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HomeMy WebLinkAbout07-27-2016 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, July 27, 2016 Regular Meeting of the 6:00 P.M. BOARD OF DIRECTORS Board Room 0 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA CALL TO ORDER INVOCATION AND PLEDGE OF ALLEGIANCE (Dave Shawver, City of Stanton) ROLL CALL AND 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 Chairman and are requested to limit comments to three minutes. SPECIAL PRESENTATIONS: Employee Service Awards REPORTS: The Board Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. Procurement Process CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the regular Board of Directors Meeting held on June 22, 2016. 0 712 7/2 01 6 OCSD Board of Directors Agenda Page 1 of 8 2. DOIG DRIVE PROPERTY LEASE EXTENSION (Lorenzo Tyner) RECOMMENDATION: Approve the First Amendment to the Doig Property Lease; to enter into a three (3) month lease extension of the Orange County Sanitation District's real property at 7311 Doig Drive, Garden Grove in a form approved by General Counsel. 3. CORRECTION TO BOARD ACTION: CHANGE ORDER TO BRENNTAG PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 (Ed Torres) RECOMMENDATION: A. Approve an additional one-year optional renewal period of the Purchase Order Specification No. C-2013-560 for 25% Caustic Soda (Sodium Hydroxide) with Brenntag Pacific for chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2017 through June 30, 2018, for a unit price of $560.52 per dry ton (delivery and applicable sales tax included)for a total estimated annual amount of$280,000; and B. Approve a (10%) unit price contingency. 4. AGREEMENT WITH EAST ORANGE COUNTY WATER DISTRICT TO COLLECT CAPITAL FACILITY CAPACITY CHARGES ON BEHALF OF THE ORANGE COUNTY SANITATION DISTRICT (Lorenzo Tyner) Approve the agreement with East Orange County Water District for the collection of the Orange County Sanitation District Capital Facility Capacity Charges. 5. WASTE MANAGEMENT PROGRAM (Celia Chandler) Ratify a change order to P.O. 104652-OB, Specification S-2011-498, issued to Clean Harbors Environmental Services for waste disposal services for an additional $50,000 for a contract amount not to exceed $242,500 for the period of July 1, 2015 to June 30, 2016. RECEIVE AND FILE: These items require no action;and without objection, will be so ordered by the Board Chair. 6. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JUNE 2016 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the Investment Transactions for the month of June 2016. 0 712 7/2 01 6 OCSD Board of Directors Agenda Page 2 of 8 7. COMMITTEE MINUTES (Clerk of the Board) RECOMMENDATION: Receive and file the approved minutes of the following standing committees: A. Operations Committee meeting of June 1, 2016 B. Administration Committee meeting of June 8, 2016 C. Legislative and Public Affairs Committee meeting of June 14, 2016 D. Steering Committee meeting of June 22, 2016 OPERATIONS COMMITTEE: 8. FISH TRACKING STUDY - SOLE SOURCE CONTRACT WITH DR. CHRISTOPHER LOWE — CALIFORNIA STATE UNIVERSITY LONG BEACH (James E. Colston) RECOMMENDATION: Award a Sole Source Contract to Dr. Christopher Lowe of the California State University Long Beach to conduct a fish tracking study in support of the Orange County Sanitation District's National Pollution Discharge Elimination System (NPDES) Ocean Discharge Permit for the period August 1, 2016 through June 30, 2018, at a project cost not to exceed $200,000. 9. MONTEREY BAY AQUARIUM RESEARCH INSTITUTE OCEAN ACIDIFICATION AND HYPDXIA MOORING SUPPORT (James E. Colston) RECOMMENDATION: Approve a Service Agreement to the Monterey Bay Aquarium Research Institute (MBARI)to provide technical support and training to District staff to develop the in-house ability to operate, service, and maintain the Orange County Sanitation District's Ocean Acidification and Hypoxia mooring for the period of July 1, 2016 to June 30, 2017, for an amount not to exceed $120,000 with the option of four (4) one-year renewals. 10. INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT AMENDMENT 2015-2016 (James E. Colston) RECOMMENDATION: Approve Contract Amendment number 4600001879-001 with Inland Empire Regional Composting Authority(IERCA)for the Orange County Sanitation District to 1) use farm bed trailers to transport biosolids to the Inland Empire Regional Composting Facility, and 2) pay to IERCA for biosolids received and processed at a base fee of $55.00 per wet ton, plus an administrative fee of $2.00 per wet ton and any other adjustments provided for in the original agreement. This Contract Amendment shall serve as the first annual renewal of three one-year renewal options of the original agreement in a total annual amount not to exceed $900,000/year for IERCA to receive and compost up to 50 wet tons per day (Monday thru Friday) of OCSD's biosolids. 0 712 7/2 01 6 OCSD Boats of Directors Agenda Page 3 of 8 11. AGREEMENT FOR PURCHASE OF NATURAL GAS, SPECIFICATION NO. C-2016-778BD (Ed Torres) RECOMMENDATION: A. Approve an agreement to Constellation NewEnergy—Gas Division, LLC for the purchase of Natural Gas, Specification No. C-2016-778BD forthe period August 1, 2016 through July 31, 2017 for a monthly index unit price of $0.039 per Million British Thermal Units (MMBtu) for a total estimated annual cost of$296,000, with four(4) one-year renewal options; and B. Approve unit price contingency of (10°/%). 12. AGREEMENT FOR PURCHASE OF ANIONIC POLYMER, SPECIFICATION NO. C-2016-751 BD (Ed Torres) RECOMMENDATION: A. Approve an agreement to Polydyne, Inc. for the Purchase of Anionic Polymer, Specification No. C-2016-751BD, for the period September 1, 2016 through August 31, 2017, for a unit price of$2.605 per active pound delivered, plus applicable sales tax, for a total estimated annual amount of$370,000, with four one-year renewal options; and B. Approve a unit price contingency of 10%. 13. 2017 FACILITIES MASTER PLAN — PROJECT PS15-10 (Rob Thompson) RECOMMENDATION: A. Approve a Professional Services Agreement with Carollo Engineers, Inc. to provide professional services for 2017 Facilities Master Plan, Project PS15-10, for an amount not to exceed $3,132,052; and B. Approve a contingency of$313,205 (10%). 14. SAFETY IMPROVEMENT AT PLANT NOS. 1 AND 2, PROJECT NO. J-126 (Rob Thompson) RECOMMENDATION: A. Approve a Professional Design Services Agreement with Arcadis U.S., Inc. to provide program and engineering design services for Safety Improvement at Plant Nos. 1 and 2, Project No. J-126, for an amount not to exceed $1,540,000; and 0 712 7/2 01 6 OCSD Board of Directors Agenda Page 4 of 8 B. Approve a contingency of$154,000 (10%). 15. PRIMARY TREATMENT REHABILITATION AT PLANT 2, PROJECT NO. P2-98 (Rob Thompson) RECOMMENDATION: A. Approve a Professional Design Services Agreement with Black&Veatch to provide engineering design services for Primary Treatment Rehabilitation at Plant 2, Project No. 132-98,for a total amount not to exceed $18,141,423; and B. Approve a contingency of$1,814,142 (10%). 16. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) RECOMMENDATION: Approve a Broker Representation Agreement with Cushman &Wakefield to give exclusive authority to represent the Orange County Sanitation District, at no cost, for the investigation and potential negotiation to acquire existing office building and/or land for a new Administration Building in an area near Plant No. 1. ADMINISTRATION COMMITTEE: 17. REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES, SERIES 2016B (Lorenzo Tyner) RECOMMENDATION: Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2016B, as two-year fixed-rate obligations, subjectto market conditions, in an amount notto exceed$120,000,000 to replace the $120,850,000 Revenue Refunding Certificate Anticipation Notes, Series 2014B maturing on November 15, 2016. STEERING COMMITTEE: 18. GENERAL MANAGER'S FY 2015-2016 FINAL YEAR END WORK PLAN UPDATE (Jim Herberg) RECOMMENDATION: Receive and File the General Manager's FY 2015-2016 Work Plan Year End Update. 07/27/2016 OCSD Board of Directors Agenda Page 5 of 8 19. RECEIVE AND FILE THE 2015 INTERNAL SAWPA PRETREATMENT PROGRAM AUDIT REPORT (James E. Colston) RECOMMENDATION: Receive and File the 2015 Internal SAWPA Pretreatment Program Audit Report. 20. COMPENSATION STUDY FINAL RESULTS (Celia Chandler) RECOMMENDATION: Receive and File the Compensation Study final results. NON-CONSENT CALENDAR: 21. PAYMENT AGREEMENT FOR CAPITAL FACILITIES CAPACITY CHARGES FOR THE SOURCE IN BUENA PARK (Lorenzo Tyner) RECOMMENDATION: Approve the payment agreement negotiated by the General Manager for the collection of all charges and fees owed for capital facility capacity charges plus interest of 5.5% per annum and administrative fees with Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC, in a form approved by General Counsel. INFORMATION ITEMS: AB 1234 REPORTS: CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations,pending or potentiallitigation,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 as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. CONVENE IN CLOSED SESSION. 07i27 2016 OCSD Beard of Directors Agenda Page 6 of 8 (1) CONFERENCE WITH LABOR NEGOTIATORS (Government Code Section 54957.6) Agency Designated Representatives: Laura Kalty, Chief Negotiator from Liebert Cassidy Whitmore; James Herberg; Robert Ghirelli; Celia Chandler; and Andrew Nau. Employee Organizations: Supervisor& Professional Management Group (SPMT), International Union of Operating Engineers Local 501 (Local 501), and Orange County Employees Association (OCEA). (2) ANTICIPATED LITIGATION (Government Code Section 54956.9(d)(2)) Significant Exposure to Litigation pursuant to paragraph (2)of subdivision (d) of Section 54956.9. Number of Potential Cases: 1 Claim for Damage or Injury from Steven and Jennifer Gates (3) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 2 Caravetts v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2016-008326:31-CU-OR-CJC Klean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627-JVS-FFM. RECONVENE IN REGULAR SESSION. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: 07272016 OCSD Beard of Directors'Agenda Page 7 of 8 ADJOURNMENT: Adjourn the Board meeting until the Regular Board of Directors Meeting on August 24, 2016 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. Aaenda Postina: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's 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. Aaenda 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 to the Clerk of the Board 14 days before the meeting. Kelly A.Lore Clerk of the Board (714)593-7433 klore(dw sd.com For any questions on the agenda, Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbent0omd.com Assistant General Manager Bob Ghirelli (714)593-7400 rahimililolocsd.com Director of Engineering Rob Thompson (714)593-7310 rthomoson/oZocsd.com Director of Environmental Services Jim Colston (714)593-7450 icolston(a)ocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 ItynerCdocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandlenibocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres omd.com 07/27/2016 OCSD Board of Directors Agenda Page 8 of 8 ITEM NO. 1 Orange County Sanitation District MINUTES BOARD MEETING June 22, 2016 NS ANITgT� c c O � Fcr�N HE Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 0 612 212 01 6 Minutes of Board Meeting Page 1 of 10 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was called to order by Chair John Nielsen on June 22, 2016, at 6:05 p.m., in the Administration Building. Director Dave Shawver delivered the invocation and led the Pledge of Allegiance. The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X John Nielsen, Chair Allan Bernstein X Gregory Sebourn, Vice Chair Doug Chaffee X Tom Beamish Tim Shaw X Steven Choi Lynn Schott X Keith Curry Scott Peotter X Ellery Deaton Sandra Massa-Lavitt X Joy Neugebauer Al Krippner X James M. Ferryman Bob Ooten X Steven Jones Kris Beard Jim Katapodis X Erik Peterson X Robert Kiley Michael Beverage X Peter Kim Michele Steggell A Lucille Kring Jordan Brandman X Greg Mills Diana Fascenelli X Richard Murphy Shelley Hasselbrink X Steve Nagel Cheryl Brothers A Glenn Parker Cecilia Hupp X David Shawver Carol Warren X Fred Smith Virginia Vaughn X Teresa Smith Mark Murphy X Michelle Steel Shawn Nelson A Sal Tinajero David Benavides X Chad Wanke Constance Underhill X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Rob Thompson, Director of Engineering; Jim Colston, Director of Environmental Services; Lorenzo Tyner, Director of Finance & Administrative Services; Celia Chandler, Director of Human Resources; Ed Torres, Director of Operations and Maintenance; Kelly Lore, Clerk of the Board; Marc Brown; Jennifer Cabral; Don Cutler; Michael Dorman; Al Garcia; Tina Knapp; Randy Kleinman; Mark Manzo; Jeff Mohr; Wendy Sevenandt and Marco Polo Velasco. 06/22/2016 Minutes of Board Meeting Page 2 of 10 OTHERS PRESENT: Brad Hogin (General Counsel); Bob Ooten (Alternate Director CMSD); Mike Beverage (Alternate DirectorYLWD); Patrick Shields, IRWD; Jose Zepeda, IRWD; and Jay Humphrey, resident. PUBLIC COMMENTS: Local residents Mr. Jay Humphrey and Mr. Kevin Nelson, spoke in regard to the Southwest Costa Mesa Trunk Project 6-19 and the Talbert Nature Preserve. SPECIAL PRESENTATIONS: Chair Nielsen called upon Ed Torres, Director of Operations & Maintenance, who presented a 25-year Employee Service Award to MarcoPolo Velasco, Associate Engineer — Division 830. REPORTS: Chair Nielsen provided an update on the recent Legislative and Public Affairs (La PA) meeting including information regarding: Orange County Department of Education's Inside the Outdoors programs which reaches 51h graders through the Drip Drop Traveling Scientist, and Scientists of the Sewer which is a weeklong, hands on, wastewater treatment laboratory program for high school students and the ACC-OC Golden Hub Award OCSD received for the Newport Beach Construction Outreach Program. Chair Nielsen also reported on the status of SB 163 and the continued effort to work with Senator Hertzberg's Office and AB 2022, the water bottling bill, where Jim Colston, OCSD's Director of Environmental Services, testified on our behalf at the Senate Environmental Quality committee; the bill passed through with a 7-0 vote and the next steps are working with the Water Board and the Governor's Office. Chair Nielsen stated that the following letters of support were approved and sent by the La PA Committee: Water Resources Development Act of 2016 (S. 2848) and Water Recycling Acceleration Act of 2015 (H.R.2993). General Manager Jim Herberg reported on the following: Heal the Bay's Orange County Beach Water Quality report card with A+ to B grades for both summer and winter; the objectives and progress of the first agency-wide employee engagement survey; upcoming dates for Director excursions on the OCSD Nerissa: August 18 (Trawl) and September 21 (Rig Fishing); and the closure of OCSD Administrative Offices on Monday, July 41h (Independence Day). Chair Nielsen announced that the OCSD/OCWD Joint Open House will take place on August 131h at 10:00 a.m. and encouraged all to attend. 06/22/2016 Minutes of Board Meeting Page 3 of 10 CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Board of Directors Meeting held on May 25, 2016. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero 2. IRVINE RANCH WATER DISTRICT SOLIDS AGREEMENT EXTENSION (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve Amendment No. 1 to the Agreement for Transfer of Wastewater Solids Residuals between the Irvine Ranch Water District (As Successor to County Sanitation District No. 14) and Orange County Sanitation District, transferring solids from Irvine Ranch Water District's Michelson Water Recycling Plant to the Orange County Sanitation District Wastewater System and reimbursing the Orange County Sanitation District for its costs, in a form approved by General Counsel. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker, and Tinajero 3. OWNER CONTROLLED INSURANCE PROGRAM (OCIP) ADMINISTRATOR'S CONTRACT PAYMENT (Celia Chandler) MOVED, SECONDED, AND DULY CARRIED TO: A. Authorize an increase of $100,000 to the current FY 2015-2016 budget of $150,000, increasing the total amount to not exceed $250,000 for the Owner Controlled Insurance Program Administrator (Aon Risk Services West, Inc.); and B. Authorize a not-to-exceed annual amount of$250,000 in the budget for the Owner Controlled Insurance Program Administrator (Aon Risk Services West, Inc.), for the following three (3) fiscal years thereafter. 06/22/2016 Minutes of Board Meeting Page 4 of 10 AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero RECEIVE AND FILE: These items require no action;and without objection, will be so ordered by the Board Chair. 4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF MAY 2016 (Lorenzo Tyner) Received and filed the report of the Investment Transactions for the month of May 2016. 5. COMMITTEE MINUTES (Clerk of the Board) Received and filed the approved minutes of the following standing committees: A. Operations Committee meeting of May 4, 2016 B. Administration Committee meeting of May 11, 2016 C. Legislative and Public Affairs Committee meeting of May 10, 2016 D. Steering Committee meeting of May 25, 2016 OPERATIONS COMMITTEE: Committee Chair Withers stated a correction to Item No. 9, contractor name should read HDR Engineering, Inc., as provided in the late communication from the Clerk of the Board. 6. ON-CALL CONTRACTOR SUPPORT SERVICES (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: Approve Amendment No. 1 to the On-Call Contractor Support Services Contract, Specification No. S-2011- 4836D, with Jamison Engineering Contractors, Inc., providing for construction support, extending the contract period for a four month period from July 1, 2016 to October 31, 2016, with no increase to the contract amount. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero 06/22/2016 Minutes of Board Meeting Page 5 of 10 7. PLANT WATER SYSTEM REHABILITATION AT PLANT NO. 2, PROJECT NO. P2-101 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a project budget increase of$150,000 for Plant Water System Rehabilitation at Plant No. 2 included in the Proposed Budget for Fiscal Years 2016-17 and 2017-18 scheduled to be approved at the June 22, 2016 Board of Directors meeting. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker, and Tinajero 8. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Services Agreement with LSA Associates, Inc. to provide environmental services for the preparation of a California Environmental Quality Act compliant document for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128 for an amount not to exceed $420,927; and B. Approve a contingency of$42,093 (10%). C. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker, and Tinajero 9. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Design Services Agreement with HDR, Engineering Inc. to provide architectural and engineering design services for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128, for an amount not to exceed $11,785,709; and 06/22/2016 Minutes of Board Meeting Page 6 of 10 B. Approve a contingency of$1,178,571 (10%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanks; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker, and Tinajero ADMINISTRATION COMMITTEE: 10. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISE ONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: A. Authorize purchase of an annual licensing and maintenance agreement for IBM Maximo and WebSphere software and support using Dataskill, Inc. in the amount of$180,166.41 for one year; and B. Approve a contingency of$36,033 (20%)for additional licenses identified in the current Maximo implementation plan. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero 11. FY 2016-17 USE CHARGES FOR SANTA ANA WATERSHED PROJECT AUTHORITY (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-10 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the FY 2016-17 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority." AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanks; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero 06/=016 Minutes of Board Meeting Page 7 of 10 12. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 16-11 entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2016-17, for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code." AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero NON-CONSENT CALENDAR: 13. PROPOSED FY 2016-17 AND 2017-18 BUDGET (Lorenzo Tyner) Mr. Herberg provided a brief presentation on the restructuring included in the proposed budget and the overall operating cost increases and decreases presented. RECOMMENDATION: Approve proposed Operating, Capital, Debt/COP Service and Self-Insurance Budgets for FY 2016-17 and 2017-18 as follows: 2016-17 2017-18 Net Operations, Maintenance &Working Capital $146,356,520 $149,854,390 Worker's Compensation Self Insurance 1,090,000 1,130,000 General Liability and Property Self-Insurance 1,390,000 1,450,000 Net Capital Improvement Program 171,290,000 137,989,000 Debt/COPService 86,664,000 83,119,000 Reduction of Long Term Obligations 65,000,000 - Intra-District Joint Equity Purchase/Sale(') 3,400,000 1,700,000 TOTAL 5475.190.520 5375.242.390 (')Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Mills; R. Murphy; Nagel; Neugebauer, Nielsen; Peterson (Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel; Wanke; Withers; and Yarc NOES: None ABSTENTIONS: None ABSENT: Kring; Parker; and Tinajero 0&=016 Minutes of Board Meeting Page 8 of 10 INFORMATION ITEMS: Chair Nielsen stated that Supplemental Item No. 14 would be not be heard tonight due to additional information being requested by the Steering Committee. 14. PRELIMINARY CLASSIFICATION & COMPENSATION STUDY RESULTS (Celia Chandler) Georg Krammer, Chief Executive Officer with Koff& Associates, will present a preliminary summary of the compensation study findings. AB 1234 REPORTS: Director Ferryman reported out on the following meetings he attended recently: • Santa Ana River Flood Protection Agency, where a State mandated audit is threatening the financial stability of the agency. Members will be asked to pay an additional $200 annually. • National Water Research Institute met with the Water Environment Research Foundation (WERF) to negotiate a possible MOU working with national scope. • Borders Committee, the new PedWest at the San Ysidro border crossing has been completed and will host a Grand Opening on July 15, 2016. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6. 54956.9(d)(2) & 54956.9(d)(1): The Board convened in closed session at 6:26 p.m. to discuss three items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:53 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel, Brad Hogin did not provide a report. 06/22/2016 Minutes of Board Meeting Page 9 of 10 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Murphy requested, and with no objection, the Chair announced that the Board of Directors Meeting scheduled for December 21, 2016 be rescheduled to December 14'"; the Administration Committee meeting scheduled for December 14, 2016 be cancelled; and a meeting of the Administration Committee be scheduled for January 11, 2016. ADJOURNMENT: At 6:34 p.m. Chair Nielsen adjourned the meeting until the Regular Board Meeting on July 27, 2016 at 6:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 06/22/2016 Minutes of Board Meeting Page 10 of 10 BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. — 07/27/16 AGENDA REPORT Item Item 2 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: DOIG DRIVE PROPERTY LEASE EXTENSION GENERAL MANAGER'S RECOMMENDATION Approve the First Amendment to the Doig Property Lease, to enter into a three (3) month lease extension of the Orange County Sanitation District's real property at 7311 Doig Drive, Garden Grove, in a form approved by General Counsel. BACKGROUND In 2006, the Sanitation District purchased the property at 7311 Doig Drive in Garden Grove to accommodate the expansion of collection system staffing. However, as a result of the transfer and anticipated transfer of local sewers to local service providers in the Cities of Costa Mesa, Newport Beach, Orange and Tustin and Unincorporated Orange County, it was later determined that this expansion was no longer necessary. Based on the Board's direction and subsequent action declaring the property surplus, staff had negotiated and entering into a five-year agreement to lease the property. The current agreement is set to expire this year. As part of the agreement, the tenant may elect to exercise one five-year option to extend the lease to ten years with annual rate increase of 2%.The tenant has formally requested to exercise the one five-year lease extension. During a review of the property, it was determined that seismic upgrades are required to maintain the property in good order and in compliance with safety codes. Completion of these repairs will be finished after the current lease agreement is set to expire. Therefore, staff and the tenant have mutually agreed to extend the current lease by three months before the tenant elects to exercise their five-year option to extend the agreement. RELEVANT STANDARDS N/A PROBLEM It has been determined that the Doig property requires seismic upgrade work that will not be compete before the current lease expiration date and may compromise some of the tenant's manufacturing operation for a period of time. Page 1 of 2 PROPOSED SOLUTION The lease extension will provide both parties the opportunity to assess the magnitude of the seismic upgrades and work collaboratively on potential lease relief should the work significantly impact the tenant's operations. TIMING CONCERNS Timing is of the essence due to impending repair work and an active lease agreement. RAMIFICATIONS OF NOT TAKING ACTION Current tenant could be adversely affected unless the lease extension is authorized. PRIOR COMMITTEE/BOARD ACTIONS December 2011 — Board of Directors authorized the lease at 7311 Doig Drive. November 2010— Board of Directors declared the property at 7311 Doig Drive as surplus property. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachments are included in hard copy and may also be viewed on-line at the OCSD websife (www.ocsd.com) with the complete agenda package: • First Amendment to the Doig Property Lease Page 2 of 2 FIRST AMENDMENT TO THE DOIG PROPERTY LEASE BY AND BETWEEN THE ORANGE COUNTY SANITATION DISTRICT AND APPF INCORPORATED,STERLING SLEEP SYSTEMS This First Amendment("Amendment")to the Doig Property Lease By And Between the Orange County Sanitation District And APPF Incorporated, Sterling Sleep Systems effective February 1, 2012 ("Lease") is entered into this June _, 2016 by and between the Orange County Sanitation District, ("OCSD" and "Lessor") and APPF Incorporated, Sterling Sleep Systems ("APPF' and "Lessee"). OCSD and APPF are collectively referred to herein as`"Ihe Parties". RECITALS A. WHEREAS, OCSD and APPF entered into the Lease for property located on Doig Drive in the City of Garden Grove effective February 1,2012 for a term of five years;and B. WHEREAS, the Lease contained an option the Lessee may exercise to extend the term of the Lease for an additional five years, however Lessee must provide 180 days or six months' notice of its intent to exercise this option;and C. WHEREAS, Lessee intends to exercise the option to extend the Lease for five years and Lessor intends to honor the terms of the Lease; and D. WHEREAS, it was recently discovered that the building needs significant seismic retrofitting repair work that may take several months to complete and may potentially impact Lessee's manufacturing operations during the time to complete the repairs; and E. WHEREAS, Lessor intends to hire a consultant to evaluate the repairs required and the scope of work necessary to complete the repairs to provide the Parties an understanding of the potential impact to Lessee's manufacturing operations; and F. WHEREAS,the consultant's evaluation will take several months to complete;and 1 muu.1 G. WHEREAS,the Parties agree it is best to extend the current lease by three months to allow the evaluation to be completed and the Parties to develop a plan to relieve any impact caused by the necessary repairs. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1. Extension of Lesse Term. The term of the current Lease shall be extended by three months and the original term of the Lease shall now terminate on April 30,2017. 2. Notice of Option to Extend Lease. Lessee shall have the option to extend the term of the Lease for an additional five years, however Lessee must provide notice of Lessee's intent to exercise this option to extend the Lease at least one hundred and eighty days prior to the termination date of the original Lease,or no later than November 1, 2016. 3. Rent. The rent schedule for 2016 shall remain the same during the three month extension of the original Lease. Lessee agrees to pay the current rate of$20,713 per month through April 30, 2017. Should Lessee exercise the option to extend the Lease for an addition five years, Lessee will resume payments in accordance with the Doig Property Rent Schedule attached as Addendum to the OCSD Commercial Lease,Doig Property on May 1,2017. 4. Entire Agreement. The Lease as amended by this Amendment constitutes the entire understanding between the parties and supersedes all prior negotiations or agreements between them pertaining to the subject matter hereof. 5. Lease Remains in Ef ecL All other terms and conditions in the Lease not expressly amended by or inconsistent with the purpose of this Amendment as set forth herein remain in full force and effect. 6. Authorized Signatories. APPF and its signatories herein covenant and represent that each individual executing this Amendment is a person duly authorized to execute this Lease Amendment for APPF. 2 un4v.r IN WITNESS WHEREOF, the Parties have executed this Amendment as of the day and year above written. "LESSOR" ORANGE COUNTY SANITATION DISTRICT Date: By: John Nielsen Chairman of the Board ATTEST: Kelly Lore Clerk of the Board APPROVED AS I'D FORM: Brad Hogin General Counsel "LESSEE" / APPF INCORPORATED,STERLING SLEEP SYSTEMS Date: ��` T By: President,Board of Directors 3 1171425.1 BOARD OF DIRECTORS Meeting Date TOBd.gfDir. -- 07/27/16 AGENDA REPORT Item Item 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CORRECTION TO BOARD ACTION: CHANGE ORDER TO BRENNTAG PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 GENERAL MANAGER'S RECOMMENDATION A. Approve an additional one-year optional renewal period of the Purchase Order Specification No. C-2013-560 for 25% Caustic Soda (Sodium Hydroxide) with Brenntag Pacificfor chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2017 through June 30, 2018, fora unit price of$560.52 per dry ton (delivery and applicable sales tax included) for a total estimated annual amount of $280,000; and B. Approve a (10%) unit price contingency. BACKGROUND In January 2016, the Board of Directors approved an increase to the existing Caustic Soda contract from $95,200 to $280,000 due to unforeseen additional requirements of the chemical. The recommendation to the Board, as written and approved, erroneously truncated the contract period by one option year from that originally approved in the contract. This request restores the fourth contract option year as originally agreed upon in the contract. RELEVANT STANDARDS • Zero odor incidents/events under normal operating conditions for Plants 1 and 2 • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise and lighting PROBLEM As documented in the Orange County Sanitation District Board meeting minutes of January 271b, 2016, the Board Moved, Seconded, and Duly carried to approve (as recommended) the following: "Approve a Change Order for an additional amount of $184,800 for 25% Caustic Soda (Sodium Hydroxide), Purchase Order Specification No. C-2013-560 with Brenntag Pacific for chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2015 through June 30, 2016, for a unit price of$560.52 per dry ton (delivery and applicable sales tax included)for a total estimated annual amount of $280,000 with one remaining year of renewal; ...and approve a (10%) unit price contingency." Page 1 of 2 The phrase "...one remaining year of renewal" should have been written as "...two remaining years of renewal:' The contract agreement, as originally agreed to with Brenntag Pacific, contained a contract period including four optional renewal years, the final year ending June 301h, 2018. The original recommendation approved by the Board in January 2016 was written in error. PROPOSED SOLUTION Approve the modified recommendation including two remaining optional renewal years for this contract. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION If not approved this contract will need to be rebid one year earlier than previously planned. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The original request to increase the contract amount for an additional $184,800 was as a result of Caustic Soda being used at an accelerated rate due to bleach chemical tank damages in 2015 and Plant No. 1 trunkline bioscrubbers construction in 2016. CECIA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. Date of Approval Contract Amount Continaencv Annual Budget $ 95,200 0112712016 Change Order $ 184,800 (10%)Unit Price ATTACHMENT The following attechment(s)may be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: N/A Page 2 of 2 BOARD OF DIRECTORS Meeting Date TOBd.ofDir. -- 07/27/16 AGENDA REPORT ItemNumber IemNumber a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: AGREEMENT WITH EAST ORANGE COUNTY WATER DISTRICT TO COLLECT CAPITAL FACILITY CAPACITY CHARGES ON BEHALF OF THE OCSD GENERAL MANAGER'S RECOMMENDATION Approve the agreement with East Orange County Water District for the collection of the Orange County Sanitation District Capital Facility Capacity Charges. BACKGROUND It is for the mutual benefit of Orange County Sanitation District (Sanitation District) and East Orange County Water District (EOCWD) that the capital facilities capacity charges (CFCC) be collected in a manner most expedient and least burdensome on the owners of property within the District. Beginning August 1, 2016, EOCWD will regulate the connections to its sewage facilities which are connected to those of the District. This agreement allows for EOCWD to collect the CFCC's on the District's behalf and remit to the Sanitation District on a monthly basis while retaining 5% of the fees collected as an administrative fee. This agreement is identical to the agreements that the Sanitation District has with all other local sewering agencies in our service area for the collection of CFCC's. RELEVANT STANDARDS • Ordinance OCSD-40 • LAFCO Resolution RO 14-01 • Supports transfer of local sewer lines to EOCWD. PROBLEM The Sanitation District no longer has a system for the collection of CFCC fees from property owners who desire to connect to the regional collection system now that the local sewers are owned by EOCWD. Page 1 of 2 PROPOSED SOLUTION Enter into the same agreement for the collection and remittance of CFCC fees that the Sanitation District has with the other local sewage agencies in its service area. TIMING CONCERNS Transfer of local sewer lines to EOCWD is scheduled for August 1, 2016. RAMIFICATIONS OF NOT TAKING ACTION Customers would be required to travel to the Sanitation District to pay the capital facility capacity charges before EOCW D would allow them to connect to the local sewer line. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: Agreement for Collection of Capital Facility Capacity Charges Page 2 of 2 AGREEMENT FOR COLLECTION OF CAPITAL FACH MS CAPACITY CHARGES THIS AGREEMENT,is made and entered into this day of June,2016,by and between the East Orange County WaterDistrict,hereinafter called"EOCWD,"and the Orange County Sanitation District,hereinafter called the'District"for the purpose of collecting capital facility capacity charges. WITNESSETH: WHEREAS, the District has by the enactment of Ordinance No. OCSD40 established a schedule of capital facilities capacity charges;and WHEREAS, a portion of the territory of EOCWD is within the area sewered by the District; and WHEREAS, EOCWD regulates all connections to its sewerage facilities and its sewerage facilities are connected to those of the District; and WHEREAS,it is far the mutual benefit of the District and EOCWD that the capital facilities capacity charges provided for in said Ordinance No.OCSD40 ofthe District be collected in a manner most expedient and least burdensome on the owners of property within the District;and WHEREAS,EOCWD will benefit by the construction and maintenance of sewerage facilities of the District within the boundaries of EOCWD from the funds to be collected from said capital facilities capacity charges. NOW THEREFORE,it is mutually agreed as follows: 1. EOCWD as agent of the District will and does hereby agree to issue permits and collect the charges established by The District under Ordinance No.OCSD40,as amended from time to time,for that area within EOC W D's jurisdiction (a) If EOCWD is presented with a dispute as to the validity, reasonableness, enforceability,or applicability of the charges agreed to be collected by it for the District,EOCWD may notify the District ofthe problem and the District shall take over the collection and enforcement ofits ordinances in subject cases. 2. The District shall prescribe those classifications of charges to be collected by EOCWD 3. EOCWD will acwrmt forihe charges collected andremitto The Districtmontlilythemornes socollectede cWtwprovidedmSection6hereof t uss�wr (a) EOCWD shall not be liable to the District for its unintentional and inadvertent fallure to collect a connection charge actually due The District or its tromentional or inadvertent miscalculation ofthe amormt ofthe charges,fee,or fees due to the District. 4. Aocedtnes mutually agreeable to EOCWD and the District shall be established for collection and remittance of said fees. 5. The District does hereby appoint and nominate EOCWD and its agents and employees as the same may be designated by EOCWD as agents of the District for the purpose of issuing hermits and deteuniuing and collecting the capital facilities capacitycharges established under Ordinance No.OCSD40 as amended This does not authorize EOCWD to act as Agent for the General Manager or to perform the duties ofthe General Manager ofthe District as set forth and established in said Ordinance No.OCSD40,as amended,excgrt as expressly set forth in this Agreement. 6. EOCWD agrees to act as agent for the District as herein provided for a fee equal to five percent (501.) of the fees collected by EOCWD for permits issued pursuant to the provisions of this Agreement,and the District agrees to pay said fee monthly. Said five percent(501.)fee of EOCWD shall be deducted from the charges collected by EOCWD and the remaining balance thereof shall be remitted to the District pursuant to Section 3 herein. (a) The District hereby agrees to hold EOCWD free and harmless of any and all liability that might arise if any such fees collected by EOCWD shall be detemtinedto have been illegally collected. This shall mean the repayment to EOCWD of any costs and expenses reasonably incurred in addition to the reimbursement of said illegally collected fees and damages in connection therewith. (b) The District agrees to provide legal services in the defense ofany action seeldng to collect capital facilities capacity fees alleged to have been illegally collected. 7. It is agreed that at the request of either party hereto, formal renegotiation of this Agreement shall be made at two years from the effective date hereof. 8. This agreement may be terminated by either party giving 90 day written notice to the other party designating a termination date,which date shall be the frost day of a calendar month 9. This Agreement shall become effective on the day of June, 2016. 2 us�sar ORANGE COUNTY SANITATION DISTRICT By Date: John Nielsen Chairman of the Board ATTEST: By Date: Kelly A. Lore Clerk of the Board APPROVED AS TO FORM: By Date: Bradley R. Hogin General Counsel EAST ORANGE COUNTY WATER DISTRICT By Date: President of the Board of Directors ATTEST: APPROVED AS TO FORM: General Counsel 3 usw.1 BOARD OF DIRECTORS Meeting Date TOBE.Or Dir. -- 07/27/16 AGENDA REPORT ItemNumber IemNumber s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: WASTE MANAGEMENT PROGRAM GENERAL MANAGER'S RECOMMENDATION Ratify a change order to P.O. 104652-OB, Specification S-2011-498, issued to Clean Harbors Environmental Services for waste disposal services for an additional $50,000 for a contract amount not to exceed $242,500 for the period of July 1, 2015 to June 30, 2016. BACKGROUND The July 1, 2015 to June 30, 2016 Clean Harbor Environmental Services purchase order is currently $192,500. Unforeseen and unplanned disposal costs have exhausted the purchase order. The Risk Management Division is requesting an additional $50,000 be added to the purchase order to cover the remainder of the previous fiscal year's outstanding invoices. RELEVANT STANDARDS Maintain environmental regulatory oversight by all regulators PROBLEM Unforeseen disposal costs primarily associated with unplanned special projects; engineering studies; and the disposal of radioactive materials, tank cleanings, and bird carcasses have exhausted the funds in last year's purchase order. PROPOSED SOLUTION Add additional funding to last year's purchase order to cover the costs of unforeseen waste disposal. TIMING CONCERNS Increase the purchase order amount so that the Orange County Sanitation District (Sanitation District) can process and pay its outstanding waste management invoices. Page 1 of 2 RAMIFICATIONS OF NOT TAKING ACTION Without the additional funding for last years purchase order, the Sanitation District cannot process and pay the outstanding invoices and may jeopardize the disposal of waste currently being generated by the organization. PRIOR COMMITTEE/BOARD ACTIONS Original contract and change order awarded in accordance with Resolution No. OCSD 07-04, Section 4.03, Subsection B, Award Approval 2012-13 Budget, Section 5, Page 11, for the period of July 1, 2012 to June 30, 2013, with four one-year renewal options. ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 2 of 2 BOARD OF DIRECTORS Meeting Date TOBE.Or Dk. -- 07/27/16 AGENDA REPORT Item Item fi Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF JUNE 2016 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the Investment Transactions for the month of June 2016. 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, 2016. RELEVANT STANDARDS • CA Government Code: Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attechment(s)are included in hard copy and may also be viewed on-line at the OCSD website (mm w.ocsd.com) with the complete agenda package: • Report on the Investment Transactions for the month ended June 30, 2016 Page 1 of 1 C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss ACQUISITIONS Purchase 06/01/2016 261908107 174,019.80 Dreyfus Shod Intermediate Gov Treasury 1.000 0.24% 174,019.80 0.00 174,019.80 0.00 Cash Management Fd521 Purchase 06/02/2016 261908107 1,670.11 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,670.11 0.00 1,670.11 0.00 Cash Management Fd521 Purchase 06/02/2016 261908107 1,802.51 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,802.51 0.00 1,802.51 0.00 Cash Management Fd521 Purchase 06/05Q016 261908107 11,040.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 11,040.00 0.00 11,040.00 0.00 Cash Management Fd521 Purchase 06/06/2016 261908107 2,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,000,000.00 0.00 2,000,000.00 0.00 Cash Management Fd521 Purchase 06/07/2016 261908107 9,202.14 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 9,202.14 0.00 9,202.14 0.00 Cash Management Fd521 Purchase 06/07/2016 94974BFD7 1,000,000.00 Wells Fargo Carp Note 100.855 1.16% 1,008,550.00 1,691.67 1,010,241.67 0.00 2A%Due 5/8/2017 Purchase 06/08/2016 3135G0ES8 1,977,000.00 FNMA Note 100.376 0.51 % 1,984,433.52 1,736.74 1,986,170.26 0.00 1.375%Due 11/15/2016 Purchase 06/09/2016 261908107 25,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 25,000.00 0.00 25,000.00 0.00 Cash Management Fd521 Purchase 06/09/2016 3137EACW7 2,000,000.00 FHLMC Note 100.353 0.32% 2,007,060.00 11,555.66 2,018,615.56 0.00 2%Due 8/25/2016 Purchase 06/12/2016 261908107 43,750.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 43,750.00 0.00 43,750.00 0.00 Cash Management Fd521 Purchase 06/13/2016 037833AM2 1,000,000.00 Apple Inc Note 100.259 0.76% 1,002,590.00 1,079.17 1,003,669.17 0.00 1.05%Due 5/5/2017 Purchase 06/13Q016 172751RAT9 1,000,000.00 Cisco Systems Note 100.266 0.73% 1,002,660.00 3,055.56 1,005,715.56 0.00 I A%Due 3/3/2017 Purchase 06/14/2016 261908107 28,125.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 28,125.00 0.00 28,125.00 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 39,642.14 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 39,642.14 0.00 39,642.14 0.00 Cash Management Fd521 Purchase 06/15Q016 261908107 35,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 35,000.00 0.00 35,000.00 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 14,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 14,000,000.00 0.00 14,000,000.00 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 2,104.17 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,104.17 0.00 2,104.17 0.00 Cash Management Fd521 Purchase 06/15Q016 261908107 286,908.37 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 286,908.37 0.00 286,908.37 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 2,742.67 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,742.67 0.00 2,742.67 0.00 Cash Management Fd521 Chmdler Ass&Management-CONFIDENTIAL Execution Time:7dV20167:43:23 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 06/15/2016 261908107 253,360.61 Dreyfus Shod IntermediateGov Treasury 1.000 0.24% 253,360.61 0.00 253,360.61 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 203,834.64 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 203,834.64 0.00 203,834.64 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 3,355.33 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,355.33 0.00 3,355.33 0.00 Cash Management Fd521 Purchase 06/15Q016 261908107 22.37 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 22.37 0.00 22.37 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 1,048.29 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,048.29 0.00 1,048.29 0.00 Cash Management Fd521 Purchase 06/15/2016 261908107 1,211.37 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,211.37 0.00 1,211.37 0.00 Cash Management Fd521 Purchase 06/16/2016 261908107 2,485.41 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,485.41 0.00 2,485.41 0.00 Cash Management Fd521 Purchase 06/16/2016 261908107 26,044.04 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 26,044.04 0.00 26,044.04 0.00 Cash Management Fd521 Purchase 06/17/2016 261908107 985,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 985,000.00 0.00 985,000.00 0.00 Cash Management Fd521 Purchase 06/17/2016 3135GDCM3 250,000.00 FNMA Note 100.203 0.52% 250,507.50 685.76 251,193.26 0.00 1.25%Due 9/28/2016 Purchase 06/17/2016 3135GDCM3 1,695,000.00 FNMA Note 100.233 0.42% 1,698,949.35 4,649.48 1,703,598.83 0.00 1.25%Due 9/28/2016 Purchase 06/20/2016 21687AMK6 1,000,000.00 Rabobank Nederland NV NV Discount CP 99.575 0.86% 995,753.33 0.00 995,753.33 0.00 0.84%Due 12/19/2016 Purchase 06/20/2016 261908107 1,075,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,075,000.00 0.00 1,075,000.00 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 120,626.78 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 120,626.78 0.00 120,626.78 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 2,158.88 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,158.88 0.00 2,158.88 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 695.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 695.00 0.00 695.00 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 286.61 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 286.61 0.00 286.61 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 2,359.20 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,359.20 0.00 2,359.20 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 74.37 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 74.37 0.00 74.37 0.00 Cash Management Fd521 Purchase 06/20/2016 261908107 2,080.01 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,060.01 0.00 2,080.01 0.00 Cash Management Fd521 Chandler Asset Management-CONFIDENTIAL Execution Time:7dV2016 7:43:23 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss ACQUISITIONS Purchase 06/20/2016 3135GOES8 2,160,000.00 FNMA Note 100.364 0.47% 2,167,862.40 2,887.50 2,170,749.90 0.00 1,375%Due 11/15/2016 Purchase 06/20/2016 912828LU2 3,000,000.00 US Treasury Note 100.996 0.36% 3,029,892.86 12,992.53 3,042,885.39 0.00 3.125%Due 10/31/2016 Purchase 06/212016 261908107 295,201.87 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 295,201.87 0.00 295,201.87 0.00 Cash Management Fd521 Purchase 06/222016 261908107 37,500.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 37,500.00 0.00 37,500.00 0.00 Cash Management Fd521 Purchase 06/22/2016 3137EADS5 3,000,000.00 FHLMC Note 100.132 0.45% 3,003,960.00 4,958.33 3,008,918.33 0.00 0.875%Due 10/14/2016 Purchase 06/232016 261908107 1,200,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,200,000.00 0.00 1,200,000.00 0.00 Cash Management Fd521 Purchase 06/24/2016 06406HCA5 1,000,000.00 Bank of New York Callable Note Cont. 100.812 0.95% 1,008,120.00 10,466.67 1,018,586.67 0.00 12118116 2.4%Due 1/17/2017 Purchase 06/24/2016 261908107 6,370,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 6,370,000.00 0.00 6,370,000.00 ODD Cash Management Fd521 Purchase 06/24/2016 261908107 15,275.000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 15,275,000.00 0.00 15,275,000.00 0.00 Cash Management Fd521 Purchase 06/24/2016 313384ZH5 2,400,000.00 FHLB Discount Note 99.985 0.29% 2,399,632.66 0.00 2,399,632.66 0.00 0.29%Due 711 312 01 6 Purchase 06/24/2016 713448CLO 500,000.00 Pepsloo Inc.Note 100.143 0.73% 500,715.00 1,609.72 502,324.72 ODD 0.95%Due 212212017 Purchase 06/24/2016 912796,1136 7,500,000.00 US Treasury Bill 99.988 0.22% 7,499,081.25 0.00 7,499,081.25 0.00 0.22%Due 7/1412016 Purchase 06/27/2016 261908107 5,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 5,000,000.00 0.00 5,000,000.00 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 366.76 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 366.76 0.00 366.76 0.00 Cash Management Fd521 Purchase 06/27/2016 261906107 7.813.15 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 7,813.15 0.00 7,813.15 ODD Cash Management Fd521 Purchase 0627/2016 261908107 1,658.09 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,658.09 0.00 1,658.09 0.00 Cash Management Fd521 Purchase 06/272016 261908107 483.54 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 483.54 0.00 483.54 ODD Cash Management Fd521 Purchase 06/272016 261906107 5,677.70 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 5,677.70 0.00 5,677.70 0.00 Cash Management Fd521 Purchase 06/272016 261908107 60.79 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 60.79 0.00 60.79 0.00 Cash Management Fd521 Chandler Ass&Management-CONFIDENTIAL Execution Tno 716Q0167:43:23 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10263 5/31/16 Thru 6/30/16 Transaction Settlement Acql Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase O612712016 261908107 10,923.08 Dreyfus Shod IntermediateGov Treasury 1.000 0.24% 10,923.08 0.00 10,923.08 0.00 Cash Management Fd521 Purchase O6/27/2016 261908107 1,018.01 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,018.01 0.00 1,018.01 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 944.88 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 944.88 0.00 944.88 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 11,628.70 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 11,628.70 0.00 11,628.70 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 1,064.22 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,054.22 0.00 1,064.22 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 11,333.59 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 11,333.59 0.00 11,333.59 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 10,366.07 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 10,366.07 0.00 10,366.07 0.00 Cash Management Fd521 Purchase O6/27/2016 261908107 3,188.25 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,188.25 0.00 3,188.25 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 169.92 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 169.92 0.00 169.92 0.00 Cash Management Fd521 Purchase 06/27/2016 261908107 39,280.55 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 39,280.55 0.00 39,280.55 0.00 Cash Management Fd521 Purchase 06/27/2016 3133M=5 1,547,000.00 FHLB Discount Note 99.973 0.30% 1,546,587.47 0.00 1,546,587.47 0.00 0.3%Due 7/29/2016 Purchase 06/28/2016 06538BKS1 6,630,000.00 Bank of Tokyo Mitsubishi NV Discount CP 99.753 0.75% 6,613,645.98 0.00 6,613,645.98 0.00 0.74%Due 1 012 6/2 01 6 Purchase 06/28/2016 06538BKS1 1,290,000.00 Bank of Tokyo Mitsubishi NV Discount CP 99.753 0.75% 1,285,818.00 0.00 1,285,818.00 0.00 0.74%Due 1 012 6/2 01 6 Purchase 06/28/2016 261908107 3,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,000,000.00 0.00 3,000,000.00 0.00 Cash Management Fd521 Purchase 06/28/2016 3133M=6 4,150,000.00 FHLB Discount Note 99.974 0.30% 4,148,927.92 0.00 4,148,927.92 0.00 0.3%Due 7/29/2016 Purchase 06/29/2016 3137EADS5 225,000.00 FHLMC Note 100.128 0.43% 225,288.00 410.16 225,698.16 0.00 0.875%Due 10/14/2016 Purchase O6/30/2016 261908107 81,250.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 81,250.00 0.00 81,250.00 0.00 Cash Management Fd521 Purchase 06/30/2016 261908107 3,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,000,000.00 0.00 3,000,000.00 0.00 Cash Management Fd521 Purchase 06/30/2016 3135GOJ20 5,000,000.00 FNMA Note 101.162 1.12% 5,058,100.00 23,680.55 5,081,780.55 0.00 1.375%Due 2126/2021 Purchase O6/30/2016 459516A67 3,000,000.00 International Finance Corp Discount Note 99.967 0.35% 2,999,008.32 0.00 2,999,008.32 0.00 0.35%Due 8/3/2016 Chandler Asset Management-CONFIDENTIAL E. Wion Tme:7dV20167:43:23 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Data CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 06/30/2016 912828WF3 3,000,000.00 US Treasury Note 100.110 0.33% 3,003,291.30 2,343.75 3,005,635.05 000 0625%Due 11/15/2016 Subtotal 108,029,578.99 108,147,013.85 83,803.15 108,230,817.00 0.00 Security 06/16/2016 261908107 26,044.04 Dreyfus Short-Intermediate Gov Treasury 1.000 26,044.04 0.00 26,044.04 0.00 Contribution Cash Management Fd521 Security 06/30/2016 912828WUO 49,296.00 US Treasury Inflation Index Note 100.000 49,296.00 0.00 49,296.00 0.00 Contribution 0A25%Due 7115/2024 Subtotal 75,340.04 75,340.04 0.00 75,340.04 0.00 TOTAL ACQUISITIONS 108,104,919.03 108,222,353.89 83,803.15 108,306,157.04 0.00 DISPOSITIONS Sale 06/07/2016 261908107 1,010,24167 Dreyfus Short-Intermediate Gov Treasury 1.000 024% 1,010,241.67 0.00 1,010,241.67 000 Cash Management Fd521 Sale 06/082016 261908107 1,986,170.26 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,986,170.26 0.00 1,986,170.26 0.00 Cash Management Fd521 Sale 06/09/2016 261908107 2,018,615.56 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,018,615.56 0.00 2,018,615.56 0.00 Cash Management Fd521 Sale 06/13/2016 261908107 2,009,384.73 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,009,384.73 0.00 2,009,394.73 0.00 Cash Management Fd521 Sale 06/17/2016 261908107 1,954,792.09 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,954,792.09 0.00 1,954,792.09 0.00 Cash Management Fd521 Sale 06/20/2016 261908107 995,753.33 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 995,753.33 0.00 995,753.33 0.00 Cash Management Fd521 Sale 06/20/2016 261908107 5,213,635.29 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 5,213,635.29 0.00 5,213,635.29 0.00 Cash Management Fd521 Sale 06222016 261908107 3,008,918.33 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,008,918.33 0.00 3,008,918.33 0.00 Cash Management Fd521 Sale 06/24/2016 261908107 1,520,911.39 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,520,911.39 0.00 1,520,911.39 0.00 Cash Management Fd521 Sale 06/24/2016 261908107 9,898,713.91 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 9,898,713.91 0.00 9,898,713.91 0.00 Cash Management Fd521 Sale 0627/2016 261908107 1,546,587.47 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,546,587.47 0.00 1,546,587.47 0.00 Cash Management Fd521 Sale 06282016 261908107 6,613,645.98 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 6,613,645.98 0.00 6,613,645.98 0.00 Cash Management Fd521 Sale 06282016 261908107 1,286,818.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 1,286,818.00 0.00 1,286,818.00 0.00 Cash Management Fd521 Chandler Asset Management-CONFIDENTIAL Execution Tme:7/6Q0167:43:23 AM C/" Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss DISPOSITIONS Sale 06/28/2016 261908107 4,148,927.92 Dreyfus Shod Intermediate Gov Treasury 1.000 0.24% 4,148,927.92 0.00 4,148,927.92 0.00 Cash Management Fd521 Sale 06/29/2016 261908107 225,698.16 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 225,698.16 0.00 225,698.16 0.00 Cash Management Fd521 Sale 06/30/2016 261908107 5,081,780.55 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 5,081,780.55 0.00 5,081,780.55 0.00 Cash Management Fd521 Sale 06/30/2016 261908107 3,005,635.05 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 3,005,635.05 0.00 3,005,635.05 0.00 Cash Management Fd521 Sale 06/30/2016 261908107 2,999,008.32 Dreyfus Short-Intermediate Gov Treasury 1.000 0.24% 2,999,008.32 0.00 2,999,008.32 0.00 Cash Management Fd521 Subtotal 54,525,238.01 54,525,238.01 0.00 54,525,238.01 0.00 Paydown 06/01/2016 3837H4NX9 1,180.42 GNMA PooI#2000-9 100.000 1,18042 30.95 1,211.37 0.00 9.5%Due 2`IM030 Paydown 06/07/2016 62888UAA8 8,862.47 NCUA Guaranteed Note CM02010-R2Due 100.000 8,862.47 339.67 9,202.14 0.00 11/6/2017 Paydown 06/15/2016 161571GC2 0.00 Chase CHAIT Pool#2013-A8 100.000 0.00 2,104.17 2,104.17 0.00 1.01%Due 10/15/2018 Paydown 06/15/2016 3133TCE95 2,341.75 FHLMC FSPC E3 A 100.000 2,341.75 143.66 2,485.41 0.00 2.892%Due 8/15/2032 Paydown 06/15/2016 31348SWZ3 17.08 FHLMC FH 786064 100.000 17.08 2.69 19.77 0.00 2.262%Due 1/1/2028 Paydown 06/15/2016 43814OAC2 0.00 Honda Auto Receivables 2016-2 A3 100.000 0.00 1,048.29 1,048.29 0.00 1.39%Due 4/1 512 0 2 0 Paydown 06/15/2016 477877AD6 283,429.54 John Deere Owner Twat 2014-B A3 100.000 283,429.54 3,478.83 286,908.37 0.00 1.07%Due 11/15/2018 Paydown 06/15/2016 47788MAG4 0.00 John Deere Owner Trust 2016-A A3 100.000 0.00 2,742.67 2,742.67 0.00 1.36%Due 4/1 512 0 2 0 Paydown 06/15/2016 89231 MAC9 252,220.75 Toyota Auto Receivables Owner 2014-A 100.000 252,220.75 1,139.86 253,360.61 0.00 0.67%Due 12/15/2017 Paydown 06/15/2016 89231TAB6 202,413.59 Toyota Auto Receivables Owner 2015-C 100.000 202,413.59 1,421.05 203,834.64 0.00 0.92%Due V15/2018 Paydown 06/15/2016 89236WAC2 0.00 Toyota Auto Receivables Owner 2015-A 100.000 0.00 3,355.33 3,355.33 0.00 1.12%Due VI5/2019 Paydown 06/20/2016 36225CAZ9 649.15 GNMA Poo1#G280023 100.000 649.15 45.85 695.00 0.00 2.816%Due 12/20/2026 Paydown 06/20/2016 36225CC20 234.27 GNMA Pool#G280088 100.000 234.27 52.34 286.61 0.00 2.817%Due 6/20/2027 Chandler Asset Management-CONFIDENTIAL E. Wion Tno 7dV2016 7:43:23 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss DISPOSITIONS Paytlown 06/20/2016 36225CN28 2,227.62 GNMA P0o1#G2 80408 100.000 2,227.62 131.58 2,359.20 0.00 2 691%Due 5/20/2030 Paytlown 06/20/2016 36225CNM4 58.03 GNMA Poo1#G280395 100.000 58.03 16.34 74.37 0.00 2.877%Due 4120/2030 Paytlown 06/20/2016 W225DCBB 1,929.38 GNMA Poo1#G280965 100.000 1,929.38 150.63 2,080.01 0.00 2.31%Due 7/20/2034 Paytlown 06/20/2016 4381413AC4 119,796.05 Honda Auto Receivables 2014-2 A3 100.000 119,796.05 830.73 120,626.78 0.00 0.77%Due 3/19/2018 Paytlown 06/20/2016 43814NAB1 0.00 Honda Auto Receivables 2016.1 A2 100.000 0.00 2,158.88 2,158.88 0.00 1.01%Due 6/18/2018 Paytlown 06/212016 43813JAC9 294,022.39 Honda Auto Receivables 2014-1 A3 100.000 294,022.39 1,179.48 295,201.87 0.00 0.67%Due 11121/2 01 7 Paytlown 06/252016 313MJY35 4,614.91 FHLMC FSPC T-582A 100.000 4,614.91 5,751.16 10,366.07 0.00 6.5%Due 9/25/2043 Paytlown 06/27/2016 03215PFN4 0.00 AMRESCO Residen8al Seventies 1999-1 100.000 0.00 169.92 169.92 0.00 ADue 6/2512029 Paytlown 06/27/2016 31371NUC7 257.29 FNMA FN 257179 100.000 257.29 109.47 366.76 0.00 4.5%Due 4/1/2028 Paytlown 06/27/2016 31376KT22 6,954.17 FNMA FN 357969 100.000 6,954.17 858.98 7,813.15 0.00 5%Due 9/1/2035 Paytlown 06/27/2016 31381 PDA3 591.95 FNMA FN 466397 100.000 591.95 1,066.14 1,658.09 0.00 3.4%Due 11/1/2020 Paytlown 06/27/2016 3138EG6F6 399.43 FNMA FN AL0869 100.000 399.43 84.11 483.54 0.00 4.5%Due 6/1/2029 Paytlown 06/27/2016 31396X3Q5 39,221.13 FNMA FNR 2007-114 A6Due 10/27/2037 100.000 39,221.13 59.42 39,280.55 0.00 Paytlown 06/27/2016 31397QRED 10,952.76 FNMA FNR 2011-3 FA 100.000 10,952.76 380.83 11,333.59 0.00 OS32%Due 21252041 Paytlown 06/27/2016 31398VJ98 0.00 FHLMC FHMS K006 A2 100.000 0.00 3,188.25 3,188.25 0.00 4.251%Due 1/252020 Paytlown 06/272016 31403DJZ3 4,845.96 FNMA PODI#745580 100.000 4,846.96 831.74 5,677.70 0.00 5%Due 6/12036 Paytlown 06/272016 31403GXF4 35.91 FNMA PODI#FN 748678 100.000 35.91 24.88 60.79 0.00 5%Due 10/1/2033 Paytlown 0627/2016 31406PQYB 9,420.06 FNMA Pool#FN 815971 100.000 9,420.06 1,503.02 10,923.08 0.00 5.47%Due 3/1/2035 Paytlown 06/272016 31406MV75 626.88 FNMA PODI#FN 823358 100.000 626.88 391.13 1,018.01 0.00 2.875%Due 211/2035 Paytlown 06/272016 31407BXH7 790.10 FNMA PODI#FN 826080 100.000 790.10 154.78 944.88 0.00 5%Due 7/l2035 Chandler Asset Management-CONFIDENTIAL Execution Time 7/6/20167:43:23 AM CAROrangeCounty Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Sent...at Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss DISPOSITIONS Paydown 06/27/2016 31410F4V4 9,964.32 FNMA Pool#FN 888336 100.000 9,95,1 32 1,664.38 11,628.70 000 5%Due 7/t/2036 Paydown 06/27/2016 31417YAY3 932.29 FNMA Pool#FIN MA0022 100.000 932.29 131.93 1,064.22 0.00 4.943%Due 4/1/2029 Subtotal 1,258,989.65 1,258,989.65 36,743.14 1,295,732.79 0.00 Maturlry 06/06/2016 313396XU2 2,000,000.00 FHLMC Discount Note 100.000 2,000,000.00 0.00 2,000,000.00 0.00 0.36%Due 6/6/2016 Maturity 06/15/2016 912828VG2 14,000,000.00 US Treasury Note 100.000 14,000,000.00 0.00 14,000,000.00 0.00 0.5%Due 6/1 512 01 6 Maturity 06/17/2016 313384YFO 985,000.00 FHLB Discount Note 100.000 985,000.00 0.00 985,000.00 0.00 0.57%Due 6/17/2016 Maturity 06/20/2016 313312YJ3 1,075,000.00 FFCB Discount Note 100.000 1,075,000.00 0.00 1,075,000.00 0.00 0.59%Due 6/20/2016 Maturity 06/23/2016 89233GFP6 1,200,000.00 Toyota Motor Credit Discount CP 99.803 1,200,000.00 0.00 1,200,000.00 0.00 0.59%Due 6/23/2016 Maturlry 06/24/2016 06538BF01 6,370,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99.769 6,370,000.00 0.00 6,370,000.00 0.00 0.7%Due 6/24/2016 Mal 06/24/2016 06538BF01 1,275,000.00 Bank of Tokyo Mitsubishi NY Discount CP 99.769 1,275,000.00 0.00 1,275,000.00 0.00 0.7%Due 612 412 01 6 Maturity 06/24/2016 313384YN3 14,000,000.00 FHLB Discount Note 100.000 14,000,000.00 0.00 14,000,000.00 0.00 0.434%Due 6/24/2016 Maturity 06/27/2016 313396YR8 5,000,000.00 FHLMC Discount Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00 0.23%Due 6/27/2016 Maturity 06/28/2016 69372AFUl 3,000,000.00 Paccar Financial Discount CP 99.963 3,000,000.00 0.00 3,000,000.00 0.00 0.39%Due 6/28/2016 Matunly 06/30/2016 30229AFW4 3,000,000.00 Exxon Mobil Discount CP 99.922 3,000,000.00 0.00 3,000,000.00 0.00 0.4%Due 6/30/2016 Subtotal 51,905,000.00 51,905,000.00 0.00 51,905,000.00 0.00 Security 06/16/2016 261908107 26,044.04 Dreyfus Short-Intermediate Gov Treasury 1.000 26,044.04 0.00 26,044.04 0.00 Withdrawal Cash Management Fd521 Security 06/24/2016 261908107 12,500,000ol) Dreyfus Short-Intermediate Gov Treasury 1.000 12,500,000.00 0.00 12,500,000.00 0.00 Withdrawal Cash Management Fd521 Subtotal 12,526,044.04 12,526,044.04 0.00 12,526,044.04 0.00 TOTAL DISPOSITIONS 120,215,271.70 120,215,271.70 36,743.14 120,252,014.84 0.00 Chandler Asset Management-CONFIDENTIAL Execution Time.7/6/2016 7:43:23 M4 �'" Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss OTHER TRANSACTIONS Interest 06/01/2016 060505DP6 3,800,000.00 Bank Of America Corp Note 0.000 109,250.00 0.00 109,250.00 0.00 575%Due 1 21112 01 7 Interest 06/01/2016 73358WAG9 2,440,000.00 Port Authority of NY&NJ TE-REV 0.000 64,769.80 0.00 64,769.80 0.00 5.309%Due 12/12019 Interest 06/052016 166764AA8 2,000,000.00 Chevron Corp Callable Note Cont 11/5M7 0.000 11,040.00 0.00 11,040.00 0.00 1 A 04%Due 12/52017 Interest 06/092016 313379FW4 5,000,000.00 FHLB Note 0.000 25,000.00 0.00 25,000.00 0.00 1%Due 6/92017 Interest 06/12/2016 313383HU8 5,000,000.00 FHLB Note 0.000 43,750.00 0.00 43,750.00 0.00 1.75%Due 6/1212020 Interest 06/142016 3135GOG72 5,000,000.00 FNMA Note 0.000 28,125.00 0.00 28,125.00 0.00 1 A 25%Due 12/142018 Interest 06/152016 458140AL4 2,000,000.00 Intel Corp Note 0.000 13,500.00 0.00 13,500.00 0.00 1.35%Due 1 211 5/2 01 7 Interest 06/15/2016 459058EJB 5,000,000.00 Infl.Bank Recon&Development Note 0.000 25,000.00 0.00 25,000.00 0.00 1%Due 6/15/2018 Interest 06/152016 912828VG2 14,000,000.00 US Treasury Note 0.000 35,000.00 0.00 35,000.00 0.00 0.5%Due 6/152016 Interest 06/152016 94988J210 500,000.00 Wells Fargo Bank Callable Note Obly 0.000 1,142.14 0.00 1,142.14 0.00 6/15/2016 0.916%Due 6/15/2017 Interest 06/22/2016 3135GOD75 5,000,000.00 FNMA Note 0.000 37,500.00 0.00 37,500.00 ODD 1.5%Due 6/22/2020 Interest 06/302016 912828WS5 10,000,000DI) US Treasury Note 0.000 81,250.00 0.00 81,250.00 0.00 1.625%Due 6/30/2019 Subtotal 59,740,000.00 475,326.94 0.00 475,326.94 0.00 Divitlentl 06/02/2016 261908107 5,881,879.69 Dreyfus Short-Intermediate Gov Treasury 0.000 1,802.51 0.00 1,802.51 0.00 Cash Management Fd521 Dividend 06/02/2016 261908107 10,750,101.02 Dreyfus Short-Intermediate Gov Treasury 0.000 1,670.11 0.00 1,670.11 0.00 Cash Management Fd521 Subtotal 16,631,980.71 3,472.62 0.00 3,472.62 0.00 Cash Capital 06/162016 525ESCOY6 ODD Lehman Brothers Note-DefaultedDue 0.000 20,017.47 0.00 20,017.47 goo Distribution 1 0/2 212 0 4 9 Chorus,Asset Management-CONFIDENTIAL E. Wion Tme:7/64!0167:43:23 AM �/" Orange County Sanitation District Consolidated Transaction Ledger Account#10283 5/31/16 Thru 6/30/16 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss OTHER TRANSACTIONS Cash Capital 06/16/2016 525ESCIB7 0.00 Lehman Brothers Note-Defaulted Due 0.000 6 026.57 0.00 6,026.57 0.00 Distribution 1/24/2017 Subtotal D.00 26,044.04 0.00 26,044.04 0.00 TOTAL OTHER TRANSACTIONS 76,371,980.71 504,843.60 0.00 504,843.60 0.00 Chorus,Assat Management-CONFIDENTIAL E. Wion Time:]/6Y2016743:23 AM ITEM NO. 7 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, June 1, 2016, 5:00 p.m. A regular meeting of the Operations Committee was called to order by Committee Chair Withers on Wednesday, June 1, 2016 at 5:03 p.m. in the Administration Building. Director Murphy led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Jim Herberg, General Manager David Shawver, Vice-Chair Bob Ghirelli, Assistant General Manager Tom Beamish Celia Chandler, Director of Human Resources Ellery Deaton Rob Thompson, Director of Engineering Steve Jones Ed Torres, Director of Operations and Maintenance Robert Kiley Tina Knapp, Deputy Clerk of the Board Richard Murphy Jennifer Cabral Steve Nagel Mike Dorman Fred Smith Dean Fisher Michelle Steel Alfredo Garcia Chad Wanks Mark Manzo Mariellen Yarc Kathy Millea Greg Sebourn, Board Vice-Chair Jeff Mohr Wendy Sevenandt COMMITTEE MEMBERS ABSENT: Richard Spencer John Nielsen, Board Chair Mike White Mickey Whitney Eros Yong OTHERS PRESENT: Brad Hogin, General Counsel Michael Beverage, Alternate Director YLWD Bob Ooten, Alternate Director CMSD PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. 06/01/2016 Operations Committee Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED SECONDED, and DULY CARRIED TO: Approve Minutes of the May 4, 2016 Operations Committee Meeting. AYES: Beamish, Deaton, Jones, Kiley, Murphy, Nagel, Sebourn, Shawver, F. Smith, Steel, Wanks, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Nielsen 2. ON-CALL CONTRACTOR SUPPORT SERVICES (Ed Torres) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Approve Amendment No. 1 to the On-Call Contractor Support Services Contract, Specification No. S-2011.483BD, with Jamison Engineering Contractors, Inc., providing for construction support, extending the contract period for a four month period from July 1, 2016 to October 31. 2016, with no increase to the contract amount. AYES: Beamish, Deaton, Jones, Kiley, Murphy, Nagel, Sebourn, Shawver, F. Smith, Steel, Wanks, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Nielsen 3. PLANT WATER SYSTEM REHABILITATION AT PLANT NO, 2, PROJECT NO. P2-101 (Rob Thompson) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: Recommend to the Board of Directors to: Approve a project budget increase of$150,000 for Plant Water System Rehabilitation at Plant No. 2 included in the Proposed Budget for Fiscal Years 2016-17 and 2017-18 scheduled to be approved at the June 22, 2016 Board of Directors meeting. AYES: Beamish, Deaton, Jones, Kiley, Murphy, Nagel, Sebourn, Shawver, F. Smith, Steel, Wanke, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Nielsen 0 6/01/201 6 Operations Committee Minutes Page 2 of 5 NON-CONSENT CALENDAR: 4. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 (Rob Thompson) Director of Engineering Rob Thompson provided an informative PowerPoint presentation pertaining to both Items 4 and 5. The presentation included information regarding the implementation plan for the Administrative Facilities, impacts of the Orange County Transportation Authority 1-405 Improvement Plan, and North and Pacific location alternatives as required by the California Environmental Quality Act (CEQA). Mr. Thompson responded to questions from the Committee regarding overall project costs, additional items included in the project, and the proposed alternative locations. A motion was made and seconded and Items 4 and 5 were approved as one single action. MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Services Agreement with LSA Associates, Inc. to provide environmental services for the preparation of a California Environmental Quality Act compliant document for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128 for an amount not to exceed $420,927; and B. Approve a contingency of$42,093 (10%). 5. HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P7-128 (Rob Thompson) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with HDR Architecture, Inc. to provide architectural and engineering design services for the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. Pt-128, for an amount not to exceed $11,785,709; and B. Approve a contingency of$1.178,571 (10%). AYES: Beamish, Deaton, Jones, Kiley, Murphy, Nagel, Seboum, Shawver, F. Smith, Steel, Wanke, Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Nielsen 0MV2016 Operations Committee Minutes Page 3 of 5 INFORMATION ITEMS: 6. WORKFORCE PLANNING (Celia Chandler) Director of Human Resources Celia Chandler provided a brief overview of this item and introduced Richard Spencer, Human Resources Manager. Mr. Spencer provided a PowerPoint presentation with an overview of the organizational structure and demographics of the Orange County Sanitation District including attrition and retirement eligibility statistics. Mr. Spencer's presentation also included planning for future needs of the workforce and planning for these needs. Mr. Spencer responded to questions from the Committee regarding the percentage of employees eligible for employment, and how it compares to similar agencies, and the recruitment process. 7. 2016-1712017.18 BUDGET PRESENTATION (Lorenzo Tyner) Director of Finance and Administrative Services Lorenzo Tyner provided a brief overview of this item and introduced Controller Mike White, who provided a PowerPoint presentation on the proposed budget for fiscal years 2016-17 and 2017-18. The presentation included major revenue components, a comparison of single family residential rates between comparable agencies, anticipated performance of property tax revenue, outlay categories, a summary of proposed operating expenses, Capital Improvement Program (CIP) components, and debt issuances. Mr. White and Mr. Herberg responded to questions from the Committee regarding what percentage of revenue represents CIP costs. Mr. Tyner indicated that the budget will be presented to the Administration Committee and Board of Directors for approval in June. Mr. Tyner also responded to a questions and comments from the Committee regarding unfunded liability and the release of actuarial reporting. DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 06/01/2016 Operations Committee Minutes Page 4 of 5 ADJOURNMENT At 6:09 p.m., Committee Chair Withers declared the meeting adjourned to the next scheduled meeting of Wednesday, July 6, 2016 at 5:00 p.m. Submitted by, Tina Knapp Deputy Clerk of the Board OW12016 Operetions Committee Minutes Page 5 of 5 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, June 8, 2016 at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Curry on June 8, 2016 at 5:00 p.m. in the Administration Building of the Orange County Sanitation District. Vice-Chair Sebourn led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Keith Curry, Chair Jim Herberg, General Manager Lucille Kring, Vice-Chair Bob Ghirelli, Assistant General Manager Steven Choi Celia Chandler, Director of Human Resources Diana Fascenelli (Alternate) Jim Colston, Director of Environmental Services Jim Ferryman Rob Thompson, Director of Engineering Peter Kim Ed Torres, Director of Operations & Maintenance At Krippner(Alternate) Lorenzo Tyner, Director of Finance & Erik Peterson (Alternate) Administrative Services Sal Tinajero Kelly Lore, Clerk of the Board John Nielsen, Board Chair Cindi Ambrose Greg Seboum, Board Vice-Chair Jennifer Cabral Anne Marie Feery COMMITTEE MEMBERS ABSENT: Al Garcia Glenn Parker Lori Khajadourian Teresa Smith Mark Manzo Rich Spencer John Swindler Brent Wride OTHERS PRESENT: Brad Hogin, General Counsel PUBLIC COMMENTS: None. REPORT OF COMMITTEE CHAIR: Committee Chair Curry did not provide a report. 0610=016 Administration Committee Minutes Page 1 of 5 REPORT OF GENERAL MANAGER: General Manager Jim Herberg did not provide a report. Board Chair Nielsen notified the Committee of the upcoming ACC-OC Golden Hub of Innovations Event on Thursday, June 9, 2016 which will be held at the Discovery Cube in Santa Ana, and that If anyone was interested in attending, to notify the Clerk of the Board. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the May 11, 2016Administration Committee Meeting. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner (Alternate), Nielsen, Peterson (Alternate) and Sebourn NOES: None ABSTENTIONS: None ABSENT: Kring, Parker, T. Smith, and Tinajero 2. IBM TIVOLI MAXIMO AND WEBSPHERE (ENTERPRISE ONE) ANNUAL SUBSCRIPTION AND SUPPORT (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: A. Authorize purchase of an annual licensing and maintenance agreement for IBM Maximo and WebSphere software and support using Dataskill, Inc. in the amount of$180,166.41 for one year; and B. Approve a contingency of$36,033 (20%)for additional licenses identified in the current Maximo implementation plan. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner (Alternate), Nielsen, Peterson (Alternate) and Sebourn NOES: None ABSTENTIONS: None ABSENT: Kring, Parker, T. Smith, and Tinajero 06/082016 Administration Committee Minutes Page 2 of 5 3. FY 2016-17 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 16-XX entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing Use Charges for the FY 2016-17 Pursuant to the Wastewater Treatment and Disposal Agreement with the Santa Ana Watershed Project Authority." AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner (Alternate), Nielsen, Peterson (Alternate) and Sebourn NOES: None ABSTENTIONS: None ABSENT: Kring, Parker, T. Smith, and Tinajero 4. ORANGE COUNTY REGISTER — CLASSIFIED & LEGAL ADVERTISEMENTS (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: A. Approve Change Order No. 4 to Blanket Purchase Order 105121-OB with the Orange County Register for Classed and Legal advertisements, for the period July 1, 2014 through June 30, 2016, for an additional amount of $20,001, for a total amount not to exceed $120,000; and B. Approve Blanket Purchase Order with the Orange County Register for Classified and Legal advertisements, for the period of July 1, 2016 through June 30, 2017, for a total amount not to exceed $150,000. AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner (Alternate), Nielsen, Peterson (Alternate) and Sebourn NOES: None ABSTENTIONS: None ABSENT: Kring, Parker, T. Smith, and Tinajero 5. GANN APPROPRIATIONS LIMIT FOR FISCAL YEAR 2016-17 (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 16-XX entitled, "A Resolution of the Board of Directors of the Orange County Sanitation District Establishing the Annual Appropriations Limit for Fiscal Year 2016-17, for the District in accordance with the Provisions of Division 9 of Title 1 of the California Government Code." AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Krippner (Alternate), Nielsen, Peterson (Alternate) and Sebourn NOES: None ABSTENTIONS: None ABSENT: Kring, Parker, T. Smith, and Tinajero 06/0W016 Atlminiatration committee Minutes Page 3 of 5 Committee Vice-Chair Kring arrived at 5:06 p.m. Director Tinajero arrived at 5:14 p.m. NON-CONSENT: 6. PROPOSED FY 2016-17 AND 2017-18 BUDGET (Lorenzo Tyner) Director of Finance and Administrative Services Lorenzo Tyner provided a brief overview of this Rem and introduced Controller Mike White, who provided a PowerPoint presentation on the proposed budget for fiscal years 2016-17 and 2017-18. The presentation included major revenue components, a comparison of single family residential rates between comparable agencies, anticipated performance of property tax revenue, outlay categories, a summary of proposed operating expenses, Capital Improvement Program (CIP) components, and debt issuances. Mr. White and Mr. Herberg responded to questions regarding the issuance of new debt, generational equity, fee increases. 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 2016-17 and 2017-18 as follows: 2016-17 2017-18 Net Operations, Maintenance &Working Capital $146,356,520 $149,854,390 Worker's Compensation Self Insurance 1,090,000 1,130,000 General Liability and Property Self-Insurance 1,390,000 1,450,000 Net Capital Improvement Program 171,290,000 137,989,000 Debt/COPService 86,664,000 83,119,000 Reduction of Long Term Obligations 65,000,000 - Intra-District Joint Equity Purchase/Sale(') 3,400,000 1,700,000 TOTAL $475.190.520 $375.242.390 0)Cash tolfrom Revenue Area 14 (RA14) in exchange for capital assets totfrom Consolidated Revenue Area 15 (RA15). AYES: Choi, Curry, Fascenelli (Alternate), Ferryman, Kim, Kring, Krippner (Alternate), Nielsen, Peterson (Alternate) and Seboum, and Tinajero NOES: None ABSTENTIONS: None ABSENT: Parker, and T. Smith INFORMATION ITEMS: 7. WORKFORCE PLANNING (Celia Chandler) Director of Human Resources Celia Chandler provided a brief overview of this item and introduced Richard Spencer, Human Resources Manager. Mr. Spencer 06MMO16 AdminisVation Committee Minutes Page 4 of 5 provided a PowerPoint presentation with an overview of the organizational structure and demographics of the Orange County Sanitation District including attrition, retirement eligibility statistics, and planning for the future needs of the workforce. Mr. Spencer responded to questions from the Committee regarding recruitment processes and strategies, tuition reimbursement, educational opportunities, intern and apprenticeship programs, and the likeliness of upward mobility. CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Board Chair Nielsen invited everyone to the 21e1 Annual State of the City (Tustin) event on Thursday, June 9, 2016 at 5:00 p.m. ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:45 p.m. to the next regularly scheduled meeting of Wednesday, July 13, 2016 at 5:00 p.m. Sub fitted by: Kell A. ore CI o he Board O6/08/2016 Administration Committee Minutes Page 5 of 5 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Tuesday, June14, 2016 at8:00 a.m. A regular meeting of the Legislative and Public Affairs Committee was called to order by Vice Chair Sebourn on Tuesday, June 14, 2016 at 8:05 a.m. in the Administration Building of the Orange County Sanitation District. Director Kiley led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Board Chair Bob Ghirelli, Assistant General Manager Tom Beamish, Director Celia Chandler, Director of Human Robert Kiley, Director Resources Peter Kim, Director Jim Colston, Director of Environmental Lucille Kring, Director Services Greg Sebourn, Board Vice-Chair Rob Thompson, Director of Engineering Lorenzo Tyner, Director of Finance & COMMITTEE MEMBERS ABSENT: Administrative Services John Withers, Director Tina Knapp, Deputy Clerk of the Board Jennifer Cabral Alfredo Garcia Rebecca Long Kelly Newell Nina Tran OTHERS PRESENT: Brad Hogin, General Counsel Eric O'Donnell, Townsend Public Affairs Eric Sapirstein, ENS (via Teleconference) Cori Williams, Townsend Public Affairs Stephanie Smith, Inside the Outdoors Mark Atkinson, Inside the Outdoors PUBLIC COMMENTS: None. 06/14/2016 Legislative and Public Affairs Committee Minutes Page 1 of 5 REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. None. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Committee, 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) MOVED, SECONDED and DULY CARRIED TO: Approve minutes for the regular Legislative and Public Affairs Committee meeting held on May 10, 2016. AYES: Beamish, Kiley, Kim, Kring, and Sebourn NOES: None ABSTENTIONS: None ABSENT: Nielsen and Withers NON-CONSENT CALENDAR: 2. SUPPORT SENATE BILL S. 2848 and REQUEST CONGRESSIONAL SUPPORT FOR H.R.2993 (Rebecca Long) MOVED, SECONDED and DULY CARRIED TO: Approve letters of support: A. Water Resources Development Act of 2016 (S. 2848). Senator Dianne Feinstein AYES: Beamish, Kiley, Kim, Kring, and Sebourn NOES: None ABSTENTIONS: None ABSENT: Nielsen and Withers MOVED, SECONDED and DULY CARRIED TO: Approve letters of support: B. Congressional Support Letter for the Water Recycling Acceleration Act of 2015 (H.R.2993). Congresswoman Doris Matsui. AYES: Beamish, Kiley, Kim, Kring, and Sebourn NOES: None ABSTENTIONS: None ABSENT: Nielsen and Withers DG/14120 6 Legislative and Public Affairs Committee Minutes Page 2 of 5 INFORMATION ITEMS: 3 INSIDE THE OUTDOORS PRESENTATION (Jennifer Cabral) Assistant General Manager Bob Ghirelli introduced Public Affairs Specialist Kelly Newell who introduced the representatives from Inside the Outdoors, Mark Atkinson and Stephanie Smith, and provided a brief overview of the Inside the Outdoors organization. Ms. Smith and Mr. Atkinson provided an informative PowerPoint presentation on the Inside the Outdoors programs, which included an overview of the programs offered and components of the various programs. Ms. Smith responded to questions from the Committee regarding the age groups and schools selected for participation in the Inside the Outdoors programs, as well as questions regarding the length of the various programs and the success of the programs. Chair Nielsen arrived at 8:16 a.m. 4. PUBLIC AFFAIRS UPDATE (Jennifer Cabral) Principal Public Affairs Specialist Jennifer Cabral indicated that Construction Outreach Efforts statistics will be provided monthly as construction provides outreach opportunities(such as meetings, mailings, incoming inquiries)that were previously unreported. Ms. Cabral provided an update on recent outreach activity and speaking engagements. Ms. Cabral responded to questions from the Committee regarding various tour groups and their reason for interest in the Sanitation District. Staff has been evaluating the possibility of the Sanitation District and Orange County Water District (OCWD) offering joint tours. Ms. Cabral indicated that August 13, 2016 is the date for the joint open house with the Orange County Water District, 10:00 a.m. —2:00 p.m. Marketing is being coordinated with each member City/Agency. Tours will be offered during the open house. Ms. Cabral reported that the Sanitation District was honored to receive a Golden Hub of Innovation award from the Association of California Cities — Orange County for the Newport Beach Outreach Program, which garnered community support for the project to rehabilitate the sewer system in the City of Newport Beach. 5. LEGISLATIVE UPDATE (Rebecca Long) Senior Public Affairs Specialist Rebecca Long indicated that Friday, October 14. 2016 from 8:00-10:00 a.m. is the date/time for the State of the District event. O6/1412016 LegisletNe and Public A4aire Committee Minutes Page 3 of 5 Ms. Long reported that the Sanitation District recently submitted a concept letter regarding the Department of Energy grant for AquaCritoo and more information should be available in the next several weeks as to whether or not application can be made for the actual grant. Ms. Long also reported that a trip to Denver, to the United States Bureau of Reclamation, is being coordinated for legislative efforts related to funding. Ms. Long also indicated that Senator Feinstein is still committed to the identification of the Sanitation District as a priority for funding relating to drought legislation efforts. Eric Sapirstein, ENS Resources, provided an update on highlights of recent Federal legislative activity, including an update on Water Resources Development Act(WRDA) legislation, the Environmental Protection Act budget, water recycling funding efforts, and drought legislation. Ms. Long reported that the Sanitation District continues to monitor SB 163 (Hertzberg) and is working with Senator Hertzberg's office to address the State- wide concern regarding the bill. Jim Colston, Director of Environmental Services, will be providing testimony on AB 2022 (Gordon) in Sacramento on Wednesday, along with OCWD, regarding water reuse and the benefits of bottling Groundwater Replenishment System (GWRS)water for educational purposes. Cori Williams, Townsend Public Affairs, provided an update on state legislative activity including: recent amendments to SB 163 (Hertzberg) pertaining to reuse requirements; AB 2022, State budget, which is due tomorrow and, at this point, includes less language pertaining to water; and Cap and Trade funding, which recently earned less revenue than anticipated Ms. Williams responded to questions from the Committee regarding the production quantity allowed for in AB 2022,specific concerns expressed by State Committee staff regarding AB 2022, testing requirements included in AB 2022, and components to Cap and Trade funding. AB 2022 passed the Assembly and will next be heard by the Senate (Environmental Quality). Ms. Williams responded to questions from the Committee regarding SB 163. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Chair Nielsen thanked Sanitation District staff for participating in and representing the Sanitation District at the Tustin Chili Cook-Off. 06/142016 Legislative and Public Affairs Committee Minutes Page 4 of 5 ADJOURNMENT: Chair Nielsen declared the meeting adjourned at 8:54 a.m. to the next Legislative and Public Affairs Committee Meeting, Monday, July 11, 2016 at 3:30 p.m. Submitted by: TY�^ Tina Knapp ' Y ` Deputy Clerk of the Board 06114/2016 Legislative and Public Affairs Committee Minutes Page 5 of MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, June 22, 2016 at 4:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Nielsen on Wednesday, June 22, 2016 at 4:03 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Chair Jim Herberg, General Manager Greg Sebourn, Vice-Chair Bob Ghirelli, Assistant General Manager Keith Curry, Administration Committee Celia Chandler, Director of Human Chair Resources John Withers, Operations Committee Jim Colston, Director of Environmental Chair Services Tom Beamish, Member-At-Large Rob Thompson, Director of Engineering Lucille Kring, Member-At-Large Mark Esquer, Engineering Manager David Shawver, Member-At-Large Lorenzo Tyner, Director of Finance & Administrative Services COMMITTEE MEMBERS ABSENT: Kelly A. Lore, Clerk of the Board None Janine Aguilar Jennifer Cabral Al Garcia Stephanie Good Lori Khajadourian Randy Kleinman Lori Klinger Tina Knapp Mark Manzo Laura Maravilla Andrew Nau OTHERS PRESENT: Brad Hogin, General Counsel Georg Krammer, Koff& Associates Alyssa Thompson, Koff&Associates Laura Kalty, Liebert Cassidy Whitmore PUBLIC COMMENTS: No public comments were provided. 06/22/2016 Steering Committee Minutes Page 1 of REPORTS: Chair Nielsen announced that the OCSD/OCWD Joint Open House will take place on August 13th at 10:00 a.m. and encouraged all to attend. General Manager Jim Herberg reported on the following: Closure of OCSD Administrative Offices on Monday, July 4th (Independence Day); Heal the Bay's Orange County Beach Water Quality report card with A+ to B grades for both summer and winter; Awards received this month: Graphic Design USA award for In-house design of the Annual Report, and the ACC-OC Golden Hub of Innovation award for the Newport Beach Outreach Program; State Senate Environmental Quality Committee hearing where, Director of Environmental Services, Jim Colston testified on behalf of AB 2022 (Gordon); and the objectives and progress of the first agency- wide employee engagement survey. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the May 25, 2016 Regular Steering Committee Meeting. AYES: Beamish; Curry; Kring; Nielsen; Sebourn; and Shawver NOES: None ABSTENTIONS: None ABSENT: Withers NON-CONSENT CALENDAR: None. INFORMATION ITEMS: 2. GENERAL MANAGER'S FY 2015-2016 WORK PLAN UPDATE (Jim Herberg) General Manager Jim Herberg provided a brief presentation, highlighting the five major categories of his FY 2015-16 work plan: Safety, Succession Planning, Resource Recovery, Reliability, and Operational Optimization. Director Withers arrived at 4:17 p.m. 3. PRELIMINARY CLASSIFICATION & COMPENSATION STUDY RESULTS (Celia Chandler) Director of Human Resources, Celia Chandler provided a brief history of the 06/22/2016 Steering Committee Minutes Page 2 of 4 item and introduced representatives with Koff & Associates (consultant), Georg Krammer, Chief Executive Officer and Alyssa Thompson, Project Manager, who provided a PowerPoint presentation of the preliminary compensation study overview including: Goals and elements of the study; benchmark classifications and comparator agencies; benefits and data collection; market findings; compensation structure and strategy development; compensation philosophy and internal relationships. The Committee requested the following additional information: a chart of the market position percentile of each of the comparison agencies; the number of agency employees lost due to compensation matters; and a list of which agencies we have lost employees to and why. Ms. Chandler will review data from exit interviews of past employees and produce the additional information requested. Chair Nielsen thanked Mr. Krammer for completing this preliminary report in such a short time. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS 54957.6, 54956.9(d)(2). 54957(b)(1) & 54956.9(d)(1): The Committee convened in closed session at 4:35 p.m. to discuss four items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:52 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 06/22/2016 Steering Committee Minutes Page 3 of ADJOURNMENT: The Chair declared the meeting adjourned at 5:52 p.m. to the next Steering Committee meeting to be held on Wednesday, July 27, 2016 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 06/22/2016 Steering Committee Minutes Page 4 of 4 OPERATIONS COMMITTEE MeaHngDae TOBd.OfDir. 07/O6/16 07/27/16 AGENDA REPORT ItemNumber Item Number z s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James E. Colston, Director of Environmental Services SUBJECT: FISH TRACKING STUDY - SOLE SOURCE CONTRACT WITH DR. CHRISTOPHER LOWE — CALIFORNIA STATE UNIVERSITY LONG BEACH GENERAL MANAGER'S RECOMMENDATION Award a Sole Source Contract to Dr. Christopher Lowe of the California State University Long Beach to conduct a fish tracking study in support of the Orange County Sanitation District's National Pollution Discharge Elimination System (NPDES) Ocean Discharge Permit for the period August 1, 2016 through June 30, 2018, at a project cost not to exceed $200,000. BACKGROUND The Orange County Sanitation District (Sanitation District) is required under the NPDES Ocean Discharge Permit to monitor for the tissue levels of certain chemical contaminants in specified fish species. These species include the Hornyhead Turbot, English Sole, and California Scorpionfish. Fish are collected at two sites, one at the end of the outfall diffuser and one at a farfield (reference) site about five miles up coast from the outfall. The muscle and livertissue of these fish are analyzed for a suite of chemical contaminants and reported to regulators in the Marine Monitoring Annual Report. These tissue contaminant levels are used to assess ecosystem health and human health risk from consuming fish caught near the discharged final effluent. The location of capture of the fish is de facto considered to be the location of exposure to the chemicals measured in their tissues. This may or may not be accurate since virtually nothing is known about the movement of these fishes. Regardless, the Sanitation District is held accountable for the contaminant levels in tissues in fish collected at the outfall site. RELEVANT STANDARDS • NPDES permit requirements • California Ocean Plan Standards PROBLEM The Sanitation District discharges treated effluent into the coastal ocean. The Sanitation District's NPDES permit requires monitoring the tissues of certain fish species for a suite of chemical contaminants to assess potential environmental and human health impacts Page 1 of 2 from the consumption of fish caught near the Sanitation District's point of effluent discharge. PROPOSED SOLUTION The purpose of this fish tracking study is to monitor the movements of these fish in the monitoring area to determine if the location of capture is indeed of sufficient exposure to answer the questions of potential environmental and human health impacts from the Sanitation District's effluent discharge. Dr. Lowe was chosen for this project as he is the regional expert in conducting fish tracking studies. He has conducted extensive fish tracking studies in southern California for the National Oceanic and Atmospheric Administration (NOAA), the State of California, and the Los Angeles County Sanitation Districts in addition to his academic research. TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will continue to monitor tissue contaminant levels in fish species that may not be representative of exposure to the discharged final effluent. