HomeMy WebLinkAbout12-19-2018 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, December 19, 2018
Regular Meeting of the 6:00 P.M.
BOARD OF DIRECTORS Board Room
` 10844 Ellis Avenue
Fountain Valley, CA 92708
(714) 593-7433
AGENDA
CALL TO ORDER (Board Chairman David Shawver)
INVOCATION AND PLEDGE OF ALLEGIANCE (Robert Collacott, City of Villa Park)
ROLL CALL (Clerk of the Board)
1. RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING
TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT
BOARD OF DIRECTORS (Clerk of the Board)
AGENCY DIRECTOR ALT. DIRECTOR
Garden Grove Steve Jones John O'Neill
DECLARATION OF QUORUM (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a
Speaker's Form (located at the table outside of the Board Room) and submit it to the Clerk of the Board or
notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by
the Chairperson and are requested to limit comments to three minutes.
SPECIAL PRESENTATIONS:
A) Employee Service Awards
B) Board Member Recognition
C) Presentations by OCSD State and Federal Lobbyists
REPORTS: The Board Chairperson 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.
12/19/2018 OCSD Board of Directors Agenda Page 1 of 7
ELECTION:
2. NOMINATION & ELECTION OF VICE CHAIRPERSON OF THE BOARD OF
DIRECTORS (Clerk of the Board)
RECOMMENDATION: Consider nominations and conduct an election for the
position of Vice Chairperson of the Board of Directors in accordance with Resolution
No. OCSD 18-12.
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 Any items withdrawn from the Consent Calendar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.
3. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve the minutes of the Regular Meeting of the Board
of Directors held on November 28, 2018.
4. RESOLUTION NO. OCSD 18-21 COMMENDING BOARD CHAIRMAN
GREGORY SEBOURN (Lorenzo Tyner)
RECOMMENDATION: Adopt Resolution No. OCSD 18-21 entitled: "A Resolution
of the Board of Directors of the Orange County Sanitation District commending
Gregory C. Sebourn for his outstanding contributions and dedication to public
service as Chairman of the Orange County Sanitation District's Board of Directors".
5. NO-COST EXTENSION FOR FISH TRACKING STUDY SOLE SOURCE
CONTRACT WITH DR. CHRISTOPHER LOWE — CALIFORNIA STATE
UNIVERSITY LONG BEACH (Jim Colston)
RECOMMENDATION: Approve Amendment No. 2 to Sole Source Contract Fish
Tracking Study, for a contract extension to Dr. Christopher Lowe of the California
State University Long Beach for the period November 1, 2018 through
June 30, 2019 at no additional cost,for a total contract cost not to exceed $214,058.
6. PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEES
(Jim Colston)
RECOMMENDATION: Approve payment of $577,091 for annual NPDES (ocean
discharge) permit fees.
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the
Board Chair.
7. COMMITTEE MINUTES (Clerk of the Board)
RECOMMENDATION: Receive and file the approved minutes of the following
committees:
12/19/2018 OCSD Board of Directors Agenda Page 2 of 7
A. Steering Committee Meeting of October 24, 2018
B. Legislative and Public Affairs Meeting of November 5, 2018
C. Operations Committee Meeting of November 7, 2018
D. Administration Committee Meeting of November 14, 2018
E. Headquarters Complex Ad Hoc Committee Meeting of November 14, 2018
8. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
NOVEMBER 2018 (Lorenzo Tyner)
RECOMMENDATION: Receive and file the report of the Investment Transactions
for the month of November 2018.
OPERATIONS COMMITTEE:
9. RELOCATION INTO 18350 MT. LANGLEY, PROJECT NO. FE18-01
(Rob Thompson)
RECOMMENDATION: Authorize the General Manager to approve a purchase
order with GM Business Interiors (GMBI) in an amount not to exceed $250,000 for
procurement of furniture for relocation into 18350 Mt. Langley, Project No.
FE 18-01.
10. HOSE REEL FRAME WITH 12-INCH LAY FLAT HOSE (Ed Torres)
RECOMMENDATION:
A. Approve a Sole Source Purchase Order to West Coast Safety Supply Co.
for 1,980 feet of 12-inch lay flat sewer hose with mobile hose reel,
Specification No. E-2017-91OBD for a total cost of$220,383; and
B. Approve a contingency of$22,038 (10%)
11. ANNUAL SEWER LINE CCTV SERVICE CONTRACT, SPECIFICATION
NO. S-2018-1001 BD (Ed Torres)
RECOMMENDATION:
A. Award Service Contracts to two (2)contractors: Houston & Harris PCS, Inc.
(Primary) for $352,940 and Performance Pipeline Technologies
(Secondary), for $60,000 for Annual CCTV Sewer Inspection Services,
Specification No. S-2018-1001BD for a total amount not to exceed
$412,940 for the period beginning February 1, 2019 through
January 31, 2020, with four (4) one-year renewal options; and
B. Approve a contingency of$41,000 (10%).
12/19/2018 OCSD Board of Directors Agenda Page 3 of 7
12. DIGESTER CLEANING CONTRACT (Ed Torres)
RECOMMENDATION: Approve Amendment No. 1 for the remaining annual
renewals of the service contract with Synagro-WWT for Digester Cleaning and
Disposal, Specification No. S-2017-82413D, which adds a provision for a per gallon
unit price for processing excess sludge and approve the excess sludge per gallon
unit price of$0.13.
13. PROCURE REMOTE ACTUATORS (Ed Torres)
RECOMMENDATION:
A. Approve a sole source purchase order to CBS Aresafe for 204 electrical
power switching actuators and associated equipment for Plant No. 1, Plant
No. 2, and 15 pump stations for a total amount not to exceed $1,001,985;
and
B. Approve a contingency of $50,100 (5%).
14. INCREASE TO JANITORIAL AND FLOOR MAINTENANCE CONTRACT
(Ed Torres)
RECOMMENDATION:
A. Approve Amendment No. 1 to Service Agreement with Gamboa Services,
Inc. DBA Corporate Image Maintenance for Janitorial & Floor Maintenance
Service at Plant Nos. 1 and 2, Specification No. S-2015-7301313, for the
period February 1, 2019 through January 31, 2020, for an amount not to
exceed $399,720, including the one (1)year renewal option; and
B. Approve an annual contingency in the amount of$39,972 (10%)aggregately
per year.
15. PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE REHABILITATION
AGREEMENT WITH DRESSER-RAND (Ed Torres)
RECOMMENDATION: Approve negotiated Purchase Order Terms & Conditions
with Dresser-Rand for the assessment and standard overhaul of the Steam Turbine
at Plant No. 2, in a form approved by General Counsel.
16. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
(Rob Thompson)
RECOMMENDATION:
A. Approve a Professional Construction Services Agreement with Brown and
Caldwell to provide construction support services for Ocean Outfall System
12/19/2018 OCSD Board of Directors Agenda Page 4 of 7
Rehabilitation, Project No. J-117, Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $8,563,913; and
B. Approve a contingency of$856,391 (10%).
17. OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
(Rob Thompson)
RECOMMENDATION:
A. Receive and file Bid Tabulation and Recommendation for the Outfall Low
Flow Pump Station, Contract No. J-11713;
B. Receive and file Orange County Sanitation District's Notice of Intent to
Award dated November 21, 2018;
C. Award a Construction Contract to Shimmick Construction Company, Inc. for
the Outfall Low Flow Pump Station, Contract No. J-117B, for a total amount
not to exceed $90,200,000; and
D. Approve a construction contract contingency of$7,216,000 (8%).
18. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT NO. 2,
PROJECT NO. 132-123 (Rob Thompson)
RECOMMENDATION: Approve a budget increase of $7,250,000 for Return
Activated Sludge Piping Replacement at Activated Sludge Plant No. 2, Project No.
132-123, for a total budget of$20,000,000.
19. SUNFLOWER AND RED HILL INTERCEPTOR REPAIR, PROJECT NO. 7-66
(Rob Thompson)
RECOMMENDATION: Establish a project for Sunflower and Red Hill Interceptor
Repair, Project No. 7-66, with a budget of$5,500,000.
20. PLANT NO. 1 RECTANGULAR PRIMARY CLARIFIER OVERHAUL
(Ed Torres)
RECOMMENDATION:
A. Approve a Purchase Order contract to Mehta Mechanical Company Inc. for
the mechanical rehabilitation and overhaul of twenty-four (24) Primary
Clarifier tanks at Plant No. 1, per Specification No. S-2018-98513D,for a total
amount not to exceed $1,998,000; and
B. Approve a contingency of$199,800 (10%).
12/19/2018 OCSD Board of Directors Agenda Page 5 of 7
ADMINISTRATION COMMITTEE:
21. RECORDS RETENTION SCHEDULE (Lorenzo Tyner)
RECOMMENDATION: Adopt Resolution No. OCSD 18-22 entitled: "A Resolution
of the Board of Directors of the Orange County Sanitation District Adopting the
Records Management Program Policy and Procedures & Updated Records
Retention Schedule, Authorizing Destruction of Obsolete Records, and Repealing
Resolution No. OCSD 15-16".
22. INVEST AND/OR REINVEST DISTRICT'S FUNDS (Lorenzo Tyner)
RECOMMENDATION: Adopt Resolution No. OCSD 18-23, entitled: "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, Adopting District's
Investment Policy Statement and Performance Benchmarks, and Repealing
Resolution No. OCSD 17-17".
LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE:
23. 2019 LEGISLATIVE AND REGULATORY PLAN (Jim Herberg)
RECOMMENDATION: Approve the Orange County Sanitation District 2019
Legislative and Regulatory Plan.
STEERING COMMITTEE:
24. LABOR RELATIONS — CONTRACT NEGOTIATIONS
(Celia Chandler)
RECOMMENDATION: Authorize the Board Chair to execute an agreement with
Liebert Cassidy Whitmore, the external Chief Negotiator selected by the Ad Hoc
Committee for an amount not to exceed $120,000.
NON-CONSENT:
None.
AB 1234 DISCLOSURE REPORTS: This item allows Board members to provide a brief oral report
regarding the disclosure of outside committees, conferences, training, seminars, etc. attended at the
Agency's expense, per Government Code§53232.3(d).
CLOSED SESSION:
None.
12/19/2018 OCSD Board of Directors Agenda Page 6 of 7
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
ADJOURNMENT:
Adjourn the Board meeting until the Regular Meeting of the Board of Directors
on January 23, 2019 at 6:00 p.m.
Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related
accommodations,please contact the Orange County Sanitation District Cleric of the Board's once at(714)593-7433 at least 72
hours prior to the scheduled meeting. Requests must specify the nature ofthe disability and the type of accommodation requested.
Aaentla Posting: In accordance with the requirements of California Government Gods Section 54954.2, this agenda has been
posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley,
California, and on the Sanitation District's webshe at www.ocsd.com,not less than 72 hours prior to the meeting date and time
above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the
meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Cleric of the Board.
Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed.
The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed
appropriate.
NOTICE TO DIRECTORS: To place items an the agenda for a Committee or Board Meeting,items must be submitted to the Cleric
of the Board 14 days before the meeting.
Kelly A.Lore,MMC
Clerk of the Board
(714)593-7433
klore(dacstl.com
For any questions on the agenda,Committee members may contact staff at:
General Manager Jim Herberg (714)593-7300 'herbertyRocsd.ocm
Assistant General Manager Lorenzo Tyner (714)593-7550 Itvner(Riocad.com
Assistant General Manager Rob Thompson (714)593-7310 rthomoson(dpcscl.com
Director of Environmental Services Jim Colston (714)593-7450 'colsloneocsd.com
Director of Human Resources Celia Chandler (714)593-7202 cchamdlerAccsd.com
Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com
12/19/2018 OCSD Board of Directors Agenda Page 7 of 7
BOARD OF DIRECTORS Meeting Dare I T0.1 Dir.
— 12/19/18
AGENDA REPORT em Number Item Numbe
2
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Kelly A. Lore, Clerk of the Board
SUBJECT: NOMINATION & ELECTION OF VICE CHAIRPERSON OF THE BOARD
OF DIRECTORS
GENERAL MANAGER'S RECOMMENDATION
Consider nominations and conduct an election for the position of Vice Chairperson of the
Board of Directors in accordance with Resolution No. OCSD 18-12.
SUMMARY
Former Chairperson Greg Sebourn's term expired as a City Council Member in the City
of Fullerton. Vice Chairperson David Shawver automatically succeeded former
Chairperson Sebourn as provided in Resolution No. OCSD 18-12. Said Resolution also
requires the Board to consider nominations for a new Vice Chairperson; and conduct an
election at the next meeting of the Board. Resolution No. OCSD 18-12 provides in
relevant part as follows:
"Section 1.G. Chairperson and Vice Chairperson of the Board.
In the event the office of Chairperson becomes vacant due to resignation or retirement
of the incumbent prior to the expiration of the regular term, the Vice Chairperson shall
automatically succeed to the office of the Chairperson and shall continue to serve
through the remainder of the regular term unless sooner removed by action of a
majority of the Directors.
In the event the office of Vice Chairperson becomes vacant prior to the expiration of
the regular term, nominations and the election of a Director to serve in that capacity
shall be conducted at the next regular Board meeting. The person so elected shall
serve the balance of the regularly-scheduled term unless sooner removed as a result
of action by a majority of the Directors."
General Counsel will preside over this election.
ATTACHMENTS
The following affachment(s)are attached in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
• Resolution No. OCSD 18-12
Page 1 of 1
RESOLUTION NO. OCSD 18-12
A RESOLUTION OF THE BOARD OF DIRECTORS OF
ORANGE COUNTY SANITATION DISTRICT
ESTABLISHING RULES OF PROCEDURE FOR THE
CONDUCT OF BUSINESS OF THE DISTRICT, AND
REPEALING RESOLUTION NO. OCSD 17-18
WHEREAS it is necessary to establish rules of procedure to facilitate the orderly
handling of business to come before the Orange County Sanitation District Board of
Directors and Standing, Steering, Special and Ad Hoc Committees.
NOW THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: Rules of Procedure. That the following rules of procedure be
adopted for the conduct of business of the District:
A. Regular Meetings. There shall be a regular monthly meeting of the Board
of Directors of the District on the fourth Wednesday of every month at 6:00 p.m., in the
Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley,
California; provided, however, if the fourth Wednesday of the month falls upon a legal
holiday, said monthly meeting shall be hell on the next day thereafter, at the same time
and place, unless the Board adjourns to a different date and time.
The Board of Directors may adjourn any regular, special or adjourned special
meeting to a time and place certain, as specified in the order of adjournment.
B. Special Meetings. A special meeting of the Board of Directors may be
called in either one of the following ways:
(1) By the Chairperson of the Board of Directors; or
(2) By the written request of a majority of the Steering Committee
delivered to the Clerk of the Board.
The call or notice for special meeting shall be in writing and delivered personally
or by mail at least twenty-four (24) hours before the time of such meeting, as specified in
the notice. Any notice deposited in the regular mail addressed to a Director at the address
he or she has on file with the Clerk of the Board postage prepaid, sixty (60) hours in
advance of any such meeting as specified in the notice, shall be presumed to have been
delivered.
The call or notice shall specify the time and place of the special meeting, a
description of the business to be transacted and copies of all pertinent written materials.
OCSD 18-12-1
Such written notice may be dispensed with as to any Director or Alternate Director
who, at or prior to the time the meeting convenes, files with the Clerk of the Board a
written waiver of notice. Such waiver may be given by facsimile or electronic mail. Such
written notice may also be dispensed with as to any member who is actually present at
the meeting at the time it convenes. The Clerk of the Board shall diligently attempt to
notify each Director personally of the time, place and purpose of said meeting, not less
than twenty-four(24) hours before the time of said meeting.
The call or notice shall be posted in the administrative offices' public lobby and in
a location freely accessible to the public at least twenty-four(24) hours prior to the special
meeting.
C. Meetings Adjourned by Clerk of the Board. If at any regular, adjourned
regular, special or adjourned special meeting there is not a quorum of Directors present,
the Clerk of the Board may declare the meeting adjourned to a stated time and place and
shall cause written notice of the adjournment to be given in the same manner as for a
special meeting, unless such notice is waived as provided for in special meetings. Within
twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of
adjournment shall be conspicuously posted on or near the door of the place where the
meeting was held and, in a location, freely accessible to the public.
D. Notices to News Media. When any local newspaper of general circulation,
radio or television station requests, in writing, notices of meetings of the Board of
Directors, the Clerk of the Board shall thereafter, until receipt of a notice terminating said
request, deliver notices of regular, regular adjourned and special adjourned meetings to
such newspapers, radio or television stations. Delivery shall be made in the same manner
as delivery is made to the Directors.
E. Conduct of Meetings.
(1) Procedural Rules. The procedural rules for debate and action shall
be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's
Rules of Order shall not be applicable or govern the procedures for the conduct of
Sanitation District business.
(2) Legal Officer. In any case of ambiguity or uncertainty in the
interpretation or application of these Rules to any procedure, the presiding officer may
direct such question for a ruling to the Board's General Counsel, who shall be the
parliamentarian of the Board.
(3) Obtaining the Floor and Making Motions. Any member of the Board
wishing to speak, or any member of the public wishing to address the Board, must first
be recognized by the Chairperson. The Chairperson must recognize any member of the
Board who seeks the floor when appropriately entitled to address the Board.
OCSD 18-12-2
Any member of the Board, including the Chairperson, may bring a
matter of business properly before the Board by making a motion. Any member, including
the Chairperson, except the member making the motion, may second the motion. Once
a motion is seconded, it may be opened for discussion and debate, in accordance with
the procedures in Subsection (4) below.
(4) Rules for Discussion. Debate and Deliberation by the Board. The
procedures for consideration and action on all matters to come before the Board shall be
in compliance with the terms of this Section, as follows:
(a) Each item on the Agenda will be introduced in a form of a
report by either the General Manager, a member of the Executive Management Team, or
Counsel.
(b) Upon completion of the report, the Chairperson will allow for
direct questions regarding the item, by Directors, each in turn, and in the order as selected
by the Chairperson.
(c) Upon completion of the question period, the Chairperson will
entertain a motion and second for consideration by the Board.
(d) Discussion among the Directors will follow. Each Director will
be recognized to address the Board in the order selected by the Chairperson, with a five
(5) minute time limit for each Member wishing to speak on the Agenda item, unless the
time limit is waived by the Chairperson. There will be no interruptions of the Director who
has been recognized. Attempted interruptions will be declared out-of-order, and the
Board Member attempting to interrupt will be asked to remain silent until recognized.
(e) As an additional courtesy to everyone, repetition of comments
will be discouraged in the interest of time and, at the discretion of the Chairperson, can
be declared out-of-order.
(f) After each Member who wishes to speak has been recognized
and completed his/her remarks, a single three(3) minute period of rebuttal will be allowed
any Director, unless the time limit is waived by the Chairperson.
(g) If it appears to the Chairperson that any Director is pursuing a
line of questioning or commentary due to lack of preparation or prior review with the
District's Staff, the Director's time will be declared to have been used up, and no further
inquiry will be allowed.
(h) Upon adoption of a motion on an Agenda Rem, there will be
no further discussion of that Rem.
I
OCSD 18-12-3
(5) Decorum in Debate. All Members shall address their remarks to the
Chairperson and confine them to the business then pending and subject to discussion
before the Board, avoiding personalities and reflections upon anyone's motives.
(6) Closing or Limiting Debate. At all times, the Board shall endeavor to
allow free and open debate among Members of the Board. However, in the discretion of
the Chairperson, it may become necessary to close or limit debate, so that action can be
taken by the Board. An order by the Chairperson closing or limiting the debate can only
be set aside by a majority vote of the Board.
F. Quorum. A majority of the Directors shall constitute a quorum of the Board.
G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice
Chairperson of the Board shall be elected by a majority vote of Directors at the regular
meeting in June of each year and will assume office July 1st. The nominations for
Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of
each year. Any person nominated for Chairperson shall be deemed to be nominated for
Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, the
nominees shall prepare a statement setting forth their qualifications for the office sought.
The statements should be forwarded to the Clerk of the Board who will in turn mail to the
members of the Board of Directors with the Agenda and other meeting material for the
June regular meeting. If only one individual is nominated for Chairperson at the regular
Board meeting in May, that individual shall be deemed elected as Chairperson, no
election shall be held in June, and the individual shall assume office July 151. If only one
individual is nominated for Vice Chairperson at the regular Board meeting in May, that
individual shall be deemed elected as Vice Chairperson, no election shall be held in June,
and the individual shall assume office July 151.
The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of
the Directors. In the event the office of Chairperson becomes vacant due to resignation
or retirement of the incumbent prior to the expiration of the regular term, the Vice
Chairperson shall automatically succeed to the office of the Chairperson and shall
continue to serve through the remainder of the regular term unless sooner removed by
action of a majority of the Directors. In the event the office of Vice Chairperson becomes
vacant prior to the expiration of the regular term, nominations and the election of a
Director to serve in that capacity shall be conducted at the next regular Board meeting.
The person so elected shall serve the balance of the regularly-scheduled term unless
sooner removed as a result of action by a majority of the Directors.
The Chairperson shall not serve more than two consecutive one-year terms for
which he/she has been elected to the office of Chairperson. The Vice Chairperson shall
not serve more than two consecutive one-year terms for which he/she has been elected
to the office of Vice Chairperson.
OCSD 18-12-4
H. Presiding Officer. The Chairperson of the Board shall preside during
meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall
preside.
I. Clerk of the Board and Minutes. The Board of Directors shall have a person
designated to serve as Clerk of the Board. The Clerk of the Board will be appointed to
the position by the General Manager and shall report to the General Manager or a
Department Head as designated by the General Manager. The Clerk of the Board will be
a regular full-time employee, subject to all the rules and policies applicable to all regular
full-time employees. The Clerk of the Board shall attend all meetings of the Board of
Directors, unless excused by the Chairperson, and shall prepare an accurate record of
each meeting for submission to the Directors and subsequent approval at the following
meeting; provided, however, that when an adjourned, special or special adjourned
meeting of the Board of Directors immediately precedes a regular meeting, Minutes of
said meeting shall be submitted for approval at the next meeting of the Board following
said regular meeting.
In the preparation of Official Minutes of a meeting of the Board of Directors, the
Clerk of the Board will not record the name of the Director who moves or who seconds
the adoption of a motion or Resolution but will reflect the votes by name of each Director
on each item brought before the Board.
In the absence of the Clerk of the Board, a Deputy Clerk of the Board shall be
appointed to exercise the duties of the Clerk of the Board-
J. Regular Business to Come Before the Board of Directors. Insofar as
practicable, all items of business to be taken up at a regular meeting of the Board shall
be submitted to the Clerk of the Board, who shall include on the Agenda all such items
submitted by Directors, the General Manager and General Counsel, and all formal
communications.
The Clerk of the Board shall mail to each Director a notice of such regular
meetings, together with a proposed Agenda, not later than the Friday immediately
preceding such regular meetings. Said Agenda, insofar as possible, shall include copies
of Resolutions, except as hereafter provided, and a description of all matters to be
considered, together with any pertinent written materials.
Agendas shall be posted in a location freely accessible to the public not less than
seventy-two (72) hours in advance of the meeting.
Resolutions designated as"standard"and adopted by the Board of Directors from
time to time, and approved as to form and content, need not be included with said Agenda;
provided, however, that the information completing said standard Resolutions shall be set
forth on the Agenda listing, and copies of said standard Resolutions shall be on file with
the Clerk of the Board at the meeting time and place.
OCSD 18-12-5
Items of business not known at the time the regular Agenda is mailed as herein
provided, may be considered as supplemental Agenda items; provided that all
requirements of the Ralph M. Brown Act(California Government Code Sections 54950 at
seq.) are satisfied.
No business, except with consent of two-thirds of the Directors present (a majority
of Directors present for emergency actions), and only if permitted by the Ralph M. Brown
Act, not appearing on the regular or supplemental Agendas may be brought before the
Board of Directors.
The meeting Agenda shall provide for an opportunity for members of the public to
address the Board on items on the Agenda and non-Agenda items of public interest. As
determined by the Chairperson, speakers may be deferred until the specific Agenda item
is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on
non-Agenda items may address only items that are within the subject matter jurisdiction
of the Board of Directors. Time allotted for such presentations is limited to three (3)
minutes or less. Total time allotted for all public input on each non-Agenda item is limited
to thirty (30) minutes to one (1) hour, taking into consideration the number of persons
filing a request to address the Board. However, time allotments may be waived by a
majority vote of the Board.
K. Handling of Business and Voting. During the course of a Board meeting,
routine matters listed on the Agenda for consideration will be referred to by Agenda Item
Number only.
Voting on all Resolutions shall be by roll call, except if waived by unanimous voice
vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the
motion or Resolution under discussion. The name of each Director shall be called only
once.
On matters of considerable interest or on which there appears to be a controversy,
the motion or Resolution shall be read by title or repeated by the Chairperson. The
Chairperson shall thereafter call for discussion of the motion or Resolution, at which time
any member may discuss the pending matter. Any person other than a Director present
at the meeting may speak on the motion d recognized by the Chairperson. Sole discretion
as to the extent of discussion outside of the membership of the Board shall rest with the
Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's
discretion, repeat the motion or Resolution pending, and thereafter, call for a vote.
The Clerk of the Board shall determine and state whether or not a motion or
Resolution is adopted by roll call vote. On all other matters, the Chairperson shall
determine the outcome of the voting.
L. Committees.
(1) Standing Committees.
OCSD 18-12-6
(a) Steering Committee: There shall be a permanent Committee
designated as the Steering Committee, comprised of the Chairperson of the Board, the
Vice Chairperson of the Board, the Chairperson of each of the Standing Committees and
two at-large members selected by the Chairperson of the Board. The Vice Chairperson
of each of the three Standing Committees shall serve as the designated Alternate, in the
absence or inability to serve by any Chairperson. In the absence or inability of any
designated member of the Steering Committee to serve, his/her city/agency appointed
Alternate Director may not serve in that member's absence.
The Committee shall conduct an annual performance evaluation of the
General Manager and submit recommendations on his/her compensation to the Board of
Directors. The Committee shall also review the General Manager's evaluation and
compensation of the executive management employees, based on established criteria,
and executive management's goals and objectives for the following year.
The Committee shall also conduct an annual performance evaluation of
General Counsel and submit recommendations to the Board of Directors as provided by
Resolution No. OCSD 12-03.
The Committee shall make recommendations to the Board of Directors on labor
negotiations and other related activities as may be needed or appropriate.
The Committee shall also be authorized to assign new subjects of significant
importance to the appropriate Standing Committee for study, evaluation and
recommendation.
The Steering Committee shall meet on the fourth Wednesday of each month at
5:00 p.m. preceding the Board's meeting, or at the call of the Chairperson of the Board of
Directors.
(b) Administration Committee: There shall be a permanent
Administration Committee (Finance&Administrative Services and Human Resources) to
advise the Staff and make recommendations on matters related to the financial,
budgeting, administrative and personnel policies and programs of the District.
The Committee shall review with the Staff the procedures for development,
preparation and format of the annual budget and recommend appropriate change, and
counsel the Staff during the budget process to assure the proper interpretation and
implementation of the Board's policies and that the desired procedures have been
followed.
The responsibility for consideration and adoption of the District budget rests with
the Board of Directors.
OCSD 18-12-7
The Committee shall periodically interview and recommend the selection of outside
auditors. The Committee shall review the result of the annual audit of the District's
accounts with representatives of the outside audit firm, including any comments received
recommending improvements. The Committee shall review management's response to
these comments and make appropriate recommendations for implementation.
Periodically, the Committee shall recommend employment of an outside firm to
audit internal control procedures to safeguard the assets of the District.
The Committee shall interview and make recommendations on the employment of
investment-banking firms, bond counsel and, if necessary or desired, financial advisors,
to be used in connection with the District's financing programs.
The Committee shall periodically coordinate recommendations on personnel
audits of the District's operations or segments of the operations on an as-needed basis.
The Committee shall make recommendations on personnel policies and
procedures, insurers and coverage, procurement procedures and such other related
activities as may be needed or appropriate.
The Chairperson of the Board of Directors shall appoint a Committee Chairperson
and a Committee Vice Chairperson for the Administration Committee. The Committee
Chairperson and Committee Vice Chairperson shall serve at the pleasure of the
Chairperson of the Board of Directors.
The Administration Committee shall consist of thirteen members, as follows:
(1) The Chairperson of the Board of Directors;
(2) The Vice Chairperson of the Board of Directors;
(3) The Committee Chair of the Administration Committee;
(4) The Committee Vice Chair of the Administration Committee; and
(5) Nine additional Board members appointed by the Chairperson of the Board of
Directors.
Other than the Board Chairperson and the Board Vice Chairperson, no Director
who serves on the Operations Committee shall be eligible to serve on the Administration
Committee. In the absence of the Board Chairperson, his or her alternate Director may
attend meetings of the Administration Committee.
The Administration Committee shall meet on the second Wednesday of each
month at 5:00 p.m., or at the call of its Chairperson.
OCSD 18-12-8
(c) Operations Committee: There shall be a permanent
Committee designated the Operations Committee (Engineering, Operations &
Maintenance and Environmental Services). With the goal of compliance with all public
health and environmental laws and regulations, the Operations Committee shall review
and submit appropriate recommendations on the matters pertaining to the operation of
the District Treatment Works, including such matters as current and projected service/flow
needs, level and quality of treatment, conservation, recycling and reuse activities and air
quality issues.
The Committee shall also review issues pertaining to the District's NPDES Ocean
Outfall Discharge Permit, including annual review of the contractor(s) performing the
ocean monitoring and research programs required as a condition of said permit, and
related issues regarding protection of the marine waters off metropolitan Orange County's
coastline from impacts resulting from the District's operations and discharge of treated
wastewater.
The Committee shall also review matters pertaining to contractual arrangements
by the District to provide sewerage services to areas outside the District's boundaries or
approved spheres of influence.
The Committee shall review plans for the future needs of the District, explore
alternatives and make recommendations to the Board of Directors.
The Operations Committee shall also review and submit appropriate
recommendations on matters pertaining to capital projects which address operational
needs, including the selection of professional consulting services to assist in studying,
planning and designing needed District Treatment Works and support facilities, including
computerized systems, in accordance with the Board's established policies and
procedures for procuring such services; the Committee shall further review construction
projects for said facilities in accordance with applicable public works laws and Board
policies. Said oversight shall include the contracts for professional services and public
works construction projects and addenda or change orders thereto. In carrying out its
responsibilities, the Committee shall receive advance notice and regular status reports
on the projects from Staff, and monitor, visit and observe the District Treatment Works'
operational functions and major capital construction projects.
The Chairperson of the Board of Directors shall appoint a Committee Chairperson
and a Committee Vice Chairperson of the Operations Committee. The Committee
Chairperson and Committee Vice Chairperson shall serve at the pleasure of the
Chairperson of the Board of Directors.
The Operations Committee shall consist of fourteen members, as follows:
(1) The Chairperson of the Board of Directors;
(2) The Vice Chairperson of the Board of Directors;
OCSD 18-12-9
(3) The Committee Chair of the Operations Committee;
(4) The Committee Vice Chair of the Operations Committee; and
(5) Ten (10) additional Board members appointed by the Chairperson of the Board
of Directors.
Other than the Board Chairperson and the Board Vice Chairperson, no Director
who serves on the Administration Committee shall be eligible to serve on the Operations
Committee. In the absence of the Board Vice-Chairperson, his or her Alternate Director
may attend meetings of the Operations Committee.
The Operations Committee shall meet on the first Wednesday of each month at
5:00 p.m., or at the call of its Chairperson.
(d) Legislative and Public Affairs Committee: There shall be a permanent
Committee designated as the Legislative and Public Affairs (LaPA) Committee.
The Committee shall review issues pertaining to the impact on OCSD of legislative
and regulatory proposals and submit appropriate recommendations on the matters.
The Committee shall also be responsible for overseeing the contractual
arrangements with the Sanitation District's legislative advocates to provide advocacy
services in Sacramento and Washington, D.C. In carrying out its responsibilities, the
Committee shall receive regular status reports from the advocates and staff and monitor
and recommend positions on legislative and regulatory proposals.
The Committee shall also review issues pertaining to the District's public outreach,
branding, and communications activities, evaluate alternatives and make
recommendations to the Board of Directors.
The Chairperson of the Board of Directors shall appoint a Committee
Chairperson and a Committee Vice Chairperson to the LaPA committee. The
Committee Chairperson and Vice Chairperson shall serve at the pleasure of the
Chairperson of the Board of Directors.
The LaPA Committee shall consist of seven members, as follows:
(1) The Chairperson of the Board of Directors
(2) The Vice Chairperson of the Board of Directors
(3) The Committee Chairperson of the LaPA Committee
(4) The Committee Vice Chairperson of the LaPA committee
OCSD 18-12-10
(5) Three (3) additional Board Members appointed by the Chairperson of the
Board of Directors
The LaPA Committee shall meet on the second Monday of each month at 12:00
p.m. or at the call of its Chairperson."
(2) Special and Ad Hoc Committees. In addition to the Standing
Committees, the Chairperson of the Board of Directors, the Chairperson of a Standing
Committee or a majority of the Directors, may appoint from time to time, Special or Ad
Hoc Committees to study and report on specific matters. Such Committees shall be
temporary in nature, and their assignments shall pertain to a current, specific issue. Upon
completion of the assigned task, the Ad Hoc or Special Committee will be dissolved.
The Chairperson and Vice Chairperson of Special and Ad Hoc Committees shall
be appointed by the Chairperson of the appointing authority.
Each Special and Ad Hoc Committee shall meet at the call of its Chairperson.
M. Alternate Directors: If a regular Director cannot attend a meeting of the
Operations Committee, the Administration Committee or the full Board of Directors, the
Director's alternate may attend in place of his or her regular Director. An alternate
Director may not, however, attend a meeting of any other Committee in the absence of
his or her regular Director. If the regular Director and the Alternate Director are both
unable to attend the meeting, the regular Director may request that the meeting be
teleconferenced. The request may be approved, at the Board Chairperson's discretion,
provided that all requirements of the Ralph M. Brown Act (California Government Code
Sections 54950 at seq.) are able to be satisfied.
N. Motion to Refer to a Standing Committee. Any Director at a Board meeting
may move to have a policy or any other activity affecting the Sanitation District, or any
one of the member Agencies, referred to a Standing Committee for study and report. This
motion shall be a privileged motion, and when duly seconded, discussion thereof shall be
limited to Directors only. Said motion shall receive an affirmative vote of a majority of the
Directors for adoption.
Section 2: Procedure for Consideration of Demands for Corrective Action.
A. Requirement of Written Demand. Prior to any person commencing ajudicial
action for injunction or mandamus to declare any action taken by the Board void because
of failure to observe Brown Act requirements, such person must first serve upon the Clerk
of the Board a written demand describing the alleged violation and demanding Corrective
action. Such demand must be served upon the Clerk of the Board within thirty (30) days
of the complained of action. Failure to serve any such demand within this thirty (30) day
period shall result in the loss of any right to challenge any action to have been taken in
violation of Sections 54953, 54954.2 or 54956 of the California Government Code.
OCSD 18-12-11
B. Consideration of Corrective Action. Upon receipt of such a demand,
consideration of the demand shall immediately be placed on the Agenda for the next
meeting of the Board of Directors. If the demand is received less than seventy-two (72)
hours prior to the time set for the next meeting, the Board may determine that the notice
constitutes the initiation of litigation, and that the need to take action on the threatened
litigation arose subsequent to the posting of the Agenda and may consider it at that
meeting pursuant to Section 1(J) above. A description of any item so placed on the
Agenda shall include both consideration of the demand, and the possibility of corrective
action, by the Board.
In considering such demands, the Board shall first determine, by motion,
whether corrective action should be taken. If no motion to take corrective action is carried,
the Clerk of the Board shall inform the demanding party in writing of the Board's decision
not to cure or correct the challenged action.
C. Implementing Corrective Action. If a motion to take corrective action
passes, the Chairperson may entertain a motion implementing corrective action. Any
motion implementing corrective action shall address the concerns raised in the
consideration of corrective action. The motion implementing corrective action may
include a motion to rescind prior action taken, as appropriate. Passage of a motion to
rescind invalidates prior action only as of the time of the passage of the motion, and not
from the date of the initial action. A motion implementing corrective action resulting from
a written demand is out-of-order if the action complained of(a)was in connection with the
sale or issuance of notes, bonds or other evidences of indebtedness, or any contract,
agreement or incident thereto; or (b) gave rise to a contractual obligation upon which a
party has, in good faith, detrimentally relied. In any event, the Board shall notify the party
making the demand in writing of its decision to take corrective action and shall describe
any corrective action taken. This notice shall be given to the demanding party as soon
as possible after the meeting, but in no event more than thirty (30) days after receipt of
the demand.
Section 3: Resolution No. OCSD 17-18 is hereby repealed.
Section 4: This Resolution shall become effective immediately.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
July 25, 2018.
egory ebourn, PLS
Board Chairman
OCSD 18-12-12
ATTEST:
Key . Lo M
Clerk tth oard
APPROVED AS TO FORM:
Bpffdley R. ogin
General Counsel
OCSD 18-12-13
STATE OF CALIFORNIA )
} ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District,
do hereby certify that the foregoing Resolution No. OCSD 18-12 was passed and adopted
at a regular meeting of said Board on the 25t' day of July 2018, by the following vote, to
wit:
AYES: Barnes; Bernstein; Berry (Alternate); Blazey
(Alternate); Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker;
Peotter; Peterson; Sebourn; Shawver; F. Smith;
T. Smith; Steel; and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero; Wanks; and Withers
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 25th day of July 2018.
44"a'4"—
Kell A. r , MMC
CI k of tV Board of Directors
Orange County Sanitation District
0CS0 18-12-14
TABLE 1
BOARD PROCEDURES AND ORGANIZATION
SUMMARY OF MOTIONS
A. PRIVILEGED MOTIONS
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Adjourn Yes No No Majority To end the
meeting
To Take a Yes No No Majority To interrupt a
Recess meeting for a
short time or to
provide an
intermission
Raise a No No No None To obtain action
Question of immediately in an
Privilege emergency
B. MAIN MOTION AND RELATED
SUBSIDIARY MOTIONS
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Main Yes Yes Yes Majority To introduce new
Motion business
Amend Yes Yes Yes Majority To modify or alter a
Main motion
Motion
Substitute Yes Yes Yes Majority To replace the main
Motion motion entirely
OCSD 18-12-15
Previous Yes No No Majority To close debate on
Question the main or
amended motion
immediately
Continue to Yes Yes Yes Majority To defer action
a Certain
Time
To Table Yes No No Majority To discontinue
consideration until
brought back by vote
of the Board
Take a Yes No No Majority To bring before the
Motion group a motion
from the previously tabled
Table
Limit or Yes No Yes Majority To limit or extend
Extend limits of debate
Limits of
Debate
Refer to a Yes Yes Yes Majority To place business in
Committee hands of a
Committee
Withdraw a No No No None To withdraw a
Motion motion before it is
voted on
Reconsider Yes Yes No Majority To secure a new
must be vote on a motion
by a previously voted
Director upon
who voted
forthe
prevailing
side on
the
original
motion
OCSD 18-12-16
C. INCIDENTAL RULES
NON-RANKING
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Request to Yes No No Two- To facilitate business
Suspend Thirds ordinarily contrary to
the Rules the rules of the
organization
Override Yes No No Majority To have Board
Order of majority rule on the
the Chair order
Point of No No No None To enforce the rules
Order of the organization
I
CCSD 18-12-17
ITEM NO. 3
Orange County Sanitation District
MINUTES
BOARD MEETING
November 28, 2018
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Administration Building
10844 Ellis Avenue
Fountain Valley, California 92708-7018
11/28/2018 Minutes of Board Meeting Page 1 of 15
ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District was
called to order by Board Chairman Greg Seboum on November 28, 2018, at 6:02 p.m., in
the Administration Building. Director Bernstein 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 Gregory Sebourn, Chair Jesus Silva
X Denise Barnes Lucille Kring
X Allan Bernstein Chuck Puckett
X Robert Collacott Robbie Pitts
X Ellery Deaton Sandra Massa-Lavitt
X James M. Ferryman Bob Ooten
X Phil Hawkins Brooke Jones
X Steven Jones Kris Beard
X Peter Kim Marshall Goodman
X Charlie Nguyen Al Krippner
X Richard Murphy Warren Kusumoto
X Steve Nagel Cheryl Brothers
X Glenn Parker Cecilia Hupp
X Scott Peotter Brad Avery
X Erik Peterson Mike Posey
A Tim Shaw (excused) Michael Blazey
X David Shawver Carol Warren
A Fred Smith Virginia Vaughn
X Teresa Smith Mark Murphy
X Michelle Steel Shawn Nelson
A Sal Tinajero David Benavides
X Donald Wagner Lynn Schott
X Chad Wanks Ward Smith
A John Withers Douglas Reinhart
X Mariellen Yarc Stacy Berry
STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Rob Thompson,
Assistant General Manager; Lorenzo Tyner, Assistant General Manager; Celia Chandler,
Directorof Human Resources; Jim Colston, Director of Environmental Services; Ed Torres,
Director of Operations & Maintenance; Kelly Lore, Clerk of the Board; Janine Aguilar;
Emilio Ariston; Bob Bell; Jennifer Cabral; Mike Dorman; Alfredo Garcia; Tina Knapp;
Rebecca Long, Laura Maravilla; Kathy Miles; Jeff Mohr; Andrew Nau; Adam Nazaroff;
Ddaze Phuong; and Tyler Ramirez.
11/28/2018 Minutes of Board Meeting Page 2 of 15
OTHERS PRESENT: Brad Hogin (General Counsel); Alternate Director Bob Ooten
(CMSD); Kevin Alexander, Hazen; and Amy Omae, HDR.
PUBLIC COMMENTS:
None.
SPECIAL PRESENTATIONS:
• Employee Service Awards
Director of Operations and Maintenance Ed Torres presented a 30-year employee
service award to Power Plant Operator II Emilio Ariston.
• Board Member Recognition
Board Chair Sebourn recognized outgoing Board and Alternate Board Members. He
stated that several of the terms overlapped with organizational milestones that
included:
o Transferring 174 miles of local sewer in the City of Tustin to the East Orange
County Water District
o Completion of GWRS initial expansion
o Completion of Full Secondary Treatment
o Successfully sponsored legislation to bottle GWRS waterfor educational purposes
and District Act Legislation to amend OCSD's charter enabling legislation to
exchange seats to the Yorba Linda Water District
o Prudent financial decisions to maintain its AAA bond rating, eliminate OCSD's
unfunded actuarial accrued pension liability (UAAL) effectively saving OCSD and
its ratepayers millions in future payments, and taking on no new debt while
maintaining over$10 billion of regional assets
Chair Sebourn first recognized the service of those not in attendance:
Alternate Director Shawn Nelson (OC Supervisor) January 2010 - December 2018
Alternate Director David Benavides(City of Santa Ana)January 2007-December 2018
Alternate Director Kris Beard (City of Garden Grove) February 2012 - December 2018
Chair Sebourn called upon Director Teresa Smith (City of Orange) and presented her
a Commendation of Appreciation for her service as a member the Board of Directors
and Administration Committee from January 2013 - December 2018.
Director Smith stated she was grateful for having been able to serve on this Board and
thanked her colleagues and OCSD staff.
Chair Sebourn thanked all for their service, leadership, and dedication and wished
them the best of luck.
11/28/2018 Minutes of Board Meeting Page 3 of 15
REPORTS:
Chair Sebourn acknowledged that Director Tim Shaw is attending the Orange County
Business Council Red Carpet Award ceremony tonight in hopes that OCSD receives an
award for our Interim Food Waste Facility.
Chair Sebourn stated that as tonight is his last official meeting as Chairman, if there are
Committee appointment requests, please send them directly to Board Vice-Chair
Shawver.
General Manager Herberg stated that we will continue with additional Board Member
commendations next month, including a Special Recognition for our outgoing Board
Chairman.
Mr. Herberg also reported on the Coastal Area Odor Committee which is a partnership of
private and public entities that periodically meets to share information related to odor
events along the northern Orange County coastline. He went on to say that OCSD hosted
a meeting and tour for the group today.
Mr. Herberg stated that Fitch Ratings and Moody's Investor Service reaffirmed OCSD's
AAA rating based on its management practices and financial strength; and that on
November 17, the Office of Inspector General released a report regarding the EPA's
Biosolids Management Rule and identified additional pollutants that may require more
stringent regulation. Director of Environmental Services Jim Colston provided a brief
update on this matter.
General Counsel Brad Hogin briefly summarized the rules of procedure regarding a
mid-term vacancy of the Board Chairman, the succession of the Board Vice-Chair, and
the nominations and elections of a new Board Vice-Chair at the next Board meeting.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the
Regular Meeting of the Board of Directors held on October 24, 2018.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
11/28/2018 Minutes of Board Meeting Page 4 of 15
2. PROPOSED BOARD OF DIRECTORS & COMMITTEE MEETING DATES FOR
CALENDAR YEAR 2019 (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the calendar of
meeting dates for the 2019 calendar year for meetings of the Board of Directors
and the following Committees: Administration, Legislative and Public Affairs,
Operations, and Steering.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the
Board Chair.
3. COMMITTEE MINUTES (Clerk of the Board)
Received and filed the approved minutes of the following committees:
A. Steering Committee Meeting of September 26, 2018
B. Operations Committee Meeting of October 3, 2018
C. Legislative and Public Affairs Meeting of October 8, 2018
D. Audit Ad Hoc Committee Minutes October 10, 2018
E. Administration Committee Meeting of October 10, 2018
F. Headquarters Complex Ad Hoc Committee Meeting of October 17, 2018
G. GWRS Joint Steering Committee Meeting of July 9, 2018
4. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
OCTOBER 2018 (Lorenzo Tyner)
Received and filed the report of the Investment Transactions for the month of
October 2018.
OPERATIONS COMMITTEE:
5. CATERPILLAR, MODEL X0570 TRAILER MOUNTED MOBILE DIESEL
GENERATOR (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Purchase Order contract to Quinn Power Systems for the
purchase of a Caterpillar, Model XQ570 Trailer Mounted Mobile Diesel 500
kW Generator, (Tier4 Final Engine), using the Sourcewell (formerly National
Joint Powers Alliance) Cooperative Contract Number #120617-CAT with
11/28/2018 Minutes of Board Meeting Page 5 of 15
Caterpillar, for an amount not to exceed $299,920, in accordance with
Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases; and
B. Approve a contingency of$14,996 (5%).
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
6. CITY OF SEAL BEACH ADOLFO LOPEZ PUMP STATION ODOR CONTROL
FACILITY (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a Site Access and
License Agreement with the City of Seal Beach to construct an odor control
chemical dosing station for the injection of chemicals into the Knott Interceptor at
1776 Adolfo Lopez Drive, in a form approved by General Counsel.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
7. SOUTHERN CALIFORNIA EDISON - AMENDMENT NO. 3 TO THE
AS-AVAILABLE CAPACITY AND ENERGY POWER PURCHASE AGREEMENT
(Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
Approve Amendment No. 3 to the As-Available Capacity and Energy Power
Purchase Agreement with Southern California Edison Company, to allow the
Orange County Sanitation District to receive monthly sale statements from
Southern California Edison Company through the electronic mail system.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; R. Murphy; Nagel; Nguyen; Parker; Peotter; Peterson;
Sebourn; Shawver; T. Smith; Wagner; Wanks; and Yarc
NOES: None
ABSTENTIONS: Kim (Financial conflict)
ABSENT: Shaw; F. Smith; Steel (Non-participant - Levine Act
Disclosure); Tinajero; and Withers
11/28/2018 Minutes of Board Meeting Page 6 of 15
8. CLIMATE RESILIENCY STUDY - PROJECT NO. SP-152 (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a budget increase of $288,000 for the Climate Resiliency Study,
Project No. SP-152, for a total budget of$878,000;
B. Approve a Professional Services Agreement with Hazen and Sawyer to
provide engineering services for the Climate Resiliency Study, Project No.
SP-152, for an amount not to exceed $697,952; and
C. Approve a contingency of$69,795 (10%).
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
9. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Capital
Improvement Program Contract Performance Report for the period ending
September 30, 2018.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
10. SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Receive and file Bid Tabulation and Recommendation for Tharsos, Inc. for
Safety Improvements Program: Roof Fall Protection and Walkway Hazards
at Plant Nos. 1 and 2, and Safety Improvements at SARI Metering Station,
College Avenue, Lido, Main Street, 'A' Street, 1511 Street, Rocky Point and
Crystal Cove Pump Stations, Contract No. J-126PQ;
B. Award a Construction Contract to Tharsos, Inc. for the Safety Improvements
Program: Roof Fall Protection and Walkway Hazards at Plant Nos. 1 and 2,
and Safety Improvements at SARI Metering Station, College Avenue, Lido,
Main Street, 'A' Street, 151" Street, Rocky Point and Crystal Cove Pump
11/28/2018 Minutes of Board Meeting Page 7 of 15
Stations, Contract No. J-126PQ, for a total amount not to exceed $786,000;
and
C. Approve a contingency of$78,600 (10%).
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
11. CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT
NO. 2, PROJECT NO. P2-110 (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase
of $836,500 (5%) to the construction contract with Flatiron West, Inc. for
Consolidated Demolition and Utility Improvements at Plant No. 2, Project No. P2-
110, for a total contingency of$2,174,900 (13%).
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
12. TRUCK LOADING BAY ODOR CONTROL AT PLANT NO. 2, CONTRACT
NO. P2-92A (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase
of $132,160 (4%) to the construction contract with Kiewit Infrastructure West Co.
for Truck Loading Bay Odor Control at Plant No. 2, Contract No. P2-92A, for a total
construction contingency of$462,560 (14%).
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
11/28/2018 Minutes of Board Meeting Page 8 of 15
13. AGREEMENT FOR THE PURCHASE OF LIQUID CATIONIC POLYMER
CHEMICAL (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Sole Source Chemical Supplier Agreement to SNF Polydyne,
Inc., for the purchase of Liquid Cationic Polymer, for the period beginning
February 1, 2019 through January 31, 2020 for a unit price of $2.782 per
active pound delivered for Solution Polymer (WE-192) including freight plus
applicable sales tax, and $2.552 per active pound delivered for Mannich
Polymer (C-331) including freight plus applicable sales tax, and $2.947 per
active pound delivered for Emulsion Polymer (WE-1328) including freight
plus applicable sales tax, and $2.947 per active pound delivered for
Emulsion Polymer (WE-1233; full liquid) including freight plus applicable
sales tax, and $3.265 per active pound delivered for Emulsion Polymer(WE-
1233; <40k lb.) including freight plus applicable sales tax, for total estimated
annual amount of$608,000;
B. Authorize General Manager to negotiate and subsequently approve new unit
prices with an estimated additional amount of $2,302,000 with SNF
Polydyne, Inc. for new cationic polymers that will be developed based on
cationic polymer specifications for the new centrifuges for the period
February 1, 2019 through January 31,2020, not to exceed amount estimated
$2,910,000; and
C. Approve an annual unit price contingency of 10% for item B.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
ADMINISTRATION COMMITTEE:
14. MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT
ENTERPRISE SOFTWARE LICENSES (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Authorize a Purchase Order for a three-year contract to purchase Microsoft
Enterprise licenses under the Microsoft ELA in accordance with Microsoft
Volume Enterprise Enrollment—for State and Local government, Riverside
County Master Licensing Agreement 01 E73970, payable annually and with
a contract expiration date of December 31, 2021, for a total amount not to
exceed $1,335,952; and
B. Approve a contingency of$200,393 (15%).
11/28/2018 Minutes of Board Meeting Page 9 of 15
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
15. GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE
PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Receive and file Orange County Sanitation District purchases made under
the General Manager's authority for the period of July 1, 2018 to September
30, 2018; and
B. Approve the following additions to the pre-approved OEM Sole Source List
for the period of July 1, 2018 to September 30, 2018:
• EVOQUA WATER TECHNOLOGIES - Evoqua DI Water System
Service
• INTERNATIONAL SOCIETY OF AUTOMATION (ISA) - On-site
Instrumentation Technician Training
• POLYCHEM SYSTEMS— Gearboxes
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
16. CONTRACTED INTERNAL AUDITS TO REVIEW ORANGE COUNTY
SANITATION DISTRICT'S PROCUREMENT CARD PROGRAM
(Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the October 1,
2018 agreed-upon procedures review of the Orange County Sanitation District's
Procard program for fiscal years 2015-2016 and 2016-2017 performed by the White
Nelson Diehl Evans, Certified Public Accountants.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
11 28 2018 Minutes of Board Meeting Page 10 of 15
17. ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR) FOR THE YEAR END JUNE 30, 2018.
(Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
Receive and file the Orange County Sanitation District's Comprehensive Annual
Financial Report for the year ended June 30, 2018, prepared by staff and audited
by Macias Gini & O'Connell LLP (MGO), Certified Public Accountants, along with
the following reports prepared by MGO:
A. Report to the Board of Directors; and
B. Independent Accountants' Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
18. CONSOLIDATED FINANCIAL REPORT FOR FIRST QUARTER ENDED
SEPTEMBER 30, 2018 (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the Orange
County Sanitation District First Quarter Financial Report for the period ended
September 30, 2018.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
LEGISLATIVE & PUBLIC AFFAIRS COMMITTEE:
19. LEGISLATIVE CONSULTANTS (Jim Herberg)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Professional Services Agreement with Townsend Public Affairs,
Inc.for State Legislative Services, Specification No. CS-2018-97013D,for the
period of January 1, 2019 through December 31, 2021 at a monthly rate of
$6,000 per month and not to exceed $72,000 per year, with (2) one-year
renewal options.
11/28/2018 Minutes of Board Meeting Page 11 of 15
B. Approve a Professional Services Agreement with ENS Resources for
Federal Legislative Services, Specification No. CS-2018-971BD, for the
period of January 1, 2019 through December 31, 2021 at a monthly rate of
$7,700 per month and not to exceed $92,400 per year, with (2) one-year
renewal options.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
STEERING COMMITTEE:
20. NEW POLICY REGARDING THE DISPOSITION OF EXTERNAL SIGNAGE ON
ORANGE COUNTY SANITATION DISTRICT PROPERTY
(Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD
18-19 entitled: "A Resolution of The Board of Directors of Orange County
Sanitation District Adopting The "Sign Removal Policy".
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
21. REVISED POLICY REGARDING BOARD OF DIRECTORS' EXPENSE
REIMBURSEMENT, MEETING ATTENDANCE AND COMPENSATION
(Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD
18-20 entitled: "A Resolution of the Board of Directors of the Orange County
Sanitation District Adopting a Revised Policy Regarding Board of Directors'
Expense Reimbursement, Meeting Attendance and Compensation; and Repealing
Resolution No. OCSD 15-06."
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
11 i2812018 Minutes of Board Meeting Page 12 of 15
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
22. LABOR RELATIONS— CONTRACT NEGOTIATIONS (Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO: Authorize/Direct the Steering
Committee to form an Ad Hoc Committee for the purpose of interviewing and
selecting an external Chief Negotiator for the upcoming contract negotiations with
all six (6) bargaining units at the Orange County Sanitation District.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
A committee of Director Kim, Director Wagner, and Vice-Chairman Shawver were
approved by the Steering Committee.
23. POSITION CHANGE FOR FY 2018-19 AND 2019-20 (Celia Chandler)
MOVED, SECONDED, AND DULY CARRIED TO: Approve a position change,
from Director of Finance & Administrative Services (EM25) to Director of
Engineering (EM27), to streamline the management structure, while maintaining
the Board-approved 636 FTE positions for FY 2018-19 and 2019-20.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
24. STRATEGIC PLAN UPDATE (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve the Strategic Plan 2018-2019 Update; and
B. Direct staff to implement the goals and levels of service contained in the
Plan.
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel; Wagner;Wanke;
and Yarc
11/28/2018 Minutes of Board Meeting Page 13 of 15
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
NON-CONSENT:
None.
AB 1234 DISCLOSURE REPORTS:
Director Ferryman reported on his recent attendance at the Santa Ana River Flood Control
Protection committee meeting and a recent meeting with Kevin Hardy (NWRI) & General
Manager Herberg.
CLOSED SESSION:
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
54956.9(d)(2):
The Board convened in closed session at 6:27 p.m. to discuss one item. Confidential
minutes of the Closed Session have been prepared in accordance with the above
Government Code Section and are maintained by the Clerk of the Board in the Official
Book of Confidential Minutes of Board and Committee Closed Session Meetings.
RECONVENED IN REGULAR SESSION:
The Board reconvened in regular session at 6:35 p.m.
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel Brad Hogin reported that the Board of Directors unanimously voted to
deny the claim of Richard Spencer by the following vote:
AYES: Barnes; Bernstein; Collacott; Deaton; Ferryman; Hawkins;
Jones; Kim; R. Murphy; Nagel; Nguyen; Parker; Peotter;
Peterson; Sebourn; Shawver; T. Smith; Steel;Wagner;Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Shaw; F. Smith; Tinajero; and Withers
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
Director Peterson thanked Public Affairs Supervisor Jennifer Cabral and her staff for
monthly outreach efforts at the Southeast Meetings in the City of Huntington Beach.
11/28/2018 Minutes of Board Meeting Page 14 of 15
Director Wagner also thanked Jennifer Cabral for attending the reception for outgoing
Council Members at the City of Irvine. The Board Chairman thanked her as well for filling
in for him at the last minute.
Board Vice-Chair Shawver announced that due to the changes in Board makeup, if any
members have committee or leadership interests to let him know. He thanked Chair
Sebourn stating it has been a pleasure to serve with him; that in his opinion, he is one of
the best to have as Chairman served in the 18 years he has been on the Board; and that
he will have a tough time replacing him.
Chair Sebourn stated that he will have a more formal statement next month, but said that
he never envisioned becoming an elected official and Mayor of his city; or being a member
of this Board, let alone the Chairman; and that he is humbled and grateful for being able
to work with this Board and staff for the last six years.
ADJOURNMENT:
At 6:39 p.m., Chair Sebourn adjourned the meeting until the Regular Meeting of the Board
of Directors to be held on December 19, 2018 at 6:00 p.m.
Submitted by:
Kelly A. Lore, MMC
Clerk of the Board
11/28/2018 Minutes of Board Meeting Page 15 of 15
BOARD OF DIRECTORS Meeting Date TO12/1Bd.Of9/18 Dir.
--
AGENDA REPORT ItemNumber IemNumber
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT: RESOLUTION NO. OCSD 18-21 COMMENDING BOARD CHAIRMAN
GREGORY SEBOURN
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 18-21, entitled: "A Resolution of the Board of Directors of
the Orange County Sanitation District commending Gregory C. Sebourn for his
outstanding contributions and dedication to public service as Chairman of the Orange
County Sanitation District's Board of Directors".
BACKGROUND
The Orange County Sanitation District (Sanitation District) wishes to acknowledge Board
Chair Greg Seboum (City of Fullerton)for his many contributions to the Sanitation District
during his tenure as Chairman of the Board of Directors.
The resolution is a formal commendation recognizing Greg Sebourn's term as Chairman
of the Board, the different positions he held, and the accomplishments to which he
contributed while on the Board.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ATTACHMENT
The following affachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(wwwocsd.conn with the complete agenda package:
• Resolution No. OCSD 18-21
Page 1 of 1
RESOLUTION NO. OCSD 18-21
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE ORANGE COUNTY SANITATION DISTRICT
COMMENDING GREGORY C. SEBOURN FOR HIS
CONTRIBUTIONS AND DEDICATION TO PUBLIC
SERVICE AS CHAIRMAN OF THE ORANGE COUNTY
SANITATION DISTRICT'S BOARD OF DIRECTORS
WHEREAS, Gregory C. Seboum is completing his tenure as Chairman of the
Orange County Sanitation District (OCSD) Board of Directors, having served from
November 2016 through December 2018; and
WHEREAS, he has provided leadership and vision to the OCSD Administration
Committee, Steering Committee, Legislative and Public Affairs Committee, Operations
Committee, Groundwater Replenishment System Joint Steering Committee,
Headquarters Complex Ad Hoc Committee and OCSD/Santa Ana Watershed Project
Authority Joint Policy Committee; and
WHEREAS, with his leadership and guidance, secured first time ever support of
National Pollutant Discharge Elimination System (NPDES) permit term extension
legislation by congressional delegation member Representative Alan Lowenthal, leading
to preparations for bill introduction; and
WHEREAS, in November 2016, OCSD and Orange County Water District(OCWD)
committed to the Groundwater Replenishment System Final Expansion, a project that will
increase capacity ultimately producing 130 million gallons per day of purified water,
enough water to meet the needs of one million people; and
WHEREAS, with his leadership, OCSD received $1.325 million grant through the
U.S. Bureau of Reclamation. The grant will be used for the final expansion of the
Groundwater Replenishment System Effluent Reuse Project (P2-122); and
WHEREAS, under his leadership OCSD and OCWD co-sponsored AB 2022
(Gordon) which allows for the bottling of advanced purified drinking water to support
educational outreach efforts. With the passing of AB 2022, OCSD and OCWD have taken
the bottled water on the road attending community events, celebrations and conferences
allowing community members, for the first time ever, to taste test the ultra-purified
wastewater; and
OCSD 18-21-1
WHEREAS, Greg Sebourn guided the Board of Directors on prudent financial
decisions leading to OCSD maintaining its AAA bond rating, eliminating OCSD's
unfunded actuarial accrued pension liability (UAAL), effectively saving OCSD and its
ratepayers millions in future payments and taking on no new debt while maintaining over
$10 billion of regional assets; and
WHEREAS, in January 2018, the GWRS reached it's 10-year Anniversary setting
a Guinness World RecordsTM title for the most wastewater recycled to drinking water in
24 hours; and
WHEREAS, Greg Seboum has demonstrated his determination, vision and
leadership to OCSD and its ratepayers through the commitment of his time, professional
dignity, and devotion to the residents and businesses of Orange County.
NOW, THEREFORE, the Board of Directors of the Orange County Sanitation
District DOES HEREBY RESOLVE:
That the Directors and staff of the Orange County Sanitation District express to
Greg Seboum their sincere appreciation for his outstanding public service to the citizens
of Orange County, and his meritorious efforts on behalf of OCSD and its mission of
protecting public health and the environment by providing effective wastewater collection,
treatment, and recycling.
PASSED AND ADOPTED by unanimous acclamation at the regular meeting of
said Board held on December 19, 2018.
David John Shawver James D. Herberg
Board Chairman General Manager
Kelly A. Lore, MMC
Clerk of the Board
OCSD 18-21-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-21 was passed and
adopted at a regular meeting of said Board on the 1911 day of December 2018, 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 191h day of December 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 18-21-3
BOARD OF DIRECTORS Meeting Date TO12/1Bd.Of9/18 Dir.
--
AGENDA REPORT ItemNumber IemNumber
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: James E. Colston, Director of Environmental Services
SUBJECT: NO-COST EXTENSION FOR FISH TRACKING STUDY SOLE SOURCE
CONTRACT WITH DR. CHRISTOPHER LOWE — CALIFORNIA STATE
UNIVERSITY LONG BEACH
GENERAL MANAGER'S RECOMMENDATION
Approve Amendment No. 2 to Sole Source Contract Fish Tracking Study, for a contract
extension to Dr. Christopher Lowe of the California State University Long Beach for the
period November 1, 2018 through June 30, 2019 at no additional cost, for a total contract
cost not to exceed $214,058.
