HomeMy WebLinkAbout01-25-2017 Board Meeting Agenda Packet Orange County Sanitation District Wednesday, January 25, 2017
Regular Meeting of the 6:00 P.M.
BOARD OF DIRECTORS Board Room
10844 Ellis Avenue
Fountain Valley, CA 92708
(714)593-7433
AGENDA
CALL TO ORDER
INVOCATION AND PLEDGE OF ALLEGIANCE (Michelle Steel, Orange County Board
of Supervisors)
ROLL CALL (Clerk of the Board)
1. RECEIVE AND FILE MINUTE EXCERPTS OF MEMBER AGENCIES RELATING
TO APPOINTMENTS TO THE ORANGE COUNTY SANITATION DISTRICT
BOARD OF DIRECTORS (Clerk of the Board)
City of Anaheim Denise Barnes Lucille Kring
City of Brea Glenn Parker Cecilia Hupp
City of Fountain Valley Steve Nagel Cheryl Brothers
City of Garden Grove Steve Jones Kris Beard
City of Huntington Beach Barbara Delgleize Erik Petersen
City of Irvine Donald Wagner Lynn Schott
City of La Habra Tim Shaw Michael Blazey
City of La Palma Peter Kim Gerard Goedhart
City of Los Alamitos Richard Murphy Warren Kusumoto
City of Newport Beach Scott Peotter Kevin Muldoon
City of Placentia Chad Wanke Ward Smith
City of Seal Beach Ellery Deaton Sandra Massa-Lavitt
City of Stanton Dave Shawver Carol Warren
City of Tustin Allan Bernstein Chuck Puckett
City of Villa Park Robert Collacott Diana Fascenelli
Costa Mesa Sanitary District James Ferryman Bob Ooten
Yorba Linda Water District Phil Hawkins Brooke Jones
DECLARATION OF QUORUM (Clerk of the Board)
PUBLIC COMMENTS: If you wish to address the Board of Directors on any item, please complete a
Speaker's Form (located at the table outside of the Board Room) and submit if to the Clerk of the Board or
notify the Clerk of the Board the item number on which you wish to speak. Speakers will be recognized by
the Chairperson and are requested to limit comments to three minutes.
01M/2017 OCSD Board of Directors Agenda Page 1 of 8
SPECIAL PRESENTATIONS:
• Employee Service Award(s)
ELECTION:
2. ELECTION OF VICE CHAIRPERSON OF THE BOARD OF DIRECTORS
(Clerk of the Board)
RECOMMENDATION: Conduct the election forthe position of Vice Chairperson of
the Board of Directors in accordance with Resolution No. OCSD 15-27.
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.
• Committee Assignments
CONSENT CALENDAR: Consent Calendar Items are considered to be routine and will be enacted,by
the Board of Directors,after one motion, without discussion. Any items withdrawn from the Consent Calendar
for separate discussion will be considered in the regular order of business.
3. APPROVAL OF MINUTES (Clerk of the Board)
RECOMMENDATION: Approve the minutes of the Regular Board of Directors
Meeting held on December 14, 2016.
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 the collection of all charges and fees owed for sanitary
sewer service charges, plus interest of 5.75% per annum, with Van Law Food
Products, Inc., in a form approved by General Counsel.
5. TAYLOR-DUNN CART PURCHASE FROM YALE CHASE EQUIPMENT AND
SERVICES, INC. (Ed Torres)
RECOMMENDATION:
A. Authorize the award of a sole source purchase of nineteen (19)Taylor-Dunn
electric carts from Yale Chase Equipment and Services, Inc., in accordance
01M/2017 OCSD Boats of Directors Agenda Page 2 of 8
with 03/28/01 Minute Order 12(C)(2), for a total cost of$212,127 to include
tax and delivery; and
B. Approve a contingency of$10,606 (5%).
6. MEMORANDUM OF UNDERSTANDING WITH ORANGE COUNTY
EMPLOYEES' RETIREMENT SYSTEM REGARDING PAYMENT OF UNFUNDED
ACTUARIAL ACCRUED LIABILITIES (Lorenzo Tyner)
RECOMMENDATION: Adopt Resolution No. OCSD 17-01 entitled; "A Resolution
of the Board of Directors of the Orange County Sanitation District authorizing the
General Manager to enter into a Memorandum of Understanding with the Orange
County Employees' Retirement System establishing the terms to recognize and
apply the District's full satisfaction of its Unfunded Accrued Actuarial Liability and
deferred Unfunded Accrued Actuarial Liability."
RECEIVE AND FILE: These items require no action; and without objection, will be so ordered by the
Board Chair.
7. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
DECEMBER 2016 (Lorenzo Tyner)
RECOMMENDATION: Receive and file the report of the Investment Transactions
for the month of December 2016.
STEERING COMMITTEE:
8. OUTREACH FOR GROUNDWATER REPLENISHMENT SYSTEM (GWRS)
BOTTLED WATER AND THE 10TH ANNIVERSARY OF THE GWRS (Bob Ghirelli)
RECOMMENDATION: Approve$63,000 as the Orange County Sanitation District's
share of costs related to GWRS bottled water outreach efforts.
9. GENERAL MANAGER'S FY 2016-2017 WORK PLAN MID-YEAR UPDATE
(Jim Herberg)
RECOMMENDATION: Receive and file the General Manager's FY 2016-2017
Work Plan Mid-Year Update.
01M/2017 OCSD Bwa of Directors Agenda Page 3 of 8
NON-CONSENT CALENDAR:
10. REIMBURSEMENT AGREEMENT WITH ORANGE COUNTY FLOOD CONTROL
DISTRICT FOR FULLERTON CREEK CHANNEL PROJECT (Rob Thompson)
RECOMMENDATION: Approve a Reimbursement Agreement with the Orange
County Flood Control District for the modifications to the Magnolia Relief Sewer
under the Fullerton Creek Channel, in the City of Buena Park.
11. CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT
NO. 2, PROJECT NO. P2-110 (Rob Thompson)
RECOMMENDATION:
A. Receive and file Bid Tabulation and Recommendation for Consolidated
Demolition and Utility Improvements at Plant No. 2, Project No. P2-110;
B. Receive and file Orange County Sanitation District's Notice of Intent to
Award dated December 5, 2016;
C. Receive and file Award Protest from Shimmick Construction Co., Inc dated
December 13, 2016, concerning the award to Flatiron West, Inc.;
D. Receive and file response letterfrom Flatiron West, Inc. dated December20,
2016, regarding the bid protest of Shimmick Construction Co., Inc.;
E. Receive and file Orange County Sanitation District's determination letter
dated December 27, 2016, to Shimmick Construction Co., Inc. responding
to Award Protest;
F. Deny Award Protest filed by Shimmick Construction Co., Inc.;
G. Award a Construction Contract to Flatiron West Inc. for Consolidated
Demolition and Utility Improvements at Plant No. 2, Project No. 132-110, for
a total amount not to exceed $16,730,000; and
H. Approve a contingency of$1,338,400 (8%);
I. Approve a Professional Consultant Services Agreement with Stantec
Consulting Services, Inc. to provide construction support services for
Consolidated Demolition and Utility Improvements at Plant No. 2, Project No.
132-110, for an amount not to exceed $1,499,839; and
J. Approve a Professional Consultant Services Agreement contingency of
$149,984 (10%).
01M/2017 OCSD Bwa of Directors Agenda Page 4 of 8
AB 1234 REPORTS: This is the time of the meeting when Board Members will provide a brief oral
report on any conference, meeting, or travel paid by the Sanitation District.
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 or potential litigation,orpersonnel matters,pursuant to Government Code Sections
54956.8, 54956.9, 54957 or 54957.6, as noted.
Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation;
(c)employment actions or negotiations with employee representatives;or which are exempt from public
disclosure under the California Public Records Act, may be reviewed by the Board during a permitted
closed session and are not available for public inspection. At such time as the Board takes final action
on any of these subjects, the minutes will reflect all required disclosures of information.
CONVENE IN CLOSED SESSION.
(1) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
Number of Cases: 2
Klean Waters, Inc. at al. v. Orange County Sanitation District, et al., United States
District Court, Central District of California, Southern Division, Case No.
8:15-cv-00627.
Klean Waters, Inc. et al. v. Orange County Sanitation District, et al. United States
District Court, Central District of California, Southern Division, Case No.
8:15-cv-01498.
(2) CONFERENCE WITH LEGAL COUNSEL RE EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
Number of Cases: 1
City of Los Angeles v. County of Kern, Tulare County Superior Court, Case No.
242057.
0 112 512 01 7 OCSD Board of Directors Agenda Page 5 of 8
(3) CONFERENCE WITH LEGAL COUNSEL RE ANTICIPATED LITIGATION
(Government Code Section 54956.9(d)(2))
Number of Potential Cases: 2
Claim for damages or injury from: Melissa Forman-Woodbridge
Claim for damages or injury from: Roy Handy
(4) CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Property: 300 East Coast Highway, Newport Beach, CA -APN No.440-132-60
Agency negotiators: General Manager, Jim Herberg; Assistant General Manager,
Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner;
Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and
Jeff Mohr; and CIP Project Manager, Adam Nazaroff.
Negotiating parties: Bayside Village Marina LLC
Under negotiation: Instruction to negotiator will concern price and terms of payment.
(5) CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Government Code Section 54956.8)
Property: 10950 Virginia Cir. Fountain Valley, CA- APN No.156-165-05;
10870 Spencer Ave. Fountain Valley, CA -APN No.156-163-07;
18480 Pacific St. Fountain Valley, CA -APN No.156-165-04;
18430 Pacific St. Fountain Valley, CA -APN No.156-165-06;
18370 Pacific St. Fountain Valley, CA -APN No.156-165-08;
18429 Pacific St. Fountain Valley, CA -APN No.156-163-09;
18410 Bandilier Cir. Fountain Valley, CA -APN No.156-163-10;
18368 Bandilier Cir. Fountain Valley, CA -APN No.156-163-11;
10700 Spencer St. Fountain Valley, CA-APN No.156-163-16;
10700 Spencer Ave. Fountain Valley, CA -APN No.156-154-07;
18350 Mt. Langley St. Fountain Valley, CA-APN No.156-154-08;
18386 Mt. Langley St. Fountain Valley, CA-APN No.156-154-06;
18385 Bandilier Cir. Fountain Valley, CA -APN No.156-163-12;
18401 Bandilier Cir. Fountain Valley, CA -APN No.156-163-13;
18424 Mt. Langley St. Fountain Valley, CA-APN No.156-154-05;
18435 Bandilier Cir. Fountain Valley, CA -APN No.156-163-14;
18475 Bandilier Cir. Fountain Valley, CA -APN No.156-163-15;
10725 Ellis Ave. Fountain Valley, CA -APN No.156-154-04;
10540 Talbert Ave. Fountain Valley, CA -APN No.156-151-03; and
7311 Doig Drive Garden Grove, CA -APN No. 131-651-20
01/25/2017 OCSD Bwa of Directors Agenda Page 6 of 8
Agency negotiators: General Manager, Jim Herberg; Assistant General Manager,
Bob Ghirelli; Director of Finance and Administrative Services, Lorenzo Tyner;
Director of Engineering, Rob Thompson; Engineering Managers, Kathy Millea and
Jeff Mohr; CIP Project Manager, Wendy Sevenandt; Kevin Turner and John
Gallivan, Cushman and Wakefield.
Negotiating parties:
Valley, Business Park, APN Nos. 156-165-05, .156-165-06, 156-163-07;
DK-USA LLC, APN No.156-165-04;
Fountain Valley Industrial Parcel 13, APN No.156-165-08;
Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11;
The Ins Trust Shabtai, Nevon, APN No. 156-163-16;
The Ins Trust, APN No. 156-154-07;
K & A Investments LP, APN No. 156-154-08;
Fountain Valley Star LLC, APN No. 156-154-06;
TN Sheet Metal Inc., APN No. 156-163-12;
18401 Bandilier LLC, APN No. 156-163-13;
Phone Lilly Lin-Lin TR, APN No. 156-154-05;
JDK Partners, APN No. 156-163-14;
Chandler Real Properties, APN No. 156-163-15;
Ellis Avenue LLC, APN No. 156-154-04; and
SFII Fountain Valley LLC, APN No. 156-151-03
Under negotiation: Instruction to negotiator will concern price and terms of
payment.
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 Special Meeting of the Board of Directors
(Board Orientation) on February 15, 2017 at 3:00 p.m.
0112 5/2 01 7 OCSD Boats of Directors Agenda Page 7 of 8
Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability
related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)
593-7433 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and
the type of accommodation requested.
Aaenda Postina: In accordance with the requirements of California Government Code Section 54954.2,this agenda
has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis
Avenue, Fountain Valley, California, and on the Sanitation District's website at www.ocsd.com, not less than 72
hours prior to the meeting date and time above. All public records relating to each agenda item,including any public
records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available
for public inspection in the office of the Clerk of the Board.
Aaenda Description: The agenda provides a brief general description of each item of business to be considered or
discussed. The recommended action does not indicate what action will be taken. The Board of Directors may take
any action which is deemed appropriate.
NOTICE TO DIRECTORS: To place items on the agenda for a Committee or Board Meeting, items must be
submitted to the Clerk of the Board 14 days before the meeting.
Kelly A.Lore
Clerk of the Board
(714)593-7433
klore(olocsd.com
For any questions on the agenda, Committee members may contact staff at:
General Manager Jim Herberg (714)593-7300 iherbem(&ocsd.wm
Assistant General Manager Bob Ghirelli (714)593-7400 rghlmlli(a)ocsd.com
Director of Engineering Rob Thompson (714)593-7310 rthomosomaDocsd.com
Director of Environmental Services Jim Colston (714)593-7450 icolston(d)ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 Ityner(docsd.wm
Administrative Services
Director of Human Resources Celia Chandler (714)593-7202 cchandler(@ocsd.com
Director of Operations&Maintenance Ed Torres 714 593-7080 etorres ocsd.com
0112 5/2 01 7 OCSD Board!of Directors Agenda Page 8 of 8
BOARD OF DIRECTORS Meeting Date I To of Dir.
— of/zs/ 7
AGENDA REPORT ItemNumber Item Numbe
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Kelly A. Lore, Clerk of the Board
SUBJECT: ELECTION OF VICE CHAIRPERSON OF THE BOARD OF DIRECTORS
GENERAL MANAGER'S RECOMMENDATION
Conduct an election for the position of Vice Chairperson of the Board of Directors in
accordance with Resolution No. OCSD 15-27.
SUMMARY
Former Chairperson John Nielsen's term expired as a City Council Member in the City of
Tustin on December 9, 2016. Vice Chairperson Greg Sebourn automatically succeeded
former Chairperson Nielsen as provided in Resolution No. OCSD 15-27. Said Resolution
also requires the Board to consider nominations for a new Vice Chairperson; and conduct
an election at the next meeting of the Board.
At the December 14, 2016 Board Meeting, General Counsel declared nominations open
and Directors David Shawver, John Withers and Lucille Kring were nominated as
candidates for the office of Vice Chairperson of the Orange County Sanitation District
Board of Directors. There were no additional nominations and General Counsel closed
the nominations.
On January 10, 2017, the Anaheim City Council appointed Lucille Kring to represent the
City of Anaheim as the Alternate Director on our Board and, therefore, she is no longer
an eligible candidate for this position.
General Counsel will preside over the election. Voting will take place by roll call vote.
ATTACHMENTS
The following attachments) may be viewed on-line at the OCSD website (wwwocsd.corn with the
complete agenda package:
• Resolution No. OCSD 15-27
Page 1 of 1
RESOLUTION NO. OCSD 15-27
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
WHEREAS it is necessary to establish rules of procedure to facilitate the orderly
handling of business to come before the Orange County Sanitation District Board of
Directors and Standing, Steering, Special and Ad Hoc Committees.
NOW THEREFORE, the Board of Directors of the Orange County Sanitation
District, DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: Rules of Procedure. That the following rules of procedure be
adopted for the conduct of business of the District:
A. Regular Meetings. There shall be a regular monthly meeting of the Board
of Directors of the District on the fourth Wednesday of every month at 6:00 p.m., in the
Administrative Offices of the District, located at 10844 Ellis Avenue, Fountain Valley,
California; provided, however, if the fourth Wednesday of the month falls upon a legal
holiday, said monthly meeting shall be held on the next day thereafter, at the same time
and place, unless the Board adjourns to a different date and time.
The Board of Directors may adjourn any regular, special or adjourned special
meeting to a time and place certain, as specified in the order of adjournment.
B. Special Meetings. A special meeting of the Board of Directors may be
called in either one of the following ways:
(1) By the Chairperson of the Board of Directors; or
(2) By the written request of a majority of the Steering Committee
delivered to the Clerk of the Board.
The call or notice for special meeting shall be in writing and delivered personally
or by mail at least twenty-four(24) hours before the time of such meeting, as specked in
the notice. Any notice deposited in the regular mail addressed to a Director at the address
he or she has on file with the Clerk of the Board postage prepaid, sixty (60) hours in
advance of any such meeting as specked in the notice, shall be presumed to have been
delivered.
The call or notice shall specify the time and place of the special meeting, a
description of the business to be transacted, and copies of all pertinent written materials.
OCSD 15-27-1
Such written notice maybe dispensed with as to any Director or Alternate Director
who, at or prior to the time the meeting convenes, files with the Clerk of the Board a
written waiver of notice. Such waiver may be given by facsimile or electronic mail. Such
written notice may also be dispensed with as to any member who is actually present at
the meeting at the time it convenes. The Clerk of the Board shall diligently attempt to
notify each Director personally of the time, place and purpose of said meeting, not less
than twenty-four(24) hours before the time of said meeting.
The call or notice shall be posted in the administrative offices' public lobby at least
twenty-four (24) hours prior to the special meeting.
C. Meetings Adjourned by Clerk of the Board. If at any regular, adjourned
regular, special, or adjourned special meeting, there is not a quorum of Directors present,
the Clerk of the Board may declare the meeting adjourned to a stated time and place and
shall cause written notice of the adjournment to be given in the same manner as for a
special meeting, unless such notice is waived as provided for in special meetings. Within
twenty-four (24) hours after the time of the adjournment, a copy of the order or notice of
adjournment shall be conspicuously posted on or near the door of the place where the
meeting was held.
D. Notices to News Media. When any local newspaper of general circulation,
radio or television station requests, in writing, notices of meetings of the Board of
Directors, the Clerk of the Board shall thereafter, until receipt of a notice terminating said
request, deliver notices of regular, regular adjourned, and special adjourned meetings to
such newspapers, radio or television stations. Delivery shall be made in the same manner
as delivery is made to the Directors.
E. Conduct of Meetings.
(1) Procedural Rules. The procedural rules for debate and action shall
be as set forth in Table 1, attached hereto and adopted herein by reference. Robert's
Rules of Order shall not be applicable or govern the procedures for the conduct of
Sanitation District business.
(2) Legal Officer. In any case of ambiguity or uncertainty in the
interpretation or application of these Rules to any procedure, the presiding officer may
direct such question for a ruling to the Board's General Counsel, who shall be the
parliamentarian of the Board.
(3) Obtaining the Floor and Making Motions. Any member of the Board
wishing to speak, or any member of the public wishing to address the Board, must first
be recognized by the Chairperson. The Chairperson must recognize any member of the
Board who seeks the floor when appropriately entitled to address the Board.
Any member of the Board, including the Chairperson, may bring a
matter of business properly before the Board by making a motion. Any member, including
OCSD 15-27-2
the Chairperson, except the member making the motion, may second the motion. Once
a motion is seconded, it may be opened for discussion and debate, in accordance with
the procedures in Subsection (4) below.
(4) Rules for Discussion. Debate. and Deliberation by the Board. The
procedures for consideration and action on all matters to come before the Board shall be
in compliance with the terms of this Section, as follows:
(a) Each item on the Agenda will be introduced in a form of a
report by either Staff or Counsel.
(b) Upon completion of the report, the Chairperson will allow for
direct questions regarding the item, by Directors, each in turn, and in the order as selected
by the Chairperson.
(c) Upon completion of the question period, the Chairperson will
entertain a motion and second for consideration by the Board.
(d) Discussion among the Directors will follow. Each Director will
be recognized to address the Board in the order selected by the Chairperson, with a five
(5) minute time limit for each Member wishing to speak on the Agenda item, unless the
time limit is waived by the Chairperson. There will be no interruptions of the Director who
has been recognized. Attempted interruptions will be declared out-of-order, and the
Board Member attempting to interrupt will be asked to remain silent until recognized.
(a) As an additional courtesy to everyone, repetition of comments
will be discouraged in the interest of time, and at the discretion of the Chairperson, can
be declared out-of-order.
(f) After each Member who wishes to speak has been recognized
and completed his/her remarks, a single three (3) minute period of rebuttal will be allowed
any Director, unless the time limit is waived by the Chairperson.
(g) If it appears to the Chairperson that any Director is pursuing a
line of questioning or commentary due to lack of preparation or prior review with the
District's Staff, the Director's time will be declared to have been used up, and no further
inquiry will be allowed.
(h) Upon adoption of a motion on an Agenda item, there will be
no further discussion of that item.
(5) Decorum in Debate. All Members shall address their remarks to the
Chairperson and confine them to the business then pending and subject to discussion
before the Board, avoiding personalities and reflections upon anyone's motives.
OCSD 15-27-3
(6) Closing or Limiting Debate. At all times the Board shall endeavor to
allow free and open debate among Members of the Board. However, in the discretion of
the Chairperson, it may become necessary to close or limit debate, so that action can be
taken by the Board. An order by the Chairperson closing or limiting the debate can only
be set aside by a majority vote of the Board.
F. Quorum. A majority of the Directors shall constitute a quorum of the Board.
G. Chairperson and Vice Chairperson of the Board. A Chairperson and Vice
Chairperson of the Board shall be elected by a majority vote of Directors at the regular
meeting in June of each year, and will assume office July 1st. The nominations for
Chairperson and Vice Chairperson shall be made at the regular Board meeting in May of
each year. Any person nominated for Chairperson shall be deemed to be nominated for
Vice Chairperson in the event the person is not elected as Chairperson. Thereafter, the
nominees shall prepare a statement setting forth their qualifications for the office sought.
The statements shall be mailed to members of the Board of Directors with the Agenda
and other meeting material for the June regular meeting. If only one individual is
nominated for Chairperson at the regular Board meeting in May, that individual shall be
deemed elected as Chairperson, no election shall be held in June, and the individual shall
assume office July tat. If only one individual is nominated for Vice Chairperson at the
regular Board meeting in May, that individual shall be deemed elected as Vice
Chairperson, no election shall be held in June, and the individual shall assume office July
1 St.
The Chairperson and Vice Chairperson shall serve at the pleasure of a majority of
the Directors. In the event the office of Chairperson becomes vacant due to resignation
or retirement of the incumbent prior to the expiration of the regular term, the Vice
Chairperson shall automatically succeed to the office of the Chairperson and shall
continue to serve through the remainder of the regular term unless sooner removed by
action of a majority of the Directors. In the event the office of Vice Chairperson becomes
vacant prior to the expiration of the regular term, nominations and the election of a
Director to serve in that capacity shall be conducted at the next regular Board meeting.
The person so elected shall serve the balance of the regularly-scheduled term unless
sooner removed as a result of action by a majority of the Directors.
The Chairperson shall not serve more than two consecutive one-year terms for
which he/she has been elected to the office of Chairperson. The Vice Chairperson shall
not serve more than two consecutive one-year terms for which he/she has been elected
to the office of Vice Chairperson.
H. Presiding Officer. The Chairperson of the Board shall preside during
meetings of the Directors. In the absence of the Chairperson, the Vice Chairperson shall
preside.
OCSD 15-27-4
I. Clerk of the Board and Minutes. The Board of Directors shall have a person
designated to serve as Clerk of the Board. The Clerk of the Board will be appointed to
the position by the General Manager and shall report to the General Manager or a
Department Head as designated by the General Manager. The Clerk of the Board will be
a regular full time employee, subject to all the rules and policies applicable to all regular
full time employees. The Clerk of the Board shall attend all meetings of the Board of
Directors, unless excused by the Chairperson, and shall prepare an accurate record of
each meeting for submission to the Directors and subsequent approval at the following
meeting; provided, however, that when an adjourned, special or special adjourned
meeting of the Board of Directors immediately precedes a regular meeting, Minutes of
said meeting shall be submitted for approval at the next meeting of the Board following
said regular meeting.
In the preparation of Official Minutes of a meeting of the Board of Directors, the
Clerk of the Board will not record the name of the Director who moves or who seconds
the adoption of a motion or Resolution, except the vote of any individual Director shall be
recorded upon that Director's request. The Minutes will reflect the votes by name of
Director when required by provisions of state law.
In the absence of the Clerk of the Board, a Deputy Clerk of the Board shall be
appointed to exercise the duties of the Clerk of the Board.
J. Regular Business to Come Before the Board of Directors. Insofar as
practicable, all items of business to be taken up at a regular meeting of the Board shall
be submitted to the Clerk of the Board, who shall include on the Agenda all such items
submitted by Directors, the General Manager and General Counsel, and all formal
communications.
The Clerk of the Board shall mail to each Director a notice of such regular
meetings, together with a proposed Agenda, not later than the Friday immediately
preceding such regular meetings. Said Agenda, insofar as possible, shall include copies
of Resolutions, except as hereafter provided, and a description of all matters to be
considered, together with any pertinent written materials.
Agendas shall be posted in a location freely accessible to the public not less than
seventy-two (72) hours in advance of the meeting.
Resolutions designated as "standard" and adopted by the Board of Directors from
time to time, and approved as to form and content, need not be included with said Agenda;
provided, however, that the information completing said standard Resolutions shall be set
forth on the Agenda listing, and copies of said standard Resolutions shall be on file with
the Clerk of the Board at the meeting time and place.
Items of business not known at the time the regular Agenda is mailed as herein
provided, may be considered as supplemental Agenda items; provided that all
OCSD 15-27-5
requirements of the Ralph M. Brown Act(California Government Code Sections 54950 et
seq.)are satisfied.
No business, except with consent of two-thirds of the Directors present (a majority
of Directors present for emergency actions), and only if permitted by the Ralph M. Brown
Act, not appearing on the regular or supplemental Agendas may be brought before the
Board of Directors.
The meeting Agenda shall provide for an opportunity for members of the public to
address the Board on items on the Agenda and non-Agenda items of public interest. As
determined by the Chairperson, speakers may be deferred until the speck Agenda item
is taken for discussion, and remarks may be limited to three (3) minutes. Speakers on
non-Agenda items may address only items that are within the subject matter jurisdiction
of the Board of Directors. Time allotted for such presentations is limited to three (3)
minutes or less. Total time allotted for all public input on each non-Agenda item is limited
to thirty (30) minutes to one (1) hour, taking into consideration the number of persons
filing a request to address the Board. However, time allotments may be waived by a
majority vote of the Board.
K. Handling of Business and Voting. During the course of a Board meeting,
routine matters listed on the Agenda for consideration will be referred to by Agenda Item
Number only.
Voting on all Resolutions shall be by roll call, except if waived by unanimous voice
vote, in which event, the Chairperson may order a unanimous ballot cast in favor of the
motion or Resolution under discussion. The name of each Director shall be called only
once.
On matters of considerable interest or on which there appears to be a controversy,
the motion or Resolution shall be read by title or repeated by the Chairperson. The
Chairperson shall thereafter call for discussion of the motion or Resolution, at which time
any member may discuss the pending matter. Any person other than a Director present
at the meeting may speak on the motion if recognized by the Chairperson. Sole discretion
as to the extent of discussion outside of the membership of the Board shall rest with the
Chairperson. At the close of discussion, the Chairperson may, at the Chairperson's
discretion, repeat the motion or Resolution pending, and thereafter, call for a vote.
The Clerk of the Board shall determine and state whether or not a motion or
Resolution is adopted by roll call vote. On all other matters, the Chairperson shall
determine the outcome of the voting.
L. Committees.
(1) Standing Committees.
OCSD 15-276
(a) Steering Committee: There shall be a permanent Committee
designated as the Steering Committee, comprised of the Chairperson of the Board, the
Vice Chairperson of the Board,the Chairperson of each of the Standing Committees, and
three at-large members selected by the Chairperson of the Board. The Vice Chairperson
of each of the two Standing Committees shall serve as the designated Alternate, in the
absence or inability to serve by any Chairperson.
The Committee shall also conduct an annual performance
evaluation of the General Manager and submit recommendations on his/her
compensation to the Board of Directors. The Committee shall also review the General
Manager's evaluation and compensation of the executive management employees,
based on established criteria, and executive management's goals and objectives for the
following year.
The Committee shall also conduct an annual performance
evaluation of General Counsel and submit recommendations to the Board of Directors as
provided by Resolution OCSD 12-03.
The Committee shall receive written requests for a hearing,
set hearings or deny the request for a hearing on appeals concerning permit suspension,
revocation, or denial as provided by Ordinance OCSD-37.
The Committee shall make recommendations to the Board of
Directors on labor negotiations and other related activities as may be needed or
appropriate.
The Committee shall also be authorized to assign new
subjects of significant importance to the appropriate Standing Committee for study,
evaluation and recommendation.
The Steering Committee shall meet on the fourth Wednesday
of each month at 5:00 p.m. preceding the Board's meeting, or at the call of the
Chairperson of the Board of Directors.
(b) Administration Committee: There shall be a permanent
Administration Committee (Finance, Human Resources and Information Technology) to
advise the Staff and make recommendations on matters related to the financial,
budgeting, administrative and personnel policies and programs of the District.
The Committee shall review with the Staff the procedures for
development, preparation and format of the annual budget and recommend appropriate
change, and counsel the Staff during the budget process to assure the proper
interpretation and implementation of the Board's policies and that the desired procedures
have been followed.
The responsibility for consideration and adoption of the
District budget rests with the Board of Directors.
OCSD 15-27-7
The Committee shall periodically interview and recommend
the selection of outside auditors. The Committee shall review the result of the annual
audit of the District's accounts with representatives of the outside audit fine, including any
comments received recommending improvements. The Committee shall review
management's response to these comments and make appropriate recommendations for
implementation.
Periodically, the Committee shall recommend employment of
an outside firm to audit internal control procedures to safeguard the assets of the District.
The Committee shall interview and make recommendations
on the employment of investment-banking firms, bond counsel, and if necessary or
desired,financial advisors, to be used in connection with the District's financing programs.
The Committee shall periodically coordinate
recommendations on personnel audits of the District's operations or segments of the
operations on an as-needed basis.
The Committee shall make recommendations on personnel
policies and procedures, insurers and coverage, procurement procedures, and such other
related activities as may be needed or appropriate.
The Chairperson of the Board of Directors shall appoint a
Committee Chairperson and a Committee Vice Chairperson for the Administration
Committee. The Committee Chairperson and Committee Vice Chairperson shall serve at
the pleasure of the Chairperson of the Board of Directors.
The Administration Committee shall consist of thirteen
members, as follows:
(1) The Chairperson of the Board of Directors;
(2) The Vice Chairperson of the Board of Directors;
(3) The Committee Chair of the Administration Committee;
(4) The Committee Vice Chair of the Administration Committee; and
(5) Nine additional Board members appointed by the Chairperson of the Board of
Directors.
Other than the Board Chairperson and the Board Vice
Chairperson, no Director who serves on the Operations Committee shall be eligible to
serve on the Administration Committee.
OCSD 15-27-8
The Administration Committee shall meet on the second
Wednesday of each month at 5:00 p.m., or at the call of its Chairperson.
(c) Operations Committee. There shall be a permanent
Committee designated the Operations Committee (Engineering, Operations &
Maintenance and Technical Services). With the goal of compliance with all public health
and environmental laws and regulations, the Operations Committee shall review and
submit appropriate recommendations on the matters pertaining to the operation of the
District Treatment Works, including such matters as current and projected service/flow
needs, level and quality of treatment, conservation, recycling and reuse activities, and air
quality issues.
The Committee shall also review issues pertaining to the
District's NPDES Ocean Outfall Discharge Permit, including annual review of the
contractor(s) performing the ocean monitoring and research programs required as a
condition of said permit, and related issues regarding protection of the marine waters off
metropolitan Orange County's coastline from impacts resulting from the District's
operations and discharge of treated wastewater.
The Committee shall also review matters pertaining to
contractual arrangements by the District to provide sewerage services to areas outside
the District's boundaries or approved spheres of influence.
The Committee shall review plans for the future needs of the
District, explore alternatives and make recommendations to the Board of Directors.
The Operations Committee shall also review and submit
appropriate recommendations on matters pertaining to capital projects which address
operational needs, including the selection of professional consulting services to assist in
studying, planning and designing needed District Treatment Works and support facilities,
including computerized systems, in accordance with the Board's established policies and
procedures for procuring such services; the Committee shall further review construction
projects for said facilities in accordance with applicable public works laws and Board
policies. Said oversight shall include the contracts for professional services and public
works construction projects and addenda or change orders thereto. In carrying out its
responsibilities, the Committee shall receive advance notice and regular status reports
on the projects from Staff, and monitor, visit and observe the District Treatment Works'
operational functions and major capital construction projects.
The Chairperson of the Board of Directors shall appoint a
Committee Chairperson and a Committee Vice Chairperson of the Operations
Committee. The Committee Chairperson and Committee Vice Chairperson shall serve
at the pleasure of the Chairperson of the Board of Directors.
OCSD 15-27-9
The Operations Committee shall consist of fourteen
members, as follows:
(1) The Chairperson of the Board of Directors;
(2) The Vice Chairperson of the Board of Directors;
(3) The Committee Chair of the Operations Committee;
(4) The Committee Vice Chair of the Operations Committee; and
(5) Ten (10) additional Board members appointed by the Chairperson of the Board
of Directors.
Other than the Board Chairperson and the Board Vice
Chairperson, no Director who serves on Administration Committee shall be eligible to
serve on the Operations Committee. The Operations Committee shall meet on the first
Wednesday of each month at 5:00 p.m., or at the call of its Chairperson.
(d) Legislative and Public Affairs Committee: There shall be a
permanent Committee designated as the Legislative and Public Affairs Committee,
comprised of the Chairperson of the Board, the Vice Chairperson of the Board, and five
at-large members selected by the Chairperson of the Board.
The Committee shall advise the Staff and make recommendations
on matters related to the legislative and public affairs programs of the District.
The Legislative and Public Affairs Committee shall meet on the
second Monday of each month at 8:00 a.m. or at the call of the Board Chairperson.
(2) Special and Ad Hoc Committees. In addition to the Standing
Committees, the Chairperson of the Board of Directors, or the Chairperson of a Standing
Committee, or a majority of the Directors, may appoint from time to time, Special or Ad
Hoc Committees to study and report on specific matters. Such Committees shall be
temporary in nature, and their assignments shall pertain to a current, specific issue. Upon
completion of the assigned task, the Ad Hoc or Special Committee will be dissolved.
The Chairperson and Vice Chairperson of Special and Ad Hoc
Committees shall be appointed by the Chairperson of the appointing authority.
Each Special and Ad Hoc Committee shall meet at the call of its
Chairperson.
M. Motion to Refer to a Standing Committee. Any Director at a Board meeting
may move to have a policy or any other activity affecting the Sanitation District, or any
OCSD 15-27-10
one of the member Agencies, referred to a Standing Committee for study and report. This
motion shall be a privileged motion, and when duly seconded, discussion thereof shall be
limited to Directors only. Said motion shall receive an affirmative vote of a majority of the
Directors for adoption.
Section 2: Procedure for Consideration of Demands for Corrective Action.
A. Requirement of Written Demand. Prior to any person commencing a
judicial action for injunction or mandamus to declare any action taken by the Board void
because of failure to observe Brown Act requirements, such person must first serve
upon the Clerk of the Board a written demand describing the alleged violation and
demanding corrective action. Such demand must be served upon the Clerk of the Board
within thirty (30) days of the complained of action. Failure to serve any such demand
within this thirty (30) day period shall result in the loss of any right to challenge any action
to have been taken in violation of Sections 54953, 54954.2, or 54956 of the California
Government Code.
B. Consideration of Corrective Action. Upon receipt of such a demand,
consideration of the demand shall immediately be placed on the Agenda for the next
meeting of the Board of Directors. If the demand is received less than seventy-two (72)
hours prior to the time set for the next meeting, the Board may determine that the notice
constitutes the initiation of litigation, and that the need to take action on the threatened
litigation arose subsequent to the posting of the Agenda, and may consider it at that
meeting pursuant to Section 1(J) above. A description of any item so placed on the
Agenda shall include both consideration of the demand, and the possibility of corrective
action by the Board.
In considering such demands, the Board shall first determine, by motion,
whether corrective action should be taken. If no motion to take corrective action is carried,
the Clerk of the Board shall inform the demanding party in writing of the Board's decision
not to cure or correct the challenged action.
C. Implementing Corrective Action. If a motion to take corrective action
passes, the Chairperson may entertain a motion implementing corrective action. Any
motion implementing corrective action shall address the concerns raised in the
consideration of corrective action. The motion implementing corrective action may
include a motion to rescind prior action taken, as appropriate. Passage of a motion to
rescind invalidates prior action only as of the time of the passage of the motion, and not
from the date of the initial action. A motion implementing corrective action resulting from
a written demand is out-of-order if the action complained of(a) was in connection with the
sale or issuance of notes, bonds, or other evidences of indebtedness, or any contract,
agreement, or incident thereto; or (b) gave rise to a contractual obligation upon which a
party has, in good faith, detrimentally relied. In any event, the Board shall notify the party
making the demand in writing of its decision to take corrective action, and shall describe
any corrective action taken. This notice shall be given to the demanding party as soon
OCSD 15-27-11
as possible after the meeting, but in no event more than thirty (30) days after receipt of
the demand.
Section 3: Resolution No. OCSD 15-01 is hereby repealed.
Section 4: This Resolution shall become effective immediately.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
December 16, 2015.
John elseri
Board 19hair
J
TVeBoard
OCSD 15-27-12
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 15-27 was passed and adopted
at a regular meeting of said Board on the 161h day of December, 2015, by the following
vote, to wit:
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
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
Orange County Sanitation District this 16th day of December, 2015.
Ke ly A, re
CI rk o t e Board of Directors
Orange ounty Sanitation District
OCSD 15-27-13
TABLE 1
BOARD PROCEDURES AND ORGANIZATION
SUMMARY OF MOTIONS
A. PRIVILEGED MOTIONS
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Adjourn Yes No No Majority To end the
meeting
To Take a Yes No No Majority To interrupt a
Recess meeting for a short
time or to provide
an intermission
Raise a No No No None To obtain action
Question of immediately in an
Privilege emergency
B. MAIN MOTION AND RELATED
SUBSIDIARY MOTIONS
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Main Yes Yes Yes Majority To introduce new
Motion business
Amend Yes Yes Yes Majority To modify or alter
Main a motion
Motion
Substitute Yes Yes Yes Majority To replace the
Motion main motion
entirely
OCSD 15-27-14
Previous Yes No No Majority To close debate
Question on the main or
amended motion
immediately
Continue to Yes Yes Yes Majority To defer action
a Certain
Time
To Table Yes No No Majority To discontinue
consideration until
brought back by
vote of the Board
Take a Yes No No Majority To bring before
Motion the group a
from the motion previously
Table tabled
Limit or Yes No Yes Majority To limit or extend
Extend limits of debate
Limits of
Debate
Refer to a Yes Yes Yes Majority To place business
Committee in hands of a
Committee
Withdraw a No No No None To withdraw a
Motion motion before it is
voted on
Reconsider Yes Yes No Majority To secure a new
must be by a vote on a motion
Director who previously voted
voted for the upon
prevailing
side on the
original
motion
OCSD 15-27-15
C. INCIDENTAL RULES
NON-RANKING
Kind of Second Vote
Motion Required Debatable Amendable Required Purpose
Request to Yes No No Two-Thirds To facilitate
Suspend business
the Rules ordinarily contrary
to the rules of the
organization
Override Yes No No Majority To have Board
Order of majority rule on
the Chair the order
Point of No No No None To enforce the
Order rules of the
organization
OCSD 15-27-16
ITEM NO. 3
Orange County Sanitation District
MINUTES
BOARD MEETING
December 14, 2016
ANITAT� 9
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Administration Building
10844 Ellis Avenue
Fountain Valley, California 92708-7018
12/14/2016 Minutes of Board Meeting Page 1 of 17
ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District was
called to order by Board Chair Greg Sebourn on December 14, 2016, at 6:02 p.m., in the
Administration Building. Director John Withers 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 OF DIRECTORS (Clerk of the Board)
Kelly Lore, Clerk of the Board, read into the record the Late Communication
received after the posting of the agenda regarding two appointments to the Orange
County Sanitation District Board of Directors.
Received and filed Minute Excerpts of member agencies relating to appointments
to the Orange County Sanitation District Board, as follows:
City/Agency Active Director Alternate Director
City of Cypress Mariellen Yarc Stacy Berry
Midway City Sanitary District Al Kdppner Charlie Nguyen
The Clerk of the Board declared a quorum present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Gregory Sebourn, Chair Doug Chaffee
X Tom Beamish Tim Shaw
X Ellery Deaton Sandra Massa-Lavitt
X James M. Ferryman Bob Ooten
A Steven Jones Kris Beard
X Peter Kim Michele Steggell
X Lucille Kring James Vanderbilt
X Al Krippner Charlie Nguyen
X Richard Murphy Shelley Hasselbrink
X Steve Nagel Cheryl Brothers
X Glenn Parker Cecilia Hupp
X David Shawver Carol Warren
X Fred Smith Virginia Vaughn
X Teresa Smith Mark Murphy
X Michelle Steel Shawn Nelson
A Sal Tinajero David Benavides
X Chad Wanke VACANT
X John Withers Douglas Reinhart
X Mariellen Yarc Stacy Berry
12/14/2016 Minutes of Board Meeting Page 2 of 17
City of Huntington Beach - VACANT X Erik Peterson
City of Irvine -VACANT A Lynn Schott
City of Newport Beach - VACANT X Scott Peotter
City of Tustin -VACANT X Allan Bernstein
City of Villa Park -VACANT A Diana Fascenelli
A Yorba Linda Water District-VACANT VACANT
STAFF MEMBERS PRESENT: Jim Herberg, General Manager; Bob Ghirelli, Assistant
General Manager; Rob Thompson, Director of Engineering; Lorenzo Tyner, Director of
Finance & Administrative Services; Celia Chandler, Director of Human Resources; Ed
Torres, Director of Operations and Maintenance; Miriam Angold; Jennifer Cabral; Mike
Dorman; Lisa Frigo; Al Garcia; Mark Kawamoto; Tina Knapp; Mark Manzo; Lori McKinley;
Kathy Millea; Jeff Mohr; Jim Mullins; Nasrin Nasrollahi; Roya Sohanaki; and Gina Tetsch.
OTHERS PRESENT: Brad Hogin (General Counsel)
PUBLIC COMMENTS:
None.
SPECIAL PRESENTATIONS:
• Employee Service Awards:
Engineering Manager Roya Sohanaki presented an Employee Service Award to Kim
Christensen, Senior Scientist— Division 630 (25 years).
• Peak Shaving Optimization Strategy Presentation:
Director of Operations and Maintenance Ed Torres recognized: Engineer Nasrin
Nasrollahi; Senior Engineer Jim Mullins; and Lead Power Plant Operator Bill Pease,
who implemented a new peak shaving operating strategy for the Central Generation
engines, which produced an annual cost savings of over $500,000. Ms. Nasrollahi
provided a PowerPoint presentation and Mr. Mullins responded to questions
regarding the process.
REPORTS:
Chair Sebourn welcomed Al Krippner (Midway City Sanitary District) who was recently
appointed to the Board of Directors. Chair Sebourn also stated that at the request of the
Clerk of the Board, Item No. 3 would be brought forward prior to the Consent Calendar.
General Manager Jim Herberg acknowledged newly promoted Engineering Manager
Roya Sohanaki from the Source Protection Division. He informed the Board of the OCSD
Administrative Offices holiday closures on December 23; 26, and January 2. He then
12/14/2016 Minutes of Board Meeting Page 3 of 17
provided information on the following: 2017 Ocean Permit application, efforts to address
odor complaints in the cities of Placentia and Brea, and the New Board Member
Orientation to be held on February 15 & March 15 from 3:00 p.m. —5:00 p.m.
General Counsel Brad Hogin provided a PowerPoint presentation and updated the Board
on the Tulare Court ruling that was reached in the City of Los Angeles v. Kern County
case pertaining to Measure E in which Kern County was the defendant. He provided the
case history and the importance of the successful outcome to OCSD. Mr. Hogin then
responded to questions from the Directors.
Item No. 3 was pulled from the Consent Calendar for separate action.
3. NOMINATION & ELECTION OF VICE CHAIRPERSON OF THE BOARD OF
DIRECTORS (Clerk of the Board)
General Counsel Brad Hogin provided instructions and facilitated the election for
the new Vice Chairperson of the Board of Directors.
The following nominations were made for Board Vice Chairperson:
• Director F. Smith nominated Director David Shawver. Director T. Smith
seconded.
• Director Beamish nominated Director John Withers. Alternate Director Peotter
seconded.
• Director Beamish nominated Director Lucille Kring. Director Withers seconded.
There were no further nominations.
MOVED. SECONDED,AND DULY CARRIED TO: Close the nominations for Vice
Chairperson.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel;
Wanks; Withers; and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott(Alternate); Tinajero; and
a representative from YLWD
Mr. Hogin announced that the election will be held at the next Board meeting on
January 25, 2017. The nominees should send any reference materials they wish
to be distributed to the Directors to the Clerk of the Board.
12/14/2016 Minutes of Board Meeting Page 4 of 17
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 16, 2016.
AYES: Beamish; Ferryman; Kim; Kring; Krippner, R. Murphy; Nagel;
Nielsen; Parker; Peterson (Alternate); Sebourn; Shawver; F.
