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 Any items withdrawn from the Consent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.
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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.
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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.
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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
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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�
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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
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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.
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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.
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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
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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)
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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
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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,
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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
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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:
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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".
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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.
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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.
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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
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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
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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
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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.
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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
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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.
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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.
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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
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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
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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
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Biosolids Odor Control Expansion
Collections
Master Plan
Master Plan Capacity Sttly
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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.
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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
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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,
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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.
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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.
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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
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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:
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• 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.
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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.
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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,
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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.
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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
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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
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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
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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
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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
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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
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• 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
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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.
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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.
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• 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"
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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
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• 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.
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• 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.
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• 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:
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• 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.
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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
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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.
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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
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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?
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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.
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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.
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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
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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.
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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).
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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.
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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
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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.
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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
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• 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
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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.
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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
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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
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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.
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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
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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).
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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.
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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
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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
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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.
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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
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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.
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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
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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
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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
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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.
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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,
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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.
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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.
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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
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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)
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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.
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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
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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
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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
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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.
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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.
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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
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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
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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.
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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.
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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?
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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)
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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)
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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
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2015 Internal SAW PA Pretreatment Program Audit Report
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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
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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
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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
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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.
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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
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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
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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
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2015 Internal SAWPA Pretreatment Program Audit Report
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(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
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2015 Internal SAWPA Pretreatment Program Audit Report
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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
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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
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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
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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.
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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
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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
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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;
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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
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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
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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
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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.
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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.
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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.
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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
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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.
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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.
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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.
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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.
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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
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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
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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
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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
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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;
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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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.
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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
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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.
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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.
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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
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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.
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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.
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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
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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
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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
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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.
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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
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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.
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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
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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.
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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.
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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
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• 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.
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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.