BACKGROUND
In July 2016, the Orange County Sanitation District's (Sanitation District) Board of
Directors approved a sole source contract with Dr. Christopher Lowe of the California
State University Long Beach to conduct a fish tracking study in support of the Sanitation
District's National Pollution Discharge Elimination System (NPDES) ocean discharge
permit. The contract period was July 1, 2016 through June 30, 2018 for an amount not
to exceed $200,000. Due to field sampling issues that required additional time, the
contract was extended through October 31, 2018 and an additional $14,058 was added
to the contract.
RELEVANT STANDARDS
• Comply with environmental permit requirements
• Maintain collaborative and cooperative relationships with regulators, stakeholders,
and neighboring communities
PROBLEM
There were delays in getting sensor data back from the manufacturer that stalled the data
analysis part of the project and prolonged invoicing by Dr. Lowe. This has lengthened
the duration of the project, but has not increased the total cost.
PROPOSED SOLUTION
Extend the contract from November 1, 2018 through June 30, 2019 with no additional
funding in order to facilitate the completion of the project and invoicing to the existing
project budget.
Page 1 d 2
TIMING CONCERNS
N/A
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District will not receive a complete project report, which is intended to be
used to inform potential changes in the Ocean Monitoring Program.
PRIOR COMMITTEE/BOARD ACTIONS
July 2018 - Ratified and approved a contract extension to Dr. Christopher Lowe of the
California State University Long Beach for the period July 1, 2018 through
October 31, 2018 at a cost not to exceed $14,058 for a total contract cost not to exceed
$214,058.
July 2016 - Awarded a Sole Source Contract to Dr. Christopher Lowe of the California
State University Long Beach to conduct a fish tracking study in support of the Sanitation
District's NPDES Ocean Discharge Permit for the period August 1, 2016 through
June 30, 2018, at a project cost not to exceed $200,000.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. Sufficient funds have been allocated in the Fiscal Year 2018-2019
Laboratory, Monitoring, and Compliance Operating Budget. Project contingency funds
will not be used for this contract.
Date of Approval Contract Amount Contingency
07/27/2016 $200,000 N/A
07/25/2018 $ 14,058 N/A
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
Amendment No. 2
Page 2 d 2
AMENDMENT NO. 2
To SOLE SOURCE CONTRACT
FISH TRACKING STUDY
THIS AMENDMENT TO THE CONTRACT is made and entered into, to be effective this December
19, 2018, by and between Orange County Sanitation District hereinafter referred to as "OCSD" and
California State University Long Beach Research Foundation, a non-profit corporation under the laws of
State of California, in the county of Los Angeles, (hereinafter referred to as "CSULBRF') collectively
referred to as the"Parties".
WHEREAS, OCSD and CSULBRF executed, delivered and entered into the Contract between
OCSD and CSULBRF, the effective date of which is September 20, 2016 ('the Contract"); and
WHEREAS, the Parties wish to amend the Contract to make certain modifications which shall be
called Amendment No. 2 ("Amendment'); and
WHEREAS, on December 19, 2018, the Board of Directors of OCSD, by minute order, authorized
execution of this Amendment between OCSD and CSULBRF; and
WHEREAS, the Parties desire that the Contract, as modified by Amendment No. 1 on July 25,
2018 and this Amendment No. 2 shall constitute the sole and entire Contract among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants contained
herein, the Parties agree to amend the Contract to:
1. Extend the period of performance through June 30, 2019 to complete the study per request
submitted by CSULBRF dated November 27, 2018, identified as Exhibit "B-1," attached hereto and made
a part hereof. This is a no-cost time extension.
Except as expressly amended above, the Contract will remain unchanged and in full force
and effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Amendment No. 2 to be signed by the duly authorized representatives as of the day and year last signed
below.
Orange County Sanitation District California State University Long Beach
Research Foundation
By:
Contracts, Purchasing and Date Date
Materials Management Manager
Name:
David John Shawver Date
Board Chairman
Title:
Clerk of the Board Date
12/13/18
Amendment No. 2 FISH TRACKING STUDY
032018
BOARD OF DIRECTORS Meeting Date TO12/1Bd.Of9/18 Dir.
--
AGENDA REPORT Item Item
fi
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: James E. Colston, Director of Environmental Services
SUBJECT: PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEES
GENERAL MANAGER'S RECOMMENDATION
Approve payment of$577,091 for annual NPDES (ocean discharge) permit fees.
BACKGROUND
The Orange County Sanitation District (Sanitation District) is required to pay annual
permit fees pursuant to Sections 13260 & 13269 of the California Water Code.
RELEVANT STANDARDS
• Comply with California Water Code Sections 13260 & 13269
• Comply with environmental permit requirements
• Maintain collaborative and cooperative relationships with regulator, stakeholders,
and neighboring communities
PROBLEM
N/A
PROPOSED SOLUTION
N/A
TIMING CONCERNS
The Sanitation District is subject to late fees if not paid by December 27, 2018.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District is subject to penalties under provision of the Water Code Section
13261 if not paid. These actions could include daily penalties in addition to the fee or
other actions deemed appropriate by the Regional Board.
PRIOR COMMITTEE/BOARD ACTIONS
This fee is invoiced and paid annually per approval by the Sanitation District's Board.
Page 1 d 2
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted. (Line item: Section 6, Page 48, Operating
Expense, Other).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (Amw.ocsd.coml with the
complete agenda package:
N/A
Page 2 d 2
ITEM NO. 7
MINUTES OF THE
STEERING COMMITTEE
Orange County Sanitation District
Wednesday, October 24, 2018 at 5:00 p.m.
A regular meeting of the Steering Committee of the Orange County Sanitation
District was called to order by Board Chairman Greg Sebourn on Wednesday,
October 24, 2018 at 5:01 p.m. in the Administration Building of the Orange County
Sanitation District.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Greg Sebourn, Board Chair Jim Herberg, General Manager
David Shawver, Board Vice-Chair Rob Thompson, Assistant General
Peter Kim, La PA Committee Chair Manager
Chad Wanke, Administration Committee Lorenzo Tyner, Assistant General
Chair Manager
John Withers, Operations Committee Celia Chandler, Director of Human
Chair Resources
Ellery Deaton, Member-At-Large Jim Colston, Director of Environmental
Services
COMMITTEE MEMBERS ABSENT: Kelly Lore, Clerk of the Board
Donald Wagner, Member-At-Large Jennifer Cabral
Megan Carlson
Mike Dorman
Al Garcia
Lori Karaguezian
Mark Manzo
Gerry Matthews
Kathy Millea
Adam Nazaroff
Ddaze Phuong
OTHERS PRESENT:
Brad Hogin, General Counsel
Al Krippner, Alternate Director MCSD
PUBLIC COMMENTS:
No public comments were provided.
REPORTS:
Chair Sebourn did not provide a report.
10/24/2018 Steering Committee Minutes Page 1 of 3
General Manager Herberg announced that an anonymous letter, addressed to the
Board of Directors regarding OCSD's rebate program, was distributed by the Clerk of
the Board as late communication. He stated that he also provided a response letter
with information and background regarding the governing ordinances, explained how
customers can apply for rebates, and how third party companies also offer to submit
rebate claims on behalf of the property owners. Mr. Herberg stated that OCSD is not
affiliated in any way with the third-party companies.
After a brief discussion, the Committee agreed that a notification should be mailed to
the commercial businesses to remind them of the options available to apply for a
rebate; and reach out to other business networks such as: OC Business Council,
Association of Realtors, and the Apartment Owners Association to provide this
information.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
Clerk of the Board Kelly Lore stated a correction to the minutes.
MOVED. SECONDED, AND DULY CARRIED TO: Approve Minutes of the
Regular Meeting of the Steering Committee held on September 26, 2018 as
corrected.
AYES: Deaton, Kim, Sebourn, Wanke and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Shawver and Wagner
Vice-Chair Shawver arrived at the meeting at 5:12 p.m.
INFORMATION ITEMS:
2. STRATEGIC PLAN UPDATE (Rob Thompson)
Assistant General Manager Rob Thompson presented the Strategic Plan
Update focusing on the completed strategic goals in the previous five-year
plan. With the bulk of the prior plan completed, he stated that staff is proposing
a new process which will follow a two-year development cycle in support of the
two-year budgeting process.
Mr. Thompson presented the proposed goals and initiatives for the 2018
Strategic Plan Update to include: Environmental Stewardship, Organizational
Effectiveness, Operational Optimization, and Sustainabity. He then responded
to questions regarding the two-year process, effect on bond rating, and
interface with the General Manager's workplan.
1012412018 Steering Committee Minutes Page 2 of 3
Mr. Thompson will present the final Strategic Plan Update to the Board of
Directors for approval in November.
CLOSED SESSION
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTION 54956.9(d)(2):
The Board convened in closed session at 5:24 p.m. to discuss one item. Confidential
minutes of the Closed Session have been prepared in accordance with the above
Government Code Section and are maintained by the Clerk of the Board in the Official
Book of Confidential Minutes of Board and Committee Closed Session Meetings.
RECONVENED IN REGULAR SESSION:
The Board reconvened in regular session at 5:29 p m.
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel Brad Hogin did not provide a report.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
None.
ADJOURNMENT:
Chair Sebourn declared the meeting adjourned at 5:30 p.m. to the next Steering
Committee meeting to be held on Wednesday, November 28, 2018 at 5:00 p.m.
Submi ed by:
;
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Cler of the and
10/24/2018 Steering Committee Minutes Page 3 of 3
MINUTES OF THE
LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE
Orange County Sanitation District
Monday, November 5, 2018 at 12:00 p.m.
A meeting of the Legislative and Public Affairs Committee was called to order by
Committee Chair Peter Kim on Monday, November 5, 2018 at 12:01 p.m. in the
Administration Building of the Orange County Sanitation District. Committee Chair Kim
led the pledge of allegiance.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Peter Kim, Chair Jim Herberg, General Manager
Allan Bernstein, Vice-Chair Rob Thompson, Assistant General Manager
John Withers, Member-At-Large Lorenzo Tyner, Assistant General Manager
David Shawver, Board Vice-Chair Celia Chandler, Director of Human Resources
Donald P. Wagner, Member-At-Large Jim Colston, Director of Environmental Services
Ed Torres, Director of Operations &
COMMITTEE MEMBERS ABSENT: Maintenance
Chad Wanke, Member-At-Large Tina Knapp, Deputy Clerk of the Board
Greg Sebourn, Board Chair Jennifer Cabral
Tanya Chong
Daisy Covarrubias
Marc Dubois
Alfredo Garcia
Rebecca Long
Jennifer Martin
Kelly Newell
Thomas Vu
OTHERS PRESENT:
Brad Hogin, General Counsel
Eric Sapirstein, ENS Resources (via
teleconference)
Eric O'Donnell, Townsend Public Affairs (TPA)
Cori Williams, Townsend Public Affairs (TPA)
Ms. Jessica Gauger, Director of Legislative
Advocacy, CASA
PUBLIC COMMENTS:
None.
11/05/2019 Legislative and Public Affairs committee Minutes Page 1 of 4
REPORT OF COMMITTEE CHAIR:
Committee Chair Kim did not provide a report, but advised that the agenda will be
reordered today so that the Information Items will follow the Consent Calendar.
Committee Chair Kim thanked staff for the State of the District event.
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg indicated that staff will bring a list of District
memberships to the Committee in December which will include potential membership
opportunities and current memberships. Jim Colston, Director of Environmental
Services, will provide an update on the Integrated Watershed Management Program
that OCSD is a part of next month as agencies in Orange County have been looking
at the way the funding is distributed and exploring the possibility of establishing a
separate program.
CONSENT CALENDAR:
�. APPROVAL OF MINUTES (Clerk of the Board)
MOVED. SECONDED. and DULY CARRIED TO: Approve minutes for the
Committee meeting held on October 8, 2018.
AYES: Bernstein, Kim, Shawver, Wagner, and Withers
NOES: None
ABSTENTIONS: None
ABSENT: Sebourn and Wanke
The Committee Chair reordered the agenda so that the Information Items were
reordered to follow the Consent Calendar.
INFORMATION ITEMS:
3, CALIFORNIA ASSOCIATION OF SANITATION AGENCIES (CASA)
(Jennifer Cabral)
Jennifer Cabral, Public Affairs Supervisor, introduced this item, provided a brief
background of the item, and introduced Jennifer Gauger, Director of Legislative
Advocacy, from the California Association of Sanitation Agencies (CASA).
Ms. Gauger introduced herself and provided a PowerPoint presentation that
gave an overview of CASA's legislative priorities in 2018 which included
microplastics, Accessory Dwelling Units (ADU) fees, septic to sewer
conversions, biomethane procurement, and other legislation of interest. Ms.
Gauger's presentation also reviewed Federal priority issues which included the
WRDA package, 10-year permit terms legislation, regulatory reform proposals,
11/052018 Legislative and Public Affairs Committee Minutes Page 2 of
and low-income water rate assistance proposals. Ms. Gauger also previewed
legislative priorities for 2019 and reviewed the potential impacts of the mid-term
elections. Ms. Gauger thanked OCSD for its participation and representation in
CASA. Ms. Gauger also reviewed CASA staff and contact information.
4. LEGISLATIVE AFFAIRS UPDATE (Rebecca Long)
Committee Chair Kim introduced Eric Sapirstein, ENS Resources, who updated
the Committee on the following items: Water Resources Development Act
(WRDA) was signed into law on October 23 and provides authorization for
investment in harbor, waterway, flood protection, and other water infrastructure
improvements including the WaterSense program and streamlining of funding
programs. Mr. Sapirstein also provided an overview of the status of the EPA
budget. Mr. Sapirstein also reported that language was recently introduced
regarding low income water rate assistance.
Eric O'Donnell, TPA, provided a PowerPoint presentation that reviewed the
2018 legislative session and successes of 2018, a preview of 2019 priorities,
and an update on the potential legislative concepts (below) for OCSD led
legislation.
Bill Concept 1 —Bid advertising requirements
Bill Concept 2—Job Order Contracting
Bill Concept 3—Video surveillance
Bill Concept 4— Raising the contracYbid threshold
5. DRAFT 2019 LEGISLATIVE/REGULATORY PLAN (Jennifer Cabral)
Mr. O'Donnell continued his PowerPoint presentation with a review of the State
2019 legislative plan including how it was developed and suggested
amendments. Mr. Sapirstein commented that the Federal draft legislative plan
was developed to build on current efforts and to focus on streamlining permit
timelines.
6. PUBLIC AFFAIRS UPDATE (Jennifer Cabral)
Ms. Cabral reviewed outreach efforts made over the last month and provided
information on State of the District attendance and thanked the Directors for
their attendance. Ms. Cabral also reported on a recent media interview.
NON-CONSENT:
2. LEGISLATIVE CONSULTANTS (Jennifer Cabral)
Board Vice-Chair Shawver recused himself from this item due to a Levine Act
conflict and departed the meeting (1:00 p.m.). Ms. Cabral provided brief
background information on this item. Committee Chair Kim made an alternate
recommendation for this item as indicated below.
1 VOW018 Legislative and Public Affairs Committee Minutes Page 3 of 4
MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
�iGP-
A. Approve a Professional Services Agreement with Townsend Public
Affairs, Inc. for State Legislative Services, Specification No.
CS-2018-9706D, for the period of January 1, 2019 through December
31, 2021 at a monthly rate of $6,000 per month and not to exceed
$72,000 per year, with (2) one-year renewal options.
B. Approve a Professional Services Agreement with ENS Resources for
Federal Legislative Services, Specification No. CS-2018-971 BD, for the
period of January 1, 2019 through December 31, 2021 at a monthly rate
of $7,700 per month and not to exceed $92,400 per year, with (2)
one-year renewal options.
AYES: Bernstein, Kim, Wagner, and Withers
NOES: None
ABSTENTIONS: None
Seboum, Shaviver(non-participant— Levine Act
ABSENT: Disclosure), and Wanke
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY:
ADJOURNMENT:
Committee Chair Kim declared the meeting adjourned at 1:06 p.m. to the next
Legislative and Public Affairs Committee meeting, Monday, December 10, 2018 at
12:00 p.m.
Submitted by:
r vw ^%r-vl ' vp--
Tina Knapp, CMC
Deputy Clerk of the Board
11/05IH018 Legislative and Public Affairs Committee Minutes Page 4 of
MINUTES OF THE
OPERATIONS COMMITTEE
Orange County Sanitation District
Wednesday, November 7, 2018, 5:00 p.m.
A regular meeting of the Operations Committee was called to order by Board
Vice-Chairman Shawver on Wednesday, November 7, 2018 at 5:04 p.m. in the
Administration Building. Director Robert Collacott led the Flag Salute.
A quorum was declared present, as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
John Withers, Chair Jim Herberg, General Manager
Ellery Deaton, Vice-Chair Rob Thompson, Assistant General Manager
Denise Barnes Lorenzo Tyner, Assistant General Manager
Allan Bernstein Celia Chandler, Director of Human Resources
Robert Collacott Jim Colston, Director of Environmental Services
Scott Peotter Kelly Lore, Clerk of the Board
Tim Shaw Gilbert Barela
Fred Smith Bob Bell
Michelle Steel Jeff Brown
Mariellen Yarc Raul Cuellar
Greg Sebourn, Board Chair Don Cutler
David Shawver, Board Vice-Chair Mike Dorman
Damein Frabizio
COMMITTEE MEMBERS ABSENT: Dean Fisher
Phil Hawkins Alfredo Garcia
Steve Jones Rebecca Long
Kathy Millea
Jeff Mohr
Riaz Moinuddin
Adam Nazaroff
Nasrin Nasrollahi
Victoria Pilko
Tyler Ramirez
Eros Yong
OTHERS PRESENT:
Brad Hogin, General Counsel
Bob Ooten, Alternate Director (CMSD)
PUBLIC COMMENTS:
None.
REPORT OF COMMITTEE CHAIR:
Chair Withers did not provide a report.
11/07/20M Operations Committee Min Wes Page i of 7
REPORT OF GENERAL MANAGER:
General Manager Jim Herberg announced that OCSD Administrative offices will be
closed on Monday, November 12 in observance of Veterans Day and November 22 -23
for the Thanksgiving holiday.
Director of Environmental Services Jim Colston provided an update on The OC Plan for
Integrated Regional Water Management and stated that the Orange County Sanitation
District, the Orange County Water District, and the County of Orange are preparing to
submit a grant application to the State Department of Water Resources to seek a fair
share of State of California Proposition 1 grant funds.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED SECONDED. and DULY CARRIED TO: Approve Minutes of the
October 3, 2018 Operations Committee Meeting.
AYES: Barnes, Bernstein, Collaoott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
2. CATERPILLAR, MODEL X0570 TRAILER MOUNTED MOBILE DIESEL
GENERATOR (Ed Torres)
MOVED SECONDED. and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Purchase Order contract to Quinn Power Systems for the
purchase of a Caterpillar, Model XQ570 Trailer Mounted Mobile Diesel 500
kW Generator, (Tier-4 Final Engine), using the Sourcewell (formerly
National Joint Powers Alliance) Cooperative Contract Number #120617-
CAT with Caterpillar,for an amount not to exceed $299,920, in accordance
with Ordinance No. OCSD-52, Section 2.03(B), Cooperative Purchases;
and
B. Approve a contingency of$14,996 (5%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Seboum,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/072018 Opeiagons Co fflee Wutes Page 2 of 7
3. PUMP STATIONS CRITICAL BREAKER PROCUREMENT, PROJECT NO.
MP-603 (Ed Torres)
MOVED SECONDED and DULY CARRIED TO:
A. Approve a Purchase Order contract to Advanced Electrical and Motor
Controls for the purchase of critical circuit breakers (quantity of 21), for ten
(10) Pump Stations per Specification No. E-2018-981, for a total amount not
to exceed $103,567; and
B. Approve a contingency of$3,106 (3%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
4. CITY OF SEAL BEACH ADOLFO LOPEZ PUMP STATION ODOR CONTROL
FACILITY (Ed Torres)
MOVED SECONDED and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a Site Access and License Agreement with the City of Seal
Beach to construct an odor control chemical dosing station for the injection of
chemicals into the Knott Interceptor at 1776 Adolfo Lopez Drive, in a form
approved by General Counsel.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
5. SOUTHERN CALIFORNIA EDISON - AMENDMENT NO. 3 TO THE
AS-AVAILABLE CAPACITY AND ENERGY POWER PURCHASE AGREEMENT
(Ed Torres)
MOVED SECONDED and DULY CARRIED TO: Recommend to the Board of
Directors to:
Approve Amendment No. 3 to the As-Available Capacity and Energy Power
Purchase Agreement with Southern California Edison Company, to allow the
Orange County Sanitation District to receive monthly sale statements from
Southern California Edison Company through the electronic mail system.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shawver, F. Smith, Withers, and Yarc
NOES: None
ABSTENTIONS: None
11/07/2018 Operations Committee Minutes Page 3 of 7
ABSENT: Hawkins, S. Jones, Shaw (Non-participant Levine Act
Disclosure), and Steel (Non-participant Levine Act
Disclosure)
Item pulled and heard separately.
6. CLIMATE RESILIENCY STUDY - PROJECT NO. SP-152 (Rob Thompson)
MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a budget increase of $288,000 for the Climate Resiliency Study,
Project No. SP-152, for a total budget of$878,000;
B. Approve a Professional Services Agreement with Hazen and Sawyer to
provide engineering services for the Climate Resiliency Study, Project No.
SP-152, for an amount not to exceed $697,952; and
C. Approve a contingency of$69,795 (10%).
AYES: Barnes, Bernstein, Collacott, Deaton, Sebourn, Shaw,
Shawver, F. Smith, Steel, Withers, and Yarc
NOES: Peotter
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
7. QUARTERLY ODOR COMPLAINT REPORT (Ed Torres)
MOVED. SECONDED. and DULY CARRIED TO: Receive and file the Fiscal Year
2018/19 First Quarter Odor Complaint Summary.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
8. CAPITAL IMPROVEMENT PROGRAM CONTRACT PERFORMANCE REPORT
(Rob Thompson)
MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file the Capital Improvement Program Contract
Performance Report for the period ending September 30, 2018.
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/07/2018 Operations Committee Minutes Page 4 of 7
9. SAFETY IMPROVEMENTS PROGRAM, PROJECT NO. J-126
(Rob Thompson)
MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Receive and file Bid Tabulation and Recommendation for Tharsos, Inc. for
Safety Improvements Program: Roof Fall Protection and Walkway Hazards
at Plant Nos. 1 and 2, and Safety Improvements at SARI Metering Station,
College Avenue, Lido, Main Street, 'A' Street, 151h Street, Rocky Point and
Crystal Cove Pump Stations, Contract No. J-126PQ;
B. Award a Construction Contractto Tharsos, Inc. forthe Safety Improvements
Program: Roof Fall Protection and Walkway Hazards at Plant Nos. 1 and
2, and Safety Improvements at SARI Metering Station, College Avenue,
Lido, Main Street, 'A' Street, 1511 Street, Rocky Point and Crystal Cove
Pump Stations, Contract No. J-126PQ, for a total amount not to exceed
$786,000; and
C. Approve a contingency of$78,600 (10%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
NON-CONSENT:
10. CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT
NO. 2, PROJECT NO. P2-110 (Rob Thompson)
Engineering Manager Dean Fisher provided an informative PowerPoint
presentation regarding the unknown conditions and construction challenges of the
project requiring the contingency increase.
MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a contingency increase of$836,500 (5%)to the construction
contract with Flatiron West, Inc. for Consolidated Demolition and Utility
Improvements at Plant No. 2, Project No. P2-110, for a total contingency of
$2,174,900 (13%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
11/07/2018 Operations CommMee Minutes Page 5 of 7
11. TRUCK LOADING BAY ODOR CONTROL AT PLANT NO. 2, CONTRACT
NO. P2-92A (Rob Thompson)
Engineering Manager Dean Fisher provided a PowerPoint presentation which
described the project objectives and construction challenges. He stated that the
project is 81% complete.
MOVED SECONDED and DULY CARRIED TO: Recommend to the Board of
Directors to: Approve a contingency increase of$132,160(4%)to the construction
contract with Kiewit Infrastructure West Co.for Truck Loading Bay Odor Control at
Plant No. 2, Contract No. P2-92A, for a total construction contingency of$462,560
(14%).
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Seboum,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
12. AGREEMENT FOR THE PURCHASE OF LIQUID CATIONIC POLYMER
CHEMICAL (Ed Torres)
Assistant General Manager Rob Thompson provided a brief introduction to and
additional information regarding the requested agreement.
MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Approve a Sole Source Chemical Supplier Agreement to SNF Polydyne,
Inc., for the purchase of Liquid Cationic Polymer, for the period beginning
February 1, 2019 through January 31, 2020 for a unit price of $2.782 per
active pound delivered for Solution Polymer(WE-192) including freight plus
applicable sales tax, and $2.552 per active pound delivered for Mannich
Polymer (C-331) including freight plus applicable sales tax, and $2.947 per
active pound delivered for Emulsion Polymer (WE-1328) including freight
plus applicable sales tax, and $2.947 per active pound delivered for
Emulsion Polymer (WE-1233; full liquid) including freight plus applicable
sales tax, and $3.265 per active pound delivered for Emulsion Polymer
(WE-1233; <40k lb.) including freight plus applicable sales tax, for total
estimated annual amount of$608,000;
B. Authorize General Manager to negotiate and subsequently approve new
unit prices with an estimated additional amount of $2,302,000 with SNF
Polydyne, Inc. for new cationic polymers that will be developed based on
cationic polymer specifications for the new centrifuges for the period
February 1, 2019 through January 31, 2020, not to exceed amount
estimated $2,910,000; and
C. Approve an annual unit price contingency of 10%for item B.
11/07/2018 operations Committee Minutes Page 6 of 7
AYES: Barnes, Bernstein, Collacott, Deaton, Peotter, Sebourn,
Shaw, Shawver, F. Smith, Steel, Withers, and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Hawkins and S. Jones
INFORMATION ITEMS:
13. ORANGE COUNTY SANITATION DISTRICT RESEARCH PROGRAM
(Rob Thompson)
Mr. Thompson introduced Senior Engineer Jeff Brown who provided a PowerPoint
presentation regarding the District's Research program including: types of
research, participation with other organizations, notable successes, current
projects examples; iTAG group and research budgeting. Mr. Thompson and
Mr. Brown responded to questions from the Committee.
Director Steel departed the meeting at 5.41 p.m.
DEPARTMENT HEAD REPORTS:
None.
CLOSED SESSION:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
None.
ADJOURNMENT
Chair Withers declared the meeting adjourned at 5:52 p.m. to the next meeting of
Wednesday, December 5, 2018 at 5:00 p.m.
Submi ed by,
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Cler of he oard
11/07/2018 Operations Committee Minutes Page 7 of 7
MINUTES OF THE
ADMINISTRATION COMMITTEE
Orange County Sanitation District
Wednesday, November 14, 2018 at 5:00 P.M.
A regular meeting of the Administration Committee of the Orange County Sanitation
District was called to order by Board Chairman Sebourn on November 14, 2018 at
5:01 p.m. in the Administration Building of the Orange County Sanitation District. Director
Jim Ferryman led the Flag Salute.
A quorum was declared present as follows:
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Donald P. Wagner, Vice-Chairman Jim Herberg, General Manager
James Ferryman Rob Thompson, Assistant General Manager
Peter Kim Lorenzo Tyner, Assistant General Manager
Richard Murphy Celia Chandler, Director of Human Resources
Steve Nagel Ed Torres, Director of Operations & Maintenance
Charlie Nguyen Roya Sohanaki, Engineering Manager
Glenn Parker Tina Knapp, Deputy Clerk of the Board
Erik Peterson Gilbert Barela
Teresa Smith Jeff Brown
Greg Sebourn, Board Chairman Kim Cardenas
David Shawver, Board Vice-Chairman Rhea De Guzman
Damein Frabizio
COMMITTEE MEMBERS ABSENT: Al Garcia
Chad Wanke, Chairman Brad Hamilton
Sal Tinajero Lina Hsiao
Rebecca Long
Kathy Millea
Adam Nazaroff
Warren Sternin
John Swindler
Tyler Ramirez
OTHERS PRESENT:
Brad Hogin, General Counsel
Peter George, MGO
Stefannie Kodrat, MGO
PUBLIC COMMENTS:
None.
11/14/22018 Administration Committee Minutes Pagel of 6
REPORTS:
General Manager Jim Herberg provided an update on The OC Plan for Integrated
Regional Water Management and stated that the Orange County Sanitation District, the
Orange County Water District, and the County of Orange are preparing to submit a grant
application to the State Department of Water Resources to seek a fair share of State of
California Proposition 1 grant funds. Mr. Herberg also provided a brief background of the
establishment of this group.
Assistant General Manager Lorenzo Tyner did not provide a report.
CONSENT CALENDAR:
1. APPROVAL OF MINUTES (Clerk of the Board)
MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the
October 10, 2018 Administration Committee Meeting.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn and Shawver
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero, Wagner and Wanke
2.. UPGRADE OF TIMECARD SOFTWARE (WORKFORCE) (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Authorize a Purchase Order Contract to WorkForce Software for the
upgrade of WorkForce, for a total amount not to exceed $119,475; and
B. Approve a contingency of$23,895 (20%).
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn and Shawver
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero, Wagner and Wanke
3. MICROSOFT ENTERPRISE LICENSE AGREEMENT (ELA) FOR MICROSOFT
ENTERPRISE SOFTWARE LICENSES (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Authorize a Purchase Order for a three-year contract to purchase Microsoft
Enterprise licenses under the Microsoft ELA in accordance with Microsoft
Volume Enterprise Enrollment—for State and Local government, Riverside
County Master Licensing Agreement 01 E73970, payable annually and with
11114=18 Administmtion Committee Minutes Page 2 of
a contract expiration date of December 31, 2021, for a total amount not to
exceed $1,335,952; and
B. Approve a contingency of$200,393 (15%).
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn and Shawver
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero, Wagner and Wanks
4, GENERAL MANAGER APPROVED PURCHASES AND ADDITIONS TO THE
PRE-APPROVED OEM SOLE SOURCE LIST (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to:
A. Receive and file Orange County Sanitation District purchases made under
the General Manager's authority forthe period of July 1, 2018 to September
30, 2018; and
B. Approve the following additions to the pre-approved OEM Sole Source List
for the period of July 1, 2018 to September 30, 2018:
• EVOQUA WATER TECHNOLOGIES - Evoqua DI Water System
Service
• INTERNATIONAL SOCIETY OF AUTOMATION (ISA) - On-site
Instrumentation Technician Training
• POLYCHEM SYSTEMS — Gearboxes
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn and Shawver
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero, Wagner and Wanke
NON-CONSENT:
5. CONTRACTED INTERNAL AUDITS TO REVIEW ORANGE COUNTY
SANITATION DISTRICT'S PROCUREMENT CARD PROGRAM (Lorenzo Tyner)
Mr. Tyner introduced this item and provided background information on the audit
that was performed. Mr. Tyner also indicated that this item was reviewed by the
Audit Ad Hoc Committee on October 10, 2018.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file the October 1, 2018 agreed-upon procedures review
of the Orange County Sanitation District's Procard program for fiscal years 2015-
11/142018 Administration Committee Minutes Page 3 of 6
2016 and 2016-2017 performed by the White Nelson Diehl Evans, Certified Public
Accountants.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn and Shawver
NOES: None
ABSTENTIONS: None
ABSENT: T. Smith, Tinajero, Wagner and Wanks
6. ORANGE COUNTY SANITATION DISTRICT COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR) FOR THE YEAR END JUNE 30, 2018
(Lorenzo Tyner)
Mr. Tyner introduced this item and provided brief background information on the
item. Mr. Tyner introduced Lina Hsiao, Accounting Supervisor, who provided an
informative PowerPoint presentation that included an overview of the CAFR;
financial measurements used; components of the net position increase; review of
the change in net position over the last five years; components of the cash and
investments increase and decrease; a two-year comparison and comparison of
budget to actual for the year ended June 30, 2018 for collection, treatment, and
disposal costs; and a review of the auditor's report.
Committee Vice-Chairman Wagner arrived at the meeting at 5:08 p.m.
Director Teresa Smith arrived at the meeting at 5:21 p.m.
Mr. Tyner commented on the two-year comparison for collection, treatment, and
disposal costs and introduced Peter George, auditor from MGO. Mr. George gave
a PowerPoint presentation that included a review of the auditor's responsibilities,
deliverables, and a recap of the auditor's communication with this Committee.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn, Shawver, T. Smith and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wanke
MOVED, SECONDED. AND DULY CARRIED TO: Recommend to the Board of
Directors to:
Receive and file the Orange County Sanitation District's Comprehensive Annual
Financial Report for the year ended June 30, 2018, prepared by staff and audited
by Macias Gini & O'Connell LLP (MGO), Certified Public Accountants, along with
the following reports prepared by MGO:
A. Report to the Board of Directors; and
B. Independent Accountants' Report on Agreed-Upon Procedures Applied to
Appropriations Limit Worksheets.
11/14/2018 Administration Committee Minutes Page 4 of 6
Committee Vice-Chairman Wagner presided over the meeting beginning at 5:32 p.m.
7. CONSOLIDATED FINANCIAL REPORT FOR FIRST QUARTER ENDED
SEPTEMBER 30, 2018 (Lorenzo Tyner)
Mr. Tyner introduced this item and indicated staff was available to answer
questions from the Committee.
MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of
Directors to: Receive and file the Orange County Sanitation District First Quarter
Financial Report for the period ended September 30, 2018.
AYES: Ferryman, Kim, Murphy, Nagel, Nguyen, Parker, Peterson,
Sebourn, Shawver, T. Smith and Wagner
NOES: None
ABSTENTIONS: None
ABSENT: Tinajero and Wanks
INFORMATION ITEMS:
8. ORANGE COUNTY SANITATION DISTRICT RESEARCH PROGRAM
(Rob Thompson)
Assistant General Manager Rob Thompson introduced Senior Engineer Jeff
Brown who provided a PowerPoint presentation regarding the District's Research
program including: types of research, participation with other organizations, future
needs, notable successes, current projects examples, an overview of the
International Technology Approval Group (TAG), and research budgeting.
CLOSED SESSION:
None.
DEPARTMENT HEAD REPORTS:
None.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
None.
1 1/1 42 01 8 Administration Committee Minutes Page 5 of 5
ADJOURNMENT:
Committee Vice-Chairman Wagner declared the meeting adjourned at 5:54 p.m. to the
next regularly scheduled meeting of Wednesday. December 12, 2018 at 5:00 p.m.
Submitted by:
T(yF: P-t,,
Tina Knapp, CMC 1
Deputy Clerk of the Board
11I14aGla Administration Committee Minutes Page 6 of 6
MINUTES OF THE
HEADQUARTERS COMPLEX
AD HOC COMMITTEE
Orange County Sanitation District
Wednesday, November 14, 2018 at 2:30 p.m.
Board Vice-Chairman Dave Shawver Called to order the meeting of the Headquarters
Complex Ad Hoc Committee of the Orange County Sanitation District on November 14, 2018
at 2:33 p.m. in the Administration Building of the Orange County Sanitation District.
COMMITTEE MEMBERS PRESENT: STAFF PRESENT:
Greg Sebourn, Board Chair Jim Herberg, General Manager
David Shawver, Board Vice-Chair Rob Thompson, Assistant General Manager
Robert Collacott Lorenzo Tyner, Assistant General Manager
Steve Nagel Kelly Lore, Clerk of the Board
Scott Peotter Jennifer Cabral
John Withers Al Garcia
Kathy Millea
COMMITTEE MEMBERS ABSENT: Jeff Mohr
Ellery Deaton Tom Grant
OTHERS PRESENT:
Valerie DeLoach, HDR
Trip Grant, HDR
Jack Gundarlahalli, AECOM
Sam Hoelscher, Clark Construction Group
Ricardo Zendejas, Clark Construction Group
PUBLIC COMMENTS:
None.
NON-CONSENT CALENDAR:
1. TOUR OF EXISTING ADMINISTRATIVE FACILITIES AND NEW PROPERTY
(Rob Thompson)
Assistant General Manager Rob Thompson provided a walking tour of the existing
Administration Building including employee and storage areas in Engineering and
IT; and a driving tour of the existing Trailers, as well as the newly acquired property
across Ellis Avenue.
Board Chairman Seboum and Director Nagel arrived after the tour had begun. The Board
Chair presided beginning at Item No. 2.
11/162018 Headquarters Complex Ad Hoc Commdee Minutes Page 1 of 2
2. UPDATE ON THE HEADQUARTERS COMPLEX PROJECT NO. P7-128
(Rob Thompson)
Mr. Thompson introduced Engineering Manager Jeff Mohr who provided a
PowerPoint Presentation regarding construction cost comparisons, where OCSD's
proposed design falls about average at$550 per square foot,with the top being $655
and the low being $412.
Mr. Thompson provided a PowerPoint on Concept Design Development including
various schemes and site plans. Mr. Thompson explained the discussion and
considerations leading up to the layouts provided.
The Committee provided the following direction to staff:
1. Include a constructability review earlier than at the currently determined 90%
design phase.
2. Consider hiring a third-party Construction Management fine to oversee the
project; provide a project organization chart with those on the team.
3. Bring back for review new Boardroom concepts including a permanent or
semi-permanent dais; concepts should focus on security as well as the
technology needs of meeting management.
A meeting date in December was suggested but will be called at a date to be
determined.
ADJOURNMENT:
Chair Sebourn adjourned the meeting at 4:28 p.m.
N
d by:
Kelly . L C
Cler ofth oard
11/14/2018 Headquarters Complex Ad Hoc Committee Minutes Page 1 of 2
BOARD OF DIRECTORS Meeting Date Te12/1ed.Or9/18 Dir.
--
AGENDA REPORT ItemNumber IemNumber
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
NOVEMBER 2018
GENERAL MANAGER'S RECOMMENDATION
Receive and file the report of the Investment Transactions for the month of
November 2018.
BACKGROUND
The CA Government Code requires that a monthly report of investment transactions be
provided to the legislative body. Attached is the monthly report of investment transactions
for the month ended November 30, 2018.
RELEVANT STANDARDS
• CA Government Code Section 53607
PRIOR COMMITTEE/BOARD ACTIONS
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(mm w.ocsd.coml with the complete agenda package:
• Report of the Investment Transactions for the month ended November 30, 2018
Page 1 of 1
U.S. Bank
Transaction History
11101/2018Thru 1 113 0/2 01 8
Entry Date CUSIP Id Explanation Units Price Net Cash Arnt Cost Gain/Loss
ACQUISITIONS
11/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,000,000.0000 1.000000 -1,000,000.00 1,000,000.00 0.00
11/01/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 28,525.0000 1.000000 -28,525.00 28,525.00 0.00
11/02/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 26,553.6900 1.000000 -26,553.69 26,553.69 0.00
11/02/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 24,923.82001.000000 -24,923.82 24,923.82 0.00
11/05/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 59,929.38001.000000 -59,929.38 59,929.38 0.00
11/07/2018 89233HP65 PURCHASED PAR VALUE OF TOYOTA MOTOR CREDIT CO C P 2106/19/DBTC 1,500,000.0000 0.993554 -1,490,331.25 1,490,331.25 0.00
AMERICAS/COMMERCIAL PAPER/1,500,000 PAR VALUE AT 99.35541667%
11/07/2018 912828V56 PURCHASED PAR VALUE OF U S TREASURY NT 1.125% 1/31/19/NOMURA 3,000,000.0000 0.997109 -2,991,328.13 2,991,328.13 0.00
SECURITIES INTERNATIONA13,000,000 PAR VALUE AT 99.71093767%
11/07/2018 31846V567 PURCHASED UNITS OF FIRSTAM GOVTOB FD CLZ 4,212,531.25001.000000 -4,212,531.25 4,212,531.25 0.00
11/08/2018 65478GAD2 PURCHASED PAR VALUE OF NISSAN AUTO 1.750%10/15/21 /INTL FCSTONE 2,625,000.0000 0.984492 -2,584,291.99 2,584,291.99 0.00
FINL INC./BD RATE/2,625,000 PAR VALUE AT 98.44921867%
11/13/2018 166764AH3 PURCHASED PAR VALUE OF CHEVRON CORP 3.191% 6/24/23/MLPFS 3,500,000.0000 0.983170 -3,441,095.00 3,441,095.00 0.00
INC/FIXED INCOME/3,500,000 PAR VALUE AT 98.317%
11/13/2018 313384BF5 PURCHASED PAR VALUE OF F H L B DISC NTS 1/30/19/GOLDMAN SACHS 8 2,500,000.0000 0.994973 -2,487,433.33 2,487,433.33 0.00
CO.LLC/2,500,000 PAR VALUE AT 99.4973332%
11/13/2018 313384BF5 PURCHASED PAR VALUE OF F H L B DISC NTS 1/30/19[WELLS FARGO 512,000.0000 0.994952 -509,415.25 509,415.25 0.00
SECURITIES,LLC/512,000 PAR VALUE AT 99.49516602%
11/13/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 2,950,000.0000 1.000000 -2,950,000.00 2,950,000.00 0.00
11/15/2018 69371RN36 PURCHASED PAR VALUE OF PACCAR FINANCIAL MTN 1.200% 8/12/19/PERSHING 1,083,000.0000 0.987520 -1,069,484.16 1,069,484.16 0.00
LLC/1,083,000 PAR VALUE AT 98.752%
11/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 701,027.8200 1.000000 -701,027.82 701,027.82 0.00
11/15/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 520,077.32001.000000 -520,077.32 520,077.32 0.00
11/16/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 216,900.91001.000000 -216,900.91 216,900.91 0.00
11/19/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 274,943.0200 1.000000 -274,943.02 274,943.02 0.00
11/19/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 74,875.0000 1.000000 -74,875.00 74,875.00 0.00
11/20/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 60,062.21001.000000 -60,062.21 60,062.21 0.00
11/21/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 9,759.58001.000000 -9,759.58 9,759.58 0.00
11/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 37,990.6100 1.000000 -37,990.61 37,990.61 0.00
11/26/2018 31846V567 PURCHASED UNITS OF FIRST AM GOUT OB FD CL Z 3,188.25001.000000 -3,188.25 3,188.25 0.00
11/27/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 17,528.89001.000000 -17,528.89 17,528.89 0.00
11/27/2018 31846V567 PURCHASED UNITS OF FIRST AM GOVT OB FD CL Z 1,000,000.00001.000000 -1,000,000.00 1,000,000.00 0.00
1 of 8
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost GainlLoss
11/29/2018 02665WCQ2 PURCHASED PAR VALUE OF AMERICAN HONDA MTN 3.625%10/10/23/MLPFS 1,000,000.0000 0.999140 -999,140.00 999,140.00 0.00
INC/FIXED INCOME11,000,000 PAR VALUE AT 99.914%
11/30/2018 313383YJ4 PURCHASED PAR VALUE OF F H L B DEB 3.375% 9/08/23/PERSHING 1,475,000.0000 1.016620 -1,499,514.50 1,499,514.50 0.00
LLC/1,475,000 PAR VALUE AT 101.662%
11/30/2018 24422EUM9 PURCHASED PAR VALUE OF JOHN DEERE MTN 3.650%10/12/23/MERRILL 1,250,000.0000 1.000190 -1,250,237.50 1,250,237.50 0.00
LYNCH,PIERCE,FENNER 8/1,250,000 PAR VALUE AT 100.019%
TOTAL ACQUISITIONS 29,663,816.7500 9W -29,541,087.86 29,541,087.86 0.00
DISPOSITIONS
11/01/2018 96121T6G8 MATURED PAR VALUE OF WESTPAC EKING C D 2.060% 11/01/181,000,000 PAR -1,000,000.00001.000000 1,000,000.00 -998,65Z01 1,342.99
VALUE AT 100%
11/07/2018 313385N51 MATURED PAR VALUE OF F H L B DISC NTS 11/07/183,000,000 PAR VALUE AT -3,000,000.0000 1.000000 2,998,751.67 -2,998,751.67 0.00
100%
11/07/2018 74005PBH6 MATURED PAR VALUE OF PRAXAIR INC 1.250%11/07/18 1,205,000 PAR VALUE -1,205,000.0000 1.000000 1,205,000.00 -1,198,513.80 6,486.20
AT 100%
11/07/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -4,490,738.8600 1.000000 4,490,738.86 -4,490,738.86 0.00
11/08/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CIE Z -2,587,226.8900 1.000000 2,587,226.89 -2,587,226.89 0.00
11/13/2018 06371ERK5 MATURED PAR VALUE OF BANK OF MONTREAL C D 1.750%11/131182,950,000 PAR -2,950,000.0000 1.000000 2,950,000.00 -2,941,422.57 8,577.43
VALUE AT 100%
11/13/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,940,491.2900 1.000000 2,940,491.29 -2.940,491.29 0.00
11/13/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -3,412,158.4400 1.009000 3,412,158.44 -3,412,158.44 0.00
11/15/2018 31348SWZ3 PAID DOWN PAR VALUE OF F H L M C#786064 3.427% 1/01/28 OCTOBER FHLMC -17.3200 0.000000 17.32 -16.90 0.42
DUE 11/15/18
11/15/2018 3133TCE95 PAID DOWN PAR VALUE OF F H L M C MLTCL MTG 3.587% 8/15/32 -728.3000 0.000000 728.30 -729.06 -0.76
11/15/2018 43814QAC2 PAID DOWN PAR VALUE OF HONDA AUTO 1.390% 4/15120 -89,342.2300 0.000000 89,342.23 -89,340.50 1.73
11/15/2018 47788MAC4 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.360% 4115/20 -151,000.5000 0.000000 151,000.50 -150,976.73 23.77
11/15/2018 47787XAB3 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.500%10/15/19 CMO FINAL -83,538.8400 0.000000 83,538.84 -83,538.51 0.33
PAYDOWN
11/15/2018 47788BABO PAID DOWN PAR VALUE OF JOHN DEERE OWNER 1.590% 4/15/20 -76,051.4600 0.000000 76,051.46 -76,044.85 6.61
11/15/2018 47788CAB8 PAID DOWN PAR VALUE OF JOHN DEERE OWNER 2.420%10/15/20 -57,306.33000.000000 57,306.33 -57,189.93 116.40
11/15/2018 65478VAD9 PAID DOWN PAR VALUE OF NISSAN AUTO 1.320% 1/15/21 -113,392.4200 0.000000 113,392.42 -112,484.40 908.02
11/15/2018 654747ABO PAID DOWN PAR VALUE OF NISSAN AUTO 1.470% 1/15/20 -96,082.0000 0.000000 96,082.00 -96,081.51 0.49
11/15/2018 65477UAD2 PAID DOWN PAR VALUE OF NISSAN AUTO 1.500% 9/15/21 -188,842.7200 0.000000 188,842.72 -187,662.45 1,180.27
11/15/2018 89238BA68 PAID DOWN PAR VALUE OF TOYOTA AUTO 2.100%10/15/20 A27,372.78000.000000 427,372.78 A27,329.10 43.68
20f8
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSP Id Explanation Units Price Net Cash Amt Cost GainlLoss
11/15/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,072,841.4600 1.000000 1,072,841A6 -1,072,841.46 0.00
11/19/2018 43814RACO PAID DOWN PARVALUE OF HONDA AUTO 1.210% 12/18/20 -188,201.8400 1.553671 188,201.84 -186,136.03 2,065.81
11/19/2018 43814PAB6 PAID DOWN PAR VALUE OF HONDA AUTO 1.570% 1/21120 -75,009.08003.898244 75,009.08 -75,002.41 6.67
11/20/2018 36225CAZ9 PAID DOWN PAR VALUE OF G N M A 1 1#080023 3.125%12/20/26 OCTOBER GNMA -183.3000 0.000000 183.30 -186.33 -3.03
DUE 11/20/18
11/20/2018 36225CC20 PAID DOWN PAR VALUE OF G N M A 1 1#080088 3.625% 6120/27 0CTOBER GNMA -1,554.1600 0.000000 1,554.16 -1,588.16 -34.00
DUE 11/20/18
11/20/2018 36225CNM4 PAID DOWN PARVALUE OF G N MA 1 1#080395 3.625% 4120/30 OCTOBER GNMA -95.0100 0.000000 95.01 -94.15 0.86
DUE 11/20/18
11/20/2018 36225CN28 PAID DOWN PAR VALUE OF G N M A 1 1#080408 3.625% 5120/30 OCTOBER GNMA -360.7400 0.000000 360.74 -357.08 3.66
DUE 11/20/18
11/20/2018 36225DCB8 PAIDDOWNPARVALUEOFGNMA 11#0809653.750% 7120/340CTOBER GNMA -1,130.38000.000000 1,130.38 -1,129.67 0.71
DUE 11/20/18
11/26/2018 31394JY35 PAID DOWN PARVALUE OF F H L M C MLTCL MTG 6.500% 9/25/43 -1,797.8500 0.000000 1,797.85 -2,036.07 -238.22
11/26/2018 31371NUC7 PAID DOWN PARVALUE OFF N M A#257179 4.500% 4101/28 OCTOBER FNMA -128.67000.000000 128.67 -136.08 -7.41
DUE 11/25/18
11/26/2018 31376KT22 PAID DOWN PARVALUE OFF N MA#357969 5.000% 9101/35 OCTOBER FNMA -2,293.44000.000000 2,293.44 -2,465.45 -172.01
DUE 11/25/18
11/26/2018 31381PDA3 PAID DOWN PARVALUE OFF N MA#466397 3.400%11/01/20 OCTOBER FNMA -670.84000.000000 670.84 -656.32 14.52
DUE 11/25/18
11/26/2018 31403DJZ3 PAID DOWN PARVALUE OFF N MA#745580 5.000% 6/01/36 OCTOBER FNMA -1,830.15000.000000 1,830.15 -1,967.41 -137.26
DUE 11/25/18
11/26/2018 31403GXF4 PAID DOWN PARVALUE OFF N MA#748678 5.000%10/01/33 OCTOBER FNMA -693.90000.000000 693.90 -745.94 -52.04
DUE 11/25/18
11/26/2018 31406POY8 PAID DOWN PARVALUE OFF N MA#815971 5.000% 3/01/35 OCTOBER FNMA -4,909.67000.000000 4,909.67 5,277.90 -368.23
DUE 11/25/18
11/26/2018 31406XWT5 PAID DOWN PARVALUE OFF N MA#823358 3.481% 2/01/35 OCTOBER FNMA -6,482.36000.000000 6,482.36 -6,431.72 50.64
DUE 11/25/18
11/26/2018 31407BXH7 PAID DOWN PARVALUE OFF N MA#826080 5.000% 7101/35 OCTOBER FNMA -554.24000.000000 554.24 -595.81 -41.57
DUE 11/25/18
11/26/2018 31410F4V4 PAID DOWN PARVALUE OFF N MA#888336 5.000% 7101/36 OCTOBER FNMA -5,879.32000.000000 5,879.32 -6,320.27 -440.95
DUE 11/25/18
11/26/2018 3138EGGF6 PAID DOWN PARVALUE OFF N M A#AL0869 4.500% 6/01/29 OCTOBER FNMA -147.3600 0.000000 147.36 -155.85 -8.49
DUE 11/25/18
11/26/2018 31417YAY3 PAID DOWN PARVALUE OF FIN M A#MA0022 4.500% 4101/29 OCTOBER FNMA -276.3000 0.000000 276.30 -292.21 -15.91
DUE 11/25/18
3 018
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost GainlLoss
11/26/2018 31397QREO PAID DOWN PAR VALUE OF F N M A GTD REMIC 1.113% 2125/41 -2,910.8100 0.000000 2,910.81 -2,909.90 0.91
11/27/2018 78012UAX3 MATURED PAR VALUE OF ROYAL BK OF C D 2.320%11/27/18 1,000,000 PAR -1,000,000.0000 1.000000 1,000,000.00 -1,000,000.00 0.00
VALUE AT 100%
11/29/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -1,004,074.0300 1.000000 1,004,074.03 -1,004,074.03 0.00
11/30/2018 31846V567 SOLD UNITS OF FIRST AM GOVT OB FD CL Z -2,435,299.3900 1.000000 2,435,299.39 -2,435,299.39 0.00
TOTAL DISPOSITIONS -28,676,614,6800 28,675,366.35 -28,656,054.11 19,312.24
OTHER TRANSACTIONS
11/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 10,874.80 0.00 0.00
10/31/2018 INTEREST FROM 10/1/18 TO 10/31/18
11/01/2018 31846V567 INTEREST EARNED ON FIRST AM GOVT OB FD CL Z UNIT ON 0.0000 SHARES DUE 0.0000 0.000000 24,923.82 0.00 0.00
10/31/2018 INTEREST FROM 1011/18 TO 10/31/18
11/01/2018 64971M5E8 INTEREST EARNED ON NEWYORK NY CITY 4.075%11/01/20$i PVON 0.0000 0.000000 28,525.00 0.00 0.00
1400000.0000 SHARES DUE 11/1/2018
11/01/2018 96121T6G8 INTEREST EARNED ON WESTPAC EKING C D 2.060%11/01/18$1 PV ON 0.0000 0.000000 15,678.89 0.00 0.00
1000000.0000 SHARES DUE 11/1/2018 ACCRUED INTEREST ON 11/1/2018 MATURITY
11/05/2018 00440EAUl INTEREST EARNED ON ACE INA HOLDINGS 2.875% 11/03/22$1 PV ON 0.0000 0.000000 59,929.38 0.00 0.00
4169000.0000 SHARES DUE 11/3/2018
11/07/2018 3133851\51 INTEREST EARNED ON F H L B DISC NTS 11/07/18$1 PV ON 3000000.0000 0.0000 0.000000 1,248.33 0.00 0.00
SHARES DUE 11/7/2018 3,000,000 PAR VALUE AT 100%
11/07/2018 74005PBH6 INTEREST EARNED ON PRAXAIR INC 1.250% 11/07/18$1 PV ON 1205000.0000 0.0000 0.000000 7,531.25 0.00 0.00
SHARES DUE 11/7/2018
11/07/2018 912828V56 PAID ACCRUED INTEREST ON PURCHASE OF U S TREASURY NT 1.125% 1/31/19 0.0000 0.000000 -9,079.48 0.00 0.00
11/08/2018 65478GAD2 PAID ACCRUED INTEREST ON PURCHASE OF NISSAN AUTO 1.750%10/15/21 0.0000 0.000000 -2,934.90 0.00 0.00
11/13/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 6136.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/13/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 6136.00 UNITS 0.0000 0.000000 0.00 6,136.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/13/2018 06371ERK5 INTEREST EARNED ON BANK OF MONTREAL C D 1,750% 11/13/18$1 PV ON 0.0000 0.000000 56,357.29 0.00 0.00
2950000.0000 SHARES DUE 11/13/2018 ACCRUED INTEREST ON 11/13/2018
MATURITY
11/13/2018 369550BE7 INTEREST EARNED ON GENERAL DYNAMICS 3.000% 5/11/21 $1 PV ON 0.0000 0.000000 47,400.00 0.00 0.00
3160000.0000 SHARES DUE 1111 1/2 01 8
11/13/2018 4581XOCX4 INTEREST EARNED ON INTER AMER DEV SK 1.625% 5/12/20$1 PV ON 0.0000 0.000000 24,659.38 0.00 0.00
3035000.0000 SHARES DUE 11/12/2018
11/13/2018 166764AH3 PAID ACCRUED INTEREST ON PURCHASE OF CHEVRON CORP 3.191% 6/24/23 0.0000 0.000000 -43,122.82 0.00 0.00
4 of
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
11/13/2018 912828WUO PARVALUEOFUSTREASURYIPS 0.125% 7/15/24 ADJUSTED BY 6136.0000 UNITS 6,136.00000.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/13/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 6136.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/15/2018 02587AAJ3 INTEREST EARNED ON AMERICAN EXPRESS 1.930% 9115/22$1 PV ON 10084.2400 0.0000 0.000000 10,084.24 0.00 0.00
SHARES DUE 11/15/2018$0.00161/PV ON 6,270,000.00 PV DUE 11/15/18
11/15/2018 084664BT7 INTEREST EARNED ON BERKSHIRE HATHAWAY 3.000% 5/15/22$1 PV ON 0.0000 0.000000 60,000.00 0.00 0.00
4000000.0000 SHARES DUE 11/1 512 01 8
11/15/2018 31348SWZ3 INTEREST EARNED ON F H L M C#786064 3.427% 1/01/28$1 PV ON 5.8100 0.0000 0.000000 5.81 0.00 0.00
SHARES DUE 11/1 512 01 8 SEPTEMBER FHLMC DUE 11/15/18
11/15/2018 3133TCE95 INTEREST EARNED ON F H L M C MLTCL MTG 3.587% 8/15/32$1 PV ON 43.5800 0.0000 0.000000 43.58 0.00 0.00
SHARES DUE 11/15/2018$0.00299/PV ON 13,988.10 PV DUE 11/15/18
11/15/2018 438140AC2 INTEREST EARNED ON HONDA AUTO 1.390% 4/15/20$1 PV ON 723.1600 0.0000 0.000000 723.16 0.00 0.00
SHARES DUE 11/15/2018$0.00116/PV ON 624,307.38 PV DUE 11/15/18
11/15/2018 47788MAC4 INTEREST EARNED ON JOHN DEERE OWNER 1.360% 4/15/20$1 PV ON 790.1500 0.0000 0.000000 790.15 0.00 0.00
SHARES DUE 11/15/2018$0.00113/PV ON 697,190.71 PV DUE 11/15/18
11/15/2018 47788NADO INTEREST EARNED ON JOHN DEERE OWNER 1.490% 5115/23$1 PV ON 1429.1600 0.0000 0.000000 1,429.16 0.00 0.00
SHARES DUE 11/15/2018$0.00124/PV ON 1,151,000.00 PV DUE 11/15/18
11/15/2018 47787XAB3 INTEREST EARNED ON JOHN DEERE OWNER 1.500%10/15/19$1 PV ON 104.4200 0.0000 0.000000 104.42 0.00 0.00
SHARES DUE 11/15/2018$0.00125/PV ON 83,538.84 PV DUE 11/15/18
11/15/2018 47788BABO INTEREST EARNED ON JOHN DEERE OWNER 1.590% 4/15/20$1 PV ON 507.6800 0.0000 0.000000 507.68 0.00 0.00
SHARES DUE 11/15/2018$0.00132/PV ON 383,155.51 PV DUE 11/15/18
11/15/2018 47788BAD6 INTEREST EARNED ON JOHN DEERE OWNER 1.820%10/15/21 $1 PV ON 1023.7500 0.0000 0.000000 1,023.75 0.00 0.00
SHARES DUE 11/15/2018$0.00152/PV ON 675,000.00 PV DUE 11/15/18
11/15/2018 47788CAB8 INTEREST EARNED ON JOHN DEERE OWNER 2.420%10/15/20$1 PV ON 3630.0000 0.0000 0.000000 3,630.00 0.00 0.00
SHARES DUE 11/15/2018$0.00202/PV ON 1,800,000.00 PV DUE 11/15/18
11/15/2018 47788CAC6 INTEREST EARNED ON JOHN DEERE OWNER 2.660% 4/18/22$1 PV ON 2970.3300 0.0000 0.000000 2,970.33 0.00 0.00
SHARES DUE 11/15/2018$0.00222/PV ON 1,340,000.00 PV DUE 11/15/18
11/15/2018 47788EAC2 INTEREST EARNED ON JOHN DEERE OWNER 3.080%11/15/22$1 PV ON 0.0000 0.000000 11,883.67 0.00 0.00
11883.6700 SHARES DUE 11/15/2018$0.00257/PV ON 4,630,000.00 PV DUE 11/15/18
11/15/2018 65478VAD9 INTEREST EARNED ON NISSAN AUTO 1.320% 1/15/21 $1 PV ON 1389.7700 0.0000 0.000000 1,389.77 0.00 0.00
SHARES DUE 11/15/2018$0.00110/PV ON 1,263,429.36 PV DUE 11/15/18
11/15/2018 654747ABO INTEREST EARNED ON NISSAN AUTO 1.470% 1/15/20$1 PV ON 317.3000 0.0000 0.000000 317.30 0.00 0.00
SHARES DUE 11/15/2018$0.00122/PV ON 259,017.38 PV DUE 11/15/18
11/15/2018 65477UAD2 INTEREST EARNED ON NISSAN AUTO 1.500% 9/15/21 $1 PV ON 1808.1900 0.0000 0.000000 1,808.19 0.00 0.00
SHARES DUE 11/15/2018$0.00125/PV ON 1,446,552.40 PV DUE 11/15/18
50(8
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
11/15/2018 65478GAD2 INTEREST EARNED ON NISSAN AUTO 1.750%10/15/21 $1 PV ON 3828.1200 0.0000 0.000000 3,828.12 0.00 0.00
SHARES DUE 11/15/2018$0.00146/PV ON 2,625,000.00 PV DUE 11/15/18
11/15/2018 65479GAD1 INTEREST EARNED ON NISSAN AUTO 3.060% 3/15/23$1 PV ON 0078.0000 0.0000 0.000000 9,078.00 0.00 0.00
SHARES DUE 11/15/2018$0.00255/PV ON 3,560,000.00 PV DUE 11/15/18
11/15/2018 89238BABS INTEREST EARNED ON TOYOTA AUTO 2.100%10/15/20$1 PV ON 8303.8200 0.0000 0.000000 8,393.82 0.00 0.00
SHARES DUE 11/15/2018$0.00175/PV ON 4,796,471.27 PV DUE 11/15/18
11/15/2018 913366EJ5 INTEREST EARNED ON UNIV OF CALIFORNIA 5.035% 5/15/21 $1 PV ON 400000.0000 0.0000 0.000000 10,070.00 0.00 0.00
SHARES DUE 11/15/2018
11/15/2018 69371RN36 PAID ACCRUED INTEREST ON PURCHASE OF PACCAR FINANCIAL MTN 1.200% 0.0000 0.000000 -3,357.30 0.00 0.00
8/12/19
11/16/2018 166764BG4 INTEREST EARNED ON CHEVRON CORP 2.100% 5/16/21 $1 PV ON 2500000.0000 0.0000 0.000000 26,250.00 0.00 0.00
SHARES DUE 11/16/2018
11/19/2018 3137EAEK1 INTEREST EARNED ON F H L M C M T N 1.875% 11/17/20$1 PV ON 5000000.0000 0.0000 0.000000 46,875.00 0.00 0.00
SHARES DUE 11/17/2018
11/19/2018 43814RACO INTEREST EARNED ON HONDA AUTO 1.210%12/18/20$1 PV ON 2269.6500 0.0000 0.000000 2,269.65 0.00 0.00
SHARES DUE 11/18/2018$0.00101/PV ON 2,250,889.34 PV DUE 11/18/18
11/19/2018 43814PAB6 INTEREST EARNED ON HONDA AUTO 1.570% 1/21/20$1 PV ON 563.9500 0.0000 0.000000 563.95 0.00 0.00
SHARES DUE 11/18/2018$0.00131/PV ON 431,043.97 PV DUE 11/18/18
11/19/2018 43814PAC4 INTEREST EARNED ON HONDA AUTO 1.790% 9/20/21 $1 PV ON 4609.2500 0.0000 0.000000 4,609.25 0.00 0.00
SHARES DUE 11/18/2018$0.00149/PV ON 3,090,000.00 PV DUE 11/18/18
11/19/2018 43814UAG4 INTEREST EARNED ON HONDA AUTO 3.010% 5/18/22$1 PV ON 4289.2500 0.0000 0.000000 4,289.25 0.00 0.00
SHARES DUE 11/18/2018$0.00251/PV ON 1,710,000.00 PV DUE 11/18/18
11/19/2018 58933YAF2 INTEREST EARNED ON MERCK CO INC 2.800% 5/18/23$1 PV ON 2000000.0000 0.0000 0.000000 28,000.00 0.00 0.00
SHARES DUE 11/18/2018
11/20/2018 36225CAZ9 INTEREST EARNED ON G N M A I I#080023 3.125%12/20/26$1 PV ON 48.7200 0.0000 0.000000 48.72 0.00 0.00
SHARES DUE 11/20/2018 OCTOBER GNMADUE 11/20/18
11/20/2018 36225CC20 INTEREST EARNED ON G N M A I I#080088 3.625% 6/20/27$1 PV ON 59.2000 0.0000 0.000000 59.20 0.00 0.00
SHARES DUE 11/20/2018 OCTOBER GNMADUE 11/20/18
11/20/2018 36225CNM4 INTEREST EARNED ON G N M A I I#080395 3.625% 4/20/30$1 PV ON 23.5300 0.0000 0.000000 23.53 0.00 0.00
SHARES DUE 11/20/2018 OCTOBER GNMADUE 11/20/18
11/20/2018 36225CN28 INTEREST EARNED ON G N M A I I#080408 3.625% 5/20/30$1 PV ON 177.4800 0.0000 0.000000 177.48 0.00 0.00
SHARES DUE 11/20/2018 OCTOBER GNMADUE 11/20/18
11/20/2018 36225DCBS INTEREST EARNED ON G N M A I I#080965 3.750% 7/20/34$1 PV ON 179.6900 0.0000 0.000000 179.69 0.00 0.00
SHARES DUE 11/20/2018 OCTOBER GNMA DUE 11/20/18
11/20/2018 747525AD5 INTEREST EARNED ON QUALCOMM INC 2.250% 5120/20$1 PV ON 5000000.0000 0.0000 0.000000 56,250.00 0.00 0.00
SHARES DUE 11/20/2018
60(8
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost Gain/Loss
11/21/2018 43815HAC1 INTEREST EARNED ON HONDA AUTO 2.950% 8/22/22$1 PV ON 9759.5800 0.0000 0.000000 9,759.58 0.00 0.00
SHARES DUE 11/21/2018$0.00246/PV ON 3,970,000.00 PV DUE 11/21/18
11/26/2018 03215PFN4 INTEREST EARNED ON AMRESCO 3.43613% 6/25/29$1 PV ON 382.9700 0.0000 0.000000 382.97 0.00 0.00
SHARES DUE 11/25/2018$0.00286/PV ON 133,743.29 PV DUE 11/25/18
11/26/2018 31398VJ98 INTEREST EARNED ON F H L M C MLTCL MTG 4.251% 1/25/20$1 PV ON 900000.0000 0.0000 0.000000 3,188.25 0.00 0.00
SHARES DUE 11/25/2018
11/26/2018 31394JY35 INTEREST EARNED ON F H L M C MLTCL MTG 6.500% 9/25/43$1 PV ON 4207.1100 0.0000 0.000000 4,207.11 0.00 0.00
SHARES DUE 11/25/2018$0.005421PV ON 776,697.69 PV DUE 11/25/18
11/26/2018 31371NUC7 INTEREST EARNED ON F N M A#257179 4.500% 4/01/28$1 PV ON 60.7900 0.0000 0.000000 60.79 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31376KT22 INTEREST EARNED ON F N M A#357969 5.000% 9/01/35$1 PV ON 473.9900 0.0000 0.000000 473.99 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31381PDA3 INTEREST EARNED ON F N M A#466397 3.400%11/01/20$1 PV ON 1010.5900 0.0000 0.000000 1,010.59 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31403DJZ3 INTEREST EARNED ON F N M A#745580 5.000% 6/01/36$1 PV ON 454.5600 0.0000 0.000000 454.56 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31403GXF4 INTEREST EARNED ON F N M A#748678 5.000%10/01/33$1 PV ON 10.6800 0.0000 0.000000 10.68 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31408POY8 INTEREST EARNED ON F N M A#815971 5.000% 3/01/35$1 PV ON 808.1800 0.0000 0.000000 808.18 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31406XWT5 INTEREST EARNED ON F N M A#823358 3.481% 2/01/35$1 PV ON 348.4600 0.0000 0.000000 348.46 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31407BXH7 INTEREST EARNED ON F N M A#826080 5.000% 7/01/35$1 PV ON 89.4400 0.0000 0.000000 89.44 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31410F4V4 INTEREST EARNED ON F N M A#888336 5.000% 7/01/36$1 PV ON 903.4900 0.0000 0.000000 903.49 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 3138EGGF6 INTEREST EARNED ON F N M A#AL0869 4.500% 6/01/29$1 PV ON 45.3700 0.0000 0.000000 45.37 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31417YAY3 INTEREST EARNED ON F N M A#MA0022 4.500% 4/01/29$1 PV ON 73.6800 0.0000 0.000000 73.68 0.00 0.00
SHARES DUE 11/2 512 01 8 OCTOBER FNMA DUE 11/25/18
11/26/2018 31397OREO INTEREST EARNED ON F N M A GTD REMIC 1.113% 2/25/41 $1 PV ON 546.3900 0.0000 0.000000 546.39 0.00 0.00
SHARES DUE 11/25/2018$0.00247/PV ON 221,405.86 PV DUE 11/25/18
11/27/2018 78012UAX3 INTEREST EARNED ON ROYAL BK OF C D 2.320%11/27/18$1 PV ON 1000000.0000 0.0000 0.000000 17,528.89 0.00 0.00
SHARES DUE 11/27/2018 ACCRUED INTEREST ON 11/27/2018 MATURITY
11/28/2018 912828WUO BOOK VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 6448.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
7 of
U.S. Bank
Transaction History
11/01/2018 Thru 11/30/2018
Entry Date CUSIP Id Explanation Units Price Net Cash Amt Cost GainlLoss
11/28/2018 912828WUO FED BASIS OF U S TREASURY I P S 0.125% 7115/24 ADJUSTED BY 6448.00 UNITS 0.0000 0.000000 0.00 6,448.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/28/2018 912828WUO PAR VALUE OF U S TREASURY I P S 0.125% 7/15/24 ADJUSTED BY 6448.0000 UNITS 6,448.00000.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/28/2018 912828WUO STATE COST OF U S TREASURY I P S 0.125% 7/15124 ADJUSTED BY 6448.00 UNITS 0.0000 0.000000 0.00 0.00 0.00
INCREASE TO ADJUST FOR CHANGE IN CPI
11/29/2018 02665WCO2 PAID ACCRUED INTEREST ON PURCHASE OF AMERICAN HONDA MTN 3.625% 0.0000 0.000000 4,934.03 0.00 0.00
10/10/23
11/30/2018 3135GOF73 INTEREST EARNED ON F N M A 1.500% 11/30/20$1 PV ON 7500000.0000 0.0000 0.000000 56,250.00 0.00 0.00
SHARES DUE 11/30/2018
11/30/2018 912828XE5 INTEREST EARNED ON U S TREASURY NT 1.500% 5/31120$1 PV ON 5000000.0000 0.0000 0.000000 37,500.00 0.00 0.00
11/30/2018 912828G61 INTEREST EARNED ON U S TREASURY NT 1.500% 11/30/19$1 PV ON 0.0000 0.000000 56,250.00 0.00 0.00
7500000.0000 SHARES DUE 11/30/2018
11/30/2018 912828R69 INTEREST EARNED ON U S TREASURY NT 1.625% 5/31/23$1 PV ON 5000000.0000 0.0000 0.000000 40,625.00 0.00 0.00
SHARES DUE 11/30/2018
11/30/2018 912828U65 INTEREST EARNED ON U S TREASURY NT 1.750% 11/30/21 $1 PV ON 0.0000 0.000000 61,250.00 0.00 0.00
7000000.0000 SHARES DUE 11/30/2018
11/30/2018 912828M80 INTEREST EARNED ON U S TREASURY NT 2.000% 11/30/22$1 PV ON 0.0000 0.000000 80,000.00 0.00 0.00
8000000.0000 SHARES DUE 11/30/2018
11/30/2018 313383YJ4 PAID ACCRUED INTEREST ON PURCHASE OF F H L B DEB 3.375% 9/08/23 0.0000 0.000000 -11,339.06 0.00 0.00
11/30/2018 24422EUM9 PAID ACCRUED INTEREST ON PURCHASE OF JOHN DEERE MTN 3.650%10/12/23 0.0000 0.000000 .6,083.33 0.00 0.00
TOTAL OTHER TRANSACTIONS 12,584.0000 865,721.51 12,584.00 0.00
80(8
OPERATIONS COMMITTEE Meeting Date TOBE.O(Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
2 9
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: RELOCATION INTO 18350 MT. LANGLEY, PROJECT NO. FE18-01
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to approve a purchase order with GM Business Interiors
(GMBI) in an amount not to exceed $250,000 for procurement of furniture for relocation
into 18350 Mt. Langley, Project No. FE18-01.
