAWAGX 92r�]I OLJ1201S OYl12o20 RIs1AOtIRAlfrwaXL A9 RESPECTSCOURSEOF pOrISTtlIGIiON A(rWEO1EIlr KE MG ORANGE COID2IY AKOpINgECOLWIYCKCA OM 04aRCT OC9D vB SA Tlc061RG TAcv C Cd1Yl]aGTANS SNtDIRO AT 2221Q Sr.NlAI1PICIW YFMIG (IEGOMY FOD IOQ COaM]RgTR}I SY8iFl11(V��. ORANGE CAI.NfY SAKTATKkI CSTWCT.r15 pRECTORS,O6FICFR..AGENR.CClLSIRT/M9 Alm ENROYEEB ARE IUYEO RS 1098 PAYEE AS 1NEp Of�i$IrAY APPVA. A®!W fIA'IVY TNS 11R�CKA0w1 d CORBIl�l01®PROSE YIE®�®W TIR®RRf®AYfRR N lIFI9® wVrJOq VwrllvOrr1A11I®rr.T�rd(CwKR1 dAn NrMCi 0 Q11VL GM®RalRll 1p'9SY W w01 Tlw 6Ymww YYie•PwIM/MYw.Ir COMIAMlAI101®N11B ww9Rl0'JX0 xEBI a YASi W.41 T9®. 9aLO,I�wawttllr�O�liw®almrOilGwaMYwwFwal�Y[in ovum nAm INbAlrow _ _ _ __ _ �mveaRlrRv u.Rsaanrrr.R+erLarawnaciwuura rlow - - mom.® .a�� wa Amlan® ErAnmuVat�mrwm.wrnour>:wmvwrAracvle '. aam® w�waluw RVAFa RErtA®wrrowrwuwlKRlwesrrolmwwA�uYv mtA.a PRAma+s 'a"aAnblwa Wm[.vuaauRE tllilST roAcaura GMvrwd IavwriNr cosr wA edmulE a rAA wi.ns Nrnaanr YlIIIS AIC 9IN®. Lc R40L 1MPCX X®aRrAaNme�� rl0.'OIIm FMIlI411RIE1: a1Q® >B10.^PIIWBI�A5 P915p1EOl.Ed F:E Ni}N 11k/11MdrtiY YIWQ m® EYIHI WA amGLL 1iG®M1OGTM'JV IEN ROd IbIE AORy O®UCiHIF RatmIIm `En3aa wm WVlf tplIDYtiMi i1 CA4.R14E66O�LWID Nm Y1R0Y®.®ICWlE 1MaBR1OirYWR1AwMMA11Ar�M1. ana,n.wY oc i��eoSE Ovaa®�mRwlwMsl OF cw®rnw w aoan wrvo naawBowannrror.Rwlwwur OBli91®.T ILCCAp/NCE WM i1Q r001IYCJV1i)R COV61MFPbVOt APRIIK.�LLOfYT _ Ru1Rm X®Rw w11r OOroO1 ORANGE CCUNTY SAN2TATIM OI6 ICT vmy6 AlT CIENK OF THE BOARD 1WaE SAYE X LOw PAY (anon VALLEY,G 9Z12B r�®Re®mw a��aRRR� First Amendment to Lease Page 22 of 22 O.C.Sanitation District LEGAL02/38)56)5M Project No.: GA 1239-57-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 800 MHZ Lease Agreement / L[� 1 THIS LEASE AGREEMENT, ("Lease") is made, and entered into, to be effective the day of 2 19 V' by and between the County Sanitation District No. 1 of Orange County, 3 California for itself and as agent for County Sanitation Districts Nos. 2, 3, 5, 6, 7, 11, 13 and 14 4 of Orange County, California, hereinafter referred to as"DISTRICT", and the County of Orange, 5 a body corporate and politic, hereinafter referred to as "COUNTY". 6 7 8 RECITALS 9 10 A. DISTRICT is the owner of that certain parcel of real property in the City of Huntington 11 Beach, County of Orange, State of California, commonly known as Treatment Plant#2. It is 12 located generally in the area bounded by Brookhurst Street on the west, the Santa Ana River on 13 the east and Pacific Coast Highway on the south and a boundary wall separating residential 14 property located approximately 300 feet south of Hamilton Street on the north. 15 16 B. COUNTY desires and DISTRICT agrees to lease a portion of such real property to 17 construct, maintain and operate a radio mobile/Wireless communications system and 18 appurtenant structures including an antenna tower thereon. 19 20 In consideration of which, and the other considerations hereinafter set forth, it is mutually agreed 21 as follows: 22 23 1. PREMISES (1.2 S) 24 DISTRICT leases to COUNTY that certain real property hereinafter referred to as the "Premises" 25 described in "Exhibit A" and shown on the sketch to accompany description, as"Exhibit B", 26 which exhibits are attached hereto and by reference made a part hereof. 27 28 2. USE (2.1 S) 29 The Premises may be used by COUNTY during the term of this Lease for any lawful activity 30 directly related to and in connection with the construction, installation, operation and 31 maintenance of a radio wireless communications system and appurtenant structures, including 32 without limitation, the installation of a tower, not to exceed a height of 150 feet, for the 33 transmission and the reception of radio communication signals on various frequencies and the 34 construction, maintenance and operation of related communications facilities. 35 36 District shall be allowed to let to new radio/telecommunications lessees/licenses near Premises 37 so long as new lessees transmission/reception signals do not interfere with County's operations 38 of the 800 MHz system. In the event such new lessee/licensee transmissions/receptions i Revision Date:3111198 Project No.: GA 1239-57-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 1 interfere with County's operations, District shall require new lessee/licensee to modify its 2 communications equipment so as to eliminate said interference. 3 4 3. COMPLIANCE WITH THE LAW 5 COUNTY shall, at its sole cost and expense, comply with all the requirements of municipal, state 6 and federal authorities now in force or which may hereafter be in force pertaining to the use of 7 said Premises, and shall faithfully observe in the use of said Premises, all municipal ordinances 8 and regulations, and state and federal statutes and regulations now in force or which may 9 hereafter be in force, and obtain all necessary permits or licenses. Without predetermining in 10 any respect the exercise of discretion vested in the legislative body of DISTRICT, DISTRICT 11 agrees to reasonably cooperate with COUNTY, at COUNTY's expense, in making application for 12 and obtaining all licenses, permits and any and all other necessary approvals that may be 13 required for COUNTY's intended use of the Premises. 14 15 4. TERMINATION OF PRIOR AGREEMENTS (1.4 S) 16 It is mutually agreed that this Lease shall terminate and supersede any prior agreement 17 between the parties hereto covering all or any portion of the Premises, EXCEPT that all 18 personal property and/or equipment (e.g., antennas, fuel tanks, equipment building, tower 19 communications equipment) attached to and/or placed upon any portion of the Premises by 20 COUNTY pursuant to the terms of any prior agreement between the parties hereto shall remain 21 the personal property of COUNTY. 22 23 5. TERM (2.2A S) 24 The term of this Lease shall be twenty (20) years, commencing on the effective date. 25 26 6. EQUIPMENT OWNERSHIP (N) 27 At the end of the Lease, or abandonment by COUNTY, ownership of the tower and all 28 equipment (e.g., antennas, fuel tanks, equipment building, tower, and communications 29 equipment) shall remain the property of COUNTY. If COUNTY does not intend to use this 30 equipment, then the COUNTY shall demolish and remove all equipment, at its sole expense, 31 within one hundred twenty (120) calendar days after expiration of the term, or abandonment 32 thereof. 33 34 In the event the COUNTY fails to demolish and remove this equipment within the required time 35 period, then DISTRICT can make arrangements to have this equipment removed by a third party 36 and the COUNTY agrees to reimburse DISTRICT for all reasonable costs associated with this 37 action. 38 39 7, OPTION TO TERMINATE LEASE (2.4 S) 40 DISTRICT shall have the option at its sole discretion, to terminate this Lease at any time upon 41 giving the other party written notice at least two (2) years prior to the effective date of 42 termination. COUNTY shall have the option at its sole discretion, to terminate the Lease at any 2 Revision Date:3/11198 Project No.: GA 1239-57-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 1 time upon giving DISTRICT written notice at least one hundred twenty (120) days prior to the 2 effective date of termination. 3 4 8. OPTION TO EXTEND TERM (2.3 S) 5 COUNTY shall have the option to extend the term of this Lease for two (2) additional five-year 6 periods on the same terms and conditions upon written notification to the other party of the 7 exercise of said option at least sixty (60) days prior to the Lease termination date. 8 9 9. RENT(3.1 N) 10 As consideration for the lease of the Premises as described herein, COUNTY and DISTRICT 11 agree: 12 13 A. That COUNTY will pay annually, as rent for the Premises the sum of Four Thousand 14 Two Hundred ($4,200) Dollars commencing on the third anniversary of the 15 commencement date of this Lease. Rent shall be due and payable on said third 16 anniversary, and thereafter, on every remaining anniversary of the commencement date 17 of this Lease throughout the remaining term of this Lease and any extension thereof. 18 19 B. That COUNTY will purchase, provide, and install two control stations for DISTRICT's use 20 for those transmissions necessary to perform joint coordination during emergency 21 situations where there is imminent danger to life and property or to coordinate disaster 22 operations (hereinafter referred to as"Mutual Aid"). Said control stations shall be 23 provided by COUNTY at no cost to DISTRICT in lieu of COUNTY rental payments for the 24 first three years of the lease term. One control station each shall be installed at each of 25 the DISTRICT's two sanitation treatment plants. Ownership of said control stations shall 26 transfer to DISTRICT at the end of the third year of the Lease term. 27 28 C. DISTRICT, for the entire term of this Lease Agreement, shall have Mutual Aid access to 29 and use of the 800 MHz System during emergency or disaster operations of the 30 DISTRICT, through use of the two control stations designated above, at no cost to the 31 DISTRICT. For access to and use of the 800 MHz system for all other regular 32 operational purposes, DISTRICT shall apply to join the 800 MHz Countywide 33 Coordinated Communication System (CCCS) and pay all required costs and charges as 34 determined by the 800 MHz Governance Committee at the time of approval. 35 36 D. In recognition of the accommodation and support provided by the DISTRICT in granting 37 this lease, COUNTY will support DISTRICTs application to join the 800 MHz CCCS at a 38 future date on the most favorable terms; acknowledging that ultimate approval of the 39 application rests with the 800 MHz Governance Committee. 40 41 42 3 Revision Date:3111/98 Project No.: GA 123957-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 1 10. ALTERATIONS (4.4 S) 2 COUNTY may make improvements and changes in the Premises, including but not limited to the 3 installation of communications equipment and fixtures, partitions, counters, shelving and other 4 equipment as deemed necessary subject to the prior written consent of DISTRICT. It is agreed 5 that any such communications equipment, fixtures, partitions, counters, shelving and other 6 equipment attached to or placed upon the Premises by COUNTY shall be considered the 7 personal or real property of COUNTY, who shall have the right to remove said property. 8 9 11. REPAIR AND MAINTENANCE SERVICES (5.1 N) 10 COUNTY shall provide at its own cost and expense all repair and maintenance services 11 (including fire extinguishers), to the Premises and the improvements thereon. 12 13 12. UTILITIES (5.2 S) 14 COUNTY shall be responsible to pay, prior to the delinquency date, all charges for utilities 15 supplied to the Premises. 16 17 13. PROPERTY INSURANCE (5.3 N) 18 Prior to COUNTYUS entrance upon the Premises, COUNTY shall provide written evidence of 19 the required insurance on a form acceptable to DISTRICT. In the event that COUNTY provides 20 evidence of insurance, DISTRICT shall, at all times, have the ability to inspect and receive 21 copies of said insurance policy or policies. COUNTY shall maintain throughout the term of this 22 Lease insurance coverage for fire and other hazards, casualties, liabilities and contingencies as 23 included within an all risk extended coverage hazard insurance policy with extended coverage 24 on the Premises to the full insurable value of improvements located on the Premises. COUNTY 25 shall have the option to self-insure for all COUNTY insurance requirements pursuant to this 26 Lease. In the event that COUNTY chooses to self-insure the coverage, written notice to that 27 effect shall be provided instead of the evidence of insurance. In such event, DISTRICT shall be 28 provided a detailed written report setting forth the adopted policies and programs of COUNTY 29 authorizing the self-insurance (i.e.: a certificate of insurance). 30 31 14. INDEMNIFICATION (5.5 S) 32 COUNTY shall defend, indemnify and save harmless DISTRICT, its officers, agents and 33 employees, from and against any and all claims, demands, losses or liabilities of any kind or 34 nature including reasonable attorney fees and litigation costs which DISTRICT, its officers, 35 agents and employees may sustain or incur or which may be imposed upon them for injury to or 36 death of persons, or damage to property as a result of, or arising out of, the sole negligence of 37 COUNTY, its officers, agents, employees, subtenants, invitee, or licensees, in connection with 38 the use of the Premises by COUNTY. Likewise DISTRICT shall defend, indemnify and save 39 harmless COUNTY, its officers, agents and employees from and against any and all claims, 40 demands, losses, or liabilities of any kind or nature including reasonable attorney fees and 41 litigation costs which COUNTY, its officers, agents and employees may sustain or incur or which 42 may be imposed upon them for injury to or death or persons, or damage to property as a result 4 Revision Date:311 M8 Project Location O.C. Sa-1:a:icn District Treatr-, 1 of, cr arising out of t-e scle regllgence of DISTRICT, its officers, agents, employees, invitee, or 2 ' censees. in ccnrectio- ..i;r t,ee ownership or use of the Premises. 4 15. ASSIGNMENT (6.1 S) 5 CCUFTY shall rot assign. this Lease without the prior written consent of DISTRICT, which 6 ccnse-.' sra ll a ba be withheld. r 8 In the event COUNTY des es tc assign this Lease, COUNTY shall deliver all documents relating 9 to s.ach assicr—a-- -o DISTRRI'IT and DISTRICT shall respond within thirty (30)days after receipt c`all c-cu-.er:s -a a::rg to such assignment that it consents or does not consent to such ` assignment on the same ter^,s as those proposed. 12 13 In the event DISTRICT ccrsents to any proposed assignment contemplated hereunder, 14 COUNTY shall have rc fu-;re, '.lability underthis Lease from and afterthe effective date of such 15 assignment. provided t .e Ass igree of the lease assumes the lease without change to the terms 16 and cc,- 'icns, except as agreed to, in writing, by the DISTRICT. 17 18 16. SUBLEASE (6.2 S) 19 COUNTY shall not sublet all or any part of the Premises without the prior written approval of 20 DISTRICT. 21 22 17. DEFAULTS AND REMEDIES (6.9 N) 23 The occurrence of any of the following shall constitute an event of default: 24 25 Failure -c pe:'orm any obligation, agreement or covenant under this Lease. 26 27 In the event c` ary -reach of this Lease by COUNTY, DISTRICT shall notify COUNTY in writing 28 of s•..ch crea& aid COUNTY shall have thirty (30) days in which to initiate action to cure said 29 breach. 30 31 In the even: any breach of th. s Lease by DISTRICT, COUNTY shall notify DISTRICT in writing of 32 such brea--. arc DISTRICT saa have thirty(30)days in which to initiate action to cure said 33 breach. 34 35 18. NOTICES (9.1 S) 36 AI':. vrritten oti-es ct:rsuart i- th':s Lease shall be addressed as set forth below or as either party 37 may -e,eaf.e-ces'.cnate. t, ..,:ten notice and shall be deemed delivered upon personal 38 ce very. delivery L., facs - le cr other electronic telecommunication with date/time delivery ccn`--at c- a,- -cc-s after ceposit in the United States Mail. 40 41 42 5 Revision Date:311IM Project No.: GA 1239-57-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 1 TO: DISTRICT TO: COUNTY 2 3 County Sanitation Districts of Orange County County of Orange 4 10844 Ellis Avenue O.C.S.D./Communications 5 Fountain Valley, CA 92728-8127 840 N. Eckhoff St., Suite 104 6 (714) 962-2411 (phone) Orange, CA 92868-1021 7 (714) 962-8379 (fax) (714)704-7900 (phone) 8 (714) 704-7902 (fax) 9 10 19. ATTACHMENTS (9.2 S) 11 This Lease includes the following, which are attached hereto and made a part hereof: 12 13 I. GENERAL CONDITIONS 14 IL EXHIBITS 15 A. Description-Premises 16 B. Plot Plan—Premises 17 18 IN WITNESS WHEREOF, the parties have executed this Agreement the day and year first 19 above written. 20 21 APPROVED AS TO FORM: DISTRICTS 22 23 Thomas L. Woodruff County Sanitation District No. 1 24 General Counsel, CSDOC of Orange County, California for 25 Itself and as agent for County 26 Sanitation Districts Nos. 27 By: %20�O , 3, 5, 6, 7, 11, 13 and 14 28 29 Dated: L� 1998 By: �. .,a 30 Chair, Board of Direct 31 32 Dated: 3 /A 1998 33 34 By: 35 Penny Kyl , B d Secretary 36 37 Dated: 11998 38 39 40 41 42 6 Revision Date Y11198 Project No.: GA 1239-57-1 Project Name: 800 MHZ Project Location: O.C. Sanitation District Treatment Plant#2 1 RECOMMENDED FOR APPROVAL: 2 3 O.C.S.D./Communications 4 ®s 11 nn 5 By: 4 W• b 6 7 8 Dated: 1998 9 10 Laurence M. Watson 11 O.C.S.D. Real Estate COUNTY 006UNISEL 12 - 13 By: 14 Re roperty Agent 15 16 Dated: , 1998 Dated: 1998 17 18 19 20 SIGNED AND CERTIFIED THAT 21 COPY OF THIS DOCUMENT HAS 22 BEEN DELIVERED TO THE 23 CH IRMAN OF THE B ARD COUNTY 24 25 IkA / COUNTY OF ORANGE 26 DARLENE J. BLOOM 27 Clerk of the Board of Supervisors of ,,. By: � �wts 28 Orange COUNTY, Cafrfomia Chairman, - and of Supervisors 29 30 Dated: MAY S 1998 , 1998 Dated: SAY 5 1998 , 1998 7 Revision Date:3/11/98 1 GENERAL CONDITION(S) 2 3 4 1. LEASE ORGANIZATION (10.1 S) 5 The various headings of this Lease, the numbers thereof, and the organization of the Lease into 6 separate sections and paragraphs are for purposes of convenience only and shall not be 7 considered otherwise. 8 9 2. INSPECTION (10.2 S) 10 DISTRICT or his authorized representative shall have the right at all reasonable times to inspect 11 the Premises to determine if the provisions of this Lease are being complied with. 12 13 3. SUCCESSORS IN INTEREST (10.3 S) 14 Unless otherwise provided in this Lease, the terms, covenants and conditions contained herein 15 shall apply to and bind the heirs, successors, executors, administrators and assigns of all the 16 parties hereto, all of whom shall be jointly and severally liable hereunder. 17 18 4. AMENDMENT(10.5 S) 19 This Lease sets forth the entire agreement between DISTRICT and COUNTY and any 20 modification must be in the form of a written amendment. 21 22 5. PARTIAL INVALIDITY(10.6 S) 23 If any term, covenant, condition or provision of this Lease is held by a court of competent 24 jurisdiction to be invalid, void, or unenforceable, the remainder of the provisions hereof shall 25 remain in full force and effect and shall in no way be affected, impaired or invalidated. 26 27 6. CIRCUMSTANCES WHICH EXCUSE PERFORMANCE (10.7 S) 28 If either party hereto shall be delayed or prevented from the performance of any act required 29 hereunder by reason of acts of God, performance of such act shall be excused for the period of 30 the delay; and the period for the performance of any such act shall be extended for a period 31 equivalent to the period of such delay. Financial inability shall not be considered a circumstance 32 excusing performance under this Lease. 33 34 7. WAIVER OF RIGHTS (10.9 S) 35 The failure of DISTRICT or COUNTY to insist upon strict performance of any of the terms, 36 conditions and covenants in this Lease shall not be deemed a waiver of any right or remedy that 37 DISTRICT or COUNTY may have, and shall not be deemed a waiver of any right or remedy for 38 a subsequent breach or default of the terms, conditions and covenants herein contained. 39 40 B. HOLDING OVER(10.10 S) 41 In the event COUNTY shall continue in possession of the Premises after the term of this Lease, 42 such possession shall not be considered a renewal of this Lease but a tenancy from month to 43 month and shall be governed by the conditions and covenants contained in this Lease. 44 45 46 8 Revision fete:3111MB 1 9. HAZARDOUS MATERIALS (10.11 S) 2 DISTRICT warrants that the Premises are free and Gear of all hazardous materials or 3 substances. 4 5 10. DEFINITION OF COUNTY(10.13 S) 6 The term `C, JNTY° shall mean the Board of Supervisors of the political body that executed this 7 agreeme^`. cr Its authorized representative. 8 9 11. QUIET ENJOYMENT (10.14 S) 10 DISTRIC-acrees that sucliec; tc the terms, covenants and conditions of this Lease, COUNTY 11 may, upcn cbse• r,q ana casmlyng with all terms, covenants and conditions of this Lease, 12 peaceably and qu'etly occLgy the Premises. 13 14 12. TIME (10.16 S) 15 Time is of the esserce ec ti- s ease. 