Loading...
HomeMy WebLinkAbout01-27-2016 Board Meeting Agenda Orange County Sanitation District Wednesday, January 27, 2016 Regular Meeting of the a 6:00 P.M. BOARD OF DIRECTORS Board Room 10844 Ellis Avenue Fountain Valley, CA 92708 (714) 593-7433 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Teresa Smith, City of Orange) ROLL CALL: 1. RECOMMENDATION: Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Agent;v Active Director Alternate Director City of Brea Glenn Parker Cecilia Hupp City of Fountain Valley Steve Nagel Cheryl Brothers City of Huntington Beach Jim Katapodis Erik Petersen City of Irvine Steven Choi Lynn Schott City of La Palma Peter Kim Michelle Steggell City of Newport Beach Keith Curry Scott Peotter City of Placentia Chad Wanke Constance Underhill City of Seal Beach Ellery Deaton Sandra Massa-Lavitt City of Stanton David Shawver Carol Warren City of Tustin John Nielsen Allan Bernstein City of Villa Park Greg Mills Diana Fascenelli Costa Mesa Sanitary Dist. James Ferryman Bob Ooten Irvine Ranch Water District John Withers Douglas Reinhart Yorba Linda Water District Robert Kiley Michael Beverage DECLARATION OF QUORUM: (Clerk of the Board) PUBLIC COMMENTS: If you wish to address the Board of Directors on anyitem, please complete a Speaker's Form (located at the table outside of the Board Room)and submit it to the Clerk of the Board or notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by the Chairman and are requested to limit comments to three minutes. 01W/2016 OCSD Board of Directors'Agenda Page 1 of 9 SPECIAL PRESENTATIONS: None. REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 2. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve the minutes of the Regular Board of Directors Meeting held on December 16, 2015. 3. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF DECEMBER 2015 (Lorenzo Tyner) RECOMMENDATION: Receive and file the report of the investment transactions for the month of December 2015. 4. DEFERRED PAYMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE (Lorenzo Tyner) RECOMMENDATION: Approve the deferred payment agreement negotiated by the General Manager for collection of all charges and fees owed for sanitary sewer service charges, plus interest of 5-25% annum, with Aseptic Technology, in a form approved by General Counsel. 5. MAXIM SECURITY SYSTEMS, INC. MAINTENANCE AND SERVICES (Lorenzo Tyner) RECOMMENDATION: A. Authorize an additional $250,000 to purchase order #105299 OB with Maxim Security Systems, Inc. for utilizing Eastern Municipal Water District's (EMWD) Cooperative agreement#85939, for a total amount not to exceed 01W/2016 OCSD Board of Directors'Agenda Page 2 of 9 $335,000, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases; and B. Authorize purchases of information technology security systems, services and software/hardware maintenance using the EMWD's cooperative agreement #85939, commencing October 1, 2016 through September 30, 2018, for a total amount not to exceed $335,000, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases, with four(4) one-year renewal options. 6. SALES TAX REIMBURSEMENTS FOR CHEMICAL PURCHASES (Lorenzo Tyner) RECOMMENDATION: Approve a Sole Source Agreement for Tax Consulting and Advocacy Services with Dakessian Law, Ltd. regarding pursuit of refunds for sales tax paid on chemical purchases. OPERATIONS COMMITTEE: 7. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve Minutes of the January 6, 2016, Operations Committee Meeting. 8. UNIFORMS AND JANITORIAL ARTICLES RENTAL SERVICE, SPECIFICATION NO. S-2015-675BD-R (Lorenzo Tyner) RECOMMENDATION: A. Award Purchase Order Contract to Prudential Overall Supply for Uniform and Janitorial Articles Rental Service, Specification No. S-2015-675BD-R, for one 3-year period (04/01/2016 — 03/31/2019) for an amount not to exceed $493,370.28 with one 3-year renewal option; and B. Approve a contingency of$49,337 (10%). 9. PLANT 1 POTABLE WATER SYSTEM IMPROVEMENTS, PROJECT NO. FE09-04 (Rob Thompson) RECOMMENDATION: Approve a construction contingency increase of $25,275 (15%) to the construction contract with ODC Engineering and Technology for the Plant 1 Potable Water System Improvements, Project FE09-04, for a total construction contingency of$50,550 (30%). 01W/2016 OCSD Board of Directors'Agenda Page 3 of 9 10. SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) RECOMMENDATION: A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the SCADA System and Network Upgrade, Project No. 132-107, for an amount not to exceed $2,818,197; and B. Approve a contingency of$281,820 (10%). 11. CHANGE ORDER TO BRENNTAG PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 (Ed Torres) RECOMMENDATION: A. Approve a Change Order for an additional amount of $184,800 for 25% Caustic Soda (Sodium Hydroxide), Purchase Order Specification No. C- 2013-560 with Brenntag Pacific for chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2015 through June 30, 2016, for a unit price of$560.52 per dry ton (delivery and applicable sales tax included) for a total estimated annual amount of$280,000 with one remaining year of renewal; and B. Approve a (10%) unit price contingency. 12. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 (Rob Thompson) RECOMMENDATION: A. Approve an increase in the project budget from $112,222,000 to $125,000,000; B. Approve a Professional Design Services Agreement with AECOM Technical Services, Inc., to provide engineering services for Rehabilitation of Western Regional Sewers, Project No. 3-64,for an amount not to exceed $17,639,250; and C. Approve a contingency of$1,763,925 (10%). 01/2 712 01 6 OCSD Board of Directors'Agenda Page 4 of 9 ADMINISTRATION COMMITTEE: 13. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve minutes of the December 9, 2015 of the Administration Committee Meeting. STEERING COMMITTEE: 14. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve minutes of the December 16, 2015 meeting of the Steering Committee. 15. GENERAL MANAGER'S FY 2015-2016 WORK PLAN MID-YEAR UPDATE (Jim Herberg) RECOMMENDATION: Receive and file the General Manager's Fiscal Year 2015-2016 Work Plan Mid-Year Update. 16. LABOR RELATIONS — CONTRACT NEGOTIATIONS (Celia Chandler) RECOMMENDATION: 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. 17. LOCAL SEWER FACILITIES TRANSFER AGREEMENT WITH IRVINE RANCH WATER DISTRICT (Jim Herberg) RECOMMENDATION: Approve Local Sewer Facilities Transfer Agreement with Irvine Ranch Water District regarding the transfer of local sewers in Service Area 7 in a form approved by General Counsel. LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 18. APPROVAL OF MINUTES (Clerk of the Board) RECOMMENDATION: Approve minutes of the December 14, 2015 meeting of the Legislative and Public Affairs Committee. 0112 712 01 6 OCSD Board of Directors'Agenda Page 5 of 9 GWRS STEERING COMMITTEE: 19. OCSD JOINT RESOLUTION WITH OCWD OF SUPPORT FOR THE METROPOLITAN WATER DISTRICT INDIRECT POTABLE REUSE PROJECT (Bob Ghirelli) RECOMMENDATION: Adopt Resolution No. OCSD 16-01 entitled, "A Resolution of the Board of Directors of Orange County Water District and the Orange County Sanitation District supporting the Metropolitan Water District of Southern California's efforts to develop a Groundwater Replenishment System type project with Los Angeles County Sanitation District No. in the City of Carson" 20. COSPONSOR PROPOSED BILL TO BOTTLE ADVANCED PURIFIED WATER FOR EDUCATIONAL PURPOSES (Bob Ghirelli) RECOMMENDATION: Ratify and approve the GWRS Steering Committee recommendation to co-sponsor with Orange County Water District (OCWD) proposed legislation to bottle GWRS water for educational purposes and emergencies. NON-CONSENT CALENDAR: 21. WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2016A (Lorenzo Tyner) RECOMMENDATION: Authorize the General Manager to issue new fixed rate Certificates of Participation (COP), to be referred to as Wastewater Refunding Revenue Obligations, in an amount sufficient to refund up to$162,780,000 of COP Series 2009A. 22. PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-48 (Rob Thompson) RECOMMENDATION: A. Introduce Ordinance No. OCSD-48, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Wastewater Discharge Regulations, Revising Articles 1 through 8, and repealing Ordinance No. OCSD-39" for first reading at the January 27, 2016 Board meeting'; and 0112 712 01 6 OCSD Board of Directors'Agenda Page 6 of 9 B. Motion to read Ordinance No. OCSD-48 by title only and waive reading of said entire Ordinance on January 27, 2016; and C. Set February 24, 2016, as the date for the second reading and adoption of Ordinance No. OCSD48; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AB 1234 REPORTS: INFORMATION ITEMS: None. CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations,pending orpotential litigation,or personnel matters,pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a)purchase and sale of real property, (b) matters of pending or potential litigation, (c) employment actions or negotiations with employee representatives,or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. (1) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION (Government Code Section 54956.9(d)(1)) Number of Cases: 3 Klean Waters, Inc. v. Orange County Sanitation District, United States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627-JVS-FFM. Alex Shaaban v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2014-00714555. Kelly Ross v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2014-00714553. (2) THREAT TO PUBLIC SERVICES OR FACILITIES (Government Code Section 54957) 01/2 712 01 6 OCSD Board of Directors'Agenda Page 7 of 9 Consultation with the Information Technology Systems & Operations Manager regarding cyber security. Reconvene in regular session. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS IF ANY: ADJOURNMENT: Adjourn the Board meeting until the Regular Board of Directors Meeting on February 24, 2016, at 6:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714) 593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Aaenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item,including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. Agenda Description: The agenda provides a brief general description of each item of business to be considered or discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take any action which is deemed appropriate. NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Kelly A. Lore Clerk of the Board (714)593-7433 klorefrpocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Herberg (714)593-7300 iherbemaocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirellifdocsd.com Director of Engineering Rob Thompson (714)593-7310 rthompsonaocsd.com Director of Facilities Support Services Nick Amonles (714)593-7210 namontesfdocsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvneraocsd.com Administrative Services Director of Human Resources Celia Chandler (714)593-7202 cchandleraocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com 01/27/2016 OCSD Board of Directors'Agenda Page 8 of 9 ITEM NO. 2 Orange County Sanitation District MINUTES BOARD MEETING December 16, 2015 ANITAT� 9 U N 2 � t o � �cl�N HE ENV�Q,� Administration Building 10844 Ellis Avenue Fountain Valley, California 92708-7018 12/16/2015 Minutes of Board Meeting Page 1 of 12 ROLL CALL A regular meeting of the Board of Directors of the Orange County Sanitation District was held on December 16, 2015, at 6:03 p.m., in the Administration Building. Director Curry delivered the invocation and led the Pledge of Allegiance. 1. Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Agency Active Director Alternate Director Midway City Sanitary District Joy Neugebauer AI Krippner Anaheim Lucille Kring James Vanderbilt Cypress Mariellen Yarc Stacy Berry La Habra Tom Beamish Tim Shaw Los Alamitos Richard Murphy Shelley Hasselbrink The Clerk of the Board declared a quorum present as follows: ACTIVE DIRECTORS ALTERNATE DIRECTORS X John Nielsen, Chair Allan Bernstein A Gregory Seboum, Vice Chair Doug Chaffee A Lisa Bartlett Michelle Steel X Tom Beamish Tim Shaw X Steven Choi Lynn Schott X Keith Curry Scott Peotter X Ellery Deaton Sandra Massa-Lavitt X Joy Neugebauer AIKdppner X James M. Ferryman Bob Ooten X Steven Jones Kris Beard Jim Katapodis X Erik Peterson X Robert Kiley Michael Beverage X Peter Kim Michele Steggell X Lucille Kring Jordan Brandman X Greg Mills Robert Collacott X Richard Murphy Shelley Hasselbrink X Steve Nagel Michael Vo X Glenn Parker Cecilia Hupp X David Shawver Carol Warren X Fred Smith Steve Berry Teresa Smith X Mark Murphy X Sal Tinajero David Benavides Chad Wanke X Constance Underhill X John Withers Douglas Reinhart X Mariellen Yarc Stacy Berry 12/16/2015 Minutes a Boanl Meeting Page 2 of 12 STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant General Manager; Lorenzo Tyner, Director of Finance & Administrative Services; Rob Thompson, Director of Engineering; Celia Chandler, Director of Human Resources; Nick Arhontes, Director of Facility Support Services; Ed Torres, Director of Operations & Maintenance; Kelly Lore, Clerk of the Board; Jennifer Cabral; Ann Crafton; Dean Fisher; Norbert Gaia; Al Garcia; Jeff Mohr; Gary Prater; Gina Tesch and Paula Zeller. OTHERS PRESENT: Brad Hogin (General Counsel); James Clark, Black & Veatch; James Finete, Savage Finete; Al Krippner (Alternate Director MCSD); Sandra Massa- Levitt (Alternate Director Seal Beach); Lisa Ohlund, EOCWD; and Bob Ooten (Alternate Director CMSD). PUBLIC COMMENTS: Chair Nielsen announced that written communication had been received by the Clerk of the Board from Mr. Carl Perkins and Mr. John Sears regarding Item 20 and a copy had been included in the Director folders. No other public comments were provided. SPECIAL PRESENTATIONS: Employee Service Awards Chair Nielsen introduced Director of Operations and Maintenance, Ed Torres who presented a 30 year service award to Jeff Key, Division 870 Maintenance Specialist. REPORTS: Chair Nielsen announced the appointment of Director Peter Kim to the Legislative and Public Affairs (LAPA) Committee and also provided a brief update from the LAPA Committee Meeting including: Legislative Plan for 2016, highlights from 2015 and the upcoming 2016117 Outreach Plan. General Manager Jim Herberg announced the OCSD Administrative offices would be closed for the holidays on December 24, 25 and, January 1; and stated there was a holiday gift mug provided for each Board member. He then referenced the Outreach Material also provided tonight, which is a follow up to the informational presentation on OCSD's Community Outreach program. Mr. Herberg stated that longtime employee, "Kit" Kittrell had passed away after working for the Sanitation District for almost 29 years as a Construction Inspector. Chair Nielsen will adjourn tonight's meeting in his memory. 12/16/2015 Minutes of Board Meeting Page 3 of 12 CONSENT CALENDAR: 2. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve the minutes of the Regular Board of Directors Meeting held on November 18, 2015. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: M. Murphy (Alternate) ABSENT: Bartlett and Sebourn 3. REHABILITATION OF DIGESTER MIXING PUMPS AT P2 DIGESTERS E, H, R, S, and T, PROJECT NO. FE14-03 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file bid tabulation and recommendation; B. Award a construction contract to Tharsos, Inc. for Rehabilitation of Digester Mixing Pumps at P2 Digesters E, H, R, S, and T, Project No. FE14-03, for a total amount not to exceed $594,000; and C. Approve a contingency of$118,800 (20%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver, F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 4. PAYMENT OF ANNUAL OCEAN DISCHARGE PERMIT FEE (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve payment in an amount not to exceed $571,286 to the State Water Resources Control Board for annual permit fees for the ocean discharge permit. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None 12/16/2015 Minutes of Board Meeting Page 4 of 12 ABSTENTIONS: None ABSENT: Bartlett and Sebourn OPERATIONS COMMITTEE: 5. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Minutes of the December 2, 2015, Operations Committee Meeting. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 6. GISLER-REDHILL SYSTEM IMPROVEMENTS, REACH B. PROJECT NO. 7-37 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Construction Services Agreement with Tetra Tech, Inc., for providing construction support services for Gisler-Redhill System Improvements, Reach B, Project No. 7-37, in an amount not to exceed $270,000; and B. Approve a contingency of$27,000 (10%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 7. 15'" STREET, ROCKY POINT PUMP STATION (RPPS) AND BITTER POINT PUMP STATION (BPPS) FALL PROTECTION IMPROVEMENTS, PROJECT NO. FE12-05 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a construction contingency increase of$24,638 (15%) to the construction contract with Jamison Engineering Contractors, Inc., for 15th St., RPPS and BPPS Fall Protection Improvements, Project No. FE12-05, for a total contingency of$41,063 (25%). 12/16/2015 Minutes M Boats Meeting Page 5 of 12 AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver, F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 8. JANITORIAL & FLOOR MAINTENANCE SERVICES CONTRACT (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Service Agreement with Gamboa Services, Inc., DBA Corporate Image Maintenance, the lowest responsive and responsible bidder, for Janitorial & Floor Maintenance Service at Plants 1 &2, Specification No. S- 2015-73013D, for the period February 1, 2016 through January, 2017 for an amount not to exceed $345,700 with four(4), one-year renewal options; and B. Approve an annual contingency of$34,570.00 (10%) aggregately per year. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 9. DIGESTER CLEANING AND DISPOSAL CONTRACT (Ed Torres) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Service Agreement with Synagro-WWT, the lowest responsive and responsible bidder, for Digester Cleaning and Disposal, Specification No. S-2015-71913D, for the period February 1, 2016 through January 31, 2017 for an amount not to exceed $1,160,000, with four one-year renewal options; and B. Approve an annual contingency of$116,000 (10%) aggregately per year. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver, F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 1 2/1 612 01 5 Minutes of Board Meeting Page 6 of 12 10. 2015 AUDIT REPORT OF OCSD'S SANITARY SEWER SYSTEM MANAGEMENT PLAN (Nick Arhontes) MOVED, SECONDED, AND DULY CARRIED TO: Receive and file the 2015 Waste Discharge Requirements (WDR) for Sanitary Sewer System Management Plan Audit Report dated July 31, 2015. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver, F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 11. REPAIR TO MANHOLE STRUCTURES OF WARNER AVENUE RELIEF SEWER, SPECIFICATION FR12-003 - CHANGE ORDER RATIFICATION (Nick Arhontes) MOVED, SECONDED, AND DULY CARRIED TO: Ratify Change Order No. 3 to the Repair to Manhole Structures of Warner Avenue Relief Sewer, Specification No. FR12-003, with Mode Engineering, authorizing an additional $54,884 increasing the total contract amount to $846,357. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 12. BIOSOLIDS MASTER PLAN, PROJECT PS15-01 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve a Professional Services Agreement with Black&Veatch to provide professional services for Biosolids Master Plan, Project No. PS15-01, for an amount not to exceed $2,965,556; and, B. Approve a contingency of$296,556 (10%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; 12/16/2015 Minutes of Boats Meeting Page 7 of 12 Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 13. DOVER DRIVE TRUNK SEWER RELIEF, PROJECT NO. 5-63 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: Approve a contingency increase of $596,000 (9.63%) to the construction contract with Mike Bubalo Construction Co., Inc. for the Dover Drive Trunk Sewer Relief, Project No. 5- 63, for a total contingency of$2,452,700 (39.63%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn ADMINISTRATION COMMITTEE: 14. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the November 12, 2015 meeting of the Administration Committee Meeting. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 15. INVEST AND/OR REINVEST DISTRICT'S FUNDS (Lorenzo Tyner) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-25, entitled "A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest District's Funds; Adopting District's Investment Policy Statement and Performance Benchmarks for calendar year 2016; and Repealing Resolution No. OCSD 14-20" AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; 12/16/2015 Minutes of Board Meeting Page 8 of 12 Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 16. CONFLICT OF INTEREST CODE (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-26 entitled, "A Resolution of the Board of Directors of Orange County Sanitation District adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted." AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn STEERING COMMITTEE: 17. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve minutes of the November 18, 2015 meeting of the Steering Committee. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 18. ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. OCSD 15-27, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Fixing and Establishing Rules of procedure for the Conduct of Business of the District, and Repealing Resolution No. OCSD 15-01." AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; 12/16/2015 Minutes M Boats Meeting Page 9 of 12 Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 19. STRATEGIC PLAN UPDATE (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: A. Approve the Strategic Plan Update dated December 2015; and B. Direct staff to implement the goals and levels of service contained in the Plan. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn 20. AMENDMENT NO. 2 TO LOCAL SEWER FACILITIES TRANSFER AGREEMENT WITH EAST ORANGE COUNTY WATER DISTRICT (Nick Arhontes) MOVED, SECONDED, AND DULY CARRIED TO: Recommend to the Board of Directors to: Approve Amendment No. 2 to the Local Sewer Facilities Transfer Agreement (Transfer Agreement) with East Orange County Water District (EOCWD) regarding the transfer of local sewers in Service Area. AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE: 21. APPROVAL OF 2016 LEGISLATIVE PLAN (Bob Ghirelli) MOVED, SECONDED, AND DULY CARRIED TO: Approve the Orange County Sanitation District 2016 Legislative Plan as amended. 12/16/2015 Minutes of Board Meeting Page 10 of 12 AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver, F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn NON-CONSENT CALENDAR: Director of Engineering Rob Thompson provided a brief background of the bidding process and information regarding the only bid received on this project. 22. GISLER-REDHILL SYSTEM IMPROVEMENTS, REACH B, CONTRACT NO. 7-37 (Rob Thompson) MOVED, SECONDED, AND DULY CARRIED TO: A. Receive and file Addendum to the 1999 OCSD Strategic Plan Program Environmental Impact Report for additional project analysis for the Gisler-Redhill System Improvements, Reach B, Contract No. 7-37; B. Receive and file bid tabulation and recommendation; C. Award a Construction Contract to Kiewit Infrastructure West Company for Gisler-Redhill System Improvements, Reach B, Contract No. 7-37, for a total amount not to exceed $15,432,000; and D. Approve a contingency of$1,543,200 (10%). AYES: Beamish; Choi; Curry; Deaton; Ferryman; Jones; Kiley; Kim; Kring; Mills; M. Murphy (Alternate); R. Murphy; Nagel; Neugebauer; Nielsen; Parker; Peterson (Alternate);Shawver; F. Smith; Tinajero; Underhill (Alternate); Withers and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett and Sebourn AB 1234 REPORTS: Director Ferryman provided a report on the OCCOG meeting he attended on November. 201h where the following was discussed: Strategic Plan; solicitation of a New Executive Director to be completed by March 16, 2016; and a Complete Streets report by Dec 18, 2015. 12/16/2015 Minutes of Board Meeting Page 11 of 12 INFORMATION ITEMS: None. CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1) The Board convened in closed session at 6:21 p.m. to discuss two items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Session Meetings. RECONVENED IN REGULAR SESSION: The Board reconvened in regular session at 6:27 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: General Counsel, Brad Hogin reported that in Closed Session the Board unanimously authorized a settlement of the workers' compensation claim for Dan Nicolas and approved the Compromise and Release (C&R) agreement to resolve the accepted injury claim and subsequent claim referenced for bilateral upper extremities inclusive of nervous system and cervical spine and including all future medical costs in the amount of$75,000. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Director Shawver wished everyone a very Happy Holiday, and Chair Nielsen wished Director Fred Smith a very Happy Birthday. ADJOURNMENT: At 6:30 p.m. Chair Nielsen adjourned the meeting until the Regular Board Meeting on January 27, 2016 at 6:00 p.m. in memory of Everette "Kit' Kittrell. Kelly A. Lore Clerk of the Board 12/16/2015 Minutes of Board Meeting Page 12 of 12 BOARD OF DIRECTORS Meeting Date ToOl/2 Bd.7/16of Dir. -- AGENDA REPORT emNamber Item 3 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF DECEMBER 2015 GENERAL MANAGER'S RECOMMENDATION Receive and file the report of the investment transactions for the month of December 2015. SUMMARY 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 December 31, 2015. RELEVANT STANDARDS CA Government Code: Section 53607 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A Page 1 of 2 ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Report on the Investment Transactions for the Month Ended December 31, 2015. Page 2 of 2 C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thru 12/31/15 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss ACQUISITIONS Purchase 12/01/2015 261908107 174,019.80 Dreyfus Shod Intermediate Gov Treasury 1.000 0.01 % 174,019.80 0.00 174,019.80 0.00 Cash Management Fd521 Purchase 12/02/2015 261908107 0.96 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 0.96 0.00 0.96 0.00 Cash Management Fd521 Purchase 12/02/2015 261908107 44.17 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 44.17 0.00 44.17 0.00 Cash Management Fd521 Purchase 12/04/2015 261908107 4,250.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 4,250.00 0.00 4,250.00 0.00 Cash Management Fd521 Purchase 12/04/2015 261908107 1,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,000,000.00 0.00 1,000,000.00 0.00 Cash Management Fd521 Purchase 12/05/2015 261908107 22,080.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 22,080.00 0.00 22,080.00 0.00 Cash Management Fd521 Purchase 12/07/2015 261908107 3,250.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,250.00 0.00 3,250.00 0.00 Cash Management Fd521 Purchase 12/07/2015 261908107 1,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,000,000.00 0.00 1,000,000.00 0.00 Cash Management Fd521 Purchase 12/08/2015 261908107 11,168.90 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 11,168.90 0.00 11,168.90 0.00 Cash Management Fd521 Purchase 12/09/2015 261908107 25,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 25,000.00 0.00 25,000.00 0.00 Cash Management Fd521 Purchase 12/12/2015 261908107 43,750.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 43,750.00 0.00 43,750.00 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 35,504.79 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 35,504.79 0.00 35,504.79 0.00 Cash Management Fd521 Purchase 12/15Q015 261908107 7,500.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 7,500.00 0.00 7,500.00 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 5,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 5,000,000.00 0.00 5,000,000.00 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 6,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 6,000,000.00 0.00 6,000,000.00 0.00 Cash Management Fd521 Purchase 12/15Q015 261908107 2,788.85 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 2,788.85 0.00 2,788.85 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 29.53 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 29.53 0.00 29.53 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 3,566.67 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,566.67 0.00 3,566.67 0.00 Cash Management Fd521 Purchase 12/15Q015 261908107 298,796.04 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 298,796.04 0.00 298,796.04 0.00 Cash Management Fd521 Purchase 12/15/2015 261908107 1,682.83 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,682.83 0.00 1,682.83 0.00 Cash Management Fd521 Ch.ndler Asset Management-CONFIDENTIAL Execution Time:1IM01611 26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thlu 12/31/15 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 12/15/2015 261908107 3,355.33 Dreyfus Shod Intermediate Gov Treasury 1.000 0.01 % 3,355.33 0.00 3,355.33 0.00 Cash Management Fd521 Purchase 12/16/2015 261908107 1,477.28 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,477.28 0.00 1,477.28 0.00 Cash Management Fd521 Purchase 12/16/2015 3135GOF73 4,400,000.00 FNMA Note 98.309 1.86% 4,325,596.00 2,933.34 4,328,529.34 0.00 1.5%Due 11/30/2020 Purchase 12/16/2015 912828VL1 3,000,000.00 US Treasury Note 99.985 0.65% 2,999,541.30 7,846.47 3,007,387.77 0.00 0.625%Due 7I1M016 Purchase 12/16/2015 912828VW7 3,000,000.00 US Treasury Note 100.125 0.71 % 3,003,760.05 6,634.62 3,010,394.67 0.00 0.875%Due 9115/2016 Purchase 12/17/2015 3135GOF73 3,100,000.00 FNMA Note 98.230 1.88% 3,045,130.00 2,195.83 3,047,325.83 0.00 1.5%Due 11/30/2020 Purchase 12/18Q015 261908107 43,859.43 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 43,859.43 0.00 43,859.43 0.00 Cash Management Fd521 Purchase 12/18/2015 30229AAU3 2,000,000.00 Exxon Mobil Discount CP 99.954 0.41 % 1,999,088.88 0.00 1,999,088.88 0.00 0.4%Due 1/28/2016 Purchase 12/21/2015 06538BAV5 1,200,000.00 Bank of Tokyo Mitsubishi NV Discount CP 99.952 0.45% 1,199,428.00 0.00 1,199,428.00 0.00 0.44%Due 1/29/2016 Purchase 12/21Q015 261908107 266,377.78 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 266,377.78 0.00 266,377.78 0.00 Cash Management Fd521 Purchase 12Q1/2015 261908107 257.08 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 257.08 0.00 257.08 0.00 Cash Management Fd521 Purchase 12/21/2015 261908107 323.26 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 323.26 0.00 323.26 0.00 Cash Management Fd521 Purchase 12/21Q015 261908107 1,373.30 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,373.30 0.00 1,373.30 0.00 Cash Management Fd521 Purchase 12Q1/2015 261908107 77.25 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 77.25 0.00 77.25 0.00 Cash Management Fd521 Purchase 12/21/2015 261908107 551.39 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 551.39 0.00 551.39 0.00 Cash Management Fd521 Purchase 12/21Q015 313384SH3 12,000,000.00 FHLB Discount Note 99.973 0.26% 11,996,793.33 0.00 11,996,793.33 0.00 0.26%Due 1/27/2016 Purchase 12Q1/2015 313396SH7 2,200,000.00 FHLMC Discount Note 99.971 0.28% 2,199,366.88 0.00 2,199,366.88 0.00 0.28%Due 1/27/2016 Purchase 12/21/2015 3135GOG72 5,000,000.00 FNMA Note 99.279 1.37% 4,963,950.00 1,093.75 4,965,043.75 0.00 1 A 25%Due 12/14/2018 Purchase 12/21Q015 3137EADM8 4,500,000.00 FHLMC Note 98.588 1.64% 4,436,460.00 12,343.75 4,448,803.75 0.00 1.25%Due 1002019 Purchase 12Q1/2015 69372AAN2 1,200,000.00 Paccar Financial Discount CP 99.969 0.35% 1,199,626.67 0.00 1,199,626.67 0.00 0.35%Due 1/22/2016 Chandler AeeM Management-CONFIDENTIAL Execution Time:1IM01611 26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thm 12/31/15 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 12/21/2015 89233GCM6 3,000,000.00 Toyota Motor Credit Discount CP 99.853 0.59% 2,995,601.67 0.00 2,995,601.67 0.00 0,58%Due 3/21/2016 Purchase 12/21/2015 912796GZ6 10,000,000.00 US Treasury TBILL 99.984 0.30% 9,998,448.33 0.00 9,998,448.33 0.00 0.15%Due 1/28/2016 Purchase 12/22Q015 261908107 41,388.73 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 41,388.73 0.00 41,388.73 0.00 Cash Management Fd521 Purchase 12/22Q015 313312SG6 10,000,000.00 FFCB Discount Note 99.978 0.46% 9,997,763.90 0.00 9,997,763.90 0.00 0.23%Due 1/26/2016 Purchase 12/22/2015 313312YJ3 1,075,000.00 FFCB Discount Note 99.703 1.18% 1,071,811.13 0.00 1,071,811.13 0.00 0.59%Due 6/20/2016 Purchase 12/22Q015 313384YFO 985,000.00 FHLB Discount Note 99.718 1.14% 982,223.94 0.00 982,223.94 0.00 0.57%Due 6/17/2016 Purchase 12/22Q015 912828VG2 10,000,000.00 US Treasury Note 100.008 0.48% 10,000,814.75 956.28 10,001,771.03 0.00 0.5%Due 6/15/2016 Purchase 12Q3/2015 21684BPVD 1,000,000.00 RaboBank Nederland NV NV Negotiable CD 99.983 0.76% 999,830.00 935.10 1,000,765.10 0.00 0.716%Due 5/6/2016 Purchase 12/23Q015 261908107 2,958,152.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 2,958,152.00 0.00 2,958,152.00 0.00 Cash Management Fd521 Purchase 12/23Q015 912828B33 6,500,000.00 US Treasury Note 100.442 1.35% 6,528,713.18 38,417.12 6,567,130.30 0.00 1.5%Due 1/31/2019 Purchase 12Q3/2015 9128281-99 3,000,000.00 US Treasury Note 98.524 1.69% 2,955,713.18 6,006.18 2,961,719.36 0.00 1.375%Due 10/31/2020 Purchase 12/23/2015 912828SSO 7,500,000.00 US Treasury Note 100.008 0.87% 7,500,611.06 9,556.28 7,510,166.34 0.00 0.875%Due 4/30/2017 Purchase 12/24/2015 02665WAB7 1,000,000.00 American Honda Finance Note 100.166 0.91 % 1,001,660.00 2,406.25 1,004,066.25 0.00 I A 25%Due 10/7/2016 Purchase 12/24/2015 06406HBX6 1,000,000.00 Bank of New York Note 100.876 0.82% 1,008,760.00 9,327.78 1,018,087.78 0.00 2.3%Due 7/28/2016 Purchase 12/24/2015 191216AU4 1,000,000.00 Coca Cola Company Note 100.645 0.85% 1,006,450.00 5,650.00 1,012,100.00 0.00 1.8%Due 9/1/2016 Purchase 12/24/2015 24422ESD2 1,000,000.00 John Deere Capital Corp Note 100.107 0.91 % 1,001,070.00 2,129.17 1,003,199.17 0.00 1.05%Due 1 0/1112 01 6 Purchase 12/24/2015 91159HHB9 1,000,000.00 US Bancorp Callable Note Cont 10/14/2016 100.990 0.96% 1,009,900.00 2,383.33 1,012,283.33 0.00 2.2%Due 11/15/2016 Purchase 12/24/2015 912796GY9 9,000,000.00 US Treasury Bill 99.986 0.18% 8,998,743.50 0.00 8,998,743.50 0.00 0.18%Due 1/21/2016 Purchase 12/24/2015 94974BFL9 1,000,000.00 Wells Fargo Carp Note 100.187 0.92% 1,001,870.00 5,347.22 1,007,217.22 0.00 1.25%Due 7/20/2016 Purchase 12Q5/2015 261908107 142.33 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 142.33 0.00 142.33 0.00 Cash Management Fd521 Chandler Asset Management-CONFIDENTIAL Execution Time:1IM01611 26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thtu 12/31/15 Transaction Settlement Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 12/25/2015 261908107 5,930.22 Dreyfus Shod Intermediate Gov Treasury 1.000 0.01 % 5,930.22 0.00 5,930.22 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 3,188.25 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,188.25 0.00 3,188.25 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 14,728.75 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 14,728.75 0.00 14,728.75 0.00 Cash Management Fd521 Purchase 12/25Q015 261908107 3,828.39 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,828.39 0.00 3,828.39 0.00 Cash Management Fd521 Purchase 12Q5/2015 261908107 391.11 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 391.11 0.00 391.11 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 2,875.82 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 2,875.82 0.00 2,875.82 0.00 Cash Management Fd521 Purchase 12/25Q015 261908107 1,668.19 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,668.19 0.00 1,668.19 0.00 Cash Management Fd521 Purchase 12Q5/2015 261908107 508.46 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 508.46 0.00 508.46 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 7,891.52 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 7,891.52 0.00 7,891.52 0.00 Cash Management Fd521 Purchase 12/25Q015 261908107 5,835.42 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 5,835.42 0.00 5,835.42 0.00 Cash Management Fd521 Purchase 12Q5/2015 261908107 51.33 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 51.33 0.00 51.33 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 14,123.34 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 14,123.34 0.00 14,123.34 0.00 Cash Management Fd521 Purchase 12/25Q015 261908107 989.31 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 989.31 0.00 989.31 0.00 Cash Management Fd521 Purchase 12Q5/2015 261908107 1,093.84 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,093.84 0.00 1,093.84 0.00 Cash Management Fd521 Purchase 12/25/2015 261908107 12,044.43 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 12,044.43 0.00 12,044.43 0.00 Cash Management Fd521 Purchase 12/25Q015 261908107 834.16 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 834.16 0.00 834.16 0.00 Cash Management Fd521 Purchase 12/29/2015 313384YN3 4,000,000.00 FHLB Discount Note 99.708 0.60% 3,988,331.11 0.00 3,988,331.11 0.00 0.59%Due 6/24/2016 Purchase 12/30/2015 261908107 6,109.42 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 6,109.42 0.00 6,109.42 0.00 Cash Management Fd521 Purchase 12/30/2015 45950VCJ3 2,500,000.00 International Finance Corp Note 99.950 0.63% 2,498,750.00 1,527.78 2,500,277.78 0.00 0.5%Due 5/16/2016 Purchase 12/30/2015 912828B33 4,500,000.00 US Treasury Note 100.305 1.40% 4,513,726.01 27,880.43 4,541,606.44 0.00 1.5%Due 1/31/2019 Ch.ndler AesM Management-CONFIDENTIAL Execution Time:1IM01611 26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thru 12/31/15 Transaction Settlement Acql Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss ACQUISITIONS Purchase 12/31/2015 261908107 81,250.00 Dreyfus Shod Intermediate Gov Treasury 1.000 0.09% 81,250.00 0.00 81,250.00 0.00 Cash Management Fd521 Purchase 12/31/2015 912828VG2 4,000,000.00 US Treasury Note 100.020 0.46% 4,000,794.65 874.32 4,001,668.97 0.00 0.5%Due 6/15/2016 Subtotal 141,774,109.66 141,544,437.18 146,444.00 141,690,881.18 0.00 Security 12/03/2015 261908107 12,700,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 12,700,000.00 0.00 12,700,000.00 0.00 Contribution Cash Management Fd521 Security 12/182015 261908107 30,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 30,000,000.00 0.00 30,000,000.00 0.00 Contribution Cash Management Fd521 Security 12/182015 261908107 88,000,000.00 Dreyfus Short-Intermediate Gov Treasury 1.000 88,000,000.00 0.00 88,000,000.00 0.00 Contribution Cash Management Fd521 Subtotal 130,700,000.00 130,700,000.00 0.00 130,700,000.00 0.00 TOTAL ACQUISITIONS 272,474,109.66 272,244,437.18 146,444.00 272,390,981.18 0.00 DISPOSITIONS Sale 12/16/2015 261908107 6,017,78244 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 6,017,78244 0.00 6,017,78244 000 Cash Management Fd521 Sale 12/16/2015 261908107 4,328,529.34 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 4,328,529.34 0.00 4,328,529.34 -0.02 Cash Management Fd521 Sale 12/17/2015 261908107 3,047,325.83 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,047,325.83 0.00 3,047,325.83 -0.02 Cash Management Fd521 Sale 12/18/2015 261908107 1,999,088.88 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,999,088.88 0.00 1,999,088.88 0.00 Cash Management Fd521 Sale 1221/2015 261908107 9,413,847.50 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 9,413,847.50 0.00 9,413,847.50 -0.09 Cash Management Fd521 Sale 12212015 261908107 2,995,601.67 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 2,995,601.67 0.00 2,995,601.67 0.00 Cash Management Fd521 Sale 12212015 261908107 25,394,235.21 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 25,394,235.21 0.00 25,394,235.21 0.00 Cash Management Fd521 Sale 12212015 261908107 1,199,428.00 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,199,428.00 0.00 1,199,428.00 0.00 Cash Management Fd521 Sale 12222015 261908107 10,001,771.03 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 10,001,771.03 0.00 10,001,771.03 0.00 Cash Management Fd521 Sale 12222015 261908107 12,051,798.97 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 12,051,798.97 0.00 12,051,798.97 0.00 Cash Management Fd521 Sale 12232015 261908107 1,000,765.10 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 1,000,765.10 0.00 1,000,765.10 0.00 Cash Management Fd521 Chandler Asset Management-CONFIDENTIAL Execution Time:1IM01611 26:57 AM C/" Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thlu 12/31/15 Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss DISPOSITIONS Sale 12/23/2015 261908107 17,039,016.00 Dreyfus Shod IntermediateGov Treasury 1.000 0.01 % 17,039,016.00 0.00 17,039,016.00 0.00 Cash Management Fd521 Sale 12/24/2015 261908107 6,056,953.75 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 6,056,953.75 0.00 6,056,953.75 0.00 Cash Management Fd521 Sale 12/24/2015 261908107 8,998,743.50 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 8,998,743.50 0.00 8,998,743.50 0.00 Cash Management Fd521 Sale 12/29/2015 261908107 3,988,331.11 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 3,988,331.11 0.00 3,988,331.11 0.00 Cash Management Fd521 Sale 12/30/2015 261908107 2,500,277.78 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 2,500,277.78 0.00 2,500,277.78 0.00 Cash Management Fd521 Sale 12/302015 261908107 4,541,606.44 Dreyfus Short-Intermediate Gov Treasury 1.000 0.01 % 4,541,606.44 0.00 4,541,606.44 0.00 Cash Management Fd521 Sale 12/31/2015 261908107 4,001,668.97 Dreyfus Short-Intermediate Gov Treasury 1.000 0.09% 4,001,668.97 0.00 4,001,611 0.00 Cash Management Fd521 Subtotal 124,576,771.52 124,576,771.52 0.00 124,576,771.52 41.13 Call 12/23/2015 36164EAC9 2,955,000.00 GE Equipment Transportation 2015-1 A3 100.000 1.28% 2,955,000.00 3,152.00 2,958,152.00 318.19 1 28%Due 2/25/2019 Subtotal 2,955,000.00 2,955,000.00 3,152.00 2,958,152.00 318.19 Paydown 12/012015 3837H4NX9 1,449.56 GNMA Poo1#2000-9 100.000 1,449.56 27.72 1,477.28 0.00 9.5%Due 2/16/2030 Paydown 12/082015 62888UAA8 10,901.60 NCUA Guaranteed Note CMO 2010-R2Due 100.000 10,901.60 267.30 11,168.90 0.00 11/6/2017 Paydown 12/15/2015 3133TCE95 2,614.85 FHLMC FSPC E3 A 100.000 2,614.85 174.00 2,788.85 0.00 2.892%Due 8/152032 Paydown 12/152015 31348SWZ3 19.33 FHLMC FH 786064 100.000 19.33 5.06 24.39 0.00 2.262%Due 1/1/2028 Paydown 12/152015 477877AD6 0.00 John Deere Owner Trust 2014-13 A3 100.000 0.00 3,566.67 3,566.67 0.00 1.07%Due 1111 5/2 01 8 Paydown 12/15/2015 89231 MAC9 296,707.57 Toyota Auto Receivables Owner 2014-A 100.000 296,707.57 2,088.47 298.796.04 0.00 0.67%Due 12/152017 Paydown 12/152015 89231TAB6 0.00 Toyota Auto Receivables Owner 2015-C 100.000 0.00 1,682.83 1,682.83 0.00 0.92%Due 211512018 Paydown 12/152015 89236WAC2 0.00 Toyota Auto Receivables Owner 2015-A 100.000 0.00 3,356.33 3,356.33 0.00 IA2%Due 211512019 Paydown 12/18/2015 43814GAC4 42,576.10 Honda Auto Receivables 2014-2 A3 100.000 42,576.10 1,283.33 43,859.43 0.00 0.77%Due 3/19/2018 Chandler Asset Management-CONFIDENTIAL Execution Time:1IM01611:26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thor 12/31/15 Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss DISPOSITIONS Paytlown 12/21/2015 36225CAZ9 217.85 GNMA P0o1#G2 80023 100.000 217.85 39.23 257.08 0.00 2816%Due 12/20/2026 Paytlown 12/21/2015 36225CC20 264.65 GNMA Poo1#G280088 100.000 264.65 58.61 323.26 0.00 2.817%Due 61202027 Paytlown 12/212015 36225CN28 1,219.72 GNMA Poo1#G2 80408 100.000 1,219.72 153.58 1,373.30 0.00 2.691%Due 5/20/2030 Paytlown 12/212015 36225CNM4 59.69 GNMA Pool#G2 80395 100.000 59.69 17.66 77.25 0.00 2.877%Due 4/20/2030 Paytlown 1221Q015 36225DCB8 391.26 GNMA PooI#G280965 100.000 391.26 160.13 551.39 0.00 2.31%Due 7/20/2034 Paytlown 12/212015 43813JAC9 264,144.45 Honda Auto Receivables 2014-1 A3 100.000 264,144.45 2,233.33 266,377.78 0.00 0.67%Due 11121/2 01 7 Paytlown 12/252015 03215PFN4 0.00 AMRESCO Residermal Sewnties 1999-1 100.000 0.00 142.33 142.33 0.00 ADue 6/2512029 Paytlown 1225/2015 31371NUC7 261.38 FNMA FN 257179 100.000 261.38 129.73 391.11 0.00 4.5%Due 4/1/2028 Paytlown 12/252015 31376KT22 1,888.78 FNMA FN 357969 100.000 1,888.78 987.04 2,876.82 0.00 5%Due 9/1/2035 Paytlown 12/252015 31381 PDA3 625.87 FNMA FN 466397 100.000 625.87 1,042.31 1,668.18 0.00 3.4%Due 1 t/1/2020 Paytlown 1225/2015 3138EG6F6 412.75 FNMA FN AL0869 100.000 412.75 95.71 508.46 0.00 4.5%Due 6/1/2029 Paytlown 12/252015 313MJY35 3,828.39 FHLMC FSPC T-582A 100.000 3,828.39 5,930.22 9,758.61 0.00 6.5%Due 9/25/2043 Paytlown 12/252015 31397QRED 7,545.01 FNMA FNR 2011-3 FA 100.000 7,545.01 346.51 7,891.52 0.00 0.832%Due 2/25/2041 Paytlown 1225/2015 31398VJ98 0.00 FHLMC FHMS K006 A2 100.000 0.00 3,188.25 3,188.25 0.00 4.251%Due 11252020 Paytlown 12/252015 31403DJZ3 4,887.67 FNMA Po01#745580 100.000 4,887.67 947.75 5,835.42 0.00 5%Due 6/12036 Paytlown 12/252015 31403GXF4 25.79 FNMA Po01#FN 748678 100.000 25.79 25.54 51.33 0.00 5%Due 10/1/2033 Paytlown 12/25/2015 31406PQYB 12,354.31 FNMA Pool#FN 815971 100.000 12,354.31 1,769.03 14,123.34 0.00 5.47%Due 3/1/2035 Paytlown 12/252015 31406XN/75 529.64 FNMA Po01#FN 823358 100.000 629.64 359.67 989.31 0.00 2.875%Due 211/2035 Paytlown 12/252015 31407BXH7 915.62 FNMA Po01#FN 826080 100.000 915.62 178.22 1,093.84 0.00 5%Due 7/12035 Paytlown 1225/2015 31410F4V4 10,151.78 FNMA Pool#FN 888336 100.000 10,151.78 1,892.65 12,044.43 0.00 5%Due 7/1/2036 Chandler Asset Management-CONFIDENTIAL Execution Time:1IM01611:26:57 AM C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thru 12/31/15 Transaction Sent...at Acq/Disp Interest Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss DISPOSITIONS Paytlown 12/25/2015 31417YAY3 682.03 FNMA Pool#FIN MA0022 100.000 682.03 152.13 834.16 0.00 4 943%Due 4I112029 Paytlown 12/25/2015 83611MGS1 14,700.94 Soundview Home Equity Loan Tr.2005- 100.000 14,700.94 27.81 14,728.75 0.00 OPT3 A4Due 11/25/2035 Paytlown 12/27/2015 31396l 6,055.74 FNMA FNR 2007-114 A6Due 10/27/2037 100.000 6,055.74 53.68 6,109.42 0.00 Subtotal 685,532.33 685,532.33 32,381.73 717,914.06 0.00 Maturity 12/04/2015 808513AH8 1,000,000.00 Charles Schwab Corp Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00 0.85%Due 1214/2015 Maturity 12/07/2015 22160KAD7 1,000,000.00 Costoo Wholesale Corp Note 100.000 1,000,000.00 0.00 1,000,000.00 0.00 0.65%Due 1 21712 01 5 Maturity, 12/15/2015 912828UC2 5,000,000.00 US Treasury Note 100.000 5,000,000.00 0.00 5,000,000.00 0.00 0.25%Due 12/15/2015 Maturity 12/15/2015 912828UC2 6,000,000.00 US Treasury Note 100.000 6,000,000.00 0.00 6,000,000.00 0.00 0.25%Due 12/15/2015 Subtotal 13,000,000.00 133 000,000 00 0.00 13,000,000.00 0.00 Security 12/31/2015 912828WUD 4,992.00 US Treasury Inflation Index Nate 99.471 4,992.00 0.00 4,992.00 47.16 Withdrawal 0A 25%Due 7I15/2024 Subtotal 4,992.00 4,992.00 0.00 4,992.00 47.16 TOTAL DISPOSITIONS 141,222,295.85 141,222,295.85 35,533.73 141,257,829.58 365.2.2 OTHER TRANSACTIONS _ Interest 12/01/2015 060505DP6 3,800,000.00 Bank of America Corp Note 0.000 109,250.00 0.00 109,250.00 0.00 5.75%Due 1211/2017 Interest 12/01/2015 73358WAG9 2,440,000.00 Purl Authority of NY&NJ TE-REV 0.000 64,769.80 0.00 64,769.80 0.00 5.309%Due 12/1/2019 Interest 12/04/2015 808513AH8 1,000,000.00 Charles Schwab Corp Note 0.000 4,250.00 0.00 4,250.00 0.00 0.85%Due 1 21412 01 5 Interest 12/05/2015 166764AA8 4,000,000.00 Chevron Corp Callable Note Cont 11/5117 0.000 22,080.00 0.00 22,080.00 0.00 1.104%Due 12/52017 Interest 12/07/2015 221601(AD7 1,000,000.00 Costco Wholesale Corp Note 0.000 3,250.00 0.00 3,250.00 0.00 0.65%Due 1 21712 01 5 Interest 12/09/2015 313379FW4 5,000,000.00 FHLB Note 0.000 25,000.00 0.00 25,000.00 0.00 1%Due 6/9/2017 Interest 12/12/2015 313383HU8 5,000,000.00 FHLB Note 0.000 43,750.00 0.00 43,750.00 0.00 1.75%Due 6/1212020 Chandler Asset Management-CONFIDENTIN- Execution Time:1IM01611 26:57 MA C." Orange County Sanitation District Consolidated Transaction Ledger Account#10283 11/30/15 Thrill 12/31/15 Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss OTHER TRANSACTIONS Interest 12/15/2015 458140AL4 2,000,000.00 Intel Corp Note 0.000 13,500.00 0.00 13,500.00 0.00 1,35%Due 12/15/2017 Interest 12/15/2015 459058EJ8 3,000,000.00 InO.Bank Recon&Development Note 0.000 15,000.00 0.00 15,000.00 0.00 1%Due 6/15/2018 Interest 12/152015 912828UC2 5,000,000.00 US Treasury Note 0.000 6,250.00 0.00 6,250.00 0.00 0.25%Due 1 2/1 512 01 5 Interest 12/152015 912828UC2 6,000,000.00 US Treasury Note 0.000 7,500.00 0.00 7,500.00 0.00 0.25%Due 1 211 512 01 5 Interest 12/15/2015 94988J210 500,000.00 Wells Fargo Bank Callable Note OOIy 0.000 754.79 0.00 754.79 0.00 6/1 512 01 6 0.786%Due 61152017 Interest 1222/2015 3135GOD75 5,000,000.00 FNMA Note 0.000 37,500.00 0.00 37,500.00 0.00 1.5%Due 6/222020 Interest 1222/2015 38141GEG5 2,000,000.00 Goldman Sachs Group Inc Note 0.000 3,888.73 0.00 3,888.73 0.00 1.036%Due 3122/2016 Interest 12/312015 912828WS5 10,000,000.00 US Treasury Note 0.000 81,250.00 0.00 81,250.00 0.00 1.625%Due 6/30/2019 Subtotal 55,740,000.00 437,993.32 0.00 437,993.32 0.00 Divitlentl 12/02/2015 261908107 4,551,337.90 Dreyfus Short-Intermediate Gov Treasury 0.000 1.13 0.00 1.13 0.00 Cash Management Fd521 Dividend 12/02/2015 261908107 145,961.64 Dreyfus Short-Intermediate Gov Treasury 0.000 0.96 0.00 0.96 nor Cash Management Fd521 Subtotal 4,697,299.54 2.09 0.00 2.09 0.00 TOTAL OTHER TRANSACTIONS 60,437,299.54 437,995.41 0.00 437,995.41 0.00 Chanute,Asset Management-CONFIDENTIM Execution Time:1IM01611 26:57 M4 BOARD OF DIRECTORS Meeting Date TOBd.of Dir. -- OS/27/16 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: DEFERRED PAYMENT AGREEMENT FOR CHARGES AND FEES OWED BY ONE INDUSTRIAL WASTEWATER DISCHARGE PERMITTEE GENERAL MANAGER'S RECOMMENDATION Approve the deferred payment agreement negotiated by the General Manager for the collection of all charges and fees owed for sanitary sewer service charges, plus interest of 5.25% per annum, with Aseptic Technology, in a form approved by General Counsel. SUMMARY BACKGROUND Aseptic Technology is the holder of an industrial wastewater discharge permit issued by the Orange County Sanitation District that requires payment of sanitary sewer service charges for the cost of conveying, treating, and disposing of wastewater discharged. Based on the terms of the permit, the permittee is required to pay estimated quarterly sewer service charges that are reconciled annually with actual discharge flows and levels of biochemical oxygen demand and total suspended solids. The permittee is now in default of their payment obligations ($199,288.03) and the General Manager, in accordance with Resolution No. OCSD 11-04, Article III, "Collection of Fees and Charges Relating to Industrial Waste Discharges;" has negotiated a twelve-month deferred payment agreement with this permittee requiring monthly payment terms plus interest of 5.25% per annum. RELEVANT STANDARDS Make it easy for customers and the public to get a problem solved or interact with OCSD. PROBLEM Aseptic Technology is past due on their invoices and owe $199,288.03. PROPOSED SOLUTION Resolution NO. OCSD 11-04 allows for a deferred payment agreement to allow the permittee to pay the amounts owed while continuing to conduct their business with a valid industrial wastewater discharge permit. If a deferred payment agreement is not Page 1 of 3 approved, the District would file an administrative complaint for permit suspension until the invoices are paid. TIMING CONCERNS The deferred payment agreement should be executed as soon as possible to allow the permittee to begin making payments. RAMIFICATIONS OF NOT TAKING ACTION The outstanding amounts owed to the District will increase when third quarter invoices are issued. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Admin Installment Principal Interest Charges Total Due Due Date 1 $16,206.62 $871.62 $25.00 $17,103.24 2/1/2016 2 $16,277.52 $800.72 $25.00 $17,103.24 31112016 3 $16,348.74 $729.50 $25.00 $17,103.24 4N12016 4 $16,420.26 $657.98 $25.00 $17,103.24 5/1/2016 5 $16,492.10 $586.14 $25.00 $17,103.24 6/1/2016 6 $16,564.26 $513.99 $25.00 $17,103.24 7/1/2016 7 $16,636.72 $441.52 $25.00 $17,103.24 8/1/2016 8 $16 709.51 1 $368.73 $25.00 $17,103.24 9/1/2016 9 $16 782.61 $295.63 $25.00 $17103.24 10/1/16 10 $16,856.04 $222.20 $25.00 $17,103.24 11/1116 11 $16929.78 $148.46 $25.00 $17103.24 12/1116 12 $17,003.85 $ 74.39 $25.00 $17,103.24 1/1117 CEQA N/A FINANCIAL CONSIDERATIONS The deferred payment agreement complies with Resolution No. OCSD 11-04. Page 2 of 3 ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website (www.ocsd.coml with the complete agenda package: • Deferred Payment Agreement—AsepticTechnologies Page 3 of 3 DEFERRED PAYMENT AGREEMENT THIS AGREEMENT, is entered into, to be effective December 30, 2015, by and between Orange County Sanitation District ("District"), a county sanitation district duly organized and existing pursuant to Section 4700 at. seq. of the Health & Safety Code of the State of California and Aseptic Technology LLC. RECITALS A. District is a wastewater treatment agency, which, in conjunction with other County Sanitation Districts of Orange County, owns and operates wastewater treatment facilities which receive, treat and discharge, through an ocean outfall, wastewater received from dischargers within its jurisdictional boundaries. In the course of its wastewater treatment operations, and pursuant to District's Wastewater Discharge Regulations ("District's Ordinance"), District issues industrial wastewater discharge permits to certain persons/entities which discharge wastewater into the District's sewerage system. B. As part of the District's wastewater treatment operations, District imposes user fees on permittees, requiring such permittees to pay their share of the District's costs of conveying, treating and disposing of wastewater discharged by such permittees. C. "Aseptic Technology LLC" or"Permittee" is the holder of an industrial wastewater discharge permit issued by District and is responsible for paying user fees for the cost of conveying, treating and disposing of wastewater discharged from Permittee's facility located at 24855 Corbit Place, Yorba Linda, California. D. District has issued to Permittee Invoice No.'s 909561, 909719, 529048 and 529366 in the amount of$199,228.03 for user fees then due and owing to the District. E. Aseptic Technology LLC has failed to pay the presently owing sum of $199,288.03 and has requested additional time to pay this outstanding obligation. 1 F. Pursuant to Resolution 11-04, District is authorized to enter into deferred payment agreements for limited sums and of limited duration. G. The District and Aseptic Technology LLC intend to provide additional time for Aseptic Technology LLC to pay to District the amounts presently due on Invoice No.'s 909561, 909719, 529048 and 529366 in accordance with the requirements of Resolution 11-04. NOW, THEREFORE, in consideration of the facts recited above and the conditions, covenants and promises set forth below, District and Aseptic Technology LLC agree as follows: AGREEMENT 1. Permittee shall make payments (including principal and interest)to the District, pursuant to the following payment schedule: Admin Installment Principal Interest Charges Total Due Due Date 1 $16,206.62 $871.62 $25.00 $17,103.24 2/1/2016 2 $16,277.52 $800.72 $25.00 $17,103.24 3/1/2016 3 $16,348.74 $729.50 $25.00 $17,103.24 4/1/2016 4 $16,420.26 $657.98 $25.00 $17,103.24 5/1/2016 5 $16,492.10 $586.14 $25.00 $17,103.24 6/1/2016 6 $16,564.26 $513.99 $25.00 $17,103.24 7/1/2016 7 $16,636.72 $441.52 $25.00 $17,103.24 8/1/2016 8 $16,709.51 $368.73 $25.00 $17,103.24 9/1/2016 9 $16,782.61 $295.63 $25.00 $17,103.24 1011116 10 $16,856.04 $222.20 $25.00 $17,103.24 1111116 11 $16,929.78 $148.46 $25.00 $17,103.24 1211116 12 $17,003.85 $ 74.39 $25.00 $17,103.24 1/1117 2 2. Permittee shall pay to District all other invoices issued by the District during the term of this Agreement in accordance with the provisions of District's Ordinance. 