BACKGROUND
The Orange County Sanitation District(Sanitation District) purchased the building located
at 18350 Mt. Langley Street in preparation for the upcoming Headquarters Complex. Due
to the upcoming work at the Plant No. 1 Headworks, two staff trailers are being
demolished. There was a planning study to review the personnel relocation requirements
to accommodate the demolition of these two trailers, and the conclusion was to relocate
staff to the Mt. Langley building until the proposed new Headquarters Building on the
north side of Ellis Avenue is complete.
There is sufficient recently-vacated office space within the Mt. Langley building for 37 staff
members of the Resource Protection Division that are currently located in two separate
buildings, allowing the entire division to be together.
To avoid potential delays, staff is proposing not to reconfigure the existing suites at this
time. Reconfiguring walls and doors would require more time for design, permitting, and
construction.
RELEVANT STANDARDS
• Provide a safe and collegial workplace
• Ensure the public's money is wisely spent
PROBLEM
The vacant suites in the Mt. Langley building do not have furniture. The furniture that is
currently used by the Resource Protection Division will be needed for the staff moving
into their vacated spaces. In addition, reconfiguring existing furniture into the new spaces
is not cost effective.
Page 1 d 3
PROPOSED SOLUTION
Award a purchase order with GMBI for procurement of furniture for relocation into 18350
Mt. Langley, Project No. FE18-01.
TIMING CONCERNS
The schedule for the phased relocation requires that staff move into the 18350 Mt.
Langley building in April 2019. Due to the furniture manufacture and installation time, the
purchase order needs to be issued by early January to meet this deadline. The final
proposal, including final costs, will not be available in time for the December Operations
Committee to recommend approval at the December Board Meeting.
RAMIFICATIONS OF NOT TAKING ACTION
Project No. P1-105 may be delayed since the trailers cannot be demolished.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Sanitation District is a member of a national cooperative purchasing program, U.S.
Communities, which allows the Sanitation District to use the competitive solicitation
process from another public agency to request a proposal from a single manufacturer.
There are three furniture manufacturers included in the U.S. Communities program. In
order to select a manufacturer, a selection team was created which reviewed each
manufacturer in terms of quality, configurability, economics, warranty, and price. The
selection team visited the showrooms of each of the three manufacturers and had a
questionnaire for the visits. After the showroom visits, the manufacturers were asked to
provide example pricing from their local dealers on a generic layout for the space. The
responses to the questionnaire and the pricing were then scored, and a reference cost
was developed using the dealer's pricing with the U.S. Communities discounts applied.
The results are shown below.
Manufacturer Score Reference Cost
Herman Miller 58 $198,000
Hayworth 51 $206,000
Knoll 1 50 $232,000
Herman Miller had the highest score and the lowest reference cost. The Sanitation
District has requested a detailed proposal, including a detailed layout for the space, from
the local Herman-Miller Dealer, GMBI. Staff will review the detailed proposal and
recommend a purchase order for the General Managers approval.
Page 2 of 3
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted under the Small Construction Projects Program
(M-FE), Fiscal Years 2018-19 and 2019-20 budget, and the budget is sufficient for the
recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the
complete agenda package:
N/A
VR:dm:gc
Page 3 d 3
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
4 10
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: HOSE REEL FRAME WITH 12-INCH LAY FLAT HOSE
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Sole Source Purchase Order to West Coast Safety Supply Co.for 1,980
feet of 12-inch lay flat sewer hose with mobile hose reel, Specification
No. E-2017-91 OBD for a total cost of$220,383; and
B. Approve a contingency of$22,038 (10%).
BACKGROUND
Bypass pumping is used in both emergency situations and in planned maintenance
activities to redirect flow past a pump station or portion of pipeline. In the event of an
emergency, the Orange County Sanitation District(Sanitation District) has two (2)options
for bypass pumping: rent equipment or deploy equipment acquired for such purposes.
To increase in-house capability for first-response bypass pumping, staff initiated a
two-year plan to purchase three (3) large portable pumps and 4,620 feet of 12-inch lay-
flat hose with mobile hose reels and trailers. With this equipment, staff would be able to
bypass pump all of the Sanitation District's regional sewers and 12 of the 15 pump
stations, increasing self-sufficiency and helping to avoid or reduce the impact of spills and
compliance violations within the collection system. Three large portable pumps, 2,640
feet of 12-inch lay flat hose, and one hose reel and trailer have already been purchased
under Board authority.
RELEVANT STANDARDS
• Achieve less than 2.1 sewer spills per 100 miles
• Protect Orange County Sanitation District assets
• Meet or exceed sanitary sewer overflow regulations
PROBLEM
Emergency bypass pumping depends on the timely availability of specialty equipment.
Reliance on third-party vendors for this equipment could result in larger sewer spills and
significant compliance violations.
Page 1 of 3
PROPOSED SOLUTION
Staff recommends awarding a sole source purchase order to West Coast Safety Supply
Co. for 1,980 feet of 12-inch lay flat sewer hose with mobile hose reel.
TIMING CONCERNS
This purchase should be made prior to the start of the wet weather season to reduce the
impact of spills and compliance violations should a sanitary sewer overflow occur.
RAMIFICATIONS OF NOT TAKING ACTION
Rental equipment takes time to secure, increasing the chance of a sewer spill. By owning
the necessary equipment for bypass pumping, staff can respond quickly and efficiently to
emergency situations. This equipment can also be used for planned maintenance
activities or capital improvement efforts that require bypass pumping.
PRIOR COMMITTEE/BOARD ACTIONS
February 2018 - Approved purchase of 2,640 feet of 12-inch lay flat hose with mobile
hose reel trailer in the amount of$295,704 with a contingency of$29,570 (10%).
ADDITIONAL INFORMATION
During FY17-18, a trailer, hose reel and 2,640 feet of 12-inch lay flat hose was purchased
via a competitive bid. Two quotes were received and West Coast Safety Supply was
found to be the lowest responsive and responsible bidder.
A sole source purchase for the second hose reel assembly will ensure compatibility with
the hose reel and trailer system purchased in FY17-18. This strategy will result in an
estimated savings of$98,000, as a second trailer will not be needed.
With the purchase of a second mobile hose reel assembly from West Coast Safety Supply
Co., staff will have two (2)sets of pumps and hose reel assemblies and one (1) hose reel
trailer. This will allow the Sanitation District to conduct bypass pumping activities
efficiently and effectively at all but the three (3) largest pump stations. Ownership of this
critical equipment will improve staffs ability to lessen the harmful impacts to public health
and the environment that could be caused by a sewer spill.
A 10% contingency is recommended to protect against any variance in pricing or shipping
fees that may occur between the date of the quote and the date of purchase. The
Sanitation District has experienced unstable, usually increasing, prices due to the
changing "tariff' on imported goods.
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 Capital Equipment
Budget budget, Div 822 (Line item 9, Section 8, Page 96) and the budget is sufficient for
the recommended action.
Date of Approval Contract Amount Continaency
12/19/2018 $220,383 $22,038 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the
complete agenda package:
N/A
ET:ME:RB:CL:sr
Page 3 of 3
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT ItemNumber Item Number
s 11
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: ANNUAL SEWER LINE CCTV SERVICE CONTRACT,
SPECIFICATION NO. S-2018-1001BID
GENERAL MANAGER'S RECOMMENDATION
A. Award Service Contracts to two (2) contractors: Houston & Harris PCS, Inc.
(Primary) for $352,940 and Performance Pipeline Technologies (Secondary) for
$60,000 for Annual CCTV Sewer Inspection Services, Specification
No. S-2018-1001BID for a total amount not to exceed $412,940 for the period
beginning February 1, 2019 through January 31, 2020, with four (4) one-year
renewal options; and
B. Approve a contingency of $41,000 (10%).
BACKGROUND
Sewer inspection and condition assessment is one of the major preventive maintenance
tasks listed in the Orange County Sanitation District's (Sanitation District) Sewer System
Management Plan (SSMP) approved by the Regional Water Quality Control Board. The
Sanitation District has committed to inspecting the entire sewer system every five (5)
years per the National Association of Sewer Service Companies (NASSCO) guidelines
and definitions. Review of closed-circuit television (CCTV) data on a regular basis
reduces the potential for catastrophic pipeline failures. The CCTV data is also essential
for ensuring the best use of Sanitation District funds because it allows staff to prioritize
the most degraded pipelines for the cleaning and repair.
RELEVANT STANDARDS
• Maintain and adhere to the Sewer System Management Plan
• Protect Orange County Sanitation District assets
• Achieve less than 2.1 sewer spills per 100 miles
• Operate and maintain facilities to minimize impacts on surrounding communities,
including odor, noise, and lighting
PROBLEM
The current CCTV contract will expire on January 31, 2019. Without a new contract in
place the CCTV portion of the SSMP will fall behind.
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PROPOSED SOLUTION
Award new CCTV contracts to the two lowest bidders with the intention of using the
primary contractor for most, if not all, CCTV work and using the secondary contractor
when the primary is not available or cannot respond in a timely manner.
TIMING CONCERNS
A new contract must be in place by January 2019 to avoid program disruptions.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District will fall behind schedule if the CCTV contract expires. If the
contract is not awarded, the Sanitation District will eventually be out of compliance with
the SSMP. Non-compliance may lead to violations and fines. Also, not staying abreast
of sewer condition could lead to major pipe failures.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
A Notice Inviting Bids for CCTV Sewer Inspection Services was issued. Nine bids were
received. The two lowest responsive and responsible bidders are, Houston & Harris PCS,
Inc. and Performance Pipeline &Technologies.
BID TABULATION:
Company Name Bid
Houston & Harris PCS, Inc. $352,940
Performance Pipeline &Technologies $374,290
Nor-Cal Pipeline Services $410,350
Hoffman Southwest Corp. $469,450
Downstream Services, Inc. $640,770
National Plant Services, Inc. $675,850
Innerline Engineering, Inc. $706,850
Ta Iin Group, LLC $1,603,135
Pipe & Plant Solutions, Inc. $1,824,225
CEQA
N/A
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FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Years 2018-19 and 2019-20
budget, Div. 820 (Line item Professional and Contractual Services, Section 6, Page 76)
and the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $412,940 $41,000 (10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the
complete agenda package:
• Service Contracts
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SERVICE CONTRACT
Sewerline CCTV Inspection Services— Primary Contractor
Specification No. S-2018-1001 BD
THIS CONTRACT is made and entered into as of the date fully executed below, by and between
Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue,
Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and Houston & Harris PCS, Inc.
with a principal place of business at 21831 Barton Road, Grand Terrace, CA 92313 (hereinafter
referred to as "Primary Contractor") collectively referred to as the "Parties".
WITNESSETH
WHEREAS, OCSD desires to temporarily retain the services of Primary Contractor for Sewerline
CCTV Inspection Services "Services" as described in Exhibit"A'; and
WHEREAS, OCSD has chosen Primary Contractor to conduct Services in accordance with
Ordinance No. OCSD-52; and
WHEREAS, on December 19, 2018,the Board of Directors of OCSD, by minute order, authorized
execution of this Contract between OCSD and Primary Contractor; and
WHEREAS, Primary Contractor is qualified by virtue of experience, training, and expertise to
accomplish such Services,
NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged
between the Parties, the Parties mutually agree as follows:
1. Introduction
1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the
Primary Contractor. The terms and conditions herein exclusively govern the purchase of
Services as described in Exhibit"A".
1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as
though fully set forth at length herein.
Exhibit "A" Scope of Work
Exhibit "B" Bid
Exhibit "B-1"Addendum#1
Exhibit "C" Acknowledgement of Insurance Requirements
Exhibit "D" OCSD Safety Standards
Exhibit"E" Not Used
Exhibit "F" Not Used
1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any
of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects
govern and control.
1.4 The provisions of this Contract may be amended or waived only by a writing executed by
authorized representatives of both Parties hereto.
1.5 The various headings in this Contract are inserted for convenience only and shall not affect
the meaning or interpretation of this Contract or any paragraph or provision hereof.
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1.6 The tern "days", when used in the Contract, shall mean calendar days, unless otherwise
noted as business days.
1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday,
Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.8 The term "hours", when used in this Contract, shall be as defined in Exhibit"A".
1.9 Primary 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 Primary Contractor as a result of work performed
in anticipation of purchases of said services by OCSD.
2. Compensation Compensation to be paid by OCSD to Primary Contractor for the Services
provided under this Contract shall be a total amount not exceed Three Hundred Fifty-Two
Thousand Nine Hundred Forty Dollars ($352,940.00).
3. California Department of Industrial Relations(DIR)Registration and Record of Wages
3.1 To the extent Primary Contractor's employees and/or its subcontractors who will perform
Work under this Contract for which Prevailing Wage Determinations have been issued by
the DIR and as more specifically defined under Labor Code Section 1720 at seq, Primary
Contractor and its subcontractors shall comply with the registration requirements of Labor
Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to
compliance monitoring and enforcement by the DIR.
3.2 The Primary Contractor and its subcontractors shall maintain accurate payroll records and
shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll
records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-
compliance with the requirements of Section 1776 may be deducted from progress
payments per Section 1776.
3.3 Pursuant to Labor Code Section 1776, the Primary Contractor and its subcontractors shall
furnish a copy of all certified payroll records to OCSD and/or general public upon request,
provided the public request is made through OCSD, the Division of Apprenticeship
Standards or the Division of Labor Standards Enforcement of the Department of Industrial
Relations.
3.4 The Primary Contractor and its subcontractors shall comply with the job site notices posting
requirements established by the Labor Commissioner per Title 8, California Code of
Regulation Section 16461(e).
4. Payments and Invoicing
4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project
Manager or designee, of itemized invoices submitted for Services completed in accordance
with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether
the Services have been satisfactorily completed.
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4.2 Invoices shall be emailed by Primary Contractor to OCSD Accounts Payable at
APStaff(o.00SD.com and "INVOICE" with the Purchase Order Number and Specification
No. S-2018-1001 BD shall be referenced in the subject line.
5. Audit Rights Primary 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 Primary Contractor relating
to the invoices submitted by Primary Contractor pursuant to this Contract.
6. Scone of Work Subject to the terms of this Contract, Primary Contractor shall perform the
Services identified in Exhibit "A". Primary 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.
8. Contract Term The Services provided under this Contract shall be for the period of one 1
year commencing on February 1, 2019 and continuing through January 31, 2020.
9. Renewals
9.1 OCSD may exercise the option to renew this Contract for up to four (4) one-year periods
based upon the criteria set forth in Exhibit "A", under the terms and conditions contained
herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew.
9.2 This Contract may be renewed by OCSD Purchase Order.
10. Extensions The term of this Contract may be extended only by written instrument signed
by both Parties.
11. Performance Time is of the essence in the performance of the provisions hereof.
12. Termination
12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without
cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate.
Upon receipt of a termination notice, Primary Contractor shall immediately discontinue all
work under this Contract(unless the notice directs otherwise). OCSD shall thereafter,within
thirty (30) days, pay Primary Contractor for work performed (cost and fee) to the date of
termination. Primary 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
Primary Contractor other than for work performed to the date of termination.
12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination
that Primary Contractor is not complying with the Scope of Work requirements, if the level
of service is inadequate, or any other default of this Contract.
12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written
notice to Primary Contractor:
• if Primary Contractor becomes insolvent or files a petition under the Bankruptcy Act; or
• if Primary Contractor sells its business; or
• if Primary Contractor breaches any of the terms of this Contract; or
• if total amount of compensation exceeds the amount authorized under this Contract.
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12.4 All OCSD property in the possession or control of Primary Contractor shall be returned by
Primary Contractor to OCSD upon demand, or at the termination of this Contract,whichever
occurs first.
13. Insurance Primary 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"). Primary Contractor
shall not commence work under this Contract until all required insurance is obtained in a
form acceptable to OCSD, nor shall Primary Contractor allow any subcontractor to
commence service pursuant to a subcontract until all insurance required of the
subcontractor has been obtained. Failure to maintain required insurance coverage shall
result in termination of this Contract.
14. Indemnification and Hold Harmless Provision Primary 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 Primary Contractor's services under this Contract,
or by its subcontractor(s)or by anyone directly or indirectly employed by Primary 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, Primary 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 Primary 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 Primary Contractor of or anyone employed by or working under Primary Contractor.
To the maximum extent permitted by law, Primary Contractor's duty to defend shall apply
whether or not such claims, allegations, lawsuits, or proceedings have merit or are mantissa,
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. Primary
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.
15. OCSD Safety Standards OCSD requires Primary Contractor and its subcontractor(s) to
follow and ensure their employees follow all Federal, Stale, and local regulations as well as
OCSD Safety Standards while working at OCSD locations. If during the course of the
Contract it is discovered that OCSD Safety Standards do not comply with Federal, State, or
local regulations, then the Primary Contractor is required to follow the most stringent
regulatory requirement at no additional cost to OCSD. Primary Contractor and all of its
employees and subcontractors, shall adhere to all applicable OCSD Safety Standards
attached hereto in Exhibit"D".
16. Warranties In addition to the warranties stated in Exhibit"A", the following shall apply:
16.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence
on the date of acceptance by the OCSD Project Manager or designee of the work as
complete.
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16.2 Contractors Warranty (Guarantee): If within a one (1)year period of completion of all work
as specified in Exhibit"A", OCSD informs Primary Contractor that any portion of the Services
provided fails to meet the standards required under this Contract, Primary Contractor shall,
within the time agreed to by OCSD and Primary Contractor, take all such actions as are
necessary to correct or complete the noted deficiency(ies) at Primary Contractor's sole
expense.
17. Force Majeure Neither parry 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.
18. Freight (F.O.B. Destination) Primary 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.
19. Familiarity with Work By executing this Contract, Primary Contractor warrants that: 1) it
understands the work to be performed; and 2) it understands the facilities, difficulties and
restrictions of the work under this Contract. Should Primary 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 Primary
Contractor's risk, until written instructions are received from OCSD.
20. Regulatory Requirements Primary 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.
21. Licenses, Permits. Ordinances and Regulations Primary Contractor represents and
warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of
whatever nature that are legally required to engage in this work. Any and all fees required
by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the
work performed under the terms of this Contract will be paid by Primary Contractor.
22. Applicable Laws and Regulations Primary Contractor shall comply with all applicable
Federal, State, and local laws, rules, and regulations. Primary Contractor also agrees to
indemnify and hold harmless from any and all damages and liabilities assessed against
OCSD as a result of Primary 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.
23. Contractor's Employees Compensation
23.1 Davis-Bacon Act — If applicable, Primary 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.
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23.2 General Prevailing Rate — OCSD has been advised by the State of California Director of
Industrial Relations of its determination of the general prevailing rate of per diem wages and
the general prevailing rate for legal holiday and overtime work in the locality in which the
work is to be performed for each craft or type of work needed to execute this Contract, and
copies of same are on file in the Engineering Department. The Primary Contractor agrees
that not less than said prevailing rates shall be paid to workers employed on this Contract
as required by Labor Code Section 1774 of the Stale of California. Per California Labor
Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages at its
principal office and at each project site, which shall be made available to any interested
party upon request.
23.3 Forfeiture For Violation—Primary 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 Primary
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.
23.4 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 Primary
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.
23.5 Workday—In the performance of this Contract, not more than eight(8)hours shall constitute
a day's work, and the Primary Contractor shall not require more than eight(8)hours of labor
in a day from any person employed by it hereunder. Primary 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 Primary Contractor or any
subcontractor for each calendar day during which any worker is required or permitted to
labor more than eight(8) hours in any one (1) calendar day and forty (40) hours in any one
(1) week in violation of said Article. Primary 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 Primary Contractor in connection with the project.
23.6 Record of Wages; Inspection — Primary 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 Primary Contractor or subcontractor or its agent
having authority over such matters. Primary 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.
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24. South Coast Air Quality Management District's(SCAQMD) Requirements It is Primary
Contractor's responsibility that all equipment furnished and installed be in accordance with
the latest rules and regulations of the South Coast Air Quality Management District
(SCAQMD). All Contract work practices, which may have associated emissions such as
sandblasting, open field spray painting or demolition of asbestos containing components or
structures, shall comply with the appropriate rules and regulations of the SCAQMD.
25. Governing Law This Contract shall be governed by and interpreted under the laws of the
State of California and the Parties submit to jurisdiction in the County of Orange, in the event
any action is brought in connection with this Contract or the performance thereof.
26. 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 Primary 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.
27. Remedies In addition to other remedies available in law or equity, if the Primary 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 Primary Contractor. In the event OCSD
elects to "cover' as described in (3), OCSD shall be entitled to recover from Primary
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.
26. Dispute Resolution
28.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights
or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute
by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the
dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted
in accordance with the Commercial Mediation Rules of the American Arbitration Agreement,
through the alternate dispute resolution procedures of Judicial Arbitration through Mediation
Services of Orange County ("JAMS"), or any similar organization or entity conducting an
alternate dispute resolution process.
28.2 In the event the Parties are unable to timely resolve the dispute through mediation, the
issues in dispute shall be submitted to arbitration pursuant to California Code of Civil
Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator
shall be selected, or in the absence of agreement, each party shall select an arbitrator, and
those two(2)arbitrators shall select a third. Discovery may be conducted in connection with
the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05.
The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make
such investigation as deemed appropriate and shall render a written decision on the matter
in question. The arbitrator shall decide each and every dispute in accordance with the laws
of the State of California. The arbitrator's decision and award shall be subject to review for
errors of fact or law in the Superior Court for the County of Orange, with a right of appeal
from any judgment issued therein.
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29. 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.
30. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and
Forum for Enforcement, shall survive termination or expiration of this Contract.
31. 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.
32. Damage to OCSD's Property Any of OCSD's property damaged by Primary Contractor,
any subcontractors or by the personnel of either will be subject to repair or replacement by
Primary Contractor at no cost to OCSD.
33. Disclosure Primary Contractor agrees not to disclose,to any third party,data or information
generated from this project without the prior written consent from OCSD.
34. Independent Contractor The legal relationship between the parties hereto is that of an
independent contractor, and nothing herein shall be deemed to make Primary Contractor an
OCSD employee. During the performance of this Contract, Primary Contractor and its
officers, employees, and agents shall act in an independent capacity and shall not act as
OCSD's officers, employees, or agents. Primary Contractor and its officers, employees, and
agents shall obtain no rights to any benefits which accrue to OCSD's employees.
35. Limitations upon Subcontracting and Assignment Primary 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.
36. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits
to anyone other than OCSD and Primary Contractor.
37. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall
be personally liable to Primary Contractor, or any successor-in-interest, in the event of any
default or breach by OCSD orfor any amount which may become due to Primary Contractor
or to its successor, or for breach of any obligation for the terms of this Contract.
36. Read and Understood By signing this Contract, Primary Contractor represents that he has
read and understood the terms and conditions of the Contract.
39. 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.
40. 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.
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41. Notices All notices under this Contract must be in writing. Written notice shall be delivered
by personal service or sent by registered or certified mail, postage prepaid, return receipt
requested, or by any other overnight delivery service which delivers to the noticed
destination and provides proof of delivery to the sender. Rejection or other refusal to accept
or the inability to deliver because of changed address for which no notice was given as
provided hereunder shall be deemed to be receipt of the notice, demand or request sent.
All notices shall be effective when first received at the following addresses:
OCSD: Jackie Lagade
Senior Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Primary Contractor: Pamela Houston
President
Houston & Harris PCS, Inc.
21831 Barton Road
Grand Terrace, CA 92313
Each party shall provide the other party written notice of any change in address as soon as
practicable.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
David John Shawver
Board Chairman
Dated: By:
Clerk of the Board
Dated: By:
Contracts, Purchasing and Materials
Management Manager
Houston & Harris PCS, Inc.
Dated: By:
Print Name and Title of Officer
IRS Employers I.D. Number
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SERVICE CONTRACT
Sewerline CCTV Inspection Services—Secondary Contractor
Specification No. S-2018-1001BD
THIS CONTRACT is made and entered into as of the date fully executed below, by and between
Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue,
Fountain Valley, CA 92708 (hereinafter referred to as "OCSD") and Performance Pipeline
Technologies with a principal place of business at 5305 Industrial Drive, Huntington Beach, CA
92649(hereinafter referred to as"Secondary Contractor")collectively referred to as the"Parties".
WITNESSETH
WHEREAS, OCSD desires to temporarily retain the services of Secondary Contractor for
Sewerline CCTV Inspection Services "Services" as described in Exhibit"A'; and
WHEREAS, OCSD has chosen Secondary Contractor to conduct Services in accordance with
Ordinance No. OCSD-52; and
WHEREAS, on December 19, 2018,the Board of Directors of OCSD, by minute order, authorized
execution of this Contract between OCSD and Secondary Contractor; and
WHEREAS, Secondary Contractor is qualified by virtue of experience, training, and expertise to
accomplish such Services,
NOW, THEREFORE, in consideration of the mutual promises and mutual benefits exchanged
between the Parties, the Parties mutually agree as follows:
1. Introduction
1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and the
Secondary Contractor. The terms and conditions herein exclusively govern the purchase of
Services as described in Exhibit"A".
1.2 Exhibits to this Contract are incorporated by reference and made a part of this Contract as
though fully set forth at length herein.
Exhibit "A" Scope of Work
Exhibit "B" Bid
Exhibit"B-1"Addendum#1
Exhibit"C" Acknowledgement of Insurance Requirements
Exhibit "D" OCSD Safety Standards
Exhibit"E" Not Used
Exhibit"F" Not Used
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. With regard to the Exhibits, Exhibit"G"Addendum#1 shall control over
Exhibit'B" Bid.
1.4 The provisions of this Contract may be amended or waived only by a writing executed by
authorized representatives of both Parties hereto.
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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 term "days", when used in the Contract, shall mean calendar days, unless otherwise
noted as business days.
1.7 OCSD holidays (non-working days) are as follows: New Year's Day, Lincoln's Birthday,
Presidents' Day, Memorial Day, Independence Day, Labor Day, Veterans Day,
Thanksgiving Day, Day after Thanksgiving, Christmas Eve, and Christmas Day.
1.8 The term "hours', when used in this Contract, shall be as defined in Exhibit"A".
1.9 Secondary 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 Secondary Contractor as a result of work
performed in anticipation of purchases of said services by OCSD.
2. Compensation
2.1 Compensation to be paid by OCSD to Secondary Contractorfor the Services provided under
this Contract shall be a total amount not exceed Sixty Thousand Dollars ($60,000.00).
2.2 Parties agreed that the Quantity, the Subtotal and the Total shown in Exhibit "B" are not
representative of the quantities or price of this Contract.
2.3 OCSD will pay the Secondary Contractor the unit price in accordance with Exhibit"B".
3. California Department of Industrial Relations WIRI Registration and Record of Waaes
3.1 To the extent Secondary Contractor's employees and/or its subcontractors who will perform
Work under this Contract for which Prevailing Wage Determinations have been issued by
the DIR and as more specifically defined under Labor Code Section 1720 at seq, Secondary
Contractor and its subcontractors shall comply with the registration requirements of Labor
Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the work is subject to
compliance monitoring and enforcement by the DIR.
3.2 The Secondary Contractor and its subcontractors shall maintain accurate payroll records
and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll
records to the Labor Commissioner pursuant to Labor Code 1771.4(a)(3). Penalties for non-
compliance with the requirements of Section 1776 may be deducted from progress
payments per Section 1776.
3.3 Pursuant to Labor Code Section 1776, the Secondary Contractor and its subcontractors
shall furnish a copy of all certified payroll records to OCSD and/or general public upon
request, provided the public request is made through OCSD, the Division of Apprenticeship
Standards or the Division of Labor Standards Enforcement of the Department of Industrial
Relations.
3.4 The Secondary Contractor and its subcontractors shall comply with the job site notices
posting requirements established by the Labor Commissioner per Title 8, California Code of
Regulation Section 16461(e).
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4. Payments and Invoicing
4.1 OCSD shall pay, net thirty (30) days, upon receipt and approval, by OCSD's Project
Manager or designee, of itemized invoices submitted for Services completed in accordance
with Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether
the Services have been satisfactorily completed.
4.2 Invoices shall be emailed by Secondary Contractor to OCSD Accounts Payable at
APStaffng.00SD.com and "INVOICE" with the Purchase Order Number and Specification
No. S-2018-1001 BD shall be referenced in the subject line.
5. Audit Rights Secondary 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 Secondary Contractor
relating to the invoices submitted by Secondary Contractor pursuant to this Contract.
6. Scope of Work Subject to the terms of this Contract, Secondary Contractor shall perform
the Services identified in Exhibit "A". Secondary 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.
8. Contract Term The Services provided under this Contract shall be for the period of one 1
year commencing on February 1. 2019 and continuing through January 31, 2020.
9. Renewals
9.1 OCSD may exercise the option to renew this Contract for up to four (4) one-year periods
based upon the criteria set forth in Exhibit "A", under the terms and conditions contained
herein. OCSD shall make no obligation to renew nor give reason if it elects not to renew.
9.2 This Contract may be renewed by OCSD Purchase Order.
10. Extensions The term of this Contract may be extended only by written instrument signed
by both Parties.
11. Performance Time is of the essence in the performance of the provisions hereof.
12. Termination
12.1 OCSD reserves the right to terminate this Contract for its convenience, with or without
cause, in whole or in part, at any time, by written notice from OCSD of intent to terminate.
Upon receipt of a termination notice, Secondary Contractor shall immediately discontinue
all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter,
within thirty (30) days, pay Secondary Contractor for work performed (cost and fee) to the
dale of termination. Secondary 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 Secondary Contractor other than for work performed to the date of
termination.
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12.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination
that Secondary Contractor is not complying with the Scope of Work requirements, if the level
of service is inadequate, or any other default of this Contract.
12.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written
notice to Secondary Contractor:
• if Secondary Contractor becomes insolvent or files a petition under the Bankruptcy Act; or
• if Secondary Contractor sells its business; or
• if Secondary Contractor breaches any of the terms of this Contract; or
• if total amount of compensation exceeds the amount authorized under this Contract.
12.4 All OCSD property in the possession or control of Secondary Contractor shall be returned
by Secondary Contractor to OCSD upon demand, or at the termination of this Contract,
whichever occurs first.
13. Insurance Secondary 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"). Secondary
Contractor shall not commence work under this Contract until all required insurance is
obtained in a form acceptable to OCSD, nor shall Secondary Contractor allow any
subcontractor to commence service pursuant to a subcontract until all insurance required of
the subcontractor has been obtained. Failure to maintain required insurance coverage shall
result in termination of this Contract.
14. Indemnification and Hold Harmless Provision Secondary 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 Secondary Contractor's services underthis Contract,
or by its subcontractor(s) or by anyone directly or indirectly employed by Secondary
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, Secondary 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 Secondary 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 Secondary Contractor of or anyone employed by or working under
Secondary Contractor. To the maximum extent permitted by law, Secondary Contractor's
duty to defend shall apply whether or not such claims, allegations, lawsuits, or proceedings
have merit or are meritless, or which involve claims or allegations that any of the parties to
be defended were actively, passively, or concurrently negligent, or which otherwise assert
that the parties to be defended are responsible, in whole or in part,for any loss, damage, or
injury. Secondary 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.
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15. OCSD Safety Standards OCSD requires Secondary Contractor and its subcontractor(s)
to follow and ensure their employees follow all Federal, State, and local regulations as well
as OCSD Safety Standards while working at OCSD locations. If during the course of the
Contract it is discovered that OCSD Safety Standards do not comply with Federal, State, or
local regulations, then the Secondary Contractor is required to follow the most stringent
regulatory requirement at no additional cost to OCSD. Secondary Contractor and all of its
employees and subcontractors, shall adhere to all applicable OCSD Safety Standards
attached hereto in Exhibit"D".
16. Warranties In addition to the warranties stated in Exhibit"A", the following shall apply:
16.1 Manufacturer's standard warranty shall apply. All manufacturer warranties shall commence
on the date of acceptance by the OCSD Project Manager or designee of the work as
complete.
16.2 Contractor's Warranty (Guarantee): If within a one (1)year period of completion of all work
as specified in Exhibit "A", OCSD informs Secondary Contractor that any portion of the
Services provided fails to meet the standards required under this Contract, Secondary
Contractor shall, within the time agreed to by OCSD and Secondary Contractor, take all
such actions as are necessary to correct or complete the noted deflciency(ies)at Secondary
Contractor's sole expense.
17. Force Majeure Neither party shall be liable for delays caused by accident, flood, acts of
God, fire, labor trouble, war, acts of government or any other cause beyond its control, but
said party shall use reasonable efforts to minimize the extent of the delay. Work affected
by a Force Majeure condition may be rescheduled by mutual consent or may be eliminated
from the Contract.
18. Freight (F.O.B. Destination) Secondary 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.
19. Familiarity with Work By executing this Contract, Secondary Contractor warrants that: 1)
it understands the work to be performed; and 2) it understands the facilities, difficulties and
restrictions of the work under this Contract. Should Secondary 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 Secondary Contractor's risk, until written instructions are received from OCSD.
20. Regulatory Requirements Secondary 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.
21. Licenses, Permits. Ordinances and Reguiations Secondary Contractor represents and
warrants to OCSD that it has obtained all licenses, permits, qualifications, and approvals of
whatever nature that are legally required to engage in this work. Any and all fees required
by Federal, State, County, City and/or municipal laws, codes and/or tariffs that pertain to the
work performed under the terms of this Contract will be paid by Secondary Contractor.
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22. Applicable Laws and Regulations Secondary Contractor shall comply with all applicable
Federal, State, and local laws, rules, and regulations. Secondary Contractor also agrees to
indemnify and hold harmless from any and all damages and liabilities assessed against
OCSD as a result of Secondary 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.
23. Contractor's Employees Compensation
23.1 Davis-Bacon Act — If applicable, Secondary 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.
23.2 General Prevailing Rate — OCSD has been advised by the State of California Director of
Industrial Relations of its determination of the general prevailing rate of per diem wages and
the general prevailing rate for legal holiday and overtime work in the locality in which the
work is to be performed for each craft or type of work needed to execute this Contract, and
copies of same are on file in the Engineering Department. The Secondary Contractor
agrees that not less than said prevailing rates shall be paid to workers employed on this
Contract as required by Labor Code Section 1774 of the State of California. Per California
Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of per diem wages
at its principal office and at each project site,which shall be made available to any interested
party upon request.
23.3 Forfeiture For Violation — Secondary 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
Secondary 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.
23.4 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 Secondary
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.
23.5 Workday—In the performance of this Contract, not more than eight(8)hours shall constitute
a day's work, and the Secondary Contractor shall not require more than eight (8) hours of
labor in a day from any person employed by it hereunder. Secondary 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 Secondary Contractor or any
subcontractor for each calendar day during which any worker is required or permitted to
labor more than eight(8) hours in any one (1) calendar day and forty (40) hours in any one
(1) week in violation of said Article. Secondary 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 Secondary Contractor in connection with the project.
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23.6 Record of Wages; Inspection — Secondary 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 Secondary Contractor or subcontractor or its
agent having authority over such matters. Secondary 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.
24. South Coast Air Quality Management District's (SCAQMD) Requirements It is
Secondary Contractor's responsibility that all equipment furnished and installed be in
accordance with the latest rules and regulations of the South Coast Air Quality Management
District (SCAQMD). All Contract work practices, which may have associated emissions
such as sandblasting, open field spray painting or demolition of asbestos containing
components or structures, shall comply with the appropriate rules and regulations of the
SCAQMD.
25. Governing Law This Contract shall be governed by and interpreted under the laws of the
State of California and the Parties submit to jurisdiction in the County of Orange, in the event
any action is brought in connection with this Contract or the performance thereof.
26. 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 Secondary 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.
27. Remedies In addition to other remedies available in law or equity, if the Secondary
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 Secondary Contractor. In the event OCSD
elects to "cover" as described in (3), OCSD shall be entitled to recover from Secondary
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.
28. Dispute Resolution
28.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights
or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute
by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the
dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted
in accordance with the Commercial Mediation Rules of the American Arbitration Agreement,
through the alternate dispute resolution procedures of Judicial Arbitration through Mediation
Services of Orange County ("JAMS"), or any similar organization or entity conducting an
alternate dispute resolution process.
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28.2 In the event the Parties are unable to timely resolve the dispute through mediation, the
issues in dispute shall be submitted to arbitration pursuant to California Code of Civil
Procedure, Part 3, Title 9, Sections 1280 at seq. For such purpose, an agreed arbitrator
shall be selected, or in the absence of agreement, each party shall select an arbitrator, and
those two(2)arbitrators shall select a third. Discovery may be conducted in connection with
the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05.
The arbitrator, or three (3) arbitrators acting as a board, shall take such evidence and make
such investigation as deemed appropriate and shall render a written decision on the matter
in question. The arbitrator shall decide each and every dispute in accordance with the laws
of the State of California. The arbitrator's decision and award shall be subject to review for
errors of fact or law in the Superior Court for the County of Orange, with a right of appeal
from any judgment issued therein.
29. 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.
30. Survival The provisions of this Contract dealing with Payment, Warranty, Indemnity, and
Forum for Enforcement, shall survive termination or expiration of this Contract.
31. 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.
32. Damage to OCSD's Property Any of OCSD's property damaged by Secondary Contractor,
any subcontractors or by the personnel of either will be subject to repair or replacement by
Secondary Contractor at no cost to OCSD.
33. Disclosure Secondary Contractor agrees not to disclose, to any third party, data or
information generated from this project without the prior written consent from OCSD.
34. Independent Contractor The legal relationship between the parties hereto is that of an
independent contractor, and nothing herein shall be deemed to make Secondary Contractor
an OCSD employee. During the performance of this Contract, Secondary Contractor and
its officers, employees, and agents shall act in an independent capacity and shall not act as
OCSD's officers, employees, or agents. Secondary Contractor and its officers, employees,
and agents shall obtain no rights to any benefits which accrue to OCSD's employees.
35. Limitations upon Subcontracting and Assignment Secondary 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.
36. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits
to anyone other than OCSD and Secondary Contractor.
37. Non-Liability of OCSD Officers and Employees No officer or employee of OCSD shall
be personally liable to Secondary 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 Secondary
Contractor or to its successor, or for breach of any obligation for the terms of this Contract.
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38. Read and Understood By signing this Contract, Secondary Contractor represents that he
has read and understood the terms and conditions of the Contract.
39. 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.
40. 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.
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41. Notices All notices under this Contract must be in writing. Written notice shall be delivered
by personal service or sent by registered or certified mail, postage prepaid, return receipt
requested, or by any other overnight delivery service which delivers to the noticed
destination and provides proof of delivery to the sender. Rejection or other refusal to accept
or the inability to deliver because of changed address for which no notice was given as
provided hereunder shall be deemed to be receipt of the notice, demand or request sent.
All notices shall be effective when first received at the following addresses:
OCSD: Jackie Lagade
Senior Buyer
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Secondary Contractor: Gene Glassburner
Owner
Performance Pipeline Technologies
5305 Industrial Drive
Huntington Beach, CA 92649
Each party shall provide the other party written notice of any change in address as soon as
practicable.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Contract to be signed by the duly authorized representatives.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
David John Shawver
Board Chairman
Dated: By:
Clerk of the Board
Dated: By:
Contracts, Purchasing and Materials
Management Manager
Performance Pipeline Technologies
Dated: By:
Print Name and Title of Officer
IRS Employers I.D. Number
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OPERATIONS COMMITTEE Meeting Date TOBE.Or .Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
6 12
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: DIGESTER CLEANING CONTRACT
GENERAL MANAGER'S RECOMMENDATION
Approve Amendment No. 1 forthe remaining annual renewals of the service contract with
Synagro-WWT for Digester Cleaning and Disposal, Specification No. S-2017-82413D,
which adds a provision for a per gallon unit price for processing excess sludge and
approve the excess sludge per gallon unit price of$0.13.
BACKGROUND
Under the current contract terms, the digester cleaning service provider (Synagro-WWT)
is paid for digester cleaning based upon the dry tons of solids removed. Also, prior to
handing over the digester to the service provider for cleaning, Orange County Sanitation
District (Sanitation District) is expected to remove the liquid sludge from the digester to
the maximum extent feasible.
In cases where the Sanitation District is unable to remove the excess sludge to the
maximum extent feasible, a new payment line item provision is required to compensate
the service provider for the volume of excess liquid sludge they must remove.
RELEVANT STANDARDS
• Maintain a culture of improving efficiency to reduce the cost to provide the
current service level or standard
• Commitment to safety& reducing risk in all operations
• Protect Orange County Sanitation District assets
PROBLEM
The contract payment line items do not currently include a provision to cover contractor
costs associated with processing liquid sludge which is the Sanitation District's
responsibility under the contract terms.
PROPOSED SOLUTION
A new equitable cost per gallon sludge volume processed payment line item would allow
for compensation to the contractor for processing the excess sludge volume.
Page 1 d 2
TIMING CONCERNS
Staff would like to see this new contract provision incorporated into the upcoming renewal
period which begins March 1, 2019.
RAMIFICATIONS OF NOT TAKING ACTION
In situations where the Sanitation District staff is not able to remove excess sludge prior
to handing over the digester for cleaning to the service provider, the digester cleaning
operations may have to be suspended until all liquid sludge that can be feasibly removed
by the Sanitation District is removed. This would disrupt the digester cleaning schedule
and subject the Sanitation District to standby and/or mobilization-demobilization costs of
up to $85,000 per event to the contractor.
PRIOR COMMITTEE/BOARD ACTIONS
July 2017 - Approved a Service Agreement with Synagro-WWT, the lowest responsive
and responsible bidder, for Digester Cleaning and Disposal, Specification
No. S-2017-82413D, for an eighteen-month period beginning September 1, 2017 through
February 28, 2019, for an amount not to exceed $3,953,958, with four (4) additional
18-month renewal options; and a contingency of$395,396(10%)aggregately per contract
period.
ADDITIONAL INFORMATION
Periodic digester cleaning removes material build-up which limits process capacity and
provides an opportunity to assess the structural and mechanical conditions of the
digesters. Digester cleaning is an essential element of the Sanitation District's asset
management and process optimization strategy.
This amendment does not change the previously authorized total amount of the contract.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Years 2018-19 and 2019-20
Operating Budget (Line item: Repairs and Maintenance, Section 6, Pages 92 and 100)
and the budget is sufficient for the recommended action.
Date of ADDroval Contract Amount Contlnoencv
12/19/2018 $0.13/Gal
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
Amendment No. 1
Page 2 of 2
AMENDMENTNO. 1
To Service Contract
Digester Cleaning Services
Specification No. 5.2017-824BD
THIS AMENDMENT TO THE CONTRACT is made and entered into, to be effective March 1,
2019, by and between Orange County Sanitation District hereinafter referred to as "OCSD" and Synagro-
W WT, Inc. (hereinafter referred to as "Service Provider") collectively referred to as the "Parties".
WHEREAS, on July 26, 2017, the Board of Directors of OCSD, by minute order, authorized
execution of this Contract and Service Provider with the term of the Contract starting on September 1,
2017, ("the Contract"); and
WHEREAS, the Parties wish to amend the Contract to make certain modifications which shall be
called Amendment No. 1 ("Amendment"); and
WHEREAS, the Parties to the Contract desire that this Amendment be incorporated into the
Contract and become a part thereof effective March 1, 2019; and
WHEREAS, the Parties desire that the Contract as modified by this Amendment No. 1 shall
constitute the sole and entire Contract among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants contained
herein, the Parties agree to amend the Contract to:
1. Exercise the renewal of this Contract for the period March 1, 2019 through August 31, 2020.
2. Adds a unit price of $0.13 per gallon for the processing of excess sludge via Exhibit "B-1" (Letter
from Service Provider dated November 15, 2018), which is attached hereto and made a part
hereof.
Except as expressly amended above, the Contract will remain unchanged and in full force
and effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this
Amendment No. 1 to be signed by the duly authorized representatives as of the day and year last signed
below.
Orange County Sanitation District Synagro-WWT, Inc.
By:
Contracts, Purchasing and Date Date
Materials Management Manager
Name:
David John Shawver, Date
Board Chairman
Title:
Clerk of the Board Date
12/13/18
Amendment No. 1 Specification No. 8-2017-824BD
032018
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
7 13
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PROCURE REMOTE ACTUATORS
GENERAL MANAGER'S RECOMMENDATION
A. Approve a sole source purchase order to CBS Aresafe for 204 electrical power
switching actuators and associated equipment for Plant No. 1, Plant No. 2, and 15
pump stations for a total amount not to exceed $1,001,985; and
B. Approve a contingency of$50,100 (5%).
BACKGROUND
The Orange County Sanitation District's (Sanitation District) Plant No. 1, Plant No. 2, and
outlying pump stations operate 239 Motor Control Centers (MCCs) and switchgears that
are used to distribute electricity from the Central Power Generation System and Southern
California Edison (SCE)to plant and pump station equipment. The release of the incident
energy thrown as an arc flash/blast is a potential issue when working around this electrical
equipment. Staff utilizes Personal Protective Equipment (PPE) to minimize the harm if
subject to an arc flash/blast exposure.
RELEVANT STANDARDS
• Maintain a culture of improving efficiency to reduce the cost to provide the current
service level or standard
• Provide a safe and collegial work place
PROBLEM
The Sanitation District staff evaluated existing MCCs and switchgears based on the
recently updated National Fire Protection Association (NFPA) Standard 70E, Standard
for Electrical Safety in Workplace and determined that the electrical equipment has the
potential to release arc flash energy and cause harm to operations and maintenance staff
working with the equipment even while donning PPE, as well as people passing near the
equipment if it were to activate.
PROPOSED SOLUTION
Staff recommends procuring remote actuators and operators for the 239 MCCs and
switchgears. Implementing this administrative and engineering control could improve
Page 1 of 3
employee safety by providing a safe distance between electrical equipment and the
individual operating the equipment, thereby minimizing potential are flash hazards.
RAMIFICATIONS OF NOT TAKING ACTION
Staff will still meet NFPA 70E requirements for PPE using are flash suits. However, even
with the arc flash suits, injuries to employees are likely to occur.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
In December 2017, a request for information (RFI) document, along with technical
specifications, was prepared and advertised for responses from potential vendors. The
Sanitation District did not receive any response to this RFI.
As a follow up to the RFI and during the RFI process, staff contacted firms well known in
the industry such as CBS Aresafe, Graybar, and Martek to find out if they could furnish
these units. Graybar and Martek expressed their inability to furnish all the units listed in
the RFI. Even though CBS Aresafe provided their response to the RFI after the deadline,
they confirmed with staff that they were well qualified to furnish the remote switching units,
and that it was an oversight on their part that led to them not responding to the RFI within
the specified deadline. CBS ArcSafe also sent their representative to the Sanitation
District to meet with staff, participated in a job walk, provided cost proposals, and
expressed their readiness and consent to provide the remote switching units
The Sanitation District staff reviewed CBS Aresafe's response to the RFI and has
determined that CBS Aresafe is the only acceptable vendor for this procurement for the
following reasons:
1. CBS Aresafe provides remote switching solutions for all the types and manufacturers
of MCCs and switchgears operated by the Sanitation District. Other companies do
not provide switching solutions for all types of MCCs and switchgears used by the
Sanitation District.
2. CBS Aresafe is the only vendor who can fabricate custom units for unique switching
units as required by some MCCs and switch gears at the Sanitation District. Unique
switching operations include push buttons, levers, rotary/pistol grip switches, and
handles requiring single or multiple strokes.
3. CBS Aresafe was the only vendor who sent their representative to inspect the
Sanitation District's electrical equipment and confirmed that they could furnish the
remote switching units.
CEQA
N/A
Page 2 of 3
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 budget, Div. 880,
Plant No. 2 Maintenance, (Line Item: Repairs and Maintenance, Section 6 page 100) and
the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
12/19/2018 $1,001,985 $50,100 (5%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
N/A
Page 3 of 3
OPERATIONS COMMITTEE MeeingDale TOBd 011Dir.
1VO5118 12/19/18
AGENDA REPORT Item Number Item Numbe
8 14
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: INCREASE TO JANITORIAL AND FLOOR MAINTENANCE CONTRACT
GENERAL MANAGER'S RECOMMENDATION
A. Approve Amendment No. 1 to Service Agreement with Gamboa Services, Inc.
DBA Corporate Image Maintenance for Janitorial & Floor Maintenance Service at
Plant Nos. 1 and 2, Specification No. S-2015-73013D, for the period
February 1, 2019 through January 31, 2020, for an amount not to exceed
$399,720, including the one (1) year renewal option; and
B. Approve an annual contingency in the amount of $39,972 (10%) aggregately per
year.
BACKGROUND
The purpose of this agreement is to provide janitorial and floor cleaning services
including all necessary labor, supplies, and equipment at Plant Nos. 1 and 2. This
renewal includes the California minimum wage requirements effective January 1, 2019,
and additional services to restrooms, lunch areas, and sample room added during
previous renewal periods.
California minimum wage has increased and impacted the janitorial and Floor cleaning
services agreement since January 2017. In order to accommodate these costs and
added services, contingency funds approved under the original service agreement were
used.
RELEVANT STANDARDS
Provide a safe and collegial workplace
PROBLEM
The current janitorial and floor maintenance agreement is due to expire
January 31, 2019. The proposed renewal exceeds the contract dollar amount and
contingency funds previously approved by the Board.
PROPOSED SOLUTION
The proposed increase and contract renewal will provide sufficient funds for the new
minimum wage increase and maintain the same level of service.
Page 1 d 2
TIMING CONCERNS
The existing agreement expires on January 31, 2019.
RAMIFICATIONS OF NOT TAKING ACTION
Renewal is necessary to prevent a lapse in janitorial services at Plant Nos. 1 and 2.
PRIOR COMMITTEE/BOARD ACTIONS
December 2015 - Approved a service agreement with Gamboa Services, Inc., DBA
Corporate Image Maintenance for Janitorial & Floor Maintenance Service at Plant Nos.
1 and 2, Specification No. S-2015-73013D, for the period February 1, 2016 through
January 31, 2017 for an amount not to exceed $345,700 with four (4), one-year renewal
options; and approved an annual contingency of$34,570 (10%) aggregately per year.
ADDITIONAL INFORMATION
N/A
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation Districfs Purchasing
Ordinance. This item has been budgeted in the Fiscal Year 2018-19 and 2019-20
operating budget (Line item: Professional and Contractual Services; Section 6, Pages
92 and 100) and the budget is sufficient for the recommended action.
Date of Auoroval Contract Amount Continnencv
12/19/2018 $399,720 $39,972.00(10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
Amendment No. 1
Page 2 of 2
AMENDMENT NO. 1
To Service Agreement
Janitorial &Floor Maintenance Service at Plant 1 &2
Specification No. 5-2015-730BD
THIS AMENDMENT TO THE AGREEMENT is made and entered into, to be effective February 1, 2019, by
and between Orange County Sanitation District hereinafter referred to as "OCSD" and Gamboa Services, Inc. DBA
Corporate Image Maintenance (hereinafter referred to as "SERVICE PROVIDER"), collectively referred to as the
"Parties".
WHEREAS, OCSD and SERVICE PROVIDER executed, delivered and entered into the Agreement between
OCSD and SERVICE PROVIDER, the effective date of which is January 8, 2016, with the term of the agreement
starting on February 1, 2016("the Agreement");and
WHEREAS, the Parties wish to amend the Agreement to make certain modifications which shall be called
Amendment No. 1 ("Amendment");and
WHEREAS, the Parties to the Agreement desire that this Amendment be incorporated into the Agreement
effective on February 1,2019; and
WHEREAS, the Parties desire that the Agreement as modified Change Order 1 via Purchase Order No,
105538-000 OB dated April 21, 2016, Change Order 2 to that Purchase Order dated December 6, 2016, Change
Order 3 to that Purchase Order dated January 8, 2018 and by this Amendment shall constitute the sole and entire
Agreement among the Parties;
NOW, THEREFORE, in consideration of these premises and the mutual covenants contained herein, the
Parties agree to amend the Agreement to:
1. Exercise the renewal option No. 3 of this Agreement for the period February 1, 2019 through January 31,
2020.
2. Increase the Agreement amount by Twenty-Five Thousand Nine Hundred Ninety-Nine and 621100
($25,999.62) for an amount not to exceed Three Hundred Ninety-Nine Thousand Seven Hundred Twenty and
00/100's Dollars ($399,720.00)for services identified in SERVICE PROVIDER's letter dated October 17, 2018, which
is attached hereto as Exhibit B-1 and made a part hereof.
Except as expressly amended above, the Agreement will remain unchanged and in full force and
effect.
IN WITNESS WHEREOF, intending to be legally bound, the Parties hereto have caused this Amendment
No. 1 to be signed by the duly authorized representatives as of the day and year last signed below.
Orange County Sanitation District Gamboa Services, Inc. DBA Corporate Imaae
Maintenance
By:
Contracts, Purchasing and Materials Date Date
Management Manager
Name:
David John Shawver Date
Board Chairman
Title:
Clerk of the Board Date
Amendment No. 1 Specification No. 5-2015-730-BD
032018
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
9 IS
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PLANT NO. 2 CENTRAL GENERATION STEAM TURBINE
REHABILITATION AGREEMENT WITH DRESSER-RAND
GENERAL MANAGER'S RECOMMENDATION
Approve negotiated Purchase Order Terms & Conditions with Dresser-Rand for the
assessment and standard overhaul of the Steam Turbine at Plant No. 2, in a form
approved by General Counsel.
BACKGROUND
The Orange County Sanitation District (Sanitation District) operates eight Central
Generation (Can Gen) engines manufactured by Cooper Bessemer at both treatment
plants. The engines generate approximately two-thirds of our electric demand and the
majority of the process heat demand, which is used in the solids digestion process. At
Plant No. 2, a Murray Steam Turbine is employed to take advantage of the exhaust heat
generated by the engines to convert the waste heat into electrical energy. Waste heat
recovery by the steam turbine is especially important approximately 10 months out of the
year due to the reduced heat demand of the plant. If the steam turbine is not utilized, the
excess heat cannot be captured and must be expelled to the environment.
In March 2018, the Board approved a sole source agreement with Dresser-Rand to
complete a major overhaul of the Plant No. 2 steam turbine. Following the Board's
approval, Dresser-Rand requested changes to the Sanitation District's standard Terms &
Conditions. Staff worked with General Counsel to negotiate modifications to the Terms
& Conditions acceptable to both parties.
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
• Maintain a proactive asset management program
• Use all practical and effective means for resource recovery
• Provide a safe and collegial workplace
PROBLEM
The Plant No. 2 steam turbine requires a major overhaul and has been in operation for
approximately 175,000 hours, with 70,000 hours (i.e. 8 years) transpiring since the last
overhaul. It is pertinent that a thorough assessment of the steam turbine and supporting
Page 1 of 3
safety systems is performed to identify, address, and rehabilitate any deficiencies
accordingly.
Following Board approval of a sole source agreement with Dresser-Rand to complete the
necessary overhaul, Dresser-Rand informed the Sanitation District that it would require
modifications to the Sanitation District's standard Terms & Conditions which now require
Board approval.
PROPOSED SOLUTION
Staff recommends approval of the modified agreement with Dresser-Rand to begin the
assessment and comprehensive overhaul of the steam turbine at Plant No. 2, to ensure
safe and reliable operation of the system.