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the OCSD's Purchasing Ordinance. Sufficient funds have been allocated in the Fiscal Year 2016/18 Budget, Environmental Laboratory and Ocean Monitoring Operating Budget (Section 6, Page 48). Project contingency funds will not be used for this contract. ATTACHMENT The following attachmentia) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Sole Source Service Contract Justification and Quote Page 2 of 2 • Om July 20, 2016 MEMORANDUM TO: Robert P. Ghirelli, D.Env. Assistant General Manager From: Ron Coss, Environmental Laboratory and Ocean Monitoring Division Manager FROM: DR. Danny Tang Scientist SUBJECT: Sole Source Justification for Service Contract to Dr. Chris Lowe for Fish Tracking Study The District's Ocean Monitoring Program (OMP) assesses discharge effects on marine communities, including analyses of tissue contamination levels in hornyhead turbot, English sole and rockfishes (e.g. CA scorpionfish) relative to background levels and human health consumption guidelines. In making these comparisons it is assumed that the location of capture is also the location of exposure. However, little is known about the movement patterns of the fish species used in the OMP. As such, a fish tracking study is needed to understand the site fidelity and potential risk exposure of the fishes used in the OMP. A sole source to Dr. Chris Lowe at California State University, Long Beach for the study of fish movement patterns is required because he is the local expert in this field of study. Dr. Lowe has studied the movement patterns of a wide variety of southern California fishes, including those residing near the Los Angeles County Sanitation District's outfall. The proposed study will use passive acoustic telemetry tracking (Vemco VPS system)to quantify fine-scale, longer-term movements of tagged adult homyhead turbot, CA scorpionfish, and English sole within a 4.8 km2 area surrounding the District's 120-inch outfall and a 2.3 km2 area around an upcoast reference site. This service contract will cover the salary for one graduate student, fish tagging materials, and boat fuel. The contractor will also submit a final report to the District as well as publish the findings in a peer-reviewed journal. The contract coverage is from August 1, 2016 to June 30, 2018 at a cost not to exceed $200,000. Sole source memo—Chris Lowe(CSULB)_May2016 Budget OCSD Fish Trackin¢Sud¢et 8/1/16-6/30/17 )/1/1)E/30/18 IlProject Total Salaries&Fringe Benefits: Lowe 0.93 months $ 11,375 - $ 11,375 Fringe(8.85%) $ 1,006 $ 1,006 Burns(graduate student) 1450 hrs(yr 1);500 hrs(yr 2)at$18/hr $ 26,101 $ *9,1g0 $ 35,281 Fringe(10.68%) $ 2,788 $ 980 $ 3,768 Salaries&Fringe Total $ 41,270 $ 10,160 $ 51,430 Travel: Domestic travel to conferences(air,hotel,registration) $ 3,000 is 2,000 $ 5,000 Travel Total 15 3,000 is 2,000 5 51000 Mae rialsand Suoolies, coded acoustic transmitters(V9-2H,150 at 5400) $ 60,000 - $ 60,000 synch tap(V16,14 at 5400) $ 5,600 $ 5,600 reference lags(V9,30 at$400) $ 4,000 $ 4,000 VPS rendering(1 year,3 downloads) $ 14,000 $ 14,000 surgical supplies $ Soo $ Boo boat Net $ 3,000 - $ 3,000 acoustic release batteries(36 at$100) $ 3,600 $ 3,600 acoustic release burnwires(162 at$8) $ 1,300 $ 1,300 mooring supplies $ 1,200 $ 1,200 field notebook $ Soo $ 500 acoustic receiver batteries(40 at$2)) $ 1,og0 - $ 1,080 acoustic release,(6 at$870) IS 5,220 - 5 5,220 Materials and Supplies Total $ 100,300 $ 100,300 other: Publication costs - $ 2,000 $ 2,000 Other Total $ 2,000 $ 2,000 Total Direct Costs $ 144,570 $ 14,160 5 158,730 Indirect Costs/overhead(26%of Total Direct Costs) $ 37,588 $ 3,682 $ 41,270 Total Costs $ 182,158 $ 17,842 $ 200,000 ❑there is a 2%salary escalator for the graduate student during year 2. OPERATIONS COMMITTEE Meng D310 TOBE. Dir. 07/lti06/16 07/27/1Or6 AGENDA REPORT Item Item Number 3 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James E. Colston, Director of Environmental Services SUBJECT: MONTEREY BAY AQUARIUM RESEARCH INSTITUTE OCEAN ACIDIFICATION AND HYPDXIA MOORING SUPPORT GENERAL MANAGER'S RECOMMENDATION Approve a Service Agreementto the Monterey Bay Aquarium Research Institute(MBARI) to provide technical support and training to District staff to develop the in-house ability to operate, service, and maintain the Orange County Sanitation District's Ocean Acidification and Hypoxia mooring for the period of July 1, 2016 to June 30, 2017, for an amount not to exceed $120,000 with the option of four (4) one-year renewals. BACKGROUND The Orange County Sanitation District (Sanitation District) is required under its ocean discharge permit and the California Ocean Plan to meet discharge compliance limits for acidity (pH)and oxygen levels. In 2013, the Sanitation District, along with the City of Los Angeles, County Sanitation Districts of Los Angeles, and the City of San Diego, in cooperation with the Southern California Coastal Water Research Project, agreed to undertake long-term regional monitoring of pH and oxygen along the coast in order to better understand their spatial and temporal variability along the Southern California coast. Sampling platforms include vessels and moored instrument packages. Impacts of Ocean Acidification and Hypoxia, or low oxygen, (OAH) in the coastal zone have been documented along the West Coast since the mid-2000s. California, Oregon, and Washington recognized the potential threats associated with OAH, and in 2012 a scientific review panel to provide state regulators with up-to-date knowledge management actions. OAH moorings are not commercially available and need to be custom made for the requirements of the operator, in this case the Sanitation District. MBARI has developed and deployed similar moorings in Monterey Bay and off Baja California, Mexico. In 2014, the Sanitation District selected MBARI to help with the design, construction, and deployment of an OAH mooring. The Sanitation District's mooring was deployed in December 2015 and integrates standard oceanographic (e.g., temperature) and custom- developed (e.g., pH) sensors. The proposed contract with MBARI involves continued technical support for the mooring and technology transfer via training for Sanitation District staff to be able to fully support the mooring with in-house resources. It is expected that as internal staff expertise Page 1 of 3 increases, external MBARI support will decrease over time with future expenditures estimated not to exceed $50,000.00. RELEVANT STANDARDS • Comply with the Clean Water Act • Meet discharge permit 24/7/365 PROBLEM The Sanitation District discharges treated effluent into the coastal zone. The Sanitation District's ocean discharge permit mandates that we meet compliance standards with physical, chemical, and biological state and federal environmental criteria. PROPOSED SOLUTION The OAH mooring allows the Sanitation District to better understand the temporal variability of pH and oxygen near our ocean discharge. This information will allow us to better understand potential impacts to organisms exposed to our discharge in a changing coastal environment. This information will also be of use to state and federal environmental managers in considering new and revised receiving water criteria.Without this information, regulators will not be able to include our local findings in proposed discharge limits (e.g., nutrient removal) and the Sanitation District will not have the science available to respond to these proposals. The permit also mandates the Sanitation District to conduct Strategic Process Studies (SPS) that address environmental issues in the receiving environment. This mooring project meets the permit-required SPS criteria. TIMING CONCERNS The Sanitation District OAH mooring is operational, and staff needs continued MBARI support and training to service the mooring and its suite of sensors. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not meet the requirements of its ocean discharge permit to conduct a Special Study on OAH. Sanitation District staff will not be able to effectively service and maintain the OAH mooring. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A Page 2 of 3 CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance OCSD - 47. Sufficient funds have been allocated in the Proposed Fiscal Year 2016-2017 Environmental Laboratory and Ocean Monitoring Capital Equipment Budget (Section 8, Page 103-108). Date of AoDroval Contract Amount Contincencv 07/27/2016 $120,000.00 N/A ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Service Agreement Page 3 of 3 SERVICE AGREEMENT Ocean Acidification and Hypoxia Mooring In Southern California Bight THIS AGREEMENT is made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018(hereinafter referred to as"OCSD")and Monterey Bay Aquarium Research Institute with a principal place of business at 7700 Sandholdt Road, Moss Landing, CA 95039-9644 (hereinafter referred to as "MBARI") collectively referred to as the "Parties" or separately as a "Party'. WITNESSETH WHEREAS, based on MBARI's expertise and experience, OCSD wishes to temporarily engage MBARI to provide Ocean Acidification and Hypoxia Mooring In Southern California Bight ("Services") as described in Exhibit"A"; and WHEREAS, MBARI submitted a proposal for Services (attached hereto and incorporated herein by reference as Exhibit"A"); and WHEREAS, on July 27, 2016, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and MBARI; and WHEREAS, OCSD has chosen MBARI to conduct Services in accordance with Ordinance No. OCSD-47; and NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged between the Parties, the Parties mutually agree as follows: 2. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement") is made by OCSD and MBARI. The Terms and Conditions herein exclusively govern the purchase of Services as described in the MBARI's Proposal, attached hereto and incorporated herein by reference as Exhibit"A". 1.2 Exhibits to this Agreement are incorporated by reference and made apart of this Agreement as though fully set forth at length herein. Exhibits to this Agreement are as follows in order of precedence: Exhibit"A" MBARI's Proposal dated May 26, 2016 Exhibit"B" Not Used 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 1.4 This Agreement may not be modified, changed or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by both Parties. 1.5 The various headings in this Agreement are inserted for convenience only and shall not affect the meaning or interpretation of this Agreement or any Paragraph or provision hereof. Orange County Sanitation District 1 of 8 Service Agreement 1.6 The term "days", when used in the Agreement, shall mean calendar days, unless otherwise noted as workdays. 1.7 The term "workday". Workdays are defined as all days that are not Saturday, Sunday, or legally observed holidays. Meetings with OCSD staff shall be scheduled from Monday through Thursday between the hours of 8AM and 4PM (exception is operations staff who maintain plant operations 2417 and work a rotated 12-hour shift) and shall conform to OCSD work schedules. OCSD review periods shall not include legally observed holidays. 1.8 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday, Presidents' Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday, Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day. 1.9 Work Hours: The work required under this Agreement may include normal Business hours, evenings, and weekends. OCSD will not pay Travel Time. 1.10 MBARI shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided in Section 5, Compensation. 1.11 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by MBARI as a result of work performed in anticipation of purchases of said services by OCSD. 3. Scope of Work Subject to the terms of this Agreement, MBARI shall perform the Services identified in Exhibit"A". MBARI warrants that all of its Services shall be performed in a competent, professional and satisfactory manner. 4. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. A review of the time required for the modification will be made by OCSD and MBARI and the Agreement period adjusted accordingly. 5. Compensation Compensation to be paid by OCSD to MBARI for the Services provided under this Agreement shall be a total amount not to exceed One Hundred Twenty Thousand Dollars ($120,000.00)for the first year of the Agreement. 6. Payment and Invoicing 6.1 MBARI shall be paid by OCSD upon approval by OCSD Project Manager, George Robertson or his designee, of invoices submitted for tasks completed as outlined in Exhibit "A. OCSD, at its sole discretion, shall be the determining party as to whether the Services have been satisfactorily completed. 6.2 Invoices shall be emailed by MBARI to OCSD Accounts Payable at APStaff(tDOCSD.com and reference the following in the subject line: "INVOICE" and the Purchase Order Number. 7. Audit Rights MBARI agrees that, during the term of this Agreement and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine with reasonable notice any directly pertinent books, documents, and records of MBARI relating to the invoices submitted by MBARI pursuant to this Agreement. 8. Commencement and Term The Services to be provided by MBARI under this Agreement shall commence on August 1, 2016 (Effective Date), and be completed on July 31, 2017. Orange County Sanitation District 2 of 8 Service Agreement 9. Renewals 9.1 OCSD may exercise the option to renew the Agreement for up to four(4) one-year periods based upon the criteria set forth in Exhibit "A", under the terms and conditions contained herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew. 9.2 Renewals may be made through the OCSD Purchase Order Process. 10. Extensions The Term of this Agreement may be extended only by written instrument signed by both Parties. 11. Termination 11.1 Either Party may terminate this Agreement for its convenience, with or without cause, in whole or in part, at anytime, by written notice to the other Party(delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, MBARI shall promptly discontinue all work under this Agreement(unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay MBARI for work performed (cost and fee)to the date of termination and any unrancellable obligations incurred prior to receiving the written notice of termination. MBARI expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of this Agreement. 11.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD's determination that MBARI is not meeting specification requirements, if the level of service is inadequate, or any other default of this Agreement. 11.3 OCSD may also immediately cancel for default of this Agreement in whole or in part by written notice to MBARI: • if MBARI becomes insolvent or files a petition under the Bankruptcy Act; or • if MBARI sells its business; or • if MBARI breaches any of the terms of this Agreement; or • if total amount of compensation exceeds the amount authorized under this Agreement. 11.4 All OCSD property in the possession or control of MBARI and provided to MBARI by OCSD specifically for the performance of this Agreement shall be returned by MBARI to OCSD upon the termination of this Agreement. 12. Indemnification and Hold Harmless Provision Each Party agrees to save, indemnify, defend and hold harmless the other Party, its officers, employees and agents against any and all liability, claims,judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly out of the performance of this Agreement but only in proportion to and to the extent such liability, claims, judgments, costs and demands are caused by or result from the negligence or willful misconduct of the indemnifying Party, its employees or agents, in relation to the rendition of Services pursuant to this Agreement 13. Insurance MBARI is a self-insured non-profit organization. MBARI shall maintain, throughout the life of this Agreement and any periods of warranty or extensions, self-insurance in amounts sufficient to full its obligations under this Agreement. Failure to maintain required self-insurance coverage shall result in termination of this Agreement upon written notice of termination as required under Section 11 of this Agreement. MBARI shall provide evidence of insurance to OCSD upon request. Orange County Sanitation District 3 of 8 Service Agreement 14. Ownership of Intellectual Property 14.1 MBARI agrees that the reports delivered by MBARI to OCSD in the performance of the Services detailed in Exhibit"A" of this Agreement(hereinafter referred to as "Deliverables") shall be and are assigned to OCSD as its sole and exclusive property. Notwithstanding the foregoing, MBARI shall retain the unrestricted right to use such Deliverables for academic purposes consistent with MBARI's mission as an academic and research institution. 14.2 "Invention" shall mean any patentable invention conceived and first actually reduced to practice in the performance of the Services detailed in Exhibit"A"of this Agreement. 14.3 Ownership of Inventions. Inventorship shall be determined in accordance with U.S. Patent Law. All rights to Inventions made solely by employees of OCSD shall belong solely to OCSD ("OCSD Invention"). All rights to Inventions made solely by employees of MBARI shall belong solely to MBARI ("MBARI Invention"). All rights to Inventions made jointly by employees of MBARI and employees of OCSD ("Joint Inventions")shall be jointly owned. 14.4 Nothing contained in this Agreement shall be deemed to grant either directly or by implication, estoppel, or otherwise any license under any patents, patent applications, or other proprietary interests to any other invention, discovery, or improvement of either Party 15. Use of Name OCSD agrees that it will not use the names of MBARI or its employees in any advertisement, press release or publicity with reference to this Agreement without the prior written approval of MBARI. MBARI shall have the right to acknowledge OCSD's support of the Services performed under this Agreement in scientific publications and other scientific communications. 16. Independent Contractor Capacity 16.1 The relationship of MBARI to OCSD is that of an independent contractor and nothing herein shall be construed as creating an employment or agency relationship. 16.2 MBARI shall act independently and not as an officer or employee of OCSD. OCSD assumes no liability for MBARI's action and performance, nor assumes responsibility for taxes, funds, payments or other commitments, implied or expressed, by or for MBARI. 16.3 MBARI shall not be considered an agent of OCSD for any purpose whatsoever, nor shall MBARI have the right to, and shall not, commit OCSD to any agreement, contract or undertaking. MBARI shall not use OCSD's name in its promotional material or for any advertising or publicity purposes without expressed written consent. 16.4 MBARI shall not be entitled to any benefits accorded to those individuals listed on OCSD's payroll as regular employees including, without limitation, worker's compensation, disability insurance, vacation, holiday or sick pay. MBARI shall be responsible for providing, at MBARI's expense, disability, worker's compensation or other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 16.5 MBARI shall be obligated to pay any and all applicable local, state and federal payroll and other taxes incurred as a result of fees hereunder. MBARI hereby indemnifies OCSD for any claims, losses, costs, fees, liabilities, damages or penalties suffered by OCSD arising out of MBARI's breach of this provision. 16.6 MBARI shall not be eligible to join or participate in any benefit plans offered to those individuals listed on OCSD's payroll as regular employees. MBARI shall remain ineligible for such benefits or participation in such benefit plans even if a court later decides that OCSD misclass'fiied MBARI for tax purposes. Orange County Sanitation District 4 of 8 Service Agreement 17. Licenses, Permits MBARI represents and warrants to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County, City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement will be paid by MBARI. 18. MBARI's Representations In the performance of duties under this Agreement, MBARI shall adhere to the highest fiduciary standards, ethical practices and standards of care and competence for their trade/profession. MBARI agrees to comply with all applicable Federal, State and local laws and regulations. 19. Familiarity with Work By executing this Agreement, MBARI warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Agreement. Should MBARI discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at MBARI's risk, until written instructions are received from OCSD. 20. Right to Review Services. Facilities. and Records 20.1 OCSD reserves the right to review any portion of the Services performed by MBARI under this Agreement, and MBARI agrees to reasonably cooperate with OCSD's review. 20.2 MBARI shall furnish to OCSD such reports, statistical data, and other information pertaining to MBARI's Services as required to meet the requirements of Exhibit"A". 20.3 The right of OCSD to review the Services shall not relieve MBARI of any obligation set forth herein. 21. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of government or any other cause beyond its control, but said party shall use reasonable efforts to minimize the extent of the delay. Work affected by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated from the Agreement. 22. Severability If any section, subsection, or provision of this Agreement, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Agreement or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 23. Waiver The waiver of either party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by MBARI to which OCSD does not object shall not operate as a waiver of OCSD's rights to seek remedies available to it for any subsequent breach. 24. Governing Law This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof. 25. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Orange County Sanitation District 5 of 8 Service Agreement Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 26. Dispute Resolution 26.1 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall use their best efforts to settle the dispute, claim, question, or disagreement. To this effect,they shall consult and negotiate with each other in good faith and recognizing their mutual interests, attempt to reach a just and equitable solution satisfactory to both parties. If they do not reach solution within a period of sixty (60) days, they shall attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 26.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute may be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select an arbitrator, and those two arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator,orthree arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. Arbitration-related costs shall be borne by the parties as follows: 1) the AAA's administrative fees, including the arbitrator fees, shall be borne equally by the parties; 2) the expense of a stenographer shall be borne by the party requesting a stenographic record; 3)witness expenses for either side shall be borne by the party producing or requesting the production of the witness; 4) each party shall bear the cost of its own travel expenses; and 5) all other expenses shall be borne by the party incurring the expense. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. As an alternative to arbitration, either Party may choose to submit the issues in dispute to the Superior Court for the County of Orange. 27. Damage to OCSD's Property Any OCSD property damaged by MBARI in the performance of this Agreement will be subject to repair or replacement by MBARI at no cost to OCSD. Any MBARI property damaged by the sole negligence of OCSD in the performance of this Agreement will be subject to repair or replacement by OCSD at no cost to MBARI. 28. Smoking Smoking is only allowed in designated areas. Smoking is not allowed in any building, electrically classified area or process area where methane gas may be present. Lack of compliance with OCSD Smoking policy will be cause for removal of offending personnel from the site. 29. Drug-Free Workplace MBARI and all its employees and subconsultants must adhere to the California Drug-Free Workplace Act, Sections 8350 through 8357. 30. OCSD Safety and Human Resources Policies OCSD requires all contractors and consultants to follow and ensure their employees and all subcontractors follow all State and Federal regulations as well as OCSD requirements while working at OCSD locations. If during the course of a contract it is discovered that OCSD policies, safety manuals, or contracts do not comply with State or Federal regulations then the MBARI is required to follow the most stringent Orange County Sanitation District 6 of 8 Service Agreement regulatory requirement at no cost to OCSD. MBARI and all their employees and subcontractors, shall adhere to all applicable OCSD Safety and Human Resources Policies found at: OCSD.com, "Doc Central" (bottom of page), under"Safety'. OCSD's Safety Standards and Human Resource Policies are hereby incorporated by reference as though fully set forth herein. 31. Training Certification When required by regulation, certificates of training shall be maintained on-site for the duration of the activity that requires an employee to be certified. Certificates shall be current. Lack of certificates when required will be cause for removal of offending personnel form the site, termination of the Agreement, or both. 32. Assignments MBARI shall not delegate any duties nor assign any rights under this Agreement without the prior written consent of OCSD. Any such attempted delegation or assignment shall be void. 33. Conflict of Interest and Reporting 33.1 MBARI shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. 33.2 MBARI affirms that to the best of its knowledge there exists no actual or potential conflict between MBARI's families, business or financial interest or its Services under this Agreement, and in the event of change in either its private interests or Services under this Agreement, it will raise with OCSD any question regarding possible conflict of interest which may arise as a result of such change. 34. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and MBARI. 35. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall be personally liable to MBARI, or any successor-in-interest, in the event of any default or breach by OCSD or for any amount which may become due to MBARI or to its successor, or for breach of any obligation of the terms of this Agreement. 36. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. 37. Read and Understood By signing this Agreement, MBARI represents that he has read and understood the terms and conditions of the Agreement. 38. Entire Agreement This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 7 of 8 Service Agreement 39. Notices All notices under this Agreement must be in writing. Written notice shall be delivered by personal service or sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Any facsimile notice must be followed within three(3)days by written notice. Rejection or other refusal to accept or the inability to deliver because of changed address for which no notice was given as provided hereunder shall be deemed to be receipt of the notice, demand or request sent. All notices shall be effective when first received at the following addresses: OCSD: Ludwig R. Lapus Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 MBARI: Basilio Martinez, CFO Monterey Bay Aquarium Research Institute 7700 Sandholdt Rd Moss Landing, CA 95039-9644 Each party shall provide the other party written notice of any change in address as soon as practicable. IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair, Board of Directors Dated: By: Clerk of the Board Dated: By: Contracts, Purchasing and Materials Management Division Manager COMPANY Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 8 of 8 Service Agreement ATTACHMENT "A" MBARI's Proposal dated May 26, 2016 May 26, 2016 Proposal to Orange County Sanitation District(OCSD) from the Monterey Bay Aquarium Research Institute (MBARI) Title: Ocean acidification and hypoxia moorings in the Southern California Bight Proposal period:August 1, 2016-July 31, 2017 Principal Investigator: Francisco Chavez Background Ocean acidification (OA) and hypoxia have been identified as threats to coastal ecosystems along the California coast. Ocean acidification,the slow absorption of fossil fuel derived atmospheric carbon dioxide,has been measured along the California coast and is occurring at about 2-3 pion CO2 per year.This slow uptake is decreasing ocean pH at about the rate of about 0.03 pH units per decade.At the same time oxygen in subsurface waters along the entire west coast is decreasing, most rapidly in the waters that are recruited by upwelling and mixing(40-200 meters depth).The processes causing this decline are several-fold but poorly constrained: 1) increases in surface primary productivity and vertical flux of organic material to depth; 2) a decrease in the ventilation of intermediate waters from higher well-oxygenated waters,and 3) a shallower thermocline and oxycline. Both 'natural"nutrient enrichment processes and/or human induced eutrophication can drive an increase in primary production and vertical carbon flux. A corollary of the decline in oxygen is that carbon dioxide and other inorganic nutrients such as nitrate are increasing.The increase in carbon dioxide acts to further decrease pH. Upwelling of water with higher nitrate further fuels primary production.OCSD oversees the release of treated sewage into the ocean and these treated waters contain nutrients that can fuel primary production,it is of great interest to OCSD to monitor changing ocean chemistry.While local chemical conditions are of interest, knowing if the local patterns are associated with large-scale changes is of great value.Therefore, if the local monitoring is part of a larger scale array,the value of the local effort is greatly increased. Orange County Sanitation District Interest The Orange County Sanitation District(OCSD) discharges highly treated effluent off the southern portion of the San Pedro Shelf As a requirement of its NPDES discharge permit, OCSD and the other large southern California dischargers, conduct an extensive water quality monitoring program that evaluates the potential impacts from this discharge to pH and oxygen in the receiving waters. Both pH and oxygen have compliance limits contained in the California Ocean Plan that all dischargers are required to meet. To better determine local impacts from outfall discharges,the four large southern California dischargers - City of Los Angeles,Sanitation Districts of Los Angeles County, City of San Diego,and OCSD -are all working collaboratively to begin better measurements of pH and oxygen around their local outfalls. This proposed effort is aimed toward assisting OCSD in this endeavor. MBARI Expertise MBARI has been collaborating with the ocean acidification (OA) and hypoxia community to first develop and then deploy small coastal moorings from Monterey Bay to Baja California beginning in 2009.We propose to continue a successful collaboration with OCSD started two years ago. During that time MBARI and OCSD collaboratively built and deployed an OA and hypoxia mooring.Under this proposal we will assist them in building a second mooring and continue support of the existing one.MBARI tasks associated with this proposal are listed below ("deliverables'). DELIVERABLES: 1) Build a mooring controller,power and telemetry system.This includes electronics,software and hardware. 2) Change the mooring telemetry from satellite to cellular. 3) Train OCSD personnel to fully support the mooring including building and calibrating pH sensors,and calibrating the pCOz system. 4) Hosting the data and posting quality control graphs on the internet. 5) Assisting and training OCSD personnel with quality control and data analysis. OCSD will directly purchase the necessary hardware to construct a fully operational buoy with the exception of the elements above.All mooring components,including those provided by MBARI will become the sole property of OCSD. In the ensuing years, MBARI will continue to support OCSD staff as it transitions to full operation of its OA moorings. MBARI tasks will include: 1) Initial data QA of data prior to posting on the web.This includes: a. Diagnostics and b. Summary figures. 2) Hosting OA mooring data. 3) Continuation of OCSD staff training and transfer MBARI data QA techniques to OCSD 4) Providing technical assistance/troubleshooting support as needed. There is no binding commitment from MBARI or OCSD to out years. 0 nw and ar y on Moony Sea Level Sea Tavel _ 02 C D pH W.of 71W NiWn SM 161M Inductive 30nn in tr n,an[auster 6 ra d In M Inu Instrument Ou II2.1dp 1Hk OWn Do1nI0l ArKhm 1 1 ; Figure 1.Proposed schematic of buoy for Orange County Sanitation District Budget Year 1 - $120,000 MBARI OA Mooring Budget Research Technician $31,000 Fringe Benefits $17,670 Supplies $29,300 Travel $1,500 Total Direct Costs $79,470 MTDC $79,470 Indirect Costs 51% $40,530 TOTAL $120,000 OPERATIONS COMMITTEE MaaHngDae TOBd.ofDir. 07/O6/16 07/27/16 AGENDA REPORT Item Item Number 4 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James E. Colston, Director of Environmental Services SUBJECT: INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY CONTRACT AMENDMENT 2015-2016 GENERAL MANAGER'S RECOMMENDATION Approve Contract Amendment number 4600001879-001 with Inland Empire Regional Composting Authority (IERCA) for the Orange County Sanitation District to 1) use farm bed trailers to transport biosolids to the Inland Empire Regional Composting Facility, and 2) pay to IERCA for biosolids received and processed at a base fee of $55.00 per wet ton, plus an administrative fee of $2.00 per wet ton and any other adjustments provided for in the original. This Contract Amendment shall serve as the first annual renewal of three one-year renewal options of the original agreement in a total annual amount not to exceed $900,000/year for IERCA to receive and compost up to 50 wet tons per day (Monday thru Friday) of OCSD's biosolids. BACKGROUND On June 1, 2015, Orange County Sanitation District (Sanitation District) executed an agreement with IERCA to receive and compost up to 50 wet tons per day of biosolids at a tipping fee of $54 per wet ton and an administrative fee of$2 per wet ton exclusive of trucking costs. The agreement term was for one-year commencing on the date of execution of the agreement, with three one-year renewal options in a total annual amount not to exceed $900,000/per year. IERCA intends to exercise the first annual renewal and section 7.1 of the original agreement to adjust the tipping fee from $54 per wet tons of biosolids to $55 per wet tons of biosolids, which is a $1 per ton increase. The administrative fee of $2 per wet ton of biosolids remains the same. With a hauling fee of$14.99 per ton (services provided by Denali contract executed on May 3, 2016), the total cost is $71.99 per ton. In addition to the fee adjustment, IERCA is requiring the Sanitation District to use farm bed trailers to transport biosolids to the Inland Empire Regional Composting Facility. The Sanitation District's current hauler (Denali) meets the trailer specifications. RELEVANT STANDARDS • Ocean Discharge Permit, NPDES CA0110604 §VI.C.4.b Sludge (Biosolids) Requirements Page 1 of 3 • Resolution No. OCSD 13-03 Biosolids Recycling Policy • Safe beneficial reuse of Biosolids PROBLEM The existing contract agreement between IERCA and the Sanitation District has expired. The Sanitation District is currently not sending biosolids to IERCA's compost facility, which lessens the biosolids management diversity. PROPOSED SOLUTION Approve contract amendment to continue biosolids management diversity and sustainability while supporting a local, in-basin management option. TIMING CONCERNS IECRA provided a contract amendment on June 10, 2016, nine (9)days after the original contract expired on June 1, 2016. Presently, the Sanitation District is not sending biosolids to IECRA. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will not be able to utilize this local biosolids management option that is within the basin. PRIOR COMMITTEE/BOARD ACTIONS May 27, 2015 — Approved an Agreement with Inland Empire Regional Composting Authority(IERCA)to receive and compost up to 50 wet tons per day of the Orange County Sanitation District's Class B biosolids. ADDITIONAL INFORMATION N/A CEQA CEQA Analysis Reference: 1) November 7, 2012 Agenda Report - Waste Disposal Agreement with Orange County Waste and Recycling, and May 27, 2015 Agenda Report — Composting Agreement with Inland Empire Regional Composting Authority. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Section 6, Page 84). Project contingency funds will not be used for this amendment. Page 2 of 3 ATTACHMENT The following attechment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package.: • Contract Amendment • Original Contract Page 3 of 3 INLAND EMPIRE REGIONAL COMPOSTING A U T H O R I T Y CONTRACT AMENDMENT NUMBER: 4600001879.001 TO CONTRACT NUMBER: 4600001879 FOR THE REUSE OF BIOSOLIDS THIS CONTRACT AMENDMENT NUMBER 4600001879-001, is made and entered into this day of , 2016, by and between the Inland Empire Regional Composting Authority, a Joint Powers Authority, organized and existing in the County of San Bernardino under and by virtue of the laws of the State of California (hereinafter referred to as "Authority"or"IERCF"), and the Orange County Sanitation District("the District')shall revise the Contract as follows: REVISE SECTION 2. BIOSOLIDS TRANSPORTATION AND REUSE, TO READ: Strike all of the current text of Section 2.4; replacing it with: '2.4 The District shall use farm bed trailers to transport Biosolids to the Site. Trailers delivering Biosolids to the Site must meet the following clearance specifications to off-load material into the biosolids hoppers:' Strike all of the current text of Section 2.4.2 (because it is specific to end dump trailers). REVISE SECTION 7. FEE FOR BIOSOLIDS REUSE, TO READ: Strike all of the current text of Section 7.1; replacing it with: "7.1 The District shall pay to the Authority for Biosolids, received and processed, at a base fee of$55.00 per wet ton, plus an administrative fee of $2.00 per wet ton, and any other adjustments provided for in this Agreement. The District shall pay all hauling and transportation-related costs." REVISE SECTION 12, DURATION OF AGREEMENT, ADDING A PARAGRAPH TO READ: Effective with full execution of Contract Amendment Number 4600001879-001, this Agreement will continue in effect for a period of one (more)year; until June 1, 2017. The Parties may, upon mutual written agreement, extend the duration of the Agreement on a year-to-year basis with up to two more annual extensions. Contract Amendment Number 4600001879-001 HD 1 of 2 6/10/2016 AS WITNESS HEREOF, the parties hereto have caused the Contract to be entered as of the day and year written above. INLAND EMPIRE REGIONAL ORANGE COUNTY SANITATION DISTRICT: COMPOSTING AUTHORITY: Jeff Ziegenbein (Date) John Nielson (Date) Project Manager Chair of the Board of Directors Kelly Lore (Date) Clerk of the Board Contract Amendment Number 4600001879-001 HD 2 of 2 6/10/2016 � 1 INLAND EMPIRE REGIONAL COMPOSTING A U T H O R I T Y AGREEMENT NUMBER 4600001879 FOR THE REUSE OF BIOSOLIDS This Agreement, for the Reuse of Biosolids ("Agreement"), dated �,nne (1 2or5. 2015 ("Effective Date"), and is between the Inland Empire Regional Composting Authority (IERCA, or 'the Authority") and the Orange County Sanitation District ("the District"). The Authority and the District are referred to in this Agreement collectively as "the Parties." The Authority is a Joint Powers Authority formed by and between the Inland Empire Utilities Agency (IEUA), a Municipal Water District organized and operating pursuant to the California Water Code Sections 71000, er seq., and County Sanitation District No. 2 of Los Angeles County (LACSD), a special district organized and operating pursuant to the California Health and Safety Code Sections 4700,el seq. The Authority operates the Inland Empire Regional Composting Facility(IERCF) located at 12645 Sixth Street, Rancho Cucamonga, CA 91739 ("the Site").The Authority has all permits and approvals necessary for operation of the Site and desires to reuse Biosolids produced at the District's facilities. I. DEFINITIONS 1.1 Biosolids means municipal sewage sludge resulting from the treatment of wastewater at the District's facilities that is digested and meets Class B and Table 3 quality standards for land application under Part 503 of Title 40 of the Code of Federal Regulations, "Standards for the Use and Disposal of Sewage Sludge" ("Part 503 Rule"), and dewatered to an annual average of approximately 15%total solids or greater. 1.2 State Certified Weigh Station means any truck weigh station permitted by the State of California to certify weights for commerce. 1.3 Weighmaster's Certificates means certificates obtained in accordance with weighing procedures prescribed in Chapter 7(commencing with Section 12700)of Division 5 of the California Business and Professions Code administered by the Division of Measurement Standards of the California Department of Food and Agriculture. 1 2. BIOSOLIDS TRANSPORTATION AND REUSE 2.1 The District shall transport up to approximately 250 wet tons per week, or 50 wet tons per day of Biosolids from its facilities to the Site for composting, Monday through Friday. This quantity is subject to change and may be adjusted by agreement of the Parties. 2.2 Site delivery hours are from 6:30AM to 2:30PM, Monday through Friday. Hours may change at the sole discretion of the Authority. 2.3 In event the District wishes to deliver to the Site sewage sludge that does not meet the Part 503 Rule Class B Biosolids Pathogen Reduction Requirements specific to mean cell residence time and temperature for anaerobic digestion, the District shall notify the Authority within reasonable time and request approval to deliver for compost such material in accordance with applicable legal requirements as detailed in Section 3 of this Agreement. The Authority reserves the right not to accept and process such sewage sludge material at the Site. 2.4 The District shall use end dump trailers or fans beds to transport Biosolids to the Site. End dumps may not have extended aprons on the rear of the trailers. Trailers delivering Biosolids to the Site must meet the following clearance specifications to off-load material into the biosolids hoppers: 2.4.1 All live bottom belt type trailers require a minimum clear distance of 15" between the ground surface and any trailer structure beyond or past the rear tires. This requirement does not apply to any flexible structure like a mud flap. Flexible structures may be removed or re-positioned to allow adequate clearance; 2.4.2 All end dump trailers must possess the required belt trailers clearance in addition to having a minimum clearance of 19" between the ground surface and any fixed trailer structure when the trailer is in the fully raised or in the dumping position. 2.5 The Authority shall compost all Biosolids in accordance with applicable legal requirements as detailed in Section 3 of this Agreement. The Authority may not use any other method of reuse for the Biosolids without the prior written agreement of the District. 2.6 The Authority shall determine and record the total tonnage delivered to the Site. The truck weigh station at the Site is certified by the State and will be used to issue a Weighmaster's Certificate for each load measured. The Authority shall use the Site's measured tonnage for its billing to the District. Weighmaster's Certificates submitted by the Authority will show the certified gross weight of each load in each billing and the certified tare weight of each vehicle. 3. PERMITS AND REGULATORY COMPLIANCE 3.1 The Authority shall obtain and maintain in effect all necessary licenses, Permits, and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The Authority and all processes utilized at the Site shall comply with all applicable local, state, and federal laws, rules, regulations, and pronouncements, including but not limited to the following: 2 3.1.1 The Authority shall perform all activities and operations in accordance with the requirements, as applicable, of the California Regional Water Quality Control Board- Santa Ana Region, California State Water Resources Control Board, including the General Order (General Waste Discharge Requirements for the Discharge of Biosolids to Land for Use in Agricultural, Silvicultural, Horticultural, and Land Reclamation Activities), Parts 257 and 503 of Title 40 of the Code of Federal Regulations (Criteria for Classification of Solid Waste Disposal Facilities and Practices-Application to Land Used for the Production of Food Chain Crops and Standards for the Use and Disposal of Sewage Sludge, respectively), South Coast Air Quality Management District Rule 1133.2. The Authority shall also operate in compliance with all current waste discharge requirements contained in the NPDES permits for the District's facility(s)that serves as the source(s)of Biosolids delivered to the Authority. District shall make their NPDES permit available to the Authority upon request. 3.1.2 The Authority acknowledges that Part 503 of Title 40 of the Code of Federal Regulations is a self-implementing rule and that the Authority's activities and operations performed at the Site must comply with all applicable general requirements of the rule, including, but not limited to: pollutant limits, management practices, operational standards, monitoring,recordkeeping, and reporting.The Authority shall provide all information relevant to the activities and operations at the Sites that the District may need or request to complete NPDES or other permit applications or reports. 3.2 The District shall obtain and maintain in effect all necessary licenses,permits,and other approvals legally required in order to perform all activities and operations provided for in this Agreement. The District and Biosolids-generating processes at its facilities shall comply with all applicable local, state, and federal laws, rules, and regulations and orders, including but not limited to Part 503 of Title 40 of the Code of Federal Regulations. The District may transport to the Site only Biosolids that meet the Class B pathogen reduction requirements of 503.32(b), vector attraction reduction requirements of 503.33(b)(1), and metals concentration limits of 503.13(b)(3)Table 3, unless other arrangement are made per Section 2.3. 4. SITE INSPECTION, MONITORING,RECORDKEEPING,AND REPORTS 4.1 The Authority shall grant the District and its representatives access to the Site during normal business hours to conduct inspections of the composting activities. The District shall likewise grant the Authority and its representatives access to its treatment facilities during normal business hours. 4.2 The Authority shall keep complete and correct daily records of all composting activities, including: the date, the origin, and quantity of each load of Biosolids composted; site management practices; and any sampling and laboratory test results regarding the composting program. The Authority shall grant the District timely access to all such records. Likewise, the Authority shall have timely access to the District's Biosolids records and data demonstrating compliance with all federal,state,and local laws,regulations and orders. 3 4.3 The Authority shall submit monthly reports to the District that demonstrate compliance with all required permits and authorizations. The Authority shall submit the reports within 30 days after the close of each reporting period.The reports must include, at a minimum, a description of all activities and operations performed during the reporting period, the items described in Section 4.2, and a certification that all activities and operations were performed in compliance with all applicable regulations. The Authority shall forward to the District, within five days of receipt or transmission, copies of all correspondence with regulatory agencies in regards to the activities or operations performed at the Site. Similarly, the District shall furnish monthly, annual, and other periodic reports to the Authority detailing and certifying compliance with permits and applicable regulations. The District shall provide all information relevant to its operations that the Authority may need or request to complete regulatory reports or permits. 4.4 The Parties agree to notify one another by no later than the next business day of its receipt of any notice, whether formal or informal, of a legal, governmental, judicial, administrative, or similar proceeding, action, or enforcement, pending or threatened, that may affect its ability to lawfully fulfill obligations of this Agreement. The District shall forward to the Authority, within 5 days of receipt or transmission by the District, copies of all correspondence with regulatory agencies in regards to its Biosolids operations. 4.5 The District shall perform all sampling for any monitoring and laboratory analyses of Biosolids required by any federal, state, or local laws, regulations or orders prior to transporting such Biosolids to the Authority. The Authority shall perform all other monitoring and laboratory analyses required by any federal, state, or local laws, regulations, or orders including, but not limited to, any monitoring or laboratory analysis of Biosolids after receipt by the Authority. 5. COMPOSITION OF BIOSOLIDS The District warrants that all Biosolids released to the Authority will be non-hazardous under Title 22, Division 4.5, Chapter 11, Article 3 of the California Code of Regulations. Neither the District nor the Authority shall add any material to the Biosolids that is classified as hazardous, or which creates by-products or residues classified as hazardous, under federal or state laws,regulations,or orders. 6. INCLEMENT WEATHER 6.1 The Parties shall each provide any facilities necessary to ensure their ability to remove, transport,and compost Biosolids during typical inclement weather. 6.2 The Parties acknowledge that severe weather conditions may reduce or suspend the Parties' abilities to deliver and/or compost Biosolids. If either Party reasonably determines that a reduction or suspension is necessary, the Party shall provide the other Party, to the extent reasonably possible: 1)a 24-hour minimum notice of reduction or cessation of operations; and 2) an estimate of when the operations will resume. See also Section 11,Force Majeure. 4 7. FEE FOR BIOSOLIDS REUSE 7.1 The District shall pay to the Authority for Biosolids received and processed at a base fee of$54.00 per wet ton, plus an administrative fee of$2.00 per wet ton, and any other adjustments provided for in this Agreement. The District shall pay all hauling and transportation-related costs. 7.2 The Authority shall submit invoices to the District on a monthly basis and the District shall make payment to the Authority within thirty(30)days of receipt. 7.3 If the term of this Agreement extends beyond the initial one-year term provided for in Section 12 below,either the District or the Authority may request an adjustment in the fee. 7.4 If during the tern of this Agreement, the Authority incurs a new and unforeseen fee or other cost not previously paid by the Authority, the Authority may request an adjustment in the fee. The Authority shall provide written documentation to the District verifying the increased cost. Rate increases during the current tern will not exceed the annual Consumer Price Index for the Los Angeles-Orange County Metropolitan Area for all urban consumers (CPI-U) available as of the date of the requested rate increase. The annual CPI-U will not be justification for any rate reduction. 8. OWNERSHIP OF BIOSOLIDS 8.1 The District shall retain ownership of all Biosolids during transport, up to and including off-loading of the Biosolids from the District's trucks. The District shall at all times manage, direct, oversee, and/or conduct operations during transport, and is responsible for leakage prevention and spill mitigation, and compliance with all applicable environmental regulations. 8.2 The Authority shall become the owner of all Biosolids delivered to the Site after off-loading and acceptance of the Biosolids from the District's trucks. The Authority shall compost all Biosolids in accordance with this Agreement. The Authority may not use or dispose of the Biosolids in any other manner without written consent from the District. The Authority shall comply with all applicable laws and regulations in connection with the marketing,use,and sale of the composted Biosolids. 9. INSURANCE The District shall require its contractors transporting Biosolids to the Site to obtain and keep in force during the term of this Agreement, at their sole expense, comprehensive general liability insurance with endorsements naming the Authority as an additional insured, covering the transportation of Biosolids in any vehicle whether owned or leased, whether liability is attributable to the District or the Authority. The policy or policies must insure the Authority, its directors, officers, employees, and agents against all claims arising out of or in connection with the activities and operations relating to the transportation and delivery of Biosolids to the 5 Facility. The coverage must provide the following minimum limits, which may be increased during the term of this Agreement as requested by the Authority in writing and agreed to in writing by the District: Automobile Liability: Bodily Injury $5,000,000 each person $5,000,000 each occurrence Property Damage $5,000,000 each occurrence $5,000,000 aggregate General Liability: Bodily Injury $5,000,000 each occurrence $5,000,000 aggregate products and completed operations Property Damage $5,000,000 each occurrence $5,000,000 aggregate Coverage must be provided by an insurer that has at least an "A" Policy Holder's Rating and"X" Financial Rating in accordance with the current Best's Key Rating Guide. 9.1 The Contractor shall provide the Authority with evidence of coverage by providing certificates of insurance and endorsements and,at the Authority's request, copies of all required policies plus all attached endorsements for the Authority's review. 9.2 The Contractor shall demonstrate to the Authority that it carries Workers Compensation Insurance in accordance with legal requirements and Waiver of Subrogation. 10. INDEMNITY In contemplation of the provisions of Section 895.2 of the California Government Code imposing certain tort liability jointly upon public entities solely by reason of such entities being parties to an agreement as defined by Section 895 of the Government Code,each Party,pursuant to the authorization contained in Sections 895.4 and 895.6 of the Government Code, hereby agrees to and shall indemnify and hold harmless the other Party,and its elected officials,officers, agents, and employees from and against any and all losses, liability, damages, claims, suits, actions, and administrative proceedings or demands (including reasonable attorney's fees) relating to acts or omissions of the indemnitor, its officers, agents, or employees arising out of or incidental to the performance of any of the provisions of this Agreement. Neither Party assumes liability for the acts or omissions of persons other than each Party's respective officers, agents,or employees. In the event judgment is entered against the Parties because of joint or concurrent negligence of the Parties, or their officers, agents, or employees, an apportionment of liability to pay such judgment shall be made by a Court of competent jurisdiction. This section shall survive termination of the Agreement. 6 11. FORCE MAJEURE Neither the Authority nor the District shall be responsible or liable for failure to meet their respective obligations under this Agreement if such failure is due to causes beyond the Authority's or the District's control. Such causes include, but are not limited to: strikes, fire, flood,civil disorder,acts of God or of a public enemy,acts of the federal government,or any unit of state or local government in either its sovereign or contractual capacity,epidemics,freight embargoes or delays in transportation, and changes in federal, state,or local law that renders the District's Biosolids impermissible for transportation or composting. Each Party shall immediately notify the other Party via email to administrative staff and in writing, in accordance with Section 15,of the occurrence of any condition believed to constitute a force majeure under this section. If a condition of force majeure exists for 30 days or more, either Party may terminate this Agreement by giving notice in writing in accordance with Section 15. The notice will become effective 24 hours after receipt. 12. DURATION OF AGREEMENT This Agreement will be effective on the Effective Date and will continue in effect for a period of one year. The Parties may, upon mutual written agreement,extend the duration of the Agreement on a year to year basis with up to three annual extensions. 13. SUSPENSION,TERMINATION, AND EARLY TERMINATION 13.1 Suspension. The Authority may suspend its receipt of Biosolids if it determines that the District can no longer timely and legally perform the required obligations of this Agreement. Likewise, the District may suspend shipments of Biosolids if it determines that the Authority can no longer timely or legally perform the required services, or if unacceptable conditions exist at the Site.The suspending Party may lift the suspension and allow operations to resume if it determines that any unacceptable conditions have been corrected. 13.2 Termination. Either Party may terminate this Agreement by providing the other Party with a 90-day notice in writing in accordance with Section 15. 13.3 Early Termination. The Authority and the District, by written agreement, may terminate this Agreement at any time. 14. ADDITIONAL PROVISIONS 14.1 Entire Agreement. This Agreement represents the entire agreement and understanding between the Authority and the District as to those matters stated in this Agreement. No prior oral or written understanding is of any force or effect in regard to any matter covered by this Agreement. 7 14.2 Assignment. Neither the Authority nor the District may sell, assign, or sub- contract its interest and/or obligations in this Agreement without the prior written and mutual agreement of the Parties. 14.3 Governing Law. The provisions of this Agreement will be interpreted and enforced in accordance with the laws of the State of California. 14.4 Counterparts. This Agreement may be executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 15. NOTICE Except as otherwise required, any notice,payment, or instrument required or permitted to be given under this Agreement will be deemed received upon a signed receipt of personal delivery or 72 hours after deposit in any United States Post Office, registered or certified, postage prepaid and addressed to the Party for whom intended,as follows: TO THE AUTHORITY: Inland Empire Regional Composting Authority Attn:Jeff Ziegenbein 12645 Sixth Street Rancho Cucamonga,CA 91739 TO THE DISTRICT: Orange County Sanitation District Attn:General Manager Post Office Box 8127 Fountain Valley,Ca 92728-8127 [SIGNATURE PAGE FOLLOWS] 8 IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed as of the day and year first above written. ORANGE COUNTY SANITATION DISTRICT By: Tom B amish air fthe Board Directors By: elly Wore Cie 4f the Board of Directors APPROVED AS TO FORM: By: G ral o sel INLAND EMPIRE REGIONAL COMPOSTING AUTHORITY C-2n, Jeff Ziegen ei Project Manager 9 OPERATIONS COMMITTEE MaaHngDae TOBd.OfDir. 07/O6/16 07/27/16 AGENDA REPORT Item Item Number 6 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Ed Torres, Director of Operations and Maintenance SUBJECT: AGREEMENT FOR PURCHASE OF NATURAL GAS, SPECIFICATION NO. C-2016-778BD GENERAL MANAGER'S RECOMMENDATION A. Approve an agreement to Constellation NewEnergy — Gas Division, LLC for the purchase of Natural Gas, Specification No. C-2016-778BD for the period August 1, 2016 through July 31, 2017 for a monthly index unit price of $0.039 per Million British Thermal Units (MMBtu)for a total estimated annual cost of $296,000, with four (4) one-year renewal options; and B. Approve unit price contingency of (10%). BACKGROUND Orange County Sanitation District's (Sanitation District's) Central Generation (CenGen) facilities at Plant No's 1 and 2 generate approximately 2/3's of the power required for the treatment plant processes. The engines run primarily on digester gas and supplement with a small amount of natural gas except during summer peak power periods where additional engine at each plant is run on natural gas. The digester gas is available as a useful byproduct of the Sanitation District solids processing, and natural gas is purchased as a bulk commodity from a third-party energy marketing firm and is delivered through regional pipelines owned by Southern California Gas Company. The Sanitation District has utilized gas marketing firms for over twenty-one years to effectively manage the cost of natural gas required for CenGen operation. RELEVANT STANDARDS • Ensure that the public's money is wisely spent • Use all practical and effective means for recovering energy • Maintain a culture of improving efficiency PROBLEM Present purchase order for procurement and management of natural gas is due to expire on July 31, 2016. Page 1 of 2 PROPOSED SOLUTION Award a new purchase order agreement to Constellation NewEnergy—Gas Division, LLC for the purchase of natural gas. Utilization of natural gas has been an essential tool in controlling overall CenGen operating costs which saves money by reducing electrical power costs principally during summer peak power periods. TIMING CONCERNS The current purchase order is due to expire July 31, 2016. RAMIFICATIONS OF NOT TAKING ACTION If a new purchase order agreement is not awarded before the existing contract expires, a short-term emergency supply arrangement would have to be made with Southern California Gas which could result in increased gas costs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION A competitive bid was advertised on April 15, 2016. One bid was received on May 24, 2016. The bid was evaluated in accordance with the OCSD policies and procedures. Staff recommends awarding a new purchase order contract to Constellation NewEnergy—Gas Division, LLC for supply of natural gas. The unit cost of$0.039/MMBtu is a decrease from the previous (FY15/16 contract) rate of$0.08/MMBtu. CECIA N/A FINANCIAL CONSIDERATION This request complies with authority levels of OCSD's Purchasing Ordinance. This item has been included in the Operating Budget, Division 830 Utilities (Section 6, p. 84) and Division 840, Utilities (Section 6, Page 88). Dale of Approval Unit Cost Contingency 07/27/16 $0.039/MMBtu(unit price) 10%(unit price) ATTACHMENT The following attachmentia) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Master Retail Natural Gas Supply Agreement Page 2 of 2 C0nstellation. MASTER RETAIL NATURAL GAS SUPPLY AGREEMENT n„aew„comrem This Master Retail Natural Gas Supply Agreement("Master Agreement")is entered into as of July 12,2016("Effective Date")by and between Orange County Sanitation District ("Customer") and Constellation NewEnergy — Gas Division, LLC ("CNEG'). CNEG and Customer are sometimes referred to individually as a"Party'and collectively as the"Parties' This Master Agreement sets forth the general terms and conditions governing transactions for the purchase and sale of natural gas and related products and services(each a"Transaction")to one or more of Customer's accounts or facilities(each a"Facility')as agreed to from time to time. Each Transaction may be evidenced by a transaction confirmation (each a"TC"). The Parties may further agree to implement certain strategies or related services,the specifics of which will be set forth in a rider executed by the Parties (each a "Rider"). Each TC and Rider shall constitute part of and shall be subject to this Master Agreement. This Master Agreement and each TC and Rider shall constitute a single integrated agreement between the Parties(collectively referred to as the'Agreemeni In the event of a conflict between(i)a TO,(ii)a Rider, (in)the terms and conditions of this Master Agreement,and IN)any oral agreement of the Parties as to a Transaction,the terms shall govern in the priority listed in this sentence. The Parties intend that they are legally bound by the terms of each Transaction from the moment each Party agrees to those terms,whether(1) via electronic transmission, fi)written record,or(iii)orally. Nothing in this Agreement obligates either Party to enter into a Transaction at any time. Any applicable requirement that a Transaction be "in writing' and "signed" shall be deemed to have been satisfied by this Master Agreement,by the Parties'signatures below and their express agreement to these procedures. CNEG shall have the exclusive right to confirm any Transaction by sending Customer a written TC, substantially in the form attached hereto as Exhibit A or otherwise, by facsimile,e-mail or other means. Notwithstanding any provision to the contrary in this Master Agreement,failure to send a TC shall not invalidate a Transaction agreed to by the Parties. If CNEG sends a TC and Customer fails to object in writing to any term in the TC within two(2)Business Days,the TC shall constitute the definitive will expression of the Transaction. "Business Day means any day except a Saturday, Sunday, or a Federal Reserve Bank holiday and shall open at 8:00 a.m.and close at 5:00 p.m.Eastern Prevailing Time. 1. CNEG and Customer Obligations. Natural Gas Supply. CNEG shall sell and supply, and Customer shall purchase and receive, the Contract Quantity for each Facility identified in a TC or Rider. "Contract Quantity"means the quantity of gas to be delivered and received pursuant to a TC. Such deliveries and receipts of natural gas shall be on a Firm, Secondary Finn or Interruptible basis, or otherwise as described in a TC. 'Firm" means deliveries and receipts may not be interrupted without liability except for reasons of Force Majeure. "Secondary Firm" means deliveries and receipts will be on a best-efforts basis up to Customer's maximum daily quantity and performance may be interrupted without liability to the extent that one or more of the following conditions are present: (i) Force Majeure; (it) curtailment by the local distribution company owning and/or controlling and maintaining the distribution system required for delivery of gas to the Facility(ies) (the "Utility'); (III) curtailment of supply by a natural gas supplier; (iv)curtailment of storage by a storage provider; (v)curtailment of transportation by a gas gathering or pipeline company, or UMily(each a "Transporter"'), transporting gas for CNEG or Customer downstream or upstream of the Delivery Point(s), including, but not limited to,transportation between secondary firm points; (vi)recall of transportation capacity release by its releaser;or(vii)curtailment of gas production behind a specific meter. "Interruptible"means deliveries and receipts may be interrupted at any time for any reason except for Customers obligation to take and pay for gas it nominates and CNEG's obligation to honor the price set forth in the TC. The terms of any Transaction between CNEG and Customer shall be as set forth on the applicable TC, but CNEG will procure gas from its suppliers on terms CNEG deems appropriate. CNEG holds title to the gas and has the sole responsibility to deliver,or Cause to be delivered, the natural gas to the applicable Delivery Point. Title shall pass to Customer at the Delivery Point and Customer shall have the sole responsibility for transporting the gas from the Delivery Point. "Delivery Point" means the city gate interconnection between the Utility and the upstream Transporter or such other delivery point($) as are agreed in a TC. However, to the extent that Customer owned transportation capacity is used to deliver natural gas to the Customer,the Delivery Point shall be the receipt point of such capacity. Failure to Deliver or Receive.The sole and exclusive remedy of the Parties in the event of a breach of an obligation to deliver or receive gas shall be the following: (a)If CNEG fails to deliver gas(other than Interruptible)for a reason other than Customer's breach, CNEG shall pay Customer the"Replacement Cost,"which is the amount Customer actually pays to replace the undelivered Contract Quantity less the amount Customer would have paid under this Agreement for such Contract Quantity. (b) If Customer fails to receive gas (other than Interruptible)for a reason other than CNEG's breach, Customer shall pay CNEG the "Revenue Loss," which is the amount that CNEG would have received for the sale of the unreceived Contract Quantity pursuant to this Agreement less (i)the amount actually received by CNEG in an alternate sale, plus any incremental costs, or(ii) if no alternate sale takes place,the amount CNEG would have received by reselling such Contract Quantity at spot market prices at or near the Delivery Pmnl(s), as determined by CNEG in a commercially reasonable manner. CNEG and Customer shall exercise commercially reasonable efforts to mitigate any Revenue Loss or Replacement Cost, respectively. If the calculation of the Replacement Cost or Revenue Loss results in a negative number, then the amount shall be deemed to equal zero. Nominations.The Parties shall coordinate nomination activities, giving sufficient time to meet the deadlines of the affected Transporter($). If Customer or the Utility fails to provide CNEG with a usage nomination for any month in a timely manner, CNEG (i) may establish a nomination for such month in a commercially reasonable manner based on Customer's historical usage data available to CNEG, and fi) shall have the right to use and rely on such nomination unless notified otherwise by Customer or the Utility. If a Party becomes aware that actual deliveries are greater or lesser than the quantity of gas confirmed by a Transporter for movement,transportation or management, the Party shall promptly notify the other Party.Usage nominations may be made orally,in writing,by facsimile or by electronic means. Imbalances.The Parties shall use commercially reasonable efforts to avoid imposition of any fees, penalties, cash-outs,costs or charges (in cash or in kind) assessed by a Transporter for failure to satisfy balancing andlor nomination requirements("Imbalance Charges"). If either Party receives an invoice from a Transporter that includes Imbalance Charges, the Parties shall determine the validity and cause of such Imbalance Charges. The Party Causing the imposition of the Imbalance Charges will be responsible to pay such Imbalance Charges. Transporter Restrictions. If either Party receives an operational flow order or any other usage or operating instructions, restrictions or similar notice (each an "OFO") from a Transporter requiring action to be taken in connection with the flow andlor consumption of gas covered by this Agreement, such party will use commercially reasonable efforts to notify the other party of such event in a timely manner. Such notice may be given by electronic means. Each Party will take all commercially reasonable actions required by the OFO within the time prescribed. If OFO penalties, charges, fees, costs or expenses result from the actions or inactions of one Party, then such Party shall be solely responsible for any such penalties,charges,fees,costs or expenses. Both parties agree that OFOs may require one or both parties to Prepared:EW NonStandard:N30,Legal Revisbns CONFIDENTIAL I CNEG19379 Page 11 Verson 3.2.16 a101fi Coretdletian Ev,,Rewui LLC.AlingM1breserved. buy or sell gas quantities in the then-current market conditions, which may be appreciably higher or lower than me original pricing. If CNEG is responsible for nominations and balancing on a Transporter imposing an CFO or similar restriction, CNEG may (but is not required to) increase or decrease nominations,as appropriate,to avoid penalties. 2. Contract Term and Renewal. The term of this Master Agreement will commence on the Effective Date and shall remain in effect for a period of one(1)year.Customer may exercise the option to renew this Master Agreement for up to four(4)additional one year terms upon mutual agreement of the Parties. Any TC or Rider will continue to be governed by this Master Agreement until the TC or Rider has been separately terminated or expired. Term of TC. Each TC or Rider shall set form the applicable "Delivery Period' or term during which deliveries of natural gas are to be made and/or services are to be provided.CNEG shall not be liable for any failure to enroll or drop a Facility by any applicable start and end dales)set forth in the TC or Rider due to circumstances beyond its control. 3. Information and Authorization.Customer hereby authorizes CNEG to take such actions CNEG deems necessary to enroll each Facility with the Utility and to be served by CNEG and to otherwise meet CNEG's obligations under the Agreement, including executing on Customer's behalf any documents necessary to effectuate any Facility enrollment or election, undertaking the management of any storage or transportation capacity allocated to Customer by the Utility or other transporters, disposing of storage balances, adding or deleting Facility(ies)as necessary, receiving usage nominations from the Utility relating to Customers natural gas requirements, and other similar documents. Customer's signature on this Master Agreement constitutes Customer's written authorization for CNEG to obtain from time to time from the applicable Utility all current and historical natural gas billing, usage data and other related information. Customer shall take any actions,execute any documents and shall provide to CNEG any information as CNEG may reasonably require. 4. Billing and Payment. Billing. Customer will be billed for natural gas usage and related products and services supplied under the Agreement in one of the following ways based on availability and eligibility of each Facility, which may change from time to time: (a) Dual Billing: Customer will receive two invoices, one from CNEG for the natural gas supply and one from the Utility for the amounts payable by Customer for services provided by the Utility ('Delivery Charges"); (b)CNEG Consolidated Billing: Customer will receive one invoice from CNEG that includes both the natural gas supply charges and the Delivery Charges. In the case of CNEG Consolidated Billing, Customer agrees that (1) Customer remains exclusively liable to the Utility for all Delivery Charges, (ii) CNEG has no obligation to review Delivery Charges for accuracy, (III)should Customer dispute Delivery Charges,that is a matter for Customer and the Utility to resolve without any involvement or obligation on the part of CNEG, and (iv) CNEG may withhold any payments due to the Utility if Customer fails to pay CNEG invoices in accordance with this Master Agreement. Taxes. Customer shall pay all federal, stale, municipal and local taxes, duties, fees, levies, premiums or other charges imposed by any governmental authority, directly or indirectly, on or with respect to the natural gas and related products and services provided under the Agreement, including without limitation any production, severance or ad valorem taxes, and including any taxes enacted after the Effective Date (collectively, 'Taxes"). The term "Taxes" shall include any amounts imposed on Customer directly or on CNEG in its function as Customers supplier, and that are associated with the supply of gas to Customer (in which case the Customer shall be responsible to reimburse CNEG for such amounts). If Customer is exempt from any Taxes, Customer shall provide CNEG with any state and/or local exemption certificate prior to the issue date of Customer's first invoice. All Taxes invoiced to Customer under this Agreement will be included on the invoice or in the applicable fixed price as allowed by Law. Estimates. CNEG's ability to invoice Customer is dependent on the Transporter's ability to furnish CNEG with all necessary information, including Customers metered usage. When there is a delay in receiving information from the Transporter, CNEG will, to the extent necessary, estimate charges and credits for a billing period and reconcile such estimates against actual charges and credits in a future invoice(s). Each invoice is also subject to adjustment for errors in arithmetic,computation,meter readings or other errors. Interest shall not accrue on such adjustments. Payment. All amounts set forth in an invoice are payable to the Party issuing the invoice and will include, in addition to the natural gas supply charges, Delivery Charges, and Taxes, all other amounts related to the purchase and delivery of natural gas. CNEG's invoices will be sent to Customer in accordance with CNEG's normal billing cycle, as adjusted from time to time. CNEG's invoices are due and payable on the thirtieth (30w)day after the date of invoice or such other date as set forth in a Rider(the"Payment Dale")without offset or reduction of any kind,to the address set forth on the invoice. Invoices not paid on or before the Payment Date will accrue interest daily on outstanding amounts from the Payment Dale until paid in full,at the lesser of 1.5%per month or the highest rate permitted by law. Pricing Structures. "Contract Price" means the price for gas as set forth in the applicable TC or Rider. To the extent (a) there are beginning of the month nominated volumes where the price is not fixed, (b)a Facility requires additional natural gas quantities in excess of the nominated or fixed quantities set form in a TC or Rider,or(c)a Facility continues to receive natural gas from CNEG beyond the Delivery Period (where such deliveries will be considered month to month), all such natural gas will be placed at Market Price unless otherwise set forth in a TC or Rider. 'Market Price" means a price comprised of(i) the spot commodity cost of gas as determined by CNEG in its reasonable discretion, (ii) all related interstate and intrastate pipeline charges required to deliver gas to the Delivery Point, and (III) a reasonable market based margin. Market Price does not include any applicable Utility charges,including but not limited to Utility or pipeline balancing charges,unless otherwise agreed upon. Market Disruption. If the Contract Price is based in whole or in part upon a specified index and a Market Disruption Event occurs on a day on which the relevant source published or was to publish the relevant price, then the Parties shall negotiate in good faith to agree on an alternative method of determining the Contract Price. A"Market Disruption Event"is any one of the following:(a)failure of the specified index to announce or publish information necessary for determining the Contract Price; (b) the failure of trading to commence or the permanent discontinuation or material suspension of trading in the relevant options contract or commodity on the exchange or market acting as the specified index;(c)the temporary or permanent discontinuance or unavailability of the index; (d)the temporary or permanent closing of any exchange acting as the specified index; or(a)a material change in the formula for or the method of determining the relevant price component. Price Locks. Unless otherwise set forth in a TC or a Rider, Customer can request to lock In the commodity price for any month(s)at any time during the Delivery Period, prior to 12:00 p.m. EST/EDT on the final day of NVMEX Iasi day settlement for each applicable delivery month. Commodity purchase/sale prices exclude pipeline and Utility distribution charges. Customer also has the right to lock basis at a fixed price and at predetermined volumes. Basis includes Interstate and intrastate pipeline transportation but does not Include the commodity cost or the Delivery Charges. 5. Adequate Assurance. If CNEG has reasonable grounds:(i)to believe that Customers creditworthiness has become unsatisfactory;or(11) Prepared:EW Non-Standard:N30,Legal Revisions CONFIDENTIAL I CNEG19379 Page 2I Version 3.2.16 0131fi C..WI tian Enagr Rewui LLC.NIeghbreaerved. for insecurity with respect to Customer's performance under the Agreement, CNEG may demand, in writing, adequate assurance of future performance from Customer in a form, in an amount, from an issuer, and for a term, all as reasonably satisfactory to CNEG ("Adequate Assurance"). To satisfy a demand,Customer shall provide Adequate Assurance to CNEG within three(3)Business Days of the date of the written demand. If at any time CNEG requires Customer to prepay for gas, then (i) CNEG shall be under no obligation to deliver gas if Customer fails to pay any prepayment by its due date,and(ii)in the event the aggregate cost of any quantities of gas required by Customer in a month in excess of the scheduled nominated quantities exceeds $15,000.00, Customer shall pay CNEG the aggregate cost of such quantities within three(3)Business Days of CNEG's request for payment. 6. Event of Default.An"Event of Default"means any one of the following: (a)Customer's failure to make,when due,any payment required under the Agreement if not paid within five(5)Business Days(or such longer period required by applicable law)following written notice to Customer that a payment is past due; (b)any representation or warranty made by a Party in the Agreement is false or misleading in any material respect when made or ceases to remain true in all material respects during the term of the Agreement, if not cured within five(5) Business Days after written notice from the other Party; (c) Customer fails to provide the Adequate Assurance as provided in this Agreement;(d)the failure by a Party to perform any material obligation set forth in this Agreement(other than the events that are otherwise specifically covered as a separate Event of Default hereunder or a failure to deliver or receive gas) which is not cured within five (5) Business Days after receipt of written notice thereof; or(a)a Party: (i)makes an assignment or any general arrangement for the benefit of creditors; (it)has a liquidator, administrator, receiver,trustee,conservator or similar official appointed for it or any substantial portion of its property or assets(III)files a petition or otherwise commences,authorizes or acquiesces in the commencement of a proceeding or cause of action under any bankmptcy, insolvency,reorganization or similar law for the protection of creditors,or has such petition filed against it;(iv) otherwise becomes bankrupt or insolvent(however evidenced); (v)is unable to pay its debts as they fall due;or(vi)is dissolved(other than pursuant to a consolidation,amalgamation or merger). 7. Remedies Upon Event of Default. If an Event of Default occurs with respect to a Party(the-Defaulting Party"),the other Party(the'Non. Defaulting Party") may, in its discretion, at any time, (i)withhold any payments or suspend any deliveries hereunder and/or(ii)terminate the Agreement in whole or solely with respect to those Facility(ies)adversely affected by such Event of Default, upon written notice to the Defaulting Party setting forth the effective date of termination (the"Early Termination Date"). The Early Termination Date for any Facility located in New Jersey shall be no less than thirty(30)calendar days from the date of written notice of termination. Further, if Customer is the Defaulting Party,then CNEG may,without waiving any rights or remedies it may have,to the extent applicable, remove Customer from CNEG's managed balancing and/or storage pools and/or apply any storage balance at prevailing market prices as an offset against the amount owed to CNEG by Customer. If this Agreement is terminated, the Non-Defaulting Party will in good faith calculate a termination payment as set forth below and the owing Party shall pay such amount within three (3) Business Days of receipt of notice of the amount due. The Parties acknowledge and agree that any termination payment under the Agreement constitutes a reasonable approximation of harm or loss,and is not a penalty or punitive in any respect. The remedies under this Section 7 are the sole and exclusive remedies of the Non-Defaulting Party with respect to the occurrence of any Event of Default. As of the Early Termination Date, the Non-Defaulting Party shall determine: (i)the difference between the Contract Value and the Markel Value, such that the difference shall be due to the Customer if the Market Value exceeds the Contract Value and to CNEG if the opposite is the case; (ii)the Non-Defaulting Parry's Costs; and (III)the amount owed (whether or not then due) by each Party with respect to all gas delivered and received. The Non-Defaulting Party shall net or aggregate, as appropriate, any and all amounts owing between the Parties under this Section,so that all such amounts are netted or aggregated to a single liquidated amount payable by one Party to the other. "Costs" means, with respect to the Non-Defaulting Party, brokerage fees, commissions and other similar transaction costs and expenses reasonably incurred by such Party as a result of the Event of Default. The "Contract Value"shall be the Contract Price multiplied by the amount of gas,as determined by the Non-Defaulting Party,that would have been delivered under each terminated Rider or TC, had it not been terminated early(the "Terminated Volumes"). The "Markel Value" shall be the amount, as of the Early Termination Date, a third parry would pay for the Terminated Volumes at the Delivery Points)at current market prices. The Non-Defaulting Party may determine the Market Value of a terminated transaction by reference to information either available to it internally or supplied by one or more third parties including, without limitation, any or all of the settlement prices of NVMEX gas futures contracts, quotations from leading dealers, energy swap agreements or physical gas trading markets, similar sales or purchases, and any other bona fide offers from either third parties or affiliates of the Party, all as commercially available to the Party and adjusted for the length of the term and differences in transportation costs and other factors, as the Party reasonably determines. The Non-Defaulting Party shall not be required to enter into a replacement transaction in order to determine or be entitled to a termination payment. 8. Champs In Law.CNEG may pass through or allocate,as the case may be,to Customer any increase or decrease in CNEG's costs related to the natural gas and related products and services sold to Customer that results from the implementation of new, or changes (including changes to transportation rates) to existing, Laws, or other requirements or changes in administration or interpretation of Laws or other requirements. "Law" means any law, rule, regulation, ordinance, statute, judicial decision, administrative order, Transporter business practices or protocol,Transporter tariff,or rate of any commission or agency with jurisdiction in the stale in which the Facility(ies)is located. Such adjusted amounts will be included in subsequent invoices to Customer. 9. Representations and Warranties. Each Party warrants and represents to the other (now and deemed repeated by each Party on each date on which a TC or Rider is executed or deemed accepted)that:p)it is duly organized,validly operating and in good standing under the laws of the jurisdiction of its formation; (11)it is authorized and qualified to do business in the jurisdictions necessary to perform under the Agreement; (iii)execution, delivery and performance of the Agreement are duly authorized and do not violate any governing documents or any of its contracts or any applicable Law;(iv)there is no material evenl(s)or agmemenl(s)which would i midair that Parry's right,authority or ability to execute the Agreement and otherwise perform under the Agreement; and(v)it has the knowledge and experience to evaluate the merits and risks associated with the Agreement. Furthermore,Customer warrants,represents and covenants that:(i)the data given and representations made conceming its Facility(ies)are true and correct; (ii) it is entering into this Agreement to purchase its natural gas requirements only and not for speculative or resale purposes; and that the natural gas purchased under this Agreement will be consumed at the Facility ies);(III)it is the party of record of the Facility(ies),or if it is not the party of record,it has the authority to enter into and bind its principal to the Agreement;(iv)if any Transaction hereunder gives Customer the right to adjust the Contract Quantity, or to require CNEG to provide some other quantity of gas, Customer's election to exercise such right is based predominantly on supply and demand factors related to Customer's business; and(v)if Customer is a Governmental Entity, It will not claim immunity on grounds of sovereignty or similar grounds from enforcement of the Agreement. If It Is a Governmental Entity, Customer covenants to obtain all necessary budgetary approvals, appropriations and funding for all of its obligations under this Agreement,the failure of which shall not be an excuse for Governmental Entity's performance or failure to perform hereunder and upon request will provide proof of such authority."Governmental Entity"means a municipality,county,governmental board,governmental Prepared EW NonStansard:N30,Legal Revisbns CONFIDENTIAL I CNEG19379 Page 31 Version 3.2.16 O101fi Coretdletian Dvr,Remu.s,LLC.All deM1b reserved. department, commission, agency, bureau, administrative body, joint action agency, court or other similar political subdivision (including public school districts or special purpose district or authority),or public entity or instrumentality of the United States or one stale. 10.Form Maleure. Notwithstanding any other provision of this Agreement, where a Party is unable to deny out any obligation under the Agreement due to a Force Majeure event(other than a payment obligation, which will not be excused for Force Majeure), the Agreement will remain in effect but such obligation will be suspended for the period necessary as a result of the Force Majeure, provided that: (1)the Claiming Party gives the other Party,as soon as possible,written notice describing the particulars of the Force Majeure;(it)the suspension of performance is of no greater scope and of no longer duration than is required by the Force Majeure; and (in)the Claiming Party uses commercially reasonable efforts to remedy its inability to perform. "Force Majeure"means an event that is not within the reasonable control of the Party claiming Force Majeure("Claiming Party'),and that by the exercise of due diligence,the Claiming Party is unable to overcome the event in a commercially reasonable manner, and such event will not be deemed a breach or default under the Agreement. Force Majeure includes, but is not limited to, acts of God;fire; war;terrorism;flood; earthquake;civil disturbance; sabotage; facility failure;strike; curtailment,disruption or interruption of supply by a supplier or distribution or transportation by a Transporter(including without limitation as the result of an OFO);declaration of emergency by a Transportedid; regulatory,administrative,or legislative action,or action or restraint by court order or governmental authority;or any act or omission of a third party not under the control of the Claiming Party(including without limitation the Utility). 11.INDEMNIFICATION/DUTY TO DEFEND.CNEG shall assume all responsibility for damages to property and/or injures to persons, including accidental death, which may arise out of or be caused by CNEG's services under this Master Agreement, or by its subcontractor or by anyone directly or indirectly employed by CNEG, and whether such damage or injury shall accrue or be discovered before or after the termination of this Master Agreement. Except as to the sole active negligence or willful misconduct of Customer, CNEG shall indemnify, protect,defend and hold harmless Customer, its elected and appointed officials,officers, agents and employees,from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys'fees: (a)for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with CNEG's performance under this Master Agreement, and/or (b) on account of use of any copyrighted or uncopyrighted material, composition, or process, patented or untalented invention, article or appliance, furnished or used under this Master Agreement,and/or(c)on account of any goods and services provided under this Master Agreement. This indemnification provision shall apply to any acts or omissions,willful misconduct,or negligent misconduct, whether active or passive,on the part of CNEG or anyone employed by or working under CNEG.To the maximum extent permitted by law, CNEG's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meatless, or which involve claims or allegations that any of the parries to be defended were actively,passively,or concurrently negligent,or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. CNEG agrees to provide this defense immediately upon written notice from Customer, and with well qualified, adequately insured, and experienced legal counsel acceptable to Customer.This section shall survive the expiration or early termination of this Master Agreement. 12.Limitation of liability.Notwithstanding any other provision of the Agreement to the contrary,the entire liability of each Party for any and all Claims will be limited to direct actual damages only,subject in all cases to an affirmative obligation on the part of each Party to mitigate its damages,and neither Party will be liable for any consequential,exemplary,special,incidental or punitive damages,including,without limitation, lost opportunities or lost profits not contemplated by THE TERMINATION CALCULATION IN Section 7 above.Customer acknowledges and agrees that the Utility is exclusively responsible for the gas distribution and delivery system,that CNEG has no independent control over the Utility's systems and will have no liability for any of the Utility's acts or omissions. 13.DISCLAIMER. CUSTOMER ACKNOWLEDGES AND AGREES THAT NO WARRANTY, DUTY, OR REMEDY,WHETHER EXPRESSED, IMPLIED, OR STATUTORY, IS GIVEN OR INTENDED TO ARISE OUT OF THIS AGREEMENT EXCEPT AS OTHERWISE EXPRESSLY STATED HEREIN,AND CNEG SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. 14.Waiver and Severabllily. Failure to provide notice of, or object to, any default under this Agreement will not operate or be construed as a waiver of any knees default,whether like or different in character. If any portion of this Agreement, or application thereof to any person or circumstance, is held legally invalid, the remainder will not be affected and will be valid and enforced to the fullest extent permitted by law and equity,and there will be deemed substituted for the invalid provisions such provisions as will most nearly carry out the mutual intent of the Parties as expressed in this Agreement to the fullest extent permitted by applicable Law; provided, however, that this sevembility provision will not be applicable if any provision of Sections 6 and 7 of this Master Agreement(or any definition or provision in this Agreement to the extent it relates to,or is used in connection with,such sections)is held invalid or unenforceable. 