3. If any payment described in Paragraph 1 herein is not received by the District on or before the due date specified, or if any payment described in Paragraph 2 herein is not received by District in accordance with the provisions of District's Ordinance, the entire balance then owing shall become immediately due and payable and interest at the rate of ten percent (10%) per annum shall accrue on any such unpaid balance from the date of acceleration until the date that the balance due is fully paid to the District. 4. Aseptic Technology LLC acknowledges that the failure to pay current invoices, or failure to pay any installment in accordance with the schedule set forth in Paragraph 1 herein, may be grounds for revocation of any industrial wastewater discharge permit issued to Aseptic Technology LLC by District, and shall additionally be deemed a breach of this Agreement, thereby giving rise to all legal remedies available to District. 5. In consideration of the foregoing, District agrees to refrain from instituting collection or permit revocation proceedings, which remedies are presently available to the District as a result of Aseptic Technology LLC' current failure to pay Invoice No.'s 909561, 909719, 529048 and 529366. This provision to refrain from instituting such proceedings shall be effective with regard to Invoice No.'s 909561, 909719, 529048 and 529366 as long as Aseptic Technology LLC remains in compliance with the terms of this Agreement. 6. Should any litigation be commenced between the District and Aseptic Technology LLC regarding enforcement of this Agreement, or the rights and any duties of the parties in relation thereto, the prevailing party in such litigation shall be 3 entitled, in addition to such other relief as may be granted, to a reasonable sum as and for its attorney fees and costs in the litigation which shall be determined by the court in such litigation or in a separate action brought for that purpose. 7. Nothing in this Agreement shall affect Aseptic Technology LLC obligation to pay current and/or future charges for use of District's sewerage system or Aseptic Technology LLC' obligation to comply with all other conditions and requirements of its industrial wastewater discharge permit and the District's Ordinance. 8. Nothing herein shall affect the District's right to enforce all requirements and conditions of the District's Ordinance. 9. This Agreement is made only for the benefit of the parties hereto. It is not intended that any right under this Agreement shall accrue to any third person. IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first written above. Orange County Sanitation District BY: John Nielsen Board Chair Attest: Aseptic Technology LLC BY: Kelly A. Lore Noel Calma Clerk of the Board 4 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. -- O1/27/16 AGENDA REPORT IbemNamber Item Number s Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: MAXIM SECURITY SYSTEMS, INC. MAINTENANCE AND SERVICES GENERAL MANAGER'S RECOMMENDATION A. Authorize an additional $250,000 to purchase order #105299 OB with Maxim Security Systems, Inc. for utilizing Eastern Municipal Water District's (EMWD) Cooperative agreement #85939, for a total amount not to exceed $335,000, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases; B. Authorize purchases of information technology security systems, services and software/hardware maintenance using the EMWD's cooperative agreement #85939, commencing October 1, 2016 through September 30, 2018, for a total amount not to exceed $335,000, in accordance with Ordinance OCSD-47, Section 2.03(B) Cooperative Purchases, with four (4) one-year renewal options. SUMMARY Maxim Security Systems, Inc. is currently providing security items including software, hardware, service and installation of security systems at both Plant No. 1 and Plant No. 2. RELEVANT STANDARDS Ensure that the public's money is wisely spent PROBLEM The procurement process on information technology items and services for a local agency like OCSD involves a lot of efforts and associated costs. IT needs to work diligently in finding ways to streamline the procurement process while minimizing cost concomitant of the procurement of technology items. PROPOSED SOLUTION OCSD's purchasing power is limited therefore utilizing other large agencies' cooperative agreemenf/s who have completed a vetted procurement process is a viable and economical solution. Page 1 of 2 TIMING CONCERNS N/A RAMIFICATIONS OF NOT TAKING ACTION Failure to take such action may not only result in increased pricing on required materials, maintenance and services for OCSD's security systems but may also compromise the secured architecture of our security cameras and card access systems that contain security passwords. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A CEQA N/A FINANCIAL CONSIDERATIONS N/A Page 2 0 2 BOARD OF DIRECTORS Meeting Date ToOl/1 Bd.9/16of Dir. -- AGENDA REPORT emNumber Item 6 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: SALES TAX REIMBURSEMENTS FOR CHEMICAL PURCHASES GENERAL MANAGER'S RECOMMENDATION Approve a Sole Source Agreement for Tax Consulting and Advocacy Services with Dakessian Law, Ltd. regarding pursuit of refunds for sales tax paid on chemical purchases. SUMMARY BACKGROUND The District uses certain chemicals to treat wastewater. In some circumstances, the state Board of Equalization has determined that the purchase of specific chemicals used to treat wastewater may be exempt from sales tax. On September 23, 2015, the Board approved a Sole Source Agreement with the law firm of Reed Smith to perform work on a contingency basis to recover refunds for sales tax paid on chemical purchases. Since the Board approved the Agreement, OCSD has worked exclusively with attorney Marty Dakessian, a partner at Reed Smith. RELEVANT STANDARDS • Ensure that the public's money is wisely spent • Maintain a culture of improving efficiency PROBLEM Mr. Dakessian advised OCSD that he intends to leave Reed Smith to open his own law firm named Dakessian Law, Ltd. PROPOSED SOLUTION Dakessian Law, Ltd. has offered to continue to perform the work necessary to recover refunds based on the same terms previously provided. Dakessian Law, Ltd. will seek to recover the sales tax refunds on a strict contingency basis -that is, Dakessian Law, Ltd. will not receive any compensation unless and until the firm obtains a Page 1 of 2 1135342.1 determination from the Board of Equalization that the District's purchase of treatment chemicals is exempt from sales tax. If successful, Dakessian Law, Ltd. will receive 19.5% of the monies reimbursed for past tax years, and the monies saved in future tax years, up to a maximum of five past and/or future year's total. Due to Marty Dakessian's knowledge and expertise regarding California tax controversy and litigation, as well as his familiarity with the District's ongoing pursuit of refunds for sales tax paid on chemical purchases, staff recommends transferring the matter to Dakessian Law, Ltd. TIMING CONCERNS Mr. Dakessian has advised he is leaving Reed Smith no later than January 31, 2016. The Board should make a determination at its January 2016 meeting to ensure efficiency and continuity in the pursuit of sales tax refunds. RAMIFICATIONS OF NOT TAKING ACTION The Sole Source Agreement may continue with Reed Smith and the matter will be transitioned to an alternate attorney at that firm. PRIOR COMMITTEE/BOARD ACTIONS September 2015: Approved Sole Source Agreement for Tax Consulting and Advocacy Services with Reed Smith to pursue refunds for sales tax paid on wastewater treatment chemical purchases. ADDITIONAL INFORMATION From 2009 to 2014, the District paid an average of$665,561 in sales tax on the purchase of chemicals used to treat wastewater. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package: • Agreement for Tax Consulting and Advocacy Services with Dakessian Law, Ltd. Page 2 of 2 1135342.1 445 S.FIGUEROA ST. 0 1215 K STREET, SUITE 2210 DAKESSIAN LAW SUITE 1700 LOS ANGELES,CA 90071 LTD. SACRAMENTO,CA 95814 213.516.5500(0) CALIFORNIA TAX CONTROVERSY 916.307.6001(0) 213.289.4640(F) 916.604.9157(F) Mardiros H.Dakessian Direct Phone:213.516.5510 Email:marry@dakessianlaw.com AGREEMENT FOR TAX CONSULTING AND ADVOCACY SERVICES This Agreement for Tax Consulting and Advocacy Services ("Agreement") is made and entered into this day of ,2016(the"Effective Date"),by and between the Orange County Sanitation District(the"District"),a County Sanitation District organized and existing pursuant to California Health &Safety Code Section 4700 et seq,and Dakessian Law,Ltd.,a California Professional Law Corporation ("Dakessian Law"). The District and Dakessian Law are sometimes referred to herein as each"Party,"and collectively referred to as the`Parties." RECITALS A. The District regularly purchases chemicals that are used to treat wastewater at the District's two treatment plants. The District currently pays sales tax on the purchase of these chemicals. B. A portion of the District's treated effluent is discharged to the Pacific Ocean. The balance of the District's treated effluent is provided to the Orange County Water District("OCWD")for further treatment through the Groundwater Replenishment System("GWRS"). The GWRS purifies the District's effluent,transforming it into near-distilled quality water that exceeds all state and federal drinking water standards. OCWD uses the treated water,along with other sources,to replenish the large groundwater basin underlying northern and central Orange County. Ultimately,cities and water districts pump the basin's groundwater and sell it to consumers within their jurisdictions. C. The District desires to retain Dakessian Law on the terms and conditions set forth in this Agreement. AGREEMENT In consideration of the foregoing recitals and the mutual covenants contained in this Agreement, the parties agree as follows: 1. Scone of Services. On the District's behalf,Dakessian Law shall,at Dakessian Law's sole expense,(a) seek to persuade the California State Board of Equalization("BOE") that,under existing www.dakessiarflaw.com (➢ January 20, 2016 Page 2 of 5 law,the District is not obligated to pay sales tax on the purchase of chemicals used to treat wastewater; and (b) seek reimbursement of sales tax that the District has paid on the purchase of chemicals used to treat wastewater by filing refund claims with the BOE covering all past years within the applicable statute of limitations period.The scope of services does not include any litigation in the event that BOE ultimately denies the administrative claim for refund. 2. Contingency Fees. Dakessian Law will only be compensated under this Agreement if (a) Dakessian Law successfully persuades BOE that the District is not obligated to pay sales tax on the purchase of chemicals in future tax years,and/or(2)Dakessian Law obtains a refund of sales taxes paid by the District in the past. Dakessian Law will receive 19.5% of any sales taxes that are either refunded by BOE,or avoided in future years through the efforts of Dakessian Law,up to a maximum of five (5) years total. If,for example,Dakessian Law recovers $1,000 per year for each of the two past years,and the District avoids future sales taxes on the purchase of chemicals into the future indefinitely, Dakessian Law shall receive 19.5% of$5,000 ($2,000 for two past years+$3,000 for three future years). 3. No Other Fees or Costs. Dakessian Law shall not receive any compensation under this Agreement other than the contingency fees described above in paragraph 2. Dakessian Law shall not receive reimbursement for any costs incurred in performing services under this Agreement,including but not limited to travel expenses. 4. Commencement,Term,and Termination. 4.1. The term of this Agreement shall commence on the Effective Date and continue until all matters are resolved with the Board of Equalization up to a maximum of 5 years. 4.2. Dakessian Law may terminate this Agreement at any time for convenience or any other reason,by written notice to the District. 4.3. The District may terminate this Agreement at any time for convenience or any other reason,by written notice to Dakessian Law. Upon receipt of a termination notice,Dakessian Law shall immediately discontinue all work under this Agreement(unless the notice directs otherwise). 4.4. In the event that(a) the District terminates this Agreement pursuant to Section 4.3,(b)the BOE later approves a claim for refund filed and pursued by Dakessian Law,and(c) the efforts of Dakessian Law under this Agreement were instrumental to the recovery,then Dakessian Law shall be entitled to a reasonable fee in proportion to the value of the services performed by Dakessian Law and the contribution of Dakessian Law to the successful result. 5. Approval Necessary for Settlement. Dakessian Law shall not settle or compromise the District's claim for refund of taxes paid without the District's prior approval. The District shall (➢ January 20, 2016 Page 3 of 5 seriously consider any offer recommended by Dakessian Law,but the District reserves the right to accept or reject any settlement in the District's sole and absolute discretion. 6. Standards. In performing its obligations under this Agreement,Dakessian Law shall adhere to the highest fiduciary standards,ethical practices and standards of care and competence for its profession. 7. Compliance with Laws. In performing its obligations under this Agreement,Dakessian Law shall comply with all applicable Federal,State and local laws and regulations. 8. No Delegation or Assignment. Dakessian Law shall not delegate any obligations under this Agreement,nor assign any rights under this Agreement,without the prior written consent of the District. Any such attempted delegation or assignment shall be void. 9. Client. The District is Dakessian Law's sole client in this matter. Dakessian Law does not represent any affiliated persons or entities. 10. Execution and Acknowledgment of Documents. Each Party shall execute and,if appropriate,acknowledge any and all additional documents,instruments and writings which may be reasonably requested by the other Party in order to fully carry out the intent and purpose of this Agreement. 11. Independent Contractor. The relationship of Dakessian Law to the District is that of an independent contractor. Nothing herein shall be construed as creating an employment or agency relationship. Dakessian Law shall act independently and not as an officer or employee of the District. 12. No Benefits. Dakessian Law shall not be entitled to any benefits accorded to those individuals listed on the District's payroll as regular employees including,without limitation,worker's compensation,disability insurance,vacation,holiday or sick pay. Dakessian Law shall be responsible for providing,at Dakessian Law's expense,disability,worker's compensation or other insurance as well as licenses and permits usual or necessary for conducting the Services hereunder. 13. All Modifications in Writing. This Agreement may not be modified,changed or supplemented,nor may any obligations hereunder be waived or extensions of time for performance granted,except by written instrument signed by both Parties. 14. Waiver. The waiver of either Party of any breach or violation of,or default under,any provision of this Agreement,shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Agreement or default thereunder. Any breach by Dakessian Law to which the District does not object shall not operate as a waiver of the District's rights to seek remedies available to it for any subsequent breach. (➢ January 20, 2016 Page 4 of 5 15. Governing Law. This Agreement shall be governed by and interpreted under the laws of the State of California and the Parties submit to jurisdiction in Orange County,in the event any action is brought in connection with this Agreement or the performance thereof. 16. Conflicts of Interest. Dakessian Law shall at all times avoid conflicts of interest or appearance of any conflict of interest in performance of this Agreement. Dakessian Law affirms that, to the best of its knowledge,there exists no actual or potential conflict between Dakessian Law's business or financial interests and the performance of its Services under this Agreement. In the event any such conflict arises,Dakessian Law shall inform the District and take all appropriate action. 17. No Third Party Rights. Nothing in this Agreement shall be construed to give any rights or benefits to anyone other than the District and Dakessian Law. 18. Agreement Not Construed Against Either Party. The language appearing in all parts of this Agreement shall not be strictly construed for or against either Party. This Agreement has been prepared jointly by the Parties after arms-length negotiations. Any uncertainty or ambiguity contained in this Agreement shall not be interpreted or construed against either Party,but according to its fair meaning applying the applicable rules of interpretation and construction of contracts. Each Party hereby waives the benefit of any statute or rule of law or judicial decision,including without limitation California Civil Code § 1654,which would otherwise require that the provisions of this Agreement be construed or interpreted most strongly against the Party responsible for the drafting thereof. 19. Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supersedes all prior written or oral and all contemporaneous oral agreements,understandings,and negotiations between the Parties with respect to the subject matter hereof. IN WITNESS WHEREOF,the Parties hereto have hereunto set their hands the day and year indicated below. ORANGE COUNTY SANITATION DISTRICT Dated: By: Chair Board of Directors Dated: By: Clerk of the Board Approved as to Form Dated: By: General Counsel iL�) January 20, 2016 Page 5 of 5 DAKESSIAN LAW Dated: By: Mardiros H.Dakessian ITEM NO. 7 MINUTES OF THE OPERATIONS COMMITTEE Orange County Sanitation District Wednesday, January 6, 2016, 5:00 p.m. A regular meeting of the Operations Committee was called to order by Committee Chair Withers on Wednesday, January 6, 2016 at 5:01 p.m. in the Administration Building. Vice-Chair Sebourn led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Withers, Chair Jim Herberg, General Manager David Shawver, Vice-Chair Bob Ghirelli, Assistant General Manager Lisa Bartlett Nick Arhontes, Director of Facility Support Services Tom Beamish Celia Chandler, Director of Human Resources Ellery Deaton Rob Thompson, Director of Engineering Steve Jones Ed Torres, Director of Operations and Maintenance Robert Kiley Lorenzo Tyner, Director of Finance & Richard Murphy Administrative Services Steve Nagel Kelly Lore, Clerk of the Board Fred Smith Cinch Ambrose Chad Wanke Jennifer Cabral Mariellen Yarc Jim Colston John Nielsen, Board Chair Mark Esquer Greg Sebourn, Board Vice-Chair Dean Fisher Norbert Gaia COMMITTEE MEMBERS ABSENT: Al Garcia None. Kathy Millea Jeff Mohr Julian Sabri Chris Stacklin OTHERS PRESENT: Brad Hogin, General Counsel Michael Beverage, Alternate Director YLWD Bob Cotton, Alternate Director, CMSD PUBLIC COMMENTS: None. 01/06/2016 Operations Committee Minutes Page 1 of 6 REPORT OF COMMITTEE CHAIR: Committee Chair Withers did not provide a report. REPORT OF GENERAL MANAGER: General Manager, Jim Herberg notified the Committee that the Legislative and Public Affairs Committee and the Administration Committee are dark this month; GWRS Steering Committee will meet on January 11; Steering and Board Meetings will be held on January 27; and announced that ACC-OC will be touring OCSD and OCWD on January 28. He further stated that in conjunction with the Utility Branding effort, a new Agenda Report format is now in place which should increase transparency, show relevant standards, and should provide a more user friendly content. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED. SECONDED. and DULY CARRIED TO: Approve Minutes of the December 2, 2015, Operations Committee Meeting. AYES: Beamish, Deaton, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Jones, and Wanks 2. UNIFORMS AND JANITORIAL ARTICLES RENTAL SERVICE, SPECIFICATION NO. S-2015-675BD-R (Lorenzo Tyner) MOVED. SECONDED, and DULY CARRIED TO: Recommend to the Board of Directors to: A. Award Purchase Order Contract to Prudential Overall Supply for Uniform and Janitorial Articles Rental Service, Specification No. S-2015-675BD-R, for one 3-year period (04101/2016 — 03/3112019) for an amount not to exceed $493,370.28 with one 3-year renewal option; and B. Approve a contingency of$49,337 (10%). AYES: Beamish, Deaton, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Jones, and Wanks 01/06/2016 Operations Committee Minutes Page 2 of 6 3. PLANT 1 POTABLE WATER SYSTEM IMPROVEMENTS, PROJECT NO. FE09-04 (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: Approve a construction contingency increase of$25,275 (15%)to the construction contract with ODC Engineering and Technology for the Plant 1 Potable Water System Improvements, Project FE09-04, for a total construction contingency of $50,550 (30%). AYES: Beamish, Deaton, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Jones, and Wanke 4. SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the SCADA System and Network Upgrade, Project No. P2-107, for an amount not to exceed $2,818,197; and B. Approve a contingency of$281,820 (10%). AYES: Beamish, Deaton, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Jones, and Wanks 5. CHANGE ORDER TO BRENNTAG PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 (Ed Torres) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve a Change Order for an additional amount of $184,800 for 25% Caustic Soda (Sodium Hydroxide), Purchase Order Specification No. C-2013-560 with Brenntag Pacific for chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2015 through 01/06/2016 Operations Committee Minutes Page 3 of 6 June 30, 2016, for a unit price of $560.52 per dry ton (delivery and applicable sales tax included) for a total estimated annual amount of $280,000 with one remaining year of renewal; and B. Approve a (10%) unit price contingency. AYES: Beamish, Deaton, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: Bartlett, Jones, and Wanks Director Jones arrived at 5:06 p.m. Director Wanke arrived at 5:13 p.m. Director Bartlett arrived at 5:21 p.m. NON-CONSENT CALENDAR: Director of Engineering Rob Thompson provided an informative PowerPoint presentation regarding Item No. 6 which provided: project locations; traffic flow challenges; capacity and condition issues; consultant selection; scheduling and coordination with local cities and agencies. 6. REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3.64 (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Approve an increase in the project budget from $112,222,000 to $125,000,000; B. Approve a Professional Design Services Agreement with AECOM Technical Services, Inc., to provide engineering services for Rehabilitation of Western Regional Sewers, Project No. 3-64,for an amount not to exceed $17,639,250; and C. Approve a contingency of$1,763,925 (10%). AYES: Beamish, Deaton, Jones, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Wanks, Withers, and Yarc NOES: None ABSTENTIONS: Bartlett (Levine Act) ABSENT: None 01/06/2016 Operations Committee Minutes Page 4 of 6 Jason Dadakis, OCWD Director of Health & Regulatory Affairs spoke In support of Item 7. Environmental Compliance Manager, Jim Colston introduced Item No. 7 and provided a PowerPoint Presentation which highlighted the major changes to the Ordinance. He stated that agency partners and permittees had been notified and were given the opportunity to participate in a workshop and comment on the proposed changes. Mr. Colston then answered questioned from the Committee regarding: written appeal process to the Steering Committee; waste hauler sampling; due process restrictions; and emergency suspension processes. General Counsel, Brad Hogin stated that a few changes will be made to the proposed Ordinance, prior to first reading, which will be provided by a reclined version to the Board. 7. PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-XX (Rob Thompson) MOVED. SECONDED. and DULY CARRIED TO: Recommend to the Board of Directors to: A. Introduce Ordinance No. OCSD-XX, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Wastewater Discharge Regulations, Revising Articles 1 through 8, and repealing Ordinance No. OCSD-39" for first reading at the January 27, 2016 Board meeting'; and B. Motion to read Ordinance No. OCSD-XX by title only and waive reading of said entire Ordinance on January 27, 2016; and C. Set February 24, 2016, as the date for the second reading and adoption of Ordinance No. OCSD-XX; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. AYES: Bartlett, Beamish, Deaton, Jones, Kiley, Nagel, Nielsen, Murphy, Sebourn, Shawver, Smith, F., Wanke,Withers, and Yarc NOES: None ABSTENTIONS: None ABSENT: None INFORMATION ITEMS: None. 01/06/2016 Operations Committee Minutes Page 5 of 6 DEPARTMENT HEAD REPORTS: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT At 5:58 p.m., Committee Chair Withers declared the meeting adjourned to the next scheduled meeting of Wednesday, February 3, 2016 at 5:00 p.m. Submitted by, Kelly A. Lore Clerk of the Board 01/06/2016 Operations Committee Minutes Page 6 of 6 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 01/06/16 O1/27/16 AGENDA REPORT IbunNamber Item Number z a Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: UNIFORMS AND JANITORIAL ARTICLES RENTAL SERVICE, SPECIFICATION NO. S-2015-675BD-R GENERAL MANAGER'S RECOMMENDATION A. Award Purchase Order Contract to Prudential Overall Supply for Uniform and Janitorial Articles Rental Service, Specification No. S-2015-675BD-R, for one 3-year period (4/1/2016 — 3/31/19) for an amount not to exceed $493,370.28 with one 3-year renewal option; and B. Approve a contingency of$49,337 (10%). SUMMARY BACKGROUND OCSD staff involved in the collection and treatment of wastewater are provided with uniforms to maintain a professional appearance, to satisfy OSHA safety requirements, and to protect the employees from exposure to contaminated and unpleasant materials. Uniforms are also required in accordance with the Sanitation District's Memorandums of Understanding (MOUs). OCSD staff is recommending incorporating high visibility material in the uniforms. This change provides additional garment cleanliness as these uniforms will be cleaned on a regular basis, unlike the vests that were worn over the old uniforms, and an additional safety benefit as the elimination of the vests reduce the possibility of a loose vest being snagged or pulled by equipment. RELEVANT STANDARDS • Compliance with OCSD's MOUs • Compliance with Cal/OSHA safety requirements • Compliance with National Fire Prevention Association (NFPA)2112 and American Society for Testing and Materials (ASTM) D 6413 Page 1 of 3 PROBLEM OCSD had employees wearing high visibility vest over their issued uniforms. The vest had to be replaced on a frequent basis due to wear. The vest could pose a hazard around rotating equipment. PROPOSED SOLUTION As a cost saving initiative, incorporate the reflective material of the vest into the uniform shirts. This would resolve the issue of the vest needing to be replaced due to wear, since the uniforms would be maintained under the contract. This would also eliminate the potential hazard of the vest becoming entangled around rotating equipment. TIMING CONCERNS A new purchase order contract must be in place before the current purchase order bridge contract expires on March 31, 2016. The vendor will need four weeks prior to expiration to prepare the new uniforms. RAMIFICATIONS OF NOT TAKING ACTION OCSD would not be adhering to MOUs and would need to continue to provide a uniform and vest for employees to wear. PRIOR COMMITTEE/BOARD ACTIONS Aug - 2015: Original Specification S-2015-675 purchase order contract with Prudential Overall Supply was approved. Decision to re-bid due to changes in scope requirements. ADDITIONAL INFORMATION In accordance with Purchasing Ordinance No. OCSD-47, OCSD selected a 2-step bidding process which included a Request for Qualifications (RFQ) and a Notice Inviting Bids (NIB). One bid was received from a qualified firm, Prudential Overall Supply. Prudential Overall Supply was deemed responsive and responsible. Prospective bidder, Mission Linen Supply, was deemed non-responsive due to an incomplete submittal. Mission Linen Supply did not comply by providing a correct sample of a full work uniform set with reflective striping, as described in Attachment A Scope of Work. The award to the lowest responsive and responsible bidder is recommended to Prudential Overall Supply. The results of the bid process are shown in Table 1. Page 2 of 3 TABLE 1 BID EVALUATION Prudential Overall Bid Results Supply Ranking 1 Bid Price for one $493,370.28 3-ye r period CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Section 5, Page 6). ATTACHMENT N/A LT:MD:AS:hh Page 3 of 3 OPERATIONS COMMITTEE Meedngflale TOBd.0111M. 01/06/16 O1/27/16 AGENDA REPORT em 3 mbe Item Number 3 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: PLANT 1 POTABLE WATER SYSTEM IMPROVEMENTS, PROJECT NO. FE09-04 GENERAL MANAGER'S RECOMMENDATION Approve a construction contingency increase of $25,275 (15%) to the construction contract with ODC Engineering and Technology for the Plant 1 Potable Water System Improvements, Project FE09-04, for a total construction contingency of$50,550 (30%). SUMMARY BACKGROUND The potable water system at Plant No. 1 has a number of flow and pressure capacity constraints that impact operations and could limit flows available to fight a fire. This project will enhance the reliability and fire flows of the potable water system, create a "looped" water system, improve service to the Maintenance Shop areas, and enhance the reliability and fire flows of the potable water system. The work includes installing new pipe, valves, and control valves in various locations. A majority of the pipe tie-in points are buried. RELEVANT STANDARDS • 24/7/365 treatment plant reliability • Ensure that the public's money is wisely spent • Maintain a proactive Asset Management Program PROBLEM The project included many underground piping tie-ins. The record drawings did not indicate the exact location of the existing pipes. The bid documents included an allowance for unknown conditions, but that allowance and the authorized contingency is not sufficient to cover the unknown conditions actually encountered. PROPOSED SOLUTION Authorize additional contingency to cover the costs to complete the work. Page 1 of 2 TIMING CONCERNS The project is scheduled to be completed in May 2016. Construction is 80% complete. There is a potential that additional changes could delay the project because the Contractor would have to demobilize until the Orange County Sanitation District (Sanitation District) could authorize additional funds. RAMIFICATIONS OF NOT TAKING ACTION If the construction contingency is not increased, then issues found during remaining construction will not be implemented and a new project would have to address the issue. The cost of addressing these issues in a separate project would be much higher. PRIOR COMMITTEE/BOARD ACTIONS April 2015 — Awarded a construction contract to CDC Engineering and Technology for Plant 1 Potable Water System Improvements, Project No. FE09-04, for an amount not to exceed $168,500, and approved a contingency of$25,275 (15%). ADDITIONAL INFORMATION The Contractor will complete the additional work without compensation for the additional time impact to the project. The cost of that new project would be much more than the cost of the contingency. The project would also be completed sooner. CECIA A Notice of Exemption was filed and recorded with the County of Orange on July 2, 2014. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Budget Update FY2015-16, Section A-11). Project contingency funds will be used for this construction contingency increase. Date of Auuroval Contract Amount Contingency 04/22/15 $168,500 $25,275(15%) 01/27/16 $25,275(15%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (11 .ocsd.conf with the complete agenda package: N/A RB:dm:gc Page 2 of 2 OPERATIONS COMMITTEE Meedngflale TOBd.0111M. 01/06/16 O1/27/16 AGENDA REPORT em 4 mbe Item Number 4 10 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: SCADA SYSTEM AND NETWORK UPGRADES, PROJECT NO. P2-107 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Brown & Caldwell to provide engineering design services for the SCADA System and Network Upgrade, Project No. P2-107, for an amount not to exceed $2,818,197; and B. Approve a contingency of$281,820 (10%). SUMMARY BACKGROUND This project will implement a power monitoring and control system at Plant No. 2, similar to the system installed under Project No. J-33-3 at Plant No. 1. The power monitoring and control system plays a critical part in maintaining power supply by remotely monitoring the plant electrical systems and providing devices at the electrical panels that allow for remote operation of the switches. An extensive network of fiber optic cables has been installed over the years at Plant No. 2 to connect a system of programmable logic controllers that are essential for monitoring, control, and maintenance of the plant processes. Without the communications, operators must directly observe every process, which is not practical with normal staffing levels. RELEVANT STANDARDS Provide a safe workplace . 24/7/365 treatment plant reliability Maintain a culture of improving efficiency CA Government Code Section 4526: Select the "best qualified firm" and "negotiate fair and equitable fees" Page 1 of 4 PROBLEM In the event of a power outage or equipment malfunction, plant operators specifically trained in accessing live electrical panels must manually reset power distribution switches. Safety standards require that only suitably qualified staff be allowed to operate the switches and that when doing so they must don protective equipment to protect against electrical arc flash and arc blast. The current configuration of the fiber optic network includes a number of critical points where a single failure would cause the entire system to fail. If it were to fail, there would be an increased risk of process failure and violation of discharge requirements. PROPOSED SOLUTION Remote actuators and monitors will be provided for 12kV and 480V distribution switches. Software will be developed to remotely monitor and control these switches. For normal power switching or in the event of a fault condition, staff will be able to respond quickly via remote control panels which maintains a safe operating distance from live electrical panels to avoid arc flash risks. The fiber optic network will be reconfigured so that there is no single failure that would cause the entire network to fail to increase operating resiliency. TIMING CONCERNS The schedule driver for this project is to lower the safety and reliability risks associated with power distribution and to improve the resiliency of the fiber optic system communication infrastructure. RAMIFICATIONS OF NOT TAKING ACTION • Increased safety risk • Longer response time in reacting to electrical fault conditions • Less reliable plant control system PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Reauest for Proposal: A Request for Proposal which describes the Consultant's Scope of Work required for this project was advertised on September 9, 2015. Page 2 of 4 Proposals were received on October 15, 2015 from three firms: MWH Americas, Inc.; Brown & Caldwell; and Laramore, Douglas, and Popham. A Staff Evaluation Committee consisting of five representatives from the Engineering and Operations and Maintenance Departments reviewed and ranked each of the proposals in accordance with the evaluation process set forth in the Orange County Sanitation District (Sanitation District) Board of Directors' Ordinance No. OCSD47. An additional representative from the Contracts Administration Division participated in the evaluation process as a non- voting member. The proposals were evaluated according to: (1) project understanding and approach; (2) related project experience; and (3) project team and staff qualifications. After reviewing and scoring the proposals, the Evaluation Committee interviewed the two top-ranked firms to meet the proposed key team and further evaluate the firms' qualifications. The proposal from the third-ranked firm was scored considerably lower. As a result, it was agreed to not interview the team from Laramore, Douglas, and Popham. Based on their review of the proposals and the interviews, the Evaluation Committee unanimously ranked Brown & Caldwell as the most qualified firm as shown in Table 1. TABLE 1 CONSULTANT EVALUATION* Consultant Evaluator Brown & MWH LDP Caldwell Reviewer A 1 2 3 Reviewer B 1 2 3 Reviewer C 1 2 3 Reviewer D 1 2 3 Reviewer E 1 2 3 Overall Ranking 1 2 3 Proposal Fee $3,381,120 NA NA Negotiated Fee Proposal $2,818,197 NA NA 'Based on scores after interview Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with Sanitation District Ordinance No. OCSD47, the fee proposal of only the highest ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with Brown & Caldwell to clarify the requirements of the Scope of Work, the assumptions to be used for the estimated level of effort, and the level of design detail required to meet the goals and objectives for the project. Page 3 of 4 In evaluating whether the fee proposal was fair and reasonable, the following factors were considered: • The estimated level of effort was evaluated in detail for each phase, task, and subtask, and found to be justified by the needs of the project, the agreed-upon assumptions, and the Sanitation District's expectation for the quality of services. • The total fee expressed as a percentage of construction cost is 18%, which is reasonable and appropriate due to the highly complex nature of the project, which requires a high level of design documentation to minimize construction risk and change orders. • The Consultant's fringe and overhead costs, which factor into the billing rate is consistent with other similar agreements. The contract profit is 5%, which is based on the Sanitation District's standard design agreements. Based on the above, staff determined the final cost proposal to be fair, reasonable, and appropriate and recommends awarding a PDSA to Brown & Caldwell. CEQA Notice of Exemption was filed on November 5, 2015. FINANCIAL CONSIDERATIONS This request complies with the authority levels in the Sanitation District's Purchasing Ordinance. This item has been budgeted (Line item: Budget Update FY 2015-16, Section A-9) and the project budget is sufficient for the recommended action. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (ij .ocsd.corn with the complete agenda package: Professional Design Services Agreement DC:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27U day of January, 2016, 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 for Plant 2 Power Monitoring and Control Systems, Project No. P2.107; which will be performed at Plant 2 to provide monitoring and control the switchgear breakers, monitor and control automatic transfer switches (ATS), and monitor the status and alarms of switchgear and standby generator battery chargers, high resistance grounding, standby generators, standby generator fuel tanks, standby generator day tanks, 12.47-kV to 4160-volt or 480-volt transformers, and uninterruptible power supplies (UPS). In addition, the project will replace the existing fiber-optic network system with a new industrial control system that provides three fiber-optic loops throughout the plant for added redundancy; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on January 27, 2016 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 1 of 19 B. CONSULTANT is responsible for the quality of its work prepared under this Agreement and shall perform its work in accordance with engineering standards in effect for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of Thirty(30) calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 2 of 19 F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that (a)was publicly known, or otherwise known to 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 Two Million Eight Hundred Eighteen Thousand One Hundred and Ninety-Seven Dollars ($2,818,197). Total compensation to CONSULTANT including burdened labor (salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E" - Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and 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 PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 3 of 19 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 Suboonsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan' as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem' component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at htti)://www.gsa.gov/portal/category/l 04711#. 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 PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 4 of 19 most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem' as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. H. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 5 of 19 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent(100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 -COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 6 of 19 work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq, CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 7 of 19 B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 8 of 19 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: One Million Dollars ($1,000,000) per occurrence with One Million Dollars ($1,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. Automotive/Vehicle 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. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 9 of 19 E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Three Million Dollars ($3,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 10 of 19 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 review copies of required insurance policies, including endorsements (with proprietary information redacted) effecting the coverage required, at a mutually convenient time in CONSULTANT's local office. The following are approved forms that must be submitted as proof of coverage: • Certificate of Insurance ACORD Form 25 (512010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 1001 and CG 2037 1001 or The combination of(ISO Forms) CG 2010 0704 and CG 2037 0704 or equivalent All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The policy shall not terminate, nor shall be cancelled 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. I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 11 of 19 K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies except for 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. N. Subconsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Nothing in this section, however, requires CONSULTANT in the absence of litigation to reveal its Errors & omissions/Professional Liability limits beyond that required above in other sections. 8. SCOPECHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 12 of 19 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 Suboonsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultanl on a per-project-element basis, broken down as indicated in Section 2- COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's request, the CONSULTANT shall submit exact duplicates of originals of all requested records to the SANITATION DISTRICT. If an audit is performed, CONSULTANT shall ensure that a qualified employee of the CONSULTANT will PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 13 of 19 be available to assist SANITATION DISTRICT's auditor in obtaining all project related accounting records and documents, and any other financial data. 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: Jay Kaura, Contracts Administrator Copy: Donald W. Cutler, Project Manager Notices shall be mailed to CONSULTANT at: BROWN and CALDWELL 18200 Von Karmen Avenue Suite 400 Irvine, CA 92612 Attention: Marc Damikolas, PE, Principle-in-Charge Copy: Bryan Zinn, PE, 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. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 14 of 19 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 20. PROGRESS REPORTS Monthly progress reports shall be submitted for review by the tenth day of the following month and must include as a minimum: 1) current activities, 2)future activities, 3) potential items that are not included in the Scope of Work, 4) concerns and possible delays, 5) percentage of completion, and 6) budget status. 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 15 of 19 by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT's liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT's indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 16 of 19 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH OCSD POLICIES AND PROCEDURES CONSULTANT shall be required to comply with all OCSD policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30)days of receipt of notice of Agreement closeout. Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 17 of 19 ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: BROWN and CALDWELL By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Kelly A. Lore Clerk of the Board Date By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A' Scope of Work Attachment"B" Labor Hour Matrix Attachment"C" Not Attached Attachment"D" Allowable Direct Costs Attachment"E" Fee Proposal Attachment"F" Not Attached Attachment"G" Not Attached Attachment"H" Not Attached Attachment"I" Cost Matrix and Summary Attachment"J" Not Attached Attachment X' Note Used Attachment"L" OCSD Safety Standards JSK:yp PDSA PROJECT NO.P2-107 Revised 052715 PLANT 2 POWER MONITORING AND CONTROL SYSTEMS Page 19 of 19 OPERATIONS COMMITTEE Meeting Date TOBd.of Dir. 01/06/16 O1/27/16 AGENDA REPORT rem Number Item Number s 11 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CHANGE ORDER TO BRENNTAG PACIFIC CAUSTIC SODA SPECIFICATION NO. C-2013-560 GENERAL MANAGER'S RECOMMENDATION A. Approve a Change Order for an additional amount of $184,800 for 25% Caustic Soda (Sodium Hydroxide), Purchase Order Specification No. C-2013-560 with Brenntag Pacific for chemical scrubbers at both Plant No. 1 and Plant No. 2, for the period of July 1, 2015 through June 30, 2016, for a unit price of$560.52 per dry ton (delivery and applicable sales tax included) for a total estimated annual amount of $280,000 with one remaining year of renewal; and B. Approve a (10%) unit price contingency. SUMMARY RELEVANT STANDARDS • Zero odor incidents/events under normal operating conditions for Plants 1 and 2 • Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise and lighting PROBLEM The planned fiscal year budget for 25% caustic soda has been nearly depleted due to additional usage encountered during July through December 2015. A change order to the existing Purchase Order (104818-OB) is required to maintain inventories for the remainder of the fiscal year. PROPOSED SOLUTION Approve the Change Order to maintain Plants No. 1 and No. 2 Caustic Soda inventories at required levels to ensure normal operating parameters, mitigate odor, and uphold OCSD Levels of Service. Page 1 of 2 TIMING CONCERNS The Plant 1 trunkline bioscrubbers will be out of operation for construction in 2016. The construction is expected to take one year.The use of caustic soda, in addition to bleach at all the Headworks scrubbers is essential to maintain continued Levels of Service. RAMIFICATIONS OF NOT TAKING ACTION Shortage(s) in available Caustic Soda will impede curability to mitigate the odor around the Plants. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Original funding for FY 2015/16 Caustic Soda Purchase Order was $95,200. However, due to bleach chemical tank damages in 2015 and Plant No. 1 trunkline bioscrubbers construction in 2016, caustic soda is being consumed at an accelerated rate. Staff is requesting an additional $184,800 be added to the Purchase Order No. 104818-OB to provide adequate volumes of caustic soda to mitigate odor for the remainder of the fiscal year. CEQA N/A FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. Date of Aooroval ContractAmount Contingency Annual Budget $ 95,200 01/06/2016 Change Order $ 184,800 (10%)Unit Price ATTACHMENT The following attachments)may be viewed on-line at the OCSD website(www.ocsd.com)with the complete agenda package: N/A Page 2 of 2 OPERATIONS COMMITTEE MeedngDale TOBd.0111M. 01/06/16 O1/27/16 AGENDA REPORT em 6mbe Item Number 6 12 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: REHABILITATION OF WESTERN REGIONAL SEWERS, PROJECT NO. 3-64 GENERAL MANAGER'S RECOMMENDATION A. Approve an increase in the project budget from $112,222,000 to $125,000,000; B. Approve a Professional Design Services Agreement with AECOM Technical Services, Inc., to provide engineering services for Rehabilitation of Western Regional Sewers, Project No. 3-64, for an amount not to exceed $17,639,250; and C. Approve a contingency of$1,763,925 (10%). SUMMARY BACKGROUND The Orange County Sanitation District (Sanitation District) owns and maintains regional conveyance facilities in the Cities of Los Alamitos, Cypress, La Palma, Buena Park, Anaheim, Seal Beach, and Rossmoor, an unincorporated area of the County of Orange. The facilities include the Orange Western Subtrunk, Los Alamitos Subtrunk, West Side Relief Interceptor, Seal Beach Interceptor, and the Westside Pump Station. Many of the sewers range in age from 40 to 60 years and require mid-life refurbishment to attain their full service life. RELEVANT STANDARDS Operate and maintain facilities to minimize impacts on surrounding communities, including odor, noise, and lighting. 24/7/365 treatment plant reliability. Less than 2.1 sanitary sewer spills per 100 miles. CA Government Code 4526: Select the "best qualified firm" and "negotiate fair and equitable fees". PROBLEM Nearly 17 miles of sewers in the northwest corner of the Sanitation District's service area require rehabilitation or replacement. Many segments of the sewers are badly Page 1 of 4 in need of rehabilitation or replacement due to calcium blockage, structural deterioration, and groundwater infiltration. Other segments are undersized. The West Side Pump Station wet well and force main are also corroded. The Budget Update for Fiscal Year 2015-2016 approved a budget of$112,222,000 for this project. Upon further development of the project scope and schedule, staff now estimates a total project cost of$125,000,000. PROPOSED SOLUTION This project will remove calcium deposits inside the sewer pipes that currently restrict flow and prevent cleaning of some sewer segments. Deteriorated pipes and manholes will be lined or replaced to reduce inflow and infiltration and to protect against further corrosion. Several segments of the sewers will be replaced with larger diameter pipes to carry more flow. The project will replace the Westside Pump Station wet well, line its force-main, and install an odor treatment facility. TIMING CONCERNS The schedule driver of this project is to resolve the safety and reliability risks associated with deteriorated and under-capacity facilities to reduce the risks of spills and structural failures. RAMIFICATIONS OF NOT TAKING ACTION • Potential for wastewater spills in public streets with associated fines • Difficulty or inability to clean and maintain sewers • Non-compliance with Waste Discharge Requirements PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION Reauest for Proposal: A Request for Proposal which describes the Consultant's Scope of Work required for the project was advertised on September 1, 2015. Proposals were received on October 29, 2015 from four firms: AECOM Technical Services, Inc.; HDR; Tetra Tech; and Dudek. A Staff Evaluation Committee consisting of five representatives from the Engineering Department reviewed and ranked each of the proposals in accordance with the evaluation process set forth in Sanitation District Board of Directors' Ordinance No. OCSD47. An additional representative from the Contracts Administration Division participated in the evaluation process as a non-voting member. The proposals were evaluated according to: (1) project understanding and Page 2 of 4 approach; (2) applicable related project experience; and (3) project team and staff qualifications. The Evaluation Committee reviewed the proposals and short-listed the top two firms to meet the key team members and further evaluate the firms' qualifications. Pursuant to the results of the interview, the Evaluation Committee selected AECOM Technical Services, Inc. as the top-ranked firm as shown in Table 1. TABLE 1 PROPOSAL EVALUATION* Consultant Evaluator AECOM HDR Reviewer A 1 2 Reviewer B 1 2 Reviewer C 1 2 Reviewer D 1 2 Reviewer E 1 2 Overall Ranking 1 2 Proposal Fee $20,425,994 - Negotiated Fee Proposal $17,639,250 - * Based on scores after interview Review of Fee Proposal and Negotiations: Proposals were accompanied by sealed fee proposals. In accordance with Sanitation District Ordinance No. OCSD 47, the fee proposal of only the highest ranked firm was opened after approval by the Director of Engineering of the Evaluation Committee's recommendation. Staff conducted negotiations with AECOM Technical Services, Inc. to clarify the requirements of the Scope of Work, the assumptions to be used for the estimated level of effort, and the level of design detail required to meet the goals and objectives for the project. In evaluating whether the fee proposal was fair and reasonable, the following factors were considered: • The estimated level of effort was evaluated in detail for each phase, task and subtask, and found to be justified by the needs of the project, the agreed upon assumptions, and the Sanitation District's expectation for the quality of services. • The consultant's fringe and overhead costs, which factor into the billing rate is reasonable and lower than other similar agreements. The contract profit is 5%, which is based on the Sanitation District's standard design agreements. Staff is applying lessons learned on recent collections system projects with relatively high change order rates. This scope of work includes a more thorough level of effort compared to prior engineering contracts for buried utility location services, soils Page 3 of 4 investigation, and management of traffic impacts. This increased effort is necessary to minimize risks related to unknown conditions and to avoid the impact those risks would pose to residents, businesses, and the traveling public. This project is spread over 17 miles of highly variable road conditions, soil and drainage conditions, with buried natural gas, electricity, water, storm drains, telephones, cable television, and the internet utilities. This additional engineering effort should result in more competitive bids, fewer change orders during construction, and fewer delays and community impacts. Based on the above, staff has determined that the final negotiated fee is fair and reasonable for the level of effort required for this project and recommends award of the PDSA to AECOM Technical Services, Inc. CEQA An environmental impact report is currently being prepared for this project and scheduled to be completed and certified by July 2016. FINANCIAL CONSIDERATIONS This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted (Line item: Budget Update FY2015-16, Page A-7), and the budget is sufficient to award this contract. However, staff estimates that the total cost to complete the project will be greater than the approved budget, and an increase from $112,222,000 to $125,000,000 is requested. The additional $12,778,000 is recommended to be moved from the Replacement, Rehabilitation, and Refurbishment allocation shown on Line Item 14 of the Consolidated Cash Flow Projections in the Budget Update FY2015-16, Page A-3. ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (i w .ocsd.corn with the complete agenda package: • Professional Design Services Agreement • PowerPoint presentation at Operations Committee 01/06/16 JM:dm:gc Page 4 of 4 PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27U day of January, 2016, by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and AECOM Technical Services, Inc., for purposes of this Agreement hereinafter referred to as "CONSULTANT". WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide Design services for Rehabilitation of Western Regional Sewers, Project No. 3-64; and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on January 27, 2016, the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee pursuant to SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-47 to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 1 of 19 deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) C. In the event that work is not performed to the satisfaction of the SANITATION DISTRICT and does not conform to the requirements of this Agreement or any applicable industry standards, the CONSULTANT shall, without additional compensation, promptly correct or revise any errors or deficiencies in its designs, drawings, specifications, or other services within the timeframe specified by the Project Engineer/Project Manager. The SANITATION DISTRICT may charge to CONSULTANT all costs, expenses and damages associated with any such corrections or revisions. D. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of 56 (fifty-six) calendar days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. E. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. F. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 2 of 19 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 Seventeen Million, Six Hundred Thirty-Nine Thousand, Two Hundred Fifty Dollars ($17,639,250). Total compensation to CONSULTANT including burdened labor(salaries plus benefits), overhead, profit, direct costs, and Subconsultant(s)fees and costs shall not exceed the sum set forth in Attachment"E"- Fee Proposal. B. Labor As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits)actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. Overhead As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT and Subconsultants for overhead at the rate equal to the percentage of burdened labor as specified in Attachment"E"- Fee Proposal. D. Profit Profit for CONSULTANT and Subconsultants shall be a percentage of consulting services fees (Burdened Labor and Overhead). When the consulting or subconsulting services amount is $250,000 or less, the maximum Profit shall be 10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by a straight declining percentage between 10% and 5%. For consulting or subconsulting services fees with a value greater than $2,500,000, the maximum Profit shall be 5%. Addenda shall be governed by the same maximum Profit percentage after adding consulting services fees. As a portion of the total compensation to be paid to CONSULTANT and Subconsultants, the SANITATION DISTRICT shall pay profit for all services PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 3 of 19 rendered by CONSULTANT and Subconsultants for this project according to Attachment"E"- Fee Proposal. E. Subconsultants For any Subconsultant whose fees for services are greater than or equal to $100,000 (excluding out-of-pocket costs), CONSULTANT shall pay to Subconsultant total compensation in accordance with the Subconsultant amount specified in Attachment"E"- Fee Proposal. For any Subconsultant whose fees for services are less than $100,000, CONSULTANT may pay to Subconsultant total compensation on an hourly-rate basis per the attached hourly rate Schedule and as specified in the Scope of Work. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges in an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. F. Direct Costs The SANITATION DISTRICT shall pay to CONSULTANT and Subconsultants the actual costs of permits and associated fees, travel and licenses for an amount not to exceed the sum set forth in Attachment"E"- Fee Proposal. The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts, see Attachment"D"-Allowable Direct Costs. All incidental expenses shall be included in overhead pursuant to Section 2 -COMPENSATION above. G. Other Direct Costs Other Direct Costs incurred by CONSULTANT and its Contractor due to modifications in scope of work resulting from field investigations and field work required by Contract. These items may include special equipment, test equipment and tooling and other materials and services not previously identified. Refer to attachment"D"Allowable Direct Costs for payment information. H. Reimbursable Direct Costs The SANITATION DISTRICT will reimburse the CONSULTANT for reasonable travel and business expenses as described in this section and further described in Attachment"D"-Allowable Direct Costs to this Agreement. The reimbursement of the above mentioned expenses will be based on an "accountable plan' as considered by Internal Revenue Service (IRS). The plan includes a combination of reimbursements based upon receipts and a "per diem" component approved by IRS. The most recent schedule of the per diem rates utilized by the SANITATION DISTRICT can be found on the U.S. General Service Administration website at htto://www.asa.aov/portal/catecorv/104711#. PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 4 of 19 The CONSULTANT shall be responsible for the most economical and practical means of management of reimbursable costs inclusive but not limited to travel, lodging and meals arrangements. The SANITATION DISTRICT shall apply the most economic and practical method of reimbursement which may include reimbursements based upon receipts and/or"per diem' as deemed the most practical. CONSULTANT shall be responsible for returning to the SANITATION DISTRICT any excess reimbursements after the reimbursement has been paid by the SANITATION DISTRICT. Travel and travel arrangements—Any travel involving airfare, overnight stays or multiple day attendance must be approved by the SANITATION DISTRICT in advance. Local Travel is considered travel by the CONSULTANT within the SANITATION DISTRICT general geographical area which includes Orange, Los Angeles, Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties. Automobile mileage is reimbursable if CONSULTANT is required to utilize personal vehicle for local travel. Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for local travel. However, under certain circumstances overnight stay may be allowed at the discretion of the SANITATION DISTRICT based on reasonableness of meeting schedules and the amount of time required for travel by the CONSULTANT. Such determination will be made on a case-by-case basis and at the discretion of the SANITATION DISTRICT. Travel Meals— Per-diem rates as approved by IRS shall be utilized for travel meals reimbursements. Per Diem rates shall be applied to meals that are appropriate for travel times. Receipts are not required for the approved meals. Additional details related to the reimbursement of the allowable direct costs are provided in the Attachment"D"-Allowable Direct Costs of this Agreement. I. Limitation of Costs If, at any time, CONSULTANT estimates the cost of performing the services described in CONSULTANT's Proposal will exceed seventy-five percent (75%) of the not-to-exceed amount of the Agreement, including approved additional compensation, CONSULTANT shall notify the SANITATION DISTRICT immediately, and in writing. This written notice shall indicate the additional amount necessary to complete the services. Any cost incurred in excess of the approved not-to-exceed amount, without the express written consent of the SANITATION DISTRICT's authorized representative shall be at CONSULTANT's own risk. This written notice shall be provided separately from, and in addition to any notification requirements contained in the CONSULTANT's invoice and monthly progress report. Failure to notify the SANITATION DISTRICT that the services cannot be completed within the authorized not-to-exceed amount is a material breach of this Agreement. PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 5 of 19 3. REALLOCATION OF TOTAL COMPENSATION The SANITATION DISTRICT, by its Director of Engineering, shall have the right to approve a reallocation of the incremental amounts constituting the total compensation, provided that the total compensation is not increased. 4. PAYMENT A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed breakdown of costs associated with the performance of any corrections or revisions of the work for that invoicing period. CONSULTANT shall allocate costs in the same manner as it would for payment requests as described in this Section of the Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 11 -AUDIT PROVISIONS. B. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2- COMPENSATION hereof in the format as required by the SANITATION DISTRICT. Such requests shall be based upon the amount and value of the work and services performed by CONSULTANT under this Agreement and shall be prepared by CONSULTANT and accompanied by such supporting data, including a detailed breakdown of all costs incurred and project element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent(100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. C. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Section 2 -COMPENSATION above. Said profit payment request shall be proportionate to the work actually accomplished to date on a per-project-element basis. In the event the SANITATION DISTRICT's Director of Engineering determines that no satisfactory progress has been made since the prior payment, or in the event of a delay in the PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 6 of 19 work progress for any reason, the SANITATION DISTRICT shall have the right to withhold any scheduled proportionate profit payment. D. Upon satisfactory completion by CONSULTANT of the work called for under the terms of this Agreement, and upon acceptance of such work by the SANITATION DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for such work, including any retained percentages relating to this portion of the work. E. Upon satisfactory completion of the work performed hereunder and prior to final payment under this Agreement for such work, or prior settlement upon termination of this Agreement, and as a condition precedent thereto, CONSULTANT shall execute and deliver to the SANITATION DISTRICT a release of all claims against the SANITATION DISTRICT arising under or by virtue of this Agreement other than such claims, if any, as may be specifically exempted by CONSULTANT from the operation of the release in stated amounts to be set forth therein. F. Pursuant to the California False Claims Act(Government Code Sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a ten thousand dollars ($10,000) civil penalty for each false claim submitted. This Section shall also be binding on all Subconsultants. A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c) conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 5. CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS (DIR) REGISTRATION AND RECORD OF WAGES A. To the extent CONSULTANT's employees and/or Subconsultants who will perform Work during the design and preconstruction phases of a construction contract for which Prevailing Wage Determinations have been issued by the DIR and as more specifically defined under Labor Code Section 1720 at seq., CONSULTANT and Subconsultants shall comply with the registration requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring and enforcement by the DIR. B. The CONSULTANT and Subconsultants shall maintain accurate payroll records and shall comply with all the provisions of Labor Code Section 1776, and shall PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 7 of 19 submit payroll records to the Labor Commissioner pursuant to Labor Code Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may be deducted from progress payments per Section 1776. C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants shall furnish a copy of all certified payroll records to SANITATION DISTRICT and/or general public upon request, provided the public request is made through SANITATION DISTRICT, the Division of Apprenticeship Standards or the Division of Labor Enforcement of the Department of Industrial Relations. D. The CONSULTANT and Subconsultants shall comply with the job site notices posting requirements established by the Labor Commissioner per Title 8, California Code of Regulation Section 16461(e). 6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS A. Ownership of Documents for the Professional Services performed. All documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of Work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate Cause of the damage. 7. INSURANCE A. General i. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Worker's Compensation Insurance subject to the SANITATION DISTRICT's option to PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 8 of 19 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, Two Million Dollars ($2,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability(for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) and Riggers/On Hook Liability must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liability The minimum limits of general liability and Automotive Liability Insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. AutomotiveNehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit: 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. PDSA PROJECT NO. 3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 9 of 19 E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF" and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. If an exposure to Jones Act liability may exist, the insurance required herein shall include coverage for Jones Act claims. F. Errors and Omissions/Professional Liability CONSULTANT shall maintain in full force and effect, throughout the term of this Agreement, standard industry form professional negligence errors and omissions insurance coverage in an amount of not less than Five Million Dollars ($5,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5) years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10)days prior to the expiration of each policy term. G. Proof of Coverage The CONSULTANT shall furnish the SANITATION DISTRICT with original certificates and amendatory endorsements effecting coverage. Said policies and PDSA PROJECT NO.3-64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 10 of 19 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 (512010)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25 (5/2010)shall state the required thirty (30) days' written notification. The policy shall not terminate, nor shall it be cancelled, nor the coverage reduced until thirty(30) days after written notice is given to the SANITATION DISTRICT except for nonpayment of premium, which shall require not less than ten (10) days written notice to the SANITATION DISTRICT. Should there be changes in coverage or an increase in deductible or SIR amounts, the CONSULTANT and its insurance broker/agent shall send to the SANITATION DISTRICT a certified letter which includes a description of the changes in coverage and/or any increase in deductible or SIR amounts. The certified letter must be sent to the attention of Risk Management, Div. 260, and shall be received by the SANITATION DISTRICT not less than thirty (30)days prior to the effective date of the change(s) if the change would reduce coverage or increase deductibles or SIR amounts or otherwise reduce or limit the scope of insurance coverage provided to the SANITATION DISTRICT. PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 11 of 19 I. Primary Insurance All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by the SANITATION DISTRICT shall be excess and not contributing with the insurance provided by CONSULTANT. J. Separation of Insured All liability policies shall contain a "Separation of Insureds" clause. K. Non-Limiting (if applicable) Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in this Agreement, or the extent to which CONSULTANT may be held responsible for payment of damages to persons or property. L. Deductibles and Self-Insured Retentions Any deductible and/or self-insured retention must be declared to the SANITATION DISTRICT on the Certificate of Insurance. All deductibles and/or self-insured retentions require approval by the SANITATION DISTRICT. At the option of the SANITATION DISTRICT, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects the SANITATION DISTRICT; or the CONSULTANT shall provide a financial guarantee satisfactory to the SANITATION DISTRICT guaranteeing payment of losses and related investigations, claim administration and defense expenses. M. Defense Costs Liability policies shall have a provision that defense costs for all insureds and additional insureds are paid in addition to and do not deplete any policy limits. N. Suboonsultants The CONSULTANT shall be responsible to establish insurance requirements for any Subconsultant hired by the CONSULTANT. The insurance shall be in amounts and types reasonably sufficient to deal with the risk of loss involving the Subconsultant's operations and work. O. Limits Are Minimums If the CONSULTANT maintains higher limits than any minimums shown above, then SANITATION DISTRICT requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. 8. SCOPE CHANGES In the event of a change in the Scope of Work, requested by SANITATION DISTRICT, the parties hereto shall execute an amendment to this Agreement setting forth with PDSA PROJECT NO.3-54 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 12 of 19 particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. 9. PROJECT TEAM AND SUBCONSULTANTS CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this Agreement, the names and full description of all Subconsultants and CONSULTANT's project team members anticipated to be used on this project by CONSULTANT. CONSULTANT shall include a description of the scope of work to be done by each Subconsultant and each CONSULTANT's project team member. CONSULTANT shall include the respective compensation amounts for CONSULTANT and each Subconsultant on a per-project-element basis, broken down as indicated in Section 2- COMPENSATION. There shall be no substitution of the listed Subconsultants and CONSULTANT's project team members without prior written approval by the SANITATION DISTRICT. 10. ENGINEERING REGISTRATION The CONSULTANT's personnel are comprised of registered engineers and a staff of specialists and draftsmen in each department. The firm itself is not a registered engineer but represents and agrees that wherever in the performance of this Agreement requires the services of a registered engineer. Such services hereunder will be performed under the direct supervision of registered engineers. 11. AUDIT PROVISIONS A. SANITATION DISTRICT retains the reasonable right to access, review, examine, and audit, any and all books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify that the CONSULTANT is in compliance with all requirements under this Agreement. The CONSULTANT shall include the SANITATION DISTRICT's right as described above, in any and all of their subcontracts, and shall ensure that these rights are binding upon all Subconsultants. B. SANITATION DISTRICT retains the right to examine CONSULTANT's books, records, documents and any other evidence of procedures and practices that the SANITATION DISTRICT determines are necessary to discover and verify all direct and indirect costs, of whatever nature, which are claimed to have been incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance with all requirements under this Agreement during the term of this Agreement and for a period of three (3)years after its termination. C. CONSULTANT shall maintain complete and accurate records in accordance with generally accepted industry standard practices and the SANITATION DISTRICT's policy. The CONSULTANT shall make available to the SANITATION DISTRICT for review and audit, all project related accounting records and documents, and any other financial data within 15 days after receipt of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's PDSA PROJECT NO.3-54 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 13 of 19 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: Clarice Marcin, Sr. Contracts Administrator Copy: Hardat Khublall, Project Manager Notices shall be mailed to CONSULTANT at: AECOM Technical Services, Inc. 999 W. Town and Country Road Orange, CA 92868 Attention: Jagadish (Jack)Gundarlahalli, P.E., Principal-in-Charge 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. PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 14 of 19 Notice of termination shall be mailed to the SANITATION DISTRICT and/or CONSULTANT in accordance with Section 13- NOTICES. 15. DOCUMENTS AND STUDY MATERIALS The documents and study materials for this project shall become the property of the SANITATION DISTRICT upon the termination or completion of the work. CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all memoranda, correspondence, computation and study materials in its files pertaining to the work described in this Agreement, which is requested in writing by the SANITATION DISTRICT. 16. COMPLIANCE CONSULTANT certifies by the execution of this Agreement that it pays employees not less than the minimum wage as defined by law, and that it does not discriminate in its employment with regard to race, color, religion, sex or national origin; that it is in compliance with all federal, state and local directives and executive orders regarding non-discrimination in employment; and that it agrees to demonstrate positively and aggressively the principle of equal opportunity in employment. 17. AGREEMENT EXECUTION AUTHORIZATION Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual executing this document by and on behalf of each party is a person duly authorized to execute agreements for that party. 18. DISPUTE RESOLUTION In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS If any action at law or in equity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which it may be entitled. 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. PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 15 of 19 21. WARRANTY CONSULTANT shall perform its services in accordance with generally accepted industry and professional standards. If, within the 12-month period following completion of its services, the SANITATION DISTRICT informs CONSULTANT that any part of the services fails to meet those standards, CONSULTANT shall, within the time prescribed by the SANITATION DISTRICT, take all such actions as are necessary to correct or complete the noted deficiency(ies). 22. INDEMNIFICATION To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT's sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's officers, directors, employees, CONSULTANT's, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT's fees and costs and the SANITATION DISTRICT's general and administrative expenses; individually, a "Claim"; collectively, "Claims")which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT's suppliers, CONSULTANT, Subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT's supplier, CONSULTANT, Subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. 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 PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 16 of 19 of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT's indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. CONSULTANT PERFORMANCE The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT. A copy of the evaluation shall be sent to the CONSULTANT for comment. The evaluation, together with the comments, shall be retained by the SANITATION DISTRICT and may be considered in future CONSULTANT selection processes. 25. COMPLIANCE WITH OCSD POLICIES AND PROCEDURES CONSULTANT shall be required to Comply with all OCSD policies and procedures including the OCSD Safety Standards, as applicable, all of which may be amended from time to time. 26. CLOSEOUT When the SANITATION DISTRICT determines that all Work authorized under the Agreement is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Agreement is otherwise terminated or expires in accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the Consultant written notice that the Agreement will be closed out. CONSULTANT shall submit all outstanding billings, work submittals, deliverables, reports or similarly related documents as required under the Agreement within thirty (30)days of receipt of notice of Agreement closeout. PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 17 of 19 Upon receipt of CONSULTANT'S submittals, the SANITATION DISTRICT shall commence a closeout audit of the Agreement and will either: i. Give the CONSULTANT a final Agreement Acceptance: or ii. Advise the CONSULTANT in writing of any outstanding item or items which must be furnished, completed, or corrected at the CONSULTANT's cost. CONSULTANT shall be required to provide adequate resources to fully support any administrative closeout efforts identified in this Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to complete any portions of the work, the non-completion of which were not disclosed to the SANITATION DISTRICT (regardless of whether such nondisclosures were fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under all those provisions of the Agreement which expressly or by their nature extend beyond and survive final Agreement Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT's request for final Agreement Acceptance as set forth above shall not be deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose nor imply acceptance of, or agreement with, the CONSULTANT's request for final Agreement Acceptance. 27. ENTIRE AGREEMENT This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 18 of 19 IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION DISTRICT, by its Officers thereunto duly authorized, and CONSULTANT as of the day and year first above written. CONSULTANT: AECOM TECHNICAL SERVICES, INC. By Date Printed Name &Title ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Kelly Lore Date Clerk of the Board By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A"—Scope of Work Attachment"B"—Labor Hour Matrix Attachment"C"—Conflict of Interest Disclaimer Attachment"D"—Allowable Direct Costs Attachment"E"—Fee Proposal Attachment"F"— Not Used Attachment"G"—Acknowledgement of PDSA Attachment"H"—Not Used Attachment"I"—Cost Matrix and Summary Attachment"J"—Acknowledgement of Addenda Receipt Attachment"K1"— Hourly Rate Schedule for Minor Subconsultant Attachment"L"—OCSD Safety Standards CMM:dms PDSA PROJECT NO.3.64 Revised 092115 REHABILITATION OF WESTERN REGIONAL SEWERS Page 19 of 19 REHABILITATION OF WESTERN REGIONAL SEWERS - PROJECT NO. 3-64 GO Njy SANIr o� � � O U r Q 9 h 9or�cl/N� THE January 6, 2016 Sewer Locations A PALMA ' CERRITOS - ' LaP /nel t LAKEWOOD A _ hem ] BUENA �= PARK 3 �S k HAWAIIAN --7c tarso Ilnaom GARDENS L., )-Trunk i Orange--Western f OramTe Sub-Tmt t 1 2 LONG BEACH _ t Ban ANAHEIM CYPRESS / t camrc°a : 3 connan Number: tos5lemn 3E t R.[eind 3A Kateua t 3-11 West Side Relief LI � 3-21-1.321-2 Interceptor Plpembe LOS _! Upsized ALAMITOS y nook Colleges f ROSSMOORJ Lend Use:(2005) Residential GARDEN Com GROVE _ t Industrolltral ica Renrn Public Faallties Wdstsidd -yen I /Cmohee Pump Station Mixed Use Park[G0If ,aenl B°ac,BNa I \,\ Course mrem r"or SEAL _ pemi BEACH � SealBeach VVEBTMf BP{ TER R lip Control/ Pump Station '`�\\ Open space/ wes Tramp, Mine, Katella Ave & Los Al . Blvd , J14 ;-- J14 NMYY/rw . , _ �' NntlW 4w ssl a `� 0 l6 0 vw Ia0 1 y wx ses vw o >n o y ^ o I01x a Zxl 1 x61 1 Sw sW I: �' z4e ssz xse 0 5x3 0 � r 0 4W a AM6:30 1:11:111 J. I il:45-M(1x:4s) Nun ll:4s 29D(ILOD) M4:00-6:15(5:00) 55 � � � • • � • 9a = „ AM PM IR% .1. 509% 39.3% 51.0% 490% 60.7% Mk Ne 07:15 07'.W 07:15 h1141. 1645 17.00 14:45 WWne '35 RM 507 -1. 3159 $]BB WB PN.F. 0.050 0.955 0.899 P.M.R 0.956 0.955 M967 d Vol. NIB RO 100 4-6Va1. W43 5406 11449 PUM Mr. MISO:W 0:15 P kMr. 1645 1700 16:45 YOWme W35 3R6 SBl] Yalume 3159 37BB 59II O.B58 0.955 0.09 D.M.F. 0.956 0.955 0.967 AA �i w ' 11 O 4 4 05:47:35 PM cry Capacity Issues • Replace approx. 30,000 ft. of Los Alamitos Sub-trunk/West Side Relief Interceptor pipelines • Cities of Cypress, Los Alamitos & Rossmoor • Open Trench • Pipe Bursting • Micro-tunneling /Jacking • Reroute Flows Orange County Sanitation District We're here for you. Condition Issues • Rehabilitate approx. 51,000 ft. -of Orange Western/ Los Alamitos Sub-trunk and West Side p'hED- p,LACE PE Relief Interceptor pipelines "QFR" ICES�°" INC • Cities of La Palma, Buena Park, Anaheim, Cypress, Seal Beach, i Los Alamitos & Rossmoor • Lining • Spot Repairs • Replace Pipes v • Trenchless method • Open Trench • Micro-tunneling/Jacking Orange ' e here for you. West Side pump Station • Replace wet well • Rehabilitate/Replace 20- inch FM • Provide Odor Control Treatment • Open Trench - ` • Trenchless • Micro-tunneling/Jacking • Extension PS orangeWe're here for yoUl Field Investigation • Flow Monitoring / Modeling • Field Investigations , • Utility Locating • Geophysical Investigation ' �l - • Potholing orings]Testing • Geotechnical B • Ground Water Testing • Well Discharge Testing inspection • Sewer Cleaning, Manual/CCTV insp • Traffic Control for Field Investigation Multiple Construction Contracts • Minimize Community Impacts • Increase Opportunities for Many Contractors • Allow Simultaneous Work on Different Project Elements • Containing Schedule Risks Orange County Sanitation District Community Impact Minimization • Community Outreach Program • Traffic Management Plans • Seasonal Work Restrictions • Sensitive Area Work Restrictions • Work Hour Restraints Proposed for Each Location Orange County Sanitation District We're here for you. Coordination with • Cities/Agencies • Early Partnering • Coordination among Cities, Agencies, Community Groups/Businesses • Presentations to City Council/Boards Orange County Sanitation District AECOM Constructive Community •ConUCl puble;agencies ReafOnS • IEenllly rkk antl �gavearcfi antl Risk'J concerns �xpn refinements per �Canvas end coneuc� plOjBcl repuirements community meeMos •ncqulro EncroacnmeM •RrovlEe mpN for,,^.esgn Peimn repmremenis •CooMlnvle pubbc meetings rom OCS] Orange County Sanitation District We're here for you. Schedule 2016 2017 2018 2019 2020 2021 2022 2023 2024 Design 2/16 12118 - 4/19 CONSTRUCTION 5/19 - 5/23 Orange Consultant Selection • Four Proposals Received • TWO Firms Invited for Interview • AECOM Unanimously Ranked Best Qualified Orange Consultant Selection • Extensive negotiations followed • 10 meetings, total 76 hours • Scope and assumptions confirmed • Level of effort appropriate • Rates reasonable • Proposed Fee $20,425,994 • Negotiated Fee $17,639,250 (includes $7.2 mil in field investigation) Orange County Sanitation District We're here for you. Recommendation • Increase Total Budget From $112.2 mil . to $125 mil . • Award $ 17,639,250 PDSA to AECOM • Authorize $1,763,925 Contingency Orange County Sanitation District We're here for you. ITEM NO. 13 MINUTES OF THE ADMINISTRATION COMMITTEE Orange County Sanitation District Wednesday, December 9, 2015, at 5:00 P.M. A regular meeting of the Administration Committee of the Orange County Sanitation District was called to order by Committee Chair Curry on December g, 2015, at 5:01 p.m., in the Administration Building of the Orange County Sanitation District. Director Kim led the Flag Salute. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Keith Curry, Chair Jim Herberg, General Manager Lucille Kring, Vice-Chair Bob Ghirelli, Assistant General Manager Steven Choi Celia Chandler, Director of Human Resources James Ferryman Ed Torres, Director of Operations and Peter Kim Maintenance Joy Neugebauer Lorenzo Tyner, Director of Finance Glenn Parker Rob Thompson, Director of Engineering Teresa Smith Kelly Lore, Clerk of the Board Sal Tinajero Jennifer Cabral John Nielsen, Board Chair Rich Castillon Greg Sebourn, Board Vice-Chair Nina Train Richard Spencer COMMITTEE MEMBERS ABSENT: Jim Katapodis OTHERS PRESENT: Greg Mills Brad Hogin, General Counsel Bill Dennehy, Chandler Asset Management Mia Corral, Chandler Asset Management PUBLIC COMMENTS: Bob Ransom, Brethren Christian Jr./Sr. High School CEO who stated concerns with the OCSD sewer use fee assessed for the school property. He provided a handout for the Committee which was received and filed. Director of Finance, Lorenzo Tyner stated that he will have his staff meet with Mr. Ransom to assist and evaluate his concerns. REPORT OF COMMITTEE CHAIR: Committee Chair Curry did not provide a report. 12/09/2015 Administration Committee Minutes Page 1 of 4 REPORT OF GENERAL MANAGER: General Manager, Jim Herberg did not provide a report. REPORT OF DIRECTOR OF FINANCE AND ADMINISTRATIVE SERVICES: Director of Finance and Administrative Services, Lorenzo Tyner did not provide a report. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Approve Minutes of the November 11, 2015, Administration Committee Meeting. AYES: Choi, Curry, Ferryman, Katapodis, Kim, Kring, Nielsen, Parker, Sebourn, T. Smith and Tinajero NOES: None ABSTENTIONS: None ABSENT: Mills and Tinajero 2. INVEST AND/OR REINVEST DISTRICT'S FUNDS (Lorenzo Tyner) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-XX, entitled "A Resolution of the Board of Directors of the Orange County Sanitation District, Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest District's Funds; Adopting District's Investment Policy Statement and Performance Benchmarks for calendar year 2016; and Repealing Resolution No. OCSD 14-20." AYES: Choi, Curry, Ferryman, Katapodis, Kim, Kring, Nielsen, Parker, Sebourn, T. Smith and Tinajero NOES: None ABSTENTIONS: None ABSENT: Mills and Tinajero 3. CONFLICT OF INTEREST CODE (Clerk of the Board) MOVED, SECONDED AND DULY CARRIED TO: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-XX entitled, "A Resolution of the Board of Directors of Orange County Sanitation District adopting a Conflict of Interest Code which supersedes all prior Conflict of Interest Codes and amendments previously adopted." 12/09/2015 Administration Committee Minutes Page 2 of 4 AYES: Choi, Curry, Ferryman, Katapodis, Kim, Kring, Nielsen, Parker, Sebourn, T. Smith and Tinajero NOES: None ABSTENTIONS: None ABSENT: Mills and Tinajero NON-CONSENT CALENDAR: None. INFORMATION ITEMS: 4. INVESTMENT PERFORMANCE RESULTS (Lorenzo Tyner) Bill Dennehy, Chandler Asset Management, provided an informative PowerPoint Presentation regarding the OCSD Investment portfolio managed by Chandler and focused on: Long term and liquid portfolios; annual benchmark comparisons; issuer report; investment policy compliance; long term performances; annual timeline of Chandler activities and staff communications. Mr. Dennehy and staff responded to questions from the Committee. Director Tinajero arrived at 5:34 p.m. 5. COMMUNITY OUTREACH (Bob Ghirelli) Assistant General Manager Bob Ghirelli introduced Principal Public Affairs Specialist, Jennifer Cabral who provided a PowerPoint presentation including the introduction of the public affairs team and the community relations, public education and outreach accomplishments for this year including: Sewer science— Inside the Outdoors; High School PSA Contest; Tour program and speakers bureau; Community events; and capital project and maintenance outreach. Ms. Cabral then answered questions from the Committee Committee Chair Curry thanked Ms. Cabral and staff for the construction outreach efforts in Newport Beach. Chair Nielsen also thanked Ms. Cabral and staff for the presentation. He also inquired about an upcoming ACC-OC meeting with OCSD which Ms. Cabral stated should be scheduled for January 2016. CLOSED SESSION: None. 12/09/2015 Administmtion Committee Minutes Page 3 at 4 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: Committee Chair Curry addressed a concern from Director Parker regarding the 5:00 p.m. start time of the Committee meeting. It was the consensus of the Committee to keep the start time at 5:00 p.m. ADJOURNMENT: Committee Chair Curry declared the meeting adjourned at 5:49 p.m. to the next regularly scheduled meeting of Wednesday, February 10, 2016 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 12/09/2015 Atlministmtion Committee Minutes Page 4 at 4 ITEM NO. 14 MINUTES OF THE STEERING COMMITTEE Orange County Sanitation District Wednesday, December 16, 2015 at 5:00 p.m. A regular meeting of the Steering Committee of the Orange County Sanitation District was called to order by Chair Nielsen on Wednesday, December 16, 2015 at 5:05 p.m. in the Administration Building of the Orange County Sanitation District. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: John Nielsen, Chair Jim Herberg, General Manager Keith Curry, Administration Committee Bob Ghirelli, Assistant General Manager Chair Rob Thompson, Director of Engineering John Withers, Operations Committee Nick Arhontes, Director of Facility Chair Support Services Tom Beamish, Member-At-Large Celia Chandler, Director of Human Lucille Kring, Member-At-Large Resources David Shawver, Member-At-Large Lorenzo Tyner, Director of Finance & Administrative Services COMMITTEE MEMBERS ABSENT: Ed Torres, Director of Operations & Greg Sebourn, Vice-Chair Maintenance Kelly A. Lore, Clerk of the Board Jennifer Cabral Jim Colston Ann Crafton Norbert Gaia Al Garcia Gina Tesch OTHERS PRESENT: Brad Hogin, General Counsel James Finete, Savage Finete PUBLIC COMMENTS: Chair Nielsen announced that written communication had been received by the Clerk of the Board from Mr. Carl Perkins and Mr. John Sears regarding Item 4 and a copy had been included in the Director folders. No other public comments were provided. 12/16/2015 Steering Committee Minutes Page 1 of 4 REPORTS Chair Nielsen announced the appointment of Director Peter Kim to the Legislative and Public Affairs (LAPA) Committee and also provided a brief update from the LAPA Committee Meeting including: Legislative Plan for 2016, highlights from 2015 and the upcoming 2016/17 Outreach Plan. General Manager Jim Herberg provided an update on the Newport Force Main Project and announced that the OCSD Administrative offices would be closed for the holidays on December 24, 25 and January 1; the Operations Committee will meet on January 6 at 5:00 p.m.; and the GWRS Joint Steering Committee, will meet on January 11, and will be asked to approve a Joint Resolution supporting the development of a planned recycling project between Los Angeles County Sanitation District and Metropolitan Water District. CONSENT CALENDAR: 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED, AND DULY CARRIED TO: Approve Corrected Minutes of the November 18, 2015 Regular Steering Committee Meeting. AYES: Beamish; Curry; Kring; Nielsen; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn 2. ADOPTION OF UPDATED RESOLUTION ON RULES OF PROCEDURE (Bob Ghirelli) RECOMMENDATION: Recommend to the Board of Directors to: Adopt Resolution No. OCSD 15-XX, entitled, "A Resolution of the Board of Directors of Orange County Sanitation District Fixing and Establishing Rules of procedure forthe Conduct of Business of the District, and Repealing Resolution No. OCSD 15-01." AYES: Beamish; Curry; Kring; Nielsen; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn NON-CONSENT CALENDAR: Assistant General Manager Bob Ghirelli provided a brief presentation regarding the Strategic Plan update and noted that in Appendix B—Summary of Accomplishments, two of the previously closed out goals (Reclaiming SARI Flows and Improve the 12/16/2015 Steering committee Minutes Page 2 of 4 Sanitation District Security) will be brought back in a future update for continuation. 3. STRATEGIC PLAN UPDATE (Bob Ghirelli) RECOMMENDATION: Recommend to the Board of Directors to: A. Approve the Strategic Plan Update dated December 2015; and B. Direct staff to implement the goals and levels of service contained in the Plan. AYES: Beamish; Curry; Kring; Nielsen; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn 4. Mr. Herberg provided an overall history leading up to this item and provided the details of the proposed Amendment No. 2. Mr. Herberg then answered questions regarding: process costs prior to the date of the agreement, and limits of costs moving forward. Chair Nielsen thanked Mr. Herberg for negotiating a very good solution. AMENDMENT NO. 2 TO LOCAL SEWER FACILITIES TRANSFER AGREEMENT WITH EAST ORANGE COUNTY WATER DISTRICT (Nick Arhontes) RECOMMENDATION: Recommend to the Board of Directors to: Approve Amendment No. 2 to the Local Sewer Facilities Transfer Agreement (Transfer Agreement) with East Orange County Water District (EOCWD) regarding the transfer of local sewers in Service Area. AYES: Beamish; Curry; Kring; Nielsen; Shawver and Withers NOES: None ABSTENTIONS: None ABSENT: Sebourn INFORMATION ITEMS: None. Director Withers departed the meeting at 5:17 p.m. and was absent from Closed Session. 12/16/2015 Steering Committee Minutes Page 3 of 4 CLOSED SESSION: CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTIONS: 54956.9(d)(1) The Committee convened in closed session at 5:18 p.m. to discuss two items. Confidential minutes of the Closed Session have been prepared in accordance with the above Government Code Sections and are maintained by the Clerk of the Board in the Official Book of Confidential Minutes of Board and Committee Closed Meetings. RECONVENED IN REGULAR SESSION: The Committee reconvened in regular session at 5:24 p.m. CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED SESSION: None. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. ADJOURNMENT: The Chair declared the meeting adjourned at 5:25 p.m. to the next Steering Committee meeting to be held on Wednesday, January 27, 2016 at 5:00 p.m. Submitted by: Kelly A. Lore Clerk of the Board 12/16/2015 Steering Committee Minutes Page 4 of 4 STEERING COMMITTEE Meeting Date TOBd.of M. 01/27/16 O1/27/16 AGENDA REPORT Item 2 bar Item Number 2 I6 Orange County Sanitation District FROM: James D. Herberg, General Manager SUBJECT: GENERAL MANAGER'S FY 2015-2016 WORK PLAN MID-YEAR UPDATE GENERAL MANAGER'S RECOMMENDATION Receive and file the General Manager's Fiscal Year 2015-2016 Work Plan Mid-Year Update SUMMARY BACKGROUND Each year, the General Manager prepares a work plan of activities to be accomplished during the fiscal year. Attached is the mid-year update for the General Manager's FY 2015-2016 work plan. RELEVANT STANDARDS • Maintain a culture of improving efficiency • Plan for and execute succession, minimizing vacant position times • Highly qualified, well trained, motivated, and diverse workforce • Biosolids, Odor, and Energy Master Plans • Use practical and effective means for recovering energy, wastewater for reuse PRIOR COMMITTEE/BOARD ACTIONS August 2015: Presented the proposed General Manager's FY 2015-2016 Work Plan to the Steering Committee for review. September 2015: Approval of the General Manager's FY 2015-2016 Work Plan by the Board of Directors ADDITIONAL INFORMATION The General Manager's work plan includes goals for the fiscal year. Items in the work plan have deadlines staggered within the fiscal year. At mid-year three out of 19 work plan items were completed ahead of their projected deadlines and nine items are on track to be completed by their year-end deadlines. There are seven items that are behind schedule due to shifting priorities, but six of them will be completed prior to the end of the fiscal year and the deadline of the overall work plan. Page 1 of 2 CEQA N/A FINANCIAL CONSIDERATIONS All items included in the General Manager's Work Plan are budgeted in the FY 2015- 2016 Budget. ATTACHMENT The following attachments) are included in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.cotn with the complete agenda package: • General Manager's FY 2015-2016 Work Plan Mid-Year Update Page 2 of 2 ORANGE COUNTY SANITATION DISTRICT Memorandum January 27,2016 TO: Chairman and Members of the Board of Directors FROM: lames D. Herberg,General Manager SUBJECT: Fiscal Year 2015-2016 General Manager's Mid-Year Work Plan Update I am pleased to present the mid-year update for my Fiscal Year 2015-2016 work plan.The work plan includes five main areas of focus: 1) Safety and Security; 2) Succession Planning; 3) Resource Recovery; 4) Reliability; and 5)Operational Optimization. This work plan incorporates goals included in OCSD's Strategic Plan and was reviewed with the Steering Committee in August 2015. My staff and I have been working towards reaching all the goals by their respective deadlines. 1. Safety and Security— Implement measures to reduce risk, protect our regional infrastructure and provide a secure and safe workplace for our employees. • Implement Administrative Controls and address high priority items identified in the Safety Study by December 31,2015. Update: Risk Management is distributing training materials on administrative controls, on a weekly basis, via email to all employees, for each of the 13 identified hazard area categories. The outreach includes a summary of the hazards and the applicable OCSD safety policy highlighting workplace best practices. Management is meeting with staff to review the training materials and completion is being tracked by Risk Management staff.The process will conclude in early February 2016. • Complete a feasibility analysis about obtaining Voluntary Protection Plan certification from OSHA by December 31, 2015. Update: Risk Management is in the process of hiring a consultant to conduct a feasibility study, which is anticipated to begin in the third quarter of the fiscal year. • Implement remaining high priority physical site security improvements as identified by recent surveys and reports regarding OCSD's facilities by June 30, 2016. Update: All outstanding improvements have been or will be submitted through the project clearing house for funding and implementation by June 30,2016. • Work with Department of Homeland Security to assess and implement recommended mitigations to reduce cyber security risk by June 30, 2016. Update: Due to the sensitivity of this item, Information Technology will be providing a closed session update to the Board of Directors in January 2026. • Enhance security awareness training, proactive identification and protection of Personally Identifiable Information (PII)on our network and add additional layers of protection on OCSD servers and employee workstations by December 31, 2015. Update: Valid files where PH is kept have been secured and are being continuously monitored and exception reports generated for suspicious access attempts. IT has developed security awareness training has been secured for staff who use the process control system. IT is in the procurement phase of adding additional layers of protection on OCSD servers and employee workstations. 2. Succession Planning — Review, modify, improve and enhance OCSD's workforce planning and workforce development strategic initiative to develop and implement tools to expand labor force capacity and staff skill levels. • Employee Engagement Survey — Conduct an agency wide employee engagement survey to assist in measuring the staff satisfaction levels. Use the results of the survey to develop an action plan by June 30, 2016. Update: A consultant has been retained and the survey is being developed. The consultant will administer the agency wide employee engagement survey prior to June 30,2016. • Classification and Compensation Study — Complete all phases of the classification and compensation study by February 28, 2016. Update:The consultant has completed the initial classification phase of the project. Next step is the review of the draft classification specifications by Human Resources, Management and the Bargaining Units. During the classification specification review period, which is anticipated to be completed by early February, the consultant will begin to identify the benchmarked positions. Once the classification specification has been approved, the consultant will begin the market analysis. • Workforce Vulnerability Assessment— Identify vulnerable positions based on retention, criticality, and difficulty to fill. Develop a workforce planning action plan for each position identified in the vulnerability analysis. Identify workforce needs for the upcoming budget process by December 31, 2015. Update: The workforce vulnerability assessment model is Page 2 of 6 complete. The model was presented to the Management Team in early December and is scheduled for review and approval by the EMT in January. The approved model will be implemented and used in support of the budget process with regard to organizational staffing and development needs. • Talent Readiness Assessments —Identify key talent, as well as possible development efforts. Develop guidelines and forms for this tool by December 31, 2015. Conduct two assessments with the tools and guidelines developed through the Talent Readiness Assessment by June 30, 2016. Update: Human Resources staff is finalizing draft guidelines that will be presented to the EMT in January for approval and implementation. Upon approval of the guidelines,the process will be implemented bi-annually. 3. Resource Recovery — Move towards 100 percent water recycling and expand from treatment to resource recovery. • Research — Present findings and recommendations on Super Critical Water Oxidation and how to more efficiently clean digester gas to the Board of Directors June 30, 2016. Update:A draft report on the Super Critical Water Oxidation will be available in June.A report to the Board of Directors will be scheduled by Fall 2016. Findings and recommendations on the cleaner digester gas will be presented to the Board of Directors by June 2016. • Planning Studies — Receive a draft Effluent Reuse report by June 30, 2016. Retain a consultant to conduct a new biosolids master plan by June 30, 2016. Update:The Biosolids Master Plan was awarded to a consultant six months ahead of schedule in December 2035 and the Effluent Reuse Planning Study draft report is on schedule for June 2016. 4. Reliability — Move towards future sustainability and resiliency of operations by implementing best practices for managing infrastructure maintenance and replacement and timely adoption of operational and technology improvements. Civil Assets Management Plan (CAMP) —Finalize the data management structure for collecting, storing and retrieving all civil asset related data; implement the operational housekeeping program to enhance the availability and reliability of our civil assets and develop a 5-year program implementation plan for prioritizing, resourcing and integrating civil assets into existing maintenance programs. Update: A system for collecting and reporting assessment data Is in the trial stages and is planned for Implementation by June Page 3 of 6 2016. lob plans and Preventative Maintenance plans are in development for housekeeping efforts and should also be operational in the computerized maintenance management system (Maximo) by June 2016. A number of process areas have been identified for flushing and cleaning through an industrial cleaning contract. These activities will be planned and scheduled through Maximo along with other mechanical, electrical and instrumentation maintenance activates to reduce the impact to operations. A five year Civil Assets Maintenance Program that will gradually identify and implement civil asset maintenance job plans and preventative maintenance programs (corrosion assessments, coatings, cathodic protection, and housekeeping) and the associated budget requirements is in development and should be completed by June 2016. An on-call contract is also in development to help support (1) the assessment of unscheduled civil asset failures and (2) the development of robust repair projects scopes of work that will minimize the magnitude of field change orders. During the past six months staff restructured our maintenance divisions by increasing civil and corrosion engineering resources, civil maintenance supervision for each plant and allocating an operations maintenance planner to support the planning and execution of the maintenance activities. • Planned Maintenance — Ensure that critical process units and equipment are ready to operate and are receiving preventive maintenance in advance of the 2015-16 rainy season (El Nino). Develop and apply planning and scheduling key performance indicator(KPI) reports to measure success by June 30, 2016. Update: The Operations, Maintenance and Collections departments have ordered key supplies, tested critical equipment and processes, performed preventative maintenance and reviewed emergency preparedness and response procedures. With the strong likelihood of an El Nino and the resulting increase in storm events staff is taking additional steps to ensure the readiness and reliability of our collection and treatment facilities. These additional efforts include full load testing all of our emergency generators and making any necessary repairs, testing flow diversion alternatives in the event that key pumping systems were to fail, and conducting additional training including flood prevention provided by the Department of Water Resources, Emergency Operations Center/Incident Command System training, and a planned functional exercise that will be held in January simulating a severe El Nino storm. In relation to the development of KPI reports to measure success,so far,we have been able to develop two of the nine key performance indicators (KPI) for planning and scheduling. The Page 4 of 6 development of remaining key performance indicators has been delayed due to our decision to re-direct resources toward upgrading Maximo to provide greater flexibility in accessing and developing a broader range of KPI's beyond those focusing on planning and scheduling. A schedule for implementing the Maximo upgrade is being developed which will identify the timeframe for KPI development. • Operational Resiliency— Present the results of the business continuity plan to the Board of Directors identifying the most critical functions to keep OCSD operating in the event of a major event by December 31, 2015. Update: Business Impact Analysis (BIA) sessions were completed for all divisions.The summary was presented to the EMT in December 2015 and the list of the most critical activities is being consolidated into a list of business continuity plans that will be developed. The Information Technology division is finalizing the procurement of the offsite Disaster Recovery plan and will locally install and test the solution by March 2016. The solution will be installed offsite by July 2016. A presentation updating the Board on the status of the business continuity plans will be made in 2016. 