TIMING CONCERNS
Without the steam turbine available, consistent steam Flow control is hampered for the
engine heat recovery system during certain operating conditions resulting in potentially
costly repairs to the engine exhaust steam boilers and emissions system components.
RAMIFICATIONS OF NOT TAKING ACTION
Failure to take action on this repair will inhibit the ability to salvage waste heat for
electricity generation, resulting in an annual cost of approximately$125,000 for additional
electricity purchases. In addition, the steam turbine helps to balance the steam system,
improving the safety and integrity of the steam system as a whole.
PRIOR COMMITTEE/BOARD ACTIONS
March 2018 - Approve a Sole Source Purchase Order to Dresser-Rand for the
assessment and standard overhaul of the Steam Turbine at Plant No. 2, for an amount
not to exceed $245,424, plus a 20% contingency.
ADDITIONAL INFORMATION
Dresser-Rand acquired the Murray Steam Turbine brand in a 2006 company acquisition.
FINANCIAL CONSIDERATIONS
The requested modifications to the Terms & Conditions do not alter the amount of the
sole source purchase order approved by the Board in March of this year.
Date of Approval Contract Amount Contingency
03/28/2018 $245,424 $49,085(20%)
Page 2 of 3
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the
complete agenda package:
• Purchase Order Terms & Conditions
Page 3 d 3
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
1. CONTRACTTERMS.
1.1 Forms/Acceptance. Except as otherwise provided in subsection 1.2 below, the complete agreement the ("Agreement") between
OCSD and Contractor (collectively, the "Parties") consists of, in order of precedence: (1)the agreed plans and specifications of the
Purchase Order, (2) the Purchase Order signed by OCSD's Purchasing Manager and Contractor (the "Purchase Order"), (3) these
terms and conditions(the"Terms and Conditions"), and (5)Contractor's bid/proposal, if any,as though fully set forth herein. To the
extent of any inconsistency between the provisions of any of the foregoing,the order of precedence shall dictate the result. Except
for any section or subsection OCSD has marked "WAIVED", each provision of the Terms and Conditions applies to the Agreement.
Contractor's shipment of goods/performance of services shall constitute acceptance of these Terms and Conditions.
1.2 Additional Terms.Any other terms,conditions,or limitations suggested by Contractor or incorporated in Contractor's invoice,or other
correspondence,shall not form a part of the Agreement unless expressly accepted in writing by OCSD's Purchasing Manager.
2. PAYMENT TERMS.
2.1 Standard, Net 30 days unless otherwise stated on the Purchase Order.
2.2 Price. Except as may otherwise be included in the Purchase Order,Contractor shall not charge for transportation,packing,containers,
storage, or any similar charge unless pre-approved by OCSD. OCSD is exempt from the payment of federal excise tax, which shall be
excluded from the purchase price.The total purchase price quoted in the Purchase Order also excludes applicable California,county and
municipal sales and use taxes or similar taxes now or hereafter applicable to, measured by, or imposed upon or with respect to the
goods, its or their sale,their value or their use, or any services performed in connection therewith. OCSD agrees to pay or reimburse
Contractor for any such taxes which Contractor or its subcontractors are required to pay.
2.3 Invoices.Contractor shall submit invoices to APstaff@msd.com or in duplicate to the Orange County Sanitation District,Attn:Accounts
Payable, 10844 Ellis Ave., Fountain Valley,CA 92708. Each invoice must show OCSD's purchase order number,description of goods and
services, unit price, quantities billed, extended totals, and shall cover only goods delivered or shipped/services performed. OCSD shall
pay for goods/services after receipt of a conforming invoice and confirmation by OCSD of its accuracy.
2.4.
3. DELIVERY/PERFORMANCE,INSPECTION.AND RISK OF LOSS.
3.1 Deliverv/Performance. Contractor shall reasonably endeavor to deliver the goods/perform the services according to the schedule
in the Agreement, with numbers of days meaning calendar days, unless otherwise stated, and to the locations specified by OCSD.
All goods shall be delivered to OCSD in accordance with the applicable delivery terms set forth in the Purchase Order (INCOTERMS
2010). All pre-approved transportation and delivery charges must be prepaid in full to destination, and the prepaid freight bill must
be submitted to OCSD with the invoice. Goods shall not be accepted if shipped C.O.D. Subject to OCSD's right of rejection, title to
goods shall pass to OCSD upon delivery at 22212 Brookhurst Street, Huntington Beach,CA 92646.
3.2 Inspection. OCSD shall have the right to inspect the goods within a reasonable amount of time prior to acceptance. If,on inspection,
OCSD reasonably determines that the goods do not meet the Agreement requirements, OCSD may reject nonconforming goods until
such nonconformance has been rectified to the reasonable satisfaction of OCSD. Prior to shipment, Contractor, if requested by OCSD,
will inform OCSD of those tests and procedures which can be witnessed. Should OCSD elect to witness specific tests, OCSD must so
specify such requirement in ample time to permit Contractor to include said witness tests in the schedule. Contractor, if requested,will
advise OCSD of the schedule of such tests. However, no rescheduling of tests or delays in manufacturing or shipment will be made to
accommodate such inspection. OCSD shall have the right M inspect services within a reasonable amount of time prior to acceptance and
payment. If OCSD does not inspect the services within a reasonable time not to exceed seven (7) business days after receipt of notice
from Contractor that the services have been completed, the services shall be deemed accepted by OCSD. If services do not conform to
the Agreement requirements,OCSD shall have the right to withhold payment or enforce any other remedy provided for in the Agreement
until the services conform to the Agreement requirements.
3.3 Risk of Loss. Risk of loss of the goods/materials passes to OCSD upon delivery in accordance with the applicable Incoterm delivery
term.
4. PERFORMANCE OF SERVICES/CONTRACTOR COVENANTS.
4.1 Personnel/Compliance with Law. All services shall be performed: (a) by competent and qualified personnel, who shall be paid at
least the prevailing rate of per diem wages,as determined by the Director of the Department of Industrial Relations, applicable to the
work to be done for the locality in which the work is to be performed, unless exempted, and (b) in conformance with applicable
federal, state and local laws. Contractor certifies that it is registered with the Department of Industrial Relations pursuant to Labor
Code section 1725.5 and shall obtain and maintain valid,permits,licenses,certificates,authorizations and other documents as required
by federal,state or local laws or regulations to be held in in Contractor's name.The persons performing services under this Agreement
on behalf of Contractor, if any, shall at all times be under Contractor's exclusive direction and control. Neither OCSD nor any of its
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
officers, employees, or agents shall have control over the conduct of Contractor or any of its officers, employees, or agents, except
as set forth in the Agreement.
4.2 Status of Contractor.The legal relationship between the parties hereto is that of an independent contractor,and nothing herein shall
be deemed to make Contractor or any subcontractor(s)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.
4.3 Taxes. Contractor shall pay and/or withhold all applicable sales, use, income, employment, or other taxes arising out of the
performance of the Agreement. Contractor shall pay all wages, salaries, and other amounts due its employees, agents or independent
contractors in connection with this Agreement and shall be responsible for all reports and obligations respecting them,including but not
limited to unemployment compensation,workers'compensation,and other similar matters.
445 Records. Contractor shall keep and maintain full and complete documentation and accounting records concerning all services
performed that are compensable on a time and material basis under the Agreement and shall make such documents and records
available to OCSD for inspection at any reasonable time to determine any amounts due for such work and/or to enable OCSD to
comply with all federal,State, and local laws and administrative actions. Contractor shall maintain such records for a period of 3 years
following completion of the work under the Agreement. All written product, data, findings, or information in any form prepared by,
assembled by, or provided to Contractor under this Agreement are the property of OCSD, including all copyrights or intellectual
property rights inherent in them or their preparation.To the extent permitted by law,it is the intent of the Parties that written products
to be produced, if any, by Contractor, under this Agreement are conclusively deemed "works made for hire" within the meaning of
the United States Copyright Act, and that OCSD will be the sole copyright owner of the deliverables, data, findings, or information,
and of all aspects,elements and components of them in which copyright can subsist,and of all rights in connection with such copyright.
All written products prepared in connection with this Agreement and any and all intellectual property rights arising from their creation,
including, but not limited to, all copyrights and other proprietary rights, shall be and remain the property of OCSD without restriction
or limitation upon their use by OCSD. OCSD's ownership entitlement arises upon payment or any partial payment for work performed
and includes ownership of any and all work product completed prior to that payment.
5. WARRANTIES.
5.1 Warranty of Title. Contractor warrants that it has title to the goods, and to the materials and equipment used in the performance of
services under the Agreement,and that none of the foregoing is subject to any security interest, lien,or other encumbrance.
5.2 Warranties for Goods/Services. Contractor warrants that: (a)the goods,and any materials and equipment supplied,will: (i) be new
unless otherwise specified, (ii)conform to OCSD's plans, specifications, and/or descriptions, as mutually agreed by the parties and (iii)
Contractor's goods be of first-class material and workmanship and free from defect until the earlier of eighteen (18) months after the
delivery of such goods or twelve(12) months from the date of first use of the item of the goods(the"Goods Warranty Period'); and (b)
all services will be: (i) of good quality,free from defect, and in conformance with the Agreement, and (ii) performed to the standard of
care that reflects competent professional knowledge and judgment, beginning with the start of the item of services and ending one(1)
year after completion of said item of services by Contractor (the"Services Warranty" Period). Contractor shall transfer to OCSD all of
Contractor's rights to and interest in the manufacturer's warranty or guarantee for each item delivered or installed, if applicable. All
manufacturers' warranties and guarantees shall be in addition to Contractor's warranty under the Agreement. In the event of a breach
of Warranty, and upon written notice from OCSD, Contractor, at its option, shall repair or replace the goods, materials and equipment
and remedy any defects in workmanship, without charge and within a reasonable period of time after receipt of OCSD's request. If
Contractor does not do so and fails to perform as required under the Goods Warranty,OCSD shall be entitled to remedy any defects itself
and to collect the reasonable and verifiable cost of the same from Contractor. If during the Services Warranty Period, Contractor is
notified in writing that any portion of the Services fails to conform to the Services Warranty, Contractor will promptly re-perform such
nonconforming portion of the Services to the reasonable satisfaction of OCSD. If re-performance is impracticable Contractor will refund
the amount of the compensation paid to Contractor for such nonconforming portion of the Services, and will reimburse OCSD for its
reasonable and verifiable costs to complete the services up to twenty percent (20%) of the total price paid to Contractor under the
Agreement. OCSD's inspection,acceptance,and/or payment shall not relieve Contractor of liability under this warranty.The remedies in
this subsection are in addition to those described in Section 6, below.
5.3 The warranties and remedies set forth in this section are conditioned upon(A)OCSD's receipt,handling,storage,installation,testing,
operation and maintenance,including tasks incident thereto,of the Goods in accordance with the recommendations of Contractor to the
extent applicable or,in the absence of such recommendations or to the extent not applicable,in in such a manner that reflects competent
professional knowledge and judgment. In addition,such goods shall not have been operated in excess of limitations specified in writing
by Contractor and not have been subjected to accident, alteration,abuse or misuse. For all warranty work,where equipment unrelated
to this Agreement may obstruct access to goods, materials, and structures OCSD shall make reasonable efforts to provide Contractor
with access to the nonconformity, by disassembling,removing,replacing and reinstalling any goods, materials or structures to the extent
necessary to permit Contractor to perform its warranty obligations.
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
5.4 THE WARRANTIES SET FORTH IN THIS ARTICLE ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER
STATUTORY, EXPRESS, OR IMPLIED (INCLUDING ALL WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE,AND ALL WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE).
6._EXPORT CONTROL.OCSD acknowledges that Contractor is required to comply with all applicable export laws and regulations relating
to the sale, exportation,transfer,assignment,disposal and usage of goods provided under this agreement, including any export license
requirements. OCSD agrees that such goods shall not at any time directly or indirectly be used,exported,sold,transferred,assigned or
otherwise disposed of in a manner which will result in non-compliance with such applicable export laws and regulations. It shall be a
condition of the continuing performance of Contractor and of its obligations hereunder that compliance with such export laws and
regulations be maintained at all times.
7. DELAY LIQUIDATED DAMAGES. In the event that delivery of any goods is delayed more than twenty-one (21) calendar days
beyond the agreed date of delivery as set forth in the Purchase Order, OCSD may assess liquidated damages for Contractor's delivery
delay. Such damages will be limited to a rate specified in each Purchase Order. ("Delay Liquidated Damages"). Contractors exclusive
liability and OCSD's sole and exclusive remedy for delay in delivery of the goods caused by Contractor shall be the payment of Delay
Liquidated Damages as set forth herein, and no other remedies of any kind whatsoever shall apply whether based in contract, in tort
(including negligence and strict liability) or any other theory of recovery. It is agreed by both parties that the aforementioned damages
for delivery would be difficult to quantify as such the parties have fairly agreed that these damages are a reasonable estimate and do
not constitute a penalty.
There are no guarantees relating to the completion date of any services unless specifically set forth in the Purchase Order. In the event
any performance guarantees are provided in the Purchase Order,OCSD's sole and exclusive remedy and Contractor's sole and exclusive
liability for any unexcused failure of the Contractor to complete the services beyond the agreed date of completion as set forth in the
Purchase Order,any theory of recovery,shall be the liquidated damages specified in such Purchase Order up to the limit specified therein.
It is agreed by both parties that the aforementioned damages for completion of the services would be difficult to quantify,and as such,
the parties have fairly agreed that these damages are a reasonable estimate and do not constitute a penalty.
8. CONTRACTOR'S REMEDIES. If OCSD defaults under the Agreement, Contractor may file a claim with OCSD, in accordance with
applicable provisions of law.
9. CONFIDENTIALITY.Contractor may have a proprietary interest in information that may be furnished pursuant to this agreement.
To the extent permitted by law,OCSD will keep in confidence and will not disclose any such information which is specifically designated
as confidential to Contractor or use any such information for other than the purpose for which it is supplied without the prior written
permission of Contractor. The provisions of this paragraph shall not apply to information, notwithstanding any confidential designation
thereof,which is known to OCSD without any restriction as to disclosure or use at the time it is furnished,which is or becomes generally
available to the public without breach of any confidentiality obligation of OCSD,which is received from a third party without limitation or
restriction on said third party or OCSD at the time of disclosure.Additionally,OCSD's rights to any confidential or proprietary information
shall be limited solely to the use in operation,repair and/or maintenance of the designated project.At no time will any permanent transfer
of title be created for any technical drawings or intellectual property,nor shall any of this specifically designated information be disclosed
other than for the above stated purposes.Contractor acknowledges that OCSD is a public agency subject to compliance with the California
Public Records Act. Should OCSD receive a California Public Records Act request that pertains to documents related to this Agreement,
OCSD will notify Contractor who may then choose to intercede to prevent disclosure of confidential information not otherwise protected
by the California Public Records Act.
10.TERMINATION FOR CONVENIENCE AND DEFAULT
8.1. Termination for Convenience. OCSD, in its sole and absolute discretion, may terminate the Agreement, in whole or in part, at any
time, without cause, by providing thirty(30)days'written notice to Contractor. In such case, Contractor shall immediately discontinue
all work(unless the notice directs otherwise). Further, should the work be delayed for a period in excess of 180 days for any reason
attributable to force majeure,the Agreement may be deemed to have been terminated at the option of either Party. Should either Party
opt to terminate the Agreement, Contractor shall be entitled only to payment for such goods, materials and equipment delivered and
services performed,and reasonable,documented costs related to termination as may be demonstrated by Contractor, including but not
limited to manufacturing costs for materials and/or components that cannot be used for another reasonably foreseeable purpose or
otherwise returned.
8.2. Termination for Default. (A) OCSD may terminate the Agreement based on the Contractors default. If Contractor (i) materially
breaches any provision of this Agreement and if such breach is not commenced to be cured within ftteen(15)days after receiving written
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
notice from OCSD specifying such breach in reasonable detail, or(ii) in the event of an act of insolvency or bankruptcy by Contractor
then OCSD shall have the right to terminate the Agreement by giving written notice to Contractor at which time termination shall be
effective immediately. Upon termination for default,OCSD may exclude Contractor from all OCSD sites; take possession of all materials,
equipment, tools, and equipment and machinery owned by the Contractor and remaining on OCSD sites; accept assignment of any
subcontracts that 01 desires to keep and complete the work by whatever reasonable method it deems expedient. In the event the
Agreement is terminated for default,OCSD is entitled to recover excess re-procurement costs and delay damages,among other remedies.
Contractor may also terminate the Agreement for cause in the event of a material breach of the Agreement by OCSD which OCSD fails
to commence to cure within fifteen(15)days after notice thereof from Contractor and fails to diligently purwe thereafter.In such event,
Contractor shall be entitled only to payment for such goods,materials and equipment delivered and services performed,and reasonable,
documented costs related to termination as may be demonstrated by Contractor, including but not limited to manufacturing costs for
materials and/or components that cannot be used for another reasonably foreseeable purpose or otherwise returned.
11.INDEMNIFICATION/DUTY TO DEFEND.
Contractor shall assume all responsibility for damages to third party property and/or injuries to persons, including accidental death,to
the extent such damages, injuries, or death are caused by Contractor in the performance of services under this Agreement, or by its
subcontractor or by anyone directly or indirectly employed by Contractor, and whether such damage or injury shall accrue or be
discovered before or after the termination of the Agreement. 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 third parry property or interference with
the use of such third party property to the extent such damages injuries or death are caused by the negligent acts or omissions of
Contractor;and/or(b)on account of any goods and services provided under this Agreement,Contractor will,at its own expense,defend
or at its option settle any suit or proceeding brought against OCSD so far as based on an allegation that any services, or use thereof
for their intended purpose,constitutes an infringement of any United States patent or copyright or misappropriation of a trade secret.
In case the services, or any part thereof, as a result of any suit or proceeding so defended is held to constitute infringement of any
such United States patent,copyright or trade secret,or its use by OCSD is enjoined, Contractor will,at its option and its own expense,
either: (i) procure for OCSD the right to continue using said services; (if) replace the work with substantially equivalent non-infringing
work;or(iii)modify the work so it becomes non-infringing. Contractor will pay the damages and costs awarded in any wit or proceeding
so defended. Contractor will not be responsible for any settlement of such suit or proceeding made without its prior written consent.
This indemnification provision shall apply to any acts or omissions, willful misconduct, or negligent misconduct, whether active or
passive, on the part of Contractor or anyone employed by or working under Contractor. If Contractor is promptly given information,
and assistance in a timely manner for the defense of any suit or proceeding, Contractor agrees to provide this defense immediately
upon written notice from OCSD, and with well qualified, adequately insured, and experienced legal counsel.This section shall survive
the expiration or early termination of the Agreement.
12. GENERAL PROVISIONS.
12.1 Notice. Notice shall be given by certified mail, return receipt requested, facsimile or other electronic telecommunications
transmission with a date and time receipt acknowledgment,or personal delivery. Notice shall be effective on receipt.
12.2 Nondiscrimination. Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations in regard
to nondiscrimination in employment because of race,color,ancestry,national origin,religion,sex, marital status,age, medical condition,
pregnancy,disability,or other prohibited basis.All nondiscrimination rules or regulations required by law to be included in the Agreement
are incorporated by this reference.
12.3 Force Maieure. Neither party shall be liable for any delay or failure in the performance of the Agreement to the extent the
delay or failure is caused by circumstances beyond the reasonable control of the parties, including but not limited to labor disputes,
strikes,war, riots,insurrection,civil commotion,fire,flood,accident,storm or any Act of God.
12.4 Assignment Except with respect to any of Contractor's affiliates, neither party may assign a right under or an interest in the
Agreement nor delegate or subcontract an obligation under the Agreement, without the written consent of the other party(consent of
which shall not be unreasonably withheld).Any attempted assignment,delegation or subcontract,without such written consent,shall be
void.
12.5 No Waiver or Excuse. No provision of the Agreement shall be deemed waived and no breach shall be deemed excused,
unless such waiver or excuse is in writing and signed by the party making the waiver or excusing the breach. No such waiver or excuse
shall constitute a waiver of another provision, or an excuse of another breach.
12.6 Applicable Law/Venue/Attorni Fees. The Agreement shall be governed by, and construed in accordance with, the laws of
the State of California. Any action or proceeding for dispute resolution arising out of the Agreement shall be brought and tried in the
County of Orange, State of California, and the prevailing party shall be entitled to reasonable attorneys'fees, costs and expenses. The
parties shall attempt in good faith to resolve such dispute promptly by negotiations between executives who have authority to settle the
dispute, subject to approval by OCSD's Board of Directors. Any trial of any dispute not so settled will be resolved by a judge sitting
without a jury and EACH PARTY EXPRESSLY WAIVES ITS RIGHT TO A JURY TRIAL.
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
12.7 Construction and Severability. To the fullest extent allowed by law, the provisions of the Agreement shall be construed in a
manner that avoids any violation of statute,ordinance,regulation,or law. If a court of competent jurisdiction holds any provision of the
Agreement to be void,the remaining provisions shall continue in full force and effect.
12.8 Chance Order. OCSD may request change orders within the scope of the Agreement and, if accepted by Contractor,the price,
performance, schedule and other pertinent provisions of the Agreement will be adjusted by mutual agreement of the parties prior to
implementation of the change. Expenses incurred by Contractor due to(i)delays,other than delays which are deemed to be within the
reasonable control of the Contractor,and Ili)changes in applicable laws,regulations and technical codes and standards or the imposition
of new laws, regulations and/or technical codes and standards after the execution of this Agreement will be treated as changes to the
scope of work and the Agreement will be adjusted as set forth above.
12.8 Hazardous Materials. Contractor shall have no responsibility or liability with regard to any hazardous material which it does not
know or have reason to know of its existence in the performance of the work and OCSD shall be responsible for all pollution and
environmental impairment arising from the property,the equipment and the services other than for any such hazardous materials which
Contractor may have brought onsite which it may suddenly and accidently release. In the event that any such hazardous materials,
including any asbestos materials, are discovered at the site, Contractor shall have the right to suspend the work in progress, without
consequence, until such time as the hazard has been safely remediated or contained by OCSD.
13. INSURANCE AND BOND REQUIREMENTS. Before beginning work under the Agreement, Contractor shall accept the terms
provided in OCSD's Acknowledgement of Insurance Requirements and shall provide OCSD with:
13.1 Such bonds, insurance and certificates of insurance, as set forth in 13.2.
13.2 If not described in 11.1, (1) Certificates of commercial general liability, automobile liability, employers liability and workers
compensation insurance in the following amounts: CGL($10,000,000 each occurrence and in the aggregate), Automobile ($10,000,000
combined single limit bodily injury and property damage), Employer's Liability ($1,000,000 each accident and in the aggregate, and
$1,000,000 disease each employee),Worker's Compensation (Statutory amount); (2)Insurance policy endorsements showing additional
insured coverage for OCSD(for general and automobile liability), as well as waivers of subrogation in favor of OCSD with regard to all
policies described above provided, however, that such additional insured status shall apply to the extent of Contractor's indemnity
obligations under Article 11.Subject to a change order for the additional costs of any bond,OCSD may request that Contractor procure
labor and materials bonds, reasonably satisfactory to OCSD. All such insurance and bonds must remain in effect throughout the
performance of the Agreement.In addition,all bonds must be issued by a qualified corporate surety licensed to do business in the State
of California and all insurance carriers must have an A-(A minus),or better, policy holder's rating and a financial rating of Class VIII,or
better,in accordance with the most current AM Best rating.All sureties and insurers must have agents for service of process in California.
14. SAFETY AND HUMAN RESOURCES POLICIES: Contractors who perform work for OCSD must comply with OCSD Safety
Standards. A digital version of OCSD's Safety Standards is available on the OCSD website at www.ocsd.com. A printed version of the
Safety Standards will be made available only upon request.
15. LIMITATION OF LIABILITY: NOTWITHSTANDING ANY OTHER PROVISION OF THE AGREEMENT, OCSD EXPRESSLY AGREES
THAT NEITHER CONTRACTOR NOR ITS SUBCONTRACTORS WILL UNDER ANY CIRCUMSTANCES BE LIABLE UNDER ANY THEORY OF
RECOVERY, WHETHER BASED IN CONTRACT, IN TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR
OTHERWISE,FOR ANY SPECIAL,INDIRECT,INCIDENTAL OR CONSEQUENTIAL LOSS OR DAMAGE WHATSOEVER; DAMAGE TO OR LOSS
OF ANY PROPERTY OR EQUIPMENT, LOSS OF PROFITS OR REVENUE OR LOSS OF USE THEREOF; LOSS OF USE OF OCSD'S MATERIAL,
EQUIPMENT OR POWER SYSTEM; COST OF CAPITAL: COST OF FUEL; COST OF PURCHASED OR REPLACEMENT POWER; INCREASED
COSTS OF ANY KIND;OR ANY CLAIMS OF CUSTOMERS OF 005D.
OCSD EXPRESSLY AGREES THAT THE REMEDIES PROVIDED IT IN THE AGREEMENT ARE EXCLUSIVE,AND THAT NOTWITHSTANDING
ANY OTHER PROVISION OF THE AGREEMENT, EXCEPT FOR CONTRACTOR'S OBLIGATIONS UNDER ARTICLES 9., 11.(a) AND 11(b)
HEREIN,UNDER NO CIRCUMSTANCES SHALL THE TOTAL AGGREGATE LIABILITY OF CONTRACTOR UNDER ANY THEORY OF RECOVERY,
WHETHER BASED IN CONTRACT, IN TORT(INCLUDING NEGLIGENCE AND STRICT LIABILITY), UNDER WARRANTY, OR OTHERWISE,
EXCEED THE FOLLOWING AMOUNTS:
Order Value Liability Amount
Up to$300,000 Three times the Purchase Order amount
$300,001 -$500,000 Two times the Purchase Order amount
$500,001 -and above The Order amount
1343169.1
ORANGE COUNTY SANITATION DISTRICT (OCSD) - PURCHASE ORDER TERMS AND CONDITIONS
ALL LIABILITY OF CONTRACTOR AND ITS SUBCONTRACTORS UNDER THIS AGREEMENT SHALL TERMINATE NO LATER THAN TWELVE
(12) MONTHS AFTER THE EXPIRATION OF THE WARRANTY PERIOD. THE PROVISIONS OF THIS ARTICLE SHALL PREVAIL OVER ANY
CONFLICTING OR INCONSISTENT PROVISIONS SET FORTH ELSEWHERE IN THE AGREEMENT.
1343169.1
OPERATIONS COMMITTEE Meeting Date TOBE.Or .Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
0 16
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Professional Construction Services Agreement with Brown and
Caldwell to provide construction support services for Ocean Outfall System
Rehabilitation, Project No. J-117, Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $8,563,913; and
B. Approve a contingency of$856,391 (10%).
BACKGROUND
Ocean Outfall System Rehabilitation, Project No. J-117, has two construction contracts.
The second and final construction contract is the Outfall Low Flow Pump Station, Contract
No. J-117B, which will construct a new Outfall Low Flow Pump Station and rehabilitate
the existing Ocean Outfall Booster Station. The contract also includes construction of a
new Plant Water Pump Station required to separate reclaimable and non-reclaimable
flows to support the Orange County Water District's reclamation of Plant No. 2 effluent,
and construction of Supervisory Control and Data Acquisition (SCADA) System and
Network Upgrades.
The design of this work has been completed by Brown and Caldwell under a Professional
Design Services Agreement for Project Nos. J-117 and P2-107.
RELEVANT STANDARDS
• Comply with California Government Code Section 4526, select the "best qualified
firm" and "negotiate fair and reasonable fees"
PROBLEM
The Orange County Sanitation District (Sanitation District) requires the services of the
design consultant during construction of Outfall Low Flow Pump Station, Contract
No. J-117B, which is scheduled to be awarded in December 2018.
PROPOSED SOLUTION
Award a Professional Construction Services Agreement to provide engineering support
services during construction. The proposed services will be provided on an as-needed
Page 1 of 3
basis and includes submittal review, answering Contractor's requests for information,
reviewing contract document modifications, reviewing construction change orders,
participating in progress meetings, site visits, preparing record drawings, and assisting in
the closeout of the project.
TIMING CONCERNS
The construction contract for the Outfall Low Flow Pump Station, Contract No. J-117B, is
recommended to be awarded at the December 2018 Board of Directors meeting. The
requested engineering support services will be needed at the start of construction.
RAMIFICATIONS OF NOT TAKING ACTION
Engineering support services needed to facilitate and review construction activities will
not be available, which may negatively impact the project execution.
PRIOR COMMITTEE/BOARD ACTIONS
September 2018 - Approved a contingency increase of $677,801 (10%) to the
Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall
System Rehabilitation, Project No. J-117, for a total contingency of$4,405,708 (65%).
September 2017 - Approved a contingency increase of $677,801 (10%) to the
Professional Design Services Agreement with Brown and Caldwell for Ocean Outfall
System Rehabilitation, Project No. J-117, for a total contingency of$3,727,907 (55%).
November 2016 -Approved a budget increase of$28,517,000 for Ocean Outfall System
Rehabilitation, Project No. J-117, fora total budget amount of$91,000,000, and approved
a contingency increase of $2,372,305 (35%) to the Professional Design Services
Agreement with Brown and Caldwell for Ocean Outfall System Rehabilitation, Project
No. J-117, for a total contingency of$3,050,106 (45%).
February 2015 - Approved a Professional Design Services Agreement with Brown and
Caldwell to provide engineering design services for an amount not to exceed $6,778,015
and approved a contingency of$677,801 (10%).
ADDITIONAL INFORMATION
Brown and Caldwell has successfully furnished engineering services for the design of
both Ocean Outfall System Rehabilitation, Project No. J-117, and SCADA System and
Network Upgrades, Project No. P2-107, and their support services during construction
will provide continuity through the completion of both projects. Construction of SCADA
System and Network Upgrades, Project No. P2-107, has been incorporated into Ouffall
Low Flow Pump Station, Contract No. J-117B.
Staff negotiated with Brown and Caldwell for these support services in accordance with
the Sanitation District's adopted policies and procedures. A review of the proposed price
Page 2 of 3
was conducted using estimated quantities of requests for information, submittals,
meetings, site visits, change order review, and design revisions, as well as the level of
effort for preparing record drawings. Based on this review, staff determined the
negotiated fee to be fair and reasonable for these services.
CEQA
An Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting
Program for the Outfall Low Flow Pump Station, Contract No. J-117B, was adopted by
the Board on September 27, 2017. The Notice of Determination was filed with the Orange
County Clerk-Recorder on October 2, 2017.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Fiscal Year 2018-19 and 2019-20 Budget,
Section 8, Page 37) and the budget is sufficient for this action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the
complete agenda package:
• Professional Construction Services Agreement
• PowerPoint Presentation from 12/5/18 Operations Committee meeting
VP:dm:gc
Page 3 of 3
PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT
THIS AGREEMENT, is made and entered into to be effective the 19" day of December,
2018 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to
as "SANITATION DISTRICT', and BROWN AND CALDWELL, for purposes of this Agreement
hereinafter referred to as "CONSULTANT".
WITNESSETH:
WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide
Construction Support Services for Contract No. J-117B, Outfall Low Flow Pump Station;
and,
WHEREAS, CONSULTANT is qualified to provide the necessary services for
Construction Support Services in connection with these requirements; and,
WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with
the SANITATION DISTRICT's Purchasing Ordinance Section 4.03(B)for the continuation of
services and has proceeded in accordance with said procedures to perform this work; and,
WHEREAS, at its regular meeting on December 19, 2018 the Board of Directors, by
Minute Order, accepted the recommendation of the Operations Committee pursuant to
SANITATION DISTRICT's Purchasing Ordinance to approve this Agreement between the
SANITATION DISTRICT and CONSULTANT.
NOW, THEREFORE, in consideration of the promises and mutual benefits, which will
result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows:
1. SCOPE OF WORK
CONSULTANT agrees to furnish necessary professional and technical services to
accomplish those project elements outlined in the Scope of Work attached hereto as
Attachment"A", and by this reference made a part of this Agreement.
A. The CONSULTANT shall be responsible for the professional quality, technical
accuracy, completeness, and coordination of all design, drawings, specifications,
and other services furnished by the CONSULTANT under this Agreement,
including the work performed by its Subconsultants. Where approval by the
SANITATION DISTRICT is indicated, it is understood to be conceptual approval
only and does not relieve the CONSULTANT of responsibility for complying with
all laws, codes, industry standards and liability for damages caused by errors,
omissions, noncompliance with industry standards, and/or negligence on the part
of the CONSULTANT or its Subconsultants.
B. CONSULTANT is responsible for the quality of work prepared under this
Agreement and shall perform its work in accordance with engineering standards
in effect for clarity, uniformity, and completeness.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 1 of 18
C. In the event that work is not performed to the satisfaction of the SANITATION
DISTRICT and does not conform to the requirements of this Agreement or any
applicable industry standards, the CONSULTANT shall, without additional
compensation, promptly correct or revise any errors or deficiencies in its designs,
drawings, specifications, or other services within the timeframe specified by the
Project Engineer/Project Manager. The SANITATION DISTRICT may charge to
CONSULTANT all costs, expenses and damages associated with any such
corrections or revisions.
D. All CADD drawings, figures, and other work shall be produced by CONSULTANT
and its Subconsultants using the SANITATION DISTRICT standard software.
Conversion of CADD work from any other non-standard CADD format to the
SANITATION DISTRICT format shall not be acceptable in lieu of this
requirement.
Electronic files shall be subject to an acceptance period of thirty (30)calendar
days during which the SANITATION DISTRICT shall perform appropriate
acceptance tests. CONSULTANT shall correct any discrepancies or errors
detected and reported within the acceptance period at no additional cost to the
SANITATION DISTRICT.
E. All professional services performed by the CONSULTANT, including but not
limited to all drafts, data, correspondence, proposals, reports, and estimates
compiled or composed by the CONSULTANT, pursuant to this Agreement, are
for the sole use of the SANITATION DISTRICT, its agents and employees.
Neither the documents nor their contents shall be released to any third party
without the prior written consent of the SANITATION DISTRICT. This provision
does not apply to information that (a)was publicly known, or otherwise known to
the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the
SANITATION DISTRICT, (b)subsequently becomes publicly known to the
CONSULTANT other than through disclosure by the SANITATION DISTRICT.
2. COMPENSATION
Total compensation shall be paid to CONSULTANT for services in accordance with the
following provisions:
A. Total Compensation
Total compensation shall be in an amount not to exceed Eight Million Five
Hundred Sixty-Three Thousand Nine Hundred Thirteen Dollars
($8,563,913.00). Total compensation to CONSULTANT including burdened labor
(salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees
and costs shall not exceed the sum set forth in Attachment"E" - Fee Proposal.
B. Labor
As a portion of the total compensation to be paid to CONSULTANT, the
SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the
burdened salaries (salaries plus benefits)actually paid by CONSULTANT
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 2 of 18
charged on an hourly-rate basis to this project and paid to the personnel of
CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT
shall provide the SANITATION DISTRICT with certified payroll records of all
employees' work that is charged to this project.
C. Overhead
As a portion of the total compensation to be paid to CONSULTANT, the
SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants
for overhead at the rate equal to the percentage of burdened labor as specified in
Attachment"E"- Fee Proposal.
D. Profit
Profit for CONSULTANT and Subconsultants shall be a percentage of consulting
services fees (Burdened Labor and Overhead). When the consulting or
subconsulting services amount is $250,000 or less, the maximum Profit shall be
10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by
a straight declining percentage between 10% and 5%. For consulting or
subconsulting services fees with a value greater than $2,500,000, the maximum
Profit shall be 5%. Addenda shall be governed by the same maximum Profit
percentage after adding consulting services fees.
As a portion of the total compensation to be paid to CONSULTANT and
Subconsultants, the SANITATION DISTRICT shall pay profit for all services
rendered by CONSULTANT and Subconsultants for this project according to
Attachment"E"- Fee Proposal.
E. Subconsultants
For any Subconsultant whose fees for services are greater than or equal to
$100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to
Subconsultant total compensation in accordance with the Subconsultant amount
specified in Attachment"E"- Fee Proposal.
For any Subconsultant whose fees for services are less than $100,000,
CONSULTANT may pay to Subconsultant total compensation on an hourly-rate
basis per the attached hourly rate Schedule and as specified in the Scope of
Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs
of Subconsultant fees and charges in an amount not to exceed the sum set forth
in Attachment"E"- Fee Proposal.
F. Direct Costs
The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants
the actual costs of permits and associated fees, travel and licenses for an
amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The
SANITATION DISTRICT shall also pay to CONSULTANT actual costs for
equipment rentals, leases or purchases with prior approval of the SANITATION
DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 3 of 18
DISTRICT receipts and other documentary records to support CONSULTANT's
request for reimbursement of these amounts, see Attachment"D"—Allowable
Direct Costs. All incidental expenses shall be included in overhead pursuant to
Section 2 -COMPENSATION above.
G. Other Direct Costs
Other Direct Costs incurred by CONSULTANT and its Contractor due to
modifications in the Scope of Work resulting from field investigations and field
work required by contract. These items may include special equipment, test
equipment and tooling and other materials and services not previously identified.
Refer to Attachment"D"Allowable Direct Costs for payment information.
H. Reimbursable Direct Costs
The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable
travel and business expenses as described in this section and further described in
Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of
the above mentioned expenses will be based on an "accountable plan" as
considered by Internal Revenue Service (IRS). The plan includes a combination of
reimbursements based upon receipts and a "per diem" component approved by
IRS. The most recent schedule of the per diem rates utilized by the SANITATION
DISTRICT can be found on the U.S. General Service Administration website at
htto://www.gsa.gov/portal/category/104711#.
The CONSULTANT shall be responsible for the most economical and practical
means of management of reimbursable costs inclusive but not limited to travel,
lodging and meals arrangements. The SANITATION DISTRICT shall apply the
most economic and practical method of reimbursement which may include
reimbursements based upon receipts and/or"per diem" as deemed the most
practical.
CONSULTANT shall be responsible for returning to the SANITATION DISTRICT
any excess reimbursements after the reimbursement has been paid by the
SANITATION DISTRICT.
Travel and Travel Arrangements—Any travel involving airfare, overnight stays or
multiple day attendance must be approved by the SANITATION DISTRICT in
advance.
Local Travel is considered travel by the CONSULTANT within the SANITATION
DISTRICT general geographical area which includes Orange, Los Angeles,
Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties.
Automobile mileage is reimbursable if CONSULTANT is required to utilize
personal vehicle for local travel.
Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for
local travel. However, under certain circumstances overnight stay may be allowed
at the discretion of the SANITATION DISTRICT based on reasonableness of
meeting schedules and the amount of time required for travel by the
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 4 of 18
CONSULTANT. Such determination will be made on a case-by-case basis and at
the discretion of the SANITATION DISTRICT.
Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meal
reimbursements. Per diem rates shall be applied to meals that are appropriate for
travel times. Receipts are not required for the approved meals.
Additional details related to the reimbursement of the allowable direct costs are
provided in the Attachment"D"-Allowable Direct Costs of this Agreement.
I. Limitation of Costs
If, at any time, CONSULTANT estimates the cost of performing the services
described in CONSULTANT's Proposal will exceed the not-to-exceed amount of
the Agreement, including approved additional compensation, CONSULTANT
shall notify the SANITATION DISTRICT immediately, and in writing. This written
notice shall indicate the additional amount necessary to complete the services.
Any cost incurred in excess of the approved not-to-exceed amount, without the
express written consent of the SANITATION DISTRICT's authorized
representative shall be at CONSULTANT's own risk. This written notice shall be
provided separately from, and in addition to any notification requirements
contained in the CONSULTANT's invoice and monthly progress report. Failure to
notify the SANITATION DISTRICT that the services cannot be completed within
the authorized not-to-exceed amount is a material breach of this Agreement.
3. REALLOCATION OF TOTAL COMPENSATION
The SANITATION DISTRICT, by its Director of Engineering, shall have the right to
approve a reallocation of the incremental amounts constituting the total compensation,
provided that the total compensation is not increased.
4. PAYMENT
A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed
breakdown of costs associated with the performance of any corrections or
revisions of the work for that invoicing period. CONSULTANT shall allocate costs
in the same manner as it would for payment requests as described in this section
of the Agreement. CONSULTANT shall warrant and certify the accuracy of these
costs and understand that submitted costs are subject to Section 11 -AUDIT
PROVISIONS.
B. CONSULTANT may submit monthly or periodic statements requesting payment
for those items included in Section 2- COMPENSATION hereof in the format as
required by the SANITATION DISTRICT. Such requests shall be based upon the
amount and value of the work and services performed by CONSULTANT under
this Agreement and shall be prepared by CONSULTANT and accompanied by
such supporting data, including a detailed breakdown of all costs incurred and
project element work performed during the period covered by the statement, as
may be required by the SANITATION DISTRICT.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 5 of 18
Upon approval of such payment request by the SANITATION DISTRICT,
payment shall be made to CONSULTANT as soon as practicable of one hundred
percent (100%)of the invoiced amount on a per-project-element basis.
If the SANITATION DISTRICT determines that the work under this Agreement or
any specified project element hereunder, is incomplete and that the amount of
payment is in excess of:
i. The amount considered by the SANITATION DISTRICT's Director of
Engineering to be adequate for the protection of the SANITATION DISTRICT; or
ii. The percentage of the work accomplished for each project element.
The Director of Engineering may, at his or her discretion, retain an amount equal
to that which insures that the total amount paid to that date does not exceed the
percentage of the completed work for each project element or the project in its
entirety.
C. CONSULTANT may submit periodic payment requests for each 30-day period of
this Agreement for the profit as set forth in Section 2 -COMPENSATION above.
Said profit payment request shall be proportionate to the work actually
accomplished to date on a per-project-element basis. In the event the
SANITATION DISTRICT's Director of Engineering determines that no satisfactory
progress has been made since the prior payment, or in the event of a delay in the
work progress for any reason, the SANITATION DISTRICT shall have the right to
withhold any scheduled proportionate profit payment.
D. Upon satisfactory completion by CONSULTANT of the work called for under the
terms of this Agreement, and upon acceptance of such work by the SANITATION
DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for
such work, including any retained percentages relating to this portion of the work.
E. Upon satisfactory completion of the work performed hereunder and prior to final
payment under this Agreement for such work, or prior settlement upon
termination of this Agreement, and as a condition precedent thereto,
CONSULTANT shall execute and deliver to the SANITATION DISTRICT a
release of all claims against the SANITATION DISTRICT arising under or by
virtue of this Agreement other than such claims, if any, as may be specifically
exempted by CONSULTANT from the operation of the release in stated amounts
to be set forth therein.
F. Pursuant to the California False Claims Act (Government Code Sections 12650-
12655), any CONSULTANT that knowingly submits a false claim to the
SANITATION DISTRICT for compensation under the terms of this Agreement
may be held liable for treble damages and up to a Ten Thousand Dollars
($10,000) civil penalty for each false claim submitted. This section shall also be
binding on all Subconsultants.
A CONSULTANT or Subconsultant shall be deemed to have submitted a false
claim when the CONSULTANT or Subconsultant: a) knowingly presents or
causes to be presented to an officer or employee of the SANITATION DISTRICT
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 6 of 18
a false claim or request for payment or approval; b) knowingly makes, uses, or
causes to be made or used a false record or statement to get a false claim paid
or approved by the SANITATION DISTRICT; c) conspires to defraud the
SANITATION DISTRICT by getting a false claim allowed or paid by the
SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or
used a false record or statement to conceal, avoid, or decrease an obligation to
the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission
of a false claim to the SANITATION DISTRICT, and fails to disclose the false
claim to the SANITATION DISTRICT within a reasonable time after discovery of
the false claim.
S. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION
AND RECORD OF WAGES
A. To the extent CONSULTANT's employees and/or Subconsultants who will
perform work during the design and preconstruction phases of a construction
contract for which Prevailing Wage Determinations have been issued by the DIR
and as more specifically defined under Labor Code Section 1720 at sec,
CONSULTANT and Subconsultants shall comply with the registration
requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section
1771.4, the work is subject to compliance monitoring and enforcement by the
DIR.
B. The CONSULTANT and Subconsultants shall maintain accurate payroll records
and shall comply with all the provisions of Labor Code Section 1776, and shall
submit payroll records to the Labor Commissioner pursuant to Labor Code
Section 1771.4(a) (3). Penalties for non-compliance with the requirements of
Section 1776 may be deducted from progress payments per Section 1776.
C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants
shall furnish a copy of all certified payroll records to the SANITATION DISTRICT
and/or general public upon request, provided the public request is made through
the SANITATION DISTRICT, the Division of Apprenticeship Standards or the
Division of Labor Enforcement of the Department of Industrial Relations.
D. The CONSULTANT and Subconsultants shall comply with the job site notices
posting requirements established by the Labor Commissioner per Title 8,
California Code of Regulations Section 16461(e).
6. DOCUMENT OWNERSHIP —SUBSEQUENT CHANGES TO PLANS AND
SPECIFICATIONS
A. Ownership of Documents for the Professional Services performed.
All documents, including but not limited to, original plans, studies, sketches,
drawings, computer printouts and disk files, and specifications prepared in
connection with or related to the Scope of Work or Professional Services, shall
be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's
ownership of these documents includes use of, reproduction or reuse of and all
incidental rights, whether or not the work for which they were prepared has been
performed. The SANITATION DISTRICT ownership entitlement arises upon
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 7 of 18
payment or any partial payment for work performed and includes ownership of
any and all work product completed prior to that payment. This section shall
apply whether the CONSULTANT's Professional Services are terminated: a) by
the completion of the Agreement, or b) in accordance with other provisions of this
Agreement. Notwithstanding any other provision of this paragraph or Agreement,
the CONSULTANT shall have the right to make copies of all such plans, studies,
sketches, drawings, computer printouts and disk files, and specifications.
B. CONSULTANT shall not be responsible for damage caused by subsequent
changes to or uses of the plans or specifications, where the subsequent changes
or uses are not authorized or approved by CONSULTANT, provided that the
service rendered by CONSULTANT was not a proximate cause of the damage.
7. INSURANCE
A. General
i. Insurance shall be issued and underwritten by insurance companies
acceptable to the SANITATION DISTRICT.
ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial
Rating of at least Class Vill, or better, in accordance with the most current
A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept
State Compensation Insurance Fund, for the required policy of Worker's
Compensation Insurance subject to the SANITATION DISTRICT's option to
require a change in insurer in the event the State Fund financial rating is
decreased below"B". Further, the SANITATION DISTRICT will require
CONSULTANT to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20) days of
written notice to CONSULTANT, by the SANITATION DISTRICT or its agent.
III. Coverage shall be in effect prior to the commencement of any work under
this Agreement.
B. General Liability
The CONSULTANT shall maintain during the life of this Agreement, including the
period of warranty, Commercial General Liability Insurance written on an
occurrence basis providing the following minimum limits of liability coverage: Two
Million Dollars ($2,000,000) per occurrence with Two Million Dollars ($2,000,000)
aggregate. Said insurance shall include coverage for the following hazards:
Premises-Operations, blanket contractual liability (for this Agreement), products
liability/completed operations (including any product manufactured or assembled),
broad form property damage, blanket contractual liability, independent contractors
liability, personal and advertising injury, mobile equipment, vicarious liability, and
cross liability and severability of interest clauses. A statement on an insurance
certificate will not be accepted in lieu of the actual additional insured
endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU
coverage (Explosion, Collapse and Underground)and Riggers/On Hook Liability
must be included in the General Liability policy and coverage must be reflected on
the submitted Certificate of Insurance.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 8 of 18
C. Umbrella Excess Liability
The minimum limits of General Liability and Automotive Liability Insurance
required, as set forth herein, shall be provided for through either a single policy of
primary insurance or a combination of policies of primary and umbrella excess
coverage. Umbrella excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits
for general liability and automotive liability.
D. AutomotiveNehicle Liability Insurance
The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a
comprehensive form covering all owned, non-owned, and hired automobiles,
trucks, and other vehicles providing the following minimum limits of liability
coverage: Combined single limit of One Million Dollars ($1,000,000) or
alternatively, One Million Dollars ($1,000,000) per person for bodily injury and
One Million Dollars ($1,000,000) per accident for property damage. A statement
on an insurance certificate will not be accepted in lieu of the actual additional
insured endorsement.
E. Drone Liability Insurance
If a drone will be used, Drone Liability Insurance must be maintained by
CONSULTANT in the amount of One Million Dollars ($1,000,000) in a form
acceptable to the SANITATION DISTRICT.
F. Worker's Compensation Insurance
The CONSULTANT shall provide such Workers' Compensation Insurance as
required by the Labor Code of the State of California in the amount of the
statutory limit, including Employer's Liability Insurance with a minimum limit of
One Million Dollars ($1,000,000) per occurrence. Such Workers' Compensation
Insurance shall be endorsed to provide for a waiver of subrogation in favor of the
SANITATION DISTRICT. A statement on an insurance certificate will not be
accepted in lieu of the actual endorsements unless the insurance carrier is State
of California Insurance Fund and the identifier'SCIF° and endorsement numbers
2570 and 2065 are referenced on the certificate of insurance. If an exposure to
Jones Act liability may exist, the insurance required herein shall include coverage
for Jones Act claims.
G. Errors and Omissions/Professional Liability
CONSULTANT shall maintain in full force and effect, throughout the term of this
Agreement, standard industry form professional negligence errors and omissions
insurance coverage in an amount of not less than Five Million Dollars
($5,000,000)with limits in accordance with the provisions of this paragraph. If the
policy of insurance is written on a "claims made" basis, said policy shall be
continued in full force and effect at all times during the term of this Agreement,
and for a period of five (5)years from the date of the completion of the services
hereunder.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 9 of 18
In the event of termination of said policy during this period, CONSULTANT shall
obtain continuing insurance coverage for the prior acts or omissions of
CONSULTANT during the course of performing services under the term of this
Agreement. Said coverage shall be evidenced by either a new policy evidencing
no gap in coverage or by separate extended "tail" coverage with the present or
new carrier.
In the event the present policy of insurance is written on an "occurrence" basis, said
policy shall be continued in full force and effect during the term of this Agreement or
until completion of the services provided for in this Agreement, whichever is later. In
the event of termination of said policy during this period, new coverage shall be
obtained for the required period to insure for the prior acts of CONSULTANT during
the course of performing services under the term of this Agreement.
CONSULTANT shall provide to the SANITATION DISTRICT a certificate of
insurance in a form acceptable to the SANITATION DISTRICT indicating the
deductible or self-retention amounts and the expiration date of said policy, and
shall provide renewal certificates not less than ten (10)days prior to the
expiration of each policy term.
H. Proof of Coverage
The CONSULTANT shall furnish the SANITATION DISTRICT with original
certificates and amendatory endorsements effecting coverage. Said policies and
endorsements shall conform to the requirements herein stated. All certificates
and endorsements are to be received and approved by the SANITATION
DISTRICT before work commences. The SANITATION DISTRICT reserves the
right to require complete, certified copies of all required insurance policies,
including endorsements, effecting the coverage required, at any time. The
following are approved forms that must be submitted as proof of coverage:
• Certificate of Insurance ACORD Form 25 (5/2010)or equivalent.
• Additional Insurance (ISO Form) CG2010 11 85 or
(General Liability) The combination of(ISO Forms)
CG 2010 10 01 and CG 2037 10 01
All other Additional Insured endorsements must
be submitted for approval by the SANITATION
DISTRICT, and the SANITATION DISTRICT
may reject alternatives that provide different or
less coverage to the SANITATION DISTRICT.
• Additional Insured Submit endorsement provided by carrier for the
(Auto Liability) SANITATION DISTRICT approval.
• Waiver of Subrogation State Compensation Insurance Fund
Endorsement No. 2570 or equivalent.
• Cancellation Notice State Compensation Insurance Fund
Endorsement No. 2065 or equivalent.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 10 of 18
I. Cancellation Notice
Each insurance policy required herein shall be endorsed to state that coverage
shall not be cancelled by either party, except after thirty (30)days' prior written
notice. The Cancellation Section of ACORD Form 25 (5/2010)shall state the
required thirty (30) days' written notification. The policy shall not terminate, nor
shall it be cancelled, nor the coverage reduced until thirty(30) days after written
notice is given to the SANITATION DISTRICT except for nonpayment of
premium, which shall require not less than ten (10) days written notice to the
SANITATION DISTRICT. Should there be changes in coverage or an increase in
deductible or SIR amounts, the CONSULTANT and its insurance broker/agent
shall send to the SANITATION DISTRICT a certified letter which includes a
description of the changes in coverage and/or any increase in deductible or SIR
amounts. The certified letter must be sent to the attention of the SANITATION
DISTRICT's Risk Management Division, and shall be received by the
SANITATION DISTRICT not less than thirty (30) days prior to the effective date
of the change(s) if the change would reduce coverage or increase deductibles or
SIR amounts or otherwise reduce or limit the scope of insurance coverage
provided to the SANITATION DISTRICT.
J. Primary Insurance
All liability policies shall contain a Primary and Non Contributory Clause. Any
other insurance maintained by the SANITATION DISTRICT shall be excess and
not contributing with the insurance provided by CONSULTANT.
K. Separation of Insured
All liability policies shall contain a "Separation of Insureds" clause.
L. Non-Limiting (if applicable)
Nothing in this document shall be construed as limiting in any way, nor shall it
limit the indemnification provision contained in this Agreement, or the extent to
which CONSULTANT may be held responsible for payment of damages to
persons or property.
M. Deductibles and Self-Insured Retentions
Any deductible and/or self-insured retention must be declared to the
SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or
self-insured retentions require approval by the SANITATION DISTRICT. At the
option of the SANITATION DISTRICT, either: the insurer shall reduce or
eliminate such deductible or self-insured retention as respects the SANITATION
DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory
to the SANITATION DISTRICT guaranteeing payment of losses and related
investigations, claim administration and defense expenses.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 11 of 18
N. Defense Costs
Liability policies (except Errors Omissions/Professional Liability)shall have a
provision that defense costs for all insureds and additional insureds are paid in
addition to and do not deplete any policy limits.
O. Subconsultants
The CONSULTANT shall be responsible to establish insurance requirements for
any Subconsultant hired by the CONSULTANT. The insurance shall be in
amounts and types reasonably sufficient to deal with the risk of loss involving the
Subconsultant's operations and work.
P. Limits Are Minimums
If the CONSULTANT maintains higher limits than any minimums shown above,
then the SANITATION DISTRICT requires and shall be entitled to coverage for
the higher limits maintained by CONSULTANT. Nothing in this section, however,
requires CONSULTANT in the absence of litigation to reveal its Errors and
Omissions/Professional Liability limits beyond that required above in other
paragraphs.
8. SCOPE CHANGES
In the event of a change in the Scope of Work, requested by SANITATION DISTRICT,
the parties hereto shall execute an amendment to this Agreement setting forth with
particularity all terms of the new Agreement, including but not limited to any additional
CONSULTANT's fees.
9. PROJECT TEAM AND SUBCONSULTANTS
CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this
Agreement, the names and full description of all Subconsultants and CONSULTANT's
project team members anticipated to be used on this project by CONSULTANT.
CONSULTANT shall include a description of the scope of work to be done by each
Subconsultant and each CONSULTANT's project team member. CONSULTANT shall
include the respective compensation amounts for CONSULTANT and each
Subconsultant on a per-project-element basis, broken down as indicated in Section 2-
COMPENSATION.
There shall be no substitution of the listed Subconsultants and CONSULTANT's project
team members without prior written approval by the SANITATION DISTRICT.
10. ENGINEERING REGISTRATION
The CONSULTANT's personnel are comprised of registered engineers and a staff of
specialists and draftsmen in each department. The firm itself is not a registered engineer
but represents and agrees that wherever in the performance of this Agreement requires
the services of a registered engineer, such services hereunder will be performed under
the direct supervision of registered engineers.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 12 of 18
11. AUDIT PROVISIONS
A. SANITATION DISTRICT retains the reasonable right to access, review, examine,
and audit, any and all books, records, documents and any other evidence of
procedures and practices that the SANITATION DISTRICT determines are
necessary to discover and verify that the CONSULTANT is in compliance with all
requirements under this Agreement. The CONSULTANT shall include the
SANITATION DISTRICT's right as described above, in any and all of their
subcontracts, and shall ensure that these rights are binding upon all Subconsultants.
B. SANITATION DISTRICT retains the right to examine CONSULTANT's books,
records, documents and any other evidence of procedures and practices that the
SANITATION DISTRICT determines are necessary to discover and verify all
direct and indirect costs, of whatever nature, which are claimed to have been
incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance
with all requirements under this Agreement during the term of this Agreement
and for a period of three (3)years after its termination.
C. CONSULTANT shall maintain complete and accurate records in accordance with
generally accepted industry standard practices and the SANITATION
DISTRICT's policy. The CONSULTANT shall make available to the SANITATION
DISTRICT for review and audit, all project related accounting records and
documents, and any other financial data within fifteen (15) days after receipt of
notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's
request, the CONSULTANT shall submit exact duplicates of originals of all
requested records to the SANITATION DISTRICT. If an audit is performed,
CONSULTANT shall ensure that a qualified employee of the CONSULTANT will
be available to assist SANITATION DISTRICT's auditor in obtaining all project
related accounting records and documents, and any other financial data.
12. LEGAL RELATIONSHIP BETWEEN PARTIES
The legal relationship between the parties hereto is that of an independent contractor
and nothing herein shall be deemed to make CONSULTANT an employee of the
SANITATION DISTRICT.
13. NOTICES
All notices hereunder and communications regarding the interpretation of the terms of
this Agreement, or changes thereto, shall be effected by delivery of said notices in
person or by depositing said notices in the U.S. mail, registered or certified mail, return
receipt requested, postage prepaid.
Notices shall be mailed to the SANITATION DISTRICT at:
ORANGE COUNTY SANITATION DISTRICT
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
Attention: Larry Roberson, Principal Contracts Administrator
Copy: Victoria Pilko, Project Manager
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 13 of 18
Notices shall be mailed to CONSULTANT at:
BROWN AND CALDWELL
18500 Von Karmen Avenue
Suite 1100
Irvine, CA 92612
Attention: Daniel Bunce, Vice President
Copy: Cherylle Barrido, Project Manager
All communication regarding the Scope of Work, will be addressed to the Project Manager.
Direction from other SANITATION DISTRICT's staff must be approved in writing by the
SANITATION DISTRICT's Project Manager prior to action from the CONSULTANT.
14. TERMINATION
The SANITATION DISTRICT may terminate this Agreement at any time, without cause,
upon giving thirty(30) days written notice to CONSULTANT. In the event of such
termination, CONSULTANT shall be entitled to compensation for work performed on a
prorated basis through and including the effective date of termination.
CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days
written notice only if CONSULTANT is not compensated for billed amounts in
accordance with the provisions of this Agreement, when the same are due.
Notice of termination shall be mailed to the SANITATION DISTRICT and/or
CONSULTANT in accordance with Section 13- NOTICES.
15. DOCUMENTS AND STUDY MATERIALS
The documents and study materials for this project shall become the property of the
SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT
agrees to furnish to the SANITATION DISTRICT copies of all memoranda,
correspondence, computation and study materials in its files pertaining to the work
described in this Agreement, which is requested in writing by the SANITATION DISTRICT.
16. COMPLIANCE
CONSULTANT certifies by the execution of this Agreement that it pays employees not
less than the minimum wage as defined by law, and that it does not discriminate in its
employment with regard to race, color, religion, sex or national origin; that it is in
compliance with all Federal, State and local directives and executive orders regarding
non-discrimination in employment; and that it agrees to demonstrate positively and
aggressively the principle of equal opportunity in employment.
17. AGREEMENT EXECUTION AUTHORIZATION
Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual
executing this document by and on behalf of each party is a person duly authorized to
execute agreements for that party.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 14 of 18
18. DISPUTE RESOLUTION
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration
under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar
organization or entity conducting alternate dispute resolution services.
19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS
If any action at law or in equity or if any proceeding in the form of an Alternative Dispute
Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees, costs and necessary
disbursements in addition to any other relief to which it may be entitled.
20. PROGRESS REPORTS
Monthly progress reports shall be submitted for review by the tenth day of the following
month and must include as a minimum: 1) current activities, 2)future activities, 3)
potential items that are not included in the Scope of Work, 4) concerns and possible
delays, 5) percentage of completion, and 6) budget status.
21. WARRANTY
CONSULTANT shall perform its services in accordance with generally accepted industry
and professional standards. If, within the 12-month period following completion of its
services, the SANITATION DISTRICT informs CONSULTANT that any part of the
services fails to meet those standards, CONSULTANT shall, within the time prescribed
by the SANITATION DISTRICT, take all such actions as are necessary to correct or
complete the noted deficiency(ies).
22. INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at
CONSULTANT's sole cost and expense and with legal counsel approved by the
SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect
and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's
officers, directors, employees, consultants, and agents (collectively the"Indemnified
Parties"), from and against any and all claims, damages, liabilities, causes of action,
suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses
including without limitation, attorneys'fees, disbursements and court costs, and all other
professional, expert or consultants fees and costs and the SANITATION DISTRICT's
general and administrative expenses (individually, a "Claim", or collectively, "Claims")
which may arise from or are in any manner related, directly or indirectly, to any work
performed, or any operations, activities, or services provided by CONSULTANT in
carrying out its obligations under this Agreement to the extent of the negligent,
recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents,
employees, CONSULTANT's suppliers, consultants, subconsultants, subcontractors,
and/or anyone employed directly or indirectly by any of them, regardless of any
contributing negligence or strict liability of an Indemnified Party. Notwithstanding the
foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the
Indemnified Parties from any Claim arising from:
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 15 of 18
(A)the sole or active negligence or willful misconduct of the Indemnified Parties; or
(B)a natural disaster or other act of God, such as an earthquake; or
(C)the independent action of a third party who is neither one of the Indemnified Parties
nor the CONSULTANT, nor its principal, officer, agent, employee, nor
CONSULTANT's supplier, consultant, subconsultant, subcontractor, nor anyone
employed directly or indirectly by any of them.
Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest
extent permitted by law, indemnify the Indemnified Parties, from Claims arising from
more than one cause if any such cause taken alone would otherwise result in the
obligation to indemnify hereunder.
CONSULTANT's liability for indemnification hereunder is in addition to any liability
CONSULTANT may have to the SANITATION DISTRICT for a breach by
CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall
the insurance requirements and limits set forth in this Agreement be construed to limit
CONSULTANT's indemnification obligation or other liability hereunder.
The terms of this Agreement are contractual and the result of negotiation between the
parties hereto. Accordingly, any rule of construction of contracts (including, without
limitation, California Civil Code Section 1654)that ambiguities are to be construed
against the drafting party, shall not be employed in the interpretation of this Agreement.
23. DUTY TO DEFEND
The duty to defend hereunder is wholly independent of and separate from the duty to
indemnify and such duty to defend shall exist regardless of any ultimate liability of
CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense
obligation shall arise immediately upon presentation of a Claim by any person if, without
regard to the merit of the Claim, such Claim could potentially result in an obligation to
indemnify one or more Indemnified Parties, and upon written notice of such Claim being
provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the
payment or advance of defense costs by any Indemnified Party shall not be a condition
precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In
the event a final judgment, arbitration, award, order, settlement, or other final resolution
expressly determines that the claim did not arise out of, pertain to, or relate to the
negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent,
then the SANITATION DISTRICT will reimburse CONSULTANT for the reasonable costs
of defending the Indemnified Parties against such claims.
CONSULTANT's indemnification obligation hereunder shall survive the expiration or
earlier termination of this Agreement until such time as action against the Indemnified
Parties for such matter indemnified hereunder is fully and finally barred by the applicable
statute of limitations.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 16 of 18
24. CONSULTANT PERFORMANCE
The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT.