Smith; Steel; Wanke; Withers; and Yarc
NOES: None
ABSTENTIONS: Deaton; Peotter (Alternate); and T. Smith
ABSENT: Fascenelli (Alternate); Jones; Schott(Alternate); Tinajero; and
a representative from YLWD
4. PAYMENT AGREEMENT FOR CAPITAL FACILITIES CAPACITY CHARGES FOR
BAR BAKERSM (Lorenzo Tyner)
MOVED, SECONDED, AND DULY CARRIED TO: Approve the payment
agreement negotiated by the General Manager for the collection of all charges and
fees owed for capital facility capacity charges plus interest of 5.5% per annum and
administrative fees with Bar Bakers, LLC in a form approved by General Counsel.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Steel;
Wanke; Withers; and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Tinajero; and
a representative from YLWD
Director Withers left the meeting at 6:39 p.m.
RECEIVE AND FILE: These items require no action;and without objection, will be so ordered
by the Board Chair.
5. REPORT OF THE INVESTMENT TRANSACTIONS FOR THE MONTH OF
NOVEMBER 2016 (Lorenzo Tyner)
Received and filed the report of the Investment Transactions for the month of
November 2016.
6. COMMITTEE MINUTES (Clerk of the Board)
Received and filed the approved minutes of the following standing committees:
A. Operations Committee Meeting of November 2, 2016
12/14/2016 Minutes of Board Meeting Page 5 of 17
B. Legislative and Public Affairs Committee Meeting of November 8, 2016
Director Steel left the meeting at 6:40 p.m.
OPERATIONS COMMITTEE:
7. POWER PRODUCTION CONSULTING SERVICES, SPECIFICATION NO.
CS-2016-777BD (Ed Torres)
Board Chair Seboum recused himself and left the room during the discussion and
vote.
MOVED. SECONDED, AND DULY CARRIED TO:
A. Approve a Professional Consultant Services Agreement with AECOM for
Power Production Consulting Services, Specification No. CS 2016-77713D,
for an amount not to exceed $191,691; and
B. Approve a contingency of$19,169 (10%).
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Shawver; F. Smith; T. Smith; Wanke; and Yarc
NOES: None
ABSTENTIONS: None
Fascenelli (Alternate); Jones; Schott (Alternate); Sebourn
ABSENT: (Recused); Steel;Tinajero;Withers; and a representative from
YLWD
8. CBS ARCSAFE REMOTE CIRCUIT BREAKER RACKING UNIT (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a sole source purchase with CBS Aresafe Inc. for the purchase of
four CBS Aresafe remote circuit breaker racking units (two per plant), for a
total amount not to exceed $139,920 delivered, plus tax; and
B. Approve a contingency of$6,996 (5%).
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
ABSENT: Tinajero; Withers; and a representative from YLWD
12/14/2016 Minutes of Board Meeting Page 6 of 17
9. COOPERATIVE PROCUREMENT WITH STATE OF CALIFORNIA UNDER
WSCA-NASPO FOR FUEL CARD PROGRAM (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Authorize the use of the State of California Department of General Services
(DGS) Participating Addendum No. 7-16-99-27 with U.S. Bank National
Association dba Voyager Fleet Systems under the State of Washington
WSCA-NASPO Commercial Card Solutions Contract Number 00612-
Category 2 for the period beginning February 1, 2017 through
December 31, 2018 for a total not to exceed $250,000, with four one-year
renewal options; and
B. Approve a $50,000 (20%) Contingency per year.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
11. RETURN ACTIVATED SLUDGE PIPING REPLACEMENT AT ACTIVATED
SLUDGE PLANT 1, PROJECT NO. P1-129 (Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Establish a project for Return
Activated Sludge Piping Replacement at Activated Sludge Plant 1, Project No. P1-
129, with a budget of$3,300,000.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
12. UPDATE PRE-APPROVAL LIST FOR FREQUENTLY PROCURED SOLE
SOURCE MATERIALS AND SERVICES (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Update authorization and set administrative controls for sole source
procurement required to maintain, service, or replace equipment currently
in operation at Orange County Sanitation District facilities where the parts
and/or service can only be provided by the Original Equipment
12/14/2016 Minutes of Board Meeting Page 7 of 17
Manufacturer (OEM) or their designated representative, for purchases
under$100,000, per purchase; and
B. Authorize the General Manager to ratify additions or deletions to the OEM
list on the General Manager's quarterly approved purchases agenda report.
The following equipment, parts, and services from the listed OEMs are pre-
approved as sole source items. The information below includes a general
category for the part/service, not the specific, existing sole source
part/service.
• AANDERAA DATA INSTRUMENTS— Current meters
• ABB —Variable frequency drives, process controls
• ACME — Plant water strainers
• AGILENT TECHNOLOGIES— Liquid Chromatography Mass Spectrometer
• ALFA-LAVAL— Heat exchangers for digesters, centrifuges
• ALLEN BRADLEY— Process controls
• AMERON — Manhole Toppers
• AM-LINER® PVC— Sewer lining
• ARIZONA INSTRUMENT— Odor sensing equipment
• ASHBROOK (BELLMER /WINKLER)— Sludge belt filter presses
• BASLER— Electrical protective relays and regulators
• BEC— Building Electronics control system
• BENTLEY NEVADA— Gas compressor, Cen-Gen vibration monitoring
• BIO-MERIEUX— Bacterial identification system
• BOERGER— Process Pumps
• CHESTERTON — Mechanical seals for process equipment
• CSI/EMERSON — MSP vibrations
• DEZURIK WATER CONTROLS — Process valves
• EATON —Variable frequency drives for process pumps
• EMERSON/ROSEMOUNT— Process equipment
• FOXBORO — Process equipment
• GOULD/ITT/YEOMANS — Process pumps
• HACH/AMERICAN SIGMA— Liquid samplers
• IPT— Limitorqueservices
• HIDROSTAL— Process pump motors
• LECO — GC Time of Flight mass spectrometer
• LIMITORQUE— Process valves
• MARLOW— Process pumps
• Modicon — PLC parts & service
• MOTOROLA, INC — Radios
• MOYNO — Process pumps
• MSA— Safety gas detection systems
• MUFFIN MONSTER—Sludge grinders
• PARKSON —Washer compactor
• PERKIN ELMER— ICP Mass Spectrometer
• PUTZMEISTER— Sludge transfer pumps
12/14/2016 Minutes of Board Meeting Page 8 of 17
• ROBICON —Variable frequency drives for pumps
• ROTORK—Valve actuators
• SANCON 100 EPDXY/URETHANE — Coating system
• SCHWING — Sludge transfer pumps
• SEABIRD— Ocean Monitoring instrumentation
• SEEPEX— Process pumps
• SIEMENS—Variable frequency drives, process controls
• SIEMENS DEMAG DELAVAL TURBOMACHINERY, INC. (SDDTI)—
Aeration blowers service
• SKALAR— BOD robotics
• SPARLING INSTRUMENTS — Process flowmeters
• TELEDYNE — RD instrumentation
• THERMO ELECTRON — ICP Atomic Emission Spectrometer and GC Mass
spectrometer
• TITUS — Composite Manhole Covers
• VAREC — Process safety equipment
• VAUGHAN — Process Pumps
• WATERS CORPORATION — Liquid chromatograph mass spectrometer
• WESTFALIA— Centrifuge parts
• WEMCO— Process pumps
• XYLEM — Process pumps and ancillary parts
The following additional proprietary service providers are pre-approved:
• ARC WIRELESS — Paging services
• AUTODESK—AutoCADdrawingprogram
• CALIFORNIA RECREATION COMPANY— Vessel Nerissa slip fees
• CORNERSTONE— On Demand Talent Management System
• EMPLOYEE BENEFITS SPECIALIST, INC — Benefits Enrollment System
• ENFOTECH — Pre-treatment Software
• ESRI —GIS software
• FIRST AMERICAN REAL ESTATE— Online Geographic-Realquest Report
• GUIDANCE SOFTWARE, INC— E-Discovery Software
• GOLDEN BELL— Insect Control
• IBM MAXIMO— Enterprise Asset Management Software
• INNOVYZE, INC— Hydraulic Monitoring and CCTV Data
• L - 3 COMMUNICATIONS HOLDINGS, INC— Internet and Telecom
Provider
• LABWARE — Laboratory Information Management System
• MICROSOFT CORPORATION — Premier Support
• MOTOROLA, INC — Radios
• NEOGOV— Online Job Application System
• ORACLE — Oracle Database
• ORACLE / JD EDWARDS — Enterprise One Materials, Equipment &
Services
• PLANETBIDS, INC—Online vendor and bid Management
12/14/2016 Minutes of Board Meeting Page 9 of 17
• RAND MCNALLY—Thomas Bros. Maps
• RBMWARE— Software and 2310 vibration analyzers
• STANDARD AUTOMATION dba WONDERWARE WEST— Historian for
SCADA system
• VISION INTERNET SOLUTIONS, INC — Internet Website
• WORKFORCE —Time Entry
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
13. PROJECT MANAGEMENT INFORMATION SYSTEM, PROJECT NO. J-128
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO: Establish a project for Project
Management Information System, Project No. J-128, with a budget of$4,000,000.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
14. OVERHAUL OF CENTRAL GENERATION ENGINES AT PLANT NOS. 1 AND 2,
SPECIFICATION NO. 5-2016-764BD (Ed Torres)
MOVED, SECONDED, AND DULY CARRIED TO:
A. Approve a Service Contract to NRG Energy Services, LLC for the overhaul
of Central Generation Engines, Specification No. 5-2016-764BD, for the
period of February 1, 2017 through January 31, 2018, for total amount not
to exceed $2,633,119 with four (4) one-year renewal options; and
B. Approve an annual contingency of$ 526,624 (20%).
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
12/14/2016 Minutes of Board Meeting Page 10 of 17
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
Item No. 10 was pulled from the Consent Calendar and considered separately.
10. DOIG DRIVE BUILDING IMPROVEMENTS, PROJECT NO. 3-65
(Rob Thompson)
Alternate Director Peotter expressed concerns as to the cost and extent of the
seismic retrofit. Director of Engineering Rob Thompson explained the history of
the property purchase and use, seismic regulations and deficiencies, potential
liability, and staff's recommendation to comply with new seismic and building
codes. The impact to the tenant's operations were discussed and it was noted that
this property was not covered by earthquake insurance under our current policy.
Discussion ensued as to the best interest of the public and the General Manager
explained the property assessment. As further information was requested, this
item and Item No. 19 were continued.
MOVED. SECONDED, AND DULY CARRIED TO: EStabl Sh a PF9jeGt °^• DGig
Diriye c •ia•., i............... •..�� ni.. ac ✓�a, �. a....� ..� $2 nza nnn
Continue item to the Operations Committee Meeting for further information and
presentation of alternate options.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
LEGISLATIVE AND PUBLIC AFFAIRS COMMITTEE:
15. AB 2022 BOTTLING OF GROUNDWATER REPLENISHMENT SYSTEM
(GWRS) WATER (Bob Ghirelli)
Assistant General Manager Bob Ghirelli provided a brief overview of the item.
MOVED. SECONDED, AND DULY CARRIED TO:
A. Authorize $15,000 for the initial testing and bottling of GWRS water, with
the cost of the bottling and testing to be shared equally between the Orange
County Sanitation District and Orange County Water District; and
B. Authorize the General Manager to approve the label for the first-run of
GWRS water bottles.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
12/14/2016 Minutes of Board Meeting Page 11 of 17
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
16. APPROVAL OF 2017 LEGISLATIVE AND REGULATORY PLAN (Bob Ghirelli)
Board Chair Sebourn stated that the Committee recommended approval of the
item and noted that a request for additional items relating to the targeted value of
grant funding be brought back at a future Committee meeting.
MOVED. SECONDED, AND DULY CARRIED TO: Approve the Orange County
Sanitation District 2017 Legislative and Regulatory Plan.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
NON-CONSENT CALENDAR:
17. OPTIONS FOR DISTRIBUTION OF CLOSED SESSION MATERIALS
(Jim Herberg)
Mr. Herberg provided a brief history of the item and information related to the three
options provided by staff. Alternate Director Peotter provided positive feedback
into the secure website (Option No. 2) that is used by the City of Newport Beach.
MOVED, SECONDED, AND DULY CARRIED TO: Approve Option No. 2 with
additional hard copies to be printed for the meeting and collected after the
conclusion of the meeting.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
ABSENT: Tinajero; Withers; and a representative from YLWD
12/14/2016 Minutes of Board Meeting Page 12 of 17
18. RATIFICATION TO AMEND SYNAGRO CONTRACT (Bob Ghirelli)
Mr. Ghirelli provided a brief overview of the item and notified the Directors that the
current contractor Synagro West, Inc. has purchased Nursery Products, LLC. who
was recently awarded the new contract for hauling and composting of OCSD
biosolids.
MOVED. SECONDED, AND DULY CARRIED TO: Ratify use of General
Manager's emergency purchasing authority in accordance with Ordinance No.
OCSD47 Section 1.07 (B), identified as a critical time-sensitive procurement,
authorizing Amendment No. 10 to the Synagro West, Inc. contract to include their
Nursery Products, LLC facility located at 14479 Cougar Rd., Helendale, California,
to haul and compost Orange County Sanitation District's biosolids, at a unit cost of
$51.00 per wet ton for the period December 1, 2016 through December 27, 2016.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanks;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
19. DOIG DRIVE BUILDING IMPROVEMENTS, PROJECT NO. 3-65
(Rob Thompson)
MOVED, SECONDED, AND DULY CARRIED TO:
X A.....aye a PFaf.....ianaI Design Sept:..,. Agiceement with Inc Greup to
e
Continue item to the Operations Committee Meeting for further information and
presentation of alternate options.
AYES: Beamish; Deaton; Ferryman; Kim; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: None
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
12/14/2016 Minutes of Board Meeting Page 13 of 17
20. WASTEWATER REFUNDING REVENUE OBLIGATIONS SERIES 2017A
(Lorenzo Tyner)
Director of Finance and Administrative Services Lorenzo Tyner provided additional
information regarding the refinancing of the current debt with an anticipated
$12 million in savings. He stated that due to the fluctuation in the bond market,
this represents a lower number than originally presented at the Administration
Committee.
MOVED, SECONDED, AND DULY CARRIED TO:
A. Adopt Resolution No. OCSD 16-32 entitled: "A Resolution of the Board of
Directors of the Orange County Sanitation District authorizing the execution
and delivery by the District of an Installment Purchase Agreement, a Trust
Agreement and a Continuing Disclosure Agreement in connection with the
Orange County Sanitation District Wastewater Refunding Revenue
Obligations, Series 2017A, authorizing the execution and delivery of such
Revenue Obligations evidencing principal in an aggregate amount not to
exceed $91,620,000, approving a Notice of Intention to Sell, authorizing the
distribution of an Official Notice Inviting Bids and an Official Statement in
connection with the offering and sale of such Revenue Obligations and
authorizing the execution of necessary documents and related actions"; and
B. That the Orange County Sanitation District Financing Corporation approve
the documents supporting and authorizing the Revenue Obligations in an
aggregate amount not to exceed $91,620,000.
AYES: Beamish; Deaton; Ferryman; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: Kim
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
Chair Sebourn recessed the Orange County Sanitation District Board of Directors Meeting
at 7:12 p.m.
......................................
12/14/2016 Minutes of Board Meeting Page 14 of 17
ORANGE COUNTY SANITATION DISTRICT FINANCING CORPORATION
CALL TO ORDER:
Chair Sebourn called the Board of Directors, Orange County Sanitation District Financing
Corporation meeting to order at 7:12 p.m.
Kelly Lore, Secretary of the Financing Corporation, declared a quorum present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Gregory Sebourn, Chair Doug Chaffee
X Tom Beamish Tim Shaw
X Ellery Deaton Sandra Massa-Lavitt
X James M. Ferryman Bob Ooten
A Steven Jones Kris Beard
X Peter Kim Michele Steggell
X Lucille Kring James Vanderbilt
X Al Krippner Charlie Nguyen
X Richard Murphy Shelley Hasselbrink
X Steve Nagel Cheryl Brothers
X Glenn Parker Cecilia Hupp
X David Shawver Carol Warren
X Fred Smith Virginia Vaughn
X Teresa Smith Mark Murphy
A Michelle Steel Shawn Nelson
A Sal Tinajero David Benavides
X Chad Wanke VACANT
A John Withers Douglas Reinhart
X Mariellen Yarc Stacy Berry
City of Huntington Beach -VACANT X Erik Peterson
City of Irvine -VACANT A Lynn Schott
City of Newport Beach - VACANT X Scott Peotter
City of Tustin -VACANT X Allan Bernstein
City of Villa Park -VACANT A Diana Fascenelli
A Yorba Linda Water District- VACANT VACANT
Kelly Lore, Secretary of the Financing Corporation, announced that the members of the
Orange County Sanitation District Board of Directors are each being compensated
$212.50 for the Board Meeting; there is no additional compensation for the Financing
Corporation Meeting.
12/14/2016 Minutes of Board Meeting Page 15 of 17
APPROVAL OF MINUTES:
FC-1. Hearing no corrections or amendments made, the minutes for the meeting held on
September 28, 2016 were deemed approved as so ordered by the Chair.
ACTION ITEM:
Director of Finance &Administrative Services Lorenzo Tyner provided an overview of this
item, indicating it was related to Item No. 20 on the agenda for the Board of Directors
meeting of December 14, 2016.
FC-2. MOVED, SECONDED, AND DULY CARRIED TO: Adopt Resolution No. FC-26
entitled: "A Resolution of the Board of Directors of the Orange County Sanitation
District Financing Corporation Authorizing the Execution and Delivery by the
Corporation of an Installment Purchase Agreement and a Trust Agreement in
Connection with the Orange County Sanitation District Wastewater Refunding
Revenue Obligations, Series 2017A, Authorizing the execution and Delivery of
such Revenue Obligations Evidencing Principal in an Aggregate amount of not to
exceed $91,620,000 and Authorizing the execution of necessary documents and
related actions."
AYES: Beamish; Deaton; Ferryman; Kring; Krippner; R. Murphy;
Nagel; Nielsen; Parker; Peotter (Alternate); Peterson
(Alternate); Seboum; Shawver; F. Smith; T. Smith; Wanke;
and Yarc
NOES: None
ABSTENTIONS: Kim
ABSENT: Fascenelli (Alternate); Jones; Schott (Alternate); Steel;
Tinajero; Withers; and a representative from YLWD
Chair Sebourn adjourned the meeting of the Board of Directors, Orange County
Sanitation District Financing Corporation at 7:15 p.m.
......................................
12/14/2016 Minutes of Board Meeting Page 16 of 17
Chair Seboum reconvened the meeting of the Board of Directors, Orange County
Sanitation District at 7:15 p.m.
AB 1234 REPORTS:
Director Ferryman provided an update on the NWRI General Manager recruitment.
INFORMATION ITEMS:
None.
CLOSED SESSION:
CONVENED IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE SECTION
54956.8:
The Board convened in closed session at 7:16 p.m. to discuss two items. Confidential
minutes of the Closed Session have been prepared in accordance with the above
Government Code Section and are maintained by the Clerk of the Board in the Official
Book of Confidential Minutes of Board and Committee Closed Session Meetings.
Director Nagel recused himself and left the meeting during Item No. CS-2.
RECONVENED IN REGULAR SESSION:
The Board reconvened in regular session at 7:28 p.m.
CONSIDERATION OF ACTION, IF ANY, ON MATTERS CONSIDERED IN CLOSED
SESSION:
General Counsel Brad Hogin did not provide a report.
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS,
IF ANY:
Director Kring wished everyone happy holidays and a happy new year.
ADJOURNMENT:
At 7:29 p.m. Chair Sebourn adjourned the meeting until the Regular Board Meeting on
January 25, 2017 at 6:00 p.m.
Submitted by:
Kelly A. Lore
Clerk of the Board
12/14/2016 Minutes of Board Meeting Page 17 of 17
BOARD OF DIRECTORS Meeting Date TOBtl.ofDir.
Ot/25/ll
AGENDA REPORT Item Number Them number
a
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of 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 5.75% per annum, with Van Law Food Products, Inc., in a form approved by General
Counsel.
BACKGROUND
Van Law Food Products, Inc. is the holder of an industrial wastewater discharge permit
issued by the Orange County Sanitation District(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 ($799,041.26) 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 24-
month deferred payment agreement with this permittee requiring monthly payment terms
plus interest of 5.75% per annum.
RELEVANT STANDARDS
• Cost effective method to ensure collection of monies owed by customer
• Exceptional Customer Service by resolving payment issue with customer
PROBLEM
Van Law Food Products, Inc. is past due on their invoices and owes $799,041.26.
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 approved,
the Sanitation District would file an administrative complaint for permit suspension until
the invoices are paid.
Page 1 of 2
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 Sanitation District will increase when third quarter
invoices are issued.
FINANCIAL CONSIDERATIONS
The deferred payment agreement complies with Resolution No. OCSD 11-04.
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—Van Law Food Products, Inc.
• AppendixA—Amortization Schedule
Page 2 of 2
DEFERRED PAYMENT AGREEMENT
THIS AGREEMENT, is entered into, to be effective February 1, 2017, 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 Van Law Food Products, Inc.
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. "Van Law Food Products, Inc." 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 2325 Moore Ave., Fullerton, California.
D. District has issued to Permittee Invoice No.'s 910035, 910098, 530402,
and 530720 in the amount of$799,041.26 for user fees then due and owing to the
District.
E. Van Law Food Products, Inc. has failed to pay the presently owing sum of
$799,041.26 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 Van Law Food Products, Inc. intend to provide additional
time for Van Law Food Products, Inc. to pay to District the amounts presently due on
Invoice No.'s 910035, 910098, 530402, and 530720 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 Van Law Food
Products, Inc. agree as follows:
AGREEMENT
1. Permittee shall make payments (including principal and interest)to the
District, pursuant to the attached payment schedule (Appendix A).
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. Van Law Food Products, Inc. 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 Van Law Food Products, Inc. by District, and shall
additionally be deemed a breach of this Agreement, thereby giving rise to all legal
2
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 Van Law Food Products, Inc.' current failure to pay Invoice
No.'s 910035, 910098, 530402, and 530720. This provision to refrain from instituting
such proceedings shall be effective with regard to Invoice No.'s 910035, 910098,
530402, and 530720 as long as Van Law Food Products, Inc. remains in compliance
with the terms of this Agreement.
6. Should any litigation be commenced between the District and
Van Law Food Products, Inc. regarding enforcement of this Agreement, or the rights
and any duties of the parties in relation thereto, the prevailing party in such litigation
shall be entitled, in addition to such other relief as may be granted, to a reasonable sum
as and for its attorney fees and costs in the litigation which shall be determined by the
court in such litigation or in a separate action brought for that purpose.
7. Nothing in this Agreement shall affect Van Law Food Products, Inc.
obligation to pay current and/or future charges for use of District's sewerage system or
Van Law Food Products, Inc.' 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.
3
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the day and year first written above.
Orange County Sanitation District
BY:
Gregory C. Sebourn, PLS.
Board Chair
ATTEST:
Kelly A. Lore
Clerk of the Board
APPROVED AS TO FORM:
Bradley R. Hogin,
General Counsel
Van Law Food Products, Inc.
By:
John Gilbert, President
4
APPENDIX A
Payment Due Administrative
No. Date Principal Interest Charge Total
1 2/1/2017 $31,495.31 $3,828.74 $25.00 $35,349.05
2 3/1/2017 $31,646.23 $3,677.82 $25.00 $35,349.05
3 4/1/2017 $31,797.87 $3,526.18 $25.00 $35,349.05
4 5/1/2017 $31,950.23 $3,373.82 $25.00 $35,349.05
5 6/1/2017 $32,103.33 $3,220.72 $25.00 $35,349.05
6 7/1/2017 $32,257.16 $3,066.89 $25.00 $35,349.05
7 8/1/2017 $32,411.72 $2,912.33 $25.00 $35,349.05
8 9/1/2017 $32,567.03 $2,757.02 $25.00 $35,349.05
9 10/1/2017 $32,723.08 $2,600.97 $25.00 $35,349.05
10 11/1/2017 $32,879.88 $2,444.17 $25.00 $35,349.05
11 12/1/2017 $33,037.43 $2,286.62 $25.00 $35,349.05
12 1/1/2018 $33,195.73 $2,128.32 $25.00 $35,349.05
13 2/1/2018 $33,354.79 $1,969.26 $25.00 $35,349.05
14 3/1/2018 $33,514.62 $1,809.43 $25.00 $35,349.05
15 4/1/2018 $33,675.21 $1,648.84 $25.00 $35,349.05
16 5/1/2018 $33,836.57 $1,487.48 $25.00 $35,349.05
17 6/1/2018 $33,998.70 $1,325.35 $25.00 $35,349.05
18 7/1/2018 $34,161.61 $1,162.44 $25.00 $35,349.05
19 8/1/2018 $34,325.30 $998.75 $25.00 $35,349.05
20 9/1/2018 $34,489.78 $834.27 $25.00 $35,349.05
21 10/1/2018 $34,655.04 $669.01 $25.00 $35,349.05
22 11/1/2018 $34,821.10 $502.95 $25.00 $35,349.05
23 12/1/2018 $34,987.95 $336.10 $25.00 $35,349.05
24 1/1/2019 $35,155.60 $168.45 $25.00 $35,349.05
Totals $799,041.26 $48,735.96 $600.00 $848,377.22
BOARD OF DIRECTORS Meeting Date TOBE.Or Dir.
-- Ol/zs/17
AGENDA REPORT ItemNumber IemNumber
s
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Ed Torres, Director of Operations and Maintenance
SUBJECT: TAYLOR-DUNN CART PURCHASE FROM YALE CHASE EQUIPMENT
AND SERVICES, INC.
GENERAL MANAGER'S RECOMMENDATION
A. Authorize the award of a sole source purchase of nineteen (19) Taylor-Dunn
electric carts from Yale Chase Equipment and Services, Inc., in accordance with
03/28/01 Minute Order 12(C)(2), for a total cost of $212,127 to include tax and
delivery; and
B. Approve a contingency of$10,606 (5%).
BACKGROUND
The Orange County Sanitation District (Sanitation District) has approximately 180 carts.
Staff uses the carts to travel throughout the treatment plants. Carts are used in place of
cars or trucks to reduce costs and pollution. The Sanitation District's FY 2016-17 budget
provides for replacement of 19 carts that are at the end of their useful life or that require
excessive maintenance to keep operational.
In 2001, the Sanitation District recognized Taylor-Dunn as the Sanitation District's
standard and sole manufacturer for future electric cart purchases. The Board of Directors
(Board) recognized the need to reduce maintenance costs associated with multiple
vendors, training costs, and parts/ warehouse costs. In addition, Taylor-Dunn provides
carts to many of the public agencies in our area, including schools, water districts, and
other municipalities. The Sanitation District has found Taylor-Dunn units more reliable
than other manufacturers and are able to handle transporting heavy tools and materials,
and hold up to salt air.
RELEVANT STANDARDS
• Efficiency efforts reduce the cost to provide the current service level or standard
• Consider life-cycle costs in all decisions
PROBLEM
The Sanitation District identified 18 carts for replacement in FY 2016-17 and one new
addition for the Operations and Maintenance division. The carts that need replacement
Page 1 of 2
are extremely corroded due to exposure to salt air or cannot be properly maintained due
to age.
PROPOSED SOLUTION
Procure 19 replacement carts.
TIMING CONCERNS
Staff uses the carts to travel through the treatment plants and deliver parts, materials,
and tools to a project location. The carts need to be removed from service due to
corrosion or inability to maintain them. Without carts, work assignments would be slowed
down.
RAMIFICATIONS OF NOT TAKING ACTION
If these vehicles are not replaced, we would incur excessive maintenance costs and
increased exposure to safety and reliability issues. In addition, delaying the purchase
would result in increased travel time and decreased efficiency associated with moving
parts, tools, and staff throughout the treatment plants.
PRIOR COMMITTEE/BOARD ACTIONS
March 2001 - Minute Order 12(C)(2) - Authorized the Sanitation District to recognize
Taylor-Dunn as the Sanitation District's standard and sole manufacturer for future electric
cart purchases without future Board approval.
ADDITIONAL INFORMATION
The carts will be purchased from Yale Chase Equipment and Services, Inc. as they are
the only authorized exclusive dealer for Taylor-Dunn products in Los Angeles, Orange,
Riverside, and San Bernardino counties.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. These items have been budgeted in the 2016-17 & 2017-18 Capital
Equipment Budget (Proposed Capital Equipment Budget Detail, Section 8, pg. 104).
Date of Approval Contract Amount Contingency
1/25/2017 $212,126.79 $10,606
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 TOBE.Or Dir.
-- Ol/zs/17
AGENDA REPORT Item Item
fi
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH ORANGE COUNTY
EMPLOYEES' RETIREMENT SYSTEM REGARDING PAYMENT OF
UNFUNDED ACTUARIAL ACCRUED LIABILITIES
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 17-01 entitled; "A Resolution of the Board of Directors of the
Orange County Sanitation District authorizing the General Manager to enter into a
Memorandum of Understanding with the Orange County Employees' Retirement System
establishing the terms to recognize and apply the District's full satisfaction of its Unfunded
Accrued Actuarial Liability and deferred Unfunded Accrued Actuarial Liability."
BACKGROUND
On November 1, 2016, the Orange County Sanitation District(Sanitation District) made an
Unfunded Accrued Actuarial Liability (UAAL) payment totaling $39,116,110 in its defined
pension plan administered by the Orange County Employee's Retirement System
(OCERS), which paid off both the Sanitation District's UAAL and proportionate share of
the deferred losses not yet recognized in the December 31, 2015 actuarial valuation
(deferred investment loss). As a result of the Sanitation District paying off the UAAL and
making the additional payment on the deferred losses, OCERS' actuary recommended
that a bookkeeping account be created because the deferred losses are not yet part of the
UAAL as reported in the December 31, 2015 Actuarial Valuation. The bookkeeping
account provides a mechanism to track the contributions made related to the deferred
losses. The balance in the account will not be included immediately as valuation assets
and therefore will not be used as part of the calculation of UAAL as of December 31, 2016.
Instead, the balance in the account will be used to offset UAAL as it is recognized in future
valuations. The OCERS Board of Retirement approved the bookkeeping account at its
December 19, 2016 meeting with direction to staff to memorialize the terms and conditions
under which the OCERS shall recognize and apply the balance in the new bookkeeping
account in future valuations.
OCERS drafted a Memorandum of Understanding (MOU) that specifies how the
contributions made by the Sanitation District will be accounted for by OCERS. including
how interest will be applied and when balances in the bookkeeping account will be moved
out of the account and become valuation assets to cover UAAL. The Sanitation District's
General Counsel has reviewed the MOU and drafted Resolution OCSD 17-01, which, if
approved, will give the General Manager the authority to execute the MOU between
OCERS and Sanitation District.
Page 1 of 3
RELEVANT STANDARDS
• Ensure the public's money is wisely spent
PROBLEM
There is currently no mechanism to track the contributions made related to the deferred
losses. The balance in the account will not be included immediately as valuation assets
and, therefore, will not be used as part of OCERS calculation of the UAAL as of
December 31, 2016. Instead, the balance in the account needs to offset the UAAL as it is
recognized in future valuations.
PROPOSED SOLUTION
The bookkeeping account provides a mechanism to track the contributions made related
to the deferred losses. The balance in the account will not be included immediately as
valuation assets and, therefore, will not be used as part of the calculation of UAAL as of
December 31, 2016. Instead, the balance in the account will be used to offset UAAL as it
is recognized in future valuations. The OCERS Board of Retirement approved the
bookkeeping account at its December 19, 2016 meeting with direction to staff to
memorialize the terms and conditions under which the OCERS shall recognize and apply
the balance in the new bookkeeping account in future valuations.
TIMING CONCERNS
OCERS approved the MOU at its January 17, 2017 Board meeting.
RAMIFICATIONS OF NOT TAKING ACTION
OCERS has no direction from the Sanitation District on an agreed upon procedure for
tracking the UAAL contributions made by the Sanitation District related to the deferred
investment losses.
PRIOR COMMITTEE/BOARD ACTIONS
October 2016-Board approved up to$40 million pay-down against its UAAL with OCERS.
July 2015 - Board approved the FY 2015-16 Budget Update, which included a line item for
the pay-down of$50 million in UAAL with OCERS.
July 2014-Board action approved a $125 million pay-down against its UAAL with OCERS.
FINANCIAL CONSIDERATIONS
N/A
Page 2 of 3
ATTACHMENT
The following attechment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.com) with the complete agenda package:
• Resolution No. OCSD 17-01
• Memorandum of Understanding
Page 3 of 3
RESOLUTION NO. OCSD 17-01
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE
COUNTY SANITATION DISTRICT AUTHORIZING THE GENERAL
MANAGER TO ENTER INTO A MEMORANDUM OF UNDERSTANDING
WITH THE ORANGE COUNTY EMPLOYEES' RETIREMENT SYSTEM
ESTABLISHING THE TERMS TO RECOGNIZE AND APPLY THE
DISTRICT'S FULL SATISFACTION OF ITS UNFUNDED ACCRUED
ACTUARIAL LIABILITY AND DEFERRED UNFUNDED ACCRUED
ACTUARIAL LIABILITY.
WHEREAS, as a participating employer in the Orange County Employees'
Retirement System ("OCERS"), the Orange County Sanitation District ("District")
contributes to OCERS on an annual basis such contributions as OCERS determines are
due and payable to OCERS from the District, as an employer, to help fund the retirement
and other benefits due to District employees and their beneficiaries; and
WHEREAS, the District's annual contributions as determined by OCERS are
currently calculated as a percentage of pensionable payroll that includes both a normal
contribution rate ("Normal Cost") and a rate that reflects the amortization of an unfunded
accrued actuarial liability ("UAAL") attributable to the District, pursuant to Government
Code sections 31453 and 31453.5; and
WHEREAS, as of November 1, 2016, the total UAAL attributable to the District was
$5,587,004; and
WHEREAS, as of November 1, 2016, an additional UAAL attributable to the District
on the books of OCERS totaled $33,529,106 ("Deferred UAAL"), which amount has been
deferred and is projected to be due and payable by the District in amortizing installments
commencing July 1, 2018; and
WHEREAS, the amortizing installments of District's Deferred UAAL in any future
year may be more or less than the total UAAL attributable to the District in such future
year("Actual UAAL"); and
WHEREAS, on or about November 1, 2016, the District contributed the sum of
$39,116,110 to OCERS in full satisfaction of its UAAL and Deferred UAAL; and
WHEREAS, the District and OCERS wish to enter into a Memorandum of
Understanding ("MOU") to set forth the terms and conditions under which OCERS shall
recognize and apply the District's Contribution.
1215205.1 OCSD 17-01-1
NOW, THEREFORE, the Board of Directors of Orange County Sanitation District,
DOES HEREBY RESOLVE, DETERMINE, AND ORDER:
Section 1: The above recitals are true and correct and are incorporated herein by
reference.
Section 2: That the General Manager, or his designee, be, and is hereby,
authorized and directed to enter into a Memorandum of Understanding to set forth the
terms and conditions under which OCERS shall recognize and apply the District's
contribution of contribution of $39,116,110 to OCERS in full satisfaction of its UAAL and
Deferred UAAL.
Section 3: The Clerk of the Board shall certify to the adoption of this Resolution.
PASSED AND ADOPTED at a regular meeting of the Board of Directors held
January 25, 2017.
Gregory C. Sebourn
Board Chairman
Orange County Sanitation District
ATTEST:
Kelly A. Lore
Clerk of the Board
Orange County Sanitation District
APPROVED AS TO FORM:
Bradley R. Hogin
General Counsel
Orange County Sanitation District
1215205.1 OCSD 17-01-2
STATE OF CALIFORNIA )
ss
COUNTY OF ORANGE )
I, Kelly A. Lore, Clerk of the Board of Directors of the Orange County Sanitation District,
do hereby certify that the foregoing Resolution No. OCSD 17-01 was passed and adopted
at a regular meeting of said Board on the 251h day of January 2017, 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 2511 day of January 2017.
Kelly A. Lore
Clerk of the Board of Directors
Orange County Sanitation District
1215205.1 OCSD 17-01-3
MEMORANDUM OF UNDERSTANDING
This Memorandum of Understanding ("MOU") is entered into effective the 1st day of
November, 2016, by and between the Orange County Employees' Retirement System
("OCERS") and the Orange County Sanitation District ("District"), by and through the
parties' respective governing bodies.
WHEREAS, OCERS is a multiple employer trust fund that provides retirement, disability
and other benefits to the active, deferred and retired employees of the County of Orange,
the District and other participating employers, and their beneficiaries; and
WHEREAS, The Board of Retirement of OCERS has the sole, exclusive and plenary
constitutional and statutory authority to administer the retirement system and invest the
funds of the system for the benefit of its members and their beneficiaries; and
WHEREAS, as a participating employer in OCERS, District contributes to OCERS on an
annual basis such contributions as OCERS determines are due and payable to OCERS
from District, as an employer, to help fund the benefits referred to above; and
WHEREAS, District's annual contributions as determined by OCERS currently are
calculated as a percentage of pensionable payroll that includes both a normal contribution
rate ("Normal Cost") and a rate that reflects the amortization of an unfunded accrued
actuarial liability attributable to District, pursuant to Government Code sections 31453 and
31453.5; and
WHEREAS, as of November 1, 2016, the total unfunded accrued actuarial liability
attributable to the District ("UAAL") was $5,587,004; and
WHEREAS, as of November 1, 2016, an additional unfunded accrued actuarial liability
attributable to District on the books of OCERS totaled $33,529,106 ("Deferred UAAL"),
which amount has been deferred and is projected to be due and payable by the District
in amortizing installments commencing July 1, 2018; and
WHEREAS, the amortizing installments of District's Deferred UAAL in any future year
may be more or less than the total unfunded accrued actuarial liability attributable to the
District in such future year ("Actual UAAL"); and
WHEREAS, on or about November 1, 2016, the District contributed the sum of
$39,116,110 to OCERS in full satisfaction of its UAAL and Deferred UAAL
("Contribution"); and
WHEREAS, the District and OCERS wish to enter into this MOU to set forth the terms
and conditions under which the OCERS shall recognize and apply District's Contribution;
and
1
WHEREAS, each of the governing bodies of OCERS and District has duly adopted a
resolution formally accepting the terms and conditions of this MOU and authorizing its
executive officer to execute this MOU on its behalf. Copies of such resolutions are
attached hereto and made a part hereof by this reference.
NOW THEREFORE OCERS and the District agree as follows:
1. Crediting of UAAL Portion of Contribution. OCERS agrees to credit$5,269,445 of
the Contribution towards the District's UAAL as of December 31, 2015, due and payable
by District to OCERS as part of its total contribution for the period July 1, 2017 through
and including June 30, 2018. OCERS further agrees to credit $317,559 of the
Contribution towards the District's UAAL as of December 31, 2016, due and payable by
District to OCERS as part of its total contribution for the period July 1, 2018 through and
including June 30, 2019. No portion of the Contribution shall be credited towards the
Normal Cost portion of the District's employer contribution for such periods. OCERS shall
further recognize the above credits in all financial statements and other reports prepared
in accordance with generally accepted accounting principles and as required by the
Government Accounting Standards Board. Upon being credited, these amounts shall be
considered as "valuation assets" to be counted against the liabilities of the District in
calculating its share of future unfunded accrued actuarial liabilities.
2. Crediting of Deferred UAAL Portion of Contribution.
A. Effective November 1, 2016, OCERS shall establish a reserve account on
its books and records ("OCSD Reserve Account") and shall credit the portion of
the Contribution that represents payment of the District's Deferred UAAL, in the
amount of$33,529,106, to the OCSD Reserve Account.
B. Commencing as of December 31, 2016 and annually thereafter until there
is no remaining balance of funds in the OCSD Reserve Account, OCERS shall
transfer from the OCSD Reserve Account into OCERS' Employer Reserve
Account the amount necessary to satisfy the Actual UAAL attributed to the District,
as determined by OCERS pursuant to Government Code sections 31453 and
31453.5. The intent of this transfer is to ensure that the District's future annual
employer contribution obligation to OCERS shall consist of either the Normal Cost
portion only, or the Normal Cost and amortizing installments of only such amount
of future Actual UAAL that exceeds the amount of funds remaining in the OCSD
Reserve Account.
C. The amounts in the OCSD Reserve Account from time to time shall not be
considered "valuation assets"on OCERS' books and records. Such amounts shall
not be counted in calculating the District's share of future Actual UAAL, but shall
be held and transferred only as described in Par. 2.B. above.
- 2 -
D. OCERS shall not credit any amount of the OCSD Reserve Account to the
District's Normal Cost portion of its annual employer contribution at any time. The
District shall remain responsible for making its full Normal Cost contributions to
OCERS as determined from time to time.
3. Commingling of Funds. Upon crediting by OCERS, all amounts of the Contribution
shall be commingled with all other funds and assets of the OCERS' trust fund, to be
administered, invested and disbursed within the sole, exclusive and plenary authority of
the OCERS' Board of Retirement, as provided by law. None of the Contribution shall
remain property of the District, nor shall any such funds be disbursed to or on behalf of
the District for any purpose other than the payment of benefits to OCERS' members and
administrative and investment expenses of the retirement system.
4. Crediting of Interest. OCERS shall credit (or debit) interest to the OCSD Reserve
Account at the actual annual rate of return (or loss) experienced by OCERS' entire trust
fund on a calendar year basis. Interest crediting (or debiting) for the calendar year shall
occur on or before March 31 of each subsequent year, on the balance in the OCSD
Reserve Account as of December 31 of the immediately preceding year.
5. OCERS' Sole Right to Determine Contributions and Appropriations.
Notwithstanding any provision in this MOU to the contrary, the parties acknowledge and
agree that OCERS has the sole, exclusive and plenary authority to determine employer
and employee contribution rates and appropriation amounts; that OCERS may change,
amend or otherwise alter its practices and policies regarding the setting of contribution
rates and amounts of appropriations to be made by its participating employers, including
but not limited to District; and that District is obligated to make the contributions and
appropriations required by OCERS, all as provided by law.
6. Additional Provisions.
A. This MOU shall be governed by and interpreted under the laws of the State
of California applicable to contracts made and to be performed entirely within the
State.
B. This MOU sets forth the entire agreement between OCERS and District with
regard to the subject matter herein, and fully supersedes any and all prior
agreements and understandings between them pertaining to the subject matter of
this MOU. The parties agree that no change to or modification of this MOU shall
be valid or binding unless it is in writing and signed by an authorized signatory for
each of the parties.
C. The language of all parts in this MOU shall be construed as a whole,
according to its fair meaning, and not strictly for or against either party. Should
any provision in this MOU be declared or determined to be illegal or invalid, the
validity of the remaining parts, terms, or provisions shall not be affected and the
illegal or invalid part, term, or provision shall be deemed not to be part of this MOU,
and all remaining provisions shall remain valid and enforceable. The parties further
- 3 -
agree that in the event any provision of this MOU is held to be illegal or
unenforceable, each will fully cooperate with the other to effectuate its purpose to
conform the provision(s) to law.
D. This MOU is deemed to have been drafted jointly by the parties. Any
uncertainty or ambiguity shall not be construed for or against any party, since both
parties have participated in the negotiations and drafting of this MOU.
E. This MOU may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the
same instrument. Furthermore, signatures delivered via electronic transmission
shall have the same force, validity and effect as the originals thereof.
F. Should any dispute arise between the parties as to their respective rights
and obligations under this MOU, the parties will make a good faith effort to resolve
their differences informally and without resort to legal process. Should any such
dispute remain unresolved after 90 days after one party notifies the other party in
writing of the dispute (unless shortened or extended by mutual agreement of the
parties), either party may commence legal action as provided by law to resolve the
matter. In any such legal action, the prevailing party shall be entitled to an award
of its reasonable attorney's fees and costs of suit.
7. Term. This agreement shall terminate and be of no further force or effect at such
time as there is no remaining balance in the OCSD Reserve Account.
WITNESS THE EXECUTION HEREOF on the day and year first hereinabove written.
ORANGE COUNTY SANITATION ORANGE COUNTY EMPLOYEES'
DISTRICT RETIREMENT SYSTEM
By By
Authorized Signatory Authorized Signatory
Name: James D. Herberg Name:
Title: General Manager Title:
Dated: January 25, 2017 Dated:
-4-
BOARD OF DIRECTORS Meeting Date TOBE.Or Dk.
-- Ol/zs/17
AGENDA REPORT Item Item
7
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 2016
GENERAL MANAGER'S RECOMMENDATION
Receive and file the report of the Investment Transactions for the month of December
2016.
BACKGROUND
The CA Government Code requires that a monthly report of investment transactions be
provided to the legislative body. Attached is the monthly report of investment transactions
for the month ended December 31, 2016.