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 \4adon\datal\ p.dtakgsaMlD%h g"s OMHZMDMHZ Masler.doc 9 Revision Date:N11M 1 LEASE DESCRIPTION (11.1 S) 2 3 4 PROJECT NO: GA 1239-57 DATE: October 6, 1997 5 6 Project: O.C. Sanitation District, Treatment Plant#2 WRITTEN BY: RGW 7 800 MHz System 8 9 All that certain real property shown crosshatched on a plot plan marked Exhibit B, attached 10 hereto and made a part hereof, being that certain treatment plant located at 22212 11 Brookhurst Street in the City of Huntington Beach, County of Orange, State of California, 12 and located on a map recorded as an exhibit to Grant Deed recorded in Book 8485, page 13 360 of official records in the office of the County Recorder of the County of Orange 14 consisting of approximately 1/4 acres, more or less. 15 16 17 NOT TO BE RECORDED 18 19 20 21 EXHIBIT A 10 Revision Dete:011M J/ w qd 'Premises � S / Site Flan N Puet Tallo -„ I �- AnteemTuwer Premises Coawuniestinae Baaa+na_ � -(ad Plot Plan SITE/PLOT PLAN O.C. Sanitation District Plant#2, 800 MHz Facility RayW W. 22202 Brookhurst Street, Huntington Beach m COUNTY OF ORANGE File No.: GA 1239-57 O.C.S.D./COMMUNICATIONS O.C.S.D./COMMUNICATIONS EXHIBIT B w- v5m STEERING COMMITTEE Meng D310 TOBE. Dir. 07/lti24/19 07/24/1Or9 AGENDA REPORT Item Item Number 4 16 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lan Wiborg, Director of Environmental Services SUBJECT: COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA GENERAL MANAGER'S RECOMMENDATION Approve a Cooperative Agreement among the County of Orange, Orange County Sanitation District, Orange County Water District (collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority(SAWPA), a joint powers authority, for the Orange County Parties agreeing to remain a part of the Santa Ana Funding Area covered by the One Water One Watershed (OWOW)Plan for a period of ten (10) years, from date of execution. BACKGROUND The CA Department of Water Resources (DWR) administers the state's Integrated Regional Water Management(IRWM)program. Grants under this program are managed through state-approved "Regions". Integrated water resource planning is valuable in identifying opportunities for actions that create multiple benefits and resolve or avoid conflicts in the watershed, and in promoting and improving collaboration across jurisdictions and functions. DWR requires that an IRWM plan be adopted by three agencies responsible for management of water resources. Thus, Orange County Sanitation District (Sanitation District) and other agencies in Orange County have completed the IRWM Plan for the north and central areas of Orange County (OC Plan). In June 2018, the Board adopted the OC Plan for Integrated Regional Water Management in North and Central Orange County(dated March 2018), and approved participation in a Memorandum of Understanding between the Sanitation District, the Orange County Water District, and the County of Orange for Integrated Regional Water Management in North and Central Orange County Watershed Management Areas. The Board also authorized staff to submit applications for the State of California's IRWM grants under Proposition 1 for projects prioritized within the OC Plan. This Agreement serves to memorialize an agreement among the Orange County Parties and SAWPA whereby, in exchange for the Orange County Parties agreeing to forego efforts to form a separate region in the Santa Ana Funding Area for the OC Plan, and, instead, remain a part of the Santa Ana Funding Area covered by the OWOW Plan, SAWPA agrees to abide by the terms and conditions stated within the Agreement, in all Page 1 of 3 rounds of grant funding administered by the State of California under Proposition 1 and any subsequent IRWM grant programs. RELEVANT STANDARDS • Sustain 1, 5, 20-year planning horizons • Secure outside funding (grants)for recycled water or other capital programs • Maintain collaborative and cooperative relationships with regulators, stakeholders and neighboring communities • Meet volume and water quality needs for the GW RS PROBLEM If adopted by DWR, the OC Plan would be recognized as a separate region in the Santa Ana Funding Area that is previously covered by the OWOW Plan. PROPOSED SOLUTION This Agreement serves to integrate the OC and OWOW Plans and establish how IRWM funds will be allocated for projects in the OC and OWOW Plans. Thirty percent (30%) of the IRWM general implementation grant funds will be allocated to projects in the OC Plan and unspent funds in any multi-round grant process will carryover to OC Plan projects in the next round. The remaining seventy percent (70%) of the IRWM general implementation grant funds will be allocated to projects in the OWOW Plan, with ten percent(10%) being allocated to projects that benefit both the upper and lower watersheds and sixty percent (60%) being allocated to projects that benefit the upper watershed. Disadvantaged community (DAC) implementation funds will be treated separately and allocated in accordance with the OWOW Plan and will not count against the thirty percent (30%) OC Plan allocation. TIMING CONCERNS An executed Agreement needs to be in place for the Orange County Parties and SAWPA to comply with grant application requirements. RAMIFICATIONS OF NOT TAKING ACTION The Orange County Parties (which include the Sanitation District)and other entities within the Santa Ana Funding Area will not be able to meet DWR Proposition 1 IRWM grant requirements. Page 2 of 3 PRIOR COMMITTEE/BOARD ACTIONS June 2018 - Adopted "Memorandum of Understanding for Integrated Regional Water Management in North and Central Orange County Watershed Management Areas" and the'Regional Water Management Plan for the North and Central Areas of Orange County (OC Plan)". ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENTS The following attachments)are included in hard copy and may also be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Cooperative Agreement • Memorandum of Understanding • The OC Plan (separate file, electronic only) Page 3 of 3 COOPERATIVE AGREEMENT FOR INTEGRATED REGIONAL WATER MANAGEMENT FUNDING IN THE SANTA ANA FUNDING AREA This Cooperative Agreement(Agreement),which shall have an effective date as of the date fully executed by all parties hereto, is between the County of Orange, Orange County Sanitation District, Orange County Water District(collectively referred to as Orange County Parties), and the Santa Ana Watershed Project Authority(SAWPA), ajoint powers authority. SAWPA and the Orange County Parties are collectively referred to as the"Parties." WHEREAS SAWPA is the Regional Water Management Group for the Santa Ana Funding Area, for purposes of Integrated Regional Water Management(IRWM)project identification, prioritization,proposal, and grant funding allocation with respect to the One Water One Watershed(OWOW)Plan and any subsequent updates; WHEREAS integrated planning at a regional scale is an important aspect of water resources management that is valuable in identifying opportunities for actions that create multiple, regional benefits and resolve or avoid conflicts in the watershed, and such integrated planning is valuable in promoting and improving collaboration across jurisdictions and functions at both the watershed scale and within significant parts of the watershed; WHEREAS North Orange County comprises a significant part of the Santa Ana Funding Area, including the San Gabriel River-Coyote Creek, Anaheim Bay Huntington Harbour, Newport Bay, and Newport Coastal Streams sub-watersheds,where water management issues and priorities, such as surface and coastal water quality, differ from those in the upper Santa Ana River watershed; WHEREAS the Orange County Parties,pursuant to an agreement amongst themselves,to wit, the Memorandum of Understanding for Integrated Regional Water Management in North and Central Orange County Watershed Management Areas, are a Regional Water Management Group for purposes of development and implementation of an IRWM Plan; WHEREAS the Orange County Parties have,with the collaboration of other North Orange County stakeholders from the San Gabriel River-Coyote Creek, Anaheim Bay Huntington Harbour, lower Santa Ana River,Newport Bay, and Newport Coastal Streams hydrologic units, developed and adopted an IRWM Plan for North and Central Orange County, referred as to as "the OC Plan,"which was developed and written to comply with State IRWM standards; WHEREAS the hydrologic units represented in the OC Plan me currently part of the Santa Ana Funding Area covered by the OWOW Plan; 1 WHEREAS prior to entering into this Agreement,the County of Orange submitted an application to the California Department of Water Resources(DWR), to be recognized as a separate region in the Santa Ana Funding Area, to operate independently of SAWPA for purposes of project identification,prioritization,proposal, and grant funding allocation,with respect to projects in the OC Plan; WHEREAS this Agreement serves to memorialize an agreement between the Parties whereby, in exchange for the Orange County Parties agreeing to forego efforts to form a separate region in the Santa Ana Funding Area for the OC Plan, and, instead, remain a part of the Santa Ana Funding Area covered by the OWOW Plan, SAWPA agrees to abide by the terms and conditions stated herein, in all rounds of grant funding administered by the State of California under Proposition 1 and any subsequent IRWM grant programs. NOW THEREFORE, for good and valuable consideration,the sufficiency of which is acknowledged by all Parties, and in light of the foregoing recitals, the Parties hereby agree as follows: 1. INTEGRATION OF THE OC PLAN AND OWOW: a. SAWPA has incorporated the OC Plan by reference in an appendix of the OWOW Plan. SAWPA has made other revisions to the OWOW Plan before its adoption reflecting the existence of the OC Plan and its interaction with the OWOW Plan. SAWPA will make other amendments to the OWOW Plan in future updates or as required by DWR. b. This Agreement determines how State grant funds for IRWM will be allocated for projects in the OWOW Plan,which includes the OC Plan. Projects allocated funds pursuant to Section 2a and 2b.i. below will not be rated/ranked by the OWOW Steering Committee and will be reviewed by the Committee only for compliance with the requirements of the applicable DWR project solicitation. 2. PROJECT IDENTIFICATION,RATING/RANKING, SELECTION,GRANT FUNDS ALLOCATION AND ADMINISTRATION: a. Projects in North and Central Orange County proposed for general implementation IRWM grant funding will be rated, ranked and selected for funding by the processes in the OC Plan and not by those in the OWOW Plan. b. IRWM grant funds for the Santa Ana Funding Area will be distributed as follows: i. Thirty percent(30%)of the IRWM general implementation grant funds will be allocated to projects in the OC Plan selected pursuant to Section 2.a. In the event that a portion of an allocation is not expended in one funding round of a multi- round process, any unexpended funds shall be rolled over and added to the thirty percent allocation for the next round. 2 ii. Ten percent(10%) of the general implementation grant funds will be allocated for projects that benefit both the upper and the lower watersheds in the Santa Ana Funding Area and selected by the process in the OWOW Plan. In the event that selected projects that benefit both the upper and the lower watersheds in the Santa Ana Funding Area do not expend any portion of the 10%allocation, any unexpended funds shall be allocated as follows: thirty-four percent(34%)of any unexpended funds will be allocated to projects selected through the OC Plan as determined under Section 2.a. above, and sixty-six percent(66%)to projects selected through the OWOW for the upper watershed(area in San Bernardino County or Riverside County). iii. Sixty percent(60%) of the general implementation grant funds will be allocated to projects in the upper watershed selected by the process in the OWOW Plan. The Parties agree that projects so selected will not be challenged for funding under this agreement on the basis that the project will increase recycling or groundwater recharge in the upper watershed. In the event that a portion of an allocation is not expended in one funding round of a multi-round process, any unexpended funds shall be rolled over and added to the sixty percent allocation for the next round. iv. Disadvantaged Community(DAC)implementation funds, as defined by DWR, shall be treated separately and will be allocated by the process in the OWOW Plan to projects based on their direct and entire benefit to disadvantaged communities. DAC-supported projects from North and Central Orange County submitted to OWOW seeking DAC implementation funds will be eligible for this grant funding subject to the selection process in the OWOW Plan and will not count as part of the thirty percent (30%)OC Plan funding allocation as required under 2.b.i. c. As agreed upon by the OWOW Steering Committee and SAWPA Commission, ten percent(10%)of the total general implementation grant funding allocated to projects that benefit the Santa Ana Funding Area under 2.b.ii,projects in the upper watershed under 2.b.iii, and DAC projects under 2.b.iv will be allocated to small budget projects that requested grant funding less than or equal to$500,000. d. SAWPA will administer the OWOW program and project grant contracting with DWR and the funded projects' lead agencies. i. In selecting and submitting projects per Section 2.a above,the Orange County Parties will comply with a mutually agreed upon schedule and information requirements for submittals to be included in State-led processes related to IRWM funding such as grant applications,workshops and site visits. ii. Five percent(5%) of DWR Proposition 1 IRWM grant funds assigned to the Santa Ana Funding Area will be used for SAWPA's administration of IRWM funding. 3 iii. The Parties recognize that the overall number of projects funded under each round of Proposition 1 will need to be limited to ensure SAWPA grant administration is effective and efficient. The number of individual projects in the OC Plan which are funded under the allocation required in section 2.b.i is limited to four(4) for Round 1 of Proposition 1,unless SAWPA determines that additional projects can be supported. iv. SAWPA will be responsible for executing a funding agreement with the lead agency and or project proponent for each project selected for IRWM grant funds. v. Agreement of the Parties will be required for any request for DWR to modify or consolidate the funding rounds of Proposition 1. 3. WITHDRAWAL OF APPLICATION FOR SEPARATE REGION IN SANTA ANA FUNDING AREA: Upon execution of this Agreement by all Parties, the Orange County Parties agree to withdraw its application to DWR for recognition as a region in the Santa Ana Funding Area, and agree not to seek such approval so long as SAWPA is not in breach of any of its obligations under this Agreement, or until such time as the Agreement is terminated. 4. GOVERNANCE: The OWOW Steering Committee (SC)will continue to function as the advisory body to the SAWPA Commission as defined in the January 15, 2013 Santa Ana IRWMP OWOW Governance document, but shall, in its recommendations, adhere to the terms of Section 1 and 2 of this Agreement. 5. MODIFICATION: The terms of this Agreement may be amended only in writing executed by all of the Parties. This Agreement may not be modified in effect by changes in policies of any of the Parties without amending this Agreement per this section. The Parties shall review this Agreement after completion of Proposition 1 Round 1 project selection and grant funds allocation, and at least once every three years from the effective date, and the Parties shall revise if necessary. 6. AUTHORITY: The individuals executing this Agreement each represent and warrant that they have the legal power, right and actual authority to bind their respective entities to the terms and conditions hereof and thereof. 7. COUNTERPARTS: This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument. Four (4) duplicate originals of this Agreement shall be executed each of which shall be deemed to be an original. 4 8. GOVERNING LAW AND JURISDICTION: The existence, validity, construction, operation and effect of this Agreement and all of its terms and provisions shall be determined in accordance with the laws of the State of California. 9. TERM and TERMINATION: This Agreement shall have an initial term of ten years from the effective date. After the initial tern, the Agreement shall automatically renew for successive terms of ten years each, unless,prior to expiration of the current term, one Party provides notice to the other Parties of its intent not to renew the Agreement. Provision of notice in this manner shall terminate the Agreement as of the expiration of the current term. In addition to expiration of the Agreement, this Agreement may be terminated by any Party in the event of a material breach by any other Party, or at any time by mutual written agreement of all of the Parties. 10. THIRD PARTY BENEFICIARIES: OC Plan-project proponents whose projects are selected for Prop 1 funding pursuant to this Agreement and meet eligibility criteria for the funding opportunity are intended by the Parties to be third-party beneficiaries of this Agreement. The Parties therefore agree that the Orange County Parties and the OC Plan- project proponents whose proposals are selected for Prop 1 funding and meet eligibility criteria for the funding opportunity may enforce applicable provisions of this Agreement as if they were parties hereto in the event of breach by SAWPA. However,nothing herein shall require the Orange County Parties to initiate or take any action on behalf of OC Plan-project proponents. 11. NOTICE: Except as otherwise provided herein, all notices and other communications required or permitted hereunder shall be in writing, and shall be delivered in person,via e- mail, or sent by registered mail or certified mail,return receipt requested, and shall be deemed received upon actual receipt or 72 hours after deposit in the mail of the United States Postal Service,postage prepaid and addressed as follows: To SAWPA: Santa Ana Watershed Project Authority(SAWPA) Attention: General Manager 11615 Sterling Ave. Riverside, CA 92503 (951) 354-4220, (951)668-8030 (fax) To County of Orange: County of Orange Attention: Deputy Director,OC Environmental Resources 2301 N. Glassell Street Orange, CA 92865 5 (714) 955-0600, To OCSD Orange County Sanitation District Attention: General Manager 10844 Ellis Avenue Fountain Valley, CA 92708 (714)962-2411 To OCWD Orange County Water District Attention: General Manager 18700 Ward Street, Fountain Valley, CA 92708 (714) 378-3305, (714)378-3373 (fax) In witness whereof,the Parties hereto have executed this Agreement as of the date of the last signatory: 6 SANTA ANA WATERSHED PROJECT AUTHORITY A Joint Powers Authority created pursuant to Government Code Section 6500 et seq. Date: By Ronald W. Sullivan, Chair Date: By Kelly Berry, CMC Clerk of the Board Date: APPROVED AS TO FORM LEGAL COUNSEL By Lary McKenney 7 COUNTY OF ORANGE A political subdivision of the State of California Date: By Chair of the Board of Supervisors Date: By Robin Stieler Clerk of the Board of Supervisors of Orange County,California APPROVED AS TO FORM COUNTY COUNSEL By Deputy Date: S ORANGE COUNTY SANITATION DISTRICT A duly organized County Sanitation District Date: By David John Shawver Board Chairman Date: By Kelly A. Lore, MMC Clerk of the Board APPROVED AS TO FORM GENERAL COUNSEL By Bradley R. Hogin Date: 9 ORANGE COUNT ' WATE 'STRICT By: Name: Vicente Sarmiento Title: President Date: June 5, 2019 APP Y By: Om'.W CWmy vMar DI�uW Name: M chael R. arkus Title: General Manager Date: June 5, 2019 10 Memorandum of Understanding for Integrated Regional Water Management in North and Central Orange County Watershed Management Areaµµs�� This Memorandum of Understanding (MOU) is made and entered into this LItly of 2018, by and between the County of Orange (County), Orange County Water istrict (OCWD), and Orange County Sanitation District (OCSD). County, OCWD and OCSD are collectively referred to as "the Parties." WHEREAS, the municipalities and special districts in Orange County developed a countywide Water Quality Strategic Plan that recommends the formation of three Watershed Management Areas (WMAs) to better coordinate and implement collective water resource management strategies, and the eleven watersheds in Orange County were subsequently grouped into three Watershed Management Areas: North, Central, and South. WHEREAS, the North and Central Orange County WMAs comprise five hydrologic units: San Gabriel River-Coyote Creek, Anaheim Bay Huntington Harbour, Santa Ana River, Newport Bay, and Newport Coastal Streams, herein collectively referred to as "the Region." WHEREAS, Integrated Regional Water Management Plans (IRWMP Plan), defined in California Water Code section 10530, et seq., have been previously prepared and accepted for the North and Central Orange County WMAs, in 2011 and 2012, respectively. WHEREAS, Region stakeholders have collaborated to update and combine the two existing IRWM Plans into one IRWM Plan for the Region, The OC Plan for IRWM in North and Central Orange County ('The OC Plan"). WHEREAS, a "Regional Water Management Group" (RWMG) means a group in which three or more local agencies, at least two of which have statutory authority over water supply or water management, as well as those other persons who may be necessary for the development and implementation of a plan that meets the requirements in Water Code sections 10540 and 10541, participate by means of a joint powers agreement, memorandum of understanding, or other written agreement, as