A copy of the evaluation shall be sent to the CONSULTANT for comment. The
evaluation, together with the comments, shall be retained by the SANITATION
DISTRICT and may be considered in future CONSULTANT selection processes.
25. CLOSEOUT
When the SANITATION DISTRICT determines that all work authorized under the
Agreement is fully complete and that the SANITATION DISTRICT requires no further
work from CONSULTANT, or the Agreement is otherwise terminated or expires in
accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the
Consultant written notice that the Agreement will be closed out. CONSULTANT shall
submit all outstanding billings, work submittals, deliverables, reports or similarly related
documents as required under the Agreement within thirty (30)days of receipt of notice of
Agreement closeout.
Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall
commence a closeout audit of the Agreement and will either:
i. Give the CONSULTANT a final Agreement Acceptance: or
ii. Advise the CONSULTANT in writing of any outstanding item or items which must be
furnished, completed, or corrected at the CONSULTANT's cost.
CONSULTANT shall be required to provide adequate resources to fully support any
administrative closeout efforts identified in this Agreement. Such support must be
provided within the timeframe requested by the SANITATION DISTRICT.
Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved
of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to
complete any portions of the work, the non-completion of which were not disclosed to
the SANITATION DISTRICT (regardless of whether such nondisclosures were
fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under
all those provisions of the Agreement which expressly or by their nature extend beyond
and survive final Agreement Acceptance.
Any failure by the SANITATION DISTRICT to reject the work or to reject the
CONSULTANT's request for final Agreement Acceptance as set forth above shall not be
deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose
nor imply acceptance of, or agreement with, the CONSULTANT's request for final
Agreement Acceptance.
26. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding and agreement between the parties
and supersedes all previous negotiations between them pertaining to the subject matter
thereof.
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 17 of 18
IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION
DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year
first above written.
CONSULTANT: BROWN AND CALDWELL
By
Date
Printed Name &Title
ORANGE COUNTY SANITATION DISTRICT
By
David John Shawver Date
Board Chairman
By
Kelly A. Lore Date
Clerk of the Board
By
Marc Dubois Date
Contracts, Purchasing and
Materials Management Manager
Attachments: Attachment"A"—Scope of Work
Attachment"B"—Not Used
Attachment"C"—Not Used
Attachment"D"—Allowable Direct Costs
Attachment"E"—Fee Proposal
Attachment"F"— Not Used
Attachment"G"— Not Attached
Attachment"H"— Not Used
Attachment"I"—Cost Matrix& Summary
Attachment"J"— Not Used
Attachment"K"—Hourly Rate Schedule for Minor Subconsultant
LDR:yp
PCSA CONTRACT NO.J-117B
Revised 080118 OUTFALL LOW FLOW PUMP STATION
Page 18 of 18
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J-117B Outfall Low Flow Pump Station
Construction Contract and
Professional Construction Services Agreement
Project Elements
• New Outfall Low Flow Pump Station
• Four 300-hp, 40 million gallon per day pumps
• New Plant Water Pump Station
• Required for GWRS Final Expansion
• Ocean Outfall Booster Station Rehabilitation
• Four 2650-hp, 120 million gallon per day pumps
• CenGen Switchgear replacement
• SCADA System Upgrades (formerly P2-107)
• New Industrial Control System Network
• New Load Shedding System
J -117B Project Area ( Plant 2)
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.IOM TO EXIST$TRM SYSTEM
CCWST W D POTW WALL PENETRATION
JOW TO EXISTPOTW SYSTEM — — -- NaoW GRADE
OOBS Rehabilitation
• Rehabilitate 4 of 5 pumps,
remove fifth pump
• Rehab ancillary facilities r
• Replace electrical equipment
and switchgear
CenGen Switchgear Replacement
CENTRALGENERATIONSWITCNGEAR
• Existing switchgear - - BusA — — — — —Bus G1 — Bus . . — — — — . BusB — —
L._. _ . _.
nearing end of life Loads Central Generators s Loads
OCEAN OUTFALL BOOSTER STATION SWITCNGEAR
Addresses critical - - - -BusA I Bus -- - --------
• L . _._._. _ . I 1 . _._._..
single point of failure 1- ' 1 . —.EPSA STANDBY POWER.—. s ' _.—.--- -- - -----
single Does
1 ] 3 O
• Well suited for I- - - - - - - - - - - -- (4)1MW ._ _ _ _ _ . _ _ _ _ _ _
Bus A I
included in same _. ._._ . _ . _. _ . _. _ ._ - - - - _Bus._B _ .. _ . _._. :
O O 3 3 O O
contract as GOBS wW FLOW PUMPS PLANT WATER PUMPS LOW FLOW PUMPS PLANT WATER PUMPS
Rehab
P2 -107 SCADA System Upgrades
• Monitoring and control of power distribution
equipment
• New fiber backbone for Industrial Control System
network
• Plant-wide loading shedding network
• Contractor-provided hardware sole-sourced to Schweitzer
Engineering Laboratories
• Network configuration and programming by Schweitzer
Engineering Laboratory through Professional Services
Agreement
Schedule
Construction Award Dec 2018
OCWD's GWRS FE Completion Dec 2022
Plant Water Pump Station Complete Aug 2023
Contract Final Completion July 2024
Bid Tabulation
. Amount
Engineer's Estimate $90,772,263
Schimmick Construction Co., Inc. $90,200,000
PCL Construction, Inc. $96,899,792
Flatiron West, Inc. $99,858,000
Kiewit Infrastructure West Co. $110,248,000
OHL USA, Inc. $117,100,000
Required Board Actions
Professional Construction Services
Agreement (Brown & Caldwell) $8,563,913 Dec 2018
Construction Contract $90,200,000 Dec 2018
Load Shedding Services In negotiation TBD
(Schweitzer Engineering Laboratories)
Builders All Risk Insurance (if needed) <$500,000 TBD
Recommendations
• Approve a Professional Construction Services Agreement with
Brown and Caldwell to provide construction support services for
Ocean Outfall System Rehabilitation, Project No. J -117, Outfall
Low Flow Pump Station, Contract No. J-117B, for a total amount
not to exceed $8,563,913; and
• Approve a contingency of $856,391 ( 10%)
Recommendations
• Receive and file Bid Tabulation and Recommendation for the
Outfall Low Flow Pump Station, Contract No. J-11713;
• Receive and file Orange County Sanitation District's Notice of
Intent to Award dated November 20, 2018;
• Award a Construction Contract to Shimmick Construction
Company, Inc. for the Outfall Low Flow Pump Station, Contract
No. J-11713, for a total amount not to exceed $90,200,000; and
• Approve a construction contract contingency of $7,216,000 (8%).
OPERATIONS COMMITTEE Meeting Dare TOBd.of Dir.
12/OS/18 12/lg/18
AGENDA REPORT Item Numbe Item Number
u v
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: OCEAN OUTFALL SYSTEM REHABILITATION, PROJECT NO. J-117
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file Bid Tabulation and Recommendation for the Outfall Low Flow
Pump Station, Contract No. J-11713;
B. Receive and file Orange County Sanitation District's Notice of Intent to Award
dated November 20, 2018;
C. Award a Construction Contract to Shimmick Construction Company, Inc. for the
Outfall Low Flow Pump Station, Contract No. J-117B, for a total amount not to
exceed $90,200,000; and
D. Approve a construction contract contingency of$7,216,000 (8e/%).
BACKGROUND
The Ocean Outfall System Rehabilitation, Project No. J-117, is being executed under two
construction contracts. The Interplant Effluent Pipeline Rehabilitation, Contract
No. J-117A, is focused on the 120"and 84" pipelines and structures that move effluent to
the outfall pumping stations. The contract is approximately 90% complete and ahead of
schedule.
The second construction contract in this project is the Outfall Low Flow Pump Station,
Contract No. J-117B. The contract includes work elements to build a new Outfall Low
Flow Pump Station and Plant Water Pump Station to support the Ground Water
Replenishment System (GWRS) expansion, refurbishment of the Ocean Outfall Booster
Station, replacement of critical electrical switchgear, improvements to the industrial
controls network, and electrical system load control and safety improvements. Several
of the elements were designed under Power Monitoring & Control Systems at Plant No.
2, Project No. P2-107, but were combined into Contract No. J-117B to reduce risk and
increase delivery efficiency.
RELEVANT STANDARDS
CA Public Contract Code Section 20103.8, award construction contract to lowest
responsive, responsible bidder.
Page 1 of 3
PROBLEM
A construction contract is needed to construct the Plant Water Pump Station for the
Orange County Water District's GWRS expansion, to complete the mechanical and
electrical rehabilitation inside the Ocean Outfall Booster Station, and to replace the critical
electrical switchgear in the Central Generation system.
Two other contracts are also needed to complete the Outfall Low Flow Pump Station,
including a Professional Construction Services Agreement with the design consultant and
a Professional Services Agreement with Schweitzer Engineering Laboratories for
configuration and programming of a load shedding system. Approval of the construction
services agreement is requested in a separate agenda report at this same Operations
Committee Meeting. The Schweitzer Engineering Laboratories agreement is currently
being negotiated and is expected to be submitted to the February 2019 Operations
Committee meeting.
PROPOSED SOLUTION
Award a construction contract for the Outfall Low Flow Pump Station, Contract
No. J-11713.
TIMING CONCERNS
The Construction Contract is required for the new Plant Water Pump Station which is
critical for startup of the Orange County Water District's GWRS Final Expansion.
RAMIFICATIONS OF NOT TAKING ACTION
Delays to this project could impact final expansion of the GWRS.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The Sanitation District advertised Contract No. J-117B for bid on September 12, 2018,
and five sealed bids were received on November 15, 2018.
The bids were evaluated in accordance with the Sanitation District's policies and
procedures. General Counsel participated in the evaluation of Shimmick's bid and
provided guidance regarding resolution of a minor irregularity found on Shimmick's BF-2,
Subcontractor listing form. With guidance provided by General Counsel, the Sanitation
District evaluation team completed its evaluation and deemed Shimmick Construction,
Inc. the lowest responsive and responsible Bidder. An award recommendation notice
was sent to all bidders on November 20, 2018 informing them of the intent of Sanitation
Page 2 of 3
District staff to recommend award of the Outfall Low Flow Pump Station, Contract
No. J-117B, to Shimmick Construction Company, Inc.
A summary of the bid opening follows:
Engineers Estimate $90,772,263
Bidder Amount of Bid
Shimmick Construction Co., Inc. $ 90,200,000
PCL Construction, Inc. $ 96,899,792
Flatiron West, Inc. $ 99,858,000
Kiewit Infrastructure West Co. $110,248,000
OHL USA, Inc. $117,100,000
Staff recommends awarding a construction contract to the lowest responsive bidder,
Shimmick Construction Company, Inc., for the Outfall Low Flow Pump Station, Contract
No. J-117B, for a total amount not to exceed $90,200,000.
CEQA
An Initial Study/Mitigated Negative Declaration and Mitigation Monitoring and Reporting
Program for the Outfall Low Flow Pump Station, Contract No. J-117B, was adopted by
the Board on September 27, 2017. The Notice of Determination was filed with the Orange
County Clerk-Recorder on October 2, 2017.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Fiscal Year 2018-19 and 2019-20 Budget,
Section 8, Page 37) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.corn with the
complete agenda package:
• Construction Contract
• PowerPoint Presentation from 12/5/18 Operations Committee meeting
VP:dm:gc
Page 3 of 3
PART A
CONTRACT AGREEMENT
C-CA-090817
TABLE OF CONTENTS
CONTRACT AGREEMENT
SECTION - 1 GENERAL CONDITIONS..................................................................1
SECTION -2 MATERIALS AND LABOR.................................................................4
SECTION -3 PROJECT..........................................................................................4
SECTION -4 PLANS AND SPECIFICATONS ........................................................5
SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5
SECTION -6 TIME IS OF THE ESSENCE .............................................................5
SECTION -7 EXCUSABLE DELAYS......................................................................6
SECTION -8 EXTRA WORK...................................................................................6
SECTION -9 CHANGES IN PROJECT...................................................................7
SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7
SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7
SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF
FUNDS ..............................................................................................9
SECTION - 13 COMPLETION...................................................................................9
SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10
SECTION - 15 SURETY BONDS ............................................................................12
SECTION - 16 INSURANCE....................................................................................13
SECTION - 17 RISK AND INDEMNIFICATION.......................................................21
SECTION - 18 TERMINATION................................................................................21
SECTION - 19 WARRANTY....................................................................................21
SECTION -20 ASSIGNMENT.................................................................................22
SECTION -21 RESOLUTION OF DISPUTES ........................................................22
SECTION -22 SAFETY& HEALTH ........................................................................23
SECTION -23 NOTICES.........................................................................................23
C-CA-090817
CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
THIS AGREEMENT is made and entered into, to be effective, this December 19, 2018, by and
between Shimmick Construction Company, 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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CONTRACT NO.J-117B
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CONFORMED
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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
H. General Requirements (GR)
iv. Standard Drawings and Typical Details
j. CONTRACTOR'S Bid
2. In the event of a conflict between terms within an individual Contract Document, the
conflict shall be resolved by applying the following principles as appears applicable:
a. Figured dimensions on the Contract Documents shall govern. Dimensions not
specified shall be as directed by the ENGINEER. Details not shown or
specified shall be the same as similar parts that are shown or specified, or as
directed. Full-size details shall take precedence over scale Drawings as to
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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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CONTRACT NO.J-117B
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CONFORMED
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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:
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
C-CA-090817
CONTRACT NO.J-117B
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SECTION -4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
CONTRACT NO. J-117B
OUTFALL LOW FLOW PUMP STATION
Said Plans and Specifications and any revision, amendments and addenda thereto are attached
hereto and incorporated herein as part of this Contract and referred to by reference.
SECTION—5 TIME OF COMMENCEMENT AND COMPLETION
CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth
in the "Notice to Proceed" sent by OCSD, unless otherwise specified therein and shall diligently
prosecute the Work to completion within two thousand and eight (2008) 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 twenty-five (25) calendar days determined by
OCSD likely to be inclement weather when CONTRACTOR will be unable to work.
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
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
C-CA-090817
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 5 of 24
the various portions of the Work shall be installed or the priority of the work of subcontractors,
and, in general, all matters representing the timely and orderly conduct of the Work of
CONTRACTOR on the premises.
SECTION—7 EXCUSABLE DELAYS
CONTRACTOR shall only be excused for any delay in the prosecution or completion of the
Project as specifically provided in General Conditions, "Extensions for Delay", and the General
Requirements, "By CONTRACTOR or Others—Unknown Utilities during Contract Work".
Extensions of time and extra compensation arising from such excusable delays will be
determined in accordance with the General Conditions, "Extension of Time for Delay" and
"Contract Price Adjustments and Payments", and extensions of time and extra compensation as
a result of incurring undisclosed utilities will be determined in accordance with General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
OCSD's decision will be conclusive on all parties to this Contract.
SECTION—8 EXTRA WORK
The Contract Price as set forth in Section 11, includes compensation for all Work performed by
CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated
representative of OCSD specifying the exact nature of the Extra Work and the amount of extra
compensation to be paid all as more particularly set forth in Section 9 hereof and the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated
Changes", and "Contract Price Adjustments and Payments".
In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD
shall extend the time fixed in Section 5 for completion of the Project by the number of days, if
any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by
OCSD's ENGINEER. The decision of the ENGINEER shall be final.
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CONTRACT NO.J-117B
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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 Ninety Million Two Hundred Thousand Dollars
($90,200,000) as itemized on the Attached Exhibit"A".
Upon satisfaction of the conditions precedent to payment set forth in the General
Requirements, Additional General Requirements and General Conditions (including but
not limited to Sections entitled "Mobilization Payment Requirements" and "Payment
C-CA-090817
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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:
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1. "Net Progress Payment" means a sum equal to the Progress Payment less the
Retention Amount and other qualified deductions (Liquidated Damages, stop
payment notices, etc.).
2. "Progress Payment" means a sum equal to:
a. the value of the actual Work completed since the commencement of the Work
as determined by OCSD;
b. plus the value of material suitably stored at the worksite, treatment plant or
approved storage yards subject to or under the control of OCSD since the
commencement of the Work as determined by OCSD;
C. less all previous Net Progress Payments;
d. less all amounts of previously qualified deductions;
e. less all amounts previously retained as Retention Amounts.
3. "Retention Amount"for each Progress Payment means the percentage of each
Progress Payment to be retained by OCSD to assure satisfactory completion of the
Contract. The amount to be retained from each Progress Payment shall be
determined as provided in the General Conditions—"Retained Funds; Substitution of
Securities."
SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS
Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole
expense, substitute securities as provided in General Conditions—"Retained Funds;
Substitution of Securities."
SECTION—13 COMPLETION
Final Completion and Final Acceptance shall occur at the time and in the manner specified in the
General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A-
Schedule of Prices.
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Upon receipt of all documentation, records, and releases as required by the Contract from the
CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General
Conditions.
SECTION—14 CONTRACTOR'S EMPLOYEES COMPENSATION
A. Davis-Bacon Act:
CONTRACTOR will pay and will require all Subcontractors to pay all employees on said
Project a salary or wage at least equal to the prevailing rate of per diem wages as
determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each
craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon
Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00) and
when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If
the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be
complied with are incorporated herein as a part of this Contract and referred to by
reference.
B. General Prevailing Rate:
OCSD has been advised by the State of California Director of Industrial Relations of its
determination of the general prevailing rate of per diem wages and the general prevailing
rate for legal holiday and overtime Work in the locality in which the Work is to be
performed for each craft or type of Work needed to execute this Contract, and copies of
the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR
agrees that not less than said prevailing rates shall be paid to workers employed on this
public works Contract as required by Labor Code Section 1774 of the State of California.
Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of
per diem wages at its principal office and at each job site, which shall be made available to
any interested party upon request.
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C. Forfeiture for Violation:
CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for
each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or
any Subcontractor under it) less than the prevailing rate of per diem wages as set by the
Director of Industrial Relations, in accordance with Sections 1770-1780 of the California
Labor Code for the Work provided for in this Contract, all in accordance with Section 1775
of the Labor Code of the State of California.
D. Apprentices:
Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding
the employment of apprentices are applicable to this Contract and the CONTRACTOR
shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)
or more.
E. Workday:
In the performance of this Contract, not more than eight(8) hours shall constitute a day's
work, and the CONTRACTOR shall not require more than eight (8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B) above.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sea.)of the
Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by
CONTRACTOR or any Subcontractor for each calendar day during which any worker is
required or permitted to labor more than eight (8) hours in any one calendar day and forty
(40) hours in any one week in violation of said Article. CONTRACTOR shall keep an
accurate record showing the name and actual hours worked each calendar day and each
calendar week by each worker employed by CONTRACTOR in connection with the
Project.
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F. Registration: Record of Wages: Inspection:
CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5.
Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the
California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll
records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code
Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may
be deducted from progress payments per Section 1776.
CONTRACTOR shall comply with the job site notices posting requirements established by
the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a).
SECTION-15 SURETYBONDS
CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds
approved by OCSD's General Counsel—one in the amount of one hundred percent(100%)of
the Contract amount, to guarantee the faithful performance of the Work, and the other in the
amount of one hundred percent (100%)of the Contract amount to guarantee payment of all
claims for labor and materials furnished. As changes to the Contract occur via approved
Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to
maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds
are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the
State Insurance Commissioner to do business in California. The Performance Bond shall
remain in full force and effect through the warranty period, as specified in Section 19 below. All
Bonds required to be submitted relating to this Contract must comply with California Code of
Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety
insurer under penalty of perjury, or the fact of execution of each Bond shall be duly
acknowledged before an officer authorized to take and certify acknowledgments, and either one
of the following conditions shall be satisfied:
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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
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: Fifteen Million Dollars ($15,000,000) per occurrence and a general
aggregate limit of Fifteen Million Dollars ($15,000,000)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 Fifteen Million
Dollars ($15,000,000) per occurrence and a general aggregate limit of Fifteen
Million Dollars ($15,000,000)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
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additional extension or continuation of time to said warranty period that may be
required or authorized by said provisions.
C. Broad Form Property Damage, expressly including damage arising out of
explosion, collapse, or underground damage.
d. Contractual Liability, expressly including the indemnity provisions assumed
under this Contract.
e. Separation of Insured Clause, providing that coverage applies separately to
each insured, except with respect to the limits of liability.
f. Independent CONTRACTOR's Liability.
To the extent first dollar coverage, including defense of any claim, is not
available to OCSD or any other additional insured because of any SIR,
deductible, or any other form of self insurance, CONTRACTOR is obligated to
assume responsibility of insurer until the deductible, SIR or other condition of
insurer assuming its defense and/or indemnity has been satisfied.
CONTRACTOR shall be responsible to pay any deductible or SIR.
g. If a crane will be used, the General Liability insurance will be endorsed to add
Riggers Liability coverage or its equivalent to cover the usage of the crane and
exposures with regard to the crane operators, riggers and others involved in
using the crane.
h. If divers will be used, the General Liability insurance will be endorsed to cover
marine liability or its equivalent to cover the usage of divers.
2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile
Liability Insurance on a comprehensive form covering all owned, non-owned, and
hired automobiles, trucks, and other vehicles providing the following minimum limits
of liability coverage:
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Either(1)a combined single limit of Fifteen Million Dollars ($15,000,000)and a
general aggregate limit of Fifteen Million Dollars ($15,000,000)for bodily injury,
personal injury and property damage;
Or alternatively, (2) Fifteen Million Dollars ($15,000,000) per person for bodily injury
and Ten Million Dollars ($10,000,000) per accident for property damage.
3. Umbrella Excess Liability: The minimum limits of general liability and automobile
liability insurance required, as set forth above, shall be provided for either in a single
policy of primary insurance or a combination of policies of primary and umbrella
excess coverage. Excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits for
general liability and automobile liability.
4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be
maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a
form acceptable by OCSD.
5. Worker's Compensation/Employer's Liability: CONTRACTOR shall provide such
Worker's Compensation Insurance as required by the Labor Code of the State of
California, including employer's liability with a minimum limit of One Million Dollars
($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act
liability may exist, the insurance required herein shall include coverage with regard to
Jones Act claims.
Where permitted by law, CONTRACTOR hereby waives all rights of recovery by
subrogation because of deductible clauses, inadequacy of limits of any insurance
policy, limitations or exclusions of coverage, or any other reason against OCSD, its
or their officers, agents, or employees, and any other contractor or subcontractor
performing Work or rendering services on behalf of OCSD in connection with the
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planning, development and construction of the Project. In all its insurance coverages
related to the Work, CONTRACTOR shall include clauses providing that each insurer
shall waive all of its rights of recovery by subrogation against OCSD, its or their
officers, agents, or employees, or any other contractor or subcontractor performing
Work or rendering services at the Project. Where permitted by law, CONTRACTOR
shall require similar written express waivers and insurance clauses from each of its
Subcontractors of every tier. A waiver of subrogation shall be effective as to any
individual or entity, even if such individual or entity (a)would otherwise have a duty
of indemnification, contractual or otherwise, (b)did not pay the insurance premium,
directly or indirectly, and (c)whether or not such individual or entity has an insurable
interest in the property damaged.
6. Course of Construction: OCSD will provide course of construction insurance, or self-
insurance, at its sole expense, outside the terms of this Contract.
Course of Construction CONTRACTOR Obligation: CONTRACTOR shall be
responsible, at its own expense, for the first Ten Thousand Dollars ($10,000)of each
occurrence including court costs, attorney fees, costs of defense and loss payouts,
for Course of Construction loss.
7. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums
shown in this Section, OCSD requires and shall be entitled to coverage for the higher
limits maintained by the CONTRACTOR.
B. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by OCSD. At
the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and
employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD
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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.
2. Each insurance policy required herein shall be endorsed to state that coverage shall
not be cancelled by either parry, 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
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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
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
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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.
G. Required Forms and Endorsements
1. Required ACORD Form
a. Certificate of Liability Form 25
2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are
shown, they are listed in order of preference)
In the event any of the following forms are cancelled by Insurance Services Office,
Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied.
a. Commercial General Liability Form CG-0001 10 01
b. Additional Insured Including Form CG-2010 10 01 and
Products-Completed Operations Form CG-2037 10 01
C. Waiver of Transfer of Rights of Form CG-2404 11 85; or
Recovery Against Others to Us/ Form CG-2404 10 93
Waiver of Subrogation
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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
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.
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The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final
Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final
Completion' that the completed Work is free from all defects due to faulty materials, equipment
or workmanship and that it shall promptly make whatever adjustments or corrections which may
be necessary to cure any defects, including repairs of any damage to other parts of the system
resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of
observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs,
corrections or other work made necessary by such defects, OCSD may do so and charge the
CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any
corrected deficiency until the later of(1)the remainder of the original one-year warranty period;
or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and
the Payment Bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR's obligations under this clause are in addition to the CONTRACTOR's
other express or implied assurances under this Contract, including but not limited to specific
manufacturer or other extended warranties specified in the Plans and Specifications, or state
law and in no way diminish any other rights that OCSD may have against the CONTRACTOR
for faulty materials, equipment or Work.
SECTION-20 ASSIGNMENT
No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be
received hereunder, will be recognized by OCSD unless such assignment has had prior written
approval and consent of OCSD and the Surety.
SECTION—21 RESOLUTION OF DISPUTES
OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract
Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which
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arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims
provisions as set forth in the General Conditions and as otherwise required by law.
SECTION—22 SAFETY & HEALTH
CONTRACTOR shall comply with all applicable safety and health requirements mandated by
federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as
well as these Contract Documents, including but not limited to the General Requirements,
Section entitled "Safety" and Exhibit B OCSD Safety Standards.
SECTION-23 NOTICES
Any notice required or permitted under this Contract may be given by ordinary mail at the
address set forth below. Any parry whose address changes shall notify the other party in
writing.
TO OCSD: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Clerk of the Board
Copy to: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Construction Manager
Copy to: Bradley R. Hogin, Esquire
Woodruff, Spradlin &Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
Copy to: W. Andrew Sloane, III
Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine, CA 92618
By
Printed Name
Its
CONTRACTOR's State License No. 594575 (Expiration Date—05/31/2020)
OCSD: Orange County Sanitation District
By
David John Shawver
Board Chairman
By
Kelly A. Lore
Clerk of the Board
By
Marc Dubois
Contracts, Purchasing and Materials
Management Manager
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EXHIBIT A
SCHEDULE OF PRICES
C-EXA-080414
TABLE OF CONTENTS
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION.............................................................................1
EXA-2 PROGRESS PAYMENTS ..................................................................................1
EXA-3 RETENTION AND ESCROW ACCOUNTS........................................................1
EXA-4 STOP PAYMENT NOTICE.................................................................................3
EXA-5 PAYMENT TO SUBCONTRACTORS................................................................3
EXA-6 PAYMENT OF TAXES .......................................................................................3
EXA-7 FINAL PAYMENT...............................................................................................4
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT...5
ATTACHMENT 1 -CERTIFICATION FOR REQUEST FOR PAYMENT.........................7
ATTACHMENT 2-SCHEDULE OF PRICES...................................................................8
C-EXA-080414
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION
CONTRACTOR will be paid the Contract Price according to the Schedule of
Prices, and all other applicable terms and conditions of the Contract
Documents.
EXA-2 PROGRESS PAYMENTS
Progress payments will be made in accordance with all applicable terms and
conditions of the Contract Documents, including, but not limited to:
1. Contract Agreement—Section 11 —"Contract Price and Method of
Payment";
2. General Conditions—"Payment—General",
3. General Conditions—"Payment—Applications for Payment";
4. General Conditions—"Payment— Mobilization Payment Requirements";
5. General Conditions—"Payment— Itemized Breakdown of Contract Lump
Sum Prices";
6. General Conditions—"Contract Price Adjustments and Payments";
7. General Conditions—"Suspension of Payments";
8. General Conditions—"OCSD's Right to Withhold Certain Amounts and
Make Application Thereof"; and
9. General Conditions—"Final Payment."
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.
EXA4 STOP PAYMENT NOTICE
In addition to other amounts properly withheld under this article or under other
provisions of the Contract, OCSD shall retain from progress payments
otherwise due the CONTRACTOR an amount equal to one hundred twenty-five
percent (125%)of the amount claimed under any stop payment notice under
Civil Code §9350 at. seq. or other lien filed against the CONTRACTOR for
labor, materials, supplies, equipment, and any other thing of value claimed to
have been furnished to and/or incorporated into the Work; or for any other
alleged contribution thereto. In addition to the foregoing and in accordance with
Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop
payment notices by refusing to release funds held in escrow pursuant to public
receipt of a release of stop payment notice executed by a stop payment notice
claimant, a stop payment notice release bond, an order of a court of competent
jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR
has resolved such claim by settlement.
EXA-5 PAYMENT TO SUBCONTRACTORS
Requirements
1. The CONTRACTOR shall pay all Subcontractors for and on account of
Work performed by such Subcontractors, not later than seven (7)days after
receipt of each progress payment as required by the California Business
and Professions Code §7108.5. Such payments to Subcontractors shall be
based on the measurements and estimates made pursuant to article
progress payments provided herein.
2. Except as specifically provided by law, the CONTRACTOR shall pay all
Subcontractors any and all retention due and owing for and on account of
Work performed by such Subcontractors not later than seven (7)days after
CONTRACTOR'S receipt of said retention proceeds from OCSD as
required by the California Public Contract Code §7107.
EXA-6 PAYMENT OF TAXES
Unless otherwise specifically provided in this Contract, the Contract Price
includes full compensation to the CONTRACTOR for all taxes. The
CONTRACTOR shall pay all federal, state, and local taxes, and duties
applicable to and assessable against any Work, including but not limited to
retail sales and use, transportation, export, import, business, and special taxes.
The CONTRACTOR shall ascertain and pay the taxes when due. The
CONTRACTOR will maintain auditable records, subject to OCSD reviews,
confirming that tax payments are current at all times.
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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 filed in connection with the Work. Prior progress
payments shall be subject to correction in OCSD's review of the application
for Final Payment. Claims filed with the application for Final Payment must
be otherwise timely under the Contract and applicable law.
3. Within a reasonable time, OCSD will review the CONTRACTOR'S
application for Final Payment. Any recommended changes or corrections
will then be forwarded to the CONTRACTOR. Within ten (10) calendar days
after receipt of recommended changes from OCSD, the CONTRACTOR will
make the changes, or list Claims that will be filed as a result of the
changes, and shall submit the revised application for Final Payment. Upon
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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 filed with the initial or any revised application for
Final Payment, and no Claims remain unsettled within thirty-five (35)
calendar days after Final Acceptance of the Work by OCSD, and
agreements are reached on all issues regarding the application for Final
Payment, OCSD, in exchange for an executed release, satisfactory in form
and substance to OCSD, will pay the entire sum found due on the approved
application for Final Payment, including the amount, if any, allowed on
settled Claims.
5. The release from the CONTRACTOR shall be from any and all Claims
arising under the Contract, except for Claims that with the concurrence of
OCSD are specifically reserved, and shall release and waive all unreserved
Claims against OCSD and its officers, directors, employees and authorized
representatives. The release shall be accompanied by a certification by the
CONTRACTOR that:
a. It has resolved all Subcontractors, Suppliers and other Claims that are
related to the settled Claims included in the Final Payment;
b. It has no reason to believe that any party has a valid claim against the
CONTRACTOR or OCSD which has not been communicated in writing
by the CONTRACTOR to OCSD as of the date of the certificate;
c. All warranties are in full force and effect, and;
d. The releases and the warranties shall survive Final Payment.
6. If any claims remain open, OCSD may make Final Payment subject to
resolution of those claims. OCSD may withhold from the Final Payment an
amount not to exceed one hundred fifty percent (150%) of the sum of the
amounts of the open claims, and one hundred twenty-five percent (125%)
of the amounts of open stop payment notices referred to in article entitled
stop payment notices herein.
7. The CONTRACTOR shall provide an unconditional waiver and release on
final payment from each Subcontractor and Supplier providing Work under
the Contract(per Civil Code Section 8138) and an unconditional waiver and
release on final payment on behalf of the CONTRACTOR (per Civil Code
Section 8138)within thirty (30)days of receipt of Final Payment.
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT
Notwithstanding OCSD's acceptance of the application for Final Payment and
irrespective of whether it is before or after Final Payment has been made,
OCSD shall not be precluded from subsequently showing that:
1. The true and correct amount payable for the Work is different from that
previously accepted;
C-EXA-080414
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 5 of 8
2. The previously-accepted Work did not in fact conform to the Contract
requirements, or;
3. A previous payment or portion thereof for Work was improperly made.
OCSD also shall not be stopped from demanding and recovering damages
from the CONTRACTOR, as appropriate, under any of the foregoing
circumstances as permitted under the Contract or applicable law.
C-EXA-080414
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 6 of 8
ATTACHMENT 1 —CERTIFICATION FOR REQUEST FOR PAYMENT
I hereby certify under penalty of perjury as follows:
That the claim for payment is in all respects true, correct; that the services mentioned
herein were actually rendered and/or supplies delivered to OCSD in accordance with the
Contract.
I understand that it is a violation of both the federal and California False Claims Ads to
knowingly present or cause to be presented to OCSD a false claim for payment or
approval.
A claim includes a demand or request for money. It is also a violation of the False
Claims Acts to knowingly make use of a false record or statement to get a false claim
paid. The term "knowingly" includes either actual knowledge of the information,
deliberate ignorance of the truth or falsity of the information, or reckless disregard for the
truth or falsity of the information. Proof of specific intent to defraud is not necessary
under the False Claims Acts. I understand that the penalties under the Federal False
Claims Ad and State of California False Claims Act are non-exclusive, and are in
addition to any other remedies which OCSD may have either under contract or law.
I hereby further certify, to the best of my knowledge and belief, that:
1. The amounts requested are only for performance in accordance with the
Specifications, terms, and conditions of the Contract;
2. Payments to Subcontractors and Suppliers have been made from previous payments
received under the Contract, and timely payments will be made from the proceeds of
the payment covered by this certification;
3. This request for progress payments does not include any amounts which the prime
CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in
accordance with the terms and conditions of the subcontract; and
4. This certification is not to be construed as Final Acceptance of a Subcontractor's
performance.
Name
Title
Date
C-EXA-080414
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 7 of 8
ATTACHMENT 2—SCHEDULE OF PRICES
See next pages for Bid Submittal Forms (Shimmick Construction Company Inc.)
BF-14 SCHEDULE OF PRICES, Page 1 -2
C-EXA-080414
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
CONFORMED
Page 8 of 8
Bid Submitted By: Shimmick Construction Company 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.
Note 1: Base Bid. Includes all costs necessary to fumish all labor, materials, equipment and
services for the construction of the Project per the Contract Documents.
BF-14 SCHEDULE OF PRICES C-BF-121817
CONTRACT NO.J-117B
OUTFALL LOW FLOW PUMP STATION
Page 1 of 2
Bid submitted By: Shimmick Construction Company, Inc.
(Name of Firm)
EXHIBIT A
SCHEDULE OF PRICES
BASE BID ITEMS(Refer to Note i in the Instructions):
Item Des ,�r,o Unit of Measurement Extended Price
No. ri9Vi0wVCcwmx,wn Company.im
1 Mobilization as described in Division 01. Section 01155 and in conformance with the Contract Lump Sum $ 2,600,000
Documents for the lump sum price of...
2 Sheeting,Shoring and Bracing as described in Division 01, Section 01155 and in Lump Sum $ 3,nabi o oo, 00
conformance with the Contract Documents for the lump sum price of...
3 All Other Portions of the Work set forth In the Contract Documents except for the Work
performed in Item Nos 1,2 and 4 inclusive,as described in Division 01,Section 01155 and in Lump Sum $ as, leo e)eOe.
conformance with the Contract Documents for a lump sum price of...
4 Demobilization including final progress payment,clean-up and restoration of the project site as
described in Division 01,Section 01155 and in conformance with the Contract Documents for a Lump Sum $ 1,000,000
lump sum price of...
TOTAL AMOUNT OF BID (BASIS OF AWARD) $ 90,7,40, do O. e o
BF-14 SCHEDULE OF PRICES C-BF-121817
CONTRACT NO.J-1178
OUTFALL LOW FLOW PUMP STATION
Page 2 of 2
-+artCd
�fiM1, a
s
J-117B Outfall Low Flow Pump Station
Construction Contract and
Professional Construction Services Agreement
Project Elements
• New Outfall Low Flow Pump Station
• Four 300-hp, 40 million gallon per day pumps
• New Plant Water Pump Station
• Required for GWRS Final Expansion
• Ocean Outfall Booster Station Rehabilitation
• Four 2650-hp, 120 million gallon per day pumps
• CenGen Switchgear replacement
• SCADA System Upgrades (formerly P2-107)
• New Industrial Control System Network
• New Load Shedding System
J -117B Project Area ( Plant 2)
(001
r�l'` " .
Outfall Low Flow Pump Station and
Plant Water Pump Station
N
JUNCTION
STRUCTURE
L
e• IL %V _ ry r aaA
N F.i ITCL'1=IIGN
I 9
1'LPVC 1
COMMON
PLANT1 ELECTRICAL I •i•. ' 'ra,
III WATER ROOM •.
III PUMP
Y STATION
IIIII
Lf.
STRAINERS LOFLO I I �r
�.-.j Mp �l]9_tlDPE1578LL
y` BrATgM II I1
1 j1'1 I -`-�i 1ilAPEJlfS2Gl_I, '
-y..17.4N4NLki,�WW!WL
OR H-PIPE CHASE MTED T—
ORH-20 TRAFFlC LOADING
11:
CONST t S.STRM 6 INLET.
.IOM TO EXIST$TRM SYSTEM
CCWST W D POTW WALL PENETRATION
JOW TO EXISTPOTW SYSTEM — — -- NaoW GRADE
OOBS Rehabilitation
• Rehabilitate 4 of 5 pumps,
remove fifth pump
• Rehab ancillary facilities r
• Replace electrical equipment
and switchgear
CenGen Switchgear Replacement
CENTRALGENERATIONSWITCNGEAR
• Existing switchgear - - BusA — — — — —Bus G1 — Bus . . — — — — . BusB — —
L._. _ . _.
nearing end of life Loads Central Generators s Loads
OCEAN OUTFALL BOOSTER STATION SWITCNGEAR
Addresses critical - - - -BusA I Bus -- - --------
• L . _._._. _ . I 1 . _._._..
single point of failure 1- ' 1 . —.EPSA STANDBY POWER.—. s ' _.—.--- -- - -----
single Does
1 ] 3 O
• Well suited for I- - - - - - - - - - - -- (4)1MW ._ _ _ _ _ . _ _ _ _ _ _
Bus A I
included in same _. ._._ . _ . _. _ . _. _ ._ - - - - _Bus._B _ .. _ . _._. :
O O 3 3 O O
contract as GOBS wW FLOW PUMPS PLANT WATER PUMPS LOW FLOW PUMPS PLANT WATER PUMPS
Rehab
P2 -107 SCADA System Upgrades
• Monitoring and control of power distribution
equipment
• New fiber backbone for Industrial Control System
network
• Plant-wide loading shedding network
• Contractor-provided hardware sole-sourced to Schweitzer
Engineering Laboratories
• Network configuration and programming by Schweitzer
Engineering Laboratory through Professional Services
Agreement
Schedule
Construction Award Dec 2018
OCWD's GWRS FE Completion Dec 2022
Plant Water Pump Station Complete Aug 2023
Contract Final Completion July 2024
Bid Tabulation
. Amount
Engineer's Estimate $90,772,263
Schimmick Construction Co., Inc. $90,200,000
PCL Construction, Inc. $96,899,792
Flatiron West, Inc. $99,858,000
Kiewit Infrastructure West Co. $110,248,000
OHL USA, Inc. $117,100,000
Required Board Actions
Professional Construction Services
Agreement (Brown & Caldwell) $8,563,913 Dec 2018
Construction Contract $90,200,000 Dec 2018
Load Shedding Services In negotiation TBD
(Schweitzer Engineering Laboratories)
Builders All Risk Insurance (if needed) <$500,000 TBD
Recommendations
• Approve a Professional Construction Services Agreement with
Brown and Caldwell to provide construction support services for
Ocean Outfall System Rehabilitation, Project No. J -117, Outfall
Low Flow Pump Station, Contract No. J-117B, for a total amount
not to exceed $8,563,913; and
• Approve a contingency of $856,391 ( 10%)
Recommendations
• Receive and file Bid Tabulation and Recommendation for the
Outfall Low Flow Pump Station, Contract No. J-11713;
• Receive and file Orange County Sanitation District's Notice of
Intent to Award dated November 20, 2018;
• Award a Construction Contract to Shimmick Construction
Company, Inc. for the Outfall Low Flow Pump Station, Contract
No. J-11713, for a total amount not to exceed $90,200,000; and
• Approve a construction contract contingency of $7,216,000 (8%).
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
2 IS
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT PLANT
NO. 2, PROJECT NO. P2-123
GENERAL MANAGER'S RECOMMENDATION
Approve a budget increase of $7,250,000 for Return Activated Sludge Piping
Replacement at Activated Sludge Plant No. 2, Project No. 132-123, for a total budget of
$20,000,000.
BACKGROUND
The Oxygen Activated Sludge Secondary Treatment Plant at Plant No. 2 has been in
service since the early 1980s in a corrosive environment next to the ocean. The original
concrete and steel require refurbishment and/or replacement. Three projects are
designing complimentary improvements to the process area.
The Return Activated Sludge Piping Replacement at Plant No. 2, Project No. P2-123, is
currently in the design phase. The project was scoped to replace approximately 1,800
feet of corroded steel pipe. Several factors identified in design have increased the
estimated construction complexity and the associated cost of the pipe replacement effort
for a budget impact of$4,450,000.
Activated Sludge Aeration Basin Deck Repair at Plant No. 2, Project No. P2-118, recently
completed a construction contract to repair cracked and spelled concrete that pose
oxygen safety threats and are likely to reduce the life of the concrete decks. The crack
and spall repair methods were very effective; however, the engineer's estimate for the
amount of required crack and spall repairwas approximately one-third of the total needed.
Rather than triple the construction contract on a change order basis, staff had intended
to finish the work on a second construction contract with an estimated cost of$2,000,000.
The Activated Sludge Basin Lighting Repair at Plant No. 2, Project No. FE18-04, was
created to replace 92 exterior light poles and fixtures, with an estimated construction cost
of $800,000. The light poles are corroded to the point where some light fixtures have
fallen, posing an immediate threat to operators. The poles will be replaced with a pivoting
base that allows the fixture to be lowered for servicing at deck height, eliminating the use
of ladders that create a potential fall hazard.
The project would absorb construction for Project Nos. P2-118 and FE18-04 at an
estimated cost of $2,800,000. This, along with the higher costs for Return Activated
Sludge Piping Replacement, would require a total budget increase of$7,250,000.
Page 1 of 4
RELEVANT STANDARDS
• Ensure the public's money is wisely spent
• 24/7/365 treatment plant reliability
PROBLEM
The complexity of the return activated sludge steel pipe replacement is more difficult to
construct than the predesign estimate anticipated and additional isolation valves at each
basin are requested. The budget for Return Activated Sludge Piping Replacement at
Activated Sludge Plant No. 2, Project No. P2-123, is not sufficient for the now-higher
estimated construction cost.
The construction phases of the three projects (P2-123, P2-118, and FE18-04) are
scheduled to occur in the same time frame and in the same area. The work, therefore,
must be carefully coordinated due to overlapping shutdown requirements and sequencing
constraints.
PROPOSED SOLUTION
Combine the construction execution of Project Nos. P2-123, P2-118, and FE18-04 into
P2-123 to reduce coordination risk and improve efficiency. Increase the project budget
of the Return Activated Sludge Piping Replacement at Activated Sludge Plant No. 2,
Project No. P2-123, by $7,250,000 for a total budget of $20,000,000. No future
construction contracts would be executed under Project Nos. P2-118 and FE18-04.
TIMING CONCERNS
Without additional project funds, not all the work can be completed. The loss of a section
of piping could also lead to a short-term loss of operational flexibility in the aeration basin
facilities.
RAMIFICATIONS OF NOT TAKING ACTION
Not approving this project increase will prevent award of a construction contract for the
repair work as currently designed. Additional design costs and greater risks to operations
would be required to decrease the construction costs.
PRIOR COMMITTEE/BOARD ACTIONS
June 2018—Approved a reduced project budget of$12,750,000 for the Return Activated
Sludge Piping Replacement at Plant No. 2, Project No. P2-123, through the Fiscal Years
2018-2019 and 2019-2020 budget.
April 2017 - Established a project for Return Activated Sludge Piping Replacement at
Plant No. 2, Project No. P2-123, with a budget of$15,000,000.
Page 2 of 4
ADDITIONAL INFORMATION
The original budget for Project No. P2-123 was based on construction cost estimates
developed during the scoping phase of the project, which also included replacement of
Waste Activated Sludge piping. During project development, the Waste Activated Sludge
piping was determined to be in good condition,allowing it to remain in place. This reduced
the estimated construction cost from $9,500,000 to $7,000,000. The project budget was
reduced in the Fiscal Years 2018-2019 and 2019-2020 budget approved by the Board in
June 2018. The construction cost estimate developed after further design development
totaled $11,200,000, approximately $4 million more than the earlier estimate.
Construction costs increased due to the complexity of construction and provisions to add
new valves to allow isolation of individual clarifier basins.
The budget impact of this higher construction estimate is $4,450,000 for the original
scope, plus $2,800,000 for the concrete and lighting repair scopes.
CEQA
This project is exempt from CEQA under the Class 1 categorical exemptions set forth in
California Code of Regulations Section 15301 - Section 15301 (Class 1) exempts from
CEQA "the operation, repair, maintenance, permitting, leasing, licensing, or minor
alteration of existing public or private structures, facilities, mechanical equipment, or
topographical features, involving negligible or no expansion of use beyond that existing
at the time of the lead agency's determination," Including "(b) Existing facilities of both
investor and publicly-owned utilities used to provide electric power, natural gas,
sewerage, or other public utility services." The project consists of minor alterations to
existing public facilities.
A Notice of Exemption for this project was filed and recorded with the County of Orange
on March 29, 2018, and 180-day statute of limitations has passed.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation Districfs Purchasing
Ordinance. This item has been budgeted (Line item: Section 8, Page 60), but the budget
is insufficient for the recommended action. The increase in budget authority will be offset
by the following savings:
• $1,000,000 reduction to Activated Sludge Aeration Basin Deck Repair at Plant No. 2,
Project No. P2-118.
• $1,750,000 reduction to Small Construction Projects Program associated with
Activated Sludge Basin Lighting Repair at Plant No. 2, Project No. FE18-04.
• $4,500,000 reduction in Plant No. 2 Digester Facilities Rehabilitation, Project
No. P2-91-1. This reduction is a result of an unrelated reduction in the anticipated
cost of that project.
Page 3 d 4
Staff anticipates completing the three budget reductions in the upcoming Budget Update
in 2019.
Date of ADDroval Contract Amount Contingency
06/27/2018 $12,750,000
12/19/2018 $ 7,250,000
$20,000,000
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
PowerPoint Presentation from 1215/18 Operations Committee meeting
RL:dm:gc
Page 4 of 4
em
����'-��! + ail ��r ■
�+ -
Returned Activated Sludge Piping Replacement at
Plant 2, Project No. P2-123
December 2018x �
Project Overlaps
+ J
1
ems► � �- �.
P2-118 Elements
FE18-04 Elements
Project Elements
Current Scope
• 132-123 _ Replace 2,000 linear feet of leaking Return
Activated Sludge piping
Proposed Combined Scope
• P2-118 _ Repair corroded and cracked concrete
• FE18-04 _ Replace corroded light poles
• Valve Addition
:.T� Insert twelve plug valves . allow
isolationof clarifiers
J
�I �1
P2 -118 Project Objectives
• Mitigate Oxygen Release
• Crack repair
• Expanding polyurethane
• Maintain Structural
Integrity of Basin Deck
• Spall repair
• Replace corroded
reinforcement
Spall Repair
Ea 1 y! r
• Hollow concrete but no
visual spalling
• Sounding test revealed 4x
more spalling than originally
designed for
L" J
i
Spall Repair
-_- extents of hollow
soundiN
�3> -- ----_ concrete.yefdacen
spailingo
_ � lling
j original
_ demarcated area
. j that was visually
_ spatted oo surface
n,
i
q
Crack Repair
• Extensive _
cracking yielded -
approximately 2x
more cracking
than estimated
r�
' p,
FE -18 -04 Project Objectives
• Replace corroded light poles
and fixtures at AS Basins and
Secondary Clarifiers
n
-- — High-efficiency LED
fixtures with "dark-sky"
r CF shielding
Collapsible poles for
r ` better maintenance
I R •i.
access
Reasons for Combined Construction
• Overlapping locations
• Schedule and risk reduction
• Economy of scale
Budget
P2-123 Piping $12,750,000 $20,000,000 $7,250,000
Replacement
P2-118 Aeration $2,800,000 $1,800,000 ($1,000,000)
Basin Deck Repair
FE18-04 Light Pole $1,950,000 $200,000 ($1,750,000)
Total $4,500,000*
* Addition funding:
$4500,000 reduction in Plant No. 2 Digester Facilities Rehabilitation, Project
No. P2-91-1. This reduction is a result of an unrelated reduction in the anticipated
cost of that project.
Recommendations
• Approve a budget increase of $7,250,000 for Return
Activated Sludge Piping Replacement at Activated
Sludge Plant No . 2, Project No. P2-123, for a total
budget of $20,000,000.
Questions
OPERATIONS COMMITTEE Meeting Date TOBE.Of Dir.
12/OS118 12/19/18
AGENDA REPORT Item Item Number
3 19
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Assistant General Manager
SUBJECT: SUNFLOWER AND RED HILL INTERCEPTOR REPAIR,
PROJECT NO. 7-66
GENERAL MANAGER'S RECOMMENDATION
Establish a project for Sunflower and Red Hill Interceptor Repair, Project No. 7-66, with
a budget of$5,500,000.
BACKGROUND
The Orange County Sanitation District (Sanitation District) completed construction of the
Sunflower Interceptor Reach 3 and Red Hill Interceptor Reach 4 and 5, Project No. 7-6-3,
in 1971, ranging in size from 27 inches to 84 inches in diameter. The concrete pipe
includes PVC-lining on the upper 270-degrees of the pipe section to protect the concrete
from corrosive sewer gas. PVC lining was not installed on the bottom 90 degrees
because it was expected to be covered by the liquid in the pipe, which is not corrosive to
concrete.
In 2015, as part of the Sanitation District asset management program, the pipe between
Red Hill Avenue at MacArthur Boulevard in Irvine and Sunflower Avenue at South Timber
Street in Costa Mesa was assessed for internal corrosion and lining condition. This
section also includes three siphons, but it was only possible to enter and assess one of
the three.
RELEVANT STANDARDS
• Protect Orange County Sanitation District assets
PROBLEM
The Sanitation District's assessment indicated that a significant portion of the PVC joints
had failed throughout the length of the pipe evaluated. The PVC liner also failed in the
inspected siphon and was noted to have failed in the visible portions of the other two
siphons.
Reduced wastewater Flows in this reach of pipe have resulted in liquid levels dropping
below the protective 270-degree PVC lining for part of the day. During that time, the
unprotected concrete below the liner is exposed to the corrosive sewer gases.
Page 1 of 2
PROPOSED SOLUTION
Authorize a project to repair all weld strips and other PVC linerfailures in accordance with
the manufacturer's installation and repair specifications. The project is expected to install
Flow control measures within the pipe to artificially elevate water levels to above the
protective PVC lining to avoid exposing the concrete portion of the pipe to corrosive
conditions. Any significant concrete corrosion that currently exists will be repaired. The
project budget is based on the most cost-effective solution for repair of the lining failures
noted in the assessment and additional failures likely to be found.
TIMING CONCERNS
The concrete continues to corrode where PVC lining has failed or is not installed.
Additional corrosion could ultimately result in a structurally compromised pipe and
structural failure.
RAMIFICATIONS OF NOT TAKING ACTION
Increased risk of failure of the pipe due to continued concrete corrosion causing a sewage
spill and property damage.
CEQA
CEQA not required to establish a projected budget. CEQA requirement will be
determined prior to design.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. The costs for this project will be charged to the operating budget of Division
820. The FY18-19 and FY19-20 Division 820 operating budget is sufficient for the costs
to be incurred in those two fiscal years (Line item: Professional & Contractual Services,
Section 6, Page 76).
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.corn with the
complete agenda package:
N/A
RL:dm:gc
Page 2 of 2
OPERATIONS COMMITTEE MeeingDale TOBd 011Dir.
1VO5118 12/1g/18
AGENDA REPORT Item Number Item 20Mber
4 20
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: PLANT NO. 1 RECTANGULAR PRIMARY CLARIFIER OVERHAUL
GENERAL MANAGER'S RECOMMENDATION
A. Approve a Purchase Order contract to Mehta Mechanical Company Inc. for the
mechanical rehabilitation and overhaul of twenty-four (24) Primary Clarifier tanks
at Plant No. 1, per Specification No. S-2018-98513D, for a total amount not to
exceed $1,998,000; and
B. Approve a contingency of$199,800 (10%).
BACKGROUND
At Orange County Sanitation District's (Sanitation District) Plant No. 1 there are 52
rectangular primary clarifier tanks which are the work horse of the wastewater treatment
process, and their reliable operation is critical to meet both effluent treatment standards
and provide quality water to the Orange County Water District (OCWD) for reclamation.
Recently, the Sanitation District has experienced breakdowns impacting several
rectangular primary clarifier tanks affecting the ability to process wastewater efficiently
and limiting treatment flow capacity. In July 2017 the Board of Directors authorized
refurbishment of 10 of the 52 primary clarifier tanks. The remaining 42 primary clarifier
tanks will be refurbished over the next several years.
RELEVANT STANDARDS
• 24/7/365 treatment plant reliability
• Meet volume and water quality needs for the GWRS
• Maintain a proactive asset management program
PROBLEM
All influent wastewater must go through primary treatment. Due to the age and worn
condition of the mechanical components associated with the rectangular primary
clarifiers, refurbishment is required. There is an increasing risk of having to divert flow
from Plant No. 1 to Plant No. 2 due to the increasing potential for some of the primary
clarifiers not being available, which would result in a reduction in the amount of flows
available to the Groundwater Replenishment System (GWRS).
Page 1 d 3
Additionally, the primary clarifiers must operate at an increased reliability level to
support upcoming CIP projects that place greater reliance on the Plant No. 1 primary
clarifiers for treatment during construction of these projects.
PROPOSED SOLUTION
Staff recommends approval of a mechanical overhaul and rehabilitation of twenty-four
(24) rectangular primary clarifier tanks at Plant No. 1.
TIMING CONCERNS
CIP projects P1-133 and P2-98, which will begin construction in 2021, will place a
greater emphasis and reliance on the rectangular primary clarifiers at Plant No. 1.
Refurbishment of the rectangular primary clarifiers should be completed before this
time.
RAMIFICATIONS OF NOT TAKING ACTION
Failure to take action will impact the Sanitation District's readiness to treat primary
treatment flows which will potentially delay or lengthen the duration of upcoming CIP
projects that are dependent on reliable primary treatment capacity during their
construction periods, as well as our ability to support the ability to supply the desired
quantity of effluent water to the GWRS.
PRIOR COMMITTEE/BOARD ACTIONS
June 2017 - Approved a Purchase Order to Frost Company for the mechanical
rehabilitation and overhaul of ten (10) Primary Clarifier tanks at Plant No. 1.
ADDITIONAL INFORMATION
The Sanitation District issued a Notice Inviting Bids on September 27, 2018 for the
mechanical rehabilitation and overhaul of twenty-four (24) Primary Clarifier tanks at
Plant No. 1, per Specification No. S-2018-98513D. Four (4) sealed bids were received
on November 13, 2018. The bids were evaluated in accordance with the Sanitation
District's policies and procedures. Summary information of the bids received is as
follows:
Bidder Amount
Mehta Mechanical Company Inc. $1,998,000
Tharsos Inc. $2,029,920
Spiess Construction Co. $2,086,400
California Building Evaluation & $2,708,000
Construction Inc.
Page 2 d 3
Staff recommends awarding a purchase order contract to the lowest responsive and
responsible bidder, Mehta Mechanical Company Inc., for the mechanical rehabilitation
and overhaul of twenty-four (24) primary clarifier tanks.
A contingency of 10% is recommended because of the potential for additional work
required resulting from operating constraints and seasonal wet weather occurrences.
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted in the FY18/19 and FY19/20 Operating
Budget, Division 870, Plant No. 1 Maintenance (Section 6, Page 92, Line item: Repairs
and Maintenance).
Date of Approval Contract Amount Continaencv
1 2/1 912 01 8 $1,998,000 $199,800(10%)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (wwwocsd.com) with the
complete agenda package:
• PowerPoint Presentation from 12/5/18 Operations Committee meeting
Page 3 of 3
VIA
Rectangular • Clarifier
Overhaul
Riaz Moinuddin
Maintenance Reliability Mgr.
December 5, 2018
ZIPI.
GOALS
• Re-establish Maintainability of the Rectangular
Primary Clarifiers at Plant No. 1 .
• Ensure Readiness to Support Future Project Outages
that are Dependent on Reliable Operation of Primary
Clarifiers at Plant 1 .
Overview of Responsible Area
0jaw
_:1 }
PCs 6-31
�
J - '
_ ,
I „ PRIMARY
CLARIFIERS 3,4, & 5
- Offline
_ PCs 1 & 2 Slated For
. . . . . . . . . �Kjs ' � Demolition
Y
�k RECTANGULAR
1 \/ 7" PRIMARY
ZLARIFIER6 Of •`
jy
Overhaul Plan- Rectangular Clarifiers
f PC 7 PC 6 26 CLARIFIERS (6-31)
2 TANKS/CLARIFIER (— Capacity of 210 mgd )
f PC 9 PC 6 TOTAL of 52 TANKS Being Restored (3 Phases)
EACH TANK is 1951 x 20'W x —10.8'D
PC 11 PC 10
PC 12 — Close to 11 years of Continuous Operation
t !PC15 PC 14
TUNNEL 14
r Pc 17 N Pc 16 PHASE-1 Completed f/y 17-18
J
W
f PC 19 i PC 16 y
� PHASE-2 Proposed
w PC 21 PC 20
w PC 23 y PHASE-3 Future
f PC k25z4
�C 26
PC 30
SOUTH P1-37 TUNNEL
Overhaul Plan
OVERHAUL & REPLACE SLUDGE COLLECTOR MECHANISMS
• SPROCKETS/GEARS
• CHAINS, BEARINGS
• WEAR PARTS
• Misc. Components
,e r O
` T z
i -
a
_ I
' oo)
I �
• 01
Key Issues
0
_ Pr
Existing Jaw
Clutch and Drive
Chain
�. New Drive Chain
r And Sprocket
Key Issues
Existing Sprockets
• Worn-Out
Teeth/Gears
New Bull Sprockets
Key Issues
i
J Existing Chain and Wear Strip
!-� `' _ • ,, Worn Wear Strip
-i • Worn Chain
New Chain and Wear Strip
Key Issues
Existing Drive Sprocket,
Drive Chain, and Collector
_ Chain
d:
r- tY
. ., 5
--�`" New Drive Sprocket,
Drive Chain, and Collector
/tIT
Chain
Key Issues
Existing Wear Strip & Chain
• Worn Chain
• Wear Strip Bowing
New Wear Strip & Chain
Coordinated Implementation
R1-133 offline _
the "s
Un TO!
Coordinated Implementation
C'
0
a P2-122
! a _. th 4Ma P2-98A
P2-98B
a �.`}r� f4..h� .I' �+ ��tY'_..��L �.M1u � 'Y'J IIY:.1� �Jf"J�,���ll�tlRe�.`. .�. `• i .b�3" :.
Questions ?
ADMINISTRATION COMMITTEE Meeting Date TOBE.Of Dir.
12/12/18 12/19/18
AGENDA REPORT Item Item Number
2 21
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT: RECORDS RETENTION SCHEDULE
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 18-22 entitled: "A Resolution of the Board of Directors of the
Orange County Sanitation District Adopting the Records Management Program Policy
and Procedures & Updated Records Retention Schedule, Authorizing Destruction of
Obsolete Records, and Repealing Resolution No. OCSD 15-16".
BACKGROUND
The Orange County Sanitation District's (Sanitation District) Records Management
Program is being updated to meet new statutory regulations and agency changes to
better serve the operational needs of the Sanitation District. The Record Retention
Review process, comprised of the Executive Management Team, General Counsel's
Office, departmental subject matter experts, and the Records Management Specialist,
has reviewed and recommends the proposed changes.
The Sanitation District's Records Management Program documents how long various
types of information are to be kept, as dictated by the legal, fiscal, operational, and audit
needs of the Sanitation District. As a public agency, there is an obligation to effectively
manage and maintain the Sanitation District's information, most of which is classified as
public information.
RELEVANT STANDARDS
• Maintain and adhere to appropriate internal planning documents, Resolution No.
OCSD 15-16 (Current Records Retention Schedule)
• Comply with Government Code Sections 60200 through 60204
PROBLEM
There are current legal regulatory requirements that are not reflected in the Sanitation
District's existing Records Retention Schedule.
Page 1 of 2
PROPOSED SOLUTION
Maintain the Sanitation District's current Records Management Program Policy and
Procedures and adopt the updated Records Retention Schedule to reflect the current
legal regulatory requirements.
TIMING CONCERNS
Destruction of some records may not be authorized until the updated Records Retention
Schedule is approved.
RAMIFICATIONS OF NOT TAKING ACTION
Records will be kept longer than legally required which will impact compliance with the
current retention regulations as well as the need for storage space.
PRIOR COMMITTEE/BOARD ACTIONS
July 2015 -Adoption of Resolution No. OCSD 15-16 Adopting the Records Management
Program Policy and Procedures, Updated Retention Schedule, Authorizing Destruction
of Obsolete Records, and Repealing Resolution No. OCSD 10-12.
July 2010 -Adoption of Resolution No. OCSD 10-12,Adopting the Records Management
Program Policy and Procedures, Retention Schedule and Record Definitions, Authorizing
Destruction of Obsolete Records, and Repealing Resolution No. OCSD 09-07.
ADDITIONAL INFORMATION
As dictated by the current legal, audit, business, and operational needs of the Sanitation
District, changes were made to existing record types, which include the retention length,
record descriptions, and legal citations.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(mm w.ocsd.com) with the complete agenda package:
• Resolution No. OCSD 18-22
• Records Retention Schedule 2018
Page 2 of 2
RESOLUTION NO. OCSD 18-22
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE ORANGE COUNTY SANITATION DISTRICT
ADOPTING THE RECORDS MANAGEMENT PROGRAM
POLICY AND PROCEDURES & UPDATED RECORDS
RETENTION SCHEDULE, AUTHORIZING
DESTRUCTION OF OBSOLETE RECORDS, AND
REPEALING RESOLUTION NO. OCSD 15-16
WHEREAS, it is necessary to establish a policy to maintain a Records
Management Program ('Program") that provides for the identification, access, and
protection of all records generated or received by the District; and
WHEREAS, said Program ensures that all District records are created, received,
maintained, and destroyed in a legal and cost-effective manner, in accordance with
operating requirements for District business and applicable statutes and regulations; and
WHEREAS, the Board of Directors of the District are authorized, by the provisions
of California Government Code Sections 60200 through 60204, inclusive to destroy
records under certain conditions, and
WHEREAS, it is described and appropriate to authorize the destruction of the
records on a routine basis; that have been retained for a defined period of time, that are
copies of originals on file with the District, or that have been preserved in conformance
with all applicable statutes.