RELEVANT STANDARDS
• CA Government Code Section 53607
PRIOR COMMITTEE/BOARD ACTIONS
N/A
FINANCIAL CONSIDERATIONS
N/A
ATTACHMENT
The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website
(mm w.ocsd.com) with the complete agenda package:
• Report of the Investment Transactions for the month ended December 31, 2016
Page 1 of 1
C." Orange County Sanitation District Consolidated Transaction Ledger
Account#10283 11/30/16 Thing 12/31/16
Transaction Settlement Acq/Disp Interest
Type Data CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss
ACQUISITIONS
Purchase 12/01/2016 261908107 174,019.80 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 174,019.80 0.00 174,019.80 0.00
Purchase 12/02/2016 261908107 653.25 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 653.25 0.00 653.25 0.00
Purchase 12/02/2016 261908107 834.05 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 834.05 0.00 834.05 0.00
Purchase 12/05Q016 261908107 11,040.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 11,040.00 0.00 11,040.00 0.00
Purchase 12/06/2016 912796KEB 1,250,000.00 US Treasury Bill 99.948 0.37% 1,249,349.22 0.00 1,249,349.22 0.00
0.37%Due 1/26/2017
Purchase 12/07/2016 261908107 11,014.18 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 11,014.18 0.00 11,014.18 0.00
Purchase 12/12/2016 261908107 43,750.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 43,750.00 0.00 43,750.00 0.00
Purchase 12/14/2016 261908107 28,125.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 28,125.00 0.00 28,125.00 0.00
Purchase 12/14/2016 912828T67 6,000,000.00 US Treasury Note 96.895 1.92% 5,813,691.98 9,116.02 5,822,808.00 0.00
1.25%Due 10/31/2021
Purchase 12/15/2016 261908107 39,903.27 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 39,903.27 0.00 39,903.27 0.00
Purchase 12/15/2016 261908107 2,096.58 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 2,096.58 0.00 2,096.58 0.00
Purchase 12/15/2016 261908107 1,859.13 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,859.13 0.00 1,859.13 0.00
Purchase 12/15/2016 261908107 2,706.83 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 2,706.83 0.00 2,706.83 0.00
Purchase 12/15/2016 261908107 3,657.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 3,657.00 0.00 3,657.00 0.00
Purchase 12/15/2016 261908107 1,702.02 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,702.02 0.00 1,702.02 0.00
Purchase 12/15/2016 261908107 23.86 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 23.86 0.00 23.86 0.00
Purchase 12/15/2016 261908107 217,359.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 217,359.00 0.00 217,359.00 0.00
Purchase 12/15/2016 261908107 194,725.17 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 194,725.17 0.00 194,725.17 0.00
Purchase 12/15/2016 261908107 168,337.27 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 168,337.27 0.00 168,337.27 0.00
Purchase 12/15/2016 261908107 247,849.46 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 247,849.46 0.00 247,849.46 0.00
Purchase 12/15/2016 261908107 2,742.67 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 2,742.67 0.00 2,742.67 0.00
Purchase 12/16/2016 261908107 1,139.94 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,139.94 0.00 1,139.94 0.00
Purchase 12/19/2016 261908107 1,000,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,000,000.00 0.00 1,000,000.00 0.00
Purchase 12/19/2016 261908107 1,010,133.33 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,010,133.33 0.00 1,010,133.33 0.00
Purchase 12/19/2016 261908107 92,248.47 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 92,248.47 0.00 92,248.47 0.00
Purchase 12/19/2016 261908107 248,684.56 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 248,684.56 0.00 248,684.56 0.00
Purchase 12/19/2016 313397AV3 2,000,000.00 FHUMC Discount Note 99.958 0.48% 1,999,164.44 0.00 1,999,164.44 0.00
0.47%Due 1/20/2017
Purchase 12/20/2016 261908107 255.16 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 255.16 0.00 255.16 0.00
Cheadle,Asset Management-CONFIDENTIAL E. Wion Tme:116120178:17:07 AM
C." Orange County Sanitation District Consolidated Transaction Ledger
Account#10283 11/30/16 Thm 12/31/16
Transaction Settlement Acq/Disp Interest
,Type Data CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss
ACQUISITIONS
Purchase 12/20/2016 261908107 283.20 Dreyfus Tmy/Agcy Cash Management 521 1.000 0.21 % 283.20 0.00 283.20 0.00
Purchase 12/20/2016 261908107 593.14 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 593.14 0.00 593.14 0.00
Purchase 12/20/2016 261908107 201.13 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 201.13 0.00 201.13 0.00
Purchase 12/20/2016 261908107 1,714.94 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,714.94 0.00 1,714.94 0.00
Purchase 12/20/2016 89113E7K6 1,150,000.00 Toronto Dominion Yankee CD 99.997 1.15% 1,149,964.14 8,412.57 1,158,376.71 0.00
I A 5%Due 5/3/2017
Purchase 12/21/2016 261908107 227,144.23 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 227,144.23 0.00 227,144.23 0.00
Purchase 12/21/2016 313385BF2 1,000,000.00 FHLB Discount Note 99.944 0.51 % 999,444.44 0.00 999,444.44 0.00
0.5%Due WO/2017
Purchase 12/22/2016 261908107 37,500.00 Dreyfus Trey/Agoy Cash Management 521 1.000 0.21 % 37,500.00 0.00 37,500.00 0.00
Purchase 12/22/2016 89233GV29 6,300,000.00 Toyota Mawr Credit Discount CP 99.238 1.26% 6,251,999.25 0.00 6,251,999.25 0.00
1.23%Due 8/2/2017
Purchase 12/22/2016 912828TM 4,000,000.00 US Treasury Note 95.922 2.03% 3,836,888.40 10,260.99 3,847,149.39 0.00
I A 25%Due 9130/2021
Purchase 12/22/2016 912828XE5 5,000,000.00 US Treasury Note 99.328 1.70% 4,966,423.00 4,532.97 4,970,955.97 0.00
1.5%Due M1/2020
Purchase 12/23/2016 02665JNR7 900,000.00 American Honda Corp Discount CP 99.933 0.74% 899,397.75 0.00 899,397.75 0.00
0.73%Due 1/25/2017
Purchase 12/23/2016 313385BC9 12,000,000.110 FHLB Discount Note 99.953 0.49% 11,994,400.00 0.00 11,994,400.00 0.00
0.48%Due 1/27/2017
Purchase 12/23/2016 313385DL7 6,000,000.00 FHLB Discount Note 99.862 0.55% 5,991,734.16 0.00 5,991,734.16 0.00
0.55%Due 3/24/2017
Purchase 12/23/2016 313589BXO 1,920,000.00 FNMA Discount Note 99.927 0.49% 1,918,606.08 0.00 1,918,606.08 0.00
0.48%Due 211512017
Purchase 12/23/2016 69372ANT5 2,000,000.00 Paccar Financial Discount CP 99.932 0.71 % 1,998,638.88 0.00 1,998,638.88 0.00
0.7%Due 1/27/2017
Purchase 12/23/201674005HMW9 2,000,000.00 Pal Discount CP 99.987 0.70% 1,999,731.66 0.00 1,999,731.66 0.00
0.69%Due 12I30/2016
Purchase 12/23/2016 89233GRL2 1,000,000.00 Toyota Mawr Credit Discount CP 99.669 1.03% 996,689.44 0.00 996,689.44 0.00
1.01%Due 4/20/2017
Purchase 12/23/2016 9127961,75 15,000,000.00 US Treasury Bill 99.813 0.58% 14,971,999.58 0.00 14,971,999.58 0.00
0.57%Due 4/20/2017
Purchase 12/23/2016 912828SC5 10,000,000.00 US Treasury Note 100.051 0.39% 10,005,111.63 34,476.90 10,039,588.53 0.00
0.875%Due 1131=17
Purchase 12/23/2016 912828SC5 6,000,000.00 US Treasury Note 100.051 0.39% 6,003,066.98 20,686.14 6,023,753.12 0.00
0.875%Due 1131/2017
Purchase 12/27/2016 261908107 3,188.25 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 3,188.25 0.00 3,188.25 0.00
Chandler Asset Management-CONFIDENTIAL Execution Time:1/6Y 0178:17:07 AM
Orange County Sanitation District Consolidated Transaction Ledger
Account 410283 11/30/16 Thru 12/31/16
Thansaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
ACQUISITIONS
Purchase 12/27/2016 261908107 181.21 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 181.21 0.00 181.21 0.00
Purchase 12/27/2016 261908107 294.34 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 294.34 0.00 294.34 0.00
Purchase 12/27/2016 261908107 8,410.76 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 8,410.76 0.00 8,410.76 0.00
Purchase 12/27/2016 261908107 1,676.92 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,676.92 0.00 1,676.92 0.00
Purchase 12/27/2016 261908107 528.65 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 528.65 0.00 528.65 0.00
Purchase 12/27/2016 261908107 19,118.34 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 19,118.34 0.00 19,118.34 0.00
Purchase 12/27/2016 261908107 7,394.94 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 7,394.94 0.00 7,394.94 0.00
Purchase 12/27/2016 261908107 69.98 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 69.98 0.00 69.98 0.00
Purchase 12/27/2016 261908107 5,385.81 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 5,385.81 0.00 5,385.81 0.00
Purchase 12/27/2016 261908107 959.28 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 959.28 0.00 959.28 0.00
Purchase 12/27/2016 261908107 884.32 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 884.32 0.00 884.32 0.00
Purchase 12/27/2016 261908107 12,153.24 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 12,153.24 0.00 12,153.24 0.00
Purchase 12/27/2016 261908107 624.59 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 624.59 0.00 624.59 0.00
Purchase 12/27/2016 313397BG5 5,000,000.00 FHLMC Discount Nate 99.954 0.48% 4,997,715.30 0.00 4,997,715.30 0.00
0.47%Due 1/31/2017
Purchase 12Q8/2016 261908107 4,876.62 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 4,876.62 0.00 4,876.62 0.00
Purchase 12/28/2016 313397BG5 12,000,000.00 FHLMC Discount Note 99.956 0.48% 11,994,673.33 0.00 11,994,673.33 0.00
0.47%Due 1/31/2017
Purchase 12/28Q016 31398ADM1 2,500,000.00 FNMA Note 102.137 0.67% 2,553,425.00 5,972.22 2,559,397.22 0.00
5.375%Due 6112/2017
Purchase 12/29/2016 261908107 6,293.36 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 6,293.36 0.00 6,293.36 0.00
Purchase 12/29/2016 9128281,189 4,500,000.00 US Treasury Note 97.871 1.92% 4,404,214.29 25,388.93 4,429,603.22 0.00
1.375%Due 1131/2021
Purchase 12/29/2016 912828SN1 5,000,000.00 US Treasury Note 100.328 1.35% 5,016,423.00 18,543.96 5,034,966.96 0.00
1.5%Due 3/31/2019
Purchase 12/29/2016 912828U65 7,000,000.00 US Treasury Note 98.578 2.06% 6,900,492.20 9,759.62 6,910,251.82 0.00
1.75%Due 11130/2021
Purchase 12/30/2016 261908107 2,000,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 2,000,000.00 0.00 2,000,000.00 0.00
Purchase 12/31/2016 261908107 16,250.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.39% 16,250.00 0.00 16,250.00 0.00
Subtotal 125,380,587.25 124,773,831.40 147,150.32 124,920,981.72 0.00
Secunty 12/01/2016 261908107 5,600,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 5,600,000.00 0.00 5,600,000.00 0.00
Contnbution
Cbands,Asset Management-CONFIDENTIAL E. Wion Time:1/6Q0178:17:07 AM
C." Orange County Sanitation District Consolidated Transaction Ledger
Account#10283 11/30/16 Thru 12/31/16
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss
ACQUISITIONS
Security 12/05/2016 261908107 5,600,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 5,600,000.00 0.00 5,600,000.00 0.00
Contribution
Seourily 12/21/2016 261908107 28,300,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 28,300,000.00 0.00 28,300,000.00 0.00
Conboution
Security 12/22/2016 261908107 80,000,000ol) Dreyfus Trsy/Agcy Cash Management 521 1.000 80,000,000.00 0.00 80,000,000.00 0.00
Contribution
Subtotal 119,500,000.00 119,500,000.00 0.00 119,500,000.00 0.00
TOTAL ACQUISITIONS 244,880,587.25 244,273,831.40 147,150.32 244,420,981.72 0.00
DISPOSITIONS
Sale 12/06/2016 261908107 1,249,349.22 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,249,349.22 0.00 1,249,349.22 D.00
Sale 12/14/2016 261908107 5,822,808.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 5,822,808.00 0.00 5,822,808.00 0.00
Sale 12/19/2016 261908107 1,999,164.44 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,999,169.44 0.00 1,999,169.44 0.00
Sale 12/20/2016 261908107 1,158,376.71 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 1,158,376.71 0.00 1,158,376.71 0.00
Sale 12/21Q016 261908107 999,444.44 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 999,444.44 0.00 999,444.44 0.00
Sale 12/22Q016 261908107 8,818,105.36 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.23% 8,818,105.36 0.00 8,818,105.36 0.00
Sale 12/22Q016 261908107 6,251,999.25 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.23% 6,251,999.25 0.00 6,251,999.25 0.00
Sale 12/23Q016 261908107 10,039,588.53 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 10,039,588.53 0.00 10,039,588.53 0.00
Sale 12/23Q016 261908107 46,794,950.67 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 46,794,950.67 0.00 46,794,950.67 0.00
Sale 12/27/2016 261908107 4,997,715.30 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 4,997,715.30 0.00 4,997,715.30 0.00
Sale 12/28/2016 261908107 2,559,397.22 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 2,559,397.22 0.00 2,559,397.22 0.00
Sale 12/28/2016 261908107 11,994,673.33 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.21 % 11,994,673.33 0.00 11,994,673.33 0.00
Sale 12/29/2016 261908107 16,374,822.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.22% 16,374,822.00 0.00 16,374,822.00 0.00
Subtotal 119,060,394.47 119,060,394.47 0.00 119,060,394.47 0.00
Call 12/19/2016 06406HCA5 1,000,000.00 Bank of New York Callable Note Cont. 100.000 2.40% 1,000,000.00 10,133.33 1,010,133.33 0.00
12/18/16
2.4%Due 1/17/2017
Subtotal 1,000,000.00 1,000,000.00 10,133.33 1,010,133.33 0.00
Paydown 12/06/2016 62888UAA8 10,686.26 NCUA Guaranteed Note CM02010-R2Due 100.000 10,686.26 327.92 11,014.18 0.00
11/6/2017
Paydown 12/15/2016 161571HHO ODD Chase CHAIT Pool#2016-A7 100.000 0.00 3,657.00 3,657.00 0.00
1.06%Due 9/1612019
Chandler Asset Management-CONFIDENTIAL E. Wion T. 1/6/20178:17:07 AM
C." Orange County Sanitation District Consolidated Transaction Ledger
Account#10283 11/30/16 Thru 12/31/16
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss
DISPOSITIONS
Paydown 12/15/2016 3133TCE95 1,586.50 FHLMC FSPC E3A 100.000 1,586.50 115.52 1,702.02 0.00
2 892%Due 8/15/2032
Paydown 12/15/2016 31348SWZ3 18.80 FHLMC FH 786064 100.000 18.80 5.06 23.86 0.00
2.262%Due 111/2028
Paydown 12/15/2016 438140AC2 0.00 Honda Auto Receivables 2016.2 A3 100.000 0.00 2,096.58 2,096.58 0.00
1.39%Due 4/15/2020
Paydown 12/15/2016 477877AD6 215,162.69 John Deere Owner Trust 2014-13 A3 100.000 215,162.69 2,196.31 217,359.00 0.00
1.07%Due 1111 5/2 01 8
Paydown 12/15/2016 4778810AC4 0.00 John Deere Owner Trusl2016-AA3 100.000 0.00 2,742.67 2,742.67 0.00
1.36%Due 4/15/2020
Paydown 12/15/2016 47788NAM 0.00 John Deere Owner Trus12016-B A2 100.000 0.00 2,706.83 2,706.83 0.00
1.09%Due 2115/2019
Paydown 12/15/2016 65478WAB1 0.00 Nissan Auto Receivables Owner 2016-C 100.000 0.00 1,859.13 1,859.13 0.00
A2A
1.07%Due 5/15/2019
Paydown 12/15/2016 89231 MAC9 194,360.33 Toyota Auto Receivables Owner 2014-A 100.000 194,360.33 364.84 194,725.17 0.00
0.67%Due 12/15/2017
Paydown 12/15/2016 89231TAB6 167,782.00 Toyota Auto Receivables Owner 2015-C 100.000 167,782.00 555.27 168,337.27 0.00
0.92%Due 2/15/201 B
Paydown 12/15/2016 89236WAC2 244,929.80 Toyota Auto Receivables Owner 2015-A 100.000 244,929.80 2,919.66 247,849.46 0.00
1.12%Due 2/15/2019
Paydown 12/16/2016 3837H4NX9 1.111.18 GNMA P.I#2000-9 100.000 1,111.18 28.76 1,139.94 0.00
9.5%Due 2/16M30
Paydown 12/19/2016 43814GAC4 91,844S1 Honda Auto Receivables 20142 A3 100.000 91,844.61 403.86 92,248.47 0.00
0.77%Due 3/19/201 B
Paydown 12/19/2016 43814NAB1 246,776.57 Honda Auto Receivables 2016-1 A2 100.000 246,776.57 1,907.99 248,6B4.56 0.00
1.01%Due 6/18/2018
Paydown 12/20/2016 36225CAZ9 212.30 GNMA P.I#G280023 100.000 212.30 42.86 255.16 0.00
2.816%Due 12/20/2026
Paydown 12/20/2016 36225CC20 230.17 GNMA P.I#G280068 100.000 230.17 53.03 283.20 0.00
2.817%Due 6/20/2027
Paydown 12/20/2016 36225CN28 444.74 GNMA Pool#G280408 100.000 444.74 148.40 593.14 0.00
2.691%Due 5/20/2030
Paydown 12/20/2016 36225CNM4 182.09 GNMA P.I#G280395 100.000 182.09 19.04 201.13 0.00
2.877%Due 4/20/2030
Paydown 12/20/2016 36225DCB8 1.557.74 GNMA P.I#G280965 100.000 1,557.74 157.20 1,714.94 0.00
2.31%Due 7/20/2034
Paydown 12/21/2016 43813JAC9 226,865.50 Honda Auto Receivables 20141 A3 100.000 226,865.50 278.73 227,144.23 0.00
0.67%Due 11121/2 01 7
Chandler Asset Management-CONFIDENTIAL E. Wion Time 116/20178:17:07 AM
C." Orange County Sanitation District Consolidated Transaction Ledger
Account#10283 11/30/16 Thru 12/31/16
Transaction Settlement Acqi Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount Gain/Loss
DISPOSITIONS
Paydown 12/27/2016 03215PFN4 0.00 AMRESCO Residential Securities 1999-1 100.000 0.00 181.21 181.21 0.00
ADue 6/25/2029
Paydown 12/27/2016 31371NUC7 198.27 FNMA FN 257179 100.000 198.27 96.07 294.34 0.00
4.5%Due 4/1/2028
Paydown 12/27/2016 31376KT22 7,661.00 FNMA FN 357969 100.000 7,661.00 749.76 8,410.76 0.00
5%Due 9/1/2035
Paydown 12/27/2016 31381 PDA3 655.52 FNMA FN 466397 100.000 655.52 1,021.40 1,676.92 0.00
3.4%Due 1 t/l/2020
Paydown 1227/2016 3138EGi 455.84 FNMA FN AL0869 100.000 455.84 72.81 528.65 0.00
4.5%Due 6/1/2029
Paydown 12/27/2016 313MJY35 13,720.82 FHLMC FSPC T-582A 100.000 13,720.82 5,397.52 19,118.34 0.00
6.5%Due 9/25/2043
Paydown 12/27/2016 31397QRED 7,030.89 FNMA FNR 2011-3 FA 100.000 7,030.89 364.05 7,394.94 0.00
OS32%Due 21252041
Paydown 1227/2016 31398VJ98 0.00 FHLMC FHMS K006 A2 100.000 0.00 3,188.25 3,188.25 0.00
4.251%Due 1/252020
Paydown 12/272016 31403GXF4 48.14 FNMA POD1#FN 748678 100.000 48.14 21.84 69.98 0.00
5%Due 10/1/2033
Paydown 12/272016 31406PQYB 4,169.99 FNMA PODI#FN 815971 100.000 4,169.99 1,215.82 5,385.81 0.00
5%Due 3/l2035
Paydown 1227/2016 31406XW75 593.76 FNMA Poo1#FN 823358 100.000 593.76 365.52 959.28 0.00
2.875%Due 211/2035
Paydown 12/272016 31407BXH7 752.08 FNMA PODI#FN 826080 100.000 752.08 132.24 884.32 0.00
5%Due 7/l2035
Paydown 12/272016 31410F4V4 10,706.84 FNMA PODI#FN 888336 100.000 10,706.84 1,446.40 12,153.24 0.00
5%Due 7/l2036
Paydown 1227/2016 31417YAY3 512.51 FNMA Poo1#FN MA0022 100.000 512.51 112.08 624.59 0.00
4.5%Due 4/l/2029
Paydown 12/282016 31403DJZ3 4,144.86 FNMA Pool#745580 100.000 4,144.86 731.76 4,876.62 0.00
5%Due 6/12036
Paydown 12/292016 31396X3Q5 6,277.35 FNMA FNR 2007-114 A6Due 10/27/2037 100.000 6,277.35 16.01 6,293.36 0.00
Subtotal 1,460,679.15 1,460,679.15 37,699.40 1,498,378.55 0.00
Maturity 12/19/2016 21687AMK6 1,000,000.00 Rabobank Nederland NV NY Discount CP 99.575 1,000,000.00 0.00 1,000,000.00 0.00
0.84%Due 12/19/2016
Maturity 12/30/2016 74005HMW9 2,000,000.00 Praxalr Discount CP 99.987 2,000,000.00 0.00 2,000,000.00 0.00
0.69%Due 1 213 0/2 01 6
Subtotal 3,000,000.00 3,000,000.00 0.00 3,000,000.00 0.00
Chandler Asset Management-CONFIDENTIAL Execution Time:116120178:17:07 AM
Orange County Sanitation District Consolidated Transaction Ledger
Account#10263 11/30/16 Third 12/31/16
Transaction Settlement Acq/Disp Interest
Type Date CUSIP Quantity Security Description Price Yield Amount PurlSold Total Amount GainfLoss
DISPOSITIONS
Security 12/01/2016 261908107 5,600,000.00 Dreyfus Trsy/Agcy Cash Management 521 1.000 5,600,000.00 0.00 5,600,000.00 0.00
Withdrawal
Security 12/30/2016 261908107 0.04 Dreyfus Trsy/Agcy Cash Management 521 1.000 0.04 0.00 0.04 000
Withdrawal
Subtotal 5,600,000.04 5,600,000.04 0.00 5,600,000.04 0.00
TOTAL DISPOSITIONS 130,121,073.66 130,121,073.66 47,832.73 130,168,906.39 0.00
OTHER TRANSACTIONS
Interest 12/01/2016 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 12/012016 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 12/12019
Interest 12/05/2016 166764AA8 2,000,000.00 Chevron Coup Callable Note Cont 11/5117 0.000 11,040.00 0.00 11,040.00 0.00
1.104%Due 12/52017
Interest 12/122016 313383HU8 5,000,000.00 FHLB Note 0.000 43,750.00 0.00 43,750.00 0.00
1.75%Due W1212020
Interest 12/142016 3135GOG72 5,000,000.00 FNMA Note 0.000 28,125.00 0.00 28,125.00 0.00
I A 25%Due 12/142018
Interest 12/15/2016 458140AL4 2,000,000.00 Intel Corp Note 0.000 13,500.00 0.00 13,500.00 0.00
1.35%Due 1 211 5 2 01 7
Interest 12/152016 459058EJ8 5,000,000.00 Ind.Bank Recon&Development Note 0.000 25,000.00 0.00 25,000.00 0.00
1%Due 6/1 512 01 8
Interest 12/152016 94988J210 500,000.00 Wells Fargo Bank Callable Note Obly 0.000 1,403.27 0.00 1,403.27 0.00
6/15/2016
1.253%Due 6/15/2017
Interest 12/22/2016 3135GOD75 5,000,000.00 FNMA Note 0.000 37,500.00 0.00 37,500.00 ODD
1.5%Due 6/222020
Interest 12/312016 912828WS5 2,000,000.00 US Treasury Note 0.000 16,250.00 0.00 16,250.00 0.00
1.625%Due 6/30/2019
Subtotal 32,740,000.00 350,588.07 0.00 350,588.07 0.00
Divitlentl 12/02/2016 261908107 7.823,22T28 Dreyfus Trsy/Agcy Cash Management 521 0.000 653.25 0.00 653.25 0.00
Dividend 12/02/2016 261908107 3,425,201.69 Dreyfus Trsy/Agcy Cash Management 521 0.000 834.05 0.00 834.05 0.00
Subtotal 11,2A8,428.97 1,487.30 0.00 1,487.30 0.00
TOTAL OTHER TRANSACTIONS 43,988,428.97 352,075.37 0.00 352,075.37 0.00
Chandler Asset Management-CONFIDENTIAL E. Wion Time 116120178:17:07 AM
STEERING COMMITTEE Meeting Dare TOBd.of Dir.
0 2SI17 01/zs/17
AGENDA REPORT ItemNumber Item Number
z B
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Robert P. Ghirelli, Assistant General Manager
SUBJECT: OUTREACH FOR GROUNDWATER REPLENISHMENT SYSTEM
(GWRS) BOTTLED WATER AND THE 10TH ANNIVERSARY OF THE
GWRS
GENERAL MANAGER'S RECOMMENDATION
Approve $63,000 as the Orange County Sanitation District's share of costs related to
GWRS bottled water outreach efforts.
BACKGROUND
The GWRS is an historic water infrastructure project that has made a world-wide impact
on the public acceptance of water reuse for drinking water purposes. With the passage
of Assembly Bill (AB) 2022 in 2016, allowing the bottling of GWRS water, there is now an
opportunity to promote water recycling to policy makers beyond Orange County in
conjunction with the 10m anniversary of the project.
RELEVANT STANDARDS
• 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 regulators/Stakeholders
PROBLEM
The GWRS has been online for nine years. Media coverage has been positive and has
included prominent media outlets over the course of the last nine years and even
increased in 2015 and early to mid-2016 due to the drought; however, media inquiries are
slowly declining as other topics dominate the media's interest.
The 1011 anniversary of the GWRS will occur in January 2018 and is deserving of
commemoration.
Regulations for Direct Potable Reuse (DPR) are currently being drafted and reviewed by
the state of California. Public acceptance of DPR will be critical to California's water
future.
Page 1 of 3
PROPOSED SOLUTION
Implement an outreach plan that reinforces the Orange County Water District (OCWD)
and Orange County Sanitation District's(Sanitation District)leadership role in water reuse
and maintains relevance in the media. Implement an outreach plan that utilizes a balance
of traditional and nontraditional media tactics to draw more positive impressions on social
media and in national media outlets including GWRS "taste tests" throughout California
and nationwide. Procure the services of a consultant/firm to assist in executing an
outreach plan that has far reaching impacts.
TIMING CONCERNS
The first bottling of GWRS water is tentatively set to occur in January 2017 and be
available for distribution in February 2017. Other agencies qualify under AB 2022 to bottle
advanced purified water in 2017. OCWD and the Sanitation District may have a small
window of opportunity to publicize the GWRS bottled water before other agencies.
RAMIFICATIONS OF NOT TAKING ACTION
Communities that do not have existing groundwater basins or reservoirs to store reused
water are developing plans for DPR. The OCWD and Sanitation District decision to bottle
GWRS water can have a tremendous impact on educating the public, media, and policy
makers, and can serve as an important communications tool to gamer support for DPR
projects and additional Indirect Potable Reuse projects.
The marketing of bottled GWRS water and commemorating the 101h anniversary of GWRS
will help support industry efforts to get support for DPR. It will also keep the GWRS,
OCWD, and the Sanitation District at the forefront of positive media attention and further
solidify the agencies' global leadership role in the water industry for which agencies,
media, and policy makers will seek their expertise.
PRIOR COMMITTEE/BOARD ACTIONS
December 7, 2016 - Authorize $15,000 in the Public Affairs Department budget for the
initial testing and bottling of GWRS water, with the cost of the bottling and testing to be
shared between OCWD and the Sanitation District. Authorize the General Managers of
OCWD and OCSD to approve the label for the first-run of GWRS water bottles.
January 9, 2017-OCWD/Sanitation District staff presented a summary of activities to the
GWRS Steering Committee for discussion and consideration. The Committee directed
staff to go back to their respective Boards for further review and recommendation.
ADDITIONAL INFORMATION
The $126,000, which will be split between OCWD and the Sanitation District will include
the public relations consultant, staffing of events, overall event management, securing
Page 2 of 3
venues for events and displays, developing and creating a pop-up display, and marketing
and media relations, including creation of media kits and media lists.
Below are the costs related to the GW RS bottled water outreach events.
Overall Base Level Budget
Budget Item Projected Cost
Public Relations Consultant $56,500
$4,350/month
Statewide Events $40,000
Roadshow Display $4,500
Sponsorships of Events $25,000
Total $126,000
CEQA
N/A
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item will be funded in the approved FY 2016-17 operating budget. (Line
item: Other, Section 6, Page 12.)
ATTACHMENT
The following attachment(s) may be viewed on-line at the OCSD website (www.ocsd.coml with the
complete agenda package:
N/A
Page 3 of 3
STEERING COMMITTEE Meeting Date TOBA.of Dir.
01/25/17 oils/ 7
AGENDA REPORT Item Number Item Number
3 9
Orange County Sanitation District
FROM: James D. Herberg, General Manager
SUBJECT: GENERAL MANAGER'S FY 2016-2017 WORK PLAN MID-YEAR
UPDATE
GENERAL MANAGER'S RECOMMENDATION
Receive and file the General Manager's FY 2016-2017 Work Plan Mid-Year Update.
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 2016-2017 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 2016 - Proposed General Manager's FY 2016-2017 Work Plan presented to the
Steering Committee for review.
September 2016 - Board of Directors approved the General Manager's FY 2016-2017
Work Plan.
ADDITIONAL INFORMATION
The General Manager's Work Plan includes goals for the fiscal year. At mid-year, six
out of 15 work plan items were completed and nine items are on track to be completed
by, or prior to, the end of the fiscal year and the deadline of the overall Work Plan.
FINANCIAL CONSIDERATIONS
All items included in the General Manager's Work Plan are budgeted in the
FY 2016-2017 Budget.
Page 1 of 2
ATTACHMENT
The following attachment(s) are included in hard copy and may also be viewed on-line at the OCSD
website(www.ocsd.coml with the complete agenda package:
• General Manager's FY 2016-2017 Work Plan Mid-Year Update
Page 2 of 2
ORANGE COUNTY SANITATION DISTRICT
Memorandum
January 16, 2017
TO: Chairman and Members of the Board of Directors
FROM: James D. Herberg, General Manager
SUBJECT: Fiscal Year 2016-2017 General Manager's Work Plan
I am pleased to present the mid-year update for my Fiscal Year 2016-17 work plan. The work plan
includes fifteen goals organized under five focus areas including safety and security, succession
planning, resource recovery, reliability and operational resiliency. The work plan was reviewed with
the Steering Committee in August 2016.
1. Safety and Security
• Cyber Security—Address the top ten longer-term cyber security items/projects.
Update: Various measures to address the Cyber Security issues are underway. A Cyber
Security awareness program was launched offering quarterly training for all OCSD staff. An
additional cyber security analyst has been hired to join the team. Staff is working with
Microsoft to maximize our ability to respond to security incidents and improve the program's
security incident management capabilities.An advanced threat protection tool was deployed
for our servers,workstations, and laptops to improve endpoint protection from threats.The
Network Architecture Verification and Validation(NAVY)assessment from the Department of
Homeland Security was completed and the Post Assessment-Report Feedback meeting with
the Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) representative is
being scheduled.
• Safety Engineering Solutions and Physical Site Security — Retain a contractor to begin
addressing the 75 high priority items identified in the Safety Study. Implement outstanding high
priority physical site security improvements and conduct training for all employees.
Update:A contractor was retained to begin addressing the 75 high priority items identified in
the Safety Study which are scheduled for completion by April 2017. A new contract was
entered into with a Security firm and the transitions to the improved site security elements
will begin taking place this month. Additional safety recommendations will be reviewed by
our in-house experts in February 2017.
• Voluntary Protection Plan (VPP)Certification—Implement the recommendations from the
feasibility analysis report for obtaining VPP certification from California OSHA.
Update: A Safety Culture Assessment is being led by Operations and Maintenance; Risk
Management has increased field time; and deficiencies identified in the analysis report have
been addressed.
1
2. Succession Plannina
• Labor Negotiations—Complete negotiations with all represented bargaining units and develop
a performance based pay structure for unrepresented employees.
Update: Negotiations with all six bargaining units are concluded and the three (3) year
agreements (MOUs) were ratified by the Board of Directors. The performance based pay
structure for EMT and Managers has been implemented.
• Employee Engagement — Conduct follow-up actions to address issues identified during the
employee engagement survey and the 2015 EMT/manager leadership training.
Update:All departments have prepared after action plans and submitted them to the General
Manager's Office. Departments will be spending the remainder of the Fiscal Year completing
the items on their action plans.
• Workforce Planningand Development—Address key vulnerabilities identified in theworkforce
vulnerability and talent readiness assessments conducted during 2015-16 by implementing
focused job shadowing, job assignments, training and mentoring. Implement streamlined
policies and procedures to more quickly fill vacancies and ensure adequate staffing levels.
Update:The workforce vulnerability assessment was completed by all departments. HR met
with department heads and high priorities opportunities were identified. Departments will
implement plans to address their needs and gaps.Additionally,a streamlined HR recruitment
process was implemented resulting in approximately 50 positions being filled in the first six
months of the fiscal year.Another 50 positions are currently in active recruitment.
3. Resource Recovery
• Water Recycling — Execute a new agreement with Orange County Water District (OCWD) for
the ultimate expansion of the Groundwater Replenishment System (GWRS). Work with OCWD
to secure grant funding and complete preliminary engineering and environmental work on the
expanded facilities to recycle effluent from OCSD's Treatment Plant No. 2.
Update:A new agreement with OCWD for GWRS was executed. OCSD will continue to work
with OCWD to provide ongoing support as needed.
• Research — Present findings and recommendations on Super Critical Water Oxidation to the
Board of Directors.
Update:Findings on Super Critical Water Oxidation were presented to the Board of Directors.
Staff will continue to provide ongoing support as needed.
• Monitoring Program—Evaluate the nature and frequency of all of OCSD's current
environmental monitoring for the protection of OCSD's collection system and treatment plants;
water recycling; ocean discharge; and biosolids recycling. Prepare a plan based on the future
monitoring needs of OCSD.
Update: A project manager was selected and an initial comprehensive list of monitoring
activities was developed. Stakeholders reviewed the list and statistical and compliance
analyses are underway.The plan is under development.Stakeholders met to discuss current
and proposed monitoring to prepare the future monitoring needs of OCSD.
2
4. Reliability
• Planned Maintenance — Complete a gap analysis and implement measures to fully deploy
planned maintenance using Maximo and process improvements to improve reliability.
Update: A Gap Analysis of the Maintenance/Asset Management program was performed
with the assistance of an outside consultant and a report with recommendations was
developed. The report pointed out opportunities to strengthen our program and the
implementation of the Enterprise Asset Management tool (Maximo). Most of the
recommendations have been completed including forming anew Maintenance Reliability&
Planning Division to focus on asset management efforts, the establishment of Asset
Management and Maximo Change Management Committees, and the formation of several
working teams to improve communication across the maintenance division.
• Civil Assets Maintenance—Implement the operational housekeeping program, and develop a
multi-year program for condition assessment and maintenance of civil assets.
Update: Critical assets at both treatment plants have been identified and added to
Maximo and will be part of the Planned Maintenance (PM's) schedule. Regular removal
of grit/solids at trouble spots is taking place, job plans are being developed and
frequencies being established to implement PM's for these trouble spots. All civil assets
have been identified, hierarchy relationships have been established and job plans have
been developed. Atwo-year plan and schedule is being developed that will integrate civil
and mechanical maintenance work and capital improvement projects. Once this
plan/schedule is complete the PM's will be activated.
• Operational Resiliency— Present the results of the business continuity plan to the Board of
Directors. Identify the most critical functions to keep OCSD operating in the event of a major
event.
Update: This is a joint effort between the IT and HR departments. IT has deployed
business continuity equipment to the backup data center in Nevada and successfully
tested the systems. Routine testing of major applications critical to OCSD's operations
(JDE,SharePoint, Maximo,etc.) is being planned.
On the HR side,a scope of work will be developed to retain a consultant to work with staff
in identifying other additional critical functions to keep OCSD operating in the event of a
major event.
• Seismic—Conduct an updated study of the seismic safety needs of OCSD's Plant Facilities.
Update: Staff are on target to award the seismic study contract by June 30, 2017 to
identifythe safety needs of OCSD's Plant Facilities.
S. Operational Optimization
• Rates— Conduct planning studies including the Odor Control, Biosolids, and Facilities Master
Plans to develop updated 20-year cost projections.The outcomes of these studies will be used
next fiscal year to complete a rate study to determine the proper allocation of costs among user
types and a recommended future rate structure.
3
Update: The planning studies are underway and on target to be completed by June 30,
2017,in time to supply input to the upcoming rate study.
• OCSD Headquarters Building—Study site location options and make final site selection to begin
preparing environmental documentation to comply with CEOA.
Update: Site selections and property purchases are going forward to begin the CEQA
work. Three potential sites to be studied: Southwest corner of Plant No. 1, current
administration location area, and new property across Ellis Ave.
4
BOARD OF DIRECTORS Meeting Date TOBE.Or Dir.
-- Ol/zs/17
AGENDA REPORT Item Item
10
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: REIMBURSEMENT AGREEMENT WITH ORANGE COUNTY FLOOD
CONTROL DISTRICT FOR FULLERTON CREEK CHANNEL PROJECT
GENERAL MANAGER'S RECOMMENDATION
Approve a Reimbursement Agreement with the Orange County Flood Control District for
the modifications to the Magnolia Relief Sewer under the Fullerton Creek Channel, in the
City of Buena Park.
BACKGROUND
The Orange County Sanitation District (Sanitation District) owns and maintains two
12-inch ductile iron pipes inside a 48-inch steel casing under the Orange County Flood
Control District's (OCFCD) Fullerton Creek Channel. OCFCD has paramount rights by
virtue of a dedication to the County in 1918.
RELEVANT STANDARDS
• Maintain collaborative and cooperative relationships with neighboring agencies
• Operate and maintain facilities to minimize impacts on surrounding communities,
including odor, noise, and lighting
PROBLEM
An OCFCD-led flood control project will line the north half of the Fullerton Creek Channel
with concrete. The proposed concrete channel bottom will conflict with the existing
48-inch casing pipe requiring the removal of portions of the casing pipe and concrete
encasement. The Sanitation District is required to accommodate and pay for expenses
due to OCFCD rights.
PROPOSED SOLUTION
Modify Magnolia Relief Sewer 48-inch encasement while protecting two 12-inch ductile
iron pipes.
Enter into a Reimbursement Agreement with OCFCD, accepting the following terms to
the Magnolia Relief Sewer modifications:
1. The Sanitation District to prepare plans and specifications for modifications per
Sanitation District's plans and specifications.
Page 1 of 2
2. OCFCD to include within its construction contract the modifications per Sanitation
District's plans and specifications.
3. OCFCD to be responsible for the administration and award of a contract to OCFCD's
selected contractor.
4. OCFCD shall issue change orders after Sanitation District review and approval.
5. The Sanitation District will inspect and accept the construction work.
6. The Sanitation District shall reimburse OCFCD up to $106,893, including
administration fee.
TIMING CONCERNS
The U.S. Army Corps of Engineers established a deadline of March 18, 2017 for OCFCD
to commence the channel improvement project.
RAMIFICATIONS OF NOT TAKING ACTION
Without the Reimbursement Agreement, the modification or relocation to the Sanitation
District facilities would need to be administered by the Sanitation District and could not
be completed by the said OCFCD deadline.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
In partnership with the OCFCD in 1999, the Sanitation District similarly funded the
modifications to the Magnolia Relief Sewer in Western Avenue through an OCFCD flood
control improvement project in the southern portion of the channel.
CEQA
OCFCD filed a Mitigated Negative Declaration and Addendum and a Notice of
Determination in 2014 for the channel improvement project and associated utility impacts.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted. (FY2016-17 and 2017-18, Section 8,
Page 39).
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
Reimbursement Agreement
RD:sa:gc
Page 2 of 2
Agreement MA-080-17010249
THIS AGREEMENT, for the purpose of identification hereby is numbered MA-080-
17010249 and entered into this day of 2017 ("Effective Date")
is BY AND BETWEEN
ORANGE COUNTY FLOOD CONTROL DISTRICT,
a body corporate and politic,
hereinafter referred to as "OCFCD"
AND
ORANGE COUNTY SANITATION DISTRICT,
hereinafter referred to as "SANITATION DISTRICT,"
which are sometimes individually referred to as"PARTY,"and collectively referred to as
"PARTIES."
RECITALS
WHEREAS, OCFCD is preparing plans for proposed improvements to the existing
Fullerton Creek Channel (OCFCD Facility #A03) ("PROJECT") within the unincorporated
territory of the County of Orange and within the City of Buena Park from downstream of Western
Avenue to upstream of Beach Boulevard,which PROJECT consists of:
(1)removal of existing false invert, and
(2)replacement of the existing north side L-wall and invert to match the south side L-wall.
WHEREAS, SANITATION DISTRICT owns, operates and maintains two 12" ductile
iron pipes encased in a 48"outside diameter steel encasement("FACILITY"),which is in conflict
with the proposed PROJECT.The conflict may be averted by the partial removal of approximately
20 linear feet of the crown of the 48"outside diameter steel casing and concrete slurry encasement
to clear the PROJECT ("MODIFICATION").
WHEREAS,OCFCD acquired its rights in land for the Fullerton Creek Channel by virtue
of the Stems Ranch Company dedication to the County in 1918 per Official Records in the Office
of the Orange County Recorder,which rights are paramount to SANITATION DISTRICT's rights
in land for the FACILITY.
WHEREAS,as a consequence of OCFCD's paramount rights, SANITATION DISTRICT
is required to accommodate the PROJECT by undertaking the MODIFICATION at SANITATION
DISTRICT's expense.
WHEREAS,in December 2016,OCFCD performed a closed caption television inspection
of the 12" ductile iron pipes and determined that the MODIFICATION would avoid the conflict
with the PROJECT.
WHEREAS,OCFCD improved the south side L-wall of the same Fullerton Creek Channel
segment in 1999 and successfully coordinated efforts to have OCFCD's contractor modify portions
of the 48"encasement while protecting SANITATION DISTRICT's two encased 12"ductile iron
4811-5822 3.3 1
Agreement MA-080-17010249
pipes at SANITATION DISTRICT's expense and OCFCD seeks to perform the same work with
respect to the north side as a part of the PROJECT.
AGREEMENT
NOW THEREFORE,it is mutually understood and agreed by the PARTIES as
follows:
SECTION I.
OCFCD SHALL:
1. Include within its construction contract for PROJECT the MODIFICATION work
per SANITATION DISTRICT's standards as shown on plans and specifications prepared by
SANITATION DISTRICT and attached as Exhibit 1.
2. Award a construction contract for PROJECT to a contractor appropriately licensed
by the State of California for the MODIFICATION("CONTRACTOR").
3. Be responsible for PROJECT contract award and for the administration and
performance of the contract awarded to CONTRACTOR for the MODIFICATION.
4. Incorporate within the contract documents for the PROJECT a requirement for the
CONTRACTOR to obtain and keep in full force and effect throughout the life of the PROJECT,
for the mutual benefit of SANITATION DISTRICT,OCFCD, County of Orange, and City of
Buena Park,a policy or policies of comprehensive,broad form, commercial general liability
insurance written on ISO from CG 00 01, or a substitute form providing liability coverage at
least as broad in the amount of$3,000,000 limit per occurrence with a$3,000,000 aggregate and
automobile insurance against claims and liabilities for activities of the CONTRACTOR in the
amount of$1,000,000(combined single limit per occurrence).
(A) Said policies shall name SANITATION DISTRICT, OCFCD, County of
Orange, and City of Buena Park, and their respective elected and appointed officials, officers,
agents and employees as additional insureds using ISO form CG 2010 or CG 2033,or a form at
least as broad and shall,additionally, contain language providing for waiver of subrogation. Said
policies shall include a primary and non-contributory endorsement using ISO form CG 20 01 04
13, or a form at least as broad evidencing that the policies are primarily and noncontributing with
any insurance or self-insurance that may be carried by the parties hereto and that said insurance
may not be canceled or materially changed except upon thirty(30)days written notice to
OCFCD and SANITATION DISTRICT. Said policies shall include a Products and Completed
Operations endorsement using ISO form GC 2027 (ed. 10/01) or a form at least as broad.
(B) OCFCD shall also require that workers' compensation benefits are secured
by the CONTRACTOR as required by law, and provide an endorsement waiving all rights of
subrogation against the Parties hereto with regard to any workers compensation claims for
SANITATION DISTRICT.
4811-58M2 3.3 2
Agreement MA-080-17010249
(C) Prior to the issuance of the Notice to Proceed to the CONTRACTOR,
OCFCD shall provide SANITATION DISTRICT with policies and endorsements naming
SANITATION DISTRICT as an additional insured for the general liability and automobile
liability policies described above.
(D) In addition, OCFCD shall require its CONTRACTOR to obtain pollution
liability insurance written on an claims-made or occurrence basis,that covers losses related to
the release or the threatened release of pollutants into the environment arising out of or resulting
from the CONTRACTOR's performance of the PROJECT. The minimum limits of Pollution
Liability shall be $2 million per occurrence/$2 million policy aggregate. When this coverage is
provided under endorsement to the general liability policy,the $1 million per occurrence must be
a sub-limit. The pollution liability policy shall also contain an Additional Insured endorsement
and a primary and non-contributory endorsement naming the parties hereto.
(E) If CONTRACTOR maintains higher limits than any minimums above,
SANITATION DISTRICT will be entitled to coverage for the higher limits maintained by
CONTRACTOR.
5. Finnish a representative to perform the usual functions of a Resident Engineer for
the MODIFICATION and cooperate and consult with the SANITATION DISTRICT
REPRESENTATIVE (defined in Section D), and the decision of OCFCD's Resident Engineer on
any matters relating to the PROJECT shall be final, so long as the that decision does not
materially deviate from plans approved by SANITATION DISTRICT in Section II.
