HomeMy WebLinkAbout07-23-2014 Board Meeting Agenda Packet Orange County Sanitation District SAOR E COUN
ST DR IC
Wednesday, July 23, 2014
Regular Meeting of the 6:30 P.M.
Board of Directors 1 Board Room
I 10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7130
tssa-zata
AGENDA
INVOCATION AND PLEDGE OF ALLEGIANCE: (Brad Reese, City of Villa Park)
ROLL CALL & DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker's Form (located at the table
outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit
comments to three minutes.
SPECIAL PRESENTATIONS:
• Presentation of Certificates of Commendation to:
o California Water Environment Association
o California Association of Sanitation Agencies
o Southern California Alliance of POTWs
REPORTS: The 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.
CLAIMS:
DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign
contribution greater than $250 received in the past twelve months from any party seeking a contract with
OCSD. This requires that you identify the contributor by name. Further, you may not participate in the
decision making process to award a contract to such party. For reference, you are directed to the
Register of Warrants as to all current contractorsIvendors with OCSD. For the specifics of Government
Code Section 84308,please see your Director's Handbook or call the office of General Counsel.
07/23/14 OCSD Board of Directors Agenda Page 1 of 6
1. Ratify payment of claims of the District, by roll call vote, as follows:
Claims Paid for the Period Ending: 06/15/14 06/30/14
Totals $ 7,485,674.74 $ 9,221,231.85
CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted,
by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent
Calendar for separate discussion will be considered in the regular order of business.
2. Receive and file the updated Orange County Sanitation District Directors'
Committee Assignments for 2014-15.
3. Approve minutes for the Regular Board Meeting held on June 25, 2014.
4. Approve the FY 2014-15 "not-to-exceed" quotes for the following insurances:
A. Medical Insurance— Not to Exceed $9,623,361
B. Dental Insurance— Not to Exceed $884,195
C. Vision Insurance— Not to Exceed $92,867
D. Basic Life Insurance— Not to Exceed $65,331
E. Long-Term Disability Insurance— Not to Exceed $285,479
F. Short-Term Disability Insurance— Not to Exceed $141,360
G. Employee Assistance Program — Not to Exceed $11,026
5. A. Authorize the purchase of a new 400-kilowatt trailer-mounted Tier 4 Final
compliant mobile generator and related accessories from Multiquip, for a
total not to exceed $189,148 in accordance with OCSD's Ordinance No.
OCSD-44, Section 2.03, Exceptions, Item B., Cooperative Purchases; and
B. Approve a contingency of$18,914 (10%).
6. Authorize the Purchasing Manager to conduct a Negotiated Procurement for a
construction contract for SALS PS Vent Piping Modifications, Project No.
FE12-09, in accordance with Ordinance No. OCSD-44, Section 5.02.A.1.(d):
No bids.
7. A. Receive and file bid tabulation and recommendation; and
B. Award a construction contract to K&F Electric, Inc. for Programmable
Control Panel Upgrades, Project No. J-125, for a total amount not to
exceed $1,067,774; and
C. Approve a contingency of$106,777 (10%).
07/2314 OCSD Board of Directors Agenda Page 2 of 6
8. A. Approve Amendment No. 6 to the Professional Design Services
Agreement with Brown and Caldwell for Sludge Dewatering and Odor
Control at Plant No. 2, Project No. 132-92, for $666,798, increasing the
total amount not to exceed $7,485,239; and
B. Approve a contingency increase of $66,680 (1.2%) to the Professional
Design Services Agreement with Brown and Caldwell for Sludge
Dewatering and Odor Control at Plant No. 2, Project No. P2-92.
9. A. Approve a sole source purchase order to Flo Systems Inc. for the
purchase of one spare pump for the Steve Anderson Lift Station (SALS)
for a total amount of$215,000; and
B. Approve a contingency of$6,450 (3%).
NON-CONSENT:
10. A. Receive and file bid tabulation and recommendation;
B. Find that the lowest bid from Hal Hays Construction, Inc. is non-
responsive and reject the lowest bid;
C. Receive and file Appeal of Award Recommendation letter dated June 18,
2014 from Hal Hays Construction, Inc. concerning the determination that
their bid was Non-Responsive and the Orange County Sanitation District's
recommendation to award to the second lowest bidder, Stronghold
Engineering, Inc.;
D. Receive and file the Orange County Sanitation District Final Disposition
letter dated July 10, 2014, to Hal Hays Construction, Inc. responding to
the Appeal of Award Recommendation;
E. Deny Appeal of Award Recommendation filed by Hal Hays Construction,
Inc.;
F. Award a construction contract to Stronghold Engineering, Inc. for
Maintenance Area Building Improvements and Building H Demolition,
Contract No. P1-115A, part of Title 24 Access Compliance and Building
Rehabilitation, Project No. 131-115, for a total amount not to exceed
$7,323,217; and
G. Approve a contingency of$732,322 (10%).
OPERATIONS COMMITTEE:
11. Approve minutes for the Committee Meeting held on July 2, 2014.
0712314 OCSD Board of Directors Agenda Page 3 of 6
12. A. Award a contract to the lowest responsive and responsible bidder, ODC
Engineering and Technology, for Repairs to Primary Clarifier No. 3 Drive
Unit at P1, Project No. FR14-002, for a total amount not to exceed
$332,700; and
B. Approve a contingency of$66,540 (20%).
13. A. Consider, receive, and file the Final Environmental Impact Report for the
Southwest Costa Mesa Trunk, Project No. 6-19, dated July 23, 2014; and
B. Adopt Resolution No. OCSD 14-09 entitled; "A Resolution of the Board of
Directors of the Orange County Sanitation District, Certifying the Final
Environmental Impact Report for implementation of Southwest Costa
Mesa Trunk, Project No. 6-19; making certain findings relating to
environmental effects identified in the Final Environmental Impact Report;
adopting a Mitigation Monitoring and Reporting Program; adopting a
Statement of Overriding Considerations; and approving the Southwest
Costa Mesa Trunk, Project No. 6-19:'
ADMINISTRATION COMMITTEE:
14. Approve minutes for the Committee Meeting held on July 9, 2014.
15. Adopt Resolution No. OCSD 14-10, entitled "A Resolution of the Board of
Directors of the Orange County Sanitation District, Authorizing the Orange
County Sanitation District's Treasurer to Invest and/or Reinvest District's Funds;
Adopting District's Investment Policy Statement and Performance Benchmarks
for FY 2014-15; and Repealing Resolution No. OCSD 13-13:'
16. Authorize the General Manager to issue Revenue Refunding Certificate
Anticipation Notes, Series 2014B, as two-year fixed-rate obligations, subject to
market conditions, in an amount not to exceed $135.0 million to replace the
$129.625 million Revenue Refunding Certificate Anticipation Notes, Series
2013A maturing on October 16, 2014.
17. Authorize use of Ordinance No. OCSD-44, Section 2.03:13. Cooperative
Purchases for a blanket order agreement to purchase equipment and services for
OCSD's Motorola radio systems, for a total amount not to exceed $250,000 to
include all tax and freight.
18. Direct staff to pay down on the District's unfunded actuarial accrued liability with
the Orange County Employee's Retirement System (OCERS) in the amount of
$125 million.
STEERING COMMITTEE:
19. Approve minutes for the Steering Committee Meeting held on June 25, 2014 and
the Special Steering Committee Meeting held on July 9, 2014.
0712314 OCSD Board of Directors Agenda Page 4 of 6
LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE:
20. Receive and file the minutes of the July 14, 2014 meeting of the Legislative and
Public Affairs Special Committee.
GWRS STEERING COMMITTEE:
21. Receive and file the minutes for the GWRS Steering Committee Meeting held on
April 14, 2014.
AB1234 REPORTS (IF ANY):
DIRECTORS: Pursuant to Government Code section 53232.3(d), Directors must provide a brief report
on any meetings attended at the District's expense.
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 potential litigation, or personnel matters, pursuant to Government Code
Sections 54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation;
(c) employment actions or negotiations with employee representatives;or which are exempt from public
disclosure under the California Public Records Act, may be reviewed by the Board during a permitted
closed session and are not available for public inspection. At such time as the Board takes final action
on any of these subjects, the minutes will reflect all required disclosures of information.
Convene in closed session.
(1) CONFER WITH LABOR NEGOTIATORS
(Government Code Section 54957.6)
Agency Designated Representatives: Steve Filarsky, James Ruth, James
Herberg, Robert Ghirelli, Jeff Reed, and Richard Spencer.
Employee Organizations: 3
• Supervisors and Professionals Group; and
• International Union of Operating Engineers, Local 501; and
• Orange County Employees Association (OCEA); and
Reconvene in regular session.
0712N14 OCSD Board of Directors Agenda Page 5 of 6
Consideration of action, if any, on matters considered in closed session.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
Adjourn the Board meeting until the Regular Board Meeting on August 27, 2014 at 6:30
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)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability
and the type of accommodation requested.
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda
has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, 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.
NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the
Clerk of the Board 14 days before the meeting.
Kelly A. Lore
Acting Clerk of the Board
(714)593-7433
klore[o3ocsd.com
For any questions on the agenda,Committee members may contact staff at:
General Manager Jim Herberg (714)593-7300 iherberafgiomd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rithirelli(glocsd.00m
Director of Engineering Rob Thompson (714)593-7310 rihompsoniclocsd.cem
Director of Facility Support Services Nick Arhontes (714)593-7210 narhontes0ocsd.mm
Director of Finance and Lorenzo Tyner (714)593-7550 Itvner(cDocsd.com
Administrative Services
Director of Human Resources Jeff Reed (714)593-7144 ireed(cbocsd.com
Director of Operations&Maintenance Ed Tortes 714 593-7080 etorres ocsd.com
07@3A4 OCSD Board of Directors Agenda Page 6 of 6
BOARD OF DIRECTORS Meeting Dare I TOBA.Of Dir.
— o7/zB/ta
AGENDA REPORT Item Number Item Number
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION
DISTRICT
GENERAL MANAGER'S RECOMMENDATION
Ratify Payment of Claims of the District by Roll Call Vote.
CONFLICT OF INTEREST NOTIFICATION
Pursuant to Government Code Section 84308, you are required to disclose
any campaign contribution greater than $250 received in the past twelve months from
any party to a contract involving the Orange County Sanitation District. Further, you
may not participate in the decision making process to award a contract to such party.
For reference, you are directed to the Register of Warrants as to all current
contractors/vendors with the District.
In general, you must disclose the basis of the conflict by identifying the name of the firm
or individual who was the contributor.
For the specifics of Government Code Section 84308, please see your Director's
Handbook or call the office of General Counsel.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
ATTACHMENTS
The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website
(mi w.ocsd.coml with the complete agenda package and attachments:
1. Copies of Claims Paid reports from 6/1/14— 6/15/14 and 6/16/14 —6/30/14
Page 1 of 1
Return to Acentla Report
Claims Paid From 611114 to W15114
Vendor Warrant No. Amount Description
Accounts Payable Warrants
1000BULBS.COM 66413 136.39 ElectricallElectronic Equipment,Parts&Repairs
ACCO Engineered Systems Inc. 65563 66,472.00 Repair&Maintenance Services and/or Supplies
AccuStandard 65414 452.60 Laboratory Services&Supplies
ACS Hydraulics,Inc. 65581 943.1 Motor Repairs
Adam P.Newsom 65552 917.89 Meetingamining Expense Reimbursement
ADS LLC 65415 4,603.50 Professional Seranad Engine ding Design Services
Advanced Micro Instruments,Inc. 6502 300.00 Repair&Maintenance Services and/or Supplies
AECOM Technical Services.Inc. 65416 8,855.64 Professional Servisea Engine ding Design Services
AECOM Technical Services,Inc. 65564 33,729.41 Professional SemiceslEngine rring Design Services
Aerotek 65417 60.00 Professional ServicesfLemporery$ervices
Aerotek 6503 47.40 Professional Servicesfrempoorry Services
Ago IndustriesOBA So-Cal Sweeping 65707 980.00 Street Sweeping Services
Air&Waste Management Assoc. 65418 98.00 Professional Organization&Meeting/rmining Registration
Air Liquids America Corp. 65419 1,141.52 Laboratory Services&Supplies
Air Liquids America Corp. 65584 831.92 Laboratory Services&Supplies
Air Liquids America Specialty Gases LLC 65585 243.56 Laboratory Services&Supplies
Air Liquids Industrial U.S.,LP 65420 19,495.18 Laboratory Services&Supplies
Air Liquids Industrial U.S.,LP 65586 2,650.38 Laboratory Services&Supplies
Airgas Safety,Inc. 1794 7,352.22 Safety,Security,Health Equipment,Supplies,and Services
Airgas Safety,Inc. 1807 1,38076 Safety,Security,Health Equipment,Supplies,and Services
Airgas USA,LLC 1795 548.21 Laboratory Services&Supplies
Airges USA,LLC 1808 119.85 Laboratory Services&Supplies
Attend Insurance Services 65421 4,024.00 Insurance
American Express TVL Related Svcs Co.,1 65587 3,599.18 Purchasing Card Program for Miscellaneous Travel Expanses
American Payroll Association 65422 510.00 Professional Organization&MeetingRosning Registration
ANAHEIM CORPORATE OFFICE PLAZA 65559 573.73 Sewer Fee Rebate
AppleOne Employment Service 1796 1,839.20 Professional Servicesfremponry Services
AppleOne Employment Service 1809 919.60 Professional Servicearremporsry Services
Applied Industrial Technology 65588 125.80 Repair&Maintenance Services and/or Supplies
Applied Spectrometry Associates,Inc. 65589 1,384.72 Repair&Maintenance Services and/or Supplies
ARTESIA SAWDUST PRODUCTS 65424 2,261.36 SaMust
ARUN MAHABIRSINGH 65425 350.00 Claim Settlement
AT&T Mobility 11,L.L.C. 65427 7,618.89 Telecommunications
AT&T Universal Biller 65426 2,715.10 Telecommunications
Atkins North America 65591 24,920.16 Professional ServiceslEngineeing Design Services
Atkinson,Andelson,Loya,Rudd&Ruud 65428 7,039.50 Professional Services-Legal
ATM AA,Inc. 65592 560.00 Lab Services
Auto Shop Equipment Co.,Inc. 65593 237.50 Autos,Tucks&Marina Equipment,Parts,Accessories&Services
AW Associates Inc. 65429 706.14 Repair&Maintenance Services and/or Supplies
Battery Systems,Inc. 65430 757.92 Repair&Maintenance Services and/or Supplies
BC Wine Rope&Rigging 65594 4,595.00 Tools&Supplies
Beach Wire and Cable 65431 1,151.82 Telecommunications
Beach Wire and Cable 65595 5N.44 Telecommunications
BOC Etlwards Inc. 65447 2,413.47 Laboratory Services&Supplies
Brea 9 Ovmer LLC 65432 2,500.00 Miscellaneous Services
Brenntag Pacific,Inc. 65408 52,283.49 Chemicals,Water Wastevreter Treatment
Sending Pacific,Inc. 65597 6,352.62 Chemicals,WaterfWasmysater Treatment
Burlington Safety Laboratory of CA,Inc. 65433 79.66 Safety,Security,Health Equipment,Supplies,and Services
Burlington Safety Laboratory of CA,Inc. 65598 79.66 Safety,Security,Health Equipment,Supplies,and Services
California Barricade Rentals 65434 1,3041 Miscellaneous Services
EXHIBITA
nN210t r Page 1 of a 7IM014
Return to Anemia Report
Claims Paid From 611114 to W15/14
Vendor Warrant No. Amount Description
California Barricade Rentals 65599 5,105.00 Miscellaneous Services
California Dept.of Child Support 65600 2,724.65 Judgments Payable
California Water Technologies 65435 9,644.37 Chemicals
California Water Technologies 65601 24,064.35 Chemicals
Cambridge Isotope Labs 65436 1,164.76 Laboratory Services&Supplies
CAPIO 65602 30.00 Professional Organizations MeetingRmining/Membership
Carbon Activated Corporation 65437 19,900.00 Repair&Maintenance Services and/or Supplies
Cavanaugh Machine Works 65603 895.60 Repair&Maintenance Services and/or Supplies
CCP Industries. 65604 5,159.96 Jargon&Household Service&Supplies
CHEM SERVICE INC. 65605 69.20 Laboratory Services&SuppliesideetingRrainin9 Registmtion®epair&Maintenance Sets
Christopher H.Cole 65546 230.00 Meefingnmining Expense Reimbursement
City of Fullerton 65454 138.16 Water Use
City of Huntington Beach 65463 10,414.64 Water Use
City of Seal Beach 65505 187.71 Water Use
Clean Harbors Environmental Services 65438 8,739.70 Grit&Screenings:Ha xucl Waste Disposal
Connell Chevrolet\GEO 65606 9.61 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Consolidated Electrical Distributors 65607 1,082.70 ElectricallElectronic Equipment,Pads&Repairs
Constellation Newenergy Gas Division LLC 65439 18,620.08 Natural Gas
Consumers Pipe&Supply Co. 1797 448.76 Repair&Maintenance Services and/or Supplies
Consumers Pipe&Supply Go. 1810 3,649.40 Repair&Maintenance Services and/or Supplies
Controlled Motion Solutions 65440 74.01 Repair&Maintenance Services and/or Supplies
Cooperative Personnel Services 65609 453.10 Human Resources Services
COUNTY OF ORANGE-AUDITOR-CONTROLLER 65565 81,859.89 Professional Service-Biosolids Management
County of Orange Auditor Controller 65441 2,085.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65442 660.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65443 975.W Governmental Agency Fees&Charges
County of Orange Auditor Controller 65608 148.50 Governmental Agency Fees&Changes
Court Order 65644 2,179.38 Judgments Payable
Court Order 65690 108.00 Judgments Payable
Court Order 65731 912.W Judgments Payable
CS-AMSCO 65444 2,570.13 Repair&Maintenance Services and/or Supplies
Curley Wholesale Electric 65610 1,328.40 Electrical/Electronic Equipment,Parts&Repairs
CWEA Membership 65445 148.00 Professional Organizations Meeting(Training/Membership
CWEA Membership 65611 148.00 Professional Organizations MeetinglTraining/Membership
Dan's Machine Tool,Inc. 65612 759.56 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Dataskill 65566 137,537.99 Computers,Software/Hardware&Managed Services
David M.Collett 65547 170.00 Meefing/Training Expense Reimbursement
Denise M.Martme2 65551 648.90 Meefinglhaining Expense Reimbursement
Desert Pumps&Parts,Inc. 65446 3,834.17 Repair&Maintenance Services and/or Supplies
Detection Instruments Corporation 65567 38,358.52 EIecVIcal/Electronic Equipment,Parts&Repairs
Dig-Smart.L.L.C. 65613 6,800.00 Computer Applications&Services
Dudek&Associates,Inc. 65614 1B,940.58 Professional Services/Engineering Design Services
Eleotrabond 65615 4,595.40 Repair&Maintenance Services and/or Supplies
Empire Today LLC 65448 5,554.41 Repair&Maintenance Services and/or Supplies
Employee Benefits Specialists,Inc. 65MB 827,294.10 Reimbursed Prepaid Employee Medical&Dependent Care
Employee Benefits Specialists,Inc. 65616 15,243.86 Reimbursed Prepaid Employee Medical&Dependent Care
Engineering News Record-Remit 65617 174.00 Books and Publications
ENS Resources,Inc. 65618 5,500.00 Professional Services-Federal Advocacy
Environ Strategy Consultants,Inc. 65449 3,350.00 Professional Services-Quartedy Sampling of Groundvaner Monitoring Wells in the Auto
Environmental Engineering&Contacting 65619 3,400.00 Professional Services/Specialty Course Audits
Eros Yong 65743 234.64 Meefing/Iraining Expense Reimbursement
E HIBITA
nN21ab Page 2 of 8 7IM014
Return to Anemia Report
Claims Paid From 611114 to Will 5/14
Vendor Warrant No. Amount Description
Evang Irrigation 65620 291.74 Irrigation Repair&Maintenance Services and/or Supplies
Excel Door&Gate Co.,Inc. 66621 M.41 Repair&Maintenance Services and/or Supplies
Express Lane Lob 1812 1,524.72 Safety,Security,Health Equipment,Supplies,and Services
Facility Process Solutions Consulting 65622 4,612.20 Professional ServiceslBiotrickling Filter Inspection Services
Fastenal Company 65450 222.16 Janitor&Household Service&Supplies
Fetlex Corporation 65451 85.14 Freight Services
Fetlex Corporation 65623 169A9 Freight Services
Fernando Pammo 65738 118.80 Meefing/haining Expense Reimbursement
Filareky&Waft.L.L.P. 65624 5,945.00 Prof.Services-SPMT Labor Negotiation Meetings is Spacial Services
Fisher Scientific 65452 3,511.81 Laboratory Services&Supplies
Fisher Scientific 65625 63.51 Laboratory Services Supplies
Fishing Boats Unlimited 65453 2,567.52 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Fountain Valley AAA Auto Spa 65626 974.13 Autos,Tucks&Marine Equipment,Parts,Accessories&Services
Franchise Tax Board 65627 15,962.68 Judgments Payable
Frye Electronics 65628 553.24 Computers,Software/Hardware
Ganahl Lumber Company 65629 415.03 Facilities,Maintenance,Services&Supplies
Gerchow,Matters N. 65735 1,282.74 Meeting/Training Expanse Reimbursement
Geoffrey J.Daly 65548 234.16 Meefinglhaining Expense Reimbursement
Gilbert G.Barela 65544 493.69 Meeting/Training Expense Reimbursement
Globalstar CO,Custom Cellular 65630 1,367.39 Telecommunications
Golden State Overnight Delivery Service 65455 171.23 Courier Services
Golden State Overnight Delivery Service 65631 221.92 Courier Services
Grainger,Inc. 65456 6,075.87 Repair&Maintenance Services and/or Supplies
Grainger,Inc. 65632 884.90 Repair&Maintenance Services and/or Supplies
Graybar Electric Company 65633 189.55 ElecbicalbElectronic Equipment,Parts&Repairs
Guidance Software,Inc. 65634 14,312.25 Computer Applications&Services
Haaker Equipment Company 65457 1,485.01 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Hach Company 65458 1,312.43 Laboratory Services&Supplies
Hach Company 65635 11.01 Laboratory Services&Supplies
Harlington Industrial Plastics,Inc. 65459 152.22 Repair&Maintenance Services and/or Supplies
Harrington Industrial Plastic,Inc. 65636 3,032.23 Repair&Maintenance Services and/or Supplies
Henry R.Salgado 65554 279.58 Meetinglhaining Expense Reimbursement
Highmark 65460 1,023.53 Safety,Security,Health Equipment,Supplies,and Services
Hill Brothers 1791 184,021.26 Chemicals,Water/Wastewater Treatment
Hill Brothers 1805 256,644.99 Chemicals,WaterlWastesster Treatment
Home Depot 65461 2,649.80 Miscellaneous Parts and Supplies
Home Depot 65637 9.35 Miscellaneous Parts and Supplies
Hue Y.Yu 65744 1,715.90 Meetinglhaining Expense Reimbursement
Hub Auto Supply 65462 146.67 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Hub Auto Supply 65638 553.44 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Hyatt Legal Plans 65639 3,420.00 Professional Services-Legal
ICC International Code Council 65464 100.00 Professional Organizatons Meeting/rrelning/Membership
IDS Group 65640 4,213.00 Professional Services/Engineering Design Services
Industrial Threaded Products,Inc. 1813 3,550.31 Repair&Maintenance Services and/or Supplies
INTERNATIONAL METALS 65465 4,503.60 Metal
Intl.Union of Oper.Eng.AFL CIO Local 65641 4,589.76 Dues Deductions
Invensys Systems,Inc. 1814 6,019.73 ElectricalbElectronic Equipment,Parts&Repairs
Ironman Parts&Services 65642 292.70 Repair&Maintenance Services and/or Supplies
Irvine Ranch Water District 65466 61.42 Water Use
ITT BORNEMANN USA,INC. 66467 4,506.16 Repair&Maintenance Services and/or Supplies
James D.Ruth 65561 1,200.00 Professional Services/Consultant
EXHIBITA
11 210yb Page 3 of 8 7IM014
Return to Arenas Report
Claims Paid From 611114 to Will 5/14
Vendor Warrant No. Amount Description
James E.Colston 65734 1,013.61 MeetingRraining Expanse Reimbursement
James G.Till 65557 92.00 MeetingRraining Expense Reimbursement
James G.Tintle 65741 723.40 Meel ngrimining Expanse Reimbursement
Jamison Engineering Contractors,Inc. 65468 4,318.00 Professional Services/Construction Support Services
Jays Catering 65643 594.43 Catering Services
Jeff W.Woodward 65742 340.00 Mee6ng/rraining Expense Reimbursement
Jennifer L.Alexander 65541 340.00 MeefinglTraining Expanse Reimbursement
John W.Seini 65556 659.16 Mee6ng/rraining Expense Reimbursement
Johnny J.Roche 65740 340.00 MeatingRraining Expense Reimbursement
Johnstone Supply 65469 85.60 Repair&Maintenance Services and/or Supplies
Kanawha Insurance Company 65645 7,241.73 Voluntary Benefits-SSTD Insurance
KELLV PAPER 65470 4I.68 Office Supplies
Kemira Water Solutions 1792 35,609.71 Chemicals,WaterlWastevreter Treatment
Kemim Water Solutions 1815 23,686.55 Chemicals,WaterlWastewater Treatment
KIMCO STAFFING SERVICES 65471 1,611.00 Professional ServicesRemporary$ervices
KIMCO STAFFING SERVICES 65646 3,296.50 Professional ServicesRempomry Services
Kurt M.Rather, 65553 300.00 Meeting/Training Expense Reimbursement
Keen T Tjen 65558 340.00 Meetingaraining Expense Reimbursement
LAW OFFICE OF DONNA R.EVANS 65472 10,024.00 Legal Services
Laerence R.Bailey 65543 147.56 MeetingRaining Expense Reimbursement
LECO Corporation 65473 618.09 Laboratory Services&Supplies
Lee&Ro,Inc. 65647 15,253.48 Professional Services/Engineering Design Services
Laurie Brisbois Bisgaard&Smith 65648 1,242.00 Professional Services-Legal
Lexis-Nexis 65649 84.00 Books&Publications On-Line
Liberty Mutual Claims 65474 4,178.00 Insurance
Liebert Cassidy 65475 4,055.00 Professional Services/Employee Relations
Lionakis 65650 1,565.90 Professional Services/Architectural and Landscaping Consulting Services
Lubrication Engincers,Inc. 65651 222.04 Repair&Maintenance Services and/or Supplies
Madankumar B.Patel 65739 116.00 Meefingrrraining Expense Reimbursement
Mail Dispatch,LLC 65652 330.12 Mail Delivery Service
Mane E.Ayala 65542 69.17 MeetingRraining Expense Reimbursement
Maria E.Ayala 65560 1,705.30 Meetingaraining Expense Reimbursement
Martin Alarcon 65540 152.80 MeatingRraining Expense Reimbursement
Maureen Kane&Associates 65653 1,5W.00 Professional Organizations MeetinglTraininglMembership
Maxim Security Systems 65476 9,351.56 Safety,Security,Health Equipment,Supplies,and Services
MCJunkin Red Man Corporation 65417 58.01 Repair&Maintenance Services and/or Supplies
McMaster-Cart Supply Co. 65478 1,829.13 Repair&Maintenance Services and/or Supplies
McMaster-Can Supply Co. 65654 106.49 Repair&Maintenance Services and/or Supplies
Media Blast and Abrasive,Inc. 65655 7,837.12 Mechanical Equipment
Mesa International Technologies,Inc. 65419 460.00 Repair&Maintenance Services and/or Supplies
Mesa International Technologies,Inc. 65656 1,344.16 Repair&Maintenance Services and/or Supplies
Midway Mfg.&Machining Co. 65480 ],89].50 Repair&Maintenance Services and/or Supplies
Mid-West Associates,Inc. 65657 483.39 Repair&Maintenance Services and/or Supplies
Mike Bubalo Construction Co.,Inc. 65580 733,112.53 Construction
Mission Abrasive&Janitorial Supplies 65481 146.68 Janitorial&Household Services&Supplies
MOGULS INSTITUTE NORTH AMERICA 65658 1,450.00 Meeting/baining Registration
MSDS Online,Inc. 65659 4,099.00 Computer Applications&Services
MTM Recognition Corporation 65660 566.46 Service Awards
Multi W Systems,Inc.-Real 65661 10,889.08 Pump Supplies
MWH Americas,Inc. 65570 42,922.60 Professional Services/Engineering Design Services
NACE International 65482 130.00 Professional Organizations Meeting/TraininglMembership
nmzlalr Page 4 of 8 HIM04
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Claims Paid From 611114 to W15114
Vendor Warrant No. Amount Description
National Water Research Institute 65662 10,000.00 Professional Organizations Meting/Training/Membership
Neal Supply Co. 66663 2W.60 Repair&Maintenance Services and/or Supplies
Neatest USA Inc. 65664 63.54 Equipment LeaselPostage Meter
NetworkFleet,Inc. 65665 3,153.64 Software Maintenance Agreement
Newark Electronics 65483 126.68 Electrical/Electronic Equipment,Paris&Repairs
Northern Tool&Equipment 65596 196.84 Electrical Paris&Supplies
NRG Engine Services,L.L.C. 65484 2,465.58 Repair&Maintenance Services and/or Supplies
OCB Reprographics 65423 7,962.92 Printing/Reprographics Services
OCB Reprographics 65590 1,366.21 Printing/Reprographics Services
OCEA 65666 653.25 Dues Deductible
CDC Engineering&Technology 65412 112,547.45 Construction
CDC Engineering&Technology 65485 7,690.00 Construction
Officer Depot 65486 929.60 Office Supplies
Office Depot 65667 678.29 Office Supplies
Officer Team 65487 1,878.40 Professional ServiceslTemporary Services
Office Team 65668 991.70 Professional Services/temporary Services
Oi Corporation 65488 364.54 Laboratory Services&Supplies
Olin Corporation 65489 15,431.96 Chemicals,WaterlWastewater Treatment
Olin Corporation 65669 11,389.93 Chemicals,Water/Wastewater Treatment
OneSouroe Distributors,Inc. 65490 1,542.93 Electrical/Electronic Equipment,Parts&Repairs
Onesoume Distributors,Inc. 65670 2,579.82 Elec ricapElectronic Equipment,Paris&Repairs
Orange County Auto Parts 65671 4,956.89 Truck Supplies
Orange County Sher4f 65673 640.76 Judgments Payable
Orange County United Way 65674 40.00 Employee Contributions
01 USA,LLC 65491 3,112.67 Repair&Maintenance Services and/or Supplies
Pacific Mechanical Supply 1816 4,033.24 Repair&Maintenance Services and/or Supplies
Parker Supply Company 1817 487.25 Miscellaneous Parts and Supplies
PCS Express,Inc. 65615 157.88 Courier Services
Peace Officers Council of CA 65676 2,104.50 Dues Deductions,Supervisors&Professionals
Pencco,Inc. 65492 16,757.18 Chemicals
Periodic,Inc. 65677 10,881.06 Chemicals
PL Hawn Company,Inc. 65678 545.53 Repair&Maintenance Services and/or Supplies
Polydyne,Ind. 1793 81,299.14 Chemicals,Water/Wastewffier Treatment
Polydyne,Inc. 1806 52,347.66 Chemicals,WaterMastewater Treatment
Postmaster 65679 224.00 Postage
Pourer Bros.Machine,Inc. 65680 2,586.81 Repair&Maintenance Services and/or Supplies
PR Electronics,Inc. 65681 2,127.33 Electrical/Electronic Equipment,Paris&Repairs
Praxair Distributor,Inc. 65493 211.44 Laboratory Services&Supplies
Praxair Distribution,Inc. 65682 823.93 Laboratory Services&Supplies
PRIME CONTROLS COMPANY,INC. 65883 417.57 Repair&Maintenance Services and/or Supplies
Primrose Ice Co.,Inc. 65494 262.50 Water&Ice Services
Primrose Ice Co.,Inc. 65884 131.25 Water&Ice Services
Project Management Institute 65495 164.00 Professional Oganizations Meeting/Training/Membership
Projects Partners 65885 2,900.00 Professional Services/remporery Employment Services
Propipe Professional Pipe Services 1823 527.22 Professional ServiceslCCTV Sewatline Inspections
Prudential Cleanroom Services 65496 182.74 Uniforms
Prudential Cleamoom Services 65686 182.74 Uniforms
Prudential Overall Supply 1798 1,468.03 Uniforms
Prudential Overall Supply 1818 1,469.59 Uniforms
Public Safety Management Assoc.(PASMA) 65687 75.00 Professional Organizations MeetinglTralning/Membership
Quinn Power Systems 65688 450.01 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
EXHIBITA
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Claims Paid From 611114 to Will 5/14
Vendor Warrant No. Amount Description
Rae Systems,Inc. 65497 79].] Instrument Repairs
Rainbow Disposal Co. 66691 3,499.00 Waste Disposal
Rand McNally 65692 9,210.00 Softeners Maintenance Agreement
RANDSTAD TECHNOLOGIES,L.P. 65693 4,000.00 Software
Red Wing Shoes 65694 133.92 Safety,Security,Health Equipment,Supplies,and Services
Regents of the University of Cali. 65498 24,678.72 Meefing/haining Registration
Postek Com, 1799 1,331.76 Laboratory Services&Supplies
Postek Corp. 1819 815.01 Laboratory Services&Supplies
RF MacDonald Co. 65689 3,379.46 Repair&Maintenance Services and/or Supplies
Richard A.Castilian 65732 528.17 Meeting/Training Expense Reimbursement
RMC Water and Environment 65572 25,964S4 Professional Services
RMS Engineering&Design,Inc. 65695 7,312.50 Professional SomiceslEngineering Design Services
Rockwell Engineering&Equipment Co. 65409 92,424.04 Repair&Maintenance Services and/or Supplies
Rosemount Analytical Inc.-Remit 65499 1,355.04 EleckicallElectmnic Equipment,Pans&Repairs
Royale Cleaners 65500 145.60 Miscellaneous Services
Royale Cleaners 65696 6.10 Miscellaneous Services
RPM Electric Motors 65501 1,454.80 Repair&Maintenance Services and/or Supplies
Ruben L.Struca t 65555 170.00 Meefinglhaining Expense Reimbursement
Russell Sigler,Inc.tlbe Sigler W holesal 65502 702.00 ElecbicallElectronic Equipment,Parts&Repairs
Safety Max 65697 4T1.12 Safety,Security,Health Equipment,Supplies,and Services
Samuel Choi 65545 1,413.36 Meefingrimining Expense Reimbursement
San Diego/Orange Fluid System Technologi 65698 1,882.39 Repair&Maintenance Services and/or Supplies
Sancon Engineering,Inc. 65573 62,512.50 Repair&Maintenance Services and/or Supplies
SARBS 65562 840.00 Professional Organizations MeetingRmininglMembership
SARBS 65745 165.00 Professional Organizations Meeting(TraininglMembership
SCAMIT 65503 150.00 Professional Services
Scheming America,Inc. 65504 939.08 Mechanical Parts&Supplies
Scheming Bioset 1800 295.38 Repair&Maintenance Services and/or Supplies
Scientific Instrument Services,Inc. 65699 1,238.80 Laboratory Services&Supplies
SDT North America,Ltd. 65700 15,975.00 Professional Organizations MeetingRmining/Membership
Selwyn D.Mansell II, 65736 440.00 Meefingrrraining Expense Reimbursement
Sequoia Consultants,Inc. 65701 10,411.00 Professional ServiceslEnginee ing Design Services
SGS Testcem,Inc. 65506 8.27 Computer Ha mare and Services
Shamrock Supply Co.,Inc. 65507 842.08 Repair&Maintenance Services and/or Supplies
Shamrock Supply Co.,Inc. 65702 5,181.60 Repair&Maintenance Services and/or Supplies
Sharesquared,Inc. 65703 7,500.00 Computer Applications&Services
Shureluck Sales&Engineering 65704 619.64 Repair&Maintenance Services and/or Supplies
SIEMENS INDUSTRY,INC. 65508 1,995.00 Repair&Maintenance Services and/or Supplies
SIEMENS INDUSTRY,INC. 65705 21,200.00 Meefingrrraining Registration
Siemens Water Teommlogles Corp. 1811 1,523.84 Repair&Maintenance Services and/or Supplies
SIERRA TRANSPORT INC. 65574 26,093.32 Professional Service-Biosolids Management
Sigma-Aldrich,Inc. 65706 384.44 Laboratory Services&Supplies
South Coast Air Quality Management Dist. 65708 10,398.63 Governmental Agency Fees&Charges
Southern California Edison 65575 75,204.16 Utilities
Southland Envelope Company,Inc. 65509 61 Office Supplies
Sparkleft-Dallas 65709 2,023.32 Miscellaneous Services
Spading Instruments,Inc. 65710 1,576.91 EleclricallElectronic Equipment,Parts&Repairs
SPITZLIFT 65510 3,611.79 Small Tools
SST Benefits Consutling&Insurance Sew 65511 1,000.00 Professional Services
St.Croix Sensory,Inc. 65512 3,069.00 Olfactometry Testing Services
Staples 65513 260.81 Office Supplies
EXHIBITA
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Claims Paid From 611114 to(A 5114
Vendor Warrant No. Amount Description
Staples 65711 2,220.46 ORlce Supplies
Summit Steel 1801 182.56 Repair&Maintenance Services and/or Supplies
Summit Steel 1820 302.40 Repair&Maintenance Services and/or Supplies
Synagro West,Inc. 65576 707,332.45 Biosolids Management
Terry W.Kne 65550 961.60 Mee0nglTraining Expense Reimbursement
TestAmerica Ontario 1802 81.00 Laboratory Services&Supplies
TestAmerica Ontario 1821 1,184.00 Laboratory Services Supplies
Trani 65577 45,067.24 Professional Services/North Scrubbers Complex Bleach Tank Replacement
Thatcher Company Of California 65578 36,491.40 Chemical,Water/Wastesater Treatment
The Automotive Training Authority 65514 ➢%.W Professional Organizations MeetingRmining/Membership
The Orange County Register 65672 558.00 Notices&Ads
The Public Retirement Journal 65712 390.00 Books and Publications
Theodore Robins Ford 65515 248.76 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Thennto Products,Inc. 65516 88.29 Laboratory Services&Supplies
Thomas A.Hunt 65549 340.00 Meefing/Training Expense Reimbursement
Thompson Industrial Supply,Inc. 1803 16,088.83 Repair&Maintenance Services and/or Supplies
Thompson Industrial Supply,Inc. 1822 3,232.51 Repair&Maintenance Services and/or Supplies
Tiano Construction 65517 4,658.00 Facilities,Maintenance,Services&Supplies
Time Warner Communications 65518 61.72 Telecommunications
Tony§Lack&Safe Service&Sales 65713 15.12 Repair&Maintenance Services and/or Supplies
Toshiba Business Solutions USA Inc. 65714 2,567.21 Computers,Software/Hardware&Managed Services
Trans U.S.Inc 65519 9,142.42 Repair&Maintenance Services and/or Supplies
Trice Realty Master Account 65520 939.64 Sewer User Refund
Trice Realty Master Account 65521 185.28 Sewer User Refund
Tropical Plaza Nursery,Inc. 65522 12,M.50 Landscape Maintenance Services
Truck&Auto Supply,Inc. 65523 72.98 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Truck&Auto Supply,Inc. 65715 43.61 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Tula RanchlMagan Fall 65410 274,5W.65 Biosolids Management
Toe RanchlMagan Farms 65716 2,410.17 Biosolids Management
TW Telecom Holdings,Inc. 65717 10,607.91 Telecommunications
Ultra Scientific 65524 917.05 Laboratory Services&Supplies
United Parcel Service 65526 226.15 Freight Services
United Parcel Service 65719 0.52 Freight Services
United States Postal Service 65718 5,000.00 Postage
US Peroxide,L.L.C. 65526 4,436.02 Chemicals,Water/Wastewster Treatment
US Peroxide,L.L.C. 65579 25,793.28 Chemicals,WaterlWasteverter Treatment
Utility Systems,Science&Software Inc. 65720 13,470.00 Professional Services/Pharr,Pilot Project Flow Monitoring
Valve Automation&Controls 65527 1,902.15 Repair&Maintenance Services and/or Supplies
Valve Automation&Controls 65721 3,999.50 Repair&Maintenance Services and/or Supplies
Verbal Ink 65528 1,208.25 Human Resources Services
Verbal Ink 65722 126.75 Human Resources Services
Vatican California 65529 W.02 Telecommunications
Vemon Wireless 65530 1414.93 Telecommunications
Vertech Industrial Systems,Lie 65531 5,376.60 Professional Services/Construction Consulting Services
Village Nurseries 65723 167.36 Repair&Maintenance Services and/or Supplies
Vision Internet Providers,Inc 65532 350.00 Professional Senices/Web Design Services
Voyager Fleet Systems,Inc. 65724 24,851.03 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
MR Scientific Products 65533 1,581 Laboratory Services&Supplies
MR Scientific Products 65725 195.39 Laboratory Services&Supplies
Water Environment Federation 65726 202.00 Professional Organizations Meeting/rrelning/Membership
West Coast Arboreta,Inc. 65534 300.00 Landscape Maintenance Services
EXHIBITA
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Claims Paid From 611114 to W15/14
Vendor Warrant No. Amount Description
West Coast Arbodsts,Inc. 65727 2,500.00 Landscape Maintenance Services
West Coast Safety Supply Co. 65728 5,322.12 Safety,Security,Health Equipment,Supplies,and Services
West Lite Supply Company,Inc. 65535 935.27 Electrical/Electronic Equipment,Pads&Repairs
Western Analytical Laboratories,Inc. 65729 7,475.00 Outside Labomtory Services
White Star Pools 65730 310.00 Repair&Maintenance Services and/or Supplies
Winer Corporation 65536 am Repair&Maintenance Services and/or Supplies
Woodruff Spradlin&Smart 65411 55,339.38 Professional Services-Legal
Workforce Software,Inc. 65537 2,560.00 Computer Applications and Services
Xerox Corporation 1804 11,521.57 Computers,Softeare/Hardware&Managed Services
Yale/Chase Materials Handling,Inc. 65538 3,484.r Electrical/Electronic Equipment,&Electric Cart Parts&Repairs
Yonne Linda Water District 65539 51.60 Utilities
Total Accounts Payable-Warrants $ 5,178,841.96
Payroll Disbursements
Employee Paychecks 56310 - M352 $ 78,191.63 Biweekly Payroll(6/11/14)
Employee Paychecks 5053 1,640.63 Interim Payroll-Reissue(6111114)
Direct Deposit Statements 355679-356268 1,432,003.98 Biweekly Payroll(6/11/14)
Total Payroll Disbursements $ 1, 11,5 836.24
Wire Transfer Payments
OCSD Paymll Taxes&Contributions $ 794996.54 Biweekly Payroll(6111114)
Total Wire Transfer Payments $ 794,996.54
Total Claims Paid 6/1114-6115114 $ 7,485,674.74
EXHIBITA
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Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
Accounts Payable Warrants
Abel Scale,Inc. 65900 9,915.97 Repair&Maintenance Services and/or Supplies
Absolute Standards,Inc. 65765 1,295.00 Laboratory Services&Supplies
ACCU Sludge 65766 1,073.28 Laboratory Services&Supplies
AccuStaadard 65767 223.98 Laboratory Services&Supplies
A-Check America,Inc. 1838 365.75 Human Resources Services
ACORN MEDIA 65768 443.99 Minor Equipment,Parts,Accessories&Services
Agilent Technologies,Inc. 65769 153.35 Laboratory Services&Supplies
Air Liquids America Corp. 65770 2,845.87 Laboratory Services&Supplies
Air Liquids Industrial U,S.,LP 65111 9,968.15 Labomtory Services&Supplies
Air Liquids Industrial U.S.,LP 65901 17,515A3 Laboratory Services&Supplies
Airgas Safety,Inc. 1824 3,322.27 Safety,Security,Health Equipment,Supplies,and Services
Airgas Safety,Inc. 1839 11,152.33 Safety,Security,Health Equipment,Supplies,and Services
Airgas USA,LLC 1825 1,645.33 Labomtory Services&Supplies
Airgas USA,LLC 1840 350.53 Laboratory Services&Supplies
American Chemical Society 65772 154.00 Professional Organizations MeetingVTmining/Membership
American Integrated Services,Inc. 65903 12,630.00 Grit&Screenings Disposal
AMERICAN PUBLIC WORKS ASSOCIATION 65904 785.35 Professional Organizations Meeting VTraining/MembemhipPmfssional Services-Legal®
American Trainco,Inc. 65113 7,400.00 Training Registration
American Tminco,Inc. 65905 8,880.00 Training Registration
Amtech Elevator Services 65114 1,035.00 Miscellaneous Services
Analytical Technology,Inc. 65775 121.69 Instrument Supplies
Andre Miller 66037 1,60853 Meefing/Training Expanse Reimbursement
Ann H.Bmndvoid 65875 654.91 Meeting/raining Expense Reimbursement
AON Risk Insurance Services West 65746 50,952.83 Insurance(Owner Controlled Insurance Program)
AppleOne Employment Service 1826 735.68 Professional Services/rempomry Services
Applied Industrial Technology 65116 23.39 Repair&Maintenance Services and/or Supplies
Applied Industrial Technology 65906 78.40 Repair&Maintenance Services and/or Supplies
Append Biosystems,Inc. 65117 325.00 Laboratory Services&Supplies
Association of California Gass 65779 200.00 Professional Organizations,MeetinglRaining/Membership Dues
AT&T Teleconference Services 65780 134.22 Telecommunications
Awards&Trophies Company 65781 88.36 Awards and Framing Services
Awards&Trophies Company 65907 23.76 Awards and Framing Services
AWSI 65782 57.00 Professional Services-DOT Program Administration
Ayala Engineering 65908 4,545.00 Repair&Maintenance Services and/or Supplies
BARBOZA&ASSOCIATES,A LAW CORP. 65783 12,226.94 Professional Services-Legal
Barnes&Thornburg 65909 10,500.00 Professional Services-Legal
Biospherical Instruments,Inc. 65784 266.72 Repair&Maintenance Services and/or Supplies
Black&Veatch Corporation 65747 96,269.07 Professional Servides/Engineering Design Services
Spending Pac0lc,Inc. 65748 25,729.98 Chemicals,WaterMastevrater Treatment
Burlington Safety Labomtory of CA,Inc. 65785 175.55 Safety,Security,Health Equipment,Supplies,and Services
Burlington Safety Laboratory of CA,Inc. 65910 1,543.06 Safety,Security,Health Equipment,Supplies,and Services
California Dept.of Child Support 65911 2,632.35 Judgments Payable
California Hazardous Services,Inc. 65912 3,862.50 Repair&Maintenance Services and/or Supplies
California Relocation Services,Inc. 65786 600.00 Miscellaneous Services-MovingrRelocation
California Water Technologies 65787 4,895.20 Chemicals
California Water Technologies 65913 4,969.95 Chemicals
Caltml,Inc. 65788 2,706.78 EIecVIcallElectmnic Equipment,Parts&Repairs
CANADA RESEARCH LABORATORIES,LTD. 65789 105.00 Professional Services
Cade D.Dillon 66030 91 Meefinglhalnidg Expense Reimbursement
Charles King Company,Inc. 65759 157,855.60 Construction
EXHIBIT B
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Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
Chrome Technology,Inc. 65885 2,152.49 Reconciliation User Fee Refund Program
Chrome Technology,Inc. 65886 272.01 Reconciliation User Fee Refund Program
Chuck M.Forman 66032 667.40 Meetingrimining Expanse Reimbursement
City of Huntington Beach 65812 11.82 Water Use
City W Westminster 65790 WIN Water Use
Coast Cane Company 65889 478,440.00 Repair&Maintenance Services and/or Supplies
Connell Chevrole0GEO 65914 412.51 Autos,Trucks&Marina Equipment,Parts,Accessories&Services
Consolidated Electrical Distributors 65791 469.56 ElectricalbElectumic Equipment,Parts&Repairs
Consumers Pipe&Supply Co. 1841 45.74 Repair&Maintenance Services and/or Supplies
Corporate Image Maintenance,Inc. 65749 37,420.00 Janitor&Household Service&Supplies
CORRPRO Companies,Inc. 65750 38,769.50 Professional Services/Temporary Services
County of Orange Auditor Controller 65792 1,905.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65793 900.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65794 101.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65795 STM Governmental Agency Fees&Changes
County of Orange Auditor Controller 65796 82.50 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65797 Will Governmental Agency Fees&Charges
County of Orange Auditor Controller 65915 810.00 Governmental Agency Fees&Charges
County of Orange Auditor Controller 65916 1,500.00 Governmental Agency Fees&Charges
County Wholesale Electric Co. 65917 1,300.32 Electrical/Electronic Equipment,Parts&Repairs
Court Omer 65960 2,179.38 Judgments Payable
Court Order 65995 108.00 Judgments Payable
Court Order 66025 912.50 Judgments Payable
CR&R,Inc. 65798 688.18 Waste Disposal
CS-AMSCO 65800 11,376.26 Repair&Maintenance Services and/or Supplies
CS-AMSCO 65918 4,972.53 Repair&Maintenance Services and/or Supplies
CSI Services,Inc. 65801 384.56 Professional Services
Culligan of Orange County 65919 59.55 Repair&Maintenance Services and/or Supplies
Curley Wholesale Electric 65920 874.54 Electrical/Electronic Equipment,Parts&Repairs
Curtis Buonacomi Will 440.00 Meetingaraining Expense Reimbursement
CWEA Membership 65802 W.00 Professional Organizations Meeting(Training/Membership
DAVID A.PEDERSEN 65921 SBW.00 Professional Services-Landscape
David Gutoff 65803 225.00 Laboratory Services&Supplies
David R.Andrew Will 230.00 Meetingaraining Expense Reimbursement
DO SYSTEMS INC.DBA ACE CD INC. 65760 63,114.20 Construction
Desert Pumps&Parts,Inc. 65922 6T1.44 Repair&Maintenance Services and/or Supplies
Designer Stitch Embroidery 65923 2,664.84 Public Outreach Supplies
Donald B.Van Voomt Wl 170.00 Meetingaraining Expense Reimbursement
Dudek&Associates,Inc. 65804 5,815.40 Professional ServiceslEngineering Design Services
Dudek&Associates,Inc. 65924 21,815.35 Professional Services/Engineering Design Services
Dvryer Instruments,Inc. 65925 492.59 Electrical/Electronic Equipment,Parts&Repairs
Employee Benefits Specialists,Inc. 65805 2,975.55 Reimbursed Prepaid Employee Medical&Dependent Care
Employee Benefits Specialists,Inc. 65926 11,903.54 Reimbursed Prepaid Employee Medical&Dependent Care
Enecon USA,Inc. 65806 1,494.80 Repair&Maintenance Services and/or Supplies
Entech Instruments,Inc. 65927 3,816.61 Laboratory Services&Supplies
Ernest R.Severna 65883 175.00 Meetingaraining Expense Reimbursement
Eving Irrigation 65928 312.91 Irrigation Repair&Maintenance Services and/or Supplies
Excel Door&Gate Co.,Inc. 65929 1,560.00 Repair&Maintenance Services and/or Supplies
Faviola Miranda 65878 638.09 Meeting/Iraining Expense Reimbursement
Fool Corporation 65930 146.63 Freight Services
Fisher Scientific 65931 409.30 Laboratory Services&Supplies
EXHIBIT B
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Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
Foundation for Cross Connection Control 65807 120.00 Professional Organizations Meeting/Training/Membership
Fountain Valley Paints,Inc. 65932 756.W Facilities,Maintenance,Services&Supplies
Franklin Covey 65933 71.84 Office Supplies
Fresno First Bank-Acct 100013315 65898 35,897.95 Construction,Retention
Frys Electronics 65809 247.20 Computers,Software/Hardware
G&B Creative Solutions LLC 65799 7,988.00 Printing and Publications
Damon Callahan Company 65935 127.56 Chemicals,Water/Wastewater Treatment
Gates Fiberglass Installers 65936 5,982.00 Repair&Maintenance Services and/or Supplies
Gestic 65937 2,150.28 Repair&Maintenance Services and/or Supplies
GHD 65938 13,826.25 Professional Servicchi Engineering Design Services
Gina A.Tetsch 66039 143.00 Meeting/training Expense Reimbursement
Glens Alignment&Broke Service 65939 110.00 Autos,Tracks&Marine Equipment,Pads,Accessories&Services
Global Environmental Natwnrk Inc. 65940 825.00 Safety,Security,Health Equipment,Supplies,and Services
Golden State Overnight Delivery Service 65941 46.01 Counter Services
Golden West Window Service 65942 432.00 Facilities,Maintenance,Services&Supplies
Grainger,Inc. 65943 3,586.61 Repair&Maintenance Services and/or Supplies
Goal Electric Company 65810 40.88 Electrical/Electronic Equipment,Pads&Repairs
Hacker Equipment Company 65944 16,300.00 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Hardy Diagnostics 65945 148.40 Laboratory Services&Supplies
Harrington Industrial Plastics,Inc. 65946 1,783.W Repair&Maintenance Services and/or Supplies
HDR Engineering,Inc. 65890 102,382.02 Professional Services/Engineering Design Services
Heather Davis 66029 444.69 Meetinglhaining Expense Reimbursement
Herrigsted,Cad A. 66033 651.65 Meeting/Training Expense Reimbursement
Hill Brothers 1827 2,657.79 Chemicals,Water/Wastewater Treatment
Hill Inc. 65947 2,696.20 Repair&Maintenance Services and/or Supplies
Home Depot 65811 373.35 Miscellaneous Pads and Supplies
Home Depot 65948 450.21 Miscellaneous Pads and Supplies
Hub Auto Supply 65949 396.53 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
HYDRAULIC CONTROLS 65950 653.18 Repair&Maintenance Services and/or Supplies
IDEXX Distribution,Inc. 65951 1,028.16 Laboratory Services&Supplies
Industrial Electric Machinery LLC 65952 1,650.24 Repair&Maintenance Services and/or Supplies
Insight Public Sector,Inc. 65751 27,439.38 Computers,Software/Hardware
INTERNATIONAL METALS 65813 934.20 Metal
Intl.Union 0f Oper.Eng.AFL CIO Local 65953 4,614.01 Dues Deductions
Invensys Systems,Inc. 1828 4,176.15 Electrical/Electronic Equipment,Pads&Repairs
Irvine Ranch Water District 65814 12.39 Water Use
Irvine Ranch Water District 65954 64.01 Water Use
J R Filers Construction 65761 308,4W.73 Construction
JACOBS PROJECT MANAGEMENT CO. 65891 133,450.24 Professional Services/Temporery Services
Jamison Engineering Contractors,Inc. 65892 78,345.91 Professional Services/Construction Support Services
Jays Catering 65816 626.83 Catering Services
Jays Catering 65956 1,171.63 Catering Services
JEFFREY B.LOVE,INC. 65957 6,395.00 Professional Services-Legal
JG Tucker And Son,Inc. 65815 3,941.46 Safety,Security,Health Equipment,Supplies,and Services
JG Tucker And Son,Inc. 65955 480.69 Safety,Security,Health Equipment,Supplies,and Services
JM SQUARED ASSOCIATES 65958 15,217.20 Miscellaneous Pads and Supplies
Johnstone Supply 65958 109.68 Repair&Maintenance Services and/or Supplies
JP Morgan Chase Bank,NA 65752 55,698.83 Purchasing Card Program for Miscellaneous Parts and Supplies
Kaman Industrial Technologies 65961 856.48 Repair&Maintenance Services and/or Supplies
KELLY PAPER 65817 315.91 Office Supplies
Kemim Water Solutions 1829 16,974.41 Chemicals,WaterlWastesaler Treatment
EXHIBIT B
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Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
Kemira Water Solutions 1837 50,717.74 Chemicals,Water/Wastewater Treatment
Koury Engineering and Testing,Inc. 65962 364.25 Professional Services/Engineering Design Services
Larry J.Jones 66034 148.00 MeetingRraining Expense Reimbursement
Larry S.Andresen 66026 3W.00 Meefing/Training Expense Reimbursement
Letner Rni Co. 65818 16,100.00 Repair&Maintenance-Roof Repair and/or Replacement
Liberty Mutual Claims 65819 15,656.64 Insurance
Liberty Mutual Claims 65963 2,523.50 Insurance
Life Technologies-Remit to: 65964 5,291.46 Laboratory Services&Supplies
Lytle Screen Printing 65965 454.68 Miscellaneous Services
Malcolm Pirnie Inc. 65888 35,456.13 Construction
Malcolm Firms,Inc. 65966 906.53 Professional Services/Engineering Design Services
Made E.Ayala 66027 388.14 MeetingRraining Expense Reimbursement
Mark S.Roberts 65882 159.00 Meeting/raining Expanse Reimbursement
Matheson Tri Gas,Inc. 65820 4,357.32 Laboratory Services&Supplies
Mathew D.Rebai 65881 300.00 MeetingRraining Expanse Reimbursement
Malt Chloe Inc. 65821 1,294.71 Repair&Maintenance Services and/or Supplies
MAXIMus INC 65822 6,900.00 Professional Services
MCGladrey&Pullen LLP 65823 5,000.00 Professional Services-Financial Auditing
MCJunkin Red Man Corporation 65824 2,327.23 Repair&Maintenance Services and/or Supplies
McMaster-Cart Supply Co. 65825 458.34 Repair&Maintenance Services and/or Supplies
McMaster-Can Supply Co. 65967 1,003.37 Repair&Maintenance Services and/or Supplies
McNeill International Inc. 65826 2,333.80 ElectricallElectronic Equipment,Parts&Repairs
Mesa Muffler 65827 212.00 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Mesa Mutter 65968 168.80 Autos,Tmcks&Marine Equipment,Parts,Accessories&Services
Michael A.Bemis 65874 150.00 MeetingRraining Expanse Reimbursement
MICHAEL C.BROWN&ASSOCIATES 65828 1,500.00 Training Registration
Michael J.Barrett 66028 340.00 MeetingRraining Expanse Reimbursement
Michael Full 65880 172.50 MeetingRraining Expense Reimbursement
Mid-West Associates,Inc. 65968 3,033.76 Repair&Maintenance Services and/or Supplies
Moore Medical Inc. 1830 289.02 Medical Supplies
MSC Industrial Supply Co. 65829 37.94 Repair&Maintenance Services and/or Supplies
MTM Recognition Corporation 65970 404.40 Service Awards
National Seminars Group 65971 3,400.00 Training Registration
NAVIGANT 65972 4,413.39 Professional Services/Engineering Design Services
Neal Supply Co. 65973 467.41 Repair&Maintenance Services and/or Supplies
New Horizons Computer Learning Center 65974 891.00 Professional Organizations MeetingRmininglivembership
Newark Electronics 65830 202.92 ElectricaVElectronic Equipment,Parts&Repairs
Newark Electronics 65976 1,219.53 Electrical/Electronic Equipment,Parts&Repairs
Norval Controls Incorporated 65976 656.26 Repair&Maintenance Services and/or Supplies
NRG Engine Services,L.L.C. 65917 1,353.62 Repair&Maintenance Services and/or Supplies
Oau Shave Ice,LLC 65831 700.00 Public Outreach Services and Supplies
OCB Reprographics 65778 739.57 PrintinglReprogmphics Services
OCFA 65978 653.25 Dues Deductible
Office Depot 65832 265.90 Office Supplies
Office Depot 65979 1,537.38 Office supplies
Office Team 65833 991.70 Professional Services/Tempomry Services
Olin Corporation 65834 11,645.31 Chemicals,Water/Wastewater Treatment
Olin Corporation 65980 9,024.20 Chemicals,WalerlWastewaler Treatment
Olympus America Inc.-Remit to: 65835 2,721.79 Laboratory Services&Supplies
OneSource Distributors,Inc. 65836 27.41 Electrical/Electronic Equipment,Parts&Repairs
OneSource Distributore,Inc. 65981 1,515.35 Electrical/Electronic Equipment,Parts&Repairs
EXHIBIT B
nN2lalr Page 4 of 7IM014
Return to Arenda Report
Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
Oracle Corporaton 65837 3,466.08 Computer Applications&Services
Orange County Auto Parts 65982 237.25 Truck Supplies
Orange County Sanitation District 65988 1,433.63 Petty Cash Expense
Orange County Sheriff 659U 64016 Judgments Payable
Orange County United Way 65985 40.00 Employee Contributions
Ovivo USA,LLC 65839 392.59 Repair&Maintenance Services and/or Supplies
Parker Hannifin Corporation 65840 500100 Repair&Maintenance Services and/or Supplies
Parker Supply Company 1831 4,544.68 Miscellaneous Parts and Supplies
Parker Supply Company 1842 562.40 Miscellaneous Parts and Supplies
Paula M.Williams 66042 1,611.06 Meefing/haining Expense Reimbursement
Peace Officers Council of CA 65986 2,104.50 Dues Deductions,Supervisors&Professionals
Peeress Wiping Materials Co. 65841 992.52 Janitor&Household Service&Supplies
Persian,Inc. 65842 16,278.89 Chemicals
Pencco,Inc. 65987 5,4]].54 Chemicals
Performance Pipeline Technologies 65843 14,100.00 Professional ServiceslCCTV lnspactionl5ewerline Cleaning
Performance Pipeline Technologies 65893 28,318.W Professional ServlceSICCTV Inspection/Sewerline Cleaning
PLC LTD.COM INC 65753 75,600.00 Computer Supplies
