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HomeMy WebLinkAbout02-27-2013 Board Agenda Package Wednesday, February 27, 2013 Orange County Sanitation District _ 6:30 P.M. Regular Meeting of the Board Room Board of Directors 10844 Ellis Avenue Fountain Valley, CA 92708 (714)593-7130 AGENDA INVOCATION AND PLEDGE OF ALLEGIANCE: (Greg Sebourn, Fullerton) DECLARATION OF QUORUM: ROLL CALL: 1. Receive and file Minute Excerpts of member agencies relating to appointments to the Orange County Sanitation District Board, as follows: City/Agency Active Director Alternate Director Orange County Board of Supervisors Janet Nguyen Shawn Nelson Irvine Ranch Water District John Withers Douglas Reinhart PUBLIC COMMENTS: If you wish to speak, please complete a Speakers Form (located at the table outside of the Board Room) and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Directors. These reports are for information only and require no action by the Directors. CLAIMS: 2. Ratify payment of claims of the District, by roll call vote, as follows: Claims Paid for the Period Ending: 01/15/13 01/31/13 Totals $7,224,459.51 $51,020,323.40 DIRECTORS: Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party seeking a contract with OCSD. This requires that you identify the contributor by name. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractorsNendors with OCSD. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. 02/27/13 OCSD Board of Directors Agenda Page 1 of 6 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 Any items withdrawn from the Consent Calendar for separate discussion will be considered in the regular order of business. 3. Receive and file the updated Orange County Sanitation District Directors' Committee Assignments for 2012-2013. 4. Approve minutes for the Regular Board Meeting held on January 23, 2013. STEERING COMMITTEE: 5. Approve minutes for the Steering Committee Meeting held on January 23, 2013. 6. A. Adopt Resolution No. OCSD 13-02 appointing James D. Herberg ("Mr. Herberg") to the position of General Manager for the Orange County Sanitation District ("OCSD"); B. Approve the At-Will Employment Agreement, attached hereto, with Mr. Herberg specifying terms and conditions of employment for General Manager services beginning April 1, 2013; C. Authorize the Board Chair to execute the At-Will Employment Agreement, attached hereto; and D. Authorize the Board Chair to provide a notice of termination of employment to General Manager James D. Ruth effective April 1, 2013, consistent with the OCSD General Manager Transition Plan and as required pursuant to Mr. Ruth's At-Will Employment Agreement. 7. Adopt the 2013 Legislative Platform and Goals. OPERATIONS COMMITTEE: 8. Approve minutes for the Operations Committee Meeting held on February 6, 2013. 9. A. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services for Trunk Line Odor Control Improvements, Project No. P1-123, for an amount not to exceed $856,986; and, B. Approve a contingency of$85,699 (10%). 02/27/13 OCSD Boats of Directors Agenda Page 2 of 6 10. A. Approve Change Order No. 1 to P.O. Number 103690-OB issued to Voyager Fleet Systems Inc. for the purchase of unleaded/diesel fuel for vehicles and marine vessel authorizing an additional $80,000 to increase total annual contract amount from $275,440 to a not to exceed amount of $355,440; and, B. Approve a contingency of$17,772 (5%); and, C. Authorize the use of the State of California Department of General Services (DGS) Statewide Travel Management Program for vehicle fuel requirements, for the period May 1, 2013 through April 30, 2014, for a total amount not to exceed $332,600, with four one-year renewal options, in accordance with Resolution No. OCSD 07-04, Section 3.08: Cooperative Procurement; and, D. Approve a contingency of$33,260 (10%). 11. Adopt Board Resolution No. OCSD 13-03, revising the Biosolids Recycling Resolution and repealing Board Resolution No. OCSD 06-10. 12. A. Approve a Sole Source Agreement with J.F. Shea Construction, Inc. for an amount not to exceed $430,000 for the repair of trickling filter pumps at Plant No. 2; and, B. Approve a contingency of $43,000 (10%) 13. Approve a contingency increase of $1,340,000 (4%) to the construction contract with JR Filanc Construction Company for Sludge Digester Rehabilitation at Plant No.1, Project No. P1-100, for a total contingency of$4,020,000 (12%). 14. A. Authorize staff to re-establish a Biosolids Account Pool utilizing a Blanket Purchase Order for the efficient management of all biosolids contracts (Yule Ranch, Synagro West, Inc., and Orange County Waste and Recycling) in one account to provide flexibility for unanticipated circumstances that may impact biosolids management, which may include events such as truck/driver shortages, poor weather conditions, regulatory constraints, unacceptable contractor performance, or contractor facility limitations; and B. Approve Blanket Purchase Order No. 104696-OB for an annual amount not to exceed $19,000,000 for biosolids management with Orange County Waste and Recycling, Tule Ranch, and Synagro West, Inc., which will replace Blanket Purchase Order No. 100760-013; and C. Authorize staff to move funds within the Biosolids Account Pool from one contract to another, as deemed necessary, due to unanticipated circumstances. 02/27/13 OCSD Boats of Directors Agenda Page 3 of 6 ADMINISTRATION COMMITTEE: 15. Approve Minutes of the Administration Committee Meeting held on February 13, 2013. 16. A. Consider a five year rate schedule for regional sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. B. Motion to read Ordinance No. OCSD41 by title only and waive reading of said entire ordinance on February 27, 2013. C. Introduce Ordinance No. OCSD-41, an Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordnance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. D. Set March 27, 2013, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-41. 