appropriate, that is approved by the governing bodies of those local agencies. WHEREAS, the Parties desire to participate in an RWMG to oversee and implement The OC Plan. WHEREAS, this MOU is not intended to create a financial obligation on the part of any of the RWMG members. WHEREAS, any financial obligations for implementation of projects in The OC Plan shall be determined through separate project implementation decisions and/or agreements. NOW, THEREFORE, in consideration of the foregoing, the Parties agree as follows: SECTION 1: Purpose The purpose of this Memorandum of Understanding (MOU) is to memorialize a mutual understanding in the Region in order to increase coordination, collaboration and communication in managing water resources, including implementation of The OC Plan. SECTION 2: Governance and Committees The Region shall be governed as described below. Regional Water Management Group (RWMG) The RWMG for the Region shall be comprised of the County, OCWD and OCSD. The RWMG shall be responsible for guiding the updating and execution of The OC Plan, establishing priorities for water resource needs, integrating water resource solutions across traditional bounds, and jointly advocating for policies and funding that assist these goals. The RWMG will provide administrative support for the Region and will develop plans to fund implementation of The OC Plan as necessary. Advisory Committee to the RWMG The Advisory Committee shall consist of representatives of the RWMG and representatives of the Newport Bay Watershed Executive Committee. The purpose of the Advisory Committee is to provide leadership and guidance to the RWMG on implementation of The OC Plan. Planning Group The Planning Group consisting of staff members of the Advisory Committee shall provide day-today support for the development and implementation of The OC Plan, and to manage stakeholder involvement. Stakeholder Group The Stakeholder Group, consisting of agencies, cities, interest groups, and any other stakeholders within the Region, shall provide leadership in developing and updating The OC Plan, propose projects to be included in the plan, and develop and approve the project prioritization process and project ranking. The Stakeholder Group may create Ad Hoc Working Groups and assign speck tasks to be completed by Ad Hoc Working Groups. Section 3: Goals The goals of the collaborative effort undertaken pursuant to this MOU are: To oversee the implementation and future updating of The OC Plan for the Region. To improve and maximize coordination and collaboration of individual public, private and non-profit agency plans, programs and projects within the region and with neighboring regions for mutual benefit and optimal gain for the Region. To help identify, develop and implement collaborative plans, programs and projects which will improve water resource management in the Region. To foster coordination, collaboration and communication between stakeholders, to achieve greater efficiencies, and to enhance regional competitiveness for local, state and federal grant funding. Section 4: Additional Terms and Provisions The OC Plan is a living document that will be updated periodically to reflect accomplishments as well as changing water resource management issues. Nothing in this MOU commits the RWMG members collectively or individually to a particular program or a project. Specific projects developed within the Region are separately proposed, reviewed and approved by the project sponsor. This MOU is not intended to create a financial obligation on the part of any of the RWMG members. The RWMG members will each consider adoption of The OC Plan to take the place of any prior IRWM Plans for the Region. Any other agency or organization in the Region may accept The OC Plan. Appendices to the plan, including The OC Plan Project List and Ranking and Prioritization of Goals and Strategies, may be updated and other routine updates may be added by the Stakeholder Group without requiring agencies and organization to formally re-adopt The OC Plan. Section 5: Project Implementation Agreements Implementation of any cost-shared programs shall be accomplished through project implementation agreements among the project proponent, participating parties, and the fiscal agent for local, state, or federal funding. The project proponent is the managing party responsible for management of the program or project that is subject of the project implementation agreement. Section 6: Amendment All Amendments to this MOU shall be in writing with the approval of all members of the RWMG. Section 7: Execution This MOU may be executed in counterparts and has the same force and effect as if all the signatures were obtained in one document. The term of the MOU shall commence upon the date when all RWMG parties have executed the MOU. Section 8: Withdrawal of Parties Any RWMG member may withdraw its participation in this MOU upon ninety (90) days prior written notice to all the other RWMG members, such withdrawal to be effective ninety (90) days after the notice is received or deemed received. Section 9: Liability It is mutually understood and agreed that, merely by the virtue of entering into this MOU, each RWMG member neither relinquishes any right nor assumes any liabilities for its own actions or the actions of other RWMG members. It is the intent of the RWMG that the rights and liabilities of each RWMG member shall remain the same, while this MOU is in force, as it was before this MOU was made, except as otherwise specifically provided in this MOU. IN WITNESS WHEREOF, the parties hereto have executed this MOU on the date opposite their respective signatures. COUNTY OF ORANGE, a political subdivision of the State of California. Dated: qII(Ilk By: Printed Name and Title: APPROVED AS TO FORM: County Coun�s�oel/��. J�� aiBy:� e4 " / 1 ,Dated: q 94 SIGNED AND CERTIFIED THAT A COPY OF THIS MOU HAS BEEN DELIVERED TO THE CHAIRMAN OF THE BOARD OBIN STIELER c Clerk of the Board of Supervisors of Orange County, California Date: gJ11Ile ORANGE COUNTY WATER DISTRICT, a special district of the State of California. Dated: 2c' (� By: G4-�' Denis Bilodea , r aid nt By: Michael R. Markus, General Manager APPROVED AS TO FORM District General Counsel f By: Dated: ORANGE COUNTY SANITATION DISTRICT, a special district of the State of California. Dated: By: Printed Name and Title: Gregory C. bourn, PLS Board Chairman APPROVED AS TO FORM: District General Counsel By: 9�9Dated: Br ley W. Hogin ATTEST: By: JLA-�A'� Dated: —? /qlj g Kell A. e, MMC Cler of Board Orange County Sanitation District BOARD OF DIRECTORS Meeting Date T%13d of Dir. -- 7/24/19 AGENDA REPORT Rern Number Ram Number v Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1, PROJECT NO. P1-129 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129; B. Award a Construction Contract to Abhe & Svoboda, Inc. for Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 1, Project No. P1-129, for a total amount not to exceed $6,863,092; and C. Approve a contingency of$686,309 (10%.). BACKGROUND Activated Sludge Plant No. 1, constructed in 1974, is one of the three biological treatment processes at the Orange County Sanitation District (Sanitation District) Plant No. 1. The Activated Sludge Plant No. 1 is a part of the secondary treatment process and allows the Sanitation District to meet its discharge permit conditions. The facility includes 230 feet of 30-inch return activated sludge piping required to maintain operation of Activated Sludge Plant No. 1 and supply the maximum available effluent to the Orange County Water District for recycling. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Comply with California Public Contract Code Section 20103.8, award construction contract to lowest responsive, responsible bidder PROBLEM The condition of this discharge pipe is compromised and it no longer provides reliable service. Repair of leaks on this pipe has a direct impact on the operation and capacity of the plant. As corrosion continues, the frequency of leakage is expected to become worse and leaks more difficult to repair. Page 1 of 3 PROPOSED SOLUTION Award a construction contract for replacement of the Return Activated Sludge discharge pipe header. The construction work will include full bypassing of return activated sludge flow using three engine-driven bypass pumps that will become Sanitation District property upon completion of the project. These pumps are scheduled to be used to provide standby pump capacity during Headworks Rehabilitation at Plant No. 1, Project No. P1-105. TIMING CONCERNS Delays completing this work will increase the frequency of pipe leaks and the resulting shutdowns, which will reduce the effluent available for the Groundwater Replenishment System. RAMIFICATIONS OF NOT TAKING ACTION Without this project, the pipe header will continue to corrode and leaks will become more frequent. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised Project No. P1-129 for bids on May 14, 2019 and five sealed bids were received on June 24, 2019. A summary of the bid opening follows: Engineer's Estimate $ 6,100,000 Bidder Amount of Bid Abhe & Svoboda, Inc. $6,863,092 Myers & Sons Construction, LLC $7,035,000 MMC, Inc. $7,448,000 PCL Construction, Inc. $7,915,097 Stanek Constructors, Inc. $8,787,600 The bids were evaluated in accordance with the Sanitation District's policies and procedures. A notice was sent to all bidders on July 10, 2019 informing them of the intent of Sanitation District staff to recommend award of the Construction Contract to Abhe & Svoboda, Inc. Other bidders had until close of business on July 17, 2019 to protest this award. Activated Sludge Plant No. 1 has an asset value of$548 million. A $127 million project to extensively rehabilitate the related portion of the facilities is scheduled to start Page 2 of 3 construction in 2032. By replacing the pipe header at this time, the need to start that project earlier can be avoided. CEQA This project is exempt from CEQA under the Class 1 categorical exemptions set forth in California Code of Regulations Section 15301. Section 15301 (Class 1) exempts from CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment, or topographical features, involving negligible or no expansion of use beyond that existing at the time of the lead agency's determination," including "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services." The project consists of minor alterations to existing public facilities. A Notice of Exemption for this project was filed and recorded with the County of Orange on May 25, 2017, after the Board of Directors approved the Professional Design Services Agreement. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This project has been budgeted (FY2019-20 Budget Update, Appendix A, Page A-10) and the budget will be sufficient if a separate action recommended by the Operations Committee on July 10, 2019 to increase the project budget is approved by the Board of Directors. Date of Approval Contract Amount Contingency 07/24/2019 $6,863,092 $686,309 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Construction Contract RL:dm:sa:gc Page 3 d 3 PART A CONTRACT AGREEMENT C-CA-022619 TABLE OF CONTENTS CONTRACT AGREEMENT SECTION - 1 GENERAL CONDITIONS..................................................................1 SECTION -2 MATERIALS AND LABOR.................................................................4 SECTION -3 PROJECT..........................................................................................4 SECTION -4 PLANS AND SPECIFICATONS ........................................................5 SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5 SECTION -6 TIME IS OF THE ESSENCE .............................................................5 SECTION -7 EXCUSABLE DELAYS......................................................................6 SECTION -8 EXTRA WORK...................................................................................6 SECTION -9 CHANGES IN PROJECT...................................................................7 SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7 SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7 SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS ..............................................................................................9 SECTION - 13 COMPLETION.................................................................................10 SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10 SECTION - 15 SURETY BONDS ............................................................................12 SECTION - 16 INSURANCE....................................................................................13 SECTION - 17 RISK AND INDEMNIFICATION.......................................................22 SECTION - 18 TERMINATION................................................................................22 SECTION - 19 WARRANTY....................................................................................23 SECTION -20 ASSIGNMENT.................................................................................24 SECTION -21 RESOLUTION OF DISPUTES ........................................................24 SECTION -22 SAFETY& HEALTH ........................................................................24 SECTION -23 NOTICES.........................................................................................24 C-CA-022619 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 THIS AGREEMENT is made and entered into, to be effective, this July 24, 2019, by and between Abhe & Svoboda, Inc., hereinafter referred to as "CONTRACTOR"and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 1 of 26 1. In the event of a conflict between one Contract Document and any of the other Contract Documents, the provisions in the document highest in precedence shall be controlling. The order of precedence of the Contract Documents is as follows: a. Supplemental Agreements—the last in time being the first in precedence b. Addenda issued prior to opening of Bids—the last in time being the first in precedence c. Contract Agreement d. Permits and other regulatory requirements e. Special Provisions f. General Conditions (GC) g. Notice Inviting Bids and Instruction to Bidders h. Geotechnical Baseline Report (GBR), if attached as a Contract Document I. Plans and Specifications—in these documents the order of precedence shall be: i. Specifications (Divisions 01-17) ii. Plans 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-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 2 of 26 shape and details of construction. Specifications shall govern as to material and workmanship. b. The Contract Documents calling for the higher quality material or workmanship shall prevail. Materials or Work described in words, which so applied, have a well known technical or trade meaning shall be deemed to refer to such recognized standards. In the event of any discrepancy between any Drawings and the figures thereon, the figures shall be taken as correct. C. Scale Drawings, full-size details, and Specifications are intended to be fully complementary and to agree. Should any discrepancy between Contract Documents come to the CONTRACTOR's attention, or should an error occur in the efforts of others, which affect the Work, the CONTRACTOR shall notify the ENGINEER, in writing, at once. In the event any doubts or questions arise with respect to the true meaning of the Contract Documents, reference shall be made to the ENGINEER whose written decision shall be final. If the CONTRACTOR proceeds with the Work affected without written instructions from the ENGINEER, the CONTRACTOR shall be fully responsible for any resultant damage or defect. d. Anything mentioned in the Specifications and not indicated in the Plans, or indicated in the Plans and not mentioned in the Specifications, shall be of like effect as if indicated and mentioned in both. In case of discrepancy in the Plans or Specifications, the matter shall be immediately submitted to OCSD's ENGINEER, without whose decision CONTRACTOR shall not adjust said discrepancy save only at CONTRACTOR's own risk and expense. The decision of the ENGINEER shall be final. C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 3 of 26 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION-3 PROJECT The Project is described as: PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 4 of 26 SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 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 four hundred twenty five (425) 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 fifteen (15) 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-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 5 of 26 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-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 6 of 26 SECTION-9 CHANGES IN PROJECT OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the Work within the general scope of the Contract Document, including but not limited to changes: 1. In the Specifications (including Drawings and designs); 2. In the time, method or manner of performance of the Work; 3. In OCSD-furnished facilities, equipment, materials, services or site; or 4. Directing acceleration in the performance of the Work. No change of period of performance or Contract Price, or any other change in the Contract Documents, shall be binding until the Contract is modified by a fully executed Change Order. All Change Orders shall be issued in accordance with the requirements set forth in the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER Initiated Changes'. SECTION-10 LIQUIDATED DAMAGES FOR DELAY Liquidated Damages shall be payable in the amounts and upon the occurrence of such events or failure to meet such requirements or deadlines as provided in the Special Provisions, "Liquidated Damages and Incentives." SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the faithful performance of this Contract, subject to any additions or deductions as provided in approved Change Orders, the sum of Six Million Eight Hundred Sixty Three Thousand Ninety-Two Dollars ($6,863,092) 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-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 7 of 26 not limited to Sections entitled "Mobilization Payment Requirements" and "Payment Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the commencement of the job a schedule which shows: 1. A minimum of one payment to be made to the CONTRACTOR for each successive four(4)week period as the Work progresses, and 2. The due dates for the CONTRACTOR to submit requests for payment to meet the payment schedule. After the initial Net Progress Payment, and provided the CONTRACTOR submits the request for payment prior to the end of the day required to meet the payment schedule, the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly payment date set forth in the schedule. Payments shall be made on demands drawn in the manner required by law, accompanied by a certificate signed by the ENGINEER, stating that the Work for which payment is demanded has been performed in accordance with the terms of the Contract Documents, and that the amount stated in the certificate is due under the terms of the Contract. Payment applications shall also be accompanied with all documentation, records, and releases as required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment for Work—General". The Total amount of Progress Payments shall not exceed the actual value of the Work completed as certified by OCSD's ENGINEER. The processing of payments shall not be considered as an acceptance of any part of the Work. C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 8 of 26 B. As used in this Section, the following defined terms shall have the following meanings: 1. "Net Progress Payment' means a sum equal to the Progress Payment less the Retention Amount and other qualified deductions (Liquidated Damages, stop payment notices, etc.). 2. "Progress Payment' means a sum equal to: a. the value of the actual Work completed since the commencement of the Work as determined by OCSD; b. plus the value of material suitably stored at the worksite, treatment plant or approved storage yards subject to or under the control of OCSD since the commencement of the Work as determined by OCSD; C. less all previous Net Progress Payments; d. less all amounts of previously qualified deductions; e. less all amounts previously retained as Retention Amounts. 