6. Permit SANITATION DISTRICT to access the PROJECT site for purposes of
inspection and to ensure that work is performed in accordance with SANITATION DISTRICT-
approved plans and specifications.
7. Issue change orders for the MODIFICATION work but only after approval by
SANITATION DISTRICT pursuant to section ILS.
8. Not accept the MODIFICATION work from the CONTRACTOR until
SANITATION DISTRICT concurs in writing that SANITATION DISTRICT's facilities have
been constructed in accordance with SANITATION DISTRICT's approved plans and
specifications and any authorized use of contingency funds or contract change orders.
9. Require that any and all labor and materials bonds and performance bonds required
to be supplied by the CONTRACTOR for the PROJECT shall include SANITATION
DISTRICT as a named obligee on said bonds.
SECTION II.
SANITATION DISTRICT SHALL:
I. Prepare the necessary plans and specifications,in United States Customary Units
for the MODIFICATION work to include into OCFCD's plans and specifications for Project. Said
plans and specifications were delivered by SANITATION DISTRICT to OCFCD in December
2016 and do not conflict with OCFCD's PROJECT improvements, and we attached as Exhibit 1.
4811-58ZZ-0 33 3
Agreement MA-080-17010249
2. Pay OCFCD the cost of the MODIFICATION not to exceed $97,175.02, which
amount is based upon OCFCD's estimated construction cost plus a 30%contingency. In no event
will SANITATION DISTRICT pay more than$97,175.02 plus the amount determined in Section
IL7(C)under this AGREEMENT, unless change orders approved by the SANITATION
DISTRICT Board of Directors increase the cost for MODIFICATION. Upon completion of 66%
and 90% of the work of either the MODIFICATION, OCFCD shall meet and confer with
SANITATION DISTRICT and the CONTRACTOR to assess the progress of the PROJECT.
3. Pay monthly or quarterly progress payments to OCFCD within 30 days after receipt
of an invoice from OCFCD.
4. Appoint a representative ("SANITATION DISTRICT REPRESENTATIVE"),
who shall inspect all construction activities relating to the MODIFICATION work. All requests for
alteration to the MODIFICATION work by the SANITATION DISTRICT REPRESENTATIVE
shall be made in writing to OCFCD's Resident Engineer,who shall follow the approval process
described in Section I above and OCFCD's Resident Engineer shall direct the CONTRACTOR to
accomplish all such changes. The SANITATION DISTRICT REPRESENTATIVE shall at all
times coordinate activities with and cooperate with OCFCD's Resident Engineer to ensure timely
review of MODIFICATION activities to facilitate the channel construction activity,but the
decision of OCFCD's Resident Engineer shall be final.
5. Review and expeditiously approve change order submittals from OCFCD.
SANITATION DISTRICT shall not unreasonably withhold consent to change order submittals. If
SANITATION DISTRICT does not respond to a change order submittal within ten(10)business
days, the change order will be deemed approved, unless the change order requires increased
construction costs payable by SANITATION DISTRICT, in which case the change order requires
the approval of the SANITATION DISTRICT Board of Directors and no time limit will apply.
6. Upon OCFCD's completion and acceptance of the construction work,
(A) Continue to own,operate, and maintain the FACILITY and
(B) if there are no outstanding claims arising out of the construction,release
OCFCD from any and all liability arising from the construction of the FACILITY.
7. Upon SANITATION DISTRICT's inspection and approval of the construction
work for the MODIFICATION and receipt of an Invoice and Final Accounting Report from
OCFCD, provide to OCFCD final payment for the MODIFICATION, determined as the sum of
7A, 7B, and 7C, less any progress payments made pursuant to Section I1.3:
(A) The actual sum of item prices bid for the MODIFICATION, from the
CONTRACTOR to whom OCFCD has awarded the contract for Project(subject to the cost
limitations set forth in Section 11.2).
(B) Change order expenses approved by the SANITATION DISTRICT Board
of Directors related to work involved with the MODIFICATION, if any.
4811-58M2 3.3 4
Agreement MA-080-17010249
(C) Ten percent(10%) of the actual amount determined in B.7.A. and II.7.13.
above to reimburse OCFCD for costs incurred for administration and inspection related to the
MODIFICATION.
SECTION III.
IT IS MUTUALLY UNDERSTOOD AND AGREED:
1. Should litigation be necessary to enforce any terms, covenants or provisions of this
AGREEMENT then each PARTY shall bear its own litigation and collection expenses,witness
fees, court costs and attorney's fees.
2. [Intentionally omitted.]
3. The terms and provisions of this AGREEMENT shall be binding upon and inure to
the benefit of the PARTIES and their successors and assigns.
4. This AGREEMENT may be executed in two counterparts, and each such
counterpart shall be deemed to be an original.
5. No alteration or variation of the terms of this AGREEMENT shall be valid unless
made in writing and signed by the PARTIES, and no oral understanding or agreement not
incorporated herein shall be binding on any of the PARTIES.
6. Indemnification.
(A) OCFCD shall fully indemnify and hold harmless SANITATION
DISTRICT, and its elected officials, officers, agents,contractors, and employees from all liability
from loss, damage or injury(as defined in Government Code section 810.8)to persons or property,
arising in any manner out of the performance of or occurring by reason of anything done or
omitted to be done in connection with the PROJECT, except for the negligence or willful
misconduct of SANITATION DISTRICT or its elected officials, officers,agents, contractor or
employees in designing or inspecting the PROJECT.
(B) SANITATION DISTRICT shall fully indemnify and hold harmless
OCFCD, and its elected officials, officers,agents, contractors, and employees from all liability
from loss, damage or injury (as defined in Government Code section 810.8)to persons or property,
arising in any manner out of SANITATION DISTRICT's design or inspection of the
MODIFICATION, except for the negligence or willful misconduct of OCFCD or its elected
officials, officers,agents, contractors or employees in constructing the MODIFICATION.
7. This AGREEMENT contains the entire agreement between the PARTIES with
respect to the PROJECT.
8. If any part of this AGREEMENT is held, determined or adjudicated to be illegal,
void or unenforceable by a court of competent jurisdiction, the remainder of this AGREEMENT
shall be given effect to the fullest extent reasonably possible.
4811-58M2 3.3 5
Agreement MA-080-17010249
9. All notices or other communication provided for herein shall be in writing and shall
be personally served or delivered by United States mail,registered or certified return receipt
requested,postage prepaid, addressed as follows with a courtesy copy by email:
SANITATION DISTRICT: OCFCD:
Attn: Rob Thompson, Attn: Utilities Unit
Director of Engineering Public Works/Project Management/Utilities
Orange County Sanitation District County of Orange
10844 Ellis Avenue 300 North Flower Street
Fountain Valley, CA 92708 Santa Ana, CA 92703
Email: RThomnsonaocsd.com Email: Elsa.Ramirez0,ocnw.oceov.com
Any party may,by notice to the others, designate a different address for notices which shall be
substituted for that specified above. Any notice given as provided in this subparagraph shall be
deemed to have been received, if personally served,as of the date and time of service, or if
deposited in the mail as provided above, forty-eigbt(48)hours after deposit in the mail.
10. This AGREEMENT shall be construed and enforced in accordance with California
law.
It. The PARTIES represent and warrant that this AGREEMENT has been duly
authorized and executed and constitutes the legally binding obligation of their respective
organization or entity, enforceable in accordance with its terms.
The PARTIES intend for this AGREEMENT to be effective as of the Effective Date.
ORANGE COUNTY SANITATION DISTRICT
Dated: By:
Gregory C. Seboum
Board Chairman
ATTEST:
By: Kelly A. Lore
Clerk of the Board
APPROVED AS TO FORM :
By:
Special Counsel
4811-5822-0 33 6
Agreement MA-080-17010249
ORANGE COUNTY FLOOD CONTROL DISTRICT
Date: By:
Chairwoman of the Board of Supervisors
SIGNED AND CERTIFIED THAT A COPY
OF THIS DOCUMENT HAS BEEN DELIVERED
TO THE CHAIRMAN OF THE BOARD
By:
Robin Stieler
Clerk of the Board of Supervisors
Orange County, California
APPROVED AS TO FORM:
County Counsel
By: Deputy
Date:
4811-58M2 3.3 7
Agreement MA-080-17010249
EXHIBIT 1
MODIFICATION PLAN AND SPECIFICATIONS
APPROVED BY SANITATION DISTRICT
4811-58M2 3.3 8
GAP SPACING IN CONDUIT
BOXIISHEAR KEY
F OGNJA RON NOTE --WALL ANN APPROF 6' -NOTE: 11 GROU TO REMAIN IS
MATERAL PER pAL% TILL PER COUNTY
CRACKEDp CONTRACTOR i0
COUNTY + OF ORANGE DRAWINGS CONCRE'E ENCASEMENT TRANS HIGH REMOVE NO RTRACTO WITH 2
DRAWINGS Gi 6- THICKNESS TO MIN. RED. EXISTING CB'CASING SACK SAND/CEMEN" GROUT.
PIPE FINAL SURFACE OF GROUT 10 BE
THUM EO ANN SMPITH BEFORE
NOTE: 3OF APPLICATION 0 TYE POLYSTYRNE.
POLYSTYRENE o F db'F`A l f ,
EXISTINGCONCRETE ELL AND REMOVE EAS ING
e GROUT CASING AS REDUIRED. REMOVE
L LROJT 07H MAN OPERATED
TO L USE NOTHING GREATER
THAO N A T] JACK HAMMER
AND CONE FE iC RAW
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VAR IFS ENCASEMENT TYP.AROUND AND OI.f.TnF IkOry PmF SF WFR.
REMOVAL OF EX ST'.NO
ADOVE PIPES OB'CASINGAND SEWER IS AC TrvC CONTRACTOR
A% S1E EL CASING ANN SLURRY BELOW PIPE TO REMAIN. GROUT IG L. IIISC Exm_ML uUIIOI.
GEED TO MAINTAIN OWNERSHIP WHEN WORK NO AROUND SEWER.
D OF REMAINING CASING,
DETAIL ENCASEMENT.AND SEWERS. SECTION
NTS N S
LOU NOAT OV MATERIAL
PER COUNTY ORAWNCS�
HEIGFT A BOTTOM OF PROP OS J
WALL OR FOC➢NG
NOTES TO VARY
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Exhibit 1 LETso1
I, ORANGE COUNTY ENCASEMENT)CaroUEM REMOVAL AND
3a e SANITATION DISTRICT PROTECTIONU PORN FOR..SEMFI 1 T
�. \ AT wF3191x AYBA.£
BOARD OF DIRECTORS Meeting Date To BE.of Dir.
01125117
AGENDA REPORT Item Number Item Number
n
Orange County Sanitation District
FROM: James D. Herberg, General Manager
Originator: Rob Thompson, Director of Engineering
SUBJECT: CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT
PLANT NO. 2, PROJECT NO. P2-110
GENERAL MANAGER'S RECOMMENDATION
A. Receive and file Bid Tabulation and Recommendation for Consolidated Demolition
and Utility Improvements at Plant No. 2, Project No. P2-110;
B. Receive and file Orange County Sanitation District's Notice of Intent to Award
dated December 5, 2016;
C. Receive and file Award Protest from Shimmick Construction Co., Inc. dated
December 13, 2016, concerning the award to Flatiron West, Inc.;
D. Receive and file response letter from Flatiron West, Inc. dated December 20, 2016,
regarding the bid protest of Shimmick Construction Co., Inc.;
E. Receive and file Orange County Sanitation District's determination letter dated
December 27, 2016, to Shimmick Construction Co., Inc. responding to Award
Protest;
F. Deny Award Protest filed by Shimmick Construction Co., Inc.;
G. Award a Construction Contract to Flatiron West Inc. for Consolidated Demolition
and Utility Improvements at Plant No. 2, Project No. P2-110, for a total amount not
to exceed $16,730,000;
H. Approve a construction contract contingency of$1,338,400 (8%);
I. Approve a Professional Consultant Services Agreement with Stantec Consulting
Services, Inc.to provide construction support services for Consolidated Demolition
and Utility Improvements at Plant No. 2, Project No. P2-110, for an amount not to
exceed $1,499,839; and
J. Approve a Professional Consultant Services Agreement contingency of$149,984
(10%).
Page 1 of 4
BACKGROUND
The Orange County Sanitation District(Sanitation District)began operations in the 1950s.
Some of the original facilities are still standing, although subsequent process upgrades
have resulted in their abandonment.
This project will demolish Digesters A and B; Primary Clarifiers A, B, and C; the Air
Compressor Building; the Emergency Power Building; and several other facilities that are
at the end of their useful lives. Several existing tunnels will be demolished or rehabilitated
including new pipe supports, drainage improvements, structural repair, lighting
improvements, etc. The project area will also receive extensive grading, drainage, and
paving improvements.
Summary information on the bid opening for Consolidated Demolition and Utility
Improvements at Plant No. 2, Project No. P2-110, is as follows:
Project Budget $38,460,000
Engineer's Estimate $25,931,438
Bidder Amount of Bid
Flatiron West Inc. $16,730,000
Shimmick Construction Co., Inc. $16,850,000
Kiewit Infrastructure West Co. $17,142,000
W. M. Lyles, Co. $17,501,668
J. F. Shea Construction, Inc. $18,267,175
Quest Civil Constructors, Inc. $24,587,800
Staff recommends awarding a construction contract to the lowest responsive and
responsible bidder, Flatiron West Inc., for Consolidated Demolition and Utility
Improvements at Plant No. 2, Project No. P2-110.
In 2014, the Sanitation District awarded the design of this project to MWH Americas, Inc.
Since then, the company was acquired by Stantec Consulting Services, Inc. Stantec
Consulting Services, Inc. successfully furnished engineering services for the design of
this project and their support services during construction will provide continuity through
the completion of the project.
Staff negotiated with Stantec Consulting Services, Inc. for these support services in
accordance with the Sanitation District's adopted policies and procedures. A review of
the proposed price was conducted using estimated quantities of requests for information,
submittals, meetings, site visits, change order review, and design revisions, as well as
the level of effort for preparing record drawings. Based on this review, staff determined
the negotiated fee to be fair and reasonable for these services.
Page 2 of 4
RELEVANT STANDARDS
• CA Government Code 4526, select the "best qualified firm" and "negotiate fair and
equitable fees"
• CA Public Contract Code Section 20103.8, award construction contract to lowest
responsive, responsible bidder
PROBLEM
The area where the facilities are located is needed for upcoming Sanitation District
projects. A construction contract is needed to demolish the facilities and a Professional
Consultant Services Agreement is needed to authorize the design consultant to provide
engineering services during construction.
PROPOSED SOLUTION
Award the construction contract, Consolidated Demolition and Utility Improvements at
Plant No. 2, Contract No. P2-110.
Award a Professional Consultant Services Agreement to Stantec Consulting Services,
Inc.
TIMING CONCERNS
If this demolition is not completed by 2019, construction of other projects will be delayed.
RAMIFICATIONS OF NOT TAKING ACTION
If the facilities are not demolished, the other critical projects could not be constructed.
PRIOR COMMITTEE/BOARD ACTIONS
October 2014 - Approved a Professional Design Services Agreement with MWH
Americas, Inc. to provide engineering design services for an amount not to exceed
$2,443,316 and approved a contingency of$244,332 (10%).
ADDITIONAL INFORMATION
The Project was advertised for bid on September 28, 2016, and six sealed bids were
received on November 21, 2016. The bids were evaluated in accordance with the
Sanitation District's policies and procedures. An award recommendation notice was sent
to all bidders on December 5, 2016.
Shimmick Construction Co., Inc. (Shimmick), the second low bidder, sent a formal protest
of the award to the Sanitation District on December 13, 2016, alleging bid defects in the
Flatiron West Inc. bid (Flatiron). Bid documents require all bidders to submit a Safety
Declaration in which bidders and subcontractors identify safety information including their
Experience Modification Rate (EMR), a number that compares a firm's injury-related
claims to the average of other similar businesses. A lower rate indicates a better safety
Page 3 of 4
record. The Sanitation District bid documents require that subcontractors have an EMR
at or below 1.25. The Contractor is required to substitute any subcontractor who does
not meet the requirement.
Shimmick contended that two of five subcontractors listed in Flatiron's bid (Penhall and
Calmex) had EMR slightly over 1.0 at the time of bid and further alleged that this deviation
rendered Flatiron's bid non-responsive.
In consultation with Sanitation District General Counsel, the Sanitation District reviewed
and responded to this protest. The protest does not merit a change to the award
recommendation for the following reasons:
- All of Flatiron's subcontractors meet safety eligibility requirements set forth in the
bid documents. Sanitation District Safety staff verified this information.
- Information disclosure provisions in the bid documents regarding EMR allows the
Sanitation District the option to request additional information from the bidder after
bid opening. Therefore, the EMR of a subcontractor is not a responsiveness issue
under the bid documents.
Based on the above, staff, in consultation with Sanitation District's General Counsel,
responded to Shimmick's protest and found protest statement allegations unfounded.
Shimmick did not request an appeal of Sanitation District staff determination as provided
for by the Sanitation District's procedures and the deadline to file an appeal expired.
CEQA
Notice of Exemption was filed on April 30, 2014; 180-day statute of limitations has expired
from approval of Professional Design Services Agreement.
FINANCIAL CONSIDERATIONS
This request complies with authority levels of the Sanitation District's Purchasing
Ordinance. This item has been budgeted (Budget FY2016-17&2017-18, Section 8, Page
10) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s)are included in hard copy and may also be viewed on-line at the OCSD website
(www.ocsd.coml with the complete agenda package:
• Shimmick Construction Co., Inc. Award Protest Letter
• Flatiron West Inc. Response to Bid Protest Letter
• Sanitation District Response to Shimmick's Award Protest
• Sanitation District Intent to Award Letter
• Construction Contract
• Professional Construction Services Agreement
VP:dm:gc
Page 4 of 4
SH CK
CO TION
General Engineering Contractor
State License No.594575
December 12, 2016
Jay Kaura, C.P.M
Contracts Administrator
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, CA 92708
Email: oonstruction(cDocsd.com
Re: Project No. P2-110, Consolidated Demolition and Utility Improvements at Plant 2
Subject: Protest of Recommendation of Award to Flatiron West, Inc.
Dear Mr. Kaura:
Pursuant to Orange County Sanitation District's ("OCSD") Instructions to Bidders, Section
IB-29 FILING OF PROTESTS AND PROTEST PROCEDURES (see Attachment 1 hereto),
Shimmick Construction Company, Inc. ("Shimmick") submits the following protest to
OCSD's Award Recommendation Notice dated December 5, 2016 (see Attachment 2
hereto) wherein OCSD provides notice of its intent to award the P-2-110, Consolidated
Demolition and Utility Improvements at Plant No. 2 contract ("Contract") to Flatiron West,
Inc. The intent of this letter is to:
(1) Protest against any award of the above referenced Contract to any bidder other
than Shimmick, as Shimmick is the lowest responsive and responsible bidder
(see below Shimmick protest of Flatiron West, Inc.); and
(2) Request to be informed (by telephone or fax) as soon as any staff reports or
recommendations concerning any issues pertaining to the award of the above
referenced Contract are available to the public, so we can immediately inspect
those reports or recommendations.
If this letter is not sufficient to accomplish any of these purposes, please let us know
immediately what additional documentation is required. If OCSD does not respond, we will
proceed on the basis that this letter is sufficient.'
A. Name of Protester
Shimmick Construction Company, Inc.
16481 Scientific Way
Irvine CA 92618
949-333-1500
r Flatiron's Part 5 Bid Submittal Form is attached as Attachment 10 hereto. However, for ease of reference, specific
Bid Submittal Form sections discussed below are identified and separately attached.
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)7775000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine,CA 92618 0 Phone(949)333-1500 0 Fax(949)333A510
!4G;e�.�ml
7 Engineering Contractor
State License No. 594575
B. Proiect Being Protested
Project No. P2-110, Consolidated Demolition and
Utility Improvements at Plant 2
C. Grounds for Bid Protest
The bid of Flatiron West, Inc. (Flatiron) is non-responsive and should be rejected due to
misstating the safety qualifications of its listed subcontractors and failing to comply with the
Invitation For Bids ("IFB") by incorrectly completing the bid submittal forms, and, in
particular, Form BF-6 Safety Declaration of Contractor.
In this regard, Flatiron provided in Form BF-2, LIST OF SUBCONTRACTORS, its listed
subcontractors (see Attachment 3 to this Award Protest Statement):
Penhall Company
Calmex Engineering Inc.
K D C Inc. dba Dynalectric
Southern Counties Quality Masonry
Preferred Modular Structures Inc.
Flatiron then provided in Form BF-6, SAFETY DECLARATION OF CONTRACTOR (see
Attachment 4 hereto) information regarding its safety record as well as that of its
subcontractors, including those companies required to be listed in Form BF-2 above.
Form BF-6, SAFETY DECLARATION OF CONTRACTOR (see Attachment 4 hereto)
expressly required all Bidders, prior to submitting a Bid, to "pre-qualify each of its
Subcontractors."
On Form BF-6, SAFETY DECLARATION OF CONTRACTOR, Question 7.C, (see
Attachment 4 hereto) all Bidders were required to truthfully and accurately answer the
following question:
C. Do any of the CONTRACTOR's Subcontractors have a workers' compensation
EMIR between 1.01 and 1.25?
Flatiron verified on Form BF-6 (See Attachment 4 hereto) that it did not have a
Subcontractor with a workers' compensation EMIR between 1.01 and 1.25. However, this
appears untrue. Attached is a copy of Calmex's and Penhall's current workers'
compensation EMIR (see Attachment 5 [Calmex Engineering EMR] and Attachment 6
[Penhall Company EMR]). These ratings are developed by the Workers' Compensation
Insurance Rating Bureau California (WCIRB California).
A review of the EMIR rates for Flatiron's listed Subcontractors establishes that both Penhall
Company and Calmex Engineering Inc. have workers' compensation EMIR'S between 1.01
Home Office: 8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)7775000 • Fax(510)777-5099
16481 Scieni fic Way 0 Irvine,CA 92618 0 Phone(949)333-1500• Fax(949)333-1510
SH V
C1 Engineering Contractor
State License No.594575
and 1.25. Flatiron did not accurately disclose the true workers' compensation EMR's of
Penhall Company and Calmex Engineering Inc. Whether willful or inadvertent, Flatiron was
required to thoroughly pre-qualify its Subcontractors prior to submitting its bid. Because it
failed to do so, Flatiron's bid should be found non-responsive in accordance with
Instruction to Bidders Section IB-13 BID EVALUATION PROCESS (Attachment 7 hereto)
and Flatiron should not be considered for Contract award?
Furthermore, within the bid package that is signed by all Contractors that submit a bid,
Form BF-1 BID LETTER Section LEGAL COMPLIANCE (see Attachment 8 hereto),
requires, among other things, Subcontractor certification:
In addition to the formal certifications provided, the Bidder certifies that it has
examined the experience, skill, licensing and certification requirements specified
and that the entities (Bidder, Subcontractor(s), Supplier(s)) performing the Work
under the Contract will fulfill the specified requirements.
The last section of Form BF-1 BID LETTER also requires verification of the bid
representations:
Bidder certifies under penalty of perjury under the laws of the State of California that
all representations herein made are true and correct. (Contractor's License
Declaration must be included with Bid).
By not accurately representing its listed Subcontractors workers' compensation EMR,
Flatiron did not thoroughly vet its Subcontractors and failed to meet all the specified bid
requirements. In contrast, Shimmick screened and prequalified its Subcontractors and
responded to the safety questions in form BF-6 correctly. Flatiron did not, and by so doing
gained a competitive advantage over the other bidders that correctly pre-qualified their
subcontractors.
Furthermore, per the Instructions to Bidders Section IB-17 BID MISTAKES (AFTER
OPENING) (see Attachment 9 hereto), Flatiron may have had the opportunity to claim a
mistake and seek relief in accordance with §5100, et. seq. of the California Public Contract
Code. Flatiron's potential ability to withdraw its bid without forfeiting its bid bond
constitutes an unfair advantage. (See, e.g., MCM Construction, Inc. v. City and County of
San Francisco (1998) 66 Cal. App. 4th 359.)
In addition, as is well-known, maintaining integrity in the public bidding process and
eliminating unfair competitive advantages requires that non-compliance with material bid
requirements result in a bid being determined non-responsive (and, in some cases, the
bidder being deemed non-responsible):
z Flatiron's failure to properly pre-quality its Subcontractors also deprived OCSD's ability to properly conduct a
Subcontractors Safety Evaluation based upon true and accurate disclosures under IB-13 BID EVALUATION PROCESS,
thereby further undermining the competitive bidding process and giving Flatiron an unfair advantage.
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine,CA 92618 0 Phone(949)333-1500• Fax(949)333-1510
7
!ffG;e.!1a1
Engineering Contractor
State License No. 594575
The purpose of requiring governmental entities to conduct competitive bidding is to
eliminate favoritism, fraud, and corruption; avoid misuse of public funds; and
stimulate advantageous marketplace competition. Because of the potential for
abuse of that purpose that is caused by deviations from strict adherence to contract
standards, bids receive close judicial scrutiny. Contracts awarded without strict
compliance with bidding requirements will be set aside, even where there was in
fact no corruption or adverse effect upon the bidding process; and even where the
deviations would save the entity money. This is so because it is important to
maintain integrity in government and because of the ease with which policy goals
underlying competitive bidding requirements may be surreptitiously undercut.
(See, Konica Business Machines v. Regents of the University of Califomia (1988)
206 Cal.App.3d 449.)
Here, the Instructions to Bidders Section IB-13 BID EVALUATION PROCESS (see
Attachment 7 hereto) devotes approximately three and one-half pages (of approximately
four pages) to safety and the accurate reporting of safety at the time of bid. This
evidences the high value that OCSD places on safety and the materiality of compliance
with this section in bid submissions. As a result, it is incumbent upon each responsive
bidder to perform their due diligence and have their insurance brokers verify the veracity of
the information provided to them by all Subcontractors and/or to otherwise verify the
accuracy of the bid submission to OCSD. Shimmick fully appreciates and agrees with
OCSD's focus of safety and shows it by giving the safety forms the full attention required
by OCSD. Flatiron's apparent disregard for accurate safety reporting deems its bid non-
responsive, as Flatiron was required to accurately verify its bid safety representations and
failed to do so at a most basic level.
D. Requested Relief
Flatiron's bid was not in strict accordance with the IFB Documents. As such, Flatiron's bid
should be deemed non-responsive and the Contract should be awarded to the lowest
responsible and responsive bidder, Shimmick.
The undersigned declares under penalty of perjury under the laws of the State of California
that the foregoing is true and correct. Executed at Irvine, CA, on December 12, 2016.
-Z, . C�"
W. Andrew Sloane, III
Vice President and Secretary
Shimmick Construction Company, Inc.
Home Office: 8201 Edgewater Dr.Suite 202 a Oakland,CA 94621 a Phone(510)7775000 a Fax(510)7775099
16481 Scientific Way 6 Irvine,CA 92618 0 Phone(949)333-1500 0 Fax(949)333-1510
7
15G;en.�Ial
Engineering Contractor
State License No.594575
Enclosures/Attachments:
1. IFB — IB-29 FILING OF PROTESTS AND PROTEST PROCEDURES
2. OCSD Award Recommendation Notice Dated December 5, 2016
3. FLATIRON FORM BF-2, LIST OF SUBCONTRACTORS
4. FLATIRON FORM BF-6, SAFETY DECLARATION OF CONTRACTOR
5. WORKERS' COMPENSATION EMIR— CALMEX ENGINEERING
6. WORKERS' COMPENSATION EMIR — PENHALL COMPANY
7. IFB — I13-13 BID EVALUATION PROCESS
8. FLATIRON FORM BF-1, BID LETTER
9. IFB — IB-17 BID MISTAKES (AFTER OPENING)
10.FLATIRON BID SUBMITAL FORM (ENTIRE FORM)
Home Office:8201 Edgewater Dr.Suite 202 • Oakland,CA 94621 • Phone(610)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine,CA 92618 0 Phone(949)333A500 0 Fax(949)333-1510
SH CK
CO CTION
General Engineering Contractor
State License No.594575
ATTACHMENT 1
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine, CA 92618 0 Phone(949)333-1500 0 Fax(949)333-1510
D. Before the award of the Contract by OCSD, any Bidder shall furnish, upon request of
OCSD, a recent statement of financial condition, previous construction experience,
information on owned equipment and/or information regarding the specific use and
availability of equipment on the subject Project as may be requested by OCSD. Failure
by a Bidder to furnish the information requested shall be considered sufficient grounds
for rejection of the Bid.
E. OCSD reserves the right to reject any or all Bids not suitable to their best interest. If, in
the judgment of OCSD, a Bid is unbalanced, Non-Responsive or if the Bidder is Not
Responsible, it shall be considered sufficient grounds for rejection of the entire Bid.
IB-29 FILING OF PROTESTS AND PROTEST PROCEDURES
This Section sets forth the procedure and remedies concerning submittal and consideration
of all protests received by OCSD with respect to the Invitation for Bids (IFB). All
communications to OCSD relating to a Protest shall be in writing and submitted
electronically to construction(o)ocsd.com. By submitting a Bid, each Bidder hereby agrees
and understands that the Bidder must comply with these protest procedures and exhaust all
administrative remedies set forth herein prior to the initiation of any type of related legal
action. Upon the express written agreement of the parties, this protest procedure can also
be used to resolve issues surrounding OCSD's determination of a Bidder as Not
Responsible. This procedure is not intended to address issues concerning Bid
responsiveness. The following terms as used in this Section shall have the following
meanings:
Protest shall mean a written objection by an interested party or affected party to
(i)the requirements or specifications contained in the IFB (solicitation protest); or
(ii) a proposed award recommendation (award protest).
Days shall mean calendar days, unless otherwise specified.
Interested Party shall mean: (1)on solicitation, all Bidders or prospective Bidders; (2)
on award, the unsuccessful Bidder with a direct economic interest in the outcome of their
protest.
Solicitation Protest Statement shall mean a written objection during the solicitation
phase of the procurement, which shall be submitted prior to the Bid due date as
specified herein.
Award Protest Statement shall mean a written objection to the award recommendation
prior to final action to award the Contract, which shall be submitted after receipt of Bids,
but before award of the Contract, as specified herein.
File or Submit shall refer to the date of receipt by OCSD.
Affected Parties shall mean Bidders on a procurement, whose direct economic interest
would be affected by a submitted protest.
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 17 of 22
Specific procedures and requirements are as follows:
A. Solicitation Phase Protest
The purpose of the IFB is to obtain competitive Bids from interested Bidders. Any
Interested Party who has reason to believe that a free and open competition has not
taken place or that a particular specification or requirement is impractical, unduly
restrictive, or ambiguous may advise OCSD of its concerns by submitting a detailed
Solicitation Protest Statement in accordance with the requirements set forth below in this
Section A.
1. Contents and Requirements
A Solicitation Protest Statement must be submitted to OCSD's Contracts
Administrator identified in the IFB via electronic mail (e-mail) at
construction(a)ocsd.com by 4:00 p.m. (Pacific Time zone) no less than fifteen (15)
days prior to the Bid due date, and must contain all of the following to be considered:
a) The name, address, and telephone number of the protestor;
b) The Project Name and Project Number of the IFB being protested;
c) A detailed statement setting forth the grounds for protest, which shall include, in
sufficient detail to establish the merits of the protest, all the factual and legal
documentation in support of the protest; and
d) The desired resolution to the protest.
If the submitted Solicitation Protest Statement does not comply with the requirements
set forth herein, then it will not be considered for evaluation and will be returned to
the protestor. The Solicitation Protest Statement shall not be amended after filing,
and OCSD will not consider any unsolicited information provided after filing. Any
argument not raised in the Solicitation Protest Statement shall be deemed waived,
including as a part of the award protest. Failure to file the Solicitation Protest
Statement within the time period specified herein shall constitute a waiver of the right
to protest the specifications or requirements of the IFB.
Solicitation Protest Statements are public documents. OCSD will provide copies of
the Solicitation Protest Statements upon written request.
2. Evaluation and Determination
No hearing will be held on the protest. OCSD's Contracts, Purchasing and Materials
Management Division Manager(Purchasing Manager), or designee, will review all
material submitted, conduct an investigation of the facts, and may, but need not,
request other Bidders to submit statements or arguments regarding the protest.
OCSD's Purchasing Manager, or designee, may in his/her sole discretion, discuss
the protest with the protestor.
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 18 of 22
OCSD's Purchasing Manager, or designee, shall issue a final written decision
regarding any solicitation protest to each Bidder prior to Bid opening. The written
decision will cite any actions that will or will not be taken in response to the
Solicitation Protest Statement. The decision of the Purchasing Manager concerning
the Solicitation Protest Statement shall be final, and there shall be no further
administrative recourse.
B. Award Protest
1. Award Recommendation
Following Bid opening and evaluation of the Bids, OCSD will issue an award
recommendation to each Bidder through any one of the following methods:
a) Delivery via overnight carrier; or
b) Posting the award recommendation on OCSD's online bidding system as
identified within the IFB.
Refer to the above Section entitled "Submission and Opening of Sealed Bids" for
information regarding the availability of the Bid Tabulation and copies of Bids.
Requests shall be made to construction(c)ocsd.com, and shall contain the following
in the subject line of the e-mail: "PROJECT NO. P2-110—Request for Copies".
2. Contents and Requirements
An Interested Party, who has reason to believe that a free and open competition has
not taken place in the Bid opening, evaluation of the Bids, and award
recommendation, is permitted to protest OCSD's award recommendation by
submitting the Award Protest Statement to the OCSD Contracts Administrator
identified in the IFB via electronic mail (e-mail) at constructionaocsd.com no later
than 4:00 p.m. (Pacific Time zone)on the seventh (r)day after OCSD issues the
award recommendation or some similar announcement. OCSD will not accept an
Award Protest Statement, or similar document, prior to the date OCSD issues its
award recommendation to the Bidders. Award Protest Statements, or similar
document, received prior to the issuance of OCSD's award recommendation will be
considered premature and will be immediately returned to the party filing the Protest
without consideration.
The Award Protest Statement must be submitted timely and contain all of the
following to be considered:
a) The name, address and telephone number of the protestor;
b) The Project Name and Project Number of the IFB being protested;
c) The OCSD action or recommendation that is being protested;
d) The name(s)of all Affected Parties;
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 19 of 22
e) A detailed statement setting forth the grounds, legal authority and facts in support
of the protest, including all documents and evidence ;
f) Each and every ground on which the protestor bases the protest by specific
references to parts of the IFB, which shall be attached as exhibits;
g) Each and every reason that all other Affected Parties who may be in line for the
purchase or Contract award should not be awarded the purchase or Contract;
h) A clear statement of the relief requested and the statutory or case law basis for
such relief; and
i) Signed and sworn by a principal of the protestor
If the submitted Award Protest Statement does not comply with the requirements set
forth herein, then it will not be considered for evaluation, and will be returned to the
protestor. The Award Protest Statement shall not be amended after filing, and
OCSD will not consider any unsolicited information provided after filing. Any
argument not raised in the Award Protest Statement shall be deemed waived.
Award Protest Statements are public documents. OCSD will notify the Affected
Parties when a protest has been submitted, and will provide copies of the Protest
Statements to the Affected Parties as soon as is reasonably practical.
3. Evaluation and Determination
The Affected Parties may file responsive statements in support of or in opposition to
the protest no later than 4:00 p.m. (Pacific Time Zone) on the third (V) business day
after the receipt of the Award Protest Statement from OCSD. The Purchasing
Manager, or designee, shall review the facts and all submittals relative to the Award
Protest Statement and shall issue a written decision setting forth the basis for such
decision. The written decision will be issued to the protestor and to all Affected
Parties.
Unless otherwise required by law, no evidentiary hearing or oral argument shall be
provided, except in the sole discretion of the Purchasing Manager, or designee.
In the event a hearing is conducted, the Purchasing Manager, or designee, shall
issue written notice to the protestor and Affected Parties identifying the date and time
for the hearing, along with rules concerning the hearing.
4. Appeal Process
In the event of an adverse decision by the Purchasing Manager, or designee, the
protestor may submit a written appeal to the Director of Administrative Services and
the Director of the Department requesting the Procurement, and immediately send
copies to all Affected Parties. The appeal must be submitted no later than 4:00 p.m.
(Pacific Time zone)within seven (7)days after the date the Purchasing Manager, or
designee, rendered a decision. The protestor shall only submit: (1) information and
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 20 of 22
documentation previously submitted to the Purchasing Manager, or designee; (2)a
copy of the final decision of the Purchasing Manager, or designee; and (3)a brief
statement setting forth all factual and legal bases for the appeal. The Director of
Administrative Services, together with the Director of the Department requesting the
Procurement shall evaluate each Award Protest Statement and determine whether to
uphold or reject the Purchasing Manager's determination. For Contracts to be
awarded by District Staff, the decision of the Director of Finance and the Director of
the Department requesting the Procurement shall be final. For Contracts to be
awarded by the Board of Directors, the Board may consider any Award Protest
Statements in connection with its consideration of the Contract.
C. Delay in Award
Execution of any proposed contract shall be delayed pending the resolution of the
protest unless one or more of the following conditions is present:
1. The items or services being procured are urgently required;
2. Delivery or performance will be unduly delayed by failure to make award promptly; or
3. Failure to make prompt award will otherwise cause undue harm to OCSD.
D. No Limitation on Remedies
Nothing contained herein shall be construed to act as a limitation on OCSD's choice of
remedies or confer any right upon any Interested Party or Affected Party to a remedy.
E. Basis for Choice of Remedy
In determining the appropriate remedy, OCSD shall consider all the circumstances
surrounding the IFB and/or award, including, but not limited to:
1. The seriousness of any deficiency found to exist in the contracting process;
2. The effect of the action on the competitive process;
3. Any urgency surrounding the Contract requirement; and
4. The effect that implementing the remedy will have on OCSD.
F. Remedies
If OCSD determines that the award or proposed award was not made in accordance with
applicable statutes, regulations, policies and/or procedure, OCSD, in its sole discretion,
may grant any of the following remedies or any other remedy it deems appropriate:
1. Prior to award, OCSD may issue anew solicitation, make anew selection/award
recommendation, or award the Contract consistent with applicable statutes,
regulations, policies and procedures;
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 21 of 22
2. In its sole discretion, take no further action; or
3. Take any other action that is permitted by law to promote compliance.
G. Legal Action
Any legal action to set aside the final determination of OCSD must be filed no later than
the 901h day following the date of the final determination consistent with Code of Civil
Procedure section 1094.6. In the event a protester files a legal action related to the
protest, if OCSD prevails, OCSD reserves the right to seek reimbursement of its costs,
including attorneys' fees, to the fullest extent permitted by law.
IB-30 BIDDERS' QUESTION SUBMITTED VIA ELECTRONIC TELECOMMUNICATION
All questions submitted via electronic telecommunication (email) shall be submitted in the
time set forth in the Notice Inviting Bids, and in accordance with the requirements set forth
herein.
All email, to be effective, shall have a date and time receipt acknowledgment from OCSD,
and shall be clearly identified with the following title in the Subject line: 'PROJECT NO. 132-
110: Bidder Questions:'
It is the Bidders sole responsibility to ensure that the email question is received by OCSD in
a timely manner. Upon receipt of an email question, OCSD shall provide acknowledgement
of receipt within one (1) Business Day. If the Bidder does not receive an acknowledgement
of receipt of an email question from OCSD within the above referenced timeframe, Bidder
shall assume the email transmission was not received by OCSD, and shall be responsible
for resubmitting the same in a timely manner, and if necessary by an alternate allowable
method of transmission allowing for confirmation of receipt.
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 22 of 22
SH CK
CO CTION
General Engineering Contractor
State License No.594575
ATTACHMENT 2
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine, CA 92618 0 Phone(949)333-1500 0 Fax(949)333-1510
Serving: Orange County Sanitation District
Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708
714,962.2411 • www.ocsd.com
Brea
Buena Park December 5, 2016 Via Email: pcamaur@shimmick.com
Cypress & U.S. Mail
Fountain Valley
Paul C. Camaur
Fullerton Shimmick Construction Co., Inc.
16481 Scientific Way
Garden G -. Irvine, CA92618
Huntington Beach
Irvine SUBJECT: AWARD RECOMMENDATION NOTICE
Re: 132-110, Consolidated Demolition and Utility Improvements at Plant No. 2
La Habra
La Pal The Orange County Sanitation District (OCSD) completed its evaluation of the Bids
Los Alaml . submitted in response to the Invitation for Bids for the above-referenced Project.
The lowest responsive, responsible Bidder is Flatiron West, Inc.
Newport Beach- .,
The award recommendation will be forwarded to OCSD's Board of Directors for
Orange Contract award.
Placentia
The Board of Directors Meeting is scheduled for:
Santa Ana
Date: January 25, 2017
seal Beach Time: 6:00 P.M.
Location: Orange County Sanitation District
Stanton Board Room, Administration Building
Tustin 10844 Ellis Avenue
Fountain Valley, CA 92708
Villa Park
The Final Agenda Report will not be posted until three days prior to the Board of
County of orange Directors Meeting. Should you wish to determine if the item has been placed on the
Costa Mesa agenda, please contact the Clerk of the Board Office at (714) 593-7130.
Sanitary District
Midway City
Sanitary District
WateeD ztlr Jay Kaura, C.P.M.
Contracts Administrator
Yorba Li
Water Dist JSK:ms
cc: R. Thompson
V. Pilko
J. Choi
K. Lore
Our Mission: To protect public health and the environment by Revision 013015
providing effective wastewater collection, treatment, and recycling.
SH CK
CO CTION
General Engineering Contractor
State License No.594575
ATTACHMENT 3
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine, CA 92618 0 Phone(949)333-1500 0 Fax(949)333-1510
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SH CK
CO CTION
General Engineering Contractor
State License No.594575
ATTACHMENT 4
Home Office:8201 Edgewater Dr.Suite 202• Oakland,CA 94621 • Phone(510)777-5000 • Fax(510)777-5099
16481 Scientific Way 0 Irvine, CA 92618 0 Phone(949)333-1500 0 Fax(949)333-1510
Bid Submitted By: Flatiron West, Inc.
(Name of Firm)
BF-6 SAFETY DECLARATION OF CONTRACTOR
The CONTRACTOR shall complete this form in its entirety and submit it to OCSD with its Bid in
accordance with the Part 2—Instructions to Bidders section entitled 'Bid Evaluation Process'.
Prior to submitting its Bid, the CONTRACTOR shall safety pre-qualify each of its
Subcontractors. The CONTRACTOR shall require each of its Subcontractors to complete
Items 5-9 of this form, execute and submit the form to the CONTRACTOR in accordance with
the Part 2—Instructions to Bidders section entitled'Bid Evaluation Process'.
CONTRACTOR certifies the following(check the appropriate box):
1. Does the CONTRACTOR have any Serious, Willful, Repeat, Serious and Willful,or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code, during the past five-year period?
❑ No
m Yes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of
corrective actions being taken to abate further violations of Part 1 of Division 5 of the Labor
Code.
2. Accident Frequency
OCSD will evaluate the CONTRATOR's accident frequency factors for each calendar year
submitted on the CAL/OSHA 300/300A Logs and Summaries and its three(3)year
average using the Accident Frequency Factor tables as specified in the Instructions to
Bidders.
Prior to completing this Declaration,OCSD recommends that the CONTRACTOR calculate
its accident frequency factors for each calendar year listed and its three(3)year average
using the Accident Frequency Factor tables located in the Instructions to Bidders. The
results of those calculations should be used to answer the following questions:
OCSD requires the CONTRACTOR to have an accident frequency at or below a factor of
1.25 of the national average as published by the California Department of Industrial
Relations(DIR)for the specific North American Industry Classification System(NAICS)
Codes and applied to the accident history of the last three(3)years. Failure to check'Yes'
in either A.or B.below will render the Bid Non-Responsive and the Bid shall be rejected.
A. Does the CONTRACTOR have an accident frequency at or below a factor of 1.00 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three(3)years?
la Yes
OR
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 1 of 7
Bid Submitted By: Flatiron West, Inc.
(Name of Firm)
B. Does the CONTRACTOR have an accident frequency within a factor of 1.01 to 1.25 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three(3)years?
❑ Yes
If 2.13. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce the CONTRACTOR's accident experience if the accident
frequency is within a factor of 1.01 to 1.25 of the state average as published by the
DIR for its NAICS code and applied to the accident history for the last three(3)years.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
3. Workers'Compensation Experience Modification Rate
OCSD requires the CONTRACTOR to have workers'compensation experience
modification rate(EMR) at or below 1.25.
Failure to check"Yes" in either A.or B.below will render the Bid Non-Responsive and the
Bid shall be rejected.
A. Is the CONTRACTOR's workers'compensation EMR at or below 1.00?
m Yes
OR
B. Is the CONTRACTOR's workers'compensation EMR between 1.01 and 1.25?
❑ Yes
If 3.13. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce employee workplace injuries, illnesses and workers'
compensation losses if the CONTRACTOR's workers'compensation EMR is between
1.01 to 1.25. Such evidence shall include any or all of the following information for
further consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 2 of 7
Bid Submitted By: Flatiron West, Inc.
(Name of Fhm)
4. Does the CONTRACTOR have injury prevention programs instituted to the extent required
by Section 3201.5 or 6401.7 of the Labor Code?
0 Yes
❑ No
5. Does any Subcontractor have any Serious,Willful, Repeat, Serious and Willful,or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code,during the past five-year period?
❑ No
oes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of the
Subcontractor's corrective actions being taken to abate further violations of Part 1 of
Division 5 of the Labor Code.
6. Accident Frequency of Subcontractors
OCSD will evaluate Subcontractors'accident frequency factors for each calendar year
submitted on the CAUOSHA 3001300A Logs and Summaries and its three(3)year
average using the Accident Frequency Factor tables located in the Instructions to Bidders.