17. A. Consider a five year rate schedule for industrial sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4% B. Motion to read Ordinance No. OCSD42 by title only and waive reading of said entire Ordinance on February 27, 2013. C. Introduce Ordinance No. OCSD-42, an Ordinance of the Board of Directors of Orange County Sanitation District Amendment Ordinance No. OCSD40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees: D. Set March 27, 2013, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-42. 18. Approve the FY 2013-14 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2013-14 budget update. 02/27/13 OCSD Boats of Directors Agenda Page 4 of 6 CLOSED SESSION: During the course of conducting the business set forth on this agenda as a regular meeting of the Board, the Chair may convene the Board in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) employment actions or negotiations with employee representatives,or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Board during a permitted closed session and are not available for public inspection. At such time as the Board takes final action on any of these subjects, the minutes will reflect all required disclosures of information. Convene in closed session. (1) CONFERENCE WITH LEGAL COUNSEL RE. EXISTING LITIGATION (5 items) (Government Code Section 54956.9(d)(1)) • Case: Mladen Buntich v. Orange County Sanitation District, Riverside County Superior Court, Case No. RIC 1201005 • Case: City of Los Angeles v. County of Kem, Fifth District Court of Appeal, Case No. F063381 • Case: Santa Ana Watershed Project Authority v. Orange County Sanitation District, Contractual Arbitration before Judicial Arbitration and Mediation Services, Jams Reference No. 1210030062 • Case: Kiewit Infrastructure West v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2012 00544245 • Case: Vallejo Gallery, LLC v. Orange County Sanitation District, Orange County Superior Court, Case No. 30-2012 00570950 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: 02127113 OCaD Board of Directors'Agenda Page 5 of 6 ADJOURNMENT: Adjourn the Board meeting until the next regular Meeting on March 27, 2013, at 6:30 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at (714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors,are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 mavalaaocsd.com For any questions on the agenda,Committee members may contact staff at: General Manager Jim Ruth (714)593-7110 iruth0ocsd.com Assistant General Manager Bob Ghirelli (714)593-7400 rohirelliacesd.com Assistant General Manager Jim Herberg (714)593-7300 iherberoQocsd.com Director of Engineering Nick Kanetis (714)593-7310 nkanetis(Womd.com Director of Facility Support Services Nick Aromas (714)593-7210 narhontes(ftcsd.com Director of Finance and Lorenzo Tyner (714)593-7550 Itvner(rpomd.com Administrative Services Director of Human Resources Jeff Reed (714)593-7144 ireed(Wocsd.com Director of Operations&Maintenance Ed Torres 714 593-7080 212MU 2RO42M 02/27/13 OCSD Board of Directors Agenda Page 6 of 6 Glossary of Terms and Abbreviations AQMD Air Quality Management District ASCE American Society of Civil Engineers BOO Biochemical Oxygen Demand CARB California Air Resources Board CASA California Association of Sanitation Agencies CCTV Closed Circuit Television CEQA California Environmental Quality Act CRWQCB California Regional Water Quality Control Board CWA Clean Water Act CWEA California Water Environment Association EIR Environmental Impact Report EMT Executive Management Team EPA U.S. Environmental Protection Agency FOG Fats, Oils, and Grease FSSD Facilities Support Services Department gpd Gallons per day GWR System Groundwater Replenishment System (also called GWRS) 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 OOBS Ocean Outfall Booster Station OSHA Occupational Safety and Health Administration POTW Publicly Owned Treatment Works ppm Parts per million RFP Request For Proposal RWQCB Regional Water Quality Control Board SARFPA Santa Ana River Flood Protection Agency SARI Santa Ana River Inceptor SARWQCB Santa Ana Regional Water Quality Control Board Glossary of Terms and Abbreviations SAWPA Santa Ana Watershed Project Authority SCADA Supervisory Control and Data Acquisition system SCAP Southern California Alliance of Publicly Owned Treatment Works SCAQMD South Coast Air Quality Management District SOCWA South Orange County Wastewater Authority SSMP Sanitary Sewer Management Plan SSO Sanitary Sewer Overflow SWRCB State Water Resources Control Board TDS Total Dissolved Solids TMDL Total Maximum Daily Load TSS Total Suspended Solids WDR Waste Discharge Requirements WEF Water Environment Federation WERF Water Environment Research Foundation Activated-sludge process — A secondary biological wastewater treatment process where bacteria reproduce at a high rate with the introduction of excess air or oxygen, and consume dissolved nutrients in the wastewater. Biochemical Oxygen Demand (BOD)—The amount of oxygen used when organic matter undergoes decomposition by microorganisms. Testing for BOD is done to assess the amount of organic matter in water. Biosolids — Biosolids are nutrient rich organic and highly treated solid materials produced by the wastewater treatment process. This high-quality product can be recycled as a soil amendment on farm land or further processed as an earth-like product for commercial and home gardens to improve and maintain fertile soil and stimulate plant growth. Capital Improvement Program (CIP) — Projects for repair, rehabilitation, and replacement of assets. Also includes treatment improvements, additional capacity, and projects for the support facilities. Coliform bacteria—A group of bacteria found in the intestines of humans and other animals, but also occasionally found elsewhere used as indicators of sewage pollution. E. coli are the most common bacteria in wastewater. Collections system — In wastewater, it is the system of typically underground pipes that receive and convey sanitary wastewater or storm water. Certificate