3. "Retention Amount'for each Progress Payment means the percentage of each Progress Payment to be retained by OCSD to assure satisfactory completion of the Contract. The amount to be retained from each Progress Payment shall be determined as provided in the General Conditions—"Retained Funds; Substitution of Securities." SECTION-12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS Pursuant to Public Contract Code Section 22300 et seq., the CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 9 of 26 SECTION - 13 COMPLETION Final Completion and Final Acceptance shall occur at the time and in the manner specified in the General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A- Schedule of Prices. Upon receipt of all documentation, records, and releases as required by the Contract from the CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General Conditions. SECTION-14 CONTRACTOR'S EMPLOYEES COMPENSATION A. Davis-Bacon Act: CONTRACTOR will pay and will require all Subcontractors to pay all employees on said Project a salary or wage at least equal to the prevailing rate of per diem wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied with are incorporated herein as a part of this Contract and referred to by reference. B. General Prevailing Rate: OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime Work in the locality in which the Work is to be performed for each craft or type of Work needed to execute this Contract, and copies of the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 10 of 26 agrees that not less than said prevailing rates shall be paid to workers employed on this public works Contract as required by Labor Code Section 1774 of the State of California. Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal office and at each job site, which shall be made available to any interested party upon request. C. Forfeiture for Violation: CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or any Subcontractor under it) less than the prevailing rate of per diem wages as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the California Labor Code for the Work provided for in this Contract, all in accordance with Section 1775 of the Labor Code of the State of California. D. Apprentices: Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the employment of apprentices are applicable to this Contract and the CONTRACTOR shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00) or more. E. Workday: In the performance of this Contract, not more than eight(8) hours shall constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day from any person employed by him hereunder except as provided in paragraph (B) above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by CONTRACTOR or any Subcontractor for each calendar day during which any worker is C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 11 of 26 required or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in any one week in violation of said Article. CONTRACTOR shall keep an accurate record showing the name and actual hours worked each calendar day and each calendar week by each worker employed by CONTRACTOR in connection with the Project. F. Registration: Record of Wages: Inspection: CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. CONTRACTOR shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). SECTION-15 SURETYBONDS CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of the Contract amount, to guarantee the faithful performance of the Work, and the other in the amount of one hundred percent (100%)of the Contract amount to guarantee payment of all claims for labor and materials furnished. As changes to the Contract occur via approved Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance Commissioner to do business in California. The Performance Bond shall remain in full force and effect through the warranty period, as specified in Section 19 below. All C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 12 of 26 Bonds required to be submitted relating to this Contract must comply with California Code of Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury, or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to take and certify acknowledgments, and either one of the following conditions shall be satisfied: A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by- laws, or other instrument, duly certified by the proper authority and attested by the seal of the insurer entitling or authorizing the person who executed the Bond to do so for and on behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or B. A copy of a valid power of attorney is attached to the Bond. SECTION— 16 INSURANCE CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against claims for injuries to persons, or damages to property which may arise from or in connection with the performance of the Work hereunder, and the results of that Work by CONTRACTOR, its agents, representatives, employees, or Subcontractors, in amounts equal to the requirements set forth below. CONTRACTOR shall not commence Work under this Contract until all insurance required under this Section is obtained in a form acceptable to OCSD, nor shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all of the foregoing insurance coverages in force through the point at which the Work under this Contract is fully completed and accepted by OCSD pursuant to the provisions of the General Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall maintain all of the foregoing insurance coverages in full force and effect throughout the warranty period, commencing on the date of Final Acceptance. The requirement for carrying the foregoing insurance shall not derogate from the provisions for indemnification of OCSD by C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 13 of 26 CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for and maintain in full force and effect during the life of this Contract, inclusive of all changes to the Contract Documents made in accordance with the provisions of the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated Changes", the following insurance in amounts not less than the amounts specified. OCSD reserves the right to amend the required limits of insurance commensurate with the CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter OCSD premises/worksite without possessing the required insurance coverage. CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by agencies from whom permits shall be obtained for the Work and any other third parties from whom third party agreements are necessary to perform the Work (collectively, the "Third Parties"), The Special Provisions may list such requirements and sample forms and requirements from such Third Parties may be included in an attachment to the General Requirements. CONTRACTOR bears the responsibility to discover and comply with all requirements of Third Parties, including meeting specific insurance requirements, that are necessary for the complete performance of the Work. To the extent there is a conflict between the Third Parties' insurance requirements and those set forth by OCSD herein, the requirements) providing the more protective coverage for both OSCD and the Third Parties shall control and be purchased and maintained by CONTRACTOR. A. Limits of Insurance 1. General Liability: Seven Million Dollars ($7,000,000) per occurrence and a general aggregate limit of Seven Million Dollars ($7,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 14 of 26 a. Premises-Operations. b. Products and Completed Operations, with limits of at least Seven Million Dollars ($7,000,000) per occurrence and a general aggregate limit of Seven Million Dollars ($7,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional extension or continuation of time to said warranty period that may be required or authorized by said provisions. C. Broad Form Property Damage, expressly including damage arising out of explosion, collapse, or underground damage. d. Contractual Liability, expressly including the indemnity provisions assumed under this Contract. e. Separation of Insured Clause, providing that coverage applies separately to each insured, except with respect to the limits of liability. f. Independent CONTRACTOR's Liability. To the extent first dollar coverage, including defense of any claim, is not available to OCSD or any other additional insured because of any SIR, deductible, or any other form of self insurance, CONTRACTOR is obligated to assume responsibility of insurer until the deductible, SIR or other condition of insurer assuming its defense and/or indemnity has been satisfied. CONTRACTOR shall be responsible to pay any deductible or SIR. g. If a crane will be used, the General Liability insurance will be endorsed to add Riggers Liability coverage or its equivalent to cover the usage of the crane and exposures with regard to the crane operators, riggers and others involved in using the crane. C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 15 of 26 h. If divers will be used, the General Liability insurance will be endorsed to cover marine liability or its equivalent to cover the usage of divers. 2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Either(1)a combined single limit of 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 Two Million Dollars ($2,000,000) per accident for property damage. 3. Umbrella Excess Liability: The minimum limits of general liability and automobile liability insurance required, as set forth above, shall be provided for either in a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automobile liability. 4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a form acceptable by OCSD. 5. Worker's Compensation/Emolover's Liability: CONTRACTOR shall provide such Worker's Compensation Insurance as required by the Labor Code of the State of California, including employer's liability with a minimum limit of One Million Dollars ($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 16 of 26 liability may exist, the insurance required herein shall include coverage with regard to Jones Act claims. Where permitted by law, CONTRACTOR hereby waives all rights of recovery by subrogation because of deductible clauses, inadequacy of limits of any insurance policy, limitations or exclusions of coverage, or any other reason against OCSD, its or their officers, agents, or employees, and any other contractor or subcontractor performing Work or rendering services on behalf of OCSD in connection with the planning, development and construction of the Project. In all its insurance coverages related to the Work, CONTRACTOR shall include clauses providing that each insurer shall waive all of its rights of recovery by subrogation against OCSD, its or their officers, agents, or employees, or any other contractor or subcontractor performing Work or rendering services at the Project. Where permitted by law, CONTRACTOR shall require similar written express waivers and insurance clauses from each of its Subcontractors of every tier. A waiver of subrogation shall be effective as to any individual or entity, even if such individual or entity (a)would otherwise have a duty of indemnification, contractual or otherwise, (b)did not pay the insurance premium, directly or indirectly, and (c)whether or not such individual or entity has an insurable interest in the property damaged. 6. Pollution Liability Insurance: CONTRACTOR shall purchase and maintain insurance for pollution liability covering bodily injury, property damage (including loss of use of damaged property or property that has not been physically injured or destroyed), cleanup costs, and defense costs (including costs and expenses for investigation, defense, or settlement of claims). Coverage shall carry limits of at least Three Million Dollars ($3,000,000) and shall apply to sudden and non-sudden pollution C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 17 of 26 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- made basis, the CONTRACTOR warrants that any retroactive date applicable to coverage under the policy precedes the effective date of this Contract, and that continuous coverage will be maintained, or an extended discovery period will be exercised, for a period of two years beginning from the time that the Project under this Contract is completed. 7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums shown in this Section, OCSD requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR. B. Deductibles and Self-Insured Retentions Any deductibles or self-insured retentions must be declared to and approved by OCSD. At the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self- insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration, and defense expenses. C. Other Insurance Provisions 1. Each such policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to contain, the following provisions: C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 18 of 26 a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty(30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20)days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 19 of 26 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20)days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 20 of 26 F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured"on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 21 of 26 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement 5. Pollution Liability Endorsements There shall be a Separation of Insured Clause or endorsement, providing that coverage applies separately to each insured, except with respect to the limits of liability. There shall also be an endorsement or policy language containing a waiver of subrogation rights on the part of the insurer. OCSD, its directors, officers, agents, CONSULTANTS and employees and all public agencies from whom permits will be obtained as well as their directors, officers, agents, and employees shall be included as insureds under the policy. Any additional insured endorsement shall contain language at least as broad as the coverage language contained in ISO form CG 20 10 11 85 or alternatively in both CG 20 10 10 01 and CG 20 37 10 01 together. SECTION — 17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION-18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 22 of 26 manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION—19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final Completion' that the completed Work is free from all defects due to faulty materials, equipment or workmanship and that it shall promptly make whatever adjustments or corrections which may be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 23 of 26 SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. SECTION—22 SAFETY & HEALTH CONTRACTOR shall comply with all applicable safety and health requirements mandated by federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as well as these Contract Documents, including but not limited to the General Requirements, Section entitled "Safety" and Exhibit B OCSD Safety Standards. SECTION-23 NOTICES Any notice required or permitted under this Contract shall be sent by certified mail, return receipt requested, 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 C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 24 of 26 Copy to: Bradley R. Hogin, Esquire Woodruff, Spradlin &Smart 555 Anton Boulevard Suite 1200 Costa Mesa, California 92626 TO CONTRACTOR: Abhe & Svoboda, Inc. 880 Tavern Road Alpine, CA 91901 Copy to: David Grant Abhe & Svoboda, Inc. 880 Tavern Road Alpine, CA 91901 C-CA-022619 PROJECT NO.P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 25 of 26 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Abhe & Svoboda, Inc. 880 Tavern Road Alpine, CA 91901 By Printed Name Its CONTRACTOR's State License No. 506526 (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 C-CA-022619 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 26 of 26 EXHIBIT A SCHEDULE OF PRICES C-EXA-080414 TABLE OF CONTENTS EXHIBIT A SCHEDULE OF PRICES EXA-1 BASIS OF COMPENSATION.............................................................................1 EXA-2 PROGRESS PAYMENTS ..................................................................................1 EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1 EXA-4 STOP PAYMENT NOTICE.................................................................................3 EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3 EXA-6 PAYMENT OF TAXES .......................................................................................3 EXA-7 FINAL PAYMENT...............................................................................................4 EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...6 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. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 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.Pi-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 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. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 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 C-EXA-080414 PROJECT NO.Pi-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 4 of 8 changes, and shall submit the revised application for Final Payment. Upon acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-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. C-EXA-080414 PROJECT NO. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 5 of 8 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; 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.Pi-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 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. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 7 of 8 ATTACHMENT 2— SCHEDULE OF PRICES See next pages for Bid Submittal Forms—Abhe & Svoboda, Inc. BF-14 Schedule of Prices, Page 1-3 C-EXA-080414 PROJECT NO.Pi-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT NO. 1 CONFORMED Page 8 of 8 Bid Submitted By: ABHE & WBODA, INC. (Name of Firm) 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 Bitl. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total price for each item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work including Profit,overhead, etc., unless otherwise specified in the Contract Documents. All applicable sales taxes,state and/or federal,and any other special taxes, patent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. 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. P1-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT No. 1 Page 1 of 3 Bid Submitted By ABHE & SVOBODA, INC. IN.m.w Final EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS(Refer to Note 1 in the Instructions): No FltOe M. ..am uaftol M�x unX R%a Etleneee once 1. Mobilizabon:The amount for this Bid Item shall not ewaed 4%of the Total Amount d Bid and shall be in conformance with the Contact Documents far the lump sum price of... Lump Sum $c2 7y33.- All amounts included in this Bid Item greater than the allowable maximum = f payment of 4%of the Trial Amount of Bid shall be paid under the Bid Item 'Demobilization'. 2. Sheeang,Shoring and Bracing:Designing,famishing all labor,equipment and materials necessary,for reaching,maintaining and removal of sheeting, shoring and bracing and other equivalent methods as described in Division Allowance $ OI 01,Section 01155 and in wnfarmance wit the Contract Documents for the lump sum price of... SF-14 SCHEDULE OF PRICES C-BF-121917 PROJECT NO.Pt-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED SLUDGE PLANT No.1 Page2d3 3. Completion of Work:This Rem includes labor,materials,and equipment necessary for all portions of Work set form in the Combect Documents except for the Worit performed in Items 1 through 2 mdusiwe,and Item 4 Lump Sum inclusive,as described in Dial 01,Section 01155 and in conformance wgh the Contract Documents for a lump am price of 4. DemobilleaOon:The amount for this Bid Item shall not be less than 1%of the Total Amount of Bid and shall indutle but mA be limited to the acceptance of Wmk by DICED,completion of all hems on final punch list final cleanup and processing of final pr mass payment request,in Lump Sum = n conformance with the Cantracl Documents far a lump sum price of_. 5�9"00G• .