Prior to completing this Declaration,the CONTRACTOR shall require each of its
Subcontractors to calculate its accident frequency factors for each calendar year listed and
its three(3)year average using the Accident Frequency Factor tables located in the
Instructions to Bidders. The results of those calculations should be used to answer the
following questions:
OCSD requires all Subcontractors to have an accident frequency at or below a factor of
1.25 of the state average as published by the DIR for the specific NAICS Code and applied
to the accident history of the last three(3)years. CONTRACTOR shall be required to
substitute any Subcontractor who fails to meet the minimum accident frequency
requirements.
A. Do any of the CONTRACTOR's Subcontractors have an accident frequency above a
factor of 1.25 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history of the last three(3)years?
dNo
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 3 of 7
Bid Submitted By: Flatiron West, Inc.
(Name of Firm)
B. Do all of the CONTRACTOR'S Subcontractors have an accident frequency at or below
a factor of 1.00 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history for the last three(3)years?
4/ No
❑ Yes
C. Do any of the CONTRACTOR's Subcontractors have an accident frequency within a
factor of 1.01 to 1.25 of the state average as published by the OR forthe specific
NAICS Code and applied to the accident history for the last three(3)years?
pP
Yas
If B.C. Is Yes, OCSD may require the CONTRACTOR to submit evidence from its
Subcontractors)of corrective actions being taken to reduce the Subcontractor's
accident experience if the Subcontractor's accident frequency is within a factor of 1.01
to 1.25 of the state average as published by the DIR for its NAICS code and applied to
the accident history for the last three (3)years. If any Subcontractor is deemed not
qualified based on the inadequacy of the corrective action taken to reduce the accident
experience,CONTRACTOR shall be required to substitute any such Subcontractor.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of Subcontractor's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
7. Workers'Compensation Experience Modification Rate of Subcontractors
OCSD requires all Subcontractors to have workers'compensation experience modification
rate(EMR)at or below 1.25. CONTRACTOR shall be required to substitute any
Subcontractor who fails to meet the minimum experience modification factor requirements.
A. Do any of the CONTRACTOR's Subcontractors have a workers' compensation EMR
above 1.25?
-0/No
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO, P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 4 of 7
Bid Submitted By: Flatiron West, Inc.
(Noma of Firm)
B. Do all of the CONTRACTOR's Subcontractors have a workers'compensation EMIR at
or below 1.00?
❑ No
dyes
C. Do any of the CONTRACTOR's Subcontractors have a workers'compensation EMIR
between 1.01 and 1.25?
Q"N0
❑ Yea
If 7.C. Is Yes, OCSD may require that the CONTRACTOR submit evidence from its
Subcontractors) of corrective actions being taken to reduce employee workplace
Injuries, illnesses and workers' compensation losses for each Subcontractor whose
workers' compensation EMR is between 1.01 to 1.25. If any Subcontractor is deemed
not qualified based on the inadequacy of the corrective action taken to reduce
employee workplace injuries, illnesses and workers' compensation losses,
CONTRACTOR shall be required to substitute any such Subcontractor. Such evidence
shall include any or all of the following for further consideration:
• Copy of Subcontractors IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
S. Do the CONTRACTOR's Subcontractors have injury prevention programs instituted to the
extent required by Section 3201.5 or 6401.7 of the Labor Code?
,/Yea
❑ No
9. Accident Frequency Factor Worksheet
a) Total Recordable Incident Rate Calculation Table
Using the OSHA Form 300 and 300A logs and the table below, the Total Recordable
Incident Rate(TRIR)is calculated for the past three(3)completed calendar years and
three(3)year average in the table below. (Please see the California Department of
Industrial Relations(DIR)website for more detailed information)
BF{ SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 5 of 7
Bid Submitted By: Flatiron West, Inc.
(Name of Firm)
1) The number of nonfatal injuries and illnesses is determined for each year by:
I. Counting the number of OSHA recordable'cases for the year listed on the
OSHA Form 300 (log)or,
ii. Using the 300A(summary),adding the number of recordable cases entered in
Column H+Column I +Column J to obtain the total injuries and illnesses.
2) The number of employee hours worked is located on the OSHA 300A Summary.
3) Using the formula provided below,the TRIR three(3)year average is calculated:
Please see Califomia Code of Regulations Tide B, Chapter 7, Subchapter t,Article 2 for
more information on determining a recordable injury and illness,
Total Recordable Injury Rate Formula:
#OSHA Recordable Iniunesrlllnesses x 200,000 = Company's Total Recordable
Employee Hours Worked For Calendar Year Incidence Rate
# OSHA /Employee =Company's Total
Calendar Recordable x 200,000 Hours Worked Recordable
Year InjRecordablees for Incidence Rate
Calendar Year (TRIR)
20 15 18 x200,000 1,982,582 (A) 1.81
20 14 37 x200,000 2,054,025 (B) 3.60
20 13 26 x200,000 2,136.333 (C) 2.43
TRIR A +g +C =D
3 Year
Average 3
b) Accident Frequency Factor Calculation Table
I From the Total Recordable Incidence Rate(TRIR)calculated for each year in the
table under Item a.)3.)above, the TRIR for each Calendar Year is copied into the
spaces below identified as(A), (B), and(C). The 3 Year Average from the table
above(D)is copied into the space below identified as(D).
2) The Bidder's industry NAICS code is looked up in the DIR Nonfatal Occupational
Injuries and Illness in California Summary Tables at
hko://www.dir.ca.aov/OPRUnonfatal,htm for each corresponding year'.
3) The DIR Industry Average is found for each corresponding year using Table 10
and entered in the spaces below identified as(E), (F), and(G).
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 6 of 7
Bid Submitted By: Flatiron West, Inc.
(Hems of Firm)
4) The formula provided below is used to calculate the DIR Industry 3 year average;
the product is entered into the space identified as(H)below.
5) Using the formula provided,the 3 year Accident Frequency Factor is calculated
and the product entered into the space identified as(1)below.
"DIR data has an approximate 10 month publishing delay. If the cument year is
unavailable,please use the previous year. For example, 2010 DIR data will be used for
both 2010 and 2011.
Formula:
Bidder's TRIR = Accident Frequency Factor
DIR Industry Average
Calendar Year Bidder TRIR DIR Industry
Average
2015 (A) 1.81 (E) 3.00
20 14 (B) 3.60 (F) 2.60
2015 (C) 2.43 (G) 3.20
Bidder's TRIR (D)2.61
3 Year Average
DIR Industry E+F+G =H
(H)2.93
3 YearAverage 3
3 Year Accident
Frequency DM = 1 (1) 0.89
Factor
CONTRACTOR r 11/21/16
Signature Date
Dale A.Nelson
Printed Name
Vice President
Printed Tide
Flatiron West, Inc. 237310
Company NAICS Code
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 7
Build the Best. Be the Best. FLATIRON
Flatiron West Inc.
17701a Cost Me lows Drive
San Marco;CA 92078
760 916 9100 cl
760 916 9101.
December 20, 2016 www.FlatlronToM.mm
VIA ELECTRONIC MAIL ONLY
Jay Kaura, C.P.M.
Contracts Administrator
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708
construction@orsd.com
Re: Response To Bid Protest
Entity: Orange County Sanitation District
Project: Consolidated Demolition and Utility Improvements at Plant 2
Project No.: P2-110
Low Bidder: Flatiron West, Inc.
Higher BidderlProtester., Shimmick Construction
Dear Mr. Kal
Flatiron West, Inc. is the lowest responsive bidder for the above-referenced Orange County
Sanitation District project. This responds to the protest of Shimmick Construction, dated
December 12, 2016. As detailed below, the protest is without merit and should be rejected.
Shimmick's protest is contrary to the District's express framework, based on false allegations,
and fails to raise any issue of bid responsiveness. Under California law, Shimmick has no basis
to force the District to accept its higher price in place of Flatiron's low bid. The project should be
awarded to Flatiron.
1. Factual Background
A. Flatiron And The Proiect
Flatiron West, Inc. is the Western Division of Flatiron, one of the largest and most
experienced contractors in the United States. A top infrastructure contractor, Flatiron has
completed large scale water projects such as the $32 million Leo J. Vander Lars Advanced
Water Treatment Facility Expansion in Long Beach, California.
The District published Notice Inviting Bids and bid documents ("Bid Documents")for
Project No. P2-110, Consolidated Demolition and Utility Improvements at Plant 2 (the "Project").
The Project generally consists of demolishing existing older facilities and their associated
equipment that are no longer in use, or are not structurally sound, or have reached the end of
their useful life at wastewater treatment Plant No. 2. The Project's scope also includes
construction and re-routing of utilities. The Engineer's estimate for the Project was
$25,931,438.00.
An Equal Opponunity Employer A HOCHTIEF Dampar,
Build the Best. Be the Best. FLATIRON
B. Flatiron's Low Bid And Protest
The District opened bids for the Project on November 21, 2016. Flatiron submitted the
low bid in the amount of$16,730,000.00, beating the Engineer's estimate by$9.2 million. One
of the higher bidders, Shimmick, protested Flatiron's low bid, contending the District is required
to accept Shimmick's higher bid price because of perceived deviations from the bid documents
by two of Flatiron's subcontractors: Penhall Company and Calmex Engineering, Inc. Both
alleged bid defects concern subcontractor Experience Modification Rate ("EMR"). Summarily,
Shimmick contends that Penhall and Calmex have EMRs slightly over 1.0, somehow rendering
Flatiron's bid non-responsive and unacceptable. The contention, as detailed below, is meritless.
2. Shimmick's Protest Seeks To Negate The Basic
Subcontractor Safety Review Framework Established By The District
Shimmick's protest is based on the false notion that subcontractor EMRs are a bid-
responsiveness issue under the District's Bid Documents. In fact, the District established a
subcontractor safety/EMR review and substitution framework in the Bid Documents—a
framework having nothing to do with bid responsiveness or acceptability. For this reason,
alone, Shimmick's protest is without merit.
The Bid Documents included a Safety Declaration in which bidders and their subcontractors
identified safety information about themselves, one of which was EMR. (Tab 1 [copy of Safety
Declaration].) The District set a hard cutoff for subcontractor EMRs, stating, "OCSD requires all
Subcontractors to have workers' compensation experience modification rate (EMR) at or below
1.25. (Tab 1, Safety Declaration, Question 7.) CONTRACTOR shall be required to substitute
any Subcontractor who fails to meet the minimum experience modification factor requirements."
(Tab 1, Safety Declaration, Question 7, emphasis added.)
It is undisputed that all of Flatiron's subcontractors substantially exceeded the District's 1.25
eligibility requirement. If that were not the case, the District would make Flatiron substitute the
subcontractor. Having a subcontractor with a disqualifying—over 1.25—EMR is not a bid
responsiveness issue under the Bid Documents.
Since all of Flatiron's subcontractors are well-within the 1.25 eligibility cutoff, Shimmick
relies instead on an information disclosure provision that also has nothing to do with bid
responsiveness. If a subcontractor has an EMR between 1.01 and 1.25, the District has the
option to require a bidder to submit additional information. (Tab 1, Safety Declaration, Question
7C.) If the District requests such information and determines it to be insufficient, then the
"CONTRACTOR shall be required to substitute any such subcontractor." (Ibid, emphasis
added.) Again, the District's Safety Declaration established the remedy of subcontractor
substitution rather than—as Shimmick contends—bid rejection. Notably, the Safety Declaration
is consistent with the District's Instructions To Bidders, I13-13(13)(6)(c), which states:
OCSD will perform the safety evaluation of the successful Bidder's Subcontractor(s) pursuant to
the criteria specified for Bidders in this Section. The successful bidder shall substitute all
Subcontractor(s) who fail the safety evaluation, with Subcontractor(s)who do meet the minimum
safety requirements for the prices as submitted in the Schedule of Prices and at no additional
costs to OCSD.
(Tab 2, IB-13(13)(6)(c), emphasis added.)
An Equal Opponumty Employer A HOCHTIEF Company
Build the Best. Be the Best FLATIRON
Summarily, Shimmick's protest is premised on a mischaracterization of the District's
subcontractor safety review and EMIR requirements. For subcontractors with EMRs above 1.01
and less than 1.25, the District reserved the right to obtain additional safety information and to
make the successful bidder replace the subcontractor if that information was insufficient. The
District's subcontractor safety/EMR review has nothing to do with bid responsiveness/bid
eligibility. For this reason, alone, the protest is without merit and should be rejected.
3. Shimmick's Allegation Regarding Calmex Is Simply Wrong
Shimmick contends Flatiron subcontractor Calmex misrepresented its EMR on its Safety
Declaration as less than 1.00. There was no misrepresentation. Calmex's EMIR is 0.69. This
was accurate on bid day and was represented accurately to the District by Calmex in
accordance with the requirements of the Safety Declaration.
Shimmick objects to Calmex's EMIR for the upcoming 2017 calendar year, which is 1.04—still
substantially lower than the District's 1.25 cutoff. Shimmick's argument is without merit for
several reasons. First, the Safety Declaration sought information regarding current EMRs, not
future EMRs that have yet to lake effect. As such, Calmex's declaration was accurate. Second,
and more importantly, an EMIR of slightly over 1.00 gives the District the opportunity to request
further information, which Calmex would supply if so requested. Under the framework in the bid
documents, this is not a bid responsiveness issue. At worst, the District could direct Flatiron to
substitute Calmex.
4. Shimmick's Allegation Against Penhall Is Without Merit
Penhall's bid-day Safety Declaration stated that Penhall had an EMIR less than 1.00. This was
based on a blended EMIR Penhall received from its workers' compensation insurer. The
blended EMIR is averaged from multiple reporting agencies. Notably, neither the Instructions to
Bidders nor the subcontractor section of Safety Declaration clearly required subcontractor
EMRs come from a specific source.
That said, the Instructions to Bidders required that prime-bidder's EMIR be supplied from the
Workers' Compensation Insurance Rating Bureau of California ("WCIRB"). Consistent with that
requirement, Penhall submitted (post-bid and through Flatiron) its EMIR as estimated by the
WCIRB: 1.09. (Tab 3 [Penhall's letter dated November 28, 2016 with Flatiron cover letter].)
While still far below the 1.25 eligibility cutoff, Penhall sought to ensure the District was aware of
the distinction, such that the District could seek more information in accordance with the
District's framework set forth above.
For the reasons stated above, Penhall's submission of additional information has nothing
to do with bid responsiveness. As such, Shimmick's protest is without merit and should be
rejected. Moreover, Penhall complied with the bid requirements and was forthright with the
District in clarifying its EMIR.
5. Even Absent The District's Subcontractor Substitution
Framework, Shimmick Did Not Raise A Bid Responsiveness Issue
Shimmick's fundamental criticisms would have nothing to do with bid responsiveness
even if the District had not outlined the safety review and subcontractor substitution framework.
Shimmick contends Flatiron's bid is non-responsive because Flatiron wrongly stated in its
An Equal ooWnunuv EroIl A NocNnEF C nngan,
Build the Best. Be the Best FLATIRON
Safety Declaration that Penhall and Calmex had EMRs below 1.00. Under California law,
Shimmick's allegation has nothing to do with bid responsiveness. As detailed below,
Shimmick's allegation is actually an attack on Flatiron's responsibility—an attack that falls very
short of the burden imposed by California law.
Bid responsiveness is determined from the face of the bid. (Taylor Bus Sam, Inc. v. San Diego
Bd. of Educ. (1987) 195 Cal.App.3d 1331, 1342 ["Taylor Bus'J; see also Great W. Contractors,
Inc. v. Irvine Unified Sch. Dist. (2010) 187 Cal.App.4th 1425, 1454, as modified(Sept. 30,
2010), opinion supplemented on denial of rang, No. G041688, 2010 W L 3789323 ["Great
West"].) Shimmick's protest is based on allegations and documentation not appearing on the
face of the bid. Rather, Shimmick refers to outside investigation and documents it obtained
outside of the bid protest from third parties. Since the alleged defect does not appear on the
face of the bid, Shimmick has not raised an issue of responsiveness.
The Court of Appeal addressed a similar protest in Great West. There, the protester—like
Shimmick in this case—claimed that the low bidder had wrongly checked "no"to a bid form
question, when it should have answered "yes." In Great West, the question was "Have you ever
been licensed under a different name or license number?' (Id. at p. 1431.) The protester
brought in outside information, showing the low bidder wrongly answered the question (one of
the officers had been associated with another license). (Id. at p. 1432.) Acting on the protest,
the public entity rejected the low bid as non-responsive. The Court of Appeal overturned the
rejection in a scathing opinion, concluding the alleged inaccurate statement in the bid did not
raise any issue of responsiveness. In overturning the wrongful bid rejection, the Court noted:
(1)there was no defect apparent from the face of the bid, so as to create a responsiveness
issue; (2)the protest allegation questioned the low bidder's competency and honesty, which
attacked the bidder's responsibility rather than bid responsiveness; and (3) rejecting the bid
based on the alleged false statement could affect the bidder's reputation, which required a
thorough due process hearing for the bidder to defend itself. (Id at pp. 1457-1458.)
Under Great West, Taylor Bus and other long-standing California law, Shimmick's protest fails
to raise any issue of bid responsiveness. For this reason, alone, the protest must be denied.
Shimmick apparently framed its protest as a responsiveness issue because it could not meet
the much higher burden required for a responsibility protest. To bar the District from accepting
Flatiron's low bid, Shimmick would have to prove the (non-existent) Calmex issue and the
(insignificant-and-corrected) Penhall issue somehow prevented Flatiron from meeting the
responsibility threshold set forth in Public Contract Code section 1103: "'Responsible bidder,' as
used in this part, means a bidder who has demonstrated the attribute of trustworthiness, as well
as quality, fitness, capacity, and experience to satisfactorily perform the public works contract."
Shimmick's allegations come nowhere near meeting that threshold. As such, Shimmick wrongly
cast is meritless allegations as bid responsiveness issues.'
6. Even If Shimmick Had Raised A Bid Responsiveness Issue,
It Still Could Not Force The District To Accept Its Higher Bid Price
Even assuming Shimmick's allegations were all true (a flawed assumption, as detailed
above) and that the allegations concerned bid responsiveness (also a flawed assumption, as
detailed above), Shimmick still could not force the District to reject Flatiron's low bid. California
' Shimmick also likely sought to side-step the responsibility framework because it would require Shinanick to
present its case at a due process hearing held by the District. A bid may not be rejected on responsibility grounds
without such a hearing. (D.H. Williams Const.,Inc. v. Clovis Unified Sch.Dist. (2007) 146 Cal.App.4th 757,764.)
An Equal Opponunlry En,pli r A HOCXTEF eampan,
Build the Best. Be the Best FLATIRON
public entities have the unfettered right to waive any bid responsiveness issue, so long as the
issue does not result in the bidder's competitive advantage over other bidders, i.e., affected
Flatiron's price. (Ghilotti Constr. Co. v. City of Richmond(1996)45 Cal.AppAth 897, 906
[Ghilotti].)
Shimmick's allegations cannot be interpreted as non-waiveable bid defects. Under the
District's framework, the subcontractors could be required to submit more information and—if
the District did not like what it saw—the District could direct Flatiron to replace them at no
additional costs to the District. This is not an advantage or benefit to Flatiron over the other
bidders. If anything, it would be a detrimentladditional risk to Flatiron. There is simply no
reasonable story to tell about Flatiron enjoying a competitive advantage based on Shimmick's
claims.
Shimmick, however, attempts to do so by advancing the notion that Flatiron, by virtue of
the alleged defects, could have withdrawn its bid without forfeiting its bid bond pursuant to
Public Contract Code section 5103. Shimmick advances the argument without detail or
analysis, because the argument collapses once those are added.
Under California law, a bid defect that affords a bidder relief from its bid under section 5103 is a
non-waiveable bid defect. Section 5103 allows a bidder to withdraw its bid when: (1)the bidder
makes a mistake in the bid; (2)the bidder gave notice of the mistake to the public entity within
five days of bid opening; (3)the mistake made the bid materially different than the bidder
intended; and (4)the "mistake was made in filling out the bid and not due to error in judgment or
to carelessness in inspecting the site of the work, or in reading the plans or specifications." The
case cited by Shimmick, MCM Construction, Inc. v. City and County of San Francisco,
demonstrates this rule. There, the Court observed that inadvertent clerical error of failing to
complete the bid form (omitting subcontract prices) could have been a section 5103 error, such
that the defect could not be waived. (MCM Construction, Inc. v. City and County of San
Francisco(1988) 66 Cal.App.4th 359, 376.)
Even if the District accepted all of Shimmick's allegations as true, the mistakes alleged by
Shimmick fall far short of the section 5103 elements. Most notably, there is no evidence
Flatiron's bid was materially different than Flatiron intended. Flatiron intended to use Calmex
and Penhall as subcontractors. Flatiron listed both subcontractors in its bid. Flatiron still
intends to use them. Flatiron submitted the bid it intended. For this reason, alone, Flatiron
would not be afforded relief from its bid under section 5103. As a result, Flatiron did not enjoy a
competitive advantage, and the District could accept Flatiron's low bid. Shimmick's position is
without merit.
Notably, Shimmick's section 5103 argument is also inconsistent with the basic nature of its
protest. Shimmick contends Flatiron, exercising poor judgment, did not take the time choose
and prequalify its subcontractors. At the same time, Shimmick contends—for purposes of
section 5103—that Flatiron's alleged mistakes were simply clerical errors and not"error[s] in
judgment." Summarily, Shimmick's allegations do not withstand the basic scrutiny of comparing
them to one another.
7. Conclusion
Shimmick's protest is a "Hail Mary' attempt to obtain the Project from second position based on
Flawed and conclusory allegations. The Court of Appeal has roundly rejected such protests,
establishing instead a practical approach:
An Equal Opporwmty Employer A HOCHTIEF Comparry
Build the Best. Be the Best FLATIRON
Other cases cited by Konica, supra, for the proposition that a deviating bid must be set aside
despite the absence of corruption or actual adverse effect on the bidding process make it clear
that the deviation must be capable of facilitating corruption or extravagance, or likely to affect
the amount of bids or the response of potential bidders. These considerations must be
evaluated from a practical rather than a hypothetical standpoint, with reference to the factual
circumstances of the case. They must also be viewed in Ili of the public interest, rather than
the private interest of a disappointed bidder. It certainly would amount to a disservice to the
public if a losing bidder were to be permitted to comb through the bid proposal or license
application of the low bidder after the fact, [and] cancel the low bid on minor technicalities, with
the hope of securing acceptance of his, a higher bid. Such construction would be adverse to
the best interests of the public and contrary to public policy.
(Ghilotti, supra, 45 Cal.App.4th at p. 908-09 [quotations and citations omitted].) Shimmick is
not acting "in light of the public interesP'—it just wants the District to pay its higher price. The
protest is mantissa. Flatiron respectfully requests the District reject the protest and award the
Project to Flatiron as the lowest responsive, responsible bidder.
Flatiron also respectfully requests notice of any hearings on this matter and copies of
any correspondence submitted in response to this letter. Thank you for your attention to this
matter.
If you have any questions please feel free to contact the undersigned at (760)916-9024 or
d nel son(a),flati roncorp.com.
Thank you.
D�A.A. Nels�
Vice President
Flatiron West, Inc.
An Equal Opponun,EMll A HOCHTIEF Compan,
Bid Submitted By:
(Name of Firm)
BF-6 SAFETY DECLARATION OF CONTRACTOR
The CONTRACTOR shall complete this form in its entirety and submit it to OCSD with its Bid in
accordance with the Part 2— Instructions to Bidders section entitled"Bid Evaluation Process".
Prior to submitting its Bid,the CONTRACTOR shall safety pre-qualify each of its
Subcontractors. The CONTRACTOR shall require each of its Subcontractors to complete
Items 5-9 of this form,execute and submit the form to the CONTRACTOR in accordance with
the Part 2—Instructions to Bidders section entitled "Bid Evaluation Process".
CONTRACTOR certifies the following (check the appropriate box):
1. Does the CONTRACTOR have any Serious, Willful, Repeat, Serious and Willful, or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code,during the past five-year period?
❑ No
❑ Yes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of
corrective actions being taken to abate further violations of Part 1 of Division 5 of the Labor
Code.
2. Accident Frequency
OCSD will evaluate the CONTRATOR's accident frequency factors for each calendar year
submitted on the CAL/OSHA 300/300A Logs and Summaries and its three (3)year
average using the Accident Frequency Factor tables as specified in the Instructions to
Bidders.
Prior to completing this Declaration, OCSD recommends that the CONTRACTOR calculate
its accident frequency factors for each calendar year listed and its three(3)year average
using the Accident Frequency Factor tables located in the Instructions to Bidders. The
results of those calculations should be used to answer the following questions:
OCSD requires the CONTRACTOR to have an accident frequency at or below a factor of
1.25 of the national average as published by the California Department of Industrial
Relations(DIR)for the specific North American Industry Classification System (NAICS)
Codes and applied to the accident history of the last three(3)years. Failure to check"Yes"
in either A. or B. below will render the Bid Non-Responsive and the Bid shall be rejected.
A. Does the CONTRACTOR have an accident frequency at or below a factor of 1.00 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three (3)years?
❑ Yes
OR
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 1 of 7
Bid Submitted By:
(Name a Firm)
B. Does the CONTRACTOR have an accident frequency within a factor of 1.01 to 1.25 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three (3)years?
❑ Yes
If 2.B. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce the CONTRACTOR's accident experience if the accident
frequency is within a factor of 1.01 to 1.25 of the state average as published by the
DIR for its NAICS code and applied to the accident history for the last three(3)years.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
3. Workers'Compensation Experience Modification Rate
OCSD requires the CONTRACTOR to have workers'compensation experience
modification rate(EMR)at or below 1.25.
Failure to check"Yes"in either A.or B.below will render the Bid Non-Responsive and the
Bid shall be rejected.
A. Is the CONTRACTOR's workers' compensation EMR at or below 1.00?
❑ Yes
OR
B. Is the CONTRACTOR's workers' compensation EMIR between 1.01 and 1.25?
❑ Yes
If 3.B. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce employee workplace injuries, illnesses and workers'
compensation losses if the CONTRACTOR's workers'compensation EMIR is between
1.01 to 1.25. Such evidence shall include any or all of the following information for
further consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 2 of 7
Bid Submitted By:
(Name of Firm)
4. Does the CONTRACTOR have injury prevention programs instituted to the extent required
by Section 3201.5 or 6401.7 of the Labor Code?
❑ Yes
❑ No
5. Does any Subcontractor have any Serious, Willful, Repeat, Serious and Willful, or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code,during the past five-year period?
❑ No
❑ Yes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of the
Subcontractors corrective actions being taken to abate further violations of Part 1 of
Division 5 of the Labor Code.
6. Accident Frequency of Subcontractors
OCSD will evaluate Subcontractors' accident frequency factors for each calendar year
submitted on the CAL/OSHA 300/300A Logs and Summaries and its three(3)year
average using the Accident Frequency Factor tables located in the Instructions to Bidders.
Prior to completing this Declaration,the CONTRACTOR shall require each of its
Subcontractors to calculate its accident frequency factors for each calendar year listed and
its three (3)year average using the Accident Frequency Factor tables located in the
Instructions to Bidders.The results of those calculations should be used to answer the
following questions:
OCSD requires all Subcontractors to have an accident frequency at or below a factor of
1.25 of the state average as published by the DIR for the specific NAICS Code and applied
to the accident history of the last three(3)years. CONTRACTOR shall be required to
substitute any Subcontractor who fails to meet the minimum accident frequency
requirements.
A. Do any of the CONTRACTOR's Subcontractors have an accident frequency above a
factor of 1.25 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history of the last three(3)years?
❑ No
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 3 of 7
Bid Submiffed By:
(Name of Firm)
B. Do all of the CONTRACTOR'S Subcontractors have an accident frequency at or below
a factor of 1.00 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history for the last three(3)years?
❑ No
❑ Yes
C. Do any of the CONTRACTOR's Subcontractors have an accident frequency within a
factor of 1.01 to 1.25 of the state average as published by the DIR for the specific
NAICS Code and applied to the accident history for the last three(3)years?
❑ No
❑ Yes
If 6.C. Is Yes, OCSD may require the CONTRACTOR to submit evidence from its
Subcontractor(s)of corrective actions being taken to reduce the Subcontractor's
accident experience if the Subcontractor's accident frequency is within a factor of 1.01
to 1.25 of the state average as published by the DIR for its NAICS code and applied to
the accident history for the last three (3)years. If any Subcontractor is deemed not
qualified based on the inadequacy of the corrective action taken to reduce the accident
experience, CONTRACTOR shall be required to substitute any such Subcontractor.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of Subcontractor's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
7. Workers'Compensation Experience Modification Rate of Subcontractors
OCSD requires all Subcontractors to have workers'compensation experience modification
rate(EMR)at or below 1.25. CONTRACTOR shall be required to substitute any
Subcontractor who fails to meet the minimum experience modification factor requirements.
A. Do any of the CONTRACTOR's Subcontractors have a workers' compensation EMR
above 1.25?
❑ No
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 4 of 7
Bid Submiffed By:
(Name of Firm)
B. Do all of the CONTRACTOR's Subcontractors have a workers'compensation EMR at
or below 1.00?
❑ No
❑ Yes
C. Do any of the CONTRACTOR's Subcontractors have a workers' compensation EMR
between 1.01 and 1.25?
❑ No
❑ Yes
If 7.C. Is Yes, OCSD may require that the CONTRACTOR submit evidence from its
Subcontractor(s) of corrective actions being taken to reduce employee workplace
injuries, illnesses and workers' compensation losses for each Subcontractor whose
workers' compensation EMR is between 1.01 to 1.25. If any Subcontractor is deemed
not qualified based on the inadequacy of the corrective action taken to reduce
employee workplace injuries, illnesses and workers' compensation losses,
CONTRACTOR shall be required to substitute any such Subcontractor. Such evidence
shall include any or all of the following for further consideration:
• Copy of Subcontractor's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three (3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
8. Do the CONTRACTOR's Subcontractors have injury prevention programs instituted to the
extent required by Section 3201.5 or 6401.7 of the Labor Code?
❑ Yes
❑ No
9. Accident Frequency Factor Worksheet
a) Total Recordable Incident Rate Calculation Table
Using the OSHA Form 300 and 300A logs and the table below,the Total Recordable
Incident Rate (TRIR)is calculated for the past three(3)completed calendar years and
three(3)year average in the table below. (Please see the California Department of
Industrial Relations(DIR)website for more detailed information)
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 5 of 7
Bid Submifted By:
(Name of Firm)
1) The number of nonfatal injuries and illnesses is determined for each year by:
i. Counting the number of OSHA recordable*cases for the year listed on the
OSHA Form 300(log)or,
ii. Using the 300A(summary), adding the number of recordable cases entered in
Column H +Column I +Column J to obtain the total injuries and illnesses.
2) The number of employee hours worked is located on the OSHA 300A Summary.
3) Using the formula provided below,the TRIR three (3)year average is calculated:
Please see California Code of Regulations Title 8, Chapter 7, Subchapter 1,Article 2 for
more information on determining a recordable injury and illness.
Total Recordable Injury Rate Formula:
#OSHA Recordable Iniuries/lllnesses x 200.000 = Company's Total Recordable
Employee Hours Worked For Calendar Year Incidence Rate
# OSHA Employee = Company's Total
Calendar Recordable x 200,000 Hours Worked Recordable
Year InjRecordabl ses for Incidence Rate
Calendar Year (TRIR)
20 x 200,000 (A)
20 x 200,000 (B)
20 x 200,000 (C)
3 Year A +B + C =D D
Average 3 ( )
b) Accident Frequency Factor Calculation Table
1) From the Total Recordable Incidence Rate(TRIR)calculated for each year in the
table under Item a.)3.)above,the TRIR for each Calendar Year is copied into the
spaces below identified as(A), (B), and(C). The 3 Year Average from the table
above(D)is copied into the space below identified as (D).
2) The Bidders industry NAICS code is looked up in the DIR Nonfatal Occupational
Injuries and Illness in California Summary Tables at
htto://www.dir.c .ciov/OPRUnonfatal.htm for each corresponding year**.
3) The DIR Industry Average is found for each corresponding year using Table 10
and entered in the spaces below identified as(E), (F),and (G).
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 6 of 7
Bid Submitted By:
(Name of Firm)
4) The formula provided below is used to calculate the DIR Industry 3 year average;
the product is entered into the space identified as(H)below.
5) Using the formula provided,the 3 year Accident Frequency Factor is calculated
and the product entered into the space identified as(1)below.
"DIR data has an approximate 10 month publishing delay. If the current year is
unavailable,please use the previous year. For example, 2010 DIR data will be used for
both 2010 and 2011.
Formula:
Bidders TRIR = Accident Frequency Factor
DIR Industry Average
Calendar Year Bidder TRIR DIR Industry
Average
20 (A) (E)
20 (B) (F)
20__ (C) (G)
Bidder's TRIR (D)
3 Year Average
DIR Industry E+F+ G =H in
3 YearAverage 3
3 Year Accident
Frequency DM = 1 (I)
Factor
CONTRACTOR
Signature Date
Printed Name
Printed Title
Company NAICS Code
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 7
IB-11 ESCROW OF BID DOCUMENTS
For projects greater than $10 million, refer to the Special Provisions entitled ESCROW OF
BID DOCUMENTS.
IB-12 REQUEST FOR COPIES OF BIDS
Requests for copies of Bids shall be made in writing via electronic telecommunication
(email)at construction(a)ocsd.com. Electronic copies of bids so requested will be provided
by OCSD within three (3) Business Days of receipt of the request.
IB-13 BID EVALUATION PROCESS
A. General
1. The Bid evaluation period shall close upon OCSD's completion of its review and
evaluation of the Bids. OCSD will give Bidders notice at the completion of Bid
evaluation.
2. During the Bid evaluation period, OCSD shall determine if Bids are Responsive and
Bidders are Responsible. Bids submitted in strict accordance with the IFB
Documents will be deemed Responsive. A Responsible Bidder has the apparent
ability to meet and successfully complete the requirements of the Contract
Documents. Responsibility determination includes, but is not limited to consideration
of a Bidder's trustworthiness, the quality of past performance, financial ability, and
the fitness and capacity to do the proposed Work in a satisfactory manner. Bidder
may be required to present further evidence that it has successfully performed
similar work of comparable magnitude or provide other proof satisfactory to OCSD
that it is competent to successfully perform the Work. In addition to contacting the
references provided by the Bidder, OCSD may, and retains its right to contact other
project owners and such other entities for which Bidder has performed or is
performing work. Determination of the Bidder's responsibility will be judged based on
all of the aforementioned criteria as established by information and documentation
provided by the Bidder in response to instructions and specific questions in the IFB
Documents, including but not limited to the Bid Submittal Forms. If the Bidder is a
Joint Venture, Bidder shall be required to submit information pertaining to its joint
venture partners, as specified in the Bid Submittal Forms.
B. Safety
1. All Safety evaluations will be performed utilizing data that is current at the date and
time of Bid Opening.
2. For purpose of evaluating the Safety record of the Bidder, if the Bidder has any
Serious, Willful, Repeat, Serious and Willful or Failure to Abate citations pursuant to
Part 1 of Division 5 of the Labor Code and has not taken appropriate corrective
action to abate further such violations; or if the Bidder has an accident frequency
factor between 1.01 and 1.25 and has not taken appropriate corrective action to
reduce its accident frequency experience; or if the Bidder has a workers'
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 22
compensation experience modification rate issued and published by the Workers'
Compensation Insurance Rating Bureau of California (WCIRB) between 1.01 and
1.25 and has not taken appropriate corrective action to reduce its workplace injuries,
illnesses and workers' compensation losses, or if the Bidder does not have injury
prevention programs instituted to the extent required by Section 3201.5 or 6401.7 of
the Labor Code, the Bidder may be deemed Not Responsible and its Bid rejected.
OCSD may require the Bidder to submit evidence of such corrective actions as
described above and as specified in the SAFETY DECLARATION OF
CONTRACTOR located in the Bid Submittal Forms.
3. If the Bidder has an accident frequency factor above 1.25 or a workers'
compensation experience modification rate issued and published by the Workers'
Compensation Insurance Rating Bureau of California (WCIRB)above 1.25, the Bid
shall be deemed Non-Responsive and the Bid rejected.
4. Failure by the two (2)apparent low Bidders to submit a completed Workers'
Compensation Experience Rating Form (also referred to as an Experience Rating
Worksheet)and/or the completed and signed CAUOSHA 300/300A Logs and
Summaries within three (3) Business Days after the Bid Opening, or provide the
reason(s)for exemption, as required, may result in their Bids being rejected as Non-
Responsive.
Should the two (2) apparent low Bidders fail to meet OCSD's requirements, the next
apparent low Bidder(s) shall be notified to submit the said documentation within the
three (3) Business Day time frame for OCSD review.
5. Accident Frequency Factor
OCSD will evaluate the Bidders accident frequency factors for each calendar year
submitted on the CAUOSHA 300/300A Logs and Summaries and its three (3)year
average using the Accident Frequency Factor tables shown below.
Prior to completing Part 5 BID SUBMITTAL FORMS, BF-6 SAFETY DECLARATION
OF CONTRACTOR(Safety Declaration) located in the Bid Submittal Forms, the
Bidder shall calculate its accident frequency factors for each calendar year listed and
its three (3) year average using the Accident Frequency Factor tables below. The
results of those calculations should be used to respond to the Accident Frequency
question on the Declaration.
a) Total Recordable Incident Rate Calculation Table
Using the OSHA Form 300 and 300A logs and the table below, the Total
Recordable Incident Rate (TRIR) is calculated for the past three (3) completed
calendar years and three (3)year average in the table below. (Please see the
California Department of Industrial Relations (DIR)website for more detailed
information)
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 8 of 22
1) The number of nonfatal injuries and illnesses is determined for each year by:
i. Counting the number of OSHA recordable* cases for the year listed on
the OSHA Form 300 (log)or,
ii. Using the 300A (summary), adding the number of recordable cases
entered in Column H + Column I + Column J to obtain the total injuries
and illnesses.
2) The number of employee hours worked is located on the OSHA 300A
Summary.
3) Using the formula provided below, the TRIR three (3)year average is
calculated:
"Please see California Code of Regulations Title 8, Chapter 7, Subchapter 1,Article 2 for
more information on determining a recordable injury and illness.
Total Recordable Injury Rate Formula:
#OSHA Recordable Iniuries4llnesses x 200,000 = Company's Total Recordable
Employee Hours Worked For Calendar Year Incidence Rate
# OSHA /Employee =Company's Total
Calendar Recordable x20D,000 Hours Worked Recordable
Year InjRecord Recordable
for Incidence Rate
Calendar Year (TRIR)
20 x 200,000 (A)
20 x 200,000 (B)
20 x 200,000 (C)
3 TRIR
A +B+ C =D D
Year
Average 3 ( )
b) Accident Freguencv Factor Calculation Table
1) From the Total Recordable Incidence Rate (TRIR) calculated for each year in
the table under Item a.) 3.) above, the TRIR for each Calendar Year is copied
into the spaces below identified as (A), (B), and (C). The 3 Year Average
from the table above (D) is copied into the space below identified as (D).
2) The Bidder's industry NAICS code is looked up in the California Department
of Industrial Relations (DIR) Nonfatal Occupational Injuries and Illnesses in
California, Summary Tables at hffo://www.dir.ca.gov/OPRUnonfatal.htm for
each corresponding year**.
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 9 of 22
3) The DIR Industry Average is found for each corresponding year using Table 10
and entered in the spaces below identified as (E), (F), and (G).
4) The formula provided below is used to calculate the DIR Industry 3 year
average; the product is entered into the space identified as (H) below.
5) Using the formula provided, the 3 year Accident Frequency Factor is
calculated and the product entered into the space identified as (I) below.
"DIR data has an approximate 10 month publishing delay. If the current year is unavailable,
please use the previous year. For example, 2010 DIR data will be used for both 2010 and
2011.
Formula:
Bidder's TRIR = Accident Frequency Factor
DIR Industry Average
Calendar Year Bidder TRIR DIR Industry
Average
20 (A) (E)
20-- (B) (F)
20__ (C) (G)
Bidder's TRIR
3 Year Average (D)
DIR Industry E+F+G =H (H)
3 Year Average 3
3 YearAccident
Frequency DM = 1 (1)
Factor
6. Subcontractors Safety Evaluation
a) Bidders must safety pre-qualify their Subcontractors prior to submitting their Bids.
To safety pre-qualify Subcontractors, each Subcontractor must have completed
the"Safety Declaration', as provided in the Bid Submittal Forms.
b) As described above in IB-10 SUBMISSION AND OPENING OF SEALED BIDS,
and Part 5 BID SUBMITTAL FORMS, BF-5 SAFETY, Bidders shall submit to
OCSD each Subcontractor's"Safety Declaration", completed Workers'
Compensation Experience Rating Form (also referred to as an Experience
Rating Worksheet), and CAL/OSHA 300/300A Logs and Summaries for each of
the last three (3)completed years as follows:
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 10 of 22
1) For Subcontractors listed on Part 5 BID SUBMITTAL FORMS, BF-2 LIST OF
SUBCONTRACTORS and all other Subcontractors of all tiers who will
commence Work within the first ninety(90) days after Award of Contract, the
required documentation shall be submitted to OCSD within three (3) Business
Days after Bid Opening.
2) For Subcontractors of all tiers who will commence Work at the Project site
after the initial ninety (90)days of Award of Contract, the required
documentation shall be submitted to OCSD not less than 30 days prior to the
commencement of Work at the Project site, or such other date as may be
specified by OCSD.
c) OCSD will perform the safety evaluation of the successful Bidder's
Subcontractor(s) pursuant to the criteria specified for Bidders in this Section. The
successful Bidder shall substitute all Subcontractor(s)who fail the safety
evaluation, with Subcontractor(s)who do meet the minimum safety requirements
for the prices as submitted in the Schedule of Prices and at no additional cost to
OCSD.
C. At the completion of the Project, OCSD may conduct a CONTRACTOR performance
evaluation which may be used in future assessments of determining Bidder responsibility
for future contract awards with OCSD. The written evaluation may be subject to public
review and copying pursuant to the California Public Records Act.
IB-14 DISCREPANCIES IN BID ITEMS
A. The Bidder shall furnish a price for each individual Bid item, unless otherwise stated in
the Schedule of Prices. Failure to do so may render the Bid(s) incomplete and Non-
Responsive and may cause its rejection. The Bid shall state the Unit Prices (when Unit
pricing is required), the total amount of each Bid item, and the "Total Amount of Bid"for
which the Bidder proposes to supply all labor, equipment, and materials necessary for
the complete and timely performance of the Work under the Contract. If the Unit Price
and the extended Total Price stated by a Bidder for any item are not in agreement, the
Unit Price alone shall be considered as representing the Bidder's intention, and the
extended Total Price for that item shall be corrected by OCSD to conform thereto.
OCSD will correct the extended Unit Price by adjusting the extended Total Price for the
affected item and correcting math errors to determine the Total Amount of Bid.
B. Should any Unit Price be left blank, or out of balance, or not accurately reflect the cost,
the Bid may be considered Non-Responsive.
C. Should any Unit Price or total price be left blank the Bid will be considered Non-
Responsive unless the blank item can be calculated from the information available (i.e.,
Total Price can be determined by multiplying the Unit Price by the estimated quantity).
D. If any one line item is left blank, and the above situations do not apply, no attempt shall
be made to reconcile the amounts. The Bid in this case shall be considered Non-
Responsive.
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 11 of 22
Build the Best. Be the Best. FL „=-k i ® ;
Flatiron Construction Corp.
1770 La Costa Meadows Drive
San Marcos,CA 92078
760 916 9100 MAIN
760 916 9101 .
w flatironccra.com
November 28,2016
Orange County Sanitation District
Attn:Jay Kaura,Contracts Administrator
10844 Ellis Avenue
Fountain Valley,CA 92708
RE: Consolidated Demolition and Utility Improvements at Plant 2
Safety Information Submittal—Penhall Company
Mr. Kaura,
Please find attached a letter from Penhall Company regarding their Safety Declaration information
submitted to Flatiron prior to bid time. In reference to this letter, Flatiron has included a copy of
Penhall's Safety Declaration submitted pre-bid and post-bid to document the change in information for
Penhall. This change does not materially affect Flatiron's bid or the listing of Penhall as our
subcontractor.
I can be reached at(760)916-9100 with any questions you have regarding this request.
Thank you.
/ gar
Da a A. also
Vice President
Flatiron West,Inc.
An Equal CMaftunny Employer AHOCHNEFEm ro
IM Lj )ILi�'�liilil�
11/28/16
Subject:Penhall Company EMR Clarification
Project:P2-110 Consolidated Demolition and Utility Improvements at Plant 2
To whom it may concern,
On Friday,11/18/16, Penhall Company submitted a proposal and safety declaration to Flatiron West Inc,
for the P2-110 Consolidated Demolition Project. On the safety declaration submitted on that date
Penhall Company stated that our company EMIR was below 1A. This was based off of a letter from our
insurance carrier(Lockton Insurance and Risk Management)which uses a"blended EMR"averaged from
multiple reporting agencies.
Post-bid, Penhall Company has been asked to provide documentation from WCIRB stating our
experience modification. The document reported from WCIRB indicates our Experience Modification is P
1.09. Penhall Company is providing this letter as clarification as to why there Is a difference between
the BF-6 document provided pre-bid compared to the BF-6 document provided post-bid.
The signed BF-6 document dated 11/22/16 question 6-B should be changed to"No"to reflect Penhall
Company's EMIR of 1.09.
Please do not hesitate to contact me If I can provide any additional information about Penhall
Company's commitment to safety.