Polydyne,Inc. 1832 19,316.17 Chemicals,WaterlWastewater Treatment
Polydyne,Inc. 1843 8,728.26 Chemicals,Watia-Wastearter Treatment
Ponton Industries,Inc. 65844 2,675.82 Laboratory Services&Supplies
Primary Source Ofica Furnishings,Inc. 65845 2,297.16 Minor Equipmentlionituro&Fixtures
Primrose Ice Co.,Inc. 65846 262.50 Water&Ice Services
Primrose Ica Co.,Inc. 65989 131.25 Water&Ice Services
Peaces Work Injury Center 65990 290.00 Medical Services
Projects Partners 65847 5,452.00 Professional Servicerrempomry Employment Services
Prudential Cleamoom Services 65848 182.74 Uniforms
Prudential Cleanumom Services 65991 182.74 Uniforms
Prudential Overall Supply 1833 1,469.44 Uniforms
Pryor Seminara/Camer Track 65808 597.00 Professional Organizations Meeting(Training/Membership
Pryor Seminars/Career Track 659U 298.00 Professional Organizations MeotingRmining/Membership
Pump Action 65992 3,024.79 Oil Filters
O Air-Calif.Div.Pump Engineering 65849 887.76 Repair&Maintenance Services and Supplies
D Air-Calif..Div.Pump Engineering 65993 1,425.74 Repair&Maintenance Services and Supplies
Quinn Power Systems 65994 36.21 Autos,Trucks&Marine Equipment,Parts,Accessories&Services
Rabobank,Escrow Acctk 272295513 65762 114,386.90 Construction
Red Wing Shoes 65996 159.84 Safety,Security,Health Equipment,Supplies,and Services
Regents of the University of Calif. 65850 21,414.57 MeefinglTraining Registration
Riaz K.Moinuddin 65879 115.00 Meefinglhaining Expense Reimbursement
RMB Engineering&Sales,Inc. 65997 3,978.72 ElectricallElectronic Equipment,Parts&Repairs
Robbie A.Coaxial 658]] 300.00 Meetinglhalning Expense Reimbursement
Robert Half International,Inc. 65851 1,872.00 Computer Applications&Services
Robyn A.Wilcox 65884 164.00 Meefinglhalning Expense Reimbursement
Rockwell Engineering&Equipment Co. 65754 40,914.25 Repair&Maintenance Services and/or Supplies
Romac Supply Co. 65852 19,819.50 Instrument Parts&Supplies
Royale Cleaners 65853 6.10 Miscellaneous Services
RPM Electric Motors 65854 2,653.56 Repair&Maintenance Services and/or Supplies
Ruben L Stewart 66038 350.00 Meeting/Iraining Expanse Reimbursement
Salads Glass Corp.-Remit 65998 222.81 Auto Supplies
San Diegmamnge Fluid System Technologi 65855 118.99 Repair&Maintenance Services and/or Supplies
SC Fuels 65856 B,549.51 Fuel and Lubricants
SCAQMD 65857 8,176.67 Governmental Agency Fees&Charges
EXHIBIT B
nmzlorlr Page 5 of 7 7IM014
Return to Arenas Report
Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
SCAOMD 65887 8,176.67 Governmental Agency Fees&Changes
Scientific Refrigeration 65999 263.50 Repair&Maintenance Services and/or Supplies
SCOTT-MARRIN,INC. 66000 48.00 Repair&Maintenance Services and/or Supplies
Securitas Security Services USA,Inc. 65894 31,032.04 Safety,Security,Health Equipment,Supplies,and Services
SGE,Inc. 66001 1,363.91 Laboratory Services&Supplies
Shamrock Supply Co.,Inc. 66002 661.29 Repair&Maintenance Services and/or Supplies
Shimi Scientific Instruments Inc. 66003 5,257.76 Laboratory Services&Supplies
Shureluck Sales&Engineering 65858 223.99 Repair&Maintenance Services and/or Supplies
Shureluck Sales&Engineering 66004 1,083.30 Repair&Maintenance Services and/or Supplies
So.Cal Gas Company 65755 44,932.16 Utilities
SOCIETY FOR MINING,METALLURGY 66005 2,520.00 Meeting/Raining Registration
Southern California Edison 65756 339,990.28 Utilities
Southern California Edison 65859 1'360.54 Utilities
Southern Counties Lubricants 66006 1,473.97 Fuel and Lubricants
Sparklett-Dallas 66007 1,102.32 Miscellaneous Services
St.Croix Sensory,Inc. 66008 1,232.25 Olfactonni Testing Services
Stantec Consulting Services,Inc. 65860 7,070.00 Professional Services/Surveying
Staples 66009 1,257.14 Office Supplies
Summit Steal 1834 731.04 Repair&Maintenance Services and/or Supplies
Summit Steel 1844 1,351.73 Repair&Maintenance Services and/or Supplies
Sunset Industrial Parts 66010 190.09 Repair&Maintenance Services and/or Supplies
Tadao G.Vitko 66041 1,472.48 MeetingRraining Expense Reimbursement
TEST AMERICA IABORATORIES 65861 11,736.00 Laboratory Services&Supplies
TesVanerica Ontario 1845 1,908.00 Laboratory Services&Supplies
Tetra Each,Inc. 65862 2,046.04 Professional Services/Engineering Design Services5
Thatcher Company Of California 65895 38,857.31 Chemicals,WalerMastesater Treatment
The Irvine Company 65863 341.80 Reconciliation User Fee Refund Program
The Orange County Register 65838 2,399.04 Notices&Ads
The Orange County Register 65983 798.00 Notices&Ads
The Unisource Corporation 66015 613.66 Paper&Office Supplies
Theemco Products,Inc. 66011 W.29 Laboratory Services&Supplies
Thomas Cain Inc. 66012 120.00 Laboratory Services&Supplies-Automated Digestion System
Thomas D.Dodderer 66031 340.00 MeetingRraining Expense Reimbursement
Thompson Industrial Supply,Inc. 1835 2,594.30 Repair&Maintenance Services and/or Supplies
Thompson Industrial Supply,Inc. 1846 1,006.03 Repair&Maintenance Services and/or Supplies
Tom B.Mem illano 66036 185.00 MeetingRaining Expense Reimbursement
Tanya Lack&Safe Service&Sales 66013 1,231.66 Repair&Maintenance Services and/or Supplies
Tovmsend Public Affairs 65864 7,500.00 Professional Services-State Legislative Advocacy
Trans U.S.Inc 66014 4,039.20 Repair&Maintenance Services and/or Supplies
Tremor Incorporated 1847 1,014.54 Repair&Maintenance Services and/or Supplies
Tule RanchlMagan Fames 65757 299,601.76 Biosolids Management
United Parcel Service 65865 71.85 Freight Services
United Parcel Service 66016 82.40 Freight Services
US Peroxide,L.L.C. 65758 58,1)1 Chemicals,Water/Wastewater Treatment
V&A Consulting Engineers 65866 22,535.00 Professional Services
V&A Consulting Engineers 66017 4,944.29 Professional Services
Vain Corporation 1848 2,530.70 Repair&Maintenance Services and/or Supplies
Village Nurseries 65867 52.01 Repair&Maintenance Services and/or Supplies
Vladimir A.Kogan 66035 1,462.13 MeetingRraining Expense Reimbursement
MR Scientific Products 65868 580.34 Laboratory Services&Supplies
MR Scientific Products 66018 103.87 Laboratory Services&Supplies
EXHIBIT B
nN21ab Page 6 of 7IM014
Return to Anemia Rom
Claims Paid From W16114 to 6130/14
Vendor Warrant No. Amount Description
W.M.Lyles Co. 65899 682,061.05 Construction
Wastewater Equipment International,Inc 65869 3,142.10 Repair&Maintenance Services and/or Supplies
Water Environment Federation 65870 202.00 Professional Organizations Meidng(TraininglMambarship
Water Environment Federation 66019 995.00 Professional Organizations Meetingrrmining/Membership
Waters Correlated 66020 71050.00 Laboratory Services&Supplies
Waxie Sanitary Supply 65871 398.89 Jarilor&Household Service&Supplies
WCR Incorporated 65896 25,390.24 Miscellaneous Services
West Coast Safety Supply Co. 66021 1,398.47 Safety,Security,Health Equipment,Supplies,and Services
West Life Supply Company,Inc. 65872 232.79 Electrical/Electronic Equipment,Palls&Repairs
Westrux International 66022 2,126.06 Truck Supplies
Woodruff Spradlin&Small 65897 71,140.62 Professional Sarvices-Legal
Xerox Corporation 1836 10,929.89 Computers,Software/Hardware&Managed Services
Xpedx,An International Paper Company 66023 1,864.52 Miscellaneous Supplies
Xylem Water Solutions 66024 1,431.20 Repair&Maintenance Services and/or Supplies
Total Accounts Payable-Warrants $ 4,405,461.19
Payroll Disbursements
Employee Paychecks 56354 - 636M $ 70,634.66 Biweekly Payroll(6I25114)
Employee Paychecks 56385 1,356.66 Interim Payroll-Retirements-Rag Hours(6/19114)
Employee Paychecks 5086 2,224.T Interim Payroll-Retirements-Accrual Payout(6119114)
Employee Paychecks 56410 2,296.45 Interim Payroll-Retirements-Rag Hours(6/26114)
Direct Deposit Statements 356269 -356840 1,396,632.58 BMeekly Payroll(6125114)
Total Payroll Disbursements $ 1,473,147.32 `Cri number 56387 nm used
'Check numbers Sfihissin de used In Nlus perii
Wire Transfer Payments
OCSD Payroll Taxes&Contributors $ 776,733.36 Biweekly Payroll(6/25/14)
Union Bank of California 16,210.63 BMeekly Payroll-Retirements(&2&14)
0 2,173,351.10 Construction P1-101/PP17(6119114)
0 376,328.25 Construction Pl-112/P2-101IPP5(6/19/14)
Total Wire Transfer Payments $ 3.342.623.34
Total Claims Paid 6/16/1 4-6130114 $ 9,221,231.85
EXHIBIT B
bNP10/Ir Page 7 of 7 7IM014
0710712014 RL
ORANGE COUNTY SANITATION DISTRICT ITEM NO. 2
CURRENT COMMITTEES
STEERING COMMITTEE (7) GWRS JOINT COOPERATIVE
STEERING COMMITTEE
Tom Beamish, Board Chair
John Nielsen, Board Vice-Chair Tom Beamish
Brad Reese, Chair, Administration Committee Jim Ferryman
Brett Murdock, Chair, Operations Committee John Nielsen
Keith Curry, Member-At-Large
John Withers, Member-At-Large (At)—Brett Murdock
--VACANCY-- (A2)—Greg Sebourn
ADMINISTRATION COMMITTEE (14) (A3) —VACANCY--
Brad Reese, Chair(Villa Park) AUDIT AD HOC COMMITTEE (4)
John Withers, Vice Chair(IRWD)
David Benavides (Santa Ana) Tom Beamish, Board Chair (La Habra)
Joe Carchio (Huntington Beach)
Steven Choi (Irvine) Richard Murphy (Los Alamitos)
Tyler Diep (MCSD) John Nielsen (Tustin)
Jim Ferryman (CMSD) John Withers (IRWD)
Gene Hernandez (Yorba Linda)
Peter Kim (La Palma) LEGISLATIVE AND PUBLIC AFFAIRS
Prakash Narain (Cypress) SPECIAL COMMITTEE (7) 8/2812013
Janet Nguyen (Board of Supervisors)
Teresa Smith (Orange)
Tom Beamish, Board Chair(La Habra) Tom Beamish (La Habra)
John Nielsen, Board Vice-Chair(Tustin) David en MCS (Santa Ana)
Tyler Diep (MCSD)
OPERATIONS COMMITTEE (13) John Nielsen (Tustin)
Brad Reese (Villa Park)
Brett Murdock, Chair(Brea) Greg Sebourn (Fullerton)
Scott Nelson, Vice-Chair(Placentia) John Withers (IRWD)
Keith Curry (Newport Beach)
Steve Jones (Garden Grove) SAWPA JOINT POLICY COMMITTEE
Lucille Kring (Anaheim)
Michael Levitt (Seal Beach)
Richard Murphy (Los Alamitos) Tom Beamish Habra)
Steve Nagel (Fountain Valley) John Nielsen (Tustin)
Greg Sebourn, (Fullerton)
David Shawver (Stanton) (A)John Withers (IRWD)
Fred Smith (Buena Park)
Tom Beamish, Board Chair(La Habra)
John Nielsen, Board Vice-Chair(Tustin)
Board Delegate to Santa Ana River Flood Protection Agency(SARFPA) -Jim Ferryman
Board Delegate to Orange County Council of Governments (OCCOG)—Jim Ferryman
Board Delegate to National Water Research Institute (NWRI)—Jim Ferryman
ITEM NO. 3
Orange County Sanitation District
MINUTES
BOARD MEETING
June 25, 2014
1 SANITgTj�y
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Fcl�N HE
Administration Building
10844 Ellis Avenue
Fountain Valley, California 92708-7018
0 612 512 01 4 Minutes of Board Meeting Page 1 of 17
ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District was
held on June 25 2014, at 6:32 p.m., in the Administration Building. Director John
Nielsen 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 Troy Edgar, Chair Richard Murphy
X Tom Beamish, Vice Chair Rose Espinoza
X David Benavides Sal Tinajero
X Joe Carchio Dave Sullivan
X Steven Choi Christina Shea
X Keith Curry Rush Hill
X Tyler Diep AI Krippner
X James M. Ferryman Bob Ooten
X Gene Hernandez John Anderson
X Steven Jones Kris Beard
X Peter Kim Gerard Goedhart
X Lucille Kring Jordan Brandman
X Michael Levitt Gordon Shanks
X Brett Murdock Roy Moore
X Steve Nagel Michael Vo
X Prakash Narain Doug Bailey
Scott Nelson X Constance Underhill
X Janet Nguyen Shawn Nelson
X John Nielsen Allan Bernstein
X Brad Reese Greg Mills
X Gregory Sebourn Jan Flory
X David Shawver Carol Warren
X Fred Smith Steve Berry
X Teresa Smith Mark Murphy
X John Withers Douglas Reinhart
STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant
General Manager; Nick Arhontes, Director of Facilities Support Services; Jeff Reed,
Director of Human Resources; Rob Thompson, Director of Engineering; Ed Torres,
Director of Operations & Maintenance; Lorenzo Tyner, Director of Finance &
Administrative Services; Kelly Lore, Acting Clerk of the Board; Jennifer Cabral; Gregg
Deterding; Norbert Gaia; Al Garcia; Kelly Newell; and Paula Zeller.
06/25/2014 Minutes of Board Meeting Page 2 of 17
OTHERS PRESENT: Brad Hogin, General Counsel; Art Perry, Costa Mesa Sanitary
District; Steve Dicterow, Congressman Rohrabacher's Office; Kelly Daken, Archer
Western; and Bob Kiley, Yorba Linda Water District.
Director Benevides arrived at 6:35 p.m.
PUBLIC COMMENTS:
None.
SPECIAL PRESENTATIONS:
General Manager, Jim Herberg accepted the "Large Plant Safety Award" from Simon
Watson, President of the California Water Environment Association.
Director Kring and Director Nagel arrived at 6:38 p.m.
Jeff Reed, Director of Engineering presented a 25-year service award to Denise
Martinez, Senior Human Resources Analyst.
Director Theresa Smith arrived at 6:43 p.m.
Chair Edgar acknowledged commendations for OCSD's 60" anniversary received from
Senator Dianne Feinstein and Congressman Dana Rohrabacher.
General Manager, Jim Herberg thanked and commended Chair Troy Edgar for his
service on the Board, and as Board Chair. He stated that his level of enthusiasm,
energy and dedication are enormous; that his ability to remember everything and
juggling his life is truly amazing. He further stated it was an honor to work with Troy,
and he is thankful for his help and support personally and professional.
Vice Chair Beamish introduced the presenters of commendations presented to Chair
Edgar in recognition of his accomplishments as OCSD Board Chair:
• Assemblvwoman Sharon Quirk-Silva's office - Presentation of Resolution of
Service to District (Michael Quibuyen, presenter)
• Congresswoman Loretta Sanchez' office - Presentation of a framed floor speech
and video footage of the Congresswoman honoring Troy Edgar on the House
Floor (Carlos Urquiza, presenter)
• OC Supervisor John Mooriach - Presentation of Proclamation to Troy Edgar for
his dedicated service.
• Congressman Dana Rohrabacher's office - Presentation of Congressional
Certificate (Steve Dicterow, presenter)
06/25/2014 Minutes of Board Meeting Page 3 of 17
• Senator Alan Lowenthall's office - Presentation of Congressional Certificate
(Christopher Townsend of Townsend Public Affairs, presenter)
Vice Chair Beamish presented Chair Edgar with a plaque & gavel from OCSD for his
extraordinary service and thanked him again for his leadership.
Chair Edgar stated that he was extremely honored, and thanked the Board for electing
him Chair; thanked staff for teaching him about wastewater; recalled various
accomplishments, including the Legislative Public Affairs Committee and finally
encouraged the entire Board to contribute and get more involved.
REPORTS:
General Manager Herberg reported on the following information: June status report;
Annual Work Plan; adoption of the budget and Heal the Bay beach report card grades
Chair Edgar reported on the successful OCSD Honor Walk event today and thanked
staff for their hard work.
RATIFICATION OF PAYMENT OF CLAIMS:
1. MOVED, SECONDED, AND DULY CARRIED: Ratify payment of claims of the
District, by roll call vote, as follows:
Claims Paid for the Period Ending: 05/15/14 05/31/14
Totals $ 7,499,200.11 $ 8,246,245.83
AYES: Beamish; Carchio; Choi; Edgar; Ferryman; Hernandez;
Jones; Kim; Levitt; Murdock; Nagel; Narain; Reese;
F. Smith; Underhill (Alternate) and Withers.
NOES: None
ABSTENTIONS: Benavides; Curry; Diep; Kring; Nguyen; Nielsen;
Sebourn; Shawver; and T. Smith.
ABSENT: None
CONSENT CALENDAR:
2. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the Regular
Board Meeting held on May 28, 2014.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kring; Levitt; Murdock;
Nagel; Narain; Nguyen; Nielsen; Reese; Sebourn; F.
Smith; T. Smith; Underhill (Alternate) and Withers.
06/25/2014 Minutes of Board Meeting Page 4 of 17
NOES: None
ABSTENTIONS: Kim; and Shawver
ABSENT: None
3. MOVED, SECONDED, AND DULY CARRIED:
A. Receive and file Addendum No. 3 to the Collection System Improvement
Plan Program Environmental Impact Report for additional project analysis
supporting the Santa Ana Trunk Sewer Rehabilitation, Project No. 1-17;
and
B. Receive and file bid tabulation and recommendation; and
C. Award a construction contract to Charles King Company, Inc., Project No.
1-17, for a total amount not to exceed $2,619,188; and
D. Approve a contingency of$235,727 (9%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
4. MOVED, SECONDED, AND DULY CARRIED: Approve Reimbursement
Agreement with the City of Tustin for the construction of a portion of the Orange
County Sanitation District's Gisler-Redhill System Improvements, Reach B,
Contract No. 7-37, for an amount not to exceed $300,000 to be paid to the City of
Tustin, in a form approved by Special Counsel.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
06/25/2014 Minutes of Board Meeting Page 5 of 17
NOES: None
ABSTENTIONS: None
ABSENT: None
5. MOVED, SECONDED, AND DULY CARRIED:
A. Receive and file bid tabulation and recommendation; and
B. Award a construction contract to Archer Western Construction, Inc. for
Plant No. 1 Primary Treatment, Project No. P1-124, for a total amount not
to exceed $5,513,891; and
C. Approve a contingency of$551,389 (10%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
NON-CONSENT:
6. MOVED, SECONDED, AND DULY CARRIED:
A. Motion to read Ordinance No. OCSD-46, by title only and waive reading of
said entire Ordinance.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nielsen; Reese; Sebourn;
Shawver; F. Smith; T. Smith; Underhill (Alternate) and
Withers.
NOES: Nguyen
ABSTENTIONS: None
ABSENT: None
06/ 512014 Minutes of Board Meeting Page 6 of 17
Kelly Lore, Acting Clerk of the Board read aloud the title only of Ordinance
OCSD-46.
MOVED, SECONDED, AND DULY CARRIED:
B. Adopt Ordinance No. OCSD46, entitled "An Ordinance of the Board of
Directors of the Orange County Sanitation District amending Section 2.03
of Article II of Ordinance No. OCSD41 concerning rebates and refunds of
Sanitary Sewer Service Charges."; and
C. Direct the Clerk of the Board to publish a summary of the Ordinance as
required by law.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar,
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nielsen; Reese; Sebourn;
Shawver; F. Smith; T. Smith; Underhill (Alternate) and
Withers.
NOES: Nguyen
ABSTENTIONS: None
ABSENT: None
OPERATIONS COMMITTEE:
7. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the
Committee Meeting held on June 4, 2014.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
06/25/2014 Minutes of Board Meeting Page 7 of 17
8. MOVED, SECONDED, AND DULY CARRIED:
A. Approve a Professional Consultant Services Agreement with Brown &
Caldwell to provide construction support services for Santa Ana Trunk
Sewer Rehabilitation, Project No. 1-17, for an amount not to exceed
$188,724; and
B. Approve a contingency of$18,872 (10%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
9. MOVED, SECONDED, AND DULY CARRIED:
A. Approve a Professional Consultant Services Agreement with Corrpro
Companies, Inc. for Corrosion Management Staffing Support Services,
Specification CS-2014-60013D, for the period of July 1, 2014 through June
30, 2015, for a total annual amount not to exceed $541,096, with four one-
year renewable options; and
B. Approve a contingency of$54,110 (10%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
08/25/2014 Minutes of Board Meeting Page 8 of 17
10. MOVED, SECONDED, AND DULY CARRIED:
A. Award a contract to the lowest responsive and responsible bidder,
Bowcon Company Inc., for Repairs of Dewatering Building at P2, Project
No. FR12-001, for a total amount not to exceed $175,280; and
B. Approve a contingency of$35,000 (20%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
11. MOVED, SECONDED, AND DULY CARRIED:
A. Approve a Professional Consultant Services Agreement with Carollo
Engineers, Inc. to provide construction support services for Plant No. 1
Primary Treatment, Project No. P1-124, for an amount not to exceed
$451,910; and
B. Approve a contingency of$45,190 (10%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Shawver; F. Smith; T. Smith; Underhill (Alternate) and
Withers.
NOES: None
ABSTENTIONS: Sebourn
ABSENT: None
06/25/2014 Minutes of Board Meeting Page 9 of 17
12. MOVED, SECONDED, AND DULY CARRIED:
A. Approve a Professional Design Services Agreement with HDR to provide
engineering design services for Administrative Facilities Implementation
Planning, Project No. SP-194, for an amount not to exceed $729,597; and
B. Approve a contingency of$36,480 (5%).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
13. MOVED, SECONDED, AND DULY CARRIED: Approve out-of-country travel for
Orange County Sanitation District (Sanitation District) employees (Construction
Inspector or Engineer) to witness factory testing of centrifuges in connection with
Sludge Dewatering and Odor Control at Plant No. 1, Project P1-101, and all
travel, lodging, and per diem costs in accordance with the Sanitation District's
travel policy.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
06/25/2014 Minutes of Board Meeting Page 10 of 17
ADMINISTRATION COMMITTEE:
14. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the
Committee Meeting held on June 11, 2014.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
15. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
14-06, Establishing Use Charges for the FY 2014-15 Pursuant to the Wastewater
Treatment and Disposal Agreement with the Santa Ana Watershed Project
Authority.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nielsen; Reese; Sebourn;
Shawver; F. Smith; T. Smith; Underhill (Alternate) and
Withers.
NOES: Nguyen
ABSTENTIONS: None
ABSENT: None
16. MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. OCSD
14-07, Establishing the Annual Appropriations Limit for Fiscal Year 2014-15, for
the District in accordance with the Provisions of Division 9 of Title 1 of the
California Government Code.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar,
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
06/25/2014 Minutes of Board Meeting Page 11 of 17
ABSTENTIONS: None
ABSENT: None
17. MOVED, SECONDED, AND DULY CARRIED:
A. Adopt Resolution No. OCSD 14-08, 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 2014A,
authorizing the execution and delivery of such Revenue Obligations
evidencing principal in an aggregate amount of not to exceed
$225,000,000, 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 necessary documents and related actions;
and
B. That the Orange County Sanitation District Financing Corporation approve
the documents supporting and authorizing the Revenue Obligations in an
aggregate amount not to exceed $225,000,000.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
18. MOVED, SECONDED, AND DULY CARRIED:
A. Reject the apparent low bid submitted by Office Supply Inc. as deemed
non-responsive in accordance with specification requirements for
Purchase of Cisco Parts, Specification No. E-2014-616BD; and
B. Approve a Purchase Order Agreement with Presidio Networked Solutions,
the lowest responsive and responsible bidder, for Purchase of Cisco
Parts, Specification No. E-2014-616BD, for an amount not to exceed
$435,587: and
C. Approve a contingency of$21,780 (5%).
06/25/2014 Minutes of Board Meeting Page 12 of 17
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
19. MOVED, SECONDED, AND DULY CARRIED: Approve proposed Operating,
Capital, DebtfCOP Service and Self-Insurance Budgets for FY 2014-15 and
2015-16 as follows:
2014-15 2015-16
Net Operations, Maintenance &Working Capital $152,500,120 $155,004,500
Worker's Compensation Self Insurance 700,000 700,000
General Liability and Property Self-Insurance 1,501,200 1,611,200
Net Capital Improvement Program 186,485,000 206,087,000
Debt/COP Service 86,070,000 86,714,000
Long-Term Debt Reduction 125,000,000 -
Intra-District Joint Equity Purchase/Sale(l) 2,152,000 1,115,000
TOTAL E554.408.320 $451.231.700
('Kash to Revenue Area 14 (RA14) in exchange for capital assets
to Consolidated Revenue Area 15 (RA15).
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
Director Nguyen stated that while she supports the budget, for the record, she does not
support the increase to sewer service fee assumptions that are made in the budget of
2014-15 and 2015-16.
Chair Edgar recessed to the OCSD Financing Corporation at 7:08 p.m.
06/25/2014 Minutes of Board Meeting Page 13 of 17
ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION
CALL TO ORDER:
Chair Edgar called the Board of Directors, Orange County Sanitation District Financing
Corporation meeting to order at 7:08 p.m.
ROLL CALL:
The Acting Clerk of the Board declared a quorum present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Troy Edgar, Chair Richard Murphy
X Tom Beamish, Vice Chair Rose Espinoza
X David Benavides Sal Tinajero
X Joe Carchio Dave Sullivan
X Steven Choi Christina Shea
X Keith Curry Rush Hill
X Tyler Diep Al Krippner
X James M. Ferryman Bob Ooten
X Gene Hernandez John Anderson
X Steven Jones Kris Beard
X Peter Kim Gerard Goedhart
X Lucille Kring Jordan Brandman
X Michael Levitt Gordon Shanks
X Brett Murdock Roy Moore
X Steve Nagel Michael Vo
X Prakash Narain Doug Bailey
Scott Nelson X Constance Underhill
X Janet Nguyen Shawn Nelson
X John Nielsen Allan Bernstein
X Brad Reese Greg Mills
X Gregory Sebourn Jan Flory
X David Shawver Carol Warren
X Fred Smith Steve Berry
X Teresa Smith Mark Murphy
X John Withers Douglas Reinhart
Kelly A. Lore, Acting Clerk of the Board, announced that the members of the Orange
County Sanitation District Board of Directors are each being compensated $212.50 for
the Board Meeting; there is no additional compensation for the Financing Corporation
Meeting.
06/25/2014 Minutes of Board Meeting Page 14 of 17
APPROVAL OF MINUTES:
MOVED, SECONDED, AND DULY CARRIED: That the minutes for the meeting held on
September 25, 2013, with no corrections or amendments; are deemed and ordered
approved by the Chair.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar,
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; and Withers.
NOES: None
ABSTENTIONS: Underhill (Alternate)
ABSENT: None
ACTION ITEM:
MOVED, SECONDED, AND DULY CARRIED: Adopt Resolution No. FC-21, entitled "A
Resolution of the Board of Directors of the Orange County Sanitation District Financing
Corporation Authorizing the Execution and Delivery by the Corporation of an Installment
Purchase Agreement and a Trust Agreement in Connection with the Execution and
Delivery of Orange County Sanitation District Wastewater Refunding Revenue
Obligations, Series 2014A, Authorizing the Execution and Delivery of Such Revenue
Obligations Evidencing Principal in an Aggregate Amount of not to Exceed
$225,000,000 and Authorizing the Execution of Necessary Documents and Related
Actions." (See Agenda Report for Item No. 17)
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
ADJOURNMENT:
The Chair declared the meeting of the Board of Directors, Orange County Sanitation
District Financing Corporation adjourned at 7:12 p.m.
0625/2014 Minutes of Board Meeting Page 15 of 17
The Orange County Sanitation District Board of Directors meeting was reconvened at
7:12 p.m.
STEERING COMMITTEE:
20. MOVED, SECONDED, AND DULY CARRIED: Approve minutes for the Steering
Committee Meeting held on May 25, 2014.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
LEGISLATIVE AND PUBLIC AFFAIRS SPECIAL COMMITTEE:
18. MOVED, SECONDED, AND DULY CARRIED: Receive and file the minutes of
the June 9, 2014 meeting of the Legislative and Public Affairs Special
Committee.
AYES: Beamish; Benavides; Carchio; Choi; Curry; Diep; Edgar;
Ferryman; Hernandez; Jones; Kim; Kring; Levitt;
Murdock; Nagel; Narain; Nguyen; Nielsen; Reese;
Sebourn; Shawver; F. Smith; T. Smith; Underhill
(Alternate) and Withers.
NOES: None
ABSTENTIONS: None
ABSENT: None
Director Nguyen and Director Curry left the meeting at 7:15 p.m.
AB 1234 REPORTS:
Director Ferryman reported on his recent meetings as part of the following Boards:
SARFPA; OCCOG; and NWRI.
06/25/2014 Minutes of Board Meeting Page 16 of 17
CLOSED SESSION
Chair Edgar announced that the Closed Session item would not be heard tonight.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
The Chair adjourned the meeting at 7:28 p.m., until the Special Board Meeting on
June 27, 2014 at 11:00 a.m. to be held at Jurupa Community Services District.
Kelly A. Lore
Acting Clerk of the Board
06/25/2014 Minutes of Board Meeting Page 17 of 17
BOARD OF DIRECTORS Neebng Dare TOBA.Of Dir.
— o7/z3/ia
AGENDA REPORT em Number Item Numbe
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Jeff Reed, Director of Human Resources
SUBJECT: 2014-15 BENEFITS PROGRAM RENEWAL
GENERAL MANAGER'S RECOMMENDATION
Approve the FY 2014-15 "not-to-exceed" quotes for the following insurances:
A. Medical Insurance— Not to Exceed $9,623,361
B. Dental Insurance— Not to Exceed $884,195
C. Vision Insurance— Not to Exceed $92,867
D. Basic Life Insurance — Not to Exceed $65,331
E. Long-Term Disability Insurance — Not to Exceed $285,479
F. Short-Term Disability Insurance — Not to Exceed $141,360
G. Employee Assistance Program — Not to Exceed $11,026
SUMMARY
The Orange County Sanitation District (OCSD) provides healthcare and welfare
insurance benefits as a provision contained in its Memoranda of Understanding (MOUs)
and personnel policies.
The Human Resources Department and the Orange County Sanitation District's
(OCSD) operational insurance broker (Alliant) began the renewal process in January
and provided the Administration Committee with an informational item regarding the FY
2014-15 program renewal costs in May.
The total cost is $11,103,619, which is budgeted and is proportionally shared as follows:
• OCSD cost: $9,002,108
• Employee cost: $2,101,511
The total cost of insurance coverage will increase by 4.5% or $482,067 for the next
fiscal year (FY 2014-15). This increase is largely due to mandatory fees placed on
employers' healthcare plans by the Affordable Care Act.
PRIOR COMMITTEE/BOARD ACTIONS
May 2014 — The Administration Committee received an informational benefits program
renewal cost update for FY 2014-15.
June 2014—The Board unanimously adopted the proposed budget for FY 2014-15.
Page 1 of 3
ADDITIONAL INFORMATION
Medical Insurance
OCSD's medical benefits are designed to help maintain wellness and protect
employees and their families from major financial hardship in the event of illness or
injury. OCSD offers a choice of medical plans through Anthem Blue Cross and Kaiser
Permanente.
HMO (Health Maintenance Organization) plans offer comprehensive coverage.
Employees have a choice between the Anthem Blue Cross HMO or the Kaiser HMO
plan. PPO (Preferred Provider Organization) plan offers a network of doctors and
healthcare facilities that provide services to plan members at special discounted rates.
The PPO plan is with Anthem Blue Cross.
Dental Insurance
OCSD provides the Delta Dental plan to all benefit eligible employees.
Vision Insurance
OCSD provides vision insurance to all benefit eligible employees through Anthem Blue
View Vision.
Basic Life Insurance
Life insurance provides protection for an employee's beneficiary in the event of death.
All benefit eligible full-time and part-time employees automatically receive Basic Life
and Accidental Death & Dismemberment (AD&D) insurance coverage through
Prudential Insurance Company of America. The benefit amount is $50,000 for
employees.
Long-Term Disability Insurance
Long-Term Disability (LTD) insurance plan protects employees when an illness or injury
makes it impossible for them to work for an extended period of time. Under the plan,
employees who are disabled for more than 90 days are eligible to receive a benefit of
67% of their basic monthly pay. Coverage is offered through Prudential.
Short-Term Disability Insurance
Short-Term Disability (STD) insurance plan protects employees when non-work related
illness or injury makes it impossible for them to work for a short period of time. Under
the plan, income may be continued for 90 days. OCSD pays the entire cost of coverage
for regular full-time and part-time employees. Coverage is offered through Prudential.
Employee Assistance Program
Employee Assistance Program (EAP) plan protects employees and family members
when they need help with personal problems such as marital and relationship problems;
stress, anxiety and depression; grief and loss; or substance abuse. Coverage is offered
through ComPsych.
CEQA
N/A
Page 2 d 3
BUDGET/PURCHASING ORDINANCE COMPLIANCE
The funds for the renewal of these insurances are derived from the OCSD Operating
Budget and have been included in the FY 2014-15 budget.
Page 3 d 3
BOARD OF DIRECTORS Meeting Date I TOBd.Of Dir.
— m/zB/ra
AGENDA REPORT Number
Item Item
— s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Nick Arhontes, P.E., Director of Facilities Support Services
SUBJECT: APPROVE PURCHASE OF 40OKW MOBILE GENERATOR FROM
MULTIQUIP
GENERAL MANAGER'S RECOMMENDATION
Recommend to the Board of Directors to:
A. Authorize the purchase of a new 400-kilowatt trailer-mounted Tier 4 Final
compliant mobile generator and related accessories from Multiquip, for a total not
to exceed $189,148 in accordance with OCSD's Ordinance No. OCSD-44,
Section 2.03, Exceptions, Item B., Cooperative Purchases; and
B. Approve a contingency of$18,914 (10%).
SUMMARY
This trailer-mounted mobile generator is needed to provide emergency standby power
for outlying pump stations that do not currently have permanently installed standby
generators. The 400 kilowatt generator is sized to provide emergency power for Seal
Beach Pump Station should a utility power outage occur. The trailer-mounted mobile
generator will be used and stored at the Seal Beach Pump Station. It can also be
moved for use at other pump stations as needed for emergency or maintenance related
activities. The diesel engine is certified to comply with the U.S. EPA Tier 4 Final
emission standards.
This purchase is in accordance with the National Joint Powers Alliance (NJPA)
agreement contract with Multiquip that OCSD is approved to use. The Contract Number
060311-MTQ Category Heavy Construction Equipment is in effect through July 19,
2015. The cost includes California state sales tax and freight.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Seeking the lowest price, OCSD is utilizing the National Joint Powers Alliance (NJPA)
agreement. The NJPA is a public agency that serves as a member-focused cooperative
for over 50,000 member agencies nationally. OCSD is a member of the NJPA at no
Page 1 of 2
cost. NJPA offers a multitude of cooperatively contracted products, equipment, and
services opportunities to education and government entities throughout the country.
All NJPA contracts have been competitively solicited nationally, reviewed, evaluated by
committee and recommended to the NJPA Board of Directors for award with the
Minnesota public purchasing rules and regulations applicable to NJPA. Each solicitation
is issued on behalf of NJPA and current and potential NJPA members nationwide. Each
request for proposal (RFP) advises all responders that NJPA desires a vendor whom
can sell and service participating members in all fifty states. All RFP respondents
understand that these contracts will be under consideration for use by government,
education, and non-profit member agencies throughout the United States.
The new generator engine is certified to comply with the U.S. EPA Tier 4 Final emission
standards for newly manufactured engines of this horsepower rating. The unit will be
registered in compliance with the California Air Resources Board (CARB) Off-Road
Compression-Ignition (Diesel) Engine Portable Equipment Registration Program, known
as PERP. It will also comply with all SCAQMD requirements in the OCSD service area.
CEQA
N/A
BUDGET/PURCHASING ORDINANCE
This request complies with authority levels of the Sanitation District's Delegation of
Authority (Ordinance No. OCSD-44, Section 2.03, Exceptions, Item B., Cooperative
Purchases). This item has been budgeted through the Capital Outlay Revolving Fund
(CORF) (Budget Update Fiscal Year 2013-2014 Equipment Budget Details; A-18).
Date of Approval Contract Amount Continaencv
07/23/14 $189,148 $18,914(10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the
complete agenda package and attachments:
National Joint Powers Alliance (NJPA) Awarded Contract Multiquip
NA:CF
Page 2 of 2
National Joint Powers Alliance :: Multiquip Page 1 of 1
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Return to Agenda Report
ANNUAL RENEWAL OF AGREEMENT
Made by and Between
Multiquip(Vendor)
18910 Wilmington Ave.
Carson, CA 90746
and
National Joint Powers Alliance®(NJPA)
202 121h Street NE
Staples, MN 56479
Phone: (218)894-1930
Whereas:
"Vendor"and"NJPA"have entered into an"Acceptance and Award#060311-MTQ"for the
procurement of Heavy Construction Equipment Together with Related Accessories,Supplies,and
Services,and having a maturity date of July 19,2015,and which are subject to annual renewals at
the option of both parties.
Now therefore:
"Vendor"and"NJPA"hereby desire and agree to extend and renew the above defined contract
for the period of July 19,2013 be July 19,2014.
National Joint Po ers Alliance®(NJPA) ,^,,,,,g,�
By:_j 6l^ 11L .. Its: -O " r
Name printed rtyped: Pill �{'GC1L
Date
multiauio
Its: Director of Government Sales
Name printed or typed: Larry Savitz
Date June 25,2013
------------ -------- -----_- -
If you do not deaue to extend contract, please sign below and return this agreement.
Discontinue.: We desire to discontinue the contract.
Signanae: Date:..
BOARD OF DIRECTORS Meeting Data TOBA.of Dir.
m/zs/ia
AGENDA REPORT Item Item
6
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: SALS PS VENT PIPING MODIFICATIONS, PROJECT NO. FE12-09
GENERAL MANAGER'S RECOMMENDATION
Authorize the Purchasing Manager to conduct a Negotiated Procurement for a
construction contract for SALS PS Vent Piping Modifications, Project No. FE12-09, in
accordance with Ordinance No. OCSD-44, Section 5.02.A.1.(d): No bids.
SUMMARY
To increase the life of the pumps, this project will upsize the existing pump discharge
vent lines to improve air relief during pump start-up at the Steve Anderson Lift Station
(SALS). Reliability of the SALS pumps is critical to delivering water to the Orange
County Water District for reclamation.
The Orange County Sanitation District (Sanitation District) advertised for bids on
April 28, 2014. No bids were received on June 17, 2014.
Pursuant to Ordinance No. OCSD-44 Section 5.02.A.1.(d), when the Sanitation District
does not receive any bids for a particular project, the Sanitation District's Board of
Directors may authorize the Purchasing Manager to conduct a Negotiated Procurement
and present his or her recommendations to the Board for approval. A Negotiated
Procurement is defined as a selection process whereby the Purchasing Manager
identifies one or more prospective Contractors of his or her choice, negotiates with one
or more of them, and awards the Contract to one of them based on the best interest of
the Sanitation District.
Based on current on-site work or previous work done at the Sanitation District, staff
recommends contacting the following Contractors for potential negotiation:
Jamison Engineering Contractors, Inc.
J.R. Filanc Construction Company, Inc.
S S Mechanical Corp.
W.M. Lyles Co.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
Page 1 of 2
ADDITIONAL INFORMATION
N/A
CEQA
A Notice of Exemption was filed and recorded with the County of Orange on
March 14, 2014.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Line item: FY2014-15 Section 8, Page 119).
ATTACHMENT
N/A
MP:dm:gc
Page 2 of 2
BOARD OF DIRECTORS Meeting Data TOBA.of Dlr.
m/zs/ra
AGENDA REPORT Item Item Nu
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: PROGRAMMABLE CONTROL PANEL UPGRADES,
PROJECT NO. J-125
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file bid tabulation and recommendation; and
B. Award a construction contract to K&F Electric, Inc. for Programmable Control
Panel Upgrades, Project No. J-125, for a total amount not to exceed $1,067,774;
and
C. Approve a contingency of$106,777 (10%).
SUMMARY
Programmable Control Panel Upgrades, Project No. J-125, upgrades programmable
logic controller (PLC) panels at both plants. The project will install new PLC panels, add
new equipment to existing PLC panels, and add network components. The upgrades
are required so that the PI-Cs will communicate through the new Industrial Control
System (ICS) Network and Supervisory Control and Data Acquisition System (SCADA)
Security Upgrade project being installed by OCSD's Information Technology (IT)
Division.
The Orange County Sanitation District (Sanitation District) advertised for bids on
April 29, 2014. Three sealed bids were received on June 10, 2014. The bids were
evaluated in accordance with the Sanitation District's policies and procedures. K&F
Electric, Inc. was deemed the lowest responsive, responsible bidder.
Staff recommends awarding a construction contract to K&F Electric, Inc. for
Programmable Control Panel Upgrades, Project No. J-125, for a total amount not to
exceed $1,067,774.
Summary information on the bid opening for Programmable Control Panel Upgrades,
Project No. J-125, is as follows:
Project Budget $2,942,000
Construction Contract Budget $1,900,000
Engineer's Estimate $1,400,000
Lowest Responsive, Responsible Bid $1,067,774
High Bid $1,347,855
Page 1 of 2
Bidder Amount of Bid
K&F Electric, Inc. $1,067,774
Morrow-Meadows Corp. $1,229,000
Neal Electric Corp. $1,347,855
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
N/A
CEQA
A Notice of Exemption was filed and recorded with the County of Orange on
January 31, 2014.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Line item: FY2014-15, Section 7, Page 99).
Project contingency funds will not be used for this construction contract.
Date of ADDroval Contract Amount Continaencv
07/23/14 $1,067,774 $106,777 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
• Construction Contract
WS:dm:gc
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PART A
CONTRACT AGREEMENT
C-CA-021414
TABLE OF CONTENTS
CONTRACT AGREEMENT
SECTION - 1 GENERAL CONDITIONS..................................................................1
SECTION -2 MATERIALS AND LABOR.................................................................4
SECTION -3 PROJECT..........................................................................................4
SECTION -4 PLANS AND SPECIFICATONS ........................................................5
SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5
SECTION -6 TIME IS OF THE ESSENCE .............................................................5
SECTION -7 EXCUSABLE DELAYS......................................................................6
SECTION -8 EXTRA WORK...................................................................................6
SECTION -9 CHANGES IN PROJECT...................................................................7
SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7
SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7
SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF
FUNDS ..............................................................................................9
SECTION - 13 COMPLETION...................................................................................9
SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10
SECTION - 15 SURETY BONDS ............................................................................12
SECTION - 16 INSURANCE....................................................................................13
SECTION - 17 RISK AND INDEMNIFICATION.......................................................21
SECTION - 18 TERMINATION................................................................................21
SECTION - 19 WARRANTY....................................................................................21
SECTION -20 ASSIGNMENT.................................................................................22
SECTION -21 RESOLUTION OF DISPUTES ........................................................22
SECTION -22 SAFETY& HEALTH........................................................................22
SECTION -23 NOTICES.........................................................................................23
C-CA-021414
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CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
PROJECT NO. J-125
PROGRAMMABLE CONTROL PANEL UPGRADES
THIS AGREEMENT is made and entered into, to be effective, this July 23, 2014, by and
between K&F Electric, Inc., hereinafter referred to as "CONTRACTOR"and the Orange County
Sanitation District, hereinafter referred to as "OCSD".
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged,
OCSD and CONTRACTOR agree as follows:
SECTION-1 GENERAL CONDITIONS
CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the
Contract Documents as hereinafter defined, the location of the job site, and the conditions under
which the Work is to be performed have been thoroughly reviewed, and enters into this Contract
based upon CONTRACTOR's investigation of all such matters and is in no way relying upon
any opinions or representations of OCSD. It is agreed that this Contract represents the entire
agreement. It is further agreed that the Contract Documents are each incorporated into this
Contract by reference, with the same force and effect as if the same were set forth at length
herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any
and all of said Contract Documents insofar as they relate in any part or in any way, directly or
indirectly, to the Work covered by this Contract.
A. Contract Documents Order of Precedence
"Contract Documents" refers to those documents identified in the definition of"Contract
Documents" in the General Conditions—Definitions.
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1. In the event of a conflict between one Contract Document and any of the other
Contract Documents, the provisions in the document highest in precedence shall be
controlling. The order of precedence of the Contract Documents is as follows:
a. Supplemental Agreements—the last in time being the first in precedence
b. Addenda issued prior to opening of Bids—the last in time being the first in
precedence
c. Contract Agreement
d. Permits and other regulatory requirements
e. Special Provisions
f. General Conditions (GC)
g. Notice Inviting Bids and Instruction to Bidders
h. Geotechnical Baseline Report (GBR), if attached as a Contract Document
i. Plans and Specifications—in these documents the order of precedence shall be:
i. Specifications (Divisions 01-17)
ii. Plans
iii. General Requirements (GR)
iv. Standard Drawings and Typical Details
j. CONTRACTOR'S Bid
2. In the event of a conflict between terms within an individual Contract Document, the
conflict shall be resolved by applying the following principles as appears applicable:
a. Figured dimensions on the Contract Documents shall govern. Dimensions not
specified shall be as directed by the ENGINEER. Details not shown or
specified shall be the same as similar parts that are shown or specified, or as
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directed. Full-size details shall take precedence over scale Drawings as to
shape and details of construction. Specifications shall govern as to material
and workmanship.
b. The Contract Documents calling for the higher quality material or workmanship
shall prevail. Materials or Work described in words, which so applied, have a
well known technical or trade meaning shall be deemed to refer to such
recognized standards. In the event of any discrepancy between any Drawings
and the figures thereon, the figures shall be taken as correct.
C. Scale Drawings, full-size details, and Specifications are intended to be fully
complementary and to agree. Should any discrepancy between Contract
Documents come to the CONTRACTOR's attention, or should an error occur in
the efforts of others, which affect the Work, the CONTRACTOR shall notify the
ENGINEER, in writing, at once. In the event any doubts or questions arise with
respect to the true meaning of the Contract Documents, reference shall be
made to the ENGINEER whose written decision shall be final. If the
CONTRACTOR proceeds with the Work affected without written instructions
from the ENGINEER, the CONTRACTOR shall be fully responsible for any
resultant damage or defect.
d. Anything mentioned in the Specifications and not indicated in the Plans, or
indicated in the Plans and not mentioned in the Specifications, shall be of like
effect as if indicated and mentioned in both. In case of discrepancy in the
Plans or Specifications, the matter shall be immediately submitted to OCSD's
ENGINEER, without whose decision CONTRACTOR shall not adjust said
discrepancy save only at CONTRACTOR's own risk and expense. The
decision of the ENGINEER shall be final.
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In all matters relating to the acceptability of material, machinery or plant equipment;
classifications of material or Work; the proper execution, progress or sequence of the
Work; and quantities interpretation of the Contract Documents, the decision of the
ENGINEER shall be final and binding, and shall be a condition precedent to any payment
under the Contract, unless otherwise ordered by the Board of Directors.
B. Definitions
Capitalized terms used in this Contract are defined in the General Conditions, Definitions.
Additional terms may be defined in the Special Provisions.
SECTION—2 MATERIALS AND LABOR
CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at
CONTRACTOR'S own expense, all labor and materials necessary, except such as are
mentioned in the Specifications to be furnished by OCSD, to construct and complete the
Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or
materials when due, OCSD may settle such claims by making demand upon the Surety to this
Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may
settle them directly and deduct the amount of payments from the Contract Price and any
amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any
laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to
deduct all of its costs and expenses incurred relating thereto, including but not limited to
administrative and legal fees.
SECTION-3 PROJECT
The Project is described as:
PROJECT NO. J-125
PROGRAMMABLE CONTROL PANEL UPGRADES
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SECTION -4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
PROJECT NO. J-125
PROGRAMMABLE CONTROL PANEL UPGRADES
Said Plans and Specifications and any revision, amendments and addenda thereto are attached
hereto and incorporated herein as part of this Contract and referred to by reference.
SECTION— 5 TIME OF COMMENCEMENT AND COMPLETION
CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth
in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently
prosecute the Work to completion within 550 calendar days from the date of the "Notice to
Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in
Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for
completion includes 0 calendar days determined by OCSD likely to be inclement weather when
CONTRACTOR will be unable to work.
SECTION—6 TIME IS OF THE ESSENCE
Time is of the essence of this Contract. As required by the Contract Documents,
CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples,
and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in
conformance with an approved construction progress schedule. CONTRACTOR shall
coordinate the Work covered by this Contract with that of all other contractors, subcontractors
and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and
accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with
Section 5 herein. OCSD shall have the right to assert complete control of the premises on
which the Work is to be performed and shall have the right to decide the time or order in which
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the various portions of the Work shall be installed or the priority of the work of subcontractors,
and, in general, all matters representing the timely and orderly conduct of the Work of
CONTRACTOR on the premises.
SECTION—7 EXCUSABLE DELAYS
CONTRACTOR shall only be excused for any delay in the prosecution or completion of the
Project as specifically provided in General Conditions, "Extensions for Delay", and the General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
Extensions of time and extra compensation arising from such excusable delays will be
determined in accordance with the General Conditions, "Extension of Time for Delay" and
"Contract Price Adjustments and Payments", and extensions of time and extra compensation as
a result of incurring undisclosed utilities will be determined in accordance with General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
OCSD's decision will be conclusive on all parties to this Contract.
SECTION—8 EXTRA WORK
The Contract Price as set forth in Section 11, includes compensation for all Work performed by
CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated
representative of OCSD specifying the exact nature of the Extra Work and the amount of extra
compensation to be paid all as more particularly set forth in Section 9 hereof and the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated
Changes", and "Contract Price Adjustments and Payments".
In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD
shall extend the time fixed in Section 5 for completion of the Project by the number of days, if
any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by
OCSD's ENGINEER. The decision of the ENGINEER shall be final.
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SECTION-9 CHANGES IN PROJECT
OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the
Work within the general scope of the Contract Document, including but not limited to changes:
1. In the Specifications (including Drawings and designs);
2. In the time, method or manner of performance of the Work;
3. In OCSD-furnished facilities, equipment, materials, services or site; or
4. Directing acceleration in the performance of the Work.
No change of period of performance or Contract Price, or any other change in the Contract
Documents, shall be binding until the Contract is modified by a fully executed Change Order.
All Change Orders shall be issued in accordance with the requirements set forth in the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER
Initiated Changes".
SECTION-10 LIQUIDATED DAMAGES FOR DELAY
Liquidated Damages shall be payable in the amounts and upon the occurrence of such events
or failure to meet such requirements or deadlines as provided in the Special Provisions,
"Liquidated Damages and Incentives."
SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT
A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the
faithful performance of this Contract, subject to any additions or deductions as provided in
approved Change Orders, the sum of One Million Sixty-Seven Thousand Seven Hundred
Seventy-Four Dollars ($1,067,774)as itemized on the Attached Exhibit"A".
Upon satisfaction of the conditions precedent to payment set forth in the General
Requirements, Additional General Requirements and General Conditions (including but
not limited to Sections entitled "Mobilization Payment Requirements"and "Payment
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Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the
CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the
commencement of the job a schedule which shows:
1. A minimum of one payment to be made to the CONTRACTOR for each successive
four(4)week period as the Work progresses, and
2. The due dates for the CONTRACTOR to submit requests for payment to meet the
payment schedule.
After the initial Net Progress Payment, and provided the CONTRACTOR submits the
request for payment prior to the end of the day required to meet the payment schedule,
the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly
payment date set forth in the schedule.