5. Operational Optimization—Evaluate and optimize operations at OCSD to increase efficiency. • Energy Efficiency — Evaluate the energy savings opportunities identified by The Energy Network (TEN). Present findings and implementation recommendations to the Board of Directors by March 2016. Update: In August 2014, OCSD entered into an agreement with The Energy Network (TEN) to provide project management and technical assistance to identify energy savings opportunities at both plants and the pump stations in the collection systems.The project team identified a list of over 50 potential energy saving measures that focused primarily on energy intensive processes, such as pumping and secondary treatment. The measures included efficiency upgrades of existing equipment as well as some process changes. From the initial list, six items were selected for preliminary evaluation, and from that group, three items received detailed evaluation. The measure with the most promising efficiency improvement involves the replacement of existing lighting with LED lights. Staff is currently reviewing the feasibility of a large scale light replacement effort. In addition to energy savings,this measure has the potential to reduce maintenance costs, and to improve worker safety. Staff will be presenting findings and recommendations to the Operations Committee in March 2016. Page 5 of 6 • Shared Services — Continue to explore the six areas identified as potential opportunities where shared services can improve performance and reduce costs for OCSD rate payers by consolidating functions while also monitoring other opportunities regionally and statewide. Implement at least one shared service contract by June 30, 2016. Update: Orange County Water District has joined in OCSD's elevator maintenance contract and will commence services this month. OCWD has also expressed a strong interest in sharing traffic control services with OCSD to take advantage of economies of scale. Our respective purchasing staffs are discussing the feasibility of pursuing a cooperative purchase agreement for traffic control.Additional areas of interest include chemicals, Landscaping and Fire Extinguisher Inspections. • Odor Control Master Plan— Develop a recommendation on odor treatment technologies and levels of service goals for both plant facilities and complete Odor Control Master Plan by June 30, 2016. Update: Phase 1 of 2 for the Odor Control Master Plan has been completed. The current project timeline has a scheduled completion date of December 2016. OCSD Headquarters Building-Advertise request for proposal to retain a consultant to design the replacement of the Headquarters Complex Project P1-128 by January 31, 2016. Update: The RFP was advertised ahead of schedule. Page 6 of 6 STEERING COMMITTEE Meeting Date TOBd.of Dir. 01/27/16 O1/27/16 AGENDA REPORT emMamber Item Number 3 16 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/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. SUMMARY BACKGROUND Since 2002, the Orange County Sanitation District (OCSD) has primarily utilized external Chief Negotiators to negotiate labor contracts. In 2002, the Board of Directors hired Steve Filarsky, from Filarsky & Watt as the Chief Negotiator to negotiate contracts with all six (6) of OCSD's bargaining units. During the subsequent round of contract negotiations in 2007, the Board directed then General Manager, Jim Ruth, to serve as the internal Chief Negotiator with all bargaining units. After his retirement, Mr. Ruth was hired as an external Chief Negotiator to conduct contract negotiations with the Supervisor and Professional Management Group (SPMT) in 2013. During the most recent round of contract negotiations which began July 1, 2014, the Board of Directors authorized Mr. Filarsky to serve as an external Chief Negotiator for contract negotiations with the Orange County Employees Association (OCEA) and the International Union of Operating Engineers Local 501 (Local 501). RELEVANT STANDARDS • Highly qualified, well trained, motivated, and diverse workforce • Competitive compensation and benefits • Positive employer, employee relations • Negotiate fair and equitable labor agreements PROBLEM Contract negotiations are expected to begin with all six (6) bargaining units prior to the expiration of their respective MOU's in June, 2016. In preparation for the upcoming Page 1 of 3 negotiations, the OCSD labor negotiations team and OCSD's Chief Negotiator will need to work closely with board leadership to set parameters and develop negotiation strategies. PROPOSED SOLUTION It is recommended that the Steering Committee form a three (3) member Ad Hoc Committee for the purpose of interviewing and selecting an external Chief Negotiator from the following short-list of firms recommended by staff: • Liebert, Cassidy, &Whitmore • Rutan & Tucker • Filarsky &Watt • Andleson, Atkinson, Loya, Ruud, & Romo TIMING CONCERNS On June 30, 2016, the Memorandums of Understanding (MOU's)with all six (6)of the OCSD'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 February, 2016 Board Meeting, leaving approximately four(4) months for preparation and negotiation once the Chief Negotiator is hired. PRIOR COMMITTEE/BOARD ACTIONS On November 20, 2013, the Steering Committee provided direction to the Administration Committee to interview and select an external Chief Negotiator from a short-list of vendors including: • Liebert, Cassidy, & Whitmore • Rutan & Tucker • Filarsky &Watt • Atkinson, Andlesen, Loya, Ruud, & Romo On December 11, 2013, the Administration Committee elected to form an Ad Hoc Committee to include three (3) Board members for the purpose of interviewing and selecting a Chief Negotiator from the short-list of vendors. On January 8, 2014, the Ad Hoc Committee met to interview the firms from the short-list of vendors. The Ad Hoc Committee recommended Steve Filarsky, from Filarsky & Watt for Board consideration at the January 22, 2014 Board Meeting. On January 22, 2014, the Board approved Steve Filarsky as the Chief Negotiator for the OCEA and Local 501 contracts. Page 2 of 3 ADDITIONAL INFORMATION On June 30, 2016, the Memorandums of Understanding (MOU's) with all six (6) of the Orange County Sanitation District bargaining units will expire. Three (3)of the bargaining units are represented by the Orange County Employees Association (OCEA). OCEA represents 96 OCSD employees, who perform paraprofessional and administrative jobs. One (1) bargaining unit is represented by the International Union of Operating Engineers - Local 501 (Local 501). Local 501 represents 191 OCSD employees, who perform operations, 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 55 OCSD employees that are responsible for supervisory duties across all Divisions. In addition, SPMT/AFSCME represent 192 OCSD 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 total $60,000. This request complies with authority levels of the Sanitation District's Purchasing Ordinance. This item has been budgeted. (Line item: Section 53256). ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Labor Relations Consulting Firm Information: 1. Atkinson, Andelson, Loya, Ruud & Romo 2. Filarsky &Watt 3. Rutan & Tucker 4. Liebert Cassidy Whitmore Page 3 of 3 11a� �y� Atkinson, Andelson 11 Loya, Ruud & Romo A Professional Law Corporation Sub Practice Area : Collective Bargaining & Labor Relations AALRR has over 30 years of experience representing municipalities, counties and public agencies in all aspects of their relationships with employees and labor unions, including collective bargaining negotiations, meet and confer issues and grievance arbitrations.We also provide in-service training to clients in contract implementation and interpretation, and in grievance processing. Our services in regard to negotiations include: • Acting as spokesperson or advisor in negotiations • Drafting and reviewing proposed contractual language • Consulting with and advising the administration and governing board regarding negotiations • Working with cities and agencies representing clients through mediation and fact-finding Related Practice Areas Employment Law Cities, Counties &Special Districts Districts May Insist To Impasse On Proposals That Retain Discretion Over Mandatory Subjects of Barge State to Lock in Building Workers Cerritos Office 12800 Center Court Drive (562)653-3200 Phone Suite 300 (562)653-3333 Fax E�11C1riSOT1, f�lldOjS011 Cerritos,California 90703 (562)6 3-333 rrrcorn aahrLoya, Ruud & Romo Irvine office A Professional Law Corporation 20 Pacifica,Suite 400 (949)453-4260 Phone Irvine,California 92618 (949)4534262 Fax JAY Q TRINNAMAN Senior Associate jtrinnaman@aalrr.com Labor and Employment Law Experience Jay Trinnaman is a Senior Associate in the Cerritos office of Atkinson, Andelson, Loya, Ruud & Romo. Mr. Trinnaman's background as an attorney includes representing employers in both the public and private sector. His practice emphasizes all aspects of labor relations and employment law matters, including representation of employers in disciplinary and grievance arbitrations, unfair labor practice charges before PERB, EEOC/DFEH charges, collective bargaining, writ of mandate matters, and advice and counsel. In addition to representing California employers, Mr. Trinnaman is licensed to practice law in the State of Nevada where he has had success on behalf of clients in business litigation matters, including: Obtaining an arbitration award of $1.8 million plus attorney's fees in a breach of contract matter on behalf of a client in the hospitality industry; and obtaining an arbitration award of $1.1 million in damages and attorney's fees against a client's former employee for breach of the confidentiality provision of his employment contract. Prior to joining AALRR, Mr. Trinnaman had five years of experience representing clients in the field of law enforcement, including serving as General Counsel for the California Organization of Police and Sheriffs. He has an extensive background in all matters pertaining to the Public Safety Officers Procedural Bill of Rights Act. Publications and Speaking Engagements Mr. Trinnaman has regularly conducted seminars and workshops to groups of public and private sector employers, including the firms annual Employment Law Conference, the California Public Employers Labor Relations Association (CALPELRA), the Southern California Public Labor Relations Council, and the County Counsels' Association of California. He has presented on a wide variety of labor and employment topics, including public employee First Amendment rights, employee privacy rights in an era of new technologies, the Public Safety Officers Procedural Bill of Rights Act and the Firefighters Procedural Bill of Rights Act, employee due process and pre-deprivation rights, reductions in force, off-duty misconduct, the nuts and bolts of proper employee documentation, and defense against retaliation and whistleblowing claims. He also contributes to the firm's publications. Education Mr. Trinnaman received his Bachelor of Arts degree from Vanderbilt University and his Juris Doctor from the Tulane University School of Law. Admissions 2001, State Bar of California; and 2005, State Bar of Nevada Cerritos • Fresno • Irvine • Pleasanton • Riverside - r c r a m e n t a • San Diego FILARSKY&WATT LLP ATTORNEYS AT LAW OIAI OFFICE STEVE A.FILARSKY 1441 N EENTH STREET 408 BRYANT CIRCLE,SURE C SHARON A.WAIT MANHATAN BEACH,CALIFORNIA 90266 mA1,cA93023 (310)545-7825 (805)640-2970 FACSIMILE(310)545-2999 FACSIMILE(805)640-2980 PRACTICE OF THE FIRM: Filarsky &Watt LLP specializes in representing public sector employers statewide in all matters pertaining to employer- employee relations. The firm has been in existence since March 1986. Our firm provides the following services: Personnel Administration Administrative Hearings • Review and develop employee handbooks, Arbitrations before professional personnel rules and policies neutrals involving private • Design and assist in implementing discipline, agreement, contract or an grievance and hearing procedures administering agency, such as • Review and develop recruitment and selection the California State Mediation procedures and Conciliation Service • Wage and hour administration United States Department of • Conduct harassment and discipline training Labor • Termination and layoff; termination agreements Equal Employment Opportunity Commission Collective Bargaining and California Department of Fair Contract Administration Employment and Housing • Employment Development • Contract negotiation, administration and Department enforcement Department of Industrial • Counseling on collective bargaining Relations • Strategy and techniques California Public Employees' • Collective bargaining representation, including Retirement System Board of concession bargaining Administration • California Public Employment Administrative Proceedings Relations Board and Employment Litigation • Civil Service and other Public Agency Commissions and • Disciplinary hearings, grievances and appeals Boards • Investigations • Wrongful termination and harassment • Title VII and Americans with Disabilities Act • Federal and State discrimination and civil rights • Writs of mandate • Appeals 1 MANAGEMENT OF THE FIRM: The firm is owned by Steve A. Filarsky and Sharon A. Watt. Steve A. Filarsky is the managing partner. When the firm was formed in 1986, a decision was made to stay small to provide the personalized service not found at larger firms. NEGOTIATIONS EXPERTISE: Mr. Filarsky has served as a chief management-spokesperson in collective bargaining negotiations with law enforcement, fire protection, transit, teacher, and miscellaneous public employee bargaining units. He has represented the following clients in negotiations: Bear Valley Community City of Lake Elsinore Healthcare District City of La Palma Chino Basin Municipal Water City of Montebello District City of Monterey Park City of Azusa City of Orange City of Baldwin Park City of Palos Verdes Estates City of Buena Park City of Placentia City of Carlsbad City of Redlands City of Chino Hills City of Rialto City of Colton City of San Gabriel City of Commerce City of Signal Hill City of Costa Mesa City of Yorba Linda City of Duarte Eastern Municipal Water District City of Fullerton Orange County Sanitation District City of Glendora Orange County Vector Control District City of Hemet Orange County Water District City of Hermosa Beach South Bay Public Regional City of Hesperia Communications Authority The agreements negotiated on behalf of these and other employers, depending on the particular philosophy and circumstances of a given agency, have run the gamut from brief understandings limited to benefit items to comprehensive labor-type agreements that define substantially all terms of employment, and through management rights and "zipper"types of clauses, providing protection to management's ability to manage the agency. In addition to conducting negotiations and impasse resolutions for public employers, Mr. Filarsky continually works with cities, counties, and other public agencies that employ staff personnel to do their own negotiations. This arrangement has involved all aspects of consultation and related services, including writing initial bargaining proposals, providing training and advice concerning negotiating strategies, and giving general advice when particular problems arise. 2 LEGAL PROCEEDINGS: Mr. Filarsky has represented public employers in administrative hearings before City Councils, Civil Service Commissions, Personnel Commissions, Arbitrators, Equal Employment Opportunity Commission, Fair Employment Practices and Housing Commission, Public Employment Relations Board, and the Unemployment Insurance Appeals Board. He has represented public employers in Superior Court, State Court of Appeal, California Supreme Court, Federal District Court, Ninth Circuit Court of Appeals and United States Supreme Court proceedings. Examples of such representations, in addition to many of the agencies listed earlier, include: City of Bell City of Malibu City of Bell Gardens City of Norco City of Brea City of Ontario City of Burbank City of Pismo Beach City of Costa Mesa City of Pomona City of Downey City of Rancho Cucamonga City of Fountain Valley City of Torrance City of La Mirada County of Riverside City of La Puente Rancho California Water District City of La Verne Twin Cities Police Department City of Manhattan Beach West Cities Police Communications JPA Mr. Filarsky has the unique distinction of prevailing, unanimously, in both the California State Supreme Court (Filarsky v. Superior Court(2002) 28 Cal.4� 419, 49 P.3d 194, 121 Cal.Rptr.2d 844) and the United States Supreme Court (Filarsky v. Delia (2012) 132 S.Ct. 1657). TRAINING: Mr. Filarsky has conducted workshops for employee discipline, performance evaluation, grievance handling, and negotiations for the League of California Cities, California Public Employer Labor Relations Association, California Joint Powers Insurance Authority and many individual clients. MR. FILARSKY'S BACKGROUND: Mr. Filarsky received his Bachelor of Arts degree in Political Science/Public Administration, graduating Magna Cum Laude, from Loyola University of Los Angeles. He received his Juris Doctor degree from Loyola University School of Law, graduating with honors, in December 1979. Mr. Filarsky was admitted to the California State Bar in May 1980. Before becoming an attorney, Mr. Filarsky was responsible for the labor relations program of the City of Garden Grove for three and one-half years. Prior to that, he was employed by the City of Manhattan Beach. 3 REFERENCES California Joint Powers City of La Mirada Insurance Authority Tom Robinson, City Manager Jon Shull, Executive Director (562) 943-0131 (562)467-8717 City of La Palma City of Brea Ellen Volmert, City Manager Tim O'Donnell, City Manager (714) 690-3333 (714) 990-7715 City of Malibu City of Chino Hills Christi Hogin, City Attorney Michael Fleager, City Manager (310) 643-8448 (909) 590-1511 City of Oceanside City of Costa Mesa John Mullin, City Attorney Lance Nakamoto (760)435-3979 Human Resources Manager (714) 754-5899 City of Redlands Enrique Martinez, City Manager City of Culver City (909) 798-7510 Serena Wright Human Resources Director City of San Gabriel (310) 253- 5642 Steve Preston, City Manager (626) 308-2805 City of Fountain Valley Jean Hirai, Personnel Director City of San Marino (714) 593-4400 John Schaefer, City Manager (626) 300-0718 City of Fullerton Gretchen Beatty City of Signal Hill Human Resources Director Ken Farfsing, City Manager (714) 738-6360 (562) 989-7300 City of Lake Elsinore Eastern Municipal Water District Barbara Leibold, City Attorney Paul Jones, General Manager (951)471-0465 (909) 928-3777 Orange County Vector Control District Michael Hearst, General Manager (714) 721-1824 4 s RUTAN RUTAN 6 TUCKER,LLP 1 4 I�4 1 0, 4 4 Not Ratan&Tucker's lawyers are widely known as the best and most effective attorneys in California. Rutan recruits top lawyers from the finest law schools around the country.Asa result,Sultan is staffed with attorneys of the highest caliber who provide the most sophisticated legal services available today. Rutan's commitment to excellence and value set us apart from other top firms,and enable us to meet the challenge of obtaining the desired results for our clients at the best passible cost. Rutan's roots lie in Orange County,California,and trace back to 1906.Today,Retain&Tucker's practice extends nationwide,while maintaining our connection to the fabric of Orange County and California. Retain&Tucker continues to distinguish itself as Orange County's largest full-service law firm,as it has for decades,while also developing a significant presence in Silicon Valley. EXCELLENCE INTEGRITY TEAMWORK NAVIGATE COMPLEX PROBLEMS IN A TIMELY AND EFFICIENT MANNER RWAN&TUCKER People Rutan &Tucker represents a broad spectrum of clients,from major multinational corporations and financial institutions to family-owned businesses and private individuals;from high technology and industrial enterprises to agricultural firms; from real estate developers to governmental agencies,educational institutions, and charities.The firm's practice extends throughout the United States and includes both the representation of foreign companies doing business in the United States and domestic companies engaged in activities abroad. Our attorneys come from more than thirty law schools nationwide. Many graduated Order of the Coif or Phi Beta Kappa,were the editors of law reviews or held judicial clerkships.The accomplishments of our attorneys reflect the quality of Rutan & Tucker. Rutan attorneys teach law school classes and professional education courses. Many Rutan lawyers hold significant positions in trade,charitable and civic organizations. and going forward,we will continue to make history with a continued commitment to excellence and integrity for many decades to come. GUIDE OUR CLIENTS THROUGH DIFFICULT SITUATIONS BUSINESS LITIGATION Appellate Practice Group Banking and Finanve Ccnaructian Law Commerce Recallentl Craditora RIgMs Inull..tual PropaM1y/Tecbnolagy Tax Unfair Compattor/Cla.s Acton Defense Group CORPORATUSECURITIE$aAXpNTELLEC%AL PROPERTY Canting and Rnanse Corporate RasrruaturinA antl Creditors'Slims fuel social PraparN/Fechnolagy We Science. Tax Tru.csTEstetes EMPLOYMENTMBOR Agency.and Plan Ceramics Alce Bart.Dispute R...loti.. Cargil ce Audio Counseling on Compliance and Ummion Avoidance Defense m Class Acton Written Government Agency Enforcement Proceedings and Investigations Human Houses as Policy Review and Development Labor Law Representation Lil,...of Canada...California and Federal Cut. GOVERNMENT&REGULATORY IAW Affordist HmesingrEcanomic Development CondamnatlnNFroperry Valuation Etlucoften Law Envimnmerval Law Government Relations and Political Use Lands selNstral Resowves Tax REAL ESTATE Affects.H...ingfEconomio Development Banking and Finance C.ndemnationfPropen Valuation Construction Use Corporate Resommuring and Cradicam igMs Environmental Law Lend UsslNamr.1 Resources Tex RUTAN&TUCKER Areas of Expertise gotan's BUSINESS LITIGATION lawyers are drdledadvocates arbinatitinL defense ofemplopment class actions Ica'.itin with a track record of courtroom triumphs in federal and state of trade secret and ms---I -Cation courts and stand ready to achieve the best possible litigation Of employers belle i. aUs,agencies, outcome for our clients.Our lawyers appreciate that litigation and incidents,, uc policy review can put a sought on a client's human and financial resources.We and developmmm compliance audits, ith an emphasis on work closely with Our clients to develop case strategies and the unique Mallengem-wmplyirg wilh C,IIfomlalaw Wa also anlNlana that fit Cash client 5'i handle traditional"labor law matters such as union organizing, a trial to judgment in federal or n:. st unfair labor practice claims,grievances and arbitrations,and solution to a business disputer To' ae:ycs u Uawp.rag(,uffiors collective bargaining. with extensive experience with mediation,arbitration and other alternative dispute resolution processes.Clients such Futan's GOVERNMENT&REGULATORY LAW lawyers represent cs hl aced corporations pr vafely held entities,early public and private lentsT _Ihn I ir ti clrtiag s wide --i - -ra'ventures,not decline organizations variety of transactional and ' ""C' on our strategic thinking and creative CEOA/NEPA,natural re,, moiuc tit doom l oomverse problem solving I( I eselve their disputes qu'ckh,effectively condemnation don,I, , I I I n rydlmg, and inin text,smcci ecir govachnien'.el relWc, pchip co u,s,labor law,education,municipal finance,elections,water law,and storm Rican,CORPORATE,SECURITIES,Tax and INTELLECTUAL water regulation.We represent stores of public agencies.Our PROPERTY I v of hansactianal legs) public agency clients include cities school and community college ncluding public and districts,water districts,public finance authorities,community private offerings of securities, . I offers.going private service districts,,comics.and other lapel governmental entilie, o periodic reports filed We have a robust practice representing private land owners, :vge Commission,representation businesses,and developers in dealings with public agencies mergers and appointment,corporate finance transactions, Vocal,state&federal)throughout California.As a result of Iax a-lyan:: ucle as popery chances.Our clients are Upon is undvaled expertise,we are at the forefront of evolving included in a record range of industries,including technology, legal developments and are adept at handling Complex problems. information services,manufacturing and construction We often ...... ce.nel trustn, :.-f ants with business Futons REAL ESTATE L.vey,aralvze a 11 cspecs or potential I I _ .,1.relationships,Corporate mac 'i... .Coal I o-der reinserted, sins' :ems.We .. intellectual property protection,I eluding disputes her dicI sale and disposition of real property I I tions in -I`:el ectral pruperty infringement and across I[ ,ur d 1,11 r,hele.ei [lit upjiltaU,ur challenge, owne¢I'I. the depth and breadth of real estate experience allows us to evaluate all aspens of a real estate transaction In a broad range Roan a EMPLOYMENT AND LABOR twits represent private of industries.When your real estate interests intersect with our sector, .leis held companlee)in ogler practices areas,we leverage the Expertise of our lawyers a wide%,, wmatters-Our areas to more efficiently achieve your objectives Wance pmvidetaa, [ed and ral a span wronfulte inMiorts affordable housing enimnme�l,land use,governmental wage defense of discrimination,wre voution(mnmian,and regulation and litigation advice to enhance your real estate wage-0our claims),alternative dispute resolution(mediation or investments o" OUR COMMITMENT TO DIVERSITY IS �' � INSEPARABLE FROM OUR COMMITMENT TO EXCELLENCE RUTAN&TUCKER Diversity Commitment Rutan&Tucker recruits,in ins and promotes talented The Diversiry,Committee's primary task is to assist in retaining professionals from a variety at bacMo,runs a nC ski t sets and promoting women attorneys and associates of all cultures, rest In no In a culture that dr. r.ev. backgrounds,and lifestyles who might face particular challenges Diversity is a valued and imps na at p art of o or on pure in atraditional law firm environment We are pleased that and our community.Our vc :od growl ng number of Rome s sonnets are women and minorities. by decreer for Copper encouragemen t lot all to exrd and equal opportunity for everyone. The firm and Its Diversity Committee promotes mentorship,and senior attorneys conduct small group meetings with associates Recognizing the significant benefits and value of a diverse work to encourage open dialogue on issues of concern.The Diversity force,Rutan&Tucker is Committed to increasing the diversity of Committee also encourages participation in wide-ranging our law firm in a manner that promotes the firm',Core values of activities that promote diversity outside of the firm,such as those excellence,teamwork.and integrity As the largest full service sponsored by the Orange County Diversiry Task Force(of which law firm based in Orange County,California,Rutan has played Rumn is a founding member)and minority bar associations. an active role in the County maturation into a world class metropolitan area that reflects the richness of California's cultural diversity.We strive to achieve that same result within our law firm,acknowledging that diversity benefits our firm,our clients,and our community, Terms ry at Rome means more than a guarantee of equal ope-unityIrhi^inco ponsar on,promotion and itrom �......I ii I Ruran"s commitment to diversity is permanent and ongoing part of firm management occultist Cb,imcces eftmtsto b he ectrardmg sow lawyers of varied backgrounds to more have resulted in new associate classes consisting of more than 50 percent women and 33 percent persons of color over the past five years. OUR PHILANTHROPY Improving the lives of others in our community is just the right thing to do.Given our exceptional talent,Ratan&Tucker is proud to set[he standard for community involvement We perform pro bono legal work through foundations Ratan is involved with,and we support more than 200 charitable programs and philanthropic efforts throughout Orange County and California,including, in part: Anti-Defamafion League Big Brothers big Sisters ( Boys&Girls Club California Hisrorical Group Camp Fire USA Casa Youth Shelter Chapman University Children's Hospital of Orange Coumy ConstiMional Rights Foundation Court Appointed Special Advocates Community In Schools lLlSl Downs Syndrome Association Feir Housing Council Girls lnc. Goodwill Industries Housing wbh Heart Jamboree Hauling Corporation Legal Aitl Society Mariposa Women's &Family Center Olive Crest One OC Orange County Bar Foundation Orange County easiness Council Orange Caunry Children's Therapeutic Arts Caner Segerstram Center For The Arts Public Law Center Raise Foundation Second Harvest Food Bank Share Our Selves Smart Foundation Speciel0lympics S[.Joseph's Hospdal Foundation I Susan G.Kamen Breast Cancer Foundation I D.$. Adaptive Recreation Center We Give Thanks WYland Foundation / 1 O PANGE COO NiV 811 Anton Boulward Suila I4W.COSs Mesa,fA 9SE6 P]Id WISI W f]IQ 61&9W6 PALO ALiO Frve Palo Alm Sq uare.]mP El Camino Peal.9 ui@310.Palo AIm.LA 90.ID6 B9O P PW3ID15U] F b5P 3R09&5 RUTAN RUTAN 6 TUCKER, LLP Firm Overview Rutan &Tuckers highly strategic,forward thinking approach to individual cases and client needs has been the hallmark of the firm since A.W. Rutan opened his first law office in 1906. Rutan&Tucker has enjoyed a leading role in shaping Orange County and California businesses and communities, today standing as the largest full-service business law firm based in Orange County. With approximately 141 attorneys in Orange County and 9 in Palo Alto, Rutan&Tucker is well-positioned to meet the legal needs of a broad range of clients doing business in California and beyond. Rutan&Tucker represents a broad spectrum of clients,from major multinational corporations and financial institutions to family-owned businesses and private individuals;from high-technology and industrial enterprises to agricultural firms;from real estate developers to governmental agencies, educational institutions,and charities.The firm's practice extends throughout the United States and includes both the representation of foreign companies doing business in the United States and domestic companies engaged in activities abroad. Our attorneys come from more than thirty law schools nationwide. Many graduated Order of the Coif or Phi Beta Kappa,were the editors of law reviews or held judicial clerkships.The accomplishments of our attorneys reflect the quality of Rutan &Tucker.The firm has provided a president and two members of the board of governors of the California State Bar and six presidents of the Orange County Bar Association.Some of the firm's attorneys teach professional education courses or law school classes. Many hold significant positions in trade, charitable and civic organizations. The firm's tradition is one of fresh, strategic thinking and going forward, we will continue to make history with a continued commitment to excellence and new thinking for many decades to come. L,IEBERT CASSIDY WHITMORE Firm Resume A PROFESSIONAL LAW CORPORATION EMPLOYMENT LAW I LABOR RELATIONS I EDUCATION LAW I MANAGEMENT TRAINING www.lcwlegal.com FIRM RESUME With offices in Los Angeles, San Francisco, Fresno, and San Diego, Liebert Cassidy Whitmore provides services for a majority of California's public agencies, including special districts. The Firm is a full service employment, and labor relations law firm providing consultation, representation, litigation, negotiation and investigation services to public agency management, as well as legal advice on a variety of business, construction, and facilities issues. In addition, the Firm produces a wide-range of dynamic management training workshops and seminars in employment and labor relations issues to special districts, cities, counties, courts, schools, and community college districts. Negotiation Services Members of Liebert Cassidy Whitmore have successfully negotiated thousands of labor agreements for special districts, cities, counties, and school and college districts. The agreements negotiated on behalf of public employers, depending upon the particular philosophy and circumstances of a given agency, have ran the gamut from brief understandings limited to benefit items to comprehensive labor agreements that define substantially all terms of employment. These comprehensive MOU's, through management rights, waivers and "zipper" type clauses, provide protection to management's ability to manage the agency. Members of the firm are experienced in collaborative/interest based bargaining techniques as well as the more traditional labor negotiations approach. In addition to conducting negotiations for public employers, we continually work with public agencies that employ staff personnel to do their own negotiations. This arrangement has involved all aspects of consultation and related services, including writing initial bargaining proposals, reviewing counter-proposals,providing training and advice concerning negotiating strategies, and giving general advice when particular problems arise. Negotiating Impasses Services provided by members of the firm have included direct participation, as well as general consultation in hundreds of mediation, fact-finding and arbitration proceedings. Strikes We have worked with many public sector clients in contingency planning for job actions and in assisting them in strike-related activities. A firm partner co-authored the "Management Strike Handbook" published by the International Personnel Management Association. ® UEBERT C smY WHrrmo" FIRM RESUME ContractAdministratiion and Grievance Handling The firm has extensive experience in the area of grievance administration, ranging from giving advice at the administrative levels of the grievance process through litigating arbitration cases. Public Employment Relations Board Representation Members of the firm have had many years of experience representing our clients in all phases of PERB proceedings, from consultation and responses to Unfair Labor Practice claims through PERB hearings and court appeals. A firm partner served as counsel to the PERB Board's first Chairperson as well as serving as a PERB Administrative Law Judge. Another firm partner served as a representative of the League of California Cities and the California Association of Counties in the legislative and administrative proceedings in connection with the PERB assuming jurisdiction over local agency employment relations. Our Aoaroach to Negotiations > We work with and for the chief administrative official and his/her designated staff, and through him/her with the Governing Body. We provide professional advice to assist the agency in determining its policy goals and objectives, which then become our goals and objectives; we see our job as applying our best efforts and skills to achieving them. r We believe in carefully organizing for negotiations, with goals and objectives kept well in mind. The negotiating process, we believe, consists of definable stages, from preparatory activities to the preliminary bargaining phases, "hard bargaining," and finally to agreement, impasse procedure, or work action. Each stage of the process requires an organized approach in order to maximize the chances of attaining bargaining objectives. > Our philosophy is not one of"union busting," but rather one of using a professional approach that seeks to achieve and maintain professional relationships, notwithstanding the adversarial aspects of the process. > We call to the attention of our clients that in return for agreeing to competitive benefit adjustments, it is reasonable for them to seek to contractually protect and maximize their management discretion to set standards of service and retain the prerogative to direct, assign, and stimulate employees to meet them. n We see the conclusion of negotiations as the beginning for establishing a constructive employer-employee organization-employee relations structure, which requires management training and ongoing involvement with agency management on our part. ® LIEBERT CAssIDY WHITmo" FIRM RESUME > While one member of the firm handles a particular negotiating unit, at least one other designated attorney will be kept advised so that at all times the client has access to an attorney who is familiar with the status of the situation in each bargaining unit. Local Agency Employment Law Services We have worked closely with city attorneys, county counsels and general counsels, and have directly handled the representation for our local agency clients in literally hundreds of legal proceedings before civil service and personnel boards, arbitrators, the Public Employment Relations Board (PERB), state and federal EEO and other administrative agencies and the courts. These proceedings have covered the full spectrum of employer- employee relations matters, including such matters as civil service appeals, recognition and unit representation matters, unfair labor practice charges and related negotiating issues, employment discrimination matters, pension and disability issues, wrongful termination and Fair Labor Standards Act claims. Investigations Practice Group The firm's Investigation Practice Group specializes in investigating allegations of discrimination, harassment and other misconduct. Our investigative practice primarily serves private sector employers and public sector agencies that are not already firm clients. However, we also represent current clients on a case-by-case basis depending upon the specific facts and allegations at issue. We continue to publish articles and present workshops on the topic of investigations. Our workshops identify the key components of a successful investigation including how and when to begin an investigation, who should conduct the investigation, how to maintain confidentiality, how to organize and execute an effective investigation, and how to evaluate the facts and take corrective action once the investigation is completed. Audit Services By virtue of the public agency background of members of the firm, we have extensive experience in developing local agency Employer-Employee Relations Resolutions/ Ordinances and personnel policies and procedures. A firm partner developed the League of California Cities Sample Employer-Employee Relations and Personnel Policies and Procedures Ordinances. The firm does extensive work in reviewing agency civil service/personnel policies and rules to assure continuing consistency with the ever- changing dictates of EEO and affirmative action, labor relations and other laws and administrative regulations. Members of the firm conduct comprehensive audits regarding agency's compliance with the Fair Labor Standards Act(FLSA). Additionally, the firm publishes a comprehensive guide, "Fair Labor Standards Act: A Public Sector Compliance Guide," that serves as a reference to agencies across the country. M LIEBERT C smy WmTmo" FIRM RESUME To learn more about the FLSA Audits, log onto www.FLSAaudit.com where you can fmd detailed information about what an FLSA audit entails. Contracts, Construction and Facilities We represent and advise special districts on a broad spectrum of issues in business and facilities,both transactional and litigation. Our services include the following: • Pre-bid issues, Bid Protest and Procedures, Subcontractor Substitution Issues • Competitive Bidding and Contract Award Issues • Project Delivery Methods, Architect Agreements, CM/PM Agreements • Course of Construction Issues, Stop Payment Notices, Takeover Agreements • Construction Litigation, Change Orders, Delay Claims • Other Construction Issues, Labor Compliance Programs and Prevailing Wage • Real Property and Eminent Domain, CEQA and Green Building Issues •Non-Construction Contract Review, Purchasing Issues, Surplus Property Distribution Public Safety Representation On a daily basis, LCW provides advice, consul and representation to fire safety and law enforcement management and their respective executives in a variety of issues that impact professional public safety administrators. A number of LCW attorneys have had the privilege of representing public safety professionals for more than 30 years. Having proudly earned the trust and respect of several generations of public safety professionals, LCW accommodates the emergency nature of public safety related employee relations by being readily accessible to assist in addressing issues of administrative leave, administrative/criminal investigations, and investigative methodology and strategic planning. With its immense public safety related experience, LCW brings both legal acumen and practical knowledge to its client interactions. Disciplinary Investigations Our attorneys are experts in both the Firefighters and Public Safety Officers Procedural Bill of Rights and are always available to provide timely advice to your investigators. We routinely review investigations in order to assess the strengths and weaknesses of investigations and any discipline which may result. Our lawyers have obtained important appellate court victories including the following cases: Upland Police Officers Association v. City of Upland (2003) 1It Ca1.AppAth 1294; Gilbert v. Sunnyvale (2005) 130 Cal.AppAth 1264; Steinert v. Covina (2006) 146 Ca1.AppAth 458; Benach v. County of Los Angeles (2007) 149 CalAth 836; and Los Angeles Deputy Sheriffs v. County of Los Angeles, Los Angeles County Sheriff's Department et at(2008) 166 Cal.AppAth 1625. = LIEBERT C smy Wtirrmo E FIRM RESUME We continue to publish articles and present workshops on the topic of internal affairs/ disciplinary investigations. Our workshops identify the key components of a successful investigation including how and when to begin an investigation, who should conduct the investigation, how to maintain confidentiality, how to organize and execute an effective investigation, and how to evaluate the facts and take corrective action once the investigation is completed. Disciplinary Hearings Every disciplinary case is serious, but those which occur in the public safety context are not only serious but also complicated by the special protections afforded to public safety personnel by laws including the Firefighters and Public Safety Officers Procedural Bill of Rights Acts. Our lawyers have successfully handled hundreds of disciplinary cases over the years. Retirement Practice The firm provides advice and counsel to public agencies regarding the laws and regulations of public employee retirement plans, including PERS, the County 1937 Retirement Act, and local agency retirement laws, as well as on retiree health insurance issues. The firm defends public agencies that are sued regarding retirement issues, defends public agencies and their employees and retired employees in retirement in cases where PERS acts to reduce benefits, and represents public agencies in disability and industrial disability retirement appeals. The firm helps agencies defend against PERS and other retirement board audits and, where necessary, files administrative appeals to challenge any negative audit findings. Members of the firm advise on all issues related to PERS, 1937 Act and STRS benefits. For example, we provide advice and counsel to clients regarding retirement formulas, the rules on reportable compensation, PERS and 37 Act contract amendments, disability retirement procedures and obligations, service credit, GASB issues, unfunded liabilities, retiree health benefits, vested rights and elected official benefits. Retirement issues have major impacts on agency labor relations. The firm provides strategy and guidance during negotiations in regards to retirement benefits, including acting as chief negotiator. We review agency policies and collective bargaining agreements/memoranda of understanding to ensure that they comply with applicable law. We represent agencies in retirement related administrative appeals and litigation, and have assisted agencies defend claims of underfunding as well as fiduciary obligations. iili® LIEBERT C smy Wturmo E FIRM RESUME Litigation Services Liebert Cassidy Whitmore attorneys strive to prevent employment or other disputes before they arise through education, training, audits, advice, planning, and cooperative employer-employee relations. When employment or other disputes do arise, our defense efforts are designed to meet each client's particular needs, goals, and budget. We specialize in representing public agencies in the defense of legal actions and enjoy the reputation of a results-oriented, successful litigation firm. We are experts in all phases of litigation in both federal and state courts: pleading, discovery, motion practice, alternative dispute resolution, settlement and trial. Our particular expertise is the defense of public agencies in actions brought by employees, former employees, applicants or other individuals alleging employment related claims such as violations of the California Fair Employment and Housing Act; Federal Civil Rights Acts (e.g., section 1981 and 1983 claims); Americans with Disabilities Act; Age Discrimination in Employment Act; Fair Labor Standards Act; Meyers-Milias-Brown Act; Family and Medical Care Leave Acts; wrongful termination; and violation of state and/or federal constitutional rights such as due process, First Amendment and privacy rights. The firm's attorneys have handled a number of cases that have culminated in jury trials resulting in defense verdicts. These cases included claims for violation of constitutional rights; violation of the Age Discrimination in Employment Act; violation of the disability provisions contained in the Fair Employment and Housing Act; reverse discrimination; sex discrimination; sexual harassment; national origin discrimination; age discrimination; intentional infliction of emotional distress and retaliation claims under both state and federal laws. Our expertise also includes defending and prosecuting claims on behalf of public entities related to business, contract and property issues and construction projects and practices, including contract disputes, delay claims, assessment of liquidated damages, stop payment notice claims, subcontractor substitutions, boundary disputes, and many other construction and business related claims. Consulting and Training Services One of the firm's greatest sources of accomplishment comes from its record of success in counseling and advising its clients on the best ways to avoid becoming a party to adversary proceedings. We were "pioneers" in the raining field by creating "consortiums" of agencies. The thirty-two Employment Relations Consortiums (ERCs) are comprised of over 500 special districts, cities, counties, schools, and community college districts as well as other public sector agencies. M LIEBERT C smY WHrrmo" FIRM RESUME As part of our ERC services, we provide ongoing training on current developments in labor relations and personnel law on subjects including negotiation strategies; performance evaluations; disciplinary actions; employment discrimination, including harassment and ADA issues; Family and Medical Care Leave Acts; violence in the workplace; effective supervision; grievance administration; law enforcement issues and special workshops for governing board members. Experience over the years confirms that not only have the member agencies found the consulting and training services helpful, but an invaluable opportunity for the exchange of ideas and information between agency management. The firm provides individual training services to public agencies on a half-day or full- day basis. We customize these training programs to the precise needs of the client. Members of the firm make presentations on employment relations law issues to a variety of professional organizations including: Association of California Water Agencies Association of Chief Business Officials California Association of Joint Powers Authorities California County Counsels Association California Fire District Association California Law Enforcement Association of Records Supervisors California Municipal Finance Officers California Peace Officers Standards and Training(POST)Academy California Police Chiefs Association California Public Employer Labor Relations Association California Sanitation Risk Management Authority California Special Districts Association California State Bar Labor and Employment Law Section California State Sheriffs Association Fire Districts Association of California International Personnel Management Association League of California Cities 6033 West Century Blvd. 153 Townsend St. 5250 North Palm Ave. 550 West"C"Street 5th Floor Suite 520 Suite 310 Suite 620 Los Angeles,CA 90045 San Francisco,CA 94107 Fresno,CA 93704 San Diego,CA 92101 te1: 310.981.2000 te1:415.512.3000 te1:559.256.7800 te1:619.481.5900 fax:310.337.0837 fax:415.856.0306 fax:559.449.4535 fax:619.446.0015 ® LIEBERT CASSmY WHITMORE STEERING COMMITTEE Meeting Date TOBd.of Dir. 01/27/16 O1/27/16 AGENDA REPORT IbernMamber Item Number a 17 Orange County Sanitation District FROM: James D. Herberg, General Manager Nick Arhontes, Director of Facilities Support Services SUBJECT: LOCAL SEWER FACILITIES TRANSFER AGREEMENT WITH IRVINE RANCH WATER DISTRICT GENERAL MANAGER'S RECOMMENDATION Approve Local Sewer Facilities Transfer Agreement with Irvine Ranch Water District regarding the transfer of local sewers in Service Area 7. SUMMARY BACKGROUND At its December 2015 regular meeting, the Board approved Amendment No. 2 to the Local Sewer Facilities Transfer Agreement with East Orange County Water District (EOCWD) to: 1) extend the agreement by 12 months to December 31, 2016; 2) allow for reimbursement of up to $255,000 of EOCWD's accumulated costs; and 3) allow Orange County Sanitation District (OCSD) to negotiate with other entities regarding the transfer of local sewer facilities. The proposed transfer of ownership of the local sewers requires an Orange County Local Agency Formation Commission (LAFCO) approved reorganization. EOCWD initiated the LAFCO process in March 2014 by filing an application for reorganization. Irvine Ranch Water District (IRWD) has also submitted an application to assume the local sewer ownership in Service Area 7. In accordance with amendment No. 2, OCSD staff has negotiated terms with Irvine Ranch Water District for transfer of local sewer facilities with language that secures wastewater flows for the Groundwater Replenishment System (GWRS). RELEVANT STANDARDS • Meet volume and water quality needs to support the GWRS • Maintain collaborative and cooperative relationships with neighboring agencies • Maintain a proactive asset management program Page 1 of 3 PROBLEM OCSD has a Strategic Plan goal to transfer local sewer service to a local retail agency. LAFCO may determine that IRWD take on local sewer service in Service Area 7, rather than EOCWD. Currently OCSD and IRWD do not have an approved agreement on the terms of such a transfer. In the absence of such an agreement, LAFCO could impose conditions on the transfer. PROPOSED SOLUTION An agreement has been negotiated to address OCSD's and IRWD's interests in the event that OC LAFCO determines that the local sewers will be transferred to IRWD. The draft agreement includes provisions to ensure wastewater flows for the GWRS. TIMING CONCERNS The LAFCO Commission has discussed considering both EOCWD and IRWD's applications by May, 2016. Therefore, it is important that the agreement with IRWD be put in place in a timely manner so that the process can proceed. RAMIFICATIONS OF NOT TAKING ACTION Without an agreement between IRWD and OCSD, the local sewer transfer process might stall. If IRWD's proposal moves forward without an agreement with OCSD, LAFCO could impose conditions that have not been negotiated by OCSD. PRIOR COMMITTEE/BOARD ACTIONS December 2015 — Board Item No. 20: approval of an Amendment with EOCWD which allows OCSD to negotiate with other entities regarding the transfer of local sewer facilities. ADDITIONAL INFORMATION N/A CEQA N/A Page 2 of 3 FINANCIAL CONSIDERATIONS This proposed agreement transfers local sewer reserves of approximately$30 million and ongoing user fees to IRWD. In turn, IRWD assumes responsibility for the ongoing cost and maintenance of local sewer service. ATTACHMENT The following attachment(s) are attached in hard copy and may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: • Draft Local Sewer Facilities Transfer Agreement (without attachments) • Attachments (200 pages are included in on-line version and are also available to be viewed in the office of the Clerk of the Board.) Page 3 of 3 ITEM NO. 18 MINUTES OF THE LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE Orange County Sanitation District Monday, December 14, 2015, at 8:00 a.m. A regular meeting of the Legislative and Public Affairs Committee was called to order by Vice-Chair Seboum on Monday, December 14, 2015 at 8:00 a.m., in the Administration Building of the Orange County Sanitation District. Director Kim led the pledge of allegiance. A quorum was declared present, as follows: COMMITTEE MEMBERS PRESENT: STAFF PRESENT: Greg Sebourn, Board Vice-Chair Jim Herberg, General Manager Tom Beamish, Director Nick Arhontes, Director of Facilities Robert Kiley, Director Support Services Peter Kim, Director Rob Thompson, Director of Engineering Lucille Kring, Director Lorenzo Tyner, Director of Finance & Administrative Services COMMITTEE MEMBERS ABSENT: Kelly Lore, Clerk of the Board John Nielsen, Board Chair Jennifer Cabral John Withers, Director Jim Colston Chad Crow Norbert Gaia Al Garcia Rebecca Long OTHERS PRESENT: Brad Hogin, General Counsel Eric Sapirstein, ENS (via Teleconference) Eric O'Donnell, Townsend Public Affairs Cori Williams, Townsend Public Affairs PUBLIC COMMENTS: None. 12/14/2015 Legislative and Public Affairs Committee Minutes Page 1 of 4 REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. None. CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted, by the Board of Directors, after one motion, without discussion. Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 1. APPROVAL OF MINUTES (Clerk of the Board) MOVED, SECONDED and DULY CARRIED TO: Approve minutes for the Committee meeting held on November 9, 2015. AYES: Beamish, Kiley, Kim, Kring, and Sebourn NOES: None ABSTENTIONS: None ABSENT: Nielsen and Withers NON-CONSENT CALENDAR: Assistant General Manager Bob Ghirelli introduced Item No. 2 and Senior Public Affairs Specialist Rebecca Long who provided a PowerPoint presentation and overview of the 2016 Legislative Plan including: advocacy, legislative highlights and the OCSD Federal and State priorities. Ms. Long further provided a 2015 bill update and specifically discussed the efforts regarding SB 163 (Hertzberg). Director Beamish suggested and the committee concurred to add a statement to State and Federal priorities to support efforts to secure our water supply including water storage, water quality and availability. 