15.Assignment.Customer may assign all its rights and obligations under this Agreement;provide d(a)it gives CNEG forty-five(45)days prior written notice of its intent to do so; (b)the assignee satisfies in full CNEG's credit requirements; (c)the assignee assumes in writing all of Customers obligations under the Agreement; and fell Customer continues to be liable for performance, including payment for goods and services received, prior to the assignment date. CNEG may assign, sell, pledge, transfer, or encumber any of its rights and obligations under this Agreement or the accounts,revenues,or proceeds hereof to: (a)a bank,insurer or other financial institution;or(b)any person or entity (i) succeeding to all or substantially all of CNEG's assets or business or the division or region of CNEG to which this Agreement relates or di) into which CNEG is merged or otherwise combined or reorganized; provided (with respect to this clause(b))the succeeding entity agrees to be bound to the Agreement;or(c)any affiliate of CNEG. 16.ConfidentialiN.To the extent allowed by law, each Party agrees to keep all terms and provisions of this Agreement and all communication provided in connection with this Agreement, including the pricing offered to Customer, confidential to the extent not otherwise publicly available and not to disclose them to any third parties without the prior written consent of the other Party,except as necessary to perform its obligations under this Agreement or as otherwise required by Law. Each Party may disclose such information to its affiliates and to its affiliates'employees, agents,advisors,and on a need to know basis,to its independent contractors,provided each such recipient agrees to hold such information in the strictest confidence. CNEG may disclose information respecting Customer to third parties that are representing Customer in the purchase of gas or related services. Furthermore, CNEG may make such other disclosures to third parties of information, including aggregate consumption data, provided they are in a manner that cannot be reasonably expected to specifically identify Customer. If disclosure of confidential information is sought through a court, or a state or federal regulatory agency or other legal compulsion, the Party receiving such request will notify the other Party immediately to afford it the opportunity to oppose such disclosure via a protective order or other relief as may be available and will provide reasonable support. 17.Applicable LawNenue/Attgrni Fees.This Agreement shall be governed by, and construed In accordance with,the laws of the State of California.Any action or proceeding for dispute resolution arising out of this Agreement shall be brought and tried in the County of Orange, State of California, and the prevailing party shall be entitled to reasonable attorneys' fees, costs and expenses.. To the fullest extent allowed by law,the provisions of this Agreement shall be construed In a manner that avoids any violation of statute,ordinance,regulation, Prepared:EW NonStandard:N30,Legal Revisions CONFIDENTIAL I CNEG19379 Page 4 l Version 3.2.16 O1nlfi CxsWf mEvrgy Rewui LLC.NInghbreserved. or law. If a court of competent jurisdiction holds any provision of the Agreement to be void, the remaining provisions shall continue in full force and effect. 18.Miscellaneous. The Agreement embodies the Parties' entire agreement and understanding and may not be contradicted by any prior or contemporaneous oral or written agreement. Notwithstanding any provision to the contrary in a prior agreement, the Parties agree that this Master Agreement shall supersede and replace all prior written and oral agreements or arrangements between the Parties with respect to the purchase and sale of gas and related services and that all transactions under any such prior agreement(s)are,as of the Effective Date, now governed solely by the terms of this Master Agreement and shall be Transactions hereunder and a part of the single integrated agreement between the Parties.A facsimile or e-mailed copy of either Parry's signature will be considered an original for all purposes under this Agreement, and each Party will provide its original signature upon request. No purchase order, or any amendment or edit to this Agreement,will be valid or given any effect unless signed by both Parties or expressly contained in a TC deemed accepted pursuant to the procedures set forth herein. The applicable provisions of this Agreement will continue in effect after termination or expiration hereof to the extent necessary,including but not limited to providing for final billing,billing adjustments and payments, limitations of liability,the forum and manner of dispute resolution, and with respect to any indemnification obligations under the Agreement.The section headings used in this Master Agreement are for reference purposes only and will in no way affect the meaning of the provisions of the Master Agreement.The Parties acknowledge that any document generated by the Parties with respect to this Agreement, including this Agreement,may be imaged and stored electronically and such imaged documents may be introduced as evidence in any proceeding as if such were original business records and neither Party shall contest their admissibility as evidence in any proceeding. The rights, powers, remedies and privileges provided in this Agreement are cumulative and not exclusive of any rights, powers, remedies and privileges provided by Law. CNEG shall have the right to set-off and net against any amounts owed to it under the Agreement, including without limitation any early termination payment, any amounts owed by CNEG to Customer under the Agreement or any other agreement between the Parties, including without limitation any Adequate Assurance. Except for Section 11 above, no third party will have any rights under this Agreement whatsoever and Customer will be fully responsible for any compensation owing any third party representing Customer in connection with this Agreement and will indemnify, defend and hold harmless CNEG from all related Claims. To the extent Customer is represented by a broker, agent, association or other third party(collectively, "Broker'), Customer acknowledges and understands that: (i)CNEG may be making a payment to Broker in connection with Brokers efforts to facilitate Customer and CNEG entering into a Transaction; (III unless otherwise noted, the Contract Price reflects the fee,if any, paid to Broker,and fill)Broker is acting on Customers behalf as Customers representative and is not a representative or agent of CNEG. Customer further authorizes CNEG to utilize Customer's name for publicity and marketing purposes. 19.Affirmation:Acknowledgements.Customer affirms that it has read this Agreement in its entirety and it agrees to the terms and conditions contained herein. Any ambiguity or question of intent or interpretation under this Agreement will be construed as if drafted jointly by the Parties, and no presumption or burden of proof will arise favoring or disfavoring either Party by virtue of the authorship of any of the provisions of this Agreement. The Parties acknowledge and agree that: (1)CNEG is an independent contractor under this Agreement and except as otherwise explicitly provided in this Agreement, neither Party has the authority to execute documents that purport to bind the other, and nothing in this Agreement will be construed to constitute a joint venture, fiduciary relationship, partnership or other joint undertaking; (ii) TCs and Riders entered into hereunder will constitute 'forward contracts" and/or "swap agreements" under the U.S. Bankruptcy Code, as amended,the rights of the Parties under Section 7 above will constitute contractual rights to liquidate them, and the Parties are entities entitled to the rights and protections afforded to 'Yorward contracts" and "swap agreements" by the U.S. Bankruptcy Code; (III)CNEG is not Customer's consultant or advisor for any purpose including advice regarding the value or advisability of trading in "commodity interests"as defined in the Commodity Exchange Act, 7 U.S.C. §§ 1.25, at seq., as amended (the"CEA"), including futures contracts and commodity options or any other activity which would cause CNEG or any of its affiliates to be considered a commodity trading advisor under the CEA; (iv)each Party is an"eligible contract particil as that term is defined in the CEA;and(v)Customer is making its own decisions based solely upon its own analysis and the advice of its own advisors,if any. 20.Notices. To be effective, all notices must be in writing delivered by hand, by certified mail return receipt requested, by first Gass mail, or express carrier to the addresses provided in this Agreement. CNEG shall send invoices and TCs to the notice address provided herein unless otherwise directed by Customer. Notice by hand delivery shall be effective on the date it is delivered. Notice by certified mail, return receipt requested, by first class mail, or express Carrier shall be effective on the dale that mail is delivered or its delivery is attempted. A Party may change its address by providing notice of change in accordance herewith or by other means agreed by the Parties. IN WITNESS WHEREOF, the Parties have executed this Master Agreement through their duly authorized representatives as of the date set forth above. Constellation NewEnergy—Gas Division,LLC COSD: Orange County Sanitation District By: By Name: Chair,Board of Directors Title: By Notice Information Kelly Lore Louis Corporate Campus Drive,Suite 2000 Clerk of the Board Louisville, 2) 40223 Phone:le:(5 22614-6 By Facsimile:(502)214-6387 Marc Dubois Contacts,Purchasing and Materials Management Division Manager Notice Information fSame As Invoice and Transaction Confirmation) Attention:James C.Mullins Title:Senior Engineer Address: 10844 Ellis Ave,O&M Division 860 Fountain Valley,CA 92708-7018 Phone:(714)593-7325 Facsimile:(714)962-8379 Email:jmullinsfgodaLcom Invoice Copy to' Attention: Accounts Payable OCSD Address: 10844 Ellis Ave,Accounting Division 220 Fountain Valley,CA 92708-7018 Phone:(714)962-2411 Facsimile: (714)962-8379 Prepared:EW Non-Standard:N30,Legal Revisions CONFIDENTIAL I CNEG19379 Page 5 Version 3.2.16 elmfi Coreglle m Ear,,Reeourne,LLC.NI d his reserved. EXHIBIT A—FORM OF TRANSACTION CONFIRMATION` "The actual Transaction Confirmation entered into between Customer and CNEG may differ from this form to reflect state regulatory and other local requirements and terms applicable to the Facility. This Form of Transaction Confirmation is for illustrative purposes only and CNEG reserves the right to alter its foml of Transaction Confirmation at any time. This Transaction Confirmation is delivered pursuant to and in accordance with a Master Retail Natural Gas Supply Agreement effective , 20_ (the 'Master Agreement'), by and between Constellation NewEnergy — Gas Division, LLC ("CNEG") and ('Customer'), and is subject to and made part of the terms and conditions of such Master Agreement. Capitalized terms used herein but not defined will have the meanings ascribed to them in the Master Agreement. Trade Date: Facility Name: Delivery Period: Deal Type: Nature of Parties'Obligation: Contract Quantity/Price: MonthlYr Contract Quantity(in MMBlu) Contract Price US$Rounded to four decimal places Plus applicable taxes Incremental Pricing: Delivery Poinlfs): LI : Default Service:To the extent a Facility continues to receive gas from CNEG beyond the Delivery Period,all such gas will be considered month to month purchases and will be priced at the Market Price. Special Provisions: This Transaction Confirmation documents a Transaction previously reached by authorized representatives of the Parties. It is binding and shall be deemed accepted as the definitive expression of the Transaction unless disputed by Customer in writing within two(2)business days of CNEG's execution dale. CONSTELLATION NEWENERGY—GAS DIVISION,LLC CUSTOMER By: By: SAMPLE Name: Name: NOT FOR EXECUTION Title Title Date: Date: Prepared:EW NonSWndard:N30,Legal Revisbns CONFIDENTIAL I GNEG19379 Page 61 version 3.2.16 a101fi CoretdletianDw,Rewu. LLC.NIngh1e. vW Constellation DEAL NO. NGIDX21789524 Account Manager: Jennifer Wishy (270) 316-2691 Jennifer.Wishy@Constellation.com Transaction Confirmation This Transaction Confirmation is delivered pursuant to and in accordance with a Master Natural Gas Agreement ("Gas Supply Agreement"), effective July 12, 2016, by and between Constellation NewEnergy — Gas Division, LLC ("Constellation") and Orange County Sanitation District ("Customer"), and is subject to and made part of the terms and conditions of such Gas Supply Agreement. Special Condition: This Transaction Confirmation is not effective and binding upon the parties hereto unless signed concurrently with the Master Natural Gas Agreement) dated effective July 12, 2016. Notwithstanding the foregoing, this Transaction Confirmation shall be deemed to be non-binding and of no effect on the parties hereto if not executed by both parties. Trade Date: July 14, 2016 Buyer: Orange County Sanitation District Seller: CONSTELLATION NEWENERGY-GAS DIVISION, LLC Facility Name: Orange County Sanitation District SOCAL PHYSICAL POOL ACCOUNT Delivery Period: August 01, 2016-July 31, 2017(inclusive) Nature of Obligation: Firm-"Firm" means deliveries and receipts may not be interrupted without liability except for reasons of Force Majeure regardless of the capacity type Constellation uses to receive such gas. Deal Type: Physical INDEX Contract Quantity (MMBtu): As nominated by Customer 5 business days prior to NYMEX Last Day Settle or, in the event Customer does not provide nomination, as determined by Constellation for each month of flow. Index Price: To be based on NGI's Bidweek Survey under the heading "California"for the "SoCal Citygete-Bidweek Avg" as published in the first issue of each calculation period. Index Adder : Index Price Plus 0.03901MMBtu US$ Rounded to four decimal places Plus applicable taxes Incremental Pricing: For all additional gas quantities required by Customer, in excess of the nominated volumes each month, or for gas quantities bought back from Customer by Constellation due to Customer's requirements being less than the total nominated volumes each month, the price for such additional purchases or buybacks shall be based on the then-current spot market price, as determined by Constellation in its reasonable discretion. Alternative Pricing Mechanism: The above described index pricing may be amended by a mutually agreed to fixed, NYMEX based, price arrangement at any time during the Delivery Period herein. Upon expiration of such a fixed price arrangement before the end of the Delivery Period,the pricing mechanism shall return to the index pricing of the Delivery Period herein. Page 1 Constellation- An I (I n( ,,ry NYMEX Trigger Rights: Customer has the right to trigger the NYMEX price for any month(s) at any time during the Delivery Period, prior to 12:00 p.m. EST/EDT on the final day of NYMEX settlement for each applicable month. Pipeline: SOCAL Delivery Point(s): CG DELIVERED Utility: SOCAL LDC Account Nola): 18-3701-140-054-1, 18-3702-917-714-1 Allocation: Constellation will allocate the Contract Quantity listed herein among the Customers separate facilities or meters at a later date. Seller's planned billing method for this facility is to bill Buyer based on: Actual Consumption Default Service: Should Constellation continue to deliver to Customer beyond the term of this Transaction Confirmation, said deliveries will be made for successive 1 month terms (each an "Extension Term"), until terminated by either party by giving written notice of termination not less than 30 Days prior to the expiration of the then-current Extension Term. Each month, the default price (the "Evergreen Price") will equal the applicable published index, plus transportation, fuel and any other charges associated with the delivery of gas to the Delivery Point. Unless otherwise provided by Customer, Constellation will determine Customer's monthly nomination in a commercially reasonable manner based upon Customer's historical usage data. This Transaction Confirmation documents an agreement previously reached by authorized representatives of the parties. Unless disputed by Customer in writing within two(2) business days of Constellation's execution date,or such other time frame as specified in the Gas Supply Agreement, it is binding and shall be deemed accepted. Please return via fax to(502)213-9103 or email to CNEGasConfirmationsKY@Constellation.com. Constellation NewEnergy-Gas Division, LLC Orange County Sanitation District By: By Chair, Board of Directors Name: Title: By Kelly Lore Date: Clerk of the Board By Marc Dubois Contracts, Purchasing and Materials Management Division Manager PA-114824 CNEG11639 NGIDX21789524 Manual—MTB 7/14/2016 Page 2 OPERATIONS COMMITTEE Meng Dat0 Tg BE. Dir. 07/lti06/16 07/27/1Or6 AGENDA REPORT Item Item Number 7 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: AGREEMENT FOR PURCHASE OF ANIONIC POLYMER, SPECIFICATION NO. C-2016-751BD GENERAL MANAGER'S RECOMMENDATION A. Approve an agreement to Polydyne, Inc. for the Purchase of Anionic Polymer, Specification No. C-2016-75113D, for the period September 1, 2016 through August 31, 2017, for a unit price of $2.605 per active pound delivered, plus applicable sales tax for a total estimated annual amount of $370,000, with four one-year renewal options; and B. Approve a unit price contingency of 10%. BACKGROUND Orange County Sanitation District (Sanitation District) has used anionic polymer for over 30 years to improve solids and organics removal efficiencies in the primary clarifiers. Anionic polymer and ferric chloride are added to the primary influent at both plants to enhance the removal of organics and improve the settling of suspended solids during primary treatment. This is referred to as the chemically enhanced primary treatment (CEPT) process. It is estimated that 121,000 active pounds of anionic polymer will be required during this contract period. RELEVANT STANDARDS • Comply with the Clean Water Act • Highly reliable water delivery to GWRS • Meet discharge permit 24/7/365 PROBLEM Solids and organics not captured and removed in the primary treatment process are converted into biological solids in the secondary treatment process which are more difficult and costly to de-water and dispose of. PROPOSED SOLUTION Continue with the addition of Anionic Polymerwhich has been effective in improving solids removal efficiencies in the primary clarifiers resulting in reduced operating costs. Page 1 of 2 TIMING CONCERNS Our current contract expires August 31, 2016 with zero (0) remaining renewals. RAMIFICATIONS OF NOT TAKING ACTION If anionic polymer is not used in the primaries, it will result in increased solids and organics loadings to the secondary plants resulting in increased operating costs. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION In accordance with Purchasing Ordinance No. OCSD47, the Sanitation District selected a 2-step bidding process which included a Request for Qualifications (RFQ) and a Notice Inviting Bids (NIB). Of the two companies that submitted their samples for testing only one, Polydyne, met the requirements. The other prospective bidder, Solenis, provided a sample that did not comply with our specifications listed in the RFQ and was therefore disqualified. Polydyne subsequently placed a bid for two polymer types that had successfully passed the testing process. Staff recommends awarding to the responsive and responsible bidder, Polydyne Inc. for the purchase of Anionic Polymer, type MC-136. Summary information on the Anionic Polymer bid is as follows: Bidder Polymer Type Amount of Bid Polydyne, Inc WE-1542 $2.615 Polydyne, Inc MC-136 $2.605 CEQA N/A BUDGET/PURCHASING ORDINANCE COMPLIANCE This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted in the Operating Budget, Division 830, Supplies (Section 6, p.84) and Division 840, Supplies (section 6, page 88). Date of Approval Unit Price Contincencv 07/27/16 $2.605 10% Page 2 of 2 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Purchase Agreement Page 3 0(2 AGREEMENT FOR PURCHASE OF LIQUID ANIONIC POLYMER SPECIFICATION NO. C-2016-751BD THIS AGREEMENTis made and entered into as of the date fully executed below, by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and Polydyne, Inc. with a principal place of business at One Chemical Plant Road, Riceboro, GA 31323 (hereinafter referred to as "Supplier")collectively referred to as the "Parties". WITNESSETH WHEREAS, OCSD requires Liquid Anionic Polymer in its sewage treatment process and has prepared Specifications (attached hereto and incorporated herein by reference as Exhibit"A")for the purchase of said Liquid Anionic Polymer; WHEREAS, sealed bids for the Purchase of Liquid Anionic Polymer, Specification No. C-2016- 751 BD were solicited, received and opened on May 19, 2016; and WHEREAS, on July 27, 2016, the Board of Directors of OCSD, by minute order, authorized execution of this Agreement between OCSD and Supplier; and WHEREAS, OCSD has chosen Supplier to provide Liquid Anionic Polymer in accordance with Ordinance No. OCSD-47; and NOW, THEREFORE, in consideration of the promises and mutual benefits exchanged between the Parties, it is mutually agreed as follows: 1. Introduction 1.1 This Agreement and all exhibits hereto (called the "Agreement') is made by OCSD and Supplier. The terms and conditions herein exclusively govern the purchase of Liquid Anionic Polymer as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit"A". 1.2 Exhibits to this Agreement are incorporated by reference and made a part of this Agreement as though fully set forth at length herein Exhibits to this Agreement are as follows in order of precedence: Exhibit"A" Scope of Work Exhibit'B" Bid Price Form Exhibit"C' Acknowledgement of Insurance Requirements Exhibit"D" OCSD Safety Standards 1.3 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the exhibits hereto, the provisions of this Agreement shall in all respects govern and control. 2. Delivery 2.1 LOCATIONS: Deliveries shall be made to Plant 1 located at 10844 Ellis Avenue, Fountain Valley, CA 92708 and Plant 2 located at 22212 Brookhurst Street, Huntington Beach, CA 92646. Deliveries shall be made in accordance with Exhibit"A". Orange County Sanitation District 1 of 8 Specification No. C-2016-751BD 041415 2.2 OCSD will pay only for the actual gallons of Liquid Anionic Polymer delivered, based upon certified tare weight and net weight. Gallons invoiced by Supplier and payable by OCSD will be for the total net gallons of Liquid Anionic Polymer delivered (loaded gross weight minus the tare weight). Tare weight shall be determined immediately after each delivery and prior to cleaning, emptying or clearing the delivery tank. 2.3 A delivery statement shall accompany all shipments and state the weight,gallons, specific gravity of the product and percent delivered. 3. Possession Ownership and control of all Liquid Anionic Polymer delivered pursuant to this Agreement shall remain solely and exclusively with Supplier, until complete transfer of possession by delivery to OCSD at the designated locations is made from Supplier. 4. Quand 4.1 OCSD makes no guarantee to actual use or quantity of Liquid Anionic Polymer purchased. Use may be sporadic based on the wastewater treatment requirements unique to each treatment plant. 4.2 OCSD will, through the term of this Agreement, purchase Liquid Anionic Polymer from Supplier exclusively, except when OCSD determines Supplier cannot make delivery within the time specified, with the quality and quantity specified, at the Agreement price, the level of service is inadequate, OCSD unapproved increase in active dry pound rate or for any other default or breach of this Agreement. In such event, OCSD may purchase Liquid Anionic Polymer elsewhere and charge Supplier any difference in the delivered price to OCSD from that provided in this Agreement, or alternatively, OCSD may terminate the Agreement based on said breach or failure to deliver the specified product. Quality control tests will be performed by OCSD on the delivered Liquid Anionic Polymer to ensure that Specifications are attained. 5. Pricing and Invoicina 5.1 Supplier will invoice monthly for delivered Liquid Anionic Polymer per Exhibit "A", and at the price(s) listed in the Bid Price Form (attached hereto and incorporated herein by reference as Exhibit "B"). Prices shall include all cartage and taxes per gallon except California State Sales Tax. The sales tax will be paid by OCSD. 5.2 OCSD shall pay, Net 30 days, upon receipt and approval by the OCSD Project Manager, or designee of itemized invoices, submitted in duplicate, in a form acceptable to OCSD to enable audit of the charges thereon. All invoices must reference the Purchase Order Number. Supplier will mail the invoices to Orange County Sanitation District, 10844 Ellis Avenue, Fountain Valley, CA 92708, attention Accounts Payable. All invoices shall include a description of the delivery location,the delivery date and the unit price.All cash discounts shall be taken and computed from the date of completion of tasks or acceptance of equipment, material, installation and training, or from the date of receipt of invoice, whichever occurs last. 6. Modifications 6.1 This Agreement may be modified or changed only by written instrument in the form of an amendment to this Agreement signed by both Parties. Orange County Sanitation District 2 of 8 Specification No. C-2016-751BD 041415 6.2 Pricing modifications: The prices established in this Agreement shall remain firm for the one-year Agreement term.Quarterly pricing will not be accepted.Any adjustments made will allow for increases or decreases in the manufactured cost of the Liquid Anionic Polymer and will be based upon OCSD validated information furnished by Supplier and OCSD sources. Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed price increase or decrease. 6.3 Price changes may be made through the OCSD Purchase Order Process. 7. Agreement Term The purchase of Liquid Anionic Polymer under this Agreement shall be for the period of one (1)year commencing on September 1, 2016 and continuing through August 31, 2017. 8. Renewals 8.1 OCSD may exercise the option to renew the Agreement for up to four(4)one-year periods based upon the criteria set forth in Exhibit "A", if mutually acceptable terms can be negotiated. OCSD shall make no obligation to renew nor give reason if it elects not to renew. The prices established in the original Agreement may be adjusted.The adjustment will allow for any increase or decrease in the manufactured cost of the Liquid Anionic Polymer and will be based upon OCSD validated information furnished by Supplier and OCSD sources.Adjustments will only be reviewed on an annual basis. OCSD reserves the right to agree with or reject the proposed price increase or decrease. 8.2 Renewals may be made through the OCSD Purchase Order Process. 9. Termination 9.1 OCSD reserves the right to terminate this Agreement for its convenience, with or without cause, in whole or in part, at any time, by written notice to Supplier from OCSD. Upon receipt of a termination notice,Supplier shall immediately discontinue all work under this Agreement(unless the notice directs otherwise). OCSD shall thereafter, within thirty (30)days, pay Supplier for work performed(cost and fee)to the date of termination.Supplier expressly waives any claim to receive anticipated profits to be earned during the uncompleted portion of the Agreement. Such notice of termination shall terminate this Agreement and release OCSD from any further fee, cost or claim hereunder by Supplier other than for work performed to the date of termination. 9.2 OCSD reserves the right to terminate this Agreement immediately upon OCSD's determination that Supplier is not meeting specification requirements for delivery of quantities needed, the level of service is inadequate, for poor quality of product, for OCSD unapproved increase in rate, or any other default or breach of this Agreement. 9.3 OCSD may also terminate the Agreement for default in whole or in part by written notice to Supplier from OCSD: 9.3.1 if Supplier becomes insolvent or files a petition under the Bankruptcy Act; or 9.3.2 if Supplier sells its business; or 9.3.3 if Supplier breaches any of the terms of this Agreement. 9.4 All OCSD property in the possession or control of Supplier shall be returned by Supplier to OCSD upon demand, or at the termination of this Agreement, whichever occurs first. Orange County Sanitation District 3 of 8 Specification No. C-2016-751BD 041415 10. Indemnification and Hold Harmless Supplier shall assume all responsibility for damages to property and/or injuries to persons, including accidental death,which may arise out of or be caused by Supplier's services under this Agreement, or by its subcontractor or by anyone directly or indirectly employed by Supplier, and whether such damage or injury shall accrue or be discovered before or after the termination of the Agreement. Except as to the sole active negligence of orwillful misconduct of OCSD, Supplier shall indemnify, protect, defend and hold harmless OCSD, its elected and appointed officials, officers, agents and employees, from and against any and all claims, liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or death of any person or damage to property or interference with the use of property, arising out of or in connection with Supplier's performance under this Agreement, and/or (b) on account of any goods and services provided under this Agreement. This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or passive, on the part of Supplier of or anyone employed by or working under Supplier. To the maximum extent permitted by law, Supplier's duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings have merit or are meritless, or which involve claims or allegations that any of the parties to be defended were actively, passively, or concurrently negligent, or which otherwise assert that the parties to be defended are responsible, in whole or in part, for any loss, damage, or injury. Supplier agrees to provide this defense immediately upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD. 11. Insurance Supplier shall purchase and maintain, throughout the life of this Agreement and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein by reference as Exhibit "C"). Supplier shall not commence work under this Agreement until all required insurance is obtained in a form acceptable to OCSD, nor shall Supplier allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Agreement. 12. Eauipment Loss OCSD will be responsible for any loss or damage to Supplier-owned equipment, when OCSD determines OCSD is at fault, and will reimburse Supplier for such loss or damage upon receipt of invoices, less a deduction for any amount determined to be the fault of Supplier. 13. Conflict of Interest and Reporting Supplier shall at all times avoid conflict of interest or appearance of conflict of interest in performance of this Agreement. 14. Supplier's Relationship to OCSD Supplier's relationship to OCSD in the performance of this Agreement is that of an independent contractor. The personnel performing services under this Agreement shall, at all times, be under Supplier's exclusive direction and control, and shall be employees of Supplier and not employees of OCSD. Supplier shall pay all wages, salaries and other amounts due its employees in connection with this Agreement, and shall be responsible for all legal reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, worker's compensation and similar matters. Orange County Sanitation District 4 of 8 Specification No. C-2016-751BD 041415 15. Safety and Accident Prevention 15.1 General: In addition to the requirements set forth in Exhibit "A", Supplier shall meet with personnel from OCSD'S Risk Management Division to review safety and accident prevention policies and procedures prior to its initial delivery. All subcontractors should be present at this meeting. Supplier is responsible to inform all subcontractors of the items discussed at this meeting. This meeting shall occur within five (5) working days of the effective date of the Notice to Proceed. 16. Drug-Free Workplace All employees of Supplier who will perform work under this Agreement must adhere to the California Drug-Free Workplace Act, Government Code Sections 8350 through 8357. 17. Assianments Neither this Agreement nor any interest herein or any claim hereunder may be assigned by Supplier either voluntarily or by operation of law, nor may all or substantially all of this Agreement be further subcontracted by Supplier without the prior written consent of OCSD. 16. Attornev's Fees If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing Party shall be entitled to reasonable attorney's fees, costs and necessary disbursements, in addition to any other relief to which it may be entitled. 19. Permits. Ordinances and Regulations Any and all fees required by Federal, State, County, City and/or local laws, codes and/or tariffs that pertain to work performed under the terms of this Agreement shall be paid by Supplier. Fees demanded for obtaining certificates, including associated inspection fees and expenses of regulatory body inspectors shall be paid by Supplier. 20. Training Certification When required by regulation, certificates of training shall be maintained on-site for the duration of the activity that requires an employee of Supplier to be certified. Certificates shall be current. Lack of certificates when required will be cause for removal of offending personnel from the site, termination of the Agreement, or both. 21. Compliance With Law Supplier warrants that under the performance of this Agreement, it shall comply with all applicable Federal, State and local laws, and all lawful orders rules and regulations thereunder. In connection with the execution of this Agreement, Supplier shall not discriminate against employees or an applicant for employment because of race, religion, color, sex or national origin. Supplier shall take affirmative action to ensure that applicants are employed and employees are treated during their employment without regard to their race, religion, color, sex or national origin. Such action shall include, but not be limited to, the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; lay-off or termination; rate of pay,or other forms of compensation; and selection for training, including apprenticeship. 22. Disputes 22.1 This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Agreement or the performance thereof. Pending final resolution of a dispute hereunder, Supplier shall proceed diligently with the performance of this Agreement and in accordance with OCSD'S decision. Orange County Sanitation District 5 of 8 Specification No. C-2016-751BD 041415 22.2 In the event of a dispute as to the construction or interpretation of this Agreement, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation.The Parties shall mutually select a mediatorto facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Agreement, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 22.3 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of Agreement, each Party shall select an arbitrator, and those two (2) arbitrators shall select a third. Discovery may be conducted in connection with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orange, with a right of appeal from any judgment issued therein. 23. Right to Review Services. Facilities. and Records 23.1 OCSD reserves the right to review any portion of the services performed by Supplier under this Agreement, and Supplier agrees to cooperate to the fullest extent possible. Supplier shall furnish to OCSD such reports, statistical data, and other information pertaining to Supplier's services as shall be reasonably required by OCSD to carry out its rights and responsibilities under its agreements with its bondholders or noteholders and any other agreement relating to the development of the project(s) and in connection with the issuance of its official statements and other prospectuses with respect to the offering, sale, and issuance of its bond and other obligations. 23.2 The right of OCSD to review or approve drawings, specifications, procedures, instructions, reports, test results, calculations, schedules, or other data that are developed by Supplier shall not relieve Supplier of any obligation set forth herein. 24. Incorporated Documents 24.1 In the event of any conflict or inconsistency between the provisions of this Agreement and any of the provisions of the other incorporated documents, the provisions of this Agreement shall in all respects govern and control. 25. Severability Any provision of this Agreement which is found to be invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability, and the invalidity or unenforceability of such provision shall not affect the validity or enforceability of the remaining provisions hereof. 26. Waiver The waiver of either Party of any breach or violation of, or default under, any provision of this Agreement, shall not be deemed a continuing waiver by such Party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Orange County Sanitation District 6 of 8 Specification No. C-2016-751BD 041415 27. Breach Any breach by Supplier to which OCSD does not object shall not operate as a waiver of OCSD to seek remedies available to it for any subsequent breach. 26. Public Contracts Law OCSD is subject to the provisions listed in the prevailing wage determination made by the Director of Industrial Relations pursuant to California Labor Code part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1. It is agreed that all provisions of law applicable to public contracts are part of this Agreement to the same extent as though set forth herein and will be complied with by Supplier. Supplier shall not pay less than the prevailing wage. 29. South Coast Air Quality Management District's (SCAQMD) Requirements It is Supplier's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All Agreement work practices, which may have associated emissions shall comply with the appropriate rules and regulations of the SCAQMD. 30. Performance Time is of the essence in the performance of the provisions hereof. 31. Familiarity with Work By executing this Agreement, Supplier warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3)it understands the facilities, difficulties and restrictions of the work under this Agreement. Should Supplier discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform OCSD of this and shall not proceed, except at Supplier's risk, until written instructions are received from OCSD. 32. Damage to OCSD'S Pronerty Any OCSD property damaged by Supplier,any subcontractor,or by the personnel of either will be subject to repair or replacement by Supplier at no cost to OCSD. 33. Third Party Rights Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than OCSD and Supplier. 34. Authority to Execute The persons executing this Agreement on behalf of the Parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the Parties are formally bound. 35. Read and Understood By signing this Agreement, Supplier represents that it has read and understood the terms and conditions of the Agreement. 36. Entire Agreement This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements, understandings, and negotiations between the Parties with respect to the subject matter hereof. Orange County Sanitation District 7 of 8 Specification No. C-2016-751BD 041415 37. Notices All notices under this Agreement must be in writing. Written notice shall be sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Any facsimile notice must be followed within three (3) days by written notice. All notices shall be effective when first received at the following addresses: OCSD: Larry Roberson Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708 Supplier: Boyd Stanley Business Director Polydyne, Inc. One Chemical Plant Road Riceboro, GA 31323 IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Agreement to be signed by the duly authorized representatives. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair, Board of Directors Dated: By: Clerk of the Board Dated: By: Contracts/Purchasing Manager POLYDYNE, INC. Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District 8 of 8 Specification No. C-2016-751BD 041415 OPERATIONS COMMITTEE Meeting Dare TOBd.ofDir. 07/O6/16 07/27/16 AGENDA REPORT Item Number Item Number 8 13 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: 2017 FACILITIES MASTER PLAN — PROJECT PS15-10 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Services Agreement with Carollo Engineers, Inc. to provide professional services for 2017 Facilities Master Plan, Project PS15-10,for an amount not to exceed $3,132,052; and B. Approve a contingency of$313,205 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) has managed its facilities through the preparation and implementation of master plans. Previous master planning efforts included the 1999 Strategic Plan; a 2002 Strategic Plan Update; a 2006 Collection System Model and Strategic Plan Update; and a 2009 Facilities Master Plan, which included an Energy Master Plan. Since the last master planning effort, the Sanitation District has been working towards creating a more comprehensive Capital Improvement Program (CIP) plan. The Engineering Planning Division has been developing a 20-year planning window forfacility rehabilitation, refurbishment, and replacement. Planning Division staff have been collaborating with Operations and Maintenance staff to evaluate the condition, capacity, level of service requirements, and technology opportunities in each treatment plant process area and in the collections systems. To address these needs and issues, a list of potential rehabilitation, refurbishment or replacement projects with scope elements has been developed for the next 20 years. The 2017 Facilities Master Plan will validate the scope elements for these projects, prioritize the projects, and develop a CIP plan for the next 20 years. The 2017 Facilities Master Plan will serve as the Sanitation District's roadmap to our 20-year CIP plan and future rate structure decisions, and will be the basis of a Programmatic Environmental Impact Report. RELEVANT STANDARDS • 20-year planning horizons • Anticipate and plan for future regulations and legal requirements • Long-term view that appropriately funds capital improvement programs • Maintain a proactive asset management program Page 1 of 4 PROBLEM The current five-year rate structure ends in 2018. The Sanitation District is planning to conduct a sewer rate study in 2017 to determine the rate structure for the next five years. A validated and defensible CIP plan is needed in order to conduct the rate study. PROPOSED SOLUTION Prepare a Facilities Master Plan by 2017. TIMING CONCERNS The Facilities Master Plan document must be completed by June 2017 to allow the timely preparation of the 2017 sewer rate study. RAMIFICATIONS OF NOT TAKING ACTION The Sanitation District will have insufficient information to prepare the sewer rate study. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection: The Sanitation District requested and advertised for proposals for 2017 Facilities Master Plan, Project PS15-10 on April 6, 2016. The following evaluation criteria were described in the Request for Proposals (RFP)and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 40% Related Project Experience 20% Project Team and Staff Qualifications 40% Two proposals were received on May 6, 2016, and evaluated in accordance with the evaluation process set forth in Ordinance OCSD-47, by a pre-selected Evaluation Team consisting of the following SANITATION DISTRICT's staff. Kathy Millea Engineering Manager Jeffrey Mohr Engineering Manager Eros Yong Engineering Supervisor One representative from the Contracts Administration Division, and another representative from the Engineering Department, participated in the evaluation process as non-voting members. Page 2 of 4 Following scoring by the Evaluation Team, both Consultants were invited to interviews on June 1, 2016. Following the interview, each member of the Evaluation Team ranked the Consultants based on both the proposals and interviews using the evaluation criteria and weighting described above. Based on the ranking shown below, Carollo Engineers was selected as the most qualified Consultant. Carollo CDM Smith, Inc. En ineers Evaluator 1 1°' 2nd Evaluator 2 1" 2nd Evaluator 1°' 2nd Combined Ranking V V Carollo Engineers proposed a highly-qualified team that has significant related experience and a detailed work plan based on extensive knowledge of Sanitation District's facilities, which is essential in meeting the tight schedule for this project. Their proposal demonstrated their understanding of the challenges of preparing a 20-year CIP that addresses the Sanitation District's future needs, and is justifiable and comprehensive, yet minimizes impact to the rate structure. Their project prioritization approach will allow the Sanitation District to deliver the right projects at the right time. Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with OCSD Ordinance No. OCSD-47, the fee proposal of only the highest-ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with Carollo Engineers, Inc. to clarify the requirements of the Scope of Work, the assumptions used for the estimated level of effort, and the proposed approach to meet the goals and objectives for the project. In evaluating whether the fee proposal was fair and reasonable, the following factors were considered: • The estimated level of effort was evaluated in detail for task and subtask, and was found to be justified by the needs of the project, the agreed upon assumptions, and the Sanitation District's expectation for the quality of services. • The Consultant's fringe and overhead costs, which factor into the billing rate, is reasonable and lower than other similar agreements. The contract profit is 6.75%, which is based on the Sanitation District's standard design agreements. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Services Agreement to Carollo Engineers, Inc. Proposal Fee $3,236,392 Negotiated Fee Proposal $3,132,052 Page 3 of 4 CEQA The proposed Facilities Master Plan is a fiscal planning tool for possible future actions which does not commit the Sanitation District to implement any specific project. The proposed Facilities Master Plan will analyze and make recommendations regarding potential infrastructure improvements that may be needed to ensure that the Sanitation District continues to meet its critical health and safety mandate. The Facilities Master Plan will therefore take environmental factors into account. The Sanitation District, as lead agency, has therefore determined that the preparation of the proposed Facilities Master Plan is exempt from CEQA pursuant to CEQA Guidelines Section 15262 [Feasibility and Planning Studies]. The Sanitation District will file a Notice of Exemption accordingly. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance No. OCSD47. Budget for the project, PS15-10, 2017 Facilities Master Plan, is included in the Master Planning Studies budget for Fiscal Years 2016-17 and 2017-18. (Line item: Section 8, Page 78). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: • Professional Services Agreement • PowerPoint Presentation, Operations Committee of July 6, 2016 EY:sa:gc Page 4 of 4 PROFESSIONAL SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 2n day of July, 2016, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and CAROLLO ENGINEERS, INC., for purposes of this AGREEMENT hereinafter referred to as"CONSULTANT'. The SANITATION DISTRICT and CONSULTANT are referred to herein collectively as the "Parties"or individually as a "Party." WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a consultant for 2017 Facilities Master Plan, Project No. PS75.10, to provide professional services for facilities master planning for the water and wastewater industry and update the 2009 Facilities Master Plan; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on July 27, 2016 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this AGREEMENT between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this AGREEMENT, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional 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, and completeness and coordination of the work and services furnished by the CONSULTANT under this AGREEMENT, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all applicable laws, regulations, 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 perform all work to the industry standards for clarity, uniformity, and completeness. CONSULTANT shall timely respond to all comments, suggestions, and recommendations from the SANITATION DISTRICT. All comments from the SANITATION DISTRICT, or its agent, shall PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 1 of 19 be incorporated into the work prior to the next review deadline or addressed, in writing, as to why the comment(s) has/have not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that CONSULTANTS services and/or work product(s) is not to the satisfaction of the SANITATION DISTRICT and/or does not conform to the requirements of this AGREEMENT or the applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its work product(s)within the timeframe specified by the Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. Any CADD drawings, figures, and other work produced by CONSULTANT and Subconsultants using the SANITATION DISTRICT CAD Manual. 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 conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and require advance written approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30)calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANTITATION DISTRICT. E. All professional services performed by the CONSULTANT, including, but not limited to, all drafts, data, correspondence, proposals, and reports 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, or(b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. 2. COST ESTIMATES The CONSULTANT has no control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractor's methods of determining prices, or other competitive bidding or market conditions, practices or bidding strategies. CONSULTANT shall use best engineering practices along with experience and judgment, utilizing current local costs of labor, materials, equipment or services to prepare cost estimates. CONSULTANT cannot and does not guarantee that proposals, bids, actual Project construction, operation and/or lifecycle costs will not vary from cost estimates prepared by CONSULTANT. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 2 of 19 3. COMPENSATION Total compensation shall be paid to CONSULTANT for services in accordance with the following provisions: A. Total Compensation Total compensation shall be in an amount not to exceed Three Million One Hundred Thirty-Two Thousand and Fifty-Two Dollars ($3,132,052). Total compensation to CONSULTANT including burdened labor(salaries plus benefits), overhead, profit, direct costs, and Suboonsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with Certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 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 Suboonsultants, 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 PSA PROJECT NO.P515-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 3 of 19 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 Attachment"K"— Hourly Rate Schedule for Minor Subconsultants and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 3 -COMPENSATION above. G. 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 http://www.asa.aov/portal/catecorv/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. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 4 of 19 Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging— Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by 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. H. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-fiver percent(75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to 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. 4. 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. 5. 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, in a format acceptable to the SANITATION DISTRICT. CONSULTANT shall warrant and certify the accuracy of these costs and provide all support documentation required by the SANITATION DISTRICT. CONSULTANT understands that submitted costs are subject to Section 13 Audit Provisions. PSA PROJECT NO.P515-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 5 of 19 B. CONSULTANT will submit monthly statements covering services and/or work performed for payment for those items included in Section 3 hereof no later than the second Wednesday of the following month and in the format required by the SANITATION DISTRICT. The format must include, as a minimum: 1) current billing period invoicing, 2) current billing period "total percent invoiced to date", 3)future activities, 4) previous billing period "total invoiced to date", 5) potential items that are not included in the Scope of Work, 6) concerns and possible delays, 7) percentage of completion to date, and 8) budget status and amount remaining. Such requests shall be accompanied by such supporting data 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. 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, The SANITATION DISTRICT may, at the discretion of the Director of Engineering, 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 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 3 -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 based on the monthly statements, 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 PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 6 of 19 exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this AGREEMENT may be held liable for treble damages and up to a $10,000 civil penalty for each false claim submitted. This section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: (a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; (b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; (c)conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; (d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or(a) 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. 6. PREVAILING WAGES To the extent CONSULTANT intends to utilize employees who will perform work during the contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. 7. 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. 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. B. 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 PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 7 of 19 SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. C. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). 8. DOCUMENT OWNERSHIP—CONSULTANT PERFORMANCE A. Ownership of Documents for the Professional Services performed. All documents in all forms (electronic, paper, etc.), including, but not limited to, studies, sketches, drawings, computer printouts, disk files, and electronic copies prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the AGREEMENT, or b) in accordance with other provisions of this AGREEMENT. Notwithstanding any other provision of this paragraph or AGREEMENT, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the study or deliverable 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. The SANITATION DISTRICT shall furnish the CONSULTANT available studies, reports and other data pertinent to the CONSULTANT's services; obtain or authorize the CONSULTANT to obtain or provide additional reports and data as required; furnish to the CONSULTANT services of others required for the performance of the CONSULTANT's services hereunder, and the CONSULTANT shall be entitled to use and rely upon all such information and services provided by the SANITATION DISTRICT or others in performing the CONSULTANT's services under this AGREEMENT. 9. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 8 of 19 accept State Compensation Insurance Fund, for the required policy of Workers Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty (20)days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: One Million Dollars ($1,000,000) per occurrence with One Million Dollars ($1,000,000)aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground)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. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 9 of 19 E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 10 of 19 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 65 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010)shall state the required thirty(30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent 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, Div. 260, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. PSA PROJECT NO.P515-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 11 of 19 J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 10. SCOPE CHANGES In the event of a change in the Scope of Work or a change in the proposed Project, as requested by the 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. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 12 of 19 11. 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 under this AGREEMENT by CONSULTANT. CONSULTANT shall include a description of the work and services to be done by each Subconsultant and each of CONSULTANT's Project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant, broken down as indicated in Section 3 - COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 12. ENGINEERING REGISTRATION The CONSULTANTS personnel and Suboonsultants 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, the services of a registered engineer is required, such services hereunder will be performed under the direct supervision of registered engineers who are registered in California. 13. 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 PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 13 of 19 be available to assist SANITATION DISTRICT's auditor in obtaining all Project related accounting records and documents, and any other financial data. 14. THIRD PARTIES This AGREEMENT is entered into by and for the SANITATION DISTRICT and the CONSULTANT, and nothing herein is intended to establish rights or interests in individuals or entities not a party hereto. 15. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to transform CONSULTANT, its staff, independent contractors, or Subconsultants into employees of the SANITATION DISTRICT. CONSULTANT'S staff performing services under the AGREEMENT shall at all times be employees and/or independent contractors of CONSULTANT. CONSULTANT shall monitor and control its staff and pay wages, salaries, and other amounts due directly to its staff in connection with the AGREEMENT. CONSULTANT shall be responsible for hiring, review, and termination of its staff and shall be accountable for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation and similar matters. 16. 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. Notice shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Michelle Hadaway, Senior Contracts Administrator Copy: Eros Yong, Project Manager Notice shall be mailed to CONSULTANT at: CARDLLO ENGINEERS, INC. 3150 Bristol Street, Suite 500 Costa Mesa, CA 92626 Attention: Stephen G. Hough, P.E., Project Manager Copy: Douglas J. Lanning, P.E., Project Director All communication regarding the Scope of Work, will be addressed to the Project Manager. Direction from other SANITATION DISTRICT staff must be approved in writing by the SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT. PSA PROJECT NO.P515-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 14 of 19 17. 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 at the address listed in Section 16 - NOTICES. 18. 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, electronic materials, computation and study materials in its files pertaining to the work described in this AGREEMENT, which is requested in writing by the SANITATION DISTRICT. 19. COMPLIANCE CONSULTANT certifies by the execution of this AGREEMENT that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 20. 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 this AGREEMENT for that Party. 21. 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. 22. 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 he may be entitled. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 15 of 19 23. 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). 24. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third 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 PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 16 of 19 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. 25. 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. 26. COMPLIANCE WITH SANITATION DISTRICT POLICIES AND PROCEDURES CONSULTANT shall be required to 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. 27. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the AGREEMENT is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the AGREEMENT is otherwise terminated or expires in accordance with the terms of the AGREEMENT, the SANITATION DISTRICT shall give the Consultant written notice that the AGREEMENT will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the AGREEMENT within thirty(30) days of receipt of notice of AGREEMENT closeout. Upon receipt of CONSULTANT'S submittals, the SANITATION DISTRICT shall commence a closeout audit of the AGREEMENT and will either: I. Give the CONSULTANT a final AGREEMENT Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT'S cost. PSA PROJECT NO.P515-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 17 of 19 CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in the 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. 28. 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. PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN 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. CONSULTANT: CARDLLO ENGINEERS, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Kelly A. Lore Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A" Scope of Work Attachment'B" Labor Hour Matrix Attachment"C' Not Attached Attachment"D" Allowable Direct Costs Attachment"E" Fee Proposal Attachment"F" Not Attached Attachment"G" Not Attached Attachment"H" Not Used Attachment"I" Cost Matrix and Summary Attachment"J" Not Attached Attachment"K" Hourly Rate Schedule for Minor Subconsultants Attachment"L" OCSD Safety Standards MH:yp PSA PROJECT NO.PS15-10 Revised 122215 2017 FACILITIES MASTER PLAN Page 19 of 19 e 2017 Facilities Master Plan Kathy Millea Planning Engineering Manager Operations Committee July 6, 2016 Facilities Master Plan Helps Fit All the Pieces Together Strategic _ s Goals Regulatory irements VV Conse i� inal _ �1 Biosolids Odor Control Expansion Collections Master Plan Master Plan Capacity Sttly . " Regular Master Planning Validates OCSD's CIP _ • 1989 Master Plan t • 1999 Strategic Plan } • 2002 Strategic Plan Update •• 7 • 2006 Collection System t Strategic Plan Update • 2009 Facilities Master Plan ' ' • 2017 Facilities Master Plan The Scope Will Achieve a Realistic Picture of Our Assets low 7 - 20-YEAR CIP FORECAST A$, The Facilities Master Plan Timing Fits Perfectly Within our 5-Year Rate Cycle Rate 2017 Study Facilities Prop 218 Master Mailing Plan FY 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Rate Cycle 4 5 L L 4 5 1 2 3 Year NEW RATE STRUCTURE STARTS JULY 1, 2018 Recommendation • Approve a Professional Services Agreement with Carollo Engineers, Inc. for an amount not to exceed $3, 132,052 • Approve a contingency of $313,205 ( 10%) Questions ? The Facilities Master Plan Timing Fits Perfectly Within our 5-Year Rate Cycle RATE STUDY 2017 PROP 218 FMP MAILING FY 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 Rate Cycle 4 5 1 2 3 4 5 1 2 3 Year Change 1.55% 1.22% 1.81% 2.08% 2.03% 1.99% 1.96% 2.19% 1.88% 2.11% OPERATIONS COMMITTEE f4eaHngDae TOBd.OfDir. 07/O6/16 07/27/16 AGENDA REPORT Item Item Number 9 14 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: SAFETY IMPROVEMENT AT PLANT NOS. 1 AND 2, PROJECT NO. J-126 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Arcadis U.S., Inc. to provide program and engineering design services for Safety Improvement at Plant Nos. 1 and 2, Project No. J-126, for an amount not to exceed $1,540,000; and B. Approve a contingency of$154,000 (10%). BACKGROUND The Orange County Sanitation District (Sanitation District) owns and operates the facilities that were designed and constructed from the 1950s to present. In July 2014, the Facility Wide Safety Assessment, Project No. SP-145-1, reviewed safety issues at the Sanitation District Plant Nos. 1 and 2, and pump stations. The study identified approximately 2,000 facility issues impacting worker safety and compliance with Cal/OSHA regulations including electrical, fall protection, machine guarding, hazardous area classifications, skylights, and walkway hazards. Each item was assigned a high, medium, or low priority rating. Pending resolution of the safety items, interim measures were taken by the Sanitation District to minimize life-safety risks. There was approximately an even distribution between those that would be addressed using Sanitation District resources, and those that would be addressed through the Capital Improvements Program (CIP), depending on their nature and complexity. Items on the CIP list which could not be timely assigned to existing projects are now assigned to Safety Improvement at Plant Nos. 1 and 2, Project No. J-126. RELEVANT STANDARDS • Provide a safe workplace • Protection of Orange County Sanitation District Assets PROBLEM Approximately 9,100 issues assigned to the Safety Improvement Program represent potential threats to staff, contractors, and visitors, and non-compliance with building and safety codes. Page 1 of 4 PROPOSED SOLUTION To resolve the assigned issues as quickly as possible, Safety Improvement at Plant Nos. 1 and 2, Project No. J-126, will be executed through a number of construction packages which can be completed in a much shorter time than using a single construction contract. Development of multiple construction packages also allows higher priority safety items to be completed more quickly than lower priority items. Preparing multiple construction contracts requires additional services from the design Consultant, including program services to develop a plan on how to best allocate the work among various construction packages, and additional time to prepare the various procurement packages. Since the number and type of construction packages has not yet been determined, it is impossible to precisely determine the level of effort required for detailed design. Therefore, the Consultant's Scope of Work includes both program services, which can be estimated, and detailed design,for which a set allowance of 5,000 hours has been set. Staff will authorize allocations from this allowance as construction packages are identified and the specific scopes and budgets are negotiated. TIMING CONCERNS Delaying resolution of the safety items poses potential threats to staff, Contractor, and visitor safety. RAMIFICATIONS OF NOT TAKING ACTION • Staff, Contractors, and visitors will continue to be exposed to potential safety hazards. • Certain facilities will continue to not comply with code requirements. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Consultant Selection: The Sanitation District advertised and requested proposals for Safety Improvements Program, Project No. J-126 on April 18, 2016. The successful Consultant will be responsible for performing engineering services including design and construction support services. The following evaluation criteria were described in the Request for Proposals (RFP) and used to determine the most qualified Consultant. Page 2 of 4 CRITERION WEIGHT Project Understanding and Approach 40% Related Project Experience 20% Project Team and Staff Qualifications 40% Two proposals were received on May 18, 2016 and evaluated in accordance with the evaluation process set forth in the Sanitation District Board of Directors' Ordinance No. OCSD-47, by a pre-selected Evaluation Team consisting of the following Sanitation District staff. Brian Bingman Engineering Supervisor Gary Conklin Senior Engineer Martin Dix Engineering Supervisor Jeffrey Mohr Engineering Manager Richard Spencer Human Resources Manager Three representatives from Engineering and Risk Management participated in the evaluation process as non-voting members. Following scoring by the Evaluation Team, both Consultants were invited to interviews. Following the interviews, each member of the Evaluation Team ranked the Consultants based on both the proposals and interviews using the evaluation criteria and weighting described above. Based on the ranking shown below, Arcadis U.S. was selected as the most qualified Consultant. Arcadis U.S. Hazen and Sawyer Evaluator 1 1" 2n° Evaluator 1.' 20 Evaluator tat 2n° Evaluator tat 2n° Evaluator 1°' 20 Combined Ranking 1"' 2m Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with the Sanitation District Board of Directors' Ordinance No. OCSD-47, the fee proposal of only the highest ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with Arcadis U.S., Inc. to clarify the requirements of the Scope of Work, the assumptions to be used for the estimated level of effort, and the level of design detail required to meet the goals and objectives for the project. Page 3 of 4 In evaluating whether the fee proposal was fair and reasonable, the following factors were considered: • The estimated level of effort was evaluated in detail for each phase and task and found to be justified by the needs of the project, the agreed upon assumptions, and the Sanitation District's expectation for the quality of service. • The Consultant's fringe and overhead costs, which factor into the billing rate are reasonable and lower than other similar agreements. The contract profit is 7.01% which is based on the Sanitation District's standard design agreement. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the Professional Design Service Agreement to Arcadis U.S., Inc. CEQA A CEQA Notice of Exemption for this project was filed on August 14, 2015. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Budget Update FY2016-17, Section 8, Page 68). ATTACHMENT The following attachment(a) maybe viewed on-line at the OCSD website (Mm w.ocsd.com) with the complete agenda package: • Professional Design Services Agreement AC:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27U day of July, 2016 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and Arcadis U.S., Inc., for purposes of this Agreement hereinafter referred to as "CONSULTANT'. WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for the Safety Improvements Program, Project No. J-126; and to provide design, construction support, and closeout services for the Safety Improvements Program and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on July 27, 2016 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-47 to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is one hundred percent (100%)accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANT and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval by the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30)calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one (1) source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two (2) brand names of products that are capable of meeting the functional requirements applicable to the project. F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a)was publicly known, or otherwise known to PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 1 of 18 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 Million Five Hundred Forty Thousand Dollars ($1,540,000). 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 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 Subconsultant(s)shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum profit shall be ten percent(10%). Between $250,000 and $2,500,000, the maximum profit shall be limited by a straight declining percentage between ten percent (10%) and five percent(5%). For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be five percent (5%). Addenda shall 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 Subconsultant(s), the SANITATION DISTRICT shall pay profit for all services rendered by CONSULTANT and Subconsultant(s)for this project according to Attachment"E"- Fee Proposal. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 2 of 18 E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. 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 Services Administration website at http://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. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 3 of 18 Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stays 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. H. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to 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 I. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 4 of 18 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. J. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He or she may, at his or her discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. K. 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. L. 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. M. 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, PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 5 of 18 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. N. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform work during the design and preconstruction phases of a Construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement of the Department of Industrial Relations. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 6 of 18 D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or professional services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's professional services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require CONSULTANT to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within twenty(20) days of written notice to CONSULTANT, by the SANITATION DISTRICT or its agent. iii. Coverage shall be in effect prior to the commencement of any work under this Agreement. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 7 of 18 B. General Liability The CONSULTANT shall maintain during the life of this Agreement, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: One Million Dollars ($1,000,000) per occurrence with One Million Dollars ($1,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) 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. 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 PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 8 of 18 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The SANITATION DISTRICT reserves the right to require complete, certified copies of all required insurance policies, including endorsements, effecting the coverage required, at any time. The following are approved forms that must be submitted as proof of coverage: PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 9 of 18 • Certificate of Insurance ACORD Form 25 (5/2010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days prior written notice. The Cancellation Section of ACORD Form 25 (5/2010)shall state the required thirty (30) days written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent 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, Division 161, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 10 of 18 K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 8. 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. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 11 of 18 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 of the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within fifteen (15) days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 12 of 18 CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Larry Roberson, Senior Contracts Administrator Copy: Jeffrey Mohr, Engineering Manager— Project Management Office Notices shall be mailed to CONSULTANT at: ARCADIS U.S., INC. 320 Commerce, Suite 200 Irvine, CA 92618 Attention: Harmik Aghanian, Associate Vice President 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. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 13 of 18 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all Federal, State and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 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 PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 14 of 18 services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 15 of 18 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 OCSD POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all OCSD policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the CONSULTANT written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30) days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 16 of 18 ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 17 of 18 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. ARCADIS U.S., INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Clerk of the Board Date By Contracts, Purchasing and Materials Date Management Division Manager Attachments: Attachment"A"—Scope of Work Attachment"B"—Labor Hour Matrix Attachment"C"— Not Attached Attachment"D"—Allowable Direct Costs Attachment"E"—Fee Proposal Attachment"F"— Not Attached Attachment"G"— Not Attached Attachment"H"— Not Used Attachment"I"—Cost Matrix and Summary Attachment"J"— Not Attached Attachment"K"—Hourly Rate Schedule for Minor Subconsultant Attachment"L"—OCSD Safety Standards LDR PDSA PROJECT NO.J-126 Revised 092115 SAFETY IMPROVEMENTS PROGRAM Page 18 of 18 ATTACHMENT "A" SCOPE OF WORK ATTACHMENT "A" SCOPE OF WORK Safety Improvements Program Project No. J-126 TABLE OF CONTENTS I. SUMMARY..........................................................................................................................................2 II. BACKGROUND,GENERAL PROJECT DESCRIPTION,AND PROJECT ELEMENTS.......2 General Program Description.....................................................................................................2 Coordination with Other Projects..............................................................................................3 III.PROJECT SCHEDULE......................................................................................................................4 IV.PROJECT EXECUTION...................................................................................................................5 TASK 1—PROGRAM DEVELOPMENT.................................................................................5 Task 1.1 -Project Management.........................................................................................5 Task 1.2—Implementation Plan........................................................................................8 Task 1.3—Package Chartering..........................................................................................8 Task 1.4—Construction Cost and Schedule....................................................................12 Task 1.5—Safety Review of Construction Packages......................................................13 TASK 2—Construction Package Execution............................................................................13 V. GENERAL REQUIREMENTS........................................................................................................14 GENERAL..................................................................................................................................14 OCSD Engineering Design Guidelines and Strategic Plan.............................................14 VI.STAFF ASSISTANCE......................................................................................................................16 EXHIBITS:..............................................................................................................................................16 June 2016 J-126—Conformed SOW Page 1 of 17 I. SUMMARY Provide professional design engineering services for the project described herein including the following: 1. Program management services 2. Engineering services for construction packages, which may include preliminary design, final design, construction support services, and closeout. II. BACKGROUND, GENERAL PROJECT DESCRIPTION, AND PROJECT ELEMENTS BACKGROUND The SP-145-1 Facility Wide Safety Assessment conducted a facility-wide review of safety issues at the Orange County Sanitation District's (SANITATION DISTRICT) Plant No. 1, Plant No. 2, and pump stations. The study was limited to process areas and generally excluded administrative buildings. The study identified over 1,600 facility design and configuration issues impacting worker safety and compliance with Cal/OSHA regulations. Safety items to be addressed include electrical, fall protection, machine guarding, stairs and ladders, NFPA 820 compliance, skylights, and walkway hazards. Each item on the list has been assigned either a high, medium, or low priority rating. SANITATION DISTRICT staff have separated the deficiencies into two (2)sets. The first set, which represents approximately half of the safety items, have been or will be corrected by the SANITATION DISTRICT's Operations and Maintenance Department. The second set will be corrected either by other construction projects, or by this project, the Safety Improvements Program, Project No. J-126. In all cases, the SANITATION DISTRICT's Risk Management staff has taken interim measures to minimize risks to people. GENERAL PROGRAM DESCRIPTION The SANITATION DISTRICT typically addresses all items related to a particular project under a single construction contract. This approach is an efficient way to complete work, but requires long periods of time for predesign, design, bidding, and construction. In order to minimize any further delays in resolving these safety deficiencies, the SANITATION DISTRICT intends to complete these safety items in a number of smaller construction packages, many of which can be completed in a much shorter time than would be required if a more conventional approach were to be taken. Development of multiple construction packages also allows higher priority safety items to be completed more quickly than lower priority items. Program services required by this Scope of Work (SOW) include development of an Implementation Plan and drafting and finalizing charters for each construction package identified by the Implementation Plan. Once a charter has been finalized and approved by the SANITATION DISTRICT, the CONSULTANT will perform all engineering services required by the chartered scope of work to complete the associated safety items. The CONSULTANT's Implementation Plan will package the safety items into construction packages for the fastest June 2016 J-126—Conformed SOW Page 2 of 17 possible implementation to correct the safety deficiencies; therefore, this plan is the first program deliverable that defines the quantity and content of the construction packages. PROJECT ELEMENTS Exhibit 19 of this SOW lists all of the safety items assigned to the J-126 project. This list is subject to change and additional safety items may be added throughout the life of the project. The CONSULTANT shall be "nimble"and capable of adding the new safety items to existing construction packages or perhaps even a catch-all construction package designated for last minute safety items. Because of this exposure, the Implementation Plan is more of a living plan that changes with need. COORDINATION WITH OTHER PROJECTS The following projects are currently in construction and may impact or require coordination with this project: • P1-101, Sludge Dewatering and Odor Control at Plant No. 1 —Safety items have been included in this project; however, items may shift to J-126 during the course of the project. • P1-115B, Title 24 Access Compliance and Building Rehabilitation Project—Safety items have been included in this project; however, items may shift to J-126 during the course of the project. In addition, the following projects are expected to be in construction during all or a portion of the schedule of this project. These projects may impact the Implementation Plan and specific construction packages: • 3-62, Seal Beach Pump Station Rehabilitation • 3-64, Rehabilitation of Western Regional Sewers • J-110, Final Effluent Sampler and Building Area Upgrades • P1-100, Digester Rehabilitation at Plant No. 1 • P1-101, Sludge Dewatering and Odor Control at Plant No. 1 • P1-115, Title 24 Access Compliance and Building Rehabilitation Project • P1-123, Trunk Line Odor Control Improvements • P1-125, South Perimeter Security& Storm Water Improvements at Plant No. 1 • P2-107, SCADA System and Network Upgrades • P2-110, Consolidated Demolition and Utility Improvements at Plant No. 2 • P2-118, Activated Sludge Aeration Basin Deck Repair at Plant No. 2 June 2016 J-126—Conformed SOW Page 3 of 17 • P2-89, Solids Thickening and Processing Upgrades • P2-96, Site and Security Improvements at Plant No. 2 III. PROJECT SCHEDULE Table 1 lists the milestones and deadlines for preparation of the Implementation Plan and for Construction Package charters. Table 1 — Implementation Plan Schedule MILESTONE DEADLINE Implementation Plan Presentation Meeting to Fifteen (15) business days from the effective submit and present Draft Implementation date of the Notice to Proceed (NTP) Plan SANITATION DISTRICT Review of Draft Five (5) business days from receipt of Draft Implementation Plan Implementation Plan Submit revised Implementation Plan Three (3) business days from receipt of SANITATION DISTRICT comments The time frames specified in Table 1 are used to estimate the actual milestone dates based on the assumed NTP date, as shown in Exhibit 2. The Implementation Plan will include time frames for chartering each construction package, including when development of a charter should start. Table 2 lists the time frames for completion of charters. Table 2— Project Chartering Deadline MILESTONE DEADLINE Initiation of charter As indicated in the Implementation Plan and agreed upon by SANITATION DISTRICT and CONSULTANT Submittal of draft construction package Five (5) business days from initiation of scope of work and construction package charter schedule SANITATION DISTRICT review of draft Three (3) business days from receipt of draft scope of work and construction package scope of work and construction package schedule schedule Submittal of draft charter(revised scope of Five (5) business days from receipt of work, construction package schedule, and SANITATION DISTRICT comments draft construction package budget) Charter negotiation meeting Three (3) business days from submittal of draft construction package schedule June 2016 J-126—Conformed SOW Page 4 of 17 Table 2— Project Chartering Deadline MILESTONE DEADLINE Submittal of revised charter Three (3) business days from charter negotiations meeting SANITATION DISTRICT approval of charter Five (5) business days from submittal of an acceptable charter IV. PROJECT EXECUTION TASK 1 — PROGRAM DEVELOPMENT TASK 1.1 - PROJECT MANAGEMENT CONSULTANT shall be responsible for managing CONSULTANT's project execution, schedule, budget, Subconsultants, and coordination with other projects. The following project management tasks cover both the program and specific construction packages. Task 1.1.1 Project Management Plan CONSULTANT shall prepare a Project Management Plan to ensure that both the program work and construction package work are properly planned so that: • Resources are efficiently used to complete the project scope and accomplish the project objectives. • Work is planned to meet the specified schedule while providing appropriate opportunities for SANITATION DISTRICT input. • Quality control and quality assurance measures are planned and implemented to meet SANITATION DISTRICT's expectations. The project management plan shall focus on project-specific information and be as concise as possible to document the required information. Where CONSULTANT has a standard procedure for some activity, that procedure shall be referenced, and not repeated in detail. Task 1.1.2 Project Management Progress Meetings CONSULTANT shall prepare an agenda and conduct monthly project management meetings with SANITATION DISTRICT's Project Manager and the CONSULTANT's Program Manager. The purpose of the meetings will be to review CONSULTANT's Progress Report. Meetings should be arranged so that the most recent Progress Report is available for the meeting. Other meetings shall be scheduled on an as-needed basis. June 2016 J-126—Conformed SOW Page 5 of 17 Assume up to sixteen (16) monthly meetingsTask 1.1.4 Program and Project Logs CONSULTANT shall produce and maintain on at least a monthly basis the following logs through the course of the program: Decision Loa. Program and project decision log shall track decisions made during workshops and meetings, and as a result of SANITATION DISTRICT review of deliverables. The log shall include the date of the decision, the title of the meeting where it was made (if applicable), a description of the decision, and a brief summary of the impacts. Action Item Log. The action item log is used to track action items generated during meetings. Action items may only be assigned to members of the SANITATION DISTRICT or CONSULTANT teams. If action is required by a different party, the action item shall be assigned to the person on the team to track who will track the action item with that person. The action item log is not intended to include normal CONSULTANT tasks, nor to include comments on deliverables. The action item log shall include a tracking number(typically coded to the date), a date it was created, a description of the action required, the lead person, and the date it was resolved. If action is required by more than one person, the person who will be asked to coordinate that action shall be listed. Design Issues Log. The design issues log shall list general comments and concems raised by SANITATION DISTRICT staff during program and construction package meetings. An example of a design issues would be a request raised during preliminary design for a particular type of hose bib to be used during construction. Such detail is not usually provided during preliminary design, so the comment would be tracked on the design issues log to be verified prior to completion of the detailed design. This log is not intended to track SANITATION DISTRICT comments on submittals. The log shall include a very short description of how the design issue will be addressed. The design issues log will be used during review of major submittals to confirm that the issue has been appropriately addressed. Task 1.1.5 Progress Reports CONSULTANT shall submit monthly progress reports at the same time as monthly invoices that include the following contents: • Work activities completed to date, in the current reporting period, and projected for the coming month. • A brief description of outstanding issues and their potential for impact on scope, schedule (design and construction), budget(design and construction)and quality. • Potential changes in the project scope or design scope. • Budget status including estimates of actual costs to date, earned value, costs to complete, and costs at completion for both the program and each construction package. The budget status over time shall be presented on a graph with associated tabular data indicating for each month the actual costs incurred, earned value, and planned value. • A discussion of corrective actions to be taken to avoid or mitigate cases where estimated costs at completion exceed budgets. June 2016 J-126—Conformed SOW Page 6 of 17 • Schedule status, including an updated program schedule as a color hardcopy and as a native format electronic file. • A discussion of corrective actions to be taken to avoid or mitigate cases where the program or a construction package schedule is expected to be delayed. • Updated project decision log • Updated action item log • Updated design issues log • Summary of the status of CONSULTANT invoices, including identification of invoices not yet submitted and submitted but unpaid invoices. • Overall budget and schedule completion in graphical format on the same graph for the program and each approved construction package. Show actual budget used, original schedule completion, and actual estimated project completion on the graph. • The approved work breakdown structure shall form the basis for reporting the status of each Scope of Work task in the monthly Progress Report and invoices. All calculations of earned value and estimates to complete shall be made at the same level of detail as included in the cost matrix and summary submitted with CONSULTANT's proposal. Furthermore, for estimating earned value, tasks shall be further broken down to subtasks of no more than fifty thousand dollars ($50,000). Progress reports shall include the basis for estimating earned value for each task and subtask. • Assume up to twenty (20) monthly progress reports Task 1.1.6 Consultant Invoices CONSULTANT shall prepare and submit monthly invoices to SANITATION DISTRICT no later than the first Wednesday of the following month. Invoices shall be submitted for every month that work is being performed, unless SANITATION DISTRICT's Project Manager has provided prior approval for combining the work of two (2) months into a single invoice. The invoices shall document the labor-hours and billing rate for each person that works on the project. Overhead, profit, and any direct costs shall also be shown for each task. As part of the summary section of the invoice, CONSULTANT shall also include the following information: • Budget • Current billing period invoicing • Previous billing period "total invoiced to date" • Budget amount remaining • Current billing period " total percent invoiced to date" June 2016 J-126—Conformed SOW Page 7 of 17 Although CONSULTANT is required to track costs at the same level of detail as in the cost matrix and summary for monthly progress reports, costs for invoicing shall be grouped into the following work packages. Program Level Work Packages Number Description Tasks 3141 Packaging Plan Tasks 1.2, 1.3, and 1.4 3250 Program Management Task 1.1 The monthly invoice shall also itemize using the following work packages for each approved package. Number Description 3146 Preliminary Design 3250 Detailed Design 3350 Services During Construction 3550 Closeout Services Approval of an invoice by the SANITATION DISTRICT requires a progress report for the period covered by the invoice. Payment of an invoice will be delayed until the Progress Report is submitted. The SANITATION DISTRICT will provide a sample invoice structure to CONSULTANT at the beginning of the project. • Assume up to twenty (20) monthly invoices Task 1.1.7 Management of Subconsultants The CONSULTANT shall be responsible for managing all Subconsultants, including the assignment of scope, management of deliverables and schedules, reporting