Payments shall be made on demands drawn in the manner required by law, accompanied
by a certificate signed by the ENGINEER, stating that the Work for which payment is
demanded has been performed in accordance with the terms of the Contract Documents,
and that the amount stated in the certificate is due under the terms of the Contract. Payment
applications shall also be accompanied with all documentation, records, and releases as
required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment
for Work—General". The Total amount of Progress Payments shall not exceed the actual
value of the Work completed as certified by OCSD's ENGINEER. The processing of
payments shall not be considered as an acceptance of any part of the Work.
B. As used in this Section, the following defined terms shall have the following meanings:
1. "Net Progress Payment" means a sum equal to the Progress Payment less the
Retention Amount and other qualified deductions (Liquidated Damages, stop
payment notices, etc.).
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2. "Progress Payment' means a sum equal to:
a. the value of the actual Work completed since the commencement of the Work
as determined by OCSD;
b. plus the value of material suitably stored at the worksite, treatment plant or
approved storage yards subject to or under the control of OCSD since the
commencement of the Work as determined by OCSD;
C. less all previous Net Progress Payments;
d. less all amounts of previously qualified deductions;
e. less all amounts previously retained as Retention Amounts.
3. "Retention Amount'for each Progress Payment means the percentage of each
Progress Payment to be retained by OCSD to assure satisfactory completion of the
Contract. The amount to be retained from each Progress Payment shall be determined
as provided in the General Conditions—"Retained Funds; Substitution of Securities."
SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS
Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole
expense, substitute securities as provided in General Conditions—"Retained Funds;
Substitution of Securities."
SECTION-13 COMPLETION
Final Completion and Final Acceptance shall occur at the time and in the manner specified in the
General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A-
Schedule of Prices.
Upon receipt of all documentation, records, and releases as required by the Contract from the
CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General
Conditions.
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SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION
A. Davis-Bacon Act:
CONTRACTOR will pay and will require all Subcontractors to pay all employees on said
Project a salary or wage at least equal to the prevailing rate of per diem wages as
determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each craft
or type of worker needed to perform the Contract. The provisions of the Davis-Bacon Act
shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and when
twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the
aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied
with are incorporated herein as a part of this Contract and referred to by reference.
B. General Prevailina Rate:
OCSD has been advised by the State of California Director of Industrial Relations of its
determination of the general prevailing rate of per diem wages and the general prevailing
rate for legal holiday and overtime Work in the locality in which the Work is to be
performed for each craft or type of Work needed to execute this Contract, and copies of
the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR
agrees that not less than said prevailing rates shall be paid to workers employed on this
public works Contract as required by Labor Code Section 1774 of the State of California.
Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of
per diem wages at its principal office and at each job site, which shall be made available to
any interested party upon request.
C. Forfeiture for Violation:
CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for
each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or
any Subcontractor under it) less than the prevailing rate of per diem wages as set by the
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Director of Industrial Relations, in accordance with Sections 1770-1780 of the California
Labor Code for the Work provided for in this Contract, all in accordance with Section 1775
of the Labor Code of the State of California.
D. Apprentices:
Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding the
employment of apprentices are applicable to this Contract and the CONTRACTOR shall
comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)or more.
E. Workday:
In the performance of this Contract, not more than eight(8) hours shall constitute a day's
work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B)above.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the
Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by
CONTRACTOR or any Subcontractor for each calendar day during which any worker is
required or permitted to labor more than eight(8) hours in any one calendar day and forty
(40) hours in any one week in violation of said Article. CONTRACTOR shall keep an
accurate record showing the name and actual hours worked each calendar day and each
calendar week by each worker employed by CONTRACTOR in connection with the Project.
F. Record of Waaes: Inspection:
CONTRACTOR agrees to maintain accurate payroll records showing the name, address,
social security number, work classification, straight-time and overtime hours worked each
day and week, and the actual per diem wages paid to each journeyman, apprentice,
worker or other employee employed by it in connection with the Project and agrees to
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require that each of its Subcontractors do the same. All payroll records shall be certified
as accurate by the applicable CONTRACTOR or Subcontractor or its agent having
authority over such matters.
CONTRACTOR further agrees that its payroll records and those of its Subcontractors shall
be available to the employee or employee's representative, the Division of Labor
Standards Enforcement, and the Division of Apprenticeship Standards and shall comply
with all of the provisions of Labor Code Section 1776, in general. Penalties for non-
compliance with the requirements of Section 1776 may be deducted from Project
payments per the requirements of Section 1776.
SECTION— 15 SURETY BONDS
CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds
approved by OCSD's General Counsel—one in the amount of one hundred percent(100%) of the
Contract amount, to guarantee the faithful performance of the Work, and the other in the amount
of one hundred percent (100%)of the Contract amount to guarantee payment of all claims for
labor and materials furnished. As changes to the Contract occur via approved Change Orders,
the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to maintain 100% of
the Contract Price. This Contract shall not become effective until such Bonds are supplied to and
approved by OCSD. Bonds must be issued by a Surety authorized by the State Insurance
Commissioner to do business in California. The Performance Bond shall remain in full force and
effect through the warranty period, as specified in Section 19 below. All Bonds required to be
submitted relating to this Contract must comply with California Code of Civil Procedure Section
995.630. Each Bond shall be executed in the name of the Surety insurer under penalty of perjury,
or the fact of execution of each Bond shall be duly acknowledged before an officer authorized to
take and certify acknowledgments, and either one of the following conditions shall be satisfied:
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A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by-
laws, or other instrument, duly certified by the proper authority and attested by the seal of
the insurer entitling or authorizing the person who executed the Bond to do so for and on
behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or
B. A copy of a valid power of attorney is attached to the Bond.
SECTION—16 INSURANCE
CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against
claims for injuries to persons, or damages to property which may arise from or in connection
with the performance of the Work hereunder, and the results of that Work by CONTRACTOR,
its agents, representatives, employees, or Subcontractors, in amounts equal to the
requirements set forth below. CONTRACTOR shall not commence Work under this Contract
until all insurance required under this Section is obtained in a form acceptable to OCSD, nor
shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all
insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all
of the foregoing insurance coverages in force through the point at which the Work under this
Contract is fully completed and accepted by OCSD pursuant to the provisions of the General
Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall
maintain all of the foregoing insurance coverages in full force and effect throughout the warranty
period, commencing on the date of Final Acceptance. The requirement for carrying the
foregoing insurance shall not derogate from the provisions for indemnification of OCSD by
CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the
obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for
and maintain in full force and effect during the life of this Contract, inclusive of all changes to the
Contract Documents made in accordance with the provisions of the General Conditions,
"Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated
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Changes", the following insurance in amounts not less than the amounts specified. OCSD
reserves the right to amend the required limits of insurance commensurate with the
CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter
OCSD premises/worksite without possessing the required insurance coverage.
CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by
agencies from whom permits shall be obtained for the Work and any other third parties from
whom third party agreements are necessary to perform the Work (collectively, the "Third
Parties'), The Special Provisions may list such requirements and sample forms and
requirements from such Third Parties may be included in an attachment to the General
Requirements. CONTRACTOR bears the responsibility to discover and comply with all
requirements of Third Parties, including meeting specific insurance requirements, that are
necessary for the complete performance of the Work. To the extent there is a conflict between
the Third Parties' insurance requirements and those set forth by OCSD herein, the
requirements) providing the more protective coverage for both OSCD and the Third Parties
shall control and be purchased and maintained by CONTRACTOR.
A. Limits of Insurance
1. General Liability: Five Million Dollars ($5,000,000) per occurrence and a general
aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury
and property damage. Coverage shall include each of the following:
a. Premises-Operations.
b. Products and Completed Operations, with limits of at least Five Million Dollars
($5,000,000) per occurrence and a general aggregate limit of Five Million
Dollars ($5,000,000)which shall be in effect at all times during the warranty
period set forth in the Warranty section herein, and as set forth in the General
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Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional
extension or continuation of time to said warranty period that may be required
or authorized by said provisions.
C. Broad Form Property Damage, expressly including damage arising out of
explosion, collapse, or underground damage.
d. Contractual Liability, expressly including the indemnity provisions assumed
under this Contract.
e. Separation of Insured Clause, providing that coverage applies separately to
each insured, except with respect to the limits of liability.
f. Independent CONTRACTOR's Liability.
To the extent first dollar coverage, including defense of any claim, is not
available to OCSD or any other additional insured because of any SIR,
deductible, or any other form of self insurance, CONTRACTOR is obligated to
assume responsibility of insurer until the deductible, SIR or other condition of
insurer assuming its defense and/or indemnity has been satisfied.
CONTRACTOR shall be responsible to pay any deductible or SIR.
g. If a crane will be used, the General Liability insurance will be endorsed to add
Riggers Liability coverage or its equivalent to cover the usage of the crane and
exposures with regard to the crane operators, riggers and others involved in
using the crane.
h. If divers will be used, the General Liability insurance will be endorsed to cover
marine liability or its equivalent to cover the usage of divers.
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2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile
Liability Insurance on a comprehensive form covering all owned, non-owned, and
hired automobiles, trucks, and other vehicles providing the following minimum limits
of liability coverage:
Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general
aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury
and property damage;
Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and
One Million Dollars ($1,000,000) per accident for property damage.
3. Umbrella Excess Liability: The minimum limits of general liability and automobile
liability insurance required, as set forth above, shall be provided for either in a single
policy of primary insurance or a combination of policies of primary and umbrella
excess coverage. Excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits for
general liability and automobile liability.
4. Worker's Comoensation/Emolover's Liability: CONTRACTOR shall provide such
Worker's Compensation Insurance as required by the Labor Code of the State of
California, including employer's liability with a minimum limit of One Million Dollars
($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act
liability may exist, the insurance required herein shall include coverage with regard to
Jones Act claims.
Where permitted by law, CONTRACTOR hereby waives all rights of recovery by
subrogation because of deductible clauses, inadequacy of limits of any insurance
policy, limitations or exclusions of coverage, or any other reason against OCSD, its
or their officers, agents, or employees, and any other contractor or subcontractor
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performing Work or rendering services on behalf of OCSD in connection with the
planning, development and construction of the Project. In all its insurance coverages
related to the Work, CONTRACTOR shall include clauses providing that each insurer
shall waive all of its rights of recovery by subrogation against OCSD, its or their
officers, agents, or employees, or any other contractor or subcontractor performing
Work or rendering services at the Project. Where permitted by law, CONTRACTOR
shall require similar written express waivers and insurance clauses from each of its
Subcontractors of every tier. A waiver of subrogation shall be effective as to any
individual or entity, even if such individual or entity (a)would otherwise have a duty
of indemnification, contractual or otherwise, (b)did not pay the insurance premium,
directly or indirectly, and (c)whether or not such individual or entity has an insurable
interest in the property damaged.
B. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by OCSD. At
the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and
employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD
guaranteeing payment of losses and related investigations, claim administration, and
defense expenses.
C. Other Insurance Provisions
1. Each such policy of General Liability Insurance and Automobile Liability Insurance
shall be endorsed to contain, the following provisions:
a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all
public agencies from whom permits will be obtained, and their Directors,
officers, agents, and employees are hereby declared to be additional insureds
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under the terms of this policy, but only with respect to the operations of
CONTRACTOR at or from any of the sites of OCSD in connection with this
Contract, or acts and omissions of the additional insured in connection with its
general supervision or inspection of said operations related to this Contract.
b. Insurance afforded by the additional insured endorsement shall apply as
primary insurance, and other insurance maintained by OCSD shall be excess
only and not contributing with insurance provided under this policy.
2. Each insurance policy required herein shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30)days prior written notice by
certified mail, return receipt requested, and that coverage shall not be cancelled for
non-payment of premium except after ten (10)days prior written notice by certified
mail, return receipt requested. Should there be changes in coverage or an increase
in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript
endorsement from its insurer giving 30 days prior notice of such an event to OCSD,
or to have its insurance broker/agent send to OCSD a certified letter describing the
changes in coverage and any increase in deductible or SIR amounts. The certified
letter must be sent Attention: Risk Management and shall be received not less than
twenty (20) days prior to the effective date of the change(s). The letter must be
signed by a Director or Officer of the broker/agent and must be on company
letterhead, and may be sent via e-mail in pdf format.
3. Coverage shall not extend to any indemnity coverage for the active negligence of
any additional insured in any case where an agreement to indemnify the additional
insured would be invalid under California Civil Code Section 2782(b).
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4. If required by a public agency from whom permit(s)will be obtained, each policy of
General Liability Insurance and Automobile Liability Insurance shall be endorsed to
specify by name the public agency and its legislative members, officers, agents,
CONSULTANTS, and employees, to be additional insureds.
D. Acceptability of Insurers
Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at
least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide.
OCSD recognizes that State Compensation Insurance Fund has withdrawn from
participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept
State Compensation Insurance Fund for the required policy of workers compensation
insurance, subject to OCSD's option, at any time during the term of this Contract, to
require a change in insurer upon twenty (20)days written notice. Further, OCSD will
require CONTRACTOR to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20)days of written notice to
CONTRACTOR by OCSD or its agent.
E. Verification of Coverage
CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements
affecting coverage. Said policies and endorsements shall conform to the requirements
herein stated. All certificates and endorsements are to be received and approved by
OCSD before Work commences. OCSD reserves the right to require complete, certified
copies of all required insurance policies, including endorsements, affecting the coverage
required by these Specifications at any time.
F. Subcontractors
CONTRACTOR shall be responsible to establish insurance requirements for any
Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types
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reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations
and work. OCSD and any public agency issuing permits for the Project must be named as
"Additional Insured"on any General Liability or Automobile Liability policy obtained by a
Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of
all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting
coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced
required documents.
G. Required Forms and Endorsements
1. Required ACORD Form
a. Certificate of Liability Form 25-S (7/97)
2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are
shown, they are listed in order of preference)
In the event any of the following forms are cancelled by Insurance Services Office,
Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied.
a. Commercial General Liability Form CG-0001 10 01
b. Additional Insured Including Form CG-2010 10 01 and
Products-Completed Operations Form CG-2037 10 01
C. Waiver of Transfer of Rights of Form CG-2404 11 85; or
Recovery Against Others to Us/ Form CG-2404 10 93
Waiver of Subrogation
3. Required State Compensation Insurance Fund Endorsements
a. Waiver of Subrogation Endorsement No. 2570
b. Cancellation Notice Endorsement No. 2065
4. Additional Required Endorsements
a. Notice of Policy Termination Manuscript Endorsement
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SECTION-17 RISK AND INDEMNIFICATION
All Work covered by this Contract done at the site of construction or in preparing or delivering
materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save,
indemnify, defend, and keep OCSD and others harmless as more specifically set forth in
General Conditions, "General Indemnification".
SECTION-18 TERMINATION
This Contract may be terminated in whole or in part in writing by OCSD in the event of
substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may
be terminated by OCSD for its convenience provided that such termination is effectuated in a
manner and upon such conditions set forth more particularly in General Conditions,
"Termination for Default" and/or"Termination for Convenience", provided that no termination
may be effected unless proper notice is provided to CONTRACTOR at the time and in the
manner provided in said General Conditions. If termination for default or convenience is
effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be
made at the time and in the manner provided in the General Conditions, "Termination for
Default" and "Termination for Convenience".
SECTION—19 WARRANTY
The CONTRACTOR agrees to perform all Work under this Contract in accordance with the
Contract Documents, including OCSD's designs, Drawings and Specifications.
The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final
Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final
Completion" that the completed Work is free from all defects due to faulty materials, equipment
or workmanship and that it shall promptly make whatever adjustments or corrections which may
be necessary to cure any defects, including repairs of any damage to other parts of the system
resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of
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observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs,
corrections or other work made necessary by such defects, OCSD may do so and charge the
CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any
corrected deficiency until the later of(1)the remainder of the original one-year warranty period;
or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and
the Payment Bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's
other express or implied assurances under this Contract, including but not limited to specific
manufacturer or other extended warranties specified in the Plans and Specifications, or state
law and in no way diminish any other rights that OCSD may have against the CONTRACTOR
for faulty materials, equipment or Work.
SECTION-20 ASSIGNMENT
No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be
received hereunder, will be recognized by OCSD unless such assignment has had prior written
approval and consent of OCSD and the Surety.
SECTION—21 RESOLUTION OF DISPUTES
OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract
Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which
arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims
provisions as set forth in the General Conditions and as otherwise required by law.
SECTION-22 SAFETY & HEALTH
CONTRACTOR shall comply with all applicable safety and health requirements mandated by
federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as
well as these Contract Documents, including but not limited to the General Requirements,
Section entitled "Safety" and Exhibit B OCSD Safety Standards.
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SECTION-23 NOTICES
Any notice required or permitted under this Contract may be given by ordinary mail at the
address set forth below. Any parry whose address changes shall notify the other party in
writing.
TO OCSD: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Clerk of the Board
Copy to: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Construction Manager
Bradley R. Hogin, Esquire
Woodruff, Spradlin & Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: K&F Electric, Inc.
575 Anton Boulevard, Suite 300
Costa Mesa, CA 92626
Copy to: R. Ben Canfield, III
K&F Electric, Inc.
575 Anton Boulevard, Suite 300
Costa Mesa, CA 92626
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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: K&F Electric, Inc.
575 Anton Boulevard, Suite 300
Costa Mesa, CA 92626
By
Printed Name
Its
CONTRACTOR's State License No. 909531 (Expiration Date— 1/3/2016)
OCSD: Orange County Sanitation District
By
Chair, Board of Directors
By
Clerk of the Board
By
Contracts, Purchasing and Materials
Management Division Manager
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EXHIBIT A
SCHEDULE OF PRICES
C-EXA-071012
TABLE OF CONTENTS
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION ..............................................................................1
EXA-2 PROGRESS PAYMENTS....................................................................................1
EXA-3 RETENTION AND ESCROW ACCOUNTS .........................................................1
EXA-4 STOP PAYMENT NOTICE ..................................................................................3
EXA-5 PAYMENT TO SUBCONTRACTORS..................................................................3
EXA-6 PAYMENT OF TAXES.........................................................................................3
EXA-7 FINAL PAYMENT ................................................................................................4
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT.....5
ATTACHMENT 1 CERTIFICATION FOR REQUEST FOR PAYMENT........................7
ATTACHMENT 2 SCHEDULE OF PRICES ...........................................................8
C-EXA-071012
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EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION
CONTRACTOR will be paid the Contract Price according to the Schedule of
Prices, and all other applicable terms and conditions of the Contract
Documents.
EXA-2 PROGRESS PAYMENTS
Progress payments will be made in accordance with all applicable terms and
conditions of the Contract Documents, including, but not limited to:
1. Contract Agreement—Section 11 —"Contract Price and Method of
Payment;"
2. General Conditions—"Payment—General",
3. General Conditions—"Payment—Applications for Payment":
4. General Conditions—"Payment— Mobilization Payment Requirements;"
5. General Conditions—"Payment— Itemized Breakdown of Contract Lump
Sum Prices";
6. General Conditions—"Contract Price Adjustments and Payments";
7. General Conditions—"Suspension of Payments";
8. General Conditions—"OCSD's Right to Withhold Certain Amounts and
Make Application Thereof"; and
9. General Conditions—"Final Payment."
EXA-3 RETENTION AND ESCROW ACCOUNTS
A. Retention:
OCSD shall retain a percentage of each progress payment to assure
satisfactory completion of the Work. The amount to be retained from each
progress payment shall be determined as provided in General Conditions—
"Retained Funds; Substitution of Securities". In all contracts between
CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not
exceed the percentage specified in the Contract Documents.
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B. Substitution of Securities:
CONTRACTOR may, at its sole expense, substitute securities as provided in
General Conditions—"Retained Funds; Substitution of Securities." Payment of
Escrow Agent:
In lieu of substitution of securities as provided above, the CONTRACTOR may
request and OCSD shall make payment of retention earned directly to the
escrow agent at the expense of the CONTRACTOR. At the expense of the
CONTRACTOR, the CONTRACTOR may direct the investment of the
payments into securities consistent with Government Code §16430 and the
CONTRACTOR shall receive the interest earned on the investments upon the
same terms provided for in this article for securities deposited by the
CONTRACTOR. Upon satisfactory completion of the Contract, the
CONTRACTOR shall receive from the escrow agent all securities, interest and
payments received by the escrow agent from OCSD, pursuant to the terms of
this article. The CONTRACTOR shall pay to each Subcontractor, not later than
twenty (20)calendar days after receipt of the payment, the respective amount
of interest earned, net of costs attributed to retention withheld from each
Subcontractor, on the amount of retention withheld to ensure the performance
of the Subcontractor. The escrow agreement used by the escrow agent
pursuant to this article shall be substantially similar to the form set forth in
§22300 of the California Public Contract Code.
C. Release of Retention:
Upon Final Acceptance of the Work, the CONTRACTOR shall submit an
invoice for release of retention in accordance with the terms of the Contract.
D. Additional Deductibles:
In addition to the retentions described above, OCSD may deduct from each
progress payment any or all of the following:
1. Liquidated Damages that have occurred as of the date of the application for
progress payment;
2. Deductions from previous progress payments already paid, due to OCSD's
discovery of deficiencies in the Work or non-compliance with the
Specifications or any other requirement of the Contract;
3. Sums expended by OCSD in performing any of the CONTRACTOR'S
obligations under the Contract that the CONTRACTOR has failed to
perform, and;
4. Other sums that OCSD is entitled to recover from the CONTRACTOR
under the terms of the Contract, including without limitation insurance
deductibles and assessments.
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The failure of OCSD to deduct any of the above-identified sums from a
progress payment shall not constitute a waiver of OCSD's right to such sums or
to deduct them from a later progress payment.
EXA-4 STOP PAYMENT NOTICE
In addition to other amounts properly withheld under this article or under other
provisions of the Contract, OCSD shall retain from progress payments
otherwise due the CONTRACTOR an amount equal to one hundred twenty-five
percent (125%)of the amount claimed under any stop payment notice under
Civil Code§9350 at. seq. or other lien filed against the CONTRACTOR for
labor, materials, supplies, equipment, and any other thing of value claimed to
have been furnished to and/or incorporated into the Work; or for any other
alleged contribution thereto. In addition to the foregoing and in accordance with
Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop
payment notices by refusing to release funds held in escrow pursuant to public
receipt of a release of stop payment notice executed by a stop payment notice
claimant, a slop payment notice release bond, an order of a court of competent
jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR
has resolved such claim by settlement.
EXA-5 PAYMENT TO SUBCONTRACTORS
Requirements
1. The CONTRACTOR shall pay all Subcontractors for and on account of
Work performed by such Subcontractors, not later than seven (7) days after
receipt of each progress payment as required by the California Business
and Professions Code §7108.5. Such payments to Subcontractors shall be
based on the measurements and estimates made pursuant to article
progress payments provided herein.
2. Except as specifically provided by law, the CONTRACTOR shall pay all
Subcontractors any and all retention due and owing for and on account of
Work performed by such Subcontractors not later than seven (7) days after
CONTRACTOR'S receipt of said retention proceeds from OCSD as
required by the California Public Contract Code§7107.
EXA-6 PAYMENT OF TAXES
Unless otherwise specifically provided in this Contract, the Contract Price
includes full compensation to the CONTRACTOR for all taxes. The
CONTRACTOR shall pay all federal, state, and local taxes, and duties
applicable to and assessable against any Work, including but not limited to
retail sales and use, transportation, export, import, business, and special taxes.
The CONTRACTOR shall ascertain and pay the taxes when due. The
CONTRACTOR will maintain auditable records, subject to OCSD reviews,
confirming that tax payments are current at all times.
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EXA-7 FINAL PAYMENT
After Final Acceptance of the Work, as more particularly set forth in the
General Conditions, "Final Acceptance and Final Completion", and after
Resolution of the Board authorizing final payment and satisfaction of the
requirements as more particularly set forth in General Conditions—"Final
Payment", a final payment will be made as follows:
1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an
application for Final Payment to OCSD, including:
a. The proposed total amount due the CONTRACTOR, segregated by
items on the payment schedule, amendments, Change Orders, and
other bases for payment;
b. Deductions for prior progress payments;
c. Amounts retained;
d. A conditional waiver and release on final payment for each
Subcontractor(per Civil Code Section 8136);
e. A conditional waiver and release on final payment on behalf of the
CONTRACTOR (per Civil Code Section 8136);
f. List of Claims the CONTRACTOR intends to file at that time or a
statement that no Claims will be filed,
g. List of pending unsettled claims, stating claimed amounts, and copies of
any and all complaints and/or demands for arbitration received by the
CONTRACTOR; and
h. For each and every claim that resulted in litigation or arbitration which
the CONTRACTOR has settled, a conformed copy of the Request for
Dismissal with prejudice or other satisfactory evidence the arbitration is
resolved.
2. The application for Final Payment shall include complete and legally
effective releases or waivers of liens and stop payment notices satisfactory
to OCSD, arising out of or fled in connection with the Work. Prior progress
payments shall be subject to correction in OCSD's review of the application
for Final Payment. Claims filed with the application for Final Payment must
be otherwise timely under the Contract and applicable law.
3. Within a reasonable time, OCSD will review the CONTRACTOR'S
application for Final Payment. Any recommended changes or corrections
will then be forwarded to the CONTRACTOR. Within ten (10) calendar days
after receipt of recommended changes from OCSD, the CONTRACTOR will
make the changes, or list Claims that will be filed as a result of the
changes, and shall submit the revised application for Final Payment. Upon
C-EXA-071012 CONFORMED
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acceptance by OCSD, the revised application for Final Payment will
become the approved application for Final Payment.
4. If no Claims have been fled with the initial or any revised application for
Final Payment, and no Claims remain unsettled within thirty (30) calendar
days after Final Acceptance of the Work by OCSD, and agreements are
reached on all issues regarding the application for Final Payment, OCSD,
in exchange for an executed release, satisfactory in form and substance to
OCSD, will pay the entire sum found due on the approved application for
Final Payment, including the amount, if any, allowed on settled Claims.
5. The release from the CONTRACTOR shall be from any and all Claims
arising under the Contract, except for Claims that with the concurrence of
OCSD are specifically reserved, and shall release and waive all unreserved
Claims against OCSD and its officers, directors, employees and authorized
representatives. The release shall be accompanied by a certification by the
CONTRACTOR that:
a. It has resolved all Subcontractors, Suppliers and other Claims that are
related to the settled Claims included in the Final Payment;
b. It has no reason to believe that any party has a valid claim against the
CONTRACTOR or OCSD which has not been communicated in writing
by the CONTRACTOR to OCSD as of the date of the certificate;
c. All warranties are in full force and effect, and;
d. The releases and the warranties shall survive Final Payment.
6. If any claims remain open, OCSD may make Final Payment subject to
resolution of those claims. OCSD may withhold from the Final Payment an
amount not to exceed one hundred fifty percent (150%)of the sum of the
amounts of the open claims, and one hundred twenty-five percent (125%)
of the amounts of open stop payment notices referred to in article entitled
stop payment notices herein.
7. The CONTRACTOR shall provide an unconditional waiver and release on
final payment from each Subcontractor and Supplier providing Work under
the Contract(per Civil Code Section 8138)and an unconditional waiver and
release on final payment on behalf of the CONTRACTOR (per Civil Code
Section 8138)within thirty (30)days of receipt of Final Payment.
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT
Notwithstanding OCSD's acceptance of the application for Final Payment and
irrespective of whether it is before or after Final Payment has been made,
OCSD shall not be precluded from subsequently showing that:
1. The true and correct amount payable for the Work is different from that
previously accepted;
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2. The previously-accepted Work did not in fact conform to the Contract
requirements, or;
3. A previous payment or portion thereof for Work was improperly made.
OCSD also shall not be stopped from demanding and recovering damages
from the CONTRACTOR, as appropriate, under any of the foregoing
circumstances as permitted under the Contract or applicable law.
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ATTACHMENTI
CERTIFICATION FOR REQUEST FOR PAYMENT
I hereby certify under penalty of perjury as follows:
That the claim for payment is in all respects true, correct; that the services mentioned
herein were actually rendered and/or supplies delivered to OCSD in accordance with the
Contract.
I understand that it is a violation of both the federal and California False Claims Ads to
knowingly present or cause to be presented to OCSD a false claim for payment or
approval.
A claim includes a demand or request for money. It is also a violation of the False
Claims Ads to knowingly make use of a false record or statement to get a false claim
paid. The term "knowingly" includes either actual knowledge of the information,
deliberate ignorance of the truth or falsity of the information, or reckless disregard for the
truth or falsity of the information. Proof of specific intent to defraud is not necessary
under the False Claims Acts. I understand that the penalties under the Federal False
Claims Act and State of California False Claims Act are non-exclusive, and are in
addition to any other remedies which OCSD may have either under contract or law.
I hereby further certify, to the best of my knowledge and belief, that:
1. The amounts requested are only for performance in accordance with the
Specifications, terms, and conditions of the Contract;
2. Payments to Subcontractors and Suppliers have been made from previous payments
received under the Contract, and timely payments will be made from the proceeds of
the payment covered by this certification;
3. This request for progress payments does not include any amounts which the prime
CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in
accordance with the terms and conditions of the subcontract; and
4. This certification is not to be construed as Final Acceptance of a Subcontractor's
performance.
Name
Title
Date
CONFORMED C-EXA-071012
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ATTACHMENT
SCHEDULE OF PRICES
See next pages from the Bid Submittal Forms (K&F Electric, Inc.):
BF-14 Schedule of Prices, Pages 1-2
C-EXA-071012 CONFORMED
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K&F Electric, Inc. a
Bid Submitted By:
(N�nr.af Fkm) ¢
BF-14 SCHEDULE OF PRICES
INSTRUCTIONS
A. General
For Unit Prices,R Is understood that the following quantities are approximate only and are
solely for the purpose of estimating the comparison of Bids, and that the actual value of Work
will be computed based upon the actual quantities in the completed Work,whether they be
more or less than those shown. CONTRACTOR's compensation for the Work under the
Contract Documents will be computed based upon the lump sum amount of the Contract at
time of award, plus any additional or deleted costs approved by OCSD via approved Change
Orders, pursuant to the Contract Documents.
Bidder shall separately price and accurately reflect costs associated with each line item,
leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized
representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid.
Bidders are reminded of Instruction to Bidders,Discrepancy in Bid Items,which, in summary,
provides that the total price for each item shall be based on the Unit Price listed for each item
multiplied by the quantity;and the correct Total Price for each item shall be totaled to
determine the Total Amount of Bid.
All applicable costs including overhead and profit shall be reflected in the respective unit costs
and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work,
including profit,overhead,etc., unless otherwise specified in the Contract Documents. All
applicable sales taxes, state and/or federal and any other special taxes,patent riohts or
novelties shall be included in the prices quoted in this Bid.
B. Basis of Award
AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST
RESPONSIVE AND RESPONSIBLE BID. THE LOWEST BID IS DEFINED AS THE TOTAL
AMOUNT OF BID'LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW. -
Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials,equipment and
services for the construction of the Project per the Contract Documents.
BF-14 SCHEDULE OF PRICES C-BF-031014
PROJECT NO.J-125
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Bid Submitted By: K&F Electric, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
BASE BID ITEMS (Refer to Note 1 in the Instructions):
Item Description Unit of Approx. Unit PriceExlonded Prico
No. Measurement city.
1. Mobilization:
For all fees, labor, materials and equipment necessary for mobilization, in Lump Sum 1 = $ 60,000,00
conformance with Section 01155 Measurement and Payment and the
Contract Documents, for a lump sum price of...
2. Plant No. 1 PLC Work:
Furnish all labor, materials and equipment necessary for the completion of Lump Sum 1 $
the Plant No. 1 Work, in conformance with Section 01155 Measurement
and Payment and the Contract Documents, for a lump sum price of...
3. Plant No. 2 PLC Work:
Furnish all labor, materials and equipment necessary for the completion of Lump Sum 1 $
the Plant No. 2 Work, in conformance with Section 01155 Measurement
and Payment and the Contract Documents, for a lump sum price of...
4. Demobilization:
For all fees, labor, materials and equipment necessary for demobilization, Lump Sum 1 = $ I or o o>
In conformance with Section 01155 Measurement and Payment and the
Contract Documents, for a lump sum price of...
SUBTOTAL OF ITEMS NO. 1 THROUGH NO.4 $ 1, c,
TOTAL AMOUNT OF BID (BASIS OF AWARD) $
BF-14 SCHEDULE OF PRICES C-BF-031014
ADDENDUM NO. 1 PROJECT NO.J-125
PROGRAMMABLE CONTROL PANEL UPGRADES
Pa9c 2 of 2
BOARD OF DIRECTORS Meeting Date I TOBd.Of Dir.
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AGENDA REPORT IternNumber ItemNumbe
B
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2,
PROJECT NO. P2-92
GENERAL MANAGER'S RECOMMENDATION
A. Approve Amendment No. 6 to the Professional Design Services Agreement with
Brown and Caldwell for Sludge Dewatering and Odor Control at Plant No. 2,
Project No. P2-92, for $666,798, increasing the total amount not to exceed
$7,485,239; and
B. Approve a contingency increase of $66,680 (1.2%) to the Professional Design
Services Agreement with Brown and Caldwell for Sludge Dewatering and Odor
Control at Plant No. 2, Project No. P2-92.
SUMMARY
The Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92, will replace
dewatering facilities that have reached the end of their service life. Based on the Long
Range Biosolids Master Plan, a newer dewatering technology, centrifuges, will be
utilized to reduce biosolids disposal costs. The project will also incorporate odor control
improvements to contain and treat odors associated with dewatering and truck loading.
The project includes two independent odor control systems. Foul air generated from the
dewatering process will be treated biologically. Foul air pulled from the Truck Loading
Bays was to be treated using activated carbon, which was initially identified as the most
cost-effective method of controlling the odors from that source. Recent experiences in a
number of Orange County Sanitation District (Sanitation District) facilities have shown
that activated carbon does not always perform per expectations. Based on the
cumulative evidence, staff concluded that chemical scrubbers should be used instead of
activated carbon for this application.
In order to avoid expensive delays to the main project, a decision was made to design,
bid, and construct the Truck Loading Bay Odor Control system separately from the main
P2-92 dewatering project. The truck loading facilities exist and have been in operation
for several years. This improvement is separable from the new construction. The
project will be built so that it is ready for operation by the time the new centrifuge facility
goes into operation.
This Amendment, and the additional associated contingency, will authorize the design
consultant, Brown and Caldwell, to prepare the preliminary and final design documents
for the Truck Loading Bay Odor Control System.
Page 1 of 2
PRIOR COMMITTEE/BOARD ACTIONS
• December 2012 - Approved a contingency increase of $568,296 (10%) to the
Professional Design Services Agreement with Brown and Caldwell for Sludge
Dewatering and Odor Control at Plant No. 2, Project No. P2-92, for a total
contingency of$1,136,592 (20°/%).
• July 2011 - Approved a Professional Design Services Agreement with Brown and
Caldwell for Sludge Dewatering and Odor Control at Plant No. 2, Job P2-92,
providing for engineering design services for the amount not to exceed $5,682,963
and approved a contingency of$568,296 (10%).
ADDITIONAL INFORMATION
Negotiations for this proposed work extended beyond the mailing date to the Operations
Committee. The item is being brought directly to the Board in July since the Operations
Committee is dark in August.
CEQA
On March 27, 2013, the Board certified the Final Subsequent Environmental Impact
Report for implementation of Sludge Dewatering and Odor Control at Plant No. 2,
Project No. P2-92; making certain findings relating to environmental effects identified in
the Final Subsequent Environmental Impact Report; adopting a Mitigation Monitoring
and Reporting Program; adopting a Statement of Overriding Considerations; and
approving the Sludge Dewatering and Odor Control at Plant No. 2, Project No. P2-92.
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (FY2014-15, Section 8, Page 71) and the
budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
07/27/11 $5,682,963 $568,296 (10%)
12/19/12 $568,296 (10%)
07/23/14 $ 666,798 $ 66,680(1.2%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
• PDSA Amendment No. 6
JM:dm:gc
Page 2 of 2
Return to Mende Report
AMENDMENT NO. 6 TO AGREEMENT
THIS AMENDMENT NO. 6 TO AGREEMENT, is made and entered into to be
effective the 2V day of July, 2014 by and between the ORANGE COUNTY SANITATION
DISTRICT, hereinafter referred to as "SANITATION DISTRICT', and BROWN &
CALDWELL, of Irvine, CA, for purposes of this Agreement hereinafter referred to as
"CONSULTANT".
WITNESSETH:
WHEREAS, the SANITATION DISTRICT and CONSULTANT have previously
executed an Agreement dated July 27, 2011, together with Amendment No. 1 dated
October 2, 2012, Amendment No. 2 dated May 21, 2013, Amendment No. 3 dated
November 19, 2013, Amendment No. 4 dated April 1, 2014, and Amendment No. 5 dated
June 17, 2014 for professional design services for SLUDGE DEWATERING AND ODOR
CONTROL AT PLANT NO. 2, PROJECT NO. P2-92; and,
WHEREAS, the SANITATION DISTRICT has determined that additional engineering
services are required; and,
WHEREAS, CONSULTANT is qualified to provide the necessary services in
connection with these additional requirements based on its demonstrated competence and
has agreed to provide the necessary engineering services, and has been selected in
accordance with the SANITATION DISTRICT selection policy regarding professional design
services; and,
Amendment No. 6 -1- Project No. P2-92
Revised 12/01/10
Return to Mende Report
WHEREAS, the SANITATION DISTRICT acting through its Director of Engineering,
has negotiated with CONSULTANT, and has certified the final negotiated fee for said
services as reasonable, and,
WHEREAS, the Board of Directors has accepted the recommendation of the General
Manager pursuant to the current Ordinance, has approved this Amendment No. 6 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 Amendment No. 6, it is mutually
agreed as follows:
1. CONSULTANT agrees to provide additional design services related to the
Truck Loading Bay Odor Control System as outlined in the Brown & Caldwell proposal
dated June 17, 2014, designated as Exhibit "A", attached hereto and by this reference
made a part of this Amendment No. 6 to Agreement.
2. Article 2 of that certain Agreement dated July27, 2011, between the
SANITATION DISTRICT and CONSULTANT is hereby amended to increase the total
compensation by $666,798 from $6,818,441 to an amount not to exceed $7,485,239, all in
accordance with the same terms and conditions as otherwise specified in Article 3 and the
other provisions of said Agreement.
Amendment No. 6 -2- Project No. P2-92
Revised 12/01/10
Return to Agenda Report
3. The additional compensation authorized hereby and sums paid by the
SANITATION DISTRICT to CONSULTANT pursuant hereto shall be based upon and
allocated as follows:
Contract Alount
includes Change per
Amendments) Atendment No. 6 Amended Anreement
Consultant
Burdened Labor(Raw labor+ $ 2,713,954 $ 295,852 $ 3,009,806
Fringe a 40%)
Overhead@ 114.65% $ 3,111,548 $ 339,194 $ 3,450,742
Fixed Profit @ 5.00% $ 291,275 $ 31,752 $ 323,027
Direct Costs, NTE $ 118,692 $ - $ 118,692
Subtotal = $ 6,235,469 $ 666,798 $ 6,902,267
Subconsultant- PLATTNIIHITELAW ARCHITECTS
Burdened Labor(Raw labor+ $ 43,335 $ - $ 43,335
Fringe g 33%)
Overhead @ 120.00% $ 52,002 $ - $ 52,002
Fixed Profit @ 10.00% $ 9,534 $ - $ 9,534
erect Costs, NTE $ 2,195 $ - $ 2,195
Subtotal = $ 107,066 $ - $ 107,066
Subconsultant- ENVIRONMENTAL SCIENCES ASSOCIATES (ESA)
Burdened Labor(Raw labor+ $ 40,309 $ - $ 40,309
Fringe g 40%)
Overhead @ 123.483% $ 49,775 $ - $ 49,775
Fixed Profit @ 10.00% $ 9,008 $ - $ 9,008
Direct Costs, NTE _ $ 4,190 $ - $ 4,190
Subtotal = $ 103,282 $ - $ 103,282
Subconsultant Fees NTE:_
Kleinfelder $ 87,748 $ - $ 87,748
Forkert $ 38,750 $ - $ 38,750
BGB $ 22,816 $ - $ 22,816
Shannon &Wilson $ 23,320 $ - $ 23,320
Corrosion Probe $ 33,180 $ - $ 33,180
Dynatech $ 57,260 $ - $ 57,260
VSA $ 41,050 $ - $ 41,050
Hughes $ 44,500 $ - $ 44,500
Peter LaMontagne $ 14,000 $ - $ 14,000
Saf-R-Dig $ 10,000 $ - $ 10,000
Subtotal= $ 372,624 $ - $ 372,624
Total Not to Exceed $ 6,818,441 $ 666,798 $ 7,485,239
Amendment No. 6 -3- Project No. P2-92
Revised 12/01/10
Return to Mende Report
4. The SANITATION DISTRICT agrees to pay CONSULTANT on a monthly basis
pursuant to invoices submitted to the SANITATION DISTRICT from CONSULTANT and as
approved by the SANITATION DISTRICT's Director of Engineering.
5. This modifying Amendment is supplemental to the Agreement dated
July 27, 2012, Amendment No. 1 dated October 2, 2012, Amendment No. 2 dated May 21,
2013, Amendment No. 3 dated November 19, 2013, Amendment No. 4 dated April 1, 2014,
and Amendment No. 5 dated June 17, 2014, and is by reference made a part of said
Agreement. All of the terms, conditions, and provisions thereof, unless specifically modified
herein, shall continue in full force and effect.
6. In the event of any conflict or inconsistency between the provisions of this
Amendment and any of the provisions of the original Agreement, the provisions of this
Amendment No. 6 shall in all respects govern and control.
Amendment No. 6 -4- Project No. P2-92
Revised 12/01/10
Return to Mende Report
IN WITNESS WHEREOF, this Amendment No. 6 to Agreement has been executed
in the name of the SANITATION DISTRICT by its officer's thereunto duly authorized and
executed by CONSULTANT as of the day and year first above written.
ORANGE COUNTY SANITATION DISTRICT
By
Tom Beamish Date
Chairman of the Board
By
Kelly A. Lore Date
Acting Clerk of the Board
BROWN & CALDWELL
By
Date
By
Date
ORANGE COUNTY SANITATION DISTRICT
By
Marc Dubois Date
Contracts/Purchasing Manager
JM:dm
EDMS:003993303/5.1.h
Amendment No. 6 -5- Project No. 132-92
Rev,setl 12/01/10
BOARD OF DIRECTORS Meeting Dare I TO%30/f Dir.
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AGENDA REPORT Item Number Item Numbe
g
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: SPARE PUMP FOR STEVE ANDERSON LIFT STATION
GENERAL MANAGER'S RECOMMENDATION
A. Authorize a sole source purchase order to Flo Systems Inc. for the purchase of
one spare pump for the Steve Anderson Lift Station (SALS) for a total amount of
$215,000; and
B. Approve a contingency of$6,450 (3%).
SUMMARY
Phase II expansion of the Ground Water Replenishment System (GWRS) project is
expected to be completed by April 2015. After the completion of the GWRS expansion
project, OCSD will be treating more flow at Plant No. 1 in order to provide adequate
secondary effluent to GWRS. Average flow at Plant No. 1 is expected to increase from
100 million gallons per day (mgd) to 135 mgd.
SALS is one of the pump stations that will be used to bring in more flow to Plant No. 1.
Upstream flow diversions to SALS will increase from 30 mgd to 55 mgd requiring a
minimum of three of the four pumps to be in continuous operation. The lead time for
spare parts and pump repairs at SALS could be as long as 20 weeks. In order to
maintain adequate reliability and meet our level of service commitment to GWRS, the
proposed spare pump will be used to replace any of the four pumps that may encounter
problems or failures.
Staff recommends a sole source for this pump for the following reasons:
1. The original installation is a Hidrostal pump and other pumps do not fit in the
existing piping configuration.
2. Hidrostal is the pump manufacturer and requires us to purchase the pump from
their local distributor Flo Systems Inc.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
Page 1 of 2
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of OCSD Purchasing Ordinance OCSD-44.
This item has been budgeted for FY 2014-15 and 2015-16 (section 8 page 120 M-FR-
PLT).
Date of Aooroval Contract Amount Contingency
FY2014-15 Budget, $215,000 $6,450(3%)
Section 8—Page 120
ET:UM:cf
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BOARD OF DIRECTORS Meeting Date I TOBd.of Dir.
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AGENDA REPORT Number 10
Item Number Item
Nu
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H
DEMOLITION, CONTRACT NO. P1-115A
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file bid tabulation and recommendation;
B. Find that the lowest bid from Hal Hays Construction, Inc. is non-responsive and
reject the lowest bid;
C. Receive and file Appeal of Award Recommendation letter dated June 18, 2014
from Hal Hays Construction, Inc. concerning the determination that their bid was
Non-Responsive and the Orange County Sanitation District's recommendation to
award to the second lowest bidder, Stronghold Engineering, Inc.;
D. Receive and file the Orange County Sanitation District Final Disposition letter
dated July 10, 2014 to Hal Hays Construction, Inc. responding to the Appeal of
Award Recommendation;
E. Deny Appeal of Award Recommendation filed by Hal Hays Construction, Inc.;
F. Award a construction contract to Stronghold Engineering, Inc. for Maintenance
Area Building Improvements and Building H Demolition, Contract No. P1-115A,
part of Title 24 Access Compliance and Building Rehabilitation, Project
No. P1-115, for a total amount not to exceed $7,323,217; and
G. Approve a contingency of$732,322 (10%).
SUMMARY
Maintenance Area Building Improvements and Building H Demolition, Contract
No. P1-115A, is part of the larger project Title 24 Access Compliance and Building
Rehabilitation, Project No. P1-115, which retrofits existing support buildings and trailers
at Plant No. 1 to meet accessibility requirements and other code requirements, and
provide maintenance replacements such as roofs and lighting.
The Orange County Sanitation District (Sanitation District) advertised for bids on
March 25, 2014 and on April 2, 2014. Five sealed bids were received on May 6, 2014.
The bids were evaluated in accordance with the Sanitation District's policies and
procedures. Hal Hays Construction, Inc. submitted the lowest bid, but this bid was
Page 1 of 4
deemed non-responsive due to their Experience Modification Rate (EMR) being higher
than the Sanitation District's standard as specified in the Invitation for Bids (IFB).
Therefore, the second low Bidder, Stronghold Engineering, Inc. was deemed the lowest
responsive, responsible bidder.
Hal Hays Construction, Inc., submitted an appeal to the determination that their bid was
Non-Responsive and to the award recommendation to Stronghold Engineering, Inc.
Staff and General Counsel determined that their appeal does not have merit and
therefore a change to the award recommendation is not warranted.
Staff recommends awarding a construction contract to Stronghold Engineering, Inc. for
Maintenance Area Building Improvements and Building H Demolition, Contract
No. P1-115A, for a total amount not to exceed $7,323,217.
The bidders were required to include five additive/deductive bid items which are
included in the basis for award, but are not included in the Contract award value.
Summary information on the bid opening for Maintenance Area Building Improvements
and Building H Demolition, Contract No. P1-115A, includes the additive/deductive bid
items and the results are as follows:
Project Budget $31,982,778
Construction Contract Budget $ 8,000,000
Engineer's Estimate $ 7,500,000
Lowest Responsive, Responsible Bid $ 7,342,217
High Bid $ 7,620,850
Bidder Amount of Bid
Hal Hays Construction, Inc. $ 5,612,929
Stronghold Engineering, Inc. $ 7,342,217
2H Construction, Inc. $ 7,431,800
Woodcliff Corporation $ 7,527,450
Sanders Construction Services, Inc. $ 7,620,850
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
In the bid submittal forms, the bidder is required to indicate if their EMR meets the
standard set by the Sanitation District. Hal Hays Construction, Inc., indicated in their bid
submittal forms that their workers' compensation EMR was between 1.01 and 1.25.
Sanitation District staff verified the EMR rate issued by the WCIRB on the Compline
website (an online industry source of actual published EMR rates) and discovered that
Page 2 of 4
the Hal Hays Construction, Inc. actual EMIR rate at the time of bid was above 1.25,
which exceeds the Sanitation District's acceptable Safety standards as required by the
IFB. The WCIRB is California's licensed rating organization for workers' compensation
and their safety ratings are commonly used as an industry standard by sureties, bidders
and awarding agencies.
The Sanitation District staff issued a clarification request to Hal Hays Construction, Inc.
requesting to provide clarification of their actual published EMIR rate at the time of bid.
The information provided by Hal Hayes Construction, Inc.'s surety in response to the
clarification request regarding their actual published EMR at the time of bid
demonstrated that it was above 1.25. On this basis, the Sanitation District staff
determined the bid submitted by Hal Hays Construction, Inc. to be non-responsive to
the IFB requirements. The Sanitation District's General Counsel was consulted and
concurred with the Evaluation Team's determination of the bid.
Hal Hays Construction, Inc. submitted an appeal to the Sanitations District's
determination that their bid was Non-Responsive and to the recommendation to award
the contract to the second lowest bidder, Stronghold Engineering. Hal Hays claims that
their three-year average Safety Rating based on their calculation meets the Sanitation
District's requirement of the IFB and gave further explanation on their safety rating and
why they should be considered for the award. Staff reviewed the appeal and consulted
with General Counsel. The EMIR reported by the WCIRB is a three-year average. The
IFB does not provide any direction to further average this value which was the method
used by Hal Hays to calculate their EMIR that they included in the Bid. This calculation
method is not supported by IFB requirements and the industry standards and therefore
Hal Hays Construction, Inc., bid was deemed non-responsive to the IFB requirements
and their appeal denied. Staff responded to the appeal concluding that the appeal does
not merit a change to the award recommendation.
CEQA
A Notice of Exemption was filed and recorded with the County of Orange on
January 5, 2011.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Line item: FY2013-14 Update, Page A-11).
The FY2013-14 Update budget for P1-115 was modified twice by Board of Directors'
actions during the current fiscal year. An amount of$145,778 was moved into the
P1-115 budget for permitting costs associated with an agreement with the City of
Fountain Valley that was approved in August 2013. In November 2013, an amount of
$800,000 was moved from the P1-115 budget to create Project No. SP-194 for the
Administration Facilities Implementation Planning. The current P1-115 Budget is
$31,982,778. Project contingency funds will not be used for this construction contract.
Page 3 of 4
Date of Approval Contract Amount Contincencv
08/27/14 $7,323,217 $732,322 (10%)
ATTACHMENT
The following attachment(s) maybe viewed on-line at the OCSD website (Mm w.ocsd.com) with the
complete agenda package:
• Appeal of Award Recommendation Notice Letter (Attached)
• Final Disposition Letter(Attached)
• Construction Contract
WS:dm:gc
Page 4 of 4
P11SA I 2. N, 4t Ern.
Return to Agenda Reporl
CONSTRUCTION INC.
Lirenre#66R60
June 18,2014
Orange County Sanitation District
Aun.INfichelle Chewaing,Contracts Administrator
10844 EOis Avenue
Fountain Valley,CA 92708
Rc: (:..met No. Ill-115A,\laintenance Area Building Improvements and Building I I Demolition
Appeal of Award Recommendation Notice
Dear Ms.Chewing:
This letter is to appeal the in response to the correspondence we received from),ou,dated June 11,2014,in which the Omngc
County Sanitation District determined our bid for the shove mentioned project to be Non-Responsive based on BM
Contractors Safety Declaration.
Hal I-lays Construction, Inc. (III ICI) strongly disakrtecs with this determination and is requesting a formal appeal. We made
the effort prior to the bid and second site visit to personally contact you and discuss this potential issue.We informed you that
if this was based on the current year of 2013 then we would not meet this requirement and would not prepare an estimate and
submit a bid on this project.You requested that we submit an RFI on this,which we did.The RFI was responded to and was
included in a pre-bid addendum.'fhc response confirmed that the EINIR of 1.25 is based on a three year average,not including
the currently reported year.
Based on your verbal discussions with our staff, and the written response to the RFI, we expended substantial costs and
resources to submit a very competitive bid for this project,$1.7 million below the next bidder. We then re-evaluated our bid
and dmcmhined that,based on the substantial amount of self-performed work and our substantially better subcontractor base
and proposals;we were very comfortable with our bid amount for this project.
We have previously provided a detailed explanation of our previous and currently repotted year FINER and demonstrated that
our three-year average from 2010—2012 was 122,slightly below the required 125. We also provided substantiation that our
2014 rate that will be reported on or about July 1,2014,has dropped to 0.82. 1-IHCI takes safety very seriously and provided
you documentation that clearly explains the spike we had in our rate and what has been done to ensure our safety is above
avenge for out industry,as demonstrated by our soon-m-bc reported 2014 EMIT.
III1C1 cannot overlook the substantial resources and cost expended to provide the district with a compliant offering which
met all requirements outlined by the Orange County Sanitation District at the time of bid. I lad your verbal or written response
indicated that you would only look at the currently reported year of 2013,we would not have spent time and effort bidding
this project,nor would have passed on other projects bidding in order to focus on this project.We would like the opportunity
10 discuss the costs to prepare this estimate and potential lost profits with you should this project not be awarded to I II ICI.
We strongly feel that awarding this project to I lal 1 bats Construction, Inc. is in the best interests of the Orange County
Sanimtion District. Ell WI provides a savings of over$1.7 million to the district and has the performance ability,background
and experience to successfully complete this project safely.
Sincerely,
�t
Kirby aye
President/CEO
cc:Rob Thompson,Director of Engineering(rhompsrn@ocsd.com)
Wendy Scvenandt,Project Manager(wscvmandt@ocsd.com)
Jeff Shubik,Senior Engineer(jshubik@ocsd.mm)
Maria Ayala,Clerk of the Board(mayala@oesd.eom)
4181 Latham Soect,Riverside,CA 92501 ♦ (95 1)788-0703 Phone ♦ (951)788-1517 Fox ♦ www.halhay.i.com
RECEIVED
2014 JUN 19 AM 10'. 27
OCSD
Receptionist
Retum to Mende Report
Orange County Sanitation District .
10944 Ellis Avenue,Fountain Valley,CA92709
(714)962-2411 vww.ocsexerscom
Brea
Buena Park July 10, 2014
Via Fax: (951) 275-0752
Fountain Valley Via Email: khaysahalhays.com
& Overnight Mail
Fullerton & Certified Mail with Delivery Confirmation
Kirby Hays
Garden Grove, Hal Hays Construction, Inc.
Huntinton_ Beach 4181 Latham Street
Irvine Riverside, CA 92501
La Habra SUBJECT: OCSD Determination regarding Hal Hays Construction Award Protest
Statement Appealing the Award Recommendation Rejecting Hal Hays
La Palma Construction's Bid as Nonresponsive
LosAlannims RE: PROJECT NO. P1-115A, MAINTENANCE AREA BUILDING
IMPROVEMENTS AND BUILDING H DEMOLITION
himport Beach
, . •_-
The Orange County Sanitation District (OCSD) is in receipt of Hal Hays
Construction, Inc.'s (HHCI) Award Protest Statement dated June 18, 2014,
Santa Ana appealing OCSD's determination of its Bid for the above reference project as non-
SealBeach responsive based on the Bid Submittal Forms, BF-6 Safety Declaration of
Contractor.
Scanlon
OCSD reviewed information provided by HHCI and made its determination to reject
Tuahn the above referenced appeal for the following reasons:
Villa Park
1. P1-115A Contract Documents clearly identify OCSD safety standards and safety
evaluation procedures. IB-13 (B), Bid Evaluation Process expressly requires an
Countyofomnge EMIR rate between 1.01-1.25 at the date and time of Bid Opening.
Costa District As confirmed by HHCI in its response to OCSD Clarification Request No.1
issued on June 5, 2014, HHCI's actual published EMR rate issued by WCIRB is
Mid"y City above 1.25 and therefore exceeds OCSD's safety standard as required by the
Sandary District P1-115A Invitation for Bid (IFB). Therefore, HHCI was deemed non-responsive
'Nine�Ranch to the requirements of the IFB.
vvoti District
2. In response to HHCI's written question submitted on April 8, 2014, OCSD
confirmed the definition of EMR as a computation "over a three year period
excluding the most current year". This definition is an accepted industry
standard which is based on a three year average excluding the most currently
reported year.
The IFB documents and OCSD's written response to HHCI's written question
referenced above do not provide any direction to HHCI to further average this
value to calculate the EMR rate used in it's Bid. Therefore, OCSD disagrees with
HHCI's detailed explanation of the EMR stated in it's Bid and it's calculation
method as described in it's response to OCSD's Clarification Request No.1.
We protect public health and the environment by providing
effective wastewater collection, treatment, and recycling.
H" SAXIrq J/O
N
Mal
�9
E 'h0 !Xf EN��PO�S K. Hays
Page 2 of 2
July 10, 2014
3. Information provided by HHCI regarding its 2014 EMIR available around July 1,
2014 is not applicable, since OCSD's Safety Bid Evaluation is based on the
EMIR rate that is current at the date and time of Bid Opening as stated in the
IFB. The date and time of Bid Opening was on May 6, 2014 at 11:00 a.m.
Therefore, based on the above, OCSD deemed HHCI's Bid non-responsive to the
requirements of the IFB. OCSD's position regarding this determination remains
without change and based on this determination HHCI's appeal of OCSD Award
Recommendation is hereby denied. For the foregoing reasons, OCSD's
recommendation that the Board of Directors let the contract to Stronghold Engineering,
Inc., stands.