of Participation (COP) — A type of financing where an investor purchases a share of the lease revenues of a program rather than the bond being secured by those revenues. Contaminants of Potential Concern (CPC) — Pharmaceuticals, hormones, and other organic wastewater contaminants. Dilution to Threshold (DR) — the dilution at which the majority of the people detect the odor becomes the D(f for that air sample. Glossary of Terms and Abbreviations Greenhouse gases — In the order of relative abundance water vapor, carbon dioxide, methane, nitrous oxide, and ozone gases that are considered the cause of global warming ("greenhouse effect'). Groundwater Replenishment (GWR) System — A joint water reclamation project that proactively responds to Southern California's current and future water needs. This joint project between the Orange County Water District and the Orange County Sanitation District provides 70 million gallons a day of drinking quality water to replenish the local groundwater supply. Levels of Service (LOS)—Goals to support environmental and public expectations for performance. NOMA— N-Nitrosodimethylamine is an N-nitrosoamine suspected cancer-causing agent. It has been found in the Groundwater Replenishment System process and is eliminated using hydrogen peroxide with extra ultra-violet treatment. National Biosolids Partnership (NBP) — An alliance of the National Association of Clean Water Agencies (NACWA) and Water Environment Federation (WEF), with advisory support from the U.S. Environmental Protection Agency (EPA). NBP is committed to developing and advancing environmentally sound and sustainable biosolids management practices that go beyond regulatory compliance and promote public participation in order to enhance the credibility of local agency biosolids programs and improved communications that lead to public acceptance. Plume—A visible or measurable concentration of discharge from a stationary source or fixed facility. Publicly-owned Treatment Works (POTW)— Municipal wastewater treatment plant. Santa Ana River Interceptor (SARI) Line — A regional brine line designed to convey 30 million gallons per day (MGD) of non-reclaimable wastewater from the upper Santa Ana River basin to the ocean for disposal, after treatment. Sanitary sewer — Separate sewer systems specifically for the carrying of domestic and industrial wastewater. Combined sewers carry both wastewater and urban run-off. South Coast Air Quality Management District (SCAQMD) — Regional regulatory agency that develops plans and regulations designed to achieve public health standards by reducing emissions from business and industry. Secondary treatment — Biological wastewater treatment, particularly the activated-sludge process, where bacteria and other microorganisms consume dissolved nutrients in wastewater. Sludge—Untreated solid material created by the treatment of wastewater. Total suspended solids (TSS)—The amount of solids floating and in suspension in wastewater. 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. BOARD OF DIRECTORS Needng Dare I TOBd.O(Dir. 02/z7/13 AGENDA REPORT em Number Item Number z Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PAYMENT OF CLAIMS OF THE ORANGE COUNTY SANITATION DISTRICT GENERAL MANAGER'S RECOMMENDATION Ratify Payment of Claims of the District by Roll Call Vote. CONFLICT OF INTEREST NOTIFICATION Pursuant to Government Code Section 84308, you are required to disclose any campaign contribution greater than $250 received in the past twelve months from any party to a contract involving the Orange County Sanitation District. Further, you may not participate in the decision making process to award a contract to such party. For reference, you are directed to the Register of Warrants as to all current contractors/vendors with the District. In general, you must disclose the basis of the conflict by identifying the name of the firm or individual who was the contributor. For the specifics of Government Code Section 84308, please see your Director's Handbook or call the office of General Counsel. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION See attached listing. ATTACHMENTS 1. Copies of Claims Paid reports from 1/0111 3- 1/1 5/1 3 and 1/16/13— 1/31/13 Page 1 of 1 Return to Agenda Report Claims Paid From 1/1/13 to 1/15/13 Vendor Warrant No. Amount Description Accounts Payable Warrants A&K Debuuing And Tumbling 53580 315.00 Refund Overpayment A W Chesterton 793 912.34 Repair&Maintenance Services amNor Supplies Abel Scale,Inc. 53722 870.00 Repair&Maintenance Services and/or Supplies Abso ute Standards,Inc. 536M 970.00 Laboratory Services&Supplies Aerotek 53585 3,874.64 Professional Services/Temporary Services Aerotek 53723 3,036.96 Professional Servicee/Temporary Services Agilent Technologies,Inc. 53724 750.91 Laboratory Services&Supplies Ago Industrell So-Cal Sweeping 53826 980.00 Street Sweeping Services Air Liquids America Specialty Gases LLC 53725 398.68 Laboratory Services&Supplies Air Products&Chemicals, Inc. 535M 11,553.23 Chemicals,WatenWastewater Treatment Airgas Safety,Inc. 781 1,956.31 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety,Inc. 794 71.84 Safety,Security,Health Equipment,Supplies,and Services Ahmed Inc. 53587 76.00 Laboratory Services&Supplies Alloy Tech Electropolishing, Inc. 53582 87.24 Reconciliation User Fee Refund Program American General Life Insurance Co. 53726 1,380.00 Life Insurance American Solutions for Business 536H 368.88 Office Supplies Anaheim Exlrosion Co.,Inc. 53583 373.71 Reconciliation User Fee Refund Program Analycts,Inc. 53727 63.88 Repair&Maintenance Services amNor Supplies AON Risk Insurance Services West 53704 29,534.00 Insurance(Owner Controlled Insurance Program) AppleOne Employment Service 782 2,299.20 Professional Servicestiempormy Services AppleOne Employment Service 795 4,463.49 Professional ServicesRemporaryServices Applied Industrial Technology 53589 61.55 Repair&Maintenance Services amNor Supplies Applied Industrial Technology 53728 158.08 