of progress, invoicing, and quality control. TASK 1.2— IMPLEMENTATION PLAN CONSULTANT shall review all safety items of the project elements and develop an Implementation Plan for resolving every item of the project elements through a number of parallel construction packages to appropriately expedite completion. The following considerations should be used to determine how items should best be combined: June 2016 J-126—Conformed SOW Page 8 of 17 • The SANITATION DISTRICT's Executive Management Team has provided direction that to the extent possible: o High priority items should be corrected by March 31, 2017. o Medium priority items should be corrected by December 31, 2017. o All items should be corrected by June 30, 2018. • Addressing lower priority items should not unduly delay completion of higher priority items. • Lower complexity items can be designed in a shorter time period than more complex items. • Similar items may be more efficiently constructed by a contractor with a competitive advantage in doing that type of work. • Items that do not require compliance with Public Works contracting requirements may be more quickly completed than items that do. • Items that can be completed under the SANITATION DISTRICT's Fast-Track 7-Pack (7-Pack) process can be completed in approximately two (2) months less time than if a public bid is required. See Exhibit 18 for information on when the 7-Pack can be utilized. • Design packages submitted to the 7-Pack may require a lower level of detail than for a public bid. • SANITATION DISTRICT's policy is not to"piece-meal" procurement of work to get around California law or the SANITATION DISTRCT's Purchasing Ordinance. See Exhibit 17 for SANITATION DISTRICT Purchasing Ordinance. • Non-construction costs for design and construction management are typically higher on small construction contracts than on larger construction contracts. There may be other considerations that should influence how items are optimally divided into construction packages. SANITATION DISTRICT has no pre-existing preference on packaging of items. OCSD has implemented a Safety Application with a Microsoft Access platform. Information in the Safety Application is regularly updated by the SANITATION DISTRICT. The information from the Safety Application will be made available to the CONSULTANT, however, the CONSULTANT is not expected to maintain or update the information contained in the Safety Application. Task 1.2.1 —Implementation Plan Contents CONSULTANT shall prepare a draft Implementation Plan that contains the following contents: • A list of all proposed construction packages needed to complete the work. June 2016 J-126—Conformed SOW Page 9 of 17 • A list of every safety item of the project elements and to which proposed construction package the item will be assigned. • For each construction package the following information: o A title that indicates the nature and/or location of the work. o A description of what types of safety items are included in the construction package and why they are being grouped together. o The rough order of magnitude construction cost, for the purpose of choosing an appropriate procurement method. The initial estimates included in the SP-145-1 report may be used for preparation of the Implementation Plan. An escalation factor may be added to the estimates where the CONSULTNAT deems necessary. o The proposed procurement method for physical implementation of the work. Examples of procurement methods include: • Public works bidding • Non-public works advertised bidding • Non-public works invitation only bidding (for construction packages less than $35,000) • 7-Pack procurement. o Any permits required for the procured package. o An initial estimate of durations for design, procurement, and construction. • Initial identification of potential overlaps, conflicts or risks among construction packages or other SANITATION DISTRICT projects. • An initial sequencing plan and Critical Path Method schedule showing how the various construction packages would be chartered, designed, procured, and constructed. This sequencing plan should factor in CONSULTANT, SANITATION DISTRICT, and procurement resource limitations. The sequencing plan shall identify when the chartering process for each construction package should begin. Task 1.2.2—Implementation Plan Workshops and Meetings CONSULTANT shall prepare for and conduct workshops and meetings related to the Implementation Plan. CONSULTANT shall submit agendas approximately one (1)week prior to each meeting. CONSULTANT shall prepare and submit meeting minutes within three (3) business days of each meeting. June 2016 J-126—Conformed SOW Page 10 of 17 • Implementation Plan Kick-off Meeting. This meeting will address the objectives of the implementation plan, the factors that should be considered in developing construction packages, procurement constraints, and priorities. • Implementation Plan Presentation Meeting. In this meeting, CONSULTANT shall present an implementation approach for packaging the various safety items, and how the construction packages might be staged. The objective of this meeting is to get SANITATION DISTRICT input prior to completing the Implementation Plan. Task 1.2.3—Implementation Plan Submittals CONSULTANT shall submit a draft and completed Implementation Plan. The submittal shall include native files and a compiled PDF of all contents. CONSULTANT shall submit the draft Implementation Plan prior to the Implementation Plan Presentation Meeting. Task 1.2.4—Implementation Plan Updates Changes to the Implementation Plan will likely be required from time to time as a result of: • Items being transferred from one construction package to another. • Items being resolved separately from this program. • New items being added to the program. • Changes in priorities or sequencing of construction packages. When such changes are made, the following portions of the Implementation Plan shall be updated: • The list of what items are assigned to what construction package. • Sequencing plan changes, if applicable Upon updating, CONSULTANT shall transmit a PDF of the new material to the SANITATION DISTRICT for posting on an internal SharePoint site. Submittal of hard copies will not be required. TASK 1.3— CONSTRUCTION PACKAGE CHARTERING Construction package charters will be used to establish and approve CONSULTANT's scope, schedule, and budget for each construction package. Once SANITATION DISTRICT has approved a charter, CONSULTANT will be held to the requirements of the scope, schedule, and budget included in the charter, as if it were a stand-alone project. Task 1.3.1 Construction Package Charters Once SANITATION DISTRICT has accepted the Implementation Plan, CONSULTANT shall begin preparing and submitting project charters. Charters shall include the following material: June 2016 J-126—Conformed SOW Page 11 of 17 • Construction Packaae CONSULTANT Scope of Work. CONSULTANT shall prepare a sufficiently detailed scope of work for all CONSULTANT services related to the construction package from preliminary design through closeout. Examples of scopes of work are included in Exhibits 20 and 21, however, the following will not be included in the construction package scope of work because they are included at the program level: o Project management o Construction cost estimating and scheduling o Workshops and meetings o Safety reviews • Construction Package Schedule. The construction package schedule shall include a detailed schedule with milestones for CONSULTANT's design scope of work, as well as for procurement and construction of the physical work. The initial durations identified in the Implementation Plan for procurement and construction may be used for the construction package schedule. • Construction Package CONSULTANT Budget. CONSULTANT shall prepare a detailed itemization of all tasks required of the CONSULTANT for the construction package, and a listing of hours for each task. This itemization shall include a list of drawings, specifications, meetings, etc. to justify the proposed level of effort and cost. Task 1.3.2 Charter Negotiations SANITATION DISTRICT will review in detail CONSULTANT's draft charters. CONSULTANT shall meet and confer with SANITATION DISTRICT staff to reach agreement on acceptable scopes, schedules, and budgets. Task 1.3.3 Charter Management Once SANITATION DISTRICT approves a construction package charter, all work related to it shall be tracked and managed separately. CONSULTANT shall not exceed the approved budget without prior approval of SANITATION DISTRICT's Project Manager by means of a signed charter revision memo. The charter revision memo will list any changes to scope, schedule, or budget. TASK1.4—CONSTRUCTION COST AND SCHEDULE Task 1.4.1 Construction Cost This task applies to estimating construction costs for all construction packages included in the program. June 2016 J-126—Conformed SOW Page 12 of 17 CONSULTANT shall provide Construction Cost Estimates for final design submittals for each Construction Package per SANITATION DISTRICT's Engineering Design Guidelines, Chapter 01, Section 01.4.6 "Construction Cost Estimate." A sample construction cost estimate format is provided in Exhibit S.Task 1.4.2 Program Schedule CONSULTANT shall create, update, and maintain a detailed program schedule using a critical path method approved by SANITATION DISTRICT's Project Manager. The program schedule shall be updated with the monthly progress report and shall include the progress and outlook for each element in each approved construction package schedule. The schedule shall be cost loaded and capable of calculating earned value. The schedule shall include key milestones for all approved construction packages. The schedule shall be based on the same work breakdown structure used for estimating earned value as described in Task 1.1.5, Progress Reports. At a minimum, the schedule shall indicate the following: • Projected start date and finish date for each activity for each construction package. • Each project task and subtask in the work breakdown structure with predecessors and successors. Major meetings and workshops. • Physical percent complete for each activity in the work breakdown structure and percent complete by phase. SANITATION DISTRICT staff will make available to CONSULTANT the construction status of each construction package for inclusion in the monthly program schedule update. CONSULTANT shall prepare planned, actual and earned value curves for the baseline schedule and for monthly updates. Monthly updates shall also include cost performance Index and schedule performance index calculations. TASK 1.5—SAFETY REVIEW OF CONSTRUCTION PACKAGES Prior to submittal of any design submittals, CONSULTANT shall utilize appropriately qualified safety professionals to review the proposed solution and the associated plans and specifications to ensure that the work will resolve issue. Each design submittal shall include a signed form from a safety professional listing their name, a description of the material they reviewed, the approximate number of hours spent on the review, and a statement indicating that the plans and specifications as submitted will resolve the safety issue. TASK 1.6—WORKSHOPS AND MEETINGS SANITATION DISTRICT expects that multiple construction packages will be in design at the same time. Rather than scheduling meetings and workshops for each construction package, weekly technical meetings shall be held with appropriate CONSULTANT and SANITATION DISTRICT staff to review progress, resolve issues, and make decisions.Agendas listing the projects to be discussed shall be submitted to the SANITATION DISTRICT at least three (3) June 2016 J-126—Conformed SOW Page 13 of 17 business days prior to the meeting. Brief minutes listing decisions and action items shall be submitted to SANITATION DISTRICT not more than three (3) business days after the meeting. • Attend Program Kick-off Meeting • Assumes up to fifty-two (52)weekly workshops/meetings ASSUMES SAFETY PROFESSIONALS WILL ATTEND UP TO TWELVE (12) WORKS HOPS/MEETINGSTASK 2 — CONSTRUCTION PACKAGE EXECUTION The Task 2 Scope of Work will be set as construction package charters that are approved by the SANITATION DISTRICT. For the level of effort to be included in the Technical Proposal and the Fee Proposal, CONSULTANT shall assume a total of five thousand (5,000) hours. The distribution of those hours among various roles and disciplines shall be as proposed by CONSULTANT in the Proposal and reviewed during negotiations. CONSULTANT shall also include in the estimated fee an allowance of thirty thousand dollars ($30,000)for reimbursable direct costs. As charters are approved the budget associated with the indicated number of hours shall be reduced by the same amount authorized by the charter. V. GENERAL REQUIREMENTS GENERAL OCSD ENGINEERING DESIGN GUIDELINES AND STRATEGIC PLAN CONSULTANT shall refer to and adhere to the requirements of SANITATION DISTRICT'S Safety Standards, Engineering Design Guidelines and other SANITATION DISTRICT Design Standards referenced therein except for the deviations specified below. Exhibit 12Error! Reference source not found. is a complete set of the SANITATION DISTRICT's Safety Standards and Design Standards, the latest edition at the time of the design proposal stage. The Engineering Design Guidelines define what plant design concepts/tools/methods and project management requirements shall be adhered to and in what manner they shall be used/provided by consultants, e.g., requirements regarding design concepts, submittals, documentation details, use of SANITATION DISTRICT's Master Specifications, and other related SANITATION DISTRICT standards, etc. Refer also to Section "CONSULTANT's responsibilities" in the Engineering Design Guidelines Chapter 01. Refer to "Master Specifications Instructions for Use"that mandates rules and conventions to be used in all SANITATION DISTRICT project specifications. The SANITATION DISTRICT is in the process of incorporating changes to the Engineering Design Guidelines based on recommendations from SP-145-1.These changes should be implemented by the time the Notice to Proceed is provided for this project. The project Scope of Work defines whether or not each specific deliverable described in the Engineering Design Guidelines shall be part of the project and when each task shall take place. June 2016 J-126—Conformed SOW Page 14 of 17 The project Scope of Work also includes requirements that supplement and/or modify the Engineering Design Guidelines requirements for this project. The project Scope of Work and the Engineering Design Guidelines impact CONSULTANT's project cost. Except as specified in this Scope of Work, design of all facilities shall conform to the recommendations of the currently approved Master Plan for SANITATION DISTRICT facilities. The project shall also incorporate all applicable mitigation measures included in associated environmental documents and site specific local requirements. Construction Sequencing and Constraints CONSULTANT shall develop with SANITATION DISTRICT staff and include in the bid documents detailed requirements for construction sequencing and constraints. These shall ensure safe and reliable operation and maintenance of SANITATION DISTRICT facilities. The facilities must be kept on-line and fully operational with minimal interruptions throughout construction. Working Hours Meetings with SANITATION DISTRICT staff shall be scheduled from Monday through Thursday between the hours of 8:00 AM and 4:00 PM. CONSULTANT's on-site staff shall conform to SANITATION DISTRICT work schedules. CONSULTANT shall refer to the Engineering Design Guidelines, Chapter 01, Section 01.3.5 "CONSULTANT Inspection of Treatment Facilities" for further requirements. Standard Drawings and Typical Details All the details used in the project(SANITATION DISTRICT's Standard Drawings and CONSULTANT-developed typical details)shall be shown on the plans. Software The CONSULTANT is expected to develop and provide the deliverables using the standard software currently approved for use by SANITATION DISTRICT. The standard SANITATION DISTRICT software includes, but is not limited to, the following: o Windows Professional o ESRI software (Arc GIS) o Microsoft Internet Explorer c AutoCAD P&ID (for P&ID drawings only) o AutoCAD Map 3D (for all other drawings) o Microsoft Office o Maximo June 2016 J-126—Conformed SOW Page 15 of 17 o Adobe Reader/Acrobat for working with PDFs o Primavera P6 for scheduling o Database software as defined elsewhere in the project Scope of Work Any software that the CONSULTANT needs to comply with these standards shall be purchased and maintained by the CONSULTANT at no additional cost to the SANITATION DISTRICT. In the event the SANITATION DISTRICT provides the CONSULTANT with access to SANITATION DISTRICT software and hardware at a SANITATION DISTRICT facility in order to facilitate performance of its work, all software shall remain the property of the SANITATION DISTRICT. Only software licensed to the SANITATION DISTRICT shall be installed on SANITATION DISTRICT equipment. In addition, only the SANITATION DISTRICT's Information Technology Department will perform the installation of this software. Refer to Chapters 10 and 11 and Appendix A of SANITATION DISTRICT's Engineering Design Guidelines for requirements on preparation of Criticality Tables and ETAP, SAT, and EID databases. Refer to the SANITATION DISTRICT's CAD Manual and to Chapter 11 and Appendix A of the Engineering Design Guidelines for requirements regarding P&ID drawings. VI. STAFF ASSISTANCE The SANITATION DISTRICT staff member or designee assigned to work with CONSULTANT on the design of this project is Sejal Patel at (714) 593-7868, e-mail to: spateing.ocsd.com. EXHIBITS: Exhibit 1 Not Used Exhibit 2 Project Schedule Calculation Exhibit 3 Not Used Exhibit 4 Dellverables Quantities Exhibit 5 Sample Construction Cost Estimate Format Exhibit 6 Sample Full Project Safety Review Plan Exhibit 7 Sample Risk Management Check List Exhibit 8 Not Used Exhibit 9 Not Used Exhibit 10 Not Used Exhibit 11 Not Used Exhibit 12 OCSD Safety Standards and OCSD Engineering Design Standards on OCSD's website Exhibit 13 Project Reference Material • FE10-20 2011 Miscellaneous Fall Protection Improvements (Conformed Drawings) June 2016 J-126—Conformed SOW Page 16 of 17 • FE12-05 1511 St.. RPPS and BPPS Fall Protection Improvements (Conformed Drawings) • SP-145-1 Facility-Wide Safety Assessment (Report) Exhibit 14 Not Used Exhibit 15 Not Used Exhibit 16 Not Used Exhibit 17 Purchasing Ordinance No. OCSD-47 Exhibit 18 Fast Track 7-Pack Master Contract Specification No. S-2015-700-1 Exhibit 179 J-126 Safety Item List(electronic file available in the ftp site below) ftp://fto.ocsd.co m/J-126 username: ftpreader password: road4short Exhibit 20 CIP SOW Template Exhibit 21 FE SOW Template SP:dm June 2016 J-126—Conformed SOW Page 17 of 17 OPERATIONS COMMITTEE Meng Dat0 TOBE. Dir. 07/lti06/16 07/27/1Or6 AGENDA REPORT Item Item Number 0 16 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: PRIMARY TREATMENT REHABILITATION AT PLANT 2, PROJECT NO. P2-98 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Black & Veatch to provide engineering design services for Primary Treatment Rehabilitation at Plant 2, Project No. P2-98, for a total amount not to exceed $18,141,423; and B. Approve a contingency of$1,814,142 (10%). BACKGROUND Primary treatment is used to separate heavy solids from screened water upstream of biological treatment, and is an essential portion of the wastewater treatment process. The primary treatment facilities at Plant No. 2 consist of fourteen circular clarifiers built between 1960 and 1985 with associated piping, distribution structures, sludge pumping, odor control, and power distribution. RELEVANT STANDARDS • Maintain a proactive asset management program • Support OCWD expansion of GWRS PROBLEM All fourteen primary clarifiers and associated facilities at Plant No. 2 are in need of rehabilitation or replacement based on physical condition, level of performance, and life cycle costs. The four oldest clarifiers, referred to as the A-Side Clarifiers, are at the end of their structural life and need to be replaced entirely. In addition, the existing effluent piping in the area constrains operation of the secondary facilities and cannot support the proposed segregation of Plant No. 2 as proposed in the Effluent Reuse Study, Project No. SP-173. In addition, all of the clarifiers have identified seismic and geotechnical deficiencies. Page 1 of 4 PROPOSED SOLUTION In 2015, the Orange County Sanitation District (Sanitation District) prepared a Concept Report to define the appropriate scope of work for rehabilitation or replacement of the primary treatment facilities at Plant No. 2. • The four oldest clarifiers (A-Side) should be replaced based on their poor structural condition and seismic risks. • The other ten clarifiers (B-Side and C-Side) should be rehabilitated and seismically upgraded. • Primary influent and effluent piping should be replaced and rehabilitated as required to ensure long-term reliability and satisfy all hydraulic requirements of reuse. • The existing two odor control complexes should be replaced with a new system with greater removal capacity. • New power distribution facilities should be constructed to replace the existing system which consists of aging equipment and does not accommodate required on-going monitoring and maintenance. Construction of the proposed recommendations must be staged in a way that maintains on-going operations and the ability to handle peak flows during wet-weather periods. The preliminary plan is to divide the work into two major construction packages. The first will replace the A-Side Clarifiers, the odor control system, and the power distribution system. When that project is finished,the second construction package will rehabilitate the B-Side and C-Side Clarifiers with the associated piping. Due to the flow restrictions, size, and complexity of the work, design and construction of the A-Side Clarifier contract will take seven to eight years. Rehabilitation of the ten clarifiers in the B-Side and C-Side will take an additional five to six years,for total project duration, including design, of approximately fourteen years. The scope of the Professional Design Services Agreement includes preliminary design for the entire project, and final design only for the first construction project. Due to the length of time before the final design of the second construction package would start, staff concluded that a separate solicitation should be used to determine the most qualified firm and team at that time. The proposed project budget, however, includes an allowance for the final design services of the second construction package. TIMING CONCERNS The primary treatment system at Plant No. 2 is aging and becoming less reliable. Due to the time required to replace and rehabilitate the treatment facilities, it is important that the work be initiated at this time. RAMIFICATIONS OF NOT TAKING ACTION The ramifications of not taking action include increasing maintenance costs and reduced reliability with an accompanying lower level of service. The site is also at risk of a seismic Page 2 of 4 event on the Newport-Inglewood Fault with resulting liquefaction and structural settlement. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION On February 26, 2016, the Sanitation District advertised and requested proposals for preliminary and final design for Primary Treatment System Rehabilitation and Replacement at Plant 2, Project No. P2-98. The successful Consultant will be responsible for performing engineering services including design and construction support services. The following evaluation criteria were described in the Request for Proposals (RFP) and used to determine the most qualified Consultant. CRITERION WEIGHT Project Understanding and Approach 40% Related Project Experience 20% Project Team and Staff Qualifications 40% Three proposals were received on April 26, 2016 and evaluated in accordance with the evaluation process set forth in the Sanitation District Board of Directors' Ordinance No. OCSD47, by a pre-selected Evaluation Team consisting of the following Sanitation District staff. Jeffrey Mohr Engineering Manager Dean Fisher Engineering Manager Kathleen Millea Engineering Manager Mike Dorman Engineering Manager Carlos Quiroz 0&M Manager An additional representative from the Contracts Administration Division participated in the evaluation process as a non-voting member. Following scoring by the Evaluation Team, all three Consultants were invited to interviews on May 26, 2016. Following the interview, each member of the Evaluation Team ranked the Consultants based on both the proposals and interviews using the evaluation criteria and weighting described above. Based on the ranking shown below, Black&Veatch was selected as the most qualified Consultant. Page 3 of 4 Black&Veatch CDM Smith, Inc. MWH Evaluator 1 1" 3r° 2m Evaluator 1.' 3f° tad Evaluator 3 1" 3r° 2m Evaluator fat 3ftl tad Evaluator 5 1" 3r° 2m Combined Ranking 1n 3M 2nd The negotiated fee includes $990,633 for an additional Task 5 which provides design services for a phased early start construction project to accommodate the schedule for the GWRS Final Expansion (Project SP-137).This early start construction project will be authorized in the future, if the evaluation studies indicate a cost savings to the District. CEQA The 2006 Facilities Plan Update contained an EIR for rehabilitation of the primary clarifiers at Plant No. 2. However, the EIR did not cover the entire scope of work for the replacement and rehabilitation of the facilities in the P2-98 project. This project will provide an initial study and a Supplemental EIR which will include all the work to be conducted in the P2-98 projects. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted, (Budget FY2016-17, Section 8, and Page 46) and the project budget is sufficient for the recommended action. Date of Approval Contract Amount Continaencv 07/27/26 $18,141,423 $1,814,142 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • Professional Design Services Agreement • PowerPoint Presentation Operations Committee Meeting of July 6, 2016 JM:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27U day of July, 2016 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and BLACK&VEATCH CORPORATION, for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for A-Side Primary Clarifiers Replacement at Plant 2, Project No. P2-98; and to provide Design services for circular clarifiers, power supply and distribution systems, odor control and treatment systems and all associated utility requirements and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on July 27, 2016 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall perform its work in accordance with engineering standards in effect for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 1 of 19 shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of thirty (30)calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. PDSA PROJECT NO.P2-98 Revised 662316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 2 of 19 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 Eighteen Million One Hundred Forty-One Thousand Four Hundred Twenty-Three Dollars ($18,141,423). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E" - Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Suboonsultants 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 PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 3 of 19 rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications 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 htti)://www.gsa.gov/portal/category/104711#. PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 4 of 19 The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem' as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to 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. PDSA PROJECT NO.P2-98 Revised 062316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 5 of 19 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or 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 PDSA PROJECT NO.P2-98 Revised 062316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 6 of 19 work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, 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. PDSA PROJECT NO.P2-98 Revised 662316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 7 of 19 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 Regulations Section 16461(e). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 8 of 19 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, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. 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 Two Million Dollars ($2,000,000) or alternatively, Two Million Dollars ($2,000,000) 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. PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 9 of 19 E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Ten Million Dollars ($10,000,000)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. PDSA PROJECT NO.P2-98 Revised 062316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 10 of 19 G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and endorsements shall conform to the requirements herein stated. All certificates and endorsements are to be received and approved by the SANITATION DISTRICT before work commences. The CONSULTANT shall provide the SANITATION DISTRICT with access to copies of its insurance certificates and amendatory endorsements affecting coverage at its regional office in Irvine, California during normal working hours. Confidential information may be redacted from said policies, provided that verification of coverage may not be redacted. Said policies and endorsements shall conform to the requirements herein stated. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 (5/2010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT 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 PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 11 of 19 must be sent to the attention of Risk Management, Div. 260, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. The SANITATION DISTRICT will not invoke the option expressed in this paragraph unless it has reasonable cause to question CONSULTANT's financial strength. M. Defense Costs Liability policies (except Errors and Omissions/Professional Liability) shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. PDSA PROJECT NO.P2-98 Revised 662316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 12 of 19 O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Nothing in this section, however, requires CONSULTANT in the absence of litigation to reveal its Errors and Omissions/Professional Liability limits beyond that required above in other sections. 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. 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. PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 13 of 19 B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 12. LEGAL RELATIONSHIP BETWEEN PARTIES The legal relationship between the parties hereto is that of an independent contractor and nothing herein shall be deemed to make CONSULTANT an employee of the SANITATION DISTRICT. 13. NOTICES All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of said notices in person or by depositing said notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid. Notices shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Natasha Dubrovski, Principal Contracts Administrator Copy: Dave MacDonald, Project Manager Notices shall be mailed to CONSULTANT at: BLACK&VEATCH CORPORATION 5 Peters Canyon Road, Suite 300 Irvine, CA 92606 Attention: James H. Clark, P.E., Project Manager 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. PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 14 of 19 14. TERMINATION The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty(30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13- NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 15 of 19 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. PDSA PROJECT NO.P2-98 Revised 062316 A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 16 of 19 CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 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 be required to 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 PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 17 of 19 accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30)days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.P2-98 Revised ee231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: BLACK & VEATCH CORPORATION By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Kelly A. Lore Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A' Scope of Work Attachment"B" Labor Hour Matrix Attachment"C" Not Attached Attachment"D" Allowable Direct Costs Attachment"E" Fee Proposal Attachment"F" Not Attached Attachment"G" Not Attached Attachment"H" Not Attached Attachment"I" Cost Matrix and Summary Attachment"J" Not Attached Attachment"IC Hourly Rate Schedule for Minor Subconsultants Attachment"L" OCSD Safety Standards NKD:JSK:yp PDSA PROJECT NO.P2-98 Revised 0e231e A-SIDE PRIMARY CLARIFIERS REPLACEMENT AT PLANT 2 Page 19 of 19 Mm Primary Treatment Rehabilitation at Plant 2 Project Objectives • Replace/rehabilitate Plant 2 primary treatment facilities • Upgrade power system & associated infrastructure • Improve odor treatment system • Mitigate liquefaction/structural failure risks • Ensure reliable performance and maintainability • Provide cost effective facilities • Maintain 24/7 operations during construction Conceptual Study Findings • New circular A-side Clarifiers (4 total ) • Rehabilitate B-side and C-side ( 10 total ) • New Power Building "E" • New Central Odor Treatment • New Solution Polymer Facilities Project Elements A-Side Clarifiers Constructed 1960 - 1963 , ' •� Replace - end of Life B-Side Clarifiers r Constructed 1967 - 1971 Complete rehabilitation required C-Side Clarifiers � - —. , • :, .�r;q Constructed 1972 - 1985 Complete rehabilitation required North and South Scrubbers Replace with centralized system V Power distribution A Replace with upgraded system ti :.t Project Schedule Preliminary Design (Entire Project) Aug 2016 1 year, 5 months Jan 2018 A-Side Clarifier Replacement* Feb 2018 5 years, 5 months Jul 2023 B&C Side Clarifier Rehabilitation* Jul 2020 8 years, 10 months May 2029 * Includes detailed final design, bid, and construction Recommendation • Approve a Professional Design Services Agreement with Black & Veatch for the amount of $ 18, 141,423 . • Approve a contingency of $ 1,814, 142 . Mm Primary Treatment Rehabilitation at Plant 2 Project Budget Project � . A-Side Replacement $142.8 Million B&C Side Rehabilitation $126.4 Million Total Construction Cost $269.2 Million Total Project Budget $428.3 Million OPERATIONS COMMITTEE Meng D310 TOBE. Dir. 07/lti06/16 07/27/1Or6 AGENDA REPORT Item Item 16 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: HEADQUARTERS COMPLEX, SITE AND SECURITY, AND ENTRANCE REALIGNMENT PROGRAM, PROJECT NO. P1-128 GENERAL MANAGER'S RECOMMENDATION Approve a Broker Representation Agreement with Cushman & Wakefield to give exclusive authority to represent the Orange County Sanitation District, at no cost, for the investigation and potential negotiation to acquire existing office building and/or land for a new Administration Building in an area near Plant No. 1. BACKGROUND In June, 2015, the Board of Directors approved the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. At the time, the project was to consider two alternative locations for the building, one where the existing Administration Building is located, the other in the southwest corner of Plant No. 1 next to the Engineering Trailers. Since then, the City of Fountain Valley has suggested the Orange County Sanitation District(Sanitation District)consider locating the building instead in the area between Ellis Avenue and the 405 Freeway between the Euclid Avenue off-ramp and Ward Street. Locating the new building in this area would save space on the plant site that might be needed for process facilities in the future. Approximately five acres of land would be needed for the Administration Building and parking. If the Administration Building is located across Ellis Avenue, the new Laboratory would be constructed within the north area of Plant No. 1 after demolition of the existing Administration Building. In June 2016, the Board of Directors approved agreements for California Environmental Quality Act (CEQA) assessment services and design services for the project. RELEVANT STANDARDS • Maintain collaborative and cooperative relationships with neighboring agencies • Make compelling cases for investment • Provide a safe and collegial workplace Page 1 of 3 PROBLEM At this point, a well-planned and executed survey of properties in the area is required to determine ownership, availability, cost of properties, and determine if a willing seller exists. Sanitation District staff does not have the professional experience, qualifications, and credentials appropriate to contact, negotiate, and acquire properties of this type. PROPOSED SOLUTION To provide the professional real estate services required for this project, staff proposes to enter into a Broker Representation Agreement. This agreement gives exclusive authority to Cushman &Wakefield to represent the Sanitation District for the investigation and potential negotiations to acquire property for an Administration Building in the area near Plant No. 1. No costs are incurred with this agreement. If a property deal is negotiated and approved by the Board of Directors, Cushman &Wakefield would receive commission tied to the transaction at that time. TIMING CONCERNS In June 2016, the Sanitation District awarded agreements for the CEQA study and final design. To consider locating the Administration Building on property north of Ellis Avenue, the availability of property must be determined before the design can proceed past the initial conceptual design stage. Moving forward with the CEQA study, property investigation, and final design simultaneously will minimize escalated costs, enable the Sanitation District to continue to progress towards permitted and ADA compliant buildings per agreements with the City of Fountain Valley, and to minimize the length of time that parking issues exist with the new front entry alignment which impacts parking for staff and visitors. RAMIFICATIONS OF NOT TAKING ACTION Without the information on available properties, it will be impossible to accurately evaluate the alternative locating the Administration Building north of Ellis Avenue. This would either delay the project, or consideration of this alternative would have to be dropped. PRIOR COMMITTEE/BOARD ACTIONS June 2016 — Approved agreements for the CEQA study and Architectural and Engineering design services. October 2015 — Designated the southwest corner of Plant No. 1 as the location for the Headquarters Complex as the preferred alternative for CEQA evaluation under the Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. Page 2 of 3 June 2015 — Established new project and budget for Headquarters Complex, Site and Security, and Entrance Realignment Program, Project No. P1-128. ADDITIONAL INFORMATION Staff interviewed three real estate brokerage firms for assistance: Cushman and Wakefield of California, Inc. CBRE Coldwell Banker Commercial Cushman and Wakefield was selected as the preferred firm based on interview questions related to approach, experience with public agencies, experience within Orange County and specifically Fountain Valley, relationships with property owners in the desired area, compensation structure, and experience and abilities of the key resources with the firm. CEQA CEQA work was awarded to LSA Associates, Inc. in June 2016. An EIR will be prepared. FINANCIAL CONSIDERATIONS This agreement does not require any commitment of funds. The brokerage firm would be compensated with a resulting real estate transaction should this occur, in accordance with standard brokerage commission fees. ATTACHMENT The following attachment(s) may be viewed on-line at the OOSD website (wwwocsd.corn with the complete agenda package: Broker Representation Agreement WS:dm:gc Page 3 of 3 BROKER REPRESENTATION AGREEMENT This Representation Agreement will exclusively authorize Cushman & Wakefield hereinafter "Broker" to represent the Orange County Sanitation District ("OCSD") in connection with the potential acquisition/negotiation for the purchase/lease of land or existing buildings in the area surrounding its existing offices/warehouses/maintenance shops and sanitation facilities which are located on Ellis Avenue in the City of Fountain Valley, California, for the purpose of relocating administrative offices only. The Broker will use its best efforts to secure the most favorable location, property and market terms for OCSD's consideration. Within that process, Broker will solicit the cooperation of all appropriate commercial real estate brokers, landlord/owners, developers and city and state agencies; while OCSD agrees to refer to Broker all inquiries or offerings received directly. OCSD shall have no liability or obligation to pay Broker any commission or other fee in connection with the services provided pursuant to this representation agreement. Broker shall look solely to the seller or landlord, as applicable, for its brokerage commission or fee in the event that a successful transaction is consummated(which consummation shall be in the sole and absolute discretion of OCSD), unless otherwise authorized by OCSD at the time of negotiation of the purchase in which case the Broker's commission shall not exceed 3 percent of the total purchase price for an entire transaction exceeding $10 million. Unless sooner terminated or extended by OCSD, this Representation Agreement will remain in effect until December 31, 2017, at which time it will expire. OCSD shall have the absolute right, in its sole discretion, to terminate this Representation Agreement without liability or obligation at any time upon written notice to Broker. AGREED AND ACCEPTED: BROKER: Name: Orange County Sanitation Name: Cushman & Wakefield District Address: 10844 Ellis Avenue Address: Fountain Valley, CA 92708 By: By: John Nielsen, Board Chair Name Printed: Attest: Kelly Lore, Clerk of the Board Its: Date: Date: 1164953.1 ADMINISTRATION COMMITTEE Meng D310 TOBE. Dir. 07/lti13/16 07/27/1Or6 AGENDA REPORT ItemNumber Item Number z 17 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REVENUE REFUNDING CERTIFICATE ANTICIPATION NOTES, SERIES 2016B GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to issue Revenue Refunding Certificate Anticipation Notes, Series 2016B, as two-year fixed-rate obligations, subject to market conditions, in an amount not to exceed $120,000,000 to replace the $120,850,000 Revenue Refunding Certificate Anticipation Notes, Series 2014B maturing on November 15, 2016. BACKGROUND In March 2006, the Orange County Sanitation District (Sanitation District) issued $200 million of variable rate Certificates of Participation (COP), Series 2006(2006 COPS). Alternatively, the Sanitation District could have issued debt, at an estimated cost of 4.54%, on a fixed rate basis in 2006 ("2006 Fixed Rate"). From inception through August 2008, the average variable rate on the 2006 COPS was 2.95% or 0.22% less than the SIFMA index(weekly market index of tax-exempt variable rate obligations). As the global financial crisis took hold in the late summer of 2008, there was a significant increase in the variable rate borrowing cost of the Sanitation District, including all municipal variable rate borrowers, as the 2006 COPS averaged 4.29% (or 1.56% above the SIFMA index) for the period between September 2008 and December 2008. The amount of the increase in variable rate cost above the SIFMA index can be attributed to the weakened financial strength of the bank, DEPFA Bank plc, that was providing liquidity support on the 2006 COPS. Even with the increase in interest rates during this period of stress, the 4.29% average cost was still lower than the 2006 Fixed Rate of 4.54%. In December 2008, the Sanitation District proactively refunded the 2006 COPs with the Refunding COP Series 2008C Certificate Anticipation Notes (2008C CANS)to reduce its exposure to then higher and more volatile variable rate costs. The yield on the 2008C CANS was 0.98% for a one-year period. The issuance of the 2008C CANs allowed the Sanitation District to redeem the 2006 COPS at an all-in cost of less than 1.25%and avoid paying a bank rate of 4.75% which would have been effective starting a month later. Since the 2008C CANs issuance, the Sanitation District completed five additional one- year refiinancing's at yields at progressively lower yields, and a two-year refinancing in 2014, as summarized below: Page 1 or 6 Princi al Amou 2009E $ 165,865,000 0.370% 0.559% 2010E 154,665,000 0.360 0.525 2011E 143,205,000 0.225 0.399 2012C 131,700,000 0.210 0.410 2013A 129,625,000 0.170 0.390 2014E 120,850,000 0.320 0.523 The interest rate on the currently outstanding Revenue Refunding Certificate Anticipation Notes Series 2014B (201413 CANS) was fixed for two years and the entire $120,850,000 plus interest becomes due and payable on November 15, 2016. The Sanitation District is responsible for the total repayment, including interest due, of $123,267,000 or the Sanitation District could choose to refinance the 2014B CANS. Due to the expected low tax-exempt cost of refinancing CANS and the benefit of maintaining reserves, staff does not recommend the use of$120 million of reserves to repay the 2014B CANS; therefore, there are a number of refinancing options for consideration of the Sanitation District. RELEVANT STANDARDS • OCSD Debt Policy - Financial Management Policy and Procedure No. 201-3-1; Restructuring debt is deemed to be desirable. • Easy access to low cost credit. PROBLEM The CAN Series 2014B are due and payable on November 1, 2016 in the amount of $123.3 million. The CAN Series 2014B was issued with a low-cost, two-year rate with the expectation that upon maturity the issue would be refinanced. PROPOSED SOLUTION The issuance of up to $120 million of CAN Series 2016B would allow the Sanitation District to repay the CAN Series 2014E and avoid using $120 million of reserves for such purpose. TIMING CONCERNS The Sanitation District must complete a refinancing by no later than November 15, 2016; otherwise, $120 million of reserves will be required to repay the CAN Series 2014B. RAMIFICATIONS OF NOT TAKING ACTION Not taking action by November 15, 2016 would cause the Sanitation District to use its reserves to repay the CAN Series 2014E or cause an Event of Default due to lack of repayment to lenders. The economic ramification of an Event of Default would result in a downgrade in credit ratings, reduced access to capital, and higher costs of borrowing. Page 2 of 6 PRIOR COMMITTEE/BOARD ACTIONS February 2016 - The Board adopted Resolution No. OCSD16-03, authorizing the execution and delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2016A, authorizing the execution and delivery of such Revenue Obligations, evidencing principal in an aggregate amount of not to exceed $163,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Revenue Obligations and authorizing the execution of other necessary documents and related actions. ADDITIONAL INFORMATION Financing Considerations 1. Fixed Rate Refunding The issuance of long-term fixed rate debt to refund the 2014B CANS will eliminate any future market access risks (ability to issue debt to refinance maturing debt) and interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing). After the issuance of fixed rate debt, the Sanitation District will no longer be exposed to changing market conditions. Although, current fixed rates are near historical lows, a fixed rate refunding would result in an immediate increase in debt service cost of approximately $2.4 million. Fixed rate debt would also remove the interest rate hedge originally desired by the Sanitation District (in 2006) which was intended to insulate the District from changes in the District's fluctuating investment portfolio earnings as the variable rates on the 2006 COPS were expected to move in tandem with changes in short- term interest rates. 2. Variable Rate Refunding Current variable rates for highly-rated California municipal borrowers (such as the District)are low at approximately 0.40%for traditional variable rate debt supported by a commercial bank. However, the availability of bank support continues to be relatively expensive at approximately the same cost as current variable rates. The terms and conditions currently demanded by banks are also more onerous than during the period prior to the global financial crisis. Alternative variable rate products have been developed that do not require bank support, but these products are generally used by issuers to diversify among a portfolio containing many different variable rate products, unlike the Sanitation District's single issuance of short-term interest rate exposure (2014B CANS). In addition, there are limited investors for these alternative products. Page 3 of 6 3. CANs Refunding Since the issuance of the 2014B CANs, short-term interest rates have increased, but still remain low. The issuance of refunding CANS will continue to allow the Sanitation District to accrue savings at a rate that is fixed while insulating the District from the possibility of short-term rates increasing over the fixed rate period. There is a strong correlation between traditional tax-exempt variable rates and short-term tax-exempt fixed rates, as shown below in a historical comparison between 1-year tax-exempt MMD (Municipal Market Data) fixed rates and the SIFMA index: 1-Year MMD vs. 1-Year SIFMA Rolling Average 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 0.0% o° a'' d° —1-Year MMD —1-Year SIFMA Rolling Average In addition, the CANS structure will avoid the payment of high fees to liquidity banks and eliminate the risk of interest rates resetting higher from current low levels during the course of a fixed period of time. The major risk with any CANS structure occurs if the Sanitation District does not have market access to remarket the CANS at maturity. However, the Sanitation District (1) has successfully issued CANS in seven of the past eight years without issue, (2) is the highest rated entity possible (AAA/Aaa/AAA)which should always have the greatest market access, and (3) holds a substantial amount of reserves that could (if the Board chooses) be used to redeem CANS if market access is not available. Staff intends to build in safeguards to avoid the use of Sanitation District reserves unless absolutely necessary: for example, beginning the process of refinancing early to allow for added timing flexibility and structuring the CANS with a short optional call right which will allow the Sanitation District to redeem the CANS in advance of the maturity date. The following table presents the current market costs for 1-5 year CANS: One Two Five Year Years Years Yield 1 0.53% 1 0.59% 1 0.67% 0.86% 0.98% All-In Cost 0.77 0.74 0.80 0.98 1.08 Page 4 of 6 4. Accelerated Rate Management Program To further reduce interest rate risk (additional costs if rates reset higher or are higher upon a future refinancing) the Sanitation District could reinstate the Accelerated Rate Management (ARM) program with a CANS refinancing debt issuance. Between 2006 and 2012, the ARM program used accrued savings (e.g., 0.41% cost on 2012C CANS)compared to the 2006 Fixed Rate of 4.54%to reduce the outstanding amount of debt on a yearly basis. With less debt outstanding, the Sanitation District significantly reduces its interest rate risk (if higher interest rates occur, the negative impact is mitigated as the higher interest cost is calculated on a smaller principal amount). The implementation of the ARM program since the issuance of the 2006 COPS has (1) reduced the outstanding principal by $80 million and (2) decreased the interest rate risk to the Sanitation District as the break-even rate (the average future interest rate for the remaining debt from the 2006 COPs issuance) is over 12.8%. The original variable rate structure of the 2006 COPS and the past seven CANS refiinancing's have already saved the District over$38.5 million compared to the alternative of the District issuing fixed rate debt in 2006. Given the current low level of fixed rates which is also a possible refinancing option, it may be an appropriate time to reinstate the ARM program as a method of mitigating interest rate risk associated with any short-term borrowings. Even as long-term interest rates have been volatile, short-term debt continues to remain low and attractive, especially rates within one and two years. Short-term borrowing costs are also lower than, and act as a hedge against, the Sanitation District's cash reserves which are currently earning approximately 1.25%. Therefore, staff is recommending the refunding of the 2014B CANs with a new two-year CAN that will enable the Sanitation District to lock-in a low rate for two years without (a) encumbering cash reserves; (b) exposing the District to relatively high bank liquidity costs associated with variable rate debt; and, (c) avoiding higher fixed rates which would increase near-term debt costs by approximately $2.4 million per year. In addition, staff recommends reinstituting the ARM program to be structured against the fixed rate at the time of the 2014B CANs refinancing. Assuming that the staff receives approval to pursue a refinancing, staff will return to the Administration Committee in September with financing documents to complete the refinancing. There is the possibility that interest rates may change before September and, at the time of approval of the financing documents and based on market conditions at that time, staff may recommend a different refinancing term (e.g. one-year CANs). The refunding CANs can be sold on a competitive basis in order to obtain the lowest financing cost possible. Staff and consultants will be available to make a brief presentation and provide an overview of the financing schedule at the Administration Committee meeting. Following is a chart listing the remaining steps to be completed for the issuance of the Revenue Refunding Certificate Anticipation Notes, Series 2016B debt issuance: Page 5 of 6 September ➢ Board approval of legal and disclosure documents ➢ Financing Corporation approval of legal and disclosure documents October ➢ Receive ratings from Bond Rating Agencies ➢ Receive competitive bids November ➢ Closing ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the complete agenda package: • PowerPoint presentation Administration Committee of July 13, 2016. Page 6 of 6 „'', Revenue Refunding Certificate Anticipation Notes Series 2014B Revenue Refunding CANs Series 2014B Background • Originally issued in 2006 as variable rate debt • Expected to provide hedge against investments • Financial crisis and bank instability caused variable rates to spike • In 2008, refinanced with one-year fixed rate CANs • Since 2008, there have been five subsequent refinancings with one-year CANs and one two-year CAN (in 2014) • 2014B CANs issued in November 2014 4 s� Historical CANs Refunding Cost CANs have provided a low cost of borrowing All-In True Interest Cost 2008-2014 1 .40% 1 .20% 1 .00% 0.80% 0.60% 0.40% 0.20% 0.00% 2008C 2009E 2010B 2011E 2012C 2013A 2014B5 .„ True Interest Cost Maturing 2O14B CANs Sanitation District must repay CANs • $ 120 .85 million due on November 15, 2016 Three Basic Refinancing Options • Fixed Rate Refunding • Variable Rate Refunding • CANs Refunding s� Fixed Rate Refunding Benefits • Removes all risk • Low long-term interest rates • Known cost • No future actions required Disadvantages • Near-term higher debt service costs • No longer an investment hedge .4 Variable Rate Refunding Benefits • Original structure of debt (2006) • Could be the best hedge for investments Disadvantages • Unknown future cost • Traditional bank structure has high fees, more onerous terms, and bank industry was previously very unstable • Newer non-bank products have high fees/costs, less market liquidity, and require additional administration 4 s� CANs Refunding Benefits • Low cost fixed rate, strong investor demand • Variable-like structure, but no variable rate risk until maturity • No bank or remarketing fees • Provides a hedge against investments Disadvantages • Unknown future cost (at maturity) • Requires frequent issuances .4 M Refunding Cost Comparisons Three Basic Refinancing Options OptionsRefinancing Fixed Rate Refunding 2.65% $ 4,761 ,000 Variable Rate Refunding 0.95%(b) 1 ,148,000 CANs Refunding 0.74%(0) 2,388,000 (a) For one-year period only (b) Not fixed, will vary over time, assumes current SIFMA rate (c) Not fixed, will vary after maturity, assumes current two-year rate s� CANs Refunding Market Current Market for CANs One-Year 0.52% 0.76% Two-Year 0.59% 0.74% Three-Year 0.66% 0.79% Four-Year 0.75% 0.87% Five-Year 0.86% 0.96% s� Accelerated Rate Management (ARM) Program Reduction in Interest Rate Risk • Implemented from 2006 through 2012 • Variable rate savings, assuming 4.54% fixed rate, applied to redeem principal • Savings of over $38.5 million ( 12.8% break-even) Reestablishment • Current fixed rates are low • Can be used going forward to mitigate variable/CANs interest rate risk assuming current fixed rates 4 s� Timeline Structure/Legal and Disclosure Documents Final Recommendation of CANs Maturity September Board and Corporation Approval Marketing and Sale Receive Competitive Bids October Closing November 4 s� Current Recommendation Refund with Two-Year CANs • Two-year CANs have slightly lower annual cost (0.02%) than one-year CANs and locks in rate for an additional year • Borrowing cost is currently approximately 0.50% lower than current investment returns of 1 .25% • Due to the ARM program used in earlier refundings (through 2012) and low CANs borrowing costs, the break-even rate is now over 12.8% • Reestablishing ARM program provides protection against short-term rates averaging more than today's fixed rates • Assuming current market conditions, a two-year CANs refunding will increase the break-even rate to 13.6% (in 2018) No New Money Debt Issuances are Planned $looms OUTSTANDING DEBT $1,200 $1,000 $800 $600 $400 $200 $0 2015 2020 2025 2030 2035 2040 A Questions .? STEERING COMMITTEE Meng Dat0 TOBE. Dir. 07/lti27/16 07/27/1Or6 AGENDA REPORT Item Item Number 2 IB Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER'S FY 2015-2016 FINAL YEAR-END WORK PLAN UPDATE GENERAL MANAGER'S RECOMMENDATION Receive and file the General Manager's FY 2015-2016 Work Plan Year-End Update. BACKGROUND Each year, the General Manager prepares a work plan of activities supporting the Orange County Sanitation District's strategic goals and initiatives to be accomplished during the fiscal year. The General Manager's FY 2015-2016 work plan was reviewed by the Steering Committee in August 2015, a mid-year update was provided in January 2016, and a draft year-end update was provided in June 2016. Attached is the final year-end update for the General Manager's FY 2015-2016 work plan. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times • Highly qualified, well trained, motivated, and diverse workforce • Biosolids, Odor, and Energy Master Plans • Use practical and effective means for recovering energy, wastewater for reuse PRIOR COMMITTEE/BOARD ACTIONS June 2016 -Approval of General Manager's DRAFT FY 2015-2016 Work Plan Year-End Update by the Steering Committee. January 2016 - Approval of mid-year update of the General Manager's FY 2015-2016 Work Plan by the Board of Directors. September 2015 - Approval of the General Manager's FY 2015-2016 Work Plan by the Board of Directors. August 2015 - Presented the proposed General Manager's FY 2015-2016 Work Plan to the Steering Committee for review. Page 1 of 2 ADDITIONAL INFORMATION The General Manager's work plan includes goals for the fiscal year. Items in the work plan had deadlines staggered throughout the fiscal year. All items in the work plan were successfully put into motion and a majority completed. CEQA N/A FINANCIAL CONSIDERATIONS All items included in the General Manager's Work Plan were budgeted in the FY 2015-2016 Budget. ATTACHMENT The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.corn with the complete agenda package: • General Manager's FY 2015-2016 Work Plan Year-End Update Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Memorandum June 1, 2016 TO: Chairman and Members of the Board of Directors FROM: lames D. Herberg,General Manager SUBJECT: Fiscal Year 2015-2016 General Manager's Work Plan Update I am pleased to present this update for my Fiscal Year 2015-2016 work plan.The work plan includes five main areas of focus: 1) Safety and Security; 2) Succession Planning; 3) Resource Recovery; 4) Reliability; and 5) Operational Optimization. This work plan incorporates goals included in OCSD's Strategic Plan and was reviewed with the Steering Committee in August 2015. A mid-year update was presented to the Steering Committee in January 2016. My staff and I have been working towards reaching all the goals by their respective deadlines. 1. Safety and Security— Implement measures to reduce risk, protect our regional infrastructure and provide a secure and safe workplace for our employees. • Implement Administrative Controls and address high priority items identified in the Safety Study by December 31, 2015. Update: COMPLETE- Risk Management distributed training materials on administrative controls to all employees, for each of the 13 identified hazard area categories.The outreach included a summary of the hazards and the applicable OCSD safety policy highlighting workplace best practices. All staff have completed the training. High priority items identified in the Safety Study are being addressed and are due to be completed by December 21,2017. • Complete a feasibility analysis about obtaining Voluntary Protection Plan (VPP) certification from OSHA by December 31, 2015. Update: COMPLETE - A survey and gap analysis was completed by an outside consultant,Arcadis in March.The initial assessment identified gaps that must be addressed in order for OCSD to achieve VPP certification. Once the final report is received, toward in June, Risk Management staff will begin to evaluate and address the recommendations. Based on the initial feedback,enhancements to our safety programs are currently underway. These include more field time by Safety & Health staff and front line O&M supervisors,enhanced safety reporting tools,better tracking of safety related concerns through Maximo, and recurring meetings among key management that increases our communication and decision making efforts around safety issues and concerns. • Implement remaining high priority physical site security improvements as identified by recent surveys and reports regarding OCSD's facilities by June 30, 2016. Update: COMPLETE- Most high priority items have been completed with the exception of a select few that are still awaiting the approval of contracts. All outstanding items will be submitted through the project clearing house for funding and implementation by December 31,2016. • Work with Department of Homeland Security to assess and implement recommended mitigations to reduce cyber security risk by June 30, 2016. Update; COMPLETE- Due to the sensitivity of this item, Information Technology provided a closed session update to the Board in January 2016. There are 10 longer-term items/projects that are scheduled for implementation. • Enhance security awareness training, proactive identification and protection of Personally Identifiable Information (PII) on our network and add additional layers of protection on OCSD servers and employee workstations by December 31, 2015. Update: COMPLETE-Valid files where PH is kept have been secured and are being continuously monitored and exception reports generated for suspicious access attempts. IT has developed and delivered security awareness training for staff who use the process control system. IT has implemented additional layers of protection on OCSD assets and will continue to improve our security posture. 2. Succession Planning — Review, modify, improve and enhance OCSD's workforce planning and workforce development strategic initiative to develop and implement tools to expand labor force capacity and staff skill levels. • Employee Engagement Survey— Conduct an agency wide employee engagement survey to assist in measuring the staff satisfaction levels. Use the results of the survey to develop an action plan by June 30, 2016. Update:COMPLETE-A consultant was retained through an RFP process to develop the engagement survey.The agency wide survey was administered by the consultant in June. OCSD will receive the results of the survey in July and develop action plans. • Classification and Compensation Study — Complete all phases of the classification and compensation study by February 28, 2016. Update: IN PROGRESS- The classification phase Page 2 of 6 has been completed. Bargaining units have reviewed the draft classification specifications and provided input for finalization of the class specifications. OCSD made a vendor change to Koff & Associates for the remainder of project, as approved by the Administration Committee in April.Koff&Associates are scheduled to complete the compensation phase in July and to present the results of the study to the Steering Committee and Board in July. The consultant provided a presentation of preliminary data to the Steering Committee in June. • Workforce Vulnerability Assessment— Identify vulnerable positions based on retention, criticality, and difficulty to fill. Develop a workforce planning action plan for each position identified in the vulnerability analysis. Identify workforce needs for the upcoming budget process by December 31,2015.Update:COMPLETE-The workforce vulnerability assessment model is complete.The model was reviewed by the Manager Team and EMT and approved in February for implementation. Tool automation was added by management request and provides updated data for analysis.The tool was deployed in mid-June and is now in use by EMT and Managers. • Talent Readiness Assessments —Identify key talent, as well as possible development efforts. Develop guidelines and forms for this tool by December 31, 2015. Conduct two assessments with the tools and guidelines developed through the Talent Readiness Assessment by June 30,2016.Update:COMPLETE-Process guidelines and implementation are complete. Guidelines were presented to Executive Management Team in February. The EMT competed a Talent Readiness Assessment session in April, and EMT members are assigned to lead development efforts identified in their departments. 3. Resource Recovery — Move towards 100 percent water recycling and expand from treatment to resource recovery. • Research—Present findings and recommendations on Super Critical Water Oxidation and how to more efficiently clean digester gas to the Board of Directors June 30, 2016. Update: COMPLETE- Findings and recommendations on the digester gas cleaning technology were presented to the Board of Directors May 2016. A draft report on the Super Critical Water Oxidation was completed in June and will be presented to the Board of Directors by Fall 2016. • Planning Studies—Receive a draft Effluent Reuse report by June 30,2016. Retain a consultant to conduct a new biosolids master plan by June 30, 2016. Update: COMPLETE-The Biosolids Master Plan was awarded to a consultant six months ahead of schedule in December 2015 and the Effluent Reuse Planning Study draft report was received in May 2016. Page 3 of 6 4. Reliability — Move towards future sustainability and resiliency of operations by implementing best practices for managing infrastructure maintenance and replacement and timely adoption of operational and technology improvements. • Civil Assets Management Plan(CAMP)—Finalize the data management structure for collecting, storing and retrieving all civil asset related data; implement the operational housekeeping program to enhance the availability and reliability of our civil assets and develop a 5-year program implementation plan for prioritizing, resourcing and integrating civil assets into existing maintenance programs. Update: IN PROGRESS - A temporary data management structure for archiving civil asset related data has been created. A more robust data management system is in development with a pilot system that is currently being tested. Housekeeping programs which include gate and valve exercising,flushing and removal of grit in pipes and structures and rotation of equipment in and out of service is being developed. An industrial cleaning contract for grit removal has been established and removal of grit in problem areas is underway. Preventative maintenance plans for valve and gate exercising are in effect at Plant No. 2. A draft program has been created for the valve and gate exercising at Plant No.1. A Plan for development Preventative Maintenance(PM)schedules for both treatment plants is on track to be completed by June 2016. This program will identify areas for preventative maintenance development based on regulatory and reliability risks. Preventative maintenance tasks for corrosion assessments, protective coatings, and cathodic protection for metal structures will be implemented into the preventative maintenance program as part of our continuous improvement efforts. • Planned Maintenance—Ensure that critical process units and equipment are readyto operate and are receiving preventive maintenance in advance of the 2015-16 rainy season (El Nino). Develop and apply planning and scheduling key performance indicator(KPI)reports to measure success by June 30,2016.Update:COMPLETE- The Operations,Maintenance and Collections departments ordered key supplies, tested critical equipment and processes, performed preventative maintenance and reviewed emergency preparedness and response procedures. Our emergency generators were fully tested and repairs were conducted as required. Flow diversion alternatives were tested in the event that key pumping systems were to fail. Conducted additional training including flood prevention provided by the Department of Page 4 of 6 Water Resources, Emergency Operations Center/Incident Command System training, and conducted a functional exercise simulating a severe El Nino storm. Operational Resiliency— Present the results of the business continuity plan to the Board of Directors identifying the most critical functions to keep OCSD operating in the event of a major event by December 31,2015.Update:IN PROGRESS-Business Impact Analysis(BIA)sessions were completed for all divisions.The summary was presented to the EMT in December 2015 and the list of the most critical activities is being consolidated into a list of business continuity plans that will be developed. The Information Technology division has procured the offsite Disaster Recovery site and has locally installed and tested the solution.The solution will be installed at the Disaster Recovery site by July 2016. A presentation updating the Board on the status of the business continuity plans will be made in 2016. S. Operational Optimization—Evaluate and optimize operations at OCSD to increase efficiency. • Energy Efficiency—Evaluate the energy savings opportunities identified by The Energy Network (TEN). Present findings and implementation recommendations to the Board of Directors by March 2016. Update: COMPLETE-In August 2014,OCSD entered into an agreement with The Energy Network (TEN)to explore energy savings opportunities at OCSD facilities. The audit findings were very positive in terms of current energy efficiency efforts. The following points were specifically noted:OCSD Engineering Standards incorporate best available technology; OCSD Facilities are continuously monitored and optimized;there are potential opportunities to improve energy efficiency by replacing existing lights with LED technology. Staff presented the findings and recommendations to the Operations Committee in March 2016. As a follow-up to this effort,the engineering department will lead a planning study to determine the appropriate lighting implementation plan. Shared Services—Continue to explore the six areas identified as potential opportunities where shared services can improve performance and reduce costs for OCSD rate payers by consolidating functions while also monitoring other opportunities regionally and statewide. Implement at least one shared service contract by June 30,2016.Update:COMPLETE-Orange County Water District has joined in OCSD's elevator maintenance contract and will commence services this month. OCWD has also expressed a strong interest in sharing traffic control services with OCSD to take advantage of economies of scale. Our respective purchasing staffs are discussing the feasibility of pursuing a cooperative purchase agreement Page 5 of 6 for traffic control.Additional areas of interest include chemicals, Landscaping and Fire Extinguisher Inspections. • Odor Control Master Plan—Develop a recommendation on odor treatment technologies and levels of service goals for both plant facilities and complete Odor Control Master Plan by June 30, 2016. Update: IN PROGRESS - Phase 1 of 2 for the Odor Control Master Plan has been completed.The current project timeline has a scheduled completion date of December 2016. • OCSD Headquarters Building—Advertise request for proposal to retain a consultant to design the replacement of the Headquarters Complex Project P1-128 by January 31, 2016. Update: COMPLETE-The RFP was advertised ahead of schedule. Page 6 of 6 STEERING COMMITTEE Meeting Dare TOBd.OfDir. 07/27/16 07/27/16 AGENDA REPORT Item Item Number 3 19 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: James E. Colston, Director of Environmental Services SUBJECT: 2015 INTERNAL SAWPA PRETREATMENT PROGRAM AUDIT REPORT GENERAL MANAGER'S RECOMMENDATION Receive and file the 2015 Internal SAWPA Pretreatment Program Audit Report. BACKGROUND Since the Orange County Sanitation District (Sanitation District) Board of Directors received and filed the final Santa Ana Watershed Project Authority (SAWPA) Remedial Plan Report in March 2014, the Sanitation District has worked with SAWPA to address the remaining SAWPA Remedial Plan (SRP) Punch List categories, and to re-establish the SAWPA Pretreatment Program. The Sanitation District sought a follow-up audit of the SAWPA Pretreatment Program to verify SAWPA is fulfilling its obligations and requirements, and to assess what additional actions are required. In follow-up to the process, the Sanitation District initiated an audit of the revised SAWPA Pretreatment Program. EEC Environmental (EEC)audited the SAW PA's core Pretreatment Program: Permitting, Enforcement, Inspections, and Monitoring/Sampling. In general, the audit declared that significant improvements to the SAWPA Pretreatment Program had been made since the audit in 2012. Some deficiencies were identified in the areas of Permitting and Enforcement, but the overall risks to the Sanitation District had been reduced. The risk would remain curtailed as long as the Sanitation District and SAWPA continue to cooperate on the implementation of their Pretreatment Programs, and the Sanitation District continues periodic Pretreatment compliance audits and inspections. The report also contained two major recommendations: 1) implementing metrics to drive improvements and help focus staff and resources on the highest priorities, and 2)SAWPA addressing the deficiencies identified during the audit, revising template documents, and following established procedures. RELEVANT STANDARDS • Code of Federal Regulations, Title 40, Chapter I, Subchapter N, Part 403 • Meet discharge permit 24/7/365 • Meet volume and water quality needs to support GW RS System Page 1 of 3 PRIOR COMMITTEE/BOARD ACTIONS March 2014 -The Board received and filed the final SAWPA Remedial Plan Report. January 2013 - The Board approved the Final SAWPA Remedial Plan and directed staff to issue the final Remedial Plan to SAWPA to correct significant deficiencies in its Pretreatment Program. November 2012 - The Steering Committee received and filed the 2012 SAWPA Audit Report and directed staff to prepare a Remedial Plan for issuance to SAWPA. ADDITIONAL INFORMATION Since the Board of Directors received and filed the Final SAWPA Remedial Plan Report in March 2014, OCSD has worked with SAWPA to address the SRP Punch List items. The Punch List has three broad categories: 1. Establishment of Substantially Similar Pretreatment Programs 2. Revision of Pretreatment Program Control Documents (PPCD) 3. Data Management System SAWPA has had over one year to implement the SAWPA Pretreatment Program. SAWPA has worked with its member and contract agencies to conform to the SAWPA Pretreatment Program and to align the SAWPA PPCD to be substantially similar to the Sanitation District's Pretreatment Program and PPCD. SAWPA and the Sanitation District are meeting on a regular basis to work through specific issues and will continue to meet and discuss further alignment requirements, strategies, and timelines, butthe first two remaining Punch List categories will take some time to complete. Based on SAW PA's progress to date, the Sanitation District will continue to maintain direct oversight over SAWPA's Pretreatment Program for the foreseeable future, and will continue regular opportunities for the agencies to communicate, collaborate, and cooperate. The Sanitation District sought a follow-up audit of the SAWPA Pretreatment Program to verify SAWPA is fulfilling its obligations and requirements and to assess what additional actions are required. The Board subsequently directed staff to enter into a Professional Consultant Services Agreement with EEC for the audit. In accordance with the scope of work, EEC audited the SAWPA Pretreatment Program in regards to four areas: Permitting, Enforcement, Inspections, and Monitoring/Sampling. In general, the auditor was required to assess the following: 1. Does the SAWPA Pretreatment Program have the minimum required elements in regards to Permitting, Enforcement, Inspections, and Monitoring/Sampling? If "No," what specific elements need to be addressed? How should these deficiencies be corrected and by when? 2. What are the risks to the Sanitation District in allowing SAWPA to run the SAWPA Pretreatment Program as it is? What should the Sanitation District do now, and overtime, to mitigate or minimize its risks? Page 2 of 3 As agreed upon by the agencies, before the audit the Sanitation District shared with SAWPA the list of questions that the auditor was required to use, at a minimum. The project kicked off in mid-September 2015. In May 2016, EEC completed the work and submitted the draft 2015 Internal SAWPA Pretreatment Program Audit Report. EEC made a presentation to the Sanitation District on June 23, 2016, and the key findings are summarized below: 1. SAWPA possesses the minimum required elements in regards to Permitting, Enforcement, Inspections, and Monitoring/Sampling. 2. SAW PA's staff is proficient in industrial pretreatment and has developed adequate standard operating procedures and acquired the necessary tools for data management. 3. Deficiencies were identified in the areas of Permitting and Enforcement. 4. The risks to the Sanitation District for allowing SAWPA to run the SAWPA Pretreatment Program have been reduced as a result of the decision by SAWPA to create its own Pretreatment department and employing staff with technical and regulatory proficiency and capable of establishing good working relationships with the Sanitation District, as well as with the SAWPA Member and Contract Agencies. 5. The risks to the Sanitation District would remain curtailed as long as the cooperation between the Sanitation District and SAWPA continues, and with the Sanitation District fulfilling its role of the Control Authority conducting periodic Pretreatment compliance audits and inspections. The report also contained two major recommendations: 1. In the spirit of continuous improvement, SAWPA should consider developing and using metrics to drive improvements and help focus its staff and resources on the highest priorities. 2. SAWPA would bring considerable improvement to its pretreatment program by addressing all deficiencies identified during the audit, revising template documents, and following established procedures. The Sanitation District shared the draft audit report with SAWPA earlier this month, and SAWPA was given the opportunity to provide feedback, which SAWPA did. Based on the Sanitation District's and SAWPA's comments, the report was finalized. ATTACHMENT The following attachment(s) maybe viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • 20151ntemal SAWPA Pretreatment Program Audit Report Page 3 of 3 GEECFGWMffi ra Oce Tel: (714)667 2300 Far: (714)66Z2310 One City Boulevard West,Suite 1800 Orange,California 92868 ENVIRONMENTAL www.eecenvironmental.com 2015 Internal SAWPA Pretreatment Program Audit Report FINAL Date July 14,2016 Prepared for: Orange County Sanitation District 10844 Ellis Avenue Fountain Valley,California 92708 Prepared by: EEC Environmental One City Boulevard West,Suite 1800 Orange, California 92868 Mid-Atlantic Office-Tel:(410)263-22341 Far:(410)266-86601 200 Harry S.Truman Parkway,Suite 3301 Annapolis,MD 21401 Northam California Office-Tel:(510)39"971 1 Far:(510)867 2053 1 2100 Embarcadero,Suite 1041 Oakland,CA 94606 Southeast Office-Tel:(813)654-48801 Far:(813)653-300013108 Rolling Acres Race,Suite C I Vance,R 33596 2015 Internal SAWPA Pretreatment Program Audit Report TABLE OF CONTENTS ESEXECUTIVE SUMMARY.........................................................................................................................4 E5.1 Introduction ............................................................................................................................4 E5.2 Audit Scope.............................................................................................................................4 E5.3 Objective.................................................................................................................................4 ESAMethods..................................................................................................................................5 ES.5 Observations...........................................................................................................................5 ES.6 Recommendations..................................................................................................................6 1.0 INTRODUCTION................................................................................................................................7 1.1 Background .............................................................................................................................7 1.2 Audit Team..............................................................................................................................8 2.0 OBJECTIVE,SCOPE,AND METHODS.................................................................................................8 2.1 Objective.................................................................................................................................9 2.2 Scope.......................................................................................................................................9 2.2.1 Santa Ana Watershed Project Authority.............................................................................9 2.2.2 Member and Contract Agencies of the Santa Ana Watershed Project Authority............30 2.2.3 Industrial Users.................................................................................................................12 2.3 Methods................................................................................................................................12 2.3.1 OCSD Wastewater Discharge Regulations Ordinance No. OCSD-39.................................13 2.3.2 List of Questions Developed by OCSD..............................................................................13 2.3.3 1991 Memorandum of Understanding.............................................................................13 2.3.4 1996 Wastewater Treatment and Disposal Agreement...................................................13 3.0 OBSERVATIONS AND RECOMMENDATIONS..................................................................................14 3.1 Permitting..............................................................................................................................15 3.1.1 C. C. Graber Permit Review...............................................................................................15 3.1.2 Inland Empire Energy Center Permit Review....................................................................17 3.1.3 O. C. Vacuum Inc. Permit Review .....................................................................................19 3.1.4 Temescal Desalter Permit Review ....................................................................................21 3.1.5 Metal Container Corporation—Mira Loma Can Plant Permit Review..............................22 3.1.6 Western Municipal Water District Collection Station Permit Review..............................25 3.2 Enforcement..........................................................................................................................27 3.3 Inspection..............................................................................................................................34 3.4 Monitoring and Sampling......................................................................................................39 4.0 CONCLUSION..................................................................................................................................67 TABLES Table 3-1 Permitting Observations and Recommendations.............................................................57 Table 3-2 Enforcement Observations and Recommendations.........................................................62 Table 3-3 Inspection Observations and Recommendations.............................................................64 Table 3-4 Monitoring and Sampling Observations and Recommendations.....................................65 2 2015 Internal SAWPA Pretreatment Program Audit Report FIGURES Figure 1 Santa Ana River Watershed Location Map Figure 2 Inland Empire Brine Line and Connections Figure 3 Santa Ana Watershed Authority Project Member Agencies APPENDICES Appendix A OCSD Wastewater Discharge Regulations Ordinance No.OCSD-39 Appendix B 1991 Memorandum of Understanding Summary Appendix 1996 Wastewater Treatment and Disposal Agreement Summary Appendix D 2015 Internal Audit Scope of Work List of Questions with Answers Provided by SAWPA Appendix E 2015 Internal SAWPA Pretreatment Program Audit Communication Plan Appendix F 2015 Internal SAWPA Pretreatment Program Audit Source Materials 3 2015 Internal SAWPA Pretreatment Program Audit Report ES EXECUTIVE SUMMARY ESA Introduction The Orange County Sanitation District(OCSD) has retained EEC Environmental, Inc. (EEC)to conduct the 2015 internal audit of the Santa Ana Watershed Project Authority(SAWPA) Pretreatment Program with a focus on permitting,enforcement, inspection and monitoring/sampling. The first objective of the audit was to verify that the SAWPA Pretreatment Program has the minimum required elements in regard to permitting, enforcement, inspections, and monitoring/sampling. When the audit revealed deficiencies in any of these four areas, EEC presented to OCSD specific elements of the pretreatment program that need to be addressed as well as a pragmatic approach and a sensible scheduled by which they can be addressed. The second objective of the audit was to determine the risks to OCSD in allowing SAWPA to run the SAWPA Pretreatment Program in the current manner. Regardless of the outcome, and in the spirit of continuous improvement of the pretreatment program, EEC recommended measures that OCSD can implement immediately and over time to mitigate or minimize any risks associated with the SAWPA Pretreatment Program. ES.2 Audit Scope The audit consisted of an evaluation of SAWPA's compliance with pertinent requirements, responsibilities, and practices in regard to permitting, enforcement, inspections, and monitoring/Sampling and all other applicable and related regulations, including federal regulations(Title 40 of the Code of Federal Regulations [CFR],Section 403),OCSD ordinances, and contractual agreements between OCSD and SAWPA. For each focus of the pretreatment program,the scope of work included the following: • Permitting:SAWPA's permitting process and review of a sample of existing permits. • Enforcement:SAWPA's enforcement response plan and its implementation with a review of the latest cases of significant noncompliance. • Inspection:SAWPA's inspection program and practices with a review of sample reports. • Monitoring/Sampling:SAWPA's monitoring program,including self-monitoring. ES.3 Objective The objective of the audit was to answer two major questions: a. Does the SAWPA Pretreatment Program have the minimum required elements in regards to Permitting, Enforcement, Inspections,and Monitoring/sampling?If that's not the case,then EEC would determine what specific elements need to be addressed as well as the best approach to correct deficiencies including a timeline. b. What are the risks to OCSD in allowing SAWPA to run the SAWPA Pretreatment Program as it currently is?What should OCSD do now and over time to mitigate or minimize its risks? 4 2015 Internal SAWPA Pretreatment Program Audit Report After performing the first phases of field work and interviews, EEC prepared two successive progress reports that summarized observations, gaps, deficiencies and risks identified in the SAWPA Pretreatment Program until the time the progress reports were prepared. Based on those observations and additional observations to date, EEC has developed recommendations and presented corrective actions to address areas in which deficiencies are found. With the completion of the audit, all observations and recommendations have been compiled and are presented herein. Furthermore, EEC's recommended schedule for the implementation of the recommendations is also included herein. ES.4 Methods EEC's audit methodology consisted of the identification of gaps in the four key program elements; permitting, enforcement, inspection and monitoring/sampling and in the development of requirements and recommendations to address the gaps. EEC recommended specific program modifications to ensure consistent and long term compliance of the SAWPA Pretreatment Program with the Federal General Pretreatment Regulations and OCSD's agreements with SAWPA and to further align the SAWPA Pretreatment Program with OCSD's program. While adhering to the direction provided by OCSD and concentrating on the questions provided by OCSD, EEC performed the focused audit through surveys, interviews, file reviews and inspections. The audit included a review of SAWPA's and its member and contract agencies' records on the permitting, enforcement, inspection and monitoring/sampling activities of industrial users and other direct or indirect dischargers, including the liquid waste hauler collection stations. Records from member agencies; Eastern Municipal Water District (EMWD), Inland Empire Utilities Agency (IEUA), San Bernardino Valley Municipal Water District (SBVMWD) and Western Municipal Water District (WMWD) and Contract Agencies; Jurupa Community Services District (JCSD), Yucaipa Valley Water District (YVWD) and City of San Bernardino Municipal Water Department (CSBMWD) were reviewed. In addition,the EEC Audit Team interviewed members of WMWD and the JCSD. ES.S Observations Overall, through its evaluation of the four key elements of SAWPA's Pretreatment Program, EEC has determined that SAWPA possesses the minimum required elements in regards to Permitting, Enforcement, Inspections,and Monitoring/Sampling. SAWPA's staff is proficient in industrial pretreatment and has developed adequate standard operating procedures (SOPS) and acquired the necessary tools for data management. Nonetheless, deficiencies were identified in the areas of permitting and enforcement. SAWPA must address errors identified in the permits reviewed by the Audit Team, revise the permit template and check the other permits for identical or similar errors. As for SAWPA's Enforcement practices, the Audit Team encountered inconsistencies in the correspondence with permittees and instances where SAWPA did not follow the ERP in terms of required actions and timeliness of the response. s 2015 Internal SAWPA Pretreatment Program Audit Report The risks to OCSD for allowing SAWPA to run the SAWPA Pretreatment Program have been significantly reduced as a result of the decision by SAWPA to create its own pretreatment department and employing staff with technical and regulatory proficiency and capable of establishing good working relationships with OCSD as well as with Member and Contract Agencies. Furthermore, the risks to OCSD would remain curtailed as long as the cooperation between OCSD and SAWPA continues and with OCSD fulfilling its role of the Control Authority conducting periodic pretreatment compliance audits and inspections. Audits and inspections by OCSD are essential for ensuring that SAWPA's pretreatment program implementation is consistent with all applicable federal regulations and OCSD's requirements, is effective in providing the necessary protection to OCSD's treatment system, to the Groundwater Replenishment System and to OCSD's current sludge disposal practices and in allowing OCSD to maintain compliance with its NPDES permit. ES.6 Recommendations Overall, SAWPA is to be commended for greatly improving its pretreatment program. In the spirit of continuous improvement, SAWPA should consider developing and using metrics to drive improvements and help focus its staff and resources on the highest priorities. With SAWPA addressing all deficiencies and observations identified during the audit, and revising template documents and following established SOPS,SAWPA would bring considerable improvement to its pretreatment program. The time period allocated to addressing each observation and deficiency was estimated based on the auditors' experience and must be adhered to as much as possible. If for some extenuating circumstances, SAWPA finds that the assigned timeline is impossible to meet due to the current load on its staff, an alternative timeline, giving high priority to the identified deficiencies, should be discussed with OCSD. Lastly, EEC highly recommends that SAWPA develops performance metrics and has dedicated an entire section (Section 3.5) in the report hereinto Metrics and provided some suggestions to help SAWPA develop metrics for Permitting, Enforcement, Inspection and Monitoring/Sampling. In order to derive the most benefit from metrics, it is important to keep them simple. Employees need to understand the metric,how they can influence it and what is expected of them. 6 2015 Internal SAWPA Pretreatment Program Audit Report 1.0 INTRODUCTION The Santa Ana Watershed Project Authority (SAWPA) was formed in 1968 as a planning agency and was reformed in 1972 with a mission to plan and build facilities to protect the water quality of the Santa Ana River Watershed.SAWPA is a Joint Powers Authority,classified as a Special District(government agency) in which it carries out functions useful to its member agencies. The agreements formalizing the current agency were signed in 1974 and went into effect in 1975. SAWPA's program in water quality management is integrated with those of other local, state, and federal agencies. SAWPA's integrated program includes the Western Riverside County Regional Wastewater Reclamation Plant, the Stringfellow Site Treatment Plant, and the Inland Empire Brine Line (IEBL). This report addresses SAWPA's management of the IEBL program only and does not discuss any of SAWPA's other programs. The IEBL (also known as the Santa Ana Regional Interceptor or SARI) is intended to provide a cost- effective, sustainable means of disposal of non-reclaimable waste water for utilities and industry within the Santa Ana Watershed(Figure 1,Santa Ana River Watershed Location Map). The highest and best use of the IEBL is the removal of salts from the watershed to keep the salts from degrading water quality within the watershed, thereby allowing better use of groundwater resources and expanding the ability to reclaim water. The long-term goal of achieving salt balance within the region depends on the ability to remove salts from the watershed via groundwater desalters and the IEBL. Further use of desalters depends on an economical means of salt disposal and will ultimately depend on an economically viable regional IEBL. Wastewater is discharged into the IEBL either directly or indirectly. Direct-discharge industrial users are located close enough to the IEBL to construct a direct-connection and produce enough high total dissolved solids waste to economically justify the connection cost. Indirect-discharge industrial users are not located close enough to the IEBL to make a direct connection. Indirect users dispose of their liquid waste at one of the four IEBL liquid-waste-hauler (LWH) collection stations using a permitted commercial waste hauler. The volume of wastewater generated by indirect dischargers can vary from one or two truckloads per week to 100,000 gallons per day. Every discharger within the SAWPA service area is located less than 20 miles from an LWH collection station (Figure 2, Inland Empire Brine Line and Connections). The non-reclaimable waste water from utilities and industry within the Santa Ana Watershed is transported via the IEBL to treatment plants operated by the OCSD. After treatment by OCSD, the effluent is discharged to the Pacific Ocean. Pretreatment enforcement and reporting responsibilities between SAWPA and OCSD are delineated in OCSD's Wastewater Discharge Regulations Ordinance (Ordinance; Appendix A),the 1991 Memorandum of Understanding (1991 MOU Summary; Appendix B) and the 1996 Wastewater Treatment and Disposal Agreement(1996 Agreement Summary;Appendix C). 