Mar DuBois
C tracts, Purchasing Manager
EMS:003994286
cc: R. Thompson
M. Puccio
C. Ambrose
W. Sevenandt
K. Lore
O. Sandoval
Return to Aaenda Report
PART A
CONTRACT AGREEMENT
C-CA-021414
TABLE OF CONTENTS
CONTRACT AGREEMENT
SECTION - 1 GENERAL CONDITIONS..................................................................1
SECTION -2 MATERIALS AND LABOR.................................................................4
SECTION -3 PROJECT..........................................................................................5
SECTION -4 PLANS AND SPECIFICATONS ........................................................5
SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5
SECTION -6 TIME IS OF THE ESSENCE .............................................................6
SECTION -7 EXCUSABLE DELAYS......................................................................7
SECTION -8 EXTRA WORK...................................................................................7
SECTION -9 CHANGES IN PROJECT...................................................................8
SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................8
SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................8
SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF
FUNDS ............................................................................................10
SECTION - 13 COMPLETION.................................................................................11
SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................11
SECTION - 15 SURETY BONDS ............................................................................13
SECTION - 16 INSURANCE....................................................................................14
SECTION - 17 RISK AND INDEMNIFICATION.......................................................22
SECTION - 18 TERMINATION................................................................................22
SECTION - 19 WARRANTY....................................................................................23
SECTION -20 ASSIGNMENT.................................................................................24
SECTION -21 RESOLUTION OF DISPUTES ........................................................24
SECTION -22 SAFETY& HEALTH ........................................................................24
SECTION -23 NOTICES.........................................................................................25
C-CA-021414
Return to Aaenda Report
CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Part of
PROJECT NO. P1-115
TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT
THIS AGREEMENT is made and entered into, to be effective, this July 23, 2014, by and
between Stronghold Engineering Incorporated, hereinafter referred to as"CONTRACTOR" and
the Orange County Sanitation District, hereinafter referred to as "OCSD".
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged,
OCSD and CONTRACTOR agree as follows:
SECTION-1 GENERAL CONDITIONS
CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the
Contract Documents as hereinafter defined, the location of the job site, and the conditions under
which the Work is to be performed have been thoroughly reviewed, and enters into this Contract
based upon CONTRACTOR's investigation of all such matters and is in no way relying upon
any opinions or representations of OCSD. It is agreed that this Contract represents the entire
agreement. It is further agreed that the Contract Documents are each incorporated into this
Contract by reference, with the same force and effect as if the same were set forth at length
herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any
and all of said Contract Documents insofar as they relate in any part or in any way, directly or
indirectly, to the Work covered by this Contract.
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A. Contract Documents Order of Precedence
"Contract Documents" refers to those documents identified in the definition of"Contract
Documents" in the General Conditions—Definitions.
1. In the event of a conflict between one Contract Document and any of the other
Contract Documents, the provisions in the document highest in precedence shall be
controlling. The order of precedence of the Contract Documents is as follows:
a. Supplemental Agreements—the last in time being the first in precedence
b. Addenda issued prior to opening of Bids—the last in time being the first in
precedence
c. Contract Agreement
d. Permits and other regulatory requirements
e. Special Provisions
f. General Conditions (GC)
g. Notice Inviting Bids and Instruction to Bidders
h. Geotechnical Baseline Report(GBR), if attached as a Contract Document
I. Plans and Specifications—in these documents the order of precedence shall be:
i. Specifications (Divisions 01-17)
ii. Plans
H. General Requirements (GR)
iv. Standard Drawings and Typical Details
j. CONTRACTOR'S Bid
2. In the event of a conflict between terms within an individual Contract Document, the
conflict shall be resolved by applying the following principles as appears applicable:
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a. Figured dimensions on the Contract Documents shall govern. Dimensions not
specified shall be as directed by the ENGINEER. Details not shown or
specified shall be the same as similar parts that are shown or specified, or as
directed. Full-size details shall take precedence over scale Drawings as to
shape and details of construction. Specifications shall govern as to material
and workmanship.
b. The Contract Documents calling for the higher quality material or workmanship
shall prevail. Materials or Work described in words, which so applied, have a
well known technical or trade meaning shall be deemed to refer to such
recognized standards. In the event of any discrepancy between any Drawings
and the figures thereon, the figures shall be taken as correct.
C. Scale Drawings, full-size details, and Specifications are intended to be fully
complementary and to agree. Should any discrepancy between Contract
Documents come to the CONTRACTOR's attention, or should an error occur in
the efforts of others, which affect the Work, the CONTRACTOR shall notify the
ENGINEER, in writing, at once. In the event any doubts or questions arise with
respect to the true meaning of the Contract Documents, reference shall be
made to the ENGINEER whose written decision shall be final. If the
CONTRACTOR proceeds with the Work affected without written instructions
from the ENGINEER, the CONTRACTOR shall be fully responsible for any
resultant damage or defect.
d. Anything mentioned in the Specifications and not indicated in the Plans, or
indicated in the Plans and not mentioned in the Specifications, shall be of like
effect as if indicated and mentioned in both. In case of discrepancy in the
Plans or Specifications, the matter shall be immediately submitted to OCSD's
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ENGINEER, without whose decision CONTRACTOR shall not adjust said
discrepancy save only at CONTRACTOR's own risk and expense. The
decision of the ENGINEER shall be final.
In all matters relating to the acceptability of material, machinery or plant equipment;
classifications of material or Work; the proper execution, progress or sequence of the
Work; and quantities interpretation of the Contract Documents, the decision of the
ENGINEER shall be final and binding, and shall be a condition precedent to any payment
under the Contract, unless otherwise ordered by the Board of Directors.
B. Definitions
Capitalized terms used in this Contract are defined in the General Conditions, Definitions.
Additional terms may be defined in the Special Provisions.
SECTION-2 MATERIALS AND LABOR
CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at
CONTRACTOR'S own expense, all labor and materials necessary, except such as are
mentioned in the Specifications to be furnished by OCSD, to construct and complete the
Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or
materials when due, OCSD may settle such claims by making demand upon the Surety to this
Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may
settle them directly and deduct the amount of payments from the Contract Price and any
amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any
laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to
deduct all of its costs and expenses incurred relating thereto, including but not limited to
administrative and legal fees.
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SECTION-3 PROJECT
The Project is described as:
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Part of
PROJECT NO. P1-115
TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT
SECTION -4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Part of
PROJECT NO. P1-115
TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT
Said Plans and Specifications and any revision, amendments and addenda thereto are attached
hereto and incorporated herein as part of this Contract and referred to by reference.
SECTION—5 TIME OF COMMENCEMENT AND COMPLETION
CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth
in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently
prosecute the Work to completion within 730 calendar days from the date of the "Notice to
Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in
Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for
completion includes 15 calendar days determined by OCSD likely to be inclement weather when
CONTRACTOR will be unable to work.
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For purposes of granting time extensions pursuant to the Section entitled Extension of Time for
Delay of the General Conditions resulting from code corrections arising from city inspection and
unknown code variances which were not foreseeable, the CONTRACTOR and OCSD agree
that the time for completion includes sixty (60) calendar days of delay, as determined by OCSD
to be for code corrections that may delay the CONTRACTOR's plan for completing the Work.
In scheduling the Work, the CONTRACTOR shall account for the above referenced number of
work days for which the effects of code corrections are expected to impede the Work with a
Code Corrections activity preceded by the last construction activity and precedent to the
Inclement Weather activity that precedes Substantial completion.
The CONTRACTOR shall notify the ENGINEER in writing within seven (7)days of such lost
work day(s) and correspondingly reduce the Code Corrections activity duration as such day(s)
occur and are recognized and accepted by the ENGINEER.
In addition, CONTRACTOR shall accomplish such milestones within the periods of performance
set forth in Appendix A of the Special Provisions entitled "Work Completion Schedule."
SECTION—6 TIME IS OF THE ESSENCE
Time is of the essence of this Contract. As required by the Contract Documents,
CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples,
and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in
conformance with an approved construction progress schedule. CONTRACTOR shall
coordinate the Work covered by this Contract with that of all other contractors, subcontractors
and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and
accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with
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Section 5 herein. OCSD shall have the right to assert complete control of the premises on
which the Work is to be performed and shall have the right to decide the time or order in which
the various portions of the Work shall be installed or the priority of the work of subcontractors,
and, in general, all matters representing the timely and orderly conduct of the Work of
CONTRACTOR on the premises.
SECTION—7 EXCUSABLE DELAYS
CONTRACTOR shall only be excused for any delay in the prosecution or completion of the
Project as specifically provided in General Conditions, "Extensions for Delay", and the General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
Extensions of time and extra compensation arising from such excusable delays will be
determined in accordance with the General Conditions, "Extension of Time for Delay" and
"Contract Price Adjustments and Payments", and extensions of time and extra compensation as
a result of incurring undisclosed utilities will be determined in accordance with General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
OCSD's decision will be conclusive on all parties to this Contract.
SECTION—S EXTRA WORK
The Contract Price as set forth in Section 11, includes compensation for all Work performed by
CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated
representative of OCSD specifying the exact nature of the Extra Work and the amount of extra
compensation to be paid all as more particularly set forth in Section 9 hereof and the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated
Changes", and "Contract Price Adjustments and Payments".
In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD
shall extend the time fixed in Section 5 for completion of the Project by the number of days, if
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any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by
OCSD's ENGINEER. The decision of the ENGINEER shall be final.
SECTION-9 CHANGES IN PROJECT
OCSD may at any time, without notice to any Surety, by Change Order, make any changes in the
Work within the general scope of the Contract Document, including but not limited to changes:
1. In the Specifications (including Drawings and designs);
2. In the time, method or manner of performance of the Work;
3. In OCSD-furnished facilities, equipment, materials, services or site; or
4. Directing acceleration in the performance of the Work.
No change of period of performance or Contract Price, or any other change in the Contract
Documents, shall be binding until the Contract is modified by a fully executed Change Order.
All Change Orders shall be issued in accordance with the requirements set forth in the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER
Initiated Changes'.
SECTION — 10 LIQUIDATED DAMAGES FOR DELAY
Liquidated Damages shall be payable in the amounts and upon the occurrence of such events
or failure to meet such requirements or deadlines as provided in the Special Provisions,
"Liquidated Damages and Incentives."
SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT
A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the
faithful performance of this Contract, subject to any additions or deductions as provided in
approved Change Orders, the sum of Seven Million Three Hundred Twenty-Three
Thousand Two Hundred Seventeen Dollars ($7,323,217) as itemized on the Attached
Exhibit W'.
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Upon satisfaction of the conditions precedent to payment set forth in the General
Requirements, Additional General Requirements and General Conditions (including but
not limited to Sections entitled "Mobilization Payment Requirements"and "Payment
Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the
CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the
commencement of the job a schedule which shows:
1. A minimum of one payment to be made to the CONTRACTOR for each successive
four(4)week period as the Work progresses, and
2. The due dates for the CONTRACTOR to submit requests for payment to meet the
payment schedule.
After the initial Net Progress Payment, and provided the CONTRACTOR submits the
request for payment prior to the end of the day required to meet the payment schedule,
the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly
payment date set forth in the schedule.
Payments shall be made on demands drawn in the manner required by law, accompanied
by a certificate signed by the ENGINEER, stating that the Work for which payment is
demanded has been performed in accordance with the terms of the Contract Documents,
and that the amount stated in the certificate is due under the terms of the Contract. Payment
applications shall also be accompanied with all documentation, records, and releases as
required by the Contract, Exhibit A, Schedule of Prices, and General Conditions, "Payment
for Work—General". The Total amount of Progress Payments shall not exceed the actual
value of the Work completed as certified by OCSD's ENGINEER. The processing of
payments shall not be considered as an acceptance of any part of the Work.
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B. As used in this Section, the following defined terms shall have the following meanings:
1. "Net Progress Payment' means a sum equal to the Progress Payment less the
Retention Amount and other qualified deductions (Liquidated Damages, stop
payment notices, etc.).
2. "Progress Payment' means a sum equal to:
a. the value of the actual Work completed since the commencement of the Work
as determined by OCSD;
b. plus the value of material suitably stored at the worksite, treatment plant or
approved storage yards subject to or under the control of OCSD since the
commencement of the Work as determined by OCSD;
C. less all previous Net Progress Payments;
d. less all amounts of previously qualified deductions;
e. less all amounts previously retained as Retention Amounts.
3. "Retention Amount'for each Progress Payment means the percentage of each
Progress Payment to be retained by OCSD to assure satisfactory completion of the
Contract. The amount to be retained from each Progress Payment shall be
determined as provided in the General Conditions—"Retained Funds; Substitution of
Securities."
SECTION-12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS
Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole
expense, substitute securities as provided in General Conditions—"Retained Funds;
Substitution of Securities."
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SECTION-13 COMPLETION
Final Completion and Final Acceptance shall occur at the time and in the manner specified in the
General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A-
Schedule of Prices.
Upon receipt of all documentation, records, and releases as required by the Contract from the
CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General
Conditions.
SECTION — 14 CONTRACTOR'S EMPLOYEES COMPENSATION
A. Davis-Bacon Act:
CONTRACTOR will pay and will require all Subcontractors to pay all employees on said
Project a salary or wage at least equal to the prevailing rate of per diem wages as
determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each
craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon
Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00)and
when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If
the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be
complied with are incorporated herein as a part of this Contract and referred to by
reference.
B. General Prevailing Rate:
OCSD has been advised by the State of California Director of Industrial Relations of its
determination of the general prevailing rate of per diem wages and the general prevailing
rate for legal holiday and overtime Work in the locality in which the Work is to be
performed for each craft or type of Work needed to execute this Contract, and copies of
the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR
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agrees that not less than said prevailing rates shall be paid to workers employed on this
public works Contract as required by Labor Code Section 1774 of the State of California.
Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of
per diem wages at its principal office and at each job site, which shall be made available to
any interested party upon request.
C. Forfeiture for Violation:
CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for
each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or
any Subcontractor under it) less than the prevailing rate of per diem wages as set by the
Director of Industrial Relations, in accordance with Sections 1770-1780 of the California
Labor Code for the Work provided for in this Contract, all in accordance with Section 1775
of the Labor Code of the State of California.
D. ADDrentices:
Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding
the employment of apprentices are applicable to this Contract and the CONTRACTOR
shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)
or more.
E. Workday:
In the performance of this Contract, not more than eight(8) hours shall constitute a day's
work, and the CONTRACTOR shall not require more than eight(8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B)above.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the
Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by
CONTRACTOR or any Subcontractor for each calendar day during which any worker is
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required or permitted to labor more than eight(6) hours in any one calendar day and forty
(40) hours in any one week in violation of said Article. CONTRACTOR shall keep an
accurate record showing the name and actual hours worked each calendar day and each
calendar week by each worker employed by CONTRACTOR in connection with the
Project.
F. Record of Waaes: Inspection:
CONTRACTOR agrees to maintain accurate payroll records showing the name, address,
social security number, work classification, straight-time and overtime hours worked each
day and week, and the actual per diem wages paid to each journeyman, apprentice,
worker or other employee employed by it in connection with the Project and agrees to
require that each of its Subcontractors do the same. All payroll records shall be certified
as accurate by the applicable CONTRACTOR or Subcontractor or its agent having
authority over such matters.
CONTRACTOR further agrees that its payroll records and those of its Subcontractors shall
be available to the employee or employee's representative, the Division of Labor
Standards Enforcement, and the Division of Apprenticeship Standards and shall comply
with all of the provisions of Labor Code Section 1776, in general. Penalties for non-
compliance with the requirements of Section 1776 may be deducted from Project
payments per the requirements of Section 1776.
SECTION— 15 SURETY BONDS
CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds
approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of
the Contract amount, to guarantee the faithful performance of the Work, and the other in the
amount of one hundred percent (100%)of the Contract amount to guarantee payment of all
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claims for labor and materials furnished. As changes to the Contract occur via approved
Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to
maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds
are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the
State Insurance Commissioner to do business in California. The Performance Bond shall
remain in full force and effect through the warranty period, as specified in Section 19 below. All
Bonds required to be submitted relating to this Contract must comply with California Code of
Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety
insurer under penalty of perjury, or the fact of execution of each Bond shall be duly
acknowledged before an officer authorized to take and certify acknowledgments, and either one
of the following conditions shall be satisfied:
A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by-
laws, or other instrument, duly certified by the proper authority and attested by the seal of
the insurer entitling or authorizing the person who executed the Bond to do so for and on
behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or
B. A copy of a valid power of attorney is attached to the Bond.
SECTION— 16 INSURANCE
CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against
claims for injuries to persons, or damages to property which may arise from or in connection
with the performance of the Work hereunder, and the results of that Work by CONTRACTOR,
its agents, representatives, employees, or Subcontractors, in amounts equal to the
requirements set forth below. CONTRACTOR shall not commence Work under this Contract
until all insurance required under this Section is obtained in a form acceptable to OCSD, nor
shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all
insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all
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of the foregoing insurance coverages in force through the point at which the Work under this
Contract is fully completed and accepted by OCSD pursuant to the provisions of the General
Conditions, "Final Acceptance and Final Completion". Furthermore, CONTRACTOR shall
maintain all of the foregoing insurance coverages in full force and effect throughout the warranty
period, commencing on the date of Final Acceptance. The requirement for carrying the
foregoing insurance shall not derogate from the provisions for indemnification of OCSD by
CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the
obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for
and maintain in full force and effect during the life of this Contract, inclusive of all changes to the
Contract Documents made in accordance with the provisions of the General Conditions,
"Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated
Changes", the following insurance in amounts not less than the amounts specified. OCSD
reserves the right to amend the required limits of insurance commensurate with the
CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter
OCSD premises/worksite without possessing the required insurance coverage.
CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by
agencies from whom permits shall be obtained for the Work and any other third parties from
whom third party agreements are necessary to perform the Work (collectively, the "Third
Parties'), The Special Provisions may list such requirements and sample forms and
requirements from such Third Parties may be included in an attachment to the General
Requirements. CONTRACTOR bears the responsibility to discover and comply with all
requirements of Third Parties, including meeting specific insurance requirements, that are
necessary for the complete performance of the Work. To the extent there is a conflict between
the Third Parties' insurance requirements and those set forth by OCSD herein, the
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requirement(s) providing the more protective coverage for both OSCD and the Third Parties
shall control and be purchased and maintained by CONTRACTOR.
A. Limits of Insurance
1. General Liability: Six Million Dollars ($6,000,000) per occurrence and a general
aggregate limit of Six Million Dollars ($6,000,000)for bodily injury, personal injury
and property damage. Coverage shall include each of the following:
a. Premises-Operations.
b. Products and Completed Operations, with limits of at least Six Million Dollars
($6,000,000) per occurrence and a general aggregate limit of Six Million Dollars
($6,000,000)which shall be in effect at all times during the warranty period set
forth in the Warranty section herein, and as set forth in the General Conditions,
"Warranty(CONTRACTOR's Guarantee)", plus any additional extension or
continuation of time to said warranty period that may be required or authorized
by said provisions.
C. Broad Form Property Damage, expressly including damage arising out of
explosion, collapse, or underground damage.
d. Contractual Liability, expressly including the indemnity provisions assumed
under this Contract.
e. Separation of Insured Clause, providing that coverage applies separately to
each insured, except with respect to the limits of liability.
f. Independent CONTRACTOR's Liability.
To the extent first dollar coverage, including defense of any claim, is not
available to OCSD or any other additional insured because of any SIR,
deductible, or any other form of self insurance, CONTRACTOR is obligated to
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assume responsibility of insurer until the deductible, SIR or other condition of
insurer assuming its defense and/or indemnity has been satisfied.
CONTRACTOR shall be responsible to pay any deductible or SIR.
g. If a crane will be used, the General Liability insurance will be endorsed to add
Riggers Liability coverage or its equivalent to cover the usage of the crane and
exposures with regard to the crane operators, riggers and others involved in
using the crane.
h. If divers will be used, the General Liability insurance will be endorsed to cover
marine liability or its equivalent to cover the usage of divers.
2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile
Liability Insurance on a comprehensive form covering all owned, non-owned, and
hired automobiles, trucks, and other vehicles providing the following minimum limits
of liability coverage:
Either(1)a combined single limit of Two Million Dollars ($2,000,000) and a general
aggregate limit of Two Million Dollars ($2,000,000)for bodily injury, personal injury
and property damage;
Or alternatively, (2) Two Million Dollars ($2,000,000) per person for bodily injury and
One Million Dollars ($1,000,000) per accident for property damage.
3. Umbrella Excess Liability: The minimum limits of general liability and automobile
liability insurance required, as set forth above, shall be provided for either in a single
policy of primary insurance or a combination of policies of primary and umbrella
excess coverage. Excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits for
general liability and automobile liability.
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4. Worker's Compensation/EmDlover's Liability: CONTRACTOR shall provide such
Worker's Compensation Insurance as required by the Labor Code of the State of
California, including employer's liability with a minimum limit of One Million Dollars
($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act
liability may exist, the insurance required herein shall include coverage with regard to
Jones Act claims.
Where permitted by law, CONTRACTOR hereby waives all rights of recovery by
subrogation because of deductible clauses, inadequacy of limits of any insurance
policy, limitations or exclusions of coverage, or any other reason against OCSD, its
or their officers, agents, or employees, and any other contractor or subcontractor
performing Work or rendering services on behalf of OCSD in connection with the
planning, development and construction of the Project. In all its insurance coverages
related to the Work, CONTRACTOR shall include clauses providing that each insurer
shall waive all of its rights of recovery by subrogation against OCSD, its or their
officers, agents, or employees, or any other contractor or subcontractor performing
Work or rendering services at the Project. Where permitted by law, CONTRACTOR
shall require similar written express waivers and insurance clauses from each of its
Subcontractors of every tier. A waiver of subrogation shall be effective as to any
individual or entity, even if such individual or entity (a)would otherwise have a duty
of indemnification, contractual or otherwise, (b)did not pay the insurance premium,
directly or indirectly, and (c)whether or not such individual or entity has an insurable
interest in the property damaged.
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5. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums
shown in this Section, OCSD requires and shall be entitled to coverage for the higher
limits maintained by the CONTRACTOR.
B. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by OCSD. At
the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and
employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD
guaranteeing payment of losses and related investigations, claim administration, and
defense expenses.
C. Other Insurance Provisions
1. Each such policy of General Liability Insurance and Automobile Liability Insurance
shall be endorsed to contain, the following provisions:
a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all
public agencies from whom permits will be obtained, and their Directors,
officers, agents, and employees are hereby declared to be additional insureds
under the terms of this policy, but only with respect to the operations of
CONTRACTOR at or from any of the sites of OCSD in connection with this
Contract, or acts and omissions of the additional insured in connection with its
general supervision or inspection of said operations related to this Contract.
b. Insurance afforded by the additional insured endorsement shall apply as
primary insurance, and other insurance maintained by OCSD shall be excess
only and not contributing with insurance provided under this policy.
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2. Each insurance policy required herein shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30)days prior written notice by
certified mail, return receipt requested, and that coverage shall not be cancelled for
non-payment of premium except after ten (10)days prior written notice by certified
mail, return receipt requested. Should there be changes in coverage or an increase
in deductible or SIR amounts, CONTRACTOR undertakes to procure a manuscript
endorsement from its insurer giving 30 days prior notice of such an event to OCSD,
or to have its insurance broker/agent send to OCSD a certified letter describing the
changes in coverage and any increase in deductible or SIR amounts. The certified
letter must be sent Attention: Risk Management and shall be received not less than
twenty (20) days prior to the effective date of the change(s). The letter must be
signed by a Director or Officer of the broker/agent and must be on company
letterhead, and may be sent via e-mail in pdf format.
3. Coverage shall not extend to any indemnity coverage for the active negligence of
any additional insured in any case where an agreement to indemnify the additional
insured would be invalid under California Civil Code Section 2782(b).
4. If required by a public agency from whom permit(s)will be obtained, each policy of
General Liability Insurance and Automobile Liability Insurance shall be endorsed to
specify by name the public agency and its legislative members, officers, agents,
CONSULTANTS, and employees, to be additional insureds.
D. Acceptability of Insurers
Insurers must have an "A-", or better, Policyholder's Rating, and a Financial Rating of at
least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide.
OCSD recognizes that State Compensation Insurance Fund has withdrawn from
participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept
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State Compensation Insurance Fund for the required policy of worker's compensation
insurance, subject to OCSD's option, at any time during the term of this Contract, to
require a change in insurer upon twenty (20)days written notice. Further, OCSD will
require CONTRACTOR to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20)days of written notice to
CONTRACTOR by OCSD or its agent.
E. Verification of Coverage
CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements
affecting coverage. Said policies and endorsements shall conform to the requirements
herein stated. All certificates and endorsements are to be received and approved by
OCSD before Work commences. OCSD reserves the right to require complete, certified
copies of all required insurance policies, including endorsements, affecting the coverage
required by these Specifications at any time.
F. Subcontractors
CONTRACTOR shall be responsible to establish insurance requirements for any
Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types
reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations
and work. OCSD and any public agency issuing permits for the Project must be named as
"Additional Insured"on any General Liability or Automobile Liability policy obtained by a
Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of
all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting
coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced
required documents.
CONFORMED C-CA-021414
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G. Required Forms and Endorsements
1. Required ACORD Form
a. Certificate of Liability Form 25-S (7/97)
2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are
shown, they are listed in order of preference)
In the event any of the following forms are cancelled by Insurance Services Office,
Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied.
a. Commercial General Liability Form CG-0001 10 01
b. Additional Insured Including Form CG-2010 10 01 and
Products-Completed Operations Form CG-2037 10 01
C. Waiver of Transfer of Rights of Form CG-2404 11 85; or
Recovery Against Others to Us/ Form CG-2404 10 93
Waiver of Subrogation
3. Required State Compensation Insurance Fund Endorsements
a. Waiver of Subrogation Endorsement No. 2570
b. Cancellation Notice Endorsement No. 2065
4. Additional Required Endorsements
a. Notice of Policy Termination Manuscript Endorsement
SECTION—17 RISK AND INDEMNIFICATION
All Work covered by this Contract done at the site of construction or in preparing or delivering
materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save,
indemnify, defend, and keep OCSD and others harmless as more specifically set forth in
General Conditions, "General Indemnification".
SECTION-18 TERMINATION
This Contract may be terminated in whole or in part in writing by OCSD in the event of
substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may
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be terminated by OCSD for its convenience provided that such termination is effectuated in a
manner and upon such conditions set forth more particularly in General Conditions,
"Termination for Default" and/or"Termination for Convenience", provided that no termination
may be effected unless proper notice is provided to CONTRACTOR at the time and in the
manner provided in said General Conditions. If termination for default or convenience is
effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be
made at the time and in the manner provided in the General Conditions, "Termination for
Default" and "Termination for Convenience".
SECTION—19 WARRANTY
The CONTRACTOR agrees to perform all Work under this Contract in accordance with the
Contract Documents, including OCSD's designs, Drawings and Specifications.
The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final
Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final
Completion" that the completed Work is free from all defects due to faulty materials, equipment
or workmanship and that it shall promptly make whatever adjustments or corrections which may
be necessary to cure any defects, including repairs of any damage to other parts of the system
resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of
observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs,
corrections or other work made necessary by such defects, OCSD may do so and charge the
CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any
corrected deficiency until the later of(1)the remainder of the original one-year warranty period;
or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and
the Payment Bond shall remain in full force and effect through the guarantee period.
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The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's
other express or implied assurances under this Contract, including but not limited to specific
manufacturer or other extended warranties specified in the Plans and Specifications, or state
law and in no way diminish any other rights that OCSD may have against the CONTRACTOR
for faulty materials, equipment or Work.
SECTION-20 ASSIGNMENT
No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be
received hereunder, will be recognized by OCSD unless such assignment has had prior written
approval and consent of OCSD and the Surety.
SECTION—21 RESOLUTION OF DISPUTES
OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract
Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which
arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims
provisions as set forth in the General Conditions and as otherwise required by law.
SECTION—22 SAFETY & HEALTH
CONTRACTOR shall comply with all applicable safety and health requirements mandated by
federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as
well as these Contract Documents, including but not limited to the General Requirements,
Section entitled "Safety" and Exhibit B OCSD Safety Standards.
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SECTION-23 NOTICES
Any notice required or permitted under this Contract may be given by ordinary mail at the
address set forth below. Any parry whose address changes shall notify the other party in
writing.
TO OCSD: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Clerk of the Board
Copy to: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Construction Manager
Bradley R. Hogin, Esquire
Woodruff, Spradlin &Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: Stronghold Engineering Incorporated
2000 Market Street
Riverside, CA 92501
Copy to: Beverly A. Bailey, President & CEO
Stronghold Engineering Incorporated
2000 Market Street
Riverside, CA 92501
CONFORMED C-CA-021414
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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: Stronghold Engineering Incorporated
2000 Market Street
Riverside, CA 92501
By
Printed Name
Its
CONTRACTOR's State License No. 787490 (Expiration Date— 11/3012014)
OCSD: Orange County Sanitation District
By
Chair, Board of Directors
By
Maria Ayala
Clerk of the Board
By
Marc Dubois
Contracts, Purchasing and Materials
Management Division Manager
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EXHIBIT A
SCHEDULE OF PRICES
C-EXA-071012
TABLE OF CONTENTS
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION ..............................................................................1
EXA-2 PROGRESS PAYMENTS....................................................................................1
EXA-3 RETENTION AND ESCROW ACCOUNTS .........................................................1
EXA-4 STOP PAYMENT NOTICE ..................................................................................3
EXA-5 PAYMENT TO SUBCONTRACTORS..................................................................3
EXA-6 PAYMENT OF TAXES.........................................................................................3
EXA-7 FINAL PAYMENT ................................................................................................4
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT.....5
ATTACHMENT 1 CERTIFICATION FOR REQUEST FOR PAYMENT........................7
ATTACHMENT 2 SCHEDULE OF PRICES ...........................................................8
C-EXA-071012
Return to Aaenda Report
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION
CONTRACTOR will be paid the Contract Price according to the Schedule of
Prices, and all other applicable terms and conditions of the Contract
Documents.
EXA-2 PROGRESS PAYMENTS
Progress payments will be made in accordance with all applicable terms and
conditions of the Contract Documents, including, but not limited to:
1. Contract Agreement—Section 11 —"Contract Price and Method of
Payment;"
2. General Conditions—"Payment—General",
3. General Conditions—"Payment—Applications for Payment":
4. General Conditions—"Payment— Mobilization Payment Requirements;"
5. General Conditions—"Payment— Itemized Breakdown of Contract Lump
Sum Prices";
6. General Conditions—"Contract Price Adjustments and Payments";
7. General Conditions—"Suspension of Payments";
8. General Conditions—"OCSD's Right to Withhold Certain Amounts and
Make Application Thereof"; and
9. General Conditions—"Final Payment."
EXA-3 RETENTION AND ESCROW ACCOUNTS
A. Retention:
OCSD shall retain a percentage of each progress payment to assure
satisfactory completion of the Work. The amount to be retained from each
progress payment shall be determined as provided in General Conditions—
"Retained Funds; Substitution of Securities". In all contracts between
CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not
exceed the percentage specified in the Contract Documents.
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B. Substitution of Securities:
CONTRACTOR may, at its sole expense, substitute securities as provided in
General Conditions—"Retained Funds; Substitution of Securities." Payment of
Escrow Agent:
In lieu of substitution of securities as provided above, the CONTRACTOR may
request and OCSD shall make payment of retention earned directly to the
escrow agent at the expense of the CONTRACTOR. At the expense of the
CONTRACTOR, the CONTRACTOR may direct the investment of the
payments into securities consistent with Government Code §16430 and the
CONTRACTOR shall receive the interest earned on the investments upon the
same terms provided for in this article for securities deposited by the
CONTRACTOR. Upon satisfactory completion of the Contract, the
CONTRACTOR shall receive from the escrow agent all securities, interest and
payments received by the escrow agent from OCSD, pursuant to the terms of
this article. The CONTRACTOR shall pay to each Subcontractor, not later than
twenty (20)calendar days after receipt of the payment, the respective amount
of interest earned, net of costs attributed to retention withheld from each
Subcontractor, on the amount of retention withheld to ensure the performance
of the Subcontractor. The escrow agreement used by the escrow agent
pursuant to this article shall be substantially similar to the form set forth in
§22300 of the California Public Contract Code.
C. Release of Retention:
Upon Final Acceptance of the Work, the CONTRACTOR shall submit an
invoice for release of retention in accordance with the terms of the Contract.
D. Additional Deductibles:
In addition to the retentions described above, OCSD may deduct from each
progress payment any or all of the following:
1. Liquidated Damages that have occurred as of the date of the application for
progress payment;
2. Deductions from previous progress payments already paid, due to OCSD's
discovery of deficiencies in the Work or non-compliance with the
Specifications or any other requirement of the Contract;
3. Sums expended by OCSD in performing any of the CONTRACTOR'S
obligations under the Contract that the CONTRACTOR has failed to
perform, and;
4. Other sums that OCSD is entitled to recover from the CONTRACTOR
under the terms of the Contract, including without limitation insurance
deductibles and assessments.
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The failure of OCSD to deduct any of the above-identified sums from a
progress payment shall not constitute a waiver of OCSD's right to such sums or
to deduct them from a later progress payment.
EXA-4 STOP PAYMENT NOTICE
In addition to other amounts properly withheld under this article or under other
provisions of the Contract, OCSD shall retain from progress payments
otherwise due the CONTRACTOR an amount equal to one hundred twenty-five
percent (125%)of the amount claimed under any stop payment notice under
Civil Code§9350 at. seq. or other lien filed against the CONTRACTOR for
labor, materials, supplies, equipment, and any other thing of value claimed to
have been furnished to and/or incorporated into the Work; or for any other
alleged contribution thereto. In addition to the foregoing and in accordance with
Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop
payment notices by refusing to release funds held in escrow pursuant to public
receipt of a release of stop payment notice executed by a stop payment notice
claimant, a slop payment notice release bond, an order of a court of competent
jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR
has resolved such claim by settlement.
EXA-5 PAYMENT TO SUBCONTRACTORS
Requirements
1. The CONTRACTOR shall pay all Subcontractors for and on account of
Work performed by such Subcontractors, not later than seven (7) days after
receipt of each progress payment as required by the California Business
and Professions Code §7108.5. Such payments to Subcontractors shall be
based on the measurements and estimates made pursuant to article
progress payments provided herein.
2. Except as specifically provided by law, the CONTRACTOR shall pay all
Subcontractors any and all retention due and owing for and on account of
Work performed by such Subcontractors not later than seven (7)days after
CONTRACTOR'S receipt of said retention proceeds from OCSD as
required by the California Public Contract Code§7107.
EXA-5 PAYMENT OF TAXES
Unless otherwise specifically provided in this Contract, the Contract Price
includes full compensation to the CONTRACTOR for all taxes. The
CONTRACTOR shall pay all federal, state, and local taxes, and duties
applicable to and assessable against any Work, including but not limited to
retail sales and use, transportation, export, import, business, and special taxes.
The CONTRACTOR shall ascertain and pay the taxes when due. The
CONTRACTOR will maintain auditable records, subject to OCSD reviews,
confirming that tax payments are current at all times.
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CONTRACT NO.P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
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EXA-7 FINAL PAYMENT
After Final Acceptance of the Work, as more particularly set forth in the
General Conditions, "Final Acceptance and Final Completion", and after
Resolution of the Board authorizing final payment and satisfaction of the
requirements as more particularly set forth in General Conditions—"Final
Payment", a final payment will be made as follows:
1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an
application for Final Payment to OCSD, including:
a. The proposed total amount due the CONTRACTOR, segregated by
items on the payment schedule, amendments, Change Orders, and
other bases for payment;
b. Deductions for prior progress payments;
c. Amounts retained;
d. A conditional waiver and release on final payment for each
Subcontractor(per Civil Code Section 8136);
e. A conditional waiver and release on final payment on behalf of the
CONTRACTOR (per Civil Code Section 8136);
f. List of Claims the CONTRACTOR intends to file at that time or a
statement that no Claims will be filed,
g. List of pending unsettled claims, stating claimed amounts, and copies of
any and all complaints and/or demands for arbitration received by the
CONTRACTOR; and
h. For each and every claim that resulted in litigation or arbitration which
the CONTRACTOR has settled, a conformed copy of the Request for
Dismissal with prejudice or other satisfactory evidence the arbitration is
resolved.
2. The application for Final Payment shall include complete and legally
effective releases or waivers of liens and stop payment notices satisfactory
to OCSD, arising out of or fled in connection with the Work. Prior progress
payments shall be subject to correction in OCSD's review of the application
for Final Payment. Claims filed with the application for Final Payment must
be otherwise timely under the Contract and applicable law.
3. Within a reasonable time, OCSD will review the CONTRACTOR'S
application for Final Payment. Any recommended changes or corrections
will then be forwarded to the CONTRACTOR. Within ten (10) calendar days
after receipt of recommended changes from OCSD, the CONTRACTOR will
make the changes, or list Claims that will be filed as a result of the
C-EXA-071012 CONFORMED
CONTRACT NO. P1-115A
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changes, and shall submit the revised application for Final Payment. Upon
acceptance by OCSD, the revised application for Final Payment will
become the approved application for Final Payment.
4. If no Claims have been filed with the initial or any revised application for
Final Payment, and no Claims remain unsettled within thirty (30) calendar
days after Final Acceptance of the Work by OCSD, and agreements are
reached on all issues regarding the application for Final Payment, OCSD,
in exchange for an executed release, satisfactory in form and substance to
OCSD, will pay the entire sum found due on the approved application for
Final Payment, including the amount, if any, allowed on settled Claims.
5. The release from the CONTRACTOR shall be from any and all Claims
arising under the Contract, except for Claims that with the concurrence of
OCSD are specifically reserved, and shall release and waive all unreserved
Claims against OCSD and its officers, directors, employees and authorized
representatives. The release shall be accompanied by a certification by the
CONTRACTOR that:
a. It has resolved all Subcontractors, Suppliers and other Claims that are
related to the settled Claims included in the Final Payment;
b. It has no reason to believe that any party has a valid claim against the
CONTRACTOR or OCSD which has not been communicated in writing
by the CONTRACTOR to OCSD as of the date of the certificate;
c. All warranties are in full force and effect, and;
d. The releases and the warranties shall survive Final Payment.
6. If any claims remain open, OCSD may make Final Payment subject to
resolution of those claims. OCSD may withhold from the Final Payment an
amount not to exceed one hundred fifty percent (150%a)of the sum of the
amounts of the open claims, and one hundred twenty-five percent (125%)
of the amounts of open stop payment notices referred to in article entitled
stop payment notices herein.
7. The CONTRACTOR shall provide an unconditional waiver and release on
final payment from each Subcontractor and Supplier providing Work under
the Contract(per Civil Code Section 8138) and an unconditional waiver and
release on final payment on behalf of the CONTRACTOR (per Civil Code
Section 8138)within thirty (30)days of receipt of Final Payment.
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT
Notwithstanding OCSD's acceptance of the application for Final Payment and
irrespective of whether it is before or after Final Payment has been made,
OCSD shall not be precluded from subsequently showing that:
1. The true and correct amount payable for the Work is different from that
previously accepted;
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CONTRACT NO.P1-115A
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2. The previously-accepted Work did not in fad conform to the Contract
requirements, or;
3. A previous payment or portion thereof for Work was improperly made.
OCSD also shall not be stopped from demanding and recovering damages
from the CONTRACTOR, as appropriate, under any of the foregoing
circumstances as permitted under the Contract or applicable law.
C-EXA-071012 CONFORMED
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 6 of 8
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ATTACHMENTI
CERTIFICATION FOR REQUEST FOR PAYMENT
I hereby certify under penalty of perjury as follows:
That the claim for payment is in all respects true, correct; that the services mentioned
herein were actually rendered and/or supplies delivered to OCSD in accordance with the
Contract.
I understand that it is a violation of both the federal and California False Claims Ads to
knowingly present or cause to be presented to OCSD a false claim for payment or
approval.
A claim includes a demand or request for money. It is also a violation of the False
Claims Ads to knowingly make use of a false record or statement to get a false claim
paid. The term "knowingly" includes either actual knowledge of the information,
deliberate ignorance of the truth or falsity of the information, or reckless disregard for the
truth or falsity of the information. Proof of specific intent to defraud is not necessary
under the False Claims Acts. I understand that the penalties under the Federal False
Claims Ad and State of California False Claims Act are non-exclusive, and are in
addition to any other remedies which OCSD may have either under contract or law.
I hereby further certify, to the best of my knowledge and belief, that:
1. The amounts requested are only for performance in accordance with the
Specifications, terms, and conditions of the Contract;
2. Payments to Subcontractors and Suppliers have been made from previous payments
received under the Contract, and timely payments will be made from the proceeds of
the payment covered by this certification;
3. This request for progress payments does not include any amounts which the prime
CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in
accordance with the terms and conditions of the subcontract; and
4. This certification is not to be construed as Final Acceptance of a Subcontractor's
performance.
Name
Title
Date
CONFORMED C-EXA-071012
CONTRACT NO.P1-115A
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ATTACHMENT
SCHEDULE OF PRICES
See next pages from the Bid Submittal Forms (Stronghold Engineering, Inc.)
BF-14 Schedule of Prices, Pages 1-8
C-EXA-071012 CONFORMED
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 8 of 8
Return b Anenda Report
Bid Submitted By:Stronghold Engineering, Inc.
(Name of Firm)
BF-14 SCHEDULE OF PRICES
INSTRUCTIONS
A. General
For Unit Prices, it is understood that the following quantities are approximate only and are
solely for the purpose of estimating the comparison of Bids, and that the actual value of Work
will be computed based upon the actual quantities in the completed Work,whether they be
more or less than those shown. CONTRACTOR'S compensation for the Work under the
Contract Documents will be computed based upon the lump sum amount of the Contract at
time of award, plus any additional or deleted costs approved by OCSD via approved Change
Orders, pursuant to the Contract Documents.
Bidder shall separately price and accurately reflect costs associated with each line item,
leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized
representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid.
Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items, which, in summary,
provides that the total price for each item shall be based on the Unit Price listed for each item
multiplied by the quantity; and the correct Total Price for each item shall be totaled to
determine the Total Amount of Bid.
All applicable costs including overhead and profit shall be reflected in the respective unit costs
and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work,
including profit, overhead, etc., unless otherwise specified in the Contract Documents. All
applicable sales taxes, state and/or federal and any other special taxes, patent rights or
royalties shall be included in the prices Quoted in this Bid.
B. Basis of Award
AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST
RESPONSIVE AND RESPONSIBLE BID. THE LOWEST BID IS DEFINED AS THE"TOTAL
AMOUNT OF BID" LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW.
Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials,equipment and
services for the construction of the Project per the Contract Documents.
Note 2:Additive Bid Items will be used to determine the lowest Responsive, Responsible
Bidder. Additive items will not be included as part of the initial award amount. In the event that
OCSD elects to add any or all of the Additive Bid Items, it will do so via change order(s). Refer
to Part C—SPECIAL PROVISIONS.
All Work in the Contract Documents shall be included in Base Bid Items. The Additive Bid Items
are for Work either not specifically shown or in excess of quantities shown in the Contract
Documents. The Contractor shall provide a unit price and extended total price for each Additive
Bid Item.
Bidders shall accurately reflect the cost to perform the Work. OCSD may reject unbalanced
Bids. Refer to Part 2—INSTRUCTIONS TO BIDDERS.
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO. P7-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 1 of 8
Bid Submitted By: Stronghold Engineering, Inc.
(Name of Finn)
EXHIBIT A
SCHEDULE OF PRICES
BASE BID ITEMS Refer to Note 1 in the Instructions):
Kan Description Measurement Unit of pPQ4f a Unit Price Extended Price
1. Mobilization: Initial progress payment for all fees, labor, materials and equipment
required for all mobilization items specified, Section 01155 and the General
Conditions, including but not limited to the staging area, permits, surety bonds, Lump Sum 1 = $150,000.00
OCSD's acceptance of the Baseline Schedule, and other related activities, in
.conformance with the Contract Documents for the lump sum price not to exceed...
2. Building No.1
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 1 excluding hazardous materials abatement in conformance Lump Sum 1 = $510,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials, equipment and services, necessary for all Work -
associated with Building 1 hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
3. Building No.2
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 2 excluding hazardous materials abatement in conformance Lump Sum 1 = $450,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 2 hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO.P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 2 of 8
Return to Am mda Repoe
Bid Submitted By:Stronghold Engineering, Inc.
(Name of Firm)
EXHIBIT A �.
SCHEDULE OF PRICES
(continued)
ItWn Unit UeacriDkDn —._...... Meacuraaf
ment ADpryx UnitPrimExtended Price
4. Building No.3
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 3 excluding hazardous materials abatement in conformance Lump Sum 1 = $230,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work -
associated with Building 3 hazardous materials abatement in conformance with the Lump Sum 1 = $ 3,000.00
Contract Documents and all applicable laws for the lump sum price of...
5. Building No.4
a. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Building 4 excluding hazardous materials abatement in conformance Lump Sum 1 = $350,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 4 hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
6. Building No.5 - -
a. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Building 5 excluding hazardous materials abatement in conformance Lump Sum 1 = $428,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Building 5 hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 3 of 8
Bid submitted By: Stronghold Engineering, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
(continued)
heart naecdptlon Unit Of. Ap - Unit Price Eztentled Price
NO. Messu an I Gd
7. Building No.6
a. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Building 6 excluding hazardous materials abatement in conformance Lump Sum 1 $1,100,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 6 hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
8. Building No.7
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 7 excluding hazardous materials abatement in conformance Lump Sum i = $609,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Building 7 hazardous materials abatement in conformance with the Lump Sum 1 = $ 3,000.00
Contract Documents and all applicable laws for the lump sum price of...
9. Shop
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Shop A excluding hazardous materials abatement in conformance Lump Sum 1 = $850,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Shop A hazardous materials abatement in conformance with the Lump Sum 1 = $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO. P7-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 4 of 8
Return b Aaende Report
Bid Submitted By: Stronghold Engineering, Inc.
iNeme of Firm)
EXHIBIT A
SCHEDULE OF PRICES
(continued)
Itsm Description Una of Approx Una Price extended Price
No. Measurement city
10, Shop B
a. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Shop B excluding hazardous materials abatement in conformance Lump Sum 1 = $758,000.00
with the Contract Documents and all applicable laws for the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Shop B hazardous materials abatement in conformance with the Lump Sum 1 = $ 3,000.00
Contract Documents and all applicable laws for the lump sum price of...
11. Warehouse Building
a. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Warehouse Building excluding hazardous materials abatement in Lump Sum 1 = $775,000.00
conformance with the Contract Documents and all applicable laws for the lump sum
price of...
b. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Warehouse Building hazardous materials abatement in conformance Lump Sum 1 = $3,000.00
with the Contract Documents and all applicable laws for the lump sum price of..
12. Purchasing Conference Room
a. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Purchasing Conference Room excluding hazardous materials Lump Sum 1 = $220,000.00
abatement in conformance with the Contract Documents and all applicable laws for
the lump sum price of...
b. Furnish all labor, materials,equipment and services, necessary for all Work
associated with Purchasing Conference Room hazardous materials abatement in Lump Sum 1 = $3,000.00
conformance with the Contract Documents and all applicable laws for the lump sum
price of...
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO.P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 5 of 8
Bid Submitted By: Stronghold Engineering, Inc.
(Noma of Firm(
EXHIBIT A
SCHEDULE OF PRICES
continued
itaa n
ln Dcrlptlon Ma nit of.,
f ant Apty prox
Unit Prim Extended Price
13. Building H
a. Furnish all labor, materials, equipment and services, necessary for all Work 73,000.00
associated with Building H excluding hazardous materiels abatement In conformance lump Sum 1 $
with the Contract Documents and all applicable laws for the lump sum price of...
It. Furnish all labor, materials, equipment and services, necessary for all Work
associated with Building H hazardous materials abatement in onformance with the Lump Sum 1 $3,000.00
Contract Documents and all applicable laws for the lump sum price of...
14. Pavement Improvements
Furnish all labor, materials, equipment and services, necessary for all Work
associated with the pavement improvements in the vicinity of the maintenance shops Lump Sum 1 • $630,000
and warehouse and on Streed Parkway in conformance with the Contract
Documents and all applicable laws for the lump sum price of...
15. Shoring and Bracing
Furnish all labor, equipment and materials required to provide sheeting, shoring and Lump Sum i $15,000.00
bracing for protection of life and limb in trenches, open excavations and confined
spaces, in conformance with the Contract Documents for the lump sum price of...
16. All other Project Work, except for Bid Items 1 through 15 and 17 through 21
Furnish all labor, materials and equipment necessary except for the Work specified
throughfor Bid Items I Documen s,for the onstruct on of CONTRACT NO. P1 115A, MAIN ENANCE Lump Sum 1 = $ �DJQ 211•0
AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION, for the lump
sum price of... /l
SUBTOTAL BASE BID ITEMS NO. 1 THROUGH NO. 16 (AWARD AMOUNT) $1r321fZ(� •Ov
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO.PI-115A
MAIN ENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 6 of 8
Return to Agenda Repon
Bid Submitted By: Stronghold Engineering, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
(continued)
ADDITIVE BID ITEMS (Refer to Note 2 in the Instructions) unifor'
xNeorn Description Measurement Approx�tY Unit Prim Extended Prim
17. Additional or Deductive Removal and Replacement of Plywood Roofing
Substrate Square
Additional or deleted plywood roofing substrate in conformance with the Contract Foot 100 x $8.00 = $800.00
Documents,for unit price per square foot installed and for the total extended price
of...
18. Additional or Deductive Over Excavation
Additional or deleted over excavation for paving in conformance with the Contract Cubic Yard - So x $2.00 = $ 100.00
Documents, for the unit price per cubic yard removed and hauled and for the total _
extended price of...
19. Additional or Deductive Removal of Asbestos Containing Roofing Materials Square
Additional removal of asbestos materials in conformance with the Contract Foot 100 x $4.00 = $ 400.00
Documents for unit price per square foot and for the total extended price of...
20. Additional Removal of Asbestos Materials other than roofing materials
a)Additional removal of asbestos materials in conformance with the Contract Square so x s 4.00 = $ 200.00
Documents for unit price per square foot and for the total extended price of... Foot
b)Additional removal of soil containing disturbed asbestos materials in conformance
with the Contract Documents for unit price per cubic yard of soil removed and for Cubic Yard 10 x $250.00 = $2,500.00
the total extended price of...
BF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO. P1-116A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 7 of 8
Bid Submitted By: Stronghold Engineering, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
(CONTINUED)
unit fthan
Description messuremenl APOtys unit Prim FaV°�prke
21. Additional Title 24 ADA Compliant toilet/shower trailer
Additional Title 24 ADA compliant toilet/shower trailer including but not limited to Trailer Unit 1 x $15,000.00 = $ 15.000.00
delivery, installation, usage, service, and removal fees and costs, in conformance per month
with the Contract Documents, for the unit price and for the total extended price of...
SUBTOTAL ADDITIVE BID ITEMS NO. 17 THROUGH NO. 21 $19,000..100
TOTAL AMOUNT OF BID (BASIS OF AWARD) $ I J3`f 1.1,2-l1 ,u U
NOTE TO BIDDERS:
Bid Items No. 1 through No. 16 together with Additive or Deductive Bid Items No. 17 through No.21 will be used to determine the lowest,
responsive, responsible Bidder.
Additive Bid Items No. 17 through No. 21 will not be included as part of the award amount. In the event OCSD elects to add of deduct any or ail of
the Additive or Deductive Bid Items, it will do so via Change Order(s). Refer to the SPECIAL PROVISIONS Section entitled ADDITIVE OR DEDUCTIVE
BID ITEMS.
SF-14 SCHEDULE OF PRICES C-BF-031014
CONTRACT NO. P1-115A
MAINTENANCE AREA BUILDING IMPROVEMENTS AND BUILDING H DEMOLITION
Page 8 of 8
ITEM NO. 11
MINUTES OF THE
OPERATIONS COMMITTEE
Engineering, Operations & Maintenance, and Facilities Support Services
Orange County Sanitation District
A regular meeting of the Operations Committee of the Orange County Sanitation District
was held on July 9, 2014, at 5:02 p.m. at the District's Administrative Office. Committee
Vice-Chair Nelson led the Flag Salute.
A quorum was declared present, as follows:
Operations Directors Present: Staff Present:
Brett Murdock, Chair Jim Herberg, General Manager
Scott Nelson, Vice-Chair Bob Ghirelli, Assistant General Manager
Keith Curry Rob Thompson, Director of Engineering
Steve Jones Nick Arhontes, Director of Facilities Support
Lucille Kring Services
Michael Levitt Ed Torres, Director of Operations & Maintenance
Steve Nagel Lorenzo Tyner, Director of Finance &
Greg Sebourn Administrative Services
David Shawver Jeff Reed, Director of Human Resources
Fred Smith Kelly Lore, Acting Clerk of the Board
Tom Beamish, Chair Cindi Ambrose
John Nielsen, Board Vice-Chair Jennifer Cabral
Marc Dubois
Operations Directors Absent: Anne Marie Feery
None Dean Fisher
Norbert Gala
At Garcia
Mike Puccio
Jackie Santos
Others Present:
Brad Hogin, General Counsel
PUBLIC COMMENTS:
No public comments.
REPORT OF COMMITTEE CHAIR:
Committee Chair Murdock, did not provide a report.
07/02/2014 Opeations Committee Minutes Page 1 of 5
REPORT OF GENERAL MANAGER
General Manager, Jim Herberg, did not provide a report.
CONSENT CALENDAR:
1. MOVED, SECONDED, and DULY CARRIED: Approve Minutes of June 4, 2014,
Operations Committee meeting.
AYES: Beamish, Levitt, Murdock, Nelson, Nielsen, Seboum,
Si and F. Smith
NOES: None
ABSTENTIONS: None
ABSENT: Curry, Jones, Kring and Nagel
2. MOVED, SECONDED, and DULY CARRIED: Recommend to the Board of
Directors to:
A. Award a contract to the lowest responsive and responsible bidder, ODC
Engineering and Technology, for Repairs to Primary Clarifier No. 3 Drive
Unit at P1, Project No. FR14002, for a total amount not to exceed
$332,700 and
B. Approve a contingency of$66,540 (20%).
AYES: Beamish, Levitt, Murdock, Nelson, Nielsen, Seboum,
Shawver, and F. Smith
NOES: None
ABSTENTIONS: None
ABSENT: Curry, Jones, Kring and Nagel
07/02/2014 Operations Committee Minutes Page 2&5
3. MOVED, SECONDED, and DULY CARRIED to:
Authorize an increase of $60,000 to a sole source Professional Services
Agreement with Liberty Pipeline Services, Purchase Order No.104954-OA, for
interplant gas line maintenance and extend the contract term for four (4)
additional months, July 1, 2014 through October 31, 2014, for a total amount not
to exceed $134,690.
AYES: Beamish, Levitt, Murdock, Nelson, Nielsen, Seboum,
Shawver, and F. Smith
NOES: None
ABSTENTIONS: None
ABSENT: Curry, Jones, Kring and Nagel
NON-CONSENT CALENDAR:
Director Kring & Nagel arrived at 5:04 p.m.
Director Jones arrived at 5:05 p.m.
Director Curry arrived at 5:09 p.m.
Director of Engineering, Rob Thompson provided an informative PowerPoint
presentation regarding the biogas cleaning process, a new alternative to activated
carbon scrubbing, focusing on the benefits of scrubbing. He then answered questions
from the Committee.
4. MOVED, SECONDED, and DULY CARRIED to:
A. Approve a Sole Source Agreement with Carollo Engineers to evaluate the
feasibility and cost-effectiveness of a proprietary biogas cleaning process,
for a total amount not to exceed $106,075; and
B. Approve a contingency of$10,600 (10%)
AYES: Beamish, Curry, Jones, Kring, Levitt, Murdock, Nagel,
Nelson, Nielsen, Shawver, and F. Smith
NOES: None
ABSTENTIONS: None
ABSENT: Sebourn (recused)
07/02/2014 Operations Committee Minutes Page 3 of 5
Engineering Manager, Mike Puccio provided a PowerPoint presentation
regarding the Southwest Costa Mesa Trunk Sewer and certification of the Final
Environmental Impact Report (FEIR) including: conclusions of the EIR, significant
impacts, gravity alternative, comment letters and responses, and agreements
with Costa Mesa Sanitary District and City of Newport Beach. He answered
questions from the Committee.
5. MOVED, SECONDED, and DULY CARRIED: Recommend to the Board of
Directors to:
A. Consider, receive, and file the Final Environmental Impact Report for the
Southwest Costa Mesa Trunk, Project No. 6-19, dated July 23, 2014; and
B. Adopt Resolution No. OCSD 14-XX entitled; "A Resolution of the Board of
Directors of the Orange County Sanitation District Certifying the Final
Environmental Impact Report for implementation of Southwest Costa
Mesa Trunk, Project No. 6-19; making certain findings relating to
environmental effects identified in the Final Environmental Impact Report;
adopting a Mitigation Monitoring and Reporting Program; adopting a
Statement of Overriding Considerations; and approving the Southwest
Costa Mesa Trunk, Project No. 6-19:'
AYES: Beamish, Curry, Jones, Kring, Levitt, Murdock, Nagel,
Nelson, Nielsen, Sebourn, Shawver, and F. Smith
NOES: None
ABSTENTIONS: None
ABSENT: None
INFORMATION ITEMS:
6. Procurement Process
Contracts and Purchasing Manager, Marc Dubois presented an informative
PowerPoint presentation on Public Procurement including: ethics, types of
procurements, Mini-Brooks Act, policies and procedures, sole source contracts,
RFP's and Notice Inviting bids, Public Works construction, approval thresholds,
low bids and best values. He then answered questions from the Committee.