-. All amounts greater than 4%which ware induce!in Bid Item 1 Mobilize on shell be pea urxier this Demobilization Bid been. SUBTOTAL BASE BID ITEMS NO.1 THROUGH NO. 4 (AWARD AMOUNT) 8p6/gova. - TOTAL AMOUNT OF BID (BASIS OF AWARD) S -0 N/ ov- BF-14 SCHEDULE OF PRICES C-BF-121517 PROTECT NO.Pt-129 RETURN ACTIVATED SLUDGE PIPING REPLACEMENT ATACTIVATED SLUDGE PLANT No.1 Pageacta BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. -- 07/24/19 AGENDA REPORT Item Item IB Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Kathy Millea, Director of Engineering SUBJECT: FUEL CELL AND BOILER FACILITIES DEMOLITION, PROJECT NO. FE16-06 GENERAL MANAGER'S RECOMMENDATION A. Receive and file Bid Tabulation and Recommendation for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06; B. Receive and file Clarification Request No.1 issued to Innovative Construction Solutions (ICS) on May 21, 2019; C. Receive and file ICS's response to Clarification Request No.1 received on May 22, 2019; D. Receive and file Clarification Request No. 2 issued to ICS on June 12, 2019; E. Receive and file ICS's response to Clarification Request No. 2 dated June 19, 2019; F. Reject low Bid received from ICS as non-responsive; G. Receive and file Orange County Sanitation District's Award Recommendation Notice issued to all Bidders on July 11, 2019; H. Award a Construction Contract to Mehta Mechanical Company, Inc. for Fuel Cell and Boiler Facilities Demolition, Project No. FE16-06, for a total amount not to exceed $474,000; and I. Approve a contingency amount of$47,400 (10%). BACKGROUND A third party, in cooperation with the Orange County Sanitation District (Sanitation District), constructed a fuel cell demonstration project under Fuel Cell Hydrogen Gas Generation Research, Project No. SP-134, in 2011. That demonstration project was completed, and the equipment was removed by the third party. Page 1 d 4 RELEVANT STANDARDS • Provide a safe and collegial workplace • Comply with California Public Contract Code Section 20103.8: Award Construction Contract to lowest responsive, responsible bidder PROBLEM The agreement with the third party required them to demolish the facility after completion of the project, with the exception of the concrete slabs and some miscellaneous utilities and conduits. The remaining features limit the use of the space and pose a tripping hazard. An unrelated obsolete boiler and its associated utilities are in the same area and also limit the use of the space. The boiler facilities include piping running through utility tunnels in the area. PROPOSED SOLUTION Award a construction contract for demolition of the remaining fuel cell features and the abandoned boilerand related utilities. TIMING CONCERNS The space occupied by the facilities to be demolished will be utilized by Digester Gas Facilities Rehabilitation, Project No. J-124. This space will be needed by early 2022. RAMIFICATIONS OF NOT TAKING ACTION Demolition of the facilities would need to be included in Digester Gas Facilities Rehabilitation, Project No. J-124, which would increase the cost of that project and delay construction. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The Sanitation District advertised Project No. FE16-06 for bids on March 18, 2019 and three sealed bids were received on April 30, 2019. A summary of the bid opening follows: Engineer's Estimate $400,000 Bidder Amount of Bid Innovative Construction Solutions $466,000 Mehta Mechanical Company, Inc. $474,000 Tharsos, Inc. $593,000 Page 2 d 4 The bids were evaluated in accordance with the Sanitation District's policies and procedures. After evaluation, Innovative Construction Solutions (ICS), the apparent low bidder, was found to be non-responsive: • ICS's bid included subcontractor costs that resulted in a self-performance percentage lower than the 30% minimum required in the Invitation for Bids. ICS responded to a clarification request regarding this bid irregularity, stating an error was made in their bid in that the amount for one of their listed subcontractors included all the work of another listed subcontractor. ICS did not, however, provide a formal notification regarding this error within two working days of the bid opening as required by the California Public Contract Code (PCC) Section 4107.5. Furthermore, ICS did not provide information as required by PCC Section 4107.5 to justify alleged error in their bid. • It was determined that ICS's bid is non-responsive since it does not meet the 30% self-performance requirements and ICS failed to meet the requirements of PCC Section 4107.5 regarding delisting of a subcontractor and did not provide timely notice of the error in their bid. An evaluation of the second apparent low bidder, Mehta Mechanical Company, Inc., determined the bid to be both responsive and responsible. Based on this, an Award Notice was sent to all the bidders on July 11, 2019 informing them of the intent of Sanitation District staff to recommend award of the construction contract to Mehta Mechanical Company, Inc. The protest period when other bidders can file their formal objections to this recommended Award expires on July 18, 2019. CEQA The project is exempt from CEQA under the Class 1 and Class 2 categorical exemption set forth in California Code of Regulations section 15301 and 15302. The Class 1 exemption exempts from CEQA 'Yhe 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." The CEQA Guidelines emphasize that "the key consideration is whether the project involves negligible or no expansion of an existing use." Examples of projects qualifying for the Class 1 exemption include, but are not limited to, "(b) Existing facilities of both investor and publicly-owned utilities used to provide electric power, natural gas, sewerage, or other public utility services," as well as "(I) Demolition and removal of individual small structures". The project qualifies for the Class 1 exemption because it involves demolition, removal, and disposal of abandoned facilities and equipment involving no expansion of use. Moreover, the project involves existing facilities of a public-owned utility used to provide electric power services and involves the "demolition and removal" of individual small structures (boiler and fuel cell facilities) and associated electrical equipment. The project therefore qualifies for the Class 1 exemption and is exempt from CEQA. Page 3 of 4 The Class 2 categorical exemption exempts from CEQA those projects involving the "replacement or reconstruction of existing structures and facilities where the new structure replaced will have substantially the same purpose and capacity as the structure replaced." This exemption includes, but is not limited to, projects involving the 'replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity". (California Code of Regulations § 15302(c).) The project qualifies for the Class 2 exemption because it involves the demolition, removal, and disposal of abandoned facilities and equipment involving no expansion of use. Moreover, the project involves solely the removal of existing utility systems, rather than the removal and replacement of utility systems as explicitly covered in the Class 2 exemption. If removal and replacement of such systems are categorically exempt, then so too is removal of such systems. A Notice of Exemption will be filed with the OC Clerk-Recorder for this project after the Board of Directors approves the construction award. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation DistricPs Purchasing Ordinance. This item has been budgeted under the Small Construction Projects Program (M-FE), Budget Update Fiscal Year 2019-20, Appendix A, Page A-8, and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 07/24/2019 $474,000 $47,400 (10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Construction Contract • Award Recommendation Notices • Clarification Request No.1 issued to ICS on May 21, 2019 • Response to Clarification Request No.1 received from ICS on May 22, 2019 • Clarification Request No. 2 issued to ICS on June 12, 2019 • Response to Clarification Request No. 2 received from ICS dated June 19, 2019 RL:dm:sa:gc Page 4 of 4 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.......................................................21 SECTION - 18 TERMINATION................................................................................21 SECTION - 19 WARRANTY....................................................................................21 SECTION -20 ASSIGNMENT.................................................................................22 SECTION -21 RESOLUTION OF DISPUTES ........................................................22 SECTION -22 SAFETY& HEALTH ........................................................................23 SECTION -23 NOTICES.........................................................................................23 C-CA-112818 CONTRACT AGREEMENT ORANGE COUNTY SANITATION DISTRICT PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION THIS AGREEMENT is made and entered into, to be effective, this July 24, 2019, by and between Mehta Mechanical Company, Inc. dba MMC, Inc., hereinafter referred to as "CONTRACTOR" and the Orange County Sanitation District, hereinafter referred to as "OCSD". WITNESSETH That for and in consideration of the promises and agreements hereinafter made and exchanged, OCSD and CONTRACTOR agree as follows: SECTION-1 GENERAL CONDITIONS CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the Contract Documents as hereinafter defined, the location of the job site, and the conditions under which the Work is to be performed have been thoroughly reviewed, and enters into this Contract based upon CONTRACTOR's investigation of all such matters and is in no way relying upon any opinions or representations of OCSD. It is agreed that this Contract represents the entire agreement. It is further agreed that the Contract Documents are each incorporated into this Contract by reference, with the same force and effect as if the same were set forth at length herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any and all of said Contract Documents insofar as they relate in any part or in any way, directly or indirectly, to the Work covered by this Contract. A. Contract Documents Order of Precedence "Contract Documents" refers to those documents identified in the definition of"Contract Documents" in the General Conditions—Definitions. CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 1 of 24 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 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 2 of 24 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 3 of 24 In all matters relating to the acceptability of material, machinery or plant equipment; classifications of material or Work; the proper execution, progress or sequence of the Work; and quantities interpretation of the Contract Documents, the decision of the ENGINEER shall be final and binding, and shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the Board of Directors. B. Definitions Capitalized terms used in this Contract are defined in the General Conditions, Definitions. Additional terms may be defined in the Special Provisions. SECTION—2 MATERIALS AND LABOR CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at CONTRACTOR'S own expense, all labor and materials necessary, except such as are mentioned in the Specifications to be furnished by OCSD, to construct and complete the Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or materials when due, OCSD may settle such claims by making demand upon the Surety to this Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may settle them directly and deduct the amount of payments from the Contract Price and any amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to deduct all of its costs and expenses incurred relating thereto, including but not limited to administrative and legal fees. SECTION-3 PROJECT The Project is described as: PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 4 of 24 SECTION -4 PLANS AND SPECIFICATONS The Work to be done is shown in a set of Plans and Specifications entitled: PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Said Plans and Specifications and any revision, amendments and addenda thereto are attached hereto and incorporated herein as part of this Contract and referred to by reference. SECTION—5 TIME OF COMMENCEMENT AND COMPLETION CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently prosecute the Work to completion within one hundred eighty (180)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 fifteen (15)calendar days determined by OCSD likely to be inclement weather when CONTRACTOR will be unable to work. SECTION—6 TIME IS OF THE ESSENCE Time is of the essence of this Contract. As required by the Contract Documents, CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples, and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in conformance with an approved construction progress schedule. CONTRACTOR shall coordinate the Work covered by this Contract with that of all other contractors, subcontractors and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with Section 5 herein. OCSD shall have the right to assert complete control of the premises on which the Work is to be performed and shall have the right to decide the time or order in which CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 5 of 24 the various portions of the Work shall be installed or the priority of the work of subcontractors, and, in general, all matters representing the timely and orderly conduct of the Work of CONTRACTOR on the premises. SECTION—7 EXCUSABLE DELAYS CONTRACTOR shall only be excused for any delay in the prosecution or completion of the Project as specifically provided in General Conditions, "Extensions for Delay", and the General Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work". Extensions of time and extra compensation arising from such excusable delays will be determined in accordance with the General Conditions, "Extension of Time for Delay" and "Contract Price Adjustments and Payments", and extensions of time and extra compensation as a result of incurring undisclosed utilities will be determined in accordance with General Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work". OCSD's decision will be conclusive on all parties to this Contract. SECTION—8 EXTRA WORK The Contract Price as set forth in Section 11, includes compensation for all Work performed by CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated representative of OCSD specifying the exact nature of the Extra Work and the amount of extra compensation to be paid all as more particularly set forth in Section 9 hereof and the General Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated Changes", and "Contract Price Adjustments and Payments". In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD shall extend the time fixed in Section 5 for completion of the Project by the number of days, if any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by OCSD's ENGINEER. The decision of the ENGINEER shall be final. C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 6 of 24 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 Four Hundred Seventy-Four Thousand Dollars ($474,000) 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 7 of 24 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 8 of 24 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. CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 9 of 24 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 10 of 24 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. CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 11 of 24 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 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 12 of 24 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 13 of 24 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: Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Three Million Dollars ($3,000,000)for bodily injury, personal injury and property damage. Coverage shall include each of the following: a. Premises-Operations. b. Products and Completed Operations, with limits of at least Three Million Dollars ($3,000,000) per occurrence and a general aggregate limit of Three Million Dollars ($3,000,000)which shall be in effect at all times during the warranty period set forth in the Warranty section herein, and as set forth in the General Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 14 of 24 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. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 15 of 24 Either(1)a combined single limit of Three Million Dollars ($3,000,000)and a general aggregate limit of Three Million Dollars ($3,000,000)for bodily injury, personal injury and property damage; Or alternatively, (2) Three Million Dollars ($3,000,000) per person for bodily injury and Three Million Dollars ($3,000,000) 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 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 16 of 24 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. 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: CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 17 of 24 a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all public agencies from whom permits will be obtained, and their Directors, officers, agents, and employees are hereby declared to be additional insureds under the terms of this policy, but only with respect to the operations of CONTRACTOR at or from any of the sites of OCSD in connection with this Contract, or acts and omissions of the additional insured in connection with its general supervision or inspection of said operations related to this Contract. b. Insurance afforded by the additional insured endorsement shall apply as primary insurance, and other insurance maintained by OCSD shall be excess only and not contributing with insurance provided under this policy. 2. Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty(30) days prior written notice by certified mail, return receipt requested, and that coverage shall not be cancelled for non-payment of premium except after ten (10)days prior written notice by certified mail, return receipt requested. Should there be changes in coverage or an increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript endorsement from its insurer giving 30 days prior notice of such an event to OCSD, or to have its insurance broker/agent send to OCSD a certified letter describing the changes in coverage and any increase in deductible or SIR amounts. The certified letter must be sent Attention: Risk Management and shall be received not less than twenty (20)days prior to the effective date of the change(s). The letter must be signed by a Director or Officer of the broker/agent and must be on company letterhead, and may be sent via e-mail in pdf format. C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 18 of 24 3. Coverage shall not extend to any indemnity coverage for the active negligence of any additional insured in any case where an agreement to indemnify the additional insured would be invalid under California Civil Code Section 2782(b). 