2. APPROVAL OF 2016 LEGISLATIVE PLAN (Bob Ghirelli) MOVED, SECONDED and DULY CARRIED TO: Recommend to the Board of Directors to: Approve the Orange County Sanitation District 2016 Legislative Plan as amended. AYES: Beamish, Kiley, Kim, Kring, and Sebourn NOES: None ABSTENTIONS: None ABSENT: Nielsen and Withers 12/14/2015 Legislative and Public Affairs Committee Minutes Page 2of4 INFORMATION ITEMS: Vice-Chair Sebourn moved item 4 forward as requested by staff. 4. LEGISLATIVE UPDATE (Rebecca Long) Senior Public Affairs Specialist, Rebecca Long introduced Cori Williams from Townsend Public Affairs, who provided information regarding: California's fiscal outlook as reported by the LAO; Executive Order 8-36-15 which gives the State Water Resources Control Board authority to extend restrictions in accordance with the drought; public workshop regarding extension of emergency conservation regulations; Senator Pavley's hearing to address underfunded water needs; and WateReuse bottling education. Ms. Williams informed the Committee that the Legislature reconvenes on January 411. Eric Sapirstein, ENS Resources, provided an informative presentation regarding: Budget agreement between House and Senate; funding of water infrastructure needs; Drought relief bill update; and an update on H.R. 3353 (Hunter) Citizen suits. 3. PUBLIC AFFAIRS UPDATE (Jennifer Cabral) Principal Public Affairs Specialist, Jennifer Cabral provided an update on Public Affairs community education outreach for the month and explained the process and decision making regarding participation at City/Community events that will be focused on for 2016. Ms. Cabral stated a draft plan will be provided to the Committee in March. Ms. Cabral also informed the committee of other proposed outreach efforts including: career outreach; educational and professional outreach opportunities such as: American Academy of Environmental Engineers and Scientists, CASA Educational Foundation Scholarship Program, Gift of History; and media relations including published articles and a television opportunity for our General Manager and OCWD General Manager on the Discovery Science Channel. Vice Chair Sebourn also expressed his approval of the white paper presentations used for the Strategic Plan Update process as a method to promote OCSD. OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: None. 12/14/2015 Legislative and Public Affairs Committee Minutes Page 3of4 ADJOURNMENT: Vice Chair Sebourn declared the meeting adjourned at 8:49 a.m. to the next Legislative and Public Affairs Committee Meeting, February 8, 2016 at 8:00 a.m. Submitted by: Kelly A. Lore Clerk of the Board 12/14/2015 Legislative and Public Affairs Committee Minutes Page 4 d4 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. -- Ol/27/2016 AGENDA REPORT emMamber Item 9 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: OCSD JOINT RESOLUTION WITH OCWD OF SUPPORT FOR THE METROPOLITAN WATER DISTRICT INDIRECT POTABLE REUSE PROJECT GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 16-01 entitled, "A Resolution of the Board of Directors of Orange County Water District and the Orange County Sanitation District supporting the Metropolitan Water District of Southern California's efforts to develop a Groundwater Replenishment System type project with Los Angeles County Sanitation District No. in the City of Carson." SUMMARY BACKGROUND The Metropolitan Water District of Southern Califomia (MWD) is considering an indirect reuse project to reclaim treated wastewater from the Sanitation Districts of Los Angeles County. The project would be similar to the Groundwater Replenishment System (GWRS). The attached resolution pledges both the Orange County Sanitation District (OCSD) and the Orange County Water District's (OCWD) support to advance this project. RELEVANT STANDARDS • Unified legislative advocacy and public outreach program • Build brand, trust, and support with policy makers and community leaders • Use all practical and effective means for recovering wastewater for reuse • Maintain collaborative and cooperative relationships with neighboring agencies PROBLEM Both OCSD and OCWD have expertise in permitting, designing, constructing and operating the GWRS.This expertise and knowledge sharing can be beneficial to MWD in developing this new project. Page 1 of 3 PROPOSED SOLUTION Adopt a resolution supporting the MWD efforts to develop a groundwater replenishment type project. This resolution will include providing technical support and consultation as needed to MWD. TIMING CONCERNS Approval for a one million gallon per day (mgd) demonstration project was approved in November 2015. This demonstration facility will be used to conduct a feasibility study for a full-scale project to produce up to 150 mgd of purified recycled water. Support early on will illustrate industry support, dedication to water recycling and collaboration. RAMIFICATIONS OF NOT TAKING ACTION Support by OCSD and OCWD can provide positive media or community impressions in support of GWRS and other water reuse projects. PRIOR COMMITTEE/BOARD ACTIONS January 2016—GWRS Steering Committee:Approval to place on agenda forthe January 20th OCWD Board meeting and January 27th OCSD Board meeting to: Adopt resolution supporting the Metropolitan Water District efforts to implement an indirect potable reuse project with County Sanitation District No. 2 of Los Angeles County. ADDITIONAL INFORMATION The Los Angeles County Joint Water Pollution Control Plant in the City of Carson currently treats approximately 270 million gallons of day of wastewater to secondary standards before it is discharged through outfall tunnels to the Pacific Ocean. MWD is working with the Los Angeles County Sanitation District to potentially construct a GWRS type project at the Carson plant to purify and create up to 150 million gallons per day of new water supplies to be used to replenish local groundwater basins in Southern California. CEQA N/A FINANCIAL CONSIDERATIONS N/A Page 2 of 3 ATTACHMENT The following attachment(s)is attached in hard copy and may also be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: Resolution No. OCSD 16-01 Page 3 of 3 RESOLUTION NO. OCSD 16-01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY WATER DISTRICT AND THE ORANGE COUNTY SANITATION DISTRICT SUPPORTING THE METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA'S EFFORTS TO DEVELOP A GROUNDWATER REPLENISHMENT SYSTEM TYPE PROJECT WITH LOS ANGELES COUNTY SANITATION DISTRICT NO. 2 IN THE CITY OF CARSON WHEREAS, the Orange County Water District (OCWD) was formed by a special act of the California Legislature in 1933 to sustainably manage and protect the Orange County Groundwater Basin and protect the area's rights to flows in the Santa Ana River; and WHEREAS, the Orange County Sanitation District (OCSD) is a duly organized County Sanitation District existing pursuant to the County Sanitation District Act of 1923, California Health and Safety Code section 4700, at seq., providing for the ownership, operation, and maintenance of wastewater collection, treatment and disposal facilities within Orange County, California. WHEREAS, OCWD and OCSD have worked very closely to recycle all wastewater that is available at OCSD Reclamation Plant Number 1 with the Groundwater Replenishment System (GWRS); and WHEREAS, the GWRS is the world's largest advanced water purification facility of its kind and is now producing approximately 100 million gallons per day of new water supply and plans are being developed by OCWD and OCSD to expand the facility up to 130 million gallons per day, which is enough water for more than one million residents and businesses in north and central Orange County; and WHEREAS, OCWD and OCSD have gamered more than 40 awards for the development, construction and operation of the GWRS from organizations around the world, including the 2008 Stockholm Industry Water Prize, the 2014 U.S. Water Prize, and the 2014 Lee Kuan Yu Prize, bestowed upon OCWD by the nation of Singapore for its GWRS, groundwater management and education programs; and WHEREAS, OCWD has committed to purchase and recharge 650,000 acre-feet of untreated full service imported water supply from the Metropolitan Water District of Southern California (MWD) through MWD's representative, the Municipal Water District of Orange County, over the next ten years; and WHEREAS, the purified water from the new water reuse project proposed by MWD and the Los Angeles County Sanitation District (LACSD) No.2 could replace a portion of the 650,000 acre-foot commitment or provide additional water to OCWD to recharge the OCSD 16-01-1 Orange County Groundwater Basin; and WHEREAS, OCWD and OCSD have acquired significant technical and public engagement expertise in planning, developing, funding, building, and operating the GWRS that could be beneficial to MWD and LACSD No. 2 in building the most efficient and cost effective project in a timely manner; and WHEREAS, the reliability of imported water supply sources is being challenged as numerous environmental, agricultural and urban interests maneuver to obtain greater shares of these water sources from the Colorado River and State Water Project; and WHEREAS, the local multi-billion dollar economy requires a reliable and sustainable water source to remain healthy and strong; and NOW, THEREFORE, the Board of Directors of the Orange County Water District and the Orange County Sanitation District DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows: Section 1: OCWD and OCSD will provide technical support as needed to MWD and the LACSD to assist in developing the proposed water reuse project. Section 2: The types of technical support provided will include, but not be limited to: (1) Permitting, (2) Injection well construction and operation, (3) Treatment plant design, (4) Optimizing plant operations, (5) Public engagement and support, (6) Recharging the water, and (7) Institutional coordination. Section 3: OCWD and OCSD will work with the MWD and the LACSD to maximize how much of the water being created from this project can be annually recharged into the Orange County Groundwater Basin. Section 4: OCWD, OCSD, the MWD, the and LACSD should all work collaboratively to ensure the proposed project is successfully constructed and operated with communitywide support and minimal delays and in the most effective, cost efficient and environmentally sound manner as possible. As such, entering into a memorandum of understanding between the four agencies is strongly encouraged. OCSD 16-01-2 PASSED AND ADOPTED at a regular meeting of the Board of Directors held January 27, 2016. John Nielsen Board Chair ATTEST: Kelly A. Lore, Clerk of the Board OCSD 16-01-3 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 16-01 was passed and adopted at a regular meeting of said Board on the 27'h day of February 2016, 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 27'h day of February 2016. Kelly A. Lore Clerk of the Board of Directors Orange County Sanitation District OCSD 16-01-4 BOARD OF DIRECTORS Meeting Date To Bd.of Dir. -- O1/27/16 AGENDA REPORT IbemMamber Iem2umber zo Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Bob Ghirelli, Assistant General Manager SUBJECT: CO-SPONSOR PROPOSED BILL TO BOTTLE ADVANCED PURIFIED WATER FOR EDUCATIONAL PURPOSES GENERAL MANAGER'S RECOMMENDATION Ratify and approve the GWRS Steering Committee recommendation to co-sponsor with Orange County Water District (OCWD) proposed legislation to bottle GWRS water for educational purposes and emergencies. SUMMARY On January 4, 2016 WateReuse requested that OCWD and OCSD co-sponsor proposed legislation to bottle advanced purified water (formerly wastewater) for educational purposes. It has been demonstrated that tasting the Groundwater Replenishment System (GWRS) water is safe and has a reputation of being the state's leading example of water recycling. Additionally, the bottled water could be used as a source of water during an emergency, such as an earthquake. RELEVANT STANDARDS • Unified legislative advocacy and public outreach program • Build brand, trust, and support with policy makers and community leaders • Use all practical and effective means for recovering wastewater for reuse • Maintain collaborative and cooperative relationships with neighboring agencies PROBLEM Many Californian's do not have an opportunity to experience GWRS and how its cutting edge technology is being used to purify wastewater to a near-distilled quality to protect and replenish the Orange County groundwater basin. PROPOSED SOLUTION This bill provides an opportunity to educate Californians about GWRS and its role in helping provide solutions to California's persistent drought and water supply shortage issues. Bottling the water also allows Board members and staff the ability to transport GWRS water to conferences and presentations, making the experiences more impactful. Page 1 of 2 TIMING CONCERNS The last day to submit bill requests to the Office of Legislative Counsel was January 22. As such, this request was taken to the joint GWRS Steering Committee on January 11. The committee approved the request to co-sponsor legislation to bottle GWRS water for educational purposes and emergencies. RAMIFICATIONS OF NOT TAKING ACTION If OCSD did not co-sponsor this bill, we would lose an opportunity to educate Californians about GWRS and its role in helping provide solutions to California's persistent drought and water supply shortage issues. PRIOR COMMITTEE/BOARD ACTIONS On January 11, the GWRS Steering Committee took action to support the co-sponsorship of legislation to bottle GWRS water for educational purposes and emergencies. ADDITIONAL INFORMATION At the December 14, 2015 Legislative and Public Affairs Committee meeting it was discussed underthe state legislative update that OCWD and Water Reuse would propose legislation to bottle GWRS water for educational purposes and emergencies. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.com) with the complete agenda package: N/A Page 2 of 2 BOARD OF DIRECTORS Meeting Date ToOl/2 Bd.7/16of Dir. -- AGENDA REPORT IbemMamber Iem2umber n Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Lorenzo Tyner, Director of Administrative Services SUBJECT: WASTEWATER REFUNDING REVENUE OBLIGATIONS, SERIES 2016A GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to issue new fixed rate Certificates of Participation (COP), to be referred to as Wastewater Refunding Revenue Obligations, in an amount sufficient to refund up to $162,780,000 of COP Series 2009A. SUMMARY BACKGROUND Since the last refunding issuance by the Sanitation District in January 2015, long-term tax-exempt interest rates increased, then peaked during the summer of 2015, and have since decreased with a strong rally over the past couple of months. The recent drop in long-term tax-exempt rates has occurred even as the Federal Reserve raised short-term interest rates on December 16, 2015. The decrease in long-term tax- exempt interest rates can be attributed to the lack of municipal new issuance volume, continued inflows of cash from investors into municipal bond funds, along with greater bond redemptions than new issuance, and recent global market concerns(e.g. China). The following is the recent rate history of the AAA GO Municipal Market Data Index for the 2030 maturity (which reflects the average life of the potential refunding candidates described below): 2030 AAA GO MMD September 1,2014 to Present 3.0% 2.8% 2.6% 2.4 2.2% VV 2.0% Q Q Q Q N N N N N N N N N N N N t0 W O N N l7 Q In (O n W Ol O N Date f Page 1 of 5 With the decline in long-term tax-exempt interest rates, there is the potential opportunity to refinance the outstanding callable COP Series 2009A maturities to reduce interest costs for the Sanitation District. In addition, the increase in short-term taxable rates, due to the recent Fed action, makes the refunding of the COP Series 2009A more efficient as higher investment rates lowers the amount of new debt required to refund the old debt. Under current market conditions, the $162,780,000 callable maturities of the COP Series 2009A may be advance refunded generating in excess of 3.0% net present value savings (the minimum percentage required by the Sanitation District's debt policy). The savings are contingent on market conditions at the time of the refunding sale. The outstanding amount of COP Series 2009A is currently$180,235,000 which includes $17,455,000 of non-callable COPS. Approval of the recommended action above will direct staff to begin the process of refunding all, or a portion, of the outstanding $162,780,000 COP Series 2009A utilizing the assistance of Public Resources Advisory Group (PRAG), as financial advisor, and the bond counsel firm of Norton Rose Fulbright ("Norton Rose"). RELEVANT STANDARDS • OCSD Debt Policy - Financial Management Policy and Procedure No. 201-3-1 • Easy access to low cost credit. PROBLEM As a result of the current low interest rate environment on long term tax exempt debt, the District has an opportunity to refund existing outstanding debt and generate debt financing savings. PROPOSED SOLUTION The issuance of up to $162.8 million of COP Series 2009A would generate up to $19 million in present value savings. TIMING CONCERNS There is a window of opportunity to refund existing debt at lower interest rates that close in the near term. The proposed refinancing schedule calls for the refinancing to be completed in April. Page 2 of 5 RAMIFICATIONS OF NOT TAKING ACTION Not taking action would result in a lost opportunity to save future debt service costs as the existing debt structure has been taking in to consideration in the development of the current ten-year cash flow forecast. PRIOR COMMITTEE/BOARD ACTIONS December 17, 2014: Approved Resolution No. OCSD 14-19, authorizing the execution and delivery by the District of an Installment Purchase Agreement, a Trust Agreement, an Escrow Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Wastewater Refunding Revenue Obligations, Series 2015A, authorizing the execution and delivery of such Revenue Obligations evidencing principal in an aggregate amount of not to exceed $150,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Revenue Obligations and authorizing the execution of necessary documents and related actions. September 24, 2014: Approved Resolution No. OCSD 14-12, authorizing the execution and delivery by the Orange County Sanitation District of an Installment Purchase Agreement, a Trust Agreement and a Continuing Disclosure Agreement in connection with the execution and delivery of Orange County Sanitation District Revenue Refunding Certificate Anticipation Notes, Series 2014B, authorizing the execution and delivery of such Notes evidencing principal in an aggregate amount of not to exceed $135,000,000, approving a Notice of Intention to Sell, authorizing the distribution of an Official Notice Inviting Bids and an Official Statement in connection with the offering and sale of such Notes and authorizing the execution of necessary documents and related actions. ADDITIONAL INFORMATION The Sanitation District currently has 12 series of debt issuances outstanding in the par amount of $1.14 billion. The table below lists each issuance, the outstanding amount, and the interest rate mode. Outstanding Interest Rate ParAmount(') Mode Series 2015A Refunding(') $ 127,510,000 Fixed Rate Series 2014B CANS(') 120,850,000 Fixed Rate(two-year) Series 2014A Refunding(2) 85,090,000 Fixed Rate Series 2012B Refunding(4) 66,395,000 Fixed Rate Series 2012A Refunding(5) 100,645,000 Fixed Rate Series 2011A Refunding(4)(5) 111,465,000 Fixed Rate Series 201006) 157,000,000 Fixed Rate Page 3 of 5 Series 20100) 80,000,000 Fixed Rate Series 20090) 180,235,000 Fixed Rate Series 2008B Refundini 8,815,000 Fixed Rate Series 200713M 13,885,000 Fixed Rate Series 2007A Refundini 92,140,000 Fixed Rate Total : $1,144,030,000 (1) As of January 1,2016 (2) Refunded a portion of Series 2007B (3) Series 2014B are fixed two-year certificate of anticipation notes(CANS),that refunded a series of previous one-year CANS,that were issued to refund the Series 2006 Daily Variable Rate that were supported by a weak liquidity facility bank. (4) Refunded a portion of Series 2000 (5) Refunded a portion of Series 2003 (6) New money debt issue (7) Series 2008B refunded the Series 1993 Synthetic Variable-tc-Fixed Rate Debt issue that was supported by a failing insurance provider. Series 1993 along with the Series 1992 refunded the Series 1986 and a portion of the Series"B-COPs. (8) Assumes Series 2016A refunds all callable matunfies Refunding Strategy Depending on market conditions, staff is proposing to refund up to $162,780,000 of COP Series 2009A maturing in years 2020 through 2039 with annual coupon rates of 4.75- 5.00%, as shown in the chart below. A refunding of these maturities would produce $19.06 million in present value savings (11.7% of refunded par) in the current market. Maturity Principal Amount Cou all Da 02/01/20 $4,925,000 5.00% 02/01/19 02/01/21 5,170,000 5.00% 02/01/19 02/01/22 5,425,000 5.00% 02/01/19 02/01/23 5,700,000 5.00% 02/01/19 02/01/24 5,985,000 5.00% 02/01/19 02/01/25 6,285,000 5.00% 02/01/19 02/01/26 6,595,000 5.00% 02/01/19 02/01/27 6,925,000 5.00% 02/01/19 02/01/28 7,275,000 5.00% 02/01/19 02/01/29 7,635,000 5.00% 02/01/19 02/01/30 8,020,000 4.75% 02/01/19 02/01/35 46,525,000 5.00% 02/01/19 02/01/39 46,315,000 5.00% 02/01/19 Total : $ 162,780,000 Timeline Since the proposed refunding is interest rate sensitive, staff has not initially brought forth this authorization to proceed to the Administration Committee. If the Board grants the authorization to proceed with the refunding, staff will bring forth the requisite financing documents to the February Administration Committee for approval followed by a request Page 4 of 5 to approve the financing documents at the February Board meeting. Also, since the refunding is a fixed-rate debt issuance, staff is proposing to issue the refunding through a competitive sale because it is the most expeditious way to access the market and it is expected to provide the lowest interest cost for this given structure. ➢ Administration Committee considers legal and disclosure documents ➢ Board considers legal and disclosure documents February ➢ Financing Corporation considers legal and disclosure documents ➢ Rating Agency discussions ➢ Publish Notice of Intention to Sell March ➢ Marketing and Sale through a Competitive Sale Process April ➢ Closing ➢ Begin debt administration All costs involved with the refunding, including costs for PRAG and Norton Rose will be paid from the proceeds of the new refunding issue. CEQA N/A FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s)may be viewed on-line at the OCSD website(www.ocsd.corn with the complete agenda package: N/A Page 5 of 5 OPERATIONS COMMITTEE Meedngflale TOBd.0111M. 01/06/16 O1/z7/16 AGENDA REPORT em 7 mbe Item Number 7 22 Orange County Sanitation District FROM: James D. Herberg, General Manager Originator: Rob Thompson, Director of Engineering SUBJECT: PROPOSED ADOPTION OF WASTEWATER DISCHARGE REGULATIONS, ORDINANCE NO. OCSD-48 GENERAL MANAGER'S RECOMMENDATION A. Introduce Ordinance No. OCSD-48, entitled "An Ordinance of the Board of Directors of Orange County Sanitation District Establishing Wastewater Discharge Regulations, Revising Articles 1 through 8, and repealing Ordinance No. OCSD-39" for first reading at the January 27, 2016 Board meeting; and B. Motion to read Ordinance No. OCSD-48 by title only and waive reading of said entire Ordinance on January 27, 2016; and C. Set February 24, 2016, as the date for the second reading and adoption of Ordinance No. OCSD-48; and D. Direct the Clerk of the Board to publish summaries of the Ordinance as required by law. SUMMARY The proposed revisions to the Wastewater Discharge Regulations include revisions to the Local Limits table and changes that are administrative and regulatory in nature. These revisions are a result of changes required or recommended by the United States Environmental Protection Agency (EPA) and the Santa Ana Regional Water Quality Control Board. The Orange County Sanitation District (OCSD) is making additional changes to facilitate OCSD's ability to achieve long-term compliance for the National Pretreatment Program under the Clean Water Act, National Safe Drinking Water Act, the National Pollutant Discharge Elimination System (NPDES) Permit, water recycling, biosolids requirements, and air quality. BACKGROUND OCSD's Environmental Compliance Division is responsible for administering and enforcing OCSD's Wastewater Discharge Regulations and National Pretreatment Program through an extensive permitting, monitoring, and enforcement program to regulate the discharge into local sewers of pollutants from industrial and commercial facilities. Page 1 of 4 The National Pretreatment Program is derived from the federal Clean Water Act amendments of 1977 (CWA). The Pretreatment Program was established to regulate the introduction of pollutants into the sewer system from industrial sources. Discharges targeted for regulation include those that will interfere with a treatment or reclamation facility operation, that may pass through the treatment works and cause environmental harm, or that are otherwise incompatible with such works. The Pretreatment Program is also intended to improve opportunities to reclaim municipal wastewater and biosolids. Recognizing the need to control the quality of wastewater discharges, the Board of Directors adopted the first Ordinance in February 1954, which was amended in February 1958, and again in April 1970. The 1970 amendments formally established OCSD's Source Control Program for the purpose of issuing permits, setting discharge limits, and monitoring industrial discharges to the sewer system. In July 1976, the Ordinance was expanded to include numerical discharge limits for heavy metals. In July 1983, the Ordinance was again amended to include enforcement of EPA's newly promulgated categorical pretreatment regulations and to modify OCSD's local limits for cadmium, copper, and toxic organics at the levels currently enforced. In September 1989, the Ordinance was further amended to include revisions to the Federal Categorical Pretreatment Standards and other provisions for implementation of a waste minimization program and escalated enforcement proceedings. In February 1992, the Ordinance was revised to incorporate new federal and state regulatory mandates for the administrative and civil penalties. In July 1998, the Ordinance was again amended to include the newly-adopted policy pertaining to fees and charges for the use of OCSD's sewer system. In May 2007, the Ordinance was amended to transfer sanitary sewer charges into a separate Fee Ordinance. In September 2009, administrative updates were made to the Ordinance. RELEVANT STANDARDS • Federal Clean Water Act Requirements, Ocean Discharge Permit • Code of Federal Regulations (CFR), Title 40, Pretreatment Regulations • Support the Groundwater Replenishment System • California Code of Regulations, Title 22 PROBLEM OCSD is required to have a Pretreatment Program that is approved by the EPA and California Regional Water Quality Control Board, Santa Ana Region (RWQCB). As part of this requirement, OCSD must operate pursuant to legal authority enforceable in federal, state or local courts, which authorizes or enables the Publicly Owned Treatment Works (POTW) to apply and enforce any pretreatment requirements developed pursuant to the CWA and implementing regulations [40 CFR 403.9(b)] and to "provide a written technical evaluation of the need to revise local limits under Page 2 of 4 40 CFR 403.5(c)(1), following National Pollution Discharge Elimination System (NPDES) permit issuance or reissuance" [40 CFR 122.440)(2)(ii)], and must continue to develop and revise local limits as necessary [40 CFR 403.5(c)(1)]. PROPOSED SOLUTION OCSD has performed a technical evaluation of the need to revise local limits and is promulgating changes to the Wastewater Discharge Regulations in accordance with federal and state law. OCSD's Wastewater Discharge Regulations: is a legal mechanism implemented by OCSD that sets out requirements for the discharge of pollutants into OCSD's collection system, reclamation and treatment facilities; ensures that OCSD has adequate legal authority to effectively implement its local Pretreatment Program; and contains Local Limits controlling discharge of pollutants that Users of OCSD's sewer collection systems must meet. TIMING CONCERNS OCSD staff recommends prudent action to the General Manager's recommendations in consideration of reasonable implementation under 40 CFR 403.2, which states, "A POTW must act reasonably by implementing its pretreatment requirements consistent with an effective pretreatment program: i.e., a program that will prevent interference and pass through, and improve opportunities to recycle municipal and industrial waste streams and sludges." RAMIFICATIONS OF NOT TAKING ACTION Sections 309(b) and (d) of the CWA give EPA plenary authority to bring a civil action for injunctive relief and penalties against a municipality that has violated the pretreatment implementation requirements contained in its NPDES permit and any requirements contained in an approved pretreatment program incorporated by reference into the permit. EPA also can enforce the pretreatment regulations, 40 CFR 403, if the permit (or approved program incorporated by reference into the permit) appropriately references the regulations. Specifically, EPA's cause of action under Section 8309(b) and (d), in those circumstances, is that the POTW has violated a permit condition authorized by the statute for the purpose of implementing Section 307 of the Act. PRIOR COMMITTEE/BOARD ACTIONS September 2009: Adopted Ordinance No. OCSD-39, An Ordinance of the Board of Directors of Orange County Sanitation District adopting Wastewater Discharge Regulations and repealing Ordinance No. OCSD-37 at the regular Board meeting. ADDITIONAL INFORMATION N/A Page 3 of 4 CEQA N/A - statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a) and categorically exempt pursuant to California Code of Regulations Sections 15307 and 15308. FINANCIAL CONSIDERATIONS N/A ATTACHMENT The following attachment(s) are attached in hard copy and may also be viewed on-line at the OCSD website (ON .ocsd.coml with the complete agenda package: • Ordinance No. OCSD48 Fact Sheet • Ordinance No. OCSD48 Establishing Wastewater Discharge Regulations and Repealing Ordinance No. OCSD-39 (changes made after Operations Committee Meeting - begins on page 85) • PowerPoint presentation at Operations Committee 01/06/16 JC:jb:gc Page 4 of 4 Ordinance No. OCSD-48 Fact Sheet What is Ordinance No.OCSD-48? Ordinance OCSD-48 is the latest revision of Orange County Sanitation District (OCSD)'s Wastewater Discharge Regulations, formedy OCSD-39. The Ordinance: is a legal mechanism implemented by OCSD that sets out requirements for the discharge of pollutants into OCSD's collection system, reclamation and treatment facilities; ensures that OCSD has adequate legal authority to effectively implement its local Pretreatment Program; and contains Local Limits controlling discharge of pollutants that Users of OCSD's sewer collection systems must satisfy. Why does it have to change? OCSD is required to have a Pretreatment Program that is approved by the EPA and California Regional Water Quality Control Board, Santa Ana Region (RWQCB). As part of this requirement, OCSD must review its Local Limits every five years. What are the significant modifications to OCSD's draft Pretreatment Ordinance Impacting Class I Permittees or Significant Industrial Users? OCSD's draft pretreatment ordinance changes are summarized in the table below: WHAT IS THE CHANGE? WHY DID OCSD MAKE THIS CHANGE? Permit Terms:The maximum issue periods for permits OCSD is planning to extend the maximum permit terms to have been changed: align more closely with the maximum permit terms allowed Class I permits may be issued for up to four years; by EPA. Class 11 permits, Dry Weather Urban Runoff Discharge Permits,and Special Purpose Discharge Permits may be issued for up to five years; and Wastehauler Discharge Permits may be issued for up to three years. Corrosion.Fouling.Occlusion,or Damage: Discharges Discharges of this nature impact the life of the POTW's causing corrosion,fouling,occlusion,or damage are assets and the operation and maintenance cost. Damage prohibited. from subsequent spills can also harm the environment and public safety. Organizational Level of Appeals: Appeal decisions require a level of understanding of the Appeals will be made to the OCSD General Manager. Clean Water Act, Safe Drinking Water Act,the operations Previously,appeals were made to the OCSD Steering and maintenance of OCSD infrastructure,and health and Committee. safety of its workers which is more aligned to the roles and responsibilities of OCSD's General Manager. Type of Appeals:Appeals have been limited to OCSD Appeals to administrative orders and administrative administrative orders and administrative penalties. penalties are critical issues concerning the General Manager. Other types of appeals from decisions,actions, and determinations at lower levels of enforcement are addressed by the Department Head or designee. This is a clarification of the existing process. Enforcement Response Schedules: Procedural reporting Defining procedural reporting and response schedules and response schedules have been defined for mechanisms facilitates prudent action for both the Pennihee and OCSD. of compliance This is a clarification of the existing process. Permit Transfers:Ordinance language has been Permits issued under the Ordinance are for a specific User, strengthened to prohibit permit transfers triggered by sale or for a specific operation at a specific location or for a specific change of ownership. Notification of sale or change of wastehauler,and create no vested rights. The language ownership has also been clarified. modifications clarify that the existing permit will be terminated by OCSD upon notification of sale or change of ownership. A new permit will be issued to the new owner upon proper submittal of an application. EPA and RWQCB Reoulred Changes:OCSD needs to OCSD concurs with the EPA/RWQCB findings. Since adopt changes required by the EPA and RWQCB as a result OCSD's original Ordinance pre-dates the EPA Model of the 2013 Pretreatment Compliance Audit(PCA)and 2014 Ordinance and the federal regulations have evolved over Pretreatment Compliance Inspection(PCI) time,the changes update/harmonize the language in OCSD's Ordinance. December 18,2015 Page 1 of 2 What are the results of the Technical Evaluation of Local Limits? The technical evaluation resulted in 11 changes to Local Limits concentration and mass-based limits. A comparison of new/amended and existing OCSD Maximum Allowable Local Discharge Limits is shown below: Pollutants of Concern Local Limits, m /L Wastehauler Limits,m L New/Amen Existing New/Amended Existing BOD(t) Mass Allocatiog 15,000 Ib/d Ammonia(t) Mass Allocation Chromium Total 20.0 7112.0 35.0 2.0 Silver 15.0 5.0 Arsenic 2.0 2.0 Cadmium 1.0 1.0 1.0 10 Copper 3.0 3.0 25.0 25.0 Lead 2.0 2.0 10.0 10.0 Mercury 0.03 0.03 Nickel 10.0 10.0 10.0 10.0 Zinc 10.0 10.0 50.0 50.0 Molybdenum 2.3 Selenium 3.9 1,4-Dioxane 1.0 Total Toxic Organics 0.58 Cyanide Amenable 1.0 Cyanide Total 5.0 5.0 Petroleum O&G 100.0 100.0 Total Sulfides 5.0 5.0 Dissolved Sulfides 0.5 0.5 H s.u. 6.0- 12.0 6.0- 12.0 6.0- 12.0 6.0- 12.0 PCBs 0.01 0.01 Peysti�ycides 0.01 0.01 KI 7 =OCSD new/amended proposed Local Limits Abbreviations: BOD-Biochemical Oxygen Demand GWRS-Grountlwater Replenishment System Petroleum 0&G-Petroleum Oil and Grease as Silica Gel Treated n-Hexane Extractable Material(SGT-HEM Non-Polar Material) PCBs-Polychlorinated Biphenyls sm.-Standard Units Footnotes: I'I BOD and ammonia mass discharged will be tacked by OCSD and Users. December 18,2015 Page 2 of 2 ORDINANCE NO. OCSD48 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT AMENDING WASTEWATER DISCHARGE REGULATIONS, AND REPEALING ORDINANCE NO. OCSD-39 OCSD-48-1 CONTENTS ARTICLE 1. GENERAL PROVISIONS............................................................................5 101. PURPOSE AND POLICY................................................................................5 102. DEFINITIONS .................................................................................................6 103. CONFIDENTIAL INFORMATION..................................................................21 104. SALE OR CHANGE OF OWNERSHIP.........................................................21 105. RESERVED..................................................................................................22 106. AUTHORITY.................................................................................................22 107. DELEGATION OF AUTHORITY...................................................................23 108. SIGNATORY REQUIREMENTS...................................................................23 109. RECORD KEEPING REQUIREMENTS........................................................24 ARTICLE 2. GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE.................................................................................................................25 201. PROHIBITED DISCHARGES .......................................................................25 202. PROHIBITION ON DILUTION ......................................................................27 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER................27 204. PROHIBITION ON UNPOLLUTED WATER.................................................27 205. PROHIBITION ON SLUG DISCHARGES AND NOTIFICATION REQUIREMENT........................................................................................................28 206. PROHIBITION ON THE USE OF GRINDERS..............................................28 207. PROHIBITION ON POINT OF DISCHARGE................................................28 208. HAZARDOUS WASTE DISCHARGE NOTIFICATION REQUIREMENT......28 209. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES TO THE OCSD SEWERAGE SYSTEM AND WASTEHAULER STATION................29 210. PROHIBITION ON MEDICAL WASTE..........................................................30 211. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES.. 30 212. PROHIBITION ON LIQUEFACTION.............................................................31 213. MASS EMISSION RATE DETERMINATION................................................31 214. MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS ..............................32 ARTICLE 3. DISCHARGE PERMITS, CERTIFICATIONS, CHARGES, AND FEES.....33 301. INTRODUCTION ..........................................................................................33 302. CLASS I WASTEWATER DISCHARGE PERMITS ......................................33 303. CLASS II WASTEWATER DISCHARGE PERMITS .....................................40 304. DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS.......................47 305. SPECIAL PURPOSE DISCHARGE PERMITS.............................................49 OCSD-48-2 306. WASTEHAULER DISCHARGE PERMIT......................................................51 307. DISCHARGE CERTIFICATIONS..................................................................54 308. OUT OF DISTRICT PERMITS/DISCHARGERS...........................................55 309. RESERVED..................................................................................................56 310. RESERVED..................................................................................................56 ARTICLE 4. FACILITIES REQUIREMENTS .................................................................57 401. DRAWING SUBMITTAL REQUIREMENTS..................................................57 402. PRETREATMENT FACILITIES ....................................................................57 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS ................................................................................................... 58 404. MONITORING/METERING FACILITIES.......................................................59 405. WASTE MINIMIZATION REQUIREMENTS..................................................59 ARTICLE 5. MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS .........................................................................................................70 501. MONITORING AND REPORTING CONDITIONS ........................................60 ARTICLE 6. ENFORCEMENT ......................................................................................71 601. PURPOSE AND SCOPE ..............................................................................71 602. DETERMINATION OF NON COMPLIANCE WITH DISCHARGE LIMITS....72 603. ENFORCEMENT PROCEDURES AND APPLICABLE FEES ......................72 604. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA)...........75 605. PERMIT SUSPENSION................................................................................76 606. PERMIT REVOCATION................................................................................78 607. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS.........80 608. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS ...........................................................................................................81 609. INDUSTRIAL WASTEWATER PASS THROUGH ........................................81 610. PUBLICATION OF VIOLATION....................................................................81 611. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE...............81 612. PUBLIC NUISANCE .....................................................................................82 613. TERMINATION OF SERVICE ......................................................................82 614. EMERGENCY SUSPENSION ORDER ........................................................82 615. INJUNCTION ................................................................................................83 616. CIVIL PENALTIES ........................................................................................83 617. CRIMINAL PENALTIES................................................................................86 618. APPEALS TO GENERAL MANAGER ..........................................................87 OCSD-48-3 619. PAYMENT OF CHARGES............................................................................88 620. RECOVERY OF COSTS INCURRED BY OCSD..........................................89 621. FINANCIAL SECURITY/AMENDMENTS TO PERMIT.................................89 622. JUDICIAL REVIEW.......................................................................................90 ARTICLE 7. SEWER SERVICE CHARGES-CAPITAL FACILITY CAPACITY CHARGES ......................................................................................................................................93 701. SANITARY SEWER SERVICE CHARGE.....................................................93 702. CAPITAL FACILITIES CAPACITY CHARGE................................................93 ARTICLE 8. SEVERABILITY.........................................................................................94 801. SEVERABILITY ............................................................................................94 802. GENERAL APPLICATION ............................................................................94 OCSD-48-4 The Board of Directors of the Orange County Sanitation District (OCSD) does hereby FIND: A. That OCSD is required by federal and state law, including the Clean Water Act (33 U.S.C. 1251, et seq.), the General Pretreatment Regulations (40 CFR 403), and the Porter-Cologne Water Quality Control Act (Water Code Sections 13000, et seq.), to implement and enforce a program for the regulation of Wastewater discharges to OCSD's sewers; and B. That OCSD is required by federal, state, and local law to meet applicable standards of treatment plant effluent quality; and C. Thatthe adoption of this Ordinance is statutorily exempt under the California Environmental Quality Act pursuant to the provisions of Public Resources Code Section 21080(b)(8) and California Code of Regulations Section 15273(a) and categorically exempt pursuant to California Code of Regulations Sections 15307 and 15308. NOW,THEREFORE,the Board of Directors of the Orange County Sanitation District does ORDAIN: Section I: Wastewater Discharge Regulations governing the use of OCSD's Sewerage Facilities are hereby restated and amended to provide as follows: ARTICLE 1. GENERAL PROVISIONS 101. PURPOSE AND POLICY This ordinance sets uniform requirements for Users of OCSD's Sewerage Facilities and enables OCSD to comply with all applicable state and federal laws, including the Clean Water Act (33 United States Code [U.S.C.] section 1251, et seq.) and the General Pretreatment Regulations (Title 40 of the Code of Federal Regulations [CFR] Part 403). This Ordinance shall be interpreted in accordance with the definitions set forth in Section 102. The provisions of the Ordinance shall apply to the direct or indirect discharge of all liquid wastes carried to facilities of OCSD. A. The purpose of this Ordinance is to provide for the maximum public benefit from the use of OCSD's Sewerage Facilities. This shall be accomplished by regulating sewer use and Wastewater discharges; by providing equitable distribution of costs, in compliance with applicable federal, state, and local regulations; and by supporting the proper disposal of Prescription Drugs as noted in the guidelines published by the Office of National Drug Control Policy. The revenues to be derived from the application of this Ordinance shall be used to defray all costs of providing sewerage service by OCSD, including, but not limited to, administration, operation, monitoring, maintenance, financing, capital construction, replacement and recovery, OCSD-48-5 and provisions for necessary reserves; B. This ordinance is meant to protect both OCSD personnel who may be affected by Wastewater, sludge, and biosolids in the course of their employment and the general public; C. To comply with federal, state, and local policies and to allow OCSD to meet applicable standards of treatment plant effluent quality, biosolids quality, and air quality, provisions are made in this Ordinance for the regulation of Wastewater discharges to the public sewer. This Ordinance establishes quantity and quality limits on all Wastewater discharges which may adversely affect OCSD's Sewerage System, processes, effluent quality, biosolids quality, air emission characteristics, or inhibit OCSD's ability to beneficially reuse or dispose of its treated Wastewater, biosolids or meet biosolids discharge criteria. D. It is the intent of these limits to improve the quality of Wastewater being received for treatment and to encourage water conservation and Wastewater minimization by all Users connected to a public sewer. This Ordinance also provides for regulation of the degree of Wastewater Pretreatment required, the issuance of permits for Wastewater discharge and connections and other miscellaneous permits, and establishes penalties for violation of the Ordinance. E. OCSD is committed to: 1) a policy of Wastewater reclamation and reuse to provide alternate sources of water supply for OCSD and agencies with which OCSD has agreements for Wastewater reclamation; and 2) a policy for the protection of groundwater. OCSD is also committed to help protect groundwater goals as established by various water quality and water purveyor agencies. To fulfill these commitments, OCSD may implement more stringent quality requirements on Wastewater discharges through regulation, including revisions to this Ordinance. F. OCSD is committed to a policy for the beneficial use of biosolids, the implementation of programs to land-apply or provide for the marketing and distribution of biosolids, which may necessitate more stringent quality requirements on Wastewater discharges. G. OCSD is also committed to meet applicable air quality goals established by the South Coast Air Quality Management District, which may further necessitate more stringent quality requirements on Wastewater discharges. 102. DEFINITIONS A. Unless otherwise defined herein, terms related to water quality shall be as adopted in the latest edition of Standard Methods for the Examination of OCSD-46-6 Water and Wastewater, published by the American Public Health Association, the American Water Works Association, and the Water Environment Federation. The testing procedures for Wastewater constituents and characteristics shall be as provided in 40 CFR 136 (Code of Federal Regulations; Title 40; Protection of Environment; Chapter I, Environmental Protection Agency; Part 136, Guidelines Establishing Test Procedures for the Analyses of Pollutants), or as specified. Other terms not herein defined shall have the same meaning as defined in the latest California Building and Construction Codes, Title 24, California Code of Regulations. 1. Act or "the Act' shall mean the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, 33 U.S.C. section 1251, at seq. 2. Approved POTW Pretreatment Program or Program or POTW Pretreatment Program shall mean a program administered by a POTW that meets the criteria established in 40 CFR 403.8 and 403.9 and which has been approved by a Regional Administrator or State Director in accordance with 40 CFR 403.11. 3. Authorized Representative or Designated Signatory shall mean: a) If the applicant or User is a corporation: (1) The president, secretary, treasurer, or a vice president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision making functions for the corporation; or (2) The manager of one or more manufacturing, production, or operation facilities, provided the manager is authorized to make management decisions that govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for individual Wastewater discharge permit requirements; OCSD-48-7 and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. b) If the applicant or User is a partnership or sole proprietorship: a general partner or proprietor, respectively. c) If the applicant or User is a federal, state, or local governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or the designee. d) The individuals described in paragraphs (a) through (c) above, as Responsible Officers, may designate an Authorized Representative if the authorization is in writing, the authorization specifies the individual or position responsible for the overall operation of the facility from which the discharge originates or having overall responsibility for environmental matters for the company or organization, and the written authorization is submitted to OCSD. e) An applicant or User not falling within one of the above categories must designate as the Responsible Officer an individual responsible for the overall operation of the facility. The Responsible Officer may designate an Authorized Representative. 4. Best Management Practices (BMPs) shall mean schedules of activities, prohibitions of practices, maintenance procedures, operating procedures, practices to control spillage or leaks, treatment requirements, and other management practices to prevent or reduce pollution or to meet Article 2 standards. Such BMPs shall be considered local limits and Pretreatment Standards as stated in 40 CFR 403.5(c)(4). 5. Biochemical Oxygen Demand (BOD) shall mean a measurement of oxygen utilized by the decomposition of organic material, over a specified time period (usually 5 days) in a Wastewater sample. It is used as a measurement of the readily decomposable organic content of Wastewater. 6. Board shall mean the Board of Directors of the Orange County Sanitation District. 7. Bypass shall mean the intentional diversion of wastestreams from any portion of a User's treatment facility. OCSD-48-8 8. Capital Facilities Capacity Charge shall mean the payment of a fee, imposed by the governing Board of OCSD, to pay for the future costs of constructing new sewerage collection, treatment, and disposal facilities; and as a contributive share of the cost of the existing facilities. This charge shall be paid by all property owners at the time they develop the property and connect directly or indirectly to OCSD's Sewerage Facilities as a new system User. This charge, which rates are set forth in a separate Ordinance, is expressly authorized by the provisions of California Health & Safety Code Sections 5471 and 5474. 9. Charge For Use shall mean OCSD's sanitary sewer service charge, a charge established and levied by OCSD upon residential, commercial, and industrial Users of OCSD's Sewerage System, pursuant to Sections 302.6(F), or 303.6(E) of this Ordinance, in proportion to the use of the treatment works by their respective class, that provides for the recovery of the costs of operation and maintenance expenses, capital facilities rehabilitation or replacement, and adequate reserves for the POTW. The minimum charge for use is the Annual Sewer Service Fee Residential Users. 10. Chemical Oxygen Demand (COD) shall mean a measure of the oxygen required to oxidize all compounds, both organic and inorganic, in Wastewater. 11. Class I User shall mean any User who discharges Wastewater that: a) is a Significant Industrial User; or b) Is determined to have a reasonable potential for adversely affecting OCSD's operation or for violating any Pretreatment Standard, Local Limit, or discharge requirement, or may cause Pass Through affecting OCSD's ability to comply with its NPDES Permit or other regulations and standards; or c) may cause pass through or Interference with OCSD's Sewerage Facilities. 12. Class 11 User shall mean any User whose charge for use is greater than the special assessment "OCSD Sewer User Fee" included on the County of Orange secured property tax bill exclusive of debt service, that discharges wastes other than sanitary, and that is not otherwise required to obtain a Class I permit. 13. Code of Federal Regulations(CFR)shall mean the codification of the OCSD-48-9 general and permanent regulations published in the Federal Register by the executive departments and agencies of the federal government. 14. Compatible Pollutant shall mean a combination of biochemical oxygen demand, suspended solids, pH, fecal coliform bacteria, plus other Pollutants that OCSD's treatment facilities are designed to accept and/or remove. Compatible Pollutants are non-compatible when discharged in quantities that have an adverse effect on OCSD's Sewerage System or NPDES permit, or when discharged in qualities or quantities violating any Federal Categorical Pretreatment Standards, local limit, or other discharge requirement. 15. Composite Sample shall mean a collection of individual samples obtained at selected intervals based on an increment of either flow or time. The resulting mixture (composite sample) forms a representative sample of the wastestream discharged during the sample period. 16. Connection Permit shall mean a permit issued by OCSD, upon payment of a capital facilities capacity charge, authorizing the Permittee to connect directly to an OCSD's Sewerage Facilities or to a sewer which ultimately discharges into an OCSD's Sewerage Facilities. 