NOW, THEREFORE, the Board of Directors of Orange County Sanitation District,
DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1: Adoption of the Current Records Management Policy and
Procedures. The Board of Directors of the District hereby adopts the currently established
Records Management Policy and Procedures.
Section 2: Adoption of Updated Records Retention Schedule. The Board of
Directors of the District hereby adopts changes to the Records Retention Schedule, set
forth in Appendix "A" incorporated herein by reference.
Section 3: Authorization for Destruction of Records. The destruction of records,
papers, and documents is hereby authorized, pursuant to California Government Code
Sections 60200 at seq., after such records have been retained for the minimum time set
forth in the Records Retention Schedule.
Section 4: Destruction of Records After Preservation. Any record not expressly
required by law to be filed and preserved may be destroyed at any time after it is
preserved in conformance with the requirements of California Government Code Section
60203.
OCSD 18-22-1
Section 5: Destruction of Duplicates. Pursuant to California Government Code
Section 60200, any duplicate record, paper, or document (the original or a permanent
copy of which is in the files of any office or Department of the District) may be destroyed
after confirmation with Records Management that such original or permanent copy
remains on file in the District.
Section 6: Retention of Records Not Mentioned. All records, papers, and
documents not mentioned in this Resolution shall be retained.
Section 7: Resolution No. OCSD 15-16 is hereby repealed.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
December 19, 2018.
David John Shawver
Board Chairman
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
OCSD 18-22-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-22 was passed and
adopted at a regular meeting of said Board on the 1911 day of December 2018, 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 191h day of December 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 18-22-3
Citation Code. Retention Code, Orange County Sanitation District
Cce Code ofCrvO Pnwdare(CA) C C,ardmal Records Retention Schedule General Retention Schedule Information
CCR Cahania Code of Re,ulallons CL Clo.us,Con'lIM Any Public Rewrds Ac[rtquesls,liigaliony ands,claims and inowmatiormsuspends the
CPR Cade f.an.Rwyconlom EX Eapiea or Papinlion IDcted wumion periods Anelmucal and proper deamntion nelleada are required prorm
RC Eaton— EL 24cnomc deslmymg all official rewNsas amad In the Dlabide RecoNS Rovabon Policy.Retenron
" Govenmem CWe(Glitomia) It Hiaboncal andlabuftlon afro,onan nppan to all nNln rypea holudi g bath paper and eluwnle
B&S Health&Safty Cade LF LihafPaciliry,Equip.aSOMvarc _ dxwnnM
IRC Inlenat Revenge Cade LO Liu acconncatiun or Pemm-M
819 In1enN inowne Sawiw MA Matueiry Copies,rutex,preliminary drafts and transitory recoNs can be destroyed who no longer
LC Labor Code(CA) NN Nylon No longerNmks nwba far iff.bacreat and do no,regnie an.,autlnnmicia,'.en original morn
PC Penal Coo,(CA) S Supero]M haw mcaN ones,denewason term all copies and sup&ages muet be deepi along was
OMB rates ofMan,,&Budget 8P saganad the arlglm4 opera—coins.madfv c/Me guard.
PATC Revenue&tomon Cade T ruminated
SOS Sareuryafsmte v Viiul Official Records count be,durnrded in Mah bins They muss be submagedm RaoNa
USC Untied semen Cade i i Board Se"ices Managememoimemuow✓esa--iont
WC wo-c do
Returns. Special Spatial,Consideration
Retention Record Type Length Retention Citations l Comments
Nambor rvwm..a Vaal Co...... mRorl01
eyone.
BSWoI Affidavits of Publications Notices LO GC§60201,GC§54960.1(a)(1)
BSW02 Agenda and Committee Reports LO V H GC§34090;SOS c22;S.S c42
Agreements&Contracts,Political&Outside Jurindictiong/Agencies:
BSW03 Cooperative Agrcemerts,JPAb(Joint Powers Authorities),JFAs(Joint Finance LO V GC§60201;OC§60201(d)(9);OC§W201(d)(1)
Authorities),Interagency,etc.
BSWM Annexation Files LO V H GC§34090;GC§60201(d)(1);SOS c28
BSW05 Hid.-Awarded (Board Reviewed) LO GC§60201(d)(6);SOS c30;SOS c27
BBeOoS Hids-Unsoccegg[ul (Board Reviewed) 2 GC§34090;OC§60201(d)(11);SOS 030;GC
§602010(d)(6)
BSWO] Hoard Administration Files: T+10 V PC§801.5 22;29 USC$1113;SOS c18;GC§34090(d)(1)
Lo9aly Oaths,Election Records,Directors Lists,Contact Information
BSM08 ConNrtoflnterest(FPPCITIngs) T+9 GC§81009(e);SOS c18
Contracts/Agreement-Board Review and Approval: GC§60201(d)(1);CCP 339 at act,.;SOS cU;GC
Postal" Specifications LO V §34090(e)
L Bound semcee OCSD 18-224 adoprad:rm
Citation Code. Retention Code, Orange County Sanitation District
Cce Cree ofCmh Proadu ,(CA) C Conadmal Records Retention Schedule General Retention Schedule Information
CCR Cahnn io Code d Regulations CL Meet er ConaPlnM Any Public Records Act requests,lirigalien,audits,claims and imeaiigmiormsuspends the
CPR Cade of.dml Rotator— EX Ppied- pinion l000l mi-pciods Automation end proper deauw.don coconuts are required p-on
RC town—Cole(CA) EL Election' dafivylrggll official—W-e it In to.Dlsn de RecoNS R..- Rehnron
GC Govecomem Cde(Glitumia) H Hiabncal ondaawetlon ajre'artany,&,no all nest.tal notable,bud raper and eioyi
Has Health ffi barm,Cate LP Lihaficiliv,,Equip.argument _ sxunuM
Par Iceonl Revenge Cede LO Lik afIXpnwnun or Pemmnem
R19 Imemat Rawnue Servire BU MaNaty Copies,m Pact-
t,prelnary drafts and rnnsuca,recoN ca
n n be destroyed when no longer
LC Labor Code(CA) NA When No Lon rNm4d .add to,Distiid baconwe and do not aice no.,ggnmavnan.•x'den anginal raaW
PC Penal Cad,(CA) S sepne]M pare excel tbdr denowedon Iona all copies and duo&ores wuu be dewroyN along with
OMB Otfiee air..a,,Ayudgn SP 9epvaW the ar lm4 mgandleas o/de coatis oJde record.
RqW Revenue&tranow Cede T Terminated
SOS sc,werycfsmu V Vital Official ReroW connot be,becomes in coach bins.Tory must be saturator Rnorda
OSC 11boad Sueea Cade i i Board .Se"ices Managememjoec-acdeu—lion.
wC wa'rcadn
ReteRecaneon s slot Smra i,Consideration
N..b,n accord Type Length Retention Cimaons I Comments
umber rvnnu.Y, Va.. conraenthl xi.dnot
no
BSn010 Director's Agency Correspondence: LO GC§W201
Appointments and Reorganizations
BSD011 Ethics Training: 5 GC§53235.2(b)
Sexual Harassment Board Only,Ethics Training Board&Employee
BSW12 Formation Files LO V H GC§60201(d)(1)
Lead Record,: GC§60201(d)(8);OC§34090(at Originals Managed by
BSW13 Easements,Grant Deeds,Quit Claim Deeds,Abandonments,Condemnations,Real LO v H Board Serrices
Estate Purchase&Sale,Property Agreements,Encroachment Permits,Etc.
BSW14 Legal Opinions LO V C H SOS c23
BSW15 Litigation Files CL+6 GC§60201(d)(4)
BSW16 Meeting Minutes: LO V H GC§61YL01(d)(3)
Board&Board Committees
BSW17 Ordinances LO V H GC§60201(d)(2)
x Baa.n Ser.4as OCSD 18-22-5 saopkdreo
Citation Code. Retention Code, Orange County Sanitation District
CCP CdeofC-1 Proadure(CA) C Coandmal Records Retention Schedule General Retention Schedule Information
CCR Cahnn io Code of Re,tamns CL Meet or CompinM Any Public Records Act requests,litigation,audit,claims and imeatigatinaiuspends the
CPR CWeof.dml R,con— EX Ppaaa or Expiration atW«tendon periods Ambanrstion end proper destw.dou nocuwa are required pnorw
RC to limo Case(CA) EL Election' deslx,ang ull official re W-e it In the lusaiche Retools R.— Rehnaon
GC Governer Cda(Califens) H Hiabnew ond/awetlon ajre'.aysffea no all ned4 on.fne4M'g buN Paper and elcwnle
Has Health A Safety rude LP LihafPeciliry,Equip.or SOMvare _ /xwnuM
me on—ad Revenue C'de LO 1,0,afIXpamona or P—..
us Inumat new—Service MA About Copies,rute;preliminary drafts and transitory recoNs can be desneyed whin no longer
LC Labor Cde(CA) Nat When No Lon rNm4d awdto,Oistiid busirwe-it do not req'ice no.,a utboncencay'.en-ho-f raaW
PC Penal Cde(CA) S Supero]d haw mebN assay deoruerion ram all copies and Jup&ara wuu be der sal along way
OMB miss,at..a,,ar i aloo SP Separated the ariglna4 ragandleaso/We atedfa oJMe rseayd.
PACPC Revenue&tranow Code i renounced
Ws Sc,ona' fstu c vitil Official RaeoW mnnotbe Arrnrded in Msh bin&They must be submbedm Recenha
OSC 11boad Slnea Cass, Board .Servlces Manageviemjorse-radeu—lion.
wC wa'rCda
Retention s enrol Sl ra ,Con filt,i .ni
anneal.. Reeord.gpe Length Recnnnn Cimnnna l Cnrmnenn
N..ber rvwtmn nitt vmt conraeadnl yokoriot
eyo
Recorded Project Decimal
BSO018 LO V H GC§Ii0201(d)(8);SOS c26
Board Approved lYotice of Completion
B50G19 Resolution, LO V H GC§60201(d)(2);GC§340906
BS0020 Tapes&Digital Recordings(Audio): LO GC§54953.5(b)Minimum retention 30 days oruntil
Board or Committee Meetings adoption of the minute.Per Brown Act
Director Commonications: PC 801.5 22;29 USC§I113;Director communications
BSOO21 General Board Correspondence 3 subject to the Brown Act(e.g.,prohibifions on serial
meetings,private dehbemtione)
BSO022 Colors CL+6 GC§60201
BS0023 Public Record Act Requests CL+2 GC§60201(d)(5);SoS c23
s eoard bassoons OCSD 18-22-6 aaaPabook.
Caution Codes Retention Codes Orange County Sanitation District
Cce Code afColl pm¢dnre(CA) C Canftdmal Records Retention Schedule General Retention Schedule Information
CCR Califamie Code of section. CL Clood or('ompletal Any Public Records Act rtqucss,lingetioa audid,claims and investigations suspends the
CPR Coeof.eb.Regulmana EX Pound or expicen. Inevedwandva pclii A"111111ion end proper dnnecal"onaleda art required I",to
RC EkWon¢dead(CA) EL 0-wer, designers all official rewNsas andand In the DlsGUTs Peanuts Roanllon Policy.Rehnnon
GC Govemmem Code(CaErmno H Intended and de don oftsonNs opening all nNln types me4M'g both paper and elceonle
R&S Ileuhh&safety Cade LF Lihaf eeility,Equip.ea SoRrvare _ /aways.
me swandi Revenue Cade LO Lik afIXpnwtent or Pnn i
us Indenel Revemle Service MA Maavity Copies te;preliminary drafts and transitory reaudy can N des,myed when no lmlgv
LC Labor CNe(CA) NN when No IdesperNm4tl needed far Distrait bovine and do not equine pity autlmnand,-When original wevr6
PC Panel CWe(CA) S supero]M base reacaN lbdr deuruerion bans all capes and duptleares wuu be de,oroyN along was
OMR 0lfioe atMane,,ar yodgn SP sepamad the migli wi endow ofthe awfin of&,rimed.
R&'1'C Revenue&Tmcubse Code T Terminated
sos saywu'afsmte V Vast Official Records—.atbe dcani in rant his.Tbry must be submNeOm Feverda
use umads,etea Cade Contracts, Porch. & Materials ^fannge,nen'fremaredeatmetieve
we wmmcwt,
RNmdoa aNenrlon Phi storage C.midainitim
number Rneam T,,de Leads a— Va.. conMgda xlRo,lml unions—at dom l cons—mis
"sonfinde
Contract&Agreement File-Capital Improvement Projects(CIP): OC§60201;GC§60201(d)(6);GC§60201(d)(8)SoS c
CPMWI (Includes Insurance cartiftcates,authorization document,change orders, LO V 220ri Bound Services
amendments,notices,construction,etc.) Originals Kept
CMM2 Contract&Agreement File-Non Capital Improvement Projects,(Non CIP): CL+6 V OC§60201; GC§60201(d)(12)
Professional Services,Equipment,Supplies,eM.
CCP§337.15 Unsuccessful Bid Documents rearmed to
Contractor after Contract is Awarded.The escrow bid
d,ummarts for the awarded contractur are renuca d once
CPME03 Esmnve Bid Documents LF V C the construction concoct is complete.
OCSD sets as a temporary custodian of the documents,
which reruain the property of[he bidders. These
documents are held confidentially.
C1PMIg6 Procurement File: CL+6 OC§60201;CCP 337;SoS o30
RIP,NIV,Addendum,Q&A Log,Evaluating Material,Correspondence etc.
CPMEGS Purchase Order&Requisition Files(OA and OB): CL+6 OC§602(1 CCP§337;SOS c30
Open Annual and Open Blanket
4 Contracts,Purric Plasmals OCSD 18-22-7 mapaa:mo
Citation Codes Retention Codes Orange County Sanitation District
Cce Cade afCrvl Proadcrt(CA) C Canedmal Records Retention Schedule General Retention Schedule Information
CCR Celifomia Code of Reguln,lonc CL Clood er lun'ItM Any Public Records Ac[rtquesls,liigalioq audio,claims and ioweigatienasuspends to
CPR CWe of.w.Regulanom EX Eapian or Papin,ion Inedwaniea scrods Aulartainsn and Proper desuw.don onuds aw required'dorm
RC r time Coos(CA) EL Eleffen, dalmymg all official rewNs as Aaka in the DlsGUTS RecoNS ReWdlon Policy.Alehouses
GC Govemmem CWe(Califcans) H Houstol and d sion ofoyarL absence ro all nNh ryyea fne4d8,g base eager and elcwnle
Has Health se beat,Cade LF LihafPaciliry,Equip.or SOMvare _ d-...
Inc sward Revenue Cede W Lin afIXpssmays or Pnumnent
IRS InemN moyanne Service MA Mateciry Copies tes,prelimi nary dnfls and tnnsitory iscoNs can be denmyed when no longer
LC Labor Code(CA) No When No Lon r Nm4a ceded to,Di.boy—and do no,require an.,aueimivdan.•nTen ofiginif raaW
PC Panel CWe(CA) S Supnw]M haw meaty tbdy deuruedon hen all ropes and day&ores weer be dewroyN along wash
men Core.ofMan ,,&Budgn RP sepveW the argent wgardlew o/We mw&o/Me ,one
MW Revenue&Tmcones Code T Tennina,ed
soy Eoccou' lento V Viol Official RecaNs wonce be awarded in Mah bins.They nuslbe cubnbeum Rerorls
use Loicesubacade Contracts, Porch. &Materials M°n°inewf'easo—dowse at
Vic wahr(Ade
Purchase Order&RequhiBon Files(OP and OS):
CPM006 CL+2 CCP§337;SOS c30
Open Purcha se and Open Service
Warehouse Materials Management Records: GC §60201;GC§34090;CCP§337,SOS c29 New Kept
CPMOW Includes Disposal of Surplus Assets 4 in Database.Paper records 4 yons;Database indefinite.
Warehouse Records: CCP§337;Now Kept in Database.Papa records 4 years;
CPM008 Sales Orders,Discrepancies,Add To Storey Receivers,Return To Vendors(RTV), 4 Database indefinite.
Shipping Records,Inventories
CPMN9 Procurement Card Documentation Reconci iation,reports,agreement, T+1 GC§60201
correspondence,etc.
CIE Project Bid Package Pre-Award:
Published Invitation for Bid QFB)Documents,including Specifications be CL+10 CCP 337;CCP 337.15;GC§60201(d)(4);GC
CPM010
Drawings,Addenda and Bulletins issued, Bid Requirements Form,Question and §60201(d)(11);Si end-bids=A0+4
Answer Logs,Outreach Materials
CPM01I Bids' CL+10 SoS c30;CCP 337.15
Original Bids,Original bid bends;OSHA logs
Bid Evaluation Materials:
Evaluator certifications,Responsiveness&Responsibility review documents(safety,
CPM012 finance,experience requirements),clarification requests and responses,Bid CL+10 CCP 337.15;SoS c30;CCP 337;343
Evaluation memorandum;notice of award recommendation
Protest Documents-Bids and Proposals:
CPMG13 Protest and associated documents, determination on protest,appeal,determination CL 10 CCP 337,343
ofappeal
s commas,Pact.&Porous OCSD 18-22-8 haoushoh eD
Citation Codes Retention Codes Orange County Sanitation District
Cce CadeefC-1 P.ai,edure(CA) C Canedmal Records Retention Schedule General Retention Schedule Information
CCR Celifomia Code of Regulations CL Clood er lunotled Any Public Rewrds Ac[rtquess,liigalioq audit,claims and ioveatigatiensimpands to
CPR CWeof.w.Regulations EX Eapion or E`pichon lono teI!-'.nods Asommtion and proper desuw.doo melhada art requ niod'dorm
aC Co n—CWa(CA) EL E4c¢omc deslmying all official rewNs as Aaka in the I inords RecoNS Pearson Policy.Rehnaon
" (novemmem Cos,(Calitons) H Houston and d tlon ofsec,rJe nppan to all nNla toes fne4M'g buds gaper and elcwnle
Has Hnhh ffi Safery Cade LF LihafPaciliy,,Equip.or SOMvare _ /xwneM
IRC Imemil Revere Cede LO Lid afIXpommou or Pemmnent
R19 Insonal Revwwe 5ervies MA Maavity Copies wines,preliminary drafts and transitory recoNs can be desio,ed when no longer
La
bor abor CNe(CA) No when No LongerNm4a ceded to,Oi.bourse and do na,requ.o an.,autliurlvncia,' Ten owo wF eaoW
PC Penal Cabe(CA) S bapossi haw meads tbde deuruedon news all capes and aup&ores'wove be dewroyt along wash
OMR office ofManegmmaar Budget RP 9eperaW one not 1.nations s coals.wadfa o/Me wean.
RqW Pocono by Tawtion Cede T Tensioned
SO$ Saresta'aslak V Viol Official Reeans crane be divarded in Mah bins.They must be cubwhteam Recoals
usC unadbvwccede Contracts, Porch. &Materials m°n°en`nnf,saw Ld`chood.a
WC water Cud.
Project Documents-Bids and Proposals: CL+10 CCP 337;CCP 337.15;GC§60201(d)(4);GC
CPM614
Insurance Certificates, preliminary hostages,stop notices,Notice of Completion §60201(d)(11);SoS C30-bids=AU+4
Request for Qualificaoons and Request for Proposals(RFQ and RFP)-Fi eBities
CPM015 Design: IF CCP 337.15
Published RFQ or RFP,Addenda issued,Question and Answer Logs, Outreach
materials,Interview materials
Request for Qualifica tons and Request for Proposals(RFQ and RFP}Non-
CPM016 Facilities Design: CL 10 CCP 337.15
Services,Reports,Studies,Pablished RFQ or RFP,Addenda issued,Question hod
Answer Lags, Outreach materials,Interview materials
CHEW Proposals and sealed fee proposals CL+10 CCP 337.15;GC§60201
Proposal Evaluation Materials:
CPM01E Evaluator certifications,Responsiveness review documents, evaluator seems and CL+10 CCP 337.15;CC§60201
summary sheets,consultant solution memorandum,fee proposal of selected firm,
notice of award recommendation
6 Comrans,Purch.a tdamdals OCSD 18-22-9 Aaopraa:raO
Citation Codes Retention Code, Orange County Sanitation District
Cce Cad—M-1poombace(CA) C Caamenial Records Retention Schedule General Retention Schedule Information
CCR Cohfomie Code thin le. CL Closed oe CompletM Any Public Records Act requests,liignoun,audits,chime and invutigaliens suspends the
CPR Cade d. ed Regulations EX Expired or ExP-,.. ended-o-pciods Asluteele"end proper dnuw.tion mnhads art required I",be
RC EkWon¢Con,(CA) EL Ens co, course,.11 official—We as Aaed in@eD..de RecoNS Reunion Polic,Rehnnva
GC Govemmen Cade(caboose) H Boosted vnd/awetivn ajrec.awfic,se all seed4 rypn lne4Nn8 bath Pass,-1 electronic,
Has nevhh&sofery Cde LP LihafFwihV,,Equip.or SOMvaw _ /xwneM
me haauil Roones Cede LO 1,0,arIXpuwtiun or Per,muem
Ens oultunl Paswae Sam. MA bodeiry Copies sex,preliminary done and mnsiery recoNs can be destroyed when no longer
LC Labor Cde(CA) NA WM1en No Longer Needed aedd to,in.busicose and do no, aice psis,a then—an.•x'den original wroW
PC Pound Code(CA) S bepero]d haw mebN used,deuruedon bees all copies and delineates under be dewroyd along was
OMB Olfiee air..a,,A,road 8P Sepvnad the argoi wgardlew ofthe aadiv o/Me nmM.
MW Rev by't—ton Code T Termoneod
SOS sc,weryaf5mu 'e Visel Official Records mans(be MmrdM in Man bins.Page soslbe rowboat Rnords
use G,ned s,aa Cade Engineering Mandgnneselfi eaeadre✓eerrnnwn.
WC waarCaaa
an aenvlon Special Statute n
miew Length N" vltH onMmnel
eldetlon
Nuber
aeed award Type pound—cltaNun ummn a l Cuh
" C xla,orlcal
niml
14 CCR§15095(c); 14 CCR§ 15208; 14 CCR§15075,
ENi3001 CEQA Documents with outside CiticNAgencies CL+2 15094;14 CCR§15062;14 CCR§15112;CC§60201;
GC§60201(d)(10);SoS c27
Planning Coordination
14 CCR§15095(c);14 CCR§ 15208;14 CCR§15075,
EN0002 CEQA Correspondence with outside CifieslAgencies: LP 15094; 14 CCR§15062;14 CCR§15112;GC
Letters,meeting minutes §60201(d)(10);SOS c27
Planning Coordination
EN0003 City or County Plans: 20 SOS c28;SOS c27;ScS c26;GC§60201(d)(10)
Specific Plan,Master Plan Planning Coordination
Utility Requests: 0C§60201;SOS c29
EN0004 Received Plans,OCSD response CL+2 Planting Coordination
EN0005 General Correspondence: LO SoS c23;GC§6020 1(d)(3);SoS a2
Letters,meeting minutes Planning Coordination
7 Engineering OCSD 18-22-10 hddPtedgi D
Grolion Code, Retention Code, Orange County Sanitation District
Cce Cade oC-1 Pm¢dam(CA) C Caardmal Records Retention Schedule General Retention Schedule Information
CCR Cahso ie Code of Re,atemcc CL Closed or CompinM Any Public Rewrds Act inquests,liigalioq audio,claime and iowneigmiurmsuspence the
CPR Cade af.ae.Position- EX Ppine-Expa .- load meooa periods Aullmeace"end proper dnuw.don mnheds are required On,be
aC town— EL 24cow" ovations all official rewresees about in the Initiate Recoon Reumion Policy.Retenron
" conemmem Cole(Gllfomla) H Hiawnew and dawudon af—.aypa-rmll aed4 rypm Cretans,bad tiger-1 elebonla
Has ranks k Safery Cade LF LihafFeciliry,Equip.oricaftoe _ /sense.
IBC Ime-il Revenue Cede LO take afIXpnwtina or P—ent
Has Inu-at away—Sam. k1A Mmmity Corley,roux,preliminary drafts and tnnowry recoNs can be deam,wd whoa no longer
LC Labor Cate(CA) NN When No longerNooks -dd to,.i.boilweand do not regnie an.,autl-n-ran.•Wden-eeinaf raaW
PC Penal Cede(CA) S Supero]M haw meaen Only deuruedon cony all copies and derp&ores wear be dewroyN along was
OMB rate.of..a,,ar yudsn RP 9epemad one ancient ragaNlaxs o/We wadiv o/Me rained.
RATC Revemu&T-noon Cede T Tennoautl
SOS Earenrya song, V Vial Official ReeaNx coin(be duearded in Mas bins.Tory none he annealed-Founts
use lulandseneaccone Engineering Mangewenfie, -dearmnMn.
Vic watacude
Agreements,Annexations,Land Records,Connection Permits,Encroachment GC§60201(d)(8)
EN0006 Permit Supporting Documentation: LO Planning Coordination
Left.,meeting minutes
Project Development: GC§60201
ENCO07 Correspondence,Feasibility Study,Gate Review,Maefing Agenda and Minutes, CL+10 CIP Project Document
Project Photos,HandoR Documents,Consultant Monthly Report
Preliminary Design: GC§60201
LNG008 Correspondence,Design Submittal,Gate Review,Meeting Agenda and Minutes, CL+10 CIP Project Document
PDR Documentation,Project Photos,Public Outreach,Consultant Monthly Report
Design:
Consultant Monthly Report,Correspondence,Design Submittal,FDS,Gate GC§60201
ENG009 Review,Meeting Agenda and Minutes,Project Photos,Public Outreach,Bandon CL+10 CIP Project Document
Documents,ETAP Documents
Construction and Installation:
Consultant Monthly Report,Contract Submittal,Correspondence,Gate Review,
Inspection Documentation,Meeting Agenda and Minutes,Project Photos,Public CCP§337A5
ENG010 Outreach,Requests and Changes(Bulletin,Contractor Cost Proposal,Delay and CL+10 CIP Project Document
Schedule Analysis,Field Change Order,Request for Change,Request for
Information,Request for Proposal,Time and Materials Report),Safety
Documentation,ETAP Documents
Commissioning:
Correspondence,Gate Review,Meeting Agenda and Minnfes,Project PM1ofos, CCP§337A5
ENG01 Substantial Completion-Beneficial Use,Use Prior to Completion,Snbstantial CU10 CIP Project Document
Completion,Had Completion,Testing Dognmentation
Engineering OCSD 18-22-11 Maptet:rim
Citation Codes Retention Codes Orange County Sanitation District
Cce Code oC-1 Proadure(CA) C Cookout Records Retention Schedule General Retention Schedule Information
CCR Celifomie Code of Re,towns CL Closed or linnoeM Any Public Records Ac[rtquesls,liigalioq audio,claime and ioweemliormsuspends the
CPR Cade af.cona Rogation- EX Ppine-Expa .— IDaml naming pevill Ambcrteaion end proper dntw.don mnhads are required I",be
RC town -CWe(CA) EL Election' deab ing all official rewNses abut in the Contain RecoNS Reco ion Policy.Resennion
" (bvemmem Cook(Californian) H Financed and generation af—.aypa-mall and.rypm Means,bars pa w-1 clausal,
Has room A safety Cade LP LihafPeciliry,Equip.orsoMvarc _ dawneMa
IRC Inge-d Revenge Cede LO Lis afIXpniu ino or P—ent
H1s Inle-N Pownue Service MA Maturity Cooley,roux,preliminary drafts and mnsiwry moNs can be deam,wd who no longer
LC Labor Coe(CA) No when No Lon rNm4tl -dd for Oi.boyeave and do oat regnie an.,agtbod-nisi' -anginal raaW
PC Panel CWe(CA) S supero]M haw mesh assay deuruedon ram all copies and dup&ares enue,be dewroyN along was
OMB 0lfiee of.-in ,&Budgn RP sepvaad the ari lm w,-Hei o/We madiv o/Me ruined.
RqW Rove-a&Tuatiie,Cede i Ter-ina,ed
s0", Eatmryofb e, v Viol Official ReeaNs canoe be duarded in Mas bins.Page ennfbe submNedm Rerordx
use juliewaseaccess, Engineering ,Maw waewfis, awde,mnben.
we Ovate Cud.
Closeout: GC§60201(d)(12);CCP§337.15
ENG012 Correspondence,Cate Review,Moving Agenda and Minutes,Project Photos,Final CL+10 CIP Project Document
Acceptance and Release of Retention,Warranty Documentation
Professional Service Agreement:
Solicitation(Addendum and Question Answer Document,Award Document,
ENG013 Meeting Agenda and Minutes,Proposal and Evaluation,Protest Document,Request CL+10 GC§Ii0201(d)(12);CCP§337.15
for Proposal,Request for Qualification,Scope of Work,Sole Source,Statement of Contract Documentation
Qualification and Evaluation),Contract Administration(Agreement Closeout,
Amendment and Reallocation,Conformed Agreement Package,Consultant Invoice)
Professional Design Service Agreement:
Solicitation(Addendum and Question Answer Document,Award Document,
ENCO14 Meeting Agenda and Minutes,Proposal and Evaluation,Protest Document,Request CL+10 GC§60201(d)(12);CCP§337.15
for Proposal,Request for Qualification,Scope of Work,Sole Source,Statement of Contra-Doeumombfion
Qualification and Evaluation),Contract Administration(Agreement Closeout,
Amendment and Reallocation,Conformed Agreement Package,Consultant Invoice)
Professional Construction Service Agreement:
Solicitation(Addendum and Question Answer Document,Award Document,
Meaning Agenda and Minutes,Proposal and Evaluation,Protest Document,Request GC§60201(d)(12);CCP§337.15
ENG015 for Proposal,Request for Qualification,Scope of Work,Sole Source,Statement of CL+10 Contract Doenmenmfion
Qualification and Evaluation),Contract Administration(Agreement Closeout,
Amendment and Reallocation,Conformed Agreement Package,Consultant Invoice)
s Engineering GCSD 18-22-12 Mapmd:rea
Citation Codes Retention Codes Orange County Sanitation District
CCP Cok oC-1 Pmradat(CA) C Coodmal Records Retention Schedule General Retention Schedule Information
CCR Cahlomie Code of Regulations CL Mod or CompinM Any Public Rewrds Ac[rtquealc,liigalieq audio,chime and invutigaliurmcucpendc the
CPR Code of.dml Regain— EX Ppice or Expa .— alaml mention periods Ambcrteaion end proper deauw.don melhods are required pnorw
RC PJ tion,CWv(CA) EL Plec¢omc deslmymg all official rewNe as Aged In the Contain RecoNa RetrMlon Policy.Renenron
" (bvemmene Cd,(Calaboose) H Retained ondlawudon af—.aypam mall ned4 rypm Means,back papaeand esebonla
Has Room k Safery Cook LP Lihafliciliry,Equip.outrvarc _ dawns.
IRC Imemil Revenue Cede LO Lis afIXpnwnun or Penrenent
an Inlemal Pownue Sam. 61A saNnry Copies,ruse,preliminary drafts and tnnowry moNa can be denne,w]who no longer
LC Labor Cde(CA) No When No lowerNm4d ,add to,Oi.buviMae and do nil regnielino,autliunvncia,'.en-bloat raaW
PC Penal Cde(CA) S supero]d haw mcaN ddr deuruerion teat all copies and delineates son be doemyd along was
OMR rate.of.megmeul&Baden 8P sepemad the anglm4 w,-doss o/We maths c/Me raard.
R&W Revenue&Toone,Code T Terminabed
SO$ sarelaryefblak u Viol Official heavens ease(be Awarded in Mas bins.Do,mesfhe sebmNedm Raordr
use juliewasouncess, Engineering h<anagnnewfirwewredeatmnian.
PC wateeeude
Construction Agreement:
Solicitation(Addendum and Question Answer Document,Award Document,Bid
and Evaluation,Invitation for Bid Document,Meeting Agenda and Minutes, GC§60201(d)(12);CCP§337.15
ENG016 Protect Document,Sole Source)Contract Administration(Certified Payroll, CL+10 Contract Denomination
Change Order,Claims Documentation,Conformed Contract Package,Contract
Closeout,Contractor Progress Payment,Other Agreement,Stop Nofice Request-
Release
Task Order:
Solicitation(Addendum and Question Answer Document,Award Document,
ENGO17 Meeting Agenda and Minutes,Proposal and Evaluation,Protest Document,Request CU10 GC§60201(d)(12);CCP§337.15
for Proposal,Request for Qualification,Scope of Work,Sole Source,Statement of Contract DOcumeu infion
Qualification and Evaluation),Contract Administration(Agreement Closeout,
Amendment and Reallocation,Conformed Agreement Package,Consultant Invoice)
Budget Documentation: GC§60201;CCP§337A5
ENGO18 Budget Table and Schedule Documentation(Construction Schedule CL+10 Cost and Schedule Documentation
Documentation)
14 CCR§15095(c);14 CCR§ 15208;14 CCR§15075,
CEQA Documentation: 15094 14 CCR§15062;14 CCR§15112;CC
ENG019 Correspondence,Meeting Agenda and Minutes CL+10 §60201(d)(10);SOS e27
Permits and CEQA Documentation
w tightening OCSD 18-22-13 Amprm:reli
Citation Codes Retention Codes Orange County Sanitation District
CCP Cde afC-1 Proadure(CA) C Coodmal Records Retention Schedule General Retention Schedule Information
CCR Celanne Code of Re,towns CL Mod or CompinM Any Public Rewrds Act nonc lc,liigalieq audio,claime and invutigaliurmcucpendc the
CPR Cade of.iona Pension— EX Ppine- pinion IDaml merman periods AmM1rteacon end proper deauw.don—day,ere required I",be
RC to tioe¢CWv(CA) EL E4cow" doebrepng all official rewNees abut in the Initiate RecoNa ReWdion Policy.Renenron
" (bvemmene Cd,(Callfuma) H Hiabnoal and dawadon ajre .aypam rmll ned4 ryp.Me/adLg burn show 1almreonla
Has rose k bakry Code LP LihafPeciliry,Equip.orienswre _ dowe.
IRC Innmel Revenge Cede LO Lim afIXpoons-or P—ent
HAS Inumat Pownue Sam. MA Maagiry Copies,roux,preliminary drafts and mnowry m oNs can an deam,wd when no longer
LC Labor Cde(CA) No Ween No longerNm4tl aadd fora i.beenowe and do not con ie an.,agtlmdvnan.•nw,anginal raaW
PC Panel Code,(CA) S Superold haw meaty has,deuruedon cone all copies and assumes nice be dewroyd along wua
OMB Otfioe of.-in ,&Bndgn SP 9eperaad one arlglm4 ragaNlas o/We nadiv c/Me ruined.
RqW Revenue&Tawnon Cde T Terminated
Saba; Sacou'aslau V Vital Official swoons eannce be drrnrded in Maa bins.Page nwslbe swbnNedm Records
usC uninicaneencede Engineering ,uanagenenfin,—de,mnwn.
PC werereude
Permits Documentation:
AQMD,Army Corp of Engineer,CA Coastal Commission/Coastal Dcyclopreeny
Ceeduca ion of Environmental Compliance,Contaminated Soil Manifest, GC§60201
ENG020 Dewatering Data,Eneroaehment/Right of Way,Mitigation Measure Monitoring LF Permits and CEQA Documentation
Repotting,Other,Permit for Construction,RWQCR,Storm Water Compliance
Repotting
Engineering Drawing: GC§60201
EN0021 Conformed Set Drawings,Record Drawings(Tunnel Cross-Section,Vault Detail), LF Facility Records
Shop Drawings
CEQA: GC§60201
MG022 Draft EIR,EIR Addends,EIRs OCSD,Final EIR,Nm Dee-Mitigated Net;Dee, LF Facility Records
Notice of Exemption,Notice of Preparation
E1,1G023 Code and Standards LO GC§60201;CCP§337.15
Facility Records
Design Documentation: GC§60201
ENCA24 Engineering Study and Analysis,Technical Memoranda LF Facility Recceds
Inspection:
Electrical Test Report,Geotechnical Report,Instrumentation Testing,Materials GC§W201
E (3025 Testing Report,Mechanical Testing,Other Teat Report,Soil Report,Structural LF Facility Records
Testing,Sarvey Report
H Engineering OCSD 18-22-14 Mngench aO
Citation Codes Retention Codes Orange County Sanitation District
Cce Cde afC-1 Proadure(CA) C Condmal Records Retention Schedule General Retention Schedule Information
CCR celifomie Code of Re,towns CL Glared or Con lead Any Public Rewrds Ac[rtquesn,liigalieq audits,claims and imeatigaliermsuspends the
CPR Cade of.iona Regalan— EX Ppine- pinion IDabol waska/cods Anortanenand proper bureau"mnhads are required I",be
RC ra y—CWa(CA) EL Eaccow" deafmying all official rewrches Aaud in the Contain RecoNS RatrMlon Policy.Resenron
" (bvemmene Cde(Calltuma) H Riawnaal and generation ajre .aymi mall ned4 rypm Machine,basso w-1 dobonla
Has Posts&Sake,Code LF LihafFeciliry,Equip.orsoarnow _ do-can.
IRC Ine—dRyounne Cede LO LieafIXpnwnun or Pent
R1s Inconal Pownue Sam. MA Malmiry Copies,roux,preliminary drafts and mnowry m oNs can be des,myed when no longer
LC Labor Cde(CA) No Wren No LongerNmktl nadd to,Di.bminwe and do cool require an.,autlmdvdan.•Wren-on. fraaW
PC Pencil Cde(CA) S Superold haw mesh ddr denewedon cone all copies and Jule era enue,be desoroyd along was
OMR Orion ofMane,,ar Budgn RP Seperaad the aria-4waNlaa o/We acenin o/Me w-ref.
R&TC Revmoe&'t—now Code T Tactual
sos sarenryefblak V Viol Official swoons coose be duearded in cook bins.They Pace be xubmNedm Recoas
use julinwasionecade Engineering Managesnenfie, redenrooian.
Vic warereude
Land Records: GC§60201(d)(8)
E14GO26 Agreement,Annexation,Easement,Grant Deed,Permit,Quit Claim Deed,Utility LO Facility Records
Agreement,Will Serve Letter,Encroachment Permit
Report: SOS §c27
MG027 Air Quality,Annual Report,Inspection Report,Master Plans OCSD,Preliminary LO Facility Records
Design Report'Fech Memo,Reports Technical,Planning Study Report
ENO028 Specification Conformed LF GC§W201
Facility Records
Conn S2
Connection locust:
GC§80201;SOS§c29;SOS§rA4
ENO029 Trunk Sewer Connection Permit + Facility Records
Facility Permits:
ENK1030 AQMD,Army Corp of Engineer,CA Coastal Commission/Coastal Development, LF GC§80201
Dewatering Data,RWQCB,EPA,CA Dept.of Fish&Game,OCFCD Permit, Facility Records
Railway Permit
u cadmum, OCSD 18-22-15 MnPhd:TSR
Citation Codes Reception Codes Orange County Sanitation District
Cce Cole ofCoO Procedure(CA) C Conftdmrl Records Retention Schedule General Retention Schedule Information
CCR California Code of Perri CL Clood or('oreand Any Public Records Act requcss,nation,audio,claims and investigations suspends to
CPR Case of.bal regular— EX Ppned or expiration ornedwarriden perall,Aul6onretion end Proper,dntlw.tion melbods art required I",to
RC EkNma Casale(CA) EL 2kcvmtic dutmying all official rewNs as road In the DlsGcis Recoula Recation Policy.Rehnbon
GC Govelomem CWe(Caloun io H Musical and generators ajeecurJa arguer to all nedla types fnelwag bash paper and eluwnle
Has mahh&Safety Cade LF LihafFwihV,,Equip.mSORrvarc _ /xwereM
Hic Iroemal Rewaser Cede to Lik afIXpnwtiun or Pemmni
am Inlemal Renm,e Syril MA Maturity Copies now,pooiminary drafts and transitory recoNs can be destroyed when no longer
LC Labor Code(CA) NN WM1en No LociarBm4tl anowl for Di.bminwe and do or are an.,auchunce cra,- Ten original mares,
PC Pool CWe(CA) S Supelw]M haw meaty roes deurueriou tans all capes and dup&urea our,be dewroyN along assay
OMR refire rar an ,aryudgn RP opened she aefglnn(overseas,oOhe madb oJke heard.
MTC Revenue&Tmrabou Ccde T Tendered
SOS Saucca'asss, V Viral ibb ial Records corms.,be&..ded in harsh bin,Thrycoral be oubmNedno Feearda
Use United ararre Cade Environmental Services Mosorge"1Pn`for a`curedeSrtlesion.
we ecru da
Recendon Recension s coal Smsa ecomwecuu.
Number aboard Type Learn m•R Vaal conMgNa xlnrurlol Resaudou amdona l Cammeuu
ned—ower,
ESDWI Air Quality&AQMD Files: 7 COP§338(k);SOS c27;SoS c17
Testing Reports and Permit Applications
ESDIMI2 `3QMD Permits' LO GC§60201;$OS c26
Various Equipment and Engines Operation
ESD003 Biohni Muaagemeat Records: LO 40 CFR§503.17;40 CFR§122.410)(2);40 CFR§122.21;
Bioodids Burning,Use,EMS Activities SOS ei
GC§60201;SoS ei 40 CPR 403.12(o);40 CPR
ESD004 Chain of Custody-Laboratory 7 503.17(ax3di);(a)(4);40 CPR IU.416)(2);122.21(x4)-
(6)
Collation Systems ystems Records: 6 GC§60201;Business Value;Soy c33-Pi Safety,
Problem Reports and Customer Complaints SOS c43
Compliance Program Documentation: SOS c25;SoS c27;SOS c45;40 CFR 141.33;40 CFR Pon
ESDIb6 Storm Water,SSO,Post Construction Midrange,SSW(WDR) LO 141;40 CFR 122.41
Data Packet-Analytical Chemistry&Metals:
ESD007 QA QC Reports,Final Processed Data Copies,Raw Data,LIVES Reports, 7 GC§60201;$OS C33
Extraction Sheets,Comments&Corrective Actions
La maimnmemal harasses OCSD 16-22-16 AmBea:mn
Citation Codes Retention Codes Orange County Sanitation District
Cce Code ofc II Pro-Jar(CA) C Conrdmal Records Retention Schedule General Retention Schedule Information
CCR Celifomia Code d hernias. CL Mead cr Compk,M Any Public Records Act nquass,lingalicn,audio,claims and Town igatiormsuspends she
CPR Cates of.w.Reaalanona EX Ecpimd or eapin,ion lonedwan ion pe,iods.A"111111ion end Proper destw.tion methods aw required p..,to
RC a Xow Cook(CA) EL EJ-ran, dutmying all official rewNs as Rated In the DlsGcis Foci RetrMlon Policy.Retention
be 5ownewat Cost(Califenno H Hiabnaw ondaasousi afrosess nppaes on all ease types including bosh Phase and eluwnle
Has Hnhb st Safety Cade LF LihafPacilirt Equip.ornoMvarc _ axwneM
IRC Imemil Revenue Cede LO Lin afIXpnwnon.PemmneM
H19 housing Revem,e Syron. MA Anowny Copies reli te;pminary drafts and transitory recoN ca
n n b,deamyed when no longer
bor LC La Cod,(CA) NN When No longerNm4d codedto,Di.braise and do no,require an.,action—co,'.-Original wards,
PC Pool CWe(CA) S Supnw]M haw myaN deb donations-away all capes and sonorous nor be dewroyN along wan
OMB cufioe ofMan ,,&Budgn SP genii she migNd.ovens—o/she mwi oJde nmrd.
MTC Revenue&Tmrabou Code T Tenninakd
SOS Saneboya5mte V Vial Chi aware,wnnal be dusarded in Msh his.Thry moot be oobmNedno Kenna;
usC woad E,aea Cade Environmental Services M...e"1Pnlf—owredessetlf1in.
we waarCada
longer. Resolution s slot Slai CAnsideradon
rvamher Record Type learn F•.. von, connaenml Hiaariea, Reuunon amnonsl Commnun
col
ESD008 Environmental Audit Records: LO GC§60201
Internal Audits Within OCSD
ESDWS Environmental Audit Records: LO GC§60201
Conducted By OCSD
ESD010 Environmental Audit Records: LO GC§60201;SOS c27;SoS cl7
External Audits Conducted By Outside Agencies
ESD011 Interagency(Outside)Agreements and Documentation MOO,Correspondence EPA LO GC§60201;GC§60201(d)(1);So3 c-24
ESDO12 Lab SOP's LO GC§60201
ESDO13 Laboratory Records:
Dane Logs,Lab Equipment Maintenance and Sterilization 7 GC§34090.$903 r22;40 CPR 141.33; 141.19
ESDO14 Non Permithe Files: 6 OC§60201
Inspection reports data,correspondence
�OMP Field Datasheets:
ESDO15 Field Data and Collection Docrusbab fis ,Animal Counts,Fish Collection LO GC§60201;So3 c46; 40 CFR 141.33
Observations
la EnWmnmemal Services OCSD'18-22-17 Monti
Citation Codes Retention Codes Orange County Sanitation District
Cce Code afCrvll Pro-Jam(CA) C Cnadmal Records Retention Schedule General Retention Schedule Information
CCR Celcamio Code d berates. CL Mead or Complsnd Any Public Records Act is uens,lingalion,andis,claims and imeatigatiormsuspends be
CPR CWn of.w.io,swnona EX Ecpima or supinely IDaledwan ion pclall,Amhon`stion end Proper destw.tion melhods art required'-to
aC eJ Xow Cook(CA) EL EJ-aw" dutmying all official rewNs as caused in the Coatings secants Retrmion Policy.Robinson
GC Gowarnow Cost(California H Hiabnaw ondaabous"ofin-you nppaes on all ease types including boN Paper and eluwnle
Has Mean ffi Sufery Cade LP LihafPaciliry,Equip.mouRrvarc _ axwes.
Par ImemilReway.Cede W Lis ofIXpnhation or PemmneM
Has In1emg Rmmre Serviw MA MaNaty Copies; tes,preliminary core and transitory r<coNs can b,destmyed when no longer
LC Labor CNe(CA) Na Whm No LongerNm4d naded fo,.i.basimse and do not require an.,autboavdan '.-original raarda
PC Pool Cod,(CA) S supero]M haw meaty tbeb deuruedoncans all capes and salacious wuu be dewroyN along was
OMB (slfioe ofMan ,,&nudgn SP sepvmed she atlgNn(oveNl—ofle medhe oJaw nmrd.
MW Revence&Tmiaaou Cede T Tenninakd
SOS sareuryafss. V Vital consist RnarG wneal be discarded in Mash his.Tsry muel be submNedno Kenna;
USC Gmteance-Cade I I Environmental Services "'anage"1Pnlfa'neearedearrn io`
wC Wmar(bao
Rneatlsv -antlon s esial Smn eCaaelaentlon
Mager RIrr <som Type ungtn be cam Vonl Connaenml xiaancnl ansaunuu amnunslcommnun
usewl
ESDO16 Permits,PIPDES LO V 40 CPR§122.410)(2),40 CPR§403.12(0)
ESDO17 Perminee Files: EX+6 40§CPR 122.410)(2),§403.12(0)
Discharge Permits and Urban Runoff
ESD018 Published Articles LO H GC§60201;So.S c24
ESDO19 Underground Storage Tanks LO 23 CCR§2772;SOS c33
Unprocessed Instrumentation Files&Lab Reports:
eSDo20 GC§60201;40 CAR§122410)
Compliant Di Annual Reports,Lab Database LO
ESDO21 Waste Hauler Manifests 3 40 CPR§403.12(o)(v)(2)
as EnWmnmemal barg«z OCSD 18-22-18 mo,laa.mn
Citation Codes Relendon Codes Orange County Sanitation District
Cce Cme cfCoO Pmad—(CA) C Caardmal Records Retention Schedule General Retention Schedule Information
CCR Celase in Code of Regalmions CL Clood er('oneend Any Public Records Act mqucss.litigation,audits,claims and awargaliens suspends the
CPR Cods f.at.Regular— EX P Pred or rapice.— latedwanden peliods.A"1111stion end Proper dntw.tion onloods art required I",to
RC Elections(And(CA) EL 2kcnmtic dufmying all official taconite as flared in the DislnuTs Recants Reaction Policy.Reasons
GC Goo—or Cod,(Calfmnia) H Historiaal andlabaetlon ajeecuNa target in all onto types fne4 'g bath paps and eluwnk
HAS HeuhE&assay Cade LF LihafFacihV,,Equip.mSORrvarc I _ /awyan .
PAC swandi Revenue Cede Ln Lik afIXpnwEun or PemmneM
Has stood Rawassona,Service MA Malmity Copies re;preliminary Mfls aM grareaory—uly can be destroyed wFen tie lmlgv
LC Labor CNe(CA) NN whm No Lon rNm4tl natant far District nuances and do not require prior autliolivlian.•Whet original raardt
PC Panel Case(CA) S Supesai bare wancaN rhea deuruerion ben all caps and initiatives wuu be absented along what
man 0lfioea ane,,ar madoet SP 9epemad she ordure,ragaNev o we nradb oJthe retail.
RqW Revence&Tmiadou Code T Tmnisakd
SOS Saraaryassand V vital Phi Awards wounal be discussed in nosh his.They null be submNedto FeenNa
nsC Usba amen,Cade i i Financial& Admin. Services '3tsn°gwitelfin-eca-de"rwoins
we wmmcw t,
aetennov Retenelon s total Sidra ,consideration
Number Record Type inlets ba. VUH conMgatl xlRorltl Russins,aamorty l Cnmmenfe
se,
FA Q01 Accounting Reports: 4 GC§60201;SOS al
Quarterly and Monthly Reports
Accounts Payable Files:
eADEOz CL+T GC§60201(d)(12);SOS c29; CL referee on final payment
Vendor and Contractor Invoices,Bills,Statements,Any Non-Discharged Debt
FADU03 Accounts Receivable Files CL+T V GC§601 CCP§337 eto,.;SOS c29; CL
ref ggs to final payment
li Annual Report-Financial LO GC§60201;SOS c30
Audit Records:
FAD005 Financial Statements,Audit Management Letters,Comprehensive Annual Financial LO GC§60201 st seq.;SoS c30
Report(CAM)
FADo06 Bank Signature Cards S+5 GC§60201;Retain for 5 years after superseded
Banking Records:
FAD007 Deposit Receipts,Bank Statements,Checking Account Reconciliations Cash 6 GC§60201;SOS c29;SoS a 30
Transfer Report,Adjustments-Returned Checks(NSF),Etc
Bonds: CCP§3361§337.5;GC§43900 et seq.;GC§60201 et
eADuOg Certificates of Participation,Transcripts,Disclosure Reports,Registers,Issue LO V
Records Determination of Allocation eeq-
m Financial b Admin.Services GC''SD 18-22-I9 Adopad:Rn
Citation Codes Retend.Codes Orange County Sanitation District
Cce Cade afC"ll Pmaaart(CA) C CaaOnmal Records Retention Schedule General Retention Schedule Information
CCR Celiur is Code of begonias CL ClosM or CompklM Any Public Records Act nquass,litigation,ones,claims and awargaliorm suspends to
CPR Cate af.w.Reaulanona EX Ppnen or eapich- onandwandon Peru&AulFon`stion 11coll,dntlw.tion meth art requited I",to
RC r Xow Coale(CA) EL Elecren, destroying all official a-rds as aland in the DiaGalis Recoula Racenlion Policy.Robinson
GC Govemlkm CWe(Califerno H Historian ond/abvatlon ofin-you nppBn on all nedla types incluM'g bosh paper and elunonn
B&S Penn at assay Cade LF LihafFaciliy,,Equip.muaRrvarc _ /xumenh,
IRC reemal Revenue Cede LO Lin afIXpnwnun or CanyoueM
M Inlemal Revemle Serviw MA Maturity Copies tax,preliminary made and transitory recoNs can b,destroyed when no longer
LC Labor CNe(CA) NN When No Lon rNm4d needN to,.i.businwe and do not regcie an.,autlmaaadan '.-original mares,
PC Pool Cape(CA) S Supelw]M haw mcbN hang deuruedonnm all capes and duo&area muss,be dcepri along way
OMB (pri of..a,,ar nudgn SP sari she miglna(oandlew idshe modb oJrne nmrd.
R&TC Revence&Tmiaaou Ccde T Tenniiaka
SOS saywaryafslate V Vital Chi Re cords woural be dusarded in.4 bin,Thor,coact be submNedm Records
usC Gmted state,Coale i i Financial& Admin. Services °fanagwonfi-ocYredeSrtlf1ins.
WC octu do
Hetemion Retention Special Smr ¢Consideration
Number Record9)'p! Length bse'. Vnnl connaenaal Horatio. Ralenlron Cimlronr lcommnnb
a
FAD009 Budgets(Adopted) LO V GC§60200,Vital During Current FY;SoS c29
Budgets vs Actual:
FADOm Sapporo,Documentation Summaries,Worksheets,Coals and Objectives, 5 GC§W201;§34090;SOS c29
Mileatooes
Check Records:
FAD011 Cancelled Payroll Cheeks,Voided Copies For Automatic Deposits,Registers, 7 GC§6020 1(d)(12);CCP§337;SOS c29
Requests
FAD012 Capital Facility Capacity Charges(CFCC) 7 GC§60201(d)(12);CCP§337;SOS o29
FAD013 Expense Reports 7 GC§601 CCP§337,SOS at
FA 014 Financial Statements 10 SOS c39
FA1>015 Financial System: Indefinite Data Fields/Records are interrelated;GC§60201
ERP Database,Access Database,Unity Billing
FAD016 Fixed Asset Records LF V GC§60201;SOS c29;Life of Asset
FAmb General Ledger LO V SOS c29,GC§60201(d)(12)
17 Financial&Main.Serakn OCSD 18-22-20 �:�
Citation Codes Retention Code, Orange County Sanitation District
Cce Cade cfCrvg Pm-daa(CA) C Coandmal Records Retention Schedule General Retention Schedule Information
CCR cohnmia Code of begonias CL ClcsM cc Comeced Any Public Records Act nqucss,litigation,ones,claims and invanigaliorm suspends to
CPR CWeof.w.Reaulenona EX Ppnen or Fxpich- alolndwendon Penn&AulFon`stion end proper dntlw.tion melFods art requited I",to
RC acepow CWa(CA) EL Etarenc dummying all official aids as stated in the Issuance Recoula Recenlion Policy.hipbone
GC Govemlmla CWe(Glifcaus) H Hiabncal and/apai afro-you Vpgn on all nedp types fne4M'g buN paps and elubonp
Has Hears A assay Cade LF LihafFaciliry,Equip.or SoMvns, _ /xwmeeh,
IRC reemal Revease Cede W Life afIXpnwnon or Cans-bi
H19 rannet Ressene Serviw MA MaNnty Copies sex,preliminary drafts and transitory recoNs can b,dexmyed when no longer
LC Labor CNe(CA) NN pace No Lon rNm4d needed for iffi.buvinue and do not require an.,achanceina,'.en anginal eaaAa
PC Penal Cape(CA) S Supelw]M haw mcaN rbde deuruerionpm all capes and dup&aria muss,be dcepri along way
OMB olfioe ofMane,,ar nudge SP Sees W she arfglnn(oandlew o/Ne madb oJ1he nmrd.
MW Revenue&tramon Cade T Tennii
SOS Sancia'aslate V Vital Chi hecaeds carrel be durnrded in Mah hinx Thry must be submNeOm heeorda
,,SC Gaited state,Cade i i Financial& Admin. Services M...e"1Paft-oOYnden'verin`
wC scut da
Rneed. Retemlon Special Spirits,Consideration
Number Record Type thall a•— Vual Coanaeaml mouirlcal Rtlannon,means l Comments
col
FADo1a Investment Records: LO GC§34090;CCP§33T;GC§53607;SOS c30
Policy,hansacoon records,summary of portfolio,asset detaB etc.
FADa19 Journal Entries LO GC§60201;CCP§330;SOS c29
bscoi Local Resources Program Reports(LRP)I Water Certifications LO GC§60201;4O CFR 141.91
OCERS File CL+T GC§60201(d)(12);29 CFR§516.6(a)(1);CL refers to
eAD021
Copies of OCERS payments,statements,etc. final payment
FAI02 OCERS Retirement Report LO GC§60201(d)(12);29CM§516.6(a)(1);Business Value
Payroll Records:
Timesheets,Payroll Registers and Reports,Unemployment Claims,Garnishment,, GC§60201(d)(12);CCP§337;29 CM§§516.5,
FAD023 Payment Of Labor Cosh Including Salaries,Wages,Compensation and Deductions CL+7 V 516.6(a)(1);IRS Reg.§31.6001-1(e)(2);26 CM§L6001-
For Employees,Board Members and Contractors,(DE-6&941 Forms-Quarterly 1;R&T§19530;29 CPR 516.5(a1
and Annual Payrall Tax Returns)
us Financial&Admin.SeMtts OCSD 18-22-2' Adoppd:Rn
Citation Codes Repaid.Code, Orange County Sanitation District
Cce Code ofCrvll Pm-Jan(CA) C Coaftdmial Records Retention Schedule General Retention Schedule Information
CCR cohnmio Code of begonias CL ClesM er Comeced Any Public Records Act rtquass,litigation,ones,claims and awargations suspends to
CPR Case of.w.Regulations EX P pun or eapinlion amend wandon pelioll,AulFon`stion 11 roll,dntrain,n methods art requited I",to
RC FJ Xow CWa(CA) EL PJecren, dutmying all official rewNs as sand in the DisGCTS SecaNS Ruunlion Policy.Rehnaon
GC GovernewCWe(California H Historian ondaabvatlon ajeecunaenppBn as allnedla types because,bachpVw and emreve
Has Penn Ar Safety Cade LF LihafFaciliy,,Equip.or SO eses, _ axumenh,
IRC seemil Revenue Cade W Life afIXpnwtiun oe PemmneM
E1g wing Revemle Serviw MA Myoub, Copies ux,preliminary drafts and transitory racoNs can be desio,wd when no longer
Labo
r or CNe(CA) NN Vision No Lon rNm4d neNed to,.i.businwe and do not regnie peiarachan—an.•x'den original mores,
PC Pool CWe(CA) S Supelw]M bow mcaN sbea deuruedonnm all capes and sup&ores muss,be dcari along way
OMB 0lfioe ofMme,,ar nudge SP grecaW she mbglne(oandlew oOhe nladb oJrNe nmrd.
RqW Revenue&Tmation Cede T Tenninand
SOS Sareawof5lan V Vital Chi Re cords wneal be durnrded in Msh hinx They cons be submNedm Reeorda
use Umlad sweas Caen i i Financial& Admin. Services °fan..wonfi-wayedeSrtlf11O1
we octu ea
Hetemion Retention Special Smr ¢Consideration
rvamber Record 9)'p! Length be•� Vanl conaaenthl xlaanrnl ml-mn stomas l Commnnfe
wl
FAM24 Petty Cash Record, 7 GC§60201(d)(12);CCP§337;SOS al
FAM25 Rate Studies 10 GC§60201;Business Value
FAM26 Rebates anti Refund, 7 GC§60201
Sewer Service Fees
FAM27 State Controllers Reports LO GC§60201;SoS c30
To.Records-Employee: 29 CPR§516.5;SOS c30;IRS Reg.§31.6001-1(e)(2);
FADp28 W-2's,10991t,Annual Information Returns for Employees and Retirees 7 V R&TC§19530;29 CFR§516.5-516.6;29 USC§436;
GC§601 29 CFR§31.605-1,§31.600-1(d)
FAD029 Tax Records-Vendor 7 GC§60201
FAD030 'ITial Balance Records 7 SoSc22;GC§60201(d)(12);CC§60201(d)(4)
15 Financial b Actual,SeMttx OCSD 18-22-22 bewspad:reo
Citation Codes Reteudou Code, Orange County Sanitation District
Cce Cole afCoO Pm.dar(CA) C Canrdmal Records Retention Schedule General Retention Schedule Information
CCR Celaso is Code of certain. CL Clood or I—PeM Any Public Records Act mquass,liagalion,audits,claims and investigations suspends she
CPR CWeaf.w.Regulanona EX Ppimtl or eapinlion alolndwenden periods.Aulbon`stion end Proper dntw.don melbods art required pleases
RC EkWma Coda(CA) EL 2kcvmtic dutmying all official recoNs as aloud in the Coatings RecoNs Reunlion Policy.bonuses
GC Gosemmem CWe(Calowns) Is Histonsal andlabaftlon ajrecaNs Vegas to all secs types fne4M'g bash paps and eluwnle
Has moms A Safety Cade LP LihafFwihV,,Equip.mSORrvarc _ shanneM
me honal Revue. LO Lin afrovenhation.Pen i
HeS banned Renn,e serve. MA Maturity Copies as,pooiminary does and tnnsimty recoNs can be dono,wd when no longer
IC Labor Cold(CA) NN WM1en No LonlarNm4d neNed for instant basmays and do at regain one,autbonmian.•Waen anginal eaaAs
PC Pool Cape(CA) S Supero]M haw reacaed lbeb deuruerion base all wiles and highlands muss,be dcepri along way
OMR 0lfiee ufMme,,ar mugs SP opened she nrfglna(ragandlew o/she taedb cJsereeard.
RATC Revence&rmnaou Ccde T rmninakd
SOS seenda'afsnu v vied On ialRecords wounalbe discussed in Mah hinx They must be submNedno baoNa
Use u,nted sleea Cade General Manager's Office M nagwonl/°r'eeareeenvo ie`
we octu da
Relevnon Reception Special Slma eConsideration
number award T ps, Length ba.R vual conMgntl xlRonea Relepnan citation l comments
"essuffid,
GM0G91 Annual OCSD Reports LO V GC§60201
Blast Development Records SoS c28;GC§60201;Non-Historical photos can be
GMOOpz Research Material,Timeline,Photos LO deleted when no longer needed.
GbKSX3 Blast Procedures S+2 GC§60201;SoS e23
GMCS004 Blast Professional Development Articles(From External Sources) NN GC§60201; Can submit fm destruction when no longer
has begineaa value
GM0005 Blast Program Files - 2 SoS c19;CC§60201;Destroy Quarterly Reports when
Minutes,Marketing Material,Evaluations,Quarterly Reports superseded plus 2 years
Blast Work S ing Documents- Non-record;QC§60201; Can submit for destruction whea
GM0006 Member Rosters-Active and Inactive no longer has business value
GM0001 GM Monthly Reports 2 GC§60201
he General Manager's Mee OCSD 18-22-23 beamnd.mn
Citation Codes Reteutiou Codes Orange County Sanitation District
Cce Code afCmll Procedure(CA) C Coaadmal Records Retention Schedule General Retention Schedule Information
CCR Celifomio Code of Persian. CL Cloo.is Con fisted Any Public Records Act requass,litigation,audio,claims and irwargaliorm suspends to
CPR CWeaf.w.Regalanoca EX Ppimd or eapinlion oulndwandeaparioll,A"1111stion end proper dntlw.tion r-ards art required priors
RC cXmu Core(CA) EL Pastures" dufmying all official records as send in the Camara Recants Reanlion Policy.Reasons
GC Govemrnew CWe(Califranno H Historical andlabuftlon ajeetaNs Vegas be all seta types fnc4afn,bard paper and elunonle
use Noun At Safery Cade LP LihafPaciliry,Equip.or SoRrvarc _ d-...