4. If required by a public agency from whom permit(s)will be obtained, each policy of General Liability Insurance and Automobile Liability Insurance shall be endorsed to specify by name the public agency and its legislative members, officers, agents, CONSULTANTS, and employees, to be additional insureds. D. Acceptability of Insurers Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept State Compensation Insurance Fund for the required policy of worker's compensation insurance, subject to OCSD's option, at any time during the term of this Contract, to require a change in insurer upon twenty (20)days written notice. Further, OCSD will require CONTRACTOR to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONTRACTOR by OCSD or its agent. E. Verification of Coverage CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements affecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by OCSD before Work commences. OCSD reserves the right to require complete, certified copies of all required insurance policies, including endorsements, affecting the coverage required by these Specifications at any time. CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 19 of 24 F. Subcontractors CONTRACTOR shall be responsible to establish insurance requirements for any Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations and work. OCSD and any public agency issuing permits for the Project must be named as "Additional Insured"on any General Liability or Automobile Liability policy obtained by a Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced required documents. G. Required Forms and Endorsements 1. Required ACORD Form a. Certificate of Liability Form 25 2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are shown, they are listed in order of preference) In the event any of the following forms are cancelled by Insurance Services Office, Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied. a. Commercial General Liability Form CG-0001 10 01 b. Additional Insured Including Form CG-2010 10 01 and Products-Completed Operations Form CG-2037 10 01 C. Waiver of Transfer of Rights of Form CG-2404 11 85; or Recovery Against Others to Us/ Form CG-2404 10 93 Waiver of Subrogation 3. Required State Compensation Insurance Fund Endorsements a. Waiver of Subrogation Endorsement No. 2570 b. Cancellation Notice Endorsement No. 2065 C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 20 of 24 4. Additional Required Endorsements a. Notice of Policy Termination Manuscript Endorsement SECTION—17 RISK AND INDEMNIFICATION All Work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save, indemnify, defend, and keep OCSD and others harmless as more specifically set forth in General Conditions, "General Indemnification". SECTION-18 TERMINATION This Contract may be terminated in whole or in part in writing by OCSD in the event of substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may be terminated by OCSD for its convenience provided that such termination is effectuated in a manner and upon such conditions set forth more particularly in General Conditions, "Termination for Default" and/or"Termination for Convenience", provided that no termination may be effected unless proper notice is provided to CONTRACTOR at the time and in the manner provided in said General Conditions. If termination for default or convenience is effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be made at the time and in the manner provided in the General Conditions, "Termination for Default" and "Termination for Convenience". SECTION — 19 WARRANTY The CONTRACTOR agrees to perform all Work under this Contract in accordance with the Contract Documents, including OCSD's designs, Drawings and Specifications. The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final 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 CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 21 of 24 be necessary to cure any defects, including repairs of any damage to other parts of the system resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs, corrections or other work made necessary by such defects, OCSD may do so and charge the CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any corrected deficiency until the later of(1)the remainder of the original one-year warranty period; or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and the Payment Bond shall remain in full force and effect through the guarantee period. The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's other express or implied assurances under this Contract, including but not limited to specific manufacturer or other extended warranties specified in the Plans and Specifications, or state law and in no way diminish any other rights that OCSD may have against the CONTRACTOR for faulty materials, equipment or Work. SECTION-20 ASSIGNMENT No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be received hereunder, will be recognized by OCSD unless such assignment has had prior written approval and consent of OCSD and the Surety. SECTION—21 RESOLUTION OF DISPUTES OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims provisions as set forth in the General Conditions and as otherwise required by law. C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 22 of 24 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: Mehta Mechanical Company, Inc. dba MMC, Inc. 5901 Fresca Drive La Palma, CA 90623 Copy to: Jagat S. Mehta, President Mehta Mechanical Company, Inc. dba MMC, Inc. 5901 Fresca Drive La Palma, CA 90623 CONFORMED C-CA-112818 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 23 of 24 IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the date first hereinabove written. CONTRACTOR: Mehta Mechanical Company, Inc. dba MMC, Inc. 5901 Fresca Drive La Palma, CA 90623 By Printed Name Its CONTRACTOR's State License No. 573635 (Expiration Date—7/31/2020) OCSD: Orange County Sanitation District By David John Shawver Board Chairman By Kelly A. Lore Clerk of the Board By C-CA-112818 CONFORMED PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 24 of 24 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. CONFORMED C-EXA-080414 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 1 of 8 B. Substitution of Securities: CONTRACTOR may, at its sole expense, substitute securities as provided in General Conditions—"Retained Funds; Substitution of Securities." Payment of Escrow Agent: In lieu of substitution of securities as provided above, the CONTRACTOR may request and OCSD shall make payment of retention earned directly to the escrow agent at the expense of the CONTRACTOR. At the expense of the CONTRACTOR, the CONTRACTOR may direct the investment of the payments into securities consistent with Government Code §16430 and the CONTRACTOR shall receive the interest earned on the investments upon the same terms provided for in this article for securities deposited by the CONTRACTOR. Upon satisfactory completion of the Contract, the CONTRACTOR shall receive from the escrow agent all securities, interest and payments received by the escrow agent from OCSD, pursuant to the terms of this article. The CONTRACTOR shall pay to each Subcontractor, not later than twenty (20)calendar days after receipt of the payment, the respective amount of interest earned, net of costs attributed to retention withheld from each Subcontractor, on the amount of retention withheld to ensure the performance of the Subcontractor. The escrow agreement used by the escrow agent pursuant to this article shall be substantially similar to the form set forth in §22300 of the California Public Contract Code. C. Release of Retention: Upon Final Acceptance of the Work, the CONTRACTOR shall submit an invoice for release of retention in accordance with the terms of the Contract. D. Additional Deductibles: In addition to the retentions described above, OCSD may deduct from each progress payment any or all of the following: 1. Liquidated Damages that have occurred as of the date of the application for progress payment; 2. Deductions from previous progress payments already paid, due to OCSD's discovery of deficiencies in the Work or non-compliance with the Specifications or any other requirement of the Contract; 3. Sums expended by OCSD in performing any of the CONTRACTOR'S obligations under the Contract that the CONTRACTOR has failed to perform, and; 4. Other sums that OCSD is entitled to recover from the CONTRACTOR under the terms of the Contract, including without limitation insurance deductibles and assessments. C-EXA-080414 CONFORMED PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION 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. CONFORMED C-EXA-080414 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 3 of 8 EXA-7 FINAL PAYMENT After Final Acceptance of the Work, as more particularly set forth in the General Conditions, "Final Acceptance and Final Completion", and after Resolution of the Board authorizing final payment and satisfaction of the requirements as more particularly set forth in General Conditions—"Final Payment", a final payment will be made as follows: 1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an application for Final Payment to OCSD, including: a. The proposed total amount due the CONTRACTOR, segregated by items on the payment schedule, amendments, Change Orders, and other bases for payment; b. Deductions for prior progress payments; c. Amounts retained; d. A conditional waiver and release on final payment for each Subcontractor(per Civil Code Section 8136); e. A conditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8136); f. List of Claims the CONTRACTOR intends to file at that time or a statement that no Claims will be filed, g. List of pending unsettled claims, stating claimed amounts, and copies of any and all complaints and/or demands for arbitration received by the CONTRACTOR; and h. For each and every claim that resulted in litigation or arbitration which the CONTRACTOR has settled, a conformed copy of the Request for Dismissal with prejudice or other satisfactory evidence the arbitration is resolved. 2. The application for Final Payment shall include complete and legally effective releases or waivers of liens and stop payment notices satisfactory to OCSD, arising out of or filed in connection with the Work. Prior progress payments shall be subject to correction in OCSD's review of the application for Final Payment. Claims filed with the application for Final Payment must be otherwise timely under the Contract and applicable law. 3. Within a reasonable time, OCSD will review the CONTRACTOR'S application for Final Payment. Any recommended changes or corrections will then be forwarded to the CONTRACTOR. Within ten (10) calendar days after receipt of recommended changes from OCSD, the CONTRACTOR will make the changes, or list Claims that will be filed as a result of the changes, and shall submit the revised application for Final Payment. Upon C-EXA-080414 CONFORMED PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 4 of 8 acceptance by OCSD, the revised application for Final Payment will become the approved application for Final Payment. 4. If no Claims have been filed with the initial or any revised application for Final Payment, and no Claims remain unsettled within thirty-five (35) calendar days after Final Acceptance of the Work by OCSD, and agreements are reached on all issues regarding the application for Final Payment, OCSD, in exchange for an executed release, satisfactory in form and substance to OCSD, will pay the entire sum found due on the approved application for Final Payment, including the amount, if any, allowed on settled Claims. 5. The release from the CONTRACTOR shall be from any and all Claims arising under the Contract, except for Claims that with the concurrence of OCSD are specifically reserved, and shall release and waive all unreserved Claims against OCSD and its officers, directors, employees and authorized representatives. The release shall be accompanied by a certification by the CONTRACTOR that: a. It has resolved all Subcontractors, Suppliers and other Claims that are related to the settled Claims included in the Final Payment; b. It has no reason to believe that any party has a valid claim against the CONTRACTOR or OCSD which has not been communicated in writing by the CONTRACTOR to OCSD as of the date of the certificate; c. All warranties are in full force and effect, and; d. The releases and the warranties shall survive Final Payment. 6. If any claims remain open, OCSD may make Final Payment subject to resolution of those claims. OCSD may withhold from the Final Payment an amount not to exceed one hundred fifty percent (150%) of the sum of the amounts of the open claims, and one hundred twenty-five percent (125%) of the amounts of open stop payment notices referred to in article entitled stop payment notices herein. 7. The CONTRACTOR shall provide an unconditional waiver and release on final payment from each Subcontractor and Supplier providing Work under the Contract(per Civil Code Section 8138) and an unconditional waiver and release on final payment on behalf of the CONTRACTOR (per Civil Code Section 8138)within thirty (30)days of receipt of Final Payment. EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT Notwithstanding OCSD's acceptance of the application for Final Payment and irrespective of whether it is before or after Final Payment has been made, OCSD shall not be precluded from subsequently showing that: 1. The true and correct amount payable for the Work is different from that previously accepted; CONFORMED C-EXA-080414 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 5 of 8 2. The previously-accepted Work did not in fact conform to the Contract requirements, or; 3. A previous payment or portion thereof for Work was improperly made. OCSD also shall not be stopped from demanding and recovering damages from the CONTRACTOR, as appropriate, under any of the foregoing circumstances as permitted under the Contract or applicable law. C-EXA-080414 CONFORMED PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION 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 CONFORMED C-EXA-080414 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 7 of 8 ATTACHMENT 2—SCHEDULE OF PRICES See next pages from the Bid Submittal Forms (Mehta Mechanical Company, Inc. dba MMC, Inc.) BF-14 Schedule of Prices, Pages 1-2 C-EXA-080414 CONFORMED PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 8 of 8 Bid Submitted By: ri C (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 rime 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 Rem, leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid. Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary, provides that the total price for each item shall be based on the Unit Price listed for each item multiplied by the quantity; and the correct Total Price for each item shall be totaled to determine the Total Amount of Bid. All applicable costs including overhead and profit shall be reflected in the respective unit costs and the TOTAL AMOUNT OF BID. The Bid Price shall include all costs to complete the Work, including profit,overhead, etc., unless otherwise specified in the Contract Documents. All applicable sales taxes, state and/or federal,and any other special taxes. Patent rights or royalties shall be included in the prices quoted in this Bid. B. Basis of Award AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST RESPONSIVE AND RESPONSIBLE BID. 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 r BF-121817 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Pegg 1 of 2 Bid submitted By: M M C �hc ' (W me of Fine) EXHIBIT A SCHEDULE OF PRICES BASE BID ITEMS(Refer to Note 1 in the Instructions): It.. Dnellfte Wtll el AOprex poll Vtica Extended Fdce No. P Measurement Wy 1. Mobilization:The amount for(his Bid Item shall not exceed 5%of the Total Amount of Bid and shall be In conformance with the Contract Documents for the lump sum price of... All amounts Induced in this Bid Item greater Than the allowable maximum Lump Sum 1 v S payment of 5%of the Total Amount of Bid.shall be paid under Bid Item No. 2 al the end of the Project. Z Of O(>Q 2. Completion of Fuel Call and Boller Facilities Demolition:Fumish all labor.maledals and equipment necessary for the completion of the Contract Work.except for the Work specified for Bid Item f In conformance Lump Sum 1 S with the Contract Documents for the lump sum price of... q 15 ffff000 TOTAL AMOUNT OF BID (BASIS OF AWARD) 5 4741000 BF-a SCHEDULE OF PRICES C-81FA21617 PROJECT NO.FEI& FUEL CELL AND BOILER FACILITIES DEMOLITION Page 2 012 Serving Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Park July 11, 2019 Via Email: Jay@aboutmmc.com & Overnight Mail Cypress Fountain valley Jagat S. Mehta Mehta Mechanical Company, Inc. DBD MMC, Inc. Fullerton 5901 Fresca Drive La Palma, California 90623 Garden Grove Huntington Beach SUBJECT: Award Recommendation Notice Irvine Re: FE16-06, Fuel Cell and Boiler Facilities Demolition La Habra The Orange County Sanitation District (OCSD) completed its evaluation of the Bids La Palma submitted in response to the Invitation for Bids for the above-referenced Project. Los Alamitos The lowest responsive, responsible Bidder is Mehta Mechanical Company, Inc. DBA MMC, Inc. The Evaluation Team is recommending Mehta Mechanical Company, Newport Beach Inc. DBA MMC, Inc. for Contract award. Orange The award recommendation will be presented to OCSD's Board of Directors for Placentia Contract award. Santa Ana The Board of Directors Meeting is scheduled for: Seal Beach Date: July 24, 2019 Time: 6:00 PM Stanton Location: Orange County Sanitation District Board Room, Administration Building Tustin 10844 Ellis Avenue Villa Park Fountain Valley, CA 92708 County of orange The Final Agenda Report will be posted not less than 72 hours prior to the Board of Directors Meeting. Should you wish to determine if the item has been placed on the Costa Mesa agenda, please contact the Clerk of the Board at (714) 593-7433. Sanitary District MidwayCity SanitaryryDistrict Irvine Ranch Brandon Garcia Water District Contract Administrator Yorba Linda Water District BG:ms cc: K. Millea, J. Mohr, D. Cutler, R. Leon, M. Perry, K. Lore, N. Dubrovski, y-= File Copy 7.4.4d I Revision 110218 Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling, Se Orange Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.omd.com Brea Buena Park July 11, 2019 Via Email: tartis(cDicsinc.ty Gvp & Overnight Mail Fountain Valt wuert John R White Innovative Construction Solutions Garden Grave 575 Anton Boulevard Huntington Beach Suite 850 Costa Mesa CA, 92626 Irvine SUBJECT: Award Recommendation Notice La Habra Re: Project FE16-06, Fuel Cell and Boiler Facilities Demolition La Pal Los All OCSD has completed the evaluation of the Bid Innovative Construction Solutions Newport Bea- (ICS) submitted for the referenced Project and has concluded that the Bid is non-responsive. Orange Section SP-1 in the Special Provisions section of the Project's Invitation for Bids Placentia requires the Contractor to complete thirty percent (30%) of the total Contract Price. Failure to meet this requirement would deem the Bid non-responsive. The Santa Ana Bid ICS submitted did not meet the 30% Contractor performance requirement. Seal Beach OCSD informed ICS of this finding in a letter dated May 21, 2019. In response to this letter, ICS informed OCSD that ICS' Bid erroneously listed D2 Industrial for Stanton the lead and asbestos Work as that Work would be performed by BHL Industries. Tustin Public Contract Code (PCC) section 4107(a) authorizes OCSD to allow a Villa Park contractor to substitute a listed subcontractor if the contractor demonstrates to OCSD that the name of the subcontractor was listed as the result of an inadvertent County of orange clerical error by following the provisions specified in PCC section 4107.5. In order to assert a claim of inadvertent clerical error in the listing of a subcontractor, PCC Costa Mesa section 4107.5 requires the contractor to give written notice to OCSD within two (2) Sanitary District working days after the time of the bid opening. PCC section 4107.5 also requires Midway City the contractor to submit copies of that notice to both the subcontractor claimed to Sanitary District have been listed in error and the intended subcontractor who had bid to the contractor prior to the bid opening. Irvine Ranch Water District The Project's bids were received and opened on April 30, 2019. ICS did not yorba Lin meet the timeline requirement for the notice of inadvertent clerical error to be water Dist submitted to OCSD and supporting documentation to substantiate Subcontractor listing error. Since ICS did not comply with the requirements of PCC section 4107.5, its bid must be considered non-responsive. Our Mission: To protect public health and the environment by providing effective wastewater collection, treatment, and recycling. 0J�11' Ep r� � N ,f`jVX !XE ENV\ 0 John R White Page 2 July 11, 2019 OCSD will recommend to its Board of Directors to award the Contract to the second-lowest responsive, responsible Bidder, Mehta Mechanical Company, Inc. dba MCC, Inc. The recommendation will be presented at the Board of Directors Meeting scheduled as follows: Date: July 24, 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. If you wish to determine if the item has been placed on the agenda, please contact the Clerk of the Board at (714) 593-7433. Brat is Contracts Administrator BG:yp cc: K. Millea, J. Mohr, D. Cutler, R. Leon, M. Perry, K. Lore, N. Dubrovski, File Copy 7.4.4d Serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.msd.com Brea Buena Park July 11, 2019 Via Email: MLopez@Tharsosinc.com Cypress & Overnight Mail Fountain Valley Michael Lopez Tharsos, Inc. Fullerton 7839 University Ave, Suite 210 Garden Grove La Mesa, California 91942 Huntington Beach SUBJECT: Award Recommendation Notice Irvine Re: FE16-06, Fuel Cell and Boiler Facilities Demolition La Habra La Palma The Orange County Sanitation District (OCSD) completed its evaluation of the Bids submitted in response to the Invitation for Bids for the above-referenced Project. Los Alamitos The lowest responsive, responsible Bidder is Mehta Mechanical Company, Inc. DBA MMC, Inc. The Evaluation Team is recommending Mehta Mechanical Company, Newport Beach Inc. DBA MMC, Inc. for Contract award. Grange The award recommendation will be presented to OCSD's Board of Directors for Placentia Contract award. Santa Ana The Board of Directors Meeting is scheduled for: Seal Beach Date: July 24, 2019 Stanton Time: 6:00 PM Location: Orange County Sanitation District Tustin Board Room, Administration Building 10844 Ellis Avenue Villa Park Fountain Valley, CA 92708 County or orange The Final Agenda Report will be posted not less than 72 hours prior to the Board of Costa Mesa Directors Meeting. Should you wish to determine if the item has been placed on the Sanitary District agenda, please contact the Clerk of the Board at (714) 593-7433, Miry Di City Sanitary District Irvine Ranch Water District Brandon Garcia Contract Administrator Yorba Linda Water District BG:ms cc: K. Millea, J. Mohr, D. Cutler, R. Leon, M. Perry, K. Lore, N. Dubrovski, File Copy 7.4.4d Our Mission: To protect public health and the environment by Revision 110218 providing affective wastewater collection, treatment, and recycling. serving: Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 927G8 714.962.2411 • www.ocsd.com Brea Buena Park May 21, 2019 Via Email: tartis@icsinc.ty Cyprus & Overnight Mail Fountain Valley John R. White Innovative Construction Solutions Fullerton 575 Anton Boulevard, Suite 850 Costa Mesa CA, 92626 Garden Grove Huntington Beach SUBJECT: Clarification Request No. 1 Re: Project FE16-06, Fuel Cell and Boiler Facilities Demolition Irvine La Habra The evaluation team is in the process of evaluating your Bid submitted in response La Palma to the above reference Project. In order to fully evaluate aspects of your Bid, the team requests the following clarifcation(s): Los Alamitos 1. PART 5 BID SUBMITTAL FORMS, BF-2 LIST OF SUBCONTRACTORS: Newport Beach A. The "Location of Business" of your Bid's 2ntl listed Subcontractor is not the Orange same as the listed addresses in the Department of Industrial Relations (DIR) Placentia License verification website or in the License verification check on the Californian State License Board website. Santa Ana The requirements in BF-2. state, in part "...the name and location of the Seal Beach principal place of business of each Subcontractor who will perform work or labor or render service to the Contractor in or about the construction of the Work of Stanton improvements in an amount in excess of one-half of one percent (0.5%) of the Tustin Contractor's total Bid, the Subcontractor license number, and the portion of the Work which will be done by each Subcontractor is set forth below. Villa Park Please clarify the"Location of Business" for the 2ntl listed Subcontractor. County of Orange Costa Mesa B. The total Subcontract Amount of all listed Subcontractors in your Bid is three Sanitary District hundred fifty-nine thousand seven hundred and forty-seven dollars ($359,747). The total Bid amount listed on the Schedule of Prices is four Midway city hundred sixty-six thousand dollars ($466,000). This demonstrates that your Sanitary District firm is self-performing a total of one hundred six thousand two hundred and Irvine Ranch fifty-three dollars ($106,253) which is less than the requirement of 30% as Water District stated in the IFB, Part C, Special Provisions, SPA PERCENTAGE OF WORK PREFORMED BY THE CONTRACTOR. Yorba Linda Water District Please provide clarification regarding this error. Please note that failure to meet the self-performance requirement of 30% shall deem your Bid non-responsive. - 2. PART 5 BID SUBMITTAL FORMS, BF-4 PERFORMANCE HISTORY AND - FINANCIAL RESOURCES: A. Completion dates were not provided for the projects listed on BF-4. Our Mission: To protect public health and the environment by Revision 110714 providing affective wastewater collection, treatment, and recycling. 