07/02/2014 Operations Committee Minutes Page 4 of 5
7. Reduction in Long-Term Liabilities
Director of Finance and Administrative Services, Lorenzo Tyner, provided a brief
presentation on reducing the District's long-term liabilities; providing three options
to consider; 1) Do nothing. 2) Pay down current long-term debt. 3) Reduce the
unfunded actuarial accrued liability. He stated that the third option results in a six
million dollar savings per year to the District and is recommended. Discussion
ensued regarding: overpayments, triennial report, assumption rates, interest
rates, and payment plans. Mr. Tyner informed the Committee that this would be
a future Board item for decision.
DEPARTMENT HEAD REPORT:
Director of Operations and Maintenance, Ed Torres announced that Nerissa tours for
the Board would be available on various dates, to be determined, in July and August.
General Manager, Jim Herberg reported the status of SB 946, which was amended in
Assembly in June and is now back in the Senate.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
Chair Beamish stated that he had appointed Brett Murdock to Operations Chair, Scott
Nelson to Operations Vice-Chair and Greg Sebourn and Tyler Diep to the Legislative
and Public Affairs Special Committee. He then asked the Committee to notify either he
or Vice-Chair Nielsen if anyone were interested in a specific Committee assignment or
change.
Chair Beamish also stated that the recent Chino II Basin Desalter Tour was very
interesting and informative.
ADJOURNMENT
At 6:23 p.m., Committee Chair Murdock declared the meeting adjourned to the next
scheduled meeting of Wednesday, September 3, 2014 at 5:00 p.m.
Submitted by,
Kelly A. Lore
Acting Clerk of the Board
07/02/2014 Operations Committee Minutes Page 5 of 5
OPERATIONS COMMITTEE Meeting Date TOBd.of Dir.
07/02/14 o7/z3/14
AGENDA REPORT Item Number Item Nu bar
2 12
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Nick Arhontes, P.E., Director of Facilities Support Services
SUBJECT: REPAIRS TO PRIMARY CLARIFIER NO. 3 DRIVE UNIT AT P1
PROJECT NO. FR14-002
GENERAL MANAGER'S RECOMMENDATION
A. Award a contract to the lowest responsive and responsible bidder, CDC
Engineering and Technology, for Repairs to Primary Clarifier No. 3 Drive Unit at
P1, Project No. FR14-002, for a total amount not to exceed $332,700; and
B. Approve a contingency of$66,540 (20%).
SUMMARY
This project performs structural repairs to Primary Clarifier No. 3 and replaces damaged
components of the center drive unit. It also replaces portions of the heavily corroded
steel. A 20% contingency is being proposed due to unforeseen conditions such as
additional corroded steel that may be discovered during demolition and coating
preparation.
The Orange County Sanitation District (OCSD) advertised for bids on April 8, 2014.
Three electronic bids were received on May 19, 2014. The bids were evaluated in
accordance with OCSD's policies and procedures. ODC Engineering and Technology
was deemed the lowest responsive, responsible bidder.
Summary information on the bid opening for Repairs to Primary Clarifier No. 3 Drive
Unit P1, Project No. FR14-002 is as follows:
Engineer's Estimate $252,000
Bidder Amount of Bid
ODC Engineering and Technology $332,700
Tharsos Inc. $432,872
Kaveh Engineering and Construction Inc. $443,880
Bid Comparison to Engineer's Estimate
The Engineer's estimate did not adequately consider costs associated with the
application of the corrosion control coating system (additional $72,700) and the
replacement of the mechanical equipment that at connects the drive to the rotating arm
Page 1 of 2
(additional $50,700). Had staff considered these two items, the engineer's estimate
would be $374,500. Bids are in-line with the work being performed.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
During routine maintenance the central drive assembly was damaged. OCSD Planning
staff inspected the steel structure of the feedwell and found heavy corrosion. In some
places, corrosion was so significant that gaps and holes were discovered. This amount
of corrosion could lead to a failure of the clarifier unit. The feedwell was last replaced in
1995. The central drive unit was last replaced in 1971.
CEQA
A Notice of Exemption has been filed for this work on June 4, 2014. This project is
categorically exempt from CEQA under section 15302 (c) — replacement or
reconstruction of existing utility systems and/or facilities involving negligible or no
expansion of capacity.
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of the OCSD's Purchasing Ordinance. This
repair will be funded through the Small Capital Replacement /Rehabilitation Project SP-
34 (Budget Update Fiscal Year 2012-2013 and 2013-2014 Misc. & Support Projects;
Section 8 — Page 111). This Small Capital fund is used to pay for capital repairs and/or
direct replacements. The SP-34 budget is adequate to cover this project.
Date of Approval Contract Amount Continaencv
07/23/14 $332,700 $66,540
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package and attachments:
• Service Agreement
ME:SS:eh
Page 2 of 2
Return to Aaenda Reo.,
SERVICE CONTRACT
Repairs to Primary Clarifier No. 3 Drive Unit at P1
Project No. FR14-002
THIS CONTRACT is made and entered into as of the date fully executed below by and between
Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue,
Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and ODC Engineering 8
Technology with a principal business at 5675 Walnut Ridge Drive, Agoura Hills, CA 91301
(hereinafter referred to as "CONTRACTOR") collectively referred to as the"Parties"
WITNESSETH
WHEREAS, OCSD desires to retain the services of CONTRACTOR to make repairs to the
Primary Clarifier No. 3 Drive Unit at P1 "Services"; and
WHEREAS, OCSD has chosen CONTRACTOR to conduct Services in accordance with
Ordinance No. OCSD-44; and
WHEREAS, on July 23, 2014, the Board of Directors of OCSD, by minute order, authorized
execution of this Agreement between OCSD and CONTRACTOR; and
WHEREAS, CONTRACTOR is qualified by virtue of experience, training, and education and
expertise to accomplish such Services,
NOW THEREFORE, in consideration of the promises and mutual benefits exchanged between
the Parties, 0 is mutually agreed as follows:
1. Introduction
1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and
CONTRACTOR. The Terms and Conditions herein exclusively govern the purchase of Services
as described in the Scope of Work, attached hereto and incorporated herein by reference as
Exhibit"A".
1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract
as though fully set forth at length herein. Exhibits to this Contract are as follows in order of
precedence:
Exhibit"A" Scope of Work as modified by Addendum No.1 to the Notice Inviting Bids
Exhibit"B" Bid from CONTRACTOR
Exhibit"C" Acknowledgement of Insurance Requirements
Exhibit"D" Payment (Labor and Materials) and Performance Bonds
1.3 In the event of any conflict or inconsistency between the provisions of this Contract and
any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects
govern and control.
1.4 The provisions of this Contract may be amended or waived only by a writing executed by
authorized representatives of both Parties hereto.
Orange County Sanitation District 1 of 9 Project No. FR14-002
Return to Agenda Report
1.5 The various headings in this Contract are inserted for convenience only and shall not
affect the meaning or interpretation of this Contract or any Paragraph or provision hereof.
1.6 The tens "days", when used in the Contract, shall mean calendar days, unless otherwise
noted as business days.
1.7 OCSD holidays (non-working days) are as follows: New Years Day, Lincoln's Birthday,
Presidents' Day Monday, Memorial Day Monday, Independence Day, Labor Day Monday,
Veterans Day, Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.8 The tens "hours", when used in this Contract, shall be as defined in Exhibit"A".
1.9 CONTRACTOR shall provide OCSD with all required premiums and/or overtime work at
no charge beyond the price provided under"Compensation" below.
1.10 Except as expressly provided otherwise, OCSD accepts no liability for any expenses,
losses, or action incurred or undertaken by CONTRACTOR as a result of work performed in
anticipation of purchases of said services by OCSD.
2. Compensation Compensation for this project shall not exceed the total amount of
Three Hundred Thirty-two Thousand Seven Hundred and 00/00 Dollars ($332,700.00).
3. Payments Payment shall be made upon approval by OCSD Project Manager, Steve
Speakman or his designee, of invoices submitted for Services completed as described in Exhibit
"B". OCSD, at its sole discretion, shall be the determining party as to whether the Services have
been satisfactorily completed.
4. Invoices
4.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project
Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges
thereon. Invoices shall include the Purchase Order Number.
4.2 Invoices shall be emailed by CONTRACTOR to OCSD Accounts Payable at
APStaff(mOCSD.com and reference the following in the subject line: "INVOICE", the Purchase
Order number, the Project Manager, Steve Speakman and FR14-002.
5. Audit Rights CONTRACTOR agrees that, during the term of this Contract and for a
period of three (3) years after its termination, OCSD shall have access to and the right to
examine any directly pertinent books, documents, and records of CONTRACTOR relating to the
invoices submitted by CONTRACTOR pursuant to this Contract.
6. Scope of Work Subject to the terms of this Contract, CONTRACTOR shall perform the
Services identified in Exhibit "A". CONTRACTOR shall perform said Services in accordance with
generally accepted industry and professional standards.
7. Modifications to Scope of Work Requests for modifications to the Scope of Work
hereunder can be made by OCSD at any time. All modifications must be made in writing and
signed by both Parties.
6. Contract Tenn The Services provided under this Contract shall be completed within
168 days from the date of notice to proceed.
Orange County Sanitation District 2 of 9 Project No. FR14-002
Return to Aaenda Report
9. Termination
9.1 OCSD reserves the right to terminate this Contract for its convenience, with or without
cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate. Upon
receipt of a termination notice, CONTRACTOR shall immediately discontinue all work under this
Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days,
pay CONTRACTOR for work performed (cost and fee) to the date of termination.
CONTRACTOR expressly waives any claim to receive anticipated profits to be earned during
the uncompleted portion of this Contract. Such notice of termination shall terminate this
Contract and release OCSD from any further fee, cost or claim hereunder by CONTRACTOR
other than for work performed to the date of termination.
9.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's
determination that CONTRACTOR is not meeting specification requirements, if the level of
service is inadequate, or any other default of this Contract.
9.3 OCSD may also immediately cancel for default of this Contract in whole or in part by
written notice to CONTRACTOR:
• if CONTRACTOR becomes insolvent or files a petition under the Bankruptcy Act; or
• if CONTRACTOR sells its business; or
• if CONTRACTOR breaches any of the terms of this Contract; or
• if total amount of compensation exceeds the amount authorized under this Contract.
9.4 All OCSD property in the possession or control of CONTRACTOR shall be returned by
CONTRACTOR to OCSD upon demand, or at the termination of this Contract, whichever occurs
first.
10. Insurance CONTRACTOR and all subcontractors shall purchase and maintain,
throughout the life of this Contract and any periods of warranty or extensions, insurance in
amounts equal to the requirements set forth in the signed Acknowledgement of Insurance
Requirements (attached hereto and incorporated herein as Exhibit "C"). CONTRACTOR shall
not commence work under this Contract until all required insurance is obtained in a form
acceptable to OCSD, nor shall CONTRACTOR allow any subcontractor to commence service
pursuant to a subcontract until all insurance required of the subcontractor has been obtained.
Failure to maintain required insurance coverage shall result in termination of this Contract.
11. Bonds
11.1 CONTRACTOR shall, before entering upon the performance of this Contract, furnish
bonds (attached hereto in Exhibit "D") approved by OCSD's General Counsel - one in the
amount of one hundred percent (100%) of the Contract price bid, to guarantee the faithful
performance of the work, and the other in the amount of one hundred percent (100%) of the
Contract price bid, to guarantee payment of all claims for labor and materials furnished. This
Contract shall not become effective until such bonds are supplied to and approved by OCSD.
Bonds must be issued by a surety authorized by the State Insurance Commissioner to do
business in California and must be maintained throughout the life of the project and during the
warranty period.
CONTRACTOR is hereby notified that It is required that the person executing the Bonds must
have on file with the County Clerk, County of Orange, a Power of Attorney and authorization to
execute said Bonds for and on behalf of the corporate surety. The purpose of this requirement
is to insure that the provisions of Code of Civil Procedure Section 995.630 requiring such
authority to be on file with the Orange County Clerk are satisfied in order for the OCSD and its
officers to approve the bond.
Orange County Sanitation District 3 of 9 Project No. FRM-002
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12. IndemnificaBon and Hold Harmless Provision CONTRACTOR shall assume all
responsibility for damages to property and/or injuries to persons, including accidental death,
which may arise out of or be caused by CONTRACTOR's services under this Contract, or by its
subcontractor or by anyone directly or indirectly employed by CONTRACTOR, and whether
such damage or injury shall accrue or be discovered before or after the termination of the
Contract. Except as to the sole active negligence of or willful misconduct of OCSD,
CONTRACTOR shall indemnify, protect, defend and hold harmless OCSD, its elected and
appointed officials, officers, agents and employees, from and against any and all claims,
liabilities, damages or expenses of any nature, including attorneys' fees: (a) for injury to or
death of any person or damage to property or interference with the use of property, arising out
of or in connection with CONTRACTOR's performance under the Contract, and/or (b) on
account of use of any copyrighted or uncopyrighted material, composition, or process, or any
patented or unpatented invention, article or appliance, furnished or used under the Contract,
and/or (c) on account of any goods and services provided under this Contract. This
indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent
misconduct, whether active or passive, on the part of CONTRACTOR of or anyone employed by
or working under CONTRACTOR. To the maximum extent permitted by law, CONTRACTOR's
duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings
have merit or are mentless, or which involve claims or allegations that any of the parties to be
defended were actively, passively, or concurrently negligent, or which otherwise assert that the
parties to be defended are responsible, in whole or in part, for any loss, damage, or injury.
CONTRACTOR agrees to provide this defense immediately upon written notice from OCSD,
and with well qualified, adequately insured, and experienced legal counsel acceptable to OCSD
13. Safety Standards and Human Resources(HP) Policies
13.1 OCSD requires all contractors and service providers 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 CONTRACTOR is required to follow the most stringent regulatory
requirement at no cost to OCSD. CONTRACTOR and all their employees and subcontractors,
shall adhere to all applicable OCSD Safety Standards and Human Resources Policies found at:
OCSD.com, "Doc Central' (bottom of page), under"Safety".
13.2 In addition to the requirements stated in 13.1 above, CONTRACTOR shall adhere to the
following OCSD Safety requirements: SOP-102 PPE, SOP-104 Confined Space, SOP-105
LOTO, SOP-106 Hearing Conservation Program, SOP-107 Hazard Communication, SOP-108
CONTRACTOR Safety, SOP-109 Respiratory Protection Program, SOP-113 Bloodbome
Pathogen, SOP-117 Fire Prevention, SOP-118 Hot Work, SOP-206 Fall Protection, and SOP-
304 Mobile Equipment.
14. Warranties In addition to the Warranties and Guarantees required in Exhibit "A°, the
following CONTRACTOR's warranty shall apply: If, within the 12-month period following
completion of its Services, OCSD informs CONTRACTOR that any part of the Services fails to
meet the standards required under this Contract, CONTRACTOR shall, within the time agreed
to by OCSD and CONTRACTOR, take all such actions as are necessary to correct or complete
the noted deficiency(ies) at CONTRACTOR's sole expense.
15. Performance Time is of the essence in the performance of this Contract and the
provisions hereof.
Orange County Sanitation District 4 of 9 Project No. FR14-002
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16. 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
Contract.
17. Freight (F.O.B. Destination) CONTRACTOR assumes full responsibility for all
transportation, transportation scheduling, packing, handling, insurance, and other services
associated with delivery of all products deemed necessary under this Contract.
18. Familiarity with Work By executing this Contract, CONTRACTOR warrants that: 1) it
has investigated the work to be performed; 2) it has investigated the site of the work and is
aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of
the work under this Contract. Should CONTRACTOR discover any latent or unknown
conditions materially differing from those inherent in the work or as represented by OCSD, it
shall immediately inform OCSD of this and shall not proceed, except at CONTRACTOR's risk,
until written instructions are received from OCSD-
19. Regulatory Requirements CONTRACTOR shall perform all work under this Contract
in strict conformance with applicable federal, state, and local regulatory requirements including,
but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, 261, and 503, Title 22, 23, and
California Water Codes Division 2.
20. Licenses. Permits. Ordinances and Regulations CONTRACTOR represents and
warrants to OCSD that it has obtained all licenses, permits, qualfcation 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 Contract will be paid by CONTRACTOR.
21. Applicable Laws and Regulations CONTRACTOR shall comply with all applicable
federal, state, and local laws, rules, and regulations. CONTRACTOR also agrees to indemnify
and hold harmless from any and all damages and liabilities assessed against OCSD as a result
of CONTRACTOR's noncompliance therewith. Any permission required by law to be included
herein shall be deemed included as a part of this Contract whether or not specifically
referenced.
22. Public Contracts Law CONTRACTOR's Employees Compensation
22.1 Davis-Bacon Act - CONTRACTOR will pay and will require all subcontractors to pay all
employees on said project a salary or wage at least equal to the prevailing rate of per diem
wages as determined by the Secretary of Labor in accordance with the Davis-Bacon Act for
each craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon
Act shall apply only if the Contract is in excess of two thousand dollars ($2,000.00) and when
twenty-five percent (25%) or more of the Contract is funded by federal assistance. If the
aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be complied
with are incorporated herein as a part of this Contract and referred to by reference.
22.2 General Prevailing Rate—OCSD has been advised by the State of Calrfomia Director of
Industrial Relations of its determination of the general prevailing rate of per diem wages and the
general prevailing rate for legal holiday and overtime work in the locality in which the work is to
be performed for each craft or type of work needed to execute this contract, and copies of the
same are on file in the office of the engineer of OCSD. The CONTRACTOR agrees that not
less than said prevailing rates shall be paid to workers employed on this public works contract
Orange County Sanitation Distnct 5 Of 9 Project No. FR14-002
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as required by Labor Code Section 1774 of the State of California. Per California Labor Code
1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its principal
office and at each job site, which shall be made available to any interested party upon request.
22.3 Forfeiture For Violation - CONTRACTOR shall, as a penalty to OCSD, forfeit fifty dollars
($50.00) for each calendar day or portion thereof for each worker paid (either by the
CONTRACTOR or any subcontractor under it) less than the prevailing rate of per diem wages
as set by the Director of Industrial Relations, in accordance with Sections 1770-1780 of the
California Labor Code for the work provided for in this contract, all in accordance with Section
1775 of the Labor Code of the State of California.
22.4 Apprentices — Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of
California, regarding the employment of apprentices are applicable to this contract and the
CONTRACTOR shall comply therewith if the prime contract involves thirty thousand dollars
($30,000.00) or more or twenty (20) working days or more; or if contracts of specialty
contractors not bidding for work through the general or prime CONTRACTOR are two thousand
dollars ($2,000.00) or more or five (5)working days or more.
22.5 Workday — In the performance of this contract, not more than eight (8) hours shall
constitute a day's work, and the CONTRACTOR shall not require more than eight (8) hours of
labor in a day from any person employed by him hereunder except as provided in paragraph
19.2 above. CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at seq.)
of the Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
twenty five dollars ($25.00) for each worker employed in the execution of this contract by
CONTRACTOR or any subcontractor for each calendar day during which any worker is required
or permitted to labor more than eight (8) hours in any one calendar day and forty (40) hours in
any one week in violation of said Article. CONTRACTOR shall keep an accurate record
showing the name and actual hours worked each calendar day and each calendar week by
each worker employed by CONTRACTOR in connection with the project.
22.6 Record of Waoes: Inspection - CONTRACTOR agrees to maintain accurate payroll
records showing the name, address, social security number, work classification, straight-time
and overtime hours worked each day and week, and the actual per diem wages paid to each
journeyman, apprentice, worker or other employee employed by it in connection with the project
and agrees to require that each of its subcontractors do the same. All payroll records shall be
certified as accurate by the applicable CONTRACTOR or subcontractor or its agent having
authority over such matters. CONTRACTOR further agrees that its payroll records and those of
its subcontractors shall be available to the employee or employee's representative, the Division
of Labor Standards Enforcement, and the Division of Apprenticeship Standards and shall
comply with all of the provisions of Labor Code Section 1776, in general. Penalties for non-
compliance with the requirements of Section 1776 may be deducted from project payments per
the requirements of Section 1776.
23. South Coast Air Quality Management District's (SCAQMD) Requirements It is
CONTRACTOR's responsibility that all equipment furnished and installed be in accordance with
the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD).
Al contract work practices, which may have associated emissions such as sandblasting, open
field spray painting or demolition of asbestos containing components or structures, shall comply
with the appropriate rules and regulations of the SCAQMD.
24. Govemina Law This Contract 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 Contract or the performance thereof.
Orange County Sanitation District 6 of 9 Project No. FR14-002
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25. Breach The waiver Of either party of any breach or violation of, or default under, any
provision of this Contract, shall not be deemed a continuing waiver by such party of any Other
provision or of any subsequent breach or violation of this Contract or default thereunder. Any
breach by CONTRACTOR to which OCSD does not object shall not operate as a waiver of
OCSD's rights to seek remedies available to it for any subsequent breach.
26. Remedies In addition to other remedies available in law or equity, if the CONTRACTOR
fails to make delivery of the goods or Services or repudiates its obligations under this Contract,
or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services,
OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD
has paid, and/or (3) "cover" by purchasing, or contracting to purchase, substitute goods or
Services for those due from CONTRACTOR. In the event OCSD elects to "cover as described
in (3), OCSD shall be entitled to recover from CONTRACTOR as damages the difference
between the cost of the substitute goods or Services and the contract price, together with any
incidental or consequential damages.
27. Dispute Resolution
27.1 In the event of a dispute as to the construction or interpretation of this Contract, or any
rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the
dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of
the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted
in accordance with the Commercial Mediation Rules of the American Arbitration Agreement,
through the atemate 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.
27.2 In the event the Parties are unable to timely resolve the dispute through mediation, the
issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure,
Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator shall be selected,
or in the absence of agreement, each party shall select an arbitrator, and those two 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
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.
28. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an
Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this
Contract, the prevailing party shall be entitled to reasonable attorney's fees, costs and
necessary disbursements in addition to any other relief to which he may be entitled.
29. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity,
and Forum for Enforcement, shall survive termination or expiration of this Contract.
30. Severability If any section, subsection, or provision of this Contract, or any agreement
or instrument contemplated hereby, or the application of such section, subsection, or provision
is held invalid, the remainder of this Contract or instrument in the application of such section,
subsection or provision to persons or circumstances other than those to which it is held invalid,
shall not be affected thereby, unless the effect of such invalidity shall be to substantially
frustrate the expectations of the Parties.
Orange County Sanitation District 7 of 9 Project No. FR14-002
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31. Damave to OCSD's Procertv Any of OCSD's property damaged by CONTRACTOR,
any subcontractors or by the personnel of either will be subject to repair or replacement by
CONTRACTOR at no cost to OCSD.
32. Disclosure CONTRACTOR agrees not to disclose, to any third party, data or
information generated from this project without the prior written consent from OCSD.
33. Independent Contractor The legal relationship between the parties hereto is that of an
independent contractor, and nothing herein shall be deemed to make CONTRACTOR an OCSD
employee. During the performance of this Agreement, CONTRACTOR and its officers,
employees, and agents shall act in an independent capacity and shall not act as OCSD's
officers, employees, or agents. CONTRACTOR and its officers, employees, and agents shall
obtain no rights to any benefits which accrue to OCSD's employees.
34. Limitations upon Subcork2ctina and Assignment CONTRACTOR shall not
delegate any duties nor assign any rights under this Contract without the prior written consent of
OCSD. Any such attempted delegation or assignment shall be void.
35. Third Party Rights Nothing in this Contract shall be construed to give any rights or
benefits to anyone other than OCSD and CONTRACTOR.
36. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD
shall be personally liable to CONTRACTOR, or any successor-in-interest, in the event of any
default or breach by OCSD or for any amount which may become due to CONTRACTOR or to
its successor, or for breach of any obligation for the terms of this Agreement.
37. Read and Understood By signing this Contract, CONTRACTOR represents that he
has read and understood the terms and conditions of the Contract.
38. Authority to Execute The persons executing this Contract on behalf of the Parties
warrant that they are duly authorized to execute this Contract and that by executing this
Contract, the Parties are formally bound.
39. Entire Contract This Contract constitutes the entire agreement of the Parties and
supersedes all prior written or oral and all contemporaneous oral agreements, understandings,
and negotiations between the Parties with respect to the subject matter hereof.
Orange County Sanitation District 6 of 9 Pmject No. FR14-002
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40. Notices All notices under this Contract must be in writing. Written notice shall be
delivered by personal service or sent by registered or certified mail, postage prepaid, return
receipt requested, or by any other overnight delivery service which delivers to the noticed
destination and provides proof of delivery to the sender. Rejection or other refusal to accept or
the inability to deliver because of changed address or 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: Clarice M. Marcin
Senior Contracts Administrator
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
CONTRACTOR: ODC Engineering &Technology
Each party shall provide the other party written notice of any change in address as soon as
practicable.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
Chair Board of Directors
Dated: By:
Clerk of the Board
Dated: By:
Contracts/Purchasing Manager
ODC ENGINEERING &TECHNOLOGY
Dated: By:
Print Name and Title of Officer
IRS Employer's I.D. Number
Orange County Sanitation District 9 of 9 Project No. FR14-OW
OPERATIONS COMMITTEE Meath,pate TOBA.Of DIl.
071021 o723/ia
AGENDA REPORT Number Item N Item 3m
5 Nu be
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: SOUTHWEST COSTA MESA TRUNK, PROJECT NO. 6-19
GENERAL MANAGER'S RECOMMENDATION
A. Consider, receive, and file the Final Environmental Impact Report for the
Southwest Costa Mesa Trunk, Project No. 6-19, dated July 23, 2014; and
B. Adopt Resolution No. OCSD 14-09 entitled; "A Resolution of the Board of
Directors of the Orange County Sanitation District, Certifying the Final
Environmental Impact Report for implementation of Southwest Costa Mesa
Trunk, Project No. 6-19; making certain findings relating to environmental effects
identified in the Final Environmental Impact Report; adopting a Mitigation
Monitoring and Reporting Program; adopting a Statement of Overriding
Considerations; and approving the Southwest Costa Mesa Trunk, Project
No. 6-19:'
SUMMARY
The Southwest Costa Mesa Trunk, Project No. 6-19, will construct a new trunk sewer
connecting the west side of Costa Mesa to Treatment Plant No. 2 located in Huntington
Beach. The purpose of the proposed project is to consolidate facilities and reduce the
reliance on pump station infrastructure. This would reduce the overall risks associated
with potential facility failure and the long-term operational, maintenance, and
replacement costs associated with pump station infrastructure.
Specifically, the Costa Mesa Sanitary District and the City of Newport Beach have eight
pump stations in this area. These pump stations need to either be completely replaced
or abandoned. This project will eliminate a capacity shortage in the Orange County
Sanitation District's (Sanitation District) existing Fairview Trunk Sewer and allow the
local agencies to abandon eight pump stations. The proposed Southwest Costa Mesa
Trunk will also increase overall system reliability.
The Final Environmental Impact Report (FEIR) found that while certain impacts can be
mitigated to less than significant levels, the project will potentially result in significant
and unavoidable impacts including temporary noise impacts during construction
activities. For this reason, a Statement of Overriding Considerations identifying the
project's expected benefits has been prepared for the Board's consideration.
The Draft EIR was circulated for a 45-day public review on November 14, 2013 and
ended on December 30, 2013. A public hearing was held on December 3, 2013.
Page 1 of 2
Thirteen comment letters were received during the public review period, including
comments from numerous public agencies and members of the public. These
comments raised issues ranging from the project's potential biological resources
impacts to the project's potential traffic impacts. Pursuant to CECIA Guidelines Section
15088(c), the FEIR includes written responses to those comments.
Since the publication of the Draft EIR, the Sanitation District has worked extensively
with the U.S. Fish & Wildlife Service (USFWS) to address the project's potential
biological resources impacts. The Sanitation District met with USFWS staff at Talbert
Regional Park to discuss and refine the project's alignment to reduce the project's
potential biological resources impacts. These refinements are accepted by the USFWS
and are reflected in the Biological Resources analysis in the FEIR, and in the responses
to comments. Additional modifications will be addressed during permit process as
requested by USFWS.
PRIOR COMMITTEE/BOARD ACTIONS
November 2011 — Approved a Professional Design Services Agreement with Dudek for
Southwest Costa Mesa Trunk, Project No. 6-19, providing for engineering design
services for an amount not to exceed $884,025 and approved a contingency of
$132,602 (15%).
BUDGET/PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENTS
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the
complete agenda package and attachments:
• Exhibit A: Draft Resolution No. OCSD 14-09 (attached)
• Attachment A, Findings and Statement of Overriding Considerations (14 Pages)
• Attachment B, Mitigation Monitoring and Reporting Program (MMRP) (48 Pages)
• Final EIR and Appendices (662 Pages) ON FILE IN THE CLERK OF THE
BOARD'S OFFICE
VP:dm:gc
Page 2 of 2
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RESOLUTION NO. OCSD 14-09
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ORANGE COUNTY SANITATION DISTRICT CERTIFYING THE
FINAL ENVIRONMENTAL IMPACT REPORT FOR THE
SOUTHWEST COSTA MESA TRUNK SEWER, PROJECT NO.
6-19; ADOPTING A STATEMENT OF OVERRIDING
CONSIDERATIONS; ADOPTING A MITIGATION MONITORING
AND REPORTING PROGRAM; AND APPROVING THE
SOUTHWEST COSTA MESA TRUNK SEWER, PROJECT
NO. 6-19
WHEREAS, the Orange County Sanitation District (the "District') is presently
considering the approval of a project known as the Southwest Costa Mesa Trunk
Sewer, Project No. 6-19 (the "Project'); and
WHEREAS, pursuant to the California Environmental Quality Act (Public
Resources Code Sections 21000 at seq. ("CEQA") and the CEQA Guidelines (California
Code of Regulations, Title 14, Sections 15000 at seq., the District as lead agency
prepared a Draft Environmental Impact Report (the "Draft EIR") for the Project that
analyzes the potential significant impacts of the Project, identifies mitigation measures,
and identifies alternatives to the Project; and
WHEREAS, the District has consulted with other public agencies and the general
public, and provided such agencies and the public with the opportunity to provide written
and oral comments on the Project and the Draft EIR as required by CEQA, including a
public review period of 45 days which commenced on November 14, 2013 and ended
on December 30, 2013; and
WHEREAS, on December 3, 2013, OCSD staff held a public hearing to provide a
further opportunity for public agencies and the general public to comment on the Draft
EIR; and
WHEREAS, the District has reviewed the comments received and responded to
the significant environmental issues raised during the review and consultation process;
and
1001N3.1
WHEREAS, the comments received on the Draft EIR, either in full or in summary,
together with the District's responses have been included in the Final EIR for the
proposed Project; and
WHEREAS, the Final Environmental Impact Report, consisting of the Draft EIR
and the Responses to Comments Received on the Draft EIR (the "Final EIR"), has been
presented to the District's Board of Directors (the "Board") for review and consideration
prior to the approval of, and commitment to, the Project.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
1. The Board has independently reviewed and considered the Final EIR prior to
approval of, or commitment to, the Project;
2. The Final EIR reflects the independent judgment and analysis of the Board;
3. The Board makes the findings set forth herein as Attachment A and certifies
that such findings are based on the Board's independent review of the
information contained in the Final EIR and reflect the independent judgment
and analysis of the Board;
4. Changes or alterations have been required in, or incorporated into, the
Project which avoid or substantially lessen certain significant effects of the
proposed Project;
5. Certain environmental impacts of the Project are significant and unavoidable;
6. The Board adopts the Statement of Overriding Considerations, attached as
Attachment A, which identifies the specific benefits of the Project that
outweigh the Project's significant and unavoidable impacts which are
acceptable in light of the Project's benefits;
7. The Board adopts the Mitigation Monitoring and Reporting Program (the
"MMRP"), attached as Attachment B to ensure that all mitigation measures
identified in the Final EIR are implemented;
8. The Final EIR has been completed in compliance with the requirements of
CEQA and is hereby certified;
9. The Board approves the Southwest Costa Mesa Trunk Sewer, Project
No. 6-19.
1001N3.1
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10.The documents and other materials that constitute the record of proceedings
on which the Board's decision is based, are located at the District
Administration Offices, 10844 Ellis Avenue, Fountain Valley, CA 92708 and
the custodian for these documents is the Clerk of the Board.
11.District staff is authorized and directed to file the Notice of Determination
(NOD) and any other documents in accordance with the requirements of
CEQA
PASSED AND ADOPTED at a regular meeting held July 23, 2014.
Tom Beamish
Board Chair
ATTEST:
Kelly A. Lore
Acting Clerk of the Board
1001N3.1
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Acting Clerk of the Board of Directors of the Orange County
Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 14-09 was
passed and adopted at a regular meeting of said Board on the 23rd day of July, 2014,
by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of Orange County Sanitation District this 23rd day of July, 2014.
Kelly A. Lore
Acting Clerk of the Board of Directors
Orange County Sanitation District
1001N3.1
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"Attachment N'
FINDINGS AND STATEMENT OF OVERRIDING CONSIDERATIONS
REGARDING THE ENVIRONMENTAL IMPACT REPORT FOR THE
SOUTHWEST COSTA MESA TRUNK SEWER PROJECT NO. 06-19
SCH No. 2013041049
July 2014
SECTION 1 : THE PROJECT
I. Project Description
The Orange County Sanitation District (OCSD), as CEQA Lead Agency, proposes to implement
the Southwest Costa Mesa Trunk Sewer Project No. 6-19 (proposed project), which includes the
construction of a new trunk sewer from the existing Newport Beach Pump Station (NBPS) site at
the west end of Walkabout Circle (OCSD sewer pipeline) to the OCSD Interplant Line in
Brookhurst Street in Huntington Beach. The proposed project also includes the construction of
several Costa Mesa Sanitary District (CMSD) and City of Newport Beach pipelines connecting
to the proposed OCSD sewer pipeline, and the abandonment of several CMSD and City of
Newport Beach pump stations. CMSD and the City of Newport Beach are responsible agencies
for these components of the proposed project. The project area is located primarily within
Talbert Regional Park, Canyon Park, and OCSD Plant No. 2, in the Cities of Costa Mesa,
Newport Beach, and Huntington Beach, California. The project area extends into residential
neighborhoods adjacent to Canyon Park in the Cities of Costa Mesa and Newport Beach.
The proposed project consists of two main components: the OCSD Sewer Pipeline; and CMSD
and City of Newport Beach Facilities.
OCSD Sewer Pipeline
The OCSD sewer pipeline component of the proposed project will consist of approximately
4,800 feet of pipeline that will be constructed in the following three sequential segments:
1. Approximately 3,500 linear feet of 24-inch-diameter gravity sewer from the NBPS at the
west end of Walkabout Circle south along the eastern border of Talbert Regional Park
and then west from the western terminus of 19th Street toward the Santa Ana River.
2. Approximately 800 linear feet of a dual 14-inch barrel inverted sewer siphon beneath the
Santa Ana River. Pipe diameters may be adjusted during final design to optimize cleaning
velocity and maintenance criteria.
3. Approximately 500 linear feet of 24-inch-diameter gravity sewer from the west end of the
inverted sewer siphon to the existing OCSD Interplant Line in Brookburst Street.
998600.1
CMSD and City of Newport Beach Facilities
The proposed OCSD sewer pipeline would allow for the consolidation of both CMSD and City
of Newport Beach sewer pipelines in the area surrounding the existing NBPS. Following
construction of the proposed OCSD sewer pipeline, CMSD and the City of Newport Beach will
construct new pipelines to connect areas within the cities of Costa Mesa and Newport Beach to
the upstream end of the proposed OCSD sewer pipeline. CMSD would also facilitate the
abandonment of six CMSD pump stations and one private pump station, and the City of Newport
Beach would facilitate the abandonment of the NBPS, located at the end of Walkabout Circle.
The proposed pipelines would include the following:
• A new 24-inch gravity sewer from the service areas of the Canyon Pump Station (CMSD
No. 7)and West Bluff Pump Station(CMSD No. 20)to the existing sewer in Canyon Park.
• A new 12-inch gravity sewer from the service areas of the Aviemore Terrace Pump Station
(CMSD No. 5)and Sea Bluff Pump Station(CMSD No. 16)to a connection with a new 18-
inch sewer carrying flow westerly from an existing gravity sewer in Canyon Park.
• A new 18-inch sewer from Canyon Park picking up flows from the service areas of Canyon
Pump Station (CMSD No. 7), West Bluff Pump Station (CMSD No. 20), President Pump
Station (CMSD No. 14), Aviemore Terrace Pump Station (CMSD No. 5), and Sea Bluff
Pump Station (CMSD No. 16) to the new OCSD Sewer Pipeline Project No. 6-19 in the
vicinity of the NBPS at the west end of Walkabout Circle
• A new 12-inch sewer from the service area of the 19th Street Pump Station (CMSD
No. 1) and the West 18th Street Private Pump Station (private) to the new OCSD Sewer
Pipeline in the vicinity of the west end of 19th Street.
After the proposed CMSD and City of Newport Beach pipelines are completed and the proposed
OCSD sewer pipeline is completed, the following existing pump stations, shown in Figure 3-4,
would be abandoned by CMSD and the City of Newport Beach:
• President Pump Station (CMSD No. 14)
• West Bluff Pump Station(CMSD No. 20)
• Canyon Pump Station(CMSD No. 7)
• Aviemore Terrace Pump Station(CMSD No. 5)
• Sea Bluff Pump Station (CMSD No. 16)
• 19th Street Pump Station(CMSD No. 1)
• West 18th Street Private Pump Station
• City of Newport Beach Pump Station at Walkabout Circle.
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li. Project Purpose and Objectives
The purpose of the proposed project is to consolidate facilities and reduce the reliance on
pump station infrastructure. This would reduce the overall risks associated with facility
failure and the long-term operational, maintenance, and replacement costs associated with
pump station infrastructure.
In addition, the proposed project would successfully divert flows from the Fairview Road Trunk
Sewer, currently planned for upsizing to accommodate ultimate system flows. This diversion is
expected to eliminate the need for upsizing of the Fairview Road Trunk Sewer, saving
infrastructure replacement costs and impacts to the public during its construction phase.
The objectives for the proposed project include the following:
• Provide a reliable conveyance system for projected 2030 wastewater flows tributary to
each of the existing sewer pump stations proposed to be abandoned.
• Provide infrastructure that may be efficiently maintained and easily accessed in the event
of an emergency.
• Reduce the risk of spills in the local agency wastewater collection system due to system failure.
• Avoid operational risks associated with pump stations in the wastewater collection system.
• Avoid substantial disruption in the Talbert Nature Preserve for construction and operation.
• Avoid the need for new easements from private property owners.
• Avoid substantial traffic disruption during the construction phase,particularly on Victoria
Street and Hamilton Avenue.
• Provide a solution that reduces the potential for chronic noise and odor complaints.
SECTION 2: ENVIRONMENTAL REVIEW PROCESS
The lead agency approving the project and conducting environmental review under the
California Environmental Quality Act (California Public Resources Code Sections 21000, et
seq., and the Guidelines promulgated thereunder in California Code of Regulations, Title 14,
Sections 15000 et seq (CEQA Guidelines), hereinafter collectively, CEQA) shall be the Orange
County Sanitation District (OCSD). OCSD as lead agency shall be primarily responsible for
carrying out the project. In compliance with Section 15082 of the CEQA Guidelines, OCSD
published a Notice of Preparation on April 16, 2013, which began a 30-day period for comments
on the appropriate scope of the project Environmental Impact Report (EIR). Pursuant to the
CEQA Guidelines, Section 15083, a public scoping meeting was held at 6:30 p.m. on May 2,
2013, at the OCSD Administrative Office Building in the Board Room. A public notice was
placed in the Orange County Register on April 17 and April 21, 2013, informing the public of
the availability of the NOP and the scoping meeting. The scoping meeting was held to provide
the public an opportunity to voice comments or concerns regarding potential effects of the
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proposed project and the issues to be included in the EIR. With the exception of OCSD, no
agency staff,private citizens, or community groups attended the meeting.
OCSD published an Environmental Impact Report in November 2013 in compliance with
CEQA. Pursuant to CEQA Guidelines section 15085, upon publication of the FIR, OCSD filed a
Notice of Completion with the Governor's Office of Planning and Research, State
Clearinghouse, indicating that the FIR had been completed and was available for review and
comment by the public. OCSD also posted a Notice of Availability of the EIR in the Orange
County Register on November 14, 2013, November 17, 2013, and November 20, 2013 pursuant
to CEQA Guidelines section 15087. The EIR was circulated for 45 days for public review and
comment from November 14, 2013 to December 30, 2013. OCSD also held a public hearing on
December 3, 2013,to receive comments on the EIR during the 45-day review period.
The final EIR for the project was published on FIBD], 2014. The final EIR includes responses to
comments received during the public comment period The final EIR has been prepared in accordance
with CEQA Guidelines. Pursuant to CEQA Guidelines section 15084(d)(3), the applicant retained a
consultant Dudek,to assist with the preparation of the environmental documents.OCSD, acting as the
Lead Agency,has reviewed and edited as necessary the submitted drafts and certified that the final EIR
reflects its own independent judgment and analysis under CEQA Guideline Section 15090(a)(3) and
Public Resources Code Section 21082.1(a)-(c).
The EIR addresses the environmental effects associated with implementation of the project. The EIR is
intended to serve as an informational document for public agency decision-makers and the general
public regarding the objectives and components of the project. The EIR addresses the potential
significant environmental impacts associated with the project, and identifies feasible mitigation
measures and alternatives that may be adopted to reduce or eliminate these impacts. The EIR is
incorporated by reference into this CEQA findings document.
The EIR is the primary reference document for the formulation and implementation of a
mitigation monitoring and reporting program (MMRP) for the project Environmental impacts
cannot always be mitigated to a level that is considered less than significant In accordance with
CEQA, if a lead agency approves a project that has significant unavoidable impacts that cannot
be mitigated to a level below significance, the agency must state in writing the specific reasons
and overriding considerations for approving the project based on the final CEQA documents and
any other information in the public record for the project. (CEQA Guidelines, § 15093). This is
called a"statement of overriding considerations."(CEQA Guidelines, § 15093).
The documents and other materials that constitute the record of proceedings on which OCSD's
CEQA findings we based are located at the OCSD Administrative Office Building at 10844 Ellis
Avenue, Fountain Valley, CA 92708, and on the OCSD website at www.ocsd.com. This
information is provided in compliance with CEQA Guidelines Section 15091(e).
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SECTION 3: FINDINGS
I. Introduction
CEQA states that no public agency shall approve or carry out a project which identifies one or
more significant environmental impacts of a project unless the public agency makes one or more
written findings for each of those significant effects, accompanied by an overriding justification
and rationale for each finding in the form of a statement of overriding considerations. The
possible findings are:
Changes or alterations have been required in, or incorporated into, the project
which mitigate or avoid the significant environmental effects on the environment.
Those changes or alterations are within the responsibility and jurisdiction of
another public agency and have been or can or should be adopted by that other
agency and not the agency making the findings. Such changes have been adopted
by such other agency or can and should be adopted by such other agency.
Specific economic, legal, social, technological, or other considerations, including
considerations for the provision of employment opportunities for highly trained
workers, make infeasible the mitigation measures or project alternatives identified
in the final EIR.
(Public Resources Code §§ 21081etseg; CEQA Guidelines §§ 15091 et seq.).)
CEQA requires that the lead agency adopt mitigation measures or alternatives where feasible to
avoid or mitigate significant environmental impacts that would otherwise occur with the
implementation of the project. Project mitigation or alternatives are not required,however, where
they are infeasible or where a mitigation measure is within another agency's responsibility and
jurisdiction. (CEQA Guidelines § 15091(a)) For those significant impacts that cannot be
mitigated to a less than significant level, the lead agency is required to find that specific
overriding economic, legal, social, technological, or other benefits of the proposed project
outweigh the significant effects on the environment (Public Resources Code § 21081(b) and
CEQA Guidelines § 15093) If such findings can be made, the CEQA Guidelines state in Section
15093(a) that "the adverse environmental effects may be considered acceptable." CEQA also
requires that the findings made pursuant to Section 15091 be supported by substantial evidence
in the record(CEQA Guidelines, § 15091(b)). Under CEQA, substantial evidence means enough
relevant information has been provided (reasonable inferences from this information may be
made) to support a conclusion, even though other conclusions might also be reached. Substantial
evidence includes facts, reasonable assumptions predicated on facts, and expert opinion
supported by facts (CEQA Guidelines, § 15384).
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The findings reported in the following pages incorporate the facts and discussions in the FIR for
the Project as fully set forth therein. For each of the significant impacts identified in the FIR, the
following sections are provided:
• Description of Significant Effects: A specific description of the environmental effects
identified in the FIR, including a conclusion regarding the significance of the impact.
• Finding: One or more of the three specific findings set forth in CEQA Guidelines
Section 15091.
• Mitigation Measures: Identified feasible mitigation measures or actions, that are required
as part of the project, and if mitigation is infeasible, the reasons supporting the finding
that the mitigation is infeasible.
• Rationale: A summary of the reasons for the finding(s).
• Reference: A citation to the specific section in the EIR addressing the identified impact
including the evidence supporting the finding.
For environmental impacts that are identified in the EIR as less than significant and do not
require mitigation,a statement explaining why the impacts me less than significant is provided.
II. Environmental Impacts That Are Less Than Significant and Do
Not Require Mitigation
The District hereby finds that the following environmental impacts will be less than significant.
A.Aesthetics
1. Adverse Effect on Scenic Vista: Construction and operation of the proposed sewer
pipelines and abandonment of the sewer pump stations would have minimal effects on
scenic vistas in the area. Brief views of construction activities occurring in Talbert
Regional Park from the short segment of Pacific Coast Highway designated as a scenic
vista by the City of Huntington Beach may be available to southbound motorists;
however, views would be obscured by distance and would be partially screened by
intervening built and natural elements. Also, because aboveground facilities are not
proposed (pipelines would be installed underground), the project would not affect views
from the roadway during operations. Therefore, the proposed project would have a less
than significant impact on designated scenic vistas in the vicinity.
Reference.: EIR pp. 4.1-11 to pp. 4.1-12
2. Adverse Effect on a Scenic Resource: There are no officially designated state scenic
highways located within the project area. Distant views of Talbert Regional Park and
OCSD construction activities in the park may be visible to southbound motorists on a
short segment of Pacific Coast Highway (an eligible but not officially designated state
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scenic highway). However, views would be intermittent, brief, and screened by
intervening topography and vegetation. Therefore, because views to Talbert Regional
Park would be distant, brief, and partially obstructed, construction activities would not
impact the highway or its scenic eligibility status (proposed pipelines would be installed
underground would therefore not be visible). Construction and operation would not
impact scenic resources within a designated state scenic highway corridor and, overall,
impacts would be less than significant.
Reference.: EIR pp. 4.1-12
3. Visual Character (Construction): Construction activities would be concentrated within
areas of existing disturbance located along the boundaries of parks, and the majority of
project impacts would be to developed land and disturbed habitat (within Talbert
Regional Park) and ornamental vegetation (within Canyon Park); therefore, the
established visual character and quality of Talbert Regional Park and Canyon Park would
be largely maintained during construction and impacts would be less than significant.
Reference.: EIR pp. 4.1-13
4. Visual Character(Construction): Construction personnel and equipment would visit each
pump station site and perform the necessary work within the footprint of the existing
pump station. Therefore, construction would not be anticipated to impact surrounding
vegetation, and because construction activities would not be stationary at any of the pump
stations for a prolonged period of time, they would not substantially degrade the existing
visual character of the area. As such, impacts would be less than significant.
Reference: EIR pp. 4.1-13
5. Visual Character (Construction): Construction activities associated with the installation
of sewer pipelines in existing roads (i.e., Brookhurst Street, Canyon Drive, and 19th
Street) would not substantially degrade the existing character of neighborhoods.
Residential neighborhoods along Brookhurst Street, Canyon Drive, and 19th Street are
supported by overhead electrical and communication utility lines; tall, narrow
streetlights; storm drains; and pump stations; and the introduction of new sewerage would
not degrade the existing visual character of the area. Therefore, impacts would be less
than significant.
Reference: EIR pp. 4.1-13 to pp. 4.1-14
6. Visual Character (Operation): During operation, the proposed sewer pipelines would not
be visible and would therefore not degrade the visual character of the proposed project
area. All disturbed areas would be restored to preconstruction conditions and impacts
would be less than significant.
Reference: EIR pp. 4.1-12 to pp. 4.1-14
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7. Source of Ligbt/Glare (Construction): Construction activities associated with the
proposed project will comply with the permitted hours of construction established by the
Cities of Costa Mesa, Huntington Beach, and Newport Beach. Therefore, because
nighttime construction would not occur in association with the installation of the
proposed sewer pipelines and abandonment of existing pump stations, nighttime lighting
would not be required. With regard to glare,the introduction of construction vehicles and
equipment to Talbert Regional Park, to Canyon Park, and at staging areas associated with
the proposed sewer pipeline would not generate substantial new sources of glare. Impacts
would be less than significant.
Reference.: EIR pp. 4.1-14 to pp. 4.1-15
8. Source of Light/Glue(Operation): Once the proposed sewer pipelines are installed, open
trenches would be backfilled and HDD entry and exit points would be restored (all areas
disturbed during construction would be restored to their preconstruction conditions).
Because the proposed sewer pipelines would be installed underground and no new
aboveground facilities or sources of ligbfing are proposed, the proposed project would
not introduce new sources of light or glare and impacts would be less than significant.
Reference.' EIR pp. 4.1-15
B.Air Quality
1. Conflict with Applicable Air Quality Plan: The proposed project would not conflict with
or propose to change existing land uses or applicable policies as designated in the City of
Costa Mesa General Plan Conservation Element, the City of Huntington Beach General
Plan Air Quality Element, or the City of Newport Beach General Plan Update EIR Air
Quality Assessment. Since growth data from these plans were used as a basis for the
SCAQMD 2012 Air Quality Management Plan (AQMP), the proposed project would not
conflict with AQMP, which is the current applicable air quality plan. Impacts would be
less than significant.
Reference: EIR pp. 4.2-13
2. Violate Air Quality Standards (Construction): Construction of the proposed project would
result in a temporary addition of pollutants to the local airshed caused by soil disturbance,
dust emissions, and combustion pollutants from on-site construction equipment, as well
as from personal vehicles, vendor/delivery trucks, and off-site haul trucks. Daily
construction emissions would not exceed the thresholds for VOCs,NO., CO, SO„PM lo,
or PM2.5. As such, the proposed project would result in a less than significant impact
during construction.
Reference: EIR pp. 4.2-13 to pp. 4.2-16
3. Violate Air Quality Standards (Operation): Operational vehicle trips associated with
inspection, maintenance, and repair of the sewer mains and laterals would periodically
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occur; however, inspection and maintenance activities are already occurring under
existing conditions as performed by existing staff. Operational emissions would be less
than significant.
Reference: EIR pp. 4.2-16 to pp. 4.2-17
4. Cumulatively Considerable Net Increase: construction emissions from the proposed
project would not exceed SCAQMD significance thresholds. The proposed project is not
anticipated to generate substantial operational emissions. Furthermore, the project would
not conflict with the SCAQMD 2012 AQMP, which addresses the cumulative emissions
in the South Coast Air Basin (SCAB). Accordingly, the proposed project would not result
in a cumulatively considerable increase in emissions of nonattainment pollutants and
impacts would be less than significant.
Reference.: EIR pp. 4.2-17
5. Exposure of Sensitive Receptors to Pollutant Concentrations: sensitive receptors are
located within the project area (the closest being the residences within approximately 50
feet of the proposed pipelines), operation of equipment would occur for a very short
duration (i.e., 1-2 days) in any one area, as approximately 30-60 feet of pipeline would be
constructed each day. Construction activities would not generate substantial emissions of
TACs, specifically diesel exhaust particulate matter, and impacts to sensitive receptors in
the vicinity of project construction would be less than significant. Operation of the
proposed sewer mains and laterals would not result in direct emissions (e.g., those from a
point source such as stationary boilers or engines). Thus, it would not result in exposure to
sensitive receptors in the vicinity of the project, and impacts would be less than significant.
Reference: EIR pp. 4.2-18
6. Odors (Construction): Potential sources that may emit odors during construction activities
include diesel equipment and gasoline fumes and asphalt paving material. Odors from
these sources would be localized and generally confined to the project site. As such,
proposed project construction would not cause an odor nuisance, and odor impacts would
be less than significant.
Reference: EIR pp. 4.2-18 to pp. 4.2-19
7. Odors (Operation): Included in the proposed project's purpose and objectives is avoiding
the potential for chronic odor complaints due to force-main air release appurtenances
required at high points in the pipeline profile. Emanation of foul odor is not anticipated to
be a significant issue. If necessary, foul air generation would be prevented by raising the
pH of the wastewater by upstream addition of magnesium hydroxide solution or other
odor control method tailored to the resulting conditions. Project operations would result
in a less than significant impact.
Reference: EIR pp. 4.2-19
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C. Biological Resources
1. Direct Impacts to Special-Status Plant Species: Permanent direct impacts to 47
individual southern tarplant (0.01 acre) represent approximately 1% of the individuals
within the study area. These individuals occur within or adjacent to dirt roads and in
other disturbed conditions that are present throughout the project area and are subject to
impacts for regular park activities (vehicle use, bicycling, trampling, pets, etc.). This
level of impact has not precluded the species from persisting within the Talbert Nature
Preserve and this permanent impact would not appreciably reduce the population size,
affect the status of the species, or the species' ability to persist within this area and is
therefore less than significant.
Reference.: EIR pp. 4.3-24
2. Direct Impacts to Special-Status Wildlife Species: Permanent and temporary direct
impacts to annual grassland, mderal, developed land, disturbed habitat, and ornamental
vegetation communities and land cover types are considered less than significant because
these areas do not support habitat for special-status species.
Reference.: EIR pp. 4.3-25
3. Indirect Impacts to Special-Status Wildlife Species: Potential short-term indirect impacts
to special-status wildlife in the project study area would primarily result from
construction activities and include impacts related to or resulting from the generation of
fugitive dust,noise, chemical pollutants, increased human activity, and non-native animal
species. Short-term indirect impacts to annual grassland, ruderal, developed land,
disturbed land, and ornamental vegetation communities and land cover types would not
be significant because these areas do not support habitat for special-status species. In
particular, annual grassland and mderal areas are too small to support significant raptor
foraging habitat or use by special-status mammal species. Special-status wildlife species
primarily rely upon the wetland/riparian and coastal sage scrub communities within
Talbert Nature Preserve and would therefore not be significantly affected by temporary
impacts to other communities/land covers.
Special-status wildlife species use of areas more than 300 feet north, west, and east of
Talbert Regional Park is highly limited. There may be some occasional perching on street
trees and other ornamental vegetation within these urbanized areas, but nesting is not
expected to occur. The 300-foot distance is a commonly accepted safe distance beyond
which indirect impacts are not likely to affect special-status vegetation communities (CBI
2000). Therefore, construction and maintenance in developed streets more than 300 feet
from Talbert Regional Park would result in less than significant impacts to special-status
wildlife species.
Reference.: EIR pp. 4.3-26
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4. Indirect Impacts to Special-Status Wildlife Species: Noise generated by future
maintenance and repair during the non-breeding season may affect off-site light-footed
clapper rail, but these events are expected to be infrequent and short in duration such that
impacts would be less than significant.
Reference: EIR pp. 4.3-26
5. Direct Impacts to Non-Special-Status Vegetation Communities: Permanent impacts to
non-special-status vegetation communities and land cover types (ruderal, developed land,
and disturbed land) are considered less than significant as these communities are not rare
and do not support special-status species.
Reference.: EIR pp. 4.3-28
6. Conflict with Local Policies or Ordinances Protecting Biological Resources: As discussed
in Section 4.9, Land Use and Planning, Tables 4.9-4, 4.9-5,4.9-6, and 4.9-7,the proposed
project would be in compliance with all local policies and ordinances protecting
biological resources. The proposed project would also be in compliance with the City of
Costa Mesa General Plan Conservation Element Policies CON-1A.1 and CON-1A.5,
with mitigation. In addition, the proposed project would be in compliance with the City
of Huntington Beach General Plan Land Use Element Policy LU 5.1.1 and Coastal
Element Policies C-6.1.3 and C-7.1.2. Furthermore, the proposed project would be in
compliance with the City of Newport Beach General Plan Natural Resources Element
Policies 10.5, 10.6, 13.1, and 13.2. Since the proposed project would not conflict with
any local policies or ordinances protecting biological resources, impacts would be less
than significant.