IRC Inlemil Revenge Cede LO Lik afIXpnwtiont or Pem i
par banner Rewase,Service Ma, Matuaty Copies tee,preliminary drafts and transitory records can be deare,wd when no longer
Lab LC or CNe(CA) NN vision No Lon rNm4d neNed sconce,
buvinwe and do or require an.,achy imina,'.ee oesphol winces
PC Pool Cape(CA) S Supero]M haw m"aN taco deuruenon nonr all capes and a"p&nss wuu be demroyd along was
OMB mfioe air..a,,ar muds. SP senator she unglue(cogardlew o/Ny condo orake nmrd.
RqW Revence&rotation Cars T reoriented
SOS Sareuryaf5late V Vital O$sid Reeacds carnal he awarded in Msh hinx They must be saharNeam Resorda
use united scares Cade General Manager's Office af"n"ge"1Pwfi-einowdeerr"erin`
wC octu de
Hztemion Receptors Special Suisse,consideration
rvnmfia Rssam 9)'p! Length bre vent conraenml xlanntnl mwormin at"nons l Cmomn"ts
col
GM(woa Historical Records LO H GC§60201
GM0Wa Meeting Files-Executive Management Team(EMT)- 2 SoS a2;GC§60201;EMT Meeoog Minutes keep LO
Agenda,Minutes,Agenda Report,Handouts
GC§60201;Can submit for destruction whom no longer
GM0015 Speeches and Presentation NN H has business value;Some records may be kept for
historical value
GMM16 Travel Records T GC§60201
ES General Manager's Mee OCSD I8-22-24 Adaptesi
Citation Codes Retendon Code, Orange County Sanitation District
Cce Cme afCrvR Pm¢anm(CA) C Caaedmal Records Retention Schedule General Retention Schedule Information
CCR Ishnmin Code of Regulnli.e. CL Clood er('ompletal Any Public Records Act cousin,liagalieq audits,claims and awargatiens suspends the
CPR Coae ofFeaenl Regulations EX P Peed or dauicen. rated retemion laods.A"(111scion end Proper dnuw.tion onloods art required pnorm
RC Ekctlona(And(CA) EL Elasaws, dufeying all official rewNe as Anud In the Districts Records Recenllon Policy.Reasons
GC Goo—or Code(Ca4fmnio H Histancal andlaboetlon ajeecuNa Vegas in all ease types fne4 'g bath pope,and eluwnk
H&s Heuhh&but Cade LF LihafFwihV,,Equip.mSOMvarc _ dxuuenh.
Hic hands Revenue Cede Le, Lie afIXpnwtiun or Pem i
His stood Revem,e Service MA Malusity Copies te;preliminary drafts and transitory,ccoNs can be destroyed when tin lm,gv
Lc Labor CNe(CA) Ns WM1en No]todgerNm4tl nods fey Discount business and do no,wane Prior autliorv,ian.eWben original mortis
PC Panel CWe(CA) s supero]M haw rencaN rbeb deueuerion see all capes and dip&ores wuu be dewroted along why
OMR (ylfioe air Mane,,ar tndgn RP gepvnad she miglm4 wi endless o/the masts afthe math.
RqW Revem,e&Tmianou Cast T Tamisakd
so' Sams'' sand V Vi,al Chi micerds wounalbe durnrded in Mah his.They muel be submNeOm severe;
Use umnasta,Ccde Human Resources am nag witelfnreeds-deauarwonn.
we wmmcwt,
seasonally S coal Smra ecansldcmnon
nature. Record Type Leng[n ba. Rel-that Cindons l commenn
Number VaH ConMmNel xlearinl
niml
Classification&Compensation-
HRDa91 Class&comp studies,class specifications,salary surveys,salary schedules,pay LO 29 CFR§1627.3;GC§12W;OC§60201;SOS c21
types,recluse requests,desk audits,etc
HKD`1102 Temporary Employees- CL+7 CCP§§336(a);337 et sty.;GC§60201;SOS c22,CCP
Hiring documents,tracking spreadsheet,request forms,etc. §343
Deferred Compensation Records- 26 CPR§31.6001-1(e)(2);26 CFR§I6001-1;29 CFR
tIXt3 Participation agreements LO V §1627.3;SOS c30
District Benefit Contracts by,Summary Plan Descriptions- 9 CFR§1627.3(b)(2);29 USC§1027; 11 CCR§560;28
HaDoW Health,dented,vision,etc.benefit contracts,benefits summary plan descriptions LO CCR§1300.85.1;GC§60201
(health,dental,Asian,other),etc
HlUP05 EEO-4 Reports and Fuss- CL+3 29 CFR§1602.30
Documents Required to Generate EEO-1 Report,etc.
Employee&Labor Relations Files-
IHtDu06 Memorandums of Understanding(MOU),Arbitration,Grievances,Union Requesd, LO C 29 CAR§516.5;GC§12946;sops c20;GC§60201;29
Employee Rights,Appeals,Invesfigatim ,Its,condones,Actions and CPR§1602.31;29 CFR§1627.3(b)(1)(ii);SOS c20
Complaints,Sears]Harassment,Civil Rights,etc.
zz Human Resources OCSD 18-22-25 aamnanceneo
Citation Codes Reteudou Codes Orange County Sanitation District
Cce Code afColl Pm.dure(CA) C Caandmal Records Retention Schedule General Retention Schedule Information
CCR Celcar io Code of Portion. CL Cloon or ConpinM Any Public Records Act nquass,litigation,audio,claims and invaingaliorm suspends the
CPR Cate of.w.Regulanona EX P pimtl or Pauice.— oulsolwenden peliods.A"1111stion end proper dntruaion melF 11 required I",to
RC c Xoas CWa(CA) EL Etwoomc dulmying all official records as Rated in the DisGCTS RecoNa Recenlion Policy.Reasons
GC Govemlkln CWe(Glitomia) H Historical and labaftlon ajeecuNr Vmw to all aeda types fne4M'g both paper and eluwna
Has Hahne Ar Safety Cade LF LihafPacils,,Equip.or SOMvarc _ /xweeM
Inc Inlemil Revenue Cede LO Lek afIXpnwtion.PemmneM
H19 Inlemat Revemle serve. MA Maturity Copies us,preliminary drafts and transitory recoNs can be destroyed when no longer
LC Labor CNe(CA) NN when No Lon rNmnd neNed to,.i.buvinwe and do not require an.,autbmimina,'.en unspent raarda
PC Pencil CWe(CA) s Supero]M haw mcbed their deuruenon near all capes and duo&nes muss,be demroyN along way
OMB (Now atMan ,,&Budgn sP SepvaW she mhows,is andlew fthe condo oJ1he nmrd.
RATC Revenue&remain Ccde T renamed
sos saywu'asses, u Vital On inl Records—net be busarded in Mah hinx They mull be subnrNedm Reeni
ear Gnsadslna Ccde Human Resources atan°ge"1Paft-ownedeSrtlf11O1
we ocut do
Relemioa aNenelon s etal Smr aConsmentlon
Number Recut Type inlets n . vent cined—ibil Hlelm lea Resnnnn Ci.dba/Cons—sts
court
Employee Benefit Plans and Programs- CG§12946;GC§60201;GC§60201(d)(12);29 CM
HRD007 Health Insurance,Supplemental Life Insurance,Beneficiary Designations,Records, T+7 §l627.3@)(2);29 CFR H 1602.30,32;Labor Code
etc,Repayment Agreements,Eligibility Changes,Development Pay,Ridedearev. §1197.5 Retirees: Death+7
Human Resources/ERP Database- Data Fields/Records are interrelated;GC§60201;ME
HRDoco Electronic records management-JDE,Cornerstone,WorkTerra,etc. In lefnist Database
HrzuoiG 1-9 Forms&Self-Identification Forms T+3 8 HSC§1324a(b)(3)(B);8 CFR§1274a.2(b)(2)(i)(A)
xrzDEu Medical Files- T+30 C 8 CCR§3204(d)(1)et seq.,GC§§12946,60201;Piled
Times for Duty,Leaves of Absence,etc.,Interactive Process,Worker's Comp separately.
HRD012 Organization Charts 8+2 GC§60201(d)(1)et seq.
Persona el Files-
Includes Application,Awards, Disciplinary Actions,Certifications, 29 CPR§§160231,1627.3(b)(ii),8 CCR§3204(d)(1)ci
BRIm13 Commendations,Employment Verifications,(pre-2011)Evaluations,Licenses, T+7 V C seq..CC§§12946,60201;29 OSC§1113.Vital until
Stains Change Forms,Policy acknowledgements,Waiver of responsibility for separation.Excludes Medical Records ace Retention Code
returner,activities,Training records,etc,Pay Down,Emergency Contacts,Change HRDOII
of Address,Outside Employment,Resignation
as Human Remurcee DCSD 18-22-26 sawaed:um
Citation Codes ReteudoR Codes Orange County Sanitation District
Cce Cade afCrvg Pmnedure(CA) C Conadmal Records Retention Schedule General Retention Schedule Information
CCR Ishnmia Code of Regulmions CL Clons or ConpinM Any Public Records Act nquass,litigation,anes,claims and irwargaliorm suspends she
CPR CWeaf.w.Regulannna EX P pimtl or eapinlion oundcounden peliods.A"1111stion end proper dntruclon melF 11 required I",on
RC c Xon¢CWe(CA) EL itaccomc dufmying all official rewNs as stated in the Coatings Recoula Retention Policy.Robinson
" occurrent Cost(Glitomia) H Hisi ical and desprousian pirseuNr Vegas to all ease types because,bosh paper and eluwnle
R&S Bases&Safery Cade LP LihafPacilat Equip.or SO eses, _ /xuneM
Etc hournal Revenue Cade TO Lik afIXpncation oe PemmneM
ERS in1emN Revemle gerviw MA Malmity Copies te;preliminary drafts and gainsay racoNs can be aeslmyed when no longer
Lc Labor Code(CA) NN When No Lon rBm4tl neNa for niatritl business and do rant require an.,autbodaatina,'.en original raaAa
PC Pool Cape(CA) S Supero]a haw mesa lbeb deurueaon rare all capes and dip&ate,muss,be demroya along way
oW 0lfioe atManu,,ar Budgn SP hornet she miglnn(saddles o/she nlodb ark,rams.
R&iC Revence&tropes Cede T renowned
SOS saywaryaslate V visit Oh ial Records—net be durnrded in Mah his.They must be oubmNeOm Rewi
usC umtedslnea Coe Human Resources °'an°gwonfi-o ardeSrtlf11O1
we ocat da
Hetemion beempon Special Stories,Consideration
Number awardType le woo se, viral connaenaal mobriwl Helium.ammonia/Commnnb
col
Recruitment Records- 29 CPR§1602 in sect&§1627.3(a)(b),2 CCR
11RD014 Advertisements,lob Brochures,Test Data,Rating Sheets,Questions,Eligibility CL+3 §7287.0(e)(2),8 CCR§I INN,CC§§12946;Database
Lists,etc.electrosicMEOGOV records Neogov indefinite.Retention begins after hiring decision.
TrainingPro Records- GC§60201,SOS e21;Data Pickla/Records are
gram interrelated;Training Database Indefinite;Non-database
HRDaIs Class Attendance Sheets, m Schedules,Classes Offered,Curriculums or Syllabus,and CIh7 ITpaper personnel training retards TH.+7 See Retention Code
Training Materials Developmentpment HRD013;Not employee specific.
Background Checks-
111tlaal6 T+'/ GC§60201;SOS pi
background checks
Human Resources Programs-
ImDp17 CL+3 IT SbarePoin[for electronicRideshare,Tuition Reimbursement,Computer Loan,Development Pay
District Benefit Plans-
Hall EX+6 GC§60201;SOS c21
Ben um Benefits summary plan descriptions(health,dental,vision,other), to.
za Human Resources OCSD 18-22-27 Ae,ppesi
Citation Codes Reteun.Code, Orange County Sanitation District
Cce Cole afC"a PwaJaw(CA) C Caandmal Records Retention Schedule General Retention Schedule Information
CCR cohnmio Code of begonias CL ClcsM or ConpinM Any Public Records Act usquass,litigation,ones,claims and awargations suspends she
CPR CWeof.w.Ronswuona EX Ppima or eapich- aloledanandon pe all,A"1111stion end Proper lannoion melFods art requited I",to
W c Xow Coale(CA) EL Etweemc dutmying all official rewNs as sated in the Disgrace Recoula Revation Policy.Rabbi
GC Govemmew CWe(Calibrs) Es Hiatolical ond/abvatlon ajrecarG nppYn to all scene types scanning bush paps and eluwnle
R&S Owes&Safety Cade LF LihafPaciliy,,Equip.or SORrvan _ dxwmeah,
me InlemilRewasse Cade LO Life afIXpnwtion or Conn M
as Inlemat Renmle Sewiw MA Maturity Copies non
a,pson'inary done and consicry recoNs can b,buoyed when no longer
Labo
r or CNe(CA) NN When No Loe. rNm e 4tl scred to,.i.bavinwe and do not require an.,achan co,'wTea anginal moods
PC Pool Case(CA) S Supelw]e haw mcae shear deseuedon tires all capes and diagnosis muss,be dewroyN along wash
OME (Once ofMan ,,&nudert SP Sepvaad she miglnn(ragaelew o/she wadb oJshe time.
MW Revence&Tmiation Cody T Tenniwed
SOS garnarycfslse V Vital Phi Routines canal be durnrded in Msh hina Thry mus be wbwNedno Heeoeda
Use Cmleanow-Cade Information Technology "'anage"1Pnlf—cosawdeSrtlf11O1
we octu as
Retevtlov Retention s eadl Swo eCamidsranon
rvamber Rncara Type leng[n n•.� VnM conMmNal labour l Ratnunan cis nanalcammeub
" nsid
ITE001 Access Authorization Form,: T+3 GC§60201
Email Access Requests,Internet Access Requests,Middle Devices Access
rI1,002 Wiring Specs and Test Results-Loop Drawings LF+2 V GC§60201;SOS c22;SOS at(Active until
recised/reacinded/sopereeded)
System and Software Documentation: SOS c22;Life of System,GC§60201,Superseded With
ITDOE3 Network Design,Instruction,Licenses,License Codes,Agreements,Systems List, S+2 V Version Updates,CC§34090 ct seq.;Source Code is Kept
Permission to Directories,SharePOisst Lists,Hardware and Software in Escrow,Retain uvtl it no longer has business value;GC
Documentation,Source Code,IT Manaals §34090 6 seq.;Until system is no longer opemticanl
GIS
Lay
ITOOea (Geographic Information System)Database: S Dad is interrelated;GC§60200;GC§60201 et seq.
Layers
ITM05 Information Logs: 2 OC§W201
Internet,Phone,Badge,Visitors
rs Information Technology OCSD 18-22-28 Menisci
Citation Code. Retention Code, Orange County Sanitation District
Cce Cade ofCrvll Pro-Jab(CA) C Conadmal Records Retention Schedule General Retention Schedule Information
CCR California Code d Re,toin. CL Closet er Compk,M Any Public Records Act requests,lingetien,own,claims and iowastigationewspends be
CPR CWeof.w.Roessurona EX Enpaea or ra,schn laced wasanperoll,Am.onrstion 11 oil,deauw.tion,oedods aw required',norm
RC EJ wass Case(CA) EL Eacarenc duurni all official regards as stated In the Districts Recoula Reconson Policy.notation
be Govemmene CWe(Califomiu H Heyward andiatardon ajeecarry Vi to all nett types season,boN paper and eluwnle
B&3 Pass A Safety Cade LP LihafPaciliry,Equip.or SOMvarc _ aseewneM
IRC reamilffie aae Cade LO Lie afIXpnwtier cr Pry-sai
IRS Intmal Renm,e Syron. MA Ande ty Copies tec,preliminary drafts and transitory racoNs can be destroyed when no longer
LC Labor Code(CA) Ns When No Lor. rNmktl naded for Di.basonws and do not require an.,achencenon.•nTen original eaarda
PC Penal Cod,(CA) 3 Supnw]M haw mysed dear deuruedon bra all ropes and supaarea wuu be destroyed along was
OMB Otfioe ofMan ,,&Budgn 8P SepvnN she negana,ragandles,o/Ny madb oJde nmrd.
RATC Ryven.&returns Cede T unreinaktl
SOS Sareboyasse, V vital Chi ReearG—nor be durnrded in awash hinx Th,must be submNedno ReeoNa
ear Gmtastna Cade Information Technology titan..e"1Pnfi—ow-dew—dia`
wC waarCoaa
Rnanaon Betendon Shedd Since,Crussidstiffic.
Number Record type UVh we Va.. connacnml Hlemrical Retaanon Cimtioaa/Cnmmenn
wria m1
110006 IT Help Desk System: CL+3 GC§60201
Service Tickets,Change Requests and Releases
ItTaby Network Diagrams/System Configurations/Maps/Plans 4 V Retain unfit it no longer has business value;GC§60201;
GC§34090 et seq.;SoS c22
111,003 IT Asset Inventory Database: 8+2 GC§60201; 3C§3alum et soy.
IT assets,Printers,Hardware,SSCM,Server Lists,Asset Explorer
ITM13 System Log(Database): S+2 Until superseded or overwritten;SoS c22
Transaction Logs,Error Logs
GC§§53160,53161-Based on govermnent wdo we are
required to keep s idw monitoring for 1 year and
telephone/mdio communications for IN days.They can be
destroyed after these time periods with the following
ITn015 Video Surveillance Files and System Security Database I exception:
Ifwriaen minutes or an audio recarding of the video is
taken,the video can be destroyed after 90 days.The
written minutes and audio regarding can be destroyed after
2 years.Retain unfit it no longer has business value or until
vmesdifga;GC§60201;OC§340%et seq.
sh Information Termolom OCSD 18-22-29 Mantathrim
Citation Codes Retention Codes Orange County Sanitation District
Cce Cade ofCrva emaaare(CA) C Co nd,nal Records Retention Schedule General Retention Schedule Information
CCR Islas—Code of negates CL ClesN er('omPond Any Public Records Act requests,nation,was,claims and iowntigniiermsuspends be
CPR CWaof.w.Reanlanona EX Enpien or Expiation soled warion pe all,Am111111ion end proper destranso melhods art required pnorm
RC Elxryow CWa(CA) EL E nwsmc dufmying all official rewNs as Aaud in the DisGUTS Records ReuMion Policy.Recennon
be Govemmem Cod,(Califumia) H Hiabnsal ondoassusu"ajeecaNsnypaes on all season types including baNpVw and erecroans
B&S Hnhh&Safery Cade LF LihafPaciliry,Equip.shoRrvarc _ axwneM
BtC hound Revenue Cade LO Liu afIXpnwtiun or Con—bM
IRS InumN Ressene Serviw MA Anyway Copies us,preliminary name and transitory recoNs can b,deamyed when no longer
LC N W Labor Code(CA) Nhen No DangerNm4d second to,Di.busiews and do not require an.,achoavnco,'P'den anginal raaAa
PC Penal Code(CA) S Supero]M haw mnaN rbdr deuruedon now all ropes and duo&ages ones,be demroyN along waa
OMB once ofMann,,ar riesdgn SP 9eperaW she arlgNn(wgaNlass o/Ne mods stake nmod.
PATC Revenue&Tmiaeoo Cede T Tmninaktl
SOS saymba'asmu V Vital On ial Records eannol be Ancosed in Mah bin.TFrycount be sabmNedno caesura;
usC Cmtedstmaa Cede Information Technology M...en Pnfiwoaandessorwon.
wC scut der
Rneano
Berendon Shedd Stara ecomwetion.
Miller
Record type Learn Fay. Vaal connaanml xi.mnol Rermtion Cimtio mea no l Comte
col
ITM16 Two-Way Radio Licensing and Information EX+2 GC§60201;GC§34090
ITO018 Virtual Computer Files Nt V GC§34090.7;SOS.22;Replicated for disaster recovery
Fatigues
ITE019 Records Destruction Records: TO GC 60201
Approvals,Certificates,Requests §
11111030 Records Management Annual Audits: S+3 GC§60201
Inventory,Storage,Destruction,etc.
II1,021 Records Management Project Files Nr GC§60201;SOS c23; Can submit for destruction when
no longer has buaineas value
CCP§343;SOS c23 Enacted by Board Resolution and
17O023 Records Retention Schedules LO V retained Indefinitely Includes schedule amendments.
Schedules am superseded when updated.
27 IMormatlo iTednoingy OCSD 18-22-30 Malawi
Citation Codes Reteedoe Codes Orange County Sanitation District
Cce Cme cfCrvO Pmadum(CA) C Coardmal Records Retention Schedule General Retention Schedule Information
CCR Ishnas Code of Re,falions CL Clood cr('onecol Any Public Records Act requcss,nation,anaib,claims and awasidgaticns suspends the
CPR CWeof.aml Rescue EX Ppima or eaance.on latedwanden periods.A"(111etion end Proper dntruclan onloods art required I",to
RC EkWon¢(And(CA) EL 2kcumtic dutmying all official rewrite as Aaud in the DisGUTs Reconds Reunion Policy.Reasons
GC Govemmem Cod,(CaEsionno H Histonaal andlabaetlon ajeecady nugget in all nNla types heritage bath paps and eluwnk
H&S reason&Sony Cade LP LihafPacihV,,Equip.mSOMvarc _ /xuueM
IRC swandi Revenue Cede LO Lik afIXpncoiun or Pema i
H19 In1emN Revemu Service MA Malmity Copies u;preliminary lofts and transitory ratudy can be aes,myed wFen tin lm,ga
LC Labor CNe(CA) NN Wben No IductiorNm4tl natant far District nuances and do not waire prior autlio,iv,ian.•Wben original raar6
PC Panel CWe(CA) S Supero]M brie reacaN rbeir deuruerion«en all copies and dug&ores wuu be depari along way
OMB cufioe air Man ,,&and, SP opened she arlglm4 wi endless a we madb oJthe nmrd.
MW Revemu&Tmiaaoo Ccde T Tenninakd
SOS Saraarycf5mu V Vital Phi Records wonval be dance din dersh his.Thry must be submNeOm FeenNa
Use Cisbas,maccde Operations &Maintenance 'afan..easawfin-eaaedetrrwonn.
we wnmcwt,
a<tmnoo Retention Special Stora a consideration
rvamber Hncom Type ungtn be tie Vs.. conMms., xb,orfa., Rntnnnon arunnnticnmmenb
" col
Chemical Inventory Records: GC§W201;49 CPR 192.7M(d);49 CPR 199.117;SoS
OMDo01 2 Delivery,Transfer,Usage,Manifest Worksheet and Inventory Logs c33
OMM02 Complaint Files and Problem Reports: 2 GC§W201;SoS e42
Related to Organizations Operations-Odor,Noise,Call Center Complaints
OMM03 Confined Space Entries 3 40 CPR§122.410)(2);SoS r 12
01HPG04 Flow Records LO GC§60201
OMM05 Logs-Control Center Plant Operations 30 GC§60201
01,11,006 Operations Monthly Logs,Inspector Diaries,Control Center Visitor Logs 3 GC§W201;40 CPR 122.41(j)(2)
O AD007 Monthly Reports: 2 GC§W201
Operating and Status Reports
es Operations&Maintenance OCSD 18-22-31 guarani
Citation Codes Reteutiou Code, Orange County Sanitation District
Cce Cade afColl Pm.Jure(CA) C Conndmal Records Retention Schedule General Retention Schedule Information
CCR Celaso is Code of Persian. CL Clons or Con fisted Any Public Records Act nquass,litigation,audits,claims and invanigaliorm suspends she
CPR Cate af.w.Pointer— EX P pimtl or eapice.— onsidwenden palioll,A"1111stion end proper dntlw.tion melFods art requited I",a
RC c Xew CWa(CA) EL itaccomc dufmying all official aids as send in the Disings Secants Raunlion Policy.Robinson
" GovemlmM CWe(Cation a) Is Historian and desprousian ajrecoNs Vegas on all nedla types beaus,bosh paps and eluwns
Has Hnhhffi Socay Cade LF Lihallusla,,Equip.maOMvarc _ dxwa.
IRC hounal Revenge Cade LO Life afIXpnwtion.Pnno e,
R19 In1emN Revemle serve. MA Anowny Copies us,preliminary drafts and tnnsuca,recoNs can be doomed when no longer
Labo
r or Code(CA) NN pace No Lon rNm4tl ancient to, businwe and do riot are an.,ache atina,'.en original records
PC Pool Cape(CA) S Supepeca haw mcaN shor deurueaon cons all capes and dispossess muss,be dcepri along way
OME 0lfioe air Man ,,&nudgn SP Sepveted she orfglnn(rogandlew o ashe media oJMe amM.
RATC Revenue&tropes Cede T renowned
SOS saywaryofsmu V Vial Chi Records canal be durnrded in Msh his.They must be submNeOm Heeorda
usC umtedynn Ccde Operations &Maintenance "tan..wonljrrecaredeaeraosio`
wC wmmcaaa
Hztemion Retention Special Suisse,consideration
Number Recant 9)'p! le n'. vnnl co
a— nraenml mobAal maomun ammius Commnnn
wl
(HD008 O&M Policies&Progedures S+5 GC§60201;SoS c19
Obm009 Operating Journals: 2 GC§60201;GC§53161
Round Sheets,Alarm summary,Operations Round Sheets,Midnight Readings,etc.
Oam01d Operating Records: 5 GC§60201;40 CAR 122.410)(2)
MSO,(hard copy), AS Plant Reports,Operators Schedules
O1,11,011 Process Data: LO GC§60201
Includes Electronic MSOb and TPODS
OMM12 Reference Files S GC§60201;GC§53161
0MI 013 Speeches/Presentations 2 GC§60201;GC§53161
Ohil la AQMD-1-Cengen emissions Reports,2-AQMD Round Sheet,3-Flare Rest 7 GC§60201;S.S e27
as Operations&Maintenance 0CSD 18-2232 Ampl•a.mn
Citation Codes Retention Code, Orange County Sanitation District
Cce Code ofColl Procedure(CA) C Coaftdm41 Records Retention Schedule General Retention Schedule Information
CCR Celifomio Code of Regulmi.e. CL Cloo.or Completed Any Public Records Act requcss,litigation,audits,claims and invaingariens suspends to
CPR Case of.w.Ronswuona EX Ppoen or rxpinlion onloolweersen peliods.A"11,1stion end proper dntw.tion 11dirds art requited I",on
RC eJ Xew Cuts(CA) EL PJec¢omc doorstop all official rewNe as laud in the Coatings RecoNS Reunlion Policy.Retention
GC Governorate Coto(Calitumia) H Hiablical andlabuetlon ajeecaNr Vp&g to all nNla types fnelrMg bach paper and elubonk
Has Penn Ar Sufery Cade LF LihafPacilin,,Equip.ounces— _ axuneM
IRC talentRevenn Ccde LO Lika rbonwnst oe Pari
ne9 hearing Reveal¢serve. MA MaNary Copies was,preliminary draftsm and rincory rcor ca
n n be destroyed when no longer
LC Labor CNe(CA) NN pence No Lon rNm4d insistent for ni.basin.¢-it do or require an.,autlmamiur,'.en internal records
PC Pool CWe(CA) S SuperolM haw mcaN shor deuruerion near all capes and dup&ara wuu be derpri along wash
OW 0lfioe atMan ,,&nudgn 8P SepvarN the atlglnn(ragandlew o/Ne readhe o alke nmrd.
FATC Revenue&Tmnaon Code T Tenninaktl
SOS sausba'asmu V Vital O$eiel Records—net be discussed in Mah hinx Thry must be submNeam Reeorda
use 11boodynerearade I I Operations &Maintenance M...wonj-occo LdeSrrosia`
we ssor da
H<temion aNemlon Special Strauss,con,m<nnon
rvumfia Record 9)'p! abrad m•� Vnnl connaenml xlaatcnl mhouter amnasa l Commnrin
wl
OMnG15 Facility Maintenance&Repair LF+2 GC§60201;Life of Asset+2 years;SoS rut]
Olvai Generator Operation Logs&Inspections: 3 GC§34090
Fixed or Stationary
Ohmo12 Pressure Vehicle CNG Tank Certifications or permits,Inspections LF+2 Depafhnent Preference;GC§34090 d.sal.;Life of Asset;
SoS c47;SoS ti
Cannabis Vehicle Smog Check Inspection Report LF+2 Depamnent preference;GC§60201
O vai Bit Inspection(CHP Commercial Vehicle Inspection) LF+2 49 CFR§396.11(c)(2);GC§60201;Life of the Vehicle+
2 years
Certifications: 5 Depamnent Preference;8 CCR§14300.33(a);GC§60201
oMno2o
Middle Crane,Vehicles,de. d seq.;LC§6429c
Chain of Custody: 5 OSHA records are requ red by,be retained for 5 years;8
OMn021
Shares Control,Spilt Sample CCR§14300.33(a);OC§60201 et seq.;SOS c21
OMM22 Collation System Process Data: LO GC§60201;Business Value
Pump Station,CRISP
m operations a Maintenance OCSD 18-22-33 AmPna.mo
Citation Codes Reteudou Codes Orange County Sanitation District
Cce Code ofColl Pm.dan(CA) C Coandmal Records Retention Schedule General Retention Schedule Information
CCR Ishmno Code of sessions. CL Cloo.or Consisted Any Public Records Act nNucss,litigation,auaib,claims and invanigalince,bords she
CPR Costs ofeew.Pearson— EX Ppimtl or eapire- alolsolcommum peliods.A"1111stion end proper dntrailmn medical art required I",on
RC centers Cishe(CA) EL comes" dulmyire all official rewNs as Aated in the Coatings Records Retention Policy.Retention
GC Govemmem Cola malifcanno H Hirbncal andlabuetlon ajeecaras Vp&g to all scope types because bash paper and elubonle
H&S Health&Socat Celle LF LihafPaciliry,Equip.or SoMvns, _ axwneM
IRC houral Revenge Cede TO Life afIXpnwnon.Pemmnm
H19 In1emN Revemle Serve. MA Maturity Cepies te,preliminary arms and transitory racoNs can be aermyed when no longer
LC Labor Coke(CA) NN pace No Lon rNm4a needN for nia¢ict buvinwe and do not regcire prior acharraor,'.-Original sortie
PC Pool Code(CA) S SuperolM haw mcaes dbeb desmeaon cons all capes and dap&Ores muss,be demroyN along repay
OMB 0lfioe atMmn,,ar mobs 8P Searmai the Nome wgaNlms o/she madb oJ1he ncard.
R&TC Revenue&transition Cede T Terminated
SOS Sareurya ssup, v Vital Chi Re cords camel be Asrnrded in.4 bias they must be submNedm Reeorda
use umtedelate,Ccde Operations &Maintenance Managemenfi n,nowne✓enrncanm
wC wnnrcaaa
Hatemion Retention Special Stories,consideration
Number Strand Types ll se, vunl co
a— nnaenml melancnl across.Cimlrona l Cons—sits
OMG923 Inspection Reports&Photos-Manhole 10 GC§60201;SOS c45
0SM024 Sewer Line Maiutenance He. 10 GC§60201
Vehicle Inspection&Equipment Checks Files:
Daily Safety Checks,Prn Sta sl Commercial Vehicle Pre-Starts and Forklift 49 CPR§396.1 l(c)(2);49 CFR§39621(b)(1);GC§60201;
Okm925 inspections,Pre-Trip Inspections,CHP inspections,Daily Vehicle Inspections, 4 GC§34090
Daily Equipment Checks
8 CCR§3203(id le 49 CFR§396.21(b)(1);49 CFR
Vehicle Records: §391 CCP§337 m.Seq.;GC§34090;Vehicle
OMM26 Equipment Files,Maintenance,Registrations,Vehicle Titles("Pink Slips"),Vehicle LF+2 Tide al'irdr Slips are transferred to new owner upon sale of
Citations vehicle all other records ale remised wol Disposal of
Vehicle or Equipment+2 years.
say Operations&Maintenance OCSD 18-22-34 hamplassi
Citation Codes Relendon Code, Orange County Sanitation District
Cce Cme afCoe Pmaada(CA) C Canadmal Records Retention Schedule General Retention Schedule Information
CCR Ishnmin Code of Re,falions CL Clood or Conecol Any Public Records Act requass,nation,adding,claims and awargations suspends the
CPR CWeaf.at.Regulanona EX P pimtl or eapance.on latedwanden peliods.A"1111etion end proper dntruclan onloods art required I",to
RC EkWmu(And(CA) EL 2kcnmtic dutmying all official rewrds as alnico in the Cast Seconds Reanlion Policy.Reasons
GC Godemmem Cod,(Calansw) H Hiabnaal ondlabaetlon ajeecaNs appfln in all nNla types bec4M'g bath paper and eluwnle
Has nuhh&Sony cod LP LihafFwihV,,Equip.mSORrvarc _ dxwueM
me suandi Revemte Cade LO Lika care coiun or Pema i
ne9 In1emN Renmle Service MA Malmiry Copies te;preliminary Mfls and transitory,recoNs can be aes,myed wFen An[output
LC Labor CNe(CA) NN when No]torujiturNm4tl mild far Oistritl nuances and do not twaite prior autho,iv,ian.•Wben anginal raar6
PC Pencil Cas,(CA) S Supetw]M base rcacbN lbeir deuruenon was all copies and dup&ores wuu be dcari along wash
OMB office ufMan ,,&Bud,n 8P opened she atlglm(wi endlese o we nladla oJthe retail.
RAVTC Revence&reopen Code T recondensed
SOS secoawafsgte V Visit Phi Records wonval be Asrnrded in nosh his.Thry must be submNedm FeeoNa
use uni,ea Stan,Cade Public Affairs ,non+ge,ntllretwredearrwonn.
we wmmcw t,
a<tmnoo Retentlon Special Stories,consideration
Phosphate Rncam 9)'p! lellg[n m.� Vs.. cdnManna xlRdrltl Rnlnnnan arannnalcnmmeng
" niml
PA0001 Education Curriculum: S+2 SoS c24;GC§60201;Destroy 2 years after superseded
Sewer Science,Water Festival,etc
PA000e Outreach/Event File: S+5 SoS c24;GC§60201
Thor Documentation,RSVP's,signin sheet,,etc.
PAOom Marketing Material: 7 GC§60201;SOS c19
Flyers,Brochures,Newsletters,Email Blasts,etc
PAOo04 Ph uld s&Videos LO GC§60201;Non-Historical Photos can be deleted when no
longer needed.
PA0005 Presentations and Supporting Documents: 2 GC§60201;SOS c24;Nov-Marketing related
(Includes PowerPoints)
az Public Aflars OCSD 18-22-35 Mwounklih
Citation Codes Repaid.Code, Orange County Sanitation District
Cce Cade cfCrvll Pm-Jam(CA) C Coaftdm41 Records Retention Schedule General Retention Schedule Information
CCR cohnmio Code of begonia s CL ClcsM cc ConpinM Any Public Records Act nquass,litigation,ones,claims and investigations suspends she
CPR Cate of.w.io,swnona EX Ppied or eapinlion onandwardon peliods.A"11,1stion end proper dnuaation methods art requited I",to
RC Ea Xow CWa(CA) EL Etwemuc dutmying all official rewNs as send in the DisGcis Recoula Reunlion Policy.Robinson
GC GovemlkmCWe(Califen io H Hiablical ondaasna,"'ajrecona,VpYn to all scope types because,bosh paper andermvona
H&S Maps&Socay Cade LF LihafPaciliy,,Equip.or SORrvarc _ axumenh,
IBC seemil Rensoe Cede W Life afIXpnwnun or PemmneM
H19 basset Revemle Serviw MA Mabson, Copies ux,psoiminary drafts and transitory racoNs can b,destroyed when no longer
Labo
r or CN notice NNnotice No Lor. rNm4 sh d noed to,.i.buvinwe and do not require peiarachan—co,'.en original mares,
PC Pool CWe(CA) S Supelw]M haw mcaN sbeb deuruerionem all capes and sup&ores wuu be dcari along way
man 0lfioe ofMme,,ar nudge SP SepvaW she mbglne(oandlew fshe madb oJrhe nmrd.
R&W Revenue&Tmaaou Code T Tenninakd
SOS saywaryafslau V vital Chi Re cords woural be durnrded in Mah bin,Th9•must be submNeam Reeorda
usC united state,Cade i i Public Affairs Man+gmnenllrreallredear.anian.
wC wnnrcaan
Hatemion Retention Special Stories,Consideration
Record Type Length be Raaatron Ciun...r Com i
rvamber vua connaenthl nobAw.
col
PA0006 Press/Mcdia Releases LO GC§60201,SOS c40
PA0007 Fabrication Proon- Non Board Related General Marketing 2 GC§60201;SOS c24
PA000e Websih Content Indefinite GC§60201
PA0009 Employee Events: LO GC§60201
Agency Awards,Recognitions,Announcements
Legislative Files:
PA0010 LO GC§60201;Soy c28
Loden of Support,Opposition,Plan Consolidation
PA0011 Social Media Phem; LO GC§60201
Facetani Twitter,YooTobe,teachers.,Etc.
ss PuNk Adam OCSD 18-22-36 Aaspraa:Eeo
Citation Codes Reteedoe Code, Orange County Sanitation District
Cce Case afCo0 pmadure(CA) C Canadmal Records Retention Schedule General Retention Schedule Information
CCR Califomin Code of hospitals. CL Clood or('on'leol Any Public Records Act nequass,notation,uses,claims and awargation,suspends the
CPR CWeof.eb.Rvalanona EX Ppima or depice.— Indedweandon pclii AulFonretion end proper dnnecal"11deda art required I",to
RC EkWom dead(CA) EL 0xaeu, dessurep,all official rewrdses sated in the DisGUTS because Racenlion Policy.Resennon
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37 task Management Is So" OCSD 18-22-40 MaptedgiD
ADMINISTRATION COMMITTEE Meeting Date TOBE.Or .Dir.
12/12/18 12/19/18
AGENDA REPORT Item Item Number
3 22
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Assistant General Manager
SUBJECT: INVEST AND/OR REINVEST DISTRICT'S FUNDS
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 18-23, entitled: "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, Adopting District's Investment Policy Statement and
Performance Benchmarks, and Repealing Resolution No. OCSD 17-17".
BACKGROUND
This agenda item presents an update to the Orange County Sanitation District's
(Sanitation District) Investment Policy Statement to the Administration Committee for
consideration in the Committee's capacity as the oversight committee for the Investment
Policy (Section 18.2). 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 calendar year
2019.
The Sanitation District's Investment Policy Statement was previously approved by the
Administration Committee and Board for calendar year 2018 in December 2017.
RELEVANT STANDARDS
• Orange County Sanitation District Investment Policy
• California Government Code Sections 53607 and 53646
PROBLEM
California Government Code Section 53607 allows for the Board of Directors to delegate
authority to invest and/or reinvest the Sanitation District's funds to the Treasurer for a
one-year period. California Government Code Section 53646 requires the Sanitation
District to review its Investment Policy annually and readopt its Policy at a public meeting,
which will establish specific performance benchmarks and objectives, and specific
monitoring and reports. On December 20, 2017, the Board of Directors adopted
Resolution No. OCSD 17-17, entitled "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, Adopting District's Investment Policy Statement and
Performance Benchmarks; and Repealing Resolution No. OCSD 16-19". Authority
Page 1 d 4
delegated by the Board of Directors to the Assistant General Manager & Director of
Finance and Administrative Services/Treasurer to invest and/or reinvest the Sanitation
District's funds expires on December 31, 2018. Pursuant to California Government Code
Section 53646, the Sanitation District's Investment Policy must be reviewed and
readopted prior to December 31, 2018.
PROPOSED SOLUTION
With adoption of the Resolution, the Board of Directors would renew its delegation of
investment authority to the Assistant General Manager & Director of Finance and
Administrative Services/Treasurer for a one-year period, January 1, 2019 to
December 31, 2019, in compliance with the requirements of California Government Code
Section 53607. Each year, the Board of Directors will consider similar actions, along with
the annual reconsideration of the Sanitation District's Investment Policy.
TIMING CONCERNS
The Board of Directors delegation of authority to the Assistant General Manager &
Director of Finance and Administrative Services/Treasurer to invest and/or reinvest the
Sanitation District's funds will expire on December 31, 2018. Pursuant to California
Government Code Section 53646, the Sanitation District's Investment Policy must be
reviewed and readopted prior to December 31, 2018.
RAMIFICATIONS OF NOT TAKING ACTION
The Sanitation District's Assistant General Manager & Director of Finance and
Administrative Services/Treasurer will not be able to invest and/or reinvest the Sanitation
District's funds and the Sanitation District will not be in compliance with California
Government Code Section 53646.
PRIOR COMMITTEE/BOARD ACTIONS
December 2017 - Board adopted Resolution No. OCSD 17-17, entitled "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,Adopting District's Investment Policy
Statement and Performance Benchmarks; and Repealing Resolution No. OCSD 16-19".
ADDITIONAL INFORMATION
The Sanitation District Investment Policy Statement is a comprehensive document
describing the policy, authorizations, benchmarks, delegations, and investment
limitations contained within these 18 distinct sections.
1.0 Policy
2.0 Scope
3.0 Standard of Prudence
4.0 Investment Objectives
Page 2 of 4
5.0 Delegation of Authority
6.0 Ethics and Conflicts of Interest
7.0 Authorized Financial Dealers and Institutions
8.0 Authorized and Suitable Investments
9.0 Review of Investment Portfolio
10.0 Investment Pools/Mutual Funds
11.0 Collateralization
12.0 Safekeeping and Custody
13.0 Diversification
14.0 Maximum Maturities
15.0 Internal Control
16.0 Performance Objectives and Benchmarks
17.0 Reporting
18.0 Investment Policy Adoption and Revision
The Investment Policy will govern the investment activities of Chandler Asset
Management, the Sanitation District's external money manager, on behalf of the
Sanitation 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 (CMTA). 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.
Annual Review of Investment Policv
The Investment Policy includes the requirement that the Sanitation District shall review
its Investment Policy annually (Sections 1.2 and 18.1).
Chandler Asset Management reviewed the existing policy to ensure that the language
remains current with the California Government Code.
The proposed Investment Policy is attached with reclined changes from the most recent
approved policy in December 2017. These proposed changes include:
• Updating Section 8.3 under "Authorized and Suitable Investments" to reflect
changes made to California Government Code taking place on January 1, 2019.
On September 6, 2018 California Governor Brown signed AB-1770. The bill
changed section (o) in CA Code 53601 to drop the issuer credit requirement.
• Addition of Section 9.0 "Review of Investment Portfolio" to assure that the
securities held by the District is in compliance with Section 8.0 "Authorized and
Suitable Investments."
• Addition of Section 10.0 "Investment Pools/Mutual Funds" to include a section on
investigation and due diligence when governmental sponsored pools and /or
mutual funds are included in authorized investments.
Page 3 of 4
• Updating the Sanitation District Treasury Management Procedures to reflect the
replacement of Union Bank with Banc of California as the Sanitation District's
commercial bank.
Annual Delegation of Investment Authority
Effective January 1, 1997, California Government Code Section 53607 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.
CEQA
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(wwwocsd.corn with the complete agenda package:
• Exhibit A - OCSD Calendar Year 2018 Investment Policy Statement (clean &
redline)
• Exhibit B - Performance Monitoring and Reporting Schedule and Summary
• Proposed Resolution No. OCSD 18-23
• Orange County Sanitation District Treasury Management Procedures (clean &
redline)
Page 4 of 4
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 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 OCSD's 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 13.0, and maturity limitations, more fully
described in Section 14.0, 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 at seq. and Sections 53635
at seq. The Board of Directors hereby delegates management
responsibility for the OCSD investment program to its Assistant General
Manager& 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 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.
Page 1
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:
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.
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.
Page 2
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
service of any of such independent securities brokerage firms it deems
appropriate to the extent that such firms 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 et seq., and 53684, and as described within
this Investment Policy. Permitted investments under this Policy shall include:
Page 3
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 (f) of the California Government
Code. US Treasury securities must make up at least 10% of the portfolio.
8.2 Supranational Obligations issued or unconditionally guaranteed by the
International Bank for Reconstruction and Development, International
Finance Corporation, or Inter-American Development Bank. Securities
must be eligible for purchase in the United States and be US dollar
denominated senior unsecured unsubordinated obligations, with a
maximum maturity of five years. Securities eligible for purchase under this
section must be rated "AA" or better by a Nationally Recognized Statistical
Rating Organization (NRSRO) and shall not exceed 30% of the total
portfolio.
8.3 Mortgage pass-through security, collateralized mortgage obligation,
mortgage-backed or other pay-through bond, equipment lease-
backed certificate, consumer receivable pass-through certificate, or
consumer receivable-backed bond. Securities eligible for investment
under this subdivision shall be rated in a rating category of"AA" or its
equivalent or better by an NRSRO and have a maximum remaining
maturity of five years or less. Purchase of securities authorized by this
subdivision may not exceed 20 percent of the agency's surplus moneys
that may be invested pursuant to this section. Purchase of mortgage
derivatives, which include interest-only payments (10s) and principal-only
payments (POs); inverse Floaters, and RE-REMICs (Real Estate Mortgage
Investment Conduits), is hereby prohibited.
8.4 Commercial paper of"prime" quality of the highest ranking or of the
highest letter and number rating as provided by an NRSRO, 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 an NRSRO. Purchases of eligible
commercial paper may not exceed 270 days to maturity from the date of
purchase. Purchases of commercial paper shall not exceed 25% of the
market value of the portfolio. 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.
8.5 Banker's acceptances issued by institutions, the short-term obligations of
which are rated of the highest ranking or the highest letter and number
rating as provided by an NRSRO 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 5% of the total
portfolio may be invested in the banker's acceptances of any one (1)
commercial bank.
Page 4
8.6 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 an NRSRO. If, after purchase, the rating
of an eligible note falls below the minimum rating category stipulated
above, 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. No more than 30% of the portfolio may be invested in
medium term notes.
8.7 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
California 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.
8.8 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (1) 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 20% of the District's surplus money that may be invested pursuant
to this section. 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. Money market mutual funds are limited to 20%
per issuer and are not subject to the 10% stipulation.
8.9 Certificates of deposit:
8.9.1 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
Page 5
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 et seq., of the California Government Code.
8.9.2 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 a
NRSRO; or which shall have the highest letter and number rating for
deposits as provided by a NRSRO; or as otherwise approved by the
District's Board of Directors. No more than 30% of the portfolio may be
invested in securities pursuant to this section.
8.9.3 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.
8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated "A" or higher by a NRSRO; or as
otherwise approved by the Districts' Board of Directors.
8.11 The State of California Local Agency Investment Fund (LAIF). The
LAIF is an investment alternative for California's local governments and
special districts managed by the State Treasurer's Office. LAIF is more
fully described in the Glossary (See Appendix "H.") The District shall use
LAIF as a short-term cash management facility. Investment of District
funds in LAIF 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.
8.12 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.
Page 6
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.
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 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.
Page 7
9.0 Review of Investment Portfolio:
The securities held by OCSD must be in compliance with Section 8.0 "Authorized and
Suitable Investments" at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non-compliant security to the
Administration Committee and Board of Directors and shall include a disclosure in the
quarterly Treasurer's Report if the security is held at the date the date the report is
prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a
continual basis. A questionnaire shall be developed that will provide the following
information:
10.1 A description of eligible investment securities, and a written statement of
investment policy and objectives.
10.2 A description of interest calculations and how they are distributed, and
how gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the
settlement processes) and how often the securities are priced and the
program audited.
10.4 A description of who may invest in the program, how often, and what size
deposits and withdrawals are allowed.
10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or
other collateral and how they are used by the fund.
10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will
accept such proceeds.
11.0 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 8.9.1; 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 12.0. The right of collateral substitution is
granted.
Page 8
12.0 Safekeeping and Custody:
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.
13.0 Diversification:
OCSD will diversify its investments by security type, issuer, and financial institution in
accordance with the following:
13.1 There is no limit on investment in securities issued by or guaranteed by
the full faith and credit of the U.S. government.
13.2 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.
13.3 No more than 5% of the portfolio may be invested in securities of any one
issuer, other than Supranationals, the U.S. government or its agencies.
Investment in mutual funds is not governed by this Section 13.3. See
Section 13.8 for conditions of purchase of mutual funds.
13.4 No individual holding shall constitute more than 5% of the total debt
outstanding of any issuer.
13.5 No more than 40% of the portfolio may be invested in banker's
acceptances.
13.6 No more than 25% of the portfolio may be invested in commercial paper.
13.7 No more than 30% of the portfolio may be invested in medium-term
(corporate) notes.
13.8 No more than 20% of the portfolio may be invested in mutual funds. No
more than 10% of the District's portfolio may be invested in shares of
beneficial interest of any one (1) mutual fund. Money market mutual funds
are limited to 20% per issuer and are not subject to the 10% stipulation.
13.9 No more than 30% of the portfolio may be invested in negotiable
certificates of deposit.
13.10 No more than 10% of the portfolio may be invested in eligible municipal
bonds.
Page 9
13.11 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.
13.12 No more than the lesser of 15% of the portfolio or the statutory maximum
may be invested in LAIF.
13.13 No more than 15% of the portfolio may be invested in the Orange County
Investment Pool.
13.14 No more than 20% of the portfolio may be invested in repurchase
agreements.
13.15 No more than 5% of the portfolio may be invested in reverse repurchase
agreements.
14.0 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:
14.1 Liquid Operating Monies. Funds needed for current operating and
capital expenditures are known as Liquid Operating Monies.
14.1.1 The maximum final stated maturity of individual securities in the
Liquid Operating Monies account portfolio shall be one (1) year from the
date of settlement.
14.1.2 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.
14.2 Long Term Operating Monies. Funds needed for longer term purposes
are known as the Long Term Operating Monies.
14.2.1 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 settlement.
14.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on the District's
five-year cash flow forecast, but may never exceed 60 months.
Page 10
14.2.3 The duration of the Long Term Operating Monies account
portfolio shall never exceed 120% of the duration as established in
accordance with Section 14.2.2.
14.2.4 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 14.2.2.
15.0 Internal Control:
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."
16.0 Performance Objectives and Benchmarks:
16.1 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.
16.2 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. OCSD18-23 (see Appendix
"E„).
16.3 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 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 18-23
(See Appendix"E").
17.0 Reporting:
17.1 Monthly transaction reports in accordance with California Government
Code Section 53607 shall be submitted by the Treasurer to the District's
Board of Directors.
17.2 Quarterly investment reports will 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 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
Page 11
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:
17.2.1 Cost and accurate and complete market value of the portfolio.
17.2.2 Modified duration of the portfolio compared to Benchmark.
17.2.3 Dollar change in value of the portfolio for a one-percent (1%)
change in interest rates.
17.2.4 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.
17.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days.
17.2.6 Average portfolio credit quality.
17.2.7 Percent of portfolio with credit ratings below "A" by any rating
agency, and a description of such securities.
17.2.8 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.
17.2.9 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.
17.2.10 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.
17.3 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.
18.0 Investment Policy Adoption and Revision:
18.1 The Investment Policy of OCSD shall be reviewed by the Administration
Committee and shall be adopted by resolution of the Board of Directors of
Page 12
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.
18.2 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.
Page 13
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 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 OCSD's 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 13.044-.0, and maturity limitations, more
fully described in Section 14.042-.9, 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 at seq. and Sections 53635
at seq. The Board of Directors hereby delegates management
responsibility for the OCSD investment program to its Assistant General
Manager& 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 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.
Page 1
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.
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
Page 2
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
service of any of such independent securities brokerage firms it deems
appropriate to the extent that such firms 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
Page 3
including Sections 16429.1 at seq., 53600 et 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 (f) of the California Government
Code. US Treasury securities must make up at least 10% of the portfolio.
8.2 Supranational Obligations issued or unconditionally guaranteed by the
International Bank for Reconstruction and Development, International
Finance Corporation, or Inter-American Development Bank. Securities
must be eligible for purchase in the United States and be US dollar
denominated senior unsecured unsubordinated obligations, with a
maximum maturity of five years. Securities eligible for purchase under this
section must be rated "AA" or better by a Nationally Recognized Statistical
Rating Organization (NRSRO) and shall not exceed 30% of the total
portfolio.
8.3 Mortgage pass-through security, collateralized mortgage obligation,
mortgage-backed or other pay-through bond, equipment lease-
backed certificate, consumer receivable pass-through certificate, or
consumegrail receivable-backed bond
years.
eecur tie a! g ble for th g q_bdv.s on shall be
equivalent GF betteF by an Securities eligible for investment
under this subdivision shall be rated in a rating category of"AA" or its
equivalent or better by an NRSRO and have a maximum remaining
maturity of five years or less. Purchase of securities authorized by this
subdivision may not exceed 20 percent of the agency's surplus moneys
that may be invested pursuant to this section. 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.
8.4 Commercial paper of"prime" quality of the highest ranking or of the
highest letter and number rating as provided by an NRSRO, 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 an NRSRO. Purchases of eligible
commercial paper may not exceed 270 days to maturity from the date of
purchase. Purchases of commercial paper shall not exceed 25% of the
market value of the portfolio. 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.
8.5 Banker's acceptances issued by institutions, the short-term obligations of
which are rated of the highest ranking or the highest letter and number
Page 4
rating as provided by an NRSRO 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 5% of the total
portfolio may be invested in the banker's acceptances of any one (1)
commercial bank.
8.6 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 an NRSRO. If, after purchase, the rating
of an eligible note falls below the minimum rating category stipulated
above, 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. No more than 30% of the portfolio may be invested in
medium term notes.
8.7 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
California 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.
8.8 Shares of mutual funds investing in securities permitted under this policy
and under Section 53601 (1) 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 20% of the District's surplus money that may be invested pursuant
to this section. No more than 10% of the District's surplus funds may be
invested in shares of beneficial interest of any one (1) mutual fund
Page 5
pursuant to this section. Money market mutual funds are limited to 20%
per issuer and are not subject to the 10% stipulation.
8.9 Certificates of deposit:
8.9.1 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
et seq., and Chapter 4.5, Savings and Loan Association and Credit Union
Deposit Law, Section 16600 at seq., of the California Government Code.
8.9.2 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 a
NRSRO; or which shall have the highest letter and number rating for
deposits as provided by a NRSRO; or as otherwise approved by the
District's Board of Directors. No more than 30% of the portfolio may be
invested in securities pursuant to this section.
8.9.3 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.
8.10 Taxable or tax-exempt municipal bonds issued by any of the 50 United
States. Such securities must be rated "A" or higher by a NRSRO; or as
otherwise approved by the Districts' Board of Directors.
8.11 The State of California Local Agency Investment Fund (LAIF). The
LAIF is an investment alternative for California's local governments and
special districts managed by the State Treasurer's Office. LAIF is more
fully described in the Glossary (See Appendix "H.") The District shall use
LAIF as a short-term cash management facility. Investment of District
funds in LAIF 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.
8.12 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
Page 6
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.
8.13 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.
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 below the quality
required by this Investment Policy, it shall be OCSD's policy to review the
Page 7
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 Review of Investment Portfolio:
The securities held by OCSD must be in compliance with Section 8.0 "Authorized and
Suitable Investments" at time of purchase. If at a later date, a security is no longer in
compliance with Section 8.0, the Treasurer shall report the non-compliant security to the
Administration Committee and Board of Directors and shall include a disclosure in the
quarterly Treasurer's Report if the security is held at the date the date the report is
prepared.
10.0 Investment Pools/Mutual Funds:
A thorough investigation of the pool/fund is required prior to investing, and on a
continual basis. A questionnaire shall be developed that will provide the following
information:
10.1 A description of eligible investment securities, and a written statement of
investment policy and objectives.
10.2 A description of interest calculations and how they are distributed, and
how gains and losses are treated.
10.3 A description of how the securities are safeguarded (including the
settlement processes) and how often the securities are priced and the
program audited.
10.4 A description of who may invest in the program, how often, and what size
deposits and withdrawals are allowed.
10.5 A schedule for receiving statements and portfolio listings.
10.6 A description of the utilization and level of reserves, retained earnings or
other collateral and how they are used by the fund.
10.7 A fee schedule, and when and how is it assessed.
10.8 Whether the pool/fund is eligible for bond proceeds and/or whether it will
accept such proceeds.
11.0" 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 8.9.1; and repurchase agreements, as
Page 8
more fully described in Section 8.13.1. Collateral will always be held by an independent
third-party, as more fully described in Section 12.010 1. The right of collateral
substitution is granted.
12.0 490—Safekeeoing and Custody:
4-0 4 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.
13.044-9 Diversification:
OCSD will diversify its investments by security type, issuer, and financial institution in
accordance with the following:
13.144� There is no limit on investment in securities issued by or
guaranteed by the full faith and credit of the U.S. government.
13.244-2 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.
13.344-3 No more than 5% of the portfolio may be invested in securities of
any one issuer, other than Supranationals, the U.S. government or its
agencies. Investment in mutual funds is not governed by this Section
13.344-3. See Section 13.544-.8 for conditions of purchase of mutual
Funds.
13.411.4 No individual holding shall constitute more than 5% of the total debt
outstanding of any issuer.
13.541-5 No more than 40% of the portfolio may be invested in banker's
acceptances.
13.614-.415 No more than 25% of the portfolio may be invested in commercial
paper.
13.744-.7 No more than 30% of the portfolio may be invested in medium-term
(corporate) notes.
13.844-6 No more than 20% of the portfolio may be invested in mutual funds.
No more than 10% of the District's portfolio may be invested in shares of
beneficial interest of any one (1) mutual fund. Money market mutual funds
are limited to 20% per issuer and are not subject to the 10% stipulation.
Page 9
13.94 1-9 No more than 30% of the portfolio may be invested in negotiable
certificates of deposit.
13 10„.,n No more than 10% of the portfolio may be invested in eligible
municipal bonds.
13_1111.11 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.
13_1211 1^ 2 No more than the lesser of 15% of the portfolio or the statutory
maximum may be invested in LAIF.
13_1311.13 No more than 15% of the portfolio may be invested in the Orange
County Investment Pool.
13 1411.14 No more than 20% of the portfolio may be invested in repurchase
agreements.
13 154445 No more than 5% of the portfolio may be invested in reverse
repurchase agreements.
14.013E 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:
14.1424 Liquid Operating Monies. Funds needed for current operating
and capital expenditures are known as Liquid Operating Monies.
14_1.1 Q 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 settlement.
14_1.2Q 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.
14.242-2 Long Term Operating Monies. Funds needed for longer term
purposes are known as the Long Term Operating Monies.
14_2.112-2 1 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 settlement.
12.2.2
Page 10
14.2.2 The duration of the Long Term Operating Monies account
portfolio shall be recommended by the Treasurer based on the District's
five-year cash flow forecast, but may never exceed 60 months.
14_2.312.2.3 The duration of the Long Term Operating Monies account
portfolio shall never exceed 120% of the duration as established in
accordance with Section 14.2.212.2.2.
423-3
42 2 4 14.2.4 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 2 214.2.2.
15.0430 Internal Control:
434—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."
16.034,9 Performance Objectives and Benchmarks:
16.1444 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.
16.234-2 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
142 more fully described in Board Resolution No. 0"M 17 17OCSD18-23
(see Appendix "E").
16.3
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 District's Board of
Directors, when the duration of the portfolio is established. This market
index is more fully described in Board Resolution No. GGSB-47-17 OCSD
18-23_(See Appendix "E").
17.04" Reporting:
Page 11
17.145.4 Monthly transaction reports in accordance with California
Government Code Section 53607 shall be submitted by the Treasurer to
the District's Board of Directors.
17.245:-2 Quarterly investment reports will 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 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:
17.2.115.2.1 Cost and accurate and complete market value of the
portfolio.
17.2.21522 Modified duration of the portfolio compared to Benchmark.
17_2.316.2.3 Dollar change in value of the portfolio for a one-percent (1%)
change in interest rates.
17.2.416.2.4 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.
17_2.516.2.5 For the Liquid Operating Monies account only, the percent of
portfolio maturing within 90 days.
17.2.616.2.6 Average portfolio credit quality.
17_2.735-�2 7 Percent of portfolio with credit ratings below "A" by any
rating agency, and a description of such securities.
17_2.816.2.8 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.
17_2.91 r;22 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.
17.2.1045,2.19 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.
Page 12
17.3
444 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.
18.04" Investment Policy Adoption and Revision:
18.144&.4 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.
18.246-2 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.
Page 13
EXHIBIT 'B"
Calendar Year 2019 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:
January 2019 Board Only)
February Oct— Dec 2018
March
April
May Jan — March 2019
June
Jul
August Board only) Aril —June 2019
September
October
November Jul —Sept 2019
December
Page 1 of 2
EXHIBIT "B"
ORANGE COUNTY SANTIATION DISTRICT
PERFORMANCE MONITORING & REPORTING SUMMARY
FOR THE DISTRICT'S INVESTMENT PROGRAM
POLICY
REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY*
Chandler U.S. Bank Callan
17.2.1 Cost and market value of the portfolio (monthly mark-to-market). M, Q M, Q Q
17.2.2 Modified duration of the portfolio compared to benchmark. M, Q Q
17.2.3 Dollar change in value of the portfolio for a 1%change in interest rate. M, Q Q
17.2.4 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.
17.2.5 For the Liquid Operating Monies account only,the percent of portfolio maturing within 90 M, Q Q
days.
17.2.6 Average portfolio credit quality. M, Q Q
17.2.7 Percent of portfolio with credit ratings below"A" by any rating agency, and a description M, Q Q
of such securities.
17.2.8 Listing of any transaction or holdings which do not comply with this policy or with the M, Q
California Government Code.
17.2.9 Time-weighted total rate of return for the portfolio for the prior three 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
17.2.10 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
Page 2 of 2
RESOLUTION NO. OCSD 18-23
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,
ADOPTING DISTRICT'S INVESTMENT POLICY STATEMENT AND
PERFORMANCE BENCHMARKS, AND REPEALING RESOLUTION
NO. OCSD 17-17
WHEREAS, on December 20, 2017, the Board of Directors adopted Resolution
No. 17-17, 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, January 1, 2019 through December 31, 2019,
as authorized by California Government Code Section 53607.
OCSD 18-23-1
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-Term 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.
Section 5: That Resolution No. OCSD 17-17 is hereby repealed.
OCSD 18-23-2
PASSED AND ADOPTED at regular meeting of the Board of Directors, Orange
County Sanitation District held December 19, 2018.
David John Shawver
Board Chairman
ATTEST:
Kelly A. Lore, MMC
Clerk of the Board
OCSD 18-23-3
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation
District, do hereby certify that the foregoing Resolution No. OCSD 18-23 was passed and
adopted at a regular meeting of said Board on the 19th day of December 2018, 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 19th day of December 2018.
Kelly A. Lore, MMC
Clerk of the Board of Directors
Orange County Sanitation District
OCSD 18-23-4
Appendix "B"
Revised: November 26, 2018
Orange County Sanitation District
Treasury Management Procedures
1.0 Purpose
1.1 The purpose of this policy is to establish uniform guidelines and procedures
for use in the administration of the District's Treasury functions consistent
with the California Government Code and the District's adopted Investment
Policy Statement.
2.0 Authority to Investment and/or Reinvestment of District Funds:
2.1 Is delegated annually to the Director of Finance/Treasurerin accordance
with California Government Code Section 53607.
3.0 Formal Investment Policy Statement:
3.1 Is prepared by the Treasurer.
3.2 Is reviewed by the District's Administration Committee (ADM), in its role as
the finance oversight committee.
3.3 Is submitted to and adopted by the District's Board of Directors annually at
a public meeting in accordance with California Government Code Section
53646.