Repair&Maintenance Services and/or Supplies ARBIPERP-Air Resources Board 536N 300.00 Governmental Agency Fees&Charges ARBIPERP-Air Resources Board 53729 1,710.00 Governmental Agency Fees&Charges Argus-Hasoo 53591 2,733.07 Repair&Maintenance Services and/or Supplies Amore Instruments,L.L.C. 53730 2,652.81 Electrical0ectoonic Equipment,Parts&Repairs Asia International 53692 190.00 Books&Publications AT&T 53581 238.62 Telecommunications AT&T Mobility ll,LLC, 53595 76.45 Telecommunications AT&T Mobility ll,L.L.C. 535% 7,707.64 Telecommunications AT&T Universal Biller 53693 2,720.57 Telecommunications AT&T 535M 32.65 Telecommunications Awards&Trophies Company 53731 52.07 Awards and Framing Services Battery Specialties 535N 2,820.12 Batteries,Various Battery Systems,Inc. 53732 195.00 Repair&Maintenance Services and/or Supplies Beach Wire and Cable 53733 74.13 Telecommunications BEC-Building Electronic Controls,Inc 53734 1,165.00 Electrical0ectronic Equipment,parts&Repairs Bedecon Investments 53597 13,695.81 Sewer User Refund Black&Veatch Corporation 53735 14,997.88 Professional ServicestEngineering Design Services Black&Veatch Corporation 53735 9,586.50 Professional ServiceslEngin airing Design Services BNI Building N. 535M 319.79 Books&Publications BRW Safety and Supply,Inc. 536M 317.91 Safety,Security,Health Equipment,Supplies,and Services C.Eddie Baker 536N 250.00 MeetinglTmining Expense Reimbursement Caliagua,Inc. 53718 55,347.00 Construction California Bank&Trust M1037519 53719 50,227.70 Construction California Dept.of Child Support 53736 2,630.39 Judgments Payable California Recreation Company 53737 3,376.32 Boat Slip Rental-Normal Ocean Monitoring Vessel EXHIBITA fnrztwmm Page 1 of 7 11215013 Return to Agenda Report Claims Paid From 1/1/13 to 1/15/13 Vendor Warrant No. Amount Description Callan Associates,Inc. 53603 4,231.75 Investment Advisory Services Camali Corp. 53738 6,725.00 Repair&Maintenance Services and/or Supplies Cambridge Isotope Labs 536N 399.02 Laboratory Services&Supplies Carl Women&Co. 53739 300.00 Professional Services-Workers Compensation CASA 53671 25,W0.00 Professional Organizations MeetinglTminingrMembomhip CASA 53740 850.00 Professional Organizations Meeting/rreininglMembership Cavanaugh Machine Works 53741 942.81 Repair&Maintenance Services andor Supplies CCEEB 53742 10p00.00 Professional Organizations MeetinglTminingrMembemhip(Demographics) CCP Industries. 53605 5,247.37 Janitor&Household Service&Supplies Cemtek Environmental,Inc. 53743 4,291.67 CEMS Maintenance Agreement Center For Executive Solutions 53744 9,561.46 Professional Services/Recrum ent Chades P.Cmy4ey Co. 536H 1,464.09 Repair&Maintenance Services and/or Supplies City of Huntington Beach 53635 20,542.99 Water Use City of Huntington Beach 53785 24.65 Water Use Clean Haibore Environmental Services 53607 2,834.10 Gnt&Screenings;Hand!Waste Disposal Cone-Parmer Instrument Co. 53608 837.34 Laboratory Services&Supplies Combustion Associates,Inc. 53745 1,320.00 Repair&Maintenance Services and/or Supplies Compucom Systems,Inc. 53705 210,692.18 Computer Applications&Services Connell ChevrolerGEO 53746 103.50 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Conocophillips Company#5285 Cob 4130112 53602 9.59 Refund Overpayment Consolidated Electrical Distributors 536M 1,479.72 ElectncalMoctronic Equipment,Parts&Repairs Consumers Pipe&Supply Co. 783 421.31 Repair is Maintenance Services and/or Supplies Control Factors Seattle,Inc. 53747 1,094.79 Repair&Maintenance Services andor Supplies Controlled Motion Solutions 53610 592.47 Repair&Maintenance Services and/or Supplies Controlled Motion Solutions 53748 428.54 Repair&Maintenance Services and/or Supplies County of Orange Auditor Controller 53611 1,035.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 53612 735.00 Governmental Agency Fees&Charges County Wholesale Electric Co. 53749 335.94 Electrical0ectronic Equipment,Parts&Repairs Court Order 53791 2,179.38 Judgments Payable Court Order 53812 108.00 Judgments Payable Court Order 538M 912.50 Judgments Payable CR&R,Inc. 53613 336.78 Waste Disposal Crispin Multiplex 53614 2,850.00 Repair&Maintenance Services and/or Supplies CS-AMSCO 53572 44,341.62 Repair is Maintenance Services and/or Supplies CSI Services,Inc. 53751 7,934.87 Professional Services GTemp International 53601 124.35 Repair&Maintenance Services and/or Supplies Culligan of Orange County 53752 60.40 Repair&Maintenance Services and/or Supplies CWEA Membership 537M 140.00 Professional Organizations MeetingRreininglMembership CWFA-TCP 53753 80.00 Professional Organizations Meetingffmining/Membership David Gutoff 53755 450.00 Laboratory Services&Supplies Wan Phuong 53861 288.28 MeetinglTmining Expense Reimbursement Noose Ventures LLC 53756 2,11M.00 JDE Upgrade Consulting Services DWG Associates 53757 9,585.95 Professional Services Emerson Process Management,L.L.P. 53756 1,508.17 Repair&Maintenance Services and/or Supplies Employee Benefits Specialists,Inc. 53759 11.105.09 Reimbursed Prepaid Employee Medical&Dependent Care ENS Resources,Inc. 53780 7,500.00 Professional Services-Federal Advocacy Ewing Irrigation 53761 247.08 Initiation Repair&Maintenance Services and/or Supplies Farhawk Marketing Services 53615 1,925.00 Repair&Maintenance Services and/or Supplies Fedex Corporation 53762 188.44 Freight Services EXHIBITA fnrzmlmm Page 2 of m ot3 Return to Agenda Report Claims Paid From 1/1/13 to 1/15/13 Vendor Warrant No. Amount Description Ferguson Waterworks 53616 346.52 Repair&Maintenance Services and/or Supplies Fine Science Tools,Inc 53617 745.51 Laboratory Services&Supplies Fisher Scientific 53618 8,531.01 Laboratory Services&Supplies Fisher Scientific 53763 6p42.17 Laboratory Services&Supplies Fleming Environmental,Inc. 53619 108.68 Repair&Maintenance Services and/or Supplies Franchise To.Board 53784 510.00 Judgments Payable Franchise Tax Board 53862 12,707.00 Judgments Payable Franklin Covey 53765 367.93 Office Supplies Frys Electronics 53768 71.09 Computers,Sof xame/Hans vare