17. Department Head shall mean that person duly designated by the General Manager to perform those delegated duties as specified in this Ordinance. 18. Discharger shall mean any Person who discharges or causes a discharge of Wastewater directly or indirectly to a public sewer. Discharger shall mean the same as User. 19. District shall mean the Orange County Sanitation District or OCSD. 20. Division Head shall mean that person duly designated by the General Manager to implement the OCSD Pretreatment Program and perform the duties as specified in this Ordinance. 21. Domestic Septage shall mean the liquid and solid material removed from food service establishments, or a septic tank, cesspool, portable toilet, Type III marine sanitation device, or similar treatment works that receives only domestic Wastewater. 22. Domestic Wastewater shall mean the liquid and solid waterborne wastes derived from the ordinary living processes of humans of such OCSD-48-10 character as to permit satisfactory disposal, without special treatment, into the public sewer or by means of a private disposal system. 23. Downstream Sampling or Monitoring shall mean sampling or monitoring usually conducted in a city or agency owned sewer for the purpose of determining the compliance status of an industrial or commercial Discharger. 24. Dry Weather Urban Runoff shall mean surface runoff flow that is generated from any drainage area within OCSD's service area during a period that does not fall within the definition of Wet Weather. It is surface runoff that contains Pollutants that interfere with or prohibit the recreational use and enjoyment of public beaches or cause an environmental risk or health hazard. 25. Enforcement Compliance Schedule Agreement (ECSA) shall mean a mutual agreement between OCSD and Permittee requiring implementation of necessary Pretreatment practices and/or installation of equipment to ensure permit compliance. 26. Enforcement Response Plan shall mean a plan containing detailed procedures indicating how OCSD will investigate and respond to instances of Industrial User non-compliance in accordance with 40 CFR 403.8(f)(1) or other Users in accordance with OCSD non- compliance procedures. 27. Federal Categorical Pretreatment Standards shall mean any regulation containing Pollutant discharge limits promulgated by the U.S. EPA in accordance with Sections 307(b) and (c) of the Clean Water Act (33 U.S.C. 1317) which apply to a specific category of Industrial Users and which appear in 40 CFR Chapter I, Subchapter N, Parts 405-471. 28. Federal Regulations shall mean any applicable provision of the Federal Water Pollution Control Act, also known as the Clean Water Act, as amended, Title 33, United States Code, Section 1251 and following, and any regulation promulgated by the United States Environmental Protection Agency under Title 40 CFR implementing that act. 29. Flow Monitoring Facilities shall mean equipment and structures provided at a User's expense to measure, totalize, and/or record, the incoming water to the facility or the Wastewater discharged to the sewer. OCSD-48-11 30. General Manager shall mean the individual duly designated by the Board of Directors of OCSD to administer this Ordinance (see also Section 107). 31. Grab Sample shall mean a sample taken from a wastestream on a one-time basis without regard to the flow in the wastestream and without consideration of time. 32. Indirect Discharge or Discharge shall mean the introduction of Pollutants into a POTW from any non-domestic source regulated under section 307(b), (c) or(d) of the Act. 33. Industrial User shall mean any User that discharges Industrial Wastewater. 34. Industrial Wastewater shall mean all liquid carried wastes and Wastewater of the community, excluding domestic Wastewater and domestic septage, and shall include all Wastewater from any producing, manufacturing, processing, agricultural, or other operation. 35. Inspector shall mean a person authorized by the General Manager to inspect any existing or proposed Wastewater generation, conveyance, processing, and disposal facilities. 36. Instantaneous Limit (see the Maximum Allowable Discharge Limit) 37. Interference shall mean any discharge which, alone or in conjunction with a discharge or discharges from other sources, either: a) inhibits or disrupts OCSD, its treatment processes or operations, or its biosolids processes, use, or disposal; or b) is a cause of a violation of any requirement of OCSD's NPDES permit or prevents lawful biosolids or treated effluent use or disposal. 38. LEL (Lower Explosive Limit) shall mean the minimum concentration of a combustible gas or vapor in air (usually expressed in percent by volume at sea level) which will ignite if an ignition source (sufficient ignition energy) is present. 39. Letter to Discharge shall mean a letter authorizing a User to discharge to the sewer without having to obtain a Special Purpose Discharge Permit. The discharge volume is generally limited to less than 1 million gallons. OCSD-48-12 40. Liquefaction shall mean the chemical hydrolysis, or chemical liquefaction, or other means for liquefying human or animal remains. 41. Local Limit shall mean specific discharge limits developed and enforced by OCSD upon industrial or commercial facilities to implement the general and specific discharge prohibitions listed in 40 CFR 403.5(a)(1) and (b). 42. Local Sewering Agency shall mean any public agency or private corporation responsible for the collection and disposal of Wastewater to OCSD's Sewerage Facilities duly authorized under the laws of the State of California to construct and/or maintain public sewers. 43. Me or Violation shall mean a discharge over the permitted discharge limit, as determined by the result of a sample analysis, as follows: a) a discharge exceeding a Mass Emission Rate limit by 20% or more, or b) a discharge exceeding a concentration limit by 20% or more, or c) a pH discharge less than 5.0. 44. Mass Emission Rate shall mean the weight of material discharged to the sewer system during a given time interval. Unless otherwise specified, the mass emission rate shall mean pounds per day of a particular constituent or combination of constituents. 45. Maximum Allowable Discharge Limit shall mean the maximum quantity or concentration of a Pollutant allowed to be discharged at any period of time, determined from the analysis of any discrete or composited sample collected, independent of the industrial flow rate and the duration of the sampling event. 46. Medical Waste shall mean the discharge of isolation wastes, infectious agents , human blood and blood byproducts, pathological wastes, sharps, body parts, fomites, etiologic agents, contaminated bedding, surgical wastes, potentially contaminated laboratory wastes, and dialysis wastes. 47. Milligrams Per Liter (mg/L or mg/I shall mean a unit of the concentration of a constituent or compound that is found in water or Wastewater. It is 1 milligram of the constituent or compound in 1 liter of water or Wastewater. OCSD-48-13 48. Minor Violation shall mean a discharge over the permitted discharge limit as determined by the result of a sample analysis, as follows: a) a discharge exceeding a Mass Emission Rate limit by less than 20%, or b) a discharge exceeding a concentration limit by less than 20%, or. c) a pH discharge equal to or greater than 5.0, but less than 6.0, or d) a pH discharge greater than 12.0. 49. National Pretreatment Standard, Pretreatment Standard. or Standard shall mean any regulation containing Pollutant discharge limits promulgated by the EPA in accordance with section 307 (b) and (c) of the Act, which applies to Industrial Users. This term includes prohibitive discharges and categorical standards established pursuant to 40 CFR 403.5 and 40 CFR 403.6. 50. North American Industry Classification System (NAICS) shall mean an industry classification system that groups establishments into industries based on the activities in which they are primarily engaged. 51. National Pollutant Discharge Elimination System Permit (NPDES Permit shall mean the permit issued to control the discharge to surface waters of the United States as detailed in Public Law 92 500, Section 402. 52. New Source shall mean those sources that are new as defined by 40 CFR 403.3(m) as revised. 53. Non-compatible Pollutant shall mean any Pollutant which is not a Compatible Pollutant as defined herein. 54. OCSD shall mean Orange County Sanitation District. 55. OCSD's Sewerage Facilities or System shall mean any property belonging to OCSD used in the treatment, reclamation, reuse, transportation, or disposal of Wastewater, or biosolids. 56. Ordinance shall mean that document entitled "Wastewater Discharge Regulations" containing OCSD requirements, conditions, OCSD-48-14 and limits for connecting and discharging to the sewer system, as may be amended and modified. 57. PH shall mean both acidity and alkalinity on a scale ranging from 0 to 14 where 7 represents neutrality, numbers less than 7 increasing acidity, and more than 7 increasing alkalinity, and is the logarithm of the reciprocal of the quantity of hydrogen ions in moles per liter of solution. 58. Pass Throuqh shall mean discharge through OCSD's Sewerage Facilities to Waters of the U.S. which, alone or in conjunction with discharges from other sources, is a cause of a violation of OCSD's NPDES permit. 59. Permittee shall mean a Person who has received a permit to discharge Wastewater into OCSD's Sewerage Facilities subject to the requirements and conditions established by OCSD. 60. Person shall mean any individual, partnership, copartnership, company, firm, association, corporation or public agency, joint stock company, trust, estate, or any other legal entity; or their legal representatives, agents, assigns, including all federal, state, and local governmental entities. 61. Pesticides shall mean those compounds classified as such under federal or state law or regulations including, but not limited to DDT (dichlorodiphenyltrichloro-ethane, both isomers); DDE (dichlorodiphenyl-ethylene); DDD (dichlorodiphenyldichloroethane); aldrin, benzene hexachloride (alpha [a], beta [(3], and gamma [y] isomers); chlordane; endrin; endrin aldehyde; 2,3,7,8- tetrachlorodibenzo-p-dioxin (TCDD); toxaphene; a-endosulfan; p- endosulfan; endosulfan sulfate; heptachlor; heptachlor epoxide; dieldrin; demeton; guthion; malathion; methoxychlor; mirex; and parathion. 62. Pollutant shall mean any constituent, compound, or characteristic of Wastewaters on which a discharge limit or requirement may be imposed either by OCSD or the regulatory bodies empowered to regulate OCSD. 63. Polychlorinated Biphenvls (PCB) shall mean those compounds classified as such under federal or state law including, but not limited to Aroclors 1016, 1221, 1228, 1232, 1242, 1248, 1254, 1260, and 1262. 64. Pretreatment shall mean the reduction of the amount of Pollutants, OCSD-48-15 the elimination of Pollutants, or the alteration of the nature of Pollutant properties in Wastewater to a level authorized by OCSD prior to, or in lieu of, discharge of the Wastewater into OCSD's Sewerage System. The reduction or alteration can be obtained by physical, chemical or biological processes, by process changes, or by other means. 65. Pretreatment Facility shall mean any works or devices that the General Manager determines are appropriate to treat, restrict, or prevent the flow of Industrial Wastewater prior to discharge into a public sewer. 66. Pretreatment Requirements shall mean any substantive or procedural requirement related to Pretreatment, other than a National Pretreatment Standard, imposed on an Industrial User. 67. Priority Pollutants shall mean the most recently adopted list of toxic Pollutants identified and listed by EPA as having the greatest environmental impact. They are classified as Non-compatible Pollutants and may require Pretreatment prior to discharge to prevent: a) Interference with OCSD's operation; or b) biosolids contamination; or c) Pass Through into receiving waters or into the atmosphere. 68. Public Agency shall mean the State of California and any city, county, district, other local authority or public body of or within this state. 69. Public Sewer shall mean a sewer owned and operated by OCSD, a city or other local sewering Public Agency which is tributary to OCSD's Sewerage Facilities. 70. Publicly Owned Treatment Works or POTW shall mean a treatment works as defined by section 212 of the Act, which is owned by a state or municipality (as defined by section 502(4) of the Act). This definition includes any devices and systems used in the storage, treatment, recycling and reclamation of municipal Sewage or industrial wastes of a liquid nature. It also includes sewers, pipes and other conveyances only if they convey Wastewater to a POTW Treatment Plant. The term also means the municipality as defined in section 502(4) of the Act, which has jurisdiction over the Indirect Discharges to and the discharges from such a treatment works. OCSD-48-16 71. RCRA shall mean Resource Conservation and Recovery Act of 1976 (42 U.S.C. 6901, at seq.) and as amended. 72. Regulatory Agencies shall mean those agencies having jurisdiction over the operation of OCSD including, but not limited to, the following: a) United States Environmental Protection Agency, Region IX, San Francisco and Washington, DC (EPA). b) California State Water Resources Control Board (SWRCB). c) California Regional Water Quality Control Board, Santa Ana Region (RWQCB). d) South Coast Air Quality Management District (SCAQMD). e) California Environmental Protection Agency (Cal-EPA). 73. Regulatory Compliance Schedule Agreement (RCSA)shall mean an agreement between OCSD and Permittee requiring the Permittee to implement Pretreatment practices and/or install equipment to ensure compliance with future revised categorical Pretreatment Standards or revised discharge limits. 74. Responsible Officer shall mean: a) If the applicant or User is a corporation: (1) The president, secretary, treasurer, or a vice president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision making functions for the corporation; or (2) The manager of one or more manufacturing, production, or operation facilities, provided the manager is authorized to make management decisions that govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiate and direct other comprehensive measures to assure long-term environmental compliance with environmental laws and regulations; can ensure that the necessary systems are established or actions taken to gather complete and accurate information for OCSD-48-17 individual Wastewater discharge permit requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. b) If the applicant or User is a partnership or sole proprietorship: a general partner or proprietor, respectively. c) If the applicant or User is a federal, state, or local governmental facility: a director or highest official appointed or designated to oversee the operation and performance of the activities of the government facility, or the designee. d) An applicant or User not falling within one of the above categories must designate as the Responsible Officer an individual responsible for the overall operation of the facility. 75. Sample Point shall mean a location accepted by OCSD, from which Wastewater can be collected that is representative in content and consistency of the entire flow of Wastewater being sampled. 76. Sampling Facilities shall mean structure(s) provided at a User's expense for OCSD or User to measure and record Wastewater constituent mass, concentrations, collect a representative sample, or provide access to plug or terminate the discharge. 77. Sanitary Waste shall mean domestic Wastewater, human excrement, and gray water (e.g., water from household showers, dishwashing operations, etc.). 78. Septic Waste shall mean any Sewage from holding tanks such as vessels, chemical toilets, campers, trailers, and septic tanks. 79. Service Area shall mean an area for which OCSD has agreed to either provide sewer service, or Wastewater treatment, or Wastewater disposal. 80. Sewage shall mean Wastewater. 81. Sewerage Facilities or System shall mean any and all facilities used for collecting, conveying, pumping, treating, and disposing of Wastewater or sludge or biosolids. 82. Significant Industrial User, except as provided in 40 CFR 403.3 (v)(2) and (v)(3), shall mean: (i)All Industrial Users subject to Categorical Pretreatment Standards under 40 CFR 403.6 and 40 CFR chapter I, OCSD-48-18 subchapter N; and (ii) Any other Industrial User that: discharges an average of 25,000 gallons per day or more of process Wastewater to the POTW (excluding sanitary, noncontact cooling and boiler blowdown Wastewater); contributes a process wastestream which makes up 5 percent or more of the average dry weather hydraulic or organic capacity of the POTW Treatment plant; or is designated as such by OCSD on the basis that the Industrial User has a reasonable potential for adversely affecting the POTW's operation or for violating any Pretreatment Standard or requirement (in accordance with 40 CFR 403.8(f)(6)). 83. Significant Non-Compliance (SNCI shall mean the compliance status of an Industrial User who is in violation of one or more of the criteria as described in 40 CFR 403.8(f)(2)(viii). 84. Slug Load or Slug Discharge shall mean any discharge at a flow rate or concentration, which could cause a violation of the prohibited discharge standards in Section 201 of this Ordinance. A Slug Discharge is any Discharge of a non-routine, episodic nature, including but not limited to an accidental spill or a non-customary batch Discharge, which has a reasonable potential to cause Interference or Pass Through, or in any other way violate the POTW's regulations, Local Limits, or Permit conditions. 85. Sludge shall mean any solid, semi-solid or liquid decant, subnate or supernate from a manufacturing process, utility service, or Pretreatment Facility. 86. Special Assessment Credit shall mean the portion of the secured property tax bill that represents the regional special assessment sewer User fee as defined by OCSD. 87. Special Purpose Use shall mean any Discharger who is granted a Special Purpose Discharge Permit by OCSD to discharge unpolluted water, storm runoff, or groundwater to OCSD's Sewerage Facilities. 88. Spent Solutions shall mean any concentrated Industrial Wastewater or Wastewater that is not authorized to be discharged to a Sewage facility until appropriately treated. 89. Spill Containment shall mean a protection system installed by the Permittee to prohibit the discharge to the sewer of non-compatible Pollutants. 90. Standard Methods shall mean procedures described in the current edition of Standard Methods for the Examination of Water and OCSD-48-19 Wastewater, as published by the American Public Health Association, the American Water Works Association and Water Pollution Control Federation. 91. Suspended Solids shall mean any insoluble material contained as a component of Wastewater and capable of separation from the liquid portion of said Wastewater by laboratory filtration as determined by the appropriate testing procedure and expressed in terms of milligrams per liter. 92. Total Organic Carbon (TOC) shall mean the measure of total organic carbon in mg/L using heat, oxygen, ultraviolet irradiation, chemical oxidants, or combinations of these oxidants that convert organic carbon to carbon dioxide, rounded to two significant figures.As such, Total Toxic Organics is a subset of TOC. 93. Total Toxic Organics (TTO) shall mean the summation of all quantifiable values greater than 0.01 milligrams per liter for the organics regulated by the EPA or OCSD for a specific industrial category. 94. Unpolluted Water shall mean water to which no Pollutant has been added either intentionally or accidentally. 95. User shall mean any Person who discharges or causes a discharge of Wastewater directly or indirectly to a public sewer. User shall mean the same as Discharger. User includes Industrial Users as a type of User. 96. Waste-Tracking Form shall mean that receipt which is retained by the generator of hazardous wastes as required by the State of California or the United States Government pursuant to RCRA, or the California Hazardous Materials Act, or that receipt which is retained by the generator for recyclable wastes or liquid non- hazardous wastes as required by OCSD. The Waste-Tracking Form is typically known as a "waste manifest." 97. Wastehauler shall mean any Person carrying on or engaging in vehicular transport of brine, domestic septage (except the SAWPA Sewer Service Area in compliance with the 1996 OCSD/SAWPA Agreement), or Wastewater as part of, or incidental to, any business for the purpose of discharging directly or indirectly said Wastewater into OCSD's Sewerage System. 98. Wastewater shall mean the liquid and water-carried wastes of the community and all constituents thereof,whether treated or untreated, OCSD-48-20 discharged into or permitted to enter a public sewer. 99. Wastewater Constituents and Characteristics shall mean the individual chemical, physical, bacteriological, and radiological parameters, including volume and flow rate and such other parameters that serve to define, classify or measure the quality and quantity of Wastewater. 100. Wet Weather shall mean any period of time during which measurable rainfall occurs within OCSD's service area. This period shall include the time following the cessation of rainfall until OCSD determines that the wet weather event is no longer impacting OCSD's Sewerage System. 101. Working Day shall mean the period of time during which production or operation is taking place or any period during which discharge to the sewer is occurring. 102. Zero Discharge Certification shall mean a control mechanism that is issued by OCSD to insure that specific facilities are not discharging a Pollutant(s) that may otherwise qualify the facility for a discharge permit. B. Words used in this Ordinance in the singular may include the plural and the plural the singular. Terms used in the masculine form shall include feminine, and terms used in the feminine form shall include masculine. 103. CONFIDENTIAL INFORMATION All user information and data on file with OCSD shall be available to the public and governmental agencies without restriction unless the User specifically requests and is able to demonstrate to the satisfaction of OCSD that the release of such information would divulge information, processes or methods which would be detrimental to the User's competitive position. The demonstration of the need for confidentiality made by the Permittee must meet the burden necessary for withholding such information from the general public under applicable state and federal law. Any such claim must be made at the time of submittal of the information by marking the submittal "Confidential Business Information" on each page containing such information. Information which is demonstrated to be confidential shall not be transmitted to anyone other than a governmental agency without prior notification to the User. Wastewater constituents and characteristics and other effluent data, as defined in 40 CFR 2.302 shall not be recognized as confidential information and shall be available to the public. 104. SALE OR CHANGE OF OWNERSHIP OCSD-48-21 A. Permits issued under this Ordinance are for a specific User, for a specific operation at a specific location or for a specific Wastehauler, and create no vested rights. Notwithstanding 104.C, the existing permit will be terminated upon sale or change of ownership. B. No permit may be transferred to allow a discharge to a public sewer from a point other than the location for which the permit was originally issued. C. When the permittee is a legal entity (such as a corporation, partnership, limited liability company, or other legal entity), the permittee is deemed to have undergone a change of ownership when any other legal entity or person acquires direct or indirect ownership or control of more than fifty percent (50%) of the total ownership interest in the permittee. D. At least thirty (30) days prior to the sale or change of ownership of any business operating under a permit issued by OCSD, the Permittee shall notify OCSD in writing of the proposed sale or change of ownership. The successor owner shall apply to OCSD for a new permit at least fifteen (15) days prior to the sale or change of ownership in accordance with the provisions of this Ordinance. A successor owner shall not discharge any Wastewater for which a permit is required by this Ordinance until a new permit is issued by OCSD to the successor owner. E. The written notification of intended sale or change of ownership shall be in a form approved by OCSD and shall include a written certification by the new owner or Authorized Representative, which shall include as a minimum: 1. the specific date on which the sale or change of ownership is to occur; and 2. an acknowledgement to comply fully with all the terms, conditions, limits, and provisions of this Ordinance and the new permit. 105. RESERVED 106. AUTHORITY A. OCSD is regulated by several agencies of the United States Government and the State of California, pursuant to the provisions of federal and state Law. Federal and state laws grant to OCSD the authority to regulate and/or prohibit, by the adoption of ordinances or resolutions, and by issuance of discharge certifications, or discharge permits, the discharge of any Wastewater, directly or indirectly, to OCSD's Sewerage Facilities. Said authority includes the right to establish limits, conditions, and prohibitions; to establish flow rates or prohibit flows discharged to OCSD's Sewerage OCSD-48-22 Facilities; to require the development of compliance schedules for the installation of equipment systems and materials by all Users; and to take all actions necessary to enforce its authority including implementation of the Enforcement Response Plan, whether within or outside OCSD's boundaries, including those Users that are tributary to OCSD or within areas for which OCSD has contracted to provide sewerage services. B. Four jurisdictions contribute to and are under the purview of OCSD's Pretreatment program: a section of the Irvine Ranch Water District; a section of the Sanitation Districts of Los Angeles County, which has several Dischargers at the county border; the South Orange County Wastewater Authority, and the Santa Ana Watershed Project Authority(SAWPA),whose discharge is delivered via the Santa Ana River Interceptor (SARI) and is comprised of mostly Wastewater brines. Nothing in this Ordinance is intended to preclude the discharge from SAWPA's SARI Service Area of discharges consisting solely of Wastewater brines that are compliant with all regulations and agreements. C. OCSD has the authority pursuant to California Health and Safety Codes 5471 and 5474 to prescribe, revise, and collect all fees and charges for services and facilities furnished by OCSD either within or without its territorial limits. 107. DELEGATION OF AUTHORITY Whenever any power is granted to or a duty is imposed upon the General Manager, the power may be exercised or the duty may be performed by any person so authorized by the General Manager. 108. SIGNATORY REQUIREMENTS Reports and permit applications required by this Ordinance shall contain the following certification statement: "I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations." The statement shall be signed by an authorized representative of the Industrial User as defined in 40 CFR 403.12(I) or as defined and designated by OCSD. OCSD-48-23 109. RECORD KEEPING REQUIREMENTS Any User subject to OCSD's reporting requirements shall maintain and make available for inspection and copying records of all information obtained pursuant to, or resulting from, any monitoring activities required by OCSD, including documentation associated with Best Management Practices, and any additional records or information obtained pursuant to monitoring activities undertaken by the User independent of such requirements. Such records shall include information as shown in 40 CFR 403.12(0)(1) and (2). These records shall remain available for a period of at least three (3)years. This period shall be automatically extended for the duration of any litigation concerning the User or OCSD, or where the User has been specifically notified of a longer retention period by the General Manager. OCSD-48-24 ARTICLE 2. GENERAL PROHIBITIONS, LIMITS AND REQUIREMENTS FOR DISCHARGE 201. PROHIBITED DISCHARGES These prohibitions apply to all Users of OCSD's Sewerage Facilities whether or not they are subject to Federal Categorical Pretreatment Standards or any other national, state, or local Pretreatment Standards or requirements. A. General Prohibitions. 1. No User shall introduce or cause to be introduced into OCSD's Sewerage Facilities any Pollutant, Wastewater, or flow which causes Pass Through or Interference or would cause OCSD to violate any federal, state, or local regulatory requirement. 2. No User shall increase the contribution of flow, Pollutants, or change the nature of Pollutants where such contribution or change does not meet applicable standards and requirements or where such contribution would cause OCSD to violate any federal, state, or local regulatory permit. 3. No Person shall transport Wastewater from one location or facility to another for the purpose of treating or discharging it directly or indirectly to OCSD's Sewerage Facilities without written permission from OCSD. 4. No Person shall deliver by vehicular transport, rail car, or dedicated pipeline, directly or indirectly to OCSD's Sewerage Facilities, Wastewater which contains any substance that is defined as a hazardous waste by the Regulatory Agencies. B. Specific Prohibitions. No User shall introduce or cause to be introduced into the Sewerage Facilities, any Pollutant, substance, or Wastewater which: 1. Creates a fire or explosive hazard in the Sewerage Facilities including, but not limited to, wastestreams with a closed-cup flashpoint of less than 140 degrees Fahrenheit (60 degrees Centigrade) using the test methods specified in 40 CFR 261.21; or produces a gaseous mixture that is 10% or greater of the lower explosive limit (LEL). 2. Causes obstruction to the flow in the Sewerage Facilities resulting in interference or damage to the Sewerage Facilities. OCSD-48-25 3. Produces noxious or malodorous liquids, gases, solids, or other Wastewater which, either singly or by interaction with other Wastes, is sufficient to create a public nuisance or a hazard to life, or to prevent entry into the Sewerage Facilities for maintenance or repair. 4. Results in toxic gases, vapors, or fumes within the Sewerage Facilities in a quantity that may cause acute worker health and safety problems. 5. Contains any radioactive Wastes or isotopes except in compliance with applicable regulations from other governmental agencies empowered to regulate the use of radioactive materials. 6. Causes, alone or in conjunction with other sources, OCSD's treatment plant effluent to fail a toxicity test. 7. Causes OCSD's effluent or any other product of the treatment process, residues, biosolids, or scums, to be unsuitable for reclamation, reuse or disposal. Examples of items which may cause these conditions include, but are not limited, to food packaging, product containers, and non-dispersible products. 8. Causes discoloration or any other condition which affects the quality of OCSD's influent or effluent in such a manner that inhibits OCSD's ability to meet receiving water quality, biosolids quality, or air quality requirements established by Regulatory Agencies. 9. Creates excessive foaming in the Sewerage Facilities. 10. Violates any applicable Federal Categorical Pretreatment Standards, statute, regulation, or ordinance of any public agency or Regulatory Agency having jurisdiction over the operation of or discharge of Wastewater through the Sewerage Facilities. 11. Has a temperature higher than 140 degrees Fahrenheit, (60 degrees Centigrade), or which causes the temperature at the treatment plant to exceed 104 degrees Fahrenheit (40 degrees Centigrade). 12. Has a pH less than 6.0 or greater than 12.0. 13. Causes corrosion, fouling, occlusion, or damage to the POTW beyond normal wear and tear. 14. Is released in a discharge at a flow rate and/or Pollutant concentration (including oxygen-demanding Pollutant (BOD, etc.)) OCSD-48-26 which will cause interference with OCSD's Sewerage Facilities. 15. Is in excess of the permitted Mass Emission Rates established in accordance with: Section 212, or the concentration limits set forth in Table 1, or the discharge permit. 16. Contains material which will readily settle or cause an obstruction to flow in the Sewerage Facilities resulting in interference, such as, but not limited to, sand, mud, glass, metal filings, diatomaceous earth, cat litter, asphalt, wood, bones, hair, fleshings, food packaging, product containers, and non-dispersible products. 17. Includes petroleum oil, non-biodegradable cutting oil, or products of mineral oil origin in amounts that will cause interference or Pass Through. 18. Causes the Orange County Water District Groundwater Replenishment System product water to exceed its TOC limit of 0.5 mg/L. 202. PROHIBITION ON DILUTION No User shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the User's permit or to establish an artificially high flow rate for permit Mass Emission Rates. 203. PROHIBITION ON SURFACE RUNOFF AND GROUNDWATER A. No Person shall discharge groundwater, surface runoff, or subsurface drainage directly or indirectly to OCSD's Sewerage Facilities except as provided herein. Pursuant to Section 304 or 305, et seq., OCSD may approve the discharge of such water only when no alternate method of disposal is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Dry Weather Urban Runoff Discharge Permit or a Special Purpose Discharge Permit from OCSD. C. If a permit is granted for the discharge of such water into a Public Sewer, the User shall pay all applicable charges and shall meet such other conditions as required by OCSD. 204. PROHIBITION ON UNPOLLUTED WATER A. No Person shall discharge unpolluted water such as single pass cooling OCSD-48-27 water directly or indirectly to OCSD's Sewerage Facilities except as provided herein. Pursuant to Section 305, at seq., OCSD may approve the discharge of such water only when no alternate method of disposal or reuse is reasonably available or to mitigate an environmental risk or health hazard. B. The discharge of such waters shall require a Special Purpose Discharge Permit from OCSD. C. If a permit is granted for the discharge of such water into a public sewer, the User shall pay all applicable charges and shall meet such other conditions as required by OCSD. 205. PROHIBITION ON SLUG DISCHARGES AND NOTIFICATION REQUIREMENT OCSD has the right to control slug discharges, if it is determined to be necessary. All Significant Industrial Users are required to notify OCSD immediately of any changes at their facilities that could affect the potential for a slug discharge. 206. PROHIBITION ON THE USE OF GRINDERS A. Waste from industrial or commercial grinders shall not be discharged into a Public Sewer, except wastes generated in packing or preparing food or food products. Such grinders must shred the waste to a degree that all particles will be carried freely under normal flow conditions prevailing in the Public Sewer. B. Waste from Food Service Establishments operating a grinder is prohibited and shall not be discharged into a Public Sewer unless written authorization from the General Manager is obtained. 207. PROHIBITION ON POINT OF DISCHARGE No Person, except Local Sewering Agencies involved in maintenance functions of sanitary sewer facilities, shall discharge any Wastewater directly into a manhole or other opening in a sewer other than through an approved building sewer, unless approved by OCSD upon written application by the User and payment of the applicable fees and charges established therefor. 208. HAZARDOUS WASTE DISCHARGE NOTIFICATION REQUIREMENT Any User that discharges any hazardous waste into the Sewerage System shall notify OCSD immediately as required by 40 CFR 403.12(p). OCSD-48-28 209. PROHIBITION AND REQUIREMENTS FOR WASTEHAULER DISCHARGES TO OCSD'S SEWERAGE SYSTEM AND WASTEHAULER STATION A. No Wastehauler shall discharge to OCSD's Sewerage System, domestic septage or other approved waste or wastewater from a vacuum pumping truck or other liquid waste transport vehicle, without first obtaining both a valid Orange County Health Care Agency (OCHCA) registration or other control mechanism (where applicable), and a OCSD Wastehauler Permit as required by Section 306. Such Wastewaters shall be discharged only at locations designated by OCSD, and at such times as established by OCSD. OCSD may collect samples of each hauled load to ensure compliance with applicable standards. B. No Wastehauler shall discharge domestic septage or other approved Waste or Wastewater constituents in excess of Limits in Table 1. C. The discharge of industrial Wastewater by any Wastehauler is prohibited unless written permission of the General Manager has been obtained, the proper permits have been obtained, and the Industrial Wastewater meets federal and state limits applicable to the User or generator from which the Industrial Wastewater was obtained; or the Maximum Local Discharge Limits as specified in Table 1, whichever are more stringent. The discharge of hauled Industrial Wastewater is subject to all other requirements of this Ordinance. D. No Wastehauler shall discharge or deliver Wastewater to a Sewerage System that is tributary to OCSD's Sewerage Facilities that are from a source that is not within OCSD's service area unless prior authorization for such Wastewater is granted by the General Manager. E. No Wastehauler shall deliver directly to OCSD's Sewerage Facilities any Wastewater originating within OCSD's boundaries, from an industrial user subject to categorical Pretreatment Standards, and is greater than the categorical Pretreatment Standards, OCSD's Local Limits, or hazardous waste levels defined by RCRA or 40 CFR 261. F. Notwithstanding E above, no Wastehauler shall deliver directly to OCSD's Sewerage Facilities any Wastewater originating within OCSD's boundaries, from a commercial or an industrial user not subject to categorical Pretreatment Standards, and is greater than OCSD Local Limits or hazardous Waste levels defined by RCRA or 40 CFR 261. G. No Wastehauler shall add chemicals into Wastehauler trucks while on OCSD premises before discharging to the OCSD Wastehauler Station unless approved by OCSD. OCSD-48-29 H. No Wastehauler shall discharge Wastewater to the OCSD Wastehauler Station, which contains mixed load types, i.e., car wash Wastewater, domestic septage, brine, etc. I. Wastehaulers shall provide a Waste-Tracking Form for every load. This form shall include, at a minimum, the name and address of the industrial Wastehauler, permit number, truck identification, names and addresses of sources of Wastewater, and volume and characteristics of Wastewater. J. Discharge at the OCSD Wastehauler Station shall be through an appropriate hose and connection to the discharge port. Discharging Wastewater directly to the surface area of the Wastehauler Station is prohibited. K. Wastehauler hoses must be connected to the Wastehauler Station discharge port when being cleaned. L. Transferring loads between trucks or from portable toilets to trucks on OCSD property is prohibited unless permission from OCSD is obtained. 210. PROHIBITION ON MEDICAL WASTE A. No solid Wastes consisting of, but not limited to, hypodermic needles, syringes, instruments, utensils or other paper and plastic items from hospitals, clinics, offices of medical doctors, convalescent homes, medical laboratories or other medical facilities shall be discharged to the Sewerage System, unless prior written approval for such discharges has been granted by the General Manager. B. OCSD shall have the authority to require that any discharge of etiologic agents or infectious agents or substances to the Sewerage System be rendered inactive and noninfectious prior to discharge if the infectious Waste is deemed to pose a threat to the public health and safety, or can become an etiologic agent subsequent to discharge to the Sewerage System, or will result in any violation of applicable Wastewater discharge requirements. C. No unused, unwanted, or expired pharmaceuticals (both over the counter and prescription-only medications) shall be disposed of in the Sewerage System, except in accordance with federal and state regulations, or in the absence of such regulations, using Best Management Practices. 211. PROHIBITION ON DISPOSAL OF SPENT SOLUTIONS AND SLUDGES Spent solutions, sludges, and materials of quantity or quality in violation of, or prohibited by this Ordinance, or any permit issued under this Ordinance must be disposed of in OCSD-48-30 compliance with all regulatory requirements at a permitted point of disposal as defined by OCSD or Regulatory Agency with jurisdiction thereof. If the point of disposal is at an OCSD-permitted treatment facility, all Waste-Tracking Forms shall be retained for a minimum of three years by the facility and Wastehauler of said Wastewater, and made available for copying for review upon request. 212. PROHIBITION ON LIQUEFACTION No Person shall discharge Wastes or Wastewater resulting from liquefaction either directly or indirectly to the Sewerage System. 213. MASS EMISSION RATE DETERMINATION A. Mass Emission Rates for non-compatible or Compatible Pollutants that are present or anticipated in the User's Wastewater discharge may be set for each User and made an applicable part of each User's permit. These rates shall be based on Table 1, Maximum Allowable Local Discharge Limits, or Federal Categorical Pretreatment Standards, and the User's average daily Wastewater discharge for the past three years, the most recent representative data, or other data acceptable to the General Manager. B. To verify the User's operating data, OCSD may require the User to submit an inventory of all Wastewater streams and/or records indicating production rates. C. OCSD may revise limits or Mass Emission Rates previously established in the discharger's permit at any time, based on: current or anticipated operating data of the discharger or OCSD; OCSD's ability to meet NPDES limits; or changes in the requirements of Regulatory Agencies. D. The excess use of water to establish an artificially high flow rate for Mass Emission Rate determination is prohibited. OCSD-48-31 214. MAXIMUM ALLOWABLE LOCAL DISCHARGE LIMITS OCSD's Maximum Allowable Local Discharge Limits are shown in Table 1 below. TABLE 1 MAXIMUM ALLOWABLE LOCAL NON-DOMESTIC DISCHARGE LIMITS0) CONSTITUENT MILLIGRAMS/LITER 1,4-dioxanel2) 1.0 Ammonia Mass(') Arsenic 2.0 Biochemical Oxygen Demand (BOD) Mal Cadmium 1.0 Chromium(Total) 20.0 Copper 3.0 Cyanide (Total) 5.0 Lead 2.0 Mercury 0.03 Molybdenum 2.3 Nickel 10.0 Pesticides 0.01 Oil and Grease of Mineral or Petroleum Origin(4) 100.0 Polychlorinated Biphenyls (PCB) 0.01 Selenium 3.9 Silver 15.0 Sulfide (Dissolved) 0.5 Sulfide (Total) 5.0 Zinc 10.0 MAXIMUM ALLOWABLE DISCHARGE LIMITS FOR WASTEHAULERS DISCHARGING DOMESTIC SEPTAGE TO THE OCSD WASTEHAULER STATION CONSTITUENT MILLIGRAMS/LITER Cadmium 1.0 Chromium 35.0 Copper 25.0 Lead 10.0 Nickel 10.0 Zinc 50.0 of Users subject to Federal Categorical Pretreatment Standards may be required to meet more stringent limits. ai 1,4-dioxane is also known as'p-dioxane.' N Boo and ammonia mass discharged will be tracked by OCSD and Users. It Is Me Peonittee's responsibility to report the intended technically-based mass use to OCSD. l41"Oil and Grease of Mineral or Petroleum Origin"is also known as"Petroleum Oil and Grease as Silica Gel Treated n- Hexane Extractable Material"or"SGT-HEM Non-Polar Material! OCSD-48-32 ARTICLE 3. DISCHARGE PERMITS, CERTIFICATIONS, CHARGES, AND FEES 301. INTRODUCTION A. To provide the maximum public benefit from the use of OCSD's Sewerage Facilities, written authorization to use said facilities is required. This written authorization shall be in the form of a discharge permit or certification. No vested right shall be given by issuance of permits or certifications provided for in this Ordinance. OCSD reserves the right to establish, by Ordinance regulation, or in Wastewater Discharge Permits or certifications, more stringent standards or requirements on discharges to OCSD Sewerage Facilities if deemed by the General Manager appropriate to comply with this Ordinance and the requirements of Regulatory Agencies. B. The discharge permit shall be in one of five forms and is dependent upon the type of discharger, volume, and characteristics of discharge. The five discharge permits are: 1. Class I Wastewater Discharge Permit. 2. Class II Wastewater Discharge Permit. 3. Dry Weather Urban Runoff Discharge Permit. 4. Special Purpose Discharge Permit. 5. Wastehauler Discharge Permit. C. The Discharge Certification is issued to those Users that are discharging regulated Wastewater but are not otherwise required to obtain a discharge permit. D. The Zero Discharge Certification is issued to certify that a particular Pollutant or process is not used or discharged to OCSD, even though regulated process Wastewater may still be generated on-site and eventually wastehauled or otherwise eliminated. Such a facility does not require a discharge permit, but may require a Zero Discharge Certification. 302. CLASS I WASTEWATER DISCHARGE PERMITS A. No User requiring a Class I permit shall discharge Wastewater without obtaining a Class I Wastewater Discharge Permit. B. Class I Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Wastewater Discharge OCSD-48-33 Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. C. All Class I Users proposing to discharge directly or indirectly into the OCSD Sewerage Facilities shall obtain a Wastewater Discharge Permit by filing an application pursuant to Section ARTICLE 2 and paying the applicable fees pursuant to Section 302.3. For purposes of this Ordinance, a Class I User is any User: 1. Subject to Federal Categorical Pretreatment Standards under 40 CFR 403.6 and 40 CFR chapter 1, subchapter N; or 2. That discharges an average of 25,000 gallons per day or more of process Wastewater to the POTW (excluding sanitary, noncontact cooling and boiler blowdown Wastewater); or 3. Contributes a process wastestream which makes up 5 percent or more of the average dry weather hydraulic or organic capacity of the OCSD POTW; or 4. That is designated as such by OCSD on the basis that the Industrial User has a reasonable potential for adversely affecting the OCSD POTW's operation or for violating any Pretreatment Standard, local limit or requirement (in accordance with 40 CFR 403.8(f)(6)); or 5. That may cause Pass Through affecting OCSD's ability to comply with its NPDES Permit or other regulations and standards; or 6. That may cause Interference with OCSD's Sewerage Facilities. 302.1 Class I Wastewater Discharge Permit Application A. Any User required to obtain a Class I Wastewater Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application on the form prescribed by OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s), NAICS number(s), description of the manufacturing process or service activity. 2. (Whichever is applicable) name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of Wastewater to be discharged. OCSD-48-34 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by OCSD, including, but not limited to, those mentioned in Section 213, Mass Emission Rate Determination, and Table 1, Local Discharge Limits, of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the discharger and acceptable to OCSD. 8. Time and duration of discharge. 9. Number of employees per shift and hours of work per employee per day for each shift. 10. Waste minimization, best management practices, and water conservation practices. 11. Production records, if applicable. 12. Waste-Tracking Forms, if applicable. 13. Landscaped area in square feet, if applicable. 14. Tons of cooling tower capacity, if applicable. 15. EPA Hazardous Waste Generator Number, if applicable. 16. Any other information as specified. B. Applicants may be required to submit site plans,floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, Pretreatment equipment, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit information related to the applicant's business operations, processes, and potential discharge as may be requested by OCSD to properly evaluate the permit application. D. After evaluation of the data, OCSD may issue a Wastewater Discharge OCSD-48-35 Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect OCSD's Sewerage Facilities. E. The permit application may be denied if the applicant fails to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. F. The permit application may be denied if the applicant has in the past demonstrated an inability to keep current with OCSD invoices for items such as Permit Fees, Non-Compliance Resampling Fees, Civil Penalties, Administrative Civil Penalties, Charges for Use, and Supplemental Capital Facilities Capacity Charges. 302.2 Class I Permit Conditions. and Limits A. A Class I permit shall contain all of the following conditions or limits: 1. Mass Emission Rates and concentration limits regulating non- compatible Pollutants. 2. Requirements to notify OCSD in writing prior to modification to processes or operations through which Industrial Wastewater may be produced. 3. Location of the User's on-site sampling point. 4. Requirements for submission of self-monitoring reports, technical reports, production data, discharge reports, compliance with Pretreatment Standards, BMP-based Categorical Pretreatment Standards and/or local limits, and/or Waste-Tracking Forms. 5. Requirements for maintaining, for a minimum of three(3)years, plant records relating to Wastewater discharge, and Waste-Tracking Forms as specified by OCSD. 6. Requirements to submit copies of tax and water bills. B. A Class I permit may contain any of the following conditions and/or limits: 1. Requirements for the User to construct and maintain, at his own expense, appropriate Pretreatment equipment, pH control, Flow Monitoring Facilities, and sampling facilities. OCSD-48-36 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Requirements to self-monitor. 4. Assumed values for BOD and suspended solids characteristics that typify the Discharger's effluent for determination of the charge for use. 5. Other terms and conditions which may be appropriate to ensure compliance with this Ordinance or determined by the General Manager to be appropriate to protect OCSD's Sewerage System. 302.3 Class I Permit Fee A. The Class I permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 623.(E) of this Ordinance. 302.4 Class I Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. New source indirect Dischargers shall be required to install and start up any necessary pollution control equipment before beginning discharge, and comply with applicable Federal Categorical Pretreatment Standards not to OCSD-48-37 exceed thirty (30) days after the commencement of discharge. C. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. D. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45)days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 302.5 Class I Permit Duration and Renewal Class I permits shall normally be issued for a period not to exceed four(4)years. At least forty-five (45) days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 302.6 Class I Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of Sewage in OCSD's Sewerage Facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing Wastewater collection, treatment, and disposal. B. A Discharger who is issued a Class I Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the unit charge rates adopted by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by OCSD. OCSD shall compute the charge for use based upon actual use for the preceding fiscal year on an annual reconciliation statement. C. The charge for use is payable within forty-five (45) days of invoicing by OCSD. A special assessment credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. D. In order for OCSD to determine actual annual water use, the User shall provide to OCSD copies of its water bills. If these water bill copies are not received by August 15th of each year for the 12 month period ended closest OCSD-48-38 to June 30, OCSD will endeavor to obtain the water use data. Data obtained by OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when OCSD obtains water use data. OCSD's Board of Directors shall adopt the amount of the fee. E. The charge for use shall be computed by the following formula: Charge for Use = VoV + BoB + SoS — Special Assessment Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo, Bo, So = Unit Charge rates established and adopted by Ordinance of OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph F below: F. The Unit Charge rates in the charge-for-use formula shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the Sewerage System shall be levied at a rate to be determined from time to time by the Board of Directors. This Charge shall be allocated among the three Wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of state and federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 2. A Capital Facilities Replacement Service component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among Wastewater charge parameters of flow, biochemical oxygen demand, and suspended OCSD-48-39 solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand, and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 3. The Unit Charge rates for each respective Wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for Vo, and in dollars per thousand pounds for Bo and So. G. Other measurements of the organic content of the Wastewater of a Discharger, such as COD or TOC, may be used instead of BOD. However, the Discharger must establish to the General Manager's satisfaction a relationship between the BOD of the Wastewater and the parameter of measure. This relationship shall be used by OCSD in determining the charge for use. When Wastewater from sanitary facilities is discharged separately from the other Wastewater of a Discharger, the charge for use for discharging the Wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic Wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full time on a daily basis. This may be determined by averaging the number of people employed at the beginning and end of each quarter, or other period that reflects normal employment fluctuations. 303. CLASS II WASTEWATER DISCHARGE PERMITS A. No User requiring a Class II permit shall discharge Wastewater without obtaining a Wastewater Discharge Permit. B. Class II Wastewater Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use and fees established by OCSD. The conditions of Wastewater Discharge Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. C. All Class II Users proposing to discharge directly or indirectly into the OCSD-48-40 OCSD's Sewerage Facilities shall obtain a Wastewater discharge Permit by filing an application pursuant to Section ARTICLE 1 and paying the applicable fees pursuant to Section 303.3. For purposes of this Ordinance, a Class II User is any User: 1. Whose charge for use is greater than the special assessment"OCSD Sewer User Fee" included on the County of Orange secured property tax bill exclusive of debt service; and 2. Discharging Wastewater other than sanitary; and 3. Not otherwise required to obtain a Class I permit. 