Thanks,
vw '
Rick Viefhaus
Regional Contracts Manager
951-369-2805 j
Niefhaus@penhall.com
I
7-
$erring Orange County Sanitation District
Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708
714.962.2411 • www.ocsd.com
Brea
Buena Park December 27, 2016 Via Email: ocamaura)shimmick.com
Cyp - & Overnight Courier
Fountain Val
W. Andrew Sloane, III
Fvue _ Paul C. Camaur
- Shimmick Construction Co., Inc.
Garden Grove 16481 Scientific Way
Huntington Beach Irvine, CA 92618
lrvine SUBJECT: OCSD Response to Shimmick's Award Protest
La Hap Re: P2-110, Consolidated Demolition and Utility Improvements at Plant No. 2
La Palma
This letter is Orange County Sanitation District's (OSCD) response to the Bid Protest
Los Alamit filed by Shimmick Construction Company, Inc. (Shimmick)dated December 12, 2016.
OCSD has reviewed the protest and all necessary facts and written materials
Newport Beactt. submitted and hereby denies the relief requested based on the following:
Orange In summary, Shimmick submitted an "Award Protest" contesting the bid process
Placentia and award of the above referenced project to Flatiron West, Inc. (Flatiron).
Shimmick claims that the bid Flatiron submitted was non-responsive and should be
Santa Ana rejected due to (1) misstatements pertaining to the safety qualifications of its listed
subcontractors and (2)failure to comply with the Invitation for Bids (IFB) due to the
Seal Beach incorrect completion of bid submittal form BF-6 Safety Declaration of Contractor.
Sta
Both alleged bid defects concern the Experience Modification Rate (EMR)
Tustin reported for two subcontractors, Penhall Company (Penhall) and Calmex
Engineering, Inc. (Calmex). Shimmick contends that Penhall and Calmex have
Villa Park EMRs slightly over 1.0, and further allege that this deviation renders Flatiron's bid
County of Ora non-responsive and unacceptable. After careful review of the documents
submitted, these allegations lack merit.
Costa M
sanitary Di The subcontractor safety/EMR review and substitution framework provided in the
Bid Documents include a Safety Declaration in which bidders and subcontractors
Midway identify safety information, including EMRs. OCSD established a hard cutoff for
Sanitary Di
subcontractor EMRs, and as stated in the IFB, required subcontractors to have an
Irvine Re EMR at or below 1.25. The Contractor is required to substitute and subcontractor
Water Di who fails to meet the minimum EMR requirements. All of Flatiron's subcontractors
vorba Li meet this eligibility requirement. If they did not, OCSD would require Flatiron to
water Dist substitute the particular subcontractor. Instead, the information disclosure
provision regarding subcontractor EMRs allows OCSD the option to request
additional information from the bidder. Therefore, EMR of a subcontractor is not a
responsiveness issue under the Bid Documents.
Our Mission: 7o protect public health and the environment by Revision 013D15
providing effective wastewater collection, treatment, and recycling.
�y PNI
W
n,
Andrew Sloane, III
Page 2 of 2
In addition, the allegations regarding the EMRs reported for both Penhall and
Calmex are unfounded. As stated in the documents submitted by both Flatiron and
Shimmick, Calmex's EMIR for calendar year 2016 is 0.69. This rate was accurate
when the bid was submitted and was represented accurately to OCSD by Caimex
in accordance with the requirements of the Safety Declaration.
Penhall's bid-day Safety Declaration stated that Penhall had an EMIR less than 1.00.
This determination was based on a blended EMR Penhall received from its
workers' compensation insurer. While the Instructions to Bidders required the
Contractor's EMR be supplied from the Workers' Compensation Insurance Rating
Bureau of California (WCIRB), the Safety Declaration did not require subcontractor
EMRs from a specific source. Despite that, following the bid opening, Penhall
sought to ensure OCSD was aware of the distinction between its insurer's EMR
and the EMR as estimated by the WCIRB. Penhall submitted additional
information prior to the Bid Award, complied with the bid requirements and
accurately identified its EMIR to OCSD.
Both subcontractor EMRs were accurately reported to OCSD and meet the
requirements of the IFB. OCSD has carefully reviewed the bid submitted by
Flatiron in accordance with statutory requirements and OCSD's procedures, and
has determined that the bid submitted by Flatiron is responsive and responsible.
OCSD reviewed the Shimmick Bid Protest and arguments raised therein
protesting the award of Project No. 122-110 to Flatiron West, Inc. OCSD
finds that the Award Protest Statement allegations are unfounded. OCSD
will proceed to recommend award of the Project No. P2.110 to the lowest
responsive and responsible Bidder, Flatiron West Inc, at the Board of
J3ireefa g on January 25, 2017.
C//
M±Du�is
Contracts, Purchasing and Materials Management
Division Manager
MD:JSK:yp
Enclosure: Flatiron's Resonse to Bid Protest dated December 20, 2016
Revision 013015
Build the Best. Be the Best. FLATIRON
Flatiron West Inc.
17701a Cost Me lows Drive
San Marco;CA 92078
760 916 9100 cl
760 916 9101.
December 20, 2016 www.FlatlronToM.mm
VIA ELECTRONIC MAIL ONLY
Jay Kaura, C.P.M.
Contracts Administrator
Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708
construction@orsd.com
Re: Response To Bid Protest
Entity: Orange County Sanitation District
Project: Consolidated Demolition and Utility Improvements at Plant 2
Project No.: P2-110
Low Bidder: Flatiron West, Inc.
Higher BidderlProtester Shimmick Construction
Dear Mr. Kal
Flatiron West, Inc. is the lowest responsive bidder for the above-referenced Orange County
Sanitation District project. This responds to the protest of Shimmick Construction, dated
December 12, 2016. As detailed below, the protest is without merit and should be rejected.
Shimmick's protest is contrary to the District's express framework, based on false allegations,
and fails to raise any issue of bid responsiveness. Under California law, Shimmick has no basis
to force the District to accept its higher price in place of Flatiron's low bid. The project should be
awarded to Flatiron.
1. Factual Background
A. Flatiron And The Proiect
Flatiron West, Inc. is the Western Division of Flatiron, one of the largest and most
experienced contractors in the United States. A top infrastructure contractor, Flatiron has
completed large scale water projects such as the $32 million Leo J. Vander Lars Advanced
Water Treatment Facility Expansion in Long Beach, California.
The District published Notice Inviting Bids and bid documents ("Bid Documents")for
Project No. P2-110, Consolidated Demolition and Utility Improvements at Plant 2 (the "Project").
The Project generally consists of demolishing existing older facilities and their associated
equipment that are no longer in use, or are not structurally sound, or have reached the end of
their useful life at wastewater treatment Plant No. 2. The Project's scope also includes
construction and re-routing of utilities. The Engineer's estimate for the Project was
$25,931,438.00.
An Equal Opponunity Employer A HOCHTIEF Dampar,
Build the Best. Be the Best. FLATIRON
B. Flatiron's Low Bid And Protest
The District opened bids for the Project on November 21, 2016. Flatiron submitted the
low bid in the amount of$16,730,000.00, beating the Engineer's estimate by$9.2 million. One
of the higher bidders, Shimmick, protested Flatiron's low bid, contending the District is required
to accept Shimmick's higher bid price because of perceived deviations from the bid documents
by two of Flatiron's subcontractors: Penhall Company and Calmex Engineering, Inc. Both
alleged bid defects concern subcontractor Experience Modification Rate ("EMR"). Summarily,
Shimmick contends that Penhall and Calmex have EMRs slightly over 1.0, somehow rendering
Flatiron's bid non-responsive and unacceptable. The contention, as detailed below, is meritless.
2. Shimmick's Protest Seeks To Negate The Basic
Subcontractor Safety Review Framework Established By The District
Shimmick's protest is based on the false notion that subcontractor EMRs are a bid-
responsiveness issue under the District's Bid Documents. In fact, the District established a
subcontractor safety/EMR review and substitution framework in the Bid Documents—a
framework having nothing to do with bid responsiveness or acceptability. For this reason,
alone, Shimmick's protest is without merit.
The Bid Documents included a Safety Declaration in which bidders and their subcontractors
identified safety information about themselves, one of which was EMR. (Tab 1 [copy of Safety
Declaration].) The District set a hard cutoff for subcontractor EMRs, stating, "OCSD requires all
Subcontractors to have workers' compensation experience modification rate (EMR) at or below
1.25. (Tab 1, Safety Declaration, Question 7.) CONTRACTOR shall be required to substitute
any Subcontractor who fails to meet the minimum experience modification factor requirements."
(Tab 1, Safety Declaration, Question 7, emphasis added.)
It is undisputed that all of Flatiron's subcontractors substantially exceeded the District's 1.25
eligibility requirement. If that were not the case, the District would make Flatiron substitute the
subcontractor. Having a subcontractor with a disqualifying—over 1.25—EMR is not a bid
responsiveness issue under the Bid Documents.
Since all of Flatiron's subcontractors are well-within the 1.25 eligibility cutoff, Shimmick
relies instead on an information disclosure provision that also has nothing to do with bid
responsiveness. If a subcontractor has an EMR between 1.01 and 1.25, the District has the
option to require a bidder to submit additional information. (Tab 1, Safety Declaration, Question
7C.) If the District requests such information and determines it to be insufficient, then the
"CONTRACTOR shall be required to substitute any such subcontractor." (Ibid, emphasis
added.) Again, the District's Safety Declaration established the remedy of subcontractor
substitution rather than—as Shimmick contends—bid rejection. Notably, the Safety Declaration
is consistent with the District's Instructions To Bidders, I13-13(13)(6)(c), which states:
OCSD will perform the safety evaluation of the successful Bidder's Subcontractor(s) pursuant to
the criteria specified for Bidders in this Section. The successful bidder shall substitute all
Subcontractor(s) who fail the safety evaluation, with Subcontractor(s)who do meet the minimum
safety requirements for the prices as submitted in the Schedule of Prices and at no additional
costs to OCSD.
(Tab 2, IB-13(13)(6)(c), emphasis added.)
An Equal Opponumty Employer A HOCHTIEF Company
Build the Best. Be the Best FLATIRON
Summarily, Shimmick's protest is premised on a mischaracterization of the District's
subcontractor safety review and EMIR requirements. For subcontractors with EMRs above 1.01
and less than 1.25, the District reserved the right to obtain additional safety information and to
make the successful bidder replace the subcontractor if that information was insufficient. The
District's subcontractor safety/EMR review has nothing to do with bid responsiveness/bid
eligibility. For this reason, alone, the protest is without merit and should be rejected.
3. Shimmick's Allegation Regarding Calmex Is Simply Wrong
Shimmick contends Flatiron subcontractor Calmex misrepresented its EMR on its Safety
Declaration as less than 1.00. There was no misrepresentation. Calmex's EMIR is 0.69. This
was accurate on bid day and was represented accurately to the District by Calmex in
accordance with the requirements of the Safety Declaration.
Shimmick objects to Calmex's EMIR for the upcoming 2017 calendar year, which is 1.04—still
substantially lower than the District's 1.25 cutoff. Shimmick's argument is without merit for
several reasons. First, the Safety Declaration sought information regarding current EMRs, not
future EMRs that have yet to lake effect. As such, Calmex's declaration was accurate. Second,
and more importantly, an EMIR of slightly over 1.00 gives the District the opportunity to request
further information, which Calmex would supply if so requested. Under the framework in the bid
documents, this is not a bid responsiveness issue. At worst, the District could direct Flatiron to
substitute Calmex.
4. Shimmick's Allegation Against Penhall Is Without Merit
Penhall's bid-day Safety Declaration stated that Penhall had an EMIR less than 1.00. This was
based on a blended EMIR Penhall received from its workers' compensation insurer. The
blended EMIR is averaged from multiple reporting agencies. Notably, neither the Instructions to
Bidders nor the subcontractor section of Safety Declaration clearly required subcontractor
EMRs come from a specific source.
That said, the Instructions to Bidders required that prime-bidder's EMIR be supplied from the
Workers' Compensation Insurance Rating Bureau of California ("WCIRB"). Consistent with that
requirement, Penhall submitted (post-bid and through Flatiron) its EMIR as estimated by the
WCIRB: 1.09. (Tab 3 [Penhall's letter dated November 28, 2016 with Flatiron cover letter].)
While still far below the 1.25 eligibility cutoff, Penhall sought to ensure the District was aware of
the distinction, such that the District could seek more information in accordance with the
District's framework set forth above.
For the reasons stated above, Penhall's submission of additional information has nothing
to do with bid responsiveness. As such, Shimmick's protest is without merit and should be
rejected. Moreover, Penhall complied with the bid requirements and was forthright with the
District in clarifying its EMIR.
5. Even Absent The District's Subcontractor Substitution
Framework, Shimmick Did Not Raise A Bid Responsiveness Issue
Shimmick's fundamental criticisms would have nothing to do with bid responsiveness
even if the District had not outlined the safety review and subcontractor substitution framework.
Shimmick contends Flatiron's bid is non-responsive because Flatiron wrongly stated in its
An Equal ooWnunuv EroIl A NocNnEF C nngan,
Build the Best. Be the Best FLATIRON
Safety Declaration that Penhall and Calmex had EMRs below 1.00. Under California law,
Shimmick's allegation has nothing to do with bid responsiveness. As detailed below,
Shimmick's allegation is actually an attack on Flatiron's responsibility—an attack that falls very
short of the burden imposed by California law.
Bid responsiveness is determined from the face of the bid. (Taylor Bus Sam, Inc. v. San Diego
Bd. of Educ. (1987) 195 Cal.App.3d 1331, 1342 ["Taylor Bus'J; see also Great W. Contractors,
Inc. v. Irvine Unified Sch. Dist. (2010) 187 Cal.App.4th 1425, 1454, as modified(Sept. 30,
2010), opinion supplemented on denial of rang, No. G041688, 2010 W L 3789323 ["Great
West"].) Shimmick's protest is based on allegations and documentation not appearing on the
face of the bid. Rather, Shimmick refers to outside investigation and documents it obtained
outside of the bid protest from third parties. Since the alleged defect does not appear on the
face of the bid, Shimmick has not raised an issue of responsiveness.
The Court of Appeal addressed a similar protest in Great West. There, the protester—like
Shimmick in this case—claimed that the low bidder had wrongly checked "no"to a bid form
question, when it should have answered "yes." In Great West, the question was "Have you ever
been licensed under a different name or license number?' (Id. at p. 1431.) The protester
brought in outside information, showing the low bidder wrongly answered the question (one of
the officers had been associated with another license). (Id. at p. 1432.) Acting on the protest,
the public entity rejected the low bid as non-responsive. The Court of Appeal overturned the
rejection in a scathing opinion, concluding the alleged inaccurate statement in the bid did not
raise any issue of responsiveness. In overturning the wrongful bid rejection, the Court noted:
(1)there was no defect apparent from the face of the bid, so as to create a responsiveness
issue; (2)the protest allegation questioned the low bidder's competency and honesty, which
attacked the bidder's responsibility rather than bid responsiveness; and (3) rejecting the bid
based on the alleged false statement could affect the bidder's reputation, which required a
thorough due process hearing for the bidder to defend itself. (Id at pp. 1457-1458.)
Under Great West, Taylor Bus and other long-standing California law, Shimmick's protest fails
to raise any issue of bid responsiveness. For this reason, alone, the protest must be denied.
Shimmick apparently framed its protest as a responsiveness issue because it could not meet
the much higher burden required for a responsibility protest. To bar the District from accepting
Flatiron's low bid, Shimmick would have to prove the (non-existent) Calmex issue and the
(insignificant-and-corrected) Penhall issue somehow prevented Flatiron from meeting the
responsibility threshold set forth in Public Contract Code section 1103: "'Responsible bidder,' as
used in this part, means a bidder who has demonstrated the attribute of trustworthiness, as well
as quality, fitness, capacity, and experience to satisfactorily perform the public works contract."
Shimmick's allegations come nowhere near meeting that threshold. As such, Shimmick wrongly
cast is meritless allegations as bid responsiveness issues.'
6. Even If Shimmick Had Raised A Bid Responsiveness Issue,
It Still Could Not Force The District To Accept Its Higher Bid Price
Even assuming Shimmick's allegations were all true (a flawed assumption, as detailed
above) and that the allegations concerned bid responsiveness (also a flawed assumption, as
detailed above), Shimmick still could not force the District to reject Flatiron's low bid. California
' Shimmick also likely sought to side-step the responsibility framework because it would require Shinanick to
present its case at a due process hearing held by the District. A bid may not be rejected on responsibility grounds
without such a hearing. (D.H. Williams Const.,Inc. v. Clovis Unified Sch.Dist. (2007) 146 Cal.App.4th 757,764.)
An Equal Opponunlry En,pli r A HOCXTEF eampan,
Build the Best. Be the Best FLATIRON
public entities have the unfettered right to waive any bid responsiveness issue, so long as the
issue does not result in the bidder's competitive advantage over other bidders, i.e., affected
Flatiron's price. (Ghilotti Constr. Co. v. City of Richmond(1996)45 Cal.AppAth 897, 906
[Ghilotti].)
Shimmick's allegations cannot be interpreted as non-waiveable bid defects. Under the
District's framework, the subcontractors could be required to submit more information and—if
the District did not like what it saw—the District could direct Flatiron to replace them at no
additional costs to the District. This is not an advantage or benefit to Flatiron over the other
bidders. If anything, it would be a detrimentladditional risk to Flatiron. There is simply no
reasonable story to tell about Flatiron enjoying a competitive advantage based on Shimmick's
claims.
Shimmick, however, attempts to do so by advancing the notion that Flatiron, by virtue of
the alleged defects, could have withdrawn its bid without forfeiting its bid bond pursuant to
Public Contract Code section 5103. Shimmick advances the argument without detail or
analysis, because the argument collapses once those are added.
Under California law, a bid defect that affords a bidder relief from its bid under section 5103 is a
non-waiveable bid defect. Section 5103 allows a bidder to withdraw its bid when: (1)the bidder
makes a mistake in the bid; (2)the bidder gave notice of the mistake to the public entity within
five days of bid opening; (3)the mistake made the bid materially different than the bidder
intended; and (4)the "mistake was made in filling out the bid and not due to error in judgment or
to carelessness in inspecting the site of the work, or in reading the plans or specifications." The
case cited by Shimmick, MCM Construction, Inc. v. City and County of San Francisco,
demonstrates this rule. There, the Court observed that inadvertent clerical error of failing to
complete the bid form (omitting subcontract prices) could have been a section 5103 error, such
that the defect could not be waived. (MCM Construction, Inc. v. City and County of San
Francisco(1988) 66 Cal.App.4th 359, 376.)
Even if the District accepted all of Shimmick's allegations as true, the mistakes alleged by
Shimmick fall far short of the section 5103 elements. Most notably, there is no evidence
Flatiron's bid was materially different than Flatiron intended. Flatiron intended to use Calmex
and Penhall as subcontractors. Flatiron listed both subcontractors in its bid. Flatiron still
intends to use them. Flatiron submitted the bid it intended. For this reason, alone, Flatiron
would not be afforded relief from its bid under section 5103. As a result, Flatiron did not enjoy a
competitive advantage, and the District could accept Flatiron's low bid. Shimmick's position is
without merit.
Notably, Shimmick's section 5103 argument is also inconsistent with the basic nature of its
protest. Shimmick contends Flatiron, exercising poor judgment, did not take the time choose
and prequalify its subcontractors. At the same time, Shimmick contends—for purposes of
section 5103—that Flatiron's alleged mistakes were simply clerical errors and not"error[s] in
judgment." Summarily, Shimmick's allegations do not withstand the basic scrutiny of comparing
them to one another.
7. Conclusion
Shimmick's protest is a "Hail Mary' attempt to obtain the Project from second position based on
Flawed and conclusory allegations. The Court of Appeal has roundly rejected such protests,
establishing instead a practical approach:
An Equal Opporwmty Employer A HOCHTIEF Comparry
Build the Best. Be the Best FLATIRON
Other cases cited by Konica, supra, for the proposition that a deviating bid must be set aside
despite the absence of corruption or actual adverse effect on the bidding process make it clear
that the deviation must be capable of facilitating corruption or extravagance, or likely to affect
the amount of bids or the response of potential bidders. These considerations must be
evaluated from a practical rather than a hypothetical standpoint, with reference to the factual
circumstances of the case. They must also be viewed in Ili of the public interest, rather than
the private interest of a disappointed bidder. It certainly would amount to a disservice to the
public if a losing bidder were to be permitted to comb through the bid proposal or license
application of the low bidder after the fact, [and] cancel the low bid on minor technicalities, with
the hope of securing acceptance of his, a higher bid. Such construction would be adverse to
the best interests of the public and contrary to public policy.
(Ghilotti, supra, 45 Cal.App.4th at p. 908-09 [quotations and citations omitted].) Shimmick is
not acting "in light of the public interesP'—it just wants the District to pay its higher price. The
protest is mantissa. Flatiron respectfully requests the District reject the protest and award the
Project to Flatiron as the lowest responsive, responsible bidder.
Flatiron also respectfully requests notice of any hearings on this matter and copies of
any correspondence submitted in response to this letter. Thank you for your attention to this
matter.
If you have any questions please feel free to contact the undersigned at (760)916-9024 or
d nel son(a),flati roncorp.com.
Thank you.
D�A.A. Nels�
Vice President
Flatiron West, Inc.
An Equal Opponun,EMll A HOCHTIEF Compan,
Bid Submitted By:
(Name of Firm)
BF-6 SAFETY DECLARATION OF CONTRACTOR
The CONTRACTOR shall complete this form in its entirety and submit it to OCSD with its Bid in
accordance with the Part 2— Instructions to Bidders section entitled"Bid Evaluation Process".
Prior to submitting its Bid,the CONTRACTOR shall safety pre-qualify each of its
Subcontractors. The CONTRACTOR shall require each of its Subcontractors to complete
Items 5-9 of this form,execute and submit the form to the CONTRACTOR in accordance with
the Part 2—Instructions to Bidders section entitled "Bid Evaluation Process".
CONTRACTOR certifies the following (check the appropriate box):
1. Does the CONTRACTOR have any Serious, Willful, Repeat, Serious and Willful, or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code,during the past five-year period?
❑ No
❑ Yes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of
corrective actions being taken to abate further violations of Part 1 of Division 5 of the Labor
Code.
2. Accident Frequency
OCSD will evaluate the CONTRATOR's accident frequency factors for each calendar year
submitted on the CAL/OSHA 300/300A Logs and Summaries and its three (3)year
average using the Accident Frequency Factor tables as specified in the Instructions to
Bidders.
Prior to completing this Declaration, OCSD recommends that the CONTRACTOR calculate
its accident frequency factors for each calendar year listed and its three(3)year average
using the Accident Frequency Factor tables located in the Instructions to Bidders. The
results of those calculations should be used to answer the following questions:
OCSD requires the CONTRACTOR to have an accident frequency at or below a factor of
1.25 of the national average as published by the California Department of Industrial
Relations(DIR)for the specific North American Industry Classification System (NAICS)
Codes and applied to the accident history of the last three(3)years. Failure to check"Yes"
in either A. or B. below will render the Bid Non-Responsive and the Bid shall be rejected.
A. Does the CONTRACTOR have an accident frequency at or below a factor of 1.00 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three (3)years?
❑ Yes
OR
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 1 of 7
Bid Submitted By:
(Name a Firm)
B. Does the CONTRACTOR have an accident frequency within a factor of 1.01 to 1.25 of
the state average as published by the DIR for the specific NAICS Codes and applied to
the accident history for the last three (3)years?
❑ Yes
If 2.B. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce the CONTRACTOR's accident experience if the accident
frequency is within a factor of 1.01 to 1.25 of the state average as published by the
DIR for its NAICS code and applied to the accident history for the last three(3)years.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
3. Workers'Compensation Experience Modification Rate
OCSD requires the CONTRACTOR to have workers'compensation experience
modification rate(EMR)at or below 1.25.
Failure to check"Yes"in either A.or B.below will render the Bid Non-Responsive and the
Bid shall be rejected.
A. Is the CONTRACTOR's workers' compensation EMR at or below 1.00?
❑ Yes
OR
B. Is the CONTRACTOR's workers' compensation EMIR between 1.01 and 1.25?
❑ Yes
If 3.B. is Yes, OCSD may require the CONTRACTOR to submit evidence of corrective
actions being taken to reduce employee workplace injuries, illnesses and workers'
compensation losses if the CONTRACTOR's workers'compensation EMIR is between
1.01 to 1.25. Such evidence shall include any or all of the following information for
further consideration:
• Copy of CONTRACTOR's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 2 of 7
Bid Submitted By:
(Name of Firm)
4. Does the CONTRACTOR have injury prevention programs instituted to the extent required
by Section 3201.5 or 6401.7 of the Labor Code?
❑ Yes
❑ No
5. Does any Subcontractor have any Serious, Willful, Repeat, Serious and Willful, or Failure
to Abate citations of Part 1 (commencing with Section 6300)of Division 5 of the Labor
Code,during the past five-year period?
❑ No
❑ Yes
If Yes is checked, OCSD may require the CONTRACTOR to submit evidence of the
Subcontractors corrective actions being taken to abate further violations of Part 1 of
Division 5 of the Labor Code.
6. Accident Frequency of Subcontractors
OCSD will evaluate Subcontractors' accident frequency factors for each calendar year
submitted on the CAL/OSHA 300/300A Logs and Summaries and its three(3)year
average using the Accident Frequency Factor tables located in the Instructions to Bidders.
Prior to completing this Declaration,the CONTRACTOR shall require each of its
Subcontractors to calculate its accident frequency factors for each calendar year listed and
its three (3)year average using the Accident Frequency Factor tables located in the
Instructions to Bidders.The results of those calculations should be used to answer the
following questions:
OCSD requires all Subcontractors to have an accident frequency at or below a factor of
1.25 of the state average as published by the DIR for the specific NAICS Code and applied
to the accident history of the last three(3)years. CONTRACTOR shall be required to
substitute any Subcontractor who fails to meet the minimum accident frequency
requirements.
A. Do any of the CONTRACTOR's Subcontractors have an accident frequency above a
factor of 1.25 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history of the last three(3)years?
❑ No
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 3 of 7
Bid Submiffed By:
(Name of Firm)
B. Do all of the CONTRACTOR'S Subcontractors have an accident frequency at or below
a factor of 1.00 of the state average as published by the DIR for the specific NAICS
Code and applied to the accident history for the last three(3)years?
❑ No
❑ Yes
C. Do any of the CONTRACTOR's Subcontractors have an accident frequency within a
factor of 1.01 to 1.25 of the state average as published by the DIR for the specific
NAICS Code and applied to the accident history for the last three(3)years?
❑ No
❑ Yes
If 6.C. Is Yes, OCSD may require the CONTRACTOR to submit evidence from its
Subcontractor(s)of corrective actions being taken to reduce the Subcontractor's
accident experience if the Subcontractor's accident frequency is within a factor of 1.01
to 1.25 of the state average as published by the DIR for its NAICS code and applied to
the accident history for the last three (3)years. If any Subcontractor is deemed not
qualified based on the inadequacy of the corrective action taken to reduce the accident
experience, CONTRACTOR shall be required to substitute any such Subcontractor.
Such evidence shall include any or all of the following information for further
consideration:
• Copy of Subcontractor's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three(3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
7. Workers'Compensation Experience Modification Rate of Subcontractors
OCSD requires all Subcontractors to have workers'compensation experience modification
rate(EMR)at or below 1.25. CONTRACTOR shall be required to substitute any
Subcontractor who fails to meet the minimum experience modification factor requirements.
A. Do any of the CONTRACTOR's Subcontractors have a workers' compensation EMR
above 1.25?
❑ No
❑ Yes
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 4 of 7
Bid Submiffed By:
(Name of Firm)
B. Do all of the CONTRACTOR's Subcontractors have a workers'compensation EMR at
or below 1.00?
❑ No
❑ Yes
C. Do any of the CONTRACTOR's Subcontractors have a workers' compensation EMR
between 1.01 and 1.25?
❑ No
❑ Yes
If 7.C. Is Yes, OCSD may require that the CONTRACTOR submit evidence from its
Subcontractor(s) of corrective actions being taken to reduce employee workplace
injuries, illnesses and workers' compensation losses for each Subcontractor whose
workers' compensation EMR is between 1.01 to 1.25. If any Subcontractor is deemed
not qualified based on the inadequacy of the corrective action taken to reduce
employee workplace injuries, illnesses and workers' compensation losses,
CONTRACTOR shall be required to substitute any such Subcontractor. Such evidence
shall include any or all of the following for further consideration:
• Copy of Subcontractor's IIPP outlining any updates/revisions implemented to
reduce future occurrences.
• Any training taken place in the last three (3)years to prevent future occurrences.
• Any program/policy updates within the three-year period to address their injury
rates.
8. Do the CONTRACTOR's Subcontractors have injury prevention programs instituted to the
extent required by Section 3201.5 or 6401.7 of the Labor Code?
❑ Yes
❑ No
9. Accident Frequency Factor Worksheet
a) Total Recordable Incident Rate Calculation Table
Using the OSHA Form 300 and 300A logs and the table below,the Total Recordable
Incident Rate (TRIR)is calculated for the past three(3)completed calendar years and
three(3)year average in the table below. (Please see the California Department of
Industrial Relations(DIR)website for more detailed information)
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 5 of 7
Bid Submifted By:
(Name of Firm)
1) The number of nonfatal injuries and illnesses is determined for each year by:
i. Counting the number of OSHA recordable*cases for the year listed on the
OSHA Form 300(log)or,
ii. Using the 300A(summary), adding the number of recordable cases entered in
Column H +Column I +Column J to obtain the total injuries and illnesses.
2) The number of employee hours worked is located on the OSHA 300A Summary.
3) Using the formula provided below,the TRIR three (3)year average is calculated:
Please see California Code of Regulations Title 8, Chapter 7, Subchapter 1,Article 2 for
more information on determining a recordable injury and illness.
Total Recordable Injury Rate Formula:
#OSHA Recordable Iniuries/lllnesses x 200.000 = Company's Total Recordable
Employee Hours Worked For Calendar Year Incidence Rate
# OSHA Employee = Company's Total
Calendar Recordable x 200,000 Hours Worked Recordable
Year InjRecordabl ses for Incidence Rate
Calendar Year (TRIR)
20 x 200,000 (A)
20 x 200,000 (B)
20 x 200,000 (C)
3 Year A +B + C =D D
Average 3 ( )
b) Accident Frequency Factor Calculation Table
1) From the Total Recordable Incidence Rate(TRIR)calculated for each year in the
table under Item a.)3.)above,the TRIR for each Calendar Year is copied into the
spaces below identified as(A), (B), and(C). The 3 Year Average from the table
above(D)is copied into the space below identified as (D).
2) The Bidders industry NAICS code is looked up in the DIR Nonfatal Occupational
Injuries and Illness in California Summary Tables at
htto://www.dir.c .ciov/OPRUnonfatal.htm for each corresponding year**.
3) The DIR Industry Average is found for each corresponding year using Table 10
and entered in the spaces below identified as(E), (F),and (G).
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 6 of 7
Bid Submitted By:
(Name of Firm)
4) The formula provided below is used to calculate the DIR Industry 3 year average;
the product is entered into the space identified as(H)below.
5) Using the formula provided,the 3 year Accident Frequency Factor is calculated
and the product entered into the space identified as(1)below.
"DIR data has an approximate 10 month publishing delay. If the current year is
unavailable,please use the previous year. For example, 2010 DIR data will be used for
both 2010 and 2011.
Formula:
Bidders TRIR = Accident Frequency Factor
DIR Industry Average
Calendar Year Bidder TRIR DIR Industry
Average
20 (A) (E)
20 (B) (F)
20__ (C) (G)
Bidder's TRIR (D)
3 Year Average
DIR Industry E+F+ G =H in
3 YearAverage 3
3 Year Accident
Frequency DM = 1 (I)
Factor
CONTRACTOR
Signature Date
Printed Name
Printed Title
Company NAICS Code
BF-6 SAFETY DECLARATION OF CONTRACTOR C-BF-021115
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 7
IB-11 ESCROW OF BID DOCUMENTS
For projects greater than $10 million, refer to the Special Provisions entitled ESCROW OF
BID DOCUMENTS.
IB-12 REQUEST FOR COPIES OF BIDS
Requests for copies of Bids shall be made in writing via electronic telecommunication
(email)at construction(a)ocsd.com. Electronic copies of bids so requested will be provided
by OCSD within three (3) Business Days of receipt of the request.
IB-13 BID EVALUATION PROCESS
A. General
1. The Bid evaluation period shall close upon OCSD's completion of its review and
evaluation of the Bids. OCSD will give Bidders notice at the completion of Bid
evaluation.
2. During the Bid evaluation period, OCSD shall determine if Bids are Responsive and
Bidders are Responsible. Bids submitted in strict accordance with the IFB
Documents will be deemed Responsive. A Responsible Bidder has the apparent
ability to meet and successfully complete the requirements of the Contract
Documents. Responsibility determination includes, but is not limited to consideration
of a Bidder's trustworthiness, the quality of past performance, financial ability, and
the fitness and capacity to do the proposed Work in a satisfactory manner. Bidder
may be required to present further evidence that it has successfully performed
similar work of comparable magnitude or provide other proof satisfactory to OCSD
that it is competent to successfully perform the Work. In addition to contacting the
references provided by the Bidder, OCSD may, and retains its right to contact other
project owners and such other entities for which Bidder has performed or is
performing work. Determination of the Bidder's responsibility will be judged based on
all of the aforementioned criteria as established by information and documentation
provided by the Bidder in response to instructions and specific questions in the IFB
Documents, including but not limited to the Bid Submittal Forms. If the Bidder is a
Joint Venture, Bidder shall be required to submit information pertaining to its joint
venture partners, as specified in the Bid Submittal Forms.
B. Safety
1. All Safety evaluations will be performed utilizing data that is current at the date and
time of Bid Opening.
2. For purpose of evaluating the Safety record of the Bidder, if the Bidder has any
Serious, Willful, Repeat, Serious and Willful or Failure to Abate citations pursuant to
Part 1 of Division 5 of the Labor Code and has not taken appropriate corrective
action to abate further such violations; or if the Bidder has an accident frequency
factor between 1.01 and 1.25 and has not taken appropriate corrective action to
reduce its accident frequency experience; or if the Bidder has a workers'
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 22
compensation experience modification rate issued and published by the Workers'
Compensation Insurance Rating Bureau of California (WCIRB) between 1.01 and
1.25 and has not taken appropriate corrective action to reduce its workplace injuries,
illnesses and workers' compensation losses, or if the Bidder does not have injury
prevention programs instituted to the extent required by Section 3201.5 or 6401.7 of
the Labor Code, the Bidder may be deemed Not Responsible and its Bid rejected.
OCSD may require the Bidder to submit evidence of such corrective actions as
described above and as specified in the SAFETY DECLARATION OF
CONTRACTOR located in the Bid Submittal Forms.
3. If the Bidder has an accident frequency factor above 1.25 or a workers'
compensation experience modification rate issued and published by the Workers'
Compensation Insurance Rating Bureau of California (WCIRB)above 1.25, the Bid
shall be deemed Non-Responsive and the Bid rejected.
4. Failure by the two (2)apparent low Bidders to submit a completed Workers'
Compensation Experience Rating Form (also referred to as an Experience Rating
Worksheet)and/or the completed and signed CAUOSHA 300/300A Logs and
Summaries within three (3) Business Days after the Bid Opening, or provide the
reason(s)for exemption, as required, may result in their Bids being rejected as Non-
Responsive.
Should the two (2) apparent low Bidders fail to meet OCSD's requirements, the next
apparent low Bidder(s) shall be notified to submit the said documentation within the
three (3) Business Day time frame for OCSD review.
5. Accident Frequency Factor
OCSD will evaluate the Bidders accident frequency factors for each calendar year
submitted on the CAUOSHA 300/300A Logs and Summaries and its three (3)year
average using the Accident Frequency Factor tables shown below.
Prior to completing Part 5 BID SUBMITTAL FORMS, BF-6 SAFETY DECLARATION
OF CONTRACTOR(Safety Declaration) located in the Bid Submittal Forms, the
Bidder shall calculate its accident frequency factors for each calendar year listed and
its three (3) year average using the Accident Frequency Factor tables below. The
results of those calculations should be used to respond to the Accident Frequency
question on the Declaration.
a) Total Recordable Incident Rate Calculation Table
Using the OSHA Form 300 and 300A logs and the table below, the Total
Recordable Incident Rate (TRIR) is calculated for the past three (3) completed
calendar years and three (3)year average in the table below. (Please see the
California Department of Industrial Relations (DIR)website for more detailed
information)
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 8 of 22
1) The number of nonfatal injuries and illnesses is determined for each year by:
i. Counting the number of OSHA recordable* cases for the year listed on
the OSHA Form 300 (log)or,
ii. Using the 300A (summary), adding the number of recordable cases
entered in Column H + Column I + Column J to obtain the total injuries
and illnesses.
2) The number of employee hours worked is located on the OSHA 300A
Summary.
3) Using the formula provided below, the TRIR three (3)year average is
calculated:
"Please see California Code of Regulations Title 8, Chapter 7, Subchapter 1,Article 2 for
more information on determining a recordable injury and illness.
Total Recordable Injury Rate Formula:
#OSHA Recordable Iniuries4llnesses x 200,000 = Company's Total Recordable
Employee Hours Worked For Calendar Year Incidence Rate
# OSHA /Employee =Company's Total
Calendar Recordable x20D,000 Hours Worked Recordable
Year InjRecord Recordable
for Incidence Rate
Calendar Year (TRIR)
20 x 200,000 (A)
20 x 200,000 (B)
20 x 200,000 (C)
3 TRIR
A +B+ C =D D
Year
Average 3 ( )
b) Accident Freguencv Factor Calculation Table
1) From the Total Recordable Incidence Rate (TRIR) calculated for each year in
the table under Item a.) 3.) above, the TRIR for each Calendar Year is copied
into the spaces below identified as (A), (B), and (C). The 3 Year Average
from the table above (D) is copied into the space below identified as (D).
2) The Bidder's industry NAICS code is looked up in the California Department
of Industrial Relations (DIR) Nonfatal Occupational Injuries and Illnesses in
California, Summary Tables at hffo://www.dir.ca.gov/OPRUnonfatal.htm for
each corresponding year**.
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 9 of 22
3) The DIR Industry Average is found for each corresponding year using Table 10
and entered in the spaces below identified as (E), (F), and (G).
4) The formula provided below is used to calculate the DIR Industry 3 year
average; the product is entered into the space identified as (H) below.
5) Using the formula provided, the 3 year Accident Frequency Factor is
calculated and the product entered into the space identified as (I) below.
"DIR data has an approximate 10 month publishing delay. If the current year is unavailable,
please use the previous year. For example, 2010 DIR data will be used for both 2010 and
2011.
Formula:
Bidder's TRIR = Accident Frequency Factor
DIR Industry Average
Calendar Year Bidder TRIR DIR Industry
Average
20 (A) (E)
20-- (B) (F)
20__ (C) (G)
Bidder's TRIR
3 Year Average (D)
DIR Industry E+F+G =H (H)
3 Year Average 3
3 YearAccident
Frequency DM = 1 (1)
Factor
6. Subcontractors Safety Evaluation
a) Bidders must safety pre-qualify their Subcontractors prior to submitting their Bids.
To safety pre-qualify Subcontractors, each Subcontractor must have completed
the"Safety Declaration', as provided in the Bid Submittal Forms.
b) As described above in IB-10 SUBMISSION AND OPENING OF SEALED BIDS,
and Part 5 BID SUBMITTAL FORMS, BF-5 SAFETY, Bidders shall submit to
OCSD each Subcontractor's"Safety Declaration", completed Workers'
Compensation Experience Rating Form (also referred to as an Experience
Rating Worksheet), and CAL/OSHA 300/300A Logs and Summaries for each of
the last three (3)completed years as follows:
C-IB-050815
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 10 of 22
1) For Subcontractors listed on Part 5 BID SUBMITTAL FORMS, BF-2 LIST OF
SUBCONTRACTORS and all other Subcontractors of all tiers who will
commence Work within the first ninety(90) days after Award of Contract, the
required documentation shall be submitted to OCSD within three (3) Business
Days after Bid Opening.
2) For Subcontractors of all tiers who will commence Work at the Project site
after the initial ninety (90)days of Award of Contract, the required
documentation shall be submitted to OCSD not less than 30 days prior to the
commencement of Work at the Project site, or such other date as may be
specified by OCSD.
c) OCSD will perform the safety evaluation of the successful Bidder's
Subcontractor(s) pursuant to the criteria specified for Bidders in this Section. The
successful Bidder shall substitute all Subcontractor(s)who fail the safety
evaluation, with Subcontractor(s)who do meet the minimum safety requirements
for the prices as submitted in the Schedule of Prices and at no additional cost to
OCSD.
C. At the completion of the Project, OCSD may conduct a CONTRACTOR performance
evaluation which may be used in future assessments of determining Bidder responsibility
for future contract awards with OCSD. The written evaluation may be subject to public
review and copying pursuant to the California Public Records Act.
IB-14 DISCREPANCIES IN BID ITEMS
A. The Bidder shall furnish a price for each individual Bid item, unless otherwise stated in
the Schedule of Prices. Failure to do so may render the Bid(s) incomplete and Non-
Responsive and may cause its rejection. The Bid shall state the Unit Prices (when Unit
pricing is required), the total amount of each Bid item, and the "Total Amount of Bid"for
which the Bidder proposes to supply all labor, equipment, and materials necessary for
the complete and timely performance of the Work under the Contract. If the Unit Price
and the extended Total Price stated by a Bidder for any item are not in agreement, the
Unit Price alone shall be considered as representing the Bidder's intention, and the
extended Total Price for that item shall be corrected by OCSD to conform thereto.
OCSD will correct the extended Unit Price by adjusting the extended Total Price for the
affected item and correcting math errors to determine the Total Amount of Bid.
B. Should any Unit Price be left blank, or out of balance, or not accurately reflect the cost,
the Bid may be considered Non-Responsive.
C. Should any Unit Price or total price be left blank the Bid will be considered Non-
Responsive unless the blank item can be calculated from the information available (i.e.,
Total Price can be determined by multiplying the Unit Price by the estimated quantity).
D. If any one line item is left blank, and the above situations do not apply, no attempt shall
be made to reconcile the amounts. The Bid in this case shall be considered Non-
Responsive.
C-IB-050815
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 11 of 22
Build the Best. Be the Best. FL „=-k i ® ;
Flatiron Construction Corp.
1770 La Costa Meadows Drive
San Marcos,CA 92078
760 916 9100 MAIN
760 916 9101 .
w flatironccra.com
November 28,2016
Orange County Sanitation District
Attn:Jay Kaura,Contracts Administrator
10844 Ellis Avenue
Fountain Valley,CA 92708
RE: Consolidated Demolition and Utility Improvements at Plant 2
Safety Information Submittal—Penhall Company
Mr. Kaura,
Please find attached a letter from Penhall Company regarding their Safety Declaration information
submitted to Flatiron prior to bid time. In reference to this letter, Flatiron has included a copy of
Penhall's Safety Declaration submitted pre-bid and post-bid to document the change in information for
Penhall. This change does not materially affect Flatiron's bid or the listing of Penhall as our
subcontractor.
I can be reached at(760)916-9100 with any questions you have regarding this request.
Thank you.
/ gar
Da a A. also
Vice President
Flatiron West,Inc.
An Equal CMaftunny Employer AHOCHNEFEm ro
IM Lj )ILi�'�liilil�
11/28/16
Subject:Penhall Company EMR Clarification
Project:P2-110 Consolidated Demolition and Utility Improvements at Plant 2
To whom it may concern,
On Friday,11/18/16, Penhall Company submitted a proposal and safety declaration to Flatiron West Inc,
for the P2-110 Consolidated Demolition Project. On the safety declaration submitted on that date
Penhall Company stated that our company EMIR was below 1A. This was based off of a letter from our
insurance carrier(Lockton Insurance and Risk Management)which uses a"blended EMR"averaged from
multiple reporting agencies.
Post-bid, Penhall Company has been asked to provide documentation from WCIRB stating our
experience modification. The document reported from WCIRB indicates our Experience Modification is P
1.09. Penhall Company is providing this letter as clarification as to why there Is a difference between
the BF-6 document provided pre-bid compared to the BF-6 document provided post-bid.
The signed BF-6 document dated 11/22/16 question 6-B should be changed to"No"to reflect Penhall
Company's EMIR of 1.09.
Please do not hesitate to contact me If I can provide any additional information about Penhall
Company's commitment to safety.
Thanks,
vw '
Rick Viefhaus
Regional Contracts Manager
951-369-2805 j
Niefhaus@penhall.com
I
Phon m khin Vai
From: Construction
Sent: Tuesday, December 27,2016 11:40 AM
To: 'pcamaur@shimmi&com'
Subject: P2-110 OCSD Response to Shimmick's Bid Protest
Attachments: P2-110 OCSD Response to Shimmick's Bid Protest.pdf
Importance: High
Bcc; Kaura,Jay
Attention:W.Andrew Sloane, III & Paul C. Camaur
Attached is OCSD's response letter in reference to Shimmick's Bid Protest.The original letter was overnight mailed to your
attention today.
Orange County Sanitation District
Contracts,Purchasing&Material Management Division
www.ocsd.com
1
Phonomekhin,Yai
From: Paul Camaur <pcamaur®shimmick.com>
To: Construction
Sent: Tuesday, December 27,2016 11:49 AM
Subject: Read:P2-110 OCSD Response to Shimmick's Bid Protest
Yew message
To:
Subject:P2-110 OCSD Response to Shimmick's Bid Protest
Sent:Tuesday,December 27,2016 11:48:51 AM(UTC-08:00)Pacific Time(US&Canada)
was read on Tuesday,December 27,2016 11:48:45 AM(UTC-08:00)Pacific Time(US&Canada).