Galco Industrial Electronics 53620 1,673]1 Eleclricali Elecbonic Equipment,Parts&Repairs Ganahl Lumber Company 53767 45.22 Facilities,Maintenance,Services&Supplies Garland Manufacturing Co. 53621 2,918.28 Repair&Maintenance Services anchor Supplies Garland Manufacturing Co. 53768 21.976.00 Repair&Maintenance Services anchor Supplies Garrett Callahan Company 51 186.83 Chemicals,WaterWastewater Treatment Garrett Callahan Company 53769 7,945.42 Chemicals,WatenWastewater Treatment Gates Fiberglass Installers 537H 56,015.00 Repair&Maintenance Services anchor Supplies GBC(General Binding Corp) 53623 67.40 Office Supplies George Yardley Co. 53624 1,786.91 Repair is Maintenance Services anchor Supplies Getinge Castle 53625 791.65 Laboratory Services&Supplies GHD,L.L.C. 53770 19,441.50 Professional Services/Engineering Design Services Giedich-Mitchell,Inc. 53711 13,849.77 Repair&Maintenance Services anchor Supplies Glens Alignment&Brake Service 53772 110.00 Autos.Trucks&Marine Equipment,Paris,Accessories&Services Golden State Overnight Delivery Service 53773 100.58 Courier Services Golden State Water Company 53774 195.43 Water Use Golden Sun Marketing 53626 9,994.89 Repair&Maintenance Services anchor Supplies Golden West Window Service 53775 1,666.87 Facilities.Maintenance,Services&Supplies Government Fleet Expo&Conference 53627 395.00 Professional Organizations MeetinglTrainingfMemberehip Govplace 53628 701.60 Computer Applications and Services Grainger,Inc. 53629 3,182.88 Repair&Maintenance Services anchor Supplies Grainger,Inc. 53776 106.68 Repair is Maintenance Services anchor Supplies Grating Pacific,Inc. 5371 3,176.47 Repair&Maintenance Services anchor Supplies Greybar Electric Company 53630 10,513.48 Electrical0ectmonic Equipment,Parts&Repairs Goal Electric Company 53778 634.41 Electrical0ectronic Equipment,Parts&Repairs Greentech Landscape,Inc 53779 395.00 Landscepe Maintenance Services Hach Company 53631 943.35 Laboratory Services&Supplies Hardat S.Khublall 53701 200.00 MeetinglTraining Expense Reimbursement Harrington Industrial Plastics,Inc. 53780 7,161.86 Repair&Maintenance Services anchor Supplies HDR Engineering,Inc. 53707 65,572.27 Professional ServiceshEngin airing Design Services Helix Boerne,Inc. 53720 111,069.16 Construction Hosted Packard Company 53632 6,522.49 Computers,Software/Hardware Hi Standard Automotive,L.L.C. 53781 510.40 Autos,Trucks&Marine Equipment,Paris,Accessories&Services Hill Brothers 779 126,220.22 Chemicals,WasonVastewater Treatment HILLCO Fastener Warehouse,Inc. 53782 319.94 Repair&Maintenance Services anchor Supplies Hits,Inc. 53633 1,281.42 Repair&Maintenance Services anchor Supplies Home Depot 53634 661.42 Miscellaneous Paris and Supplies Home Depot 53783 473.28 Miscellaneous Pads and Supplies Hub Auto Supply 537M 130.36 Autos.Trucks&Marine Equipment,Paris,Accessories&Services Indiana Child Supped Bureau 53786 290.00 Judgments Payable Industrial Electric Machinery LLC 536M 4,717.30 Repair&Maintenance Services anchor Supplies EXHIBITA nnrzrwmm Page 3 of7m o13 Return to Agenda Report Claims Paid From 1/1H3 to 1H5/13 Vendor Warrant No. Amount Description Industrial Environmental Coalition of OC 53787 50.00 Professional Organisations MeetinglTraining/Membership Industrial Fabrics Corp. 53573 26,593.23 Repair&Maintenance Services anchor Supplies Industrial Threaded Products,Inc. 53637 516.02 Repair&Maintenance Services anchor Supplies Inorganic Ventures,Inc. 5363& 215.52 Laboratory Services&Supplies Inplant Sales,L.L.C. 53639 179.21 Repair&Maintenance Services anchor Supplies Insight Public Sector,Inc. 53640 330.02 Computers,Sofinvare/Hardware Insite Instrument Group,Inc. 53641 7,573.00 Electricall0ectronic Equipment,Parts&Repairs Intl.Union of Oper.Eng.AFL CIO Local 501 53788 4,733.09 Dues Deductions Irvine Pipe&Supply 53642 1,374.91 Repair&Maintenance Services anchor Supplies Irvine Pipe&Supply 53789 76.16 Repair&Maintenance Services anchor Supplies Jays Catering 53790 09.06 Catering Services Jensen Instrument Co. 53643 1,629.07 ElectricallElecVonic Equipment,Pam&Repairs Kars Advance Materials,Inc. 53792 22,500.00 Repair&Maintenance Services anchor Supplies Kato Landscape Inc. 53793 12,000.00 Landscape Services Kelly Paper 53794 122.10 Once Supplies Kerrie Water Solutions 780 216,267.47 Chemicals,WateuWastewater Treatment Kemira Water Solutions 791 49,041.19 Chemicals,WatehWastewater Treatment Krames Sm sell,LLC 53W 254.20 Safety,Security,Health Equipment,Supplies,and Services L.Johnson Painting 53795 12,660.00 Facilities,Maintenance,Services&Supplies Lee&Ro,Inc. 537% 6,643.56 Professional Services/Engineering Design Services Mag Thol,Inc. 53645 2,467.48 Electrical Parts&Supplies Mail Dispatch,LLC 53797 314.70 Mail Delivery Service Matheson Tri Gas,Inc. 53796 1,892.29 Laboratory Services&Supplies McMaster-Carr Supply Co. 53646 1,917.70 Repair&Maintenance Services and/or Supplies Michael Bolster 53700 170.00 MeetinglTmining Expense Reimbursement Mid-West Associates,Inc. 53647 318.27 Repair&Maintenance Services anchor Supplies Miele,Inc. 53646 925.00 Laboratory Services&Supplies Mission Abmsive&Janitorial Supplies 53649 641.14 Janitorial&Household Services&Supplies Morrow Meadows Corp. 53579 161,847.00 Construction MSC Industrial Supply Co. 536N 40.92 Repair&Maintenance Services anchor Supplies MTM Recognition Corporation 53799 390.48 Service A.M. Natasha Dubrovski, 53859 425.75 MeetinglTraining Expense Reimbursement NEAC Compressor Services USA Inc. 53651 331.04 Repair&Maintenance Services and/or Supplies Neal Supply Co. 53652 622.48 Repair&Maintenance Services anchor Supplies Nickell Metal Spray 53800 1,428.00 Repair&Maintenance Services anchor Supplies Nord Americas Inc. 53708 75,057.60 Carbon Replacement service OCEA 53801 711.75 Dues Deductible O'Connell Engineering&Construction,Inc. 53709 27,500.00 Repair&Maintenance Services anchor Supplies Once Depot 53653 4,546.30 Once Supplies Office Depot 53802 185.35 Office Supplies Olin Corpoaton 53654 3,973.85 Chemicals,WatenWastewater Treatment