Reference.: EIR pp. 4.3-31 to pp. 4.3-32
7. Conflict with Adopted Habitat Conservation Plan or Natural Community Conservation
Plan: Although the proposed project was not an anticipated covered activity under the
County of Orange Central/Coastal NCCP/HCP, the project has been designed to comply
with the NCCP/HCP siting, construction, and operations and maintenance policies. The
proposed project's compliance with the NCCP/HCP is presented in Table 4.3-7. Areas
that require particular demonstration of compliance during project construction and
ongoing maintenance include preparation of revegetation and monitoring plans,
biological monitoring, and ongoing communication and reporting to Orange County
Parks (OC Parks) as the reserve owner/manager for this portion of the NCCP/HCP
Reserve. Since the proposed project is compliant with the NCCP/HCP, impacts would be
less than significant.
Reference: EIR pp. 4.3-32 to pp. 4.3-34
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D. Cultural Resources
1. Historical Resources: there are no known historical resources within the Area of Potential
Effect (APE). Therefore, implementation of the proposed project would not impact any
known, significant historical resources and no impact would occur.
Reference: EIR pp. 4.4-11
E. Geology and Soils
1. Alquist-Priolo Earthquake Fault Zone: there are no known active or potentially active
faults within the project area. Additionally, the project area is not located within an
Alquist-Priolo Special Studies Zone. However, the project area is located within the
active Newport—Inglewood fault zone. The proposed project components would be
constructed in accordance with the California Building Code (CBC) and applicable
design and construction requirements of OCSD, CMSD, and the City of Newport Beach,
which would reduce the potential for risks related to seismic events. These include
specifications for excavation, composition of fill, and materials to be used to ensure
construction worker safety, and to protect proposed sewer lines from damage during
seismic events. Therefore, impacts associated with the rupture of a known earthquake
fault would be less than significant.
Reference: EIR pp. 4.5-9 to pp. 4.5-10
2. Exposure to Seismic Ground Shaking (Construction): there are no known active or
potentially active faults within the project area. Additionally, the project area is not
located within an Alquist-Priolo Special Studies Zone. However, the project area is
located within the active Newport—Inglewood fault zone. The closest active trace of the
Newport—Inglewood fault zone, the Newport—Inglewood (Los Angeles Basin) Fault, is
approximately 0.4 mile south of the project area. An estimated earthquake magnitude of
7.1 could occur on this fault zone. Based on the existing mapped fault location, the
probability of damage due to surface ground rupture is low to moderate. Surface ground
cracking related to shaking from distant events is not considered a significant hazard. The
proposed project components would be constructed in accordance with applicable design
and construction requirements of the CBC, OCSD, CMSD, and the City of Newport
Beach,which would reduce the potential for risks associated with seismic ground shaking
and seismic-related ground failure. Excavations that appear unstable or are deeper than 4
feet will be shored or the sides of the excavation will be laid back to slope inclinations of
approximately 1.5:1 (horizontal to vertical). Therefore, impacts during construction
would be less than significant.
Reference.: FIR pp. 4.5-10 and FIR Table 3-1 pp. 3-11 to 3-13
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3. Exposure to Seismic Ground Shaking (Operation): Once constructed, the proposed
project would not include any structures intended for human occupancy and the
components of the proposed project would be restricted from public use. The proposed
project components would be constructed in accordance with applicable design and
construction requirements of the CBC, OCSD, CMSD, and the City of Newport Beach,
which would reduce the potential for risks associated with seismic ground shaking.
With adherence to all recommendations for the proposed project, operational impacts
would be less than significant.
Reference.: EIR pp. 4.5-10 and EIR Table 3-1 pp. 3-11 to 3-13
4. Seismic Related Ground Failure: It is anticipated that the sandy alluvial deposits beneath
the project area would be susceptible to soil liquefaction during a large earthquake. The
proposed project components would be constructed in accordance with applicable design
and construction requirements of the CBC, OCSD, CMSD, and the City of Newport
Beach, which would reduce the potential for risks associated with seismic ground
shaking. With adherence to all recommendations for the proposed project, construction
and operational impacts would be less than significant.
Reference.: EIR pp. 4.5-11 and EIR Table 3-1 pp. 3-11 to 3-13
5. Exposure of People or Structures to Landslides: Based on the geotechnical report
prepared by Ninyo & Moore (Appendix E), there is no evidence of landslides within the
project area and the potential for future landslides within the project area is low. The
proposed project components would be constructed in accordance with applicable design
and construction requirements of the CBC, OCSD, CMSD, and the City of Newport
Beach, which would reduce the potential for risks associated with seismic ground
shaking. With adherence to all recommendations for the proposed project, construction
and operational impacts would be less than significant.
Reference: EIR pp. 4.5-11
6. Potential for Soil Erosion (Construction): Excavation and ground-disturbing activities
during construction of the proposed project could potentially leave loose soil exposed to
the erosive forces of rainfall and high winds, which would increase the potential for soil
erosion and loss of topsoil. OCSD, CMSD, and the City of Newport Beach would prepare
and implement a SWPPP, which would include construction best management practices
(BMPs) to control erosion and sediment during construction activities. Impacts would be
less than significant.
Reference: EIR pp. 4.5-12 and EIR Table 3-1 pp. 3-11 to 3-13
7. Potential for Soil Erosion (Operation): Upon completion of construction all disturbed
surfaces would be stabilized and restored to initial condition. It is therefore not
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anticipated that the proposed project would result in substantial soil erosion or significant
losses in topsoil. Impacts would be less than significant.
Reference: EIR pp. 4.5-12
8. Site Stability: The proposed project is located on soils susceptible to liquefaction, while
the potential for landslides is considered low. The proposed project components would be
constructed in accordance with applicable design and construction requirements of the
CBC, OCSD, CMSD, and the City of Newport Beach, which would reduce the potential
for risks associated with unstable soils. Subsurface evaluations will be performed in order
to develop detailed design criteria for the proposed project. With adherence to all
recommendations for the proposed project, impacts related to unstable soils would be less
than significant.
Reference.: EIR pp. 4.5-12 to pp. 4.5-13 and EIR Table 3-1 pp. 3-11 to 3-13
9. Expansive Soils: The project site is underlain by fill and other soils that have the potential
for expansion. In order to address potential risks associated with expansive soils, the
proposed project would follow the recommendations of the Preliminary Geotechnical
Evaluation prepared by Ninyo & Moore (Appendix E). With adberence to all
recommendations for the proposed project, impacts related to expansive soils would be
less than significant.
Reference.: EIR pp.4.5-13 and EIR Table 3-1 pp. 3-11 to 3-13
10. Septic Tanks for Disposal of Wastewater: The proposed project does not involve any
septic tanks or alternative wastewater disposal systems.No impacts would result.
Reference.: EIR pp.4.5-14
F. Greenhouse Gas Emissions
1. Generation of Greenhouse Gas (GHG) Emissions (Construction): Construction of the
proposed project would result in GHG emissions that are primarily associated with use of
off-road construction equipment and on-road construction vehicles (e.g., haul trucks and
vendor/delivery trucks) and worker vehicles. Construction-related GHG emissions would
occur intermittently over a 24-month period and would not represent a long-term source
of GHG emissions. Accordingly, the proposed project would not generate an increase in
construction GHG emissions that would have a significant impact on the environment;
therefore, impacts would be less than significant.
Reference.: EIR pp. 4.6-9 to pp. 4.6-10
2. Generation of Greenhouse Gas (GHG) Emissions (Operation): The proposed project
would not involve an increase in long-term operational activities. Once the new sewer
pipelines are installed, no additional routine daily operational activities that would
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generate GHG emissions are anticipated to occur. Accordingly, the proposed project
would not generate an increase in operational GHG emissions that would have a
significant impact on the environment. Impacts would be less than significant.
Reference: EIR pp. 4.6-10 to pp. 4.6-11
3. Conflict with GHG Reducing Plan, Policy or Regulation: On December 11, 2008, CARB
approved the Climate Change Proposed Scoping Plan: A Framework for Change
(Scoping Plan; CARB 2008) to achieve the goals of AB 32. The Scoping Plan
establishes an overall framework for the measures that will be adopted to reduce
California's GHG emissions. While federal and state legislation will ultimately reduce
GHG emissions associated with the project, no specific plan, policy, or regulation
would be directly applicable to the project.
At this time, the City of Costa Mesa, the City of Huntington Beach, the City of Newport
Beach, local jurisdictions, and the SCAQMD have not adopted a GHG reduction plan, as
specified in Section 15183.5(b) of the CEQA Guidelines, which would apply to the GHG
emissions associated with the proposed project. Accordingly, no mandatory GHG
regulations or finalized agency guidelines would apply to implementation of this project,
and no conflict would occur. Impacts would be less than significant.
Reference: EIR pp. 4.6-3 and pp. 4.6-11
G. Hazards and Hazardous Materials
1. Routine Transport, Use, or Disposal of Hazardous Materials: Construction of the
proposed project would involve the use of relatively small amounts of commonly used
hazardous substances, such as fossil fuels, lubricants, and solvents. A SWPPP and
associated BMPs would be implemented during construction that would minimize the
potential for hazardous materials release and ensure prompt cleanup in the event of such a
release. Since OCSD, CMSD, and the City of Newport Beach would be required to
comply with existing and future hazardous materials laws and regulations for the
transport, use, and disposal of hazardous materials, the impacts associated with the
potential to create a significant hazard to the public or the environment would be less
than significant.
Reference: EIR pp. 4.7-11 to pp. 4.7-12
2. Located Within an Airport Land Use Plan: There are no public airports within 2 miles of
the project area, nor is the project area within an airport land use plan. The nearest public
use airport is John Wayne International Airport, located approximately 7.5 miles
northeast of the project area. Therefore, the proposed project would not result in a safety
hazard for people residing or working in the project area. Therefore, no impact would
occur as a result of the proposed project.
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Reference.: FIR pp. 4.7-14
3. Vicinity of a Private Airstrip: The project area is not within the vicinity of a private
airstrip; the nearest public airport is John Wayne International Airport, located
approximately 7.5 miles northeast of the project area. Therefore, no impact would occur
as a result of the proposed project.
Reference.: FIR pp. 4.7-14
4. Interfere with Adopted Emergency Response Plan: Construction of the proposed project
is not anticipated to interfere with an adopted emergency response plan or evacuation
plan, nor would it substantially impede public access or roadway circulation; however,
there may be a temporary increase in traffic on these roadways due to increased track
loads or the transport of construction equipment to and from the project area during the
construction period. Once completed, the roadways would be restored to their original
condition and emergency evacuation would not be affected. Therefore, impacts to an
emergency response plan or evacuation plan would be less than significant.
Reference: EIR pp. 4.7-14 to pp. 4.7-15
5. Wild land Fire Hazard: The project area is located between a highly urbanized portion of
the county and the vast open space in Talbert Regional Park and Banning Ranch. The
City of Newport Beach designates Banning Ranch as having moderate fire susceptibility.
However, no aboveground structures would be built as part of the proposed project.
Therefore, no people or structures would be impacted by wildfires as a result of the
proposed project and impacts would be less than significant.
Reference: EIR pp. 4.7-15
H. Hydrology and Water Quality
1. Water Quality Standards or Waste Discharge Requirement (Construction): preparation
and implementation of a SWPPP is included for general water quality protection and
erosion and sedimentation control during construction. With regard to sedimentation,
control measures may include perimeter protection, storm drain inlet protection, and/or
velocity reduction measures. Construction stormwater BMPs would also be consistent
with those described in the Orange County DAMP for construction activities. Therefore,
impacts would be less than significant.
Reference: EIR pp. 4.8-14 to pp. 4.8-15
2. Water Quality Standards or Waste Discharge Requirement (Operation): The proposed
project would not generate significant amounts of non-visible pollutants as the use of
colorless sealants, adhesives, cleaning products or other materials during general
maintenance activities would be limited. Although urban development projects in
Southern California commonly result in the generation of pollutants once they have been
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constructed, the proposed project consists almost entirely of underground pipeline
construction. Once the proposed project is in operation, leak prevention would be
provided through OCSD's PMP and emergency response would be provided through
OCSD's SSO ERP, as well as participation in the CASC. Therefore, the potential for
pollutant generation during operation of the proposed project is negligible; as such,
impacts would be less than significant.
Reference.: EIR pp. 4.8-15 to pp. 4.8-16
3. Deplete Groundwater Supplies (Construction): During construction of the proposed
project, groundwater may be encountered while excavating trenches for pipeline
construction or during excavation activities associated with entry and exit pits for
trenchless construction. Although groundwater may be encountered, it should be noted
that groundwater resources would not be relied upon for water supply for dust
suppression or any other construction-related need. Therefore, while construction of the
proposed project is not anticipated to deplete groundwater supplies or substantially
interfere with groundwater recharge, should dewatering be necessary during
construction, the necessary RWQCB permit would be obtained and appropriate control
measures and plans would be implemented. Impacts would be less than significant.
Reference.: EIR pp. 4.8-16 to pp. 4.8-17
4. Deplete Groundwater Supplies (Operation): Once the proposed sewer pipelines are
installed underground, trenches are backfrlled, and pump stations are abandoned, surface
disturbances along the proposed alignments would only occur sporadically. Maintenance
of sewer facilities would not deplete groundwater supplies and the presence of sewer
facilities would not substantially interfere with groundwater recharge. Impacts would be
less than significant.
Reference.: EIR pp. 4.8-17
5. Alter Existing Drainage Pattern Leading to Erosion (Construction): The existing drainage
pattern along the proposed alignments would be temporarily altered as a result of open-
cut trenching. While surface disturbances associated with open-cut trenching and
installation of the proposed sewer pipelines would alter existing drainage patterns, a
SWPPP would be prepared as a project design feature and BMPs would be implemented
during project construction to prevent pollutants from contacting stormwater and to
reduce the potential for on- and oft-site erosion and sedimentation. No net increase in
impervious surface area is proposed for the project, and once the proposed sewer
pipelines are installed, the disturbed areas would be returned to pre-project conditions.
Impacts would be less than significant.
Reference: EIR pp. 4.8-17 to pp. 4.8-18
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6. Alter Existing Drainage Pattern Leading to Erosion (Operation): No net increase in
impervious surface area is proposed for the project, and once the proposed sewer
pipelines are installed, the disturbed areas would be returned to pre-project conditions.
Therefore, the project would have a minimal impact on existing drainage patterns that
could potentially result in substantial on- or off-site erosion or siltation. Therefore,
impacts would be less than significant.
Reference.: EIR pp. 4.8-17 to pp. 4.8-18
7. Alter Existing Drainage Pattern Leading to Surface Runoff (Construction): Open-cut
trenching along the proposed sewer pipeline alignments would temporarily alter
existing drainage patterns. While surface disturbance associated with construction of
the proposed project is not anticipated to increase the rate or amount of surface runoff,
a SWPPP would be prepared as a project design feature (see Chapter 3, Project
Description, Table 3-1) and erosion- and sedimentation-control BMPs would be
implemented that would reduce the potential for on- or off-site flooding. Therefore,
impacts would be less than significant.
Reference.: EIR pp. 4.8-18
8. Alter Existing Drainage Pattern Leading to Surface Runoff (Operation): Because the
proposed sewer pipelines would be installed underground and disturbed areas would be
returned to pre-project conditions, no net increase in impervious surface area is
anticipated for the proposed project As such, impacts would be less than significant.
Reference.: EIR pp. 4.8-18
9. Exceed Capacity of Existing Stormwater Drainage System: No net increase in impervious
surface area is planned for the project and the disturbed areas would be returned to pre-
project conditions. Therefore, the project will have no impact on existing or proposed
stormwater drainage systems.
Reference.: EIR pp. 4.8-19
10. Substantially Degrade Water Quality: A SWPPP would be prepared as a required project
design feature and BMPs would be implemented during project construction to prevent
pollutants from contacting stormwater and to reduce the potential for on- and off-site
erosion and sedimentation. The proposed project would not generate significant amounts
of non-visible pollutants as the use of colorless sealants, adhesives, cleaning products or
other materials during general maintenance activities would be limited. Although urban
development projects in Southern California commonly result in the generation of
pollutants once they have been constructed, the proposed project consists almost entirely
of underground pipeline construction. Once the proposed project is in operation, leak
prevention would be provided through OCSD's PMP and emergency response would be
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provided through OCSD's SSO ERP, as well as participation in the CASC. Impacts
would be less than significant.
Reference: EIR pp. 4.8-19
11. Housing Within a 100-Year Flood Hazard Area: No housing is proposed as part of the
proposed project; therefore, no impact would occur.
Reference: EIR pp. 4.8-19
12. Structures Which Would Impede or Redirect Flood Flows: The proposed project is not
located within a 100-year floodplain and the proposed sewer pipelines would be installed
underground. Since the project does not propose any surface features or facilities, the
project would not impede or redirect surface water flows. No impact would occur.
Reference.: FIR pp. 4.8-19
13. Loss, Injury, or Death Due to Failure of Dam or Levee: The proposed project is not
located within a 100-year floodplain or a known Dam Inundation Zone. Therefore,
impacts associated with the exposure of structures to hazards associated with the failure
of a levee would be less than significant.
Reference.: FIR pp. 4.8-19
14. Inundation by Seiche, Tsunami, or Mudflow: Although the project is located adjacent to
the Santa Ana River and near the coastline, the project consists of underground pipeline
improvements; therefore, any surface inundation by seiche, tsunami, or mudflow would
pose minimal risk to the proposed improvements. Impacts would be less than significant.
Reference: FIR pp. 4.8-20
I.Land Use
OCSD Sewer Pipeline:
1. Physically Divide an Established Community (Construction): Although construction
would result in surface disturbance and increased activity along the proposed OCSD
sewer alignment along existing dirt trails within Talbert Regional Park for approximately
24 months, the presence of construction vehicles, equipment, and personnel would not
hinder travel between local communities. Access between the Cities of Newport Beach
and Huntington Beach along the proposed OCSD sewer alignment (i.e., through Talbert
Regional Park) is not currently available as the Santa Ana River effectively limits east—
west mobility through the area. Therefore, construction activities would not physically
divide an established community and impacts would be less than significant.
Reference.' FIR pp. 4.9-14
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2. Physically Divide an Established Community (Operation): Since the proposed project
would not introduce any aboveground structures that would physically divide an
established community and underground pipelines would not be divisive features in the
landscape,there would be no impact during operation of the project.
Reference: EIR pp. 4.9-14
CMSD and City of Newport Beach Facilities:
1. Physically Divide an Established Community (Construction): Open-trench construction
methods within 19th Street necessary for the installation of the proposed 12-inch gravity
sewer may result in temporary and sporadic lane closures that could affect residents of
the Newport Terrace condominium development (19th Street is the sole access route for
residents into the development); however, with implementation of a standard traffic
control plan (see Section 4.12, Traffic and Circulation), impacts to traffic movement
through the construction area would remain below a level of significance. Further, as
temporary impacts to vehicular movement would not physically divide communities, no
impacts to land use would occur.
Reference: EIR pp. 4.9-15
2. Physically Divide an Established Community (Construction): Because construction
activities would be concentrated within the developed footprints of the individual pump
stations and because measures to maintain mobility around construction areas would be
provided (see Section 4.12, Traffic and Circulation), the physical division of an
established community would not occur. As such,there would be no impact.
Reference: EIR pp. 4.9-15
3. Physically Divide an Established Community (Operation): Since the proposed project
would not introduce any aboveground structures that would physically divide an
established community and underground pipelines would not be divisive features in the
landscape,there would be no impact during operation of the project.
Reference: EIR pp. 4.9-16
OCSD Sewer Pipeline:
1. Applicable Land Use Plan Consistency (Construction): The various components of the
Sewer Pipeline would be either consistent or consistent with mitigation with applicable
policies and regulations of the California Coastal Act, City of Costa Mesa, and City of
Huntington Beach. Therefore, the construction of the proposed project components would
not conflict with any applicable land use plan, policy, or regulation of an agency with
jurisdiction over the project. Impacts would be less than significant.
Reference: EIR pp. 4.940
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2. Applicable Land Use Plan Consistency (Operation): Operation of the proposed OCSD
Sewer Pipeline facilities would be located entirely underground and no aboveground
structures would be necessary during operation. As such, the proposed sewer facilities
would not conflict with applicable land use plan, policy or regulation. Impacts would be
less than significant.
Reference: EIR pp. 4.940
CMSD and City of Newport Beach Facilities:
1. Applicable Land Use Plan Consistency (Construction): The proposed CMSD and City of
Newport Beach facilities analyzed in the EIR would be either consistent or consistent
with mitigation with applicable policies and regulations of the California Coastal Act,
City of Costa Mesa, and City of Newport Beach. Impacts would be less than significant.
Reference: EIR pp. 4.940
2. Applicable Land Use Plan Consistency (Operation): CMSD and City of Newport Beach
sewer facilities would be located entirely underground and no aboveground structures
would be necessary during operation. Therefore,no impact would occur.
Reference: EIR pp. 4.941
All Facilities:
1. Consistency with Habitat Conservation Plan or Natural Community Conservation Plan:
compliance with the Orange County Central and Coastal Natural Community
Conservation Planning and Habitat Conservation Plan (Central/Coastal NCCP/HCP)
requires compliance with several siting, construction, and operations and maintenance
policies. The proposed project has been designed to be consistent with applicable criteria
and policies of the Central/Coastal NCCP/HCP, and as such, the proposed project would
not conflict with an applicable habitat conservation plan or natural community
conservation plan. Impacts would be less than significant.
Reference.: EIR pp. 4.9-41
J. Noise
OCSD Sewer Pipeline:
1. Noise in Excess of Established Standards (Construction): The anticipated construction
noise levels in each city are above the thresholds for exterior noise in or near residential
development. However, because construction during both open trench and HDD
operations would conform to the cities' respective noise ordinances limiting the hours of
construction, the impact would be less than significant.
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Reference: EIR pp. 4.10-11
2. Noise in Excess of Established Standards (Operation): Upon completion, the proposed
project would not employ pumps, motors, or other noise-generating equipment.
Therefore, there would be little or no operational noise generated during project
operation. Impacts would be less than significant.
Reference.: EIR pp. 4.10-12
CMSD and City of Newport Beach Facilities:
1. Noise in Excess of Established Standards (Construction): The anticipated construction
noise levels in each city are above the thresholds for exterior noise in or near residential
development. However, because construction during both open trench and HDD
operations would conform to the cities' respective noise ordinances limiting the hours of
construction, the impact would be less than significant.
Reference.: EIR pp. 4.10-12
2. Noise in Excess of Established Standards (Operation): Upon completion, the proposed
modifications to the CMSD and City of Newport Beach Facilities would not employ
pumps, motors, or other noise-generating equipment. Therefore, there would be little or no
operational noise generated during project operation.
Reference.: EIR pp. 4.10-13
All Facilities:
1. Generate Excessive Ground-bome Vibration: Vibration levels from heavy construction
machinery(such as a loaded truck) would be below both the readily perceptible level and
the annoyance and damage level for normal structures. Upon completion, the proposed
project would not employ pumps, motors, or other ground-borne noise or vibration-
generating equipment. Therefore, the proposed project would not expose persons to or
generate excessive ground-bome vibrations or ground-borne noise and would have a less
than significant impact.
Reference: EIR pp. 4.10-13 to pp. 4.10-14
2. Permanent Increase in Ambient Noise: Upon completion, the proposed project would not
employ pumps, motors, or other noise- or vibration-generating equipment. Once the new
alignment is operational, a vacuum truck would be used periodically(approximately on a
monthly basis)to clean the system's inverted sewer siphon. These maintenance activities,
though relatively brief(typically on the order of 4 to 5 hours duration), would result in
noise levels well above the 60 dBA Ley threshold for special-status species, depending
upon the distance from the work location to the habitat area. In order to ensure that the
high levels of noise associated with periodic maintenance do not adversely affect special-
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status species, during the breeding season, the vacuum truck would be operated from the
existing Plant 2, which is not in proximity to special-status species habitat. Operation of
the proposed project would not result in permanent increases in ambient noise levels.
Reference: EIR pp. 4.10-14 and pp. 4.10-15
3. Expose People to Excessive Noise Levels for a Project Located Within two Miles of
Public Airport: The nearest airport to the project area is John Wayne Airport, located
approximately 7.5 miles northeast The Airport Land Use Commission (ALUC) has a
responsibility to assist local agencies in ensuring compatible land uses in the vicinity of
all airports in Orange County. The ALUC has published an Airport Influence Area map
for John Wayne Airport (ALUC 2008). The project area is outside the Airport Influence
Area. Therefore,no impacts would occur from public airport or public use airport noise.
Reference.: EIR pp. 4.10-15
4. Expose People to Excessive Noise Levels for a Project Located in the Vicinity of a
Private Airport: The project area is not within the vicinity of a private airstrip. The
nearest airport to the project area is John Wayne Airport, located approximately 7.5 miles
northeast. Since there are no private airstrips within the vicinity of the project area, no
impact would occur as a result of the proposed project
Reference.' EIR pp. 4.10-15
K. Recreation
OCSD Sewer Pipeline:
1. Increase Use of Existing Parks (Construction): Construction staging areas for open
trench work would be located along the proposed sewer facility alignments, primarily
along an existing dirt trail (Trail D) along the eastern and southern boundary of Talbert
Regional Park. Construction staging for the HDD work associated with the proposed
inverted siphon to be installed beneath the Santa Ana River and the adjacent Santa Ana
River Trail & Parkway would be located within the fenced boundary of OCSD Plant
No. 2 and along the proposed open trench/gravity sewer alignment within Trail D of
Talbert Regional Park. Although Trail D would be temporarily closed to park users
during construction, interior trails within the park (i.e., Trails B, C, E, and F) will
remain open and connectivity to the North Talbert area, Fairview Park, and the Santa
Ana River Trail & Parkway will be maintained. In addition, no impacts to the Santa
Ana River Trail & Parkway are anticipated to occur in association with HDD activities.
Project impacts associated with the physical deterioration of recreational facilities
would be less than significant.
Reference.: EIR pp. 4.11-8—4.11-9
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2. Increase Use of Existing Parks (Operation): Once constructed, the proposed OCSD and
CMSD sewer pipelines would be located underground and would not conflict with
recreation use of trails with Talbert Regional Park. Therefore, the operation of proposed
sewer facilities would not be anticipated to increase the use of existing regional or
neighborhood parks such that substantial physical deterioration of the facility would
occur or be accelerated, and impacts would be less than significant.
Reference.: EIR pp. 4.11-10
CMSD and City of Newport Beach Facilities:
1. Increase Use of Existing Parks(Construction): The proposed CMSD 12-inch gravity sewer to
be installed between the existing Aviemore Terrace Pump Station (CMSD No. 5) and Sea
Bluff Pump Station (CMSD No. 16) would be partially located within Trail A of Talbert
Regional Park. Therefore, during construction of this sewer facility, Trail A would be closed
to recreational usage and construction activities would physically impact the trail via open cut
trenching. Project design features have been incorporated to minimize potential confusion
regarding the availability of recreational facilities/trails, and ensures that trails temporarily
impacted during construction are not farther affected by urpermitted usage and activity (see
Chapter 3, Project Description). OCSD and CMSD will provide advance notice, between 2
and 4 weeks prior to construction, of impending closure of trails within Talbert Regional
Park. The announcement will state specifically where and when construction will occur in the
park and will be posted on the park's informational kiosk as well as on the OC Parks, parks
and trails website. In addition, the City of Newport Beach will also post information on their
website, stating when and where construction will occur and will work with the City of Costa
Mesa to coordinate the posting of trail closure information on recreation website as well. The
traffic control plans will include signage and flagmen when necessary, and will be approved
by each affected city in advance of construction. Therefore, project impacts during
construction would be less than significant.
Reference: EIR pp. 4.11-9 to pp. 4.11-10 and pp. 3-13
2. Increase Use of Existing Parks (Operation): Once constructed, the proposed OCSD and
CMSD sewer pipelines would be located underground and would not conflict with recreation
use of trails with Talbert Regional Park. Impacts would be less than significant.
Reference.: EIR pp. 4.11-8 to pp. 4.11-10
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All Facilities:
1. Construction of Recreational Facilities: The proposed project does not include
recreational facilities and would not require the construction or expansion of recreational
facilities, and no impact would result.
Reference: EIR pp. 4.11-10 to pp. 4.11-11
L.Traffic
1. Conflict with Applicable Plan, Ordinance, or Policy (Construction): Construction of the
proposed project would primarily occur within Talbert Regional Park, Canyon Park, and
surrounding residential areas. The proposed OCSD components would not involve any
construction within roadways, except for the connection to the existing Interplant Line
within Brookhurst Street just west of Treatment Plant No. 2. Construction of the CMSD
and City of Newport Beach components, however, would involve construction within
19th Street and Canyon Drive. All other facilities would be outside of existing roadways.
The proposed project may require temporary lane closures during construction of the
proposed City of Newport Beach 12-inch sewer in 19th Street, the proposed CMSD 24-
inch sewer in Canyon Drive, and the proposed OCSD connection to the Interplant Line in
Brookhurst Street, which may increase congestion on these streets during peak travel
times. Traffic-control plans would be prepared to address construction traffic and road
closures within the public rights-of-way of the Cities of Costa Mesa, Huntington Beach,
and Newport Beach. There would also be provisions for emergency vehicle access,
signage, and flagmen to ensure that traffic flow is not substantially impacted. Impacts
would be less than significant.
Reference: EIR pp. 4.12-7 to pp. 4.12-8
2. Conflict with Applicable Plan, Ordinance, or Policy (Operation): Once constructed, the
proposed sewer pipelines would be located below the surface of the roadways and would
not obstruct or impede any flow of transportation. Impacts would be less than significant.
Reference: EIR pp. 4.12-8
3. Conflict with Applicable Congestion Management Plan (Construction): the proposed
project may require temporary lane closures during installation of the proposed OCSD
24-inch gravity sewer west of the Santa Ana River on Brookhurst Street, the proposed
CMSD 12-inch sewer on 19th Street, and the proposed CMSD 24-inch gravity sewer on
Canyon Drive. None of the impacted streets are listed as CMP-designated highways nor
would the proposed project transect any CMP-designated highways. Therefore, the
proposed project would not conflict with any standards in the CMP and impacts would be
less than significant.
Reference.: FIR pp. 4.12-8
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4. Conflict with Applicable Congestion Management Plan (Operation): Once constructed,
the proposed project would not generate traffic since only routine maintenance and
emergency repairs would require vehicle access to the proposed pipelines. Therefore,
operation of the proposed project would not conflict with an applicable congestion
management program and impacts would be less than significant.
Reference: EIR pp. 4.12-9
5. Result in Change of Air Traffic Patterns: The proposed project does not include any
permanent above-ground components. Therefore, it would not result in a change in air
traffic patterns or result in substantial safety risks and there would be no impact.
Reference.: EIR pp. 4.12-9
6. Substantially Increase Hazards due to a Design Feature: The proposed project does not
involve any design features or incompatible uses that would increase hazards within the
project area. All construction within existing roadways would be temporary and the
roadways would be restored to their existing condition after construction is complete. No
impact would result.
Reference.' EIR pp. 4.12-9
7. Inadequate Emergency Access: Lane closures could temporarily affect emergency access
in these areas; however, as listed in Table 3-1 in Chapter 3, Project Description, traffic-
control plans will be prepared to address construction traffic and road closures within the
public rights-of-way of the Cities of Costa Mesa, Huntington Beach, and Newport Beach.
The traffic-control plans would include provisions to ensure emergency vehicle access,
signage, and flagmen to ensure adequate emergency access is maintained throughout
construction within public rights-of-way. Once completed, the roadways would be
restored to their original condition and emergency access would not be affected.
Therefore, impacts to emergency access would be less than significant.
Reference.: EIR pp. 4.12-9 to pp 4.12-10
8. Public Transit, Bicycle, or Pedestrian Safety and Performance: The proposed project
would not result in any conflicts with adopted policies, plans, or programs that support
alternative transportation,as all proposed pipelines would be located underground and the
ground surface would be returned to current conditions following construction. However,
during construction within Canyon Drive, 19th Street, and Brookhurst Street,bus service,
bicycle lanes, and pedestrian sidewalks within these roadways may be temporarily
impacted. As listed in Table 3-1 in Chapter 3, Project Description, traffic-control plans
will be prepared to address construction traffic and road closures within the public rights-
of-way of the Cities of Costa Mesa, Huntington Beach, and Newport Beach. The traffic-
control plans will include provisions for the allowance of bicyclist, pedestrian, and bus
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access throughout construction. Therefore, with implementation of the traffic-control
plans, impacts would be less than significant.
Reference: EIR pp. 4.12-10
M. Utilities,Service Systems, and Energy
1. Exceed Wastewater Treatment Requirements: the proposed project would continue to
comply with all applicable permits and would not exceed wastewater treatment
requirements. Impacts would be less than significant.
Reference: EIR pp. 4.13-16
2. Construction of New Water or Wastewater Treatment Facilities: implementation of the
proposed project would not require or result in the construction of new water or
wastewater treatment facilities which could cause significant environmental impact,
impacts would be less than significant.
Reference: EIR pp. 4.13-16
3. Construction of Storm Water Drainage Facilities: The proposed project would result in no
net increase in impervious surface area since all disturbed areas would be returned to pre-
project conditions upon completion of construction and the 20-foot-wide access road
would be permeable. Construction of the proposed project would not require new
stormwater drainage facilities or the expansion of existing facilities since construction
best management practices (BMPs)would be implemented. As a result, impacts would be
less than significant.
Reference: EIR pp. 4.13-17
4. Sufficient Water Supplies: The proposed project may require water for construction-
related activities, including watering dirt or dusty materials, and washing down streets or
paved areas. OCSD, CMSD, and the City of Newport Beach's existing water entitlements
and resources would be adequate to support the proposed project's needs. No water
would be used during the operational stage of the proposed project. Therefore, the
proposed project would have sufficient water supplies and no new or expanded
entitlements would be needed, and impacts would be less than significant.
Reference: EIR pp. 4.13-17
5. Adequate Wastewater Treatment Capacity: The project would not increase the total
amount of wastewater to be treated at OCSD Plant No. 2, nor does it involve the
development of any land uses that would result in increased demand for wastewater
treatment. Therefore, impacts would be less than significant.
Reference.' FIR pp. 4.13-17 to pp. 4.13-18
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6. Sufficient Landfill Capacity: Solid waste generated from the proposed project would
include debris from pump station abandonment and trash accumulated by the construction
crew. Impacts to surrounding landfills would be temporary during the construction phase,
and impacts associated with sufficient landfill capacity to accommodate the proposed
project's solid waste disposal needs would be less than significant.
Reference: EIR pp. 4.13-18
7. Comply with Solid Waste Regulations: All trash produced by contractors and equipment
operators would be removed from the project area daily and disposed of properly in
accordance with federal, state, and local statutes and regulations related to solid waste.
Efforts will be made to recycle all reusable materials in cooperation with local agencies
and businesses. Impacts would be less than significant.
Reference: EIR pp. 4.13-18
8. Exceed Available Energy Supply (Construction): Construction of the proposed project
would result in a temporary increase in energy consumption. The current supply of
energy resources would be sufficient to serve construction activities and impacts would
be considered less than significant.
Reference: EIR pp. 4.13-18 to pp. 4.13-19
9. Exceed Available Energy Supply (Operation): Operation of the proposed project would
result in minimal energy consumption due to vehicle trips to and from the project area
during operation and maintenance activities. However, the proposed project would not
require any energy resources to operate efficiently. Impacts would be less than significant.
Reference.: EIR pp. 4.13-19
10. Wasteful or Inefficient Energy Consumption (Construction): Construction of the
proposed project would result in a temporary increase in energy consumption due to the
use of construction equipment and vehicles. The proposed project would integrate design
features and construction measures that would help to reduce the energy use associated
with construction equipment and vehicles. As a result, construction of the proposed
project would not result in wasteful, inefficient, or unnecessary use of energy, and
impacts would be less than significant.
Reference.: EIR pp. 4.13-19
11. Wasteful or Inefficient Energy Consumption (Operation): The proposed project would
allow for the abandonment of eight pump stations (six CMSD pump stations, one City of
Newport Beach pump station, and one private pump station), which would dramatically
reduce the amount of energy resources consumed by the existing wastewater infrastructure.
As a result, operation of the proposed project would not result in wasteful, inefficient, or
unnecessary use of energy, and impacts would be less than significant.
Reference: EIR pp. 4.13-19 to pp. 4.13-20
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III. Environmental Impacts Found To Be Less Than Significant
After Mitigation
The EIR identifies significant impacts that are reduced to a "less-than-significant' level provided
that the mitigation measures identified in the EIR are incorporated into the project. These
measures avoid, minimize, rectify, or reduce significant effects identified in the EIR to a less
than significant level. OCSD, having reviewed and considered the information contained in the
EIR, finds pursuant to Public Resources Code Section 21081(a)(1) and Guidelines Section
15091(a)(1) that the following potentially significant impacts will be less than significant after
implementation of the specified mitigation measures. These mitigation measures are presented in
the Mitigation Monitoring and Reporting Program, which the Board is adopting concurrently
with these findings.
A. Biological Resources
1. Direct or Indirect Impacts on Special-Status Species:
Impact BIO-1
Description of Significant Effects: Temporary direct impacts to 621 individual
southern tarplants are considered significant due to the relative rarity of this species,
as indicated by its CRPR of 1B.1. In addition, impacts may occur outside the
proposed impact area and may occur in the future during maintenance/repair; these
impacts would be significant.
Reference: EIR pp. 4.3-2
Impact BIO-2
Description of Significant Effects: The proposed project would also have potentially
significant short- and long-term indirect impacts to special-status plant species. Potential
short- and long-term indirect impacts to southern tarplant in the project study area would
primarily result from the generation of fugitive dust, chemical pollutants, altered
hydrology, increased human activity, and other adverse effects that may be associated
with construction and future maintenance activities within and adjacent to Talbert
Regional Park. Indirect impacts to special-status plant species would be significant.
Reference: EIR pp. 4.3-24 and 4.3-25
Impact BIO-3
Description of Significant Effects: The permanent direct impact of 0.01 acre of
wetlands/riparian habitat and 0.02 acre of coastal sage scrub due to new manholes has the
potential to adversely affect special-status wildlife species. Three manholes would
partially encroach within adjacent southern willow scrub and mule fat scrub habitat and
two manholes would remove coastal sage scrub habitat within and immediately adjacent
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to existing dirt roads. These habitats potentially support several special-status upland and
riparian bird species. Specific impacts include the permanent loss of suitable breeding
habitat and/or foraging habitat for special-status wildlife species. Therefore, these
potential permanent direct impacts are considered significant.
Reference: EIR pp. 4.3-25
Impact BIO-4
Description of Significant Effects: Temporary direct impacts to 1.06 acres of
wetlands/riparian habitat and 0.19 acre of coastal sage scrub habitat associated with
construction of the proposed project could adversely affect special-status wildlife species
that use these habitats. In particular,the one observed territory of least Bell's vireo within
Talbert Regional Park would be temporarily impacted during construction. Specific
impacts include the temporary loss of suitable breeding habitat and/or foraging habitat for
special-status wildlife species, including least Bell's vireo. Therefore, these potential
temporary direct impacts are considered significant.
Reference: EIR pp. 4.3-25
Impact BIO-5
Description of Significant Effects: Noise generated during construction may significantly
affect off-site light-footed clapper rail (within the Santa Ana River Marsh)throughout the
year and special-status wildlife during the breeding season due to disruption of
reproduction potential, resulting in population declines. Noise generated by future
maintenance and repair during the breeding season of special-status wildlife has the
potential to significantly impact special-status wildlife. Therefore, short- and long-term
indirect impacts associated with the proposed project would be significant.
Reference.: EIR pp. 4.3-26
2. Direct or Indirect Impacts to Non-Special-Status Vegetation Communities:
Impact BIO-6
Description of Significant Effects.: Due to the rarity of wetland/riparian communities, and
the fact that portions of these areas were revegetated as mitigation for other projects and
are regulated jurisdictional communities, the proposed project's permanent direct impacts
to wetlands/riparian vegetation communities are considered significant.
Reference.' EIR pp. 4.3-28
Impact BIO-7
Description of Significant Effects: Due to the rarity of wetland/riparian communities, and
the fact that portions of these area were revegetated as mitigation for other projects and
we regulated jurisdictional communities, the proposed project's temporary direct impacts
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to special-status vegetation communities (wetlands/riparian and coastal sage scrub) are
considered significant.
Reference: EIR pp. 4.3-28
Impact BIO-8
Description of Significant Effects: Given the rarity of wetland/riparian and coastal sage
scrub vegetation communities and special-status species supported by these communities
in this area, long-term direct temporary impacts we considered significant.
Reference: EIR pp. 4.3-28
Impact BIO-9
Description of Significant Effects: Potential short- and long-term indirect impacts to
special-status vegetation communities in the project study area would primarily result
from the generation of fugitive dust, chemical pollutants, altered hydrology, increased
human activity, and other adverse effects that may be associated with construction and
future maintenance activities of the proposed project within and adjacent to Talbert
Regional Park. The proposed project's potential short- and long-term indirect impacts to
special-status vegetation communities are considered significant.
Reference.: EIR pp. 4.3-28
3. Direct or Indirect Impacts to Federally Protected Wetlands:
Impact BIO-10
Description of Significant Effects: The proposed project would result in temporary and
permanent direct impacts to several jurisdictional waters, including wetlands. The
identified direct permanent impacts to jurisdictional waters of 0.01 acre of new manholes
are considered significant absent mitigation.
Reference: EIR pp. 4.3-29
Impact BIO-11
Description of Significant Effects: Temporary construction activities and long-term
maintenance and repairs within jurisdictional waters would require review and approval
by wetlands resources agencies and these impacts are also considered significant.
Reference: EIR pp. 4.3-29
Impact BIO-12
Description of Significant Effects: The potential for frac-out (as well as associated
cleanup activities) would have temporary direct impacts on an undetermined area of
perennial unvegetated waters (the Santa Ana River). Temporary direct impacts may
include mortality of benthic macroinvertebrates, fish, and aquatic plants. Therefore,
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temporary direct impacts to jurisdictional waters as a result of HDD operations would
be significant.
Reference: EIR pp. 4.3-30
Impact BIO-13
Description of Significant Effects: Potential short- and long-term indirect impacts to
jurisdictional waters in the project study area would primarily result from the generation
of fugitive dust, chemical pollutants, altered hydrology, increased human activity, and
other adverse effects that may be associated with construction and future maintenance
activities of the proposed project. Potential short- and long-term indirect impacts to
jurisdictional waters, including wetlands, in the project study area are considered
significant as well.
Reference: EIR pp. 4.3-30
4. Direct or Indirect Impacts to Wildlife Corridors:
Impact BIO-14
Description of Significant Effects: Temporary direct impacts to 1.06 acres of
wetlands/riparian habitat and 0.19 acre of coastal sage scrub habitats associated with the
proposed project could adversely affect special-status wildlife species behavior, and
therefore temporarily impact wildlife movement/habitat linkage functions. These impacts
are considered significant.
Reference: EIR pp. 4.3-31
Impact BIO-15
Description of Significant Effects: Potential short- and long-term indirect impacts on
wildlife movement/habitat linkage functions in the project study area would primarily
result from potential additional fugitive dust, noise, chemical pollutants, human activity,
non-native animal species, and other adverse effects that may be associated with
construction and future maintenance activities of the proposed project within and
adjacent to Talbert Regional Park. These potential short- and long-term indirect impacts
due to construction and future maintenance and repair are considered significant.
Reference: EIR pp. 4.3-31
Mitigation Measures:
Mitigation Measure BIO-1: Mitigation for direct permanent and temporary impacts shall
be implemented through on-site restoration and enhancement/restoration of coastal sage
scrub and riparian/wetland communities. In accordance with the mitigation ratios
presented in Table 4.3-8. All temporary impacts to vegetated areas within Talbert Nature
Reserve will be restored with appropriate native vegetation (including impacts to
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disturbed vegetation, such as ruderal, ornamental, and annual grassland). A total of 1.79
acres are expected to be restored, offsetting all permanent and temporary significant
impacts to vegetation communities and existing mitigation areas. These mitigation areas
have been identified and determined to feasibly support the proposed native revegetation
to adequately mitigate project impacts. Feasibility of native revegetation is primarily
based on suitable soils, slopes, and aspect as well as the presence of similar native
vegetation adjacent to the proposed mitigation areas. See page 4.3-35 — 4.3-36 for
additional detail.
Mitigation Measure BIO-2: Project construction shall be completed by each agency
(OCSD, CMSD, and the City of Newport Beach) in conformance with the County of
Orange Central and Coastal Subregion Natural Community Conservation Planning and
Habitat Conservation Plan (NCCP/HCP),which provides for avoidance of impacts during
the breeding season of most special-status wildlife species as well as minimization of
impacts to biological resources. See page 4.3-37—4.3-39 for specific procedures.
Mitigation Measure BIO-3: OCSD, CMSD, and the City of Newport Beach shall each
develop an operations and maintenance manual for the project components within each
agency's service area. The operations and maintenance manuals, to be developed in
coordination with Orange County Parks (OC Parks), shall outline the restrictions and best
practices related to conducting operations, maintenance, and potential repair activities
within Talbert Regional Park. A draft Operations & Maintenance Manual is included as
Appendix J of the Biological Technical Report (Appendix Q. See page 4.3-39 for
additional detail.
Mitigation Measure BIO-4: OCSD, CMSD, and the City of Newport Beach shall each be
responsible for monitoring noise impacts to sensitive wildlife species. Regardless of the
time of year,during construction of the OCSD trunk sewer, a noise barrier shall be placed
along the southern edge of the alignment adjacent to the Santa Ana River Marsh to
minimize adverse noise impacts to the light-footed clapper rail. Construction activities in
this vicinity will be also minimized to extent feasible to reduce the potential for
disturbance to light-footed clapper rail (e.g., prior to utilizing this area for staging or
storage, OCSD or the Contractor shall document the need for construction activities to
occur in this area and the lack of suitable alternative sites). During the bird breeding
season (February 15—July 15), construction activities associated with the OCSD, CMSD,
and City of Newport Beach components that have the potential to generate greater than
60 A-weigbted decibels (dBA) hourly equivalent level (Ley) shall be monitored by a
qualified biologist to confirm that construction-generated noise is less than 60 dBA
hourly Ley at the location of any coastal California gnatcatcher, least Bell's vireo, light-
footed clapper rail, and/or raptor nests. Nest locations shall be determined by conducting
focused surveys weekly during the bird breeding season within 300 feet of any current or
planned construction. See page 4.3-39—4.3-40 for specific procedures.
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Mitigation Measure B/0-5: OCSD shall prepare and implement a frac-out contingency
plan. The plan shall be approved by the ACOE, CDFW, RWQCB, CCC, and USFWS.
The contingency plan is intended to minimize the potential for a frac-out associated with
tunneling activities; provide for the timely detection of frac-outs; and ensure an
organized, timely, and "minimum-impact' response in the event of an unlikely frac-out
and release of drilling lubricant(i.e.,bentonite). See page 4.3-40 for specific procedures.
Finding:
The Board finds that the recommended mitigation measures in the EIR, MM-BIO-I
through MM-BIO-S,will reduce identified impacts to biological resources (Impact BIO-1
through BIO-15) to less than significant levels. Mitigation measures MM-BIO-1 through
MM-BIO-S are adopted.
B. Cultural Resources
1. Impacts to Archaeological Resources:
Impact CUL-1
Description of Significant Effects.: Given the characteristics of the project area as a low-
lying floodplain that was periodically inundated, the potential for intact, unknown,
subsurface prehistoric archaeological materials to be present in the project area is
considered very low. However, in the unexpected event that grading and excavation
activities during construction of the proposed project unearth intact archaeological
materials, impacts would be potentially significant.
Reference.: EIR pp. 4.4-11 to pp. 4.4-12
2. Impacts to Paleontological Resources:
Impact CUL-2
Description of Significant Effects: Since the exact location and depth of sensitive
paleontological resources are unknown, in the event that unexpected, intact
paleontological resources are unearthed during construction, impacts would be
potentially significant.
Reference: EIR pp. 4.4-12
3. Impacts to Human Remains:
Impact CUL-3
Description of Significant Effects: The project area is not currently, nor has it historically,
been used as a cemetery. It is highly unlikely that the low-lying Santa Ana River
floodplain was used for human inhabitants and there is a low probability of encountering
human remains. However, in the unexpected event that human remains are unearthed
during construction activities, impacts would be potentially significant.
Reference: EIR pp. 4.4-12
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Mitigation Measures:
Mitigation Measures CUL-1: Prior to the start of any earthmoving activity within the
OCSD, CMSD, or City of Newport Beach service areas of the proposed project, an
archaeological monitor and Native American representative shall be retained by the
agency conducting earthmoving activity to monitor ground-disturbing activities
associated with their respective components of the proposed project. See page 4.4-13 for
specific procedures.
Mitigation Measures CUL-2: Based on geotechnical findings and the construction design
plans for the proposed OCSD, CMSD, and City of Newport Beach pipelines, an Orange
County-certified (OCC) paleontologist shall be retained by the agency conducting
earthmoving activity. Based on geotechnical findings and the final construction design
plans for the proposed OCSD, CMSD, and City of Newport Beach pipelines, the OCC
paleontologist shall develop a paleontological resources mitigation and monitoring plan
for each agency's respective components of the proposed project, prior to construction.
See page 4.4-14 for specific procedures.
Mitigation Measures CUL-3: In the event of accidental discovery of any human remains
during construction of the proposed project, the agency responsible for the discovery
shall contact the county coroner immediately and construction activities shall be halted in
accordance with Section 15064.5(e)(1) of the CEQA Guidelines and California Health
and Safety Code Section 7050.5. See page 4.4-14 for specific procedures.
Finding:
The Board finds that the recommended mitigation measures in the EIR, MM-CUL-1
through MM-CUL-3, will reduce identified impacts to cultural resources (Impact CUL-1
through CUL-3) to less than significant levels. Mitigation measures MM-CUL-1 through
MM-CUL-3 are adopted.
Reference: EIR pp. 4.4-13 to pp. 4.4-14
C. Hazards and Hazardous Materials
1. Accidental Release of Hazardous Materials:
Impact HAZ-1
Description of Significant Effects: The project area includes a number of areas with
(mown hazardous materials and areas with the potential to contain hazardous materials in
the surrounding area. Of the 49 sites identified in the Environmental Data Resources
(EDR) report, the former Newport Terrace Landfill was the only identified open release
site that may have impacted the environmental conditions in the project area. Due to the
potential to encounter refuse and other hazardous materials during installation of the three
pipelines listed above, impacts would be significant.
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Reference: EIR pp. 4.7-12
2. Hazardous Materials Release within One-quarter Mile of a School:
Impact HAZ-2
Description of Significant Effects: Due to the proximity to the former Newport Terrace
Landfill and potential to encounter refuse and other hazardous materials during
installation of the three pipelines listed above, impacts due to potential releases within
one-quarter mile of an existing school would be significant.
Reference: EIR pp. 4.7-13
3. Hazardous Materials Site Pursuant to Government Code Section 65962.5:
Impact HAZ-3
Description of Significant Effects: The EDR report revealed one open release site, the
former Newport Terrace Landfill, which has the potential to result in significant hazards
to the public or the environment during excavation for the proposed pipelines. During
excavation for the proposed CMSD 12-inch sewer(19th Street), the proposed OCSD 24-
inch gravity sewer (eastern border of Talbert Regional Park), and the proposed City of
Newport Beach 18-inch sewer (northwest comer of the City of Newport Beach
jurisdiction),potential impacts would be significant.
Reference: EIR pp. 4.7-13 to pp. 4.7-14
Mitigation Measures:
Mitigation Measure HAZ-1: OCSD, CMSD, and the City of Newport Beach shall each be
responsible for all aspects of mobilization, set-up, operation, testing, and management;
providing 24-hour trained personnel for monitoring and operation; pressure testing; spill
containment at all points of suction, discharge, and ramp crossing connections; and spill
management, including cleanup and replacement of damaged property and fines. See
page 4.7-15 for additional information.
Mitigation Measure HAZ-2: Prior to performing work within or adjacent of the former
landfill, contractors for OCSD, CMSD, and City of Newport Beach shall contact Orange
County Health Care Agency (OCHCA), the Lead Enforcement Agency (LEA) for the
landfill as well as monitor construction and excavation activities. See Page 4.7-15 to 4.7-
16 for additional information.
Mitigation Measures HAZ-3: During construction within 100 feet of the identified
Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR)
wells, OCSD shall conduct air monitoring every 15 minutes and visual observation. If
contamination is encountered, the contractors shall follow the Hazardous Materials
Contingency Plan(see MM-HAZ-4).
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Mitigation Measure HAZ-4: OCSD, CMSD, and the City of Newport Beach shall each
prepare a hazardous materials contingency plan for their respective portions of the
proposed project that will incorporate the appropriate procedures for the handling and
disposal of potentially hazardous materials in accordance with local, State and Federal
Regulations See page 4.7-16 for specific procedures.
Finding:
The Board finds that the recommended mitigation measures in the EIR, MM-HAZ-1
through MM-HAZ4, will reduce identified hazards and hazardous materials impacts
(Impact HAZ-2 through HAZ-4)to less than significant levels. Mitigation measures MM-
HAZ-1 through MM-HAZ4 are adopted.
Reference.: FIR pp. 4.7-15 to pp. 4.7-16
D. Hydrology and Water Quality
1. Water Quality Standards or Waste Discharge Requirement (Construction):
Description of Significant Effects: Horizontal directional drilling (HDD) construction
methods would be used to install an inverted gravity sewer siphon beneath the Santa
Ana River and to install a 24-inch sewer in Canyon Drive. To reduce potential
impacts associated with frac-out, Mitigation Measure BIO-5 has been provided (see
Section 4.3, Biological Resources) and would require OCSD and/or project
contractors to prepare a frac-out contingency plan for distribution and approval by the
ACOE, CDFW, RWQCB, CCC, and USFWS. Therefore, with implementation of an
approved frac-out contingency plan, potential impacts associated with HDD
construction methods would be less than significant.
Reference: EIR pp. 4.8-15
Mitigation Measures:
Mitigation Measure BI0-5: See Mitigation Measure BIO-5 above.
Finding:
The Board finds that the recommended mitigation measures in the EIR, MM-BIO-S, will
reduce identified hydrology and water quality impacts to less than significant levels. As
previously stated,mitigation measures MM-BIO-S is adopted.
Reference.: EIR pp. 4.8-15 and pp. 4.3-40
E.Noise
1. Temporary or Periodic Increase in Ambient Noise (Construction):
Description of Significant Effects: At locations that are more remote and not currently
influenced by regular human activity, construction noise would be considerably louder
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than the low existing ambient levels. To avoid a significant impact, Mitigation Measure
MM-BIO-4 would limit construction in areas where gnatcatcher habitat occurs within
500 feet of the construction area to the period between September 1 and March 1, the
non-breeding season. Therefore, noise impacts to special-status species during
construction would be less than significant.
Reference: EIR pp. 4.10-14 to pp. 4.10-15
2. Temporary or Periodic Increase in Ambient Noise (Operation):
Impact N0I-2
Description of Significant Effects: Once the new alignment is operational, a vacuum
truck would be used periodically (approximately on a monthly basis) to clean the
system's inverted sewer siphon. These maintenance activities, though relatively brief
(typically on the order of 4 to 5 hours duration), would result in noise levels well above
the 60 dBA Ley threshold for special-status species, depending upon the distance from
the work location to the habitat area. A noise barrier (soundwall) would not provide
sufficient reduction, and truck enclosures or other technologies would not be practical
to implement for this type of periodic work. In order to ensure that the high levels of
noise associated with periodic maintenance do not adversely affect special-status
species, during the breeding season, the vacuum truck would be operated from the
existing Plant 2, which is not in proximity to special-status species habitat.
Additionally, mitigation has been provided in the Biological Resources section of the
EIR (MM-BIO-4 in Section 4.3.5) and OCSD will continue to conduct bird surveys
annually. Noise impacts to special-status species during periodic maintenance
associated with operation would be significant absent mitigation.
Reference: EIR pp. 4.10-15
Mitigation Measures:
Mitigation Measure BLO-4: See Mitigation Measure BIO-4.
Findine:
Mitigation provided in the Biological Resources section of the EIR (MM-BIO-4 in
Section 4.3.5) would reduce potentially significant impacts related to temporary or
periodic increase in noise to less than significant levels. Additionally, OCSD will
continue to conduct bird surveys annually. The Board finds that the recommended
mitigation measures in the EIR, MM-BIO-4, will reduce identified impacts. As
previously stated,mitigation measure MM-BIO-4 is adopted.
Reference.: EIR pp. 4.10-15 and pp. 4.3-38
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IV. Findings Regarding Impacts That Are Found To Be Significant
and Unavoidable
OCSD hereby finds that the following environmental impacts are significant and unavoidable.
These findings are based on the discussion of impacts in Chapter 4 of the EIR.
A.Noise
1. Temporary or Periodic Increase in Ambient Noise (Construction):
Impact NOI-1
Description of Significant Effects: Construction of the proposed project would
temporarily increase ambient noise levels by more than 5 dB, and therefore construction
noise impacts with respect to a temporary or periodic increase in ambient noise levels in
the project area would be potentially significant.
Reference.: FIR pp. 4.10-14
Mitigation Measures:
Mitigation Measure NOLI: The Orange County Sanitation District (OCSD), Costa Mesa
Sanitary District (CMSD), and City of Newport Beach shall each require their respective
contractors to implement the following measures during construction of the proposed
project,to the extent feasible:
• Construction shall not occur between the hours of 6:30 p.m. and 7:00 a.m. Monday
through Friday, between 6:00 p.m. and 9:00 a.m. on Saturday, or at any time on
Sundays or federal holidays. The hours of construction, including noisy maintenance
activities and all material transport, shall be restricted to the periods and days
permitted by the local noise or other applicable ordinance.