1V SANI)gAAaN U j OS 9 � HE `" John R. White Page 2 of 4 May 21, 2019 The requirements in BF-4 A., states in part"Bidder shall list three (3) projects completed within the last ten (10) years with a public owner or private owner that are of similar nature, scope, complexity and cost to this Invitation for Bids." Please clarify completion dates for all the projects listed on B-4. B. Your firm's role for the projects listed on page 2 of 8 was left unselected. Please clarify your firm's role for each of the listed projects on this page. C. Attachment A on page 7 of 8 was left blank. The requirements on this page, states in part"Bidder is to include all additional information or explanation, when required, for Question Nos. B (1) through B (6)." An additional requirement on the form states"Check This Box If Attachment A is Not Applicable." Please verify that Attachment"A" is not applicable, since no additional information was provided. D. Attachment B on page 8 was left blank. The requirements on this page, states in part "Bidder is to include all additional information or explanation, when required, for Question Nos. D (1) through D (3)." An additional requirement on the form states "Check This Box If Attachment A is Not Applicable. Please verify that Attachment B is not applicable since not additional information was provided 3. PART 5 BID SUBMITTAL FORMS, BF-6 SAFETY DECLARATION OF CONTRACTOR A. Your company did not check "Yes" in either A or B on question 2, regarding Accident Frequency: Your company has since submitted your OSHA Form 300/300A Logs and Summaries. The evaluation team has reviewed the documents and has determined this deficiency to be corrected. No further action is required. Revision 110714 4oV"1V SANIIq I°N O 9 i q° '" John R. White Page 3 of 4 May 21, 2019 B. Your company selected "No" to question 6.A and "Yes" to question 7.13, which state respectively: Question 6.A.: "Do any of the CONTRACTOR's subcontractors have an accident frequency above a factor of 125 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three (3) years? Question 7.13: "Do all of the CONTACTOR's Subcontractors have an EMIR at or below 1.00" OCSD has found that your first listed subcontractor in Vern Perry has an EMIR as listed on Compline of 132, and also has an Accident Frequency Factor of 1.82. Please provide evidence that the two recorded incidents in 2017 affecting Vern Perry's Accident Frequency Factor have been rectified and their EMR and Accident Frequency Factor are not exceeding the 1.25 requirement. Please note that failure to meet this requirement by your listed Subcontractor will deem them unacceptable. 4. The following irregularities were noted in your Bid. Since the evaluation team was able to either obtain or verify information without any additional clarifications from ICS, these irregularities were cured and considered waived: • PART 5 BID SUBMITTAL FORMS, BF-7 CONTRACTOR LICENSE DECLARATION Your firm did not list any"Type of Active License(s)" as required on the form. Evaluation team was able to verify the status of your license #764815 on the DIR website. Therefore, this irregularity was waived and considered cured. • PART 5 BID SUBMITTAL FORMS, BF-8 BIDDERS SECURITY(BOND) The CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT form was omitted from the Bid submittal. Upon OCSD's request, on May 6, 2019, Hired Emadi, the authorized representative who signed BF-8, notarized his signature in front of an authorized Notary on OCSD premises. Revision 110714 J•p SAW, a or 9e S • c,y r"E 1MV\P John R. White Page 4 of 4 May 21, 2019 • PART 5 BID SUBMITTAL FORMS, BF-13 NOTARY ENDORSEMENT The notary seal on your Bids CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT was omitted. This irregularity was cured on May 6, 2019 in front of authorized Notary on OCSD premises. To meet our evaluation schedule, your written response must be received by 2:00 PM on Friday, May 24, 2019. Please send your reply via email to construction@ocsd.com, with the subject line: "FE16-06 - ICS Response to Clarification Request No. 1". .Ln Contract Administrator BG:ms Enclosure(s): • BF-2 LIST OF SUBCONTRACTORS • BF-4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES PAGES 1, 2, 7, 8 • BF-6 SAFETY DECELERATION OF CONTRACTOR PAGES 3, 4 cc: Contract File 7.4.4a Revision 110r14 Bid Sub. t dBy: Inn vmtive Cnnctnictinn Solution, IXame of Flrml BF-2 LIST OF SUBCONTMCTORS In accordance w Califomia Public Corti Code Section,4100 at W.,the name that locaBan of the principal place of business of each Sutaert000rwep W perform work or labor or render serdw to the Contncmr in or about the renstructbn of the Woh of improvements In an amount in etcoass of oneNalf of one parrenl(0.5°h)of one Gandhi total Bid,the Subcmltratlw Ikense number,and Be,p irbon of the NbM whia will be done by earl,Subcontractor Is sal forth below.Also,for each SubconlreUor listed below,the Submnlntlors Department of Industrial RelaGms(DIR)Mistralion number and Subcoweed amount La provided. Potion DIR Name Locath.of Business Llcense4 fTybe ofN Fermentation 4 SUbmnUxt Mwunl I. Vw Pe 1017 E Chatnut Ave Santa Ana 92701 466632 AiLipleelt 10DO031323 $61 65.00 2. D2lndlntrisl 17777 Center Ct Dr N Suite 614 Certites 1035992 Lead&Asbestos 1000060703 $54 800.00 3.piedi 4. I.4 5. 6. 7. e. (Uee sepuete sheet dnec.asery.) BF,2 LIsr OFSUBCON7RACTMS "F-121917 PROJECT NO.Fail a FUEL CELL AND BOILER FACILITIES DEBOUrnON Feet of Bid Submitted By: Innovative Construction Solutions IN.m.orflmll BFI PERFORMANCE HISTORY AND FINANCIAL RESOURCES A LIST OF THREE(3)CURRENT AND COMPLETED PROJECTS-LAST TEN(10)YEARS Using this form.Bidder shell list three(3)Projects completed anode the last tan(10)years who a public owneror private owner that are of similar nature,smile,compleft and cost 0 this Inviletlw for Bids. Bidder shall ensure the contact dames and numbers are current at the time dBid. 11 If de corrects am no songer employed MM de owner,Balder shall Identify at least one contact tempter with the project and Bidders m* I�z,R re Theon.In addition 0 concurring d reta ing the references Included he en.OCSD may,and! Its right M contact offset Pr et njec1 owners and such other .titles for which Bidder has perlon eel or I.performing work. Pr^Iacl M.ma.M taatlm pal Ouulphmi cur WwY �Ism4 Address..Phone Na. in-,Cme.m CwnPYIhm OM FrPI.m N.n.aar e,Fmi.eeno—, v.ru. 19 Phone $ Cal Compact ❑ Sub Landfill Gee Collection Piping al Compact-Kenny Knecht 479-802-10 7 3.1 M Curren ® Prime S Leidos OSub SVE System lnsedlaNpn Leidas-Tmror Atkhrwn 303-345-1742 592K Current ® PMro $ Gms"we ❑ Sub System Demolition Creosyntec-Dave Oliver 805-599-9123 80K Current BF-a PERFORMANCE HISTORY AND FINANCIAL RESOURCES GBFltlat] PROJECT NO.Fli FUEL CELL AND BOILER FAGLRIES DEMOUTpN Page l of Bid Submitted By: Innovative Construction Solutions Z A Z �\ 1�- InameolFlm�l _ Mebn NemebY We�nm �f pW�a pnwlPyu�oty/ma %Gxt�+A mgarAoV�APNane Ne. flntl C.nct �mpkllm�aeb orPmlecl Enpinsor VeWs ❑ P4me S GSI ❑ Sub mundvmter tmatmem system GSI-Hassan Amini-949-233-4717 5.5M Complete ❑ PNme S Boeing ❑ Sub SVE System Installation Boeing-John Scott 818-519-9884 730K Complete ❑ PNna 8 Aecom ❑ Sub SVE System Insmllation Accom-Peter Stumph 714-659-5800 452K Complete ❑ Prime $ ❑ Sub EFL PERFORMANCE HISTORY AND FlNANCIAL RESOURCES PROJECT N NO.O.FE1"S AMV MA FUEL CELL AND BOILER FACIUTIES UEMOUIION Peas 2 M a 2 . 0 Bid Submitted By: Innovative Construction Solutions (Name of Firm) ATTACHMENT (BF-4(E) PERFORMANCE HISTORY AND FINANCIAL RESOURCES) Bidder is to include all additional information or explanation,when required,for Question Nos. B(1) through B(6). Include the number of the question for which you are submitting additional information or explanation(s). The additional information or explanation(s)provided on this ATTACHMENT A are to be typewritten. ❑ Check This Box If Attachment A is Not Applicable. BF-4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES C-BF-121817 PROJECT NO.FEIS-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 7 of 8 2 . Bid Submitted By: Innovative Construction Solutions (Name of Finn) ATTACHMENT (BF-4 IF) PERFORMANCE HISTORY AND FINANCIAL RESOURCES) Bidder is to include all additional information or explanation,when required,for Question Nos. D(1) through D(3). Include the number of the question for which you are submitting additional information or explanation(s). The additional information or explanation(s)provided on this ATTACHMENT B istare to be typewritten. ❑ Check This Box If Attachment B is Not Applicable. BF-4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES C-BF-121817 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 8 of 8 Bid Submitted By: Innovative Construction Solutions (Name of Firm) 4. Does the CONTRACTOR have injury prevention programs instituted to the extent required by Section 3201.5 or 6401.7 of the Labor Code? ® Yes ❑ No 5. Does any Subcontractor have any Serious, Willful, Repeat, Serious and Wilful, or Failure to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor Code, during the past five-year period? ® No ❑ Yes If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of the Subcontractor's corrective actions being taken to abate further violations of Part 1 of Division 5 of the Labor Code. 6. Accident Frequency of Subcontractors OCSD will evaluate Subcontractors'accident frequency factors for each calendar year submitted on the CAL/OSHA 300/300A Logs and Summaries and its three(3)year average using the Accident Frequency Factor tables located in the Instructions to Bidders. Prior to completing this Declaration,the CONTRACTOR shall require each of its Subcontractors to calculate its accident frequency factors for each calendar year listed and its three(3)year average using the Accident Frequency Factor tables located in the Instructions to Bidders.The results of those calculations should be used to answer the following questions: OCSD requires all Subcontractors to have an accident frequency at or below a factor of 1.25 of the state average as published by the DIR for the spec NAICS Code and applied to the accident history of the last three(3)years. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum accident frequency requirements. A. Do any of the CONTRACTOR's Subcontractors have an accident frequency above a 3 b factor of 1.25 of the stale average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three(3)years? ® No ❑ Yes BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-121817 PROJECT NO.FE1606 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 3 of 7 Bid Submitted By: Innovative Construction Solutions (Name of Firm) B. Do all of the CONTRACTOR'S Subcontractors have an accident frequency at or below a factor of 1.00 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history for the last three(3)years? ❑ No ® Yes C. Do any of the CONTRACTOR's Subcontractors have an accident frequency within a factor of 1.01 to 1.25 of the state average as published by the DIR for the speck NAILS Code and applied to the accident history for the last three(3)years? M No ❑ Yes If 6.C.is Yes,OCSD may require the CONTRACTOR to submit evidence from its Subcontractor(s)of ccnective actions being taken to reduce the Subcontractor's accident experience if the Subcontractors accident frequency is within a factor of 1.01 to 1.25 of the state average as published by the DIR for its NAICS code and applied to the accident history for the last three(3)years. If any Subcontractor is deemed not qualified based on the inadequacy of the corrective action taken to reduce the accident experience,CONTRACTOR shall be required to substitute any such Subcontractor. Such evidence shall include any or all of the following Information for further consideration: • Copy of Subcontractors IIPP outlining any updates/revisions implemented to reduce future occurrences. • Any training taken place in the last three(3)years to prevent future occurrences. • Any program/policy updates within the three-year period to address their injury rates. 7. Workers'Compensation Experience Modification Rate of Subcontractors OCSD requires all Subcontractors to have workers'compensation experience modification rate(EMR)at or below 1.25. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum experience modification factor requirements. =3 A. Do any of the CONTRACTOR's Subcontractors have a workers'compensation EMR above 1.25? ® No ❑ Yes BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-121817 PROJECT NO.FE1&08 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 4 of 7 Page 1 of 1 800-322-5555 GNP (wXGLS www.gso.com Ship From Tracking #: 544887411 PDS ORANGE COUNTY SANITATION DISTRICT MONICAZ 10844 ELLIS AVE III II I II II II IIIII I II II III I '.FOUNTAIN VALLEY, CA 92708 Ship To INNOVATIVE CONSTRUCTION SOLUTIONS IOHN WHITE COSTA MESA 575 ANTON BOULEVARD SUITE 850 COSTA MESA, CA 92626 S92626A COD: $0.00 Weight: 0 lb(s) Reference: SANCHEZ-FE1606-CLARIFICATIONREQUEST Delivery Instructions: Sig nature Type: REQUIRED 3182786 1111111111111111111111111 ORC CA927-D 0 mr,wl.P 1/21/2019 4:01 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 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.conVShipping/ShippingLabel 5/21/2019 From: TTvMS Ar ii� To: construRion Subject EXTERNAL RE: FE16-06 CladOmtlon Request Date: Wednesday,May 22,2019 4:28:47 PM Attachments: imaaeaoig irnaaeG02.ona FE16-06 oarl&a Request 2I6.gdf Warning: This email originated from outside OCSD.Do not click links or open attachments unless you recognize the sender and are expecting the message. Please see attached clarifications. Thanks 181vis Anis He a vy In d ustria 1 Se rvic e s Innovative Construction Solutions D: 714.352.32481 to rtis jc sine Av From: Construction <Construction@OCSD.COM> Sent:Tuesday, May 21, 2019 4:00 PM To:Telvis Artis<tartis@icsinc.ty> Subject: FE16-06 Clarification Request Attached, please find a Clarification Request regarding your bid for the Project FE16- 06, Fuel Cell and Boiler Facilities Demolition. Original, with attachments, to follow via overnight mail. Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 714-593-7597 • www.ocsd.com Serving. Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708 714.962.2411 • www.ocsd.com Brea Buena Park May 21, 2019 Via Email: tartis@icsinc.ty Cypress & Overnight Mail Fountain Valley John R. White Innovative Construction Solutions Fullerton 575 Anton Boulevard, Suite 860 Costa Mesa CA, 92626 Garden Grove Huntington Beach SUBJECT: Clarification Request No. 1 Re: Project FE16-06, Fuel Cell and Boiler Facilities Demolition Irvine La Habra The evaluation team is in the process of evaluating your Bid submitted in response La Palma to the above reference Project. In order to fully evaluate aspects of your Bid, the team requests the following clarification(s): Los Alamitos 1. PART 5 BID SUBMITTAL FORMS, BF-2 LIST OF SUBCONTRACTORS: Newport Beach A. The "Location of Business" of your Bid's 2n0 listed Subcontractor is not the Orange same as the listed addresses in the Department of Industrial Relations (DIR) Placentia License verification website or in the License verification check on the Californian State License Board website. s=na""=e= =+=„u�n�,n�e"�s��sRe+��=�.maKa Santa Ana The requirements in BF-2. state, in part "...the name and location of the Seal Beach principal place of business of each Subcontractor who will perform work or labor or render service to the Contractor in or about the construction of the Work of Stanton improvements in an amount in excess of one-half of one percent (0.5%) of the Tustin Contractor's total Bid, the Subcontractor license number, and the portion of the Work which will be done by each Subcontractor is set forth below. Villa Park Please clarify the "Location of Business" for the 2nd listed Subcontractor. County of Orange Costa Mesa B. The total Subcontract Amount of all listed Subcontractors in your Bid is three Sanitary District hundred fifty-nine thousand seven hundred and forty-seven dollars ($359,747). The total Bid amount listed on the Schedule of Prices is four Midway City hundred sixty-six thousand dollars ($466,000). This demonstrates that your Sanitary District firm is self-performing a total of one hundred six thousand two hundred and Irvine Ranch fifty-three dollars ($106,253) which is less than the requirement of 30% as Water District stated in the IFB, Part C, Special Provisions, SP-1 PERCENTAGE OF WORK PREFORMED BY THE CONTRACTOR. Yorba Linda s"wn.w nea,u�e."mm m�e ems vdm m«�."r Water District Please provide clarification regarding this error. Please note that failure to meet the self-performance requirement of 30% shall deem your Bid non-responsive. -� 2. PART 5 BID SUBMITTAL FORMS, BF-4 PERFORMANCE HISTORY AND - FINANCIAL RESOURCES: . A. Completion dates were not provided for the projects listed on BF-4. o 4 Our Mission: To protect public health and the environment by Revision 110714 providing effective wastewater collection, treatment, and recycling. 'H, $ANIIq!/ No E •9 A 'c�No 1"E I John R. White Page 2 of 4 May 21, 2019 The requirements in BF-4 A., states in part"Bidder shall list three (3) projects completed within the last ten (10) years with a public owner or private owner that are of similar nature, scope, complexity and cost to this Invitation for Bids" Please clarify completion dates for all the projects listed on B4. B. Your firm's role for the projects listed on page 2 of 8 was left unselected. Please clarify your firm's role for each of the listed projects on this page. 1-1.1 m HE I w,azl"d C. Attachment A on page 7 of 8 was left blank. The requirements on this page, states in part "Bidder is to include all additional information or explanation, when required, for Question Nos. B (1) through B (6)." An additional requirement on the form states "Check This Box If Attachment A is Not Applicable." Please verify that Attachment"A" is not applicable, since no additional information was provided. D. Attachment 8 on page 8 was left blank. The requirements on this page, states in part "Bidder is to include all additional information or explanation, when required, for Question Nos. D (1) through D (3)." An additional requirement on the form states "Check This Box If Attachment A is Not Applicable. Please verify that Attachment B is not applicable since not additional information was provided saw„,"A"o Mel" ,,,.,.. 