Olin Corporation 536M 13,881.34 Chemicals,WatenWastewater Treatment Olin Corporation 53803 11,680.01 Chemicals,WatenWastewater Treatment Omega Industrial Supply,Inc. 538M 2,370.10 Janitor&Household Service&Supplies OneSource Distributors,Inc. 53655 64.65 ElectricallElectronic Equipment,Parts&Repairs OneSourc i Disid ences,Inc. 53805 269.37 EleclricallEbumonic Equipment,Parts&Repairs Orange County Auto Pads 536M 262.78 Tuck Supplies Orange County Auto Pads 538M 338.08 Tuck Supplies Orange County Sanitation District 53703 1,604.09 Petty Cash Expense EXHIBITA nnrzrwmm Page 4 of 7 121ssm Return to Agenda Report Claims Paid From 1/1113 to 1115/13 Vendor Warrant No. Amount Description Orange County United Way 53807 40.00 Employee Contributions Orange County Water District 53710 65,496.13 GAP Water Pacific Mechanical Supply 784 127.18 Repair&Maintenance Services andror Supplies Pacific Parts and Controls,Inc. 536M 1,230.51 Repair&Maintenance Services and/or Supplies Parker Supply Company 785 1,981.77 Miscellaneous Pads and Supplies Parkson Corporation 53659 7,885.51 Mechanical Pads&Supplies PARMA 53808 395.00 Professional Organizations MeetinglTrainingrMemberchip PCS Express,Inc. 538H 149.79 Courier Services Peace Officers Council of CA 53810 2,242.50 Dues Deductions,Supervisors&Professionals Performance Pipeline Technologies 53711 59,312.38 Professional Servic.s/CCTV InspectionlSessu ire Cleaning PL Hawn Company,Inc. 536M 2,536.35 Repair&Maintenance Services and/or Supplies Polydyne,Inc. 790 117,494.39 Chemicals,WatenWastewater Treatment Ponton Industries,Inc. 53661 139.84 Laboratory Services&Supplies Praxair Distribution,Inc. 53662 68.32 Laboratory Services&Supplies Precon Products 53663 759.64 Repair&Maintenance Services andror Supplies Primrose Its Co.,Inc. 53664 126.25 Water&Ice Services Prudential Overall Supply 796 4,486.35 Uniforms Pump Aclion 53665 4,385.69 Oil Filters Q Air-Calif.Div.Pump Engineering 53811 3,611.08 Repair&Maintenance Services and Supplies Quinn Power Systems 536H 6,833.99 Autos,Trucks&Marne Equipment,Pads,Accessories&Services Rae Systems,Inc. 53813 4,113.52 Instrument Repairs Rainbow Disposal Co. 53814 3,567.26 West.Disposal Raymond Handling Solutions,Inc. 53667 185.00 Material Handling Tools&Equipment Remote Sensing Solutions Inc. 5360 14,990.20 Professional Services/Regional Ocean Modeling System(ROMS) Restek Corp. 53815 200.00 Laboratory Services&Supplies Royale Cleaners 53669 183.60 Miscellaneous Services Royale Cleaners 53816 260.90 Miscellaneous Services RPM Electric Motors 53817 3,825.56 Repair&Maintenance Services and/or Supplies Rutan&Tucker,L.L.P. 53818 163.19 Legal Services Saddleback Materials Co.,Inc. 53819 472.52 Miscellaneous Pads and Supplies Safety-Kleen 53671 208.78 Repair&Maintenance Services and/or Supplies Safety-Kleen 53820 3,592.16 Repair&Maintenance Services and/or Supplies San Diego/Orange Fluid System Technologies,Inc. 53672 465.31 Repair&Maintenance Services and/or Supplies Schmig Simi 786 185.93 Repair is Maintenance Services and/or Supplies Scott A.Green 538M 195.00 Meeting/Training Expense Reimbursement SETAC 538U 140.00 Professional Organizations MeetinglTrainingrMembership Shamrock Supply Co.,Inc. 53673 1,789.00 Repair&Maintenance Services and/or Supplies Shell Oil Products US k5 Outdo 12/29/06 53670 90.31 Refund Overpayment Shureluck Sales&Engineering 53674 608.79 Repair&Maintenance Services andror Supplies Shureluck Sales&Engineering 53823 352.67 Repair&Maintenance Services and/or Supplies Sigma-Aldrich,Inc. 53675 88.24 Laboratory Services&Supplies Snap On Industrial 53824 27.41 Truly So.Cal Gas Company 53825 2,366.66 UBlities South Coast Air Quality Management Dist. 53676 1,424.19 Governmental Agency Fees&Charges South Coast Air Quality Management Dist. 536T1 115.56 Governmental Agency Fees&Charges South Coast Air Quality Management Dist. 53678 1,113.34 Governmental Agency Fees&Charges South Coast Air Quality Management Dist. 53679 115.56 Governmental Agency Fees&Charges South Coast Environmental Co. 53821 19,838.81 Professional Services-Air Quality Monitoring South Coast Shipyard,Inc. 53827 975.00 Autos,Trucks&Marne Equipment,Parls,Accessories&Services EXHIBITA fnrzrwmm Page 5 of 11215013 Return to Agenda Report Claims Paid From 1/1/13 to 1/15/13 Vendor Warrant No. Amount Description Southern California Edison 53574 63,158.22 Utilities Southern California Edison 53828 263.25 Utilities Southern Counties Lubricants 53680 1,860.10 Fuel and Lubricants Sparklett-Dallas 53829 1,006.68 Miscellaneous Services SPEX Ctmiprep,Inc. 53830 57.08 Laboratory Services&Supplies Stanek Constructors Inc 53721 452,049.27 Construction Staples 53681 141.50 Office Supplies Stratus Environmental,Inc. 53682 3,375.00 Professional Services/Groundviater Removal Summit Steel 53683 1,808.20 Repair&Maintenance Services and/or Supplies Summit Steel 53831 4,411.61 Repair&Maintenance Services anchor Supplies Sunset Industrial Pads 536" 2,881.64 Repair&Maintenance Services andror Supplies Sunset Industrial Paris 53832 694.85 Repair&Maintenance Services anchor Supplies Super Chem Corporation 53685 408.91 Repair&Maintenance Services and/or Supplies Synagro West,Inc. 53575 756,121.63 Biosolitls Management Teled,mVISCO 53712 31,865.06 Laboratory Services&Supplies TestAmenca Ontario 797 210.00 Laboratory Services&Supplies Tetra Tech,Inc. 53833 5,132.59 Professional ServicesfEngineering Design ServicesS The Clock Sales and Service Co.,Inc. 53686 241.94 Repair&Maintenance Services anchor Supplies The Creative Group 53750 3,003.00 Professional Services/Temporary Services The Orange County Register 53657 6,530.00 Notices&Ads Theodore Robins Ford 53834 53.98 Autos,Trucks&Marine Equipment,Parts,Accessories&Services Thompson Industrial Supply,Inc. 787 4,520.75 Repair&Maintenance Services anchor Supplies Thompson Industrial Supply,Inc. 798 2,426.39 Repair&Maintenance Services and/or Supplies Time Warner Communications 53835 62.10 Telecommunications Tony's Lock&Safe Service&Sales 538M 242.03 Repair&Maintenance