303.1 Class II Wastewater Discharge Permit Application A. Any User required to obtain a Class II Wastewater Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application on the form prescribed by OCSD. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, assessor's parcel number(s)and NAICS number(s); description of the manufacturing process or service activity. 2. (Whichever is applicable) Name, address of any and all principals/owners/major shareholders of company; Articles of Incorporation; most recent Report of the Secretary of State; Business License. 3. Volume of Wastewater to be discharged. 4. Name of individual who can be served with notices other than officers of corporation. 5. Name and address of property owner, landlord and/or manager of the property. 6. Water supplier and water account numbers. 7. Wastewater constituents and characteristics as required by OCSD, including, but not limited to, those mentioned in Section 213, Mass Emission Rate Determination, and Table 1, Local Discharge Limits of this Ordinance. These constituents and characteristics shall be determined by a laboratory selected by the Discharger and acceptable to OCSD. 8. Time and duration of discharge. OCSD-48-41 9. Number of employees and average hours of work per employee per day. 10. Production records, if applicable. 11. Waste-Tracking Forms, if applicable. 12. Landscaped area in square feet, if applicable. 13. Tons of cooling tower capacity, if applicable. 14. EPA Hazardous Waste Generator Number, if applicable. 15. Any other information as specified. B. Applicants may be required to submit site plans,floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, Pretreatment systems, and appurtenances by size, location, and elevation for evaluation. C. Applicants may also be required to submit other information related to the applicant's business operations, processes, and potential discharge as may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, OCSD may issue a Wastewater Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect the OCSD system. E. The permit application may be denied if the applicant fails to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicant's plans to ensure that the discharge limits will be met or if the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 303.2 Class II Permit Conditions and Limits A. A Class II permit shall contain all of the following conditions and/or limits: 1. Applicable Mass Emission Rates and concentration limits regulating non-compatible Pollutants. 2. Requirements to notify OCSD in writing prior to modification to processes or operations through which Industrial Wastewater may be produced. OCSD-48-42 3. Location of the User's on-site sample point. 4. Requirements for submission of technical reports, production data, discharge reports, and/or Waste-Tracking Forms. 5. Requirements to submit copies of tax and water bills. B. A Class II permit may contain any of the following conditions and/or limits: 1. Requirements for the User to construct and maintain, at his own expense, appropriate Pretreatment equipment, pH control, flow monitoring and/or sampling facilities. 2. Limits on rate and time of discharge or requirements for flow regulation and equalization. 3. Assumed values for BOD and suspended solids characteristics that typify the Discharger's effluent for determination of the charge for use. 4. Requirements to self-monitor. 5. Requirements for maintaining, for a minimum of three years, plant records relating to Wastewater discharge, and Waste-Tracking Forms as specified by OCSD. 6. Other provisions which may be appropriate to ensure compliance with this Ordinance. 7. Other terms and conditions determined by the General Manager to be appropriate to protect OCSD's Sewerage System. 303.3 Class II Permit Fee A. The Class II permit fee shall be in an amount adopted by Ordinance of the Board of Directors. The permit fee shall be payable at the time a permit application is submitted for the issuance of a new permit or a renewed permit. Payment of the permit fee must be received by OCSD prior to issuance of either a new permit or a renewed permit. Permittee shall also pay any delinquent invoices in full prior to permit renewal. B. Any permit issued for a location wherein the Permittee is not the property owner may be conditioned upon depositing financial security to guarantee payment of all annual fees and charges to be incurred, in accordance with the provisions of Section 623.(E) of this Ordinance. OCSD-48-43 303.4 Class II Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by the General Manager during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. The Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limitations, conditions, or requirements at least forty-five (45)days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 303.5 Class II Permit Duration and Renewal Class II permits shall normally be issued for a period not to exceed five (5)years. At least forty-five (45) days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 303.6 Class II Permit Charge for Use A. The purpose of a charge for use is to ensure that each recipient of sewerage service from OCSD pays its reasonably proportionate share of all the costs of providing that sewerage service. Charges for use to recover the cost of conveying, treating, and disposing of Sewage in OCSD's Sewerage Facilities are exclusive of any fees levied by local sewering agencies. The charge for use shall be based on the total maintenance, operation, capital expenditures, and reserve requirements for providing Wastewater collection, treatment, and disposal. B. A Discharger who is issued a Class II Wastewater Discharge Permit under the provisions of this Ordinance shall pay a charge for use in accordance with the formula contained herein and the Unit Charge rates adopted OCSD-48-44 annually by Ordinance of the Board of Directors. These fees shall be invoiced on a quarterly basis. The quarterly invoice shall be based upon an estimate of the annual use as determined by OCSD. Annually, OCSD shall compute the charge for use based upon actual use for the preceding fiscal year on an annual reconciliation statement. The charge for use is payable within forty-five (45) days of invoicing by OCSD. A special assessment credit will be allowed for any regional sanitary sewer service charge adopted by the Board of Directors by separate Ordinance and levied against the permitted property. C. In order for OCSD to determine actual annual water use, the User shall provide to OCSD copies of its water bills. If these water bill copies are not received by August 15th of each year for the 12 month period ended closest to June 30, OCSD will endeavor to obtain the water use data. Data obtained by OCSD will be considered correct and will not be adjusted before the next annual reconciliation statement. There shall be a fee levied for OCSD administrative costs when water use data is obtained by OCSD. The amount of the fee shall be adopted by the OCSD Board of Directors. D. The charge for use shall be computed by the following formula: Charge for Use = VoV + BoB + SoS — Special Assessment Credit Where V = total annual volume of flow, in millions of gallons B = total annual discharge of biochemical oxygen demand, in thousands of pounds S = total annual discharge of suspended solids, in thousands of pounds Vo, Bo, So = Unit Charge rates adopted annually by Ordinance of OCSD's Board of Directors, based upon the funding requirements of providing sewerage service, in dollars per unit as described in Paragraph E below. E. The unit charge rates in the charge for use formula shall be established annually and shall be determined by the following method: 1. An Operations and Maintenance component of the Unit Charge for the total annual operation and maintenance funding requirements of the Sewerage System shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three Wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the OCSD-48-45 General Manager's determination as to the costs associated with each parameter and pursuant to applicable requirements of state and federal Regulatory Agencies. The operation and maintenance costs as distributed to flow, biochemical oxygen demand and suspended solids shall be divided by the projected annual total flow volume and weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 2. A Capital Facilities Replacement component of the Unit Charge for capital replacement and capital improvement shall be levied at a rate to be determined from time to time by the Board of Directors. This charge shall be allocated among the three Wastewater charge parameters of flow, biochemical oxygen demand and suspended solids in accordance with the General Manager's determination of which portion of the charge predominantly relates to each parameter. The capital facilities charge distributed to biochemical oxygen demand and suspended solids shall be divided by the projected annual weights of biochemical oxygen demand and suspended solids to be treated by the Sewerage System in the budgeted year. 3. The unit charge rates for each respective Wastewater component in (1) and (2) above shall be summed. The Unit Charge rates so determined will be expressed in dollars per million gallons for Vo, and in dollars per thousand pounds for Bo and So. F. Other measurements of the organic content of the Wastewater of a Discharger, such as COD or TOC, may be used instead of BOD. However, the Discharger must establish to the General Manager's satisfaction a relationship between the BOD of the Wastewater and the other parameter of measure. This relationship shall be used by OCSD in determining the charge for use. When Wastewater from sanitary facilities is discharged separately from the other Wastewater of a Discharger, the charge for use for discharging the sanitary Wastewater may be determined by using the following: 1. 25 gallons per employee per eight-hour working day. 2. BOD and suspended solids to be calculated at domestic Wastewater strength per employee per year. The number of employees will be considered as the average number of people employed full time on a daily basis. This may be determined by averaging the number of people employed at the OCSD-48-46 beginning and end of each quarter, or other period that reflects normal employment fluctuations. 304. DRY WEATHER URBAN RUNOFF DISCHARGE PERMITS A. No User shall discharge urban runoff directly to OCSD's Sewerage System without obtaining a Dry Weather Urban Runoff Discharge Permit. B. OCSD shall determine whether the dry weather urban runoff proposed to be discharged into OCSD's Sewerage System may cause a potential environmental risk and/or health hazard that cannot be economically or practically controlled by alternative disposal methods. C. Dry Weather Urban Runoff Discharge Permits shall be subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. D. All Users required to obtain a Dry Weather Urban Runoff Discharge Permit proposing to discharge directly or indirectly into OCSD's Sewerage Facilities shall file an application pursuant to Section 304 and pay the applicable fees pursuant to Sections 304.3 and 304.6. 304.1 Dry Weather Urban Runoff Discharge Permit AmAication A. An applicant shall contact OCSD prior to any construction of facilities and discharge of dry weather urban runoff into the Sewerage System to determine if the discharge of dry weather urban runoff to the OCSD's Sewerage Facilities is feasible. B. Applicants shall complete and file with OCSD, prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by applicable fees, design plans, a detailed analysis of other disposal alternatives, or other data as needed by OCSD for review. The applicant shall provide justification that disposal alternatives for the dry weather urban runoff are not economically or practically feasible in lieu of sewer discharge. C. In addition to the discharge permit, OCSD may require that the permit applicant enter into an agreement setting forth the terms under which the dry weather urban runoff discharge is authorized. D. Applicants shall provide adequate Pretreatment and/or Best Management Practices included within the applicants' plans to ensure that the applicable discharge limits shall be met. OCSD-48-47 304.2 Dry Weather Urban Runoff Discharge Permit Condition and Limits The issuance of a Dry Weather Urban Runoff Discharge Permit may contain any the following conditions or limits: A. Mass Emission Rates and concentration limits regulating non-compatible Pollutants. B. Requirements for the User to construct and maintain, at the User's expense, appropriate Pretreatment equipment, Flow Monitoring Facilities, and devices to prevent storm water discharge into OCSD's Sewerage System during a wet weather event (rain event). C. Requirements for the User to provide OCSD with its operations and maintenance plan, best management practices, and pollution prevention strategies designed to minimize or eliminate dry weather urban runoff Pollutants. D. Limits on rate and time of discharge or requirements for flow regulation and equalization prior to discharge to the Sewerage System. E. Requirements to self-monitor the discharge to the Sewerage System. F. The General Manager may impose additional requirements as may be appropriate to reduce the burden on OCSD's Sewerage Facilities. G. Prohibitions on the discharge, which may cause OCSD's effluent, biosolids, or any other product of its treatment process, to be unsuitable for reclamation, reuse, or disposal. 304.3 Dry Weather Urban Runoff Discharge Permit Fee The Dry Weather Urban Runoff Discharge Permit fee shall be paid by the applicant in an amount established in the applicable Ordinance adopted by OCSD's Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each Permittee shall also pay delinquent invoices in full prior to permit renewal. 304.4 Dry Weather Urban Runoff Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The discharger's current or anticipated operating data; OCSD-48-48 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies, which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested changes and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond accordingly. C. A Permittee shall be informed of any changes in the permit at least forty- five (45) days prior to the effective date change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 304.5 Dry Weather Urban Runoff Discharge Permit Duration and Renewal Dry Weather Urban Runoff Discharge Permit shall normally be issued for a period not to exceed five (5)years. At least forty-five (45) days prior to the expiration of the permit, the User shall apply for renewal of the permit in accordance with the provisions of this Article 3. 304.6 Dry Weather Urban Runoff Discharge Permit Charge for Use A Discharger who is issued a Dry Weather Urban Runoff Discharge Permit under the provision of this Ordinance shall pay a charge for use in accordance with rates established by Ordinance adopted by OCSD's Board of Directors. 305. SPECIAL PURPOSE DISCHARGE PERMITS A. No User requiring a Special Purpose Discharge Permit shall discharge Wastewater without obtaining a Special Purpose Discharge Permit. Alternatively, at the discretion of the OCSD Division Head or Department Head, OCSD may issue a Letter to Discharge in lieu of a Special Purpose Discharge Permit. B. Special Purpose Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Special Purpose Discharge Permits shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. C. All Special Purpose Discharge Permit Users proposing to discharge directly OCSD-48-49 or indirectly into OCSD's Sewerage Facilities shall obtain a Special Purpose Discharge Permit by filing an application pursuant to Section 305 and paying the applicable fees pursuant to Sections 305.3 and 305.6. This discharge permit may be granted when no alternative method of disposal is reasonably available, or to mitigate an environmental risk or health hazard. 305.1 Special Purpose Discharge Permit Aoolication A. Applicants seeking a Special Purpose Discharge Permit shall complete and file with OCSD, prior to commencing discharge, an application in the form prescribed by OCSD. This application shall be accompanied by the applicable fees, plumbing plans, a detailed analysis of the alternatives for water disposal, or other data as needed by OCSD for review. B. The permit application may be denied when the applicant has failed to establish to OCSD's satisfaction that adequate Pretreatment equipment is included within the applicants' plans to ensure that the discharge limits will be met or that the applicant has, in the past, demonstrated an inability to comply with applicable discharge limits. 305.2 Special Purpose Discharge Permit Conditions and Limits A. Discharge conditions and limits shall be no less stringent than Section 201(A), General Prohibitions; 201(B), Specific Prohibitions; Section 213, Mass Emission Rate Determination; and Table 1, Local Discharge Limits. B. Monitoring requirements for the discharge shall be for those non-compatible Pollutants known to exist in the discharge. At least one set of baseline analysis prior to or upon sewer discharge may be required for all constituents contained in the most current Environmental Protection Agency (EPA) "Priority Pollutant" list, excluding asbestos, as listed in Appendix A of 40 CFR 423, or as subsequently amended. C. OCSD may specify and make part of each Special Purpose Discharge Permit specific Pretreatment Requirements or other terms and conditions determined by the General Manager to be appropriate to protect OCSD's Sewerage Facilities, the Local Sewering Agency, to comply with Regulatory Agencies' requirements, to ensure compliance with this Ordinance, and to assess a charge for use. 305.3 Special Purpose Discharge Permit Fee The special purpose discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. Each Permittee shall also pay delinquent invoices in full prior to permit renewal. OCSD-48-50 305.4 Special Purpose Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. A Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. A Permittee shall be informed of any changes in the permit at least forty five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 305.5 Special Purpose Discharge Permit Duration and Renewal Special purpose discharge permits shall normally be issued for a period not to exceed five (5) years, but may be renewed as determined by the General Manager. Users seeking permit renewal shall comply with all provisions of this Article 3. 305.6 Special Purpose Discharge Permit Charge for Use The General Manager shall establish a charge for use to cover all costs of OCSD for providing sewerage service and monitoring. A deposit determined by the General Manager to be sufficient to pay the estimated charges for use shall accompany the Special Purpose Discharge Permit application, and said deposit shall be applied to the charges for use. 306. WASTEHAULER DISCHARGE PERMIT A. Wastehauler Discharge Permits shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of Wastehauler discharge permits OCSD-48-51 shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. B. A Wastehauler proposing to discharge Waste and/or Wastewater into the OCSD Wastehauler Station shall obtain and keep current both a valid Orange County Health Care Agency registration (where applicable), and a OCSD Wastehauler Permit. 306.1 Wastehauler Discharge Permit Application A. No User or Wastehauler shall discharge waste and/or Wastewater without both a valid Orange County Health Care Agency registration (where applicable) and an OCSD Wastehauler Discharge Permit. B. Any User or Wastehauler required to obtain a Wastehauler Discharge Permit shall complete and file with OCSD prior to commencing discharge, an application in a form prescribed by OCSD. This application shall be accompanied by the applicable fees. The applicant shall submit, in units and terms appropriate for evaluation, the following information: 1. Name, address, telephone number, and description of the industries or clients using the applicant's services. 2. (Whichever is applicable) Name and address of any and all principals/owners/major shareholders of the company, Articles of Incorporation, most recent Report of the Secretary of State, and Business License. 3. Name and address of leaseholder of the vehicle or trailer, if applicable. 4. Number of trucks and trailers and the license numbers and tank hauling capacity of each truck or trailer. 5. A copy of the applicant's valid Orange County Health Care Agency registration, where applicable. C. Other information related to the applicant's business operations and potential discharge may be requested to properly evaluate the permit application. D. After evaluation of the data furnished, OCSD may issue a Wastehauler Discharge Permit, subject to terms and conditions set forth in this Ordinance and as otherwise determined by the General Manager to be appropriate to protect OCSD's Sewerage System. OCSD-48-52 306.2 Wastehauler Discharge Permit Conditions and Limits The issuance of a Wastehauler permit may contain any of the following conditions or limits: A. Limits on discharge of heavy metals and other priority Pollutants. B. Requirements for maintaining and submitting Wastehauling records and Waste-Tracking Forms, and a valid copy of a current Orange County Health Care Agency registration (where applicable). C. Additional requirements as otherwise determined to be appropriate by the General Manager to protect OCSD's Sewerage System or as specified by other Regulatory Agencies. D. Other terms and conditions which may be applicable to ensure compliance with this Ordinance. 306.3 Wastehauler Discharge Permit Fee The Wastehauler discharge permit fee shall be paid by the applicant in an amount adopted by Ordinance of the Board of Directors. Payment of permit fees must be received by OCSD prior to issuance of either a new permit or a renewed permit. A Permittee shall also pay any delinquent invoices in full prior to permit renewal. 306.4 Wastehauler Identification Decal and Access Card Transfer A. The identification decal is non-transferable. B. If a gate access card is issued, it shall be issued to a specific permitted vehicle and is non-transferable unless previously authorized in writing by OCSD. 306.5 Wastehauler Discharge Permit Modification of Terms and Conditions A. The terms and conditions of an issued permit may be subject to modification and change in the sole determination by OCSD during the life of the permit based on: 1. The Discharger's current or anticipated operating data; 2. OCSD's current or anticipated operating data; 3. Changes in the requirements of Regulatory Agencies which affect OCSD; or OCSD-48-53 4. A determination by the General Manager that such modification is appropriate to further the objectives of this Ordinance. B. Permittee may request a modification to the terms and conditions of an issued permit. The request shall be in writing stating the requested change, and the reasons for the change. OCSD shall review the request, make a determination on the request, and respond in writing. C. Permittee shall be informed of any change in the permit limits, conditions, or requirements at least forty five (45) days prior to the effective date of change. Any changes or new conditions in the permit shall include a reasonable time schedule for compliance. 306.6 Wastehauler Discharge Permit Duration and Renewal Wastehauler Discharge Permits shall be issued for a period not to exceed three (3)years. The Wastehauler Discharge Permit is contingent upon the Permittee maintaining a valid Orange County Health Care Agency Permit registration throughout the duration of the Wastehauler Discharge Permit. If at any time, the Permittee is determined to not have a valid OCHCA registration, the OCSD Wastehauler Discharge Permit will be immediately revoked. Upon expiration of the permit, the User and/or Wastehauler shall apply for renewal of the permit in accordance with the provisions of Article 3. 306.7 Wastehauler Discharge Permit Charge for Use A charge for use to cover all costs of OCSD for providing the Wastehauler Station service and monitoring shall be established by Ordinance of the Board of Directors. 307. DISCHARGE CERTIFICATIONS A. Discharge Certifications may be issued to those Users that are discharging regulated Wastewater but are not otherwise required to obtain a discharge permit. B. No User requiring a Discharge Certification or a Zero Discharge Certification shall discharge non-domestic Wastewater to OCSD without obtaining certification. C. Discharge Certifications shall be expressly subject to all provisions of this Ordinance and all other regulations, charges for use, and fees established by OCSD. The conditions of the Discharge Certifications shall be enforced by OCSD in accordance with this Ordinance and applicable state and federal regulations. D. All Users subject to Discharge Certifications proposing to discharge directly or indirectly into the OCSD's Sewerage Facilities shall obtain a Discharge OCSD-48-54 Certification by filing an application and paying all applicable fees thereto. E. A User required to obtain a Discharge Certification may be required, at OCSD's discretion, to submit a completed application, and OCSD will approve the certification or otherwise proceed as required by federal law. F. The Discharge Certification shall contain as a minimum: 1. BMPs to regulate the quality of Wastewater discharged; 2. Requirements to periodically certify that appropriate BMPs are being practiced or are no longer necessary; 3. Requirements to notify OCSD in writing prior to modification to processes or operations through which regulated Wastewater may be produced; 4. Notice that OCSD may inspect the facility as necessary to assess and assure compliance with all discharge requirements; and 5. Requirements to comply with Resource Conservation and Recovery Act (RCRA) and state hazardous waste regulations regarding the proper disposal of hazardous waste. G. A Zero Discharge Certification shall contain as a minimum: 1. A statement that no discharge of regulated Wastewater is permitted; 2. Requirements to notify OCSD of any changes in operation resulting in a potential for discharge; 3. Requirements to periodically certify that no discharge of regulated Wastewater has occurred; 4. Notice that OCSD may inspect the facility as necessary to assess and assure compliance with the "no discharge" requirement; and 5. Requirements to comply with Resource Conservation and Recovery Act (RCRA) and state hazardous waste regulations regarding the proper disposal of hazardous waste. 308. OUT OF DISTRICT PERMITS/DISCHARGERS A. Industrial Wastewater Discharge Permits for Dischargers located outside OCSD's boundaries but within the OCSD service area and tributary to OCSD's Sewerage Facilities, may be issued by a Local Sewering Agency OCSD-48-55 after approval by OCSD. OCSD shall have the right of inspection and sampling of the User's discharge to determine compliance with Industrial Wastewater discharge regulations. Such inspection and sampling will be performed under a coordinated plan developed with the Local Sewering Agency. The more stringent of the industrial Wastewater discharge regulations and effluent limits of OCSD and the local agency shall apply to the Discharger. B. Pursuant to Article 6 herein, OCSD shall have the right to enforce the Federal Regulations,the provisions of this Ordinance, and permit conditions and limits applicable to any User located outside of OCSD's service area, but whose discharge is tributary to OCSD's Sewerage Facilities. C. The fees for use shall be determined by OCSD and set forth in a use agreement with the Local Sewering Agency. D. The requirements for a liquid wastehauler program may be established by a local sewering agency after obtaining written permission from OCSD. OCSD-48-56 ARTICLE 4. FACILITIES REQUIREMENTS 401. DRAWING SUBMITTAL REQUIREMENTS Upon request by OCSD: A. Applicants or Users may be required to submit three copies of detailed facility plans. The submittal shall be in a form and content acceptable to OCSD for review of existing or proposed Pretreatment facilities, spill containment facilities, monitoring facilities, metering facilities, and operating procedures. The review of the plans and procedures shall in no way relieve the User of the responsibility of modifying the facilities or procedures in the future, as necessary to produce a discharge acceptable to OCSD, and to meet the requirements of this Ordinance or any requirements of other Regulatory Agencies. B. The drawing shall depict as a minimum the manufacturing process (Wastewater generating sources), spill containment, monitoring or metering facilities, and Pretreatment facilities. C. The applicant or User shall submit a schematic drawing of the Pretreatment facilities, piping and instrumentation diagram, and Wastewater characterization report. D. Users and applicants may also be required to submit for review site plans, floor plans, mechanical and plumbing plans, and details to show all sewers, spill containment, clarifiers, and appurtenances by size, location, and elevation for evaluation. E. OCSD may require the drawings be prepared by a California Registered Chemical, Mechanical, or Civil Engineer. F. Permittees shall be required to submit updated detailed facility plans. 402. PRETREATMENT FACILITIES A. All Users shall provide Wastewater treatment as necessary to comply with this ordinance and shall achieve compliance with all Categorical Pretreatment Standards, Table 1, Local Discharge Limits, and the prohibitions set out in Sections 201 (A) & (B) of this Ordinance within the time limitations specified by EPA, the state, or OCSD, whichever is more stringent. Any facilities necessary for compliance shall be provided, operated by a qualified operator, and maintained in proper operating condition at the User's expense. OCSD-48-57 B. All Users may also be required by OCSD to submit Wastewater analysis plans, contingency plans, and meet other necessary requirements to ensure proper operation of the Pretreatment facilities and compliance with permit limits and this Ordinance. C. No User shall increase the use of water or in any other manner attempt to dilute a discharge as a partial or complete substitute for treatment to achieve compliance with this Ordinance and the User's Permit. 403. SPILL CONTAINMENT FACILITIES/ACCIDENTAL SLUG CONTROL PLANS A. All Users shall provide spill containment for protection against discharge of prohibited Pollutants, materials or other Wastewaters regulated by this Ordinance. Such protection shall be designed to secure the discharges and to prevent them from entering into the Sewerage System in accordance with reasonable engineering standards. Such facilities shall be provided and maintained at the User's expense. B. The General Manager shall require any Significant Industrial User to develop and implement an accidental discharge/slug control plan. OCSD may evaluate whether each Industrial User needs such a plan. Any User required to develop and implement an accidental discharge/control slug plan shall submit a plan which addresses, at a minimum, the following: 1. Description of discharge practices, including non-routine batch discharges. 2. Description of stored chemicals. 3. Procedures for immediately notifying OCSD of any accidental of slug discharge. Such notification must also be given for any discharge which would violate any of the prohibited discharges in Article 2 of this Ordinance. 4. Procedures to prevent adverse impact from any accidental or slug discharge. Such procedures include, but are not limited to, inspection and maintenance of storage areas, handling and transfer of materials, loading and unloading operations, control of plant site run-off, worker training, building of containment structures or equipment, measures for containing toxic organic Pollutants (including solvents), and measures and equipment for emergency response. OCSD-48-58 404. MONITORING/METERING FACILITIES All Wastewater samples must be representative of the User's discharge. Wastewater monitoring and flow measurement facilities shall be properly operated, kept clean, and maintained in good working order at all times. The failure of a User to keep its monitoring facility in good working order shall not be grounds for the User to claim that sample results are unrepresentative of its discharge. A. OCSD may require the User to construct and maintain in proper operating condition at the User's sole expense, flow monitoring, constituent monitoring and/or sampling facilities. B. Permittees may be required to install and maintain an appropriate effluent flow monitoring device. Calibration of such flow monitoring device shall be done annually or as specified in the Wastewater discharge permit. C. The monitoring or metering facilities may be required to include a security closure that can be locked with an OCSD provided hasp lock during sampling or upon termination of service. D. The location of the monitoring or metering facilities shall be subject to approval by OCSD. E. The User shall provide immediate, clear, safe and uninterrupted access to OCSD to the User's monitoring and metering facilities. F. For all industries permitted by OCSD, domestic Wastewaters shall be kept segregated from all Industrial Wastewaters until the Industrial Wastewaters have passed through any required Pretreatment system or device and the Permittee's sample point. 405. WASTE MINIMIZATION REQUIREMENTS A. As required by a User's permit, the User shall provide waste minimization plans to reduce or eliminate Pollutant discharge to the Sewerage System and conserve water. The User shall investigate product substitution, housekeeping practices, provide inventory control, implement employee education, and other steps as necessary to minimize Wastewater produced. B. Upon approval by OCSD, a User may certify that their facility does not discharge any type of Wastewater containing Pollutants that may directly or indirectly discharge into OCSD's Sewerage System as a form of Best Management Practice (BMP). OCSD-48-59 ARTICLE 5. MONITORING, REPORTING, NOTIFICATION, AND INSPECTION REQUIREMENTS 501. MONITORING AND REPORTING CONDITIONS A. Monitoring for Annual Charge for Use The Wastewater constituents and characteristics of a Discharger needed for determining the annual charge for use shall be submitted in the form of self-monitoring reports by the User to OCSD, if requested. The frequency of analyses and reporting shall be set forth in the User's permit. The analyses of these constituents and characteristics shall be by a laboratory acceptable to OCSD, and at the sole expense of the Permittee. Analyses performed by OCSD's personnel may be used in the determination of the annual charge for use. B. Monitoring for Compliance with Permit Conditions or Reporting Requirements OCSD may require reports for self-monitoring of Wastewater constituents and characteristics of the Discharger needed for determining compliance with any limit or requirements as specified in the User's permit, federal or state regulations, or this Ordinance. The federal Pretreatment regulations at 40 CFR 403.12(g)(3) and (4) contain requirements for collecting samples such as requiring that sampling must be representative of conditions occurring during the reporting period and that grab samples must be collected for certain parameters. These reports include: 1. Baseline Monitoring Reports. a) Within either one hundred eighty (180) days after the effective date of a categorical Pretreatment Standard, or the final administrative decision on a category determination under 40 CFR 403.6(a)(4), whichever is later, existing Significant Industrial Users subject to categorical Pretreatment Standard(s) currently discharging to or scheduled to discharge to OCSD shall submit to the General Manager a report which contains the information listed in paragraph b), below. At least ninety (90) days prior to commencement of their discharge, New Sources, and sources that become Significant Industrial Users subsequent to the promulgation of an applicable categorical Standard, shall submit to the General Manager a report which contains the information listed in paragraph c), below. A New Source shall report the method of Pretreatment it intends to use to meet applicable categorical Pretreatment Standards. A New Source also shall OCSD-48-60 give estimates of its anticipated flow and quantity of Pollutants to be discharged. b) Users described above shall submit the information set forth below. (1) All information required in Section ARTICLE 23 including requirements in 40 CFR 403.12(b)(1)-(7). (2) Measurement of Pollutants. a) The User shall provide the following information. 1) The categorical Pretreatment Standards applicable to each regulated process and any new categorically regulated processes for Existing Sources. 2) The results of sampling and analysis identifying the nature and concentration, and/or mass, where required by the Standard or by the General Manager, of regulated Pollutants in the discharge from each regulated process. 3) Instantaneous, Daily Maximum, and long-term average concentrations or mass, where required, shall be reported. 4) The sample shall be representative of daily operations and shall be analyzed in accordance with procedures set out in Section 501.2 of this Ordinance. Where the Standard requires compliance with a BMP or pollution prevention alternative, the User shall submit documentation as required by the General Manager or the applicable Standards to determine compliance with the Standard. 5) Sampling must be performed in accordance with procedures set out in Section 602 of this Ordinance. b) The User shall take a minimum of one representative sample to compile that data OCSD-48-61 necessary to comply with the requirements of this paragraph. c) Samples should be taken immediately downstream from Pretreatment facilities if such exist or immediately downstream from the regulated process if no Pretreatment exists. If other Wastewaters are mixed with the regulated Wastewater prior to Pretreatment the User should measure the flows and concentrations necessary to allow use of the Combined Wastestream Formula in 40 CFR 403.6(e) to evaluate compliance with the Pretreatment Standards. Where an alternate concentration or mass limit has been calculated in accordance with 40 CFR 403.6(e) this adjusted limit along with supporting data shall be submitted to OCSD; d) Sampling and analysis shall be performed in accordance with this Ordinance; e) The General Manager may allow the submission of a baseline report which utilizes only historical data so long as the data provides information sufficient to determine the need for industrial Pretreatment measures; f) The baseline report shall indicate the time, date and place of sampling and methods of analysis, and shall certify that such sampling and analysis is representative of normal work cycles and expected Pollutant discharges to OCSD. (3) Compliance Certification. A statement, reviewed by the User's Authorized Representative as defined in this Ordinance and certified by a qualified professional, indicating whether Pretreatment Standards are being met on a consistent basis, and, if not, whether additional operation and maintenance (O&M) and/or additional Pretreatment is required to meet the Pretreatment Standards and Requirements. (4) Compliance Schedule. If additional Pretreatment and/or O&M will be required to meet the Pretreatment Standards, the shortest schedule by which the User will OCSD-48-62 provide such additional Pretreatment and/or O&M must be provided. The completion date in this schedule shall not be later than the compliance date established forthe applicable Pretreatment Standard. A compliance schedule pursuant to this Section must meet the requirements set forth in this Ordinance. (5) Signature and Report Certification. All baseline monitoring reports must be certified in accordance with this Ordinance and signed by an Authorized Representative. 2. Compliance Schedule Progress Reports. The following conditions shall apply to the compliance schedule required by this Ordinance: a) The schedule shall contain progress increments in the form of dates for the commencement and completion of major events leading to the construction and operation of additional Pretreatment required for the User to meet the applicable Pretreatment Standards (such events include, but are not limited to, hiring an engineer, completing preliminary and final plans, executing contracts for major components, commencing and completing construction, and beginning and conducting routine operation); b) No increment referred to above shall exceed nine (9) months; c) The User shall submit a progress report to the General Manager no later than fourteen (14) days following each date in the schedule and the final date of compliance including, as a minimum, whether or not it complied with the increment of progress, the reason for any delay, and, if appropriate, the steps being taken by the User to return to the established schedule; and d) In no event shall more than nine (9) months elapse between such progress reports to the General Manager. 3. 90-Day Compliance Reports. Within ninety (90) days following the date for final compliance with applicable categorical Pretreatment Standards, or in the case of a OCSD-48-63 New Source following commencement of the introduction of Wastewater into OCSD, any User subject to such Pretreatment Standards and Pretreatment Requirements shall submit to the General Manager a report containing the information described in this Ordinance. For Users subject to equivalent mass or concentration limits, this report shall contain a reasonable measure of the User's long-term production rate. For all other Users subject to categorical Pretreatment Standards expressed in terms of allowable Pollutant discharge per unit of production (or other measure of operation), this report shall include the User's actual production during the appropriate sampling period. All compliance reports must be signed and certified in accordance with this Ordinance. All sampling will be done in conformance with Section 602. 4. Periodic Compliance Reports. a) Except as otherwise specified in this Ordinance, all Significant Industrial Users must, at a frequency determined by the General Manager, submit no less than twice per year on dates specified by OCSD reports indicating the nature, concentration of Pollutants in the discharge which are limited by Pretreatment Standards and the measured or estimated average and maximum daily flows for the reporting period. In cases where the Pretreatment Standard requires compliance with a Best Management Practice (BMP) or pollution prevention alternative, the User must submit documentation required by the General Manager or the Pretreatment Standard necessary to determine the compliance status of the User including documentation associated with Best Management Practices. b) OCSD will meet reporting requirements as specified by 40 CFR Part 3 (Cross-Media Electronic Reporting). Therefore, Users that send electronic (digital) documents to OCSD to satisfy the requirements of this Section must register for the system online and submit a signed Subscriber Agreement to OCSD for review and approval. 5. Notification of the Discharge of Hazardous Waste. a) Any User who commences the discharge of hazardous waste shall notify OCSD, the EPA Regional Waste Management Division Director, and state hazardous waste authorities, in writing, of any discharge into OCSD of a substance which, if otherwise disposed of, would be a hazardous waste under 40 OCSD-48-64 CFR Part 261. The User shall receive written approval from the OCSD to discharge hazardous waste. Such notification must include the name of the hazardous waste as set forth in 40 CFR Part 261, the EPA hazardous waste number, and the type of discharge (continuous, batch, or other). If the User discharges more than one hundred (100) kilograms of such waste per calendar month to OCSD, the notification also shall contain the following information to the extent such information is known and readily available to the User: an identification of the hazardous constituents contained in the wastes, an estimation of the mass and concentration of such constituents in the wastestream discharged during that calendar month, and an estimation of the mass of constituents in the wastestream expected to be discharged during the following twelve (12) months. All notifications must take place no later than one hundred and eighty (180) days after the discharge commences. Any notification under this paragraph need be submitted only once for each hazardous waste discharged. However, notifications of changed conditions must be submitted under subdivision 6 below. The notification requirement in this Section does not apply to Pollutants already reported by Users subject to categorical Pretreatment Standards under the self-monitoring requirements of this Ordinance. b) Dischargers are exempt from the requirements of paragraph (a), above, during a calendar month in which they discharge no more than fifteen (15) kilograms of hazardous wastes, unless the wastes are acute hazardous wastes as specified in 40 CFR 261.30(d) and 261.33(e). Discharge of more than fifteen (15) kilograms of non-acute hazardous wastes in a calendar month, or of any quantity of acute hazardous wastes as specified in 40 CFR 261.30(d) and 261.33(e), requires a one-time notification. Subsequent months during which the User discharges more than such quantities of any hazardous waste do not require additional notification. c) In the case of any new regulations under section 3001 of RCRA identifying additional characteristics of hazardous waste or listing any additional substance as a hazardous waste, the User must notify the General Manager, the EPA Regional Waste Management Waste Division Director, and state hazardous waste authorities of the discharge of such substance within ninety (90)days of the effective date of such regulations. OCSD-48-65 d) In the case of any notification made under this Section, the User shall certify that it has a program in place to reduce the volume and toxicity of hazardous wastes generated to the degree it has determined to be economically practical. e) This provision does not create a right to discharge any substance not otherwise permitted to be discharged by this Ordinance, a permit issued thereunder, or any applicable federal or state law. 6. Reports of Changed Conditions Each User must notify the General Manager of any significant changes to the User's operations or system which might alter the nature, quality, or volume of its Wastewater in advance of the change. The notification must be made promptly, but normally within 30 days. In certain cases, this period may be longer. a) The General Manager may require the User to submit such information as may be deemed necessary to evaluate the changed condition, including the submission of a Wastewater discharge permit application under this Ordinance. b) The General Manager may issue a Wastewater discharge permit under this Ordinance or modify an existing Wastewater discharge permit under this ordinance in response to changed conditions or anticipated changed conditions. 7. Reports of Potential Problems a) In the case of any discharge, including, but not limited to, accidental discharges, discharges of a nonroutine, episodic nature, a noncustomary batch discharge, a Slug Discharge or Slug Load, that might cause potential problems for OCSD, the User shall follow the notification procedures under Notification of Spill or Slug Loading in Article 5. This notification shall also include the location of the discharge, type of Wastewater, concentration and volume, if known, and corrective actions taken by the User. b) Within five (5) days following such discharge, the User shall, unless waived by the General Manager, submit a detailed written report. This written notification shall include, but not be limited to, the date of the incident, the reasons for the discharge or spill, what steps were taken to immediately correct the problem, and what steps are being taken to OCSD-48-66 prevent the problem from recurring. c) Such notification shall not relieve the User of any expense, loss, damage, or other liability which might be incurred as a result of damage or loss to OCSD, natural resources, or any other damage to person or property; nor shall such notification relieve the User of any fees, fines, penalties, or other liability which may be imposed pursuant to this Ordinance or other applicable law. d) A notice shall be permanently posted on the User's bulletin board or other prominent place advising employees who to call in the event of a discharge described in paragraph a, above. Employers shall ensure that all employees, who could cause such a discharge to occur, are advised of the emergency notification procedure. e) Significant Industrial Users are required to notify the General Manager immediately of any changes at its facility affecting the potential for a Slug Discharge. 8. Reports from Unpermitted Users All Users not required to obtain a Wastewater discharge permit shall provide appropriate reports to the General Manager as the General Manager may require. 9. Notice of Violation/Repeat Sampling and Reporting If sampling performed by a User indicates a violation, the User must notify the General Manager within twenty-four (24) hours of becoming aware of the violation. The User shall also repeat the sampling and analysis and submit the results of the repeat analysis to the General Manager within thirty (30) days after becoming aware of the violation. Resampling by the User is not required if OCSD performs sampling at the User's facility at least once a month, or if OCSD performs sampling at the User's facility between the time when the initial sampling was conducted and the time when the User or OCSD receives the results of this sampling, or if OCSD has performed the sampling and analysis in lieu of the User. 10. Other reports as required by OCSD. a) Monitoring reports of the analyses of Wastewater constituents and characteristics shall be in a manner and form approved by OCSD and shall be submitted upon request of OCSD. OCSD-48-67 When applicable, the self-monitoring requirement and frequency of reporting may be set forth in the User's permit as directed by OCSD. The analyses of Wastewater constituents and characteristics and the preparation of the monitoring report shall be done at the sole expense of the User. b) Failure by the User to perform any required monitoring, or to submit monitoring reports required by OCSD constitutes a violation of this Ordinance, may result in determining whether the Permittee is in significant non-compliance, and be cause for OCSD to initiate all necessary tasks and analyses to determine the Wastewater constituents and characteristics for compliance with any limits and requirements specified in the User's permit or in this Ordinance. The User shall be responsible for any and all expenses of OCSD in undertaking such monitoring analyses and preparation of reports. 501.1 Inspection and Sampling Conditions A. OCSD may inspect and sample the Wastewater generating and disposal facilities of any User to ascertain whether the intent of this Ordinance is being met and the User is complying with all requirements. B. OCSD shall have the right to place on the User's property or other locations as determined by OCSD, such devices as are necessary to conduct sampling or metering operations. Other sampling locations may include downstream manholes, usually in the Sewerage System, for the purpose of determining the compliance status of an industrial or commercial Discharger. C. OCSD may require the User to install and maintain sample points in areas acceptable to OCSD outside the User's facility, within the reasonable control of the User or OCSD. OCSD may also require lockable sample boxes fully containing the sample points. The User shall grant OCSD access to the sample points and sample boxes in accordance with this Ordinance. D. In order for OCSD to determine the Wastewater characteristics of the Discharger for purposes of determining the annual use charge and for compliance with permit requirements, the User shall make available for inspection and copying by OCSD all notices, self-monitoring reports, Waste-Tracking Forms, and records including, but not limited to, those related to production, Wastewater generation, Wastewater disposal, and those required in the Pretreatment Requirements without restriction but subject to the confidentiality provision set forth in Section 103 herein. All such records shall be kept by the User a minimum of three (3) years. OCSD-48-68 E. If a Discharger falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method, the Discharger may be subject to imposition of penalties, permit suspension or permit revocation. 501.2 Analytical Requirements All Pollutant analyses, including sampling techniques, to be submitted as part of a Wastewater discharge permit application or report shall be performed in accordance with the techniques prescribed in 40 CFR Part 136 and amendments thereto, unless otherwise specified in an applicable categorical Pretreatment Standard. If 40 CFR Part 136 does not contain sampling or analytical techniques for the Pollutant in question, or where the EPA determines that the Part 136 sampling and analytical techniques are inappropriate for the Pollutant in question, sampling and analyses shall be performed by using validated analytical methods or any other applicable sampling and analytical procedures, including EPA-approved procedures or procedures approved by the General Manager. 501.3 Right of Entry A. Persons or occupants of premises where Wastewater is created or discharged shall allow OCSD, or its representatives, reasonable access to all parts of the Wastewater generating and disposal facilities for the purposes of inspection and sampling during all times the Discharger's facility is open, operating, or any other reasonable time. No Person shall interfere with, delay, resist or refuse entrance to authorized OCSD personnel attempting to inspect any facility involved directly or indirectly with a discharge of Wastewater to OCSD's Sewerage System. B. Where a User has security measures in place, the User shall make necessary arrangements so that personnel from OCSD shall be permitted to enter without delay for the purpose of performing their specific responsibilities. 