• All noise-producing project equipment and vehicles using internal-combustion engines
shall be equipped with mufflers, air-inlet silencers where appropriate, and any other
shrouds, shields,or other noise-reducing features in good operating condition that meet or
exceed original factory specifications. Mobile or fixed "package" equipment (e.g., are
welders, air compressors) shall be equipped with shrouds and noise-control features that
are readily available for that type of equipment.
• All mobile or fixed noise-producing equipment used on the project that are regulated
for noise output by a local, state, or federal agency shall comply with such regulations
while in the course of project activity.
• Electrically powered equipment shall be used instead of pneumatic or internal-
combustion-powered equipment, where feasible.
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• Material stockpiles and mobile equipment staging, parking, and maintenance areas
shall be located as far as practicable from noise-sensitive receptors.
• Construction site and access road speed limits shall be established and enforced
during the construction period.
• The use of noise-producing signals, including homs, whistles, alarms, and bells, shall
be for safety warning purposes only.
• No project-related public address or music system shall be audible at any
adjacent receptor.
Finding:
The Board finds that noise impacts during construction activities would be significant and
unavoidable; Mitigation Measure MM-NOI-1 is adopted and will reduce this impact, but
not to a level of insignificance. This impact is overridden by project benefits as set forth in
the statement of overriding considerations adopted concurrently herewith.
Rationale: Implementation of the mitigation measure outlined above would reduce the
noise levels associated with construction of the proposed project to the maximum extent
practicable. However, even with implementation of the mitigation measure MM-NCI-1, the
daytime noise levels from construction of the proposed project, especially the proposed
CMSD and City of Newport Beach facilities, are expected to substantially exceed the
existing daytime ambient noise levels at the nearest residential uses and thus could result in
a substantial disturbance to these sensitive receptors. Therefore, because construction
activities associated with the proposed project would generate a substantial temporary or
periodic increase in ambient noise levels in the project area, this impact would remain
significant and unavoidable.
Reference: EIR pp. 4.10-16 to pp.4.10-17
V. Findings Regarding Project Alternatives
Project Objectives
1. Provide a reliable conveyance system for projected 2030 wastewater flows
tributary to each of the existing sewer pump stations proposed to be abandoned.
2. Provide infrastructure that may be efficiently maintained and easily accessed in
the event of an emergency.
3. Reduce the risk of spills in the local agency wastewater collection system due to
system failure.
4. Avoid operational risks associated with pump stations in the wastewater
collection system.
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5. Avoid substantial disruption in the Talbert Nature Preserve for construction
and operation.
6. Avoid the need for new easements from private property owners.
7. Avoid substantial traffic disruption during the construction phase, particularly on
Victoria Street and Hamilton Avenue.
8. Provide a solution that reduces the potential for chronic noise and odor complaints.
Project Alternatives
This section discusses four alternatives to the proposed project, including the No Project
Alternative. The No Project Alternative is a required element of an EIR pursuant to Section
15126.6(e) of the CEQA Guidelines that examines the environmental effects that would occur if
the project were not approved. The other alternatives are discussed as part of the "range of
reasonable alternatives" selected by OCSD. The alternatives addressed in this section are listed
below, followed by a more detailed discussion of each:
• No Project Alternative
• Plant No. 2 Pump Station Alternative
• Victoria Street Force Main Alternative
• Victoria Street Gravity Alternative
1. No Project Alternative (EIR, section 7.5.1 pp. 7-4 to pp. 7-10)
Alternative Description: Under the No Project Alternative, a new OCSD sewer pipeline
connecting the City of Newport Beach Pump Station at Walkabout Circle (Newport
Beach Pump Station) to OCSD Wastewater Treatment Plant No. 2 (Plant No. 2) would
not be constructed, nor would it include the construction of the Costa Mesa Sanitary
District (CMSD) and City of Newport Beach pipelines, or abandonment of associated
pump stations. The project area would not be impacted by construction of the pipelines,
or abandonment of the pump stations (all eight pump stations would remain in service).
Without a new OCSD sewer pipeline, there would continue to be risks associated with
facility failure of the eight existing pump stations. As such, the existing 9,800-foot
Fairview Road Trunk Sewer, which extends along Fairview Avenue between Newport
Boulevard and West Baker Street northeast of the project site, would require upsizing
with a parallel or replacement sewer to accommodate higher future projected wet-
weather flows.
Finding: The Board rejects this alternative for the following reasons: The No Project
Alternative would require upsizing of the Fairview Road Trunk Sewer with a parallel or
replacement sewer. This upsizing would meet the project objectives of providing a
reliable conveyance system for future projected flows, reducing the risk of system failure,
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and avoiding substantial disruption in Talbert Regional Park. The No Project Alternative
would also meet the project objectives of avoiding the need for new easements from
private property owners, avoiding traffic on Victoria Street/Hamilton Avenue, and
avoiding the potential for chronic noise and odor complaints at high points in the pipeline
profile. However, the No Project Alternative would not meet the project objective of
providing infrastructure that may be easily accessed in the event of an emergency, since
the Fairview Road Trunk Sewer runs beneath Fairview Road(a major arterial roadway in
the City of Costa Mesa). Nor would the No Project Alternative meet the project objective
of avoiding operational risks associated with pump stations, since none of the pump
stations would be abandoned under this alternative. The No Project Alternative would
meet some,but not all,project objectives.
Rationale: This alternative does not meet all project alternatives. This alternative would
not provide infrastructure that can be easily accessed in the event of an emergency. Nor
would this alternative avoid operational risks associated with pump stations, since none
of the pump stations would be abandoned under this alternative. Additionally as set
forth in detail in the EIR, this alternative would result in greater impacts to GHG
emissions, traffic and circulation, and utilities, service systems, and energy than the
proposed Project.
2. Plant No. 2 Pump Station Alternative(EIR section 7.5.2 pp. 7-10 to pp. 7-16)
Alternative Description: Under the Plant No. 2 Pump Station Alternative, the OCSD
sewer pipeline would have a similar alignment to the proposed project, and would include
the construction of approximately 3,400 linear feet of 24-inch-diameter gravity sewer
from the existing Newport Beach Pump Station site. The OCSD sewer pipeline would
extend south along the eastern border of Talbert Regional Park and then west from the
terminus of 19th Street toward the Santa Ana River. Construction of the CMSD and City
of Newport Beach pipelines and abandonment of associated pump stations would occur
under this alternative. Construction of the CMSD and City of Newport Beach pipelines
and abandonment of associated pump stations would occur under this alternative. The
vertical shaft on the east side of the Santa Ana River would be converted to a drop
manhole to transition the flow from the 24-inch upstream gravity sewer to the 24-inch
downstream gravity sewer installed within the jacked casing. The vertical shaft on the
west side of the Santa Ana River would be within the OCSD Plant No. 2 and would be
converted to a wet well for a submersible pump station or a conventional wet-pit/dry-pit
pump station. The new pump station located in OCSD Plant No. 2 would convey flows
with approximately 350 linear feet of 14-inch-diameter force main to the existing
Interplant Line in Brookburst Street
Finding: The Board rejects this alternative for the following reasons: The Plant No. 2
Pump Station Alternative would meet the project objectives of providing a reliable
conveyance system for future projected wastewater flows, providing for efficient
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maintenance and ease of access during a spill or emergency, and reducing the risk of
spills due to system failure. This alternative would also meet the project objectives of
avoiding the need for a new regional pump station in Talbert Regional Park as well as
avoiding the need for new easements from private property owners. In addition, the Plant
No. 2 Pump Station Alternative would meet the project objective of avoiding substantial
traffic disruption on Victoria Street and Hamilton Avenue because construction would
not take place on these streets. Furthermore, this alternative would meet the objective of
avoiding the potential for chronic noise and odor complaints due to force main air-release
appurtenances required at high points in the pipeline profile. The Plant No. 2 Pump
Station Alternative would meet all of the project objectives.
Rationale: Although this alternative would meet all of the project objectives, this
alternative would have greater impacts on air quality, biological resources, GHG
emissions, and utilities, service systems, and energy compared to the proposed project.
Additionally, this alternative would not avoid the project's significant and unavoidable
construction noise impacts.
3. Victoria Street Force Main Alternative (EIR section 7.5.3 pp. 7-16 to pp. 7-22)
Alternative Description: Under the Victoria Street Force Main Alternative, the OCSD
sewer pipeline would be constructed as approximately 3,200 linear feet of 14-inch-
diameter trunk sewer force main from a new pump station adjacent to the existing
Newport Beach Pump Station site. The trunk sewer force main would extend northwest
along the northern border of Talbert Regional Park in the existing dirt trail. From there
the trunk sewer force main would continue west on Victoria Street, which turns into
Hamilton Avenue on the west side of the Santa Ana River. The pipeline would be
installed within the existing bridge deck crossing the Santa Ana River. From the bridge,
the pipeline would remain on Hamilton Avenue until the intersection at Brookhurst
Street, where it would connect to the existing OCSD Interplant Line through a new
drop manhole.
Construction of the CMSD and City of Newport Beach pipelines and abandonment of
associated pump stations would occur under this alternative. All pipelines would be
installed by open trench construction methods, except for the portion installed within the
existing bridge deck. This bridge deck section would be installed by sliding and
supporting pipe segments into an existing empty bridge cell by use of spacers/rollers.
Finding: The Board rejects this alternative for the following reasons: The Victoria Street
Force Main Alternative would meet the project objectives of providing a reliable
conveyance system for future projected wastewater flows, providing for efficient
maintenance and ease of access during a spill or emergency, and reducing the risk of
spills due to system failure. This alternative would also meet the project objective of
avoiding the potential for chronic noise and odor complaints due to force main air-release
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appurtenances required at high points in the pipeline profile. This alternative would not,
however, meet the project objective of avoiding the need for new easements from private
property owners, since easements would be required along Hamilton Avenue. Nor would
this alternative meet the project objectives of avoiding substantial traffic disruption on
Victoria Street/Hamilton Avenue or avoiding the need for a new regional pump station in
Talbert Regional Park.
Rationale: The Victoria Street Force Main Alternative would meet some, but not all of
the project objectives. Additionally, as set forth in detail in the FIR, this alternative
would have greater impacts associated with GHG emissions, and utilities, service
systems, and energy than the proposed project.
4. Victoria Street Gravity Alternative(EIR section 7.5.4 pp. 7-22 to pp. 7-28)
Alternative Description: Under the Victoria Street Gravity Alternative, the OCSD sewer
pipeline would be constructed as approximately 1,500 linear feet of 24-inch-diameter
gravity sewer from the existing Newport Beach Pump Station site. Construction of the
CMSD and City of Newport Beach pipelines and abandonment of associated pump
stations would occur under this alternative. The OCSD sewer pipeline would extend
northwest along the northern border of Talbert Regional Park within the wide dirt trail
(Trail A) toward Victoria Street. A 1,235-linear-foot-long inverted sewer siphon segment
under the Santa Ana River would be installed by the HDD method. Once past the Santa
Ana River, the pilot bore would curve upward and exit the ground beyond the easterly
levee in Hamilton Avenue. Inverted sewer siphon inlet and outlet structures (manholes)
would be installed at both ends of the HDD-installed pipeline and would serve as the
transition points between the twin 14-inch inverted siphon segment of the pipeline and
the 24-inch-diameter pipelines on either side.
After the siphon, the flows would be conveyed by approximately 300 linear feet of 24-
inch-diameter gravity sewer in Hamilton Avenue to the existing OCSD Interplant Line in
Brookhurst Street. This segment of pipeline would be installed by open trench
construction methods.
Finding: The Board rejects this alternative for the following reasons. The Victoria Street
Gravity Alternative would meet the project objectives of providing a reliable conveyance
system for future projected wastewater flows, providing for efficient maintenance and
ease of access during a spill or emergency, and reducing the risk of spills due to system
failure. This alternative would also meet the project objectives of avoiding the potential
for chronic noise and odor complaints due to force main air-release appurtenances
required at high points in the pipeline profile, avoiding the need for new easements from
private property owners, and avoiding the need for a new regional pump station in
Talbert Regional Park. However, the Victoria Street Gravity Alternative would not meet
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the project objective of avoiding substantial traffic disruption on Victoria Street/Hamilton
Avenue. Therefore, this alternative would meet most of the project objectives.
Rationale: The Victoria Street Gravity Alternative would meet some but not all of the
project objectives. Additionally, as set forth in detail in the EIR, this alternative would
have greater impacts associated with geologic hazards than the proposed Project
VI. Findings Regarding Other CEQA Considerations
Significant Irreversible Environmental Effects (EIR section 6.3 pp.6-3)
The California Environmental Quality Act (CEQA) Guidelines (Section 15126.2(c)) require that
an EIR identify significant and irreversible environmental changes that would be caused by the
proposed project. Construction of the proposed project would consume fossil fuels, a non-
renewable resource, to power construction vehicles and equipment. The proposed project would
also require materials, including steel and concrete, to build the trunk sewer and other pipelines,
and to fill the abandoned pump stations. Operation of the proposed project would not increase
the use of fossil fuels. Therefore, the Board finds that the proposed project would not have
significant irreversible environmental effects.
Growth Inducing Impacts(EIR section 6.4 pp. 6-3)
Implementation of the proposed project would not potentially or directly result in population
growth or in the construction of additional housing in the project area. Construction of the
proposed project would continue for approximately 2 years, although it is not anticipated to
create employment opportunities beyond the levels normally available to construction workers in
the area. While additional workers would be required during construction of the proposed
project, it is anticipated that most of these workers would commute to the project area from
surrounding communities. In addition, once constructed,the proposed project components would
not require additional employees to maintain them. Therefore, the Board finds that the proposed
project would not induce growth in the project area.
VII. Findings Regarding Responses to Comments and Revisions in
the Final EIR
The final EIR includes the comments received on the EIR and responses to those comments. The
focus of the responses to comments is on the disposition of significant environmental issues
raised in the comments, as specified by CEQA Guidelines § 15088(b).
Finding/Rationale: Responses to comments made on the EIR and revisions to the final EIR
merely clarify and amplify the analysis presented in the document and do not trigger the need to
recirculate per CEQA Guidelines § 15088.5(b).
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Vill. Statement of Overriding Considerations
As set forth in the preceding sections, OCSD's approval of the Southwest Costa Mesa Trunk
Sewer Project No. 6-19 will result in a significant environmental impact that cannot be avoided
even with the adoption of all feasible mitigation measures. Whenever a lead agency adopts a
project which will result in a significant and unavoidable impact, the agency must, pursuant to
Public Resources Code sections 21002 and 21081(b) and State CEQA Guidelines section 15093,
state in writing the specific reasons to support its action based on the final EIR and/or other
information in the administrative record. As documented in the EIR and as explained in the
Findings, the Project will potentially result in one significant and unavoidable impact to the
environment as follows:
IMPACT NOI-1: Construction of the proposed project would temporarily increase ambient
noise levels by more than 5 dB and therefore result in a temporary or periodic increase in
ambient noise levels in the project area above levels existing without the project.
The Board has balanced the Project's benefits against the Project's significant unavoidable noise
impacts. The Board finds that the Project's benefits outweigh the Project's significant
unavoidable impacts, and therefore finds that the Project's significant unavoidable impacts are
acceptable. The Board finds that each of the following benefits is an overriding consideration,
independent of the other benefits, that warrants approval of the Project notwithstanding the
Project's significant and unavoidable impacts:
1. The proposed project would consolidate facilities and reduce the reliance on pump station
infrastructure. This would reduce the overall risks associated with facility failure and the
long-term operational, maintenance, and replacement costs associated with pump station
infrastructure.
2. The proposed project would successfully divert flows from the Fairview Road Trunk
Sewer, currently planned for upsizing to accommodate ultimate system flows. This
diversion is expected to eliminate the need for upsizing of the Fairview Road Trunk
Sewer, saving infrastructure replacement costs and impacts to the public during its
construction phase.
3. The proposed project would improve reliability and longevity of the wastewater collection
system,which would reduce the risk of spills and overflows due to system failure.
4. The demolition and removal of eight pump stations would reduce energy consumption
and greenhouse gas emissions.
5. Without construction of the proposed project (No Project Alternative), pump station
infrastructure would continue to be unreliable and infrastructure would not be put in
place that allows for efficient maintenance and easy access in the event of an emergency.
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Significant impacts resulting from inaction include GHG emissions, traffic and
circulation, and utilities, service systems, and energy.
6. The proposed project would avoid substantial traffic and circulation disruption on
Victoria Street/Hamilton Avenue, as well as, increased geologic hazards that would result
under the Victoria Street Gravity Alternative.
7. The proposed project would avoid substantial impacts on air quality,biological resources,
GHG emissions, and utilities, service systems, and energy that would result under the
Plant No. 2 Pump Station Alternative.
X. Adoption of Mitigation Monitoring And Reporting Program
Pursuant to Public Resources Code Section 21081.6, a public agency making findings required
by subdivision (a) of Section 21081 must adopt a reporting and monitoring program for the
changes to the Project which have been adopted or made a condition of project approval in order
to mitigate or avoid significant effects on the environment.
The Board hereby adopts the Mitigation Monitoring and Reporting Program. The Board further
finds that said program meets the requirements of Public Resources Code Section 21081.6 by
ensuring compliance during project implementation with the mitigation measures identified in
the EIR. The Mitigation Monitoring and Reporting Program is attached to these Findings as
Exhibit "A."
CONCLUSION
For the foregoing reasons, OCSD finds that the project's significant, unavoidable environmental
impacts associated with construction-related noise are outweighed by the above-referenced
benefits, any one of which individually would be sufficient to outweigh the significant,
unavoidable environmental effects of the proposed project. Therefore, the Board adopts these
Findings and Statement of Overriding Considerations.
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INTENTIONALLY LEFT BLANK
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"Attachment B" Return to nnenda Report
CHAPTER 11
MITIGATION MONITORING AND REPORTING PROGRAM
11.1 BACKGROUND
Public Resources Code Section 21081.6 requires the Lead Agency to adopt a reporting or
monitoring program for changes made to the project, or conditions of approval, adopted in order
to mitigate or avoid significant effects on the environment and to monitor performance of the
mitigation measures included in any environmental document to ensure that implementation
takes place. The reporting or monitoring program must be designed to ensure compliance during
project implementation.
This Mitigation Monitoring and Reporting Program (MMRP) has been prepared by the Orange
County Sanitation District (OCSD) to ensure that the proposed Southwest Costa Mesa Trunk
Sewer Project No. 6-19 (proposed project) implements the environmental mitigation identified
by the Final Environmental Impact Report (EIR) for the proposed project. The MMRP provides
a mechanism for monitoring and reporting compliance with the mitigation measures identified in
the EIR during project implementation.
11.2 RESPONSIBILITY
OCSD is the designated Lead Agency for the EIR, and the Costa Mesa Sanitary District (CMSD)
and City of Newport Beach are both responsible agencies for their components of the proposed
project. OCSD, CMSD, and the City of Newport Beach are each responsible for review of their
respective monitoring reports, enforcement actions, and document disposition. OCSD, CMSD,
and the City of Newport Beach will rely on information provided by a monitor as accurate and
up to date and will field check mitigation measure status as required.
11.3 ORGANIZATION
This MMRP is organized in table format, by each mitigation measure(s). The mitigation
measures in the table we identified by the alphanumeric code used in the Final EIR. The
following items are identified for each mitigation measure:
• Responsibility:This column assigns responsibility for the monitoring and reporting activities.
• Mitigation Tindng: This column includes the general schedule for conducting monitoring
and reporting activities and identifies both the timing and frequency of the action.
• Monitoring and Reporting Procedure. This column outlines the appropriate monitoring
and reporting procedures required to verify implementation of the mitigation measure.
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed MRigag Responsibility Mitigation Timing Monitoring and Reporting Procedure
Biological Resources
MM-BIO-1-Mitigation for direct permanent and temporary impacts shall be OCSD,CMSD,City of The restoration plans OCSD,CMSD,and City of Newport
implemented through on-site restoration of coastal sage scrub and Newport Beach shall be approved by the Beach to each document:(1)approval
riparian/wetland communities within and adjacent to the alignment in ACOE,CDFW,RWCQB, of the applicable restoration plan;(2)
accordance with the mitigation ratios presented in Table 4.3-8.All and CCC prior to implementation of the applicable
temporary impacts to vegetated areas within Talbert Nature Reserve will be commencement of restoration plan during construction;and
restored with appropriate native vegetation(including impacts to disturbed construction.The (3)implementation of restoration
vegetation,such as ruderal,ornamental,and annual grassland).A total of restoration plans shall be requirements during project operation.
1.79 acres are expected to be restored,offsetting all permanent and implemented during
temporary significant impacts to vegetation communities and existing construction.Restoration
mitigation areas. These mitigation areas have been identified and required by maintenance
detemlined to feasibly support the proposed native revegetation to and Ior repair activities
adequately mitigate project impacts. Feasibility of native revegetation is shall be implemented
primarily based on suitable soils,slopes,and aspect as well as the during project operation
presence of similar native vegetation adjacent to the proposed mitigation in accordance with the
areas. Operations&
OCSD,CMSD,and the City of Newport Beach shall each develop and Maintenance Manual.
implement a conceptual restoration plan for direct permanent and
temporary impacts within each agency's service area as identified in Table
4.3-8(see Figures 3-3 and 3-4 for identification of service areas).
The conceptual restoration plans shall provide for restoration of permanent
and temporary impacts of construction and implementation of required
additional enhancement(or other restoration)activities either on site,at an
acceptable off-site location,or through acquisition of approved mitigation
credits.Mitigation silelcredit acceptability will be determined by the ACOE,
CDFW,RWQCB,and CCC.The conceptual restoration plans shall,at a
minimum,include an implementation plan,plantinglseeding plan,invasive
species eradication methods,interim and final success criteria/performance
standards,estimated costs,and identification of responsible entities.The
conceptual restoration plans shall be approved by the ACOE,CDFW,
RWQCB,and CCC prior to construction of the proposed project.
Temporary impacts that occur during construction,outside the approved
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
In Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
limits,will require mitigation at a 1:1 ratio(1:1 in situ revegetation only).
Future temporary impacts within the proposed utility easements due to
maintenance andlor repair shall require restoration at a 1:1 ratio(in situ
restoration only)in accordance with the approved Operations&
Maintenance Manual.
MM-BIO-&Project construction shall be completed by each agency(OCSD, OCSD,CMSD,City of During construction OCSD,CMSD,and City of Newport
CMSD,and the City of Newport Beach)in conformance with the County of Newport Beach Beach to each document
Orange Central and Coastal Subregion Natural Community Conservation implementation of measures in a
Planning and Habitat Conservation Plan(NCCPIHCP),which provides for biological compliance report completed
avoidance of impacts during the breeding season of most special-status by a designated,qualified project
wildlife species as well as minimization of impacts to biological resources. biologist.
Implementation of the following measures(text in italics is language directly
taken from the Central/coastal NCCPIHCP)shall be documented in a
biological compliance report completed by a designated,qualified project
biologist.Whereas the conditions below reference coastal sage scrub(CSS),
these measures will also apply to other native habitats within the project
study area(i.e., riparian/wetland communities).
1)To the maximum extent practicable,no grading of CSS habitat
that is occupied by nesting gnafcafchers will occur during the
breeding season(February 15 through July 15).It is expressly
understood that this provision and the remaining provisions of
these"construction-related minimization measures,"are subject to
public health and safety considerations. These considerations
include unexpected slope stabilization,erosion control measure
and emergency facility repairs.In the event of such public health
and safety cimumstances,landowners or public agenciesruldiftes
will provide USFWSICDFW with the maximum practicable notice
(or such notice as is specified in the NCCPIHCP)to allow for
capture of gnafcatchers,cactus wrens and any other CSS
Identified Species that are not otherwise flushed and will carry out
the following measures only to the extent as practicable in the
context of the public health and safety considerations.
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
2)Prior to the commencement of grading operations or other activities
involving significant soil disturbance,all areas of CSS habitat to be
avoided under the previsions of the NCCPMCP,shall be identified
with temporary fencing or other markers clearly visible to
construction personnel.Additionally,prior to the commencement of
grading operations or other activities involving disturbance of CSS,
a survey[using USFWS-protocol survey methods]will be conducted
to focal@ gnatcatchers and cactus wrens within 100 feet of the outer
extent of projected soil disturbance activities and the locations of
any such species shall be clearly marked and identified on the
construction/grading plans.
3)A monitoring biologist,acceptable to USFWWDFW will be on site
during any clearing of CSS.The landownerorrdevant public
agency/utility will advise USFWSICDFW at least seven(7)calendar
days(andproherably fourteen(14)calendar days)prior to the
clearing ofany habitat occupied by Identified Species to allow
USFWSrCDFW to work with the monitoring biologist in connection
with bird flushinglicapture activities. The monitoring biologist will
flush Identified Species(avian or other mobile Identified Species)
from occupied habitat areas immediately prior to brush-cloadng and
earth-moving activities.If birds cannot be flushed,they will be
captured in mist nets,if feasible,and relocated to areas of the site to
be protected or to the NCCPMCP Reserve System[mist net
rapture and relocation is required for this project but may be
conducted by the NCCPIHCP reserve ownerfmanager(s)j.it will be
the responsibility of the monitoring biologist to assure that Identified
bird species will not be directly impacted by brush-clearing and
earth-moving equipment in a manner that also allows for
construction activities on a finely basis.
4)Following the completion of initial gradingrearth movement activities,
all areas of CSS habitat to be avoided by construction equipment
and personnel will be marked with temporary fencing and other
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
appropriate markers clearly visible to construction personnel.No
construction access,parking or storage of equipment or materials
will be permitted within such marked areas.
5)In areas bordering the NCCP Reserve System or Special
U'nkage/Special Management areas containing significant CSS
identified in the NCCPMCP for protection, vehicle transportation
routes between cut-and-fill locations will be restricted to a
minimum number during construction,consistent with project
construction requirements. Waste dirt or rubble will not be
deposited on adjacent CSS identified in the NCCPMCP for
protection.Preconstmcthm meetings involving the monitoring
biologist,construction supervisors and equipment operators will
be conducted and documented to ensure maximum practicable
adherence to these measures.
6)CSS identified in the NCCPMCP for protection and located within
the likely dust drift radius of construction areas shall be
periodically sprayed with water to reduce accumulated dust on the
leaves as recommended by the monitoring biologist.
In addition,the following measures not listed in the NCCPIHCP shall be
implemented by OCSD,CMSD,and the City of Newport Beach under the
direction of the project biologist:
1. At the end of each workday,the project biologist(or contractor
under the direction of the project biologist)will check that all
potential wildlife pitfalls(trenches,bores,and other excavations)
have been backfilled,covered,or sloped to allow wildlife egress.
Should wildlife individuals become trapped,a qualified biologist
shall remove and relocate them.
2. All pipes or other construction materials or supplies will be covered
or capped in storage or Iaydown areas at the end of each workday.
No pipes or tubing of sizes or inside diameters ranging from 1 to 10
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
inches will be left open either temporarily or permanently.
3. No equipment maintenance will be performed within 100 feet of
coastal sage scrub and/or wetland/riparian communities and
jurisdictional waters,where petroleum products or other pollutants
from the equipment may enter these areas.
4. All applicable measures of the current National Pollutant Discharge
Elimination System(NPDES)permit for construction activities shall
be implemented.
MM•BIO.3-OCSD,CMSD,and the City of Newport Beach shall each develop OCSD,CMSD,City of Prior to commencement OCSD,CMSD,and City of Newport
an operations and maintenance manual for the project components within each Newport Beach of construction Beach to each develop operations and
agencys service area(see Figures 33 and 3-4for identification of service maintenance manuals in coordination
areas). with OC Parks.
The operations and maintenance manuals,to be developed in coordination with
Orange County Parks(OC Parks),shall outline the restrictions and best
practices related to conducting operations,maintenance,and potential repair
activities within Talbert Regional Park.A draft Operations&Maintenance
Manual is included as Appendix J of the Biological Technical Report
(Appendix C).At a minimum,the manuals shall include:identification of
designated access roads and gates; expected patrol and maintenance time
intervals;routine repairlmaintenance activities and locations,areas and
procedures to be used for routine weed abatement and clearing;procedures for
notification of OC Parks regarding operations and maintenance activAies;
measures to minimize dust,runoff,tmstddebds,chemical pollutant spills,and
introduction of non-native invasive species;and any other anticipated
operational activities.The manuals shall also provide for avoidance and
minimization of maintenance activities during the bird breeding season
(February 15-July 15)and restoration of temporary impacts at a 1:1 ratio(iry
situ)where feasible.
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CHAPTER 11-MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
MM-13I04-OCSD,CMSD,and the City of Newport Beach shall each be OCSD,CMSD,City of During construction and Contractors to report to OCSD,CMSD,
responsible for monitoring noise impacts to sensitive wildlife species. Newport Beach future maintenance andlor the City of Newport Beach that
Regardless of the time of year,during construction of the OCSD trunk sewer, activities construction on behalf of each agency
a noise barrier shall be placed along the southern edge of the alignment was completed outside of breeding
adjacent to the Santa Ana River Marsh to minimize adverse noise impacts to season.
the light-footed clapper rail.Construction activities in this vicinity will be also OR
minimized to extent feasible to reduce the potential for disturbance to light- If any construction cannot be avoided
footed clapper rail(e.g.,prior to utilizing this area for staging or storage, during the breeding season,the
OCSD or the Contractor shall document the need for construction activities to contractor will report to OCSD,CMSD,
occur in this area and the lack of suitable alternative sites)During the bird and/or the City of Newport Beach the
breeding season(February 15-July 15),construction activities that have the results of the weekly biological survey
potential to generate greater than 60 A-weighted decibels(dBA)hourly for nesting bird species.
equivalent level(Leq)shall be monitored by a qualified biologist to confirm
that construction-generated noise is less than 60 dBA hourly Leq at the
location of any coastal California gnatcatcher,least Bell's vireo,light-footed
clapper rail,and/or raptor nests.Nest locations shall be determined by
conducting focused surveys weekly during the bird breeding season within
300 feet of any current or planned construction. If construction occurs within
300 feet of any active nests of these species,noise attenuation(e.g.,sound
walls,limitatons on the duration/frequency of noise-generating activities)
shall be implemented as necessary to reduce noise levels below the 60 dBA
hourly Leq threshold.Additionally,after construction has been completed nest
locations shall be detennined by conducting focused surveys annually during
the bird breeding season within 300 feet of any current or planned operations
or maintenance activities.This measure shall be incorporated into the
operations and maintenance manual to be prepared by each agency(OCSD,
CMSD,and City of Newport Beach)and shall apply to each agency's future
operations and maintenance activities,such that routine maintenance near
wildlife habitat areas is scheduled outside of the breeding season(to the
extent practicable)and noise/activity limitations(as discussed above)are
employed when maintenance and operations during the breeding season are
unavoidable.
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed III ilifligation Timing Monitoring and Reporting Procedure
MM-Eill OCSD shall prepare and implement a frao-out contingency plan. OCSD Prior to commencement OCSD to prepare and submit frao-out
The plan shall he approved by the ACOE,CDFW,RWOCB,CCC,and of construction plan for approval by the ACOE,CDFW,
USFWS.The contingency plan is intended to minimize the potential fora fraG RWOCB,CCC,and USFWS.
out associated with tunneling activities;provide for the timely detection of
fracouts;and ensure an organized,timely,and"minimum-impact"response
in the event of an unlikely frac-out and release of drilling lubricant(i.e.,
bentonite).The contingency plan all require,at a minimum,the following
measures:
• A full-time monitor will attend all drilling to look for observable free-
out conditions or lowered pressure readings on drilling equipment.
• Maintenance of a 25-fool minimum depth below the bottom of the
Santa Ana River.
• Use of lower pressure and nontoxic leak sealants in substrates
where frai are more likely to occur.
• If a frac-out is identified,all work will stop,including the recycling of
drilling lubricant. In the event of a frac-out into water,the pressure of
water above the tunnel will keep excess mud from escaping through
the fracture.The location and extent of the frac-out will be
determined,and the frac-out will be monitored for 4 hours to
determine whether the drilling lubricant congeals(bentonite will
usually harden,effectively sealing the frac-out location).
• If the drilling lubricant congeals,no other actions will be taken that
would potentially suspend sediments in the water column.
• Surface Releases of bentonite will be allowed to harden and then will
be removed.
• The contingency plan will identify additional measures to be taken to
contain or remove the drilling lubricant if it does not congeal.
• Notification procedures,including immediate notification of resource
agencies,in the event of a fraaoul.
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed MRigag Responsibility Mitigation Timing Monitoring and Reporting Procedure
Cultural Resources
MM-CU41-Prior to the start of any earthmoving activity within the 01 OCSD,CMSD,City of Prior to and during The archaeological monitor shall
CMSD,or City of Newport Beach service areas of the proposed project,an Newport Beach construction conduct preconstruction wltural
archaeological monitor and Native American representative shall be retained resources worker sensitivity training.
by the agency conducting earthmoving activity to monitor ground-disturbing The duration and timing of monitoring
activities associated with their respective components of the proposed shall be determined by the qualified
project,including but not limited to grading,excavation,brush clearance,and archaeologist in consultation with
grubbing.The archaeological monitor and Native American representative OCSD,CMSD,and the City of Newport
shall conduct preconstmction cultural resources worker sensitivity training to Beach.
bring awareness to personnel of actions to be taken in the event of a cultural
resources discovery.The archaeological monitor shall be,or shall work under In the event that cultural resources are
the supervision of,a qualified archaeologist,defined as an archaeologist unearthed during ground-disturbing
meeting the Secretary of the Interior's Standards for professional archaeology activities,the archaeological monitor
(U.S.Department of the Interior 2010).The duration and timing of monitoring shall have the authority to halt or
shall be determined by the qualified archaeologist and Native American redirect ground-disturbing activities
representative in consultation with OCSD,CMSD,and the City of Newport away from the vicinity of the find so that
Beach.Initially,all ground-disturbing activities associated with the proposed the find can be evaluated.
project shall be monitored.However,the qualified archaeologist and Native
American representative,based on observations of soil stratigraphy or other
factors,and in consultation with OCSD,CMSD,and the City of Newport
Beach,may reduce the level of monitoring as warranted.In the event that
cultural resources are unearthed during ground-disturbing activities,the
archaeological monitor and Native American representative shall have the
authority to halt or redirect ground-disturbing activities away from the vicinity
of the find so that the find can be evaluated.
If a cultural resource is encountered during constructor,construction
activities shall be redirected away from the immediate vicinity of the find until
it can be evaluated by a qualified archaeologist and Native American
representative. If the find is determined to be potentially significant,the
archaeologist,in consultation with OCSD,CMSD,or the City of Newport
Beach and appropriate Native American group(s)(if the find is a prehistoric or
Native American resource),shall develop a treatment plan that will identify
how such impacts can be avoided and I or mitigated.Construction activities
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
IN Proposed Mitigation Responsibility Mitigation Timing Monitoring and Reporting Procedure
shall be redirected to other work areas until the treatment plan has been
implemented or the qualified archaeologist and Native American
representative determines that work can resume in the vicinity of the find.
MM-CUL-2-Prior to the start of any earthmwving activities within the 01 OCSD,CMSD,City of Prior to and during OCC paleontologist to prepare and
CMSD,or City of Newport Beach service areas of the proposed project an Newport Beach construction submit paleontological resources
Orange County-certified(OCC)paleontologist shall be retained by the agency mitigation and monitoring plan to the
conducting earthmoving activity.Based on geotechnical findings and the final County for approval.
construction design plans for the proposed OCSD,CMSD,and City of Newport
Beach pipelines,the OCC paleontologist shall develop a paleontological In the event that paleontological
resources mitigation and monitoring plan for each agency's respective resources are unearthed during ground-
components of the proposed project,prior to construction.The mitigation and disturbing activities,excavations within
monitoring plans shall address preconstruction salvage and reporting; 50 feet of the find shall be temporarily
premnstmction contractor sensitivity training;procedures for paleontological halted until the find is examined by a
resources monitoring;microscopic examination of samples where applicable;the qualified paleontologist.
evaluation,recovery,identification,and coration of fossils;and the preparation of a
final mitigation report.The plan shall be consistent with the Society for Vertebrate
Paleontology Standard Guidelines for the mitigation of constructlonrelated
adverse impacts to paleontological resources.
In the event that paleontological resources are discovered during construction,
excavations within 50 feet of the find shall be temporarily halted or diverted until
the discovery is examined by the qualified paleontologist.The paleontologist
shall notify,the appropriate agencies to determine procedures that should be
followed before construction is allowed to resume at the location of the find.If
the lead agencies determine that avoidance is not feasible,the paleontologist
shall prepare an excavation plan for mitigating the effect of the proposed project
on the qualities that make the resource important.The plan shall be submitted
to the County for review and approval prior to implementation.
MIA-Ci In the event of accidental discovery of any human remains OCSD,CMSD,City of During construction OCSD,CMSD,and/or City of Newport
during construction of the OCSD,CMSD,or City of Newport Beach Newport Beach Beach to notify county coroner and halt
components of the proposed project,the agency responsible for the discovery construction in the event of accidental
shall contact the county coroner shall be notified immediately and discovery of human remains.
construction activities shall be halted in accordance with Section
15064.5 e 1 of the CEQA Guidelines and California Health and Safety Code
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigation Responsibility Mitigation Timinut Momitorinut and Reportinq Procedure
Section 7050.5.If the remains are found to be Native American,Health and
Safety Cade Section 7050.5,Subdivision(c),and Public Resources Code
5097.98(as amended by Assembly Bill 2641)shall be followed by the
appropriate agency.
Hazards and Hazardous Materials
MM-HAZ-1-The contractors for OCSD,CMSD,and the City of Newport OCSD,CMSD,City of During construction Contractors to report to OCSD,CMSD,
Beach shall each be responsible for all aspects of mobilization,setup, Newport Beach andlor the City of Newport Beach that all
operation,testing,and management;providing 24-hour trained personnel for preventative measures have been
monitoring and operation;pressure testing;spill containment at all points of adhered to during construction.
suction,discharge,and ramp crossing connections,and spill management,
including cleanup and replacement of damaged property and fines.In the
event of an unauthorized spill associated with the routine transport,use,or
disposal of hazardous materials,the contractors shall contact the California
Emergency Management Agency and the National Response Center.
MM-HAZ•2-Prior to performing work within or adjacent of the former landfill, OCSD,CMSD,City of Prior to and during Contractors to contact OCHCA prior to
contractors for OCSD,CMSD,and City of Newport Beach shall contact Newport Beach construction construction within or adjacent to former
Orange County Health Care Agency(OCHCA),the Lead Enforcement landfill,and report the results of
Agency(LEA)for the landfill.A geophysical survey will be performed in the geophysical survey to OCSD,CMSD,
southwestern potion of the landfill to evaluate the subsurface conditions and and City of Newport Beach.
determine the waste fill extents to ensure that excavation will be not located
within the waste fill areas of the landfill. Contractors to monitor construction
During construction of the proposed pipelines within or adjacent to the former activities within or adjacent to former
Newport Terrace Landfill,the contractors for OCSD,CMSD,and City of landfill and report findings to OCSD,
Newport Beach shall monitor construction and excavation activities within CMSD,and City of Newport Beach.
their respective service areas,including air monitoring for dust,volatile
organic compound(VOC)vapors,methane,and oxygen,and oversight to
determine presence of potentially hazardous materials. If impacts are
encountered,the contractors will fallow the Hazardous Materials Contingency
Plan(See MM-HAZ-0).
MM-HAZ-3-During construction within 100 feel of the identified Department OCSD During construction Contractor for OCSD to conduct and
of Conservation,Division of Oil,Gas,and Geothermal Resources(DOGGR) report findings of air monitoring and
wells,OCSD shall conduct air monitoring and visual observation. If visual observation during construction
contamination is encountered,the contractors shall follow the Hazardous within 100 feet of DOGGR wells.
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CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed M@igati Responsibility Mitigation Timing Monitoring and Reporting Procedure
Materials Contingency Plan(See MM-HAZ-0).
Milli OCSD,CMSD,and the City of Newport Beach shall each OCSD,CMSD,City of Prior to commencement OCSD,CMSD,and City of Newport
prepare a hazardous materials contingency plan for their respective portions Newport Beach of construction Beach to each prepare hazardous
of the proposed project(see Figures 3-3 and 34)that will incorporate the materials contingency plans to keep on
appropriate procedures for the handling and disposal of potentially hazardous file. Each agency will comply with the
materials in accordance with local,State and Federal Regulations,including plans during construction.
the following:
• Specific measures taken to protect worker and public health and
safety(e.g.Personal protective equipment and monitoring air for
dust,VOC vapors,methane and oxygen)
• Specific measures to be taken to manage refuse(d encountered)
(e.g.Contact LEA;stop work)
• Procedures for limiting access to the contaminated area to properly
trained personnel(e.g.Set-up traffic cones and caution tape)
• Procedures for notification and reporting,including internal management
and local agencies(as needed)(e.g.Reference threshold quantities and
contact LEA and National Response Center)
• A worker health and safety plan for excavation of potentially
contaminated soil and/or refuse
• Procedures for characterization and management of excavated soils
(e.g.,Soil sampling and stockpile soil management)
• Procedures for certification and completion of remediation.(e.g.
Collection of confirmation samples)
Noise
N01-1-The Orange County Sanitation District(OCSD),Costa Mesa Sanitary OCSD,CMSD,City of During construction Contractors to report to OCSD,CMSD,
District(CMSD),and City of Newport Beach shall each require their Newport Beach and/or the City of Newport Beach that all
respective contractors to implement the following measures during feasible noise reduction measures
construction of the proposed project,to the extent feasible: followed during construction.
• Construction shall not occur between the hours of 6:30 p.m.and
7:00 a.m.Monday through Friday,between 6:00 p.m.and 9:00 a.m.
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June 2014 11-12
Return b Acenda Report
CHAPTER 11—MITIGATION MONITORING AND REPORTING PROGRAM
Table 11-1
Mitigation Monitoring and Reporting Program
Proposed Mitigatio Responsibility Mitigation Timing Monitoring and Reporting Procedure
on Saturday,or at any time on Sundays or federal holidays.The
hours of construction,including noisy maintenance activities and all
material transport,shall be restricted to the periods and days
permitted by the local noise or other applicable ordinance.
• All noise-producing project equipment and vehicles using internal-
combustion engines shall be equipped with mufflers,air-inlet
silencers where appropriate,and any other shrouds,shields,or other
noise-reducing features in good operating condition that meet or
exceed anginal factory specifications.Mobile or fixed"package'
equipment(e.g.,arc welders,air compressors)shall be equipped
with shrouds and noise-control features that are readily available for
that type of equipment.
• All mobile or fixed noise-producing equipment used on the project
that are regulated for noise output by a local,state,or federal
agency shall comply with such regulations while in the course of
project activity.
• Electrically powered equipment shall be used instead of pneumatic
or internal-combustion-powered equipment,where feasible.
• Material stockpiles and mobile equipment staging,parking,and
maintenance areas shall be located as far as practicable from noise-
sensitive receptors.
• Construction site and access road speed limits shall be established
and enforced during the construction period.
• The use of noise-producing signals,including horns,whistles,
alarms,and bells,shall be for safety warning purposes only.
• No project-related public address or music system shall be audible
at any adjacent receptor.
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June 2014 11-13
CHAPTER 11-MITIGATION MONITORING AND REPORTING PROGRAM
INTENTIONALLY LEFT BLANK
So.M.st Costa Mesa Trunk Sewer Project No.6-19 7193
June 2014 11-14
ITEM NO. 14
MINUTES OF THE REGULAR MEETING OF
THE ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, July 9, 2014, at 5:30 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was held on July 9, 2014, at 5:40 p.m., in the Sanitation District's Administration
Building. Director Teresa Smith led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Brad Reese, Chair Jim Herberg, General Manager
David Benavides Bob Ghirelli, Assistant General Manager
Joe Carchio Lorenzo Tyner, Director of Finance
Steven Choi & Administrative Services
Tyler Diep Jeff Reed, Director of Human Resources
James Ferryman Rob Thompson, Director of Engineering
Peter Kim Ed Torres, Director of Operations and
Prakash Narain Maintenance
Teresa Smith Kelly Lore, Acting Clerk of the Board
Troy Edgar, Board Chair Jennifer Cabral
Tom Beamish, Board Vice-Chair Rich Castillon
John Withers, Vice-Chair Marc Dubois
Norbert Gaia
COMMITTEE MEMBERS ABSENT: Al Garcia
Rich Spencer
Gene Hernandez Christine Stanford
Janet Nguyen Cory Voss
Mike White
OTHERS PRESENT:
Brad Hogin, General Counsel
Bob Ooten, Alternate Director
Ed Soong, Public Resources Advisory
Group
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Committee Chair Reese did not provide a report.
07/09/2014 Administration Committee Minutes Page 1 of 5
REPORT OF GENERAL MANAGER:
General Manager, Jim Herberg, announced that the OCSD sponsored legislation, SB
946 (Huff), was unanimously passed by the Senate on special consent on July 3, 2014.
The Governor will have 12 days to act on the measure, once he receives the bill. This
bill will change the membership on the District Board from the City of Yorba Linda to
Yorba Linda Water District.
REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES:
Director of Finance and Administrative Services, Lorenzo Tyner provided the Committee
copies of Standard & Poor's and Fitch ratings published July 1, 2014, which both
assigned OCSD with a AAA bond rating. He gave a brief statement regarding our
recent $90 million refunding and to Item 3 on the agenda, which is for two-year fixed-
rate obligations.
CONSENT CALENDAR:
1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the
June 11, 2014 Administration Committee Meeting.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, Smith and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez and Nguyen
2. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of
Directors to:
Adopt Resolution No. OCSD 14-XX, entitled "A Resolution of the Board of
Directors of the Orange County Sanitation District Authorizing the Orange County
Sanitation District's Treasurer to Invest and/or Reinvest District's Funds;
Adopting District's Investment Policy Statement and Performance Benchmarks
for FY 2014-15; and Repealing Resolution No. OCSD 13-13"
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, Smith and Withers
07/09/2014 Administration Committee Minutes Page 2 of 5
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez and Nguyen
3. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of
Directors to:
Authorize the General Manager to issue Revenue Refunding Certificate
Anticipation Notes, Series 2014B, as two-year fixed-rate obligations, subject to
market conditions, in an amount not to exceed $135.0 million to replace the
$129.625 million Revenue Refunding Certificate Anticipation Notes, Series
2013A maturing on October 16, 2014.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, Smith and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez and Nguyen
4. MOVED, SECONDED, AND DULY CARRIED:
Authorize use of Ordinance No. OCSD-44, Section 2.03:13. Cooperative
Purchases for a blanket order agreement to purchase equipment and services for
OCSD's Motorola radio systems, for a total amount not to exceed $250,000 to
include all tax and freight.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, Smith and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez and Nguyen
5. MOVED, SECONDED, AND DULY CARRIED:
A. Approve a Purchase Order Agreement with New Tech Solutions, the
lowest responsive and responsible bidder, for Purchase of Wireless Cisco
Parts, Specification No. FE-12-03, for an amount not to exceed
$106,142.49, delivered plus tax; and
07/09/2014 Administration Committee Minutes Page 3 of 5
B. Approve a contingency of$5,307.12 (5%).
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, Smith and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez and Nguyen
Committee Chair Reese stated that Item 7 would be heard out of order.
INFORMATION ITEMS:
7. Informational Presentation on Procurement Process
Contracts and Purchasing Manager, Marc Dubois presented an informative
PowerPoint presentation on Public Procurement including: ethics, types of
procurements, Mini-Brooks Act, policies and procedures, sole source contracts,
RFP's and Notice Inviting bids, Public Works construction, approval thresholds,
low bids and best values. He then answered questions from the Committee.
Director Teresa Smith left the meeting at 6:13 p.m.
NON-CONSENT CALENDAR:
6. Lorenzo Tyner, Director of Finance and Administrative Services presented a brief
PowerPoint regarding this item.
MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of
Directors to:
Direct staff to pay down on the District's unfunded actuarial accrued liability with
the Orange County Employee's Retirement System (OCERS) in the amount of
$125 million.
AYES: Beamish, Benavides, Carchio, Choi, Diep, Edgar, Ferryman,
Kim, Narain, Reese, and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Hernandez, Nguyen, Smith
07/09/2014 Administration Committee Minutes Page 4 of 5
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
Committee Chair Reese declared the meeting adjourned at 6:15 p.m., to the next
regularly scheduled meeting of September 10, 2014.
Submitted by:
Kelly A. Lore
Acting Clerk of the Board
07/09/2014 Administration Committee Minutes Page 5 of 5
ADMINISTRATION COMMITTEE Meeting Date TOBA.of Dlr.
07/09/14 07/23/14
Item AGENDA REPORT Number Item Number
2
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: INVEST AND/OR REINVEST DISTRICT'S FUNDS
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 14-10, entitled "A Resolution of the Board of Directors of
the Orange County Sanitation District, Authorizing the Orange County Sanitation
District's Treasurer to Invest and/or Reinvest District's Funds; Adopting District's
Investment Policy Statement and Performance Benchmarks for FY 2014-15; and
Repealing Resolution No. OCSD 13-13."
SUMMARY
This agenda item presents the annual review of the Orange County Sanitation District's
Investment Policy Statement to the Administration Committee for consideration in the
Committee's capacity as the oversight committee for the Investment Policy (Section
16.2). With adoption of the Resolution, the Board of Directors would readopt the
Sanitation District's current Investment Policy Statement, portfolio performance
benchmarks, and monitoring and reporting requirements for FY 2014-15.
The Sanitation District's Investment Policy Statement is recommended for adoption for
FY 2014-15 with no changes made to the State Government Code relevant to the
District's investment program since the adoption of the FY 2013-14 Investment Policy.
Staff will continue to monitor pending legislative and regulatory proposals in the public
finance area for their potential impact on the Sanitation District's existing financial
programs. Also, the District has engaged its investment advisor to conduct an investment
management search for the day-to-day management of the investments included in its
investment portfolios. Based on the ultimate selection, the future investment
management firm may have recommendations on changes to the investment policy for
Board consideration prior to the next investment policy update a year from now.
The Sanitation District's Investment Policy Statement has received the Investment Policy
Certification of Excellence Award from the Califomia Municipal Treasurer's Association.
Page 1 of 3
PRIOR COMMITTEE/BOARD ACTIONS
July 2013 — Board adopted Resolution No. OCSD 13-13, Authorizing the Orange
County Sanitation District's Treasurer to Invest and/or Reinvest District's Funds;
Adopting District's Investment Policy Statement and Performance Benchmarks for FY
2013-14; and, Repealing Resolution No. OCSD 12-11.
ADDITIONAL INFORMATION
Background
The Investment Policy governs the investment activities of Pacific Investment
Management Company (PIMCO), the Sanitation District's external money manager, on
behalf of the District. On December 11, 2012, the Sanitation District's Investment Policy
Statement received the Investment Policy Certification of Excellence Award from the
California Municipal Treasurer's Association. A copy of the letter of certification is
included each year in the annual Investment Policy document. The Sanitation District
received its first Award of Excellence for the Investment Policy Statement in December
1996.
The Investment Policy document itself consists of the Investment Policy Statement and
the following eight appendices:
A. Summary of Investment Authorization
B. Treasury Management Procedures
C. Investment Manager Certification
D. Investment Pool Questionnaire (IAIF)
E. Board Resolution No. OCSD-13-13
F. Sample Monthly & Quarterly Investment Program Monitoring Reports
G. Sections of the California Government Code Pertinent to Investing Public
Funds
H. Glossary of Investment Terms
This document will be updated and delivered to Administration Committee members
following the adoption of the Sanitation District's investment policy statement.
Annual Review of Investment Pollcv
The Investment Policy includes the requirement that the Sanitation District shall review
its Investment Policy annually (Sections 1.2 and 16.1).
Annual Delegation of Investment Authority
Effective January 1, 1997, Section 53607 of the Code states that governing boards of
local agencies may only delegate authority to invest and/or reinvest agency funds to the
agency's Treasurer for a one-year period.
With adoption of the Resolution, the Board of Directors would renew its delegation of
investment authority to the Director of Finance/Treasurer for a one-year period in
Page 2 of 3
compliance with the requirements of Section 53607. Each year, the Board of Directors
will consider similar actions along with the annual reconsideration of the Sanitation
District's Investment Policy.
CEQA
N/A
BUDGET/ PURCHASING ORDINANCE COMPLIANCE
N/A
ATTACHMENTS
• Exhibit A - OCSD FY 2014-15 Investment Policy Statement
• Exhibit B - Performance Monitoring & Reporting Summary
• Proposed Resolution No. OCSD 14-10
Page 3 of 3
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ORANGE COUNTY SANITATION
DISTRICT
INVESTMENT
POLICY
STATEMENT
Proposed for
Review and Approval
By
Administration Committee
On
July 9, 2014
And for Adoption
By
Board of Directors
On
July 23, 2014
Return to Mende Report
TABLE OF CONTENTS
Section TfpplC Pan
1.0 Policy ......................................................................................1
2.0 Scope......................................................................................1
3.0 Standard of Prudence .............................................................1
4.0 Investment Objectives.............................................................2
5.0 Delegation of Authority............................................................2
6.0 Ethics and Conflicts of Interest................................................3
7.0 Authorized Financial Dealers and Institutions .........................4
8.0 Authorized and Suitable Investments......................................5
9.0 Collateralization.......................................................................9
10.0 Safekeeping and Custody.......................................................9
11.0 Diversification..........................................................................9
12.0 Maximum Maturities.............................................................. 11
13.0 Internal Control...................................................................... 12
14.0 Performance Objectives and Benchmarks............................ 12
15.0 Reporting .............................................................................. 12
16.0 Investment Policy Adoption and Revision ............................. 13
Appendix
A. Summary of Investment Authorization
B. Treasury Management Procedures
C. Investment Manager Certification
D. Investment Pool Questionnaire (LAIF)
E. Board Resolution No. OCSD-I4-XX, Authorizing the District's Treasurer to Invest
and/or Reinvest District Funds, and Adopting Investment Policy and Performance
Benchmarks
F. Quarterly Investment Program Monitoring Reports
G. Sections of the California Government Code Pertinent to Investing Public Funds
H. Glossary of Investment Terms
Return to Mende Report
ORANGE COUNTY SANITATION DISTRICT
INVESTMENT POLICY STATEMENT
1.0 Policy:
It is the policy of the Orange County Sanitation District (OCSD) to invest public funds in
a manner which ensures the safety and preservation of capital while meeting
reasonably anticipated operating expenditure needs, achieving a reasonable rate of
return and conforming to all state and local statutes governing the investment of public
funds.
1.1. This Investment Policy is set forth by OCSD for the following purposes:
1.1.1. To establish a clear understanding for the Board of Directors,
OCSD management, responsible employees and third parties of the
objectives, policies and guidelines for the investment of the OCSD's idle
and surplus funds.
1.1.2. To offer guidance to investment staff and any external
investment advisors on the investment of OCSD funds (see Appendix "A").
1.1.3. To establish a basis for evaluating investment results.
1.2. OCSD establishes investment policies which meet its current investment
goals. OCSD shall review this policy annually, and may change its
policies as its investment objectives change.
2.0 Scope:
This Investment Policy applies to all financial assets of OCSD; except for the proceeds
of OCSD's capital projects financing program, which are invested in accordance with
provisions of their specific bond indentures; and such other funds excluded by law or
other Board-approved covenant or agreement.
These funds are accounted for by OCSD as Enterprise Funds as represented in
OCSD's Comprehensive Annual Financial Report.
3.0 Standard of Prudence:
The standard of prudence to be used by OCSD internal staff, and any authorized
investment advisor(s), shall be as described in Section 53600.3 of the California
Government Code as follows: Except as provided in subdivision (a) of Section
27000.3, all governing bodies of local agencies or persons authorized to make
investment decisions on behalf of those local agencies investing public funds
Page 1 of 13
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pursuant to this chapter are trustees and therefore fiduciaries subject to
the prudent investor standard. When investing, reinvesting, purchasing,
acquiring, exchanging, selling, or managing public funds, a trustee shall act with
care, skill, prudence, and diligence under the circumstances then prevailing,
including, but not limited to, the general economic conditions and the anticipated
needs of the agency, that a prudent person acting in a like capacity and
familiarity with those matters would use in the conduct of funds of a like character
and with like aims, to safeguard the principal and maintain the liquidity needs of
the agency. Within the limitations of this section and considering individual
investments as part of an overall strategy, investments may be acquired as
authorized by law.
4.0 Investment Objectives:
The primary objectives of OCSDs investment activities, in priority order, and as
described in Section 53600.5 of the California Government Code, shall be:
4.1 Safety: The safety and preservation of principal is the foremost objective
of the investment program of OCSD. Investments shall be selected in a
manner that seeks to ensure the preservation of capital in OCSD's overall
portfolio. This will be accomplished through a program of diversification,
more fully described in Section 11.0, and maturity limitations, more fully
described in Section 12.0, in order that potential losses on individual
securities do not exceed the income generated from the remainder of the
portfolio.
4.2 Liquidity: The investment program will be administered in a manner that
will ensure that sufficient funds are available for OCSD to meet its
reasonably anticipated operating expenditure needs.