Services and/or Supplies Toshiba Business Solutions USA Inc. 53576 93,069.64 Computers,SofhvareMardware&Managed Services Total Resource Management,Inc. 5351 41,356.52 Professional Services/Implementation of IBM Maxim Trenscat 788 10,933.04 Repair&Maintenance Services and/or Supplies Tmnseat 799 1,327.85 Repair&Maintenance Services and/or Supplies Trance Incorporated 53837 2,280.00 Repair&Maintenance Services anchor Supplies Tropical Plaza Nursery,Inc. 53838 12,877.50 Landscape Maintenance Services Truck&Auto Supply,Inc. 53839 548.53 Autos,Trucks&Marine Equipment,Pads,Accessories&Services Tole RancWMagan Farms 53578 253,253.98 Biosolitls Management Tula RancWMagan Farms 53713 85,288.96 Biosolitls Management Turner And Sons Company 53840 16,725.00 Professional Services/Concrete Repairs U Line 53687 45.65 Miscellaneous Pads and Supplies UC Regents 53841 17,500.00 Professional Organizations Meeting/TrainingfMemberehip Ufira Scientific 53688 168.20 Laboratory Services&Supplies Umesh N.Munhy 53702 116.00 MeetingfTmining Expense Reimbursement Union Bank of California 53689 2,060.00 Annual Administrative Fee for Series 2007A Certificates of Participation Union Oil 536H 1,350.00 Refund Overpayment United Parcel Service 53842 95.21 Freight Services Univar USA Inc 792 32,590.94 Chemicals,WatenrWastewater Treatment University of California,San Diego 53843 15,000.00 Professional Services/Sudace Mooring Pipe Rehab Project US Peroxide,L.L.C. 53714 86,797.49 Chemicals,WaterbWastewater Treatment Velin Corporation 789 2,727.53 Repair&Maintenance Services anchor Supplies Vapex Products,Inc. 53691 5,350.40 Electricaldi lectronic Equipment,Parts&Repairs VCI Construction,Inc. 53844 294.13 Refund payment,Paid to OCSD in error Venznn California 53845 639.90 Telecommunications EXHIBITA fnrz Wmm Page 6 of ag ot3 Return to Agenda Report Claims Paid From 1/1/13 to 1/15/13 Vendor Warrant No. Amount Description Veined Wireless 53846 1,090.53 Telecommunications Vsme's Plumbing 53547 1,497.47 Plumbing Services&Supplies Village Nurseries 53848 168.54 Repair&Maintenance Services andfor Supplies Vision Financial Corporation 53849 2,524.36 Employee Voluntary Benefits Voyager Fleet Systems,Inc. 53715 48,018.89 Autos,Trucks&Marine Equipment,Paris,Accessories&Services MR Scientific Products 53692 1,761 Laboratory Services&Supplies MR Scientific Products 538M 7,780.72 Laboratory Services&Supplies Wace Filter 53693 2,307.75 Repair&Maintenance Services and/or Supplies Water Environment Federation 53851 871.00 Professional Organizations MeetinglTreiningfMembership MiderReuse Association 53716 50,000.00 Professional Organizations Meeting/1runinglMembership Waters Corporation 536N 1,548.26 Laboratory Services&Supplies Waxie Sanitary Supply 53695 3,234.41 JanitorB Household Service&Supplies West Coast Safety Supply Co. 536M 4,308.25 Safety,Security,Health Equipment,Supplies,and Services West Lite Supply Company,Inc. 53697 5,854.87 Eleclncal/Electronic Equipment,Paris&Repairs Western Blue/InsighVHewlett Packard 53717 82,117.57 Computers,SofteapHardware White Star Peals 53852 310.00 Repair&Maintenance Services and/or Supplies Winer Corporation 53853 3,499.47 Repair&Maintenance Services and/or Supplies Xerox Corporation 538M 2,052.16 Computers,SofhvarelHimadire&Managed Services Xped Solutions,Inc. 53855 18,833.20 Computers,SofhvarelHamedire Xyon Business Solutions,Inc. 538H 320.00 Professional Services/Temporary Services Yale/Chase Materials Handling,Inc. 536N 3,934.57 Electrical/Electronic Equipment,&Electric Cad Parts&Repairs Vale/Chase Materials Handling,Inc. 53857 81 Eleclncal/Electronic Equipment,&Electric Cad Parts&Repairs Total Accounts Payable-Warrants $ 4,505,206.05 Payroll Disbursements Employee Paychecks W437 - 50460 $ 4,025.92 Interim Payroll-AREA(1/02f13)' Employee Paychecks M480 - M535 103,243.97 Biweekly Payroll(1109113) Employee Paychecks N536 - N537 861.03 Interim Payroll-Director Pay(1/08f13) Employee Paychecks W538 - 50677 309,522.51 Interim Payroll-Leave Payouts(1/10/13) Employee Paychecks W678 - 50694 13,285.79 Interim Payroll-Managers,EMT,BOP Payments(1/07/13) Employee Paychecks M695 2,459.01 Interim Payrol-Repayment to EE from prior year(1115113) Employee Paychecks N696 210.00 Interim Payroll-Reissue AREA payment(1/15/13) Employee Paychecks W697 214.58 Interim Payroll-Director Pay(1/15/13) Direct Deposit Statements 331293-331462 29,502.58 Interim Payroll-AREA(1/02f13) Direct Deposit Statements 331463-332037 1,421,992.31 Biweekly Payroll(1109113) Total Payroll Disbursements $ 1,885,117.70 �Chpkk numeera 50451-so479 mee in pmr perms Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 810,208.24 Biweekly Payroll(1109113 and 1/041130412 Taxes) Union Bank of California 23.927.52 Workers'Compensation Services(1/09113) Total Wire Transfer Payments $ 834,135.76 Total Claims Paid 1101/13-111 5113 $ 7,224,459.51 EXHIBITA nnrzrprmm Page 7 of7m o13 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Accounts Payable Warrants A W Chesterton 802 $ 2,024.78 Repair&Maintenance Services and/or Supplies A W Chesterton 815 998.72 Repair&Maintenance Services andor Supplies ABBA Pads M176 694.00 Repair&Maintenance Services and/or Supplies Absolute Standards,Inc. 54033 250.00 Laboratory Services&Supplies Absolute Standards,Inc. M177 75.00 Laboratory Services&Supplies AccuStandaul 54118 179.26 Laboratory Services&Supplies A-Check America,Inc. 816 566.43 Human Resources Services Adam D.Coghill 54316 172.50 Meeting/Training Expense Reimbursement AECOM Technical Services,Inc. 54162 31,136.64 Professional Services/Enginearing Design Services Aerotek 540M 1,422.24 Professional Services/Temporary Services Aerotek 54179 181.20 Professional Services/Temporary Services Air Liquids America Corp. 538M 2,569.17 Laboratory Services&Supplies Air Liquids America Specialty Gases LLC 53885 639.17 Laboratory Services&Supplies Air Products&Chemicals,Inc. 53886 9,119.16 Chemicals,WatenyJastewater Treatment Air Products&Chemicals,Inc. M035 6,166.82 Chemicals,WaterMastewater Treatment Air