4.0 Delegation of some or all of the investment portfolio management to one or more
registered investment advisors (external money managers):
4.1 Is authorized by the District's Investment Policy;
4.2 Applies to the District's entire investment portfolio except for:
4.2.1 A maximum of $65 million that is maintained within the State Local
Agency Investment Fund (LAIF) for managing cash Flows (i.e.,
deposits of large revenues, such as property tax and user fee
proceeds, and the bi-weekly disbursements of payroll and accounts
payable);
4.2.2 A peg amount of approximately $50,000 is maintained within the
District's checking account at Banc of California to serve as
compensating balances to offset banking charges(note:the District's
Board of Directors has selected Banc of California to serve as the
District's commercial bank (the "Bank"); and
4.2.3 Based on a determination by the District's Treasurer on what is most
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 2 of 7
advantageous to the District, the checking account residual amounts
may be invested as follows:
4.2.3.1 Bank balances exceeding the peg balance (as a result of
outstanding accounts payable and payroll warrants) may
be invested overnight under a repurchase agreement with
the Bank; or
4.2.3.2 The District may elect to receive earnings credit against
bank charges on all bank balances including the peg
amount equal to the 91 Day T-Bill Average.
5.0 Investment transactions involving the LAIF are approved by the Treasurer prior to
their execution by the Controller. The approval function indicates that the
transactions are in accordance with the District's Investment Policy. The
Accounting Supervisor will serve as backup for the approval function upon the
absence of any either of these two employees.
5.1 Specific Procedures involving LAIF include (note: all deposits and
withdrawals of funds to/from LAIF may only be processed through the
District's checking account with the Bank):
5.1.1 A "State Treasurer's Local Agency Investment Fund Authorization
Form" (see Attachment`A")must be completed prior to the execution
of the transaction indicating:
5.1.1.1 The effective date of the transaction;
5.1.1.2 The dollar amount to be withdrawn from or deposited into
LAIF;
5.1.1.3 The date and signature approval by the Controller
authorizing the transaction; and
5.1.1.4 The date and signature approval of the Treasurer
approving the transaction.
5.1.2 The execution of the transaction will be done in accordance with the
"State Treasurers Local Agency Investment Fund Wire Transfer
Instructions" (see Attachment "B"). Key internal control features
include:
5.1.2.1 The requirement of the District's Personnel Identification
Number (PIN) for either deposits or withdrawals, known
only by the Treasurer and Controller.
5.1.2.2 Secondary confirmation requirement by the Bank for the
withdrawals/deposits from/to the Bank or LAIF. The
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 3 of 7
confirmation can be made by the Controller or Treasurer
(the person that didn't make the original request), the
Accounting Supervisor, or the Principal Accountant.
5.1.3 Each transaction is confirmed the next day by the Bank's Previous
Day Reporting modem service by the Senior Accountant and
Controller.
6.0 Investment transactions involving the District's external investment program and
performed by the independent investment firms are as follows:
6.1 The District's Board of Directors has selected Chandler Asset Management
(Chandler) to manage two portfolios: the Districts' Liquid Operating Monies
Fund and the Long-term Operating Monies Fund.
6.1.1 Chandler has authorization to purchase and sell investment
securities in accordance with the strict investment guidelines set
forth in the District's Investment Policy (Section 8.0).
6.1.2 Hard copy confirmation reporting to the District is required on all
transactions.
6.2 The District's Board of Directors has selected U.S. Bank (the "Custodian")
to serve as the District's master custodian and safekeeping bank. In their
capacity as Custodian, U.S. Bank shall perform the following duties to settle
purchases and sales and engage in other transactions in the administration
of the District's accounts:
6.2.1 Upon execution of any transaction by Chandler, all investment
securities are recorded in book entry by the Custodian through either
the Depository Trust Company or the Federal Reserve Bank;
6.2.2 Hold the property in safekeeping facilities of the Custodian or of other
custodian banks or clearing corporations in the U.S.;
6.2.3 Collect all income payable to and all distributions due to the District's
account and sign on the District's behalf all declarations, affidavits,
and certificates of ownership required to collect income and principal
payments;
6.2.4 Collect all proceeds from securities, certificates of deposit or other
investments which may mature or be called;
6.2.5 Submit or cause to be submitted to the District or the external money
manager, as designated by the District, on a best effort basis all
information received by the Custodian regarding the ownership rights
pertaining to property held in the account;
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 4 of 7
6.2.6 Attend to involuntary corporation actions;
6.2.7 Determine the fair market value of the District's account on a monthly
basis as of such dates as the Districts and the Custodian may agree
upon, in accordance with methods consistently followed and
uniformly applied;
6.2.8 Render to District, with copies to the external money manager,
monthly statements for securities held hereunder; and
6.2.9 Provide the District with copies of the Custodian's financial
statements filed with the State of California, or any agency thereof,
within thirty (30) days after such filing.
6.3 The District's Board of Directors has selected Callan Associates as the
District's Independent Investment Advisor (the "Advisor"). In their capacity
as Advisor, Callan shall perform the following duties on behalf of the District:
6.3.1 Monitor and report on Chandler's compliance with the investment
requirements of the Districts' Investment Policy, using data from
transaction reports prepared by U.S. Bank, on a quarterly basis;
6.3.2 Review Chandler's investment strategy quarterly;
6.3.3 Monitor and report on the performance of Chandler against the
performance benchmark standards established in the District's
Investment Policy for both the Liquid Operating Monies Fund and the
Long-term Operating Monies Fund on a quarterly basis; and
6.3.4 Review both Liquid and Long-term Operating Funds by asset
allocation, asset flow, quarterly factors and cumulative results on a
quarterly basis.
6.4 Specific procedures in depositing to or withdrawing funds from the
investment portfolio managed by the District's external money manager
include: (note: all deposits and withdrawals of funds from the District's
investment portfolio managed by Chandler and U.S. Bank may only be
processed through the District's checking account at the Bank):
6.4.1 A "Wire Transfer Form" (see Attachment" C") must be completed by
the Controller prior to the execution of the transaction indicating:
6.4.1.1 The dollar amount to be withdrawn/deposited from/to the
Bank checking account to/from the Chandler Liquid
Operating or Chandler Long-term Operating Monies
Funds;
6.4.1.2 The effective date of the transaction;
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 5 of 7
6.4.1.3 The date and signature or electronic review by the
Controller; and
6.4.1.4 The date and signature or electronic approval of the
Treasurer approving the transaction.
6.4.2 The execution of the transaction requires a verbal confirmation call
from the Custodian to the Controller at the time of the transaction,
and a written confirmation the following day.
6.4.3 Each transaction is confirmed the next day by the Bank's Previous
Day Reporting modem service by the Senior Accountant and
Controller.
7.0 Recording of investment transactions:
7.1 For investment transactions conducted by District staff with the LAIF, and
with the transfer/withdrawal of funds with the Custodian:
7.1.1 Is done by the Controller who maintains a file of all investment
transactions.
7.1.2 Is done within the accounting records by the Senior Accountant, who
receives a signed copy of all investment transactions from the
Controller.
7.2 For investment transactions conducted by the external money manager:
7.2.1 Is done by the Custodian who posts all investment transactions daily
within their record keeping system and provides the District with a
monthly report that provides both a summary and detail listing of all
investment transactions.
7.2.2 Is done on a monthly basis by the Senior Accountant within the
accounting records at a summary level using Monthly Transaction
Reports prepared by the Custodian.
8.0 Verification of external money manager transactions is performed by:
8.1 The Custodian within their record keeping system (i.e., matching broker
confirmations to custodian records), and is reported to the District and
Chandler on a monthly basis.
8.2 Chandler through their internal compliance office and reported monthly to
the District as required by the District's Investment Policy.
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 6 of 7
8.3 The Senior Accountant through reconciliation of Chandler's monthly
investment transaction report against the monthly transaction report
provided by the Custodian.
9.0 Safeguarding of Assets and Records:
9.1 Reconciliation of investment records to the accounting records is done by
the Senior Accountant (or in their absence, the Principal Accountant) on a
monthly basis.
9.2 Reconciliation of investment records to bank statements is performed by
the Senior Accountant(or in their absence, the Principal Accountant)within
one week following the receipt of the bank statement.
9.3 Review of financial condition, safety, liquidity, and potential yields of
investment instruments and reputation and financial condition of investment
brokers is done by the District's external money manager, who is authorized
to utilize the services of independent securities brokerage firms as deemed
appropriate, and which meets the requirements of Government Code
Section 53601.5.
10.0 The periodic review of the investment portfolio, including investment types,
purchase price, market values, maturity dates, and investment yields as well as
conformance to the stated Investment Policy will be performed monthly by the
Controller, quarterly by the Advisor, and annually by the District's external
independent auditors.
11.0 The District's Administration Committee will serve as the Oversight Investment
Advisory Committee to assist the Board of Directors in monitoring treasury
management activities.
11.1 The District's Treasurer submits a Quarterly Investment Program
Performance Report which includes, but is not limited to, the following
information:
11.1.1 Quarterly interest earnings and rates of return;
11.1.2 The market value of the portfolios;
11.1.3 The annualized earnings of the portfolios;
11.1.4 Market recap;
11.1.5 Comparisons with pre-determined benchmarks;
11.1.6 Market forecast; and
11.1.7 Proposed investment strategy for the upcoming quarter.
Orange County Sanitation District Treasury Management Procedures
Revised: November 26, 2018
Page 7 of 7
Internal Control Strengths
1. The specific responsibility for the performance of duties is assigned and lines of
authority and reporting are clearly identified.
2. Responsibilities are commensurate with the capabilities of the personnel assigned.
3. Incompatible functions have been properly segregated to prevent errors or fraud.
4. All transactions are authorized by an appropriate responsible individual.
5. Safeguards over assets and records are in place to ensure that recorded assets
exist and are properly recorded.
6. Management controls are in place to ensure that significant transactions are
properly performed and recorded.
X1 VMB=@ OMM VNVESI EM PoLICY12018 DE MBER
Appendix "B"
Revised: January 1;-2048November 26, 2018
Orange County Sanitation District
Treasury Management Procedures
1.0 Purpose
1.1 The purpose of this policy is to establish uniform guidelines and procedures
for use in the administration of the District's Treasury functions consistent
with the California Government Code and the District's adopted Investment
Policy Statement.
2.0 Authority to Investment and/or Reinvestment of District Funds:
2.1 Is delegated annually to the Director of Finance/Treasurerin accordance
with California Government Code Section 53607.
3.0 Formal Investment Policy Statement:
3.1 Is prepared by the Treasurer.
3.2 Is reviewed by the District's Administration Committee (ADM), in its role as
the finance oversight committee.
3.3 Is submitted to and adopted by the District's Board of Directors annually at
a public meeting in accordance with California Government Code Section
53646.
4.0 Delegation of some or all of the investment portfolio management to one or more
registered investment advisors (external money managers):
4.1 Is authorized by the District's Investment Policy;
4.2 Applies to the District's entire investment portfolio except for:
4.2.1 A maximum of $65 million that is maintained within the State Local
Agency Investment Fund (LAIF) for managing cash Flows (i.e.,
deposits of large revenues, such as property tax and user fee
proceeds, and the bi-weekly disbursements of payroll and accounts
payable);
4.2.2 A peg amount of approximately $50,000 is maintained within the
District's checking account at Banc of CaliforniaLlaien-Ban! to serve
as compensating balances to offset banking charges (note:— the
District's Board of Directors has selected Banc of Californiaunien
@ank to serve as the District's commercial bank (the "Bank"); and
4.2.3 Based on a determination by the District's Treasurer on what is most
advantageous to the District, the checking account residual amounts
may be invested as follows:
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1,204&November 26. 2016
Page 2 of 7
4.2.3.1 Bank balances exceeding the peg balance (as a result of
outstanding accounts payable and payroll warrants) may
be invested overnight under a repurchase agreement with
the Bank; or
4.2.3.2 The District may elect to receive earnings credit against
bank charges on all bank balances including the peg
amount equal to the 91 Day T-Bill Average.
5.0 Investment transactions involving the LAIF are approved by the Treasurer prior to
their execution by the Controller. The approval function indicates that the
transactions are in accordance with the District's Investment Policy. The
Accounting Supervisor will serve as backup for the approval function upon the
absence of any either of these two employees.
5.1 Specific Procedures involving LAIF include (note: all deposits and
withdrawals of funds to/from LAIF may only be processed through the
District's checking account with the Bank):
5.1.1 A "State Treasurer's Local Agency Investment Fund Authorization
Form" (see Attachment"A")must be completed prior to the execution
of the transaction indicating:
5.1.1.1 The effective date of the transaction;
5.1.1.2 The dollar amount to be withdrawn from or deposited into
LAIF;
5.1.1.3 The date and signature approval by the Controller
authorizing the transaction; and
5.1.1.4 The date and signature approval of the Treasurer
approving the transaction.
5.1.2 The execution of the transaction will be done in accordance with the
"State Treasurer's Local Agency Investment Fund Wire Transfer
Instructions" (see Attachment "B"). Key internal control features
include:
5.1.2.1 The requirement of the District's Personnel Identification
Number (PIN) for either deposits or withdrawals, known
only by the Treasurer and Controller.
5 1.2 2 Secondary confirmation requirement by the Bank for the
withdrawals/deposits from/to the Bank or LAIF. The
confirmation can be made by the Controller or Treasurer
(the person that didn't make the original request), the
Accounting Supervisor, or the Principal Accountant.
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1,204&November 26. 2018
Page 3 of 7
5.1.2.2
5.1.3 Each transaction is confirmed the next day by the Bank's Previous
Day Reporting modem service by the Senior Accountant and
Controller.
6.0 Investment transactions involving the District's external investment program and
performed by the independent investment firms are as follows:
6.1 The District's Board of Directors has selected Chandler Asset Management
(Chandler) to manage two portfolios: the Districts' Liquid Operating Monies
Fund,and the Long-term Operating Monies Fund.
6.1.1 Chandler has authorization to purchase and sell investment
securities in accordance with the strict investment guidelines set
forth in the District's Investment Policy (Section 8.0).
6.1.2 Hard copy confirmation reporting to the District is required on all
transactions.
6.2 The District's Board of Directors has selected U.S. Bank (the "Custodian")
to serve as the District's master custodian and safekeeping bank. In their
capacity as Custodian, U.S. Bank shall perform the following duties to settle
purchases and sales and engage in other transactions in the administration
of the District's accounts:
6.2.1 Upon execution of any transaction by Chandler, all investment
securities are recorded in book entry by the Custodian through either
the Depository Trust Company or the Federal Reserve Bank;
6.2.2 Hold the property in safekeeping facilities of the Custodian or of other
custodian banks or clearing corporations in the U.S.;
6.2.3 Collect all income payable to and all distributions due to the District's
account and sign on the District's behalf all declarations, affidavits,
and certificates of ownership required to collect income and principal
payments;
6.2.4 Collect all proceeds from securities, certificates of deposit or other
investments which may mature or be called;
6.2.5 Submit or cause to be submitted to the District or the external money
manager, as designated by the District, on a best effort basis all
information received by the Custodian regarding the ownership rights
pertaining to property held in the account;
6.2.6 Attend to involuntary corporation actions;
6.2.7 Determine the fair market value of the District's account on a monthly
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1, 2048November 26. 2018
Page 4 of 7
basis as of such dates as the Districts and the Custodian may agree
upon, in accordance with methods consistently followed and
uniformly applied;
6.2.8 Render to District, with copies to the external money manager,
monthly statements for securities held hereunder; and
6.2.9 Provide the District with copies of the Custodian's financial
statements filed with the State of California, or any agency thereof,
within thirty (30) days after such filing.
6.3 The District's Board of Directors has selected Callan Associates as the
District's Independent Investment Advisor (the "Advisor"). In their capacity
as Advisor, Callan shall perform the following duties on behalf of the District:
6.3.1 Monitor and report on Chandler's compliance with the investment
requirements of the Districts' Investment Policy, using data from
transaction reports prepared by U.S. Bank, on a quarterly basis;
6.3.2 Review Chandler's investment strategy quarterly;
6.3.3 Monitor and report on the performance of Chandler against the
performance benchmark standards established in the District's
Investment Policy for both the Liquid Operating Monies Fund and the
Long-term Operating Monies Fund on a quarterly basis; and
6.3.4 Review both Liquid and Long-term Operating Funds by asset
allocation, asset flow, quarterly factors and cumulative results on a
quarterly basis.
6.4 Specific procedures in depositing to or withdrawing funds from the
investment portfolio managed by the District's external money manager
include: (note: all deposits and withdrawals of funds from the District's
investment portfolio managed by Chandler and U.S. Bank may only be
processed through the District's checking account at the Bank):
6.4.1 A "Wire Transfer Form" (see Attachment" C") must be completed by
the Controller prior to the execution of the transaction indicating:
6.4.1.1 The dollar amount to be withdrawn/deposited from/to the
Bank checking account to/from the Chandler Liquid
Operating or Chandler Long-term Operating Monies
Funds;
6.4.1.2 The effective date of the transaction;
6.4.1.3 The date and signature or electronic review by the
Controller; and
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1,204&November 26. 2016
Page 5 of 7
6.4.1.4 The date and signature or electronic approval of the
Treasurer approving the transaction.
6.4.2 The execution of the transaction requires a verbal confirmation call
from the Custodian to the Controller at the time of the transaction,
and a written confirmation the following day.
6.4.3 Each transaction is confirmed the next day by the Bank's Previous
Day Reporting modem service by the Senior Accountant and
Controller.
7.0 Recording of investment transactions:
7.1 For investment transactions conducted by District staff with the LAW, and
with the transfer/withdrawal of funds with the Custodian:
7.1.1 Is done by the Controller who maintains a file of all investment
transactions.
7.1.2 Is done within the accounting records by the Senior Accountant, who
receives a signed copy of all investment transactions from the
Controller.
7.2 For investment transactions conducted by the external money manager:
7.2.1 Is done by the Custodian who posts all investment transactions daily
within their record keeping system and provides the District with a
monthly report that provides both a summary and detail listing of all
investment transactions.
7.2.2 Is done on a monthly basis by the Senior Accountant within the
accounting records at a summary level using Monthly Transaction
Reports prepared by the Custodian.
8.0 Verification of external money manager transactions is performed by:
8.1 The Custodian within their record keeping system (i.e., matching broker
confirmations to custodian records), and is reported to the District and
Chandler on a monthly basis.
8.2 Chandler through their internal compliance office and reported monthly to
the District as required by the District's Investment Policy.
8.3 The Senior Accountant through reconciliation of Chandler's monthly
investment transaction report against the monthly transaction report
provided by the Custodian.
9.0 Safeguarding of Assets and Records:
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1,2048November 26. 2018
Page 6 of 7
9.1 Reconciliation of investment records to the accounting records is done by
the Senior Accountant-(—, or in their absence, the Principal Accountant)on a
monthly basis.
9.2 Reconciliation of investment records to bank statements is performed by
the Senior Accountant(or in their absence, the Principal Accountant)within
one week following the receipt of the bank statement.
9.3 Review of financial condition, safety, liquidity, and potential yields of
investment instruments and reputation and financial condition of investment
brokers is done by the District's external money manager, who is authorized
to utilize the services of independent securities brokerage firms as deemed
appropriate, and which meets the requirements of Government Code
Section 53601.5.
10.0 The periodic review of the investment portfolio, including investment types,
purchase price, market values, maturity dates, and investment yields as well as
conformance to the stated Investment Policy will be performed monthly by the
Controller, quarterly by the Advisor, and annually by the District's external
independent auditors.
11.0 The District's Administration Committee will serve as the Oversight Investment
Advisory Committee to assist the Board of Directors in monitoring treasury
management activities.
11.1 The District's Treasurer submits a Quarterly Investment Program
Performance Report which includes, but is not limited to, the following
information:
11.1.1 Quarterly interest earnings and rates of return;
11.1.2 The market value of the portfolios;
11.1.3 The annualized earnings of the portfolios;
11.1.4 Market recap;
11.1.5 Comparisons with pre-determined benchmarks;
11.1.6 Market forecast; and
11.1.7 Proposed investment strategy for the upcoming quarter.
Internal Control Strengths
1. The specific responsibility for the performance of duties is assigned and lines of
authority and reporting are clearly identified.
2. Responsibilities are commensurate with the capabilities of the personnel assigned.
Orange County Sanitation District Treasury Management Procedures
Revised:daneary1,204&November 26. 2016
Page 7 of 7
3. Incompatible functions have been properly segregated to prevent errors or fraud.
4. All transactions are authorized by an appropriate responsible individual.
5. Safeguards over assets and records are in place to ensure that recorded assets
exist and are property recorded.
6. Management controls are in place to ensure that significant transactions are
properly performed and recorded.
X1 VMB=@ OMMOMMVESI EM PoLICY12018 DECEMBER
LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Netio% ce /1r ls 12198
AGENDA REPORT ItemNumber Item Number
s 2s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Jennifer Cabral, Public Affairs Supervisor
SUBJECT: 2019 LEGISLATIVE AND REGULATORY PLAN
GENERAL MANAGER'S RECOMMENDATION
Approve the Orange County Sanitation District 2019 Legislative and Regulatory Plan.
BACKGROUND
Each year, the Board of Directors adopts a legislative and regulatory plan, which is a
summary of the Orange County Sanitation District's(Sanitation District)goals, key issues,
and policy positions. The legislative and regulatory policies in this document were
developed taking into consideration the Sanitation District's priorities, the wastewater
industry, and the Sanitation District's member agencies and policy needs.
These Board-approved policies serve as the Sanitation District's official positions of
support or opposition on issues of importance to the agency. The legislative and
regulatory plan is a dynamic document, adopted annually, and is modified to meet the
needs of the Sanitation District as federal, state, and local policymaking agendas change
throughout the year.
RELEVANT STANDARDS
• Maintain influential legislative advocacy and a public outreach program
• Build brand, trust, and support with policy makers and community leaders
• Maintain collaborative and cooperative relationships with regulators, stakeholders,
and neighboring communities
• Listen to and seriously consider community input on environmental concerns
• Use all practical and effective means for resource recovery
PROBLEM
Without a strong advocacy program, elected officials may not be aware that the Sanitation
District is more than a wastewater treatment plant — treating and sending water to the
ocean.
The Sanitation District is an environmentally engaged organization which recycles more
than 50 percent of its wastewater. Additionally, to help meet the goal of 100 percent
recycling, the Sanitation District uses the byproducts from the wastewater treatment
Page 1 of 2
process to produce biosolids to fertilize crops and energy used to help power the two
plants in Fountain Valley and Huntington Beach.
PROPOSED SOLUTION
Approve the 2019 Legislative and Regulatory Plan. Advise staff to work with Local, State
and Federal officials to advocate the Sanitation District's legislative interests and help to
pursue grants and create/monitor legislation that would benefit the Sanitation District, the
wastewater industry and the community as a whole. To assist in our relationship building
activities, we will continue to reach out to our elected officials providing facility tours, one-
on-one meetings and trips to D.C. and Sacramento.
RAMIFICATIONS OF NOT TAKING ACTION
If we do not work with the Local, State, and Federal elected officials, legislation could be
passed that negatively affects the Sanitation District and the wastewater industry as a
whole. Additionally, this could affect our chances of receiving grant funding.
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
2019 Legislative/Regulatory Plan
Page 2 d 2
ORANGE COUNTY SANITATION DISTRICT
2019 Legislative and
Regulatory Plan
J ZV ANI q1j
4
9 i
f t
NE EN
Orange County Sanitation District
2019 Legislative&Regulatory Plan
Legislative & Regulatory Affairs Team
OCSD Staff
Rebecca Long (714)593-7444 rlong@ocsd.com
Senior Public Affairs Specialist
Jennifer Cabral (714)593-7581 jcabral@ocsd.com
Public Affairs Supervisor
Jim Herberg (714)593-7110 jherberg@ocsd.com
General Manager
Federal Lobbying Team
Eric Sapirstein (202)466-3755 esap@ensresources.com
ENS Resources
David French (202)466-3755 dfrench@ensresources.com
ENS Resources
State Lobbying Team
Cori Williams (949)399-9050 cwilliams@TownsendPA.com
Townsend Public Affairs
Eric O'Donnell (949)399-9050 eodonnell@TownsendPA.com
Townsend Public Affairs
Christopher Townsend (949)399-9050 cownsend@TownsendPA.com
Townsend Public Affairs
Regulatory Advocacy Team
Tom Meregillano,Senior Regulatory Specialist (714)593-7457 tmeregillano@ocsd.com
James Colston,Director of Environmental (714)593-7450 jcolston@ocsd.com
Services
2
January 2019
Orange County Sanitation District
2019 Legislative&Regulatory Plan
Introduction
The Orange County Sanitation District(OCSD) recognizes the need for an active local,state and federal legislative
and regulatory advocacy program to ensure that the interests of the ratepayers and the Board of Directors
(Board)are protected and supported.Towards that end,the legislative and regulatory team actively engages,
pursues,and monitors activities in California and Washington, D.C. and takes appropriate action in support of or
opposition to legislative and regulatory initiatives.
Each year,the Board of Directors adopts a legislative and regulatory plan,which is a summary of OCSD's goals,key
issues, and policy positions. The legislative and regulatory policies in this document were developed taking into
consideration OCSD's priorities, the wastewater industry, and OCSD's member agencies and policy needs. These
Board-approved policies serve as OCSD's official positions of support or opposition on issues of importance to the
agency. The legislative and regulatory plan is a dynamic document, adopted annually and is modified to meet the
needs of OCSD as federal,state,and local policymaking agendas change throughout the year.
The legislative and regulatory team,in conjunction with the Board,may take appropriate action consistent with the
legislative and regulatory plan, including, but not limited to, drafting letters, lobbying legislators, regulators, and
staff,and crafting bills and proposing legislation and regulations.
Procedure for Taking Positions on Bills and Proposed Regulations
1. Staff will track bills and proposed regulations of greatest interest to OCSD,particularly those that fall within
the goals and objectives identified by the Board and included in this plan. Staff will monitor bills and
proposed regulations being watched by similar agencies in Orange County (Irvine Ranch Water District,
South Orange County Water Authority, Orange County Water District, Municipal Water District of Orange
County, etc.) as well as state,federal and national associations such as California Association of Sanitation
Agencies(CASA), Southern California Alliance of Publicly Owned Treatment Works(SCAP),California Special
Districts Association (CSDA), Association of California Water Agencies (ACWA), Association of California
Cities Orange County (ACC-OC), League of California Cities (LOCC), and National Association of California
Water Agencies(NACWA),
2. For those bills and proposed regulations that are being tracked and where there is clear policy direction
stated in the Board-adopted legislative and regulatory plan or adopted goals, staff can send letters to
legislators and regulators and give direction to the lobbyists to advocate that position.
3. Where an issue is not urgent,all legislative letters will be hand-signed by the Board Chair or Vice Chair. If a
matter is urgent, staff may use the electronic signature, so long as a clear policy direction exists and the
General Manager or Designee approves the letter.
4. When a bill does not fall within the scope of the legislative and regulatory plan or is a controversial issue,
staff will seek direction from the Legislative and Public Affairs Committee.
5. If a bill does not fall within the scope of the legislative plan, but the Association of California Cities Orange
County (ACCOC), California Association of Sanitation Agencies (CASA), the California Special Districts
Association(CSDA)or the National Association of Clean Water Agencies(NACWA) has an adopted position,
staff may follow this position but must inform the Legislative and Public Affairs Committee of such action
at the next regularly scheduled meeting.
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January 2019
Orange County Sanitation District
2019 Legislative&Regulatory Plan
Guiding Priorities
• Seek funds for OCSD projects through grants, appropriations,or other means;
• Maintain local control over governance of special districts and other local entities;
• Oppose redundant regulatory requirements;
• Support legislative regulatory streamlining that promotes public health and the environment.
Federal Priorities
• Advocate for robust federal water infrastructure funding including State Revolving Fund and the Water
Infrastructure Improvements for the Nation (WIIN)Act including water infrastructure provisions.
• Identify and work to secure general and direct federal grants assistance,Water Infrastructure Finance and
Innovation (WIFIA) Act assistance, green infrastructure, renewable energy, and water recycling project
assistance.
• Work with Congress and United States Environmental Protection Agency(EPA)to advance implementation
of the WaterSense Program to increase the use of energy efficient technologies at the Sanitation District
while protecting against OCSD treatment cost increases related to program rulemaking.
• Monitor federal agency grants for funding of traditional wastewater treatment needs, alternative
renewable energy, bioenergy,water recycling,biosolids beneficial use, and beach protection.
• Work with Administration and Congress to advance commonsense permitting processes including tender
National Pollutant Discharge Elimination System (NPDES) permits and programmatic permits issued by
United States EPA and the U.S.Army Corps of Engineers to promote reduced costs to ratepayers.
• Work with OCSD's congressional delegation and administration officials to advance resiliency and
infrastructure policies that promote the funding of OCSD's water recycling and other conservation projects.
Seek to secure adequate funding of programs authorized in drought relief legislation to facilitate funding of
OCSD's project priorities.
• Support legislation, policies and regulations that offer to provide below market bonding rate assistance to
construct treatment facilities, including credit assistance and infrastructure banks. Focus should be on
energy recovery technologies,core infrastructure assistance related wastewater treatment,funding of final
stage of water recycling needs, and related demonstration of evolving technologies to address brine line
needs.
• During the fiscal year 2020 appropriations, identify opportunities to secure federal support of Sanitation
District project needs as part of any budget decision making process for the coming fiscal year.
• Promote restoration of federal deductibility of state and local tax payments and oppose elimination or
restriction on the use or availability of tax-exempt financing for public infrastructure.
• Support at least $3 billion in annual federal appropriations for the Clean Water Act State Revolving Fund
(CWSRF). Work with Congress and the United States Environmental Protection Agency to streamline the
Clean Water Act permitting processes. Provide assurances that CWSRF appropriations are not transferred
to State Drinking Water State Revolving Fund(SRF)needs.
• Support legislation to revise the SRF allocation formula to allow for appropriate and fair share of funding to
California consistent with United States Environmental Protection Agency (EPA) study (20% increase in
share).
• Support removal of private activity Bond State Volume Cap on water and wastewater facilities to allow for
innovative financing options such as public private partnerships.
• Work with the EPA on emerging regulatory issues of concern including integrated plans and monitoring
effluent limitations and guidelines including but not limited to the dental amalgam program.
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January 2019
Orange County Sanitation District
2019 Legislative&Regulatory Plan
• OCSD will continue to advocate for federal policies that minimize regulatory burdens imposed upon
communities and public agencies that seek to adopt programs for the giveback of pharmaceuticals that will
result in the reduction of disposal of pharmaceuticals through wastewater treatment facilities. Additionally,
OCSD will advocate for federal funding of programs currently authorized that support the development of
pharmaceutical management programs including education.
• Support development of infrastructure policies and legislation that will close funding gaps and encourage
direct grants assistance in support of projects and programs addressing resiliency needs that protect OCSD
investments from natural disasters.
• Work with U.S. Department of Energy and U.S. Environmental Protection Agency (EPA) to identify and
support efforts to secure funding assistance for OCSD energy water nexus project demonstrations.
• Oppose EPA's reform to change the cellulosic biofuel value of the co-digestion of organics,which will lower
Renewable Identification Number(RIN)credit.
State Priorities
• Secure funding through grants and legislation for infrastructure, collection improvements and alternative
renewable energy at the Fountain Valley, Plant No. 1 and Huntington Beach,Plant No.2.
• Promote a regional distribution/statewide equity approach to the disbursement of State Revolving Fund
monies.
• Oppose legislation or any regulations that would mandate volumetric pricing ofwastewater.
• Continue to monitor the state budget process and actively protect the allocation of local property taxes to
special districts.
• Work with legislators who introduced legislation such as SB 163 (Hertzberg,2015)in order to ensure that no
unrealistic regulations are placed on wastewater treatment facilities, including OCSD.
• Oppose state mandates, regulations,or legislation such as AB 1217(Daly, 2015)that set,alter,or otherwise
modify the governance structure of special districts, joint powers authorities, or other local government
entities.
• Support efforts to competitively seek funding for projects that meet the State's goals of expanded water
supply and energy reduction.
• Where appropriate, pursue State funding for critical aging infrastructure, through funding sources made
available through any agency including but not limited to the State Water Resources Control Board and the
Department of Water Resources.
• Support and participate in Integrated Regional Water Management planning efforts in the Santa Ana River
watershed.
• Oppose restrictive and redundant regulatory requirements for biosolids.
• Support the creation of a Statewide Organics Management Plan that includes the beneficial use of biosolids.
• Support funding through grants and legislation for a Food Waste/Organic Co-Digestion facility at OCSD.
• Monitor pension reform legislation for clean-up bills and relevant proposed regulations.
• Support the State's efforts to increase the effectiveness and efficiencies of Local Agency Formation
Commissions.
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January 2019
Orange County Sanitation District
2019 Legislative&Regulatory Plan
• Support efforts to reform the California Environmental Quality Act(CEQA)to streamline current procedures
and regulations for projects to refurbish or replace existing infrastructure facilities.
• Actively monitor the Little Hoover Commission hearings and reports related to climate change adaptation,
special districts and other topics as it relates to OCSD.
• Support the inclusion of recycled water credits during the development of long-term water conservation
legislation and regulations.
• Support legislation or regulations that restrict the use of microplastics in any product that is disposed of
through the sewer system.
• Support legislation or regulations that discourage the flushing of wipes through the sewer system.
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Appendix
A. Federal Tactics
B. State Tactics
C. Legislative and Regulatory Policies
Appendices
Federal Tactics
Initiative Action
1. Identify and advise on federal • Schedule meetings with federal agency stakeholders and senior
funding opportunities for OCSD officials in Washington D.C.and district offices to build support for
infrastructure projects OCSD priority projects;
• Work with congressional delegation to update priority needs; and
• Develop white paperstojustify requested assistance through direct
grants.
2. Seek funding assistance to • Meet with federal agency officials to discuss funding opportunities
advance recovery of energy and and options related to the energy water nexus;and
other resources from biosol ids • Work with U.S. Environmental Protection Agency and other
agencies to advance energy and water efficient technologies
related to WaterSense grant program.
3.Seek Infrastructure assistance • Meet with congressional delegation;
• Develop priorities and disseminate to OCSD congressional
A. Robustlying and (SRF)of and
delegation;
Revolving Fund (SRF)and
revise SRF Allocation • Advocate before congressional infrastructure committees and
Formula applicable Executive Branch officials to secure adoption of
B. Innovative Financing alternative water infrastructure financing including credit, loans,
C. Project Streamlining public-private-partnerships and grants in addition to direct
grants assistance;
• Work to secure legislation and policies that expedite the National
Environmental Polity Act and related reviews and approvals; and
• Work with Congress and U.S. Bureau of Reclamation on proposals
to provide enhanced alternative water infrastructure financing
tools.
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4. Support tax reform that • Work with NACWA and CASA in support of unrestricted use of
protects public agencies tax-exempt financing and feasible innovative financing
approaches such as infrastructure banks to supplement
traditional funding approaches;
• Work with state and local government stakeholders to restore
state and local tax deductibility and advocate before
congressional delegation; and
• Submit testimony and transmit communications on tax-exempt
financing and where possible present testimony.
5.Support resiliency legislation • Work with delegation and regulators to ensure incorporation of
and policies that support new programs for water recycling assistance;
protection of OCSD • Work with NACWA,CASA and ACWA to support resiliency/water
investments and promote
w recycling legislation; and
water recycling assistance
• Work with congressional infrastructure committees to secure
assistance for resiliency projects.
6. Work with federal agencies on • Work with U.S. Department of Energy on alternative energy
permitting issues permitting issues;
• Work with U.S. Fish and Wildlife Service on environmental site
assessment issues;
• Advocate to authorize U.S. EPA to provide National Pollutant
Discharge Elimination System (NPDES) permits terms for a
period of up to 10-years;
• Seek introduction of amendment to Clean Water Act to address
administrative efficiencies in the selection of water board
appointees.
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State Tactics
Initiative Action
1. Develop a proactive legislative • Identify legislation that has the potential to benefit or impact
and regulatory advocacy OCSD, as legislation is introduced and amended;
agenda • Identify proposed state and local regulations that are
introduced that have the potential to benefit or impact OCSD;
• Recommend positions on identified legislation and proposed
regulation to align with OCSD's legislative and regulatory plan;
• Create and continually update a legislative and regulatory matrix to
track identified pieces of priority legislation and proposed
regulations;and
• Schedule advocacy days in Sacramento with legislators and
committee staff and regulators;
• Continue an active letter writing campaign to support or oppose
priority legislation and proposed regulations;
• Schedule meetings with legislators, regulators,stakeholders,and
senior officials in Sacramento and district offices to build support for
OCSD priority projects;and
• Participate in CASA's legislative committees and Regulatory
Workgroup and SCAP's air,water,and biosolids committees.
2. Compile a comprehensive list • Meet with OCSDs Executive Management Team to discuss future
of Capital Improvement capital projects and priorities,and
projects • Match capital improvements with funding opportunities based on
project eligibility'
li ibilit .
3. Monitor and advise on possible • Proactively engage in the drafting of grant funding guidelines and
funding opportunities, including provide input to drafting agency or committee to ensure eligibility
but not limited to funding and competitiveness of OCSD projects and priorities;
through Statewide bonds • Proactively engage on proposed legislation and regulations that
would have an impact on the implementation of funding
programs;and
• Identify funding opportunities and provide recommendations for
eligible projects. Create an advocacy and outreach schedule on the
planning and execution of efforts to seek funds.
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4. Monitor and advise on funding • Monitor the rollout of the Cap and Trade Expenditure Plan for
available through Cap and waste diversion projects. Continue to advocate for additional
Trade funding in future Cap and Trade Expenditure Plans that OCSD is
eligible for;
• Identify eligible and competitive projects and programs; and
• Create a schedule on planning and execution of efforts to seek funds,
including outreach and advocacy strategy.
5. Monitor and advise on energy • Track energy related grant opportunities;
or other resource recovery • Identify potential projects for funding, including, but not limited to:
related funding opportunities
alternative renewable energy, biosolids to energy conversion,
organic waste (high strength food waste and fats,oils,and grease)
to energy conversion,and greenhouse gas reduction projects;
• Ensure wastewater interests are protected as significant decisions
are made related to renewable energy production financing,
mandates,climate change goals,programs and continued efforts to
extend the state's emissions reduction target;
• Schedule meetings with local delegation as well as key members to
discuss project benefits and funding opportunity;
• Support initiatives that help OCSD strive for energy independence
by minimizing energy utilization and maximizing useful energy
recovery from the sewage it receives; and
• Support renewable energy initiatives that are reasonable and fair.
6.Schedule and attend advocacy • Educate current administration, key staff and agencies on priority
and outreach meetings to projects and advocate for funding allocations that align with OCSD
provide OCSD project updates priorities;
• Schedule stakeholder meetings to build support for projects;
• Hold advocacy meetings in coordination with funding opportunities
and project timelines;
• Work with relevant budget committees, budget sub-committees,
policy committees and their staff to advocate for funding allocations
that align with OCSD priorities;and
• Provide full briefings and updates to Orange County legislative
delegation and relevant members on OCSD priority projects.
7. Regulatory relief to allow for • Outreach with the California Environmental Protection Agency,
water recycling and expansion Department of Toxic Substances,State Water Resources Control
of GWRS Board, Regional Water Quality Control Board,the governor's office,
legislative leadership and other appropriate stakeholders.
8. Development and advocacy for • Support and advocate for legislation that will expand the approved
design-build legislation targeted uses of design-build for OCSD specific projects;and
at OCSD projects • Schedule briefings and updates with Orange County legislative
delegation to discuss potential design build legislation.
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9. Development and • Work in conjunction with CASA and SCAP to outreach,educate and
implementation of a statewide develop an advocacy strategy for regulatory framework that will
biosolids land application support statewide objectives to manage biosolids land application.
management policy
10. Development and • Work with relevant legislators and committees to draft legislation
implementation of a strategy to that will lessen the cost burden on OCSD of complying with
relieve OCSD of cumbersome outdated bid advertising requirements; and
and outdated bid advertising 0 Conduct outreach with various other Sanitation Districts across the
costs State to form a coalition to support any efforts.
11. Development and advocacy for • Meet with local labor groups to initially present the issue;
legislation to raise the • Brainstorm proposed solutions that will give OCSD and other
contracting and bid threshold Sanitation Districts more flexibility to complete small scale public
for Sanitation Districts
works projects in house;
• Work in conjunction with CASA to outreach,educate,and develop
an advocacy strategy that will target all Sanitation Districts affected
by the current threshold limitations; and
• Develop and advocate for legislation that will raise the threshold for
work that can be performed in house as well as work that is
required to be bid.
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Legislative and Regulatory Policies
1. Air Quality:OCSD is committed to complying with federal,state, and local air quality laws, rules,
regulations,and policies.
a. Support air quality legislations, regulations,rules, and policies that emphasize the use of
advanced technologies and promote greater flexibility and financial incentives to reduce air
emission.
b. Support measures that maintain and enhance local decision-making authority,where appropriate,
in the development and implementation of air quality attainment strategies.
c. Support legislation and regulations to ensure greater consistency between the California and
Federal Clean Air Acts.
d. Support strategies that clearly demonstrate and provide for the most cost-effective means for
meeting air quality goals.
e. Continue to commit to adhere to OCSD's odor policy to assure that OCSD is a good neighborto
the surrounding communities.
f. Monitor legislation and regulations that would mandate OCSD to act as an air quality regulator
and enforcer.
g. Support legislation that would facilitate emission reduction credits forwastewater treatment plants.
h. Oppose additional redundant requirements and double reporting requirements with respectto air
quality orgreenhouse gas emissions, including but not limited to reporting requirements associated
with AB 617 (Garcia).
2. Biosolids and Biogas:OCSD strives to beneficially use biosolids through multiple management options
performed at reasonable costs that are protective of public health and the environment and offer cost-
effective alternatives to land application.
a. Support legislation, regulations and policies that support the beneficial use of biosolids on
agricultural lands,landscape, horticulture,California Healthy Soils Initiatives, mine reclamation,
fire ravaged lands,superfund sites, brownfields, overgrazed lands, carbon sequestration and
wetland restoration.
b. Support the promotion and funding of local pilot programs,studies, and research for the
beneficial use of biosolids.
c. Oppose legislation, regulations, and policies that imposes bans or restrictions on use of biosolids
for land application in any region,county,or state.
d. Support alternative energy legislation, regulation and policies that encourage use of biosolids as a
renewable energy resource.
e. Support streamlined legislation, regulations and policies that encourage the procurement of biogas,
biosolids,and compost.
f. Support CalRecycle, California Air Resources Board (CARB), California Public Utilities Commission,
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2019 Legislative&Regulatory Plan
(CPUC),California Energy Commission (CEC),California Department of Food and Agriculture(CDFA),
and State Water Resources Control Board (SWRCB)accepting quality standards that allow wastewater
treatment plants to inject biogas production into existing pipelines for use.
g. Limit redundant reporting requirements on organics, recyclable material, and solid waste as mandated
by AB 901.
3. Source Control:OCSD supports legislative that reduces pollutants and harmful materials that could enter
the sewer system.
a. Support statewide or targeted public education programs and initiatives that teach appropriate
"What To Flush" practices.
b. Support legislation and funding opportunities that aim to decrease the amount of microplastics
deposited through the sewer system.
c. Support legislation that regulates the disposal of flushable wipes.
d. Support legislation and funding mechanisms that reduce the amount of trash,waste,chemicals,
and harmful organic material that enter the sewer system.
4. Grant Funding:OCSD is committed to advancing the state of knowledge in the treatment and
management of wastewater through the application of innovative and alternative technologies.To this
end,OCSD supports grants assistance to offset its research,special projects and capital improvement
projects.
a. Support legislation, bonds,programs and projects that provide funding for:infrastructure
construction and rehabilitation,special studies and research or projects relating to security,
environmental education,water quality,wastewater processing, urban runoff,wastewater
recycling, biosolids and organics management,water quality improvement, resource recovery,or
alternative energy.
b. Support projects that provide for public benefit over projects that are primarily intended for
private benefit or gain.
c. Oppose proposals placing further requirements on grant recipients that return low value for high
administrative costs.
d. Support regional collaboration and funding for public agencies for food waste cc digestion and
recycling projects.
5. Innovative Funding:OCSD is committed to supporting programs that provide the highest quality services
to its ratepayers.
a. Support programs to leverage federal assistance such as credit assistance and highly subsidized
loan assistance.
b. Support Public-Private-Partnerships, Public to Public and other financing approaches that can
reduce costs only if such projects do not impose costs on OCSD ratepayers.
c. Support the fully funding of the Clean Water Act-State Revolving Fund Program at$3 billion
annually.
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d. Seek federal assistance to support water conservation projects such as water recycling,green
infrastructure through the Water Infrastructure Finance and Innovation Act(WIFIA)and direct
grants to reduce project costs.
6. Labor Relations:OCSD is committed to employer-employee relations including, but not limited to:
meeting and conferring in good faith with recognized employee organizations regarding the wages, hours
of work and other terms and conditions of employment.As Congress considers reforming the federal tax
code,many of the provisions subject to reform may impact labor relations.
a. Support measures to reform current workers compensation formulas that rely on a proportionate
exposure formula.
b. Support health insurance reform that does not create additional financial burdens on special
districts.
c. Support measures to ease applicability of the Fair Labor Standards Act(FLSA)on publicagencies.
d. Oppose any measure imposing compulsory and binding arbitration with respect to public
employees.
e. Oppose any measure that imposes upon local government mandated employee benefits that are
more properly decided at the local bargaining table.
f. Oppose efforts reducing local control over public employee disputes and imposing regulations on
an outside agency.
g. Oppose any measure granting public employees the right to strike.
h. Oppose a new mandatory Social Security tax for public employers and public employees.
7. Security:OCSD is committed to the safety of all personnel,facilities, and the entire sewer system.
a. Support legislation that would create efficiencies around the retention policy of surveillance video for
innocuous recordings.
b. Support funding for the hardening of essential regional facilities such as water recycling and sewer
collection and recycling sites.
c. Support legislation and funding for regional emergency management collaboration to protect critical
infrastructure.
8. Planning:OCSD ensures the long-range planning of capital improvement programs in order to deliver the
highest quality facilities.
a. Support reform of existing state, regional and local planning processes only if directly linkedto
reforms in the current revenue and tax structure of state and local governments.
b. Support measures that provide new revenues for growth management and the public facilities
necessary to support expected growth.
c. Support proposals encouraging regional,sub-regional or countywide cooperation in planning
urban development strategies,especially those that provide funding for effective implementation
of agreed upon goals.
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2019 Legislative&Regulatory Plan
d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected
by the proposed consolidation.
e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in
the Southern California Association of Governments' (SCAG)sub-regional process.
9. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with
county and state health officers to assure local health protection.
a. Support hazard mitigation,emergency response, planning, and recovery through direct
legislation, policy directives,and funding toward floodplain security within the Santa Ana River
watershed.
b. Support(generally) measures that provide for improved public health through regulation.
c. Support the protection of public health and environment through the construction and
implementation of advanced wastewater treatment technology.
d. Support sharing critical information and data from state and county agencies in the interest of
protecting the public health and saving taxpayer dollars.
e. Monitor legislation that provides additional occupational safety and health standard requirements for
employees,contractors,or subcontractors.
10. Public Works:OCSD is committed to the achievement of effective and efficient projects that provide
wastewater treatment services that benefit its ratepayers.
a. Support measures that provide funding and support to publicly owned treatment works and
sewage collection systems.
b. Support legislation and regulation that allow public agencies to procure goods and services in
manners similar to private industry,thereby reducing overall costs of delivery.
c. Support legislation and regulation that improve the Utility Underground Service Alert Program in
order to improve coordination, identification, minimize damage, minimize environmental risks,
and minimize cost exposure to publicly owned facilities when contractors are performing sub-
surface work.
d. Support a comprehensive response to the state's electricity and natural gas shortages that
provide a stable energy supply, respects the ability of municipalities to provide power, recognizes
that infrastructure (i.e.emergency and standby generators)exists that could be employed
temporarily during periods with minimal air quality impact and protects ratepayers(including
cities and special districts)against dramatic rate increases and statewide poweroutages.
e. Support legislation and regulation that allow OCSD to utilize the Best Value Design/Build option
for the construction of public works projects.
f. Oppose Buy American mandates legislation that would increase project costs or prevent the use
of the most innovative technologies.
g. Monitor legislation that would require the inspection and possible repair of sewer laterals at the
time of sale in residential,commercial,and industrial areas
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h. Support legislation that allows OCSD to utilize Job Order Contracting to more efficiently contract
for routine projects
L Monitor legislation connected with government claims against special districts regarding risk and
wrap-up insurance
11. Tax Reform/Revenue and Taxation:Track pending legislation to ensure OCSD remains in compliance with
the government code as it pertains to wastewater system user fees and property tax revenues and the
investment of public funds.
a. Support measures leading to a greater financial independence from the state that would result in
greater stability and predictability in local government budgeting.
b. Oppose measures that impose mandated costs for which there is no guarantee of local
reimbursement or offsetting benefits.
c. Oppose legislation that shifts tax revenues away from local governments without theadequate
provision of a constitutionally guaranteed backfill to offset the lost revenues of those local
governments.
d. Oppose measures that shift existing local revenue sources back to the state, including the special
district share of propertytax,sales tax,vehicle license fees,and rate payerfees.
e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund
programs for which the state is responsible, particularly the courts, health,and welfare programs.
f. Oppose elimination or restriction of state and local tax deduction from federal tax liability of local
taxpayers.
g. Oppose elimination or restriction on the availability of municipal tax-exempt financing for public
infrastructure projects.
12. Special Districts:OCSD supports the maintenance of special districts to provide specific services, in
response to citizen's demands, in a cost-effective manner.
a. Support outreach to local, regional,and state elected officials to foster a greater understanding
regarding the critical relationship between adequate reserves and the successful short-and-long-
term operation of water and wastewater agencies.
b. Support the work of the Association of California Water Agencies(ACWA), California Association
of Sanitation Agencies(CASA), and California Special Districts Association (CSDA)in any future
discussions or negotiations pertaining to the legislative and budget issues relative to preserving
control of members'reserves.
c. Oppose further state regulations that adversely impact special district financing,operations,and
administration.
d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result
in an infringement on clearly local concerns.
e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by
water and wastewater districts.
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2019 Legislative&Regulatory Plan
f. Oppose the imposition of unfunded, mandated programs on local governments.
g. Oppose efforts that diminish OCSD's ability to govern efficiently and effectively,including
expanding the size of the Board of Directors.
h. Support alternate methods of public meetings notices that maintain transparency but are more cost
efficient and technologically advanced
13. Water Quality and Supply:OCSD is committed to participating collaboratively in the protection of
regional water resources for the benefit of the people we serve.
a. Support(generally)measures to increase water supply and improve water quality in the region,
including drought relief legislations and regulations.
b. Support measures that would increase funding for water reuse technologies, including support for
the Groundwater Replenishment System project by the Orange County Water District and OCSD
to create new water supplies through wastewater recycling.
c. Support measures that promote and provide for the use of reclaimed water.
d. Support policy development,funding, and research for addressing urban runoff,stormwater,and
beach closures, including funding for studies that identify the sources of bacterial,viral and other
microbial contaminants and human pathogens.
e. Support measures to evaluate water quality standards,as needed,to ensure the objectives are
appropriately protecting the designated use.
f. Support legislation and regulation that would direct U.S. EPA levied fines to remain in the region.
g. Support measures addressing non-point source pollution in order to protect our ocean water
quality and provide funding to mitigate its effects, including integrated permitting approaches
that can reduce costs and achieve water quality improvements while allowing permits to be
tailored to the needs of Orange County and its watershed.
h. Support national infrastructure policies that contain aspirational goal that promotes
improved water use efficiency in construction of water efficient buildings and
communities.
i. Support legislation and regulation that promote improved water use efficiency through state
assistance in evaluating and implementing new programs and technologies and increasing public
awareness of water use efficiency.
j. Support legislation and regulation that provide for the development of the watershed approach,
including watershed management plans and watershed-based permitting.
k. Support legislation and regulation that necessitate the responsible use of water in residential,
commercial,and industrial areas.
I. Support environmental guidelines on government agencies that would safeguard the region while
providing increased protections.
m. Oppose the imposition of statewide fees for environmental cleanup that is caused through private
sector actions or are regional in nature (e.g., when the nexus between those responsible for
environmental abuse and those required to pay for cleanup or mitigation is absent).
n. Support approaches to reduce compliance costs associated with stormwater controls including
the use of integrated plans.
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STEERING COMMITTEE Meeting Date TOBE.Or .Dir.
12/19/18 12/19/18
AGENDA REPORT ItemNumber Item Number
z 24
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Celia Chandler, Director of Human Resources
SUBJECT: LABOR RELATIONS — CONTRACT NEGOTIATIONS
GENERAL MANAGER'S RECOMMENDATION
Authorize the Board Chair to execute an agreement with Liebert Cassidy Whitmore, the
external Chief Negotiator selected by the Ad Hoc Committee,for an amount not to exceed
$120,000.
BACKGROUND
On November 28, 2018, the Steering Committee approved the formation of an Ad Hoc
Committee for the purpose of interviewing and selecting an external Chief Negotiator for
the upcoming contract negotiations with all six (6) bargaining units at the Orange County
Sanitation District (Sanitation District).
The Ad Hoc Committee consists of the Board Chair, the Legislative and Public Affairs
Committee Chair, and a Steering Committee Member-at-Large. The Ad-Hoc Committee
met to interview and select from the following list of firms:
• Atkinson, Andelson, Loya, Ruud & Romo
• Liebert Cassidy Whitmore
• Rutan & Tucker
On December 10, 2018, the Ad Hoc Committee conducted interviews with the firms. The
Committee selected Liebert Cassidy Whitmore and will report their recommendation to
the Steering Committee and the Board of Directors at their regular meetings on
December 19, 2018.
RELEVANT STANDARDS
• Cultivate a highly qualified, well-trained, and diverse workforce
• Offer competitive compensation and benefits
• Negotiate fair and equitable labor agreements
• Maintain positive employer-employee relations
PROBLEM
Contract negotiations are expected to begin with all six (6) bargaining units prior to the
expiration of their respective Memoranda of Understanding (MOU's) in June 2019. In
Page 1 d 3
preparation for the upcoming negotiations, the Sanitation District labor negotiations team
and the Sanitation District's Chief Negotiator will need to work closely with Board
leadership to set parameters and develop negotiation strategies.
PROPOSED SOLUTION
Authorize the Board Chair to execute an agreement with the external Chief Negotiator
selected by the Ad Hoc Committee Chief Negotiator selection process in accordance with
Ordinance No. OCSD-52, Section 3.03.13 Contractors Reporting to the Board.
Ordinance No. OCSD-52 is an ordinance of the Board of Directors of the Sanitation
District establishing requirements and procedures for the purchase of goods, services,
and public works projects. Ordinance No. OCSD-52, Section 3.03.13 Contractors
Reporting to the Board indicates that the provisions listed under Article 3 (Professional
Services) shall not apply to the retention of Professional Service firms or individuals that
are selected by the Board and report directly to the Board. For such contracts, the Board
shall determine the method of selection, consistent with the requirements of applicable
law.
TIMING CONCERNS
On June 30, 2019, the MOU's with all six (6) of the Sanitation District's bargaining units
will expire. It is anticipated that the selection of the Chief Negotiator will be presented to
the Board of Directors for consideration and authorization during the December 2018
Board Meeting, leaving approximately six(6)months for preparation and negotiation once
the Chief Negotiator is hired.
RAMIFICATIONS OF NOT TAKING ACTION
Delays in the selection of a Chief Negotiator would postpone initiation of labor contract
negotiations and may negatively impact the Sanitation District's ability to finalize
successor agreements before the MOU's expire on June 30, 2019.
PRIOR COMMITTEE/BOARD ACTIONS
November 2018 -The Steering Committee formed an Ad Hoc Committee for the purpose
of interviewing and selecting an external Chief Negotiator for the upcoming contract
negotiations with all six (6) bargaining units at the Sanitation District.
ADDITIONAL INFORMATION
On June 30, 2019, the MOU's with all six (6) of the Sanitation District bargaining units will
expire. Three (3) of the bargaining units are represented by the Orange County
Employees Association (OCEA). OCEA represents 102 Sanitation District employees,
who perform para-professional, technical, and administrative jobs. One (1) bargaining
unit is represented by the International Union of Operating Engineers - Local 501 (Local
501). Local 501 represents 200 Sanitation District employees, who perform operations,
Page 2 d 3
maintenance, and other trade-related jobs. The remaining two (2) bargaining units are
represented by the Supervisor and Professional Management Group (SPMT) affiliated
with the American Federation of State, County and Municipal Employees (AFSCME).
SPMT/AFSCME represent 65 Sanitation District employees that are responsible for
supervisory duties across all divisions. In addition, SPMT/AFSCME represent 210
Sanitation District employees holding professional, exempt-level positions who perform
analytical work.
CEQA
N/A
FINANCIAL CONSIDERATIONS
It is estimated that the cost for labor relations consulting for all negotiations will not exceed
$120,000.
This request complies with authority levels of the Sanitation DistricPs Purchasing
Ordinance. This item has been budgeted for FY 2018-19 and FY 2019-20. (Line item:
FY 2018-19 Budget Section 5, Page 7; Object Account 53256). Project contingency funds
will not be used for this agreement.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
N/A
Page 3 of 3
ORANGE COUNTY SANITATION DISTRICT
COMMON ACRONYMS
ACWA Association of California LAFCO Local Agency Formation RWQCB Regional Water Quality
Water Agencies Commission Control Board
APWA American Public Works LOS Level Of Service SARFPA Santa Ana River Flood
Association Protection Agency
AQMD Air Quality Management MGD Million Gallons Per Day SARI Santa Ana River
District Interceptor
ASCE American Society of Civil MOU Memorandum of SARWQCB Santa Ana Regional Water
Engineers Understanding Quality Control Board
BOD Biochemical Oxygen Demand NACWA National Association of Clean SAWPA Santa Ana Watershed
Water Agencies Project Authority
California Air Resources National Environmental Supervisory Control And
CARB Board NEPA Policy Act SCADA Data Acquisition
California Association of Non-Governmental Southern California
CASA Sanitation Agencies NGOs Organizations SCAP Alliance of Publicly Owned
Treatment Works
CCTV Closed Circuit Television NPDES National Pollutant Discharge SCAQMD South Coast Air Quality
Elimination System Management District
CEQA California Environmental NWRI National Water Research SOCWA South Orange County
Quality Act Institute Wastewater Authority
CIP Capital Improvement O&M Operations&Maintenance SRF Clean Water State
Program Revolving Fund
California Regional Water Orange County Council of Sewer System
CRWQCe Quality Control Board OCCOG Governments SSMP Management Plan
CWA Clean Water Act OCHCA Orange County Health Care SSO Sanitary Sewer Overflow
Agency
California Water Environment Orange County Sanitation State Water Resources
CWEA Association OCSD District SWRCe Control Board
EIR Environmental Impact Report OCWD Orange County Water District TDS Total Dissolved Solids
EMT Executive Management Team COBS Ocean Outfall Booster Station TMDL Total Maximum Daily Load
EPA US Environmental Protection OSHA Occupational Safety and 7S5 Total Suspended Solids
Agency Health Administration
Professional Waste Discharge
FOG Fats,Oils,and Grease PCSA Consultant/Construction WDR Wastee Discharge
Services Agreement
gpd gallons per day PDSA Professional Design Services WEE Water Environment
Agreement Federation
GWRS Groundwater Replenishment POTW Publicly Owned Treatment WERE Water Environment&
System Works Reuse Foundation
ICS Incident Command System ppm pans per million WIFIA Water Infrastructure
Finance and Innovation Act
Integrated Emergency Professional Services Water Infrastructure
IERP Response Plan PSA Agreement WIIN Improvements for the
Nation Act
JPA Joint Powers Authority REP Request For Proposal WRDA Water Resources
Develo ment Act
ORANGE COUNTY SANITATION DISTRICT
GLOSSARY OF TERMS
ACTIVATED SLUDGE PROCESS—A secondary biological wastewater treatment process where bacteria reproduce at a high
rate with the introduction of excess air or oxygen and consume dissolved nutrients in the wastewater.
BENTHOS —The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or near the seabed, also
known as the benthic zone.
BIOCHEMICAL OXYGEN DEMAND (BOD)—The amount of oxygen used when organic matter undergoes decomposition by
microorganisms.Testing for BOD is done to assess the amount of organic matter in water.
BIOGAS—A gas that is produced by the action of anaerobic bacteria on organic waste matter in a digester tank that can be used
as a fuel.
BIOSOLIDS—Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process.
This high-quality product can be recycled as a soil amendment on farmland or further processed as an earth-like product for
commercial and home gardens to improve and maintain fertile soil and stimulate plant growth.
CAPITAL IMPROVEMENT PROGRAM (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes
treatment improvements,additional capacity, and projects for the support facilities.
COLIFORM BACTERIA—A group of bacteria found in the intestines of humans and other animals, but also occasionally found
elsewhere,used as indicators of sewage pollution. E.coli are the most common bacteria in wastewater.
COLLECTIONS SYSTEM — In wastewater, it is the system of typically underground pipes that receive and convey sanitary
wastewater or storm water.
CERTIFICATE OF PARTICIPATION (COP)—A type of financing where an investor purchases a share of the lease revenues of
a program rather than the bond being secured by those revenues.
CONTAMINANTS OF POTENTIAL CONCERN (CPC) — Pharmaceuticals, hormones, and other organic wastewater
contaminants.
DILUTION TO THRESHOLD (Dfr)—The dilution at which the majority of people detect the odor becomes the D/T for that air
sample.
GREENHOUSE GASES (GHG)— In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and
ozone gases that are considered the cause of global warming("greenhouse stil .
GROUNDWATER REPLENISHMENT SYSTEM(GWRS)—Ajoint water reclamation project that proactively responds to Southern
California's current and future water needs.This joint project between the Orange County Water District and the Orange County
Sanitation District provides 70 million gallons per day of drinking quality water to replenish the local groundwater supply.
LEVEL OF SERVICE(LOS)—Goals to support environmental and public expectations for performance.
N-NITROSODIMETHYLAMINE (NDMA) — A N-nitrosamine suspected cancer causing agent. It has been found in the
Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment.
NATIONAL BIOSOLIDS PARTNERSHIP (NBP)—An alliance of the National Association of Clean Water Agencies and Water
Environment Federation, with advisory support from the US Environmental Protection Agency. NBP is committed to developing
and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance
and promote public participation to enhance the credibility of local agency biosolids programs and improved communications that
lead to public acceptance.
PLUME—A visible or measurable concentration of discharge from a stationary source or fixed facility.
PUBLICLY OWNED TREATMENT WORKS(POTW)—A municipal wastewater treatment plant.
SANTA ANA RIVER INTERCEPTOR(SARI) LINE—A regional brine line designed to convey 30 million gallons per day of non-
reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal,after treatment.
SANITARY SEWER— Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined
sewers carry both wastewater and urban runoff.
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (SCAQMD)—Regional regulatory agency that develops plans and
regulations designed to achieve public health standards by reducing emissions from business and industry.
SECONDARY TREATMENT— Biological wastewater treatment, particularly the activated sludge process, where bacteria and
other microorganisms consume dissolved nutrients in wastewater.
SLUDGE—Untreated solid material created by the treatment of wastewater.
TOTAL SUSPENDED SOLIDS(TSS)—The amount of solids floating and in suspension in wastewater.
TRICKLING FILTER—A biological secondary treatment process in which bacteria and other microorganisms,growing as slime
on the surface of rocks or plastic media,consume nutrients in wastewater as it trickles over them.
URBAN RUNOFF—Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and
oceans.
WASTEWATER—Any water that enters the sanitary sewer.
WATERSHED—A land area from which water drains to a particular water body.The Orange County Sanitation District's service
area is in the Santa Ana River Watershed.