501.4 Notification of Spill or Slug Loading A. In the event the Discharger is unable to comply with any permit condition due to a breakdown of equipment, accidents, or human error, or the Discharger has reasonable opportunity to know that a discharge will exceed the discharge provisions of the User's permit, Sections 201(A) & (B) or Table 1, Local Discharge Limits, the Discharger shall immediately notify OCSD by telephone. If the Wastewater or material discharged to the sewer has the potential to cause or result in a fire or explosion hazard, the Discharger shall immediately notify the local fire department and OCSD. Also see Reports of Potential Problems in this Article. OCSD-48-69 501.5 Bypass Prohibition: Notification of Bypass A. Bypass of Industrial Wastewater to the Sewerage System is prohibited. OCSD may take enforcement action against the User, unless: 1. Bypass was unavoidable because it was done to prevent loss of life, personal injury, or severe property damage; 2. There were no feasible alternatives to the Bypass, such as the use of auxiliary treatment facilities, retention of untreated Wastes, elective slow-down or shut-down of production units or maintenance during periods of production downtime. This condition is not satisfied if adequate backup equipment could have been feasibly installed in the exercise of reasonable engineering judgment to prevent a Bypass which occurred during normal periods of equipment downtime or preventative maintenance; and 3. The Permittee submitted notices as required under Section 501.4(A). B. If a Permittee knows in advance of the need for a Bypass, it shall submit a written request to allow the Bypass to OCSD, if possible, at least ten (10) days before the date of the Bypass. C. OCSD may approve an anticipated Bypass at its sole discretion after considering its adverse effects, and OCSD determines that the conditions listed in Section 501.5(A)(1-3) are met. D. A Permittee shall provide telephone notification to OCSD of an unanticipated Bypass that exceeds its permitted discharge limits within four hours from the time the Permittee becomes aware of the Bypass. A written report shall also be provided within five (5) days of the time the Permittee becomes aware or could reasonably have been aware of the Bypass. The report shall contain a description of the Bypass and its cause; the duration of the Bypass, including exact dates and times, and, if the Bypass has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate, and prevent recurrence of the Bypass. Failure to comply with the oral notice or written report may be grounds for permit revocation. OCSD-48-70 ARTICLE 6. ENFORCEMENT 601. PURPOSE AND SCOPE A. The Board finds that in order for OCSD to comply with the laws, regulations, and rules imposed upon it by Regulatory Agencies and to ensure that OCSD's Sewerage Facilities and treatment processes are protected and are able to operate with the highest degree of efficiency, and to protect the public health and environment, specific enforcement provisions must be adopted to govern the discharges to OCSD's Sewerage System by Permittees or by facilities required to obtain Zero Discharge Certifications. Certain violations may result in civil or criminal penalties for violation of Pretreatment Standards and requirements, and any applicable compliance schedule. Such schedules may not extend the compliance date beyond applicable federal deadlines. B. To ensure that all interested parties are afforded due process of law and that non-compliance and violations are resolved as soon as possible, the general policy of OCSD is that: 1. Any determination relating to a Zero Discharge Certification, Probation Order, Enforcement Compliance Schedule Agreement (ECSA), or Regulatory Compliance Schedule Agreement (RCSA) will be made by the Division Head of the OCSD Pretreatment Program, with a right of appeal by the Permittee to the General Manager pursuant to the procedures set forth in Section 618. 2. Any permit suspension or revocation recommended by the Division Head responsible for the OCSD Pretreatment Program will be heard and a recommendation made to the General Manager by an OCSD Department Head or other person designated by the General Manager. 3. Actions and decisions by the Division Head or Department Head are made pursuant to a delegation of authority by the General Manager as authorized by Section 107 of this Ordinance. 4. The Board of Directors may adopt rules of procedure to establish the conduct of certain administrative proceedings. C. OCSD, at its discretion, may utilize any one,combination,or all enforcement remedies provided in this Article 6 in response to any permit or Ordinance violation. OCSD-48-71 602. DETERMINATION OF NONCOMPLIANCE WITH DISCHARGE LIMITS A. Sampling Procedures 1. Sampling of all Permittees' facilities, Wastewater and discharges shall be conducted in the time, place, manner, and frequency determined at the sole discretion of OCSD. 2. Non-compliance with Mass Emission Rate limits, concentration limits, permit discharge conditions, or any discharge provision of this Ordinance may be determined by an analysis of a grab or composite sample of the effluent of a User. Non-compliance with Mass Emission Rate limits shall be determined by an analysis of a composite sample of the User's effluent, except that a grab sample may be used to determine compliance with Mass Emission Rate limits when the discharge is from a closed (batch) treatment system in which there is no Wastewater flow into the system when the discharge is occurring, the volume of Wastewater contained in the batch system is known, the time interval of discharge is known, and the grab sample is homogeneous and representative of the discharge. 3. All Wastewater samples must be representative of the User's discharge. Any sample taken from a sample point is considered to be representative of the discharge to the public sewer. 4. Wastewater monitoring and flow measurement facilities shall be properly operated, kept clean, and maintained in good working order at all times. The failure of a User to keep its monitoring facility in good working order shall not be grounds for the User to claim that sample results are unrepresentative of its discharge. 5. If a User subject to the reporting requirement in this section monitors any regulated Pollutant at the appropriate sampling location more frequently than required by the General Manager, using the procedures prescribed in this Ordinance, the results of this monitoring shall be included in the report. 603. ENFORCEMENT PROCEDURES AND APPLICABLE FEES A. Self-Monitoring Requirements as a Result of Non-Compliance 1. If analysis of any sample obtained by OCSD or by a Permittee shows non-compliance with the applicable Wastewater discharge limits set forth in this Ordinance or in the Permittee's discharge permit, OCSD OCSD-48-72 may impose self-monitoring requirements on the Permittee. 2. A Permittee shall perform required self-monitoring of constituents in a frequency, at the specific location, and in a manner directed by OCSD. 3. All analyses of self-monitoring samples shall be performed by an independent laboratory acceptable to OCSD and submitted to OCSD in the form and frequency determined by OCSD. 4. All self-monitoring costs shall be borne by the Permittee. 5. Nothing in this section shall be deemed to limit the authority of OCSD to impose self-monitoring as a permit condition. B. Purpose of Non-Compliance Resampling Fees The purpose of the non-compliance resampling fee is to compensate OCSD for costs of additional sampling, monitoring, laboratory analysis, treatment, disposal, and administrative processing incurred as a result of the non- compliance, and shall be in addition to and not in lieu of any penalties as may be assessed pursuant to Sections 616 and 617. C. Non Compliance Resampling Fees for Composite Samples 1. Each violation of a Permittee's permit limit or condition is a violation of this Ordinance. a) If analysis of any composite sample of a Permittee's discharge obtained by OCSD shows a major violation by the Permittee of the Mass Emission Rates or concentration limits specified in the Permittee's discharge permit or in this Ordinance, then the Permittee shall pay non-compliance resampling fees to OCSD pursuant to fee schedules adopted by OCSD's Board of Directors. b) If analysis of any composite sample of a Permittee's discharge obtained by OCSD shows a minor violation by the Permittee of the Mass Emission Rates or concentration limits specified in the Permittee's discharge permit or in this Ordinance, then OCSD shall impose non-compliance resampling fees pursuant to fee schedules adopted by OCSD's Board of Directors. 2. The fees specified in subsection 603.C.1.a), C.1.b) and D herein shall be imposed for each date on which OCSD conducts sampling OCSD-48-73 as a result of a violation by a Permittee. D. Non-Compliance Resampling Fees for Grab Samples and Self-Monitoring Results 1. If analysis of any grab sample of a Permittee's discharge shows non- compliance with any concentration limits as set forth in the User's permit or in this Ordinance, OCSD may impose non-compliance resampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for resampling conducted by OCSD as a result of a violation by the Permittee. 2. If any self-monitoring analysis of a Permittee's discharge shows non- compliance with any concentration limits or Mass Emission Rates as set forth in the User's permit or in this Ordinance, OCSD may impose non-compliance resampling fees, pursuant to fee schedules adopted by the OCSD Board of Directors, for sampling conducted by OCSD as a result of a violation by the Permittee. 603.1 Probation Order A. Grounds In the event the Division Head determines that a Permittee has violated any provision of this Ordinance, or the terms, conditions and limits of its discharge permit, or has not made payment of all amounts owed to OCSD for User charges, non-compliance resampling fees or any other fees, the General Manager may issue a Probation Order, whereby the Permittee must comply with all directives, conditions and requirements therein within the time prescribed. B. Provisions The issuance of a Probation Order may contain terms and conditions including, but not limited to, installation of Pretreatment equipment and facilities, requirements for self-monitoring, submittal of drawings or technical reports, operator certification, audit of Waste minimization practices, payment of fees, limits on rate and time of discharge, or other provisions to ensure compliance with this Ordinance. C. Probation Order- Expiration A Probation Order issued by the General Manager shall be in effect for a period not to exceed ninety (90) days. OCSD-48-74 603.2 Enforcement Compliance Schedule Agreement (ECSA) A. Grounds Upon determination that a Permittee is in non-compliance with the terms, conditions or limits specified in its permit or any provision of this Ordinance, and needs to construct and/or acquire and install equipment related to Pretreatment, the General Manager may require the Permittee to enter into an ECSA which will, upon the effective date of the ECSA, amend the Permittee's permit. The ECSA shall contain terms and conditions by which a Permittee must operate during its term and shall provide specific dates for achieving compliance with each term and condition for construction and/or acquisition and installation of required equipment related to Pretreatment. B. Provisions The issuance of an ECSA may contain terms and conditions including but not limited to requirements for self-monitoring, installation of Pretreatment equipment and facilities, submittal of drawings or reports, operator certification, audit of Waste minimization practices, payment of fees, limits on rate and time of discharge, deposit of performance guarantee, interim limits, or other provisions to ensure compliance with this Ordinance. C. ECSA- Payment of Amounts Owed OCSD shall not enter into an ECSA until such time as all amounts owed to OCSD, including User fees, non-compliance resampling fees, deposits, or other amounts due are paid in full, or an agreement for deferred payment secured by collateral or a third party, is approved by the General Manager. Failure to pay all amounts owed to OCSD shall be grounds for permit suspension or permit revocation as set forth in Section 605 and 606. D. ECSA- Permit Suspension/Revocation If compliance is not achieved in accordance with the terms and conditions of an ECSA during its term, the General Manager may issue an order suspending or revoking the discharge permit pursuant to Section 605 or 606 of this Ordinance. 604. REGULATORY COMPLIANCE SCHEDULE AGREEMENT (RCSA) A. Grounds If at any time subsequent to the issuance of a Wastewater Discharge Permit to an Industrial User, Federal Categorical Pretreatment Standards are adopted or revised by the United States Environmental Protection Agency, OCSD-48-75 or in the event OCSD enacts revised or new discharge limits, the General Manager, upon determination that an Industrial User would not be in compliance with the adopted revised or new limits, may require the industrial User to enter into a RCSA with OCSD under terms and conditions that would provide for achieving compliance with all new standards by the industrial User on a specific date. The RCSA shall have a maximum term of two hundred-seventy (270) days. The General Manager may approve a longer term, upon a showing of good cause. B. Provisions The issuance of a RCSA may contain terms and conditions including but not limited to requirements for installation of Pretreatment equipment and facilities, submittal of drawings or reports, waste minimization practices or other provisions to ensure compliance with this Ordinance. C. RCSA- Non-Compliance Resampling Fee During the period a RCSA is in effect, any discharge by Permittee in violation of the RCSA will require payment of non-compliance resampling fees in accordance with this Article 6. 605. PERMIT SUSPENSION A. Grounds The General Manager may suspend any permit when it is determined that a Permittee: 1. Fails to comply with the terms and conditions of either an ECSA or RCSA. 2. Knowingly provides a false statement, representation, record, report, or other document to OCSD. 3. Refuses to provide records, reports, plans, or other documents required by OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 4. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 5. Fails to report significant changes in operations or Wastewater constituents and characteristics. 6. Violates a Probation Order. OCSD-48-76 7. Refuses reasonable access to the Permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to OCSD for User charges, non-compliance sampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Violates any condition or limit of its discharge permit or any provision of OCSD's Ordinances or regulations. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for permit suspension, he shall give written notice thereof via personal delivery, mail with proof of delivery, or a similar method to the permittee setting forth a statement of the facts and grounds deemed to exist, together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15)calendar days nor more than forty-five (45) calendar days after the mailing of such notice. 1. At the suspension hearing, the Permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager within thirty(30) calendar days after the conclusion of the hearing setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. Upon receipt of the written report, the General Manager shall make his determination and should he/she find that grounds exist for suspension of the permit, he/she shall issue his/her decision and order in writing within twenty (20) calendar days. The written decision and order of the General Manager shall be sent via personal delivery, mail with proof of delivery, or a similar method to the Permittee or its legal counsel/representative at the Permittee's business address. C. Effect 1. Upon issuance, an order of permit suspension issued by the General Manager shall be final in all respects. OCSD-48-77 2. The permittee shall immediately cease and desist its discharge of any Wastewater, directly or indirectly to OCSD's Sewerage System for the duration of the suspension. All costs for physically terminating and reinstating service shall be paid by the Permittee. 3. Any owner and responsible management employee of the Permittee shall be bound by the order of suspension. 606. PERMIT REVOCATION A. Grounds The General Manager may revoke any permit when it is determined that a Permittee: 1. Knowingly provides a false statement, representation, record, report, or other document to OCSD. 2. Refuses to provide records, reports, plans, or other documents required by OCSD to determine permit terms, conditions, or limits, discharge compliance, or compliance with this Ordinance. 3. Falsifies, tampers with, or knowingly renders inaccurate any monitoring device or sample collection method. 4. Fails to report significant changes in operations or Wastewater constituents and characteristics. 5. Fails to comply with the terms and conditions of an ECSA, permit suspension, or probation order. 6. Discharges effluent to OCSD's Sewerage System while its permit is suspended. 7. Refuses reasonable access to the Permittee's premises for the purpose of inspection and monitoring. 8. Does not make timely payment of all amounts owed to OCSD for User charges, non-compliance resampling fees, permit fees, or any other fees imposed pursuant to this Ordinance. 9. Causes interference with OCSD's collection, treatment, or disposal system. 10. Fails to submit oral notice or written report of a Bypass occurrence. OCSD-48-78 11. Violates any condition or limit of its discharge permit or any provision of OCSD's Ordinances or regulations. B. Notice/Hearing When the General Manager has reason to believe that grounds exist for the revocation of a permit, he/she shall give written notice via personal delivery, mail with proof of delivery, or a similar method thereof to the Permittee setting forth a statement of the facts and grounds deemed to exist together with the time and place where the charges shall be heard by the General Manager's designee. The hearing date shall be not less than fifteen (15) calendar days nor more than forty five (45) calendar days after the mailing of such notice. 1. At the hearing, the Permittee shall have an opportunity to respond to the allegations set forth in the notice by presenting written or oral evidence. The revocation hearing shall be conducted in accordance with the procedures established by the General Manager and approved by OCSD's General Counsel. 2. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager within thirty(30) calendar days setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 3. Upon receipt of the written report, the General Manager shall make his/her determination and should he/she find that grounds exist for permanent revocation of the permit, he/she shall issue his/her decision and order in writing within twenty (20) calendar days. The written decision and order of the General Manager shall be sent via personal delivery, mail with proof of delivery, or a similar method to the Permittee or its legal counsel/representative at the Permittee's business address. 4. In the event the General Manager determines to not revoke the permit, he/she may order other enforcement actions, including, but not limited to, a temporary suspension of the permit, under terms and conditions that he/she deems appropriate. C. Effect 1. Upon issuance, an order of permit revocation issued by the General Manager shall be final in all respects. 2. The Permittee shall immediately cease and desist its discharge of OCSD-48-79 any Wastewater directly or indirectly to OCSD's Sewerage System. All costs for physical termination shall be paid by the Permittee. 3. Any owner or Authorized Representative of the Permittee shall be bound by the order of revocation. 4. Any future application for a permit at any location within OCSD by any Person subject to an order of revocation will be considered by OCSD after fully reviewing the records of the revoked permit, which records may be the basis for denial of a new permit. 607. WASTEHAULER NON-COMPLIANCE WITH PERMIT CONDITIONS A Wastehauler's non-compliance with permit requirements shall be determined by an analysis of a sample of the discharge for any constituent or conditions specified in the Wastehauler's discharge permit or this Ordinance. If the discharge of a Wastehauler is found by the analysis to be in excess of the concentration limits specified in the Wastehauler's discharge permit or in this Ordinance, the Wastehauler shall, after receiving a demand from OCSD, identify in writing, all sources of the discharge. OCSD reserves the right to sample and inspect any Wastehauler that delivers Wastewater to any facility which is tributary to OCSD's Sewerage Facilities. Even if it is established to the satisfaction of the General Manager that the origin of the discharge is domestic septage, or septic Waste, OCSD may still elect not to accept Wastewater from that particular source. If the discharge is Industrial Wastewater from an industrial source(s) and exceeds permit concentration limits or limits specified in this Ordinance, the following shall apply: A. First Violation 1. The Permittee shall pay a non-compliance resampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for five (5) days. B. Second Violation 1. The Permittee shall pay a non-compliance resampling fee. 2. The Wastehauler permit for disposal privileges shall be suspended for ten (10) days. 3. The Wastehauler permit may be revoked in accordance with Section OCSD-48-80 606. 608. DAMAGE TO FACILITIES OR INTERRUPTION OF NORMAL OPERATIONS A. Any User who discharges any Wastewater which causes or contributes to any obstruction, interference, damage, or any other impairment to OCSD's Sewerage Facilities or to the operation of those facilities shall be liable for all costs required to clean or repair the facilities together with expenses incurred by OCSD to resume normal operations. Such discharge shall be grounds for permit revocation. A service charge of twenty five percent (25%)of OCSD costs shall be added to the costs and charges to reimburse OCSD for miscellaneous overhead, including administrative personnel and record keeping. The total amount shall be payable within forty five(45)days of invoicing by OCSD. B. Any User who discharges a Wastewater which causes or contributes to OCSD violating its discharge requirements established by any Regulatory Agency incurring additional expenses or suffering losses or damage to the facilities, shall be liable for any costs or expenses incurred by OCSD, including regulatory fines, penalties, and assessments made by other agencies or a court. 609. INDUSTRIAL WASTEWATER PASS THROUGH Any User whose discharge results in a Pass Through event affecting OCSD or its Sewerage Facilities shall be liable for all costs associated with the event, including treatment costs, regulatory fines, penalties, assessments, and other indirect costs. The Discharger shall submit to OCSD plans to prevent future recurrences to the satisfaction of OCSD. 610. PUBLICATION OF VIOLATION Upon a determination in a permit suspension, permit revocation, or civil penalty proceedings that a User has discharged in violation of its permit or any provision under this Ordinance, OCSD may require that the User notify the public and/or other Users of the OCSD's Sewerage Facilities of such violation, of actions taken to correct such violation, and of any administrative or judicial orders or penalties imposed as a result of such violation. 611. PUBLISHED NOTICES FOR SIGNIFICANT NON-COMPLIANCE In accordance with Federal Regulations, OCSD shall annually cause to be published the names of all Industrial Users in significant non-compliance. Upon a minimum of a thirty (30) day notification to the User, said publication shall be made in a newspaper(s) of general circulation that provides meaningful public notice within the jurisdiction(s) served by OCSD. OCSD-48-81 612. PUBLIC NUISANCE Discharge of Wastewater in any manner in violation of this Ordinance or of any order issued by the General Manager, as authorized by this Ordinance, is hereby declared a public nuisance and shall be corrected or abated as directed by the General Manager. Any Person creating a public nuisance is guilty of a misdemeanor. 613. TERMINATION OF SERVICE A. OCSD, by order of the General Manager, may physically terminate sewerage service to any property as follows: 1. On a term of any order of emergency suspension or revocation of a permit; or 2. Upon the failure of a Person not holding a valid discharge permit to immediately cease discharge, whether direct or indirect, to OCSD's Sewerage Facilities; or 3. Upon the failure of a facility not holding a valid discharge permit or certification. B. All costs for physical termination shall be paid by the User as well as all costs for reinstating service. 614. EMERGENCY SUSPENSION ORDER A. OCSD may, by order of the General Manager, suspend sewerage service or Wastehauler discharge service when the General Manager determines that such suspension is necessary in order to stop an actual or impending discharge which presents or may present an imminent or substantial endangerment to the health and welfare of persons, or to the environment, or may cause interference to the OCSD's Sewerage Facilities, or may cause OCSD to violate any state or federal law or regulation. Any Discharger notified of and subject to an Emergency Suspension Order shall immediately cease and desist the discharge of all Industrial Wastewater to the Sewerage System. B. As soon as reasonably practicable following the issuance of an Emergency Suspension Order, but in no event more than five (5) days following the issuance of such order,the General Manager shall hold a hearing to provide the User the opportunity to present information in opposition to the issuance of the Emergency Suspension Order. Such a hearing shall not stay the effect of the Emergency Suspension Order. The hearing shall be conducted in accordance with procedures established by the General Manager and OCSD-48-82 approved by the OCSD General Counsel. The General Manager shall issue a written decision and order within two (2) business days following the hearing, which decision shall be sent via personal delivery, mail with proof of delivery, or a similar method to the User or its legal counsel/representative at that User's business address. The decision of the General Manager following the hearing shall be final in all respects. 615. INJUNCTION Whenever a Discharger of Wastewater is in violation of or has the reasonable potential to violate any provision of this Ordinance, permit condition, or any Federal Categorical Pretreatment Standards or Pretreatment Requirements as set forth in 40 CFR Section 403.8, at seq., fails to submit required reports, or refuses to allow OCSD entry to inspect or monitor the User's discharge, OCSD may petition the Superior Court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate to restrain the continued violation or to prevent threatened violations by the Discharger. 616. CIVIL PENALTIES A. Authority All Users of OCSD's Sewerage System and facilities are subject to enforcement actions administratively orjudicially by OCSD, U.S. EPA, State of California Regional Water Quality Control Board, or the County of Orange District Attorney. Said actions may be taken pursuant to the authority and provisions of several laws, including but not limited to: (1) Federal Water Pollution Control Act, commonly known as the Clean Water Act (33 U.S.C.A. Section 1251, et seq.); (2)California Porter-Cologne Water Quality Control Act (California Water Code Section 13000, et seq.); (3) California Hazardous Waste Control Law (California Health & Safety Code Sections 25100 to 25250); (4) Resource Conservation and Recovery Act of 1976 (42 U.S.C.A Section 6901, et seq.); and (5) California Government Code, Sections 54739-54740. B. Recovery of Fines or Penalties In the event OCSD is subject to the payment of fines or penalties pursuant to the legal authority and actions of other Regulatory Agencies or enforcement agencies based on a violation of law or regulation or its permits, and said violation can be established by OCSD, as caused by the discharge of any User of OCSD's Sewerage System which is in violation of any provision of this Ordinance or the User's permit, OCSD shall be entitled to recover from the User all costs and expenses, including, but not limited to, the full amount of said fines or penalties to which OCSD has been subjected. OCSD-48-83 C. Ordinance Pursuant to the authority of California Government Code Sections 54739 54740, any Person who violates any provision of this Ordinance; any permit condition, prohibition or effluent limit; or any suspension or revocation order shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. Pursuant to the authority of the Clean Water Act, 33 U.S.C. Section 1251, et seq., any Person who violates any provision of this Ordinance, or any permit condition, prohibition, or effluent limit shall be liable civilly for a sum not to exceed $25,000.00 per violation for each day in which such violation occurs. The General Counsel of OCSD, upon order of the General Manager, shall petition the Superior Court to impose, assess, and recover such penalties, or such other penalties as OCSD may impose, assess, and recover pursuant to federal and/or state legislative authorization. D. Administrative Civil Penalties 1. Pursuant to the authority of California Government Code Sections 54740.5 and 54740.6, OCSD may issue an administrative complaint to any Person who violates: a) any provision of this Ordinance; b) any permit condition, prohibition, or effluent limit, or certification requirement; or c) any suspension or revocation order. 2. The administrative complaint shall be served via personal delivery, mail with proof of delivery, or a similar method on the Person and shall inform the Person that a hearing will be conducted, and shall specify a hearing date within sixty (60) days. The administrative complaint will allege the act or failure to act that constitutes the violation of OCSD requirements, the provisions of law authorizing civil liability to be imposed, and the proposed civil penalty. The matter shall be heard by the General Manager's designee. The Person to whom an administrative complaint has been issued may waive the right to a hearing, in which case a hearing will not be conducted. 3. At the hearing, the Person shall have an opportunity to respond to the allegations set forth in the administrative complaint by presenting written or oral evidence. The hearing shall be conducted in accordance with the procedures established by the General Manager and approved by OCSD's General Counsel. OCSD-48-84 4. After the conclusion of the hearing, the General Manager's designee shall submit a written report to the General Manager within thirty(30) calendar days setting forth a brief statement of the facts found to be true, a determination of the issues presented, conclusions, and a recommendation. 5. Upon receipt of the written report, the General Manager shall make his/her determination and should he/she find that grounds exist for assessment of a civil penalty against the Person, he/she shall issue his/her decision and order in writing within twenty(20)calendar days. 6. If, after the hearing or appeal, if any, it is found that the Person has violated reporting or discharge requirements, the General Manager may assess a civil penalty against that Person. In determining the amount of the civil penalty, the General Manager may take into consideration all relevant circumstances, including but not limited to the extent of harm caused by the violation, the economic benefit derived through any non-compliance, the nature and persistence of the violation, the length of time over which the violation occurs, and corrective action, if any, attempted or taken by the Person involved. 7. Civil penalties may be assessed as follows: a) In an amount which shall not exceed two thousand dollars ($2,000.00) for each day for failing or refusing to furnish technical, monitoring reports, or any other required documents; b) In an amount which shall not exceed three thousand dollars ($3,000.00)for each day for failing or refusing to timely comply with any compliance schedules established by OCSD; c) In an amount which shall not exceed five thousand dollars ($5,000.00) per violation for each day of discharge in violation of any Wastewater discharge limit, permit condition, or requirement issued, reissued, or adopted by OCSD; d) In any amount which does not exceed ten dollars ($10.00) per gallon for discharges in violation of any suspension, revocation, cease and desist order or other orders, or prohibition issued, reissued, or adopted by OCSD; 8. Any Person aggrieved by an order issued by the General Manager assessing administrative civil penalties may, within fifteen (15) days after the General Manager issues the order, file an appeal with the OCSD-48-85 Governing Board. The evidence on appeal shall consist solely of the General Manager's order and the administrative record before the hearing officer. The Governing Board shall determine whether to uphold, modify, or reverse the General Manager's order. The decision of the Governing Board shall be set forth in writing and be sent by certified mail to the appellant. The decision of the Governing Board shall be final in all respects. If no appeal of the General Manager's decision is filed within fifteen (15)days of its issuance. the General Manager's order becomes final in all respects.dpea order assessing adm'nistrat v G✓1 penalties ssued by the Genpral Manager shall be final On all respects. 9. Copies of the administrative order shall be served on the party served with the administrative complaint, either by personal service or by registered mail to the Person at his business or residence address, and upon other persons who appeared at the hearing and requested a copy of the order. 10. Any Person aggrieved by a final order decision issued by the General MaaagerGoverning Board, may obtain review of the '^ r,c'^• Af `~^� `tee ^^i;AFAI Manager in the superior court, pursuant to Government Code Section 54740.6, by filing in the court a petition for writ of mandate within thirty (30) days following the service of a copy of the Governing Board decision ^• eFdeF issued by the GeReFa' MaRage•. 11. Payment of any order setting administrative civil penalties shall be made within thirty(30)days of the date the order becomes final. The amount of any administrative civil penalties imposed which have remained delinquent for a period of sixty (60) days shall constitute a lien against the real property of the Discharger from which the discharge resulting in the imposition of the civil penalty originated. The lien shall have no effect until recorded with the county recorder. OCSD may record the lien for any unpaid administrative civil penalties on the ninety-first (91st) day following the date the order becomes final. 12. No administrative civil penalties shall be recoverable under Section 616.D for any violation for which OCSD has recovered civil penalties through a judicial proceeding filed pursuant to Government Code Section 54740. 617. CRIMINAL PENALTIES Any Person who violates any provision of this Ordinance is guilty of a misdemeanor, which upon conviction is punishable by a fine not to exceed $1,000.00, or imprisonment for not more than thirty (30) days, or both. Each violation and each day in which a violation OCSD-48-86 occurs may constitute a new and separate violation of this Ordinance and shall be subject to the penalties contained herein. 618. APPEALS TO GENERAL MANAGER A. General Any User, permit applicant, or Permittee affected by any decision, action or determination made by the Division Head may file with the General Manager a written request for an appeal hearing. The request must be received by OCSD within fifteen (15) days of mailing of notice of the decision, action, or determination of OCSD to the appellant. The request for hearing shall set forth in detail all facts supporting the appellant's request. Filing of an appeal shall stay the proceedings and furtherance of the action being appealed B. Notice The General Manager shall, within fifteen (15) days of receiving the request for appeal, and pursuant to Section 107, designate a Department Head or other person to hear the appeal and provide written notice to the appellant of the hearing date, time and place via personal delivery, mail with proof of delivery, or a similar method. The hearing date shall not be more than thirty (30) days from the delivery date of such notice to the appellant unless a later date is agreed to by the appellant. If the hearing is not held within said time due to actions or inactions of the appellant, then the staff decision shall be deemed final. C. Hearing At the hearing, the appellant shall have the opportunity to present information supporting its position concerning the Division Head's decision, action or determination. The hearing shall be conducted in accordance with procedures established by the General Manager and approved by OCSD's General Counsel. D. Written Determination After the conclusion of the hearing, the Department Head (or other designee)shall submit a written report to the General Manager setting forth a brief statement of facts found to be true, a determination of the issues presented, conclusions, and a recommendation whether to uphold, modify or reverse the Division Head's original decision, action or determination. Upon receipt of the written report, the General Manager shall make his/her determination and shall issue his/her decision and order within thirty (30) calendar days of the hearing by his/her designee. Upon issuance, the order OCSD-48-87 of the General Manager shall be final in all respects. The written decision and order of the General Manager shall be sent via personal delivery, mail with proof of delivery, or a similar method to the appellant or its legal counsel/representative at the appellant's business address. 619. PAYMENT OF CHARGES A. Except as otherwise provided, all fees, charges and penalties established by this Ordinance are due and payable upon receipt of notice thereof. All such amounts are delinquent if unpaid forty five (45) days after date of invoice. B. Any charge that becomes delinquent shall have added to it a penalty in accordance with the following: 1. Forty six(46)days after date of invoice, a basic penalty of ten percent (10%) of the base invoice amount, not to exceed a maximum of $1,000.00; and 2. A penalty of one and one-half percent (1.5%) per month of the base invoice amount and basic penalty shall accrue from and after the forty-sixth (46th) day after date of invoice. C. Any invoice outstanding and unpaid after ninety (90) days shall be cause for immediate suspension of the permit. D. Penalties charged under this Section shall not accrue to those invoices successfully appealed. E. Payment of disputed charges is still required by the due date during OCSD review of any appeal submitted by Permittees. 620. COLLECTION OF DELINQUENT ACCOUNTS Collection of delinquent accounts shall be in accordance with OCSD's policy resolution establishing procedures for collection of delinquent obligations owed to OCSD, as amended from time to time by the Board of Directors. Any such action for collection may include an application for an injunction to prevent repeated and recurring violations of this Ordinance. 621. APPEAL OF CHARGES AND FEES Except for non-compliance charges and penalties, any User, permit applicant, or Permittee affected by any decision, action, or determination by OCSD, relating to fiscal issues of OCSD in which the User, applicant, or Permittee is located, including but not limited to the imposition and collection of fees, such as capital facility capacity charges, OCSD-48-88 sewer use charges, special purpose discharge use charges and Wastehauler fees, may request that OCSD reconsider imposition of such fees or charges. Following review of such a request, OCSD shall notify the User, permit applicant, or Permittee via personal delivery mail with proof of delivery, or a similar method of OCSD's decision on the reconsideration request. Any User, permit applicant, or Permittee adversely affected by OCSD's decision on the reconsideration request may file an appeal which shall be heard by the Board of Directors. The notice of appeal must be received by OCSD within thirty (30) days of the mailing of OCSD's decision on the reconsideration request. 622. RECOVERY OF COSTS INCURRED BY OCSD In the event any User, permit applicant, or permittee fails to comply with any of the terms and conditions of this Ordinance, a probationary order, an order of permit suspension or revocation, an ECSA, a RCSA, a certification, or a permit issued hereunder, OCSD shall be entitled to reasonable attorney's fees and costs which may be incurred in order to enforce any of said terms and conditions, with or without filing proceedings in court. 623. FINANCIAL SECURITY/AMENDMENTS TO PERMIT A. Compliance Deposit Permittees that have been subject to enforcement and/or collection proceedings may be required to deposit with OCSD an amount determined by the General Manager as necessary to guarantee payment to OCSD of all charges, fees, penalties, costs and expenses that may be incurred in the future, before permission is granted for further discharge to the sewer. B. Delinquent Accounts OCSD may require an amendment to the permit of any Permittee who fails to make payment in full of all fees and charges assessed by OCSD, including reconciliation amounts, delinquency penalties, and other costs or fees incurred by Permittee. C. Bankruptcy Every Permittee filing any legal action in any court of competent jurisdiction, including the United States Bankruptcy Court, for purposes of discharging its financial debts or obligations or seeking court ordered, protection from its creditors, shall, within ten (10) days of filing such action, apply for and obtain the issuance of an amendment to its permit. D. Permit Amendments OCSD shall review and examine Permittee's account to determine whether previously incurred fees and charges have been paid in accordance with OCSD-48-89 time requirements prescribed by this Ordinance. OCSD may thereafter issue an amendment to the User's permit in accordance with the provisions of Article 3 and subsection E below. E. Security An amendment to a Wastewater discharge permit issued pursuant to subdivisions (B), (C)and (D)above, may be conditioned upon the Permittee depositing financial security in an amount equal to the average total fees and charges for two (2) calendar quarters during the preceding year. Said deposit shall be used to guarantee payment of all fees and charges incurred for future services and facilities furnished by OCSD and shall not be used by OCSD to recover outstanding fees and charges incurred prior to the Permittee filing and receiving protection from creditors in the United States Bankruptcy Court. F. Return of Security In the event the Permittee makes payment in full within the time prescribed by this Ordinance of all fees and charges incurred over a period of two (2) years following the issuance of an amendment to the permit pursuant to subdivisions (B), (C) and (D), OCSD shall either return the security deposit posted by the Permittee or credit their account. 624. JUDICIAL REVIEW A. Purpose and Effect Pursuant to Section 1094.6 of the California Code of Civil Procedure, OCSD hereby enacts this part to limit to ninety (90) days following final decisions in adjudicatory administrative hearings the time within which an action can be brought to review such decisions by means of administrative mandamus. B. Definitions As used in this Section, the following terms and words shall have the following meanings: 1. Decision shall mean and include adjudicatory administrative decisions that are made after hearing, or after revoking, suspending, or denying an application for a permit. 2. Complete Record shall mean and include the transcript, if any exists, of the proceedings, all pleadings, all notices and orders, any proposed decision by the General Manager, the final decision, all admitted exhibits, all rejected exhibits in the possession of OCSD or OCSD-48-90 its offices or agents, all written evidence, and any other papers in the case. 3. Party shall mean a Person whose permit has been denied, suspended, or revoked. C. Time Limit for Judicial Review Judicial review of any decision of OCSD or its officer or agent may be made pursuant to Section 1094.5 of the Code of Civil Procedure only if the petition for writ of mandate is filed not later than the ninetieth (90th) day following the date on which the decision becomes final. If there is no provision for reconsideration in the procedures governing the proceedings or if the date is not otherwise specified, the decision is final on the date it is made. If there is provision for reconsideration, the decision is final upon the expiration of the period during which such reconsideration can be sought; provided that if reconsideration is sought pursuant to such provision the decision is final for the purposes of this Section on the date that reconsideration is rejected. D. Preparation of the Record The complete record of the proceedings shall be prepared by the OCSD officer or agent who made the decision and shall be delivered to the petitioner within ninety (90) days after he/she has filed written request therefor. OCSD may recover from the petitioner its actual costs for transcribing or otherwise preparing the record. E. Extension If the petitioner files a request for the record within ten (10) days after the date the decision becomes final, the time within which a petition, pursuant to Section 1094.5 of the Code of Civil Procedure, may be filed shall be extended to not later than the thirtieth (30th)day following the date on which the record is either personally delivered or mailed to the petitioner or the petitioner's attorney of record. F. Notice In making a final decision, OCSD shall provide notice to the party that the time within which judicial review must be sought is governed by Section 1094.6 of the Code of Civil Procedure. G. Administrative Civil Penalties Notwithstanding the provisions in this Section, and pursuant to Government OCSD-48-91 Code Section 54740.6, judicial review of an order of the General Manager imposing administrative civil penalties pursuant to Section 616.D may be made only if the petition for writ of mandate is filed not later than the thirtieth (30th) day following the day on which the order of the General Manager becomes final. OCSD-48-92 ARTICLE 7. SEWER SERVICE CHARGES — CAPITAL FACILITY CAPACITY CHARGES 701. SANITARY SEWER SERVICE CHARGE Every parcel of real property located within OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD's Sewerage System, shall pay a sanitary sewer service charge in an amount adopted by the Board of Directors by separate Ordinance. 702. CAPITAL FACILITIES CAPACITY CHARGE Every parcel of real property located within OCSD which is improved with structures designed for residential, commercial, or industrial use, and connected to the OCSD's Sewerage System, shall pay a capital facilities capacity charge in an amount adopted by the Board of Directors by separate Ordinance. OCSD-48-93 ARTICLE 8. SEVERABILITY 801. SEVERABILITY If any provision of these Regulations or the application to any circumstances is held invalid, the remainder of the regulations or the application of such provision to other persons or other circumstances shall not be affected. 802. GENERAL APPLICATION The provisions of this Ordinance shall apply to all properties within OCSD including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the state Constitution or statute, including properties owned by other public agencies or tax-exempt organizations. Section II: This Ordinance is enacted in order to preserve the public health and safety, and in order to continue the provision of sewer services by OCSD. The facts requiring the public health and safety to be preserved are that the regulation of the discharge of industrial and sanitary Sewage is regulated by federal and state law, and protection of individuals' health and the environment require that no discharges of untreated Sewage/Wastewater are allowed to occur that are not in accord with technical specifications and requirements. Section III: Effective Date. This Ordinance shall take effect QGtGboe ,' '^^^July 1, 2016. Section IV: Repeal. Ordinance No. OCSD-39 is hereby repealed. Section V: The Clerk of the Board shall certify to the adoption of this Ordinance and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by the Board of Directors of the Orange County Sanitation District at a Regular Meeting held the 24th day of February, 2016. John Nielsen Chair, Board of Directors Orange County Sanitation District OCSD-48-94 ATTEST: Kelly A. Lore Clerk of the Board Orange County Sanitation District Bradley R. Hogin, General Counsel OCSD-48-95 STATE OF CALIFORNIA ) )SS. COUNTY OF ORANGE ) I, Kelly A. Lore, Clerk of the Board of Directors of Orange County Sanitation District, do hereby certify that the above and foregoing Ordinance No. OCSD-48 was introduced for first reading at a regular meeting of said Board on the 27th day of February 2016, and passed and adopted at a regular meeting of said Board on the 24th day of February, 2016, 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 24thth day of February, 2016. Kelly A. Lore Clerk of the Board Orange County Sanitation District OCSD-48-96 Pre -draft Proposed Revision of Wastewater Discharge Regulations , Ordinance No . OCSD -XX G�JNSV SANITgT O2 = P Q � n Orange Sanitation DistriO O ti A N 90��cr/N� THE James Colston Manager Environmental Compliance Division Why Change the Ordinance ? • OCSD is required to have a Pretreatment Program that is approved by the United State Environmental Protection Agency (EPA) and the Regional Water Quality Control Board (RWQCB) • As part of the ocean discharge permit, OCSD must review its Local Limits every five years • Protection of wastewater for recycling and support for the Groundwater Replenishment System (GWRS) What are the Major Changes ? • New and revised local limits (Sampling for additional constituents will be required for some industries) • Longer permit terms • Changes to the appeals process, enforcement response schedules, permit transfers • Prohibition on corrosion and fouling of OCSD lines & Ban on the liquefaction of human and pet remains • No fee changes AmendedNew/ New/ e : • • Mass Allocates 15,000 Ib/d TP2 Design Criteria Mass Allocation WQBEL Ocean Outfall • - 20.0 2.0 r 35.0 2.0 RP1 2° Inhibition 15.0 5.0 WQBEL Ocean Outfall 2.0 2.0 RP1 Biosolids - • 1 .0 1.0 1.0 1.0 RP1 Biosolids • • • 3.0 3.0 25.0 25.0 RP1 Biosolids • 2.0 2.0 10.0 10.0 RP1 Biosolids 0.03 0.03 RP1 Biosolids 10.0 10.0 10.0 10.0 RP1 Biosolids 10.0 10.0 50.0 50.0 RP1 Biosolids • • • RP1 Biosolids - RP1 Biosolids • GWRS Influent TotalOrganics 0.58 Toxicity GWRS Product • ' 1.0 RP1 2° Inhibition Cyanide5.0 5.0 RP1 2° Inhibition PetroleumO&G 100.0 100.0 Sewer Interference Total Sulfides 5.0 5.0 Sewer Interference FIRTWIRTIM 0.5 0.5 Sewer Interference • 6.0 - 12.0 6.0 - 12.0 6.0 - 12.0 6.0 - 12.0 Sewer Interference 0.01 0.01 Toxicity • 0.01 0.01 Toxicity WHAT IS THE CHANGE? WHY DID OCSD MAKE THIS CHANGE? Permit Terms: The maximum issue • 9 • • - - • periods for permits have been - . . changed: Class I permits may be issued for up to four years; Class II permits, Dry Weather Urban Runoff Discharge Permits, and Special Purpose Discharge Permits may be issued for up to five years; and Wastehauler Discharge Permits may be issued for up to three years. OCSD Ordinance Modifications WHAT IS THE CHANGE? WHY CICSD MAKE THIS CHANGE? • • • Permits issued under the Ordinance _. _ _ • _ _ _ _ • are for a specific User, for a specific to prohibit permit transfers operation at a specific location or for triggered by . - or _, - of a specific wastehauler, and create no ownership. Notification of sale or vested rights. The language change of ownership has also modifications clarify that the existing been clarified. permit will be terminated by OCSD 4 upon notification of sale or change of ownership. A new permit will be issued to the new owner upon proper submittal of an application. OCSD Ordinance Modifications WHAT IS THE CHANGE? WHY CICSD MAKE THIS CHANGE? Corrosion, Occlusion, o Discharges of this nature impact Damage: • - the life of the POTW's assets and corrosion, the operation and maintenance damage are prohibited. cost. Damage from subsequent spills can also harm the environment and public safety. WHAT IS THE CHANGE? WHY DID OCSD MAKE THIS CHANGE? Ban the discharge of liquefied • 6 . • • human and pet remains: • Manufacturers are selling . . . . - . . equipment that uses heat and - � ' , • • caustic soda to liquefy human and - • - • pet remains prior to discharge to - • • - • • the sewer. Acknowledgement/Questions ORANGE COUNTY SANITATION DISTRICT Agenda Terminology Glossary Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency Glossary of Terms and Abbreviations SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos— The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOO is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) —A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) ICS Incident Command System IERP Integrated Emergency Control Plan LOS Level of Service MGD Million gallons per day NACWA National Association of Clean Water Agencies NPDES National Pollutant Discharge Elimination System NWRI National Water Research Institute O&M Operations and Maintenance OCCOG Orange County Council of Governments OCHCA Orange County Health Care Agency OCSD Orange County Sanitation District OCWD Orange County Water District GOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration PCSA Professional Consultant Services Agreement POTW Publicly Owned Treatment Works ppm Parts per million PSA Professional Services Agreement RFP Request For Proposal Glossary of Terms and Abbreviations RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board SAW PA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Benthos — The community of organisms, such as sea stars, worms and shrimp, which live on, in, or near the seabed, also know as the benthic zone. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOO is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Glossary of Terms and Abbreviations Certificate of Participation (COP) -A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) - Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (D!T) - the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Greenhouse gases - In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect"). Groundwater Replenishment (GWR) System - A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)-Goals to support environmental and public expectations for performance. NOMA- N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) - An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume-A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)- Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line - A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer - Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) - Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment - Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge - Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)-The amount of solids floating and in suspension in wastewater. Glossary of Terms and Abbreviations Trickling filter — A biological secondary treatment process in which bacteria and other microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in wastewater as it trickles over them. Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm drains, rivers, lakes, and oceans. Wastewater—Any water that enters the sanitary sewer. Watershed —A land area from which water drains to a particular water body. OCSD's service area is in the Santa Ana River Watershed.