1
Page 1 of 1
'j\741 800-322-5555 www.gSO.com
Ship From Tracking #: 534486764 PDS
.ORANGE COUNTY SANITATION DISTRICT
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Reference: D926.37A
P2-110 TO PROTEST
Delivery Instructions:
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Signature Type: REQUIRED
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LABEL INSTRUCTIONS:
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label to your package, do not cover the barcode.
https://app.gso.com/Shipping/ShippingLabel 12/27/2016
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Serving: Orange County Sanitation District
Anaheim 10844 Ellis Avenue,Fountain Valley,CA 92708
714.962.2411 • www.ocsd.com
Brea
Buena Park December 5, 2016 Via Email: dnelson@flatironcorp.com
cypress & U.S. Mail
Fountain Valley
Dale A. Nelson
Fullerton Flatiron West, Inc.
1770 La Costa Meadows Drive
Garden Grove San Marcos, CA 92078
Huntington Beach
Irvine SUBJECT: AWARD RECOMMENDATION NOTICE
Re: P2-110, Consolidated Demolition and Utility Improvements at Plant No. 2
La Habra
La Palma The Orange County Sanitation District (OCSD) completed its evaluation of the Bids
Los Alamitos submitted in response to the Invitation for Bids for the above-referenced Project.
The lowest responsive, responsible Bidder is Flatiron West, Inc.
Newport Beach
The award recommendation will be forwarded to OCSD's Board of Directors for
Orange Contract award.
Placentia
The Board of Directors Meeting is scheduled for:
Santa Ana
Date: January 25, 2017
Seal Beach Time: 6:00 p.m.
Location: Orange County Sanitation District
Stanton Board Room, Administration Building
Tustin 10844 Ellis Avenue
Fountain Valley, CA 92708
Villa Park
The Final Agenda Report will not be posted until three days prior to the Board of
County of orange Directors Meeting. Should you wish to determine if the item has been placed on the
Costa Mesa agenda, please contact the Clerk of the Board Office at (714) 593-7130.
Sanitary District
Miry Di City
Sanitary District
Irvine Ranch
Water District Jay Kaura, C.P.M.
Contracts Administrator
Yorba Linda
Water District JSK:ms
cc: R. Thompson
h '? V. Pilko
J. Choi
K. Lore
Our Mission: To protect public health and the environment by Revision 013015
providing effective wastewater collection, treatment, and recycling.
PART A
CONTRACT AGREEMENT
C-CA-051016
TABLE OF CONTENTS
CONTRACT AGREEMENT
SECTION - 1 GENERAL CONDITIONS..................................................................1
SECTION -2 MATERIALS AND LABOR.................................................................4
SECTION -3 PROJECT..........................................................................................4
SECTION -4 PLANS AND SPECIFICATONS ........................................................5
SECTION -5 TIME OF COMMENCEMENT AND COMPLETION ..........................5
SECTION -6 TIME IS OF THE ESSENCE .............................................................5
SECTION -7 EXCUSABLE DELAYS......................................................................6
SECTION -8 EXTRA WORK...................................................................................6
SECTION -9 CHANGES IN PROJECT...................................................................7
SECTION - 10 LIQUIDATED DAMAGES FOR DELAY.............................................7
SECTION - 11 CONTRACT PRICE AND METHOD OF PAYMENT.........................7
SECTION - 12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF
FUNDS ..............................................................................................9
SECTION - 13 COMPLETION.................................................................................10
SECTION - 14 CONTRACTOR'S EMPLOYEES COMPENSATION.......................10
SECTION - 15 SURETY BONDS ............................................................................12
SECTION - 16 INSURANCE....................................................................................13
SECTION - 17 RISK AND INDEMNIFICATION.......................................................21
SECTION - 18 TERMINATION................................................................................22
SECTION - 19 WARRANTY....................................................................................22
SECTION -20 ASSIGNMENT.................................................................................23
SECTION -21 RESOLUTION OF DISPUTES ........................................................23
SECTION -22 SAFETY& HEALTH ........................................................................23
SECTION -23 NOTICES.........................................................................................24
C-CA-051016
CONTRACT AGREEMENT
ORANGE COUNTY SANITATION DISTRICT
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
THIS AGREEMENT is made and entered into, to be effective, this January 25, 2017, by and
between Flatiron West, Inc., hereinafter referred to as "CONTRACTOR"and the Orange County
Sanitation District, hereinafter referred to as "OCSD".
WITNESSETH
That for and in consideration of the promises and agreements hereinafter made and exchanged,
OCSD and CONTRACTOR agree as follows:
SECTION-1 GENERAL CONDITIONS
CONTRACTOR certifies and agrees that all the terms, conditions and obligations of the
Contract Documents as hereinafter defined, the location of the job site, and the conditions under
which the Work is to be performed have been thoroughly reviewed, and enters into this Contract
based upon CONTRACTOR's investigation of all such matters and is in no way relying upon
any opinions or representations of OCSD. It is agreed that this Contract represents the entire
agreement. It is further agreed that the Contract Documents are each incorporated into this
Contract by reference, with the same force and effect as if the same were set forth at length
herein, and that CONTRACTOR and its Subcontractors, if any, will be and are bound by any
and all of said Contract Documents insofar as they relate in any part or in any way, directly or
indirectly, to the Work covered by this Contract.
A. Contract Documents Order of Precedence
"Contract Documents" refers to those documents identified in the definition of"Contract
Documents" in the General Conditions—Definitions.
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 1 of 25
1. In the event of a conflict between one Contract Document and any of the other
Contract Documents, the provisions in the document highest in precedence shall be
controlling. The order of precedence of the Contract Documents is as follows:
a. Supplemental Agreements—the last in time being the first in precedence
b. Addenda issued prior to opening of Bids—the last in time being the first in
precedence
c. Contract Agreement
d. Permits and other regulatory requirements
e. Special Provisions
f. General Conditions (GC)
g. Notice Inviting Bids and Instruction to Bidders
h. Geotechnical Baseline Report(GBR), if attached as a Contract Document
I. Plans and Specifications—in these documents the order of precedence shall be:
i. Specifications (Divisions 01-17)
ii. Plans
H. General Requirements (GR)
iv. Standard Drawings and Typical Details
j. CONTRACTOR'S Bid
2. In the event of a conflict between terms within an individual Contract Document, the
conflict shall be resolved by applying the following principles as appears applicable:
a. Figured dimensions on the Contract Documents shall govern. Dimensions not
specified shall be as directed by the ENGINEER. Details not shown or
specified shall be the same as similar parts that are shown or specified, or as
directed. Full-size details shall take precedence over scale Drawings as to
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 2 of 25
shape and details of construction. Specifications shall govern as to material
and workmanship.
b. The Contract Documents calling for the higher quality material or workmanship
shall prevail. Materials or Work described in words, which so applied, have a
well known technical or trade meaning shall be deemed to refer to such
recognized standards. In the event of any discrepancy between any Drawings
and the figures thereon, the figures shall be taken as correct.
C. Scale Drawings, full-size details, and Specifications are intended to be fully
complementary and to agree. Should any discrepancy between Contract
Documents come to the CONTRACTOR's attention, or should an error occur in
the efforts of others, which affect the Work, the CONTRACTOR shall notify the
ENGINEER, in writing, at once. In the event any doubts or questions arise with
respect to the true meaning of the Contract Documents, reference shall be
made to the ENGINEER whose written decision shall be final. If the
CONTRACTOR proceeds with the Work affected without written instructions
from the ENGINEER, the CONTRACTOR shall be fully responsible for any
resultant damage or defect.
d. Anything mentioned in the Specifications and not indicated in the Plans, or
indicated in the Plans and not mentioned in the Specifications, shall be of like
effect as if indicated and mentioned in both. In case of discrepancy in the
Plans or Specifications, the matter shall be immediately submitted to OCSD's
ENGINEER, without whose decision CONTRACTOR shall not adjust said
discrepancy save only at CONTRACTOR's own risk and expense. The
decision of the ENGINEER shall be final.
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 3 of 25
In all matters relating to the acceptability of material, machinery or plant equipment;
classifications of material or Work; the proper execution, progress or sequence of the
Work; and quantities interpretation of the Contract Documents, the decision of the
ENGINEER shall be final and binding, and shall be a condition precedent to any payment
under the Contract, unless otherwise ordered by the Board of Directors.
B. Definitions
Capitalized terms used in this Contract are defined in the General Conditions, Definitions.
Additional terms may be defined in the Special Provisions.
SECTION—2 MATERIALS AND LABOR
CONTRACTOR shall furnish, under the conditions expressed in the Plans and Specifications, at
CONTRACTOR'S own expense, all labor and materials necessary, except such as are
mentioned in the Specifications to be furnished by OCSD, to construct and complete the
Project, in good workmanlike and substantial order. If CONTRACTOR fails to pay for labor or
materials when due, OCSD may settle such claims by making demand upon the Surety to this
Contract. In the event of the failure or refusal of the Surety to satisfy said claims, OCSD may
settle them directly and deduct the amount of payments from the Contract Price and any
amounts due to CONTRACTOR. In the event OCSD receives a stop payment notice from any
laborer or material supplier alleging non-payment by CONTRACTOR, OCSD shall be entitled to
deduct all of its costs and expenses incurred relating thereto, including but not limited to
administrative and legal fees.
SECTION-3 PROJECT
The Project is described as:
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 4 of 25
SECTION-4 PLANS AND SPECIFICATONS
The Work to be done is shown in a set of Plans and Specifications entitled:
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Said Plans and Specifications and any revision, amendments and addenda thereto are attached
hereto and incorporated herein as part of this Contract and referred to by reference.
SECTION—5 TIME OF COMMENCEMENT AND COMPLETION
CONTRACTOR agrees to commence the Project within 15 calendar days from the date set forth
in the "Notice to Proceed"sent by OCSD, unless otherwise specified therein and shall diligently
prosecute the Work to completion within 896 calendar days from the date of the "Notice to
Proceed" issued by OCSD, excluding delays caused or authorized by OCSD as set forth in
Sections 7, 8, and 9 hereof, and applicable provisions in the General Conditions. The time for
completion includes 21 calendar days determined by OCSD likely to be inclement weather when
CONTRACTOR will be unable to work.
In addition, CONTRACTOR shall accomplish such milestones within the periods of performance
set forth in Appendix A of the Special Provisions entitled "Work Completion Schedule."
SECTION—6 TIME IS OF THE ESSENCE
Time is of the essence of this Contract. As required by the Contract Documents,
CONTRACTOR shall prepare and obtain approval of all shop drawings, details and samples,
and do all other things necessary and incidental to the prosecution of CONTRACTOR's Work in
conformance with an approved construction progress schedule. CONTRACTOR shall
coordinate the Work covered by this Contract with that of all other contractors, subcontractors
and of OCSD, in a manner that will facilitate the efficient completion of the entire Work and
accomplish the required milestone(s), if any, by the applicable deadline(s) in accordance with
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 5 of 25
Section 5 herein. OCSD shall have the right to assert complete control of the premises on
which the Work is to be performed and shall have the right to decide the time or order in which
the various portions of the Work shall be installed or the priority of the work of subcontractors,
and, in general, all matters representing the timely and orderly conduct of the Work of
CONTRACTOR on the premises.
SECTION—7 EXCUSABLE DELAYS
CONTRACTOR shall only be excused for any delay in the prosecution or completion of the
Project as specifically provided in General Conditions, "Extensions for Delay", and the General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
Extensions of time and extra compensation arising from such excusable delays will be
determined in accordance with the General Conditions, "Extension of Time for Delay" and
"Contract Price Adjustments and Payments", and extensions of time and extra compensation as
a result of incurring undisclosed utilities will be determined in accordance with General
Requirements, "By CONTRACTOR or Others— Unknown Utilities during Contract Work".
OCSD's decision will be conclusive on all parties to this Contract.
SECTION—S EXTRA WORK
The Contract Price as set forth in Section 11, includes compensation for all Work performed by
CONTRACTOR, unless CONTRACTOR obtains a Change Order signed by a designated
representative of OCSD specifying the exact nature of the Extra Work and the amount of extra
compensation to be paid all as more particularly set forth in Section 9 hereof and the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)", "OWNER Initiated
Changes", and "Contract Price Adjustments and Payments".
In the event a Change Order is issued by OCSD pursuant to the Contract Documents, OCSD
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 6 of 25
shall extend the time fixed in Section 5 for completion of the Project by the number of days, if
any, reasonably required for CONTRACTOR to perform the Extra Work, as determined by
OCSD's ENGINEER. The decision of the ENGINEER shall be final.
SECTION—9 CHANGES IN PROJECT
OCSD may at any time, without notice to any Surety, by Change Order, make any changes in
the Work within the general scope of the Contract Document, including but not limited to
changes:
1. In the Specifications (including Drawings and designs);
2. In the time, method or manner of performance of the Work;
3. In OCSD-furnished facilities, equipment, materials, services or site; or
4. Directing acceleration in the performance of the Work.
No change of period of performance or Contract Price, or any other change in the Contract
Documents, shall be binding until the Contract is modified by a fully executed Change Order.
All Change Orders shall be issued in accordance with the requirements set forth in the General
Conditions, "Request for Change (Changes at CONTRACTOR's Request)" and "OWNER
Initiated Changes".
SECTION—10 LIQUIDATED DAMAGES FOR DELAY
Liquidated Damages shall be payable in the amounts and upon the occurrence of such events
or failure to meet such requirements or deadlines as provided in the Special Provisions,
"Liquidated Damages and Incentives."
SECTION—11 CONTRACT PRICE AND METHOD OF PAYMENT
A. OCSD agrees to pay and the CONTRACTOR agrees to accept as full consideration for the
faithful performance of this Contract, subject to any additions or deductions as provided in
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 25
approved Change Orders, the sum of Sixteen Million Seven Hundred Thirty Thousand
Dollars ($16,730,000)as itemized on the Attached Exhibit"A".
Upon satisfaction of the conditions precedent to payment set forth in the General
Requirements, Additional General Requirements and General Conditions (including but
not limited to Sections entitled "Mobilization Payment Requirements"and "Payment
Itemized Breakdown of Contract Lump Sum Prices"), there shall be paid to the
CONTRACTOR an initial Net Progress Payment for mobilization. OCSD shall issue at the
commencement of the job a schedule which shows:
1. A minimum of one payment to be made to the CONTRACTOR for each successive
four(4)week period as the Work progresses, and
2. The due dates for the CONTRACTOR to submit requests for payment to meet the
payment schedule.
After the initial Net Progress Payment, and provided the CONTRACTOR submits the
request for payment prior to the end of the day required to meet the payment schedule,
the CONTRACTOR shall be paid a Net Progress Payment on the corresponding monthly
payment date set forth in the schedule.
Payments shall be made on demands drawn in the manner required by law, accompanied
by a certificate signed by the ENGINEER, stating that the Work for which payment is
demanded has been performed in accordance with the terms of the Contract Documents,
and that the amount stated in the certificate is due under the terms of the Contract.
Payment applications shall also be accompanied with all documentation, records, and
releases as required by the Contract, Exhibit A, Schedule of Prices, and General
Conditions, "Payment for Work—General". The Total amount of Progress Payments shall
not exceed the actual value of the Work completed as certified by OCSD's ENGINEER.
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 8 of 25
The processing of payments shall not be considered as an acceptance of any part of the
Work.
B. As used in this Section, the following defined terms shall have the following meanings:
1. "Net Progress Payment' means a sum equal to the Progress Payment less the
Retention Amount and other qualified deductions (Liquidated Damages, stop
payment notices, etc.).
2. "Progress Payment' means a sum equal to:
a. the value of the actual Work completed since the commencement of the Work
as determined by OCSD;
b. plus the value of material suitably stored at the worksite, treatment plant or
approved storage yards subject to or under the control of OCSD since the
commencement of the Work as determined by OCSD;
C. less all previous Net Progress Payments;
d. less all amounts of previously qualified deductions;
e. less all amounts previously retained as Retention Amounts.
3. "Retention Amount'for each Progress Payment means the percentage of each
Progress Payment to be retained by OCSD to assure satisfactory completion of the
Contract. The amount to be retained from each Progress Payment shall be
determined as provided in the General Conditions—"Retained Funds; Substitution of
Securities."
SECTION—12 SUBSTITUTION OF SECURITIES IN LIEU OF RETENTION OF FUNDS
Pursuant to Public Contract Code Section 22300 at seq., the CONTRACTOR may, at its sole
expense, substitute securities as provided in General Conditions—"Retained Funds;
Substitution of Securities."
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 9 of 25
SECTION—13 COMPLETION
Final Completion and Final Acceptance shall occur at the time and in the manner specified in the
General Conditions, "Final Acceptance and Final Completion", "Final Payment" and Exhibit A-
Schedule of Prices.
Upon receipt of all documentation, records, and releases as required by the Contract from the
CONTRACTOR, OCSD shall proceed with the Final Acceptance as specified in General
Conditions.
SECTION—14 CONTRACTOR'S EMPLOYEES COMPENSATION
A. Davis-Bacon Act:
CONTRACTOR will pay and will require all Subcontractors to pay all employees on said
Project a salary or wage at least equal to the prevailing rate of per diem wages as
determined by the Secretary of Labor in accordance with the Davis-Bacon Act for each
craft or type of worker needed to perform the Contract. The provisions of the Davis-Bacon
Act shall apply only if the Contract is in excess of Two Thousand Dollars ($2,000.00)and
when twenty-five percent (25%) or more of the Contract is funded by federal assistance. If
the aforesaid conditions are met, a copy of the provisions of the Davis-Bacon Act to be
complied with are incorporated herein as a part of this Contract and referred to by
reference.
B. General Prevailing Rate:
OCSD has been advised by the State of California Director of Industrial Relations of its
determination of the general prevailing rate of per diem wages and the general prevailing
rate for legal holiday and overtime Work in the locality in which the Work is to be
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 10 of 25
performed for each craft or type of Work needed to execute this Contract, and copies of
the same are on file in the Office of the ENGINEER of OCSD. The CONTRACTOR
agrees that not less than said prevailing rates shall be paid to workers employed on this
public works Contract as required by Labor Code Section 1774 of the State of California.
Per California Labor Code 1773.2, OCSD will have on file copies of the prevailing rate of
per diem wages at its principal office and at each job site, which shall be made available to
any interested party upon request.
C. Forfeiture for Violation:
CONTRACTOR shall, as a penalty to OCSD, forfeit Two Hundred Dollars ($200.00)for
each calendar day or portion thereof for each worker paid (either by the CONTRACTOR or
any Subcontractor under it) less than the prevailing rate of per diem wages as set by the
Director of Industrial Relations, in accordance with Sections 1770-1780 of the California
Labor Code for the Work provided for in this Contract, all in accordance with Section 1775
of the Labor Code of the State of California.
D. Apprentices:
Sections 1777.5, 1777.6, 1777.7 of the Labor Code of the State of California, regarding
the employment of apprentices are applicable to this Contract and the CONTRACTOR
shall comply therewith if the prime contract involves Thirty Thousand Dollars ($30,000.00)
or more.
E. Workdav:
In the performance of this Contract, not more than eight(8) hours shall constitute a day's
work, and the CONTRACTOR shall not require more than eight(8) hours of labor in a day
from any person employed by him hereunder except as provided in paragraph (B)above.
CONTRACTOR shall conform to Article 3, Chapter 1, Part 7 (Section 1810 at sec.)of the
Labor Code of the State of California and shall forfeit to OCSD as a penalty, the sum of
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 11 of 25
Twenty-five Dollars ($25.00)for each worker employed in the execution of this Contract by
CONTRACTOR or any Subcontractor for each calendar day during which any worker is
required or permitted to labor more than eight(8) hours in any one calendar day and forty
(40) hours in any one week in violation of said Article. CONTRACTOR shall keep an
accurate record showing the name and actual hours worked each calendar day and each
calendar week by each worker employed by CONTRACTOR in connection with the
Project.
F. Registration: Record of Wages: Inspection:
CONTRACTOR shall comply with the registration requirements of Labor Code Section 1725.5.
Pursuant to Labor Code Section 1771.4, the Work is subject to compliance monitoring by the
California Department of Industrial Relations. CONTRACTOR shall maintain accurate payroll
records and shall submit payroll records to the Labor Commissioner pursuant to Labor Code
Section 1771.4(a)(3). Penalties for non-compliance with the requirements of Section 1776 may
be deducted from progress payments per Section 1776.
CONTRACTOR shall comply with the job site notices posting requirements established by
the Labor Commissioner per Title 8, California Code of Regulations Section 16461(a).
SECTION- 15 SURETY BONDS
CONTRACTOR shall, before entering upon the performance of this Contract, furnish Bonds
approved by OCSD's General Counsel—one in the amount of one hundred percent (100%)of
the Contract amount, to guarantee the faithful performance of the Work, and the other in the
amount of one hundred percent (100%)of the Contract amount to guarantee payment of all
claims for labor and materials furnished. As changes to the Contract occur via approved
Change Orders, the CONTRACTOR shall assure that the amounts of the Bonds are adjusted to
maintain 100% of the Contract Price. This Contract shall not become effective until such Bonds
are supplied to and approved by OCSD. Bonds must be issued by a Surety authorized by the
C-CA-051016 CONFORMED
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 12 of 25
State Insurance Commissioner to do business in California. The Performance Bond shall
remain in full force and effect through the warranty period, as specified in Section 19 below. All
Bonds required to be submitted relating to this Contract must comply with California Code of
Civil Procedure Section 995.630. Each Bond shall be executed in the name of the Surety
insurer under penalty of perjury, or the fact of execution of each Bond shall be duly
acknowledged before an officer authorized to take and certify acknowledgments, and either one
of the following conditions shall be satisfied:
A. A copy of the transcript or record of the unrevoked appointment, power of attorney, by-
laws, or other instrument, duly certified by the proper authority and attested by the seal of
the insurer entitling or authorizing the person who executed the Bond to do so for and on
behalf of the insurer, is on file in the Office of the County Clerk of the County of Orange; or
B. A copy of a valid power of attorney is attached to the Bond.
SECTION— 16 INSURANCE
CONTRACTOR shall purchase and maintain, for the duration of the Contract, insurance against
claims for injuries to persons, or damages to property which may arise from or in connection
with the performance of the Work hereunder, and the results of that Work by CONTRACTOR,
its agents, representatives, employees, or Subcontractors, in amounts equal to the
requirements set forth below. CONTRACTOR shall not commence Work under this Contract
until all insurance required under this Section is obtained in a form acceptable to OCSD, nor
shall CONTRACTOR allow any Subcontractor to commence Work on a subcontract until all
insurance required of the Subcontractor has been obtained. CONTRACTOR shall maintain all
of the foregoing insurance coverages in force through the point at which the Work under this
Contract is fully completed and accepted by OCSD pursuant to the provisions of the General
Conditions, "Final Acceptance and Final Completion'. Furthermore, CONTRACTOR shall
maintain all of the foregoing insurance coverages in full force and effect throughout the warranty
CONFORMED C-CA-051016
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 13 of 25
period, commencing on the date of Final Acceptance. The requirement for carrying the
foregoing insurance shall not derogate from the provisions for indemnification of OCSD by
CONTRACTOR under Section 17 of this Contract. Notwithstanding nor diminishing the
obligations of CONTRACTOR with respect to the foregoing, CONTRACTOR shall subscribe for
and maintain in full force and effect during the life of this Contract, inclusive of all changes to the
Contract Documents made in accordance with the provisions of the General Conditions,
"Request for Change (Changes at CONTRACTOR's Request)" and/or"OWNER Initiated
Changes", the following insurance in amounts not less than the amounts specified. OCSD
reserves the right to amend the required limits of insurance commensurate with the
CONTRACTOR's risk at any time during the course of the Project. No vehicles may enter
OCSD Premises/worksite without possessing the required insurance coverage.
CONTRACTOR's insurance shall also comply with all insurance requirements prescribed by
agencies from whom permits shall be obtained for the Work and any other third parties from
whom third party agreements are necessary to perform the Work (collectively, the "Third
Parties"), The Special Provisions may list such requirements and sample forms and
requirements from such Third Parties may be included in an attachment to the General
Requirements. CONTRACTOR bears the responsibility to discover and comply with all
requirements of Third Parties, including meeting specific insurance requirements, that are
necessary for the complete performance of the Work. To the extent there is a conflict between
the Third Parties' insurance requirements and those set forth by OCSD herein, the
requirement(s) providing the more protective coverage for both OSCD and the Third Parties
shall control and be purchased and maintained by CONTRACTOR.
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A. Limits of Insurance
1. General Liability: Eight Million Dollars ($8,000,000) per occurrence and a general
aggregate limit of Eight Million Dollars ($8,000,000)for bodily injury, personal injury
and property damage. Coverage shall include each of the following:
a. Premises-Operations.
b. Products and Completed Operations, with limits of at least Eight Million Dollars
($8,000,000) per occurrence and a general aggregate limit of Eight Million
Dollars ($8,000,000)which shall be in effect at all times during the warranty
period set forth in the Warranty section herein, and as set forth in the General
Conditions, "Warranty(CONTRACTOR's Guarantee)", plus any additional
extension or continuation of time to said warranty period that may be required
or authorized by said provisions.
C. Broad Form Property Damage, expressly including damage arising out of
explosion, collapse, or underground damage.
d. Contractual Liability, expressly including the indemnity provisions assumed
under this Contract.
e. Separation of Insured Clause, providing that coverage applies separately to
each insured, except with respect to the limits of liability.
f. Independent CONTRACTOR's Liability.
To the extent first dollar coverage, including defense of any claim, is not
available to OCSD or any other additional insured because of any SIR,
deductible, or any other form of self insurance, CONTRACTOR is obligated to
assume responsibility of insurer until the deductible, SIR or other condition of
insurer assuming its defense and/or indemnity has been satisfied.
CONTRACTOR shall be responsible to pay any deductible or SIR.
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g. If a crane will be used, the General Liability insurance will be endorsed to add
Riggers Liability coverage or its equivalent to cover the usage of the crane and
exposures with regard to the crane operators, riggers and others involved in
using the crane.
h. If divers will be used, the General Liability insurance will be endorsed to cover
marine liability or its equivalent to cover the usage of divers.
2. Automobile Liability: The CONTRACTOR shall maintain a policy of Automobile
Liability Insurance on a comprehensive form covering all owned, non-owned, and
hired automobiles, trucks, and other vehicles providing the following minimum limits
of liability coverage:
Either(1)a combined single limit of Five Million Dollars ($5,000,000) and a general
aggregate limit of Five Million Dollars ($5,000,000)for bodily injury, personal injury
and property damage;
Or alternatively, (2) Five Million Dollars ($5,000,000) per person for bodily injury and
Two Million Dollars ($2,000,000 per accident for property damage.
3. Umbrella Excess Liability: The minimum limits of general liability and automobile
liability insurance required, as set forth above, shall be provided for either in a single
policy of primary insurance or a combination of policies of primary and umbrella
excess coverage. Excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits for
general liability and automobile liability.
4. Drone Liability Insurance: If a drone will be used, drone liability insurance must be
maintained by CONTRACTOR in the amount of One Million Dollars ($1,000,000) in a
form acceptable by OCSD.
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5. Worker's Compensation/EmDlover's Liability: CONTRACTOR shall provide such
Worker's Compensation Insurance as required by the Labor Code of the State of
California, including employer's liability with a minimum limit of One Million Dollars
($1,000,000) per accident for bodily injury or disease. If an exposure to Jones Act
liability may exist, the insurance required herein shall include coverage with regard to
Jones Act claims.
Where permitted by law, CONTRACTOR hereby waives all rights of recovery by
subrogation because of deductible clauses, inadequacy of limits of any insurance
policy, limitations or exclusions of coverage, or any other reason against OCSD, its
or their officers, agents, or employees, and any other contractor or subcontractor
performing Work or rendering services on behalf of OCSD in connection with the
planning, development and construction of the Project. In all its insurance coverages
related to the Work, CONTRACTOR shall include clauses providing that each insurer
shall waive all of its rights of recovery by subrogation against OCSD, its or their
officers, agents, or employees, or any other contractor or subcontractor performing
Work or rendering services at the Project. Where permitted by law, CONTRACTOR
shall require similar written express waivers and insurance clauses from each of its
Subcontractors of every tier. A waiver of subrogation shall be effective as to any
individual or entity, even if such individual or entity (a)would otherwise have a duty
of indemnification, contractual or otherwise, (b)did not pay the insurance premium,
directly or indirectly, and (c)whether or not such individual or entity has an insurable
interest in the property damaged.
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6. Limits are Minimums: If CONTRACTOR maintains higher limits than the minimums
shown in this Section, OCSD requires and shall be entitled to coverage for the higher
limits maintained by the CONTRACTOR.
B. Deductibles and Self-Insured Retentions
Any deductibles or self-insured retentions must be declared to and approved by OCSD. At
the option of OCSD, either: the Insurer shall reduce or eliminate such deductibles or self-
insured retentions as respects OCSD, its Directors, officers, agents, CONSULTANTS, and
employees; or CONTRACTOR shall provide a financial guarantee satisfactory to OCSD
guaranteeing payment of losses and related investigations, claim administration, and
defense expenses.
C. Other Insurance Provisions
1. Each such policy of General Liability Insurance and Automobile Liability Insurance
shall be endorsed to contain, the following provisions:
a. OCSD, its Directors, officers, agents, CONSULTANTS, and employees, and all
public agencies from whom permits will be obtained, and their Directors,
officers, agents, and employees are hereby declared to be additional insureds
under the terms of this policy, but only with respect to the operations of
CONTRACTOR at or from any of the sites of OCSD in connection with this
Contract, or acts and omissions of the additional insured in connection with its
general supervision or inspection of said operations related to this Contract.
b. Insurance afforded by the additional insured endorsement shall apply as
primary insurance, and other insurance maintained by OCSD shall be excess
only and not contributing with insurance provided under this policy.
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[REVISED PER ADDENDUM NO. 6, ISSUED NOVEMBER 10, 20161
2. Each insurance policy required herein shall be endorsed to state that coverage shall
not be cancelled by either party, except after thirty (30)days prior written notice by
certified mail, return receipt requested, and that coverage shall not be cancelled for
non-payment of premium except after ten (10)days prior written notice by certified
mail, return receipt requested. Should there be material changes in coverage or an
increase in deductible or SIR amounts, CONTRACTOR undertakes to procure a
manuscript endorsement from its insurer giving 30 days prior notice of such an event
to OCSD, or to have its insurance broker/agent send to OCSD a certified letter
describing the changes in coverage and any increase in deductible or SIR amounts.
The certified letter must be sent Attention: Risk Management and shall be received
not less than twenty (20) days prior to the effective date of the change(s). The letter
must be signed by a Director or Officer of the broker/agent and must be on company
letterhead, and may be sent via e-mail in pdf format.
3. Coverage shall not extend to any indemnity coverage for the active negligence of
any additional insured in any case where an agreement to indemnify the additional
insured would be invalid under California Civil Code Section 2782(b).
4. If required by a public agency from whom permit(s)will be obtained, each policy of
General Liability Insurance and Automobile Liability Insurance shall be endorsed to
specify by name the public agency and its legislative members, officers, agents,
CONSULTANTS, and employees, to be additional insureds.
D. Acceptability of Insurers
Insurers must have an 'A-", or better, Policyholder's Rating, and a Financial Rating of at
least Class Vill, or better, in accordance with the most current A.M. Best Rating Guide.
OCSD recognizes that State Compensation Insurance Fund has withdrawn from
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participation in the A.M. Best Rating Guide process. Nevertheless, OCSD will accept
State Compensation Insurance Fund for the required policy of workers compensation
insurance, subject to OCSD's option, at any time during the term of this Contract, to
require a change in insurer upon twenty (20)days written notice. Further, OCSD will
require CONTRACTOR to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty (20)days of written notice to
CONTRACTOR by OCSD or its agent.
E. Verification of Coverage
CONTRACTOR shall furnish OCSD with original certificates and mandatory endorsements
affecting coverage. Said policies and endorsements shall conform to the requirements
herein stated. All certificates and endorsements are to be received and approved by
OCSD before Work commences. OCSD reserves the right to require complete, certified
copies of all required insurance policies, including endorsements, affecting the coverage
required by these Specifications at any time.
F. Subcontractors
CONTRACTOR shall be responsible to establish insurance requirements for any
Subcontractors hired by CONTRACTOR. The insurance shall be in amounts and types
reasonably sufficient to deal with the risk of loss involving the Subcontractor's operations
and work. OCSD and any public agency issuing permits for the Project must be named as
"Additional Insured"on any General Liability or Automobile Liability policy obtained by a
Subcontractor. The CONTRACTOR must obtain copies and maintain current versions of
all Subcontractors' policies, Certificate of Liability and mandatory endorsements effecting
coverage. Upon request, CONTRACTOR must furnish OCSD with the above referenced
required documents.
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G. Required Forms and Endorsements
1. Required ACORD Form
a. Certificate of Liability Form 25
2. Required Insurance Services Office, Inc. Endorsements (when alternative forms are
shown, they are listed in order of preference)
In the event any of the following forms are cancelled by Insurance Services Office,
Inc. (ISO), or are updated, the ISO replacement form or equivalent must be supplied.
a. Commercial General Liability Form CG-0001 10 01
b. Additional Insured Including Form CG-2010 10 01 and
Products-Completed Operations Form CG-2037 10 01
C. Waiver of Transfer of Rights of Form CG-2404 11 85; or
Recovery Against Others to Us/ Form CG-2404 10 93
Waiver of Subrogation
3. Required State Compensation Insurance Fund Endorsements
a. Waiver of Subrogation Endorsement No. 2570
b. Cancellation Notice Endorsement No. 2065
4. Additional Required Endorsements
a. Notice of Policy Termination Manuscript Endorsement
SECTION—17 RISK AND INDEMNIFICATION
All Work covered by this Contract done at the site of construction or in preparing or delivering
materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR shall save,
indemnify, defend, and keep OCSD and others harmless as more specifically set forth in
General Conditions, "General Indemnification".
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SECTION-18 TERMINATION
This Contract may be terminated in whole or in part in writing by OCSD in the event of
substantial failure by the CONTRACTOR to fulfill its obligations under this Agreement, or it may
be terminated by OCSD for its convenience provided that such termination is effectuated in a
manner and upon such conditions set forth more particularly in General Conditions,
"Termination for Default" and/or"Termination for Convenience", provided that no termination
may be effected unless proper notice is provided to CONTRACTOR at the time and in the
manner provided in said General Conditions. If termination for default or convenience is
effected by OCSD, an equitable adjustment in the price provided for in this Contract shall be
made at the time and in the manner provided in the General Conditions, "Termination for
Default" and "Termination for Convenience".
SECTION-19 WARRANTY
The CONTRACTOR agrees to perform all Work under this Contract in accordance with the
Contract Documents, including OCSD's designs, Drawings and Specifications.
The CONTRACTOR guarantees for a period of at least one (1) year from the date of Final
Acceptance of the Work, pursuant to the General Conditions, "Final Acceptance and Final
Completion" that the completed Work is free from all defects due to faulty materials, equipment
or workmanship and that it shall promptly make whatever adjustments or corrections which may
be necessary to cure any defects, including repairs of any damage to other parts of the system
resulting from such defects. OCSD shall promptly give notice to the CONTRACTOR of
observed defects. In the event that the CONTRACTOR fails to make adjustments, repairs,
corrections or other work made necessary by such defects, OCSD may do so and charge the
CONTRACTOR the cost incurred. The CONTRACTOR's warranty shall continue as to any
corrected deficiency until the later of(1)the remainder of the original one-year warranty period;
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or(2)one year after acceptance by OCSD of the corrected Work. The Performance Bond and
the Payment Bond shall remain in full force and effect through the guarantee period.
The CONTRACTOR'S obligations under this clause are in addition to the CONTRACTOR'S
other express or implied assurances under this Contract, including but not limited to specific
manufacturer or other extended warranties specified in the Plans and Specifications, or state
law and in no way diminish any other rights that OCSD may have against the CONTRACTOR
for faulty materials, equipment or Work.
SECTION-20 ASSIGNMENT
No assignment by the CONTRACTOR of this Contract or any part hereof, or of funds to be
received hereunder, will be recognized by OCSD unless such assignment has had prior written
approval and consent of OCSD and the Surety.
SECTION—21 RESOLUTION OF DISPUTES
OCSD and the CONTRACTOR shall comply with the provisions of California Public Contract
Code Section 20104 at. seq., regarding resolution of construction claims for any Claims which
arise between the CONTRACTOR and OCSD, as well as all applicable dispute and Claims
provisions as set forth in the General Conditions and as otherwise required by law.
SECTION—22 SAFETY & HEALTH
CONTRACTOR shall comply with all applicable safety and health requirements mandated by
federal, state, city and/or public agency codes, permits, ordinances, regulations, and laws, as
well as these Contract Documents, including but not limited to the General Requirements,
Section entitled "Safety" and Exhibit B OCSD Safety Standards.
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SECTION-23 NOTICES
Any notice required or permitted under this Contract may be given by ordinary mail at the
address set forth below. Any party whose address changes shall notify the other party in
writing.
TO OCSD: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Clerk of the Board
Copy to: Orange County Sanitation District
10844 Ellis Avenue
Fountain Valley, California 92708-7018
Attn: Construction Manager
Bradley R. Hogin, Esquire
Woodruff, Spradlin & Smart
555 Anton Boulevard
Suite 1200
Costa Mesa, California 92626
TO CONTRACTOR: Flatiron West, Inc.
1770 La Costa Meadows Drive
San Marcos, CA 92078
Copy to: Dale A. Nelson, Vice-President
Flatiron West, Inc.
1770 La Costa Meadows Drive
San Marcos, CA 92078
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IN WITNESS WHEREOF, the parties hereto have executed this Contract Agreement as the
date first hereinabove written.
CONTRACTOR: Flatiron West, Inc.
1770 La Costa Meadows Drive
San Marcos, CA 92078
By
Printed Name
Its
CONTRACTOR's State License No. 772589 (Expiration Date— 12/3112017)
OCSD: Orange County Sanitation District
By
Gregory C. Seboum, PLS
Chair, Board of Directors
By
Kelly Lore
Clerk of the Board
By
Marc Dubois
Contracts, Purchasing and Materials
Management Division Manager
CONFORMED C-CA-051016
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EXHIBIT A
SCHEDULE OF PRICES
C-EXA-080414
TABLE OF CONTENTS
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION ..............................................................................1
EXA-2 PROGRESS PAYMENTS....................................................................................1
EXA-3 RETENTION AND ESCROW ACCOUNTS .........................................................1
EXA-4 STOP PAYMENT NOTICE ..................................................................................3
EXA-5 PAYMENT TO SUBCONTRACTORS..................................................................3
EXA-6 PAYMENT OF TAXES.........................................................................................3
EXA-7 FINAL PAYMENT ................................................................................................4
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT.....5
ATTACHMENT 1 CERTIFICATION FOR REQUEST FOR PAYMENT........................7
ATTACHMENT 2 SCHEDULE OF PRICES ...........................................................8
C-EXA-080414
EXHIBIT A
SCHEDULE OF PRICES
EXA-1 BASIS OF COMPENSATION
CONTRACTOR will be paid the Contract Price according to the Schedule of
Prices, and all other applicable terms and conditions of the Contract
Documents.
EXA-2 PROGRESS PAYMENTS
Progress payments will be made in accordance with all applicable terms and
conditions of the Contract Documents, including, but not limited to:
1. Contract Agreement—Section 11 —"Contract Price and Method of
Payment;"
2. General Conditions—"Payment—General";
3. General Conditions—"Payment—Applications for Payment";
4. General Conditions—"Payment— Mobilization Payment Requirements;"
5. General Conditions—"Payment— Itemized Breakdown of Contract Lump
Sum Prices";
6. General Conditions—"Contract Price Adjustments and Payments";
7. General Conditions—"Suspension of Payments";
8. General Conditions—"OCSD's Right to Withhold Certain Amounts and
Make Application Thereof"; and
9. General Conditions—"Final Payment."
EXA-3 RETENTION AND ESCROW ACCOUNTS
A. Retention:
OCSD shall retain a percentage of each progress payment to assure
satisfactory completion of the Work. The amount to be retained from each
progress payment shall be determined as provided in General Conditions—
"Retained Funds; Substitution of Securities". In all contracts between
CONTRACTOR and its Subcontractors and/or Suppliers, the retention may not
exceed the percentage specified in the Contract Documents.
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B. Substitution of Securities:
CONTRACTOR may, at its sole expense, substitute securities as provided in
General Conditions—"Retained Funds; Substitution of Securities." Payment of
Escrow Agent:
In lieu of substitution of securities as provided above, the CONTRACTOR may
request and OCSD shall make payment of retention earned directly to the
escrow agent at the expense of the CONTRACTOR. At the expense of the
CONTRACTOR, the CONTRACTOR may direct the investment of the
payments into securities consistent with Government Code §16430 and the
CONTRACTOR shall receive the interest earned on the investments upon the
same terms provided for in this article for securities deposited by the
CONTRACTOR. Upon satisfactory completion of the Contract, the
CONTRACTOR shall receive from the escrow agent all securities, interest and
payments received by the escrow agent from OCSD, pursuant to the terms of
this article. The CONTRACTOR shall pay to each Subcontractor, not later than
twenty (20)calendar days after receipt of the payment, the respective amount
of interest earned, net of costs attributed to retention withheld from each
Subcontractor, on the amount of retention withheld to ensure the performance
of the Subcontractor. The escrow agreement used by the escrow agent
pursuant to this article shall be substantially similar to the form set forth in
§22300 of the California Public Contract Code.
C. Release of Retention:
Upon Final Acceptance of the Work, the CONTRACTOR shall submit an
invoice for release of retention in accordance with the terms of the Contract.
D. Additional Deductibles:
In addition to the retentions described above, OCSD may deduct from each
progress payment any or all of the following:
1. Liquidated Damages that have occurred as of the date of the application for
progress payment;
2. Deductions from previous progress payments already paid, due to OCSD's
discovery of deficiencies in the Work or non-compliance with the
Specifications or any other requirement of the Contract;
3. Sums expended by OCSD in performing any of the CONTRACTOR'S
obligations under the Contract that the CONTRACTOR has failed to
perform, and;
4. Other sums that OCSD is entitled to recover from the CONTRACTOR
under the terms of the Contract, including without limitation insurance
deductibles and assessments.
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The failure of OCSD to deduct any of the above-identified sums from a
progress payment shall not constitute a waiver of OCSD's right to such sums or
to deduct them from a later progress payment.
EXA-4 STOP PAYMENT NOTICE
In addition to other amounts properly withheld under this article or under other
provisions of the Contract, OCSD shall retain from progress payments
otherwise due the CONTRACTOR an amount equal to one hundred twenty-five
percent (125%)of the amount claimed under any stop payment notice under
Civil Code§9350 at. seq. or other lien filed against the CONTRACTOR for
labor, materials, supplies, equipment, and any other thing of value claimed to
have been furnished to and/or incorporated into the Work; or for any other
alleged contribution thereto. In addition to the foregoing and in accordance with
Civil Code§9358 OCSD may also satisfy its duty to withhold funds for stop
payment notices by refusing to release funds held in escrow pursuant to public
receipt of a release of stop payment notice executed by a stop payment notice
claimant, a stop payment notice release bond, an order of a court of competent
jurisdiction, or other evidence satisfactory to OCSD that the CONTRACTOR
has resolved such claim by settlement.
EXA-5 PAYMENT TO SUBCONTRACTORS
Requirements
1. The CONTRACTOR shall pay all Subcontractors for and on account of
Work performed by such Subcontractors, not later than seven (7) days after
receipt of each progress payment as required by the California Business
and Professions Code §7108.5. Such payments to Subcontractors shall be
based on the measurements and estimates made pursuant to article
progress payments provided herein.
2. Except as specifically provided by law, the CONTRACTOR shall pay all
Subcontractors any and all retention due and owing for and on account of
Work performed by such Subcontractors not later than seven (7)days after
CONTRACTOR'S receipt of said retention proceeds from OCSD as
required by the California Public Contract Code§7107.
EXA-6 PAYMENT OF TAXES
Unless otherwise specifically provided in this Contract, the Contract Price
includes full compensation to the CONTRACTOR for all taxes. The
CONTRACTOR shall pay all federal, state, and local taxes, and duties
applicable to and assessable against any Work, including but not limited to
retail sales and use, transportation, export, import, business, and special taxes.
The CONTRACTOR shall ascertain and pay the taxes when due. The
CONTRACTOR will maintain auditable records, subject to OCSD reviews,
confirming that tax payments are current at all times.
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EXA-7 FINAL PAYMENT
After Final Acceptance of the Work, as more particularly set forth in the
General Conditions, "Final Acceptance and Final Completion", and after
Resolution of the Board authorizing final payment and satisfaction of the
requirements as more particularly set forth in General Conditions—"Final
Payment", a final payment will be made as follows:
1. Prior to Final Acceptance, the CONTRACTOR shall prepare and submit an
application for Final Payment to OCSD, including:
a. The proposed total amount due the CONTRACTOR, segregated by
items on the payment schedule, amendments, Change Orders, and
other bases for payment;
b. Deductions for prior progress payments;
c. Amounts retained;
d. A conditional waiver and release on final payment for each
Subcontractor(per Civil Code Section 8136);
e. A conditional waiver and release on final payment on behalf of the
CONTRACTOR (per Civil Code Section 8136);
f. List of Claims the CONTRACTOR intends to file at that time or a
statement that no Claims will be filed,
g. List of pending unsettled claims, stating claimed amounts, and copies of
any and all complaints and/or demands for arbitration received by the
CONTRACTOR; and
h. For each and every claim that resulted in litigation or arbitration which
the CONTRACTOR has settled, a conformed copy of the Request for
Dismissal with prejudice or other satisfactory evidence the arbitration is
resolved.
2. The application for Final Payment shall include complete and legally
effective releases or waivers of liens and stop payment notices satisfactory
to OCSD, arising out of or fled in connection with the Work. Prior progress
payments shall be subject to correction in OCSD's review of the application
for Final Payment. Claims filed with the application for Final Payment must
be otherwise timely under the Contract and applicable law.