3. PART 5 BID SUBMITTAL FORMS, BF-6 SAFETY DECLARATION OF CONTRACTOR A. Your company did not check"Yes" in either A or B on question 2, regarding Accident Frequency: Your company has since submitted your OSHA Form 300/300A Logs and Summaries. The evaluation team has reviewed the documents and has determined this deficiency to be corrected. No further action is required. Revision 110714 AN), 1 No Z 9 W elf` POaa2 1NF `"�" John R. White Page 3 of 4 May 21, 2019 B. Your company selected "No" to question 6.A and "Yes" to question 7.6, which state respectively: Question B.A.: "Do any of the CONTRACTOR's subcontractors have an accident frequency above a factor of 125 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three (3) years? Question 7.8: "Do all of the CONTACTOR's Subcontractors have an EMIR at or below 1.00" OCSD has found that your first listed subcontractor in Vern Perry has an EMIR as listed on Compline of 132, and also has an Accident Frequency Factor of 1.82. Please provide evidence that the two recorded incidents in 2017 affecting Vern Perry's Accident Frequency Factor have been rectified and their EMIR and Accident Frequency Factor are not exceeding the 1.25 requirement. Please note that failure to meet this requirement by your listed Subcontractor will deem them unacceptable. sR„,,..hW�",.,",m,";"„R 4. The following irregularities were noted in your Bid. Since the evaluation team was able to either obtain or verify information without any additional clarifications from ICS, these irregularities were cured and considered waived: • PART 5 BID SUBMITTAL FORMS, BF-7 CONTRACTOR LICENSE DECLARATION Your firm did not list any "Type of Active License(s)" as required on the form. Evaluation team was able to verify the status of your license#764815 on the DIR website. Therefore, this irregularity was waived and considered cured. • PARTS BID SUBMITTAL FORMS, BF-5 BIDDERS SECURITY (BOND) The CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT form was omitted from the Bid submittal. Upon OCSD's request, on May 6, 2019, Hired Emadi, the authorized representative who signed BF-8, notarized his signature in front of an authorized Notary on OCSD premises. Revision 110714 SA qq) •9� J2 fC)N4 iMf ENVANN� John R. White Page 4 of 4 May 21, 2019 • PART 5 BID SUBMITTAL FORMS, BF-13 NOTARY ENDORSEMENT The notary seal on your Bids CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT was omitted. This irregularity was cured on May 6, 2019 in front of authorized Notary on OCSD premises. To meet our evaluation schedule, your written response must be received by 2:00 PM on Friday, May 24, 2019. Please send your reply via email to construction@ocsd.com, with the subject line: "FE16-06 - ICS Response to Clarification Request No. 1°. Bandon Oace(a Contract Administrator BG:ms Enclosure(s): • BF-2 LIST OF SUBCONTRACTORS • BF-4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES PAGES 1, 2, 7, 8 • BF-6 SAFETY DECELERATION OF CONTRACTOR PAGES 3, 4 cc: Contract File 7.4.4a Revision 110714 Bid Submitted By. Innovative Construction Snlntionc or—coRnnl BFQ LIST OF SUBCONTRACTORS In a¢aNance with California Pubbk Contract Code Section,4100 of W.Me name and location of Me pdndpal place of business of eaM Subcem ,"who WI peifam wmk or labor or render serWce to the Canhador in or about Me construction of Me M*of imprwements to an moo nt in emess of on Ataff of one percent(0.5 h)of Me Cantcectofs WWI BW.Me Subcontractor Ikenu number,aM Me portion of Me Nbrk whiN will be done by each Submnhector is set foM below.Nnn,for each Subcontractor Well below,Me SMmntntlofs Oepenrnent of Industrial Reasons(MR)re ismu n number aM Subcontract amount Is pmvioed. Pallon OIR Name Location of Business License# of work RetumationIf SM0M* Armt 1. V.Pe 1017 E CheMut Ave Santa Ana 92701 466632 A halt 1000031323 S. 4.BRL Injustrim 11201 Sanft Fe Av.L",opd CA 90262 367259 Dmolifion nW017334 18 5. Sub #2 will not be used, Sub #4 has this service included in 6. their cost. Our price does not change nor does the sub-cost the $54,800.00 is part of ICS cost. 7 Bid amount remains unchanged however sub total cost is reduced to $304,947 = SUB=65.43% = ICS 34.56 % e. N9a sap»b stoat tlrleressary.) 111F2 UST OF SUBCONTRACT0115 6 -121917 PROJECTNO.FE16a9 FUEL CELL MO BOILER FACILRIES OENOUT ION fu a al Bid Submitted BY Innovative COMMUction Solutions mwnemBn ) BF4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES A. LIST OF THREE(3)CURRENT AND CONIPLETED PROJECTS—LAST TEN(111))REARS Using this form.Bidder shall list three(3)projects completed within the heat ten(10)years Yi h a pudic owner or private owner mat are of ssi rupee,smile,mmpl *and mat to this Inviiatm far Bbs. Bidder shag ensure the canted names and numbers are current at the lime Of Bid. � 11 IfihemN amno"erem wiN poyedtMa r,Biddersiullidw*attradanemntadfamig wide a Neprojed Bidd sm* z I thereon.In aJditbn to contacting the references ndurcd herein,OCSD may,and retains its right to context other project bvnera and such other Bottles for which Bidder has performed Or is peffomtng work. amlev xe®ew taNm VLandfill SCal Compactan Piping el Camped-Kcnny Knecht 479-802-10 3.IM Current $ Leidle Sub stallation Leidos-Trevor Atkinson 303-345-1742 592K Cori GI Pdme $ Geosymec Shb System Demolition Geosymee-Dave Oliver 805-588-9123 80K Carried SF4 PERFORMANCE HISTORY AND FINAHC RESOURCES CdF-12181] PROJECT NO.FEI6 FUEL CELL AND BOILER FACILITIES DEMOLITION Pete t of 8 Bid Submitted By: In....tivc CDnslmnTion Solutians 1 A Z.Q m.m.mnrml Pr.T.of Neufanduurbn nw ao.odplon of won .10 nomeed. ,mev No. Rnol C.Nncl CengMlm oua Prge[I N.."nr Pml.of E.1. VYu. ® Pdmn g GSI ❑ Sub MUndwater Irtalmcnt system OSI-Hassan Amini-949-2334717 5.5M Complete © Pd ne g Boeing 0 sUb SVE System lnsmllation Boeing-John Scott 818-519-9884 730K Complete 111(118 0 Prime g Aeeom ❑ Sub SVE System Installation Accom-Peter Stumph 714-659-5900 452K Complete ❑ Pdme g ❑ Sub LI O.RI BF4 PERFORMANCE HISTORY AND FINANOAL RESOURCES HBHT PROTECT N0. .1 84a FUEL CELL AND BOILER FACItfnES DEMOIRION Pegg 2 of 9 Z A Bid Submitted By: Innovative Construction Solutions (Name of Flrm) ATTACHMENT (BF-4(E)PERFORMANCE HISTORY AND FINANCIAL RESOURCES) Bidder is to include all additional information or explanation, when required,for Question Nos. B(1) through B(6). Include the number of the question for which you are submitting additional information or explanation(s). The additional information or explanation(s) provided on this ATTACHMENT A are to be typewritten. 0 Check This Box If Attachment A is Not Applicable. BF-0 PERFORMANCE HISTORY AND FINANCIAL RESOURCES GBF-121817 PROJECT NO. FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 7 of 8 2 . © Bid Submitted By: Innovative Construction Solutions (Name of Finn) ATTACHMENT (BF-4 IF)PERFORMANCE HISTORY AND FINANCIAL RESOURCES) Bidder is to include all additional information or explanation,when required,for Question Nos. D(1) through D(3). Include the number of the question for which you are submitting additional information or explanation(s). The additional information or explanation(s)provided on this ATTACHMENT B is/am to be typewritten. 171 Check This Box If Attachment B is Not Applicable. BF4 PERFORMANCE HISTORY AND FINANCIAL RESOURCES C-BF-121817 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 8 of 8 Bid Submitted By: Innovative Construction Solutions (Name of M.) 4. Does the CONTRACTOR have injury prevention programs instituted to the extent required by Section 3201.5 or 6401.7 of the Labor Code? (111 Yes ❑ No 5. Does any Subcontractor have any Serious,Willful, Repeat, Serious and Willful,or Failure to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor Code, during the past five-year period? M No ❑ Yes If Yes is checked.OCSD may require the CONTRACTOR to submit evidence of the Subcontractor's corrective actions being taken to abate further violations of Part 1 of Division 5 of the Labor Code. 6. Accident Frequency of Subcontractors OCSD will evaluate Subcontractors'accident frequency factors for each calendar year submitted on the CAUOSHA 3001300A Logs and Summaries and its three(3)year average using the Accident Frequency Factor tables located in the Instructions to Bidders. Prior to completing this Declaration,the CONTRACTOR shall require each of its Subcontractors to calculate its accident frequency factors for each calendar year listed and its three(3)year average using the Accident Frequency Factor tables located in the Instructions to Bidders. The results of those calculations should be used to answer the following questions: OCSD requires all Subcontractors to have an accident frequency at or below a factor of 1.25 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three(3)years. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum accident frequency requirements. A. Do any of the CONTRACTOR's Subcontractors have an accident frequency above a .3 b factor of 1.25 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three(3)years? ® No ❑ Yes BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-121817 PROJECT NO.FE16-06 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 3 of 7 Bid Submitted By: Innovative Construction Solutions (Name of Firm) B. Do all of the CONTRACTOR'S Subcontractors have an accident frequency at or below a factor of 1.00 of the state average as published by the DIR for the specific NAICS Code and applied to the accident history for the last three(3)years? ❑ No ® Yes C. Do any of the CONTRACTOR's Subcontractors have an accident frequency within a factor of 1.01 to 1.25 of the state average as published by the DIR for the speck NAICS Code and applied to the accident history for the last three(3)years? ® No ❑ Yes If S.C.is Yes,OCSD may require the CONTRACTOR to submit evidence from its Subcontractor(s)of corrective actions being taken to reduce the Subcontractors accident experience if the Subcontractor's accident frequency is within a factor of 1.01 to 1.25 of the state average as published by the DIR for its NAICS code and applied to the accident history for the last three(3)years. If any Subcontractor is deemed not qualified based on the inadequacy of the corrective action taken to reduce the accident experience, CONTRACTOR shall be required to substitute any such Subcontractor. Such evidence shall include any or all of the following information for further consideration: • Copy of Subcontractors IIPP outlining any updates/revisions implemented to reduce future occurrences. • Any training taken place in the last three(3)years to prevent future occumances. • Any program/policy updates within the three year period to address their injury rates. 7. Workers'Compensation Experience Modification Rate of Subcontractors OCSD requires all Subcontractors to have workers'compensation experience modrfication rate(EMR)at or below 1.25. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum experience modification factor requirements. =a A. Do any of the CONTRACTOR's Subcontractors have a workers'compensation EMR above 1.25? M No ❑ Yes BF46 SAFETY DECLARATION OF CONTRACTOR C-BF-121817 PROJECT NO.FE16-08 FUEL CELL AND BOILER FACILITIES DEMOLITION Page 4 of 7 Hi Telvis, I can assist with you with that,the claim itself was an attorney initiated claim that came in after the employee was notified that the company would no longer be offering him personal health benefits,the employee was a diabetic who had been on a long term leave of absence due to complication with his diabetes. As a result the employee went and filed a worker's compensation claim in an attempt to have the team at Vern Perry be made responsible for the treatment. He was actually referred to several work comp doctor's who had actually seen him and discharged him from care on the same day as they did not find his conditions to be industrial. The claim was resolved via a compromise and release with all parties in agreeance. Please let me know if you need more information or details. Thanks Telvis I Randy Villanueva Workers'Compensation Claims Manager PO PATRI OT 2415 Campus Dr,Suite 200 Irvine,CA 92612 949-486-7927 Office www.patrisk.com From:Telvis Artis<tartis@icsinc.ty> Sent:Wednesday, May 22, 2019 2:53 PM To:Steve Cota<scota@patrisk.com> Cc:Dena Kurtz<dkurtz@Patrisk.com>; Randy Villanueva<rvillanueva@patrisk.com> Subject: Re: Emailing:OSHA Log 2016,SUB Contractor Bid Forms-OCSD-FE16-06 Steve is there anything you draft up to explain that it wasn't an incident Sent from my iPhone On May 22,2019, at 2:49 PM,Steve Cota<scota@patrisk.com>wrote: Hi Telvis, I hope all is well. Unfortunately the mod is at 1.32. The insured has only had one claim in over 20 years. The claim wasn't even for an injury and was false. The claim has now been closed. Unfortunately the insured is a smaller contractor and this one claim caused their EMR to go from 0.74 to 1.32. Vern Perry Asphalt takes pride in their employees and makes sure safety is a number one priority. Their current EMR does not reflect Vern Perry Asphalt. If you look at the last 20 years you can see they don't have claims and are a great partner. Please let me know if you have any questions. Steve Steve Cota Patriot Risk&Insurance Services 949.486.7947 Office 619.948.9226 Cell scota(a)oatrisk.com Workers'Compensation Claims Manager PO PATRIOT 2415 Campus Dr,Suite 200 servip Orange County Sanitation District Anaheim 10844 Ellis Avenue,Fountain Valley.CA 92708 714.962.2411 a www.ocsd.com Brea Buena Park June 12, 2019 Via Email: tartis@icsinc.tv & Overnight Mail Cypress Fountain Valley John R. White Innovative Construction Solutions Fullerton 575 Anton Boulevard, Suite 850 Costa Mesa CA, 92626 Garden Grove Huntington Bea SUBJECT: Clarification Request No. 2 Irvine Re: Project FE16-06, Fuel Cell and Boiler Facilities Demolition La Habra OCSD has reviewed your responses to the clarification letter issued on May 21, 2019, La Palma and requests further clarification on two items. Las Alamitos 1. Clarification 1.6 -Self-Performance Requirement Newport Beach Your response to item 1.B of the clarification letter indicates that your firm Orange intends for the "Lead and Asbestos" portion of the Work, which is listed for Placentia Subcontractor#2 (D2 Industrial), to be performed by the fourth (41h) listed Subcontractor (BHL Industries). As explained in your response to item 1.A, your Santa Ana firm initially listed D2 Industrial before being informed that BHL Industries' quote also included the "Lead &Asbestos" portion of the Work. Seal Beach As explained below, please be advised that California law prohibits your firm Stanton from using BHL Industries or any subcontractor to perform this portion of the Tustin Work. California's Public Contract Code Section 4106 states as follows: Villa Park If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of County of Orange work to be Performed under the contract in excess of One-half of 1 percent of the prime contractor's total bid, the prime contractor agrees Costa Mesa that he or she is full qualified to perform that portion himself or herself, Sanitary District and that the prime contractor shall Perform that portion himself or herself Midway City Sanitary District If after award of contract, the prime contractor subcontracts, except as Irvine Ranch provided for in Sections 4107 or 4109, any such portion of the work, the Water District prime contractor shall be subject to the penalties named in Section 4111. Yorba Linda Your prior response indicates that your Bid specifies more than one Water District Subcontractor (D2 Industrial and BHL Industries) as performing the same portion of Work (Lead &Asbestos) and OCSD has not received a request for substitution pursuant to Public Contract Code Sections 4107 and 4107.5. Therefore, your firm is required to self-perform the portion of the Work for"Lead &Asbestos" pursuant to Public Contract Code Section 4106. Moreover, should your firm be awarded the Contract, your firm would be prohibited from subletting or subcontracting this portion of the Work under Public Contract Code Sections 4106 and 4107(c). Our Mission: To protect public health and the environment by Revision 110714 providing effective wastewater collection, treatment, and recycling. N,J SANI),,l N r9 jW Pp� ^FAN dE EHJ, John R. White Page 2 of 3 June 12, 2019 OCSD requests acknowledgment that your firm is willing and able to self- perform the "Lead & Asbestos" portion of the Work as required under Public Contract Code. Please be advised that the staff performing this Work will be subject to the Certifications and submittal requirements as stated in the Specification 01900—Hazardous Materials Mitigation and Controls, section 1.7.B.2.b.a. 2. Clarification 2.13—Safety Evaluation of Subcontractor Vern Perry Questions 6 and 7 of BF-6 SAFETY DECLARATION OF CONTRACTOR state, in part, as follows: 6. OCSD requires all Subcontractors to have an accident frequency at or below a factor of 1.25 of the slate average as published by the DIR for the specific NAICS Code and applied to the accident history of the last three (3) years. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum accident frequency requirements. 7. OCSD requires all Subcontractors to have workers'compensation experience modification rate (EMR) at or below 1.25. CONTRACTOR shall be required to substitute any Subcontractor who fails to meet the minimum experience modification factor requirements. Your response did not show that your Bid's first (181) listed Subcontractor(Vern Perry) had an accident frequency factor or EMR below 1.25. Therefore, pursuant to the Instructions to Bidders IB-13, section.B.6.c), you will be required to either substitute Vern Perry or self-perform the "Asphalt" portion of the Work. Please be advised that if your firm intends to substitute Vern Perry, safety evaluation will be conducted and must be approved by OCSD pursuant to IB-13, section B.6.b.1, and I13-13, section B.6.b.2. Revision 110714 V J b o, John R. White Page 3 of 3 June 12, 2019 To meet our evaluation schedule, your written responses must be received by 11:00 AM on Wednesday, June 19, 2019. Please send your reply via email to construction@ocsd.com with the subject line: "FE16-06- ICS Response to Clarification Request No. 2." Failure to submit written responses by the requested date will result in your Bid being deemed non-responsive. Brandon G Contract Administrator BG:DO:ms cc: File Copy 7.4.4a Revision 110714 575 Anton Boulevard,Suite 850 Costa Mesa,CA 92626 (714)8936366 telephone (714)893-5122 facsimile License No.764815 A-HAZ-C21 ..icsinc.ty 6/19/19 Attn: Brandon Garcia Re: Project FE-16-06 Fuel Cell& Boiler Demolition Mr.Garcia in response to clarification request No.2 1. Clarification 1.B—Self Performs Requirement. ICS currently holds the General Engineering A license with the hazmat endorsement we are more than capable of handling lead.As per the California code of regulations we ICS can safely disposal 100SF or less of asbestos certified materials with asbestos's certified people"Not requiring ICS to hold any additional C-22 Asbestos license". However,if the work exceeds the SF listed ICS will not N be able to self-perform these tasks. Oa. This can be handled as a means and methods to minimize expose to less than 100SF by the use of shears and demolition equipment. Monitoring reporting and documentation will still } be performed as required by SAQMD. O b. ICS unintentionally forgot to remove a bidder from the proposed sub-contractors list form "However our total bid amount is correct" so in adding the amount of work to be performed by our proposed sub-contractors as listed on the sub-contract form it results in exceeding the allowable amount permitted.As an alternative and without changing our official bid amount OICS would proposed to leave the listed sub-contractors as shown in the bid form and make a _ clerical correction only to the amounts listed under our sub-contractors without any change to our bid amount bid amount thus resolving all issues. U c. If the above two options cannot be achieved ICS would prefer to be safe and not self-perform L the asbestos portion "especially If the district or state requires a special asbestos license to be held by the contractor. O2. Clarification 2.13—Safety evaluation of sub-contractor Vern Perry. I . ICS understands that Vern Perry did not meet the requirement of OCSD safety standards. V Unfortunately,they were under the impression they had a great record, but this was discovered and can't be changed. However, ICS will honor the contract price and provide a replacement \ asphalt contractor at no additional cost to perform that portion of the SOW. Telvis Antis OHeavy Industrial Services Director Mr./Ms. [LastName] [Date] Page 2 Subject of Letter or ICS Proposal No. N O O N C O U On C- O v N O O CLOSED SESSION 1 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: July 16, 2019 RE: Closed Session Items The Board of Directors will hold a closed session on July 24, 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 1425979.1 �...I CLOSED SESSION 2 WOODRUFF, $PRADllN 6$MAKi 555 ANION BOULEVARD, SUITE 1200 COSTA M.s A, CA 92626-7670 (714)556-7000 MEMORANDUM TO: Hon. Chair and Members of the Orange County Sanitation District Board of Directors FROM: Bradley R. Hogin, Esq. General Counsel DATE: July 16, 2019 RE: Closed Session Items The Board of Directors desires to hold a closed session on July 24, 2019 for the purpose of conferring with its legal counsel regarding potential litigation. Based on existing facts and circumstances, the Board 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 and 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 It. Hogin, G neral Counsel 1419456.1 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.