4.3 Return on Investments: The OCSD investment portfolio will be
structured and managed with the objective of achieving a rate of return
throughout budgetary and economic cycles, commensurate with legal,
safety, and liquidity considerations.
5.0 Delegation of Authority:
5.1 Authority to manage OCSD's investment program is derived from the
California Government Code Sections 53600 et seq, and Sections 53635
et seq. The Board of Directors hereby delegates management
responsibility for the OCSD investment program to its Director of Finance
and Administrative Services/Treasurer, who shall establish written
procedures for the operation of the investment program, consistent with
this Policy. The Controller/Assistant Treasurer shall be responsible for
day-to-day administration, monitoring, and the development of written
administrative procedures for the operation of the investment program,
consistent with this Policy. The current treasury management procedures
Page 2 of 13
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are presented in Appendix "B." No person may engage in an investment
transaction except as provided under the terms of this Policy and the
procedures established by the Treasurer. The Treasurer shall be
responsible for all transactions undertaken by OCSD internal staff, and
shall establish a system of controls to regulate the activities of internal
staff and external investment advisors engaged in accordance with
Section 5.3.
5.2 The administrative procedures for the operation of OCSD's investment
program will provide for, but not be limited to, the following:
5.2.1 Formats for monthly and quarterly reports to the Administration
Committee, and the Board of Directors.
5.2.2 Compliance with generally accepted accounting principles of
the Government Accounting Standards Board.
5.2.3 Establishment of benchmarks for performance measurement.
5.2.4 Establishment of a system of written internal controls.
5.2.5 Establishment of written procedures for competitive bids and
offerings of securities that may be purchased or sold by internal OCSD
staff.
5.2.6 Establishment of a Desk Procedures Manual for treasury
operations and management.
5.3 The Board of Directors of OCSD may, in its discretion, engage the
services of one or more registered investment advisors to assist in the
management of OCSD's investment portfolio in a manner consistent with
OCSD's objectives. Such external investment advisors, which shall be
selected through a competitive process, shall be granted discretion to
purchase and sell investment securities in accordance with this
Investment Policy. Such advisors must be registered under the
Investment Advisers Act of 1940, or be exempt from such registration.
6.0 Ethics and Conflicts of Interest:
6.1 Officers and employees of OCSD involved in the investment process shall
refrain from personal business activities that could conflict with proper
execution of OCSD's investment program, or which could impair their
ability to make impartial investment decisions. Employees and investment
officials shall disclose to the General Manager any material financial
interests in financial institutions that conduct business within OCSD's
boundaries, and they shall further disclose any large personal
financial/investment positions, the performance of which could be related
to the performance of positions in OCSD's portfolio.
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7.0 Authorized Financial Dealers and Institutions:
7.1 For investment transactions conducted by OCSD internal staff, the
Treasurer will maintain a list of financial institutions authorized to provide
investment services to OCSD, including "primary" or regional dealers that
qualify under Securities and Exchange Commission Rule 15C3-1 (Uniform
Net Capital rule), and Federal or State of California chartered banks. No
public deposit shall be made except in a qualified public depository as
established by State law.
All financial institutions which desire to become qualified bidders for
investment transactions with OCSD must supply the following for
evaluation by the Treasurer:
7.1.1. Audited financial statements for the institution's three (3) most
recent fiscal years.
7.1.2. A statement, in the format prescribed by the Government
Finance Officers Association (GFOA), certifying that the institution has
reviewed OCSD's Investment Policy and that all securities offered to the
Districts shall comply fully and in every instance with all provisions of the
California Government Code and with this Investment Policy. The current
statement is presented in Appendix "C."
7.1.3. A statement describing the regulatory status of the dealer, and
the background and expertise of the dealer's representatives.
Selection of financial institutions, broker/dealers, and banks authorized to
engage in transactions with OCSD shall be made through a competitive
process. An annual review of the financial condition of qualified
institutions will be conducted by the Treasurer.
7.2 Selection of broker/dealers used by external investment advisors retained
by OCSD, shall be in compliance with contract provisions between OCSD
and any external investment advisors, and shall be in substantially the
following form:
Use of Securities Brokers: Neither the Investment Advisor nor any parent,
subsidiary or related firm shall act as a securities broker with respect to
any purchases or sales of securities which may be made on behalf of
OCSD, provided that this limitation shall not prevent the Investment
Advisor from utilizing the services of a securities broker which is a parent,
subsidiary or related firm, provided such broker effects transactions on a
"cost only" or"nonprofit" basis to itself and provides competitive execution.
The Investment Advisor shall provide the Districts with a list of suitable
independent brokerage firms (including names and addresses) meeting
the requirements of Government Code Section 53601.5, and, unless
otherwise directed by OCSD, the Investment Advisor may utilize the
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service of any of such independent securities brokerage firms it deems
appropriate to the extent that such fines are competitive with respect to
price of services and execution.
8.0 Authorized and Suitable Investments:
All investments shall be made in accordance with the California Government Code
including Sections 16429.1 at seq., 53600 at seq., and 53684, and as described within
this Investment Policy. Permitted investments under this Policy shall include:
8.1 Securities, obligations, participations, or other instruments of, or
issued by, or fully guaranteed as to principal and interest by the US
Government, a federal agency, or a US Government-sponsored
enterprise pursuant to Section 53601 (a) of the California Government
Code. Investment in mortgage-backed bonds and CMOs is not governed
by this Section 8.1, even if such bonds are issued by agencies of the US
Government. See Section 8.2 for conditions of purchase of mortgage-
backed securities. See Section 8.12 for conditions of purchase of CMOs.
8.2 Mortgage-backed securities issued by an agency of the US
Government, which are backed by pools of mortgages guaranteed by the
full faith and credit of the U.S. Government, or an agency thereof.
Purchase of mortgage derivatives, which include interest-only payments
(IOs) and principal-only payments (POs); inverse floaters, and RE-
REMICs (Real Estate Mortgage Investment Conduits), is hereby
prohibited.
8.3 Commercial paper of"prime" quality and rated TV by Moody's Investor
Services (Moody's), and rated "At" by Standard & Poor's Corporation
(S&P), and issued by a domestic corporation organized and operating in
the United States with assets in excess of$500 million and having a rating
of"A" or better on its long-term debt as provided by Moody's or S&P.
Purchases of eligible commercial paper may not exceed 270 days to
maturity from the date of purchase. Purchases of commercial paper shall
not exceed 15% of the market value of the portfolio, except that a
maximum of 25% of the market value of the portfolio may be invested in
commercial paper, so long as the average maturity of all commercial
paper in the portfolio does not exceed 31 days. No more than 5% of the
market value of the portfolio, or 10% of the issuer's outstanding paper,
may be invested in commercial paper issued by any one (1) eligible
corporation.
8.4 Banker's acceptances issued by institutions, the short-term obligations of
which are rated a minimum of"P1" by Moody's, or"A1" by S&P provided
that: (a) the acceptance is eligible for purchase by the Federal Reserve
System; (b) the maturity does not exceed 180 days; (c) no more than 40%
of the total portfolio may be invested in banker's acceptances; and (d) no
more than 30% of the total portfolio may be invested in the banker's
acceptances of any one (1) commercial bank.
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8.5 Medium term (or corporate) notes of a maximum of five (5) years
maturity issued by corporations organized and operating within the United
States, or issued by depository institutions licensed by the United States,
or any state, and operating within the United States with assets in excess
of$500 million, and which is rated in a rating category of`A" or better on
its long-term debt as provided by Moody's or S&P. Notes eligible for
investment under this section shall be rated at least "A3" or better by
Moody's, or"A-"or better by S&P. If, at the time of purchase, an eligible
note is rated in a rating category of"A" or better by only one rating agency,
the note shall also be rated at least"BBB" by the other rating agency. If,
after purchase, the rating of an eligible note in a rating category of"A" or
better, is downgraded to "BBB," the external investment advisor shall
notify the District of the downgrade, and shall present an analysis and
recommendations as to the disposition of the note consistent with the
investment objectives of this Investment Policy. The above restrictions
pertain to the "direct issuer' and do not extend to the parent corporation of
the direct issuer. No more than 35% of the portfolio may be invested in
both medium term notes, as described here in 8.5, and notes, bonds, or
other obligations, as described in 8.6.
8.6 Notes, bonds, or other obligations that are at all times secured by a
valid first priority security interest in securities of the types listed by
Californiaf Government Code Section 53651 as eligible securities for the
purpose of securing local agency deposits having a market value at least
equal to that required by California Government Code Section 53652 for
the purpose of securing local agency deposits. The securities serving as
collateral shall be placed by delivery or book entry into the custody of a
trust company or the trust department of a bank that is not affiliated with
the issuer of the secured obligation, and the security interest shall be
perfected in accordance with the requirements of the Uniform Commercial
Code or federal regulations applicable to the types of securities in which
the security interest is granted. No more than 35% of the portfolio may be
invested in securities described in 8.5 and 8.6.
8.7 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (k) of the California Government Code. Such
funds must either: (1) attain the highest ranking, or the highest letter and
numerical rating, provided by not less than two of the three largest
nationally recognized rating services; or (2) have an Investment Advisor
registered with the Securities and Exchange Commission with not less
than five (5) years of experience investing in the securities and obligations
authorized under this Policy and under California Government Code
Section 53601, and with assets under management in excess of$500
million. The purchase price of shares of beneficial interest purchased
pursuant to this policy, and the California Government Code may not
include any commission that the companies may charge, and shall not
exceed 15% of the District's surplus money that may be invested pursuant
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to this section. However, no more than 10% of the District's surplus funds
may be invested in shares of beneficial interest of any one (1) mutual fund
pursuant to this section.
8.8 Certificates of deposit:
8.8.1 Secured (collateralized) time deposits issued by a nationally or
state-chartered bank or state or federal savings and loan association, as
defined by Section 5102 of the California Financial Code, and having a net
operating profit in the two (2) most recently completed fiscal years.
Collateral must comply with Chapter 4, Bank Deposit Law, Section 16500
at seq., and Chapter 4.5, Savings and Loan Association and Credit Union
Deposit Law, Section 16600 at seq., of the California Government Code.
8.8.2 Negotiable certificates of deposit (NCDs) issued by a nationally
or state-chartered bank or state of federal savings and loan association,
as defined by Section 5102 of the California Financial Code; and which
shall have a rating of"A" or better on its long-term debt as provided by
Moody's or S&P; or which shall have the following minimum short-term
ratings by at least two (2) rating services: "P1" for deposits by Moody's,
"At" for deposits by S&P, or comparably rated by a nationally recognized
rating agency which rates such securities; or as otherwise approved by
the District's Board of Directors.
8.8.3 To be eligible to receive local agency money, a bank, savings
association, federal association, or federally insured individual loan
company shall have received an overall rating of not less than
"satisfactory" in its most recent evaluation by the appropriate federal
financial supervisorial agency of its record of meeting the credit needs of
California's communities, including low and moderate income
neighborhoods, pursuant to Section 2906 of Title 12 of the United States
Code.
8.9 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated "AY or higher by Moody's, or"A-"
or higher by S&P; or as otherwise approved by the Districts' Board of
Directors.
8.10 The State of California Local Agency Investment Fund (LAIF). The
LAW is an investment alternative for California's local governments and
special districts managed by the State Treasurer's Office. LAW is more
fully described in the Glossary (See Appendix "H.") The District shall use
LAW as a short-term cash management facility. Investment of District
funds in LAW shall be subject to investigation and due diligence prior to
investing, and on a continual basis to a level of review pursuant to Section
3.0, Standard of Prudence, of this Policy. See Appendix "D" for
investment pool questionnaire.
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8.11 The Orange County Treasurer's Money Market Commingled
Investment Pool (OCCIP). The OCCIP is a money market investment
pool managed by the Orange County Treasurer's Office. OCCIP is more
fully described in the Glossary. (See Appendix "H.") The District has no
funds invested in OCCIP at this time. Investment of District funds in
OCCIP would be subject to investigation and due diligence prior to
investing, and on a continual basis to a level of review pursuant to Section
3.0, Standard of Prudence, of this Policy.
8.12 Collateralized mortgage obligations (CMOs) issued by agencies of the
US Government which are backed by pools of mortgages guaranteed by
the full faith and credit of the U.S. Government, or an agency thereof, and
asset-backed securities rated "Aaa" by Moody's and "AAA" by S&P.
Selection of mortgage derivatives, which include interest-only payments
(1Os) and principal-only payments (POs); inverse floaters, and RE-
REMICS (Real Estate Mortgage Investment Conduits), is hereby
prohibited. Securities eligible for purchase under this Section 8.11 shall
be issued by an issuer having a rating on its unsecured long-term debt of
"A" or higher. Combined purchases of mortgage-backed securities, CMOs
and asset-backed securities as authorized under within Section 8.0, may
not exceed 20% of the total Long-Term Operating Monies portfolio.
8.13 Repurchase agreements provided that:
8.13.1 All repurchase agreements shall be collateralized with
securities eligible for purchase under this Policy. In order to anticipate
market changes and to provide a level of security for all repurchase
agreement transactions, collateralization shall be maintained at a level of
at least 102% of the market value of the repurchase agreements, and
shall be adjusted no less than weekly.
8.13.2 All repurchase agreements must be the subject of a Master
Repurchase Agreement between OCSD and the provider of the
repurchase agreement. The Master Repurchase Agreement shall be
substantially in the form developed by The Bond Market Association.
8.14 Reverse repurchase agreements provided that:
8.14.1 No more than five percent (5%)of OCSD's portfolio shall be
invested in reverse repurchase agreements, and there shall be no long-
term reverse repurchase agreements unless otherwise authorized by the
Districts' Board of Directors.
8.14.2 The maximum maturity of reverse repurchase agreements shall
be ninety (90) days.
8.14.3 Reverse repurchase agreements shall mature on the exact
date of a known cash flow which will be unconditionally available to repay
the maturing reverse repurchase agreement.
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8.14.4 Proceeds of reverse repurchase agreements shall be used
solely to supplement portfolio income or to provide portfolio liquidity, and
shall not be used to speculate on market movements.
8.14.5 All reverse repurchase agreements must be the subject of a
Master Repurchase Agreement between OCSD and the provider of the
reverse repurchase agreement. The Master Repurchase Agreement shall
be substantially in the form developed by The Bond Market Association.
8.15 Sales of OCSD-owned securities in the secondary market may incur
losses in order to improve the risk or return characteristics of the portfolio,
to prevent anticipated further erosion of principal, or when trading for
securities that result in an expected net economic gain to OCSD.
8.16 If securities owned by the OCSD are downgraded by either Moody's or
S&P to a level below the quality required by this Investment Policy, it shall
be OCSD's policy to review the credit situation and make a determination
as to whether to sell or retain such securities in the portfolio. If a decision
is made to retain the downgraded securities in the portfolio, their presence
in the portfolio will be monitored and reported monthly to the OCSD
General Manager, the Administration Committee and Board of Directors.
9.0 Collateralization:
Generally, the value to secure deposits under this Policy shall comply with Section
53652 of the California Government Code. Collateralization will be required for secured
time deposits, as more fully described in Section 8.8.1; and repurchase agreements, as
more fully described in Section 8.13.1. Collateral will always be held by an independent
third-party, as more fully described in Section 10.1. The right of collateral substitution is
granted.
10.0 Safekeeping and Custody:
10.1 All securities transactions, including collateral for repurchase agreements,
entered into by, or on behalf of OCSD, shall be conducted on a
delivery-versus-payment (DVP) basis. Securities will be held by
OCSD's third-party custodian bank, which shall be selected through a
competitive process, or that agent's representative, or in the agent's
account at the Federal Reserve Bank, or within clearing corporations in
the U.S., and evidenced by book entry statements.
11.0 Diversification:
OCSD will diversify its investments by security type, issuer, and financial institution in
accordance with the following:
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11.1 There is no limit on investment in securities issued by or guaranteed by
the full faith and credit of the U.S. government.
11.2 No more than 20% of the portfolio may be invested in securities of a single
agency of the U.S. government, which does not provide the full faith and
credit of the U.S. government.
11.3 No more than 5% of the portfolio may be invested in securities of any one
issuer, other than the U.S. government or its agencies. Investment in
mutual funds is not governed by this Section 11.3. See Section 11.8 for
conditions of purchase of mutual funds.
11.4 No individual holding shall constitute more than 5% of the total debt
outstanding of any issuer.
11.5 No more than 40% of the portfolio may be invested in banker's
acceptances.
11.6 No more than 15% of the portfolio may be invested in commercial paper,
except that 25% of the portfolio may be so invested so long as the
average maturity of all commercial paper in the portfolio does not exceed
31 days.
11.7 No more than 30% of the portfolio may be invested in medium-term
(corporate) notes.
11.8 No more than 15% of the portfolio may be invested in mutual funds.
However, no more than 10% of the District's portfolio may be invested in
shares of beneficial interest of any one (1) mutual fund.
11.9 No more than 30% of the portfolio may be invested in negotiable
certificates of deposit.
11.10 No more than 10% of the portfolio may be invested in eligible municipal
bonds.
11.11 No more than 20% of the Long Term Operating Monies portfolio may be
invested in a combination of mortgage-backed securities, CMOs and
asset-backed securities. Mortgage-backed securities, CMOs and asset-
backed securities may only be purchased by the Districts' external money
managers, Pacific Investment Management Company (PIMCO), with prior
Board approval (authorized by Board Minute Order, January 22, 1997),
and may not be purchased by the District's staff.
11.12 No more than the lesser of 15% of the portfolio or the statutory maximum
may be invested in LAIF.
11.13 No more than 15% of the portfolio may be invested in the Orange County
Investment Pool.
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11.14 No more than 20% of the portfolio may be invested in repurchase
agreements.
11.15 No more than 5% of the portfolio may be invested in reverse repurchase
agreements.
12.0 Maximum Maturities:
To the extent possible, OCSD will attempt to match its investments with reasonably
anticipated cash flow requirements. The Treasurer shall develop a five-year cash flow
forecast, which shall be updated quarterly. Based on this forecast, the Treasurer shall
designate, from time-to-time, the amounts to be allocated to the investment portfolio.
OCSD monies invested in accordance with this Policy are divided into two (2)
categories:
12.1 Liquid Operating Monies. Funds needed for current operating and
capital expenditures are known as Liquid Operating Monies.
12.1.1 The maximum final stated maturity of individual securities in the
Liquid Operating Monies account portfolio shall be one (1) year from the
date of purchase.
12.1.2 The average duration of the Liquid Operating Monies account
portfolio shall be recommended by the Treasurer based on the Districts'
cash flow requirements, but may never exceed 180 days.
12.2 Long Term Operating Monies. Funds needed for longer term purposes
are known as the Long Term Operating Monies.
12.2.1 Except for the purchase of securities by the District's external
money manager, PIMCO, the maximum final stated maturity of individual
securities in the Long Term Operating Monies account portfolio shall be
five (5)years from the date of purchase. PIMCO may purchase any
security that is permitted under Section 8.0 of this policy, including those
which may have a stated maturity of more than five (5) years from the date
of purchase when, in the opinion of PIMCO, such an investment meets the
investment objectives of this portfolio and the duration requirements are
met below.
12.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on the Districts'
five-year rash flow forecast, but may never exceed 60 months.
12.2.3 The duration of the Long Term Operating Monies account
portfolio shall never exceed 120% of the duration as established in
accordance with Section 12.2.2.
12.2.4 The duration of the Long Term Operating Monies account
portfolio shall never be less than 80% of the duration as established in
accordance with Section 12.2.2
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13.0 Internal Control:
13.1 The Treasurer shall establish an annual process of independent review by
an external auditor. This review will provide internal control by assuring
compliance with policies and procedures. The current treasury
management procedures are presented in Appendix "B."
14.0 Performance Objectives and Benchmarks:
14.1 Overall objective. The investment portfolio of OCSD shall be designed
with the overall objective of obtaining a rate of return throughout budgetary
and economic cycles, commensurate with investment risk constraints and
reasonably anticipated cash Flow needs.
14.2 The Liquid Operating Monies. The investment performance objective
for the Liquid Operating Monies shall be to earn a total rate of return over
a market cycle which exceeds the return on a market index approved by
the Administration Committee, and by the District's Board of Directors,
when the duration of the portfolio is established. This market index is more
fully described in Board Resolution No. OCSD-00-16 (see Appendix "E").
14.3 The Long Term Operating Monies. The investment performance
objective for the Long Term Operating Monies shall be to earn a total rate
of return over a market cycle which exceeds the return on a market index
selected by the Administration Committee and approved by the Districts'
Board of Directors, when the duration of the portfolio is established. This
market index is more fully described in Board Resolution No. OCSD-00-16
(See Appendix"E").
15.0 Reporting:
15.1 Quarterly investment reports shall be submitted by the Treasurer to the
Administration Committee which shall forward the reports to the District's
Board of Directors. The quarterly reports shall be submitted to the
Administration Committee within 30 days of the end of the month in
accordance with California Government Code Sections 53607, 53646, and
this Investment Policy. The quarterly reports shall provide clear and
concise status information on the District's portfolios at the end of each
reporting period, including performance measures using the benchmarks
described in Section 14.0 of this Investment Policy. Sample quarterly
reports are presented in Appendix "F." These reports shall contain listings
of individual securities held at the end of each reporting period, and shall
disclose, at a minimum, the following information about the risk
characteristics of OCSD's portfolio:
15.1.1 Cost and accurate and complete market value of the portfolio.
15.1.2 Modified duration of the portfolio compared to Benchmark.
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15.1.3 Dollar change in value of the portfolio for a one-percent (1%)
change in interest rates.
15.1.4 Percent of portfolio invested in reverse repurchase
agreements, and a schedule which matches the maturity of such reverse
repurchase agreements with the cash flows which are available to repay
them at maturity.
15.1.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days.
15.1.6 Average portfolio credit quality.
15.1.7 Percent of portfolio with credit ratings below "A" by any rating
agency, and a description of such securities.
15.1.8 State that all investments are in compliance with this policy and
the California Government Code, or provide a listing of any transactions or
holdings which do not comply with this policy or with the California
Government Code.
15.1.9 Time-weighted total rate of return for the portfolio for the prior
three months, twelve months, year to date, and since inception compared
to the Benchmark returns for the same periods.
15.1.10 State that sufficient funds are available for OCSD to meet its
operating expenditure requirements for the next six months, or if not, state
the reasons for the shortfall.
15.2 OCSD's Treasurer shall meet quarterly with the Administration Committee
to review investment performance, proposed strategies and compliance
with this Investment Policy. External investment advisors may be required
to attend said meetings at the discretion of the Chairman of the
Administration Committee.
16.0 Investment Policy Adoption and Revision:
16.1 The Investment Policy of OCSD shall be reviewed by the Administration
Committee and shall be adopted by resolution of the Board of Directors of
OCSD. The Policy shall be reviewed on an annual basis in accordance
with California Government Code Section 53646, and this Investment
Policy, by the Administration Committee, which shall recommend
revisions, as appropriate, to the Board of Directors. Any modifications
made thereto shall be approved by the Board of Directors.
16.2 The Administration Committee shall serve as the oversight committee for
the District's Investment program and shall adopt guidelines for the
ongoing review of duration, quality and liquidity of the District's portfolio.
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APPENDIX "A"
SUMMARY OF INVESTMENT AUTHORIZATION
INTERNAL AND EXTERNAL MANAGERS
SHORT TERM OPERATING FUND
INVESTMENT INTERNAL EXTERNAL
U.S. Treasuries OK OK
Federal Agencies Fixed coupon, fixed mat. OK
Mortgage-backed NO NO
Commercial paper OK OK
Banker's Accept. OK OK
Medium Term Notes Fixed coupon, fixed mat.* OK
Mutual Funds Money Market Only** Money Market Only
Negotiable CDs Fixed coupon, fixed mat.* OK
Municipal Bonds OK* NO
LAIF OK NO
OCIP OK NO
CMOs NO NO
Asset-backed NO NO
Repurchase Agree. OK OK
Reverse Repos OK* OK
LONG TERM OPERATING PORTFOLIO
INVESTMENT INTERNAL EXTERNAL
U.S. Treasuries OK OK
Federal Agencies Fixed coupon, fixed mat. OK
Mortgage-backed NO OK
Mutual Funds Money Market Only** OK
Negotiable CDs Fixed coupon, fixed mat.* OK
Municipal Bonds OK* OK
LAIF OK NO
OCIP OK NO
CMOs NO With Board Approval
Asset-backed NO With Board Approval
Repurchase Agree. OK OK
Reverse Repos OK* OK
*With prior approval of the Administration Committee.
**Using financial institutions approved by the Administration Committee.
NWepOaeC� lf neWminCommUMIN1014WULWnv.et.n Pdiry_BOD7MI4. ou
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EXHIBIT "B"
FY 2014-15 Performance Monitoring & Reporting Schedule
For the Administration Committee The Quarterly Investment
and Board of Directors meetings of: Management Program Report to be
resented for the period of:
July 2014
August Board only)
September Aril —June 2014
October
November Jul — Sept 2014
December
January '15 Board only)
February Oct— Dec 2014
March
April
May Jan — March 2015
June
EXHIBIT "B" Return to Aaenda Reoori
ORANGE COUNTY SANTIATION DISTRICT
PERFORMANCE MONITORING & REPORTING SUMMARY
FOR THE
DISTRICT'S INVESTMENT PROGRAM
POLICY
REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY*
PIMCO MELLON CALLAN
15.1.1 Cost and market value of the portfolio(monthly mark-to-market). M, Q M, Q Q
15.1.2 Modified duration of the portfolio compared to benchmark. M, Q Q
15.1.3 Dollar change in value of the portfolio for a 1%change in interest rate. M, Q Q
15.1.4 Percent of portfolio invested in reverse repurchase agreements, and a schedule which M, Q
matches the maturity of such reverse repurchase agreements with the cash flows which
are available to repay them at maturity.
15.1.5 For the Liquid Operating Monies account only,the percent of portfolio maturing within 90 M, Q Q
days.
15.1.6 Average portfolio credit quality. M, Q Q
15.1.7 Percent of portfolio with credit ratings below"A" by any rating agency, and a description M, Q Q
of such securities.
15.1.8 Listing of any transaction or holdings which do not comply with this policy or with the M, Q
California Government Code.
15.1.9 Time-weighted total rate of return for the portfolio forthe priorthree months,twelve M, Q Q
months, year-to-date, and since inception compared to the benchmark returns for the
same periods.
ADDL** Comparison of portfolio performance to market index benchmark. M, Q Q
ADDL** Comparison of Manager's performance to peer group benchmark. Q
ADDL** Monitoring of organizational and structural changes of investment management firm. Q
ADDL** Audit portfolios for compliance with investment policy guidelines. Q
15.1.10 OCSD will report if sufficient funds are available for it to meet operating expenditure requirements for the next six months, or if
not, state the reason for the shortfall.
Notes
*M = Monthly
*Q =Quarterly
**ADDL= Monitoring of Additional Performance Characteristics
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RESOLUTION NO. OCSD 14-10
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT, AUTHORIZING THE DISTRICT'S
TREASURER TO INVEST AND/OR REINVEST DISTRICT'S FUNDS,
AND ADOPTING DISTRICT'S INVESTMENT POLICY STATEMENT
AND PERFORMANCE BENCHMARKS; AND REPEALING
RESOLUTION NO. OCSD 13-13
WHEREAS, on July 24, 2013, the Board of Directors adopted Resolution
No. 13-13, readopting the District's Investment Policy Statement, and establishing
specific performance benchmarks and objectives, together with a schedule of frequency
of investment performance reports; and
WHEREAS, pursuant to California Government Code Section 53607, the Board
of Directors may delegate authority to invest and/or reinvest District's funds to the
Treasurer for a one-year period; and
WHEREAS, pursuant to California Government Code Section 53646, the District
is required to review its Investment Policy annually and readopt its Policy at a public
meeting, which Policy will establish specific performance benchmarks and objectives,
and specific monitoring and reports.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That the authority of the Board of Directors to invest or reinvest
District's surplus funds, or to sell or exchange securities so purchased, or to deposit for
safekeeping the funds and investments of the Districts with depositories, as provided for
in California Government Code Sections 53608 and 53630, is hereby delegated to the
District's Treasurer for a one-year period commencing on the date this Resolution is
adopted, as authorized by California Government Code Section 53607.
OCSD 14-10-1
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Section 2: That the Board of Directors hereby adopts the Investment Policy
Statement of the Orange County Sanitation District, as set forth in Exhibit "A", attached
hereto and incorporated herein by reference.
Section 3: That the Board of Directors hereby adopts the following specific
performance benchmarks for their two investment funds in accordance with Section
14.0 of the District's Investment Policy:
LIQUID OPERATING MONIES: The Short-Terre Operating Fund will be
compared to the three-month T-Bill rate, and the Callan Active Cash Flow
Income Style Group. The Callan Active Cash Flow Income Style Group
represents a peer group of managers who operate with a maximum maturity of
one year.
LONG-TERM OPERATING MONIES: The Long-Term Operating Fund will be
compared to the Merrill Lynch Government and Corporate One-to-Five Year
Maturity Index and to the Callan Defensive Fixed Income Style Group.
Section 4: That the Board of Directors hereby adopts a performance
monitoring and reporting schedule, as required by Section 15.0 of the District's
Investment Policy, which schedule is attached hereto as Exhibit "B", and incorporated
herein by reference.
OCSD 14-10-2
Return to Mende Report
Section 5: That Resolution No. OCSD 13-13 is hereby repealed.
PASSED AND ADOPTED at regular meeting of the Board of Directors, Orange
County Sanitation District held July 23, 2014.
Tom Beamish
Board Chair
ATTEST:
Kelly A. Lore
Acting Clerk of the Board
OCSD 14-10-3
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Acting Clerk of the Board of Directors of the Orange County
Sanitation District, do hereby certify that the foregoing Resolution No. OCSD 14-10 was
passed and adopted at a regular meeting of said Board on the 23rd day of July, 2014,
by the following vote, to wit:
AYES:
NOES:
ABSTENTIONS:
ABSENT:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of Orange County Sanitation District this 23rd day of July, 2014.
Kelly A. Lore
Acting Clerk of the Board of Directors
Orange County Sanitation District
OCSD 14-10-4
ADMINISTRATION COMMITTEE Meeting Date TOBA.Of Dir.
07/09/14 07/23/14
AGENDA REPORT Item Number Item Nu bar
3 16
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
2014B
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to issue Revenue Refunding Certificate Anticipation
Notes, Series 2014B, as two-year fixed-rate obligations, subject to market conditions, in
an amount not to exceed $135.0 million to replace the $129.625 million Revenue
Refunding Certificate Anticipation Notes, Series 2013A maturing on October 16, 2014.
SUMMARY
In March 2006, the 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.
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 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.
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 refinancings at yields at progressively lower yields as summarized below:
Principal Amount
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
Page 1 of 6
The interest rate on the currently outstanding Revenue Refunding Certificate
Anticipation Notes Series 2013A (2013A CANs) was fixed for only one year and the
entire $129.625 million plus interest becomes due and payable on October 16, 2014.
The Sanitation District is responsible for the total repayment, including interest, of
$132.218 million or the Sanitation District could choose to refinance the 2013A CANS.
Due to the expected low tax-exempt cost of refinancing CANs and the ability to
generate higher taxable earnings on reserves, staff does not recommend the use of
$130 million of reserves to repay the 2013A CANS; therefore, there are a number of
refinancing options for consideration of the Sanitation District.
PRIOR COMMITTEE/BOARD ACTIONS
June 2014 — The Board adopted Resolution No. OCSD14-xx, 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 2014A, authorizing the execution and delivery of such
Revenue Obligations, evidencing principal in an aggregate amount of not to exceed
$225,000,000, 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 Options Available to the Sanitation District
1. Refund the Maturing 2013A CANS with Fixed Rate Debt
The issuance of long-term fixed rate debt to refund the 2013A 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.
The issuance of long-term fixed rate debt in the current market would result in an
average borrowing yield of approximately 3.70%. 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.
The following is a current market cost summary (subject to changing market
conditions) of Option 1. (Fixed Rate Debt) over the next year.
3.650% Assumed Average Fixed Rate
0.021 Costs of Issuance (amortized over life of COPS)
0.031 Underwriter Costs (amortized over life of COPs)
3.701% Fixed Rate Cost
Page 2 of 6
2. Refund the Maturing 2013A CANs with Variable Rate Debt
Current variable rates for highly-rated California municipal borrowers (such as the
District) are extremely low at approximately 0.05% for traditional variable rate debt
supported by a commercial bank. However, the availability of bank support
continues to be relatively expensive at approximately seven times the cost of 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. Recently,
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 (2013A CANS). In
addition, there are limited investors for these alternative products.
The following is a current market cost comparison (subject to changing market
conditions) of traditional variable rate debt versus Option 1. (Fixed Rate Debt) over
the next year.
Variable% Average Variable Rate
0.354 Bank Liquidity Fee
0.075 Remarketing Fee
0.026 Costs of Issuance (amortized over life of COPS)
0.037 Annual Variable Rate fees (ratings and bank renewal)
0.006 Underwriter Costs (amortized over life of COPs)
0.495% + Variable% (current total of approximately 0.55%) or
If compared to Option 1, average break-even variable rate of 3.15%
3. Refund the Maturing 2013A CANs with a New One-Year CANS issue
Since the issuance of the 2013A CANS, short-term interest rates have continue
to remain low as the current market yield for a one-year CANS is slightly lower
than last year's levels and presently about 0.12%. 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. The CANs structure will avoid the payment
of high fees to liquidity banks and eliminate the risk of interest rates resetting
higher from historic low levels during the course of the next year. Although
current variable rates are low at 0.05% (see Option 2. above), there is almost no
room for rates to go lower.
Page 3 of 6
The following is a current market cost summary (subject to changing market
conditions) of Option 3. (one-year CANS) over the next year.
0.120% Assumed One-Year Rate
0.220 Costs of Issuance (amortized over one year)
0.008 Underwriter Costs (amortized over one year)
0.347% or
3.35% less than Option 1. (equal to $3.1 million of cash flow savings)
A comparison of the one-year CANS refinancing structure to Option 2. above
(Variable Rate Debt) shows that future unknown variable rates must be less than
zero for variable rate debt to generate a better economic result.
4. Refund the Maturing 2013A CANS with a New Two-Year CANS issue
In the current market, the difference between a one-year CAN and a two-year
CAN is smaller than in previous years. Last year, when the Sanitation District
was considering the refinancing options of the then outstanding Series 2012C
CANS, the difference in all-in-costs between one-year CANS and two-year CANS
was approximately 0.33% (33 bps (or basis points)).
The following is a current market cost summary (subject to changing market
conditions) of Option 4. (two-year CANS) over the next year.
0.260% Assumed Two-Year Rate
0.110 Costs of Issuance
0.025 Underwriter Costs
0.395% or
3.31% less than Option 1. (equal to $3.1 million of cash flow savings)
A comparison of a two-year CANS refinancing structure to Option 3. above (one-year
CANS) shows only a five bps difference in the all-in costs which is much lower than
the 33 bps differential last year. A two-year CANS issuance will allow the Sanitation
District to lock-in a two-year fixed rate at a cost that is only slightly greater than a
one-year CAN.
The major risk with any CANS structure occurs if the Sanitation District does not
have market access to remarket the CANS at maturity (in 2016 for two-year CANS).
However, the Sanitation District (1) has successfully issued one-year CANS in each
of the last six years, (2) is a AAA/AAA-rated entity, 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 well in advance of the maturity date of the CANS [and
structuring the two-year CANS with a short optional call right which will allow the
Sanitation District to redeem the CANS in advance of the maturity date].
Page 4 of 6
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 a fixed rate assumption (e.g., fixed rate of 4.54%
available in 2006) to reduce the outstanding amount of debt on a yearly basis. As
less debt is outstanding, the Sanitation District significantly reduces its interest rate
risk (if higher interest rates occur, the negative effect 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 over$70 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 now over 10.8%. The original variable rate
structure of the 2006 COPS and the six past CANS refinancings have already saved
the District over $35.7 million compared to the alternative of the District issuing fixed
rate debt in 2006. However, staff does not believe it is the appropriate time to
reinstate the ARM program as the break-even rate is so high that it is extremely
unlikely that any future debt costs will negate the already accrued savings. If the
Sanitation District refinances the 2013A CANs with two-year CANs at current market
conditions and does not reinstate the ARM Program, the break-even rate will still
increase to over 12.70% (in 2016). In addition, the Sanitation District is currently
earning xx% on its investment portfolio which hedges the short-term rate of the
CANs; therefore, the Sanitation District benefits from not using its higher yielding
cash to repay principal on lower costing debt. In addition, the ARM program has
already reduced the outstanding prinicipal amount by $39 million more than the
amount that would have been amortized if the bonds were originally issued as fixed
rate bonds.
The Sanitation District could also extend beyond two years with a CANs refunding
issuance to lock in rates for a longer period of time; however the costs of extending
each additional year of 29-37 bps is much greater than the five bps for extending
from one to two years. The following table presents the current market results for 3-
5 year CANS periods:
e Years
Rate 0.580% 0.96% 1.300%
Costs of Issuance 0.073 0.063 0.050
Underwriter Costs 0.033 0.038 0.040
Total over next ear 0.687% 1.060% 1.390%
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. In addition,
short-term rates act as a hedge on the Sanitation District's cash reserves.
Therefore, staff is recommending Option 4., the refunding of the 2013A 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 $3.1 million
per year.
Page 5 of 6
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).
If the Sanitation District pursues Options 1., 3., or 4. (fixed rate options), 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 2014B debt issuance:
➢ Board approval of legal and disclosure documents
September ➢ Financing Corporation approval of legal and disclosure documents
➢ Receive ratings from Bond Rating Agencies
October ➢ Receive competitive bids
➢ Closing
CEQA
N/A
BUDGET/ PURCHASING ORDINANCE COMPLIANCE
N/A
Page 6 of 6
ADMINISTRATION COMMITTEE NeedngDate TOBd 011Dir.
07/09/14 07/23/14
AGENDA REPORT Item Number Item Nu bar 7
4 1
Orange County Sanitation District
FROM: James Herberg, General Manager
Originator: Lorenzo Tyner, Director, Finance and Administrative Services
SUBJECT: COMMUNICATION RADIO SYSTEM REPLACEMENT AND UPDATE
GENERAL MANAGER'S RECOMMENDATION
Authorize use of Ordinance No. OCSD-44, Section 2.03:13. Cooperative Purchases for a
blanket order agreement to purchase equipment and services for OCSD's Motorola
radio systems, for a total amount not to exceed $250,000 to include all tax and freight.
SUMMARY
OCSD currently operates a Motorola two-way radio system to communicate with staff in
support of the normal and emergency operations of the treatment plants and collection
system. The existing Motorola radio system was updated in December 2011 however,
and is capable of operating in a digital mode provided all of the handsets are digital
capable. Existing "digital-ready" handheld, vehicle radios, and two transmitters
operating in analog mode will be programed to digital and approximately 100 handheld
radios will be purchased to replace existing analog handheld radios that are not digital
capable.
After the conversion, current radio reception will be evaluated to address and increase
coverage at critical areas of both plants and to mitigate low-to-no reception issues as
identified in the SP-145 Facility-wide Safety Assessment study.
This authorization will allow OCSD to utilize the County of Orange Cooperative
Agreement, No. MA-060-10012594 and procure from accredited vendors and service
providers for Motorola. OCSD will use this agreement to procure parts and services.
This capital requirement is included as SP-165, Communication Radio System
Replacement.
PRIOR COMMITTEE/BOARD ACTIONS
December—2010: Authorized the General Manager to permanently establish Motorola
radio system equipment as OCSD's standard for the licensed,
privately operated, mobile radio system; and,
Page 1 of 2
Authorized use of Resolution No. OCSD 07-04, Section 3.08:
Cooperative Procurement, for purchases of equipment and services
of Motorola radio systems, for a total amount not to exceed
$250,000, to include all tax and freight.
ADDITIONAL INFORMATION
In 2010, the Federal Communications Commission (FCC) mandated the conversion of
existing systems to technology that will allow more channels to operate in the existing
licensed frequency spectrum, otherwise known as "narrowbanding." The previous
Motorola radio system was replaced and upgraded by 2012 to comply with this FCC
mandate. The majority of the existing components can be reprogrammed to meet the
new standards.
CEQA
N/A
BUDGET / PURCHASING ORDINANCE COMPLIANCE
This request complies with authority levels of OCSD Ordinance No. OCSD-44. This
item has been budgeted under the Capital Improvement Project SP-165. Project
contingency funds will not be used for this project.
Page 2 of 2
ADMINISTRATION COMMITTEE "I'm,Date T1.1 IM.
07/09/14 7/23/14
Item AGENDA REPORT N Number Item Nu bar
6 Nu
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: REDUCTION IN LONG-TERM LIABILITIES
GENERAL MANAGER'S RECOMMENDATION
Direct staff to pay down on the District's unfunded actuarial accrued liability with the
Orange County Employee's Retirement System (OCERS) in the amount of $125 million.
SUMMARY
During the budget development process, staff informed the Board that projected
reserves would exceed the amount required by fiscal policy. Additionally, it was
determined that the District could prudently use these excess funds to reduce the
District's long-term liabilities. As a result, the Adopted FY 2014-15 Budget includes $125
million to reduce its long-term liabilities.
The two available options to reduce long-term liabilities include paying down a portion of
the District's $195 million unfunded actuarial accrued liability (UAAL) administered by
OCERS or paying down the District's $1.2 billion outstanding bonded debt.
The District requested OCERS to provide a UAAL contribution rate for every 1 million of
additional contributions made against the UAAL. Last month, OCERS informed staff
that their actuary had determined that the UAAL rate would be reduced by 0.11% for
each $1 million of additional contributions made by the District towards the UAAL. A
$125 million pay down on the UAAL would result in a decline of the current UAAL rate
by 13.75% (125 X .11%), or from 25.60% to 11.85%.
The following compares the two options of reducing long-term liabilities:
$125 MILLION EARLY PAYMENT OPTIONS(in millions)
Current Status Option 1 Option 2
Payment Categories (No Payment) Pay Down Pay Down
OCERS UAAL Debt
Debt Service (5%) ($ 6.25) ($ 6.25) $ 0.00
Interest Revenue (2%) $ 2.50 $ 0.00 $ 0.00
Normal (OCERS Non-UML) ($ 6.43) ($ 6.43) ($ 6.43)
UAAL Paid to OCERS ($15.85) ($ 7.34) ($15.85)
Total Annual Payment ($26.03) ($20.02) ($22.28)
Annual Savings I (Current vs option) 1 $ 6.01 $ 3.75
Page t of 2
Based on the comparison above, paying down the OCERS UAAL by $125 million would
yield an annual savings of $6.01 million ($26.03 - $20.02) as opposed to paying down
on bonded debt which would yield an annual savings of $3.75 million ($26.03 - $22.28).
Therefore, staff recommends making a $125 million payment to OCERS paying and
reducing the UAAL.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
BUDGET/PURCHASING ORDINANCE COMPLIANCE
This item has been budgeted.
ATTACHMENT
N/A
Page 2 of 2
ITEM No. 19 (a)
MINUTES
STEERING COMMITTEE MEETING
Orange County Sanitation District
The Steering Committee meeting convened on Wednesday, June 25, 2014, at
5:33 p.m. in the Administration Building of the Orange County Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS STAFF PRESENT
PRESENT: Jim Herberg, General Manager
Troy Edgar, Chair Bob Ghirelli, Assistant General
Tom Beamish, Vice-Chair Manager
Brad Reese, Administration Committee Nick Arhontes, Director of Facilities
Chair Support Services
John Nielsen, Operations Committee Rob Thompson, Director of
Chair Engineering
Keith Curry, Member-At-Large Ed Torres, Director of Operations &
Brett Murdock, Member-At-Large Maintenance
John Withers, Member-At-Large Lorenzo Tyner, Director of Finance &
Administrative Services
Kelly Lore, Acting Clerk of the Board
COMMITTEE MEMBERS ABSENT: Janine Aguilar
Jennifer Cabral
None. Norbert Gaia
Stephanie Good
Laurie Klinger
Andrew Nau
Rich Spencer
OTHERS PRESENT:
Brad Hogin, General Counsel
Jim Ruth, Consultant
Steve Filarsky, Consultant
PUBLIC COMMENTS:
None.
REPORTS:
Chair Edgar gave a brief report regarding the Honor Walk and thanked staff for a
great job. He further reported that SB 946 (Huff) was approved unanimously in the
Minutes of the Steering Committee
June 25,2014
Page 2 of 3
Assembly and is back in the Senate pending concurrence in Assembly
amendments. The amendments are not substantive and relate to inserting the
name Orange County Sanitation District into the bill. Final Senate approval is
expected before the summer recess begins July 8th.
General Manager Jim Herberg reported on the following: Monthly report — Annual
Work Plan; Outreach efforts; Grant application to the US Bureau of Reclamation
for the Water Smart Program to partially fund our water recycling study; Newport
Beach activities update; OCSD FY 2014-16 Budget; hydrogen fuel cell project;
Heal the Bay beaches report card; and the "Quadrennial Energy Review Public
Meeting — The Water-Energy Nexus" in San Francisco, hosted by the U.S.
Department of Energy.
CONSENT CALENDAR:
1. MOVED, SECONDED, AND DULY CARRIED: Approve Minutes of the
May 28, 2014 Steering Committee Meeting.
AYES: Beamish, Curry, Edgar, Reese, Murdock, Nielsen and
Withers
NOES: None
ABSTENTIONS: None
ABSENT: None
Before going to closed session, Chair Edgar thanked the Committee and the staff
for their support during his time on the Board.
CLOSED SESSION
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTIONS: 54957.6, 54957(b)(1)
The Committee convened in closed session at 5:48 p.m. to discuss two items.
Confidential minutes of the Closed Session have been prepared in accordance
with the above Government Code Sections and are maintained by the Clerk of the
Board in the Official Book of Confidential Minutes of Board and Committee Closed
Meetings.
Minutes of the Steering Committee
June 25,2014
Page 3 of 3
RECONVENED IN REGULAR SESSION: The Committee reconvened in regular
session at 6:25 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.
ADJOURNMENT:
The Chair declared the meeting adjourned at 6:25 p.m.
Submitted by:
Kelly A. Lore
Acting Clerk of the Board
ITEM NO. 19 (b)
MINUTES
SPECIAL
STEERING COMMITTEE MEETING
Orange County Sanitation District
The Special Steering Committee meeting convened on Wednesday, July 9, 2014,
at 4:30 p.m. in the Administration Building of the Orange County Sanitation
District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS STAFF PRESENT
PRESENT: Jim Herberg, General Manager
Tom Beamish, Chair Bob Ghirelli, Assistant General
John Nielsen, Vice-Chair Manager
Brett Murdock, Operations Committee Lorenzo Tyner, Director of Finance &
Chair Administrative Services
Brad Reese, Administration Committee Jeff Reed, Director of Human
Chair Resources
John Withers, Member-At-Large Kelly Lore, Acting Clerk of the Board
Keith Curry, Member-At-Large Janine Aguilar
Norbert Gaia
Stephanie Good
COMMITTEE MEMBERS ABSENT: Laurie Klinger
Andrew Nau
None. Rich Spencer
OTHERS PRESENT:
Brad Hogin, General Counsel
Jim Ruth, Consultant
Steve Filarsky, Consultant
PUBLIC COMMENTS:
Mark Mutz, OCSD Employee, spoke to the Committee regarding previous
negotiations, stating that the employees have been Flexible in the past regarding
wages and insurance, paying for portions of their retirement and medical
insurance.
REPORTS:
Chair Beamish did not provide a report.
Minutes of the Steering Committee-SPECIAL Meeting
July 9, 2014
Page 2 of 2
General Manager Jim Herberg did not provide a report.
CLOSED SESSION
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTIONS: 54957.6
The Committee convened in closed session at 4:34 p.m. to discuss one item.
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
Meetings.
Director Murdock arrived at 4:40 p.m.
RECONVENED IN REGULAR SESSION: The Committee reconvened in regular
session at 5:30 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.
ADJOURNMENT:
The Chair declared the meeting adjourned at 5:32 p.m.
Submitted by:
Kelly A. Lore
Acting Clerk of the Board
ITEM NO. 20
MINUTES
LEGISLATIVE AND PUBLIC AFFAIRS
SPECIAL COMMITTEE MEETING
Orange County Sanitation District
The Legislative and Public Affairs Special Committee meeting convened on
Monday, July 14, 2014, at 8:00 a.m. in the Administration Building of the Orange
County Sanitation District. Director John Withers led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS STAFF PRESENT
PRESENT: Jim Herberg, General Manager
Tom Beamish, Board Chair Bob Ghirelli, Assistant General
David Benavides, Director Manager
Tyler Diep, Director Nick Arhontes, Director of Facilities
John Nielsen, Board Vice-Chair Support Services
Brad Reese, Administration Committee Jeff Reed, Director of Human
Chair Resources
Greg Sebourn, Director Rob Thompson, Director of
John Withers, Administration Engineering
Committee Vice-Chair Lorenzo Tyner, Director of Finance &
Administrative Services
Kelly Lore, Acting Clerk of the Board
Jim Colston, Environmental
Compliance Regulatory Affairs
COMMITTEE MEMBERS ABSENT: Manager
Kelly Newell, Public Affairs Specialist
None. Jennifer Cabral, Principal Staff
Analyst
OTHERS PRESENT:
Brad Hogin, General Counsel
Heather Stratman, Townsend Public
Affairs
Ian Delzer, Townsend Public Affairs
Eric Sapirstein, ENS (via teleconference)
PUBLIC COMMENTS:
None.
Minutes of the Legislative and Public Affairs Special Committee
July 14, 2014
Page 2 of 4
REPORTS:
Mr. Herberg, General Manager, mentioned the process for the Professional
Services Agreements for Consent Calendar Agenda Item 2.
Chair Beamish acknowledged and welcomed new Committee members Greg
Sebourn and Tyler Diep.
CONSENT ITEMS:
1. MOVED, SECONDED, and DULY CARRIED to: Approve the minutes for
the Committee meeting held on June 9, 2014.
AYES: Beamish; Benavides; Reese and Withers.
NOES: None
ABSTENTIONS: Diep and Sebourn
ABSENT: Nielsen
2. MOVED, SECONDED, and DULY CARRIED to: Recommend to Steering
Committee to:
A. Extend a Professional Services Agreement with Townsend Public
Affairs for State Legislative Services for the period of July 1, 2014
through December 31, 2014 at a monthly rate of $7,500 per month
for an annual not to exceed amount of$45,000; and
B. Extend a Professional Services Agreement with ENS Resources for
Federal Legislative Services for the period of July 1, 2014 through
December 31, 2014 at a monthly rate of $5,500 per month for an
annual not to exceed amount of$33,000.
AYES: Beamish; Benavides; Diep; Reese; Sebourn and
Withers.
NOES: None
ABSTENTIONS: None
ABSENT: Nielsen
Minutes of the Legislative and Public Affairs Special Committee
July 14,2014
Page 3 of 4
Vice-Chair Nielsen arrived at the meeting at 8:04 a.m.
INFORMATIONAL ITEMS:
3. Federal Legislative Update
Mr. Sapirstein reported on the following: appropriation efforts for State
Revolving Fund Program (SRF); EPA "Waters of the U.S." rulemaking and
concerns to OCSD; water recycling and drought relief; challenges of the
drought bills H.R. 3964 and S. 2198; state financed water recycling loans;
Department of Energy's "Quadrennial Energy Review", reporting a
successful presentation from OCSD; Rip Rap removal for the Santa Ana
river; and staff changes in the Corps of Engineers.
General Manager Jim Herberg notified the Committee that the application
OCSD submitted for the 2014 Title XVI Feasibility program was not funded
for a feasibility study. He discussed possibilities of future funding.
Mr. Herberg further reported on his attendance at the "Quadrennial Energy
Review Public Meeting - The Water-Energy Nexus" on June 19`" and
upcoming meetings with SAWPA and Corps of Engineers regarding Rip
Rap removal.
Mr. Sapirstein stated that the EPA is planning a meeting in Los Angeles
(date to be determined) regarding Water Infrastructure Finance and
Innovation Authority (WIFIA), to discuss their intent for implementing
funding for low interest loans for water infrastructure. He will inform staff
when the date has been set and urged staff to attend this meeting.
4. State Legislative Update
Ms. Stratman provided an update on the status of SB 946, which is now on
the Governor's desk for signing. A letter of support from OCSD, Yorba
Linda Water District (YLWD) and City of Yorba Linda urging the Governor to
sign was also sent.
She further reported on water bond issues; Emergency Drought Relief
funding; 2014 Water Use and Energy Efficiency Projects; Department of
Water Resources (DWR) draft guidelines, eligible programs and projects,
and the schedule of hearings and possible appropriations. She then
answered questions from the Committee.
5. OCSD Public Affairs Update
Bob Ghirelli, Assistant General Manager, announced that Faviola Miranda
had accepted a position with Southern California Gas Co. and that OCSD is
Minutes of the Legislative and Public Affairs Special Committee
July 14,2014
Page 4 of 4
currently recruiting for the position. He further reported on OCSD's recent
Public Affairs outreach efforts including: Fountain Valley Summerfest,
Westminster Safety Day, Honor Walk Ceremony, electronic budget
message on website; speaking engagements including: the OCSD
Disinfection Study, presented by Director of Operation and Maintenance Ed
Torres to the City Council of Huntington Beach and a presentation by
Director of Engineering, Rob Thompson regarding information and updates
to Newport Beach projects to their City Council; Career Day event at
Village View Elementary School; website updates; installation of a
dedicated rate phone line; possible partnership with the Discovery Science
Center and plant tours given. Director Sebourn suggested the possibility of
the District providing an exhibit booth at the OC Fair. Chair Beamish stated
that the Science station at the La Habra Children's Museum has a great
water display.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
Director Sebourn inquired about the recruitment of the Senior Public Affairs
Specialist; staff confirmed that the process was well underway and that other
dedicated staff will keep business as usual. He also requested a future
presentation for the City Council of Fullerton.
ADJOURNMENT:
Chair Beamish declared the meeting adjourned at 8:30 a.m.
Submitted by:
Kelly A. Lore
Acting Clerk of the Board
ITEM NO. 21
MINUTES
GROUNDWATER REPLENISHMENT SYSTEM STEERING COMMITTEE
STEERING COMMITTEE
Monday, April 14, 2014, 5:00 p.m.
ROLL CALL
2014 Committee Members
Philip L.Anthony OCWD Director, Interim Chair ............................. Present
Tom Beamish OCSD Director,Vice Chairman........................... Present
Troy Edgar OCSD Director....................................................Not Present
Roger Yoh OCWD Director ...................................................Not Present
Jim Ferryman OCSD Director.................................................... Present
Kathryn Bar OCWD Director..................................................... Present
Alternates
Cathy Green OCWD Director(No. 1)...............(amved 5:30 pm)... Present
Brett Murdock OCSD Director(No. 1)......................................... Not Present
Harry Sidhu OCWD Director(No. 2) ... ............................... Not Present
John Nielsen OCSD Director(No. 2)......................................... Not Present
Jan Flory OCWD Director(No. 3)......................................... Not Present
Greg Sebourn OCSD Director(No. 3)......................................... Present
Other Directors Present
Staff/Consultants Present
Mehul Patel, OCWD Bill Hunt, OCWD
Mike Markus, General Manager Rich ten Bosch, Black&Veatch
Jim Herberg, OCSD Judy-Rae Karlsen, OCWD
Luke Wendel, Parsons Curt Homer, McCarthy Building Companies
Debbie Bums, DDB Engineering Damon Yates, McCarthy Building Companies
Jim Clark, Black&Veatch
ACTION VOTE
• Appoint OCWD Director Roger Yoh as Chairman
Motion - Beamish 5-0
OCWD Directors OCSD Directors Second-Anthony Yes—Beamish
Roger Yoh Tom Beamish Anthony
Kathryn Barr Troy Edgar Ferryman
Philip L.Anthony Jim Ferryman Barr
Alternates Alternates Sebourn
Cathy Green(1) Brett Murdock (1)
Harry Sidhu (2) John Nielsen (2) No-0
Jan Flo 3 Greg Sebourn 3
1. MINUTES OF PREVIOUS MEETING Approved 5-0
Yes—Beamish
RECOMMENDATION:Approve Minutes of the Anthony
January 13, 2014 GWRS Groundwater Replenishment System Ferryman
Steering Committee meeting as presented Barr
Sebourn
No-0
INFORMATIONAL ITEMS
2. GWRS INITIAL EXPANSION CONSTRUCTION UPDATE Informational
3. GWRS OPERATIONS UPDATE Informational
4. GWRS OPERATING BUDGET SUMMARY Informational
5. QUARTERLY OUTREACH REPORT Informational
Public information and Education update
DIRECTORS
GENERAL MANAGER
ADJOURNMENT 6:15 p.m.
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
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
FSSD Facilities Support Services Department
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
GOBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
POTW Publicly Owned Treatment Works
ppm Parts per million
RFP Request For Proposal
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
Glossary of Terms and Abbreviations
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 know 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.
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.
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.
Glossary of Terms and Abbreviations
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (D1T) — the dilution at which the majority of the people detect the odor
becomes the DrT 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 (MGD) 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.
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.
Glossary of Terms and Abbreviations
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.