1.1 Background In accordance with the 1991 MOU, OCSD exercised its right to review SAWPA's pretreatment program. The purpose of the review is for OCSD to ensure that SAWPA and/or any other agency having discharge 7 2015 Internal SAWPA Pretreatment Program Audit Report rights to the IEBL system pursuant to the contract with SAWPA is adequately administering and diligently enforcing its pretreatment program in conformance with federal pretreatment regulations (Title 40 of the Code of Federal Regulations [CFR],Section 403) and OCSD requirements. In order to review SAWPA's pretreatment program, OCSD retained EEC to conduct the 2015 internal audit of the SAWPA Pretreatment Program with a focus on permitting, enforcement, inspection and monitoring/sampling. 1.2 Audit Team The EEC team comprised some of the same individuals involved in OCSD's previous auditing and remedial planning efforts for the SAWPA Pretreatment Program.John Shaffer, EEC's president,assumed the role of principal-in-charge on the project. John Shaffer is a wastewater chemist with more than 25 years of wastewater pretreatment experience. He is the founder of EEC and has been the principal-in- charge for all of EEC's pretreatment and source-control projects and a project manager for many of them. John Shaffer has fulfilled the contract administration and QA/QC (Quality Assurance/Quality Control) role in his capacity as the principal-in-charge on OCSD's SAWPA-related projects. Najib Saadeh, project manager and auditor on the 2012 SAWPA audit as well as a major contributor to the resulting SAWPA remedial plan, assumed the role of project manager and auditor on the 2015 audit. He has more than 20 years of experience in process and environmental engineering and more than 15 years of experience in project and program management. He was responsible for project execution, including project controls,timely achievement of milestones,and budget management. The team also included Dr. John Parnell, Ph.D. and Mr. Keith Silva hence forming one of the most experienced pretreatment consulting teams in the United States. Dr. Parnell served as the lead auditor on the project. He is the co-founder and former director of Pretreatment Solutions, Inc., a foremost pretreatment consultancy. Keith Silva served as the project technical lead. He is a US Environmental Protection Agency (EPA) veteran who, in his most recent capacity at the EPA Region 9, managed the pretreatment program in the EPA's San Francisco office. Keith Silva's work as the EPA pretreatment program manager consisted of training, advising, educating, collaborating, and conducting technical and regulatory research and analysis. Keith Silva's position resided in the Clean Water Act Compliance unit, which is the group that enforces the Clean Water Act. As a program manager, however, Keith Silva's job focused on assisting industries and municipalities to solve problems before EPA enforcement became necessary. Keith Silva has conducted public hearings before adversarial, confrontational audiences to accept comments and explain why controversial environmental requirements are necessary to protect a specific water resource. 2.0 OBJECTIVE,SCOPE,AND METHODS The audit objective, scope, and methods were established in agreement between the audit team and OCSD and communicated to SAWPA and its member agencies prior to and during the opening interviews. 8 2015 Internal SAWPA Pretreatment Program Audit Report The audit was initiated on November 4, 2015, with a pre-audit meeting with OCSD. The interviews with SAWPA were held during the week of November 9, 2015. After performing the first phase of field work and interviews, EEC prepared two progress reports that summarizes observations,gaps,deficiencies and risks identified in the SAWPA Pretreatment Program up until the time of progress report preparation. A second objective consisted of the development of recommendations for corrective actions for addressing areas in which deficiencies are found and a schedule for SAWPA to implement all recommendations. 2.1 Objective The overall objective of the audit was to answer two major questions: a. Does the SAWPA Pretreatment Program have the minimum required elements in regards to Permitting, Enforcement, Inspections,and Monitoring/Sampling?If that's not the case,then EEC would determine what specific elements need to be addressed as well as the best approach to correct deficiencies including a timeline. b. What are the risks to OCSD in allowing SAWPA to run the SAWPA Pretreatment Program as it is? What should OCSD do now and over time to mitigate or minimize its risks? In line with the overall audit objective,and after performing the field work and interviews, EEC prepared the Audit Report herein to present observations, gaps, deficiencies and risks identified in the four focus elements of the SAWPA Pretreatment Program. Based on the observations, EEC has developed recommendations and presented corrective actions to address areas in which deficiencies were identified. 2.2 Scope The audit consisted of an evaluation of SAWPA's compliance with pertinent requirements, responsibilities, and practices in regard to permitting, enforcement, inspections, and monitoring/Sampling and all other applicable and related regulations, including federal regulations(Title 40 of the Code of Federal Regulations [CFR],Section 403),OCSD ordinances, and contractual agreements between OCSD and SAWPA. For each of the focus pretreatment program,the scope of work included the following: • Permitting:SAWPA's permitting process and review of a sample of existing permits. • Enforcement:SAWPA's enforcement response plan and its implementation with a review of the latest cases of significant noncompliance. • Inspection:SAWPA's inspection program and practices with a review of sample reports. • Monitoring/Sampling:SAWPA's monitoring program,including self-monitoring. 2.2.1 Santa Ana Watershed Project Authority The audit team evaluated whether SAWPA, as an oversight agency, developed and implemented sufficient measures to ensure that each of its member and contract agencies and all others that discharge to the IEBL are complying with the terms and conditions of all applicable agreements and regulations, including OCSD ordinances and federal pretreatment regulations(40 CFR403). 9 2015 Internal SAWPA Pretreatment Program Audit Report EEC focused on Pretreatment Program elements that reflect SAWPA's aptitude to carry out Permitting, Enforcement, Inspections, and Monitoring/Sampling. EEC also evaluated the risks to OCSD in allowing SAWPA to run the SAWPA Pretreatment Program in the same fashion as it is currently run. The opening audit interview with SAWPA was held on November 9, 2015, and subsequent meetings were held during the week except on Wednesday (Veterans Day). The following representatives from SAWPA were involved in the interviews: • Mr. Rich Haller,SAWPA, Executive Manager of Engineering and Operations • Mr. Lucas Gilbert, Manager of Permitting and Pretreatment • Mr. Michael Plasencia,Senior Pretreatment Program Specialist • Mr.Carlos Quintero,Project Manager The following individuals from the audit team were present: • Mr. Najib Saadeh,EEC,Senior Regulatory Specialist • Dr.John Parnell, EEC Lead Auditor • Mr. Keith Silva, EEC Technical Lead(via conference during the opening meeting with SAWPA) 2.2.2 Member and Contract Agencies of the Santa Ana Watershed ProjectAuthority SAWPA has entered into multijurisdictional pretreatment agreements with its four member agencies; namely, Inland Empire Utilities Agency(IEUA), Eastern Municipal Water District(EMWD), San Bernardino Valley Municipal Water District (SBVMWD), and Western Municipal Water District (WMWD)(Figure 3, SAWPA Member Agencies)and with its three contract agencies; Jurupa Community Services District (JCSD), Yucaipa Valley Water District (YVWD) and City of San Bernardino Municipal Water Department (CSBMWD). 2.2.2.1 Inland Empire Utilities Agencv IEUA was originally named the Chino Basin Municipal Water District, which was formed in 1950 to supply supplemental water to the Chino Basin. On July 1, 1998,the Chino Basin Municipal Water District officially became the Inland Empire Utilities Agency. IEUA co-permits 7 direct industrial users and 5 indirect industrial users. LWHs permitted by SAWPA transport wastewater from the indirect industrial users to the SAWPA-approved collection station at 16400 El Prado Road in Chino in IEUA's service area. IEUA staff was not directly audited or interviewed. 2.2.2.2 Eastern Municipal Water District EMWD was formed in 1950. EMWD co-permits one direct industrial users and two industrial users. LWHs permitted by SAWPA transport wastewater from the indirect industrial users to SAWPA's approved collection station located at 29541 Murrieta Road in Sun City in EMWD's service area. EMWD staff was not directly audited or interviewed. 10 2015 Internal SAWPA Pretreatment Program Audit Report 2.2.2.3 San Bernardino Valley Municipal Water District The SBVMWD was formed in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley.SBVMWD co-permits two direct industrial users. SBVMWD staff was not directly audited or interviewed. 2.2.2.4 Western Municipal Water District The WMWD was formed in 1954 and serves customers and wholesale agencies from Corona to Temecula. WMWD co-permits 8 direct industrial users and 8 indirect industrial users. LWHs transport wastewater from the indirect industrial users to SAWPA's approved and permitted collection station located at the City of Corona Water Reclamation Plan No. 1 at 2480 Railroad Street, in Corona. The interview with WMWD was held on November 12, 2015. The following representatives from WMWD and SAWPA were present: • Ms. Brenda S.Meyer,WMWD,Principal Engineer • Mr. Martyn Draper,WMWD,Source Control Program Manager • Mr.Benjamin Burgett,WMWD,Source Control Program Specialist 11 • Mr. Fred Kipfer,WMWD, Inspector • Mr. Lucas Gilbert,SAWPA,Manager of Permitting and Pretreatment • Mr. Michael Plasencia,SAWPA,Senior Pretreatment Program Specialist The following representatives from the audit team were present: • Mr. Najib Saadeh,EEC,Senior Regulatory Specialist • Dr.John Parnell, EEC, Lead Auditor 2.2.2.5 Jurupa Community Services District The JCSD was founded in 1956.The JCSD is a public agency known as a Special District.JCSD permits six direct industrial users that discharge into its sewer system prior to discharging into the IEBL. The JCSD sewer system connects industrial users in the JCSD area to the IEBL.The JCSD operates within WMWD's service area.JCSD co-permits 6 direct industrial users. The interview with JCSD was held on November 12, 2015. The following representatives from JCSD and SAWPA were present: • Ms. Marce Billings,JCSD,Source Control Supervisor • Mr. Lucas Gilbert,SAWPA,Manager of Permitting and Pretreatment • Mr. Michael Plasencia,SAWPA,Senior Pretreatment Program Specialist The following representatives from the audit team were present: • Mr. Najib Saadeh,EEC,Senior Regulatory Specialist • Dr.John Parnell, EEC, Lead Auditor tt 2015 Internal SAWPA Pretreatment Program Audit Report 2.2.2.6 Yucaipa Valley Water District The YVWD encompasses an active service area of approximately 40 square miles. It provides services to residents and businesses in the City of Calimesa, City of Calimesa, City of Yucaipa and of portions of Riverside County and San Bernardino County including some rural county areas outside of the City of Calimesa and the City of Yucaipa. Currently,YVWD does not permit or co-permit any dischargers. YVWD staff was not directly audited or interviewed. 2.2.2.7 City of San Bernardino Municipal Water Department The CSBMWD co-permits the 9 indirect industrial users to transport wastewater to SAWPA's approved and permitted collection station within the CSBMWD's water reclamation plant located at 399 Chandler Place in San Bernardino. However, the CSBMWD staff was interviewed and the site was visited by the Audit team on November 12,2015.The following representatives from CSBMWD and SAWPA were present: • Mr.James Lane,CSBMWD, Environmental Control Assistant • Mr. Lucas Gilbert,SAWPA,Manager of Permitting and Pretreatment • Mr. Michael Plasencia,SAWPA,Senior Pretreatment Program Specialist The following representatives from the audit team were present: • Mr. Najib Saadeh,EEC,Senior Regulatory Specialist • Dr.John Parnell, EEC, Lead Auditor 2.2.3 Industrial Users To date,the audit team has not inspected any of the industrial users that were permitted at the time of the audit with the exception of the WMWD LW H station. 2.3 Methods EEC's audit methodology consisted of the identification of gaps in the four key program elements; permitting, enforcement, inspection and monitoring/sampling and in the development of requirements and recommendations to address all identified gaps. EEC recommended specific program modifications to ensure consistent and long term compliance of the SAWPA Pretreatment Program with the Federal General Pretreatment Regulations and OCSD's agreements with SAWPA and to further align the SAWPA Pretreatment Program with OCSD's program. While adhering to direction provided by OCSD and concentrating on the questions provided by OCSD, EEC performed the focused audit through surveys, interviews, file reviews and inspections. The audit included a review of records maintained by SAWPA on activities related to the permitting, enforcement, inspection and monitoring/sampling of industrial users and other direct or indirect dischargers,including the liquid waste hauler collection stations. 12 2015 Internal SAWPA Pretreatment Program Audit Report Records from Member Agencies; (Eastern Municipal Water District, Inland Empire Utilities Agency, San Bernardino Valley Municipal Water District and Western Municipal Water District) and Contract Agencies; (Jurupa Community Services District,Yucaipa Valley Water District and City of San Bernardino Municipal Water Department)were reviewed. In addition,the EEC Audit Team interviewed members of WMWD and JCSD. In this first phase of the audit, as will be the case with future phases, the audit team considered all regulatory requirements and contractual obligations applicable to SAWPA and SAWPA's member and contract agencies. The regulatory requirements included the OCSD Wastewater Discharge Regulations (Ordinance No. OCSD-39), USEPA Pretreatment Regulations, the 1991 Memorandum of Understanding, and the 1996 Wastewater Treatment and Disposal Agreement. 2.3.1 OCSD Wastewater Discharge Regulations Ordinance No. OCSD-39 The OCSD ordinance sets uniform requirements for users of OCSD facilities and enables OCSD to comply with all applicable state and federal laws, including the Clean Water Act (33 United States Code [U.S.C.] Section 1251 et seq.)and the General Pretreatment Regulations(40 CFR 403;Appendix A). 2.3.2 List of Questions Developed by OCSD The audit team conducted audit activities with a focus on the list of questions prepared and provided by OCSD which defined the scope of the audit. SAWPA provided answers to the questions presented by OCSD (Questions and Answers; Appendix D). The questions and answers are presented in four sections, titled: Section I, Permitting; Section II, Enforcement; Section III, Inspection and Section IV, Monitoring/sampling. 2.3.3 1991 Memorandum of Understanding The 1991 MOU between OCSD and SAWPA allows SAWPA to continue to exercise jurisdiction and control over all discharges located within SAWPA's territorial boundaries in the Upper Basin that are tributary and discharge to OCSD's facilities.For example,SAWPA is responsible forthe following activities: • Issuing permits and enforcing violations • Monitoring wastewater flows and performing inspections at SAWPA's expense • Collecting noncompliance fines,fees,user charges,taxes,and other lawful charges as levied by SAWPA • Preparing and submitting appropriate quarterly and annual reports A summary table of all of SAWPA's responsibilities under the 1991 MOU is presented in Appendix B. 2.3.4 1996 Wastewater Treatment and Disposal Agreement The 1996 Agreement between OCSD and SAWPA became effective on July 24, 1996.The summary table includes all 32 parts of the 1996 Agreement; however, the following sections are most relevant to the audit: • Treatment and disposal rights • Capital payments 13 2015 Internal SAWPA Pretreatment Program Audit Report • Quality criteria • Quality violations • Protection of OCSD facilities • Limitation of discharge to the wastewater originating from SAWPA service area only A summary table of SAWPA's responsibilities under the 1996 Agreement is presented in Appendix C. 3.0 OBSERVATIONS AND RECOMMENDATIONS The seriousness of audit observations regarding deficiencies varies significantly. Positive observations that are considered BMPs were also captured. In order to provide consistency in reporting the audit observations,the significance of each observation was rated in one of the following categories: • V: Violations • N: Noncompliance • D: Deficiencies • E: Effectiveness issues • B: Best management practices Violations (V) refer to observations that are generally rated as violations of the federal pretreatment regulations.Occurrence of these problems on an ongoing basis raises concerns regarding SAWPA and/or the member agency's internal control environment over its pretreatment program. Noncompliance IN) refersto instances of non-fulfillment of SAWPA's contractual agreements with OCSD (1991 MOU and 1996 Agreement)and/or the terms of the permit. Instances of noncompliance raise the same concerns as violations. Deficiencies (D) refer to observations where their continuing occurrence can result in an overall high likelihood for a violation orfor an instance of noncompliance and should be reported as such. Effectiveness issues (E) refer to less serious matters that affect or can affect the pretreatment program negatively. Best management practices (B) are methods, techniques, or monitoring measures found to be the most effective and practical in achieving compliance while making the optimum use of an agency's resources. The audit team clearly distinguished between observations of violations, noncompliance, deficiencies, program effectiveness issues, and best management practices. Reportedly, some of these issues were being addressed by SAWPA and/or the member agencies. The status and description of the conveyed corrective actions were not included in this report because the required verification of such reports should be part of the scope and objective of verification and follow up audits of the corrective action plan. Observations and recommendations are presented in Tables 3.1 through 3.4 for each of the four program elements. Each observation is assigned a letter for each program element, a second letter to designate the agency associated with the observation, and a numeral to indicate the observation number. For example, for observationP.S.1, "P" refers to the permitting element of the pretreatment 14 2015 Internal SAWPA Pretreatment Program Audit Report program, 'Y refers to SAWPA, and "1" indicates the first listed observation and so on. Because SAWPA and SBVMWD start with the same letter, the letter "S" was assigned to SAWPA and the letter "B" to SBVMWD. If an observation is related to a matter related to SAWPA and another agency, such as co- permitting,both letters are assigned to the observation. 3.1 Permitting Six sets of permit files were reviewed. These included files initially developed by IEUA, EMWD and SAWPA and covered permits for CIUs with "no limit" categorical standards (Section 1), CIUs with concentration based categorical standards (Section 11), CIUs with production based categorical standards (Section V), SIUs with only local limits (Section IV), Liquid Waste Haulers (Section III) and Collection Stations (Section VI). It is therefore considered that a representative set of permits were reviewed for the purposes of this audit. 3.1.1 CC Graber Permit Review List of Files Reviewed for C.C.Graber. File Number File Name 1. Permit-Fact-Sheet-Template-20131204.dou 2. CIU-Permit-Template-SAWPA_FINALRev4-12182014.docx 3. IU Permitting Manual.pdf 4. newsource_dates.pdf 5. CFR-2002-title40-vol25-chapl.pdf (pages 90-107) 6. CC Graber Company-11005-2-Permit Expires 11-23-2017.pdf 7. CC Graber Company-11005-2- Fact-Sheet-2015-17.pdf 8. CC Graber Permit 10192015.docx 9. CC Graber Permit Checklist-Rev 1.3d 10192015.pdf 10. CC Graber Permit Checklist-Rev 1.3d 10192015_.pdf 11. CC Graber Permit Fact Sheet 30192015.docx 12. CC Graber Permit Submittal.msg 13. CC Graber Permit Submittal OCSD Response.msg 14. CC Graber Permit No. SSP012(2011)(revised 2-2012).pdf 15. 2015-09 SAWPA Quarterly 30-29-15.pdf 16. CIU SOP Permit Template SAWPA FINAL 300720132.docx 17. Permits SOP 070120155.doc Permit Review Timeline File 14 is a copy of the C.C. Graber Permit No SSP012 issued by Inland Empire Utilities Agency (IEUA) which had an effective date of September 24,2011 and an expiration date two years later on September 23, 2013. This permit was replaced by a SAWPA/IEUA Permit Number 11005-1 which expired on November 23, 2015 according to the quarterly report contained in File 15. A draft renewal permit and a permit fact sheet were submitted to SAWPA by IEUA at an unspecified date, presumably in early October 2015 and the SAWPA Manager of Permitting and Pretreatment reviewed the documents and submitted the draft permit (File 8) along with the permit fact sheet (File 11) and a blank copy of the permit checklist (File 9) to Mr. Tom Gaworski of OCSD in an e-mail message dated October 19, 2015. 15 2015 Internal SAWPA Pretreatment Program Audit Report These documents were then referred to Mr. Michael Zedek of OCSD who reviewed them and replied to the Manager of Permitting and Pretreatment in an e-mail dated November 3, 2015 attaching a signed concurrence checklist(File 10)containing comments on both the permit and the permit fact sheet. The final permit was issued on November 4, 2015 and was signed by SAWPA on the same date and by IEUA on November 5, 2015. The Permit I1005-2 (File 6) had an effective date of November 24, 2015 and an expiration date of November 23, 2017. The overall timeline from draft permit development to review and final signature was therefore approximately one month,which is acceptable to this audit for this procedure. Comments on the Permit and Fact Sheet Review Process 1. Both the permit and the permit fact sheet (Files 6 & 7) were developed following the required template files(Files 1 and 2)and the initial development by IEUA was acceptable to this audit. 2. Section A.3 of the final copy of the permit fact sheet (File 7, User Classification) correctly identified the categorical industrial user as being subject to 40CFR Part 407 Section F, paragraph 407.64(Pretreatment Standards for Existing Sources, PSES) but was deficient in failing to include the new source date of 3/21/1974 as detailed in File 4. The required pollutants were correctly identified as BODS and TSS and reference was made to the "no limitation' pretreatment standards for these parameters. 3. The permit fact sheet contained an excellent account of the olive canning procedures in Section A.3.a. 4. In Section 4 a,the permit fact sheet clearly described the process flows. 5. In the concurrence checklist (File10) the conditions 1 and 2 in the draft permit fact sheet (File 11) were corrected in the final fact sheet (File 7). Misspelled words indicated in the e-mail (File 13)were also corrected. 6. In the Final Permit(File 6)the following omissions and comments were noted that had not been included in the OCSD review. a. In Section I (Facility Description) the permit does not include any reference to the Categorical Citations as required in the Permit Template (File 2), Section I sentence 3. Also, no reference is made to the fact that the Permittee is subject to 40CFR Part 407 Part F, paragraph 407.64 and is subject to BOD5 and TSS pollutant analysis for categorical standards. It. In Section VI B (Specific Effluent Limitation Requirements) reference should have been included to the existence of the Categorical Standards even as they are "no limitation" standards. The Permit Template (File 2) requires a separate table 1B to be included for Categorical Standards. c. In Table 1 of the Final Permit the pollutant BOD is included with a local limit of 15,OOOlbs/day. The Categorical Standard refers to BODS. Does the local limit BOD refer to a BODS test?This test can also be performed as a BOD7 in some cases. Clarification should be added in the permit. d. The permit fact sheet (File 7) Section 13.1.1b, indicates that the Permittee's wastewater will be analyzed for alkalinity, dissolved calcium, orthophosphate and Total Calcium semi-annually by the IEUA. These parameters are not referred to in the final permit. e. There was no development of a Self-Monitoring Report Form for the categorical pollutant parameters of BOD, and TSS as an attachment to the permit. Thus the 16 2015 Internal SAWPA Pretreatment Program Audit Report compliance with these parameters could not be assessed even though they are "no limitation"standards. 7. OCSD conditions 3 and 4 of the concurrence checklist (File 10) were adequately revised in the final permit file(File 6). 8. The OCSD condition 5 concerning the expansion of the Hazardous Materials and Hazardous Waste Management Plan in Section IX HA., of the draft permit (File 8), was changed in the final permit (File 6) to include the words "and shall be submitted to the control authorities for approval". In the auditor's opinion, this revision did not completely satisfy the requirement of the OCSD comment. 9. The OCSD condition 6 was satisfactorily changed in the final permit(File 6). 10. In comment b of the e-mail message to SAWPA(File 13),the GI and G2 attachments to the draft permit file (File 8) were included at too small of a scale to be legible. No apparent effort was made by SAWPA to change the attachments in the final permit file(File 6). 11. Comments c and d in the e-mail message (File 13) were satisfactorily corrected in the final permit file(File 6). 12. An effectiveness criterion was identified in Section I (Facility Description)of the final permit(File 6).The facility was identified as"producing canned olives'. The facility actually grades and cures fresh olives prior to the canning process. It is the auditor's opinion that some of the excellent description contained in the fact sheet could have been included in the final permit at this location. The Permit Template (File 2) merely refers to a "facility description" for this section and the permit Template SOP(File 16)just says"producing canned olives' is sufficient. Recommendations 1. A step in the permitting process must be added to verify that OCSD's comments are addressed before it is issued. This will add extra time but it cannot be avoided. 2. SAWPA should relay all OCSD permit comments back to the permit developing agency to ensure that they include these changes in all future permits and fact sheets. 3. Permit SOP doc(File 17)should be modified to include recommendations listed above. 4. Permit SOP doc (File 17) states that the permit application must be received at least 90 days prior to the permit expiration date (Section 1). If an Agency representative prepares the draft permit and draft permit fact sheet (Section 6), the Permit SOP (File 17) should contain a requirement that the draft permit and draft permit fact sheet should be submitted to SAWPA at least x days(example 60 days) prior to the current permit expiration date. 5. Similar numbers of days prior to the current permit expiration date could also be inserted into the Permit SOP (File 17) for the transmission of the reviewed draft permit and draft fact sheet from the SAWPA Manager to OCSD and the comments from OCSD back to SAWPA. 3.1.2 Inland Empire Energy Center Permit Review List of Files Reviewed for Inland Empire Energy Center Permit Review. File Number File Name 1. Permit-Fact-Sheet-Template-20131204.docx 2. CIU-Permit-Template-SAWPA_FINALRev4-12182014.docx 3. IU Permitting Manual.pdf 4. newsource_dates.pdf 17 2015 Internal SAWPA Pretreatment Program Audit Report S. CFR-2002-title40-vol25-chapl.pdf (pages 643-652) 6. Draft IEEC CID Permit 10192015.docx 7. DRAFT Inland Empire Energy Center Permit Fact Sheet 10192015.docx B. Inland Empire Energy Center Permit Checklist-Rev 1.3d 10192015.pdf 9. Inland Empire Energy Center-D1036-2-Permit Expires 11-24-2017.pdf 10. Inland Empire Energy Center-D1036-2-Fact Sheet-2015-17.pdf 11. Inland Empire Energy Center Permit Checklist-Rev 1.3d 10192015_.pdf 12. Inland Empire Energy Center Draft Permit Submittal.msg 13. Inland Empire Energy Center Draft Permit Submittal OCSD Response.msg 14. 554 IEEC Oct 04 2010.pdf 15. 2015-09 SAWPA Quarterly 10-29-15.pdf 16. CIU SOP Permit Template SAWPA FINAL 100720132.docx 17. Permits SOP 070120155.doc Permit Review Timeline File 14 is a copy of the Inland Empire Energy Center (IEEC) Permit No 554 issued by the Eastern Municipal Water District (EMWD) which had an effective date of October 05, 2010 and an expiration date, three years later, on October 04, 2013. This permit was eventually replaced by a SAWPA/EMWD Permit Number D1036-1.1 which expired on November 04, 2015, according to the quarterly report contained in File 15. A draft renewal permit and a permit fact sheet (Files 6 & 7) was submitted to SAWPA by EMWD at an unknown date, presumably in early October 2015 and the SAWPA Manager of Permitting and Pretreatment reviewed the documents and submitted the draft permit (File 6) together with the draft permit fact sheet (File 7) and a blank copy of the permit checklist (File B) to Mr. Tom Gaworski of OCSD in an e-mail message dated October 19, 2015. These documents were then referred to Mr. Michael Zedek of OCSD who reviewed them and replied to the Manager of Permitting and Pretreatment in an e-mail dated November 2, 2015 attaching a signed concurrence checklist (File 11) containing comments on both the permit and the permit fact sheet. The final permit was issued on November 4, 2015 and was signed by SAWPA on the same date and by EMWD on a unknown subsequent date (no signature was on the final permit file (File 9). The Permit D1036-2 (File 9) had an effective date of November 25, 2015 and an expiration date of November 24, 2017. The overall timeline from draft permit development to review and final signature was therefore approximately one month,which is acceptable for this procedure. Comments on the Permit and Fact Sheet Review Process 1. Both the final permit and the final permit fact sheet (Files 9& 10)were developed following the required template files(Files 1 and 2)and the initial development was acceptable to this audit. 2. Section A.3 of the final copy of the permit fact sheet (File 10, User Classification) correctly identified the categorical industrial user as being subject to 40CFR Part 423 Steam Electric Power Generation, paragraph 423.17 (Pretreatment Standards for Existing Sources, PSES) but was deficient. It failed to include the new source date of 10/8/1974 as detailed in File 4. The required pollutants,however,were correctly identified. 18 2015 Internal SAWPA Pretreatment Program Audit Report 3. The permit fact sheet Section A.4.a, contained a minimal account of the facility and in Section A.4.c,the reference to Attachment C did not exist,as all attachments began with the letter G. 4. In Section A.4.a, the permit fact sheet indicates the process volumes but does not describe the flow patterns. S. In the OCSD concurrence checklist(File 11)the condition 1 in the draft permit fact sheet (File 7) was corrected in the final permit fact sheet(File 10). 6. In the draft permit (File 6) the OCSD conditions 2,5,6,7 and 8 in the concurrence checklist (File 11)were corrected in the final permit file(File 9). 7. In the draft permit (File 6)the OCSD condition 4 referred to permit Section VI.D., but this should have referred to Section VILD. This condition correctly requires the permit writer to change the section to require the 40CFR 423.17(d)(2) regulation that specifies that the permittee should certify using "engineering calculations'which demonstrate that the regulated pollutants are not detectable in the final discharge. The final permit(File 9) does not comply with this requirement and requires a certification statement (similar to a CFR433 Toxic Organic Management Plan, (TOMP)) without mentioning the need for"engineering calculations'. A certification statement is not an acceptable alternative for the Federal Requirements in a 423 permit 8. The section VII G, in the Permit Template file (File 2) should be modified to reflect this requirement for"engineering calculations" in 423 permits. 9. In the Final Permit(File 9)the following omissions and comments were noted: a. In Sections III and IV (Outtalls and Description of Monitoring Points) the photographs included in the permit fact sheet(File 10) should have been included in the final permit file(File 9)and referred to in these sections. b. In Section VI.B.7, the reference to a semiannual certification should be removed from the permit. (See note 7 above) c. Attachment C should be modified to comply with Federal Requirements. (See Note 7 above). d. The permit fact sheet (File 10) Section B.1.b, indicates that the Permittee's wastewater will be analyzed for alkalinity, dissolved calcium, orthophosphate and Total Calcium semi-annually by the EMWD. These parameters are not referred to in the final permit. Recommendations 1. A step in the permitting process must be added to verify that OCSD's comments are addressed before it is issued. This will add extra time but it cannot be avoided. 2. SAWPA should relay all OCSD permit comments back to the permit developing agency to ensure that they include these changes in all future permits and fact sheets. 3. Permit SOP doc(File 17)should be modified to include recommendations listed above. 3.1.3 0. C. Vacuum Inc. Permit Review List of Files Reviewed for O.C.Vacuum, Inc., Permit Review. File Number File Name 1. LWH-PERMIT-Template-Final-Draft-07312014.docx 2. EPA Hauled Waste Manual.pdf 3. DRAFT OC Vacuum Permit H1112-130062015.doa 4. OC Vacuum LWH Permit Review Process.docx 19 2015 Internal SAWPA Pretreatment Program Audit Report S. OC Vacuum Permit Checklist-Rev 1.3d 10072015.pdf 6. OC Vacuum, Inc,-H1112-1-Permit Expires 11-2-2017.pdf 7. OC Vacuum Draft Liquid Waste Hauler Permit Submittal.msg 8. RE:OC Vacuum Draft Liquid Waste Hauler Permit Submittal.msg 9. Vacuum Draft Liquid Waste Hauler Permit Submittal OCSD Response.msg 10. Permits SOP 070120155.doc Permit Review Timeline The SAWPA Manager of Permitting and Pretreatment submitted a draft permit file (File 3) for a new Liquid Waste Hauler(LWH), together with a permit review process (File 4) and a permit checklist (File 5 to Mr. Tom Gaworski of OCSD in an e-mail message (File 7) dated October 07, 2015. On the same day, these documents were then referred to Mr. Michael Zedek of OCSD who reviewed them and replied to the Manager of Permitting and Pretreatment in an e-mail (File 8) dated October 21, 2015. This e-mail contained review questions, issues and notes concerning the OC Vacuum draft permit file (File 3). The Manager of Permitting and Pretreatment responded to this e-mail on October 28, 2015 and attached a revised draft permit file and written answers to Mr. ZedeWs questions, issues and notes. Mr. Zedek signed the concurrence section of the checklist file(File 5)and approved the new LWH permit file (File 6) in an e-mail(File 9)dated November 03,2015. The final permit (File 6) was issued on November 3, 2015 and was signed by SAWPA on the same date. The Permit H1112-1 (File 6) had an effective date of November 03, 2015 and an expiration date of November 02,2017. The overall timeline from draft permit development to review and final signature was therefore approximately one month,which is acceptable to this audit for this procedure. Comments on the Permit Review Process 1. The draft permit file for the new Liquid Waste Hauler OC Vacuum, Inc.,was developed following the required template file(File 1)and the initial development was acceptable to this audit. 2. All questions, issues and notes developed by OCSD (see timeline section above) concerning the draft permit file (File 3) and included in the e-mail (File 8)to SAWPA,were corrected or updated in the Final Permit file (File 6) by SAWPA to the satisfaction of OCSD and this audit. 3. In the Final Permit file (File 6) the following recommendations were noted that had not been included in the OCSD review. a. On the last sentence of the first letter page just above the signature on the final permit file (File 6)there is a reference to an "attached map"with no reference as to where this map is located. The map on the last page of the permit is presumed to be the reference and the map should be labeled "Attachment C" and a proper reference to it should be included on the line in the signature page. b. On the permit signature pages of both the draft permit file (File 3) and the Final Permit file (File 6) the first line starts with the facility name, "D.C. Vacuum, Inc". In the LWH template file (File 1) in this location, the required "Facility Name" is followed by the term "(Permittee)" in brackets. The term "Permittee" is used in place of the facility name throughout the rest of the file and this reference was lacking in the final LWH permit file(File 6). 20 2015 Internal SAWPA Pretreatment Program Audit Report c. In File 6, Table 1 the column titled Monthly Average could be deleted as there are no limitation values in it. d. In Section VILD, a signed certification statement is required together with the various reporting requirements detailed in Section X.R of the permit. This could have been prepared as a separate certification form which could have been included as a separate attachment to the permit for the convenience of the permittee. 3.1.4 TemescalDesalter Permit Review List of Files Reviewed for TemescalDesalter Permit Review. File Number File Name 1. Permit-Fact-Sheet-Template-20131204.docx 2. SIU-Permit-Template-SAWPA-Revs-12182014.docx 3. IU Permitting Manual.pdf 4. SIU SOP Permit Template_FINAL 300720134.docx 5. ATT4.eml (Composite Record of Temescal Desalter a-mails between SAWPA and OCSD between May 6 and June 4,2015) 6. Temescal Desalter-D1012-2- Fact Sheet-2015-171.pdf 7. Temescal Desalter-D1012-2-Permit Expires 7-25-20172.pdf 8. Temescal Desalter Permit Checklist - Rev 1.3d 05062015 OCSD Concurrence3.pdf Permit Review Timeline The SAWPA Manager of Permitting and Pretreatment submitted a draft permit file (not reviewed) for the Temescal Desalter, together with a permit review process and a permit checklist to Mr. Tom Gaworski of OCSD in an e-mail message (File 5) dated May 06, 2015. Mr. Gaworski reviewed them and replied to the Manager of Permitting and Pretreatment in an e-mail (File 5) dated May 08,2015. This e- mail contained review questions, and revisions concerning the Temescal Desalter draft file. The Manager of Permitting and Pretreatment responded to this e-mail on June 03, 2015 and attached written answers to Mr. Gaworski s questions. Mr. Gaworski signed the concurrence section of the checklist file(File 8) and approved the new permit file(File 7) in an e-mail (File 5)dated June 04,2015. The Final Permit(File 7)was issued on June 08,2015 and was signed by SAWPA on the same date and by Western Municipal Water District (WMWD) on June 09, 2015. The Permit D1012-2 (File 7) had an effective date of July 26,2015 and an expiration date of July 25, 2017. The overall timeline from draft permit development to review and final signature was therefore approximately one month,which is acceptable to this audit for this procedure. Comments on the Permit and Fact Sheet Review Process 1. Both the permit and the permit fact sheet were developed following the required template files (Files 1 and 2)and the initial development was acceptable to this audit. 21 2015 Internal SAWPA Pretreatment Program Audit Report 2. Mr. Gaworski's comments and questions were adequately answered and/or incorporated into the final permit file(File 7)to the satisfaction of this audit. 3. In the Final Permit (File 7) the following comments are included that were not noted in the OCSD review. a. In Table 1 the first column pH units should be reported as being in Standard Units (SU's), not in mg/I as the column implies. This should also be included in the Self-Monitoring Report Form and the SIU Permit Template (File 2). This comment also generally refers to all relevant permit and permit template files. b. In Section VILC (Continuous Monitoring) the permittee is required to continuously monitor pH. Reporting requirements in Section IX A do not require the submission of any pH results except on the day the samples are collected. However, all of the flow measurement data is required. Surely the continuous pH data should also be required. c. In the Self-Monitoring Report Form (File 7)there is no indication that the darkened rows are not to be sampled. Surely these rows could be deleted from the report form. d. The permit fact sheet (File 6) Section 13.1.1a, indicates that the Permittee's wastewater will be analyzed for alkalinity, dissolved calcium, orthophosphate and Total Calcium semi-annually by the EMWD. These parameters are not referred to in the final permit. Recommendations 1. SIU permit template (File 1) should be amended to accommodate comments 3a, and 3d above. 3.1.5 Metal Container Corporation —Mira Loma Can Plant Permit Review List of Files Reviewed for Metal Container Corporation—Mira Loma Can Plant Permit Review File Number File Name 1. Permit-Fact-Sheet-Template-20131204.doa 2. CIU-Permit-Template-SAWPA_FINALRev4-12182014.docx 3. IU Permitting Manual.pdf 4. newsource_dates.pdf 5. CIU SOP Permit Template SAWPA FINAL 100720132.docx 6. Permits SOP 070120155.doc 7. ATTB.eml (Composite Record of Metal Container Corporation a-mails between SAWPA and OCSD between December 16,2014 and February 09, 2015) 8. ATTF.eml (Composite Record of Metal Container Corporation a-mails between SAWPA and OCSD on December 16, 2014) 9. Metal Container Corporation-D1056-2-Fact Sheet-2015-1713.pdf 10. Metal Container Corporation-D1056-2-Permit Expires 3-1-201714.pdf 11. MCC Permit Checklist- Rev 1.3d 12162014 OCSD Concurrence12.pdf 12. Part-465.pdf(40 CFR file) Permit Review Timeline The SAWPA Manager of Permitting and Pretreatment submitted a draft permit file (not reviewed) for the Metal Container Corporation (MCC), together with a permit fact sheet (not reviewed) and a permit 22 2015 Internal SAWPA Pretreatment Program Audit Report checklist (previously reviewed for other permits) to Mr. Tom Gaworski of OCSD in an e-mail message (File 8) dated December 16, 2014. In this same e-mail (File 8), the Manager of Permitting and Pretreatment noted that this was one of the files that had been identified in the Pretreatment Compliance Inspection (PCI) as requiring action by SAWPA to enact on the permit. Mr. Gaworski immediately replied (File 8) to the Manager of Permitting and Pretreatment asking if the two PCI requirements (quoted in the e-mail) were the only ones being reviewed in the new permit. The Manager of Permitting and Pretreatment replied (File 8) to Mr. Gaworski that the permit was being updated to the new template (File 2) in addition to the PCI requirements. Mr. Gaworski reviewed the MCC draft permit and permit fact sheet files and replied to the Manager of Permitting and Pretreatment in an e-mail (File 7) dated December 30, 2015. This e-mail contained review questions, and revisions concerning both the draft permit and permit fact sheet files. The Manager of Permitting and Pretreatment responded to this e-mail on January 29, 2015 and attached written answers to Mr. Gaworski's questions. Mr. Gaworski signed the concurrence section of the checklist file (File 8) and approved the new permit file (File 10) and permit fact sheet file (File 9) in an e-mail (File 11) dated February 09,2015. The final permit (File 10) was issued on February 11, 2015 and was signed jointly by SAWPA and Jurupa Community Services District (JCSD) on the same date.The Permit D1056-2(File 10) had an effective date of March 02,2015,and an expiration date of March 01, 2017. The overall timeline from draft permit development to review and final signature was therefore nearly two months, which is acceptable for this procedure considering that it occurred over the Christmas holidays and New Year's season. Comments on the Permit and Fact Sheet Review Process 1. Both the permit and the permit fact sheet were developed following the required template files (Files 1 and 2)and the initial development was acceptable to this audit. 2. Section A.3 of the final copy of the permit fact sheet (File 9, User Classification) correctly identified the categorical industrial user as being subject to 40CFR Part 465 (Coil Coating Point Source Category), Subpart D. The fact sheet file (File 9) is deficient in that the date that the company first began making cans is not included. In addition, the new source date of 11/17/1983 (see File 4) is also not included. The determination that the company is subject to Pretreatment Standards for New Sources(PSNS) is therefore not substantiated and these details should be added to the fact sheet since Pretreatment Standards for Existing Sources (PSES) are completely different from PSNS. 4. Mr. Gaworski s comments and questions (File 7) were answered by the Manager of Permitting and Pretreatment and/or incorporated into the final permitfile (File 10). S. In the Final Permit (File 10) the following items are noted because they were not fully resolved to the satisfaction of this audit. a. In Section IV (Description of Monitoring Point(s)) of the permit (File 10), monitoring point 001 is described as the sample port on the effluent pipe from the clarifier and a photograph of this spigot is included in the permit fact sheet file (File 9). Tables 1A and 16 in Section VI B, of the permit require most pollutant parameters to be sampled as 24 hour composites,with subsample collection every 15 minutes (a total of 96 subsamples) at monitoring point 001. Section VII A states that the permittee is responsible for sample collection and Section VII B states that the permittee has a refrigerated composite sampler and a monitoring manhole with Parshall flume and bubbler flow 23 2015 Internal SAWPA Pretreatment Program Audit Report meter. It is not clear how this equipment connected to the spigot monitoring point 001 for composite sample semiannual local limit and composite sample quarterly categorical standard monitoring. b. The permit fact sheet (File 9) states in Section B 1., (Monitoring Locations) that monitoring point 002 is a manhole which can be monitored for flow using a bubbler flow meter. However it is also stated that samples are collected at monitoring point 001 but the description of monitoring point 001 is not specifically described as a spigot as it is in the permit. The attachments show that monitoring point 001 is a spigot and 002 is a monitoring manhole reserved for billing purposes only. Some clarification should be made here. c. In complex sampling such as is required in this permit there should be a form attached to the permit requiring sampler details such as sampling settings, number of subsamples collected,volume of each subsample,total sample volume, start and end times, etc., all requiring initials and signatures of the person operating the sampler. This completed form should be part of the reporting requirement and included in Section IX A of the permit. Otherwise SAWPA has no way to verify that the sampling was performed correctly. d. Table 113 records the PSNS production-based standards in grams per million cans produced. The permitting manual (File 3 page 7-4) allows a permittee to record all the required data (if practical or possible) on the sampling date. Concerning Mr. Gaworski s comments on the conversion of data for this type of CIU to either equivalent mass or concentration limits using long term average daily production and flow rates, this audit strongly recommends that equivalent mass limits be developed for the next permit beginning in 2017. The main reason for this is the doubtful ability of the permittee to calculate the exact number of cans produced during the sampling period considering that the can making process is so complex. Exact details requiring how the permittee should calculate this number of cans should have been included in the permit rather than just the casual reference in permit Section VI B 5 and Section VIII B to provide the gallons/3000 can data. e. The person reporting the data probably has little knowledge of how to convert the sampling data to the production based categorical standards that are required. The permit should contain a formula combined with specific instructions to aid the permittee in converting the mg/L concentration of the individual pollutants in the sample to grams per million cans produced. The formula should include conversions of mg/L to g/L and the conversion of gallons to liters to obtain the correct evaluation of each production based categorical standard. Ideally this can be incorporated in a small Microsoft Excel file which could be made part of the permit content. The permittee can then determine compliance or non-compliance from the converted data. The column entitled Calculation (g/million cans) in the self-reporting form is not considered sufficient to achieve this conversion. f. In Table 3A, the first column pH units should be reported as being in Standard Units (SU's), not in mg/L as the column implies. This should also be included in the Self- Monitoring Report Form and the CIU Permit Template(File 2). Recommendations Permit and Permit Fact Sheet files(Files 9&10)need revision as itemized above. 24 2015 Internal SAWPA Pretreatment Program Audit Report 3.1.6 Western Municipal Water District Collection Station Permit Review List of Files Reviewed for Western Municipal Water District(WMWD)Collection Station,Permit Review File Number File Name 1 IU-Permit-Template-SAW PA_FI NALRev6-03062015.docx 2 WMWD Collection Station- D1087-2-Permit Expires 8-6-2017.pdf 3 WMWD Collection Station- D1087-2- Fact Sheet 2015-175.pdf 4 WMWD Collection Station Permit Checklist-Rev 1.3d 06112015 OCSD Concurrence7.pdf 5 Permits SOP 070120155.doc Permit Review Timeline The SAWPA Manager of Permitting and Pretreatment submitted a draft permit file (not reviewed) for the WMWD Collection Station, together with a permit review process (not reviewed) and a permit checklist(File 4)to Mr.Tom Gaworski of OCSD in an e-mail message(not reviewed)dated June 11, 2015. Mr.Gaworski reviewed the files and replied to the Manager of Permitting and Pretreatment in an e-mail (not reviewed) dated July 11, 2015. The check list file (File 4) contained reference to spelling errors in Section IX B of the draft permit file (not reviewed). The Manager of Permitting and Pretreatment corrected the spelling errors in the final permit file (File 2). Mr. Gaworski signed the concurrence section of the checklist file (File 4) and approved the new WMWD Collection Station file (File 2) on July 11,2015. The Final permit (File 2) was issued on July 15, 2015 and was signed by SAWPA on the same date. The Permit D1087-2 (File 2) had an effective date of August 07, 2015 and an expiration date of August 06, 2017. The overall timeline from draft permit development to review and final signature was therefore approximately one month,which is acceptable by this audit for this procedure. Comments on the Permit Review Process 1. The draft permit file for the WMWD Collection Station was developed following the required template file(File 1)and the initial development was acceptable to this audit. 2. Spelling errors highlighted by OCSD concerning the draft permit file (not reviewed) were corrected in the Final Permit file(File 2)by SAWPA to the satisfaction of OCSD and this audit. 3. In the Final Permit (File 2) the following recommendations were noted that had not been included in the OCSD review. a. In Section IX H (Facility Waste Management Plan) of the permit file (File 2) the introductory sentences state that the permittee is both required and not required to develop this plan. This error has arisen from the permit template file(Filet)which gives the permit writer the option to delete the incorrect statement which has been omitted here b. The template file (File 1) correctly lays out the requirements for various plans to either be required or not required by the permittee in Section IX H. The permit writer must make these decisions and delete the unnecessary parts. In the permit fact sheet file 25 2015 Internal SAWPA Pretreatment Program Audit Report (File 3) all plans 1 through 5 are not required. In the permit (File 2)the details of plans that are not required are still included in the permit thus increasing the length of the permit with unnecessary verbiage. This comment appears to be fairly universal to all reviewed permits. c. In Table 1 the second column pH units should be reported as being in Standard Units (SU's), not in mg/I as the column implies. This should also be included in the Self- Monitoring Report Form and the IU Permit Template(File 1). d. In the self-monitoring report form, the words "Applicable Limit" in columns 2 and 3 should be replaced with "Local Limit". Recommendations Permit file (Files 2) requires revision as itemized above when it is renewed. Permitting General Comments: 1. The timeline for the production of all permits was found to be approximately one month (except in holiday periods)which is acceptable for this audit. 2. The initial production of the permits by the different agencies was found to be compliant with the template files in the initial development process. 3. The process of OCSD review was examined and questions and comments made by the reviewers were found to be relevant and mostly comprehensive 4. Additional comments on the permits not included in the OCSD review are added here especially for the more complex permits(Section V). Some of these comments originate from the template files which should be modified to clarify the irregularities that are highlighted throughout this review. Permit files and permit fact sheet files can be modified mostly as they are renewed in the majority of cases. S. Many of the permits contain large amounts of detail that is not required for that particular permit. Permit writers tend to leave everything that is in the template file in the final permit file. Details of various plans (Section IX of the permit) are often left in when the plan is not required.Sub-notes to pollutant tables contain details of pollutants not required in the main table (e.g. TTO, pesticides etc). The darkened rows in pollutant tables for non-required pollutants should be deleted together with the darkened rows in the self-monitoring report tables. 6. Attachments showing monitoring points should be included in the permit files so that the permittee can see where to take the sample. The permittee does not have a copy of the permit fact sheet file where this information is kept. 7. It would be beneficial to see more detailed information in the facility and flow descriptions in the permit file,even if it is copied from the fact sheet. 8. A form detailing the sampling procedure should be attached to the permit file including data on time and place of sample, auto sampler settings, number of subsamples taken etc. with spaces for initials of the sampler. The lab sampling sheets do not always contain this information as much as would be liked and in a judicial review,these details may cause a sample to become invalidated. 26 2015 Internal SAWPA Pretreatment Program Audit Report 3.2 Enforcement In this section,EEC followed the sequence of questions and evaluated SAW PA's answers through as review of the sequence of events and all pertinent documents. 1. How well does enforcement follow what the SAWPA Enforcement Response Plan specifies? Evaluate and assess the enforcement efforts and provide relevant examples and documentation for three of the following permits:Chino I Desalter, Repet, Rayne Water,WRCRWA,or SunOpta. SA WPA's General Response All enforcement action(s) follows the SAWPA Enforcement Response Plan. The goal of the SAWPA Pretreatment Program is to ensure all enforcement action(s) are reasonable, consistent, and timely. Please see the examples below. 1. Chino Basin Desalter Authority(CDA)Chino I(Permit No. D1081-1) SAWPA's Response On August 5, 2014, The Chino Desalter Authority 1 (CDAI) discovered an acid leak into the ground, adjacent to the facility's effluent wastewater lateral. The acid damaged the wastewater lateral seal, and acid was discharged to the Brine Line. SAWPA issued to CDA 1 a Cease and Desist Order (CDO) and required corrective action(s) to prevent future pH slug discharge violations to the Brine Line. CDA I completed all items required to preventfuture pH slug discharges to the Brine Line. SAWPA to continue to perform unannounced inspections at CDA I to insure the corrective actions completed are adhered to. Please refer to SA WPA's Enforcement Tracking Log for detailed information. Audit response Following its review of the recorded documentation on the Chino Desalter discharge violation, the EEC Team's comments are as follows: CDA discovered an effluent discharge below the 6.0 required pH level during rounds on August 5, 2014 at approximately 07:30 hours. CDA immediately informed the Inland Empire Utilities Agency(IEUA)who immediately informed SAWPA of the discovery (telephone call at approximately 08:10 hours. SAWPA became the main enforcement agency here as the discharge was classified as a Major Violation under Section 4.0 B 2 b of SAWPA's ERP. SAWPA immediately instructed IEUA to require CDA to shut down the effluent discharge line and this was done at approximately 08:15 to 08:30 hours on the same day. SAWPA also informed IEUA that SAWPA would immediately dispatch a SAWPA inspector to the CDA site. Presumably all communication was made by telephone but no written telephone logs concerning these actions were available for review. This audit finds that this response was an excellent example of how this type of problem must be handled in accordance with the ERP and all parties concerned are to be congratulated for the speedy reactions. On August 5, 2014, at approximately 08:55 hours,the SAWPA inspector met with IEUA and CDA staff on site and a complete inspection was performed. The inspection report confirmed that a residual effluent discharge with a pH of less than 6.0 S U was still being discharged even though the discharge valves were closed. The effluent flow finally ceased at approximately 10:00 hours and an examination of the pH 27 2015 Internal SAWPA Pretreatment Program Audit Report meter record showed that the noncompliant discharge had started at approximately 16:58 hours on the previous day(August 4, 2014). At this time,the reason for the noncompliant discharge was determined to be probably due to an underground leak of 94% sulfuric acid into the ground around the Brine Line lateral as excessive drainage of the acid was noted from expected and observed levels in the acid tank. CDA informed the SAWPA inspector that a written report would be sent to SAWPA before the requested date of August 10,2014. This audit finds that the initial inspection report was concise and very detailed in its explanation of the nature of the noncompliant effluent discharge and fully complied with the requirements of the ERP. The SAWPA inspector returned to the site on the following day (August 6, 2014) and was informed by the CDA staff member that excavation of the site around the acid tank had revealed that acid had damaged a seal in the Brine Line and gained entry directly to the effluent discharge lateral. CDA would be responsible for all repairs to the lateral and had shut down the auto feed system for the acid tank and were using other temporary methods to supply acid to the reverse osmosis unit. Once again this audit finds that the report was concise and very detailed and complied with ERP requirements. CDA submitted a written report dated August 8, 2014 thus meeting the SAWPA requirement deadline of August 10,2014. The copy of the report seen by this audit and subsequently submitted to OCSD showed that it was received and stamped by SAWPA on August 14, 2014. A six day lag between the report date and the received date appears to be excessive when hand delivery and courier service should be available. The report outlined the events leading up to the leak but failed to mention that the seals in the lateral were probably the source of entry of the acid as described to the inspector three days before this report was written. SAWPA issued a Cease and Desist (C&D) Order dated August 21, 2014 by both electronic and LISPS mail to CDA. According to the ERP,the issuance of a C&D order for an unspecified violation should ideally be done within a 10 day period from the date of the noncompliance.This order was executed 16 days after the event. However, the ERP does state (page 21) that the 10 day period is for guidance only and "the actual response time, depending on extenuating circumstances, may be shorter or longer". As the official report was not received until August 14, 2014, this probably could be deemed to be an extenuating circumstance. This audit finds that the ERP was followed by SAWPA regarding the enforcement response but care must be taken to stay within ERP time lines if possible. The CDA complied with all requirements of the C&D Order and the Order was subsequently closed on January 20, 2015. 2. Repet. Inc. (Permit No. D1069-2) SAWPA's response Repet unable to remain in consistent compliance with their Brine Line Discharge Permit and SAWPA Ordinance No. 7 As of July 8,2014,SAWPA began escalated enforcement action against Repet. On July 10, 2014, SAWPA issues a CDO to Repet. Repet is required to attend a hearing and immediately comply with all permit and ordinance requirements. Please refer to SAWPA's Enforcement Tracking Log for detailed information. Audit response 28 2015 Internal SAWPA Pretreatment Program Audit Report Multiple instances of noncompliance from March through June 2014 were recorded at Repet, Inc. Responses to repeated Notices of Violation and Orders for Corrective Action of various Oil and Grease limits and removal of pretreatment equipment without prior notice, clearly demonstrated that the company was not cooperating with the regulatory agencies. This activity justifies the issuance of a Compliance Order as directed by the ERP but this action was not initiated. On July 8, 2014, the discovery by IEUA inspectors of deliberate tampering with sampling equipment in order to falsify required regulatory information constituted a very serious, major violation according to Section 4.0 B 2 g of the ERP which states "Tampering with or purposely rendering inaccurate any monitoring device, method or record required to be maintained pursuant to the Wastewater Discharge Ordinance". In this case SAWPA became the dominant agency involved in the enforcement procedure. In the opinion of this audit, this type of activity should immediately initiate the issuance of a Cease and Desist Order, a Show Cause Hearing and passible consideration of a Wastewater Discharge Permit Revocation Order (ERP Section 5.0 B 10, 11 and 12). SAWPA escalated their enforcement activity and, on July 10, 2014, issued a Cease and Desist Order, a Compliance Order and an Administrative Complaint Hearing Notice to Repet. This audit agrees that SAWPA's actions were correct and in line with the requirements of the ERP. Following the hearing on August 11, 2014, SAWPA issued a Civil Penalty Order and Compliance Order to Repet on August 14, 2014 assessing penalties for the tampering activities described on July 8, 2014. This action is supported by this audit as being in compliance with the ERP requirements. On October 17, 2014, SAWPA issued a second Cease and Desist Order to Repet for failing to perform actions required by the first C&D Order issued on August 14, 2014. Repet continued to discharge noncompliant wastewater and failed to pay penalties and submit required reports in a timely manner. This order informed Repet that they should cease all discharge to the Brine Line and initiate batch storage of wastewater from October 17, 2014 onwards with the following requirements. Repet was required to install batch tanks for storage of all wastewater on site. All batch tanks were required to be tested for compliance with all permit parameters and results were to be posted to IEUA and SAWPA seeking permission to discharge to the Brine Line. Any tanks failing to meet compliance would not be allowed to discharge until suitable alternative treatment processes had been approved by the regulatory agencies. These specifications were clearly set out in SAWPA's second C&D Order and would be in line with ERP requirements. It is noted however that the instructions for failure to comply with a C&D Order on page 29 of the ERP do not include the issuance of a second C&D Order but refer to the initiation of Permit Suspension and possible Termination activities. The alternative arrangement to install batch tanks and take full control of discharges to the Brine Line showed that SAWPA was willing to work with Repet to avoid permit revocation even though the company had not shown continuous good faith efforts to correct their noncompliance problems (see Section 5.0 C 6 of the ERP) These activities are commended by this audit. Between August and October 2014 notices of extensive management changes and the establishment of several new positions in relation to its wastewater pretreatment system were sent to IEUA and SAWPA by Repet as would be required by permit conditions. On November 12, 2014, SAWPA issued a third C&D Order and Compliance Order to Repet informing the company in the introductory letter that they were suspending the discharge permit as from 4:30 pm on 29 2015 Internal SAWPA Pretreatment Program Audit Report November 12, 2014 and assessing a $5,000 penalty for violating the second C&D Order. Repet discharged from a batch tank without notifying SAWPA beforehand and without obtaining the required laboratory analyses. Furthermore SAWPA required Repet to attend a compliance meeting at SAWPA on November 26, 2014. The body of the C&D Order did not mention suspending the permit but required the company to cease and desist all discharge to the Brine Line immediately and comply with the batch tank discharge conditions included in the second C&D Order. The ERP does not mention the issuance of a third C&D Order or the suspension of a permit but it does confirm that a C&D Order can require the suspension of a discharge. No mention of possible Permit Revocation was mentioned in SAWPA's C&D document which should have been included at this time. In its monthly report dated December 5, 2014, Repet states that it had installed 14 batch tanks at the facility and will comply with all of the batch tank discharge requirements laid out in the second C&D Order. The company also refers to the removal of a physical plug in the company's discharge line by IEUA on December 1,2014. No other documentation of this activity has been seen by this audit. On January 18, 2015, SAWPA issued a Notice of Violation (NOV) Order to Repet for on-site analysis of sulfide concentrations in previously approved wastewater discharge. The NOV was not specific as to the location that the on-site samples but required Repet to investigate the cause of the violations and report back to SAWPA before January 27, 2015. This audit believes that the NOV was deficient as it failed to include precise details of the locations of the on-site sulfide analyses. Repet responded to the NOV with a long letter dated January 27, 2015, in which they contested the on-site sulfide analyses by the regulatory agency and included detailed explanations of their batch tank analytical procedures. No further documentation on this NOV was submitted to this audit and it appears this NOV has never been closed. On February 6, 2015 Repet sent a letter to SAWPA in which several references to activities not covered by the documentation supplied to this audit were referred to. First, Repet refers to a December 22, 2014 order modification approving the use of the CWT GEM wastewater treatment system. This document was not made available to this audit. Secondly, Repet states that the company received permission to resume direct discharge of wastewater to the Brine Line from SAWPA on February 2, 2015 and modifications to the pipe connections and dismantling of the tank system were now in progress. Once again, this audit has not seen this document and cannot assess the justification for SAWPA's closure of the requirements of the C&D Orders. On March 2, 2015, SAWPA officially closed the November 26, 2014 C&D Order stating that Repet had complied with all requirements of the order. 3. SunOpta Food Solutions(Permit No. 11066-1.1) S WAPA's response On January 12, 2015, SunOpta Food Solutions - San Bernardino (SunOpta) exceeded the Copper concentration limit of 3.0 mg/L. To correct the continued Copper violations, SunOpta installed a new water softener system, plastic storage tank, and chelating resin filters to remove Copper from wastewater. SunOpta is required to collect additional Copper samples to demonstrate consistent compliance with the Copper concentration limit and to be removed from SNC status. SBMWD to conduct unannounced site inspections and collect grab samples from SunOpta's storage tank and from SunOpta's liquid waste hauler. Please refer to SAWPA's Enforcement Tracking Log for detailed information. 30 2015 Internal SAWPA Pretreatment Program Audit Report Audit response SunOptais a fruit and citrus juice manufacturer classified as an Industrial User(IU) which discharges high brine content wastewater from its water softening equipment to an 800 gallon brine waste storage tank. The brine wastewater from the tank is hauled to the Brine Line Collection Station by a SAWPA permitted Liquid Waste Hauler. The City of San Bernardino Municipal Water Department (SBMWD) is the agency concerned with the regulation of this company. SAWPA's wastewater discharge permit I1080 requires Sun Opta to sample the discharge from the tank for SAWPA's local limits once per year in January. On January 12, 2015 SunOpta's brine wastewater sample indicated a copper concentration of 3.8mg/I which exceeds the permit limit of 3.Omg/l. On January 29, 2015, SBMWD issued a Written Warning Notice for this violation and required re-sampling. The ERP (Section 4.0 B 1 and Table 3) categorizes this as a minor violation of discharge limitations warranting a Written Warning or NOV,with compliance follow-up,so SMBWD did in fact follow the ERP. SunOpta's brine wastewater was re-sampled on March 19, 2015 and the copper sample result was 9.2mg/L which again exceeded the permit limit of 3.Omg/L. This re-sample was collected over 49 days after the Written Warning which appears to be excessively long unless modifications were made to the pretreatment equipment at SunOpta. On March 31, 2015 SBMWD issued a Notice of Violation (NOV) requiring SunOpta to submit a written response by April 15, 2015 and complete a Monitoring/Production Information Order (MPIO) requiring copper grab samples to be collected on fourteen (14) consecutive production days and results to be submitted by May 15, 2015. The action by SBMWD is in line with the requirements of Table 3 of the ERP for 2 or more violations within a six month period. Neither one of SunOpta's required documents(dated April 15,2015, and May 15, 2015)were submitted to this audit. If these documents were never delivered,extra enforcement procedures should have been initiated. On August 3, 2015 SBMWD issued a second NOV indicating that the fourteen (14) sampling results for copper required by the MPIO had all exceeded the limit even though the wastewater had not been discharged to the Brine Line. The NOV was based on the evidence that SBMWD had evaluated the sample data from wastewater discharged to the IEBL for the two (2) six month evaluation periods of October 1, 2014, to March 31, 2015, and January 2015 to June 30, 2015, which indicated that seventy five (75) percent of the copper samples exceeded the copper limit. The NOV stated that SunOpta was in Significant Noncompliance (SNC) (Chronic and Technical Review Criteria) as identified by 40 CFR 403.8(f)(2)(viii). The NOV also stated that a June 25, 2015, compliance inspection had revealed that a new resin filter had been installed by SunOpta and that no copper violations had been detected since this installation. The NOV also required SunOpta to perform a second MPIO by sampling the next six batches of brine waste delivered to the IEBL and to demonstrate to SBMWD that the copper concentrations were in compliance prior to discharging the brine wastewater to the IEBL via the Liquid Waste Hauler. Awritten response was required from SunOpta before August 17, 2015. The NOV was reviewed by SAWPA prior to being delivered and several changes to the content were made, especially with reference to the SNC wording. The NOV was issued with one signature from SBMWD. According to Section 4.0 B 2 a, of the ERP,the determination of SNC is a Major violation. (The reference to the definition of SNC in the ERP is also incorrect in this instance.) SAWPA was involved with the editing of the document but should have co-signed the NOV regarding the major violation. Overall, 31 2015 Internal SAWPA Pretreatment Program Audit Report this audit considers that this NOV contains too much unrelated information and should have been divided into two documents, one dealing with the MPIO requirements and signed by SBMWD alone and the other dealing with the SNC determination and signed by both SAWPA and SBMWD. SunOpta responded on August 15, 2015 and described the copper problem in detail and confirmed that the installation of the new Purolite 5930 filter in the water softening equipment had solved the copper problem. They further informed SBMWD that they would fully comply with the requirements of the second MPIO. No documentation of the results of the required six sampling events and no final documentation of the satisfaction or completion of the enforcement orders were available for review. 4 WRCRWA SRPS No Specific response from SAWPA Audit response On September 10.2014, an NOV was issued by SAWPA to Western Riverside County Regional Wastewater Authority (WRCRWA) South Regional Pump Station (SRPS) for pump failures resulting in a slug discharge to the Brine Line.SAWPA had previously been contacted concerning the pump failures on August 8, 2014, and detailed written reports had been submitted on August 18, 2014. The NOV was issued thirty three (33) days after the event. The NOV was rescinded and a revised NOV was issued on September 24,2014. Initial contact by WRCRWA and the August 18 report satisfied the requirements of the NOV and only staff training was required. On September 29, 2014, WRCRWA submitted a reply to the NOV detailing that training had been completed and all requirements of the NOV had been met. Table 3 of the ERP requires Slug Load Discharges for the first time with no harm to the Brine Line to be responded to with a Cease and Desist Order to be issued within 10 days for unspecified violations. SAWPA did not follow the ERP in this case by both the action required and the timeliness of the action. 2. Is the appropriate agency handling enforcement? (i.e.,SAWPA—major enforcement and Member And Contract Agencies—minor enforcement) Evaluate and assess whether the appropriate agency handles enforcement and cite relevant examples. SAWPA response SA WPA reviews all enforcement action(s) whether Member or Contract Agency related. All enforcement above a Notice of Violation is the responsibility of SAWPA. Please refer to SA WPA's Enforcement Tracking Log for detailed information and relevant examples. Audit response SAWPA reviewed the SunOpta Notice of Violation (NOV) issued by SBMWD on August 3, 2015, and was aware that the enforcement escalated from a minor to a major violation concerning SNC. (See ERP definition of major violation Section 4.0 B 2 a). As indicated in the description concerning SunOpta above, this audit considers that the NOV should have been divided into two parts. The MPIO section should have been signed by SBMWD alone and the SNC section signed by both SAWPA and SBMWD. 32 2015 Internal SAWPA Pretreatment Program Audit Report 3. What enforcement actions has SAWPA initiated over the last year,and what were the immediate and long term results? Provide a tabulation of all enforcement activities since January 2014, itemize who was the lead in each instance,and evaluate and assess the adequacy of the enforcement efforts and site relevant examples. SAWPA's response Please refer to SAWPA's Enforcement Tracking Log for detailed information and relevant examples. Audit response The EEC audit team reviewed SAWPA's Enforcement Tracking Log and has noted the following: Inland Bioenergy, -LC, was issued a Cease and Desist (C&D) Order, a Compliance Order and Administrative Complaint by SAWPA on December 22, 2014, for accepting unapproved wastewater loads from Repet. Inland Bioenergy hired a consultant to explain the acceptance of the unapproved waste and replied to the C&D Order on January 20, 2015. SAWPA responded on January 27, 2015 and a formal compliance meeting was set for February 5, 2015. As a result of the meeting, SAWPA issued a new C&D Order on February 6, 2015, and required, as conditions, that Inland Bioenergy update its procedures for accepting new wastewater loads. The consultant responded on February 27, 2015, and included the required procedures update. On March 12, 2015,SAWPA closed the C&D Order. This audit considers the above procedures as compliant with the requirements of the ERP. In addition the enforcement actions were timely and the complete procedure was successfully completed within a three month period. In the Chino Desalter enforcement action analyzed in Question 1 above, the lead agencies were SAWPA and IEUA.The timeliness of the enforcement action was adequate over the five (5) month period that it took to repair and test the new discharge lines. The enforcement action against Repet, described in Question 1 above was performed by SAWPA and IEUA.Actions were delayed because Repet was not fully cooperating with the regulatory agencies. After the change of management at Repet, the cooperation improved and the regulatory agencies showed that they were still willing to work with Repet to avoid having to revoke their discharge permit. The enforcement procedures continued for one year from March 2014 until March 2015 before the actions were finally closed. The SuOpta enforcement action was initiated by SBMWD and SAWPA reviewed all of the enforcement documentation before it was sent to SunOpta. The failure of SAWPA to require the division of the last NOV into two parts as noted in Question].above demonstrates that the ERP must be closely followed on all enforcement activities. In the WRCRWA enforcement action itemized above in Questionl, it appears that there was considerable divergence between the ERP requirements and the enforcement activities initiated by SAWPA as the sole agency involved. 33 2015 Internal SAWPA Pretreatment Program Audit Report 4. What types of enforcement metrics does SAWPA use? What goals and expectations has SAWPA set for enforcement? Has SAWPA acted on metrics? Are these issues communicated to OCSD and the Member and Contract Agencies? If so,how and how often. SA WPA's response The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated, all enforcement actions are reported to OCSD on a monthly, quarterly,semi-annual, and annual basis. In addition, all enforcement action is communicated between SA WPA and the Agencies, at a minimum, every two weeks during the bi weekly teleconference calls. Audit response Please refer to section on Metrics. Enforcement Best Management Practices SAWPA conducts an audit of all agencies bi-annually covering various program activities including permitting, inspection, monitoring, and enforcement. SAWPA last conducted the agency audit throughout November of 2015 with all agencies reviewed. Joint inspections were also performed with agency members at this time to review the inspection SOPS were being implemented consistently throughout all agencies. In addition, SAWPA conducts bi-weekly teleconferences and bi-monthly face-to-face meeting with all agencies to discuss all Brine Line activities including, but not limited to, permitting, inspection, monitoring, and enforcement. A detailed spreadsheet is also maintained covering all Brine Line permits with application deadlines, expiration dates, and contact information closely tracked. This spreadsheet is redistributed at each meeting so that all agencies are up to date on permitting issues. Furthermore, SAWPA has created detailed Standard Operating Procures for its FACS data management system including permitting, monitoring, inspection, and enforcement. All agencies have undergone training on these SOPS and are utilizing the accompanying guides for uploading documents into the system. 3.3 Inspection 1. What types(e.g., permitted, non-permitted) and how many inspections were conducted? SAWPA's response SAWPA Inspections SAWPA completed eighty-nine (89) inspections of SAWPA Permittees during the fiscal year July 1, 2014 through June 30, 2015. SAWPA did not perform any inspections of non-permitted facilities during this same time period. Member or Contract Agency Inspections 34 2015 Internal SAWPA Pretreatment Program Audit Report EMWD completed twelve (12) inspections of SAWPA/EMWD Permittees during the fiscal year July 1, 2014 through June 30, 2015. EMWD did not perform any inspections of non-permitted facilities during this some time period. IEUA completed sixty-three(63)inspections of SAWPMEUA Permittees during the fiscal year July 1,2014 through June 30,2015. IEUA did not perform any inspections of non-permitted facilities during this some time period. JCSD completed twenty-five (25) inspections of SAWPA/JCSD Permittees during the fiscal year July 1, 2014 through June 30, 2015. JCSD completed eighty-six (86) inspections of non-permitted facilities during this some time period. SBMWD completed fifteen (15) inspections of SAWPA/SBMWD Permittees during the fiscal year July 1, 2014 through June 30, 2015. SBMWD did not perform any inspections of non-permitted facilities during this same time period. SBVMWD completed five(5)inspections of SAWPA/SBVMD Permittees during the fiscal year July 1, 2014 through June 30, 2015. SBVMWD did not perform any inspections of non-permitted facilities during this same time period. WMWD completed fifty-one(51)inspections c f SAWPA/WMWD Permittees during the fiscal year July 1, 2014 through June 30, 2015. WMWD did not perform any inspections of non-permitted facilities during this same time period. Joint Inspections SAWPA completed twenty-three(23)joint inspections of Brine Line Permittees during the fiscal year July 1, 2014 through June 30, 2015. SAWPA did not perform any joint inspections of non-permitted facilities during this some time period. Audit response The data regarding the number of inspections performed by SAWPA and each of the Agencies as indicated in their responses above was presumably collected from !PACs data.This audit has attempted to estimate the minimum number of inspections that would be required in a one year period if the following criteria are used. SAWPA's pretreatment program has different types of industrial dischargers and the average minimum number of inspections required is dependent on the total number of each type of discharger that is regulated by SAWPA and each of the six agencies multiplied by the minimum inspection requirements set down in part by OCSD's Primary Program Elements Transmittal Letter dated February 28, 2014. In this analysis we have used the following average numbers of inspections required by the different types of dischargers as follows: Direct Dischargers 4 times per year(per OCSD letter) Indirect Dischargers 2 times per year(estimated only, no data backup) Emergency Dischargers 1 time per year(per OCSD letter) Liquid Waste Haulers 1 time per year(estimated only, no data backup) 35 2015 Internal SAWPA Pretreatment Program Audit Report An analysis of the types of all of the permits issued by SAWPA and the various Agencies is presented in the table below. The number of different dischargers in each agency was counted from a permit list dated 11/09/2015 supplied at the meeting with SAWPA in November 2015. For each agency,a comparison between the total number of inspections required and those performed from July 12014 through June 30, 2015 is presented below: Agency Total Inspections Required Total Inspections Recorded SAWPA 89 89 EMWD 8 12 ELIA 38 63 JCSD 24 25 SBMWD 18 15 WMWD 45 51 The comparison indicates that all agencies, except for SBMWD, are reaching the minimum number of required inspections and in some cases,are exceeding it. 2. Are inspections prearranged or are they unannounced? SAWPA's response SAWPA Inspections Most SAWPA inspections are unannounced except for permit application inspections. Application inspections are announced to assure the Authorized Representative is available to review and verify the information on the permit application. Member or Contract Agency Inspections Most Member or Contract Agency inspections are unannounced except for permit application inspections. Application inspections are announced to assure the Authorized Representative is available to review and verify the information on the permit application. Joint Inspections Most SAWPA joint inspections are unannounced unless a particular person is requested to be available for the inspection. Audit response From hand written notes taken at the SAWPA meeting held on November 10,2015,the Senior Pretreatment Program Specialist stated that SAWPA conducted all of its own Brine Line permittees and some of the"conflict of interest" permittees with other agencies. All other Agencies are responsible for inspecting their own Brine Line permittees. Inspection training for agency personnel was conducted on April 22,2015 and the Senior Pretreatment Program Specialist has met all agency inspection personnel and performs cross inspections with them for training purposes. 36 2015 Internal SAWPA Pretreatment Program Audit Report The Senior Pretreatment Program Specialist further confirmed that most of the inspections are unannounced,particularly Collection Stations but other inspections may be announced in certain situations as indicated in the joint inspections noted above. Most inspectors fill in a hard copy of the field inspection form at the inspection. This form is the same for all agencies. WMWD inspectors have tablets in the field to fill in the inspection forms on line. Other agencies fill in the computerized forms when they return to office. Signatures of industrial user officials on the hard copy field inspection forms are scanned into the computerized forms. It is considered that as SAWPA has more Brine Line Permittees than any other agency the introduction of tablet input in the field for all SAWPA inspectors would speed up inspection procedures and avert any possible errors of translation from hard copy to computer copy. 3. Are inspections conducted in a manner consistent with SAWPA's PPCD? Provide a tabular listing comparing the existing policies and procedures to SAWPA's inspections. SAWPA's response Inspection Report PPCD 1.Permitted Wastestreams See 6.2 Scope of Inspection and 6.6 Inspection Conduct 2. Discharged See 6.2 Scope of Inspection and 6.6 Inspection Conduct 3. Non Discharging See 6.2 Scope of Inspection and 6.6 Inspection Conduct 4. Outside Service Area See 6.2 Scope of Inspection and 6.6 Inspection Conduct 5. Reclaimable Wastewater See 6.2 Scope of Inspection and 6.6 Inspection Conduct 6. Storm Water See 6.2 Scope of Inspection and 6.6 Inspection Conduct 7 O& M of Equipment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 8. O& M Manual See 6.2 Scope of Inspection and 6.6 Inspection Conduct 9. Flow Meter See 6.2 Scope of Inspection and 6.6 Inspection Conduct 10.pH Meter See 6.2 Scope of Inspection and 6.6 Inspection Conduct 11. Other Equipment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 12.Auto Shut-Off See 6.2 Scope of Inspection and 6.6 Inspection Conduct 13.Sample Point See 6.2 Scope of Inspection and 6.6 Inspection Conduct 14.Sample Collection See 6.2 Scope of Inspection and 6.6 Inspection Conduct 15. Planned Changed See 6.2 Scope of Inspection and 6.6 Inspection Conduct 16. Other See 6.2 Scope of Inspection and 6.6 Inspection Conduct 17. Flow See 6.2 Scope of Inspection and 6.6 Inspection Conduct 18. Housekeeping See 6.2 Scope of Inspection and 6.6 Inspection Conduct 19. Work Hours/#Employees See 6.2 Scope of Inspection and 6.6 Inspection Conduct 20. Records See 6.2 Scope of Inspection and 6.6 Inspection Conduct 11. Facilities Plans See 6.2 Scope of Inspection and 6.6 Inspection Conduct 12. Contingency Plan/Contacts See 6.2 Scope of Inspection and 6.6 Inspection Conduct 13. Hauling Records See 6.2 Scope of Inspection and 6.6 Inspection Conduct 14. Other Permits See 6.2 Scope of Inspection and 6.6 Inspection Conduct 15. Boilers See 6.2 Scope of Inspection and 6.6 Inspection Conduct 16. Cooling Towers See 6.2 Scope of Inspection and 6.6 Inspection Conduct 27. Water Treatment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 28. Chemical Storage See 6.2 Scope of Inspection and 6.6 Inspection Conduct 29. Hoz Waste Storage See 6.2 Scope of Inspection and 6.6 Inspection Conduct 37 2015 Internal SAWPA Pretreatment Program Audit Report 30.Spill Containment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 31. MSDS See 6.2 Scope of Inspection and 6.6 Inspection Conduct 32. Other See 6.2 Scope of Inspection and 6.6 Inspection Conduct 33. Change to Permlt/PFS See 6.2 Scope of Inspection and 6.6 Inspection Conduct All Agency inspections are documented, regardless of type or purpose, using an Inland Empire Inspection Report Form. Audit response The Audit team verified SAWPA's answer and concurs with it. 4. What types of metrics does SAWPA set for inspections? What were the results? Has SAWPA acted on the metrics? Are these items communicated to OCSD? If so,how are the items communicated and how often? SAWPA's response: The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated, all inspection results are reported to OCSD on a monthly, quarterly, semi-annual, and annual basis. Inspections are performed in accordance with the OCSD program goal frequencies in accordance with the memo submitted to SAWPA from OCSD on February 28, 2014. OCSD,and therefore SAWPA,minimum inspection frequencies are as follows. Industry Control Authority Classification Inspections CIU Quarterly SIU Quarterly IU Semi-Annually IU Indirect* Annual Emergency* Annual *OCSD has no indirect IU's and therefore has provided no guidance on frequencies for this facility type. Audit response Please refer to section on Metrics. Inspection Best Management Practices On April 22, 2015 SAWPA conducted an in-house training course entitled "Pretreatment Inspector Training." The SAWPA training course was provided to all Member Agency and Contract Member Agency inspectors. The training course provided essential skills required by pretreatment inspectors for conducting pretreatment facility inspections. In addition, the training course reviewed specific SAWPA pretreatment program elements. Thirty-two (32) inspectors attended the two hour course and all in attendance received 2.0 contact hours. The topics discussed and reviewed included: Purpose of the Pretreatment Program • Need for Pretreatment Facility Inspections 38 2015 Internal SAWPA Pretreatment Program Audit Report • Duties of an Inspector • Relations with Industry Personnel • Inspector Ethics • Entering an Industry for an Inspection • Inspection Entry Denied • Types of Contacts • Presenting Yourself • Know the Rules • Spill Containment • Stormwater • Safety • Items to Inspect • General Pollution Prevention • Unique SAWPA Program Elements SAWPA conducts an audit of all agencies bi-annually covering various program activities including permitting,inspection, monitoring,and enforcement. SAWPA last conducted the agency audit throughout November of 2015 with all agencies reviewed. Joint inspections were also performed with agency members at this time to review the inspection SOPS were being implemented consistently throughout all agencies. SAWPA and JCSD have implemented a detailed industrial user survey in the JCSD service area to review potential industries requiring a wastewater discharge permit. Athorough survey was conducted with all facilities visited. An extensive log sheet is maintained recording all facilities visited,date of the visit and projected follow-up visit date, and which of the JCSD connections they discharge to. As JCSD is also the utility provider for water they will become aware of new facilities as they come into the service area, but are also utilizing their industrial user survey process to ensure no new facilities are missed. Beginning in July 2015,SAWPA implemented a new training program entitled "Inter-Agency Inspection Training." The purpose of the training is to promote continued growth of all agency inspectors and to acquaint inspectors with types of facilities and pretreatment devices not located within their agency's service area. Each quarter two different agencies are paired together and each agency is responsible for hosting and arranging one joint inspection within their service area. Each quarter the schedule rotates which allows for the growth of an inspector's knowledge and encourages agency camaraderie. Please see the example below. 