3. Within a reasonable time, OCSD will review the CONTRACTOR'S
application for Final Payment. Any recommended changes or corrections
will then be forwarded to the CONTRACTOR. Within ten (10) calendar days
after receipt of recommended changes from OCSD, the CONTRACTOR will
make the changes, or list Claims that will be filed as a result of the
changes, and shall submit the revised application for Final Payment. Upon
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acceptance by OCSD, the revised application for Final Payment will
become the approved application for Final Payment.
4. If no Claims have been fled with the initial or any revised application for
Final Payment, and no Claims remain unsettled within thirty-five (35)
calendar days after Final Acceptance of the Work by OCSD, and
agreements are reached on all issues regarding the application for Final
Payment, OCSD, in exchange for an executed release, satisfactory in form
and substance to OCSD, will pay the entire sum found due on the approved
application for Final Payment, including the amount, if any, allowed on
settled Claims.
5. The release from the CONTRACTOR shall be from any and all Claims
arising under the Contract, except for Claims that with the concurrence of
OCSD are specifically reserved, and shall release and waive all unreserved
Claims against OCSD and its officers, directors, employees and authorized
representatives. The release shall be accompanied by a certification by the
CONTRACTOR that:
a. It has resolved all Subcontractors, Suppliers and other Claims that are
related to the settled Claims included in the Final Payment;
b. It has no reason to believe that any party has a valid claim against the
CONTRACTOR or OCSD which has not been communicated in writing
by the CONTRACTOR to OCSD as of the date of the certificate;
c. All warranties are in full force and effect, and;
d. The releases and the warranties shall survive Final Payment.
6. If any claims remain open, OCSD may make Final Payment subject to
resolution of those claims. OCSD may withhold from the Final Payment an
amount not to exceed one hundred fifty percent (150%)of the sum of the
amounts of the open claims, and one hundred twenty-five percent (125%)
of the amounts of open stop payment notices referred to in article entitled
stop payment notices herein.
7. The CONTRACTOR shall provide an unconditional waiver and release on
final payment from each Subcontractor and Supplier providing Work under
the Contract(per Civil Code Section 8138) and an unconditional waiver and
release on final payment on behalf of the CONTRACTOR (per Civil Code
Section 8138)within thirty (30)days of receipt of Final Payment.
EXA-8 DISCOVERY OF DEFICIENCIES BEFORE AND AFTER FINAL PAYMENT
Notwithstanding OCSD's acceptance of the application for Final Payment and
irrespective of whether it is before or after Final Payment has been made,
OCSD shall not be precluded from subsequently showing that:
1. The true and correct amount payable for the Work is different from that
previously accepted;
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2. The previously-accepted Work did not in fact conform to the Contract
requirements, or;
3. A previous payment or portion thereof for Work was improperly made.
OCSD also shall not be stopped from demanding and recovering damages
from the CONTRACTOR, as appropriate, under any of the foregoing
circumstances as permitted under the Contract or applicable law.
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ATTACHMENTI
CERTIFICATION FOR REQUEST FOR PAYMENT
I hereby certify under penalty of perjury as follows:
That the claim for payment is in all respects true, correct; that the services mentioned
herein were actually rendered and/or supplies delivered to OCSD in accordance with the
Contract.
I understand that it is a violation of both the federal and California False Claims Acts to
knowingly present or cause to be presented to OCSD a false claim for payment or
approval.
A claim includes a demand or request for money. It is also a violation of the False
Claims Acts to knowingly make use of a false record or statement to get a false claim
paid. The term "knowingly" includes either actual knowledge of the information,
deliberate ignorance of the truth or falsity of the information, or reckless disregard for the
truth or falsity of the information. Proof of specific intent to defraud is not necessary
under the False Claims Acts. I understand that the penalties under the Federal False
Claims Act and State of California False Claims Act are non-exclusive, and are in
addition to any other remedies which OCSD may have either under contract or law.
I hereby further certify, to the best of my knowledge and belief, that:
1. The amounts requested are only for performance in accordance with the
Specifications, terms, and conditions of the Contract;
2. Payments to Subcontractors and Suppliers have been made from previous payments
received under the Contract, and timely payments will be made from the proceeds of
the payment covered by this certification;
3. This request for progress payments does not include any amounts which the prime
CONTRACTOR intends to withhold or retain from a Subcontractor or Supplier in
accordance with the terms and conditions of the subcontract; and
4. This certification is not to be construed as Final Acceptance of a Subcontractor's
performance.
Name
Title
Date
CONFORMED C-EXA-080414
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 7 of 8
ATTACHMENT
SCHEDULE OF PRICES
See next pages from the Bid Submittal Forms (Flatiron West, Inc.):
BF-14 Schedule of Prices, Pages 1-2
C-EXA-080414 CONFORMED
PROJECT NO.P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 8 of 8
Bid Submitted By: Flatiron West, Inc.
(Name of Fem)
BF-14 SCHEDULE OF PRICES
INSTRUCTIONS
A. General
For Unit Prices, it is understood that the following quantities are approximate only and are
solely for the purpose of estimating the comparison of Bids, and that the actual value of Work
will be computed based upon the actual quantities in the completed Work,whether they be
more or less than those shown. CONTRACTOR'S compensation for the Work under the
Contract Documents will be computed based upon the lump sum amount of the Contract at
time of award, plus any additional or deleted costs approved by OCSD via approved Change
Orders, pursuant to the Contract Documents.
Bidder shall separately price and accurately reflect costs associated with each line item,
leaving no blanks. Any and all modifications to the Bid must be initialed by an authorized
representative of the Bidder in accordance with the Instructions to Bidders, Preparation of Bid.
Bidders are reminded of Instruction to Bidders, Discrepancy in Bid Items,which, in summary,
provides that the total price for each item shall be based on the Unit Price listed for each item
multiplied by the quantity;and the correct Total Price for each Rem shall be totaled to
determine the Total Amount of Bid.
All applicable costs including overhead and profit shall he reflected in the respective unit costs
and the TOTAL AMOUNT OF BID. The Bid price shall include all costs to complete the Work,
including profit,overhead, etc., unless otherwise specified in the Contract Documents. All
applicable sales taxes, state and/or federal, and any other special taxes, patent rights or
royalties shall be included in the prices quoted in this Bid.
B. Basis of Award
AWARD OF THE CONTRACT WILL BE MADE ON THE BASIS OF THE LOWEST
RESPONSIVE AND RESPONSIBLE BID. THE LOWEST BID IS DEFINED AS THE"TOTAL
AMOUNT OF BID'LISTED IN THIS BID, UNLESS OTHERWISE SPECIFIED BELOW.
Note 1: Base Bid. Includes all costs necessary to furnish all labor, materials, equipment and
services for the construction of the Project per the Contract Documents.
BF-14 SCHEDULE OF PRICES C-BF-021115
PROJECT NO. P2-110
CONSOLIDATED DEMOLITION AND UTILITY IMPROVEMENTS AT PLANT 2
Page 1 of 2
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PROFESSIONAL CONSTRUCTION SERVICES AGREEMENT
THIS AGREEMENT, is made and entered into to be effective the 25U day of January, 2017
by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as
"SANITATION DISTRICT", and STANTEC CONSULTING SERVICES, INC., for purposes of this
Agreement hereinafter referred to as "CONSULTANT".
WITNESSETH:
WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT to provide
Construction Support Services for Consolidated Demolition and Utility Improvements at
Plant No. 2, Project No. P2-110; and,
WHEREAS, CONSULTANT is qualified to provide the necessary services for
Construction Support Services in connection with these requirements; and,
WHEREAS, the SANITATION DISTRICT has adopted procedures in accordance with
the SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-47 Section 4.03(B)for
the continuation of services and has proceeded in accordance with said procedures to perform
this work; and,
WHEREAS, at its regular meeting on January 25, 2017 the Board of Directors pursuant
to SANITATION DISTRICT Board of Directors' Ordinance No. OCSD-47, 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 in a manner consistent
with the prevailing standards governing engineering practice.
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C. In the event that work is not performed to the satisfaction of the SANITATION
DISTRICT and does not conform to the requirements of this Agreement or any
applicable industry standards, the CONSULTANT shall, without additional
compensation, promptly correct or revise any errors or deficiencies in its designs,
drawings, specifications, or other services within the timeframe specified by the
Project Engineer/Project Manager. The SANITATION DISTRICT may charge to
CONSULTANT all costs, expenses and damages associated with any such
corrections or revisions.
D. All CADD drawings, figures, and other work shall be produced by
CONSULTANTS and Subconsultants using the SANITATION DISTRICT
standard software. Conversion of CADD work from any other non-standard
CADD format to the SANITATION DISTRICT format shall not be acceptable in
lieu of this requirement.
Electronic files shall be subject to an acceptance period of sixty (60)calendar
days during which the SANITATION DISTRICT shall perform appropriate
acceptance tests. CONSULTANT shall correct any discrepancies or errors
detected and reported within the acceptance period at no additional cost to the
SANITATION DISTRICT.
E. All professional services performed by the CONSULTANT, including but not
limited to all drafts, data, correspondence, proposals, reports, and estimates
compiled or composed by the CONSULTANT, pursuant to this Agreement, are
for the sole use of the SANITATION DISTRICT, its agents and employees.
Neither the documents nor their contents shall be released to any third parry
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 One Million Four
Hundred Ninety Nine Thousand Eight Hundred Thirty-Nine Dollars
($1,499,839). 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"C'- 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
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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"C"- Fee Proposal.
D. Profit
Profit for CONSULTANT and Subconsultants shall be a percentage of consulting
services fees (Burdened Labor and Overhead). When the consulting or
subconsulting services amount is $250,000 or less, the maximum Profit shall be
10%. Between $250,000 and $2,500,000, the maximum Profit shall be limited by
a straight declining percentage between 10% and 5%. For consulting or
subconsulting services fees with a value greater than $2,500,000, the maximum
Profit shall be 5%. Addenda shall be governed by the same maximum Profit
percentage after adding consulting services fees.
As a portion of the total compensation to be paid to CONSULTANT and
Subconsultants, the SANITATION DISTRICT shall pay profit for all services
rendered by CONSULTANT and Subconsultants for this project according to
Attachment"C"- 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"C"- 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"C" - 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"C"- 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
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DISTRICT receipts and other documentary records to support CONSULTANT's
request for reimbursement of these amounts, see Attachment"E"—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"E"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"E"-Allowable Direct Costs to this Agreement. The reimbursement of
the above mentioned expenses will be based on an "accountable plan" as
considered by Internal Revenue Service (IRS). The plan includes a combination of
reimbursements based upon receipts and a "per diem" component approved by
IRS. The most recent schedule of the per diem rates utilized by the SANITATION
DISTRICT can be found on the U.S. General Service Administration website at
http://www.gsa.gov/portal/category/104711#.
The CONSULTANT shall be responsible for the most economical and practical
means of management of reimbursable costs inclusive but not limited to travel,
lodging and meals arrangements. The SANITATION DISTRICT shall apply the
most economic and practical method of reimbursement which may include
reimbursements based upon receipts and/or"per diem" as deemed the most
practical.
CONSULTANT shall be responsible for returning to the SANITATION DISTRICT
any excess reimbursements after the reimbursement has been paid by the
SANITATION DISTRICT.
Travel and travel arrangements—Any travel involving airfare, overnight stays or
multiple day attendance must be approved by the SANITATION DISTRICT in
advance.
Local Travel is considered travel by the CONSULTANT within the SANITATION
DISTRICT general geographical area which includes Orange, Los Angeles,
Ventura, San Bernardino, Riverside, San Diego, Imperial and Kern Counties.
Automobile mileage is reimbursable if CONSULTANT is required to utilize
personal vehicle for local travel.
Lodging—Overnight stays will not be approved by the SANITATION DISTRICT for
local travel. However, under certain circumstances overnight stay may be allowed
at the discretion of the SANITATION DISTRICT based on reasonableness of
meeting schedules and the amount of time required for travel by the
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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"E" -Allowable Direct Costs of this Agreement.
I. Limitation of Costs
If, at any time, CONSULTANT estimates the cost of performing the services
described in CONSULTANT's Proposal will exceed the not-to-exceed amount of
the Agreement, including approved additional compensation, CONSULTANT
shall notify the SANITATION DISTRICT immediately, and in writing. This written
notice shall indicate the additional amount necessary to complete the services.
Any cost incurred in excess of the approved not-to-exceed amount, without the
express written consent of the SANITATION DISTRICT's authorized
representative shall be at CONSULTANT's own risk. This written notice shall be
provided separately from, and in addition to any notification requirements
contained in the CONSULTANT's invoice and monthly progress report. Failure to
notify the SANITATION DISTRICT that the services cannot be completed within
the authorized not-to-exceed amount is a material breach of this Agreement.
3. REALLOCATION OF TOTAL COMPENSATION
The SANITATION DISTRICT, by its Director of Engineering, shall have the right to
approve a reallocation of the incremental amounts constituting the total compensation,
provided that the total compensation is not increased.
4. PAYMENT
A. Monthly Invoice: CONSULTANT shall include in its monthly invoice, a detailed
breakdown of costs associated with the performance of any corrections or
revisions of the work for that invoicing period. CONSULTANT shall allocate costs
in the same manner as it would for payment requests as described in this Section
of the Agreement. CONSULTANT shall warrant and certify the accuracy of these
costs and understand that submitted costs are subject to Section 11 -AUDIT
PROVISIONS.
B. CONSULTANT may submit monthly or periodic statements requesting payment
for those items included in Section 2- COMPENSATION hereof in the format as
required by the SANITATION DISTRICT. Such requests shall be based upon the
amount and value of the work and services performed by CONSULTANT under
this Agreement and shall be prepared by CONSULTANT and accompanied by
such supporting data, including a detailed breakdown of all costs incurred and
project element work performed during the period covered by the statement, as
may be required by the SANITATION DISTRICT.
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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
work progress for any reason, the SANITATION DISTRICT shall have the right to
withhold any scheduled proportionate profit payment.
D. Upon satisfactory completion by CONSULTANT of the work called for under the
terms of this Agreement, and upon acceptance of such work by the SANITATION
DISTRICT, CONSULTANT will be paid the unpaid balance of any money due for
such work, including any retained percentages relating to this portion of the work.
E. Upon satisfactory completion of the work performed hereunder and prior to final
payment under this Agreement for such work, or prior settlement upon
termination of this Agreement, and as a condition precedent thereto,
CONSULTANT shall execute and deliver to the SANITATION DISTRICT a
release of all claims against the SANITATION DISTRICT arising under or by
virtue of this Agreement other than such claims, if any, as may be specifically
exempted by CONSULTANT from the operation of the release in stated amounts
to be set forth therein.
F. Pursuant to the California False Claims Act(Government Code Sections 12650-
12655), any CONSULTANT that knowingly submits a false claim to the
SANITATION DISTRICT for compensation under the terms of this Agreement
may be held liable for treble damages and up to a ten thousand dollars ($10,000)
civil penalty for each false claim submitted. This Section shall also be binding on
all Subconsultants.
A CONSULTANT or Subconsultant shall be deemed to have submitted a false
claim when the CONSULTANT or Subconsultant: a) knowingly presents or
causes to be presented to an officer or employee of the SANITATION DISTRICT
PCSA PROJECT NO.P2-110
Revised 062316 CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
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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 sec,
CONSULTANT and Subconsultants shall comply with the registration
requirements of Labor Code Section 1725.5. Pursuant to Labor Code Section
1771.4, the Work is subject to compliance monitoring and enforcement by the
DIR.
B. The CONSULTANT and Subconsultants shall maintain accurate payroll records
and shall comply with all the provisions of Labor Code Section 1776, and shall
submit payroll records to the Labor Commissioner pursuant to Labor Code
Section 1771.4(a) (3). Penalties for non-compliance with the requirements of
Section 1776 may be deducted from progress payments per Section 1776.
C. Pursuant to Labor Code Section 1776, the CONSULTANT and Subconsultants
shall furnish a copy of all certified payroll records to SANITATION DISTRICT
and/or general public upon request, provided the public request is made through
SANITATION DISTRICT, the Division of Apprenticeship Standards or the
Division of Labor Enforcement of the Department of Industrial Relations.
D. The CONSULTANT and Subconsultants shall comply with the job site notices
posting requirements established by the Labor Commissioner per Title 8,
California Code of Regulations Section 16461(e).
6. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND
SPECIFICATIONS
A. Ownership of Documents for the Professional Services performed.
All documents, including but not limited to, original plans, studies, sketches,
drawings, computer printouts and disk files, and specifications prepared in
connection with or related to the Scope of Work or Professional Services, shall
be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's
ownership of these documents includes use of, reproduction or reuse of and all
incidental rights, whether or not the work for which they were prepared has been
performed. The SANITATION DISTRICT ownership entitlement arises upon
PCSA PROJECT NO.P2-110
Revised 0e231e CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
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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 Vlll, or better, in accordance with the most current
A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept
State Compensation Insurance Fund, for the required policy of Worker's
Compensation Insurance subject to the SANITATION DISTRICT's option to
require a change in insurer in the event the State Fund financial rating is
decreased below"B". Further, the SANITATION DISTRICT will require
CONSULTANT to substitute any insurer whose rating drops below the levels
herein specified. Said substitution shall occur within twenty(20) days of
written notice to CONSULTANT, by the SANITATION DISTRICT or its agent.
iii. Coverage shall be in effect prior to the commencement of any work under
this Agreement.
B. General Liability
The CONSULTANT shall maintain during the life of this Agreement, including the
period of warranty, Commercial General Liability Insurance written on an
occurrence basis providing the following minimum limits of liability coverage:
Two Million Dollars ($2,000,000) per occurrence with Two Million Dollars
($2,000,000)aggregate. Said insurance shall include coverage for the following
hazards: Premises-Operations, blanket contractual liability (for this Agreement),
products liability/completed operations (including any product manufactured or
assembled), broad form property damage, blanket contractual liability,
independent contractors liability, personal and advertising injury, mobile
equipment, 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
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General Liability policy and coverage must be reflected on the submitted
Certificate of Insurance.
C. Umbrella Excess Liability
The minimum limits of general liability and Automotive Liability Insurance
required, as set forth herein, shall be provided for through either a single policy of
primary insurance or a combination of policies of primary and umbrella excess
coverage. Umbrella excess liability coverage shall be issued with limits of liability
which, when combined with the primary insurance, will equal the minimum limits
for general liability and automotive liability.
D. AutomotiveNehicle liability Insurance
The CONSULTANT shall maintain a policy of Automotive Liability Insurance on a
comprehensive form covering all owned, non-owned, and hired automobiles,
trucks, and other vehicles providing the following minimum limits of liability
coverage: Combined single limit of Two Million Dollars ($2,000,000) or
alternatively, Two Million Dollars ($2,000,000) per person for bodily injury and
One Million Dollars ($1,000,000) per accident for property damage. A statement
on an insurance certificate will not be accepted in lieu of the actual additional
insured endorsement.
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
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Agreement. Said coverage shall be evidenced by either a new policy evidencing
no gap in coverage or by separate extended "tail" coverage with the present or
new carrier.
In the event the present policy of insurance is written on an "occurrence" basis,
said policy shall be continued in full force and effect during the term of this
Agreement or until completion of the services provided for in this Agreement,
whichever is later. In the event of termination of said policy during this period,
new coverage shall be obtained for the required period to insure for the prior acts
of CONSULTANT during the course of performing services under the term of this
Agreement.
CONSULTANT shall provide to the SANITATION DISTRICT a certificate of
insurance in a form acceptable to the SANITATION DISTRICT indicating the
deductible or self-retention amounts and the expiration date of said policy, and
shall provide renewal certificates not less than ten (10)days prior to the
expiration of each policy term.
G. Proof of Coverage
The CONSULTANT shall furnish the SANITATION DISTRICT with original
certificates and amendatory endorsements effecting coverage. Said policies and
endorsements shall conform to the requirements herein stated. All certificates
and endorsements are to be received and approved by the SANITATION
DISTRICT before work commences. The SANITATION DISTRICT reserves the
right to require complete, certified copies of all required insurance policies,
including endorsements, effecting the coverage required, at any time. The
following are approved forms that must be submitted as proof of coverage:
• Certificate of Insurance ACORD Form 25 (5/2010)or equivalent.
• Additional Insurance (ISO Form) CG2010 11 65 or
(General Liability)
The combination of(ISO Forms)
CG 2010 10 01 and CG 2037 10 01
All other Additional Insured endorsements must
be submitted for approval by the SANITATION
DISTRICT, and the SANITATION DISTRICT
may reject alternatives that provide different or
less coverage to the SANITATION DISTRICT.
• Additional Insured Submit endorsement provided by carrier for the
(Auto Liability) SANITATION DISTRICT approval.
• Waiver of Subrogation State Compensation Insurance Fund
Endorsement No. 2570 or equivalent.
• Cancellation Notice State Compensation Insurance Fund
Endorsement No. 2065 or equivalent.
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H. Cancellation Notice
Each insurance policy required herein shall be endorsed to state that coverage
shall not be cancelled by either party, except after thirty (30)days' prior written
notice. The Cancellation Section of ACORD Form 25 (5/2010) shall state the
required thirty (30) days' written notification. The policy shall not terminate, nor
shall it be cancelled, nor the coverage reduced until thirty(30) days after written
notice is given to the SANITATION DISTRICT except for nonpayment of
premium, which shall require not less than ten (10) days written notice to the
SANITATION DISTRICT. Should there be changes in coverage or an increase in
deductible or SIR amounts, the CONSULTANT and its insurance broker/agent
shall send to the SANITATION DISTRICT a certified letter which includes a
description of the changes in coverage and/or any increase in deductible or SIR
amounts. The certified letter must be sent to the attention of Risk Management,
Div. 260, and shall be received by the SANITATION DISTRICT not less than
thirty (30)days prior to the effective date of the change(s) if the change would
reduce coverage or increase deductibles or SIR amounts or otherwise reduce or
limit the scope of insurance coverage provided to the SANITATION DISTRICT.
I. Primary Insurance
All liability policies shall contain a Primary and Non Contributory Clause. Any
other insurance maintained by the SANITATION DISTRICT shall be excess and
not contributing with the insurance provided by CONSULTANT.
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.
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOUTIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 11 of 18
M. Defense Costs
Liability policies shall have a provision that defense costs for all insureds and
additional insureds are paid in addition to and do not deplete any policy limits.
N. Subconsultants
The CONSULTANT shall be responsible to establish insurance requirements for
any Subconsultant hired by the CONSULTANT. The insurance shall be in
amounts and types reasonably sufficient to deal with the risk of loss involving the
Subconsultant's operations and work.
O. Limits Are Minimums
If the CONSULTANT maintains higher limits than any minimums shown above,
then SANITATION DISTRICT requires and shall be entitled to coverage for the
higher limits maintained by CONSULTANT.
8. SCOPE CHANGES
In the event of a change in the Scope of Work, requested by SANITATION DISTRICT,
the parties hereto shall execute an amendment to this Agreement setting forth with
particularity all terms of the new Agreement, including but not limited to any additional
CONSULTANT's fees.
9. PROJECT TEAM AND SUBCONSULTANTS
CONSULTANT shall provide to SANITATION DISTRICT, prior to execution of this
Agreement, the names and full description of all Subconsultants and CONSULTANT's
project team members anticipated to be used on this project by CONSULTANT.
CONSULTANT shall include a description of the scope of work to be done by each
Subconsultant and each CONSULTANT's project team member. CONSULTANT shall
include the respective compensation amounts for CONSULTANT and each
Subconsultant on a per-project-element basis, broken down as indicated in Section 2-
COMPENSATION.
There shall be no substitution of the listed Subconsultants and CONSULTANT's project
team members without prior written approval by the SANITATION DISTRICT.
10. ENGINEERING REGISTRATION
The CONSULTANT's personnel are comprised of registered engineers and a staff of
specialists and draftsmen in each department. The firm itself is not a registered
engineer but represents and agrees that wherever in the performance of this Agreement
requires the services of a registered engineer, such services hereunder will be
performed under the direct supervision of registered engineers.
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOUTIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 12 of 18
11. AUDIT PROVISIONS
A. SANITATION DISTRICT retains the reasonable right to access, review, examine,
and audit, any and all books, records, documents and any other evidence of
procedures and practices that the SANITATION DISTRICT determines are
necessary to discover and verify that the CONSULTANT is in compliance with all
requirements under this Agreement. The CONSULTANT shall include the
SANITATION DISTRICT's right as described above, in any and all of their
subcontracts, and shall ensure that these rights are binding upon all
Subconsultants.
B. SANITATION DISTRICT retains the right to examine CONSULTANT's books,
records, documents and any other evidence of procedures and practices that the
SANITATION DISTRICT determines are necessary to discover and verify all
direct and indirect costs, of whatever nature, which are claimed to have been
incurred, or anticipated to be incurred or to ensure CONSULTANT's compliance
with all requirements under this Agreement during the term of this Agreement
and for a period of three (3)years after its termination.
C. CONSULTANT shall maintain complete and accurate records in accordance with
generally accepted industry standard practices and the SANITATION
DISTRICT's policy. The CONSULTANT shall make available to the
SANITATION DISTRICT for review and audit, all project related accounting
records and documents, and any other financial data within 15 days after receipt
of notice from the SANITATION DISTRICT. Upon SANITATION DISTRICT's
request, the CONSULTANT shall submit exact duplicates of originals of all
requested records to the SANITATION DISTRICT. If an audit is performed,
CONSULTANT shall ensure that a qualified employee of the CONSULTANT will
be available to assist SANITATION DISTRICT's auditor in obtaining all project
related accounting records and documents, and any other financial data.
12. LEGAL RELATIONSHIP BETWEEN PARTIES
The legal relationship between the parties hereto is that of an independent contractor
and nothing herein shall be deemed to make CONSULTANT an employee of the
SANITATION DISTRICT.
13. NOTICES
All notices hereunder and communications regarding the interpretation of the terms of
this Agreement, or changes thereto, shall be effected by delivery of said notices in
person or by depositing said notices in the U.S. mail, registered or certified mail, return
receipt requested, postage prepaid.
Notices shall be mailed to the SANITATION DISTRICT at:
ORANGE COUNTY SANITATION DISTRICT
10844 Ellis Avenue
Fountain Valley, CA 92708-7018
Attention: Natasha Dubrovski, Principal Contracts Administrator
Copy: Victoria Pilko, Project Manager
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 13 of 18
Notices shall be mailed to CONSULTANT at:
STANTEC CONSULTING SERVICES, INC.
300 North Lake Avenue
Suite 400
Pasadena, CA 91101
Attention: Patrick Stahl, 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.
15. DOCUMENTS AND STUDY MATERIALS
The documents and study materials for this project shall become the property of the
SANITATION DISTRICT upon the termination or completion of the work.
CONSULTANT agrees to furnish to the SANITATION DISTRICT copies of all
memoranda, correspondence, computation and study materials in its files pertaining to
the work described in this Agreement, which is requested in writing by the SANITATION
DISTRICT.
16. COMPLIANCE
CONSULTANT certifies by the execution of this Agreement that it pays employees not
less than the minimum wage as defined by law, and that it does not discriminate in its
employment with regard to race, color, religion, sex or national origin; that it is in
compliance with all federal, state and local directives and executive orders regarding
non-discrimination in employment; and that it agrees to demonstrate positively and
aggressively the principle of equal opportunity in employment.
17. AGREEMENT EXECUTION AUTHORIZATION
Both the SANITATION DISTRICT and CONSULTANT do covenant that each individual
executing this document by and on behalf of each party is a person duly authorized to
execute agreements for that party.
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 14 of 18
18. DISPUTE RESOLUTION
In the event of a dispute arising between the parties regarding performance or
interpretation of this Agreement, the dispute shall be resolved by binding arbitration
under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar
organization or entity conducting alternate dispute resolution services.
19. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS
If any action at law or in equity or if any proceeding in the form of an Alternative Dispute
Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the
prevailing party shall be entitled to reasonable attorney's fees, costs and necessary
disbursements in addition to any other relief to which it may be entitled.
20. PROGRESS REPORTS
Monthly progress reports shall be submitted for review by the tenth day of the following
month and must include as a minimum: 1) current activities, 2)future activities, 3)
potential items that are not included in the Scope of Work, 4) concerns and possible
delays, 5) percentage of completion, and 6) budget status.
21. WARRANTY
CONSULTANT shall perform its services in accordance with generally accepted industry
and professional standards. If, within the 12-month period following completion of its
services, the SANITATION DISTRICT informs CONSULTANT that any part of the
services fails to meet those standards, CONSULTANT shall, within the time prescribed
by the SANITATION DISTRICT, take all such actions as are necessary to correct or
complete the noted deficiency(ies).
22. INDEMNIFICATION
To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at
CONSULTANT's sole cost and expense and with legal counsel approved by the
SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect
and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT's
officers, directors, employees, consultants, and agents (collectively the "Indemnified
Parties"), from and against any and all claims, damages, liabilities, causes of action,
suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses
including without limitation, attorneys'fees, disbursements and court costs, and all other
professional, expert or consultants fees and costs and the SANITATION DISTRICT's
general and administrative expenses (individually, a "Claim", or collectively, "Claims")
which may arise from or are in any manner related, directly or indirectly, to any work
performed, or any operations, activities, or services provided by CONSULTANT in
carrying out its obligations under this Agreement to the extent of the negligent,
recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents,
employees, CONSULTANT's suppliers, 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
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 15 of 18
Indemnified Parties from any Claim arising solely from:
(A)the sole or active negligence or willful misconduct of the Indemnified Parties; or
(B)a natural disaster or other act of God, such as an earthquake; or
(C)the independent action of a third party who is neither one of the Indemnified Parties
nor the CONSULTANT, nor its principal, officer, agent, employee, nor
CONSULTANT's supplier, CONSULTANT, subconsultant, subcontractor, nor anyone
employed directly or indirectly by any of them.
Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest
extent permitted by law, indemnify the Indemnified Parties, from Claims arising from
more than one cause if any such cause taken alone would otherwise result in the
obligation to indemnify hereunder.
CONSULTANT's liability for indemnification hereunder is in addition to any liability
CONSULTANT may have to the SANITATION DISTRICT for a breach by
CONSULTANT of any of the provisions of this Agreement. Under no circumstances
shall the insurance requirements and limits set forth in this Agreement be construed to
limit CONSULTANT's indemnification obligation or other liability hereunder.
The terms of this Agreement are contractual and the result of negotiation between the
parties hereto. Accordingly, any rule of construction of contracts (including, without
limitation, California Civil Code Section 1654)that ambiguities are to be construed
against the drafting party, shall not be employed in the interpretation of this Agreement.
23. DUTY TO DEFEND
The duty to defend hereunder is wholly independent of and separate from the duty to
indemnify and such duty to defend shall exist regardless of any ultimate liability of
CONSULTANT and shall be consistent with Civil Code Section 2782.8. Such defense
obligation shall arise immediately upon presentation of a Claim by any person if, without
regard to the merit of the Claim, such Claim could potentially result in an obligation to
indemnity 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.
PCSA PROJECT NO.P2-110
Revised 062316 CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 16 of 18
24. CONSULTANT PERFORMANCE
The CONSULTANT's performance shall be evaluated by the SANITATION DISTRICT.
A copy of the evaluation shall be sent to the CONSULTANT for comment. The
evaluation, together with the comments, shall be retained by the SANITATION
DISTRICT and may be considered in future CONSULTANT selection processes.
25. CLOSEOUT
When the SANITATION DISTRICT determines that all Work authorized under the
Agreement is fully complete and that the SANITATION DISTRICT requires no further
work from CONSULTANT, or the Agreement is otherwise terminated or expires in
accordance with the terms of the Agreement, the SANITATION DISTRICT shall give the
Consultant written notice that the Agreement will be closed out. CONSULTANT shall
submit all outstanding billings, work submittals, deliverables, reports or similarly related
documents as required under the Agreement within thirty (30)days of receipt of notice of
Agreement closeout.
Upon receipt of CONSULTANT's submittals, the SANITATION DISTRICT shall
commence a closeout audit of the Agreement and will either:
i. Give the CONSULTANT a final Agreement Acceptance: or
ii. Advise the CONSULTANT in writing of any outstanding item or items which must be
furnished, completed, or corrected at the CONSULTANT's cost.
CONSULTANT shall be required to provide adequate resources to fully support any
administrative closeout efforts identified in this Agreement. Such support must be
provided within the timeframe requested by the SANITATION DISTRICT.
Notwithstanding the final Agreement Acceptance the CONSULTANT will not be relieved
of its obligations hereunder, nor will the CONSULTANT be relieved of its obligations to
complete any portions of the work, the non-completion of which were not disclosed to
the SANITATION DISTRICT (regardless of whether such nondisclosures were
fraudulent, negligent, or otherwise); and the CONSULTANT shall remain obligated under
all those provisions of the Agreement which expressly or by their nature extend beyond
and survive final Agreement Acceptance.
Any failure by the SANITATION DISTRICT to reject the work or to reject the
CONSULTANT's request for final Agreement Acceptance as set forth above shall not be
deemed to be acceptance of the work by the SANITATION DISTRICT for any purpose
nor imply acceptance of, or agreement with, the CONSULTANT's request for final
Agreement Acceptance.
26. ENTIRE AGREEMENT
This Agreement constitutes the entire understanding and agreement between the
Parties and supersedes all previous negotiations between them pertaining to the subject
matter thereof.
PCSA PROJECT NO.P2-110
Revised ee231e CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 17 of 18
IN WITNESS WHEREOF, this Agreement has been executed in the name of the SANITATION
DISTRICT, by its officers thereunto duly authorized, and CONSULTANT as of the day and year
first above written.
CONSULTANT: STANTEC CONSULTING SERVICES, INC.
By
Date
Printed Name &Title
ORANGE COUNTY SANITATION DISTRICT
By
Chair, Board of Directors Date
By
Kelly A. Lore Date
Clerk of the Board
By
Marc Dubois Date
Contracts, Purchasing and Materials
Management Manager
Attachments: Attachment"A" Scope of Work
Attachment'B" Itemization of Anticipated Submittals
Attachment"C' Fee Proposal
Attachment"D" Cost Matrix and Summary
Attachment"E" Allowable Direct Costs
Attachment"F" Hourly Rate Schedule for Minor Subconsultant
Attachment"G" Acknowledgement of PCSA(Not Attached)
NKD:yp
PCSA PROJECT NO.P2-110
Revised 062316 CONSOLIDATED DEMOLITIAN AND UTILITY IMPROVEMENTS AT PLANT NO.2
Page 18 of 18
WOODRUFF, SFRADLIN&SMART CLOSED SESSION 1
555 AN,oN BOULeVnrto, SUIT. 1200
Cos•A MesA, CA 92626-7670
(714)556-0WO
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 17,2017
RE: Closed Session Items
The Board of Directors desires to hold a closed session on January 25, 2017 for the
purpose of conferring with its legal counsel regarding existing litigation to which the District is a
parry. The title of the case is Klean Waters, Inc. v. Orange County Sanitation District, United
States District Court, Central District of California, Southern Division, Case No. 8:15-cv-00627.
The closed session will be held pursuant to the authority of California Government Code Section
54956.9(d)(1).
Respectfully submitted,
By
Bradle . Hogin, Qeneral Counsel
1179357.1
•T WooDRIJFF,.spRADLIN&SMART
555 ANTON BOULEVARD, BUITC1200
C.sIA MNsA, CA 92626-7670
(714)556-0000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 17,2017
RE: Closed Session Items
The Board of Directors desires to hold a closed session on January 25, 2017 for the
purpose of conferring with its legal counsel regarding existing litigation to which the District is a
parry. The title of the case is Klean Waters, Inc. v. Orange County Sanitation District, United
States District Court, Central District of California, Southern Division, Case No. 8:15-cv-01498.
The closed session will be held pursuant to the authority of California Government Code Section
54956.9(d)(1).
Respectfully submitted,
By
Bradle . Hogin, Qeneral Counsel
1179357.1
•T WooDRDFF,.SFRADLIN&SMART
. . CLOSED SESSION 2
555 ANTON BOULEVARD, BUITC1200
C.sIA MNsA, CA 92626-7670
(714)556-0000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 17,2017
RE: Closed Session Items
The Board of Directors desires to hold a closed session on January 25, 2017 for the
purpose of conferring with its legal counsel regarding existing litigation to which the District is a
party. The title of the case is City of Los Angeles, et al. v. County of Kern, Tulare County
Superior Court, Case No. 242057. The closed session will be held pursuant to the authority of
California Government Code Section 54956.9(d)(1).
Respectfully submitted,
By
Bradle . Hogin, (}eneral Counsel
1179357.1
►` WooDROFF,.SFRADLIN&SMART CLOSED SESSION 3
555 ANTON BOULEVARD, BUTTE1200
COSTA MN9A, CA 92626-7670
(714)556-0000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 19,2017
RE: Closed Session Items
The Board of Directors desires to hold a closed session on January 25, 2017 for the
purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and
circumstances reflect a significant exposure to litigation against the District. The closed session
will be held pursuant to the authority of California Government Code Section 54956.9(d)(2). The
facts and circumstances are as follows: Melissa Forman-Woodbridge is claiming damages
related to unpaid medical benefits.
Respectfully submitted,
By:
Bradlej R. Hogin, eneral Counsel
1165639.1
•T WOODRUFF,.spRADLIN&SMART
555 ANTON BOULEVARD, BUITC1200
C.sIA MNsA, CA 92626-7670
(714)556-0000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 19,2017
RE: Closed Session Items
The Board of Directors desires to hold a closed session on January 25, 2017 for the
purpose of conferring with its legal counsel regarding anticipated litigation. Existing facts and
circumstances reflect a significant exposure to litigation against the District. The closed session
will be held pursuant to the authority of California Govemment Code Section 54956.9(d)(2). The
facts and circumstances are as follows: Roy Hendy is claiming damages related to unpaid
medical benefits.
Respectfully submitted,
By:
Bradlej R. Hogin, eneral Counsel
1165639.1
WOODRUFF SPRADLIN&SMART CLOSED SESSION 4
• A . - P . , . . . .
555 ANTON BOULEVARD, SUITE 1200
COSTA MESA, CA 92626-7670
(714)556-7000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 17,2017
RE: Closed Session Items
The Board of Directors will hold a closed session on January 25,2017 for the purpose of
conferring with its negotiators regarding the purchase of real property. The negotiating parties and
property are as follows: Bayside Village Marina LLC, 300 East Coast Highway,Newport Beach,
CA,APN No.440-132-60.The District's negotiators are General Manager,Jim Herberg;Assistant
General Manager,Bob Ghirelli;Director of Finance,Lorenzo Tyner;Director of Engineering,Rob
Thompson; Engineering Managers,Kathy Millea and Jeff Mohr; and CIP Project Manager,Adam
Nazaroff. Said closed session will be held pursuant to authority of California Government Code
Section 54956.8.
Respectfully submitted,
By. /J 6-
Bradley 6-
Bradley R. Hogin, 46eneral Counsel
1206984.1
CLOSED SESSION 5
WOODRUFF SPRADIJN&SMART
555 ANTON BOULEVARD, SUITE 1200
COSTA MESA, CA 92626-7670
(714)556-7000
MEMORANDUM
TO: Hon. Chair and Members of the Orange County Sanitation District Board of
Directors
FROM: Bradley R. Hogin, Esq.
General Counsel
DATE: January 17,2017
RE: Closed Session Items
The Board of Directors will hold a closed session on January 25,2017 for the purpose of
conferring with its negotiators regarding the purchase of real property. The negotiating parties and
properties are as follows: Valley Business Park, APN Nos. 156-165-05, 156-165-06, 156-163-07;
DK-USA LLC, APN No.156-165-04; Fountain Valley Industrial Parcel 13,APN No.156-165-08;
Sukut Real Properties LLC, APN Nos. 156-163-09, 156-163-10, 156-163-11; The Ins Trust
Shabtai,Nevon, APN No. 156-163-16; The his Trust, APN No. 156-154-07; K& A Investments
LP,APN No. 156-154-08;Fountain Valley Star LLC,APN No. 156-154-06; TN Sheet Metal Inc.,
APN No. 156-163-12; 18401 Bandilier LLC,APN No. 156-163-13;Phone Lilly Lin-Lin TR,APN
No. 156-154-05; JDK Partners, APN No. 156-163-14; Chandler Real Properties, APN No. 156-
163-15; Ellis Avenue LLC, APN No. 156-154-04; SFII Fountain Valley LLC, APN No. 156-
151-03; and 7311 Doig Drive, Garden Grove, CA, APN No. 131-651-20. The District's
negotiators are Jim Herberg, Rob Thompson, Kathy Millen and Jeff Mohr, Wendy Sevenandt,
Kevin Turner and John Gallivan, Cushman and Wakefield. Said closed session will be held
pursuant to authority of California Government Code Section 54956.8.
Respectfully submitted,
By. /f
BradleY R. Hogin, Vieneral Counsel
11921611
ORANGE COUNTY SANITATION DISTRICT
Agenda
Terminology Glossary
Glossary of Terms and Abbreviations
AQMD Air Quality Management District
ASCE American Society of Civil Engineers
BOD Biochemical Oxygen Demand
CARB California Air Resources Board
CASA California Association of Sanitation Agencies
CCTV Closed Circuit Television
CEQA California Environmental Quality Act
CIP Capital Improvement Program
CRWQCB California Regional Water Quality Control Board
CWA Clean Water Act
CWEA California Water Environment Association
EIR Environmental Impact Report
EMT Executive Management Team
EPA U.S. Environmental Protection Agency
FOG Fats, Oils, and Grease
gpd Gallons per day
GWR System Groundwater Replenishment System (also called GWRS)
ICS Incident Command System
IERP Integrated Emergency Control Plan
LOS Level of Service
MGD Million gallons per day
NACWA National Association of Clean Water Agencies
NPDES National Pollutant Discharge Elimination System
NWRI National Water Research Institute
O&M Operations and Maintenance
OCCOG Orange County Council of Governments
OCHCA Orange County Health Care Agency
OCSD Orange County Sanitation District
OCWD Orange County Water District
COBS Ocean Outfall Booster Station
OSHA Occupational Safety and Health Administration
PCSA Professional Consultant Services Agreement
POTW Publicly Owned Treatment Works
ppm Parts per million
PSA Professional Services Agreement
RFP Request For Proposal
Glossary of Terms and Abbreviations
RWQCB Regional Water Quality Control Board
SARFPA Santa Ana River Flood Protection Agency
SARI Santa Ana River Inceptor
SARWQCB Santa Ana Regional Water Quality Control Board
SAWPA Santa Ana Watershed Project Authority
SCADA Supervisory Control and Data Acquisition system
SCAP Southern California Alliance of Publicly Owned Treatment Works
SCAQMD South Coast Air Quality Management District
SOCWA South Orange County Wastewater Authority
SRF State Revolving Fund
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
WIFIA Water Infrastructure Financing and Innovation Act
Activated-sludge process — A secondary biological wastewater treatment process where bacteria
reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved
nutrients in the wastewater.
Benthos—The community of organisms, such as sea stars, worms, and shrimp, which live on, in, or
near the seabed, also known as the benthic zone.
Biochemical Oxygen Demand (BOD) —The amount of oxygen used when organic matter undergoes
decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in
water.
Blogas — A gas that is produced by the action of anaerobic bacteria on organic waste matter in a
digester tank that can be used as a fuel.
Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the
wastewater treatment process. This high-quality product can be recycled as a soil amendment on
farm land or further processed as an earth-like product for commercial and home gardens to improve
and maintain fertile soil and stimulate plant growth.
Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets.
Also includes treatment improvements, additional capacity, and projects for the support facilities.
Coliform bacteria —A group of bacteria found in the intestines of humans and other animals, but also
occasionally found elsewhere used as indicators of sewage pollution. E. coil are the most common
bacteria in wastewater.
Glossary of Terms and Abbreviations
Collections system — In wastewater, it is the system of typically underground pipes that receive and
convey sanitary wastewater or storm water.
Certificate of Participation (COP) — A type of financing where an investor purchases a share of the
lease revenues of a program rather than the bond being secured by those revenues.
Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic
wastewater contaminants.
Dilution to Threshold (D/T) — the dilution at which the majority of the people detect the odor
becomes the D/T for that air sample.
Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane,
nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse
effect").
Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively
responds to Southern California's current and future water needs. This joint project between the
Orange County Water District and the Orange County Sanitation District provides 70 million gallons a
day of drinking quality water to replenish the local groundwater supply.
Levels of Service(LOS)—Goals to support environmental and public expectations for performance.
NDMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been
found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide
with extra ultra-violet treatment.
National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water
Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S.
Environmental Protection Agency (EPA). NBP is committed to developing and advancing
environmentally sound and sustainable biosolids management practices that go beyond regulatory
compliance and promote public participation in order to enhance the credibility of local agency
biosolids programs and improved communications that lead to public acceptance.
Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility.
Publicly-owned Treatment Works(POTW)— Municipal wastewater treatment plant.
Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million
gallons per day of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean
for disposal, after treatment.
Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial
wastewater. Combined sewers carry both wastewater and urban run-off.
South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that
develops plans and regulations designed to achieve public health standards by reducing emissions
from business and industry.
Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process,
where bacteria and other microorganisms consume dissolved nutrients in wastewater.
Sludge— Untreated solid material created by the treatment of wastewater.
Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater.
Glossary of Terms and Abbreviations
Trickling filter — A biological secondary treatment process in which bacteria and other
microorganisms, growing as slime on the surface of rocks or plastic media, consume nutrients in
wastewater as it trickles over them.
Urban runoff — Water from city streets and domestic properties that carry pollutants into the storm
drains, rivers, lakes, and oceans.
Wastewater—Any water that enters the sanitary sewer.
Watershed —A land area from which water drains to a particular water body. OCSD's service area is
in the Santa Ana River Watershed.