3.4 Monitoring and Sampling 1. What constituent monitoring is required of permitted facilities since January 2014,and how does the actual performance compare to the requirements?Evaluate and assess the adequacy of the constituents monitored and provide relevant tabular listings for CIUs,SIUs,IUs,and Liquid Waste Haulers. SAWPA's response: Monitoring is performed according to the constituents identified in the permit. SAWPA uses one of the iPACS modules to generate sampling and self-monitoring tasks based on the defined permit limits and 39 2015 Internal SAWPA Pretreatment Program Audit Report monitoring requirements. SA WPA reports to OCSD on all constituent monitoring conducted by permitted facilities quarterly and again annually. Sampling is performed in accordance with the OCSD program goal frequencies per the memo submitted to SAWPA from OCSD on February 28,2014. Audit response To examine the constituent monitoring conducted by permitted facilities, the quarterly report covering the period from July 1 to September 30, 2015 (File: 2015-09 SAWPA Quarterly 10-29-15.pdf) was compared with the sampling requirements from the permit files for the following Industrial Users: • C.C.Graber Company, Permit#I10O5-1 • TemescalDesalter, Permit#D3012-1 • Inland Empire Energy Center, Permit It D1O36=1.1 • Metal Container Corporation, Permit#D3056-2 C.C. Graber Company The C.C. Graber Company, located on 315 E 0 Street, Ontario, is an olive canning facility which was reported to have had no violations and no enforcement during the July to September 2015 reporting period. The sampling results (pages 105 to 109 of the quarterly report file) include Agency sampling results by IEUA on 9/24/15 and self-monitoring sampling results by C.C.Graber Company on 9/24/15. C.C. Graber Company is a Categorical Industrial User (CIU) under 40 CFR Part 407, Subpart F—Canned and Preserved Fruits Subcategory, pretreatment Standards for Existing Sources (PSES) 407.64 which contains 5 day Biochemical Oxygen Demand (BODS) and Total Suspended Solids (TSS) Categorical Standards with "no limitation" requirements, (not stated in the permit but contained in the permit fact sheet file). The Permit identifies the monitoring point 001 as the outlet from the 5,000 gallon Wastewater Storage Tank. All local limits are listed in Section VI B,Table 1 of Permit#11005-1. The quarterly monitoring report lists the results of sampling by the Agency (IEUA) on 9/24/2015 but there is no column in the report to include the identification of the monitoring location from which the samples were taken. It is ASSUMED that the location is monitoring point 001 as this is the only location reported in the Permit. The IEUA results include ALL of the required pollutant parameters in Table 1 and several addition unlisted parameters (Alkalinity, Calcium dissolved, DOC, Orthophosphate dissolved, Phosphorus dissolved, TSS, Cyanide amenable, Cyanide Total, Molybdenum, Selenium, Phosphorus total, FOG, O&G mineral, Temperature, Barium, Cobalt, Iron, Magnesium, Manganese and Orthophosphate Total) Some of these extra parameters are mentioned in the permit fact sheet as being required by SAWPA for investigations of solids buildup in the Brine Line, but the inclusion of others is unknown except for specific sampling, which is permitted under Permit regulations (Section IV B 3). All of the extra parameters do not have limits entered in the Daily Limit (Max) column of the quarterly report as they presumably have no upper limitations. All pollutant parameters listed in Table 1 of the Permit are recorded by the IEUA and the concentrations are listed in the Result column in mg/l. In addition,the local limit maximum concentrations are listed in the Daily Limit (Max) column so that immediate verification of compliance is possible by comparing these two results. 40 2015 Internal SAWPA Pretreatment Program Audit Report The Self-Monitoring Sampling results are also listed in the quarterly report. All required pollutant parameter reported concentrations are included in the Result column and all local limits are included in the Daily Limit (Max) column for compliance comparison purposes. In addition, C.C. Graber Company included Cyanide amenable, Cyanide Total, DOC and TSS in the analysis. These parameters were included in Table 1 of the Permit as being not required (N/R). The inclusion of TSS is acceptable since this is one of the Categorical Limits which is NOT included in the permit requirements, even though the categorical limit is "no limit". IEUA also included a TSS parameter which should have been required in the permit. In conclusion,the monitoring and sampling reporting for C.C. Graber Company is well presented in the quarterly report EXCEPT that the monitoring location is not identified and the TSS limit is monitored but not mentioned in the Permit. It is also suggested that the words"no limit"could be inserted in the Daily Limit(Max)column for all pollutant parameters to which it applies. TemescalDesalter The TemescalDesalter at 745 Corporation yard Way, Corona is a reverse osmosis treatment facility with a direct discharge to the Brine Line which was reported to have had no violations and no enforcement during the July to September 2015 reporting period. The sampling results (pages 298 to 299 of the quarterly report file) include Agency sampling results by WMWD on 9/28-30/15. There is no self- monitoring sampling results in this report. The Temescal Desalter is a non-categorical Significant industrial User(SIU)subject only to the general compliance regulations contained in 40 CFR part 403 and to the local limits as recorded for the Brine Line and OCSD. The permit identifies the monitoring point 001 as the outlet located on the northeast corner of the facility directly prior to the magnetic flow meter on the discharge pipe. All local limits are listed in Section VI B, Table 1 of Permit JJ131012-1. Self- Monitoring Reports (SMRs) are required semiannually between July and December in each reporting year,so self-monitoring results would not be expected in this quarterly report. The quarterly monitoring report lists the results of sampling by the Agency (WMWD) on 9/28-30/2015 but there is no column in the report to include the identification of the monitoring location from which the samples were taken. It is assumed that the location is monitoring point 001 as this is the only location reported in the permit. The WMWD results include all of the required pollutant parameters in Table 1 and several addition parameters(Calcium Total, Magnesium Total and Temperature).All of the extra parameters do not have limits entered in the Daily Limit(Max)column as they presumably have no upper limitations. All pollutant parameters listed in Table 1 of the permit are recorded by the WMWD and the concentrations are listed in the 'Result" column in mg/L. In addition, the local limit maximum concentrations are listed in the Daily Limit(Max) column only for mercury, DOC, pH and BOD.The Daily Limit (Max) column for all other local limits is blank so that immediate verification of compliance is not possible in this report. In conclusion, the monitoring and sampling reporting for the Temescal Desalter is complete in the quarterly report except that the monitoring location is not identified and the majority of entries in the Daily Limit(Max) column are left blank rendering compliance verification impossible. It is also suggested that the words "no limit" could be inserted in the Daily Limit(Max) column for all pollutant parameters to which it applies. 41 2015 Internal SAWPA Pretreatment Program Audit Report Inland Empire Energy Center The Inland Empire Energy Center (IEEC) at 26226 Antelope Road, Menifee, is a natural gas fired gas/steam turbine base-load electric power generation plant with a direct flow to the Brine Line which was reported to have had no violations and no enforcement during the July to September 2015 reporting period. The sampling results (pages 183 to 189 of the quarterly report file) include Agency sampling results by EMWD on 7/07-08/2015, 7/22/2015 and 9/17-30/2015, and SMR sampling results by IEEC on 7/22/2015. IEEC is a Categorical Industrial User (CIU) under 40 CFR 423.17 - Steam Electric Power Generating-New Source. The industrial wastewater discharges from this facility are subject to Categorical Pretreatment Standards for New Sources (PSNS) contained in 40 CFR Part 423.17. This facility is also subject to the general and specific wastewater pollutant limits contained in the Ordinance and the Local Limits in SAWPA Resolution 2011-13,or any successors thereto. The Permit identifies a Categorical Sample Point 001 as the flow-through cell on the discharge line from the cooling tower before the Non-reclaimable Water Tank. The Permit also identifies the Local Limits Sample Point 002 as the flow-through cell on the discharge line after the Non-reclaimable Water Tank. This discharge line includes all waste streams flowing to the non-reclaimable waste line that is directly connected to the Brine line. A third monitoring point 003 is also identified for specialized sampling from the Chemical Metal Cleaning Wastes Holding Tank which is only allowed with prior Agency permission. Permit a D1036-1.1 lists the Local Limits in Section IV B Table IA for monitoring at location 002. The Permit also lists the Categorical Limits in Section IV B Table 1B for monitoring at location 001. Finally the Permit lists specialized Categorical Limits in Section IV B Table 1C for monitoring at location 003 only with special permission from the Agency. The quarterly monitoring report lists the results of sampling by the Agency(EMWD)on 7/07-08/2015, 7/22/2015 and 9/17-30/2015, but there is no column in the report to include the identification of the monitoring location from which the samples were taken. Therefore there is no way to determine where each sample was collected. On 7/08/2015 EMWD collected samples for PCBs with a sample ID of 3833. There is no entry in the Daily Limit (Max) column except for the total PCBs line on page 184 of the report. The Daily Limit (Max) column has a lug/I limit so this sample is ASSUMED to be from the local limit location where the limit is recorded as 0.01mg/I in the Permit Table IA. This complete set of PCB samples is REPEATED on page 185 of the report with the same sample ID of 3833 and a Daily Limit (Max) column record of 0.01mg/l. The total concentration of PCBs is recorded here as 0.01mg/I (page 185 of the report) which equals the limit and would be a violation if the location of the sample could be identified. All of the supposedly local limits required by Table lA of the Permit are recorded by EMWD in the quarterly report, BUT only mercury, BOD, DOC(not actually required by the Permit)and pH are included in the Daily Limit(Max)column. The TTO result was recorded as 0.01 mg/I (Sample ID 3884 page 185 of the report) but no individual analyses of the seven (7) required organic pollutants that make up this assessment were included in the report. Extra samples of Calcium Total, Calcium dissolved, Orthophosphate dissolved, Phosphorus dissolved, Orthophosphate Total and Phosphorus Total were also taken by EMWD, PRESUMABLY from monitoring point 001 for the SAWPA solids investigation requirements. In addition 1,4Dioxane, N-Nithrosodimethylamine, ammonia nitrogen and TOC were sampled by EMWD for reasons unknown to this audit. On 7/8/2015, Sample ID 3832 reported a Chromium Total concentration of 0.00mg/I with a Daily Limit (Max) column notation of 0.2mg/l. This is 42 2015 Internal SAWPA Pretreatment Program Audit Report ASSUMED to be one of the Categorical Limits as the permit Table 1B lists Chromium limit as 0.2mg/I whereas the local limit on Table 1A is 2.Omg/I. On 9/17/2015 (i.e.two months later) EMWD sampled for TOC, PH, Molybdenum, Selenium, N-Nitrosodimethylamine, 1,4-Dioxane, ammonia nitrogen and on 9/30/2015 EMWD sampled for Zinc. No limits were included in the Daily Limit (Max) column so the location of all of these samples is unknown. Possibly the Zinc sample was from the Categorical Monitoring Location as Zinc was not sampled together with the Categorical Chromium sample (ID 3832 on 7/8/2015). Self-monitoring by IEEC once again suffered from a lack of the identification of the sampling location. Some assumptions of the samples taken can be deduced however from the data entered in the Daily Limit (Max) column. If Sample ID 17742 for Chromium was assumed to have been taken from location 002 as the Daily Limit(Max) column reports a 0.2mg/I limit which is the Categorical Limit(Note the local Chromium limit is 2.0mg/I), then all the PCB samples are also from location 002 as they have the same Sample ID of 17742. In this case the Daily Limit(Max)column incorrectly indicates a 1 ug/I limit whereas the Categorical PCB limit is ND. Sample ID 17743 is clearly from location 001 as all Daily Limit (Max) column entries indicate all of the required local limit daily maximums as reported in the Permit. Six of the organic compounds that make up the local TTO limit are recorded but no record for the last compound Tetrachloroethene was seen in the report. In conclusion,the monitoring and sampling reporting for the IEEC has no identified monitoring locations and most of the Daily Limit(Max)entries are missing except for the self-monitoring report. The quarterly report as such makes it impossible to determine where each sample was taken or whether the sample was in compliance or not. The inclusion of a column showing the monitoring location for each sample and the complete submission of Daily limit(Max)entries are therefore essential CHANGES that must be made to the report in order to make it of any use whatsoever. It is also suggested that the words"no limit" could be inserted in the Daily Limit(Max)column for all pollutant parameters to which it applies. Metal Container Corporation The Metal Container Corporation (MCC) at 10980 Inland Avenue, Jurupa Valley, utilizes aluminum coil stock to manufacture cans. Wastewater discharged directly to the Brine Line comes from a variety of manufacturing processes and totals 20.12 MGD. The facility has had no recorded violations and no enforcement in the July to September 2015 reporting period.The sampling results (pages 205 to 206 of the quarterly report file) include Agency sampling results by JCSD on 7/06-08/2015 and self-monitoring sampling results by MCC on 7/09/2015. MCC is a Categorical Industrial User(CIU) under 40 CFR 465 Coil Coating Point Source Category, Subpart D, Canmaking Subcategory, Pretreatment Standards for New Sources (PSNS) Part 465.45. This facility is also subject to the general and specific wastewater pollutant limits contained in the Ordinance and the Local Limits in SAWPA Resolution 2011-13, or any successors thereto. Permit#D1056-2 identifies a Sample Point 001 as the magnetic flow meter and sample port located on the effluent pipe from the clarifier. The Permit also identifies a Sample Point 002 for pH monitoring only. Thus both Local Limits and Categorical Standards are sampled at location 001. Permit# D1056-2 lists the Local Limits in Section IV B Table 1A for monitoring at location 001 in mg/I. The Permit lists the Categorical Limits in Section IV B Table 18, also for monitoring at location 001. The Categorical Limits for this facility are expressed as Production Based Limits involving the daily maximum 43 2015 Internal SAWPA Pretreatment Program Audit Report and monthly average concentrations applicable in grams per million cans produced. In order to calculate the Categorical Limits from the analytical results expressed in mg/I, the production rate has to be known and the total volume of wastewater produced during the production of one million cans has to be calculated by both the Agency and the industrial user. The Permit does not give the industrial user any instructions as to how these calculations should be made. The quarterly monitoring report lists the results of sampling by the Agency (JCSD) on 7/06-08/2015. There is no column in the report to include the identification of the monitoring location from which the samples were taken, but as there is only one monitoring point (001) in the Permit, it is assumed that all samples were taken at location 001. The JCSD results include some of the required pollutant parameters in Tables 1A and 1B and several addition parameters (Calcium Total, Magnesium total). Some of these extra parameters are mentioned in the Permit Fact Sheet as being required by SAWPA for investigations of solids buildup in the Brine Line. Sampling by JCSD did not include the following required pollutant parameters; TSS, arsenic, cadmium, lead, nickel, silver, sulfide dissolved, sulfide total and TDS. Sampling is required on a semiannual basis so the complete set of these results may not have been included in this report. Concerning the results that are recorded, only pH, DOC, BOD, copper and mercury have entries in the Daily Limit (Max) column so it is impossible to tell which of the rest are Local Limits or Categorical Standards. Also, although the total TTO concentration is recorded at 0.04(Sample ID 15867)there is no record of the individual organic compounds which make up this calculation and whether it applies to the local TTO or the Categorical TTO,which vary greatly in their requirements. No attempt has been made to calculate the production based standards so the quarterly report HAS NO RECORD of these requirements. All of the extra parameters do not have limits entered in the Daily Limit (Max)column as they presumably have no upper limitations. The self-monitoring results(Sample ID 17046) include ALL of the required Categorical parameters which are required to be sampled on a quarterly basis. Once again the TTO sample does not include all of the individual organic pollutants that make up the TTO calculation, (see permit Table 1B note 2 containing the list of required 40 CFR 465.02 0) TTO pollutants). There has been no attempt to calculate the categorical production based limits so the report is virtually useless to assess compliance. Also, as sampling is required to be performed on a semiannual basis by the Industrial User, the Local Limit sampling is not necessarily required to be present in this report. In conclusion, the monitoring and sampling reporting by both JCSD and MCC does not distinguish between Local Limits and Categorical Pretreatment Standards even though they are all sampled at the same location. Once again, most of the Daily Limit (Max) entries are missing except for the SMR. In a CIU where Categorical Limits are production based,the reported concentrations of the limits in mg/L are of no use for compliance calculations until the Categorical calculations are completed. The results of these calculations should be recorded in the quarterly report together with the Categorical Limits in the Daily and Monthly (Max and average) columns. It is also suggested that the words "no limit" could be inserted in the Daily Limit(Max)column for all pollutant parameters to which it applies. In the opinion of this audit, the quarterly report is seriously deficient both in extra data required (e.g. monitoring locations)and serious lack of data entered (Daily Limit(Max)column entries). Also, included in the results were omissions of required sampling, a few errors of reporting data and a wide variation between the reports from the different agencies. 44 2015 Internal SAWPA Pretreatment Program Audit Report In the quarterly report,all entries of the concentrations in mg/I of the required parameters for each Industrial User reviewed were found to be correct,after a review of the individual laboratory reports. Tabular listings of the constituents monitored for CIUs,SIUs, IUs and Liquid Waste Haulers are not included here. The reviews above confirm that there was complete adequacy of the constituents monitored in the CIUs and SIUs evaluated above. 2. Is non-routine monitoring performed at permitted facilities?If so,what are they and how often are they done?Are they tracked and reported? SAWPA's response Yes.Non-routine monitoring is performed on an as-needed basis. Currently additional monitoring is being performed to track expected pollutant discharge variation from seasonal dischargers such as Del Real Foods. Suspended Solids studies are also ongoing from various dischargers to track potential solids formation within the Brine Line. The results from these non-routine monitoring events are reported quarterly to OCSD. Sampling tasks can be created in iPACS for any non-routine event. Audit response Non routine sampling has been recorded in the detailed analysis of the four different permittees reviewed in Question 1 above. As far as this audit can determine, the results of non-routine sampling are reported in the quarterly reports. There is no indication in the report however that these are non- routine samples and they cannot be separated out from the required sampling without referring back to the tables in the individual Permits. A separate column in the report could indicate non routine samples and therefore solve this problem. 3. What types of metrics from the monitoring events are maintained? Has any action resulted from these metrics? If so,what happened?Are these communicated to OCSD?If so, how and how often? SAWPA's response The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated, all water quality results are reported to OCSD on a quarterly and annual basis. A summary of sample collection type (i.e. grab, composite) is included in the annual report. Sampling is performed in accordance with the OCSD program goal frequencies per the memo submitted to SAWPA from OCSD on February 28, 2014. OCSD, and therefore SAWPA, minimum monitoring frequencies are as follows: Industry Control Authority Self-Monitoring Classification Sampling CIU 4 2 SIU 4 2 IU 2 2 IL/Indirect" 1 2 'OCSD has no indirect IUs and therefore has provided no guidance on frequencies for this facility type. 45 2015 Internal SAWPA Pretreatment Program Audit Report Audit response Metal Container Corporation is a CIU but IU monitoring is semiannual for Local Limits and quarterly for Categorical Standards in the Permit. The other three permittees investigated in Question 1 above are in line with SAWPA's table above. Monitoring and sampling details are generally included in the "template" permit files referred to in the Permitting Questionnaire. Complete Lists of OCSD's and SAWPA's Local Limits are generally included in the template files together with references to extensive footnotes concerning the various monitoring and sampling requirements. During permit preparation, some of the Local Limits are black-lined with a note in the "Frequency of Monitoring" column that this particular parameter is not required to be sampled for (N/R). It would be more efficient if these particular parameters were completely deleted from the list, together with the appropriate footnotes. A good example is TTO which may be N/R in the list but still itemized in the footnote in great detail. In some instances, IU's (see C. C. Graber Company review in Question 1 above) have been noted to sample for N/R parameters which is unnecessary.This comment also applies to the reporting forms included as attachments to the permits which once again have"black-lined" parameters that are not required to be sampled. The addition of laboratory results into the database is essential to assess compliance and record monitoring/sampling activities. The database should and can develop statistical analyses to inform program managers of the overall state of the monitoring/sampling activities at any instance in time and detect violations thus guaranteeing that the information contained in required reports will be up to date and accurate. Reports are regularly sent to OCSD as indicated in the SAWPA response. As a general comment following the review of these reports, they often do not contain a column which identifies the monitoring location from which the samples were collected. This renders the report somewhat useless to the reviewer so inclusion of these extra requirements should be entered in future reports. Please refer to section on Metrics. 4. Did each entity monitor and sample in a manner consistent with SAWPA's PPCD? SA WPA's response Yes. Agencies use WACS, based on Standard Operating Procedures within SA WPA's PPCD, to generate sampling tasks and enter water quality data. Audit response The four permittee analyses in Question 1 above demonstrate that deficiencies in data entry exist (See final conclusions in Question 1). Changes are required in order to make the quarterly reports more meaningful. It does appear that in all of the permittees that were reviewed, the monitoring and sampling was performed in a manner consistent with SAWPA's PPCD. S. How precise and consistent are monitoring actions? 46 2015 Internal SAWPA Pretreatment Program Audit Report SAWPA's response Monitoring is performed by the some laboratory for all SAWN collected samples. Agencies either use the same contract laboratory as SA WPA or utilize their own in house laboratory.All methods comply with 40 CFR 136 and all laboratories are ELAP certified. Audit response C.C. Graber Company files The Audit team reviewed files containing the completed SMR for September 2015 prepared by the C.C. Graber Company and the enclosed Laboratory Results from Babcock Laboratories, Inc., who performed the sampling.The files were found to be complete. Files containing sampling and laboratory analysis and completed Chain of Custody forms prepared by IEUA in September 2015 on wastewater samples collected at the C. C. Graber Company were also inspected by the Audit Team and found to be complete. TemescalDesalter files Laboratory Reports,Chain of Custody sheets and sampling sheets were also reviewed for the TemescalDesalter as prepared by WMWD in September 2015. They were found to be satisfactory. Inland Empire Energy Center(IEEC)files Files containing the completed SMR for August 2014 prepared by the IEEC and the enclosed Laboratory Results and completed Chain of Custody sheets from Babcock Laboratories Inc, who performed the sampling, were reviewed and found to be complete. In addition, the files containing the results of the Agency monitoring and sampling event performed by EMWD on the IEEC in July 2015 including EMWD's Chain of Custody documents and the EMWD Laboratory Report were reviewed and found to be complete. Metal Container Corporation(MCC)files The Audit Team reviewed the files containing the July 2015 SMR for MCC and all monitoring activities appeared to meet the Permit requirements. Sampling and Chain of Custody sheets were correctly completed and the laboratory report from Test America contained all the required information for the analyses. In addition, the files containing the Monitoring Report and Laboratory Analyses for July 2015 prepared by JCSD for MCC contained all the necessary information required by the Permit and SAWPA's PPCD. General Comments ELAP certifications were reviewed for each set of laboratory analyses and found to be valid and all associated methodologies were inspected and found to be in compliance with the requirements of 40 CFR Part 136. 2. Is proper monitoring required and documented? Evaluate and assess the adequacy of the monitoring efforts considering the following at a minimum: a. Each sample should be random in accordance with 40 CFR 403.8(f)(2)(v) 47 2015 Internal SAWPA Pretreatment Program Audit Report SA WP's response Samples are collected on a random basis. Audit response See the documentation reviews in Question 5 above. No assessment of random sampling is possible without on location observations. b. Sampled at the representative sample points SAWPA's response All samples are collected at the permit defined monitoring location, which is clearly marked on the site. OCSD provides concurrence on all permits. Audit response Lack of defined location identification in a specific quarterly report column makes reporting sample concentrations in permittees which have more than one sampling location almost impossible as shown in Question 1 above. Reference to the review of the Chain of Custody sheets shown in Question 5 above, confirm this requirement. c. Samples were representative of daily discharges i. Documentation exists if there appeared to be dilution or a reduction of discharge or services during the sampling event I Accounted for seasonal variations,if applicable iii. Discharges were either from a well-mixed single batch for the entire day(not multiple batches in a single day)or from a continuous discharge SAWPA's response Samples were representative of daily discharges. Documentation exists if there appeared to be dilution including escalated enforcement when a permittee was caught diluting during a sampling event. Other investigations were undertaken, with documentation present, in instances when tampering with the monitoring process was expected. Discharges were either from a well-mixed single batch or from a continuous discharge. Audit response No documentation of these irregularities was encountered in the audit observations. d. Documented representative sample collection techniques I. Appropriate sampling equipment employed (especially collection container) ii. Appropriate grab and composite sampling methods and techniques used iii. Sample collection handling documented(e.g.chilled or preserved appropriately) 48 2015 Internal SAWPA Pretreatment Program Audit Report iv. Documentation generally complete and in order(e.g. inspection and sampling reports) SA WPA's response Control Authority sampling is performed by qualified sampling technicians, as described in the SAWPA PPCD, using ISCO sampling equipment. Samples are preserved per 40 CFR 136 and always kept in ice. All control authority samples are collected as either from a well-mixed single batch or from a continuous discharge as a 24-hour composite or production day composite(with the exception of those pollutants which require grab samples,such as pH, oil&grease,etc.).Additionally,a description of the sample appearance is noted in the COC. Documentation is complete and in order. SAWPA has conducted training with all Agencies on sampling techniques. A focus of the November 2014 audit of the Member and ContractAgencies, conducted by SAWPA, was on proper sampling methodology. Agencies are required to submit their sampling SOPS for review to SA WPA and update as necessary. SA WPA and Agencies all upload applicable information into iPACS to track violation and enforcement,report on inspections, and upload permit requirements in accordance with SOPS created by SAWPA. Audit response With reference to the reviews contained in Question 5 above,SAWPA's answers to Question 6 d,above,appear to be accurate. e. Documented Integrity of sample preservation and transfer of custody to the laboratory(e.g.Chain of Custody). SAWPA's response Chain of Custody forms, generated from iPACS documents integrity of sample preservation and have signature blocks which allow monitoring of sample custody. Audit response All Chain of Custody sheets reviewed in Question 5 above confirm documented sample integrity and all reviewed sheets had completed transfer signatures including transfer dates and time of transfer. f. Used proper EPA-approved analytical methods at appropriate detection limits SA WPA's response All samples are preserved and analyzed per 40 CFR 136. 49 2015 Internal SAWPA Pretreatment Program Audit Report Audit response Reviews of the Laboratory Analyses contained in Question 5 above confirmed that Preservation and analysis was performed per 40 CFR Part 136. g. Took quality control steps on analytical results that validate that the information stored in the sample result repository reflects analytical results delivered by the laboratory SAWPA's response Quality control steps are taken at regular intervals. Audit response The data from the labs is uploaded onto iPACS hence eliminating manual data entry and associated potential manual entry errors. h. Conducted compliance analysis of monitoring results relative to appropriate discharge limits SAWPA's response All samples are analyzed for pollutants identified in the permits, at detection limits applicable to determine compliance. Compliance analysis is performed within iPACS, which flags violations, and is associated with enforcement as applicable. SAWPA utilizes a log sheet to track data review and compliance analysis with a minimum of two individuals reviewing all data prior to upload to iPACS. Audit response All self-monitoring forms reviewed in Question 5 above contained compliance analyses in the appropriate column by the individual IUs. SAWPA or an Agency review all self- monitoring reports as soon as they are received from the IUs and agency monitoring results are uploaded to PACs which also performs compliance analysis. 3. what actions do SAWPA and the Member and Contract Agencies employ to ensure that self- monitoring reports comply with all permit and federal Pretreatment requirements? Evaluate and assess the adequacy of the self-monitoring program. SAWPA's response Self-monitoring reports are reviewed for compliance, tracked via a log sheet, with permit limits and required sample preservation and analysis per 40 CFR 146. Data is uploaded into iPACS where it is cross checked with all applicable permit and regulatory requirements. SAWPA and Agencies all upload applicable information into iPACS in accordance with SOPS created by SAWPA. 50 2015 Internal SAWPA Pretreatment Program Audit Report Audit response From the reviews of the SMRs in Question 5 above, this audit finds that the self-monitoring program appears to be adequate. 4. Do the permittees report all the valid sampling results as required?What measures are in place to ensure that this is so? SA WPA's response Permittees are required to report all sample results as required in their permits, and any additional monitoring conducted at the designated Monitoring Points. Missing or incomplete SMRs are flagged as noncompliant within iPACS and would result in enforcement in accordance with the SAWPA PPCD. SAWPA and Agencies all verify information through iPACS in accordance with SOPS created by SAWPA. Audit response In the reviews performed in Question 5 above, all parameters required by the permits to be analyzed were analyzed by the IUs. The compliance forms attached to the permits ensure that all required parameters are sampled and the IUs are required to complete these forms as part of their SMRs.Any deficiencies should be immediately noticed by the IUs and re-sampling initiated to complete the permit requirements. Sampling and Monitoring Best Management Practices SAWPA's response SAWPA has created detailed Standard Operating Procedures for its iPACS data management system including permitting, monitoring, inspection, and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. SAWPA utilizes a log sheet for the tracking of data review prior to, and after upload to the iPACS data management system. SAWPA has created detailed Standard Operating Procures for its iPACS data management system including permitting, monitoring, inspection, and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. Audit response All of the SOPS mentioned in SAWPA's response above have been reviewed by this audit. Except for the deficiencies mentioned regarding the quarterly reports, the use of the FACs data management system appears to be used by all Agencies and only improvements in the overall structure of the reports are required to make these reports more intelligible to reviewers. 51 2015 Internal SAWPA Pretreatment Program Audit Report 3.5 Metrics The use of metrics or the use of a set of figures or statistics to measure results can be undertaken in a variety of ways when applied to an Industrial Pretreatment Program (IP Program). In the great majority of IP Programs, the Control Authority(CA) has sole discretion in developing an IP Program that satisfies the requirements of the Approval or Control Authority, which, in the majority of instances is the regulatory authority of the state in which the CA is located and ultimately to the USEPA. In this case,the CA can develop its own style of administration and documentation provided it is compliant with the federal regulations governing the program and satisfies the requirements of the state or local branch of the Approval Authority. The CA can then measure the efficacy of its program by the use of statistics such as the percentage of industries in compliance, the percentages of enforcement procedures required each IPP year,the relative compliance with its IPP control documents and so forth. In the case of SAWPA's IP Program,the condition is far more complex than the simple case just referred to above. SAWPA acts as the Designated Control Authority (DCA) which is directly responsible to OCSD for the oversight and ultimate approval of its program. In turn, OCSD, as a CA, is responsible for developing its own independent IF Program to the satisfaction of its Approval Authority which is the local branch of the State of California and ultimately the USEPA. In addition, SAWPA's IP Program has specific involvement with several Member Agencies and several Contract Agencies. Please refer to Figure 1.1 in SAWPA's ERP for a diagrammatic representation of this regulatory structure. Many of these Contract and Member Agencies also have their own IP Programs for which they act as CAs under the direct approval of the State of California. Thus, many of these agencies have developed their own programs with their own style of administration and documentation and will obviously show some reluctance to accept SAWPA's different styles of IP Program administration and documentation. One of the methods to overcome this problem has been the development of "template" regulatory documents by SAWPA which are then distributed to the various Agencies with instructions that these documents must be used for all aspects of the SAWPA IP Program. This method ensures that the same style and structure of administration documentation is used by all Agencies resulting in SAWPA's IP Program being consistent and relatively easy to edit and control. Together with these "template" documents, regular meetings and education seminars between SAWPA and the Agencies is necessary to ensure IP Program consistency. In addition, a regular reporting system from SAWPA to OCSD has been established to ensure further compliance. The reporting systems developed by SAWPA between itsAgencies and with OCSD have been documented in SAWPA's various responses to the "Metrics" questions included in OCSD's questionnaires on Permitting, Enforcement, Inspection and Sampling/Monitoring. Separate comments on the various questionnaires are added in the following sections. 3.5.1 Permitting SAWPA has developed a series of "template" documents for the construction of Industrial User (IU) Discharge Permits. All Agencies use these templates and SAWPA then edits their work. The final editing is passed to OCSD for their ultimate approval. This system results in a universal approach to the uniform construction of permits which are relatively easy to edit and approve. Without the templates, Agencies would produce (and they have produced in the past)their own style of permits based on their individual IP Programs.This would have resulted in excessive editing and administrative problems for both SAWPA and OCSD. Using this system is much easier to ensure that permits are renewed in a timely manner and that Industries are familiar with the content of renewed permits. Such a system makes it easier to track 52 2015 Internal SAWPA Pretreatment Program Audit Report the overall developmental stages of each permit and statistical analyses of numbers of permits in development, those already developed, permits in need of development, etc., can be monitored for an instant overview of the IP Program's overall efficacy in this activity.Thus, the efficacy of the system has been vastly improved from the old system without templates. Overall "template' permit documents are relatively difficult to develop due to the vast differences between the different types of Industrial Users. This can be overcome by the use of specific templates for individual groups of Industrial Users, such as Categorical, Users, Direct Dischargers, Indirect Dischargers, Liquid Waste Haulers etc. Also, a variety of"alternative" paragraphs have to be built into the permit templates to cover the specific requirements for each IU. This audit has one comment here on this system when the unnecessary alternative paragraphs are left in the permit structure with a N/A designation next to them. These alternatives should be completely deleted from the final permit structure even if they are retained for editing purposes. This would lead to shorter final permits containing no possible ambiguities to confuse the IUs. 3.5.2 Enforcement Enforcement policy dictates that all member and Contract Agencies conduct their own enforcement activities at the "minor violation" level using SAWPA's ERP (Section 4.0 A 1) for all general guidelines. This audit has reviewed several enforcement cases and the following general comments are made concerning this practice. As stated, Member and Contract Agencies conduct "minor violation" enforcement activities and issue their own enforcement documents at this level. This results in a wide variation in the structure of commonly used enforcement documents such as Written Warning Notices, Correction Notices, Monitoring/Production Information Orders and Notices of Violation. These variations probably arise from the individual styles used in their individual IP Programs as previously referred to. In some cases several of the above notices are combined into a single document by the Agencies. SAWPA has already stated that they do edit these documents before they are sent out to the IUs. This audit recommends that SAWPA develops "template" documents for each of these enforcement procedures and requires the Agencies to use them. Once again this would increase the efficacy of SAWPA's IP Program and make editing quick and relatively easy. The development of documents covering a single enforcement activity will also be easier to read and understand by the noncompliant IUs. Entry of all enforcement procedures in the database should ensure that SAWPA's regular reports to OCSD will be up to date and comprehensive. In addition,the regular bi-weekly communication between SAWPA and the Agencies referred to in SAWPA's report on this question should ensure that everyone is "kept in the loop"as far as enforcement is concerned. 3.5.3 Inspection Industrial Inspections are performed by both SAWPA and each of the individual Member and Contract Agencies. The Industrial User Inspection form is a universal template used by all members. The form is comprehensive and consists of a list of inspection topics with yes, no, or N/A alternatives set in small squares beside each question. Inspectors fill out the form, either using a hard copy at the inspection or in some instances a tablet which directly downloads the form to a central computer. The main part of 53 2015 Internal SAWPA Pretreatment Program Audit Report the form is the comments section where the inspector itemizes any observations that are worthy of note during the inspection. There do not seem to be any metrics involved in this procedure as the comments on the forms cannot be directly applied to violations etc.,with regard to the IP Program. This audit noted that the comments sections varied from very little information in some instances to large amounts in other cases. Individual inspectors will have their own styles of filling in these forms and only educational seminars concerning inspection procedures will help to ensure continuity of inspection details between the different inspectors. SAWPA mentions the frequency of reporting inspection results to OCSD in their response to this question. No mention of any type of inspection training was mentioned in SAWPA's response. 3.5.4 Monitoring/Sampling Monitoring /Sampling details are generally included in the "template' permit files referred to above. Complete Lists of OCSD's and SAWPA's local limits are generally included in the template files together with references to extensive footnotes concerning the various monitoring/sampling requirements. During permit preparation, some of the local limits are black-lined with a note in the "frequency of monitoring" column that this particular parameter is not required to be sampled for (N/R(. It would be more efficient if these particular parameters were completely deleted from the list together with the appropriate footnotes. A good example is TTO which may be N/R in the list but still itemized in the footnote in great detail. In some instances, IU's have been noted to sample for N/R parameters which is a waste of time and resources on their behalf. This comment also applies to the reporting forms included as attachments to the permits which once again have "black-lined" parameters that are not required to be sampled. The addition of laboratory results into the database is essential to identify compliance and record monitoring/sampling activity. The database should and can develop statistical analyses to inform program managers of the overall state of the monitoring/sampling activities at any instance in time and detect violations thus guaranteeing that the information contained in required reports will be up to date and accurate. Reports are regularly sent to OCSD as indicated in the SAWPA response. 54 2015 Internal SAWPA Pretreatment Program Audit Report Table3-1,Permitting Observations and Recommendations Agency Number Observations Rating Recommendations Inconsistency in the reported review dates. The peer review must occur after the organizer had For the Permit Fact Sheet associated with Permit No. SAWPA/WMWD P.SW.1 E3089-2,it appears that the peer review was performed on D prepared the document and should take place within a 7/7/14,almost one year before the organizer signed and reasonable time afterwards. dated the document on 6/18/15. Timeline to address deficiency:1 month. Lack of metrics for issuing permits. Metrics for issuing permits should include goals for adherence to the SAWPA developed Permitting SOP Metrics are used to drive improvements and help and a timeframe to issue and renew permits as well all organizations focus their people and resources on the most to perform all required intermediate steps. Overall, SAWPA P.S.2 E metrics should reflect and support the various important tasks.SAWPA has not adopted performance strategies for all aspects of the organization including metrics to indicate the priorities of the organization and to standards and OCSD requirements and expectations for provide a measurement of performance in the preparation of permits. the issuance of permits. Timeline to address observation:3 months. Missing step in Permitting SOP on coordination with OCSD. Permit SOP 070120155 should be modified to include a Permit SOP 070120155 is missing a step in the permitting step in the permitting process to verify that OCSD's SAWPA P.5.3 process to verify that OCSD's comments are addressed D comments are addressed before it is issued. before it is issued. Timeline to address deficiency:2weeks. Missing step in Permitting SOP on coordination with MA Permit SOP 070120155should be modified to include a and CA. step that SAWPA should relay all OCSD permit Permit SOP 070120155 is missing a step for SAW D P to relay comments back to the permit developing agency to SAWPA P.5.4 all OCSD permit comments back to the permit developing ensure that the permit agency would includethese agency to ensure that the permit agency would include changes in all future permits and fact sheets. these changes in all future permits and fact sheets. Timeline to address deficiency:2 weeks. Insufficient time for preparing permits. Section 6 of Permit SOP 070120155 should be modified SAWPA is not giving itself sufficient time to prepare permits to include a step that contains a requirement that the SAWPA P.S.5 for situations where a Member or Contract Agency E draft permit and draft permit fact sheet should be representative prepares the draft permit and draft permit submitted to SAWPA at least 60 days prior to the fact sheet.Permit SOP 070120155 states that the permit current permit expiration date.Similar numbers of days 55 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Obser natlons Rating Recommendations application must be received at least 90 days prior to the prior to the current permit expiration date could also permit expiration date. be inserted into the Permit SOP(File 17)for the transmission of the reviewed draft permit and draft fact sheet from the SAWPA Manager to OCSD and the comments from OCSD back to SAWPA. Timeline to address observation:1 month.. Missing requirement in Permit template. The section VII G,in the CIU-Permit-Template- Section VII G,in the CIU-Permit-Template- SAWPA_FINALRev4-1218 2014should be modified to SAWPA P.S.6 SAWPA_FINALRev4-12182014 is missing a requirement for D include a requirementfor"engineering calculations"in 423 permits. "engineering calculations"in 423 permits. Timeline to address deficiency:2 weeks. Deficiencies in the Inland Empire Energy Center Permit. In the Inland Empire Energy Center Final Permit,the following omissions were noted: a. In Sections III and IV(Outfalls and Description of Monitoring Points)the photographs included in the permit fact sheet(File 10)should have been included in the final permit file(File 9)and referred to in these sections. The Inland Empire Energy Center Final Permit should be b. In Section VI.B.7,the reference to a semiannual SAWPA P.5.7 D revised to address all listed observations. certification should be removed from the permit. C. Attachment C should be modified to comply with Timeline to address deficiency:1 month. federal requirements.(See Note 7 above). d. The permit fact sheet(File 10)Section 13.1.1b, indicates that the Permittee's wastewater will be analyzed for alkalinity,dissolved calcium, orthophosphate and Total Calcium semi-annually by the EMWD. These parameters are not referred to in the final permit. Deficiencies in the Temescal Desalter Permit. The Temescal Desalter Permit should be modified to In the Final Temescal Desalter Permit,the following address all listed observations.Same observations observations were noted: a. In Table 1 the first column,pH units are noted as should also be addressed in the Self-Monitoring Report SAWPA/EMWD P.SE.B mg/L instead of Standard Units(SU's). D Form and the SIU Permit Template. (This comment also b. In Section VILC(Continuous Monitoring),the generally refers to all relevant permit and permit permittee is required to continuously monitor the template files.) pH. Reporting requirements in Section IX do not Timeline to address deficiency:1 month. 56 2015 Internal SAW PA Pretreatment Program Audit Report Agency Number Observations Rating Recommendations require the submission of any pH results except on the day the samples are collected. However,all of the flow measurement data is required. Surely the continuous pH data should also be required. c. In the Self-Monitoring Report Form,there is no indication that the darkened rows are not to be sampled. Surely these rows could be deleted from the report form. d. The permit fact sheet(File 6)Section B.Lb, indicates that the Permittee's wastewater will be analyzed for alkalinity,dissolved calcium, orthophosphate and Total Calcium semi-annually by EMWD. These parameters are not referred to in the final permit Deficiencies in the Metal Container Corporation Permit. In the Metal Container Corporation Final Permit,the following items were not fully resolved to the satisfaction of this audit: a. It is not clear how the sampling and monitoring equipment is connected to the spigot monitoring point 001 for composite sample semiannual local limit and composite sample quarterly categorical standard monitoring. b. The permit fact sheet states in Section Bl that monitoring point 002 is a manhole which can be The Metal Container Corporation Permit should be SAWPA/JCSD P.5J.9 monitored for flow using a bubbler flow meter. D modified to address all listed observations. However it is also stated that samples are Timeline to address deficiency:I month. collected at monitoring point 001 but the description of monitoring point 001 is not specifically described as a spigot as it is in the permit. The attachments show that monitoring point 001 is a spigot and 002 is a monitoring manhole reserved for billing purposes only. c. Asampling form(typically required forcomplex sampling),with sampler details,is missing.A completed form as part of the reporting requirement is not included in Section IX A of the 57 2015 Internal SAW PA Pretreatment Program Audit Report Agency Number Observations Rating Recommendations permit. d. Exact details requiring how the permittee should calculate this number of cans is not included in the permit but is rather casually referenced in permit Section VI B 5 and Section VIII B to provide the gallons/1000 can data. e. The permit does not contain a formula combined with specific instructions to aid the permittee in converting the mg/L concentration of the individual pollutants in the sample to grams per million cans produced. In Table 1A,the first column pH units should be reported as being in Standard Units(SU's),not in mg/L as the column implies.This should also be included in the Self- Monitoring Report Form and the CIU Permit Template(File 2). Deficiencies in the Western Municipal Water District Collection Station Permit. In the Western Municipal Water District Collection Station Permit,the following deficiencies were noted: a. In Section IX H (Facility Waste Management Plan) of the permit file,the introductory sentences state that the permittee is both required and not required to develop this plan. This error has arisen from the permit template file which gives the The Western Municipal Water District Collection permit writer the option to delete the incorrect Station Permit should be modified to address all listed SAWPA/WMWD P.SW.10 statement which was omitted in this case. D ns. b. The template file correctly lays out the Timeline ohservatioio address deficiency: month. requirements for various plans to either be required or not required by the permittee in Section IX H. The permit writer must delete the unnecessary parts. c. In the permit fact sheet file,all plans 1 through 5 are not required but nonetheless,details of plans that are not required are still included in the permit thus increasing the length of the permit with unnecessary verbiage. (This comment 58 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Observations Rating Recommendations appears to be fairly universal to all reviewed permits.) d. In the second column Table 1,the Self-Monitoring Report Form and the IU Permit Template,the pH unit is reported as being in mg/I instead of Standard Units(SU's). e. In the self-monitoring report form,the words "Applicable Limit"in columns 2 and 3 were used instead of"Local Limit". Extending the validity period of all IU permits SAWPA is encouraged to extend the validity period of Consideration is being given for extending the validity its IU permits after ensuring that the authority for such SAWPA P.S.11 period of all of SAWPA's IU permits to 3 years and,possibly, B a program modification is stemming from its ordinance to 4years.This would be advantageous in spreading the and after coordination with OCSD and SAWPA's burden associated with permit review and renewal. Member Agencies and Contract Agencies. SAWPA is encouraged to develop and maintain a list of Developing and maintaining a list of recurring errors in IU all errors and omissions in permits that are identified permits through SAWPA's internal review, review by SAWPA's SAWPA P.S.12 Recurring errors were observed in multiple permits. Most E Member Agencies and Contract Agencies and review by probably,this is due to errors and omissions in old permits OCSD. Prior to releasing a permit for review,SAWPA surfacing at the time of permit renewal. would check the permit against the list of errors and omissions.Time to address observation:2 weeks. Conducting regular teleconferences and meetings organized by SAWPA SAWPA conducts bi-weekly teleconferences and bi-monthly face-to-face meeting with all agencies to discuss all Brine Line activities including,but not limited to,permitting, SAWPA P.S.13 inspection,monitoring,and enforcement. Adetailed B SAWPA is encouraged to continue this activity. spreadsheet is also maintained covering all Brine Line permits with application deadlines,expiration dates,and contact information closely tracked. This spreadsheet is redistributed at each meeting so that all agencies are up to date on permitting issues. Key: EMWD=Eastern Municipal Water District SAWPA=Santa Ana Watershed Project Authority ERP=Enforcement Response Plan SBVM W D=San Bernardino Valley Municipal Water District 1CSD=Jurupa Community Services District WMWD=Western Municipal Water District 59 2015 Internal SAWPA Pretreatment Program Audit Report Table 3-2, Enforcement Observations and Recommendations Agency Number Observations Rating Recommendation Inconsistency in the correspondence with Permittees. In the case of the Chino I Desalter accidental discharge report,the All permits must clearly specify who the Permnittee should address the initial and update reports were addressed to the Senior SAWPA E.5.1 E correspondence to.This would insure Pretreatment Program Specialist whereas the follow up biweekly consistency in dealing with the Permittees. reports were address to the Manager of Permitting and Timeline to address observation:2 months. Pretreatment. Lack of metrics for carrying out enforcement. Metrics for carrying out enforcement should include goals for a strict adherence to the Metrics are used to drive improvements and help organizations Enforcement Response Plan SOP and timing. focus their people and resources on the most important tasks. Overall, metrics should reflect and support the SAWPA E.S.2 E various strategies for all aspects of the SAWPA has not adopted performance metrics to indicate the organization including standards and OCSD priorities of the organization and provides measurement of requirements and expectations for performance in carrying out enforcement. enforcement. Timeline to address observation:3 months. Timeliness and accuracy of incident reporting. For the Chino Basin Desalter Authority discharge violation,CDA submitted a written report dated August 8,2014 thus meeting the SAWPA should review its internal processes to SAWPA requirement deadline of August 10,2014. Thecopyofthe expedite the processing and to ensure report seen by this audit and subsequently submitted to OCSD showed thorough review of important documents. SAWPA E.5.3 that it was received and stamped by SAWPA on August 14,2014. Asix D Timeline to address deficiency:3 months. day lag between the report date and the received date appears to be excessive.Furthermore,he report outlined the evems leading up to the leak but failed to mention that the seals in the lateral were probably the source of entry of the acid as described to the inspector three days before the date the report was written. Ineffective addressing of NOV for SunOpta. NOV issued to SunOpta should have been EEIprolblem divided into two documents,one dealing with NOV issued to SunOpta containstoo much unrelated information. E the MPIO requirements and signed by SBMWD SunOpta responded on August 15,2015 and described the copper and the other dealing with the SNC in detail and confirmed that the installation of the new determination and signed by both SAWPA and 60 EEC 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Observations Rating Recommendation Purolite S930 filter in the water softening equipment had solved the SBMWD.SAWPA should review its internal copper problem. They further informed SBMWD that they would processes and make modifications to prevent fully comply with the requirements of the second MPIO. repeat in the future. Timeline to address observation:3 months. Documentation of the results of required sampling events and the satisfaction or Lack of documentation of closure of NOV to SunOpta. completion of the enforcement orders following SNC should be readily available for SAWPA/ Regarding NOV issued to SunOpta,no documentation ofthe results review to demonstrate that such actions were SBMWD E.SS.S of the required six sampling events and no final documentation of D carried out.SAWPA should review its internal processes and make modifications to ensure the satisfaction or completion of the enforcement orders were that all SNC follow-up actions are carried out available for review. in a timely manner and in accordance with the ERP. Timeline to address deficiency:3 months. Failing to follow ERP procedure in the issuance of NOV to the Western Riverside County Regional Wastewater Authority South Regional Pump Station. Regarding the NOV issued to the Western Riverside County Regional SAWPA should ensure that staff follow the ERP SAWPA E.S.6 Wastewater Authority South Regional Pump Station,Table 3 ofthe D and carry out prescribed actions in atimely ERP requires Slug Load Discharges for the first time with no harm to manner. the Brine Line to be responded to with a Cease and Desist Order to Timeline to address deficiency:3 months. be issued within 30 days for unspecified violations. SAWPA did not followthe ERP in this case by both the action required and the timeliness of the action. This audit recommends that SAWPA develops "template"documents for each of these Variation of procedures in carrying out minorviolations by the enforcement procedures and requires the various SAWPA agencies Agencies to use them.This would increase the SAWPA E.S.7 D efficacy of SAWPA's lP Program and make There is a level of inconsistency in the procedures for carrying out editing quick and relatively easy.The minorviolations amongthe SAWPA Member Agencies and Contract development of documents covering a single Agencies. enforcement activity will also be easier to read and understand by the noncompliant IUs. Timeline to address deficiency:3 months. 61 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Observations Rating Recommendation Conducting bi-annual audits by SAWPA SAWPA E.S.8 SAWPA conducts an audit of all agencies bi-annually covering B SAWPA is encouraged to continue this activity. various program activities including permitting,inspection, monitoring,and enforcement. Creation of SOPS by SAWPA SAWPA has created detailed SOPS for its iPACS data management SAWPA is encouraged to maintain the SOPS SAWPA E.S.9 system including permitting,monitoring,inspection,and B and update them as appropriate. enforcement.All agencies have undergone training on these SOPS and are utilizing the accompanying guides for uploading documents into the system. Key: SAWPA=Santa Ana Watershed Project Authority SBVM W D=San Bernardino Valley Municipal Water District 62 2015 Internal SAWPA Pretreatment Program Audit Report Table 3-3,Inspection Observations and Recommendations Agency Number Observation Rating Recommendation Metrics for inspections should include goals to perform inspections in a timely manner in accordance with,at a Lack of metrics for performing inspections. minimum,the regulatory requirements and to issue the inspection reports and Metrics are used to drive improvements and help organizations focus their complete any required subsequent SAWPA I.S.1 people and resources on the most important tasks.SAWPA has not adopted E tasks in a timely manner.Overall, performance metrics to indicate the priorities of the organization and to metrics should reflect and support the provide a measurement of performance in performing inspections. various strategies for all aspects of theorganization including standards and OCSD requirements and expectations for performing inspections. Timeline to address observation:3 months. Effective use of WACS for scheduling and documenting inspections. SAWPA I.S.2 SAWPA has acquired!PACs and is utilizing it effectively to generatethe g SAWPA to continue its use of!PACs in schedule for inspections to enter the results of the inspections. support of its inspection program. Key: SAWPA=Santa Ana Watershed Project Authority 63 2015 Internal SAWPA Pretreatment Program Audit Report Table 3-4, Monitoring/Sampling Observations and Recommendations Agency Number Observations Rating Recommendation Metrics for monitoring and sampling should include goals to perform monitoring and sampling Lack of metrics for monitoring and sampling. in a timely manner in accordance with,at a minimum,the regulatory Metrics are used to drive improvements and help organizations focus requirements.Overall,metrics SAWPA M.S.1 their people and resources on the most important tasks.SAWPA has should reflect and support the not adopted performance metrics to indicate the priorities of the E various strategies for all aspects of organization and to provide a measurement of performance in the organization including performing monitoring and sampling. standards and OCSD requirements and expectations for performing inspections. Timeline to address observation:3 months. Omissions in the C.C.Graber Company permit and report. The C.C.Graber Company permit should be revised to add the The C.C. Graber Company monitoring location is not identified in the monitoring location,the TSS limit SAWPA/IEUA M.SI.2 permit. Furthermore, the TSS limit is not mentioned in the permit. In D and the words"no limit"where the Daily Limit(Max)column,the words"no limit"are missing from the applicable. column for all pollutant parameters to which this applies. Timeline to address deficiency: 1 month. Omissions in the Temescal Desalter monitoring report. The Temescal Desalter permit should be revised to include the Monitoring and sampling reporting for the Temescal Desalter is monitoring location and the words complete in the quarterly report except that the monitoring location is "no limit"where applicable. SAWPA M.5.3 not identified and the majority of entries in the Daily Limit (Max) D Timeline to address deficiency: 1 column are left blank rendering compliance verification impossible. In month. the Daily Limit(Max)column,the words"no limit"are missing from the column for all pollutant parameters to which this applies. Omissions in the Inland Empire Energy Center report and permit. The inclusion of a column showing SAWPA M.S.4 the monitoring location for each D sample and the complete The monitoring and sampling reporting for the Inland Empire Energy submission of Daily limit(Max) Center do no identify monitoring locations and most of the Daily Limit entries are therefore essential 64 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Observations Rating Recommendation (Max)entries are missing except in the self monitoring report. The changes that should be made to quarterly report as such makes it impossible to determine where each the report. It is also suggested sample was taken and whetherthe sample was in compliance or not. that the words"no limit"be inserted in the Daily Limit(Max) column for all applicable parameters. Timeline to address deficiency: 1 month. Omissions in the Metal Container Corporation report and permit. Distinction between Local Limits and Categorical Pretreatment For Metal Container Corporation, the self-monitoring and reporting Standards should be made. and the monitoring and sampling reported by JCSD do not distinguish between Local Limits and Categorical Pretreatment Standards. Most of the Daily Limit (Max) entries are missing except for the SMR. Ensure that production based For a CIU where Categorical Limits are production based,the reported calculations are performed and SAWPA/ concentrations of the limits in mg/L are of no use for compliance that results of these calculations 1CSD M.S1.5 calculations until the Categorical calculations are completed. The D are recorded in the quarterly results of these calculations are not recorded in the quarterly report report with the Categorical Limits together with the Categorical Limits in the Daily and Monthly(Max and in the Daily and Monthly(Max and average)columns. Average)columns. The permit should be revised to In the Daily Limit (Max)column,the words"no limit" are missing from include the words"no limit"where the column for all pollutant parameters to which this applies. applicable. Timeline to address deficiency: 1 month. Deficiencies in quarterly reports. Ensure that all quarterly reports are complete and don't lack data In general, quarterly reports are deficient both in extra data required on Daily Limit(Max column SAWPA M.S.6 (e.g. monitoring locations) and lack of data entered (Daily Limit (Max) D entries)or any other parameters. column entries). Also, included in the results were omissions of Timeline to address deficiency:3 required sampling, a few errors of reporting data and a wide variation months. between the reports from the different agencies. SAWPA M.S.7 Effective use of iPACS. B 65 2015 Internal SAWPA Pretreatment Program Audit Report Agency Number Observations Rating Recommendation SAWPA has acquired iPACS and is utilizing it effectively to generate SAWPA to continue its use of sampling and monitoring tasks and as a repository for its water quality iPACS in support of its sampling data. and monitoring activities. Key:EMW D=Eastern Municipal Water District IEBL=Inland Empire Brine Line SAWPA=Santa Ana Watershed Project Authority SBVMWD=San Bernardino Valley Municipal Water District 66 2015 Internal SAWPA Pretreatment Program Audit Report 4.0 CONCLUSION Overall, SAWPA is to be commended for significantly improving its pretreatment program. The major improvement in SAWPA's pretreatment program is the creation of its own pretreatment department and employing staff with technical and regulatory proficiency and capable of establishing good working relationships with OCSD as well as with SAWPA's Member and Contract Agencies. In addition to the Executive Manager of Engineering and Operations who oversees SAWPA's pretreatment program, SAWPA's staff currently includes a Manager of Permitting and Pretreatment, a Senior Pretreatment Program Specialist and a Project Manager in charge of iPACS. SAWPA has already implemented major improvements at all levels of its pretreatment program. Currently, SAWPA manages all aspects of its pretreatment program rather than delegating permitting, monitoring, and enforcement to its member or contract agencies. This arrangement gives SAWPA the necessary control of its pretreatment program. With SAWPA addressing all deficiencies and observations identified during the audit, and revising template documents in order to ensure flawless operations at all levels especially in Permitting and Enforcement, SAWPA would bring further improvement to its pretreatment program. The time period allocated to addressing each observation and deficiency was estimated based on the auditors' experience and must be adhered to as much as possible. If for some extenuating circumstances, SAWPA finds that the assigned timeline is impossible to meet due to the current load on its staff, an alternative timeline, giving high priority to the identified deficiencies,should be discussed with OCSD. In particular, data management was improved at SAWPA yielding a higher level of work transferability between SAWPA and OCSD. Traceability to facilitate quality checking was also improved. These improvements were possible through SAWPA's acquisition and implementation of iPACS. The Internet- based iPACS System allows SAWPAto centrally manage all aspects of its pretreatment program including workflow management and tracking and sharing documents. Furthermore, SAWPA has adopted a uniform permit fact sheet and permit format that addresses all applicable requirements in the federal and state regulations, in OCSD's ordinance, in the 1991 MOU,and in the 1996 Agreement requirements and is in the process of converting a few remaining permits. The practice of an agency issuing permits to itself for the control and monitoring of its LWH Collection Station, its desalters or its emergency bypass permits has ceased. All permits are signed by SAWPA or co-signed with another member or contract agency. SAWPA has developed SOPS for its iPACS data management system including procedures for permitting, enforcement, inspection and monitoring/sampling. Representatives from all member and contract agencies were trained on the SAWPA SOPS and are following the SOP-accompanying guides for uploading documents and data. Overall, the risks to OCSD for allowing SAWPA to run the SAWPA Pretreatment Program have been greatly reduced. The risks to OCSD would remain curtailed as long as the cooperation between OCSD and SAWPA continues and with OCSD fulfilling its role of the Control Authority conducting periodic pretreatment compliance audits and inspections. Audits and inspections by OCSD are essential for ensuring that SAWPA's pretreatment program implementation is consistent with all applicable federal regulations and OCSD's requirements, is effective in providing the necessary protection to OCSD's treatment system, to the Groundwater Replenishment System and to OCSD's current sludge disposal practices and in allowing OCSD to maintain compliance with its NPDES permit. 67 2015 Internal SAWPA Pretreatment Program Audit Report In the spirit of continuous improvement and help SAWPA focus its staff and resources on the highest priorities, EEC highly recommends that SAWPA develops performance metrics and has therefor dedicated an entire section (Section 3.5) in the report herein to Metrics and provided some suggestions to help SAWPA develop metrics for Permitting, Enforcement, Inspection and Monitoring/Sampling. In order to derive the most benefit from metrics, it is important to keep them simple. Employees need to understand the metric, how they can influence it and what is expected of them. 68 2015 Internal SAWPA Pretreatment Program First Progress Report January 5,2016 FIGURES W2944.01 B-1 EEC SOURCE: Santa Ana River Watershed Santa Ana Watershed Mojave Desert Location Map Project Authority - Lake San Gabriel Mountains s a e_a-�atc San Bernardino Nountains ILI �Uplantl Rancho Cucamonga e _ � FOMene s Dialdlu'ti Cotton _ 1 Retlia r nr O ��l '�Bea r yucalpa m n m a -County t , - , 'b �• p r — .., df-L Diamond Bar nm- m kk Chino � i � R ersrtle Oqunty� - O �( min cY re � / j � �'� . � w l%i• i t•f+� r •r' P", .. �>A� • Las Angeles County Santa Ana RO . j"��F I �l �h Yi i, said On' IRiversideY Orange County I Norco � r _ 0• - 0• i 11§n% r ALI Yorhe Linda i,Pia do SAWPA Moreno Vaue9/ Placentia Lake ., yw pL O Mathews Loke f' +• nahel Corona�. �� Oeg. Perris jr °"- . 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Santa Ana Watershed Authority Project Treatment 't � � -��' �'.'. � 1 � Pretreatment Program Compliance Audit oy1 Inland Empire Brine Line Ocean Discharge and Connections Ocean Pacific - ` � Ocean P,ui°cI Num�i F, Mies W-2422-01T '°"° ntliep1°' 0 2T5 6,5 n - it Dale rFlpure o PApmjects\standard_maps\san_system_i_A.mkd SW-1154 January 5,2016 PEMG PM DR NS NS SAWPA SOURCE: SAW PA Santa Ana Watershed Project Authority Mo;aveDesert Member Agencies �t Lake San Gabiiel Mountains '- SlNerwood Lake Arrowhead deig Bear_a'rce < �. San Bernardino Mountains ' • San Bernardino U Ian Rancho amonga '':F •. _ Highlanc Fontana mc�k C s SBVMWD, v� IEUA � • •Re9W i <'. • Chino r Diamonds -�. camo�cr ro � Santa Ana Watershed Boundary , � rlidit il, s androm ,✓n ';1�/'. t1^pt Norco r mba L nay Pin Fla-emi � WMWD • - e ,. V r abet I - EMWD OCWD o Perris Dean s. . Santa Ana Mountains � o ./F estminste ` San Jacinto W � c° O ueEt�f �ys'Z �' ! - _ ^c t- �. /� ,r';?. /�9�N4t; !e • ( w - _ San Jacinto Mounts Huntington Beach �� Newport Beach Irvine ., ENVIRONMENTAL Pacific Ocean e. Santa Ana Watershed Authority Project Pretreatment Program Compliance Audit A Santa Ana Watershed Notes: w' E Project Authority EMWD=Eastern Municipal Water District �/ Member Agencies IEUA=Inland Empire Utilities Agency 5 OCWD=Orange County Water District waters numoa, rue numce, SBVMWD=San Bernardino Valley Municipal Water District 45 g 18 ties W24220tT ' , WMWD=Western M unicipaI Water District // D0e Piuraeuu..w� Fig um A.mxd SW-1152 January 5,2016 PEMc Pal DR NS NS --WPA Appendix A OCSD Wastewater Discharge Regulations Ordinance No. OCSD-39 ORDINANCE NO. OCSD-39 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ESTABLISHING WASTEWATER DISCHARGE REGULATIONS,REVISING ARTICLE 1, SECTION 104, AND REPEALING ORDINANCE NO. OCSD-37 The Board of Directors of the Orange County Sanitation District (OCSD) does hereby FIND: A. That a comprehensive 30-year Master Plan of Capital Facilities, entitled "Collection, Treatment and Disposal Facilities Master Plan — 1989", hereinafter referred to as the "Master Plan", which includes detailed financial and engineering reports, was prepared, approved, and adopted by the Boards of Directors of the Predecessor Districts in 1989, setting forth and identifying the required future development of OCSD Facilities, including the financial projections for providing sewer service to all properties within the individual service areas of each of the nine Predecessor Districts; and, B. That the financial and engineering reports of the Master Plan were made available to the public, both prior to and subsequent to the adoption of the Master Plan, and were subject to noticed public hearings, all in accordance with the provisions of the California Constitution and Government Code Section 66016, and other provisions of law; and, C. That the OCSD, in 1997, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive Master Plan of Capital Facilities, which was approved and adopted by OCSD Resolution No. 99-21 of the Board of Directors on October 27, 1999; and, D. That in June 2002 the OCSD completed the Interim Strategic Plan Update (ISPU) which further updated these critical factors and developed revised cost estimates and user fee projections for upgrading the OCSD's level of treatment to secondary standards. On July 17, 2002, after reviewing: (1) the ISPU treatment alternatives, (2) ocean monitoring data, (3) public input, (4) regulatory issues, and (5) financial considerations, the Board of Directors made the decision to upgrade our treatment to meet secondary treatment standards; and, Page 1 of 80 E. That the OCSD is required by federal and state law, including the Clean Water Act (33 U.S.C. 1251, et sea.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (Water Code Sections 13000 at sea.), to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers; and, F. That the OCSD is required by federal, state and local law to meet applicable standards of treatment plant effluent quality; and, G. That the adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a) and categorically exempt pursuant to California Code of Regulations Sections 15307 and 15308. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I: Wastewater Discharge Regulations governing the use of OCSD sewerage facilities are hereby enacted to provide: ARTICLE 1 GENERAL PROVISIONS 101. PURPOSE AND POLICY This ordinance sets uniform requirements for Users of OCSD's facilities and enables OCSD to comply with all applicable State and Federal laws, including the Clean Water Act (33 United States Code [U.S.C.] section 1251 at seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations [CFR] Part 403). This Ordinance shall be interpreted in accordance with the definitions set forth in Section 102. The provisions of the Ordinance shall apply to the direct or indirect discharge of all liquid wastes carried to facilities of the OCSD. A. The purpose of this Ordinance is to provide for the maximum public benefit from the use of the OCSD facilities. This shall be accomplished by regulating sewer use and wastewater discharges, by providing equitable distribution of costs, in compliance with applicable Federal, State and local Regulations, and by supporting the proper disposal of Prescription Drugs as noted in the guidelines published by the Office of National Drug Control Policy. The revenues to be derived from the application of this Ordinance shall be used to defray all costs of providing sewerage service by the OCSD, including, but not limited to, administration, operation, monitoring, Page 2 of 80 maintenance, financing, capital construction, replacement and recovery, and provisions for necessary reserves; B. This ordinance is meant to protect both OCSD personnel who may be affected by wastewater, sludge, and biosolids in the course of their employment and the general public; C. To comply with Federal, State, and local policies and to allow the OCSD to meet applicable standards of treatment plant effluent quality, biosolids quality, and air quality, provisions are made in this Ordinance for the regulation of wastewater discharges to the public sewer. This Ordinance establishes quantity and quality limits on all wastewater discharges which may adversely affect the OCSD's sewerage systems, processes, effluent quality, biosolids quality, air emission characteristics, or inhibit the OCSD's ability to beneficially reuse or dispose of its treated wastewater, biosolids or meet biosolids discharge criteria. It is the intent of these limits to improve the quality of wastewater being received for treatment and to encourage water conservation and waste minimization by all users connected to a public sewer. It is the OCSD's intent to limit future increases in the quantity (mass emission) of waste constituents being discharged. This Ordinance also provides for regulation of the degree of waste pretreatment required, the issuance of permits for wastewater discharge and connections and other miscellaneous permits, and establishes penalties for violation of the Ordinance. D. Since the OCSD is committed to a policy of wastewater reclamation and reuse in order to provide an alternate source of water supply, the implementation of programs for reclamation through secondary and tertiary wastewater treatment processes may necessitate more stringent quality requirements on wastewater discharges. In the event that more stringent quality requirements are necessary, the Ordinance will be amended to reflect those changes. E. Since the OCSD is committed to a policy for the beneficial use of biosolids, the implementation of programs to land-apply or provide for the marketing and distribution of biosolids may necessitate more stringent quality requirements on wastewater discharges. F. Since the OCSD is also committed to meet applicable air quality goals established by the South Coast Air Quality Management OCSD, more stringent quality requirements on wastewater discharges may be required to meet such goals. 102. DEFINITIONS Page 3 of 80 A. Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of Water and Wastewater, published by the American Public Health Association, the American Water Works Association and the Water Pollution Control Federation. The testing procedures for waste constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations; Title 40; Protection of Environment; Chapter I, Environmental Protection Agency; Part 136, Test Procedures for the Analyses of Pollutants), or as specified. Other terms not herein defined are defined as being the same as set forth in the International Conference of Building Officials Uniform Building Code, Current Edition. 1. Best Management Practices (BMPs) shall mean schedules of activities, prohibitions of practices, maintenance procedures, operating procedures, practices to control spillage or leaks, treatment requirements, and other management practices to prevent or reduce pollution or to meet Article 2 standards. 2. Biochemical Oxygen Demand (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a wastewater sample. It is used as a measurement of the readily decomposable organic content of wastewater. 3. Board shall mean the Board of Directors of the Orange County Sanitation District. 4. Bypass shall mean the intentional diversion of wastestreams from any portion of an industrial user's treatment facility. 5. Capital Facilities Connection Charge shall mean the payment of a fee, imposed by the governing Board of the OCSD, to pay for the future costs of constructing new sewerage collection, treatment, and disposal facilities; and as a contributive share of the cost of the existing facilities. This charge shall be paid by all property owners at the time they develop the property and connect directly or indirectly to the OCSD sewerage facilities as a new system user. This charge, whose rates areas set forth in a separate Ordinance, is expressly authorized by the provisions of California Health & Safety Code Sections 5471 and 5474. 6. Charge For Use shall mean the OCSD's sanitary sewer service Page 4 of 80 charge, a charge established and levied by the OCSD upon residential, commercial and industrial users of the OCSD's system, pursuant to Sections 302.6(F)2, or 303.6(F)2 of this Ordinance, in proportion to the use of the treatment works by their respective class, that provides for the recovery of the costs of operation and maintenance expenses, capital facilities rehabilitation or replacement, and adequate reserves for the sewage treatment works. The minimum charge for use is the Annual Sewer Service Fee Residential Users 7. Chemical Oxygen Demand (COD) shall mean a measure of the oxygen required to oxidize all compounds, both organic and inorganic, in wastewater. 8. Class I User shall mean any user who discharges wastewater that: a) is subject to Federal Categorical Pretreatment Standards; or b) averages 25,000 gallons per day or more of regulated process wastewater; or c) is determined to have a reasonable potential for adversely affecting the OCSD's operation or for violating any pretreatment standard, local limit, or discharge requirement; or d) may cause, pass through or interference with the OCSD sewerage facilities 9. Class II User shall mean any industrial user whose charge for use is greater than special assessment "OCSD Sewer User Fee" included on the County of Orange secured property tax bill exclusive of debt service, that discharges wastes other than sanitary, and that is not otherwise required to obtain a Class I permit. 10. Code of Federal Regulations (CFR) shall mean the codification of the general and permanent regulations published in the Federal Register by the executive departments and agencies of the Federal Government. 11. Compatible Pollutant shall mean a combination of biochemical oxygen demand, suspended solids, pH, fecal coliform bacteria, plus other pollutants that the OCSD's treatment facilities are designed to accept and/or remove. Compatible pollutants are non-compatible when discharged in quantities that have an adverse effect on the Page 5 of 80 OCSD's system or NPDES permit, or when discharged in qualities or quantities violating any Federal Categorical Pretreatment Standard, local limit, or other discharge requirement. 12. Composite Sample shall mean a collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the sample period. 13. Connection Permit shall mean a permit issued by the OCSD, upon payment of a capital facilities connection charge, authorizing the permittee to connect directly to a OCSD sewerage facility or to a sewer which ultimately discharges into a OCSD sewerage facility. 14. Control Authority shall mean the Orange County Sanitation District. 15. Department Head shall mean that person duly designated by the General Manager to direct the Technical Services Department, including the Source Control Division and perform those delegated duties as specified in this Ordinance. 16. Discharger shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. 17. District shall mean the Orange County Sanitation District. 18. Division Head shall mean that person duly designated by the General Manager to implement the OCSD's Source Control Program and perform the duties as specified in this Ordinance. 19. Domestic Septage shall mean the liquid and solid material removed from a septic tank, cesspool, portable toilet, Type III marine sanitation device, or similar treatment works that receives only domestic wastewater. 20. Domestic Wastewater shall mean the liquid and solid waterborne wastes derived from the ordinary living processes of humans of such character as to permit satisfactory disposal, without special treatment, into the public sewer or by means of a private disposal system. 21. Downstream Sampling or Monitoring shall mean sampling or monitoring usually conducted in a city or agency owned sewer for the purpose of determining the compliance status of an industrial or Page 6 of 80 commercial discharger. 22. Dry Weather Urban Runoff shall mean surface runoff flow that is generated from any drainage area within OCSD's service area during a period that does not fall within the definition of Wet Weather. It is surface runoff that contains pollutants that interfere with or prohibit the recreational use and enjoyment of public beaches or cause an environmental risk or health hazard. 23. Enforcement Compliance Schedule Agreement (ECSA) shall mean a mutual agreement between the OCSD and permittee requiring implementation of necessary pretreatment practices and/or installation of equipment to ensure permit compliance. 24. Federal Categorical Pretreatment Standards shall mean any regulation containing pollutant discharge limits promulgated by the U.S. EPA in accordance with Sections 307(b) and (c) of the Clean Water Act (33 U.S.C. 1317) which apply to a specific category of industrial users and which appear in 40 CFR Chapter I, Subchapter N, Parts 405-471. 25. Federal Regulations shall mean any applicable provision of the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, Title 33, United States Code, Section 1251 and following, and any regulation promulgated by the United States Environmental Protection Agency under Title 40 CFR implementing that act. 26. Flow Monitoring Facilities shall mean equipment and structures provided at the user's expense to measure, totalize, and/or record, the incoming water to the facility or the wastewater discharged to the sewer. 27. General Manager shall mean the individual duly designated by the Board of Directors of the OCSD to administer this Ordinance (REFER TO SECTION 107). 28. Grab Sample shall mean a sample taken from a waste stream on a one-time basis without regard to the flow in the waste stream and without consideration of time. 29. Industrial User shall mean any user that discharges industrial wastewater. 30. Industrial Wastewater shall mean all liquid-carried wastes and Page 7 of 80 wastewater of the community, excluding domestic wastewater and domestic septage, and shall include all wastewater from any producing, manufacturing, processing, agricultural, or other operation. 31. Insoector shall mean a person authorized by the General Manager to inspect any existing or proposed wastewater generation, conveyance, processing, and disposal facilities. 32. Interference shall mean any discharge which, alone or in conjunction with a discharge or discharges from other sources, either: a) inhibits or disrupts the OCSD, its treatment processes or operations, or its biosolids processes, use, or disposal; or b) is a cause of a violation of any requirement of the OCSD's NPDES permit or prevents lawful biosolids or treated effluent use or disposal. 33. LEL (Lower Exolosive Limit) shall mean the minimum concentration of a combustible gas or vapor in air (usually expressed in percent by volume at sea level) which will ignite if an ignition source (sufficient ignition energy) is present. 34. Local Sewering Agency shall mean any public agency or private corporation responsible for the collection and disposal of wastewater to the OCSD's sewerage facilities duly authorized under the laws of the State of California to construct and/or maintain public sewers. 35. Me or Violation shall mean a discharge over the permitted discharge limit, as determined by the result of a composite sample analysis, as follows: a) a discharge exceeding a mass emission limit by 20% or more, or b) a discharge exceeding a concentration limit by 20% or more, or c) a pH discharge less than 5.0. 36. Mass Emission Rate shall mean the weight of material discharged to the sewer system during a given time interval. Unless otherwise specified, the mass emission rate shall mean pounds per day of a Page 8 of 80 particular constituent or combination of constituents. 37. Maximum Allowable Discharge Limit shall mean the maximum quantity or concentration of a pollutant allowed to be discharged at any period of time. 38. May shall mean permissive or discretionary. 39. Medical Waste shall mean the discharge of isolation wastes, infectious agents, human blood and blood byproducts, pathological wastes, sharps, body parts, fomites, etiologic agents, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. 40. Milligrams Per Liter (mg/L) shall mean a unit of the concentration of a constituent or compound that is found in water or wastewater. It is 1 milligram of the constituent or compound in 1 liter of water or wastewater. 41. Minor Violation shall mean a discharge over the permitted discharge limit as determined by the result of a composite sample analysis, as follows: a) a discharge exceeding a mass emission limit by less than 20%, or b) a discharge exceeding a concentration limit by less than 20%, or c) a pH discharge equal to or greater than 5.0, but less than 6.0, or d) a pH discharge greater than 12.0. 42. North American Industry Classification System (NAICS) shall mean an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. 43. National Pollutant Discharge Elimination System Permit (NPDES Permit) shall mean the permit issued to control the discharge to surface waters of the United States as detailed in Public Law 92-500, Section 402. 44. New Source shall mean those sources that are new as defined by 40 CFR 403.3(k) as revised. Page 9 of 80 45. Non-Compatible Pollutant shall mean any pollutant which is not a compatible pollutant as defined herein. 46. Normal Working Day shall mean the period of time during which production or operation is taking place or any period during which discharge to the sewer is occurring. 47. OCSD shall mean Orange County Sanitation District. 48. OCSD Sewerage Facility or System shall mean any property belonging to the OCSD used in the treatment, reclamation, reuse, transportation, or disposal of wastewater, or biosolids. 49. Ordinance shall mean that document entitled "Wastewater Discharge Regulations" containing OCSD requirements, conditions, and limits for connecting and discharging to the sewer system, as may be amended and modified. 50. pH shall mean both acidity and alkalinity on a scale ranging from 0 to 14 where 7 represents neutrality, numbers less than 7 increasing acidity, and more than 7 increasing alkalinity, and is the logarithm of the reciprocal of the quantity of hydrogen ions in moles per liter of solution. 51. Pass Through shall mean discharge through the OCSD's sewerage facilities to waters of the U.S. which, alone or in conjunction with discharges from other sources, is a cause of a violation of the OCSD's NPDES permit. 52. Permittee shall mean a person who has received a permit to discharge wastewater into the OCSD's sewerage facilities subject to the requirements and conditions established by the OCSD. 53. Person shall mean any individual, partnership, copartnership, company, firm, association, corporation or public agency, joint stock company, trust, estate, or any other legal entity; or their legal representatives, agents, assigns, including all Federal, State, and local governmental entities. 54. Pesticides shall mean those compounds classified as such under Federal or State law or regulations including, but not limited to DDT (dichlorodiphenyltrichloro-ethane, both isomers), DOE (dichlorodiphenyl-ethylene), DDD (dichlorodiphenyldichloroethane), Aldrin, Benzene Hexachloride (alpha [a], beta [p], and gamma Page 10 of 80 isomers), Chlordane, Endrin, Endrin aldehyde, 2,3,7,8-tetrachlorodibenzo-p-dioxin (TCDD), toxaphene, a-endosulfan, p-endosulfan, Endosulfan sulfate, Heptachlor, Heptachlor epoxide, Dieldrin, Demeton, Guthion, Malathion, Methoxychlor, Mirex, and Parathion. 55. Pollutant shall mean any constituent, compound, or characteristic of wastewaters on which a discharge limit may be imposed either by the OCSD or the regulatory bodies empowered to regulate the OCSD. 56. Polychlorinated Biphenvls (PCB) shall mean those compounds classified as such under Federal or State law including, but not limited to Aroclors 1016, 1221, 1228, 1232, 1242, 1248, 1254, 1260, and 1262. 57. Pretreatment shall mean the reduction of the amount of pollutants, the elimination of pollutants, or the alteration of the nature of pollutant properties in wastewater to a level authorized by the OCSD prior to, or in lieu of, discharge of the wastewater into the OCSD's system. The reduction or alteration can be obtained by physical, chemical or biological processes, by process changes, or by other means. 58. Pretreatment Facility shall mean any works or devices that the General Manager determines are appropriate to treat, restrict, or prevent the flow of industrial wastewater prior to discharge into a public sewer. 59. Priority Pollutants shall mean the most recently adopted list of toxic pollutants identified and listed by EPA as having the greatest environmental impact. They are classified as non-compatible pollutants and may require pretreatment prior to discharge in order to prevent: a) interference with the OCSD's operation; or b) biosolids contamination; or c) pass through into receiving waters or into the atmosphere. 60. Public Aoencv shall mean the State of California and any city, county, district, other local authority or public body of or within this State. 61. Public Sewer shall mean a sewer owned and operated by the Page 11 of 80 OCSD, a city or other local sewering agency which is tributary to the OCSD's sewerage facilities. 62. RCRA shall mean Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901, at seq.) and as amended. 63. Regulatory Agencies shall mean those agencies having jurisdiction over the operation of the OCSD including, but not limited to, the following: a) United States Environmental Protection Agency, Region IX, San Francisco and Washington, DC (EPA). b) California State Water Resources Control Board (SWRCB). c) California Regional Water Quality Control Board, Santa Ana Region (RWQCB). d) South Coast Air Quality Management District (SCAQMD). e) California Environmental Protection Agency (Cal-EPA). 64. Regulatory Compliance Schedule Agreement (RCSA) shall mean an agreement between the OCSD and permittee requiring the permittee to implement pretreatment practices and/or install equipment to ensure compliance with future revised categorical pretreatment standards or revised discharge limits. 65. Sample Point shall mean a location accepted by the OCSD, from which wastewater ran be collected that is representative in content and consistency of the entire flow of wastewater being sampled. Page 12 of 80 66. Sampling Facilities shall mean structure(s) provided at the user's expense for the OCSD or user to measure and record wastewater constituent mass, concentrations, collect a representative sample, or provide access to plug or terminate the discharge. 67. Sanitary Waste shall mean domestic wastewater, human excrement and gray water (household showers, dishwashing operations, etc). 68. Septic Waste shall mean any sewage from holding tanks such as vessels, chemical toilets, campers, trailers, and septic tanks. 69. Service Area shall mean an area for which the OCSD has agreed to either provide sewer service, or wastewater treatment, or wastewater disposal 70. Sewage shall mean wastewater. 71. Sewerage Facilities or System shall mean any and all facilities used for collecting, conveying, pumping, treating, and disposing of wastewater or sludge or biosolids. 72. Shall mean mandatory. 73. Significant Non-Compliance (SNC) shall mean the compliance status of an industrial user who is in violation of one or more of the criteria as described in 40 CFR 403. 74. Slug Load shall mean a discharge that exceeds the prohibitions stated in Section 201 and significantly exceeds the usual user flow or pollutant loading, either mass or concentration. 75. Sludge shall mean any solid, semi-solid or liquid decant, subnate or supemate from a manufacturing process, utility service, or pretreatment facility. 76. Special Assessment Credit shall mean the portion of the secured property tax bill that represents the regional special assessment sewer user fee as defined by the OCSD. 77. Special Purpose Use shall mean any discharger who is granted a Special Purpose Discharge Permit by the OCSD to discharge unpolluted water, storm runoff, or groundwater to the OCSD's sewerage facilities. 78. Spent Solutions shall mean any concentrated industrial wastewater. Page 13 of 80 79. Spill Containment shall mean a protection system installed by the permittee to prohibit the discharge to the sewer of non-compatible pollutants. 80. Standard Methods shall mean procedures described in the current edition of Standard Methods for the Examination of Water and Wastewater, as published by the American Public Health Association, the American Water Works Association and Water Pollution Control Federation. 81. Suspended Solids shall mean any insoluble material contained as a component of wastewater and capable of separation from the liquid portion of said waste by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. 82. Tax Credit shall mean the Annual Regional Sewer Service Charge on the Secured Property tax bill. 83. Total Organic Carbon (TOC) shall mean the measure of total organic carbon in domestic or other wastewater as determined by the appropriate testing procedure. 84. Total Toxic Organics (TTO) shall mean the summation of all quantifiable values greater than 0.01 milligrams per liter for the organics regulated by the EPA or OCSD for a specific industrial category. 85. Unpolluted Water shall mean water to which no pollutant has been added either intentionally or accidentally. 86. User shall mean any person who discharges or causes a discharge of wastewater directly or indirectly to a public sewer. User shall mean the same as Discharger or Industrial User. 87. Waste shall mean sewage and any and all other waste substances, liquid, solid, gaseous or radioactive, associated with human habitation or of human or animal nature, including such wastes placed within containers of whatever nature prior to and for the purpose of disposal. 88. Waste Manifest shall mean that receipt which is retained by the generator of hazardous wastes as required by the State of California or the United States Government pursuant to RCRA, or the California Hazardous Materials Act, or that receipt which is Page 14 of 80 retained by the generator for recyclable wastes or liquid non-hazardous wastes as required by the OCSD. 89. Wastehauler shall mean any person carrying on or engaging in vehicular transport of waste as part of, or incidental to, any business for the purpose of discharging said waste into the OCSD's system. 90. Wastewater shall mean the liquid and water-carried wastes of the community and all constituents thereof, whether treated or untreated, discharged into or permitted to enter a public sewer. 91. Wastewater Constituents and Characteristics shall mean the individual chemical, physical, bacteriological, and radiological parameters, including volume and flow rate and such other parameters that serve to define, classify or measure the quality and quantity of wastewater. 92. Wet Weather shall mean any period of time during which measurable rainfall occurs within of OCSD's service area. This period shall include the time following the cessation of rainfall until OCSD determines that the wet weather event is no longer impacting OCSD's sewerage system. B. Words used in this Ordinance in the singular may include the plural and the plural the singular. Use of masculine shall mean feminine and use of feminine shall mean masculine. Shall is mandatory; may is permissive or discretionary. 103. CONFIDENTIAL INFORMATION All user information and data on file with the OCSD shall be available to the public and governmental agencies without restriction unless the user specifically requests and is able to demonstrate to the satisfaction of the OCSD that the release of such information would divulge information, processes or methods which would be detrimental to the user's competitive position. The demonstration of the need for confidentiality made by the permittee must meet the burden necessary for withholding such information from the general public under applicable State and Federal Law. Any such claim must be made at the Page 15 of 80 time of submittal of the information by marking the submittal "Confidential Business Information" on each page containing such information. Information which is demonstrated to be confidential shall not be transmitted to anyone other than a governmental agency without prior notification to the user. Wastewater constituents and characteristics and other effluent data, as defined in 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public. 104. TRANSFER OF PERMITS A. Permits issued under this Ordinance are for a specific user, for a specific operation at a specific location or for a specific wastehauler, and create no vested rights. 1. No permit may be transferred to allow a discharge to a public sewer from a point other than the location for which the permit was originally issued. 2. Except as expressly set forth herein, no permit for an existing facility may be transferred to a new owner and/or operator of that facility. B. When the permittee is a legal entity (such as a corporation, partnership, limited liability company, or other legal entity), the permittee is deemed to have undergone a change of ownership when any other legal entity or person acquires direct or indirect ownership or control of more than fifty percent (50%) of the total ownership interest in the permittee. C At least thirty (30) days prior to the sale or transfer of ownership of any business operating under a permit issued by the OCSD, the permittee shall notify the OCSD in writing of the proposed sale or transfer. The successor owner shall apply to the OCSD for a new permit at least fifteen (15) days prior to the sale or transfer of ownership in accordance with the provisions of this Ordinance. A successor owner shall not discharge any wastewater for which a permit is required by this Ordinance until a permit is issued by the OCSD to the successor owner. D. The written notification of intended transfer shall be in a form approved by the OCSD and shall include a written certification by the new owner and/or operator which: 1. States that the new owner or operator has no immediate intent to modify the facility's operations and/or processes; Page 16 of 80 2. Identifies the specific date on which the transfer is to occur; and 3. Acknowledges that the new owner or operator is fully responsible for complying with the terms and conditions of the existing permit and all provisions of this Ordinance. 105. EFFECT OF TRANSFER OF PERMITS Except as expressly set forth in Section 104.C, any permit which is transferred to a new owner and/or operator or to a new facility is void. 106. AUTHORITY The OCSD is regulated by several agencies of the United States Government and the State of California, pursuant to the provisions of Federal and State Law. Federal and State Laws grant to the OCSD the authority to regulate and/or prohibit, by the adoption of ordinances or resolutions, and by issuance of discharge permits, the discharge of any waste, directly or indirectly, to the OCSD's sewerage facilities. Said authority includes the right to establish limits, conditions, and prohibitions; to establish flow rates or prohibit flows discharged to the OCSD's sewerage facilities; to require the development of compliance schedules for the installation of equipment systems and materials by all users; and to take all actions necessary to enforce its authority, whether within or outside the OCSD's boundaries, including those users that are tributary to the OCSD or within areas for which the OCSD has contracted to provide sewerage services. The OCSD has the authority pursuant to California Health and Safety Codes 5471 and 5474 to prescribe, revise, and collect all fees and charges for services and facilities furnished by the OCSD either within or without its territorial limits. 107. DELEGATION OF AUTHORITY Whenever any power is granted to or a duty is imposed upon the General Manager, the power may be exercised or the duty may be performed by any person so authorized by the General Manager. 108. SIGNATORY REQUIREMENTS Reports and permit applications required by this Ordinance shall contain the following certification statement: "I have personally examined and am familiar with the information submitted in the attached document, and I hereby certify under penalty of perjury that this information was obtained in accordance with the Federal Pretreatment Requirements. Moreover, based upon my inquiry of those individuals Page 17 of 80 immediately responsible for obtaining the information reported herein, I believe that the submitted information is true, accurate, and complete. I am aware that there are significant penalties not limited to fines and imprisonment for submitting false information." The statement shall be signed by an authorized representative of the industrial user as defined in 40 CFR 403 or as defined and designated by the OCSD. ARTICLE 2 GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE 201. PROHIBITED DISCHARGES These prohibitions apply to all users of the OCSD facilities whether or not they are subject to Federal Categorical Pretreatment Standards or any other National, State, or local pretreatment standards or requirements. A. General Prohibitions. 1. No user shall introduce or cause to be introduced into the OCSD any pollutant, wastewater, or flow which causes pass through or interference or would cause the OCSD to violate any Federal, State, or local regulatory requirement. 2. No user shall increase the contribution of flow, pollutants, or change the nature of pollutants where such contribution or change does not meet applicable standards and requirements or where such contribution would cause the OCSD to violate any Federal, State, or local regulatory permit. 3. No person shall transport waste from one location or facility to another for the purpose of treating or discharging it directly or indirectly to the OCSD sewerage system without written permission from the OCSD. 4. No person shall deliver by vehicular transport, rail car, or dedicated pipeline, directly or indirectly to the OCSD sewerage facilities, wastewater which contains any substance that is defined as a hazardous waste by the Regulatory Agencies. B. Specific Prohibitions. No user shall introduce or cause to be introduced into the sewerage facilities, pollutants, substances, or wastewater which: 1. Creates a fire or explosive hazard in the sewerage facilities including, but not limited to, wastestreams with a closed-cup Page 18 of 80 flashpoint of less than 140 degrees F (60 degrees C) using the test methods specified in 40 CFR 261.21; or produces a gaseous mixture that is 10% or greater of the lower explosive limit (LEL). 2. Causes obstruction to the flow in the sewer system resulting in interference or damage to the sewerage facilities. 3. Produces noxious or malodorous liquids, gases, solids, or other wastewater which, either singly or by interaction with other wastes, is sufficient to create a public nuisance or a hazard to life, or to prevent entry into the sewers for maintenance or repair. 4. Results in toxic gases, vapors, or fumes within the sewerage facilities in a quantity that may cause acute worker health and safety problems. 5. Contains any radioactive wastes or isotopes except in compliance with applicable regulations from other governmental agencies empowered to regulate the use of radioactive materials. 6. Causes, alone or in conjunction with other sources, the OCSD's treatment plant effluent to fail a toxicity test. 7. Caused the OCSD's effluent or any other product of the treatment process, residues, biosolids, or scums, to be unsuitable for reclamation, reuse or disposal. 8. Causes discoloration or any other condition which affects the quality of the OCSD's influent or effluent in such a manner that inhibits the OCSD's ability to meet receiving water quality, biosolids quality, or air quality requirements established by Regulatory Agencies. 9. Creates excessive foaming in the sewerage facilities. 10. Violates any applicable Federal Categorical Pretreatment Standard, statute, regulation, or ordinance of any public agency or Regulatory Agency having jurisdiction over the operation of or discharge of wastewater through the sewerage facilities. 11. Has a temperature higher than 140 degrees Fahrenheit, (60 degrees Centigrade), or which causes the temperature at the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade). 12. Has a pH less than 6.0 or greater than 12.0. Page 19 of 80 13. Has a maximum Biochemical Oxygen Demand (BOD) greater than 15,000 pounds per day. 14. Is in excess of the permitted mass emission rates established in accordance with: Section 212, or the concentration limits set forth in Table I, or the discharge permit. 15. Contains material which will readily settle or cause an obstruction to flow in the sewer resulting in interference, such as, but not limited to, sand, mud, glass, metal filings, diatomaceous earth, cat litter, asphalt, wood, bones, hair, and fleshings. 202. PROHIBITION ON DILUTION No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's permit or to establish an artificially high flow rate for permit mass emission rates. 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER A. No person shall discharge groundwater, surface runoff, or subsurface drainage directly or indirectly to the OCSD's sewerage facilities except as provided herein. Pursuant to Section 304 or 305, at seq., the OCSD may approve the discharge of such water only when no alternate method of disposal is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Dry Weather Urban Runoff Permit or a Special Purpose Discharge Permit from the OCSD. Page 20 of 80 C. If a permit is granted for the discharge of such water into a public sewer, the user shall pay the applicable charges established herein and shall meet such other conditions as required by the OCSD. 204. PROHIBITION ON UNPOLLUTED WATER A. No person shall discharge unpolluted water such as single pass cooling water directly or indirectly to the OCSD's sewerage facilities except as provided herein. Pursuant to Section 305, et seq., the OCSD may approve the discharge of such water only when no alternate method of disposal or reuse is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Special Purpose Discharge Permit from the OCSD. C. If a permit is granted for the discharge of such water into a public sewer, the user shall pay the applicable charges established herein and shall meet such other conditions as required by the OCSD. 205. RESERVED 206. PROHIBITION ON THE USE OF GRINDERS A. Waste from industrial or commercial grinders shall not be discharged into a public sewer, except wastes generated in packing or preparing food or food products. Such grinders must shred the waste to a degree that all particles will be carried freely under normal flow conditions prevailing in the public sewer. B. Waste from Food Service Establishments operating a grinder is prohibited and shall not be discharged into a public sewer unless written authorization from the OCSD General Manager or his designee is obtained. 207. PROHIBITION ON POINT OF DISCHARGE No person, except local sewering agencies involved in maintenance functions of sanitary sewer facilities, shall discharge any wastewater directly into a manhole or other opening in a sewer other than through an approved building sewer, unless approved by the OCSD upon written application by the user and payment of the applicable fees and charges established herein. Page 21 of 80 208. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES-TO THE OCSD SEWERAGE SYSTEM AND WASTEHAULER STATION A. No Wastehauler shall discharge to the OCSD sewerage system, domestic septage or other approved waste or wastewater from a vacuum pumping truck or other liquid waste transport vehicle, without first obtaining both a valid Orange County Health Care Agency Permit and a OCSD Wastehauler Permit as required by Section 306. Such wastewaters shall be discharged only at locations designated by the OCSD, and at such times as established by the OCSD. The OCSD may collect samples of each hauled load to ensure compliance with applicable standards. B. No Wastehauler shall discharge domestic septage or other approved waste or wastewater constituents in excess of Limits in Table I. C. The discharge of industrial wastewater by any Wastehauler is prohibited unless written permission of the General Manager has been obtained, the proper permits have been obtained, and the waste meets Federal and State limits applicable to the user from which the waste was obtained; or Maximum Local Discharge Limits as specified in Table I, whichever are more stringent. The discharge of hauled industrial wastewater is subject to all other requirements of this ordinance. D. No Wastehauler shall discharge wastewater to sewers that are tributary to the OCSD's sewerage facilities that are from a source that is not within the OCSD's service area unless prior authorization is granted by the General Manager or his designee. E. No Wastehauler shall discharge directly or indirectly to the sewerage facilities any material defined as hazardous waste by RCRA or 40 CFR 261. F. Wastehaulers shall provide a waste-tracking form for every load. This form shall include, at a minimum, the name and address of the industrial waste hauler, permit number, truck identification, names and addresses of sources of waste, and volume and characteristics of waste. G. Discharge at the OCSD disposal station shall be through an appropriate hose and connection to the discharge port. Discharging waste directly to the surface area of the disposal station is prohibited. H. Wastehauler hoses must be connected to the disposal station discharge port when being cleaned. I. Transferring loads between trucks or from portable toilets to trucks on Page 22 of 80 OCSD property is prohibited unless permission from OCSD is obtained. 209. RESERVED 210. PROHIBITION ON MEDICAL WASTE A. No person shall discharge solid wastes from hospitals, clinics, offices of medical doctors, convalescent homes, medical laboratories or other medical facilities to the sewerage system including, but not limited to, hypodermic needles, syringes, instruments, utensils or other paper and plastic items of a disposable nature except where prior written approval for such discharges is given by the General Manager. B. The OCSD shall have the authority to require that any discharge of an infectious waste to the sewer be rendered non-infectious prior to discharge if the infectious waste is deemed to pose a threat to the public health and safety, or will result in any violation of applicable waste discharge requirements. 211. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES Spent solutions, sludges, and materials of quantity or quality in violation of, or prohibited by this Ordinance, or any permit issued under this Ordinance must be disposed of in a legal manner at a legally acceptable point of disposal as defined by the OCSD or appropriate Regulatory Agency. All waste manifests shall be retained for a minimum of three years, and made available to the OCSD upon request. 212. MASS EMISSION RATE DETERMINATION A. Mass emission rates for non-compatible or compatible pollutants that are present or anticipated in the user's wastewater discharge may be set for each user and made an applicable part of each user's permit. These rates shall be based on Table I, Local Discharge Limits, or Federal Categorical Pretreatment Standards, and the user's average daily wastewater discharge for the past three years, the most recent representative data, or other data acceptable to the General Manager or his designee. B. To verify the user's operating data, the OCSD may require a user to submit an inventory of all wastewater streams and/or records indicating production rates. Page 23 of 80 C. The OCSD may revise limits or mass emission rates previously established in the discharger's permit at any time, based on: current or anticipated operating data of the discharger or the OCSD; the OCSD's ability to meet NPDES limits; or changes in the requirements of Regulatory Agencies. D. The excess use of water to establish an artificially high flow rate for mass emission rate determination is prohibited. TABLE ORANGE COUNTY SANITATION DISTRICT MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS(a) CONSTITUENT MILLIGRAMS/LITER Arsenic 2.0 Cadmium 1.0 Chromium(Total) 2.0 Copper 3.0 Lead 2.0 Mercury 0.03 Nickel 10.0 Silver 5.0 Zinc 10.0 Cyanide(Total) 5.0 Cyanide(Amenable) 1.0 Polychlorinated Biphenyls 0.01 Pesticides 0.01 Total Toxic Organics 0.58 Sulfide(Total) 5.0 Suede(Dissolved) 0.5 Oil and grease of mineral or petroleum origin 100.0 Boo 15,000 Ibs/day MAXIMUM ALLOWABLE DISCHARGE LIMITS FOR WASTEHAULERS DISCHARGING DOMESTIC SEPTAGE CONSTITUENT MILLIGRAMS/LITER Cadmium 1.0 LN omium 2.0 pper 25.0 d 10.0 kel 10.0 c 50.0 (a): Users subject to Federal Categorical Pretreatment Standards may be required to meet more stringent limits. Page 24 of 80 ARTICLE 3 DISCHARGE PERMITS, CHARGES, AND FEES 301. INTRODUCTION A. To provide the maximum public benefit from the use of OCSD sewerage facilities, written authorization to use said facilities is required. This written authorization shall be in the form of a discharge permit. No vested right shall be given by issuance of permits provided for in this Ordinance. The OCSD reserves the right to establish, by Ordinance or in Wastewater Discharge Permits, more stringent standards or requirements on discharges to the OCSD sewerage facilities if deemed by the General Manager appropriate to comply with the objectives presented in the Introduction and Summary of this Ordinance and the prohibitions and limitations in Article 2. B. The discharge permit shall be in one of five forms and is dependent upon the type of discharger, volume, and characteristics of discharge. The five discharge permits are: 1. Class I Wastewater Discharge Permit. 2. Class II Wastewater Discharge Permit. 3. Dry Weather Urban Runoff Discharge Permit. 4. Special Purpose Discharge Permit. 5. Wastehauler Discharge Permit. 302. CLASS I WASTEWATER DISCHARGE PERMITS A. No user requiring a Class I permit shall discharge wastewater without obtaining a Class I Wastewater Discharge Permit. B. Class I Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the OCSD. The conditions of Wastewater Discharge Permits shall be enforced by the OCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Class I users proposing to discharge directly or indirectly into the OCSD sewerage facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 302.1 and paying the applicable fees pursuant to Section 302.3. For purposes of this Ordinance, a Class I Page 25 of 80 user is any user: 1. Subject to Federal Categorical Pretreatment Standards; or 2. Discharging wastewater which averages 25,000 gallons per day or more of regulated process water; or 3. Discharging wastewater determined by the OCSD to have a reasonable potential for adversely affecting the OCSD's operation or for violating any pretreatment standard, local limits, or discharge requirement; or 4. Discharging wastewater which may cause, as determined by the General Manager, pass through or interference with the OCSD system. 302.1 Class I Wastewater Discharge Permit Application A. Any person required to obtain a Class I Wastewater Discharge Permit shall complete and file with the OCSD, prior to commencing discharge, an application on the form prescribed by the OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s), NAICS number(s), description of the manufacturing process or service activity. 2. (Whichever is applicable) name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by the OCSD, including, but not limited to, those mentioned in Section 212, Mass Emission Rate Determination, and Table I, Local Discharge Limits, of this Ordinance. These constituents and Page 26 of 80 characteristics shall be determined by a laboratory selected by the discharger and acceptable to the OCSD. 8. Time and duration of discharge. 9. Number of employees per shift and hours of work per employee per day for each shift. 10. Waste minimization, best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste manifests, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16. Any other information as specified. B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, pretreatment equipment, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit information related to the applicant's business operations, processes, and potential discharge as may be requested by the OCSD to properly evaluate the permit application. D. After evaluation of the data, the OCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the OCSD's sewerage facilities. E. The permit application may be denied if the applicant fails to establish to the OCSD's satisfaction that adequate pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. F. The permit application may be denied if the applicant has in the past demonstrated an inability to keep current with OCSD invoices for items Page 27 of 80 such as Permit Fees, Non-Compliance Fees, Civil Penalties, Administrative Civil Penalties, Charges for Use, and Supplemental Capital Facilities Capacity Charges. 302.2 Class I Permit Conditions. and Limits A. A Class I permit shall contain all of the following conditions or limits: 1. Mass emission rates and concentration limits regulating non-compatible pollutants. 2. Requirements to notify the OCSD in writing prior to modification to processes or operations through which industrial wastewater may be produced. 3. Location of the user's on-site sampling point. 4. Requirements for submission of self-monitoring reports, technical reports, production data, discharge reports, compliance with Pretreatment Standards, BMP-based Categorical Pretreatment Standards and/or local limits, and/or waste manifests. 5. Requirements for maintaining, for a minimum of three years, plant records relating to wastewater discharge, and waste manifests as specified by OCSD. 6. Requirements to submit copies of tax and water bills. B. A Class I permit may contain any of the following conditions or limits: 1. Requirements for the user to construct and maintain, at his own expense, appropriate pretreatment equipment, pH control, flow monitoring facilities, and sampling facilities. 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Requirements to self-monitor. Page 28 of 80 4. Assumed values for BOD and suspended solids characteristics that typify the discharger's effluent for determination of the charge for use. 5. Other terms and conditions which may be appropriate to ensure compliance with this Ordinance or determined by the General Manager or his designee to be appropriate to protect the sewerage system. 302.3 Class I Permit Fee A. The Class I permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of permit must be received by the OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 621.(E) of this Ordinance. 302.4 Class I Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. New source indirect dischargers shall be required to install and start up any necessary pollution control equipment before beginning discharge, and comply with applicable Federal Categorical Pretreatment Standards not to exceed thirty (30) days after the commencement of discharge. Page 29 of 80 C. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The OCSD shall review the request, make a determination on the request, and respond in writing. D. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 302.5 Class I Permit Duration and Renewal Class I permits shall normally be issued for a period not to exceed two (2) years. At least 45 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 302.6 Class I Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from the OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of sewage in OCSD facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. B. A discharger who is issued a Class I Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the unit charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the OCSD. Annually, the OCSD shall compute the charge for use based upon actual use for the preceding 12-month period on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by the OCSD. A credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. Page 30 of 80 C. Current property tax bills shall be supplied by the permittee to the OCSD by May 31 of each year for use in determining the regional sanitary sewer service credit. If the tax bills are not supplied, the OCSD will endeavor to obtain the data. Data obtained by the OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for the OCSD administrative costs when regional sanitary sewer service charge data is obtained by the OCSD. The amount of the fee shall be adopted by the OCSD's Board of Directors. D. In order for the OCSD to determine actual annual water use, the user shall provide to the OCSD copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the OCSD will endeavor to obtain the water use data. Data obtained by the OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when the OCSD obtains water use data. The OCSD's Board of Directors shall adopt the amount of the fee. E. The charge for use shall be computed by the following formula: Charge for Use = VaV + BOB + SOS - Tax Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Va,BO,SO = Unit Charge rates established and adopted by Ordinance of the OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below: F. The Unit Charge rates in the charge-for-use formula shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This Charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable Page 31 of 80 requirements of State and Federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. A Capital Facilities Replacement Service component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among wastewater charge parameters of flow, biochemical oxygen demand, and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand, and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 3. The Unit Charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for V., and in dollars per thousand pounds for Bo and So. G. Other measurements of the organic content of the wastewater of a discharger, such as COD or TOC, may be used instead of BOD. However, the discharger must establish to the General Manager's satisfaction a relationship between the BOD of the wastewater and the parameter of measure. This relationship shall be used by the OCSD in determining the charge for use. When wastewater from sanitary facilities is discharged separately from the other wastewater of a discharger, the charge for use for discharging the sanitary wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic wastewater strength per employee per year. Page 32 of 80 The number of employees will be considered as the average number of people employed full-time on a daily basis. This may be determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects normal employment fluctuations. 303. CLASS II WASTEWATER DISCHARGE PERMITS A. No user requiring a Class II permit shall discharge wastewater without obtaining a Wastewater Discharge Permit. B. Class II Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use and fees established by the OCSD. The conditions of Wastewater Discharge Permits shall be enforced by the OCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Class II users proposing to discharge directly or indirectly into the OCSD sewerage facilities shall obtain a Wastewater discharge Permit by filing an application pursuant to Section 303.1 and paying the applicable fees pursuant to Section 303.3. For purposes of this Ordinance, a Class II user is any user: 1. Whose charge for use is greater than the special assessment "OCSD Sewer User Fee" included on the County of Orange secured property tax bill exclusive of debt service, that discharges wastes other than sanitary, and that is not otherwise required to obtain a Class I permit, and 2. Discharging waste other than sanitary; and 3. Not otherwise required to obtain a Class I permit. 303.1 Class II Wastewater Discharge Permit Application A. Any person required to obtain a Class II Wastewater Discharge Permit shall complete and file with the OCSD, prior to commencing discharge, an application on the form prescribed by the OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s) and NAICS number(s); description of the manufacturing process or service activity. Page 33 of 80 2. (Whichever is applicable) Name, address of any and II principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by the OCSD, including, but not limited to, those mentioned in Section 212, Mass Emission Rate Determination, and Table I, Local Discharge Limits of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the discharger and acceptable to the OCSD. 8. Time and duration of discharge. 9. Number of employees and average hours of work per employee per day. 10. Waste minimization, best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste manifests, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16. Any other information as specified. Page 34 of 80 B. Applicants may be required to submit site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, pretreatment systems, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit other information related to the applicant's business operations, processes, and potential discharge as may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, the OCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the OCSD system. E. The permit application may be denied if the applicant fails to establish to the OCSD's satisfaction that adequate pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 303.2 Class II Permit Conditions and Limits A. A Class II permit shall contain all of the following conditions or limits: 1. Applicable mass emission rates and concentration limits regulating non-compatible pollutants. 2. Requirements to notify the OCSD in writing prior to modification to processes or operations through which industrial wastewater may be produced. 3. Location of the user's on-site sample point. 4. Requirements for submission of technical reports, production data, discharge reports, and/or waste manifests. 5. Requirements to submit copies of tax and water bills. B. A Class II permit may contain any of the following conditions or limits: 1. Requirements for the user to construct and maintain, at his own expense, appropriate pretreatment equipment, pH control, flow monitoring and/or sampling facilities. Page 35 of 80 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Assumed values for BOD and suspended solids characteristics that typify the discharger's effluent for determination of the charge for use. 4. Requirements to self-monitor. 5. Requirements for maintaining, for a minimum of three years, plant records relating to wastewater discharge, and waste manifests as specified by OCSD. 6. Other provisions which may be appropriate to ensure compliance with this Ordinance. 7. Other terms and conditions determined by the General Manager to be appropriate to protect the OCSD's system. 303.3 Class II Permit Fee A. The Class II permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of the permit fee must be received by the OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 621.(E) of this Ordinance. 303.4 Class II Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the OCSD; or Page 36 of 80 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. The permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 303.5 Class II Permit Duration and Renewal Class II permits shall normally be issued for a period not to exceed three (3) years. At least 45 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. 303.6 Class II Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from the OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of sewage in OCSD sewerage facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing wastewater collection, treatment, and disposal. B. A discharger who is issued a Class II Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the Unit Charge rates adopted annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by the OCSD. Annually, the OCSD shall compute the charge for use based upon actual use for the preceding 12-month period on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by the OCSD. A credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. C. Current property tax bills shall be supplied by the permittee to the OCSD by May 31 of each year for use in determining the regional sanitary sewer Page 37 of 80 service credit. If the tax bills are not supplied, the OCSD will endeavor to obtain the data. Data obtained by the OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when sanitary sewer service charge data is obtained by the OCSD. The amount of the fee shall be adopted by the OCSD Board of Directors. D. In order for the OCSD to determine actual annual water use, the user shall provide to the OCSD copies of its water bills. If these water bill copies are not received by July 31 of each year for the 12-month period ended closest to June 30, the OCSD will endeavor to obtain the water use data. Data obtained by the OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when water use data is obtained by the OCSD. The amount of the fee shall be adopted by the OCSD Board of Directors. E. The charge for use shall be computed by the following formula: Charge for Use = VaV + BOB + SOS - Tax Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Va,B.,S. = Unit Charge rates adopted annually by Ordinance of the OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below. F. The unit charge rates in the charge for use formula shall be established annually and shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the sewerage system shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable Page 38 of 80 requirements of State and Federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 2. A Capital Facilities Replacement component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the sewerage system in the budgeted year. 3. The unit charge rates for each respective wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for V., and in dollars per thousand pounds for Bo and So. G. Other measurements of the organic content of the wastewater of a discharger, such as COD or TOC, may be used instead of BOD. However, the discharger must establish to the General Manager's satisfaction a relationship between the BOD of the wastewater and the other parameter of measure. This relationship shall be used by the OCSD in determining the charge for use. When wastewater from sanitary facilities is discharged separately from the other wastewater of a discharger, the charge for use for discharging the sanitary wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full-time on a daily basis. This may be determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects Page 39 of 80 normal employment fluctuations. 304. DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS A. No user shall discharge urban runoff directly to OCSD's sewerage system without obtaining a Dry Weather Urban Discharge Permit. B. OCSD shall determine whether the dry weather urban runoff proposed to be discharged into OCSD's sewerage system may cause a potential environmental risk and/or health hazard that cannot be economically or practically control by alternative disposal methods. C. Dry Weather Urban Runoff Permits shall be subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. D. All users required to obtain a Dry Weather Urban Runoff Permit proposing to discharge directly or indirectly into OCSD's sewerage facilities shall file an application pursuant to Section 304.1 and pay the applicable fees pursuant to Sections 304.3 and 304.6. Dry Weather Urban Runoff Discharge Permit Application A. An applicant shall contact OCSD prior to any construction of facilities and discharge of dry weather urban runoff into the sewerage system to determine if the discharge of dry weather urban runoff to the OCSD sewerage facilities is feasible. B. Applicants shall complete and file with OCSD, prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by applicable fees, design plans, a detailed analysis of other disposal alternatives, or other data as needed by OCSD for review. The applicant shall provide justification that disposal alternatives for the dry weather urban runoff are not economically or practically feasible in lieu of sewer discharge. C. In addition to the discharge permit, OCSD may require that the permit applicant enter into an agreement setting forth the terms under which the dry weather urban runoff discharge is authorized. D. Applicants shall provide adequate pretreatment and/or best management practices included within the applicants' plans to ensure that the applicable discharge limits shall be met. Dry Weather Urban Runoff Discharge Permit Condition and Limits Page 40 of 80 The issuance of a Dry Weather Urban Runoff Discharge Permit may contain any the following conditions or limits: A. Mass emission rates and concentration limits regulating non-compatible pollutants. B. Requirements for the user to construct and maintain, at the user's expense, appropriate pretreatment equipment, flow monitoring facilities, and devices to prevent storm water discharge into OCSD's sewerage system during a wet weather event (rain event). C. Requirements for the user to provide OCSD with its operations and maintenance plan, best management practices, and pollution prevention strategies designed to minimize or eliminate dry weather urban runoff pollutants. D. Limits on rate and time of discharge or requirements for flow regulation and equalization prior to discharge to the sewerage system. E. Requirements to self-monitor the discharge to the sewerage system. F. The General Manager, or his designees, may impose additional requirements as may be appropriate to reduce the burden on OCSD's collection, treatment, and disposal facilities. G. Prohibitions on the discharge, which may cause OCSD's effluent, biosolids, or any other product of its treatment process, to be unsuitable for reclamation, reuse, or disposal. Dry Weather Urban Runoff Discharge Permit Fee A. The Dry Weather Urban Runoff Discharge Permit fee shall be paid by the applicant in an amount established in the applicable Ordinance or Resolution adopted by OCSD's Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each permittee shall also pay delinquent invoices in full prior to permit renewal. Dry Weather Urban Runoff Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; Page 41 of 80 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies, which affect OCSD; or 4. A determination by the General Manager or his designee that such modification is appropriate to further the objectives of this Ordinance. B. A permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested changes and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond accordingly. C. A permittee shall be informed of any changes in the permit at least forty- five (45) days prior to the effective date change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. Dry Weather Urban Runoff Discharge Permit Duration and Renewal Dry Weather Urban Runoff Permit shall normally be issued for a period not to exceed two (2) years. At least 45 days prior to the expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of this Article 3. Dry Weather Urban Runoff Discharge Permit Charge for Use A discharger who is issued a Dry Weather Urban Runoff Permit under the provision of this Ordinance shall pay a charge for use in accordance with rates established by Ordinance or Resolution adopted by OCSD's Board of Directors. Page 42 of 80 305. SPECIAL PURPOSE DISCHARGE PERMITS A. No user requiring a Special Purpose Discharge Permit shall discharge wastewater without obtaining a Special Purpose Discharge Permit. B. Special Purpose Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the OCSD. The conditions of Wastewater Discharge Permits shall be enforced by the OCSD in accordance with this Ordinance and applicable State and Federal Regulations. C. All Special Purpose Discharge Permit users proposing to discharge directly or indirectly into the OCSD's sewerage facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section 305.1 and paying the applicable fees pursuant to Sections 305.3 and 305.6. This discharge permit may be granted when no alternative method of disposal is reasonably available, or to mitigate an environmental risk or health hazard. 305.1 Special Purpose Discharge Permit Application A. Applicants seeking a special purpose wastewater permit shall complete and file with the OCSD, prior to commencing discharge, an application in the form prescribed by the OCSD. This application shall be accompanied by the applicable fees, plumbing plans, a detailed analysis of the alternatives for water disposal, or other data as needed by the OCSD for review. B. The permit application may be denied when the applicant has failed to establish to the OCSD's satisfaction that adequate pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or that the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 305.2 Special Purpose Discharge Permit Conditions and Limits A. Discharge conditions and limits shall be no less stringent than Section 201(A), General Prohibitions; 201(B), Specific Prohibitions; Section 212, Mass Emission Rate Determination; and Table I, Local Discharge Limits. B. Monitoring requirements for the discharge shall be for those non-compatible pollutants known to exist in the discharge. At least one set of baseline analysis prior to or upon sewer discharge may be required for all constituents contained in the most current Environmental Protection Agency (EPA) "Priority Pollutant" list, excluding asbestos. Page 43 of 80 C. The OCSD may specify and make part of each Special Purpose Discharge Permit specific pretreatment requirements or other terms and conditions determined by the General Manager to be appropriate to protect the OCSD's Sewerage Facility, the Local Sewering Agency, to comply with Regulatory Agencies' requirements, to ensure compliance with this Ordinance, and to assess a charge for use. 305.3 Special Purpose Discharge Permit Fee The special purpose discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by the OCSD prior to issuance of either a new permit or a renewed permit. Each permittee shall also pay delinquent invoices in full prior to permit renewal. 305.4 Special Purpose Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the OCSD during the life of the permit based on: t. The discharger's current or anticipated operating data; 2. The OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The OCSD shall review the request, make a determination on the request, and respond in writing. C. A permittee shall be informed of any changes in the permit at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. Page 44 of 80 305.5 Special Purpose Discharge Permit Duration and Renewal Special purpose discharge permits shall normally be issued for a period not to exceed three (3) years, but may be renewed as determined by the General Manager. Users seeking permit renewal shall comply with all provisions of this Article 3. 305.6 Special Purpose Discharge Permit Charge for Use The General Manager shall establish a charge for use to cover all costs of the OCSD for providing sewerage service and monitoring. A deposit determined by the General Manager to be sufficient to pay the estimated charges for use shall accompany the Special Purpose Discharge Permit application, and said deposit shall be applied to the charges for use. 306. WASTEHAULER DISCHARGE PERMIT A. Wastehauler Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by the OCSD. The conditions of Wastehauler discharge permits shall be enforced by the OCSD in accordance with this Ordinance and applicable State and Federal Regulations. B. A Wastehauler proposing to discharge waste into the OCSD disposal station shall obtain both a valid Orange County Health Department Permit (where applicable), and a OCSD Wastehauler Permit. 306.1 Wastehauler Discharge Permit Application A. No Wastehauler shall discharge wastewater without a Wastehauler Discharge Permit. B. Any person required to obtain a Wastehauler Discharge Permit shall complete and file with the OCSD prior to commencing discharge, an application in a form prescribed by the OCSD. This application shall be accompanied by the applicable fees. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, telephone number, and description of the industries, or clients using the applicant's services. 2. (Whichever is applicable) Name, address of any and all principals/owners/major shareholders of the company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. Page 45 of 80 3. Name and address of leaseholder of the vehicle or trailer, if applicable. 4. Number of trucks and trailers and the license numbers and tank hauling capacity of each. 5. A copy of the applicant's Orange County Health Department Permit, where applicable. C. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, the OCSD may issue a Wastehauler discharge permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the OCSD's system. 306.2 Wastehauler Discharge Permit Conditions and Limits The issuance of a Wastehauler permit may contain any of the following conditions or limits: A. Limits on discharge of heavy metals and other priority pollutants. B. Requirements for maintaining and submitting waste hauling records and waste manifests. C. Additional requirements as otherwise determined to be appropriate by the General Manager to protect the OCSD's system or as specified by other Regulatory Agencies. D. Other terms and conditions which may be applicable to ensure compliance with this Ordinance. 306.3 Wastehauler Discharge Permit Fee The Wastehauler discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Boards of Directors. Payment of permit fees must be received by the OCSD prior to issuance of either a new permit or a renewed permit. A permittee shall also pay any delinquent invoices in full prior to permit renewal. Page 46 of 80 306.4 Wastehauler Identification Decal and Access Card Transfer A. The identification decal is non-transferable. B. If a gate access card is issued, it shall be issued to a specific permitted vehicle and is non-transferable unless previously authorized in writing by the OCSD. 306.5 Wastehauler Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the OCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; 2. The OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect the OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. The OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limits, conditions, or requirements at least forty-five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 306.6 Wastehauler Discharge Permit Duration and Renewal Wastehauler discharge permits shall be issued for a period not to exceed one (1) year. Upon expiration of the permit, the user shall apply for renewal of the permit in accordance with the provisions of Article 3. 306.7 Wastehauler Discharge Permit Charge for Use A charge for use to cover all costs of the OCSD for providing the disposal station service and monitoring shall be established by Ordinance of the Board of Directors. Page 47 of 80 307. RESERVED 308. RESERVED 309. RESERVED 310. OUT OF DISTRICT PERMITS/DISCHARGERS A. Industrial Wastewater Discharge Permits for dischargers located outside the OCSD's boundaries but within the OCSD service area and tributary to the OCSD's sewerage facilities, may be issued by a local sewering agency after approval by the OCSD. The OCSD shall have the right of inspection and sampling of the user's discharge to determine compliance with industrial waste discharge regulations. Such inspection and sampling will be performed under a coordinated plan developed with the local agency. The more stringent of the industrial waste discharge regulations and effluent limits of the OCSD and the local agency shall apply to the discharger. B. Pursuant to Article 6 herein, the OCSD shall have the right to enforce the Federal Pretreatment Regulations, the provisions of this Ordinance, and permit conditions and limits applicable to any person located outside of the OCSD's service area, but whose discharge is tributary to the OCSD's sewerage facilities. C. The fees for use shall be determined by the OCSD and set forth in a use agreement with the local sewering agency. ARTICLE 4 FACILITIES REQUIREMENTS 401. DRAWING SUBMITTAL REQUIREMENTS Upon request by the OCSD: A. Applicants or users may be required to submit three copies of detailed facility plans. The submittal shall be in a form and content acceptable to the OCSD for review of existing or proposed pretreatment facilities, spill containment facilities, monitoring facilities, metering facilities, and operating procedures. The review of the plans and procedures shall in no way relieve the user of the responsibility of modifying the facilities or procedures in the future, as necessary to produce a discharge acceptable to OCSD, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. Page 48 of 80 B. The drawing shall depict as a minimum the manufacturing process (waste generating sources), spill containment, monitoring or metering facilities, and pretreatment facilities. C. The applicant or user shall submit a schematic drawing of the pretreatment facilities, piping and instrumentation diagram, and wastewater characterization report. D. Users and applicants may also be required to submit for review site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, and appurtenances by size, location, and elevation for evaluation. E. The OCSD may require the drawings be prepared by a California Registered Chemical, Mechanical, or Civil Engineer. F. Permittee shall be required to submit updated detailed facility plans. 402. PRETREATMENT FACILITIES A. All users shall provide wastewater treatment as necessary to comply with this ordinance and shall achieve compliance with all Categorical Pretreatment Standards, Table 1, Local Discharge Limits, and the prohibitions set out in Sections 201 (A) & (B) of this ordinance within the time limitations specified by EPA, the State, or OCSD, whichever is more stringent. Any facilities necessary for compliance shall be provided, operated by a qualified operator, and maintained in proper operating condition at the user's expense. B. All users may also be required by the OCSD to submit waste analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation of the pretreatment facilities and compliance with permit limits and this Ordinance. C. No user shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the user's Permit. 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS A. All users shall provide spill containment for protection against discharge of prohibited materials or other wastes regulated by this Ordinance. Such protection shall be designed to secure the discharges and to prevent them from entering into the system in accordance with reasonable engineering standards. Such facilities shall be provided and maintained at the user's Page 49 of 80 expense. B. The General Manager may require any industrial user to develop and implement an accidental discharge/slug control plan. At least once every two years the OCSD shall evaluate whether each significant industrial user needs such a plan. Any user required to develop and implement an accidental discharge/control slug plan shall submit a plan which addresses, at a minimum, the following: 1. Description of discharge practices, including non-routine batch discharges. 2. Description of stored chemicals. 3. Procedures for immediately notifying the POTW of any accidental of slug discharge. Such notification must also be given for any discharge which would violate any of the prohibited discharges in Article 2 of this Ordinance. 4. Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or equipment, measures for containing toxic organic pollutants (including solvents), and measures and equipment for emergency response. 404. MONITORING/METERING FACILITIES A. The OCSD may require the user to construct and maintain in proper operating condition at the user's sole expense, Flow monitoring, constituent monitoring and/or sampling facilities. B Permittees may be required to install and maintain an appropriate effluent flow monitoring device. Calibration of such flow monitoring device shall be done annually or as specified in the wastewater discharge permit. C. The monitoring or metering facilities may be required to include a security closure that can be locked with a OCSD provided hasp lock during sampling or upon termination of service. D. The location of the monitoring or metering facilities shall be subject to approval by the OCSD. E. The user shall provide immediate, clear, safe and uninterrupted access to Page 50 of 80 the OCSD to the user's monitoring and metering facilities. F. For all industries permitted by the OCSD, domestic wastewaters shall be kept segregated from all industrial wastewaters until the industrial wastewaters have passed through any required pretreatment system or device and the permittee's sample point. 405. WASTE MINIMIZATION REQUIREMENTS A. The user shall provide waste minimization plans to reduce or eliminate pollutant discharge to the sewerage system and conserve water. The user shall investigate product substitution, housekeeping practices, provide inventory control, implement employee education, and other steps as necessary to minimize waste produced. B. A user may certify that their facility does not discharge any type of wastewater, containing pollutants that may directly or indirectly discharge into the OCSD sewerage system as a form of Best Management Practice (BMP), upon approval by the OCSD. ARTICLE 5 MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS 501. MONITORING AND REPORTING CONDITIONS A. Monitoring for Annual Charge for Use The wastewater constituents and characteristics of a discharger needed for determining the annual charge for use shall be submitted in the form of self-monitoring reports by the user to the OCSD, if requested. The frequency of analyses and reporting shall be set forth in the user's permit. The analyses of these constituents and characteristics shall be by a laboratory acceptable to the OCSD, and at the sole expense of the permittee. Analyses performed by OCSD's personnel may used in the determination of the annual charge for use. Page 51 of 80 B. Monitoring for Compliance with Permit Conditions or Reporting Reguirements The OCSD may require reports for self-monitoring of wastewater constituents and characteristics of the discharger needed for determining compliance with any limit or requirements as specified in the user's permit, Federal or State Regulations, or this Ordinance. These reports include: (1) Baseline Monitoring Reports. (2) Compliance Schedule Progress Reports. (3) 90-Day Compliance Reports. (4) Periodic Reports on continued compliance. (5) Notification of the Discharge of Hazardous Waste. (6) Other reports as required by the OCSD. Monitoring reports of the analyses of wastewater constituents and characteristics shall be in a manner and form approved by the OCSD and shall be submitted upon request of the OCSD. When applicable, the self- monitoring requirement and frequency of reporting may be set forth in the user's permit as directed by the OCSD. The analyses of wastewater constituents and characteristics and the preparation of the monitoring report shall be done at the sole expense of the user. If sampling performed by a user indicates a violation, the user must notify the OCSD within twenty-four (24) hours of becoming aware of the violation. The user shall also repeat the sampling and analysis and submit the results of the repeat analysis to the OCSD within thirty (30) days after becoming aware of the violation. Resampling by the industrial user is not required if the OCSD performs sampling at the user between the time when the initial sampling was conducted and the time when the user or OCSD receives the results of this sampling, or if the OCSD has performed the sampling and analysis in lieu of the industrial user. If the OCSD performed the sampling and analysis in lieu of the industrial user, the OCSD will perform the repeat sampling and analysis unless it notifies the user of the violation and requires the user to perform the repeat sampling and analysis. Failure by the user to perform any required monitoring, or to submit monitoring reports required by the OCSD constitutes a violation of this Ordinance, may result in determining whether the permittee is in significant non-compliance, and be cause for the OCSD to initiate all Page 52 of 80 necessary tasks and analyses to determine the wastewater constituents and characteristics for compliance with any limits and requirements specified in the user's permit or in this Ordinance. The user shall be responsible for any and all expenses of the OCSD in undertaking such monitoring analyses and preparation of reports. 501.1 Inspection and Sampling Conditions A. The OCSD may inspect and sample the wastewater generating and disposal facilities of any user to ascertain whether the intent of this Ordinance is being met and the user is complying with all requirements. B. The OCSD shall have the right to place on the user's property or other locations as determined by the OCSD, such devices as are necessary to conduct sampling or metering operations. Other sampling locations may include downstream manholes, usually in the sewerage system, for the purpose of determining the compliance status of an industrial or commercial discharger. C. In order for the OCSD to determine the wastewater characteristics of the discharger for purposes of determining the annual use charge and for compliance with permit requirements, the user shall make available for inspection and copying by the OCSD all notices, self-monitoring reports, waste manifests, and records including, but not limited to, those related to production, wastewater generation, wastewater disposal, and those required in the Federal Pretreatment Requirements without restriction but subject to the confidentiality provision set forth in Section 103 herein. All such records shall be kept by the user a minimum of three (3) years. D. If a discharger falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method, the discharger may be subject to imposition of penalties, permit suspension or permit revocation. 501.2 Analytical Requirements All pollutant analyses, including sampling techniques, to be submitted as part of a wastewater discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, unless otherwise specified in an applicable categorical Pretreatment Standard. If 40 CFR Part 136 does not contain sampling or analytical techniques for the pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for the pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures, including procedures suggested by the General Manager or other parties approved by EPA. Page 53 of 80 501.3 Right of Entry A. Persons or occupants of premises where wastewater is created or discharged shall allow the OCSD, or its representatives, reasonable access to all parts of the wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the discharger's facility is open, operating, or any other reasonable time. No person shall interfere with, delay, resist or refuse entrance to authorized OCSD's personnel attempting to inspect any facility involved directly or indirectly with a discharge of wastewater to the OCSD's sewerage system. B. Where a user has security measures in force, the user shall make necessary arrangements so that personnel from the OCSD shall be permitted to enter without delay for the purpose of performing their specific responsibilities. 501.4 Notification of Spill or Slun Loadina A. In the event the discharger is unable to comply with any permit condition due to a breakdown of equipment, accidents, or human error, or the discharger has reasonable opportunity to know that his discharge will exceed the discharge provisions of the user's permit, Sections 201(A) & (B) or Table I, Local Discharge Limits, the discharger shall immediately notify the OCSD by telephone. If the material discharged to the sewer has the potential to cause or result in a fire or explosion hazard, the discharger shall immediately notify the local fire department and the OCSD. B. Confirmation of this notification shall be made in writing no later than five (5) working days from the date of the incident. The written notification shall state the date of the incident, the reasons for the discharge or spill, what steps were taken to immediately correct the problem, and what steps are being taken to prevent the problem from recurring. C. Such notification shall not relieve the user of any expense, loss, damage or other liability which may be incurred as a result of damage or loss to the OCSD or any other damage or loss to person or property; nor shall such notification relieve the user of any fees or other liability which may be imposed by this Ordinance or other applicable law. Page 54 of 80 501.5 Notification of Bypass A. Bypass of industrial wastewater to the sewerage system is prohibited. The OCSD may take enforcement action against the user, unless: 1. Bypass was unavoidable because it was done to prevent loss of life, personal injury, or severe property damage; 2. There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, elective slow-down or shut-down of production units or maintenance during periods of production downtime. This condition is not satisfied if adequate backup equipment could have been feasibly installed in the exercise of reasonable engineering judgment to prevent a bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3. The permittee submitted notices as required under Section 501.4(B). B. If a permittee knows in advance of the need for a bypass, it shall submit a written request to allow the bypass to the OCSD, if possible, at least ten (10) days before the date of the bypass. C. The OCSD may approve an anticipated bypass at its sole discretion after considering its adverse effects, and the OCSD determines that the conditions listed in Section 501.5(A)(1-3) are met. D. A permittee shall provide telephone notification to the OCSD of an unanticipated bypass that exceeds its permitted discharge limits within four hours from the time the permittee becomes aware of the bypass. A written report shall also be provided within five (5) days of the time the permittee becomes aware or could reasonably have been aware of the bypass. The report shall contain a description of the bypass and its cause; the duration of the bypass, including exact dates and times, and, if the bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent recurrence of the bypass. Failure to submit oral notice or written report may be grounds for permit revocation. Page 55 of 80 ARTICLE 6 ENFORCEMENT 600. PURPOSE AND SCOPE A. The Board finds that in order for the OCSD to comply with the laws, regulations, and rules imposed upon it by Regulatory Agencies and to ensure that the OCSD's sewerage facilities and treatment processes are protected and are able to operate with the highest degree of efficiency, and to protect the public health and environment, specific enforcement provisions must be adopted to govern the discharges to the OCSD's system by industrial discharge permittees. B. To ensure that all interested parties are afforded due process of law and that non-compliance and violations are resolved as soon as possible, the general policy of the OCSD is that: 1. Any determination relating to a Probation Order, Enforcement Compliance Schedule Agreement (ECSA), or Regulatory Compliance Schedule Agreement (RCSA) will be made by the Division Head of the Source Control Division, with a right of appeal by the permittee to the General Manager pursuant to the procedures set forth in Section 617. 2. A user, permittee, or applicant for a permit may request the Steering Committee to hear an appeal of the General Manager's decision pursuant to Section 618. Such request may be granted or denied by the Steering Committee. 3. Any permit suspension or revocation recommended by the Source Control Division Head will be heard and a recommendation made to the General Manager by a OCSD Department Head or other person designated by the General Manager with a right of appeal of the General Manager's order by the permittee to the Steering Committee pursuant to the provisions of Section 618. 4. Actions and decisions by the Division Head or Department Head are made pursuant to a delegation of authority by the General Manager as authorized by Section 107 of this Ordinance. 5. The Board of Directors may adopt rules of procedure to establish the conduct of certain administrative proceedings. Page 56 of 80 C. The OCSD, at its discretion, may utilize any one, combination, or all enforcement remedies provided in Article 6 in response to any permit or Ordinance violation. 601. DETERMINATION OF NON-COMPLIANCE WITH DISCHARGE LIMITS A. Sampling Procedures 1. Sampling of all permittees shall be conducted in the time, place, manner, and frequency determined at the sole discretion of the OCSD. 2. Non-compliance with mass emission rate limits, concentration limits, permit discharge conditions, or any discharge provision of this Ordinance may be determined by an analysis of a grab or composite sample of the effluent of a user. Non-compliance with mass emission rate limits shall be determined by an analysis of a composite sample of the user's effluent, except that a grab sample may be used to determine compliance with mass emission rate limits when the discharge is from a closed (batch) treatment system in which there is no wastewater flow into the system when the discharge is occurring, the volume of wastewater contained in the batch system is known, the time interval of discharge is known, and the grab sample is homogeneous and representative of the discharge. 3. Any sample taken from a sample point is considered to be representative of the discharge to the public sewer. 602. ENFORCEMENT PROCEDURES AND APPLICABLE FEES A. Self-Monitoring Requirements as a Result of Non-Compliance 1. If analysis of any sample obtained by the OCSD or by a permittee shows non-compliance with the applicable wastewater discharge limits set forth in the Ordinance or in the permittee's discharge permit, the OCSD may impose self-monitoring requirements on the permittee. 2. A permittee shall perform required self-monitoring of constituents in a frequency, at the specific location, and in a manner directed by the OCSD. 3. All analyses of self-monitoring samples shall be performed by an independent laboratory acceptable to the OCSD and submitted to the OCSD in a form and frequency determined by the OCSD. Page 57 of 80 4. All self-monitoring costs shall be borne by the permittee. 5. Nothing in this section shall be deemed to limit the authority of the OCSD to impose self-monitoring as a permit condition. B. Purpose of Non-Compliance Sampling Fees The purpose of the non-compliance sampling fee is to compensate the OCSD for costs of additional sampling, monitoring, laboratory analysis, treatment, disposal, and administrative processing incurred as a result of the non-compliance, and shall be in addition to and not in lieu of any penalties as may be assessed pursuant to Sections 615 and 616. C. Non-Compliance Sampling Fees for Composite Samples 1. Each violation of a permittee's permit limit or condition is a violation of this Ordinance. 2. a) If analysis of any composite sample of a permittee's discharge obtained by the OCSD shows a major violation by the permittee of the mass emission rates or concentration limits specified in the permittee's discharge permit or in this Ordinance, then the permittee shall pay non-compliance sampling fees to the OCSD pursuant to fee schedules adopted by the OCSD's Board of Directors. b) If analysis of any composite sample of a permittee's discharge obtained by the OCSD shows a minor violation by the permittee of the mass emission rates or concentration limits specified in the permittee's discharge permit or in this Ordinance, then the OCSD may impose non-compliance sampling fees pursuant to fee schedules adopted by the OCSD's Board of Directors. 3. The fees specified in subsection 602.C.2.(a), C.2.(b) and D herein shall be imposed for each date on which the OCSD conducts sampling as a result of a violation by a permittee. Page 58 of 80 D. Non-Compliance Sampling Fees for Grab Samples and Self-Monitoring Results 1. If analysis of any grab sample analysis of a permittee's discharge shows non-compliance with any concentration limits as set forth in the user's permit or in this Ordinance, the OCSD may impose non- compliance sampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for sampling conducted by the OCSD as a result of a violation by the permittee. 2. If any self-monitoring analysis of a permittee's discharge shows non-compliance with any concentration limits or mass emission rates as set forth in the user's permit or in this Ordinance, the OCSD may impose non-compliance sampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for sampling conducted by the OCSD as a result of a violation by the permittee. 602.1 Probation Order A. Grounds In the event the Division Head determines that a permittee has violated any provision of this Ordinance, or the terms, conditions and limits of its discharge permit, or has not made payment of all amounts owed to the OCSD for user charges, non-compliance fees or any other fees, the General Manager may issue a Probation Order, whereby the permittee must comply with all directives, conditions and requirements therein within the time prescribed. B. Provisions The issuance of a Probation Order may contain terms and conditions including, but not limited to, installation of pretreatment equipment and facilities, requirements for self-monitoring, submittal of drawings or technical reports, operator certification, audit of waste minimization practices, payment of fees, limits on rate and time of discharge, or other provisions to ensure compliance with this Ordinance. C. Probation Order- Expiration A Probation Order issued by the General Manager shall be in effect for a period not to exceed ninety (90) days. Page 59 of 80 602.2 Enforcement Compliance Schedule Agreement (ECSA) A. Grounds Upon determination that a permittee is in non-compliance with the terms, conditions or limits specified in its permit or any provision of this Ordinance, and needs to construct and/or acquire and install equipment related to pretreatment, the General Manager may require the permittee to enter into an ECSA which will, upon the effective date of the ECSA, amend the permittee's permit. The ECSA shall contain terms and conditions by which a permittee must operate during its term and shall provide specific dates for achieving compliance with each term and condition for construction and/or acquisition and installation of required equipment related to pretreatment. B. Provisions The issuance of an ECSA may contain terms and conditions including but not limited to requirements for self-monitoring, installation of pretreatment equipment and facilities, submittal of drawings or reports, operator certification, audit of waste minimization practices, payment of fees, limits on rate and time of discharge, deposit of performance guarantee, interim limits, or other provisions to ensure compliance with this Ordinance. C. ECSA- Payment of Amounts Owed The OCSD shall not enter into an ECSA until such time as all amounts owed to the OCSD, including user fees, non-compliance sampling fees, deposits, or other amounts due are paid in full, or an agreement for deferred payment secured by collateral or a third party, is approved by the General Manager. Failure to pay all amounts owed to the OCSD shall be grounds for permit suspension or permit revocation as set forth in Section 604 and 605. D. ECSA- Permit Suspension/Revocation If compliance is not achieved in accordance with the terms and conditions of an ECSA during its term, the General Manager may issue an order suspending or revoking the discharge permit pursuant to Section 604 or 605 of this Ordinance. Page 60 of 80 603. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA) A. Grounds If at any time subsequent to the issuance of a Wastewater Discharge Permit to an industrial user, Federal Categorical Pretreatment Standards are adopted or revised by the United States Environmental Protection Agency, or in the event the OCSD enacts revised discharge limits, the General Manager, upon determination that an industrial user would not be in compliance with the adopted or revised limits, may require the industrial user to enter into a RCSA with the OCSD under terms and conditions that would provide for achieving compliance with all new standards by the industrial user on a specific date. The RCSA shall have a maximum term of two hundred-seventy (270) days. B. Provisions The issuance of a RCSA may contain terms and conditions including but not limited to requirements for installation of pretreatment equipment and facilities, submittal of drawings or reports, waste minimization practices or other provisions to ensure compliance with this Ordinance. C. RCSA- Non-Compliance Sampling Fee During the period said RCSA is in effect, any discharge by permittee in violation of the RCSA will require payment of non-compliance sampling fees in accordance with Article 6. 604. PERMIT SUSPENSION A. Grounds The General Manager may suspend any permit when it is determined that a permittee: 1. Fails to comply with the terms and conditions of either an ECSA or RCSA. 2. Knowingly provides a false statement, representation, record, report, or other document to the OCSD. 3. Refuses to provide records, reports, plans, or other documents required by the OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 4. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. Page 61 of 80 5. Fails to report significant changes in operations or wastewater constituents and characteristics. 6. Violates a Probation Order. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the OCSD for user charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Violates any condition or limit of its discharge permit or any provision of the OCSD's Ordinance. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for permit suspension, he shall give written notice thereof by certified mail to the permittee setting forth a statement of the facts and grounds deemed to exist, together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the suspension hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for suspension of the permit, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the permittee or its legal counsel/representative at the permittee's business address. Page 62 of 80 C. Effect 1. Upon an order of suspension by the General Manager becoming final, the permittee shall immediately cease and desist its discharge and shall have no right to discharge any industrial wastewater, directly or indirectly to the OCSD's system for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of suspension. 3. An order of permit suspension issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 618 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 605. PERMIT REVOCATION A. Grounds The General Manager may revoke any permit when it is determined that a permittee: 1. Knowingly provides a false statement, representation, record, report, or other document to the OCSD. 2. Refuses to provide records, reports, plans, or other documents required by the OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 3. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to report significant changes in operations or wastewater constituents and characteristics. 5. Fails to comply with the terms and conditions of an ECSA, permit suspension, or probation order. Page 63 of 80 6. Discharges effluent to the OCSD's sewerage system while its permit is suspended. 7. Refuses reasonable access to the permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to the OCSD for user charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Causes interference with the OCSD's collection, treatment, or disposal system. 10. Fails to submit oral notice or written report of bypass occurrence. 11. Violates any condition or limit of its discharge permit or any provision of the OCSD's Ordinance. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for the revocation of a permit, he shall give written notice by certified mail thereof to the permittee setting forth a statement of the facts and grounds deemed to exist together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the hearing, the permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The revocation hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for permanent revocation of the permit, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the permittee Page 64 of 80 or its legal counsel/representative at the permittee's business address. In the event the General Manager determines to not revoke the permit, he may order other enforcement actions, including, but not limited to, a temporary suspension of the permit, under terms and conditions that he deems appropriate. C. Effect 1. Upon an order of revocation by the General Manager becoming final, the permittee shall permanently lose all rights to discharge any industrial wastewater directly or indirectly to the OCSD system. All costs for physical termination shall be paid by the permittee. 2. Any owner or responsible management employee of the permittee shall be bound by the order of revocation. 3. Any future application for a permit at any location within the OCSD by any person subject to an order of revocation will be considered by the OCSD after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 4. An order of permit revocation issued by the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the permittee unless a request for hearing is filed with the Steering Committee pursuant to Section 618 no later than 5:00 p.m. on the fifteenth (15th) day following such mailing. 606. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS A Wastehauler's non-compliance with permit requirements shall be determined by an analysis of a sample of the discharge for any constituent or conditions specified in the Wastehauler's discharge permit or this Ordinance. If the discharge of a Wastehauler is found by the analysis to be in excess of the concentration limits specified in the Wastehauler's discharge permit or in this Ordinance, the Wastehauler shall, after receiving a demand from the OCSD, identify in writing, all sources of the discharge. Even if it is established to the satisfaction of the General Manager that the origin of the discharge is domestic septage, or septic waste, the OCSD may still elect not to accept waste from that particular source. Page 65 of 80 If the discharge is industrial wastewater from an industrial source(s) and exceeds permit concentration limits or limits specified in this Ordinance, the following shall apply: A. First Violation 1. The permittee shall pay a non-compliance sampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for five (5) days. B. Second Violation 1. The permittee shall pay a non-compliance sampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for ten (10) days. 3. The Wastehauler permit may be revoked in accordance with Section 606. 607. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS A. Any person who discharges any waste which causes or contributes to any obstruction, interference, damage, or any other impairment to the OCSD sewerage facilities or to the operation of those facilities shall be liable for all costs required to clean or repair the facilities together with expenses incurred by the OCSD to resume normal operations. Such discharge shall be grounds for permit revocation. A service charge of twenty-five percent (25%) of OCSD costs shall be added to the costs and charges to reimburse the OCSD for miscellaneous overhead, including administrative personnel and record keeping. The total amount shall be payable within forty-five (45) days of invoicing by the OCSD. B. Any person who discharges a waste which causes or contributes to the OCSD violating its discharge requirements established by any Regulatory Agency incurring additional expenses or suffering losses or damage to the facilities, shall be liable for any costs or expenses incurred by the OCSD, including regulatory fines, penalties, and assessments made by other agencies or a court. Page 66 of 80 608. INDUSTRIAL WASTE PASS THROUGH Any person whose discharge results in a pass through event affecting the OCSD or its sewerage facilities shall be liable for all costs associated with the event, including treatment costs, regulatory fines, penalties, assessments, and other indirect costs. The discharger shall submit to the OCSD plans to prevent future recurrences to the satisfaction of the OCSD. 609. PUBLICATION OF VIOLATION Upon a determination in a permit suspension, permit revocation, or civil penalty proceedings that a user has discharged in violation of its permit or any provision under this Ordinance, the OCSD may require that the user notify the public and/or other users of the OCSD sewerage facilities of such violation, of actions taken to correct such violation, and of any administrative or judicial orders or penalties imposed as a result of such violation. 610. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE In accordance with Federal Regulations, the OCSD shall annually cause to be published the names of all industrial users in significant non-compliance. Upon a minimum of a thirty (30)-day notification to the user, said publication shall be made in the newspaper of the largest daily circulation published in the OCSD service area. 611. PUBLIC NUISANCE Discharge of wastewater in any manner in violation of this Ordinance or of any order issued by the General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the General Manager. Any person creating a public nuisance is guilty of a misdemeanor. 612. TERMINATION OF SERVICE A. The OCSD, by order of the General Manager, may physically terminate sewerage service to any property as follows: 1. On a term of any order of emergency suspension or revocation of a permit; or 2. Upon the failure of a person not holding a valid discharge permit to immediately cease discharge, whether direct or indirect, to the OCSD sewerage facilities. B. All costs for physical termination shall be paid by the user as well as all Page 67 of 80 costs for reinstating service. 613. EMERGENCY SUSPENSION ORDER A. The OCSD may, by order of the General Manager, suspend sewerage service or Wastehauler discharge service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause interference to the OCSD sewerage facilities, or may cause the OCSD to violate any State or Federal Law or Regulation. Any discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all industrial wastewater to the sewerage system. B. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) days following the issuance of such order, the General Manager shall hold a hearing to provide the user the opportunity to present information in opposition to the issuance of the Emergency Suspension Order. Such a hearing shall not stay the effect of the Emergency Suspension Order. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the OCSD General Counsel. The General Manager shall issue a written decision and order within two (2) business days following the hearing, which decision shall be sent by certified mail to the user or its legal counsel/representative at that user's business address. The decision of the General Manager following the hearing shall be final and not appealable. 614. INJUNCTION Whenever a discharger of wastewater is in violation of or has the reasonable potential to violate any provision of this Ordinance, permit condition, or any Federal Pretreatment Standard or requirement as set forth in 40 CFR Section 403.8 at seq., fails to submit required reports, or refuses to allow the OCSD entry to inspect or monitor the user's discharge, the OCSD may petition the Superior Court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate to restrain the continued violation or to prevent threatened violations by the discharger. Page 68 of 80 615. CIVIL PENALTIES A. Author! All users of the OCSD's system and facilities are subject to enforcement actions administratively or judicially by the OCSD, U.S. EPA, State of California Regional Water Quality Control Board, or the County of Orange District Attorney. Said actions may be taken pursuant to the authority and provisions of several laws, including but not limited to: (1) Federal Water Pollution Control Act, commonly known as the Clean Water Act (33 U.S.C.A. Section 1251 et seq.); (2) California Porter-Cologne Water Quality Control Act (California Water Code Section 13000 at seq.); (3) California Hazardous Waste Control Law (California Health & Safety Code Sections 25100 to 25250); (4) Resource Conservation and Recovery Act of 1976 (42 U.S.C.A Section 6901 et seq.); and (5) California Government Code, Sections 54739-54740. B. Recovery of Fines or Penalties In the event the OCSD is subject to the payment of fines or penalties pursuant to the legal authority and actions of other regulatory or enforcement agencies based on a violation of law or regulation or its permits, and said violation can be established by OCSD, as caused by the discharge of any user of the OCSD system which is in violation of any provision of the OCSD Ordinance or the user's permit, OCSD shall be entitled to recover from the user all costs and expenses, including, but not limited to, the full amount of said fines or penalties to which it has been subjected. C. Ordinance Pursuant to the authority of California Government Code Sections 54739 - 54740, any person who violates any provision of this Ordinance; any permit condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251 at seq., any person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of the OCSD, upon order of the General Manager, shall petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as the OCSD may impose, assess, and recover pursuant to Federal and/or State legislative authorization. Page 69 of 80 D. Administrative Civil Penalties 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, the OCSD may issue an administrative complaint to any person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit; or c) any suspension or revocation order. 2. The administrative complaint shall be served by personal delivery or certified mail on the person and shall inform the person that a hearing will be conducted, and shall specify a hearing date within sixty (60) days following service. The administrative complaint will allege the act or failure to act that constitutes the violation of the OCSD requirements, the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager or his designee. The person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by the OCSD's General Counsel. 4. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 5. Upon receipt of the written report, the General Manager shall make his determination and should he find that grounds exist for assessment of a civil penalty against the person, he shall issue his decision and order in writing within thirty (30) calendar days after the conclusion of the hearing by his designee. 6. If, after the hearing or appeal, if any, it is found that the person has violated reporting or discharge requirements, the General Manager or Steering Committee may assess a civil penalty against that person. In determining the amount of the civil penalty, the General Manager or Steering Committee may take into consideration all Page 70 of 80 relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish technical or monitoring reports; b) In an amount which shall not exceed three thousand dollars ($3,000.00) for each day for failing or refusing to timely comply with any compliance schedules established by the OCSD; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any waste discharge limit, permit condition, or requirement issued, reissued, or adopted by the OCSD; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by the OCSD; 8. An order assessing administrative civil penalties issued by the General Manager shall be final in all respects on the thirty-first (31st) day after its is served on the person unless an appeal and request for hearing is filed with the Steering Committee pursuant to Section 618 no later than the thirtieth (30th) day following such mailing. An order assessing administrative civil penalties issued by the Steering Committee shall be final upon issuance. 9. Copies of the administrative order shall be served on the party served with the administrative complaint, either by personal service or by registered mail to the person at his business or residence address, and upon other persons who appeared at the hearing and requested a copy of the order. 10. Any person aggrieved by a final order issued by the Steering Committee, after granting review of the order of the General Manager, may obtain review of the order of the Steering Committee in the superior court, pursuant to Government Code Section 54740.6, by filing in the court a petition for writ of mandate within Page 71 of 80 thirty (30) days following the service of a copy of the decision or order issued by the Steering Committee. 11. Payment of any order setting administrative civil penalties shall be made within thirty (30) days of the date the order becomes final. The amount of any administrative civil penalties imposed which have remained delinquent for a period of sixty (60) days shall constitute a lien against the real property of the discharger from which the discharge resulting in the imposition of the civil penalty originated. The lien shall have no effect until recorded with the county recorder. The OCSD may record the lien for any unpaid administrative civil penalties on the ninety-first (91st) day following the date the order becomes final. 12. No administrative civil penalties shall be recoverable under Section 615.D for any violation for which the OCSD has recovered civil penalties through a judicial proceeding filed pursuant to Government Code Section 54740. 616. CRIMINAL PENALTIES Any person who violates any provision of this Ordinance is guilty of a misdemeanor, which upon conviction is punishable by a fine not to exceed $1,000.00, or imprisonment for not more than thirty (30) days, or both. Each violation and each day in which a violation occurs may constitute a new and separate violation of this Ordinance and shall be subject to the penalties contained herein. 617. APPEALS TO GENERAL MANAGER A. General Any user, permit applicant or permittee affected by any decision, action or determination made by the Division Head may file with the General Manager a written request for an appeal hearing. The request must be received by the OCSD within fifteen (15) days of mailing of notice of the decision, action, or determination of the OCSD to the appellant. The request for hearing shall set forth in detail all facts supporting the appellant's request. B. Notice The General Manager shall, within fifteen (15) days of receiving the request for appeal, and pursuant to Section 107, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place. The hearing date shall not be more than thirty (30) days from the mailing of such notice by certified mail to the appellant unless a Page 72 of 80 later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. Hearing At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the Division Head's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by the OCSD's General Counsel. D. Written Determination After the conclusion of the hearing, the Department Head (or other designee) shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the Division Head's original decision, action or determination. Upon receipt of the written report, the General Manager shall make his determination and shall issue his decision and order within thirty (30) calendar days of the hearing by his designee. The written decision and order of the General Manager shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. The order of the General Manager shall be final in all respects on the sixteenth (16th) day after it is mailed to the appellant unless a request for hearing is filed with the Steering Committee pursuant to Section 618, no later than 5:00 p.m. on the fifteenth day following such mailing. 618. APPEALS TO THE STEERING COMMITTEE A. General Any user, permit applicant, or permittee adversely affected by a decision, action, or determination made by the General Manager may, prior to the date that the General Manager's order becomes final, file a written request for hearing before the Steering Committee of the Joint Boards of Directors accompanied by an appeal fee in the amount established by a fee ordinance of the OCSD Board of Directors. The request for hearing shall set forth in detail all the issues in dispute for which the appellant seeks determination and all facts supporting appellant's request. No later than sixty (60) days after receipt of the request for hearing, the Steering Committee shall either set the matter for a hearing, or deny the request for a hearing. Page 73 of 80 A hearing shall be held by the Steering Committee within sixty-five (65) days from the date of determination granting a hearing, unless a later date is agreed to by the appellant and the Steering Committee. If the matter is not heard within the required time, due to actions or inactions of the appellant, the General Manager's order shall be deemed final. B. Granting Request for Hearing The Steering Committee shall grant all requests for a hearing on appeals concerning permit suspension, revocation, or denial. Whether to grant or deny the request for a hearing on appeals of other decisions of the General Manager shall be within the sole discretion of the Steering Committee. C. Appeal Fee Refund The appeal fee shall be refunded if the Steering Committee denies a hearing or reverses or modifies, in favor of the appellant, the order of the General Manager. The fee shall not be refunded if the Steering Committee denies the appeal. D. Written Determination After the hearing, the Steering Committee shall make a determination whether to uphold, modify, or reverse the decision, action, or determination made by the General Manager. The decision of the Steering Committee shall be set forth in writing within sixty- five (65) days after the close of the hearing and shall contain a finding of the facts found to be true, the determination of issues presented, and the conclusions. The written decision and order of the Steering Committee shall be sent by certified mail to the appellant or its legal counsel/representative at the appellant's business address. The order of the Steering Committee shall be final upon its adoption. In the event the Steering Committee fails to reverse or modify the General Manager's order, it shall be deemed affirmed. 618.1 Appeal of Charges and Fees Any user, permit applicant, or permittee affected by any decision, action, or determination by the OCSD, relating to fiscal issues of the OCSD in which the user, applicant, or permittee is located, including but not limited to the imposition and collection of fees, such as connection charges, sewer use charges, special purpose discharge use charges and Wastehauler fees, may request that the OCSD reconsider imposition of such fees or charges. Following review of such a request, the OCSD shall notify the user, permit applicant, or permittee by certified Page 74 of 80 mail of the OCSD's decision on the reconsideration request. Any user, permit applicant, or permittee adversely affected by the OCSD's decision on the reconsideration request may file an appeal which shall be heard by the Board of Directors of the District in which the appellant's property is located. The notice of appeal must be received by the OCSD within thirty (30) days of the mailing of the OCSD's decision on the reconsideration request. Notwithstanding the foregoing, appeals of non-compliance sampling fees shall be made pursuant to the appeal procedures set forth in Sections 617 and 618. 619. PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty-five (45) days after date of invoice. B. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty-six (46) days after date of invoice, a basic penalty of ten percent (10%) of the base invoice amount, not to exceed a maximum of$1,000.00; and 2. A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90) days shall be cause for immediate initiation of permit revocation proceedings or immediate suspension of the permit. D. Penalties charged under this Section shall not accrue to those invoices successfully appealed, provided the OCSD receives written notification of said appeal prior to the payment due date. E. Payment of disputed charges is still required by the due date during OCSD review of any appeal submitted by permittees. Page 75 of 80 619.1 Collection of Delinquent Accounts Collection of delinquent accounts shall be in accordance with the OCSD's policy resolution establishing procedures for collection of delinquent obligations owed to the OCSD, as amended from time to time by the Board of Directors. Any such action for collection may include an application for an injunction to prevent repeated and recurring violations of this Ordinance. 620. RECOVERY OF COSTS INCURRED BY OCSD In the event permittee fails to comply with any of the terms and conditions of the OCSD's Ordinance, a probationary order, a permit suspension or revocation, an ECSA, RCSA, or a permit issued hereunder, the OCSD shall be entitled to reasonable attorney's fees and costs which may be incurred in order to enforce any of said terms and conditions, with or without filing proceedings in court. 621. FINANCIAL SECURITY/AMENDMENTS TO PERMIT A. Compliance Deposit Permittees that have been subject to enforcement and/or collection proceedings may be required to deposit with the OCSD an amount determined by the General Manager as necessary to guarantee payment to OCSD of all charges, fees, penalties, costs and expenses that may be incurred in the future, before permission is granted for further discharge to the sewer. B. Delinquent Accounts The OCSD may require an amendment to the permit of any permittee who fails to make payment in full of all fees and charges assessed by the OCSD, including reconciliation amounts, delinquency penalties, and other costs or fees incurred by Permittee. C. Bankruptcy Every Permittee filing any legal action in any court of competent jurisdiction, including the United States Bankruptcy Court, for purposes of discharging its financial debts or obligations or seeking court-ordered, protection from its creditors, shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. D. Permit Amendments The OCSD shall review and examine Permittee's account to determine whether previously incurred fees and charges have been paid in accordance with time requirements prescribed by this Ordinance. The OCSD may thereafter issue an Page 76 of 80 amendment to the User's permit in accordance with the provisions of Article 3 and Section 621(E) of this Ordinance. E. Security An amendment to a waste discharge permit issued pursuant to Sections 621(B), (C), and (D), may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by OCSD and shall not be used by the OCSD to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. F. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit pursuant to Sections 621(B), (C), and (D), the OCSD shall either return the security deposit posted by the Permittee or credit their account. 622. JUDICIAL REVIEW A. Purpose and Effect Pursuant to Section 1094.6 of the California Code of Civil Procedure, the OCSD hereby enacts this part to limit to ninety (90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions As used in this Section, the following terms and words shall have the following meanings: 1. Decision shall mean and include adjudicatory administrative decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit or a license. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the General Manager, the final decision, all admitted exhibits, all rejected exhibits in the possession of the OCSD or its offices or agents, all written evidence, and any other papers in the case. Page 77 of 80 3. Party shall mean a person whose permit has been denied, suspended, or revoked. C. Time Limit for Judicial Review Judicial review of any decision of the OCSD or its officer or agent may be made pursuant to Section 1094.5 of the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (90th) day following the date on which the decision becomes final. If there is no provision for reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected. D. Preparation of the Record The complete record of the proceedings shall be prepared by the OCSD officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he has filed written request therefor. The OCSD may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. Extension If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (30th) day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record, if appropriate. F. Notice In making a final decision, the OCSD shall provide notice to the party that the time within which judicial review must be sought is governed by Section 1094.6 of the Code of Civil Procedure. Page 78 of 80 G. Administrative Civil Penalties Notwithstanding the foregoing in Section 622, and pursuant to Government Code Section 54740.6, judicial review of an order of the Steering Committee imposing administrative civil penalties pursuant to Section 615.D may be made only if the petition for writ of mandate is filed not later than the thirtieth (30th) day following the day on which the order of the Steering Committee becomes final. ARTICLE 7 SEWER SERVICE CHARGES - CONNECTION CHARGES 701. SANITARY SEWER SERVICE CHARGE Every parcel of real property located within the OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD system, shall pay a sanitary sewer service charge in an amount adopted by the Board of Directors by separate Ordinance. 702. CAPITAL FACILITIES CONNECTION CHARGE Every parcel of real property located within the OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD system, shall pay a capital facilities connection charge in an amount adopted by the Board of Directors by separate Ordinance. ARTICLE 8 SEVERABILITY 801. SEVERABILITY If any provision of these Regulations or the application to any or circumstances is held invalid, the remainder of the regulations or the application of such provision to other persons or other circumstances shall not be affected. 802. GENERAL APPLICATION The provisions of this Ordinance shall apply to all properties within the OCSD including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations. Section II: This Ordinance is enacted in order to preserve the public Page 79 of 80 health and safety, and in order to continue the provision of sewer services by the OCSD. The fads requiring the public health and safety to be preserved are that the regulation of the discharge of industrial and sanitary sewage is regulated by Federal and State law, and protection of individuals' health and the environment require that no discharges of untreated sewagetwastewater are allowed to occur that are not in accord with technical specifications and requirements. Section III: Effective Date. This Ordinance shall take effect October 1, 2009. Section IV: Repeal. Ordinance No. OCSD-37 is hereby repealed. Section V: The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held the 23 day of September, 2009. Lmlpr- Chair, B a d of Directors Oran' C unty Sanitation District ATTEST: Clerk of tl Boary Orange County Sanitation District BradIdy R. H?binf Ge6eral ouq Page 80 of 80 Appendix B 1991 Memorandum of Understanding Summary OCSD/SAWPA 1991 MOU Requirements, Responsibilities and Practices DRAFT—8/29/2012 MOU Section Summary of Requirements Responsible Party(iesp- Comments Findings Documents/Evidence General Requirements 1 SAWPA shall continue to exercise jurisdiction and control over all dischargers located within SAWPA's territorial boundaries in the Upper Basin that are tributary and discharge to OCSD's facilities. SAWPA may enter into an inter-jurisdictional agreement with a member agency or a consulting firm to conduct the pretreatment program, but that does not relieve SAWPA of the ultimate responsibility for the pretreatment program. 1, E-1 Issue wastewater discharge SAWPA-Industrial Waste Provide evidence that all dischargers permits and enforce violations of Survey,Permits for all SIUs that should be permitted are permitted permit requirements. (CIUs and Non-CIUs) and that they are properly permitted according to 40 CFR 403 and EPA Guidance. Evidence of enforcement activities. 1, E-2 Monitor wastewater flows and SAWPA—NOVs issued, Provide evidence of enforcement actions perform inspections. correspondence with performed for violations identified dischargers and OCSD, consistent with 40 CFR 403 and EPA Enforcement Response Plan, Guidance Enforcement Response Guide, Significant non-Compliance (SNC)determination. 1, E-3 Monitor wastewater flows. SAWPA-Reports and flow Provide evidence of flow monitoring from monitoring data. users discharging to the SARI system 1. E4 Collect any non-compliance fries, SAWPA-Connection fee Provide evidence that IUs are being fees,user charges,taxes,capital program and surcharge properly charged/fined and sufficient recovery fees,and other lawful program. costs are being recovered to administer charges as levied by SAWPA. the pretreatment program 1 1. E-5 Prepare and submit appropriate SAWPA-Pretreatment reports Provide evidence that all required quarterly and annual reports submitted quarterly and yearly. reports are complete and are being pertaining to the administration of submitted to the appropriate agency on Ordinance No. 1 and the MOU to time the EPA, RWQCB and OCSD. 2 Parmittina Procedures 2,A Prior to issuing permits to direct SAWPA-Permit applications, Provide evidence that this process is and indirect dischargers,require draft permits,fad sheets and being followed properly and concurrence permit applications, prepare draft correspondence with OCSD. is being received by OCSD prior to permits,and submit both to OCSD issuing permits. for their review and concurrence. 2,B Notification to Users of the N/A. N/A conditions of the Ordinance and MOU requirements. 2,C Require Users currently SAWPA—Procedures for Provide evidence that users have been connected to the SARI system permitting existing users, identified and were permitted within 30 without a permit to obtain a industrial waste survey and days. ermit. permit examples. 2, D Authority to change permit SAWPA-Correspondence Provide evidence of permit changes and conditions and prompt notification between parties and evidence correspondence between parties for of changes between parties. of permit changes. notification. SAWPA may elect to impose more stringent discharge requirements. 2, E Copies of all pennits,renewed SAWPA-List of permits, Compare permits received vs. permits and modified permits,signed by copies of permits and issued. SAWPA,shall be forwarded to correspondence with OCSD. OCSD within 15 days of issuance. 3 Monitoring 3,A Scheduled and unscheduled SAWPA-Monitoring/sampling Provide evidence of monitoring direct monitoring of all direct and indirect schedule and data. and indirect dischargers. dischargers tributary to the SARI OCSD can conduct its own system. monitoring but must ask SAWPA for the info first. 2 3,B Optional self-monitoring program SAWPA-Self-Monitoring Provided evidence of salt-monitoring. for discharger. SAWPA must Reports to OCSD. provide OCSD with self- SAW PKs correspondence Provide justification for no selt- monitoring results with dischargers. SAWPA monitoring. shall include such self- monitoring program in the Permit requirements. The self- monitoring program shall be approved by OCSD. 3,C Each party shall provide copies of Both-Monitoring/sampling Provide evidence of report sharing. reports for all monitoring, reports. sampling or laboratory testing on Compare required reports vs. reports dischargers in the Upper Basin. received. 3, D Except in an emergency,OCSD OCSD-Notification Evidence of any past monitoring. must notify SAWPA at least 24 hours in advance before conducting its own monitoring. 4 Inspection 4,A Maintain and implement an SAWPA-Report of IU Provide evidence of inspections inspection program and document inspection findings, performed and submitted reports inspections with a written report. Inspection schedule and 4,13 Immediate notification of any Both-Correspondence SAWPA and OCSD to notify each other discharge which presents an between SAWPA and OCSD. immediately when either agency imminent danger to the public Provide evidence of becomes aware of a discharge from health, safety or welfare,or which notification of a qualifying SAWPKs area that may present an threatens to interfere with the discharge. imminent danger to the public health, operation of OCSD. safety or welfare,or which threatens to interfere with the operation of OCSD. 4,C Inspection frequencies are SAWPA-List of facilities, Provide evidence of inspections dependent upon the type of inspection frequency and performed. Provide justifications for discharger. In no event shall inspection dates for inspection frequencies. inspections be conducted less dischargers. than twice annually or less than the minimum number required by Federal Regulations.OCSD may participate in inspections arranged by SAWPA. 3 4, D OCSD may initiate an inspection OCSD to notify SAWPA by OCSD to give SAWPA a 24 hr notice of the Upper Basin. telephone,confirmed in writing except in the case of an emergency. or by electronic telecommunication(FAX). Reoortina 5 OCSD shall advise SAWPA of any changes in the OCSD pretreatment requirements which will affect SAWPA. 5,A Monthly activity report detailing SAWPA-Reports submitted to Provide evidence of monthly reports the number and identification of OCSD and related submitted. new and existing permittees, correspondence with OCSD. inspections,enforcement actions, and monitoring data. 5,B Provide copies of enforcement SAWPA-Enforcement Provide evidence of enforcement correspondence. correspondence correspondence. 5,C Monthly flow and quality data for SAWPA-Flow and quality Provide evidence of flow and quality the discharge to the OCSD data. data provided to OCSD. system and monitoring station. 5, D Quarterly report and Annual report SAWPA-Quarterly and Provide evidence of quarterly and of summary of items discussed annual reports annual reports submitted to OCSD. above. 6 Enforcement 6,A Responsible for enforcing all See 1 E-2 See 1 E-2 waste discharge policies and procedures to all permit terms and conditions 6,B Inform OCSD of all dischargers in SAWPA-Correspondence Provide evidence that OCSD was noncompliance and the actions to with OCSD and OCSD copied notified of all non-compliances and be taken to enforce the provisions on NOVs issued. actions taken. 6,C Require all member agencies who SAWPA-MOU between Provide evidence that all member discharge to the SARI system to SAWPA and Member agencies agencies who discharge into the SARI enter into an inter-jurisdictional and any other documented system have entered into an agreement agreement with SAWPA to agreements or actions. to implement a pretreatment program. implement a pretreatment program. Evaluation of discharger categorical 4 Obligation to comply with Federal SAWPA and each of its classification,inspections and reports. requirements. member agencies assume all obligations set forth in Title 40 CFR, Part 403 including notification of pertinent categorical standards, monitoring and reporting. Amending Ordinance to ensure SAWPA will amend its continuous compliance with Ordinance to comply with the Federal requirements. new Federal requirements in the event of amendment(s)to applicable Federal statutes or regulations. Communication of changes OCSD shall advise SAWPA or affecting SAWPA. any changes in the OCSD pretreatment requirements affecting SAWPA. 6, D Review of SAWPA Ordinance and OCSD shall review SAWPA's Reports of OCSD's review or remedial amendments and activities to Ordinance and any inter- plans. ensure conformance with Federal jurisdictional agreements for regulations. conformance with 40 CFR Part 403. OCSD may periodically review SAWPA's pretreatment program activities to ensure the enforcement of pretreatment requirements. OCSD may develop and issue a remedial plan with a time schedule for attaining compliance if OCSD determines that SAWPA has failed or has refused to fulfill any pretreatment requirements. OCSD may upon 30 day 5 written notice suspend rights to discharge into the SARI line if SAWPA fails to satisfy the terms of the remedial plan.... OCSD may seek injunctive relief against SAWPA or member agencies or dischargers for failure to comply with the remedial plan. 7 Enforcement Process by OCSD 7.A If SAWPA does not take OCSD shall send written Documentation relating to enforcement. appropriate enforcement actions, notice to SAWPA. OCSD with notification to SAWPA may cause enforcement actions. If SAWPA agrees with OCSD, SAWPA shall undertake proceedings under Article 6 of SAW PA's Ordinance. If SAWPA disagrees with OCSD,a hearing shall be held by the SAWPA Commission no later than 10 days from notice. If OCSD disagree with the findings or enforcement/remedial actions of the SAWPA Commission, OCSD may pursue such remedies as provided by law and regulations. OCSD and SAWPA to take joint enforcement actions when OCSD and SAWPA are in agreement. 7.B Steps to be taken in the case of OCSD may immediately Correspondence and documented danger to the SARI line,OCSD or initiate steps to identify source actions taken. the environment. and haittiprevent such 6 discharge. OCSD may suspend SAWPA's use of OCSD's facilities and seek injunctive relief against SAWPA, its Member Agencies or users. 8 Indemnity SAWPA shall indemnify OCSD for all damages,fines and costs as a result of waste discharge from SAWPA. OCSD shall indemnify SAWPA for all damages,fines and costs as a result of waste discharge from OCSD. 9 Amendments and Modifications Terms of this MOU maybe amended only by written agreement by both parties. MOU shall be reviewed,and revised,if necessary,at least every three years from the effective date. This MOU along with SAW PA's Ordinance establishes procedures for the quality monitoring program set forth in paragraph 5,"Quality Criteria'of the aforementioned April, 1972 Agreement. 10 Notice Except as otherwise provided herein,all notices and other communication required or pertinent shall be in wrifing with confirmed receipt It shall be deemed received after 72 hours. 'Note: "Responsible Party(ies)'designates the agency(ies)responsible for taking action under the MOU Section. • OCSD, • SAWPA, • Both(both agencies; OCSD and SAWPA),or • Neither 7 Appendix C 1996 Wastewater Treatment and Disposal Agreement Summary OCSD/SAWPA 7/24/1996 WASTEWATER TREATMENT AND DISPOSAL AGREEMENT DRAFT—8/17/2012 Agreement Section Summary of Requirements and SAWPA Responsibility Responsible Comments Findings Party(ies)' Documents/Evidence 1 Treatment and Disposal Rights 1,(a) Grant of Right Both -Copy of OCSD grants and conveys to SAWPA a Treatment and Disposal Agreement on file Right. 1,(b) Nature of Treatment and Disposal Riaht Both—Copy of SAWPA has no night to use any particular existing or expanded Agreement on file. OCSD facility. OCSD has sole discretion with regard to treatment and disposal of waste. 1,(c) Quantity of Treatment and Disposal Right SAWPA-Flow Confirm the 17 MGD SAWPA may acquire Treatment and Disposal Right in increments monitoring data and purchase. for an ultimate Treatment and Disposal Right of 30 MGD. reports. 1,(c), (1) OCSD's connection charges were subject to review in 1996. N/A N/A N/A When connection charges are reduced,a credit is issued. 1.(d) Effective Date and Term of Riaht Both—Awareness of SAWPA's Treatment and Disposal Right shall continue in effect this requirement and until April 12,2046. plan to ensure In 2041,good faith negotiations shall be undertaken between continuity. SAWPA and OCSD for SAWPA to join OCSD as a co-equal participant in OCSD's Joint Ownership Operation and Construction Agreement or any agree ant which shall supersede or replace it. 2 Ca ital Pa ants 2,(a), (1) SAWPA shall pay a sum equal to OCSD's existing Treatment and N/A N/A N/A Disposal Right charge for each 1 MGD Monthly Average Flow increment. 2,(a), (1),(A) SAWPA shall acquire sufficient additional increments of the N/A N/A N/A Treatment and Disposal Right so that its total Treatment and Disposal Right exceeds that Monthly Average Flow. 2,(a), (2) SAWPA may elect to pay for an additional increment(s)of the WA N/A N/A Treatment and Disposal Right over a 10 year period.An interest rate would apply. 2,(a), (2),(A) If SAWPA elects installment acquisition,OCSD shall recalculate N/A N/A N/A monthly amount for each installment based on annual average BOD and SS loadings. 2,(a), (2),(B) SAWPA may discontinue the acquisition of the increments of the N/A N/A N/A Treatment and Disposal Right with a 15 day advance written notice. 2,(a), (2),(C) If an additional increment is acquired following discontinuance of N/A N/A N/A the acquisition of an increment, a credit equal to 75%(excluding 1 interest is calculated as s ached in Section 2(a)(2). 2,(a), (3) SAWPA is obligated to pay any amount owed to OCSD whether or N/A N/A N/A not OCSD provides an invoice to SAWPA. 3 Emergency Discharge SAWPA—Flow Policy,procedure or SAWPA, in an operational emergency, may discharge in excess of monitoring data. emergency plan. its then-existing Treatment and Disposal Right for up to 90 days, provided that: 3,(a) SAWPA provides written notice prior to or by the next business SAWPA—Records day identifying nature and duration of discharge and contact for and correspondence further information. with OCSD. 3,(b) OCSD may impose conditions on excess discharge to protect OCSD—Reports and OCSD's collection and treatment facilities. flow monitoring data. 3, c Disposal costs and a surcharge may apply. N/A N/A N/A 3,(d) SAWPA shall immediately acquire additional increments after 90 N/A N/A N/A days of exceeding its Treatment and Disposal Right. 3,(a) "Operational emergency'shall mean an equipment breakdown or N/A N/A N/A other malfunction. 4 Payment of Disposal Costs OCSD's Invoices and Confirm that SAWPA is N/A SAWPA shall pay Disposal Costs quarterly based on projected SAWPA's payments. being billed quarterly. wastewater discharges as calculated by OCSD. Adjustments for flow,BOD and TSS are done annually. 5 Quality Criteria SAWPA—Procedures SAWPA has an obligation to ensure compliance by all users who for inspecting discharge directly or indirectly,to the SARI line.Compliance shall dischargers and be measured at the Green River Metering Station. Direct and monitoring records. Indirect Discharges shall comply with the 1991 MOU at their on final point of discharge. 5,(a) OCSD reserves the right to impose reasonable discharge limits in WA OCSD did establish a N/A lb./day in the future. BOD limit in Ibs/da . 5,(b) SAWPA shall furnish and periodically update, upon OCSD's SAWPA—Reports, request,a list of all discharges into SAWPA's system with volume procedures for and quality of such discharges. maintain list, SAWPA shall not without prior written consent from OCSD,make responsible person, capacity in its system available to any person who was declined procedure for verifying service from OCSD for inability to comply with OCSD's eligibility of new requirements. dischargers 5,(c) SAWPA shall establish, maintain and fund a quality monitoring SAWPA—Procedures, SAWPA's monitoring program, acceptable to all parties,for Wastewater discharged BMPs and responsible budget and process. from SAWPA to OCSD. I individuals . 5,(d) SAWPA shall comply with any additional discharge limits and/or Both—Communication directives imposed on OCSD by EPA,Cal EPA or RWQCB. of OCSD's limits and directives. 5,(a) SAWPA shall not discharge or allow the discharge of sludge to the SAWPA—Procedures SARI. and BMPs. 2 51(f) SAWPA may allow side stream flows from water treatment Both—request from facilities in SAWPA's SARI service area to be discharged only SAWPA and response after OCSD's written authorization. from OCSD. 6 Quality Violations SAWPA—Copy of SAWPA's plan in the SAWPA is obligated to comply with OCSD's Ordinance. In the OCSD's latest event OCSD suspends event of noncompliance, OCSD can,with 24 hr.notice,suspend ordinance on file. all discharges. all or part of SAWPA's use of OCSD's facilities and its Treatment SAWPA's compliance and Disposal Right. rocedures/verification. 6,(a) SAWPA shall,in the event of noncompliance, be subject to OCSD—Enforcement enforcement actions pursuant to all applicable federal,state and actions, NOVs,Orders, local laws and pay OCSD for repairs,investigation and etc. administrafive overhead. 7 Reclaimable Wastewater SAWPA—Procedure Additional efforts by SAWPA shall in good faith, make reasonable efforts to minimize to prevent reclaimable SAWPA in the past direct and indirect Reclaimable Wastewater discharges. wastewater fiscal year. discharges. 8 Metes SAWPA—Record of Review data and SAWPA shall pay the cost of maintaining and replacing the meter flow monitoring data records on meter at the Green River Metering Station. If meter malfunction,flow and records. maintenance and shall be estimated using the average flows of 3 previous months. repair. SAWPA shall repair the flow meter within a reasonable time. 9 Assignment SAWPA—Awareness SAWPA's handling of SAWPA shall be the public entity having primary responsibility for of Agreement and liability and obligation in regional reallocation, in the area upstream from the OCSD,of its procedure to assign the case delegated. Treatment and Disposal Right. Treatment and Agreement shall not be transferred or assigned without OCSD's Disposal Right. written consent. SAWPA can assign a portion of the Treatment and Disposal Right as long as it does not affect SAWPA's liabilities and obligations to OCSD. 10 Fees/Charges N/A N/A N/A SAWPA is obligated to pay any fees established by OCSD for capital assessments, California health and Safety Code section 5470 at seg. 11 Protection of OCSD Facilities Both—SAWPA's SAWPA's procedure or SAWPA shall,at its sole expense,prevent the discharge of Procedures to emergency plan in the Wastewater to the SARI from the Stringfellow Treatment Facility or prevenUdiverting event of diversion. from other sources that OCSD determines may adversely affect discharge from the operation at OCSD's Plant 1. Stringfellow and other OCSD shall provide written notice,as soon as possible,to sources with negative SAWPA to temporally divert to Plant 1 when necessary. impact on OCSD OCSD shall provide,during diversions,a temporary discharge plants. location for the discharge by SAWPA ofthe wastewater discharge OCSD—Notice and from the Stringfellow Treatment Facility to OCSD's facilities. alternative for 3 discharging. 12 Acts of God Both. Neither party is liable for failure to comply by reason of flood,fire, earthquake or act of God. Due diligence must be exercised and repair costs shall be shared based on capacity. 13 Arbitration Both. In the event of a dispute,the issues of dispute shall be submitted to arbitration. 14 Attorney Fees Both. Each a shall a its own costs and attorney fees. 15 1972 Agreement Both. The 1996 Agreement supersedes the 1972 Agreement. The 8 MGD previously acquired under the 1972 agreement are deemed to have been acquired under the 1996 Agreement. 16 Integration Both—Copy of 1991 Nothing in this 1996 Agreement shall affect the terms of the April MOU on file. 1, 1991 MOU. 17 Modifications Both—Communication This Agreement shall not be changed,modified or supplemented regarding requested except in a writing signed by all parlies. changes to Agreement. 18 No Waiver Both—Awareness of No delay or omission in the exercise of any right or remedy shall Agreement. impair such right or remedy or be construed as a waiver. Delay and omissions shall not be construed as a waiver. Waivers must be in writing. 19 Headings Both—Awareness of Headings are not part of this Agreement. Agreement. 20 Severability Both—Awareness of If any portion of the Agreement is determined invalid,illegal or Agreement. unenforceable,such provision shall be severable from the rest of the Agreement without affecting the rest of the Agreement. 21 Notices Both—Awareness of All notices and communication shall be addressed to the GM(of Agreement. Records OCSD or SAWPA)in writing and shall be personally delivered or of previous mailed registered or certified mail, return receipt requested,and correspondence. postage prepaid. 22 Interpretation of Governing Law Both—Awareness of Agreement is construed and enforced in accordance with the laws Agreement. of the Sate of California. 23 Counterparts and Executions Both—Awareness of Agreement may be executed in multiple counterparts. A reement. 24 Limitation on Discharge SAWPA—Awareness List of exceptions. SAWPA shall not allow,except to the extend connections ofA reement. 4 presently exist,directly or indirectly,the discharge to the SARI of any wastewater originating outside SAWPA's SARI Service Area, unless SAWPA first obtains OCSD's written approval of such discharge. 25 Termination Both-Awareness of A reement ex fires on A ril 12,2046. Agreement. 26 Third Party Beneficiaries Both—Awareness of No benefit to third party is intended in this Agreement. Agreement. 27 SARI Capacity Rlahts Both—Awareness of Nothing in this Agreement shall be deemed to create any right of Agreement. SAWPA to capacity in the SARI, nor any obligation of OCSD to provide such capacity. 28 Stormwater Discharges SAWPA—Awareness SAWPA shall take all reasonable steps necessary to ensure that of Agreement, stormwater is not discharged into the SARI. Stormwater discharge procedures and BMPs. to the SARI is not authorized. 29 Interest N/A N/A N/A If SAWPA fails to make payment within 45 days from the date of an OCSD's invoice, 1.5%interest rate will be charged. 30 Changes in Fees/Charges N/A N/A N/A If fundamental changes are adopted for calculating fees and charges, OCSD and SAWPA agree to negotiate in good faith new equitable fees and charges. 31 Meet and Confer Both—Awareness of OCSD and SAWPA shall meet and confer within one year form the Agreement. effective date of the Agreement to determine whether this Agreement is functioning as anticipated and to resolve any issues. OCSD and SAWPA may meet at any other time during the term of this Agreement toward the same end. 32 Notice Re Continuing Guaranty Correspondence. Does SAWPA perform N/A SAWPA shall,on or before July 1 of each year,provide written this activity? notice to OCSD allocating among SAWPA's members the respective percentages of SAWPA's total liability to OCSD for which each SAWPA member is agency is guaranteeing payment. "Note: "Responsible Parry"designates the agency(ies)responsible for taking action under the Agreement Section. • OCSD, • SAWPA, • Both(both agencies; OCSD and SAWPA),or • Neither 5 Appendix D 201S Internal Audit Scope of Work List of Questions with Answers Provided by SAWPA Section I—Permitting 1. Since January 2014,does SAWPA permit the appropriate facilities? Yes. SAWPA solely issues permits for,and reports on,all agency owned facilities AKA"conflict of interest" permits along with the Stringfellow Pretreatment Facility. SAWPA issues the joint signature permits prepared alongside the Contract and Member Agencies. 2. Are the appropriate facilities permitted generally in accordance with federal,state,and local Pretreatment regulations? Yes. All facilities are permitted in accordance with all applicable regulations after concurrence from OCSD. 3. Does SAWPA receive a copy of the permit application,fact sheet,and draft permit for each permit issuance or renewal? Yes. SAWPA receives a copy of each permit application. All permits and fact sheets are either generated by SAWPA, in the case of"conflict of interest permits"or submitted to SAWPA,after preparation by the Agencies,for review. Once SAWPA approves the permit it is sent to OCSD for concurrence. The documents are then stored in the SAWPA database management software, PACS, as well as on the OCSD SharePoint site. SAWPA has developed a detailed SOP on this process. 4. Are copies of all permits,permit applications,and fact sheets for permit issuance or renewal readily available from SAWPA in either hardcopy or digitally for review and copying? Yes. Permits,fact sheets,and applications,along with applicable supplemental information are stored in the SAWPA database management software, WACS. SAWPA also uploads the permit, fact sheet, and concurrence checklist on the OCSD SharePoint site. SAWPA has developed a detailed SOP on this process. SAWPA also maintains a hardcopy library of this information for easy review as well. 5. Is SAWPA submitting complete and accurate draft permit packages for OCSD's concurrence? Yes. SAWPA submits draft permits,fact sheets, and permit checklists to OCSD for every permit it issues. Permits are only issued following concurrence from OCSD. The permit,fact sheet,and concurrence checklist are then posted to the OCSD SharePoint site following issuance. SAWPA has developed a detailed SOP on this process. 6. Does SAWA issue or revise permits in accordance with the updated SAWPA Pretreatment Program Control Documents? Yes. All permits are issued, renewed, revised,or amended in accordance with the updated SAWPA PPCDs. All permits and permit amendments are only issued following concurrence from OCSD. 7. Have all the permits been physically converted to SAWPA permits whether issued by SAWPA or issued jointly by SAWPA and a Member or Contract Agency? If not, is there a schedule for when this task will be completed? (Note:As an interim measure,SAWPA issued a letter amendment converting all permits to SAWPA permits,which was allowed by OCSD. The question askes whether the actual paper permits now indicate that all of the permits are SAWPA permits.) Yes. As mentioned a letter,dated January 1,2014 was issued to each permittee notifying them that their permit had been either converted to a SAWPA permit or a jointly signed permit from SAWPA and a Member or Contract Agency. The remaining few permits still in the older format are tracked via spreadsheet and will be physically updated during the next permit renewal process. 8. Has SAWPA addressed its"problem permits,"those permits which were previously identified as requiring more time than the SRP allowed? If not,when will this task be completed? Yes. The problem permits have been addressed. 9. Are all existing permits renewed by the expiration date? If not,what percentage of permits exceeds the original expiration date? Does SAWPA issue permit extensions in a timely manner? How many extensions are granted,and what is the range of the length of time before permits are ultimately renewed? What are the reasons for the delay? All permits are either renewed on time or extended in a timely manner as necessary. This process is tracked via spreadsheet. The length of time permits are extended varies based on the reason for the extension. Permit extensions are issued for a variety of reasons: complexity,the OCSD concurrence process,continuous revision to the permit templates,the SAWPA review process,SAWPA or Member/Contract Agency review of the application prior to development of the draft permit,stormwater issues,Site Inspections,etc... Increasing the duration of permits as part of the ongoing OCSD Ordinance Update should greatly enhance SAWPA's ability to renew all permits before the original expiration dates. 10. If all permits are not renewed on time,what is SAWPA doing to address the outstanding permits? All permits are renewed on time prior to their original expiration date,or extended expiration date. All permits are renewed prior to the Federal maximum permit duration of 5 years. 11. What types of permitting metrics does SAWPA use? Does SAWPA have goals and expectations set for permit issuance or renewal? If so,what are they? How has SAWPA acted on the metrics? Are these issues communicated to OCSD and the Member and Contract Agencies? If so,how and how often? The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated,all permit issuance dates,expirations,and extensions are tracked via spreadsheet. The goal would be to have all permits renewed prior to initial expiration, however due to the short duration of permits,the ongoing permit template updates, and the OCSD Concurrence process that goal has had to be flexible. Any issues that arise are communicated to OCSD via the SAWPA Manager of Permitting and Pretreatment by email or phone if an immediate resolution is required. Further discussions on these issues are presented during the quarterly coordination meetings between SAWPA and OCSD. Meeting minutes are stored on the OCSD SharePoint site. Issues that must be discussed between SAWPA and Member/Contract Agency are communicated to the appropriate party via the SAWPA Manager of Permitting and Pretreatment by email or phone if any immediate resolution is required. Bi-monthly face to face meetings and Bi-weekly teleconferences are conducted between SAWPA and the Agencies. Internal meetings at SAWPA occur weekly to discuss any issues. Meeting minutes and agendas for these meetings are tracked via a binder stored at SAWPA. 12. Is there consistency in how SAWPA and the Member and Contract Agencies perform their permitting responsibilities across the distributed program? Yes. All permits are developed utilizing the same starting point templates. All permits are then submitted to the SAWPA Manager of Permitting and Pretreatment for review. The SAWPA Manager of Permitting and Pretreatment then submits finalized draft permits to OCSD for concurrence. 13. Is there a slug control plan for each permitted that is required to have one? Yes. This is tracked via spreadsheet. Finalized Slug Control Plans are stored with the iPACS system. 14. Do permits adequately reflect limits,conditions, requirements,and prohibitions reflected in the MOU and Agreement documents between OCSD and SAWPA? Yes. Once OCSD has finalized their Ordinance and Local Limits updates SAWPA will adopt the changes and incorporate into its permits as necessary. 15. Has SAWPA denied any permits? At this time SAWPA has not had to deny any permits. If SAWPA denies a permit it will be posted to the OCSD SharePoint site. Permitting Best Management Practices SAWPA has developed a detailed Standard Operating Procedure with flow diagrams that covers the permitting process from receipt of permit application through concurrence by OCSD on the draft permit and issuance with all steps outlined in between. SAWPA has created detailed Standard Operating Procures for its iPACS data management system including permitting, monitoring,inspection,and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. SAWPA is conducting bi-weekly teleconferences with all agencies and bi-monthly face-to-face meeting with all agencies to discuss all Brine Line activities including,but not limited to permitting, inspection, monitoring,and enforcement. A detailed spreadsheet is also maintained covering all Brine Line permits with application deadlines,expiration dates, and contact information closely tracked. This spreadsheet is redistributed at each meeting so that all agencies are up to date on permitting issues. SAWPA conducts an audit of all agencies bi-annually covering various program activities including permitting,inspection, monitoring, and enforcement. SAWPA last conducted the agency audit throughout November of 2015 with all agencies reviewed. Joint inspections were also performed with agency members at this time to review the inspection procedures were being implemented consistently throughout all agencies. Section II—Enforcement 1. How well does enforcement follow what the SAWPA Enforcement Response Plan specifies? Evaluate and assess the enforcement efforts and provide relevant examples and documentation for three of the following permits:Chino I Desalter, Repet,Rayne Water,WRCRWA,or SunOpta. All enforcement action(s)follows the SAWPA Enforcement Response Plan. The goal of the SAWPA Pretreatment Program is to ensure all enforcement action(s)are reasonable, consistent,and timely. Please see the examples below. Chino Basin Desalter Authority(CDA)Chino I Permit No. D1081-1 On August 5, 2014,The Chino Desalter Authority I (CDAI)discovered an acid leak into the ground,adjacent to the facility's effluent wastewater lateral. The acid damaged the wastewater lateral seal,and acid was discharged to the Brine Line. SAWPA issued CDA I a Cease and Desist Order(CDO)and required corrective action(s)to prevent future pH slug discharge violations to the Brine Line. CDA I completed all items required to prevent future pH slug discharges to the Brine Line. SAWPA to continue to perform unannounced inspections at CDA I to insure the corrective actions completed are adhered to. Please refer to SAWPA's Enforcement Tracking Log for detailed information. Repet. Inc. Permit No. D1069-2 Repet unable to remain in consistent compliance with their Brine Line Discharge Permit and SAWPA Ordinance No.7. As of July 8,2014,SAWPA began escalated enforcement action against Repet. On July 10,2014,SAWPA issues a CDO to Repet. Repet is required to attend a hearing and immediately comply with all permit and ordinance requirements. Please refer to SAWPA's Enforcement Tracking Log for detailed information. SunOpta Food Solutions Permit No. 11066-1.1 On January 12,2015,SunOpta Food Solutions-San Bernardino(SunOpta)exceeded the Copper concentration limit of 3.0 mg/L. To correct the continued Copper violations, SunOpta installed a new water softener system, plastic storage tank, and chelating resin filters to remove Copper from wastewater. SunOpta is required to collect additional Copper samples to demonstrate consistent compliance with the Copper concentration limit and to be removed from SNC status. SBMWD to conduct unannounced site inspections and collect grab samples from SunOpta's storage tank and from SunOpta's liquid waste hauler. Please refer to SAWPA's Enforcement Tracking Log for detailed information. 2. Is the appropriate agency handling enforcement? (i.e.,SAWPA—major enforcement and Member And Contract Agencies—minor enforcement) Evaluate and assess whether the appropriate agency handles enforcement and cite relevant examples. SAWPA reviews all enforcement action(s)whether Member or Contract Agency related. All enforcement above a Notice of Violation is the responsibility of SAWPA. Please refer to SAWPA's Enforcement Tracking Log for detailed information and relevant examples. 3. What enforcement actions has SAWPA initiated over the last year,and what were the immediate and long term results? Provide a tabulation of all enforcement activities since January 2014,itemize who was the lead in each instance,and evaluate and assess the adequacy of the enforcement efforts and site relevant examples. Please refer to SAW PA's Enforcement Tracking Log for detailed information and relevant examples. 4. What types of enforcement metrics does SAWPA use? What goals and expectations has SAWPA set for enforcement? Has SAWPA acted on metrics? Are these issues communicated to OCSD and the Member and Contract Agencies? If so,how and how often. The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated, all enforcement actions are reported to OCSD on a monthly,quarterly,semi-annual,and annual basis. In addition, all enforcement action is communicated between SAWPA and the Agencies, at a minimum, every two weeks during the bi weekly teleconference calls. Enforcement Best Management Practices SAWPA conducts an audit of all agencies bi-annually covering various program activities including permitting,inspection, monitoring, and enforcement. SAWPA last conducted the agency audit throughout November of 2015 with all agencies reviewed. Joint inspections were also performed with agency members at this time to review the inspection procedures were being implemented consistently throughout all agencies. SAWPA is conducting bi-weekly teleconferences with all agencies and bi-monthly face-to-face meeting with all agencies to discuss all Brine Line activities including,but not limited to permitting, inspection, monitoring,and enforcement. A detailed spreadsheet is also maintained covering all Brine Line permits with application deadlines,expiration dates, and contact information closely tracked. This spreadsheet is redistributed at each meeting so that all agencies are up to date on permitting issues. SAWPA has created detailed Standard Operating Procures for its !PACs data management system including permitting, monitoring,inspection,and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. Section III—Inspection 1. What types(e.g.,permitted, non-permitted)and how many inspections were conducted? SAWPA Inspections SAWPA completed eighty-nine(89) inspections of SAWPA Permittees during the fiscal year July 1,2014 through June 30,2015. SAWPA did not perform any inspections of non- permitted facilities during this same time period. Member or Contract Agency Inspections EM WD completed twelve (12) inspections of SAWPA/EMWD Permittees during the fiscal year July 1,2014 through June 30,2015. EMWD did not perform any inspections of non- permitted facilities during this same time period. IEUA completed sixty-three(63) inspections of SAWPA/IEUA Permittees during the fiscal year July 1,2014 through June 30,2015. IEUA did not perform any inspections of non- permitted facilities during this same time period. JCSD completed twenty-five (25) inspections of SAWPA/JCSD Permittees during the fiscal year July 1,2014 through June 30,2015. JCSD completed eighty-six(86) inspections of non- permitted facilities during this same time period. SBMWD completed fifteen(15) inspections of SAWPA/SBMWD Permittees during the fiscal year July 1,2014 through June 30,2015. SBMWD did not perform any inspections of non- permitted facilities during this same time period. SBVMWD completed five(5) inspections of SAWPA/SBVMD Permittees during the fiscal year July 1,2014 through June 30,2015. SBVMWD did not perform any inspections of non- permitted facilities during this same time period. WMWD completed fifty-one(51) inspections of SAWPA/WMWD Permittees during the fiscal year July 1,2014 through June 30,2015. WMWD did not perform any inspections of non- permitted facilities during this same time period. Joint Inspections SAWPA completed twenty-three (23)joint inspections of Brine Line Permittees during the fiscal year July 1,2014 through June 30,2015. SAWPA did not perform any joint inspections of non-permitted facilities during this same time period. 2. Are inspections prearranged or are they unannounced? SAWPA Inspections Most SAWPA inspections are unannounced except for permit application inspections. Application inspections are announced to assure the Authorized Representative is available to review and verify the information on the permit application. Member or Contract Agency Inspections Most Member or Contract Agency inspections are unannounced except for permit application inspections. Application inspections are announced to assure the Authorized Representative is available to review and verify the information on the permit application. Joint Inspections Most SAWPA joint inspections are unannounced unless a particular person is requested to be available for the inspection. 3. Are inspections conducted in a manner consistent with SAWPA's PPCD? Provide a tabular listing comparing the existing policies and procedures to SAWPA's inspections. Inspection Report PPCD 1. Permitted Wastestreams See 6.2 Scope of Inspection and 6.6 Inspection Conduct 2. Discharged See 6.2 Scope of Inspection and 6.6 Inspection Conduct 3. Non Discharging See 6.2 Scope of Inspection and 6.6 Inspection Conduct 4. Outside Service Area See 6.2 Scope of Inspection and 6.6 Inspection Conduct S. Reclaimable Wastewater See 6.2 Scope of Inspection and 6.6 Inspection Conduct 6.Storm Water See 6.2 Scope of Inspection and 6.6 Inspection Conduct 7. 0&M of Equipment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 8. 0&M Manual See 6.2 Scope of Inspection and 6.6 Inspection Conduct 9. Flow Meter See 6.2 Scope of Inspection and 6.6 Inspection Conduct 10. pH Meter See 6.2 Scope of Inspection and 6.6 Inspection Conduct 11.Other Equipment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 12.Auto Shut-Off See 6.2 Scope of Inspection and 6.6 Inspection Conduct 13.Sample Point See 6.2 Scope of Inspection and 6.6 Inspection Conduct 14.Sample Collection See 6.2 Scope of Inspection and 6.6 Inspection Conduct 15. Planned Changed See 6.2 Scope of Inspection and 6.6 Inspection Conduct 16.Other See 6.2 Scope of Inspection and 6.6 Inspection Conduct 17. Flow See 6.2 Scope of Inspection and 6.6 Inspection Conduct 18. Housekeeping See 6.2 Scope of Inspection and 6.6 Inspection Conduct 19.Work Hours/M Employees See 6.2 Scope of Inspection and 6.6 Inspection Conduct 20. Records See 6.2 Scope of Inspection and 6.6 Inspection Conduct 21. Facilities Plans See 6.2 Scope of Inspection and 6.6 Inspection Conduct 22.Contingency Plan/Contacts See 6.2 Scope of Inspection and 6.6 Inspection Conduct 23. Hauling Records See 6.2 Scope of Inspection and 6.6 Inspection Conduct 24.Other Permits See 6.2 Scope of Inspection and 6.6 Inspection Conduct 25. Boilers See 6.2 Scope of Inspection and 6.6 Inspection Conduct 26.Cooling Towers See 6.2 Scope of Inspection and 6.6 Inspection Conduct 27.Water Treatment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 28.Chemical Storage See 6.2 Scope of Inspection and 6.6 Inspection Conduct 29. Haz Waste Storage See 6.2 Scope of Inspection and 6.6 Inspection Conduct 30.Spill Containment See 6.2 Scope of Inspection and 6.6 Inspection Conduct 31. MSDS See 6.2 Scope of Inspection and 6.6 Inspection Conduct 32.Other See 6.2 Scope of Inspection and 6.6 Inspection Conduct 33.Change to Permit/PFS See 6.2 Scope of Inspection and 6.6 Inspection Conduct All Agency inspections are documented, regardless of type or purpose, using an Inland Empire Inspection Report Form. 4. What types of metrics does SAWPA set for inspections? What were the results? Has SAWPA acted on the metrics? Are these items communicated to OCSD? If so,how are the items communicated and how often? The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated,all inspection results are reported to OCSD on a monthly,quarterly,semi-annual,and annual basis. Inspections are performed in accordance with the OCSD program goal frequencies in accordance with the memo submitted to SAWPA from OCSD on February 28, 2014. OCSD,and therefore SAWPA, minimum inspection frequencies are as follows. Industry Control Authority Classification Inspections CIU Quarterly SIU Quarterly IU Semi-Annually IU Indirect* Annual Emergency* Annual *OCSD has no indirect IU's and therefore has provided no guidance on frequencies for this facility type. Inspection Best Management Practices On April 22,2015 SAWPA conducted an in-housetraining course entitled"Pretreatment Inspector Training." The SAWPA training course was provided to all Member Agency and Contract Member Agency inspectors. The training course provided essential skills required by pretreatment inspectors for conducting pretreatment facility inspections. In addition,the training course reviewed specific SAWPA pretreatment program elements. Thirty-two(32) inspectors attended the two hour course and all in attendance received 2.0 contact hours. The topics discussed and reviewed included: Purpose of the Pretreatment Program • Need for Pretreatment Facility Inspections • Duties of an Inspector • Relations with Industry Personnel • Inspector Ethics • Entering an Industry for an Inspection • Inspection Entry Denied • Types of Contacts • Presenting Yourself • Know the Rules • Spill Containment • Stormwater • Safety • Items to Inspect • General Pollution Prevention • Unique SAWPA Program Elements SAWPA conducts an audit of all agencies bi-annually covering various program activities including permitting,inspection, monitoring, and enforcement. SAWPA last conducted the agency audit throughout November of 2015 with all agencies reviewed. Joint inspections were also performed with agency members at this time to review the inspection procedures were being implemented consistently throughout all agencies. SAWPA and JCSD have implemented a detailed industrial user survey in the JCSD service area to review potential industries requiring a wastewater discharge permit. Athorough survey was conducted with all facilities visited. An extensive log sheet is maintained recording all facilities visited,date of the visit and projected follow-up visit date, and which of the JCSD connections they discharge to. As JCSD is also the utility provider for water they will become aware of new facilities as they come into the service area, but are also utilizing their industrial user survey process to ensure no new facilities are missed. Beginning in July 2015,SAWPA implemented a new training program entitled"Inter-Agency Inspection Training." The purpose of the training is to promote continued growth of all agency inspectors and to acquaint inspectors with types of facilities and pretreatment devices not located within their agency's service area. Each quarter two different agencies are paired together and each agency is responsible for hosting and arranging one joint inspection within their service area. Each quarter the schedule rotates which allows for the growth of an inspector's knowledge and encourages agency camaraderie. Please see the example below. October 2015 through December 2015 IEUA SAWPA SBMWD EMWD ?• _.. law WMWD 1CSD BYE °i1ly. .. SBVMWD Section IV—Monitoring/Sampling 1. What constituent monitoring is required of permitted facilities since January 2014,and how does the actual performance compare to the requirements?Evaluate and assess the adequacy of the constituents monitored and provide relevant tabular listings for CIUs,SIUs,Ills,and Liquid Waste Haulers. Monitoring is performed according to the constituents identified in the permit.SAWPA uses one of the iPACS modules to generate sampling and self-monitoring tasks based on the defined permit limits and monitoring requirements. SAWPA reports to OCSD on all constituent monitoring conducted by permitted facilities quarterly and again annually. Sampling is performed in accordance with the OCSD program goal frequencies per the memo submitted to SAWPA from OCSD on February 28, 2014. 2. In non-routine monitoring performed at permitted facilities?If so,what are they and how often are they done?Are they tracked and reported? Yes. Non-routine monitoring is performed on an as-needed basis. Currently additional monitoring is being performed to track expected pollutant discharge variation from seasonal dischargers such as Del Real Foods. Suspended Solids studies are also ongoing from various dischargers to track potential solids formation within the Brine Line. The results from these non-routine monitoring events are reported quarterly to OCSD. Sampling tasks can be created in iPACS for any non-routine event. 3. What types of metrics from the monitoring events are maintained?Has any action resulted from these metrics?If so,what happened?Are these communicated to OCSD?If so,how and how often? The idea of metrics has never before been mentioned by OCSD and no guidance has been given for their expectations in this regard. That stated,all water quality results are reported to OCSD on a quarterly and annual basis.A summary of sample collection type(i.e.grab,composite)is included in the annual report. Sampling is performed in accordance with the OCSD program goal frequencies per the memo submitted to SAWPA from OCSD on February 28,2014. OCSD, and therefore SAWPA, minimum monitoring frequencies are as follows: Industry Control Authority Self-Monitoring Classification Sampling CIU 4 2 SIU 4 2 IU 2 2 IU Indirect* 1 2 *OCSD has no indirect IUs and therefore has provided no guidance on frequencies for this facility type. 4. Did each entity monitor and sample in a manner consistent with SAWPA's PPCD? Yes. Agencies use 1PACS, based on Standard Operating Procedures within SAWPA's PPCD,to generate sampling tasks and enter water quality data. S. How precise and consistent are monitoring actions? Monitoring is performed by the same laboratory for all SAWPA collected samples. Agencies either use the same contract laboratory as SAWPA or utilize their own in house laboratory. All methods comply with 40 CFR 136 and all laboratories are ELAP certified. 6. Is proper monitoring required and documented?Evaluate and assess the adequacy of the monitoring efforts considering the following at a minimum: a. Each sample should be random in accordance with 40 CFR 403.8(f)(2)(v) Samples are collected on a random basis. b. Sampled at the representative sample points All samples are collected at the permit defined monitoring location,which is clearly marked on the site. OCSD provides concurrence on all permits. c. Samples were representative of daily discharges I. Documentation exists if there appeared to be dilution or a reduction of discharge or services during the sampling event ii. Accounted for seasonal variations,if applicable iii. Discharges were either from a well-mixed single batch for the entire day(not multiple batches in a single day)or from a continuous discharge Samples were representative of daily discharges. Documentation exists if there appeared to be dilution including escalated enforcement when a permittee was caught diluting during a sampling event. Other investigations were undertaken,with documentation present, in instances when tampering with the monitoring process was expected. Discharges were either from a well-mixed single batch or from a continuous discharge. d. Documented representative sample collection techniques I. Appropriate sampling equipment employed (especially collection container) ii. Appropriate grab and composite sampling methods and techniques used iii. Sample collection handling documented(e.g.chilled or preserved appropriately) iv. Documentation generally complete and in order(e.g. inspection and sampling reports) Control Authority sampling is performed by qualified sampling technicians,as described in the SAWPA PPCD, using ISCO sampling equipment. Samples are preserved per 40 CFR 136 and always kept in ice. All control authority samples are collected as either from a well-mixed single batch or from a continuous discharge as a 24-hour composite or production day composite(with the exception of those pollutants which require grab samples,such as pH, oil &grease, etc.).Additionally,a description of the sample appearance is noted in the COC. Documentation is complete and in order. SAWPA has conducted training with all Agencies on sampling techniques. Afocus of the November 2014 audit of the Member and Contract Agencies,conducted by SAWPA,was on proper sampling methodology. Agencies are required to submit their sampling SOPS for review to SAWPA and update as necessary. SAWPA and Agencies all upload applicable information into iPACS to track violation and enforcement, report on inspections,and upload permit requirements in accordance with SOPS created by SAWPA. e. Documented integrity of sample preservation and transfer of custody to the laboratory(e.g.Chain of Custody(. Chain of Custody forms,generated from iPACS documents integrity of sample preservation and have signature blocks which allow monitoring of sample custody. f. Used proper EPA-approved analytical methods at appropriate detection limits All samples are preserved and analyzed per 40 CFR 136. g. Took quality control steps on analytical results that validate that the information stored in the sample result repository reflects analytical results delivered by the laboratory Quality control steps are taken at regular intervals. h. Conducted compliance analysis of monitoring results relative to appropriate discharge limits All samples are analyzed for pollutants identified in the permits,at detection limits applicable to determine compliance. Compliance analysis is performed within iPACS, which flags violations,and is associated with enforcement as applicable. SAWPA utilizes a log sheet to track data review and compliance analysis with a minimum of two individuals reviewing all data prior to upload to iPACS. 7. What actions do SAWPA and the Member and Contract Agencies employ to ensure that self- monitoring reports comply with all permit and federal Pretreatment requirements? Evaluate and assess the adequacy of the self-monitoring program. Self-monitoring reports are reviewed for compliance,tracked via a log sheet,with permit limits and required sample preservation and analysis per 40 CFR 146. Data is uploaded into iPACS where it is cross checked with all applicable permit and regulatory requirements. SAWPA and Agencies all upload applicable information into iPACS in accordance with SOPS created by SAWPA. 8. Do the permittees report all the valid sampling results as required?What measures are in place to ensure that this is so? Permittees are required to report all sample results as required in their permits,and any additional monitoring conducted at the designated Monitoring Points. Missing or incomplete SMRs are flagged as noncompliant within iPACS and would result in enforcement in accordance with the SAWPA PPCD. SAWPA and Agencies all verify information through iPACS in accordance with SOPS created by SAWPA. Sampling and Monitoring Best Management Practices SAWPA has created detailed Standard Operating Procures for its iPACS data management system including permitting, monitoring,inspection,and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. SAWPA utilizes a log sheet for the tracking of data review prior to,and after upload to the iPACS data management system. SAWPA has created detailed Standard Operating Procures for its iPACS data management system including permitting, monitoring,inspection,and enforcement. All agencies have undergone training with these SOPS and are utilizing the accompanying guides for uploading into the system. Appendix E 2015 Internal SAWPA Pretreatment Program Audit Communication Plan OCSD --- SAWPA Attachment A2 _ - .. . .. .. . . . . . . ._ . . . . . _._ _.. .. . . . . . . . . . . . . oe. calnee� a JPCIJOC ° $AWOA Commrsion77� JPC SAWPAandOCSDestabliatitwMpdices • JOC SAWPA and DCSD EMT Bel staff meet to discss ssues CrCnerJim HnDerg .. .... ... ..... . . .a r ♦ uram. Saws R•m01• 7neral Manaper� Celeste Cantu Wsne Rath Thompson - 4P�le (pemnatlnp aMLwan) adeae . o Anil c+• S:m RmNM erdoTech Ltamnmm IGonwmnM4enN Y $smmYR•w•e o OmuerJim Cited. Machete Farmer o flmpr S sswuhn m um .. .. . . . . .. . . . . . . .. . .:.... . . . . .. ... . . . ........... Dean Unger 2015 Internal SAWPA Audit • �.� .mnmmm.mr ° • Moore to Proceed(NTP)issued Julian Sabi o B,♦nre Nwe s • OCSD sells SANIPA tie list of questions for the SAWPA Audi) OCSD EEC to finalize an Implementation Pan and Schedule and notify SAWPA: Mail a Armwmmrymws EEC audits SAWPA $AWPA °am.rwe o m. Mark Se•Wmmt EEC wines a drofi audit report oSrxWa+M9 Lures CilthEd on'enr Maw,amoto EEC discusses me audit report who OCSO project MichaN Pksertoe Protect EEC finalizes the audit report Manager Manager Upload Be audd ration to OCSD-SAWPA Coordination SharePoint ads OCSD takes tte aWd report to its Entering Comminee and Boam width °IyYm Roya SMaruki ♦ ° win recommendations o Own. o Sr Nd• OCSD houses SAWPA of the Board's decalbo(s) Ca suman OCSD woks wNt SAWPA to address audit findings Carlin;Chapter, o T Raw is ' ........... . .. ... .. ... . .. . . .. . .. . ... . . . . . . . . . . . . . . . . ... ere ° Iebn Yme o Nv}[Mewi,is a dollars, DavM RUM Tam Waller fAMrll ° iMeul tact EEC ErrvWonmern2l °cO°°iY40e (EEC) r SAWPA$ Resources Tam GNwersld Member — Pretreatment ° Technical Exoe:ts Workino Grouo Contract ConeatmetM omissions,di-I Gregg Muff ay Pmteatmm ELA e E CsV Aoe"cbs nsulmnt Crag Proctor Coordinators tom IEUA M Mahn Draper eachinvolvad SBVMWD $BMWD Member Agency EOA OCWD Mike Zerkk I �r�un• Communication Levels: • Green: OCSD • CL 1: Staff • Purple: OCSD's consultant • CL 2: Supervisor • Blue: SAWPA •CL 3: Manager Notes: • orange: SANPA consultants • CL t: Director I: All agency-related Communication should be through the Project Managers. • Pink: aANPA advisors • CL 6: General Manager 2: If an issue is not resolved at a Communication Level, the issue will advance to the neat level. •O Communication Level • CL 6: Board 3: For the audit, EEC will communicate directly with SANPA. In the event of a significant question or complaint that cannot be (see Note 2) a CL q: Agency resolved at that level, SAWPA may contact OCSD's Project Manage[ directly. SANPA should avoid bypassing this Communication Plan. aaanWnner+t 1. InbmM SAWPA AtbMISA20fb.0W1 LaafRwiaed: aenm 15 2015 Internal SAWPA Pretreatment Program Audit Communication Plan (effective 2015 09 16) Appendix F 2015 Internal SAWPA Pretreatment Program Audit Source Materials Document Number Document Name 1 2015-09 SAWPA Quarterly 10-29-15 2 CC Grater Company-11005-2-Fact Sheet-2015-17 3 CC Graber Company- 11005-2-Permit Expires 11-23-2017 4 CC Graber Draft Permit Submittal OCSD 5 CC Graber Draft Permit Submittal 6 Chino l Enforcement-Accidental Discharge Report-8-8-2014 7 Chino I Enforcement-Accidental Discharge Report Update-8-15-2014 8 Chino I Enforcement- Biweekly Rpt-10-1-2014 9 Chino I Enforcement- Biweekly Rpt-11-17-2014 30 Chino I Enforcement- Biweekly Rpt-11-3-2014 11 Chino I Enforcement- Biweekly Rpt-9-15-2014 12 Chino I Enforcement- Biweekly Rpt-9-2-2014 13 Chino I Enforcement-Cease& Desist Order-8-21-2014 14 Chino I Enforcement-Closure of Cease and Desist Order-1-20-2015 15 Chino I Enforcement- Perliminary Report to OCSD-8-27-2014 16 Chino I Enforcement-Slug Load Control Plan-9-19-2014 17 COC QAQC Duplicate Sample 18 COC 5-0110222015 19 COC Stringfellow 10272015 1 20 COC Stringfellow 10272015 2 21 Draft Permit Submittal Temescal Desalter 22 Draft Permit Submittal WMWD Arlington 23 Draft Permit Submittal WRCRWA SRPS 24 EMWD PTP Agency Audit Findings 25 IEUA PTP Agency Audit Findings 26 Inland Bioenergy, LLC Enforcement-Cease&Desist&Compliance Order 12-22-14 27 Inland Bioenergy, LLC Enforcement-Civil Penalty Order and Compliance Order-2-6-2015 28 Inland Bioenergy, LLC Enforcement-Closure of Civil Penalty Order and Compliance Order-3-12-2015 29 Inland Bioenergy, LLC Enforcement- Monthly Monitoring Report-1-15-2015 30 Inland Bioenergy, LLC Enforcement- Response to Cease and Desist Order-1-20-2015 31 Inland Bioenergy, LLC Enforcement- Response to Cease and Desist Order-1-27-2015 32 Inland Bioenergy, LLC Enforcement- Response to Cease and Desist Order-2-27-2015 33 Inland Bioenergy, LLC Enforcement- Response to Cease and Desist Order-2-3-2015 34 Inland Empire Energy Center-D1036-2-Fact Sheet-2015-17 35 Inland Empire Energy Center-D1036-2-Permit Expires 11-24-2017 36 Inland Empire Energy Center Draft Permit 1 37 Inland Empire Energy Center Draft Permit 2 38 Inspection MCC 8-12-2015 39 Inspection Report Form 40 Inspection SBMWD WRP IR 11-5-2015 41 Inspection Temescal Desalter Ins 10-13-2015 42 Facs creating sampling tasks templates instructions 43 pacs creating SMR requirements instructions—revised 44 Facs guide compliance module 45 iPacs guide inspection tasks 46 pacs guide Monthly Quarterly Water Quality Reports 47 pacs Sampling Data Upload 48 Facs sampling tasks instructions 49 iPacs waste tracking module instructions 50 JCSD PTP Agency Audit Findings 51 OC Vacuum Draft Liquid Waste Hauler Permit 1 52 OC Vacuum Draft Liquid Waste Hauler Permit 2 53 OC Vacuum, Inc. -H1112-1- Permit Expires 11-2-2017 54 OCSD-Primary Prg Elements Frequencies&Types by Industry Classification 55 Repet Enforcement Amended Notice of Violation and Order Corrective Action-2-18-2015 56 Repet Enforcement Cease and Desist Order-7-10-2014 57 Repet Enforcement Cease and Desist Order and Compliance Order-10-17-2014 58 Repet Enforcement Cease and Desist Order and Compliance Order-11-12-2014 59 Repet Enforcement Cease and Desist Order and Compliance Order Ltr Rev-11-17-2014 60 Repet Enforcement Civil Penalty Order and Compliance Order-8-14-2014 61 Repet Enforcement Closure of Compliance Order-3-2-2015 62 Repet Enforcement Follow-up Report of Compliance Status-2-25-2015 63 Repet Enforcement Modification to Compliance Order 12-22-14 64 Repet Enforcement Modification to Compliance Order No.2-12-29-2014 65 Repet Enforcement Monthly Compliance Status Report- 1-7-2015 66 Repet Enforcement Notice of Violation and Order Corrective Action -2-10-2015 67 Repet Enforcement Notice of Violation and Order for Corrective Action -1-20-2015 68 Repet Enforcement NOV Response-Adler Batch Tank Elimination-2-17-2015 69 Repet Enforcement NOV Response- 1-27-2015 70 Repet Enforcement NOV Response-2-6-2015 71 Repet Enforcement November Monthly Progress Report-12-5-2014 72 SBMWD PTP Agency Audit Findings 73 SBVMWD&SBMWD Capacity Rights 8-16-2011 74 SOP_Lab_Review—DRAFT 75 SOP_Sampling_DRAFT 76 SunOpta Enforcement-08.03.15 77 SunOpta Enforcement-08.15.15 78 Valley PTP Agency Audit Findings 79 WMWD PTP Agency Audit Findings 80 WQ_Report_Review_Log 81 WRCRWA Enforcement-NOV-9-10-2014 82 WRCRWA Enforcement-NOV-9-24-2014 83 WRCRWA Enforcement-NOV Response-9-29-2014 STEERING COMMITTEE Meng Dat0 TOBE. Dir. 07/lti27/16 07/27/1Of6 AGENDA REPORT Item Item Number 4 20 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Celia Chandler, Director of Human Resources SUBJECT: COMPENSATION STUDY FINAL RESULTS GENERAL MANAGER'S RECOMMENDATION Receive and file the Compensation Study final results. BACKGROUND The organization initiated its comprehensive classification and compensation (C & C) study in March 2015 for the purpose of updating its job classification specifications and benchmarking against other organizations' job structures and compensation systems. Classification and compensation studies are conducted periodically by organizations to obtain information on how other agencies structure their positions and compensate employees in similar positions. Key business reasons for conducting the Orange County Sanitation District's (Sanitation District) study were changes due to reorganization, recruitment/retention considerations, and labor relations, in addition to the time lapse from the prior study. The classification phase is near completion, with discussions with bargaining units ongoing to finalize classification specifications. Koff & Associates has completed data collection and analysis for the study's compensation phase. Georg Krammer, Chief Executive Officer with Koff & Associates, will present the final report of the compensation study findings. RELEVANT STANDARDS • Plan for and execute succession and provide for professional growth, development • Comply with Article 29 Classification Studies of the Sanitation District's Memoranda of Understanding with represented employee groups • Industry best practices recommend a study every five years for business relevance and compliance with the Americans with Disabilities Act (ADA) and the Fair Labor Standards Act (FLSA) PROBLEM The C & C study provides an opportunity for the organization to update its compensation plan in support of Board direction. Page 1 of 2 PROPOSED SOLUTION Receive and file the final report for the Sanitation District's compensation study. TIMING CONCERNS Koff & Associates' presentation of the compensation study final report aligns with Board direction. RAMIFICATIONS OF NOT TAKING ACTION N/A PRIOR COMMITTEE/BOARD ACTIONS June 2016-The Steering Committee received the preliminary compensation study results as an information item. April 2016 - The Administration Committee awarded a Professional Consultant Services Agreement with Koff & Associates for the compensation phase of the classification and compensation study, Specification CS-2014-6306D, for a total amount not to exceed $65,040, with a new total amount of phase one and two not to exceed $126,929, and approved a contingency of$6,504 (10%). September 2015 — The Board of Directors approved the list of 17 comparison agencies selected by the Sanitation District in collaboration with stakeholder groups and approved beginning the next phase of the C & C Study, which includes a labor market survey. February 2014 - The Administration Committee authorized the General Manager to advertise a request for proposal and subsequently award a Consultant Services Agreement for a Sanitation District-wide C & C Study, for a total amount not to exceed $100,000. FINANCIAL CONSIDERATIONS The total cost to complete the project will not exceed $133,433, as approved by the Sanitation District's Administration Committee on April 13, 2016. This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the complete agenda package: N/A Page 2 of 2 BOARD OF DIRECTORS Meeting Date TOBG.of Dir. -- 07/27/I6 AGENDA REPORT ItemNum,ber Item Number 2t Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Administrative Services SUBJECT: PAYMENT AGREEMENT FOR CAPITAL FACILITIES CAPACITY CHARGES FOR THE SOURCE IN BUENA PARK GENERAL MANAGER'S RECOMMENDATION Approve the deferred payment agreement negotiated by the General Manager for the collection of all charges and fees owed for capital facility capacity charges plus interest of 5.5% per annum and administrative fees with Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC, in a form approved by General Counsel. BACKGROUND The Orange County Sanitation District (Sanitation District) Capital Facility Capacity Charge (CFCC) is a one-time, non-discriminatory charge imposed at the time a building or structure is newly connected to the Sanitation District's system, directly or indirectly, or an existing structure or category of use is expanded or increased. Payment of CFCC's are required when the building permit is issued. The Source at Beach, LLC, The Source Office, LLC, and The Source Hotel, LLC has previously connected to the Sanitation District's system without payment of CFCC's. At this time the amount owed is $1,122,235. The developer has requested a payment plan. Per Ordinance OCSD-40, the Board of Directors may, pursuant to Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge in installment payments over a period not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. The improvements were connected to the Sanitation District system in 2014. While the payment agreement is for 60 months, the total of payments for the first 24 months will be due at the time the payment agreement is executed. RELEVANT STANDARDS • Ordinance OCSD-40 • Health & Safety Code Section 5474 • Cost effective method to ensure collection of monies owed by customer PROBLEM Page 1 of 2 The Source at Beach has connected to the Sanitation District system without payment of Capital Facility Capacity Charges. PROPOSED SOLUTION Per Ordinance OCSD40, the Board of Directors may, pursuant to Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge in installment payments over a period not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. TIMING CONCERNS The deferred payment agreement should be executed as soon as possible to allow the developer to continue construction and for immediate remittance of payments. RAMIFICATIONS OF NOT TAKING ACTION The customer would be required to pay the entire amount in full immediately or the connection would be considered illegal. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS The payment agreement complies with Ordinance OCSD40. 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: • Deferred Payment Agreement—The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC Page 2 of 2 DEFERRED PAYMENT AGREEMENT THIS AGREEMENT, is entered into, to be effective August 1, 2016, by and between Orange County Sanitation District ("District"), a county sanitation district duly organized and existing pursuant to Section 4700 at. seq. of the Health & Safety Code of the State of California and Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC. RECITALS A. District is a wastewater treatment agency, which owns and operates wastewater treatment facilities which receive, treat and discharge, through an ocean outfall, wastewater received from dischargers within its jurisdictional boundaries. Pursuant to Ordinance OCSD-40, the District is to impose Capital Facilities Capacity Charges when properties, either newly-connect to the District's system, or expand the use of the property previously connected to the District. Revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, and reconstruction of the wastewater collection, treatment and disposal facilities of the District; to repay principal and interest on debt instruments; or to repay federal or state loans for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. B. Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC was issued building permits through the City of Buena Park without payment of Capital Facility Capacity Charges totaling $1,122,235. C. Pursuant to Ordinance OCSD-40, upon application of any property owner seeking to connect to the District's system, the Board of Directors of the District, in its sole and absolute discretion and upon a finding of compelling need, may, pursuant to 1 the authority of California Health & Safety Code Section 5474, approve of an agreement with the property owner for the payment of the applicable connection charge and/or annexation fees in installment payments over a period of not to exceed five (5) years, bearing an interest rate on the unpaid balance of not to exceed ten (10%) percent per annum and that the charges and interest shall constitute a lien on the property. G. The District and Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC intend to provide additional time for Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC to pay to District the CFCC amount presently due to the District. The first 24 installments are due in full on September 1, 2016 with the remaining installments paid monthly over the next 36 months. NOW, THEREFORE, in consideration of the facts recited above and the conditions, covenants and promises set forth below, the District and Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC agree as follows: AGREEMENT 1. Customer shall make payments, including principal and interest at 5.5% per Resolution No. OCSD 11-04, to the District, according to the payment schedule located in appendix A. 2. If any payment described in Paragraph 1 herein is not received by the District on or before the due date specified the entire balance then owing shall become immediately due and payable and interest at the rate of ten percent (10%) per annum shall accrue on any such unpaid balance from the date of acceleration until the date that the balance due is fully paid to the District. 2 3. Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC acknowledges that the failure to pay any installment in accordance with the schedule set forth in Paragraph 1 herein, may be deemed a breach of this Agreement, thereby giving rise to all legal remedies available to District. 4. Should any litigation be commenced between the District and Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC regarding enforcement of this Agreement, or the rights and any duties of the parties in relation thereto, the prevailing party in such litigation shall be entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its attorney fees and costs in the litigation which shall be determined by the court in such litigation or in a separate action brought for that purpose. 5. Nothing in this Agreement shall affect Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC obligation to pay current and/or future charges for use of District's sewerage system or Donald Chae, Manager, The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC's obligation to comply with all other conditions and requirements of District Ordinances. 6. Nothing herein shall affect the District's right to enforce all requirements and conditions of the District's Ordinance. 7. This Agreement is made only for the benefit of the parties hereto. It is not intended that any right under this Agreement shall accrue to any third person. 3 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first written above. Orange County Sanitation District BY: John Nielsen Board Chair ATTEST: Kelly A. Lore Clerk of the Board APPROVED AS TO FORM: Bradley R. Hogin, General Counsel The Source at Beach, LLC, The Source Office, LLC and The Source Hotel, LLC BY: Donald Chae Manager 4 APPENDIX A to Deferred Payment Agreement Administrative Due Principal Interest Charge Total Date $16,292.42 $5,143.58 $25.00 $21,460.99 8/15/2016 $16,367.09 $5,068.90 $25.00 $21,460.99 8/15/2016 $16,442.11 $4,993.89 $25.00 $21,460.99 8/15/2016 $16,517.46 $4,918.53 $25.00 $21,460.99 8/15/2016 $16,593.17 $4,842.82 $25.00 $21,460.99 8/15/2016 $16,669.22 $4,766.77 $25.00 $21,460.99 8/15/2016 $16,745.62 $4,690.37 $25.00 $21,460.99 8/15/2016 $16,822.37 $4,613.62 $25.00 $21,460.99 8/15/2016 $16,899.48 $4,536.52 $25.00 $21,460.99 8/15/2016 $16,976.93 $4,459.06 $25.00 $21,460.99 8/15/2016 $17,054.74 $4,381.25 $25.00 $21,460.99 8/15/2016 $17,132.91 $4,303.08 $25.00 $21,460.99 8/15/2016 $17,211.44 $4,224.56 $25.00 $21,460.99 8/15/2016 $17,290.32 $4,145.67 $25.00 $21,460.99 8/15/2016 $17,369.57 $4,066.42 $25.00 $21,460.99 8/15/2016 $17,449.18 $3,986.81 $25.00 $21,460.99 8/15/2016 $17,529.15 $3,906.84 $25.00 $21,460.99 8/15/2016 $17,609.50 $3,826.50 $25.00 $21,460.99 8/15/2016 $17,690.21 $3,745.79 $25.00 $21,460.99 8/15/2016 $17,771.29 $3,664.71 $25.00 $21,460.99 8/15/2016 $17,852.74 $3,583.25 $25.00 $21,460.99 8/15/2016 $17,934.56 $3,501.43 $25.00 $21,460.99 8/15/2016 $18,016.76 $3,419.23 $25.00 $21,460.99 8/15/2016 $18,099.34 $3,336.65 $25.00 $21,460.99 8/15/2016 $18,182.30 $3,253.70 $25.00 $21,460.99 8/15/2016 $18,265.63 $3,170.36 $25.00 $21,460.99 9/15/2016 $18,349.35 $3,086.64 $25.00 $21,460.99 10/15/2016 $18,433.45 $3,002.54 $25.00 $21,460.99 11/15/2016 $18,517.94 $2,918.06 $25.00 $21,460.99 12/15/2016 $18,602.81 $2,833.18 $25.00 $21,460.99 1/15/2017 $18,688.07 $2,747.92 $25.00 $21,460.99 2/15/2017 $18,773.73 $2,662.27 $25.00 $21,460.99 3/15/2017 $18,859.77 $2,576.22 $25.00 $21,460.99 4/15/2017 $18,946.21 $2,489.78 $25.00 $21,460.99 5/15/2017 $19,033.05 $2,402.94 $25.00 $21,460.99 6/15/2017 $19,120.29 $2,315.71 $25.00 $21,460.99 7/15/2017 $19,207.92 $2,228.07 $25.00 $21,460.99 8/15/2017 $19,295.96 $2,140.04 $25.00 $21,460.99 9/15/2017 $19,384.40 $2,051.60 $25.00 $21,460.99 10/15/2017 $19,473.24 $1,962.75 $25.00 $21,460.99 11/15/2017 $19,562.49 $1,873.50 $25.00 $21,460.99 12/15/2017 APPENDIX A $19,652.16 $1,783.84 $25.00 $21,460.99 1/15/2018 $19,742.23 $1,693.76 $25.00 $21,460.99 2/15/2018 $19,832.71 $1,603.28 $25.00 $21,460.99 3/15/2018 $19,923.61 $1,512.38 $25.00 $21,460.99 4/15/2018 $20,014.93 $1,421.06 $25.00 $21,460.99 5/15/2018 $20,106.66 $1,329.33 $25.00 $21,460.99 6/15/2018 $20,198.82 $1,237.17 $25.00 $21,460.99 7/15/2018 $20,291.40 $1,144.59 $25.00 $21,460.99 8/15/2018 $20,384.40 $1,051.59 $25.00 $21,460.99 9/15/2018 $20,477.83 $958.16 $25.00 $21,460.99 10/15/2018 $20,571.69 $864.31 $25.00 $21,460.99 11/15/2018 $20,665.97 $770.02 $25.00 $21,460.99 12/15/2018 $20,760.69 $675.30 $25.00 $21,460.99 1/15/2019 $20,855.84 $580.15 $25.00 $21,460.99 2/15/2019 $20,951.43 $484.56 $25.00 $21,460.99 3/15/2019 $21,047.46 $388.53 $25.00 $21,460.99 4/15/2019 $21,143.93 $292.06 $25.00 $21,460.99 5/15/2019 $21,240.84 $195.15 $25.00 $21,460.99 6/15/2019 $21,338.19 $97.80 $25.00 $21,460.99 7/15/2019 ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOD Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CIP Capital Improvement Program CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District COBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. 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 farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria —A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Glossary of Terms and Abbreviations 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 (D/T) — the dilution at which the majority of the people detect the odor becomes the D/T for that air sample. Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service(LOS)—Goals to support environmental and public expectations for performance. NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works(POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge— Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. Glossary of Terms and Abbreviations Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.