Products&Chemicals,Inc. 54180 20,642.95 Chemicals,WaterMastewater Treatment Airgas Safety,Inc. 803 7,890.28 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety,Inc. 817 2,767.02 Safety,Security,Health Equipment,Supplies,and Services Airgas Safety,Inc. 832 1,796.87 Safety,Security,Health Equipment,Supplies,and Services Airgas USA,LLC 804 2,606.36 Laboratory Services&Supplies Airgas USA,LLC 818 1,140.62 Laboratory Services&Supplies Airgas USA,LLC 833 2,185.33 Laboratory Services&Supplies Ahmed Inc. 54181 690.75 Laboratory Services&Supplies American Chemical Society 540M 163.00 Professional Organizations Meetin iffouningtMembership American Chemical Society M182 317.00 Professional Organizations Meating/fraining/Membership American Concrete Institute 54183 544.00 Books and Publications American Express TVL Related Svcs Co.,Inc. 0887 1,459.02 Purchasing Card Program for Miscellaneous Travel Expenses American Society for Microbiology 538H 183.00 Professional Organizations MeetinglTminingtMembership AppleOne Employment Service 819 3,249.00 Professional Services/femporary Services AppleOne Employment Service 834 4,048.60 Professional Services/Temporary Services Applied Industrial Technology 0889 50.00 Repair&Maintenance Services and/or Supplies Applied Industrial Technology 54037 1,883.44 Repair&Maintenance Services and/or Supplies Applied Industrial Technology 54184 192.28 Repair&Maintenance Services and/or Supplies Applied Spectrometry Associates,Inc. 54185 524.00 Repair&Maintenance Services and/or Supplies Aquatic Bicaystems,Inc. M186 311.00 Laboratory Services&Supplies ARS Enterprises,Inc. 53891 425.00 Laboratory Services&Supplies Ashbrook Simon Hadley Operations,L.P. 54039 822.45 Repair&Maintenance Services and/or Supplies Ashbrook Simon Hadley Operations,L.P. 54187 9,084.74 Repair&Maintenance Services and/or Supplies AT&T 54175 239.54 Telecommunications AT&T Long Distance. 541H 37.74 Telecommunications AT&T Mobility ll,L.L.C. 54189 7,937]5 Telecommunications AT&T Universal Biller 53892 144.05 Telecommunications AT&T Teleconference Services 54040 114.98 Telecommunications ATM AA,Inc. 53893 280.00 Lab Services Austin Building and Design aba The Austin Company 54015 274,804.97 Professional ServiceslEngineering Design Services Awards&Trophies Company 538N 23.66 Awards and Framing Services Awards&Trophies Company 54190 489.70 Awards and Framing Services AWSI 53895 269.00 Professional Services-DOT Program Administration EXHIBIT B fivalti Page 1 of 11 ascots Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Barraged Cory.International 54191 2,682.61 Professional Organiutions MeetinglTreiningfMembership Battery Specialties 538% 1O7.84 Batteries,Various Battery Specialties 54192 98.28 Batteries,Various Battery Systems,Inc. 0897 1,421.65 Repair&Maintenance Services and/or Supplies Battery Systems,Inc. 54041 29.94 Repair&Maintenance Services and/or Supplies Battery Systems,Inc. M193 590.80 Repair&Maintenance Services and/or Supplies Bernardo DBAnda 54317 185.00 MeetinglTmining Expense Reimbursement BioMeneux Vtek,Inc. 54194 1,842.71 Laboratory Services&Supplies Black&Veatch Corporation 53863 25,638.20 Professional Services/Engineering Design Services Black&Veatch Corporation 53863 133,029.17 Professional Services1ingineming Design Services Black&Veatch Corporation 54016 175,265.51 Professional ServicesAingineering Design Services Black&Veatch Corporation M016 3,534.41 Professional Services/Engineering Design Services Bon Air,Inc. 53878 151,525.00 Construction Brea Imperial,Inc. M042 5,000.00 Miscellaneous Services Brenner-Fiedler&Assoc.,Inc. 54043 1,026.83 Laboratory Services&Supplies Brown&Caldvrell 53864 122,021.12 Professional Services/Engmeenng Design Services Brown&Caldi 54017 90,110.66 Professional Services/Engineering Design Services BRW Safely and Supply,Inc. 53898 152.58 Safety,Security,Health Equipment,Supplies,and Services BRW Safety and Supply,Inc. 54044 367.38 Safety,Security,Health Equipment,Supplies,and Services Bug Central 08" 870.00 Pest Control Services Bureau Veritas North America,Inc. 805 1,341.45 Industrial Hygiene Services Bureau Verdes North America,Inc. 820 1,899.00 Industrial Hymens Services California Bank&Trust#201037519 53879 t6,369.46 Construction California Barricade Rentals 54045 2,600.00 Miscellaneous Services California Dept.of Child Support 54M 2,630.39 Judgments Payable California Relocation Services,Inc. M195 1,170.00 Miscellaneous Services-Moving/Relocation Cal-Therm Inc. 53900 2,015.00 Repair&Maintenance Services and/or Supplies Carbon Activated Corporation 53901 19,900.00 Repair&Maintenance Services and/or Supplies Career Track 54047 149.00 Professional Organiutions MeetinglTminingfMembership Carrillo Engineers 54018 54,585.31 Professional ServiceslEngineming Design Services Carollo Engineers 541% 8,219.70 Professional Services/Engineering Design Services Candle Engineers 54163 31,196.86 Professional Services CESABC 54197 175.00 Professional Organiutions MeetinglTminingfMembership Charles P.Crowley Co. 53902 4,326.93 Repair&Maintenance Services and/or Supplies City of Fountain Valley 53865 43,820.64 Water Use City of Fullerton M220 129.34 Water Use City of Huntington Beach 53932 13.20 Water Use City of Huntington Beach M233 9,462.68 Water Use City of Newport Beach 54095 305.01 Water Use City of Seal Beach M283 204.80 Water Use City of Tustin 538H 52,371.68 Water Use City of Westminster M198 25.80 Water Use Compressor Components of California 54048 12,903.30 Repair&Maintenance Services and/or Supplies Connell ChevrolehGEO 54199 433.44 Autos,Trucks&Marine Equipment,Pads,Accessories&Services Constellation Newenergy Gas Division LLC 542M 14,352.96 Natural Gas Consumers Pipe&Supply Co. 835 189.67 Repair&Maintenance Services andlrir Supplies Corporate Image Maintenance,Inc. 54019 36,717.00 Janitor&Household Service&Supplies CORRPRO Companies,Inc. 54164 37,572.50 Professional Services/Temporary Services Cortech Engineering 53903 5,738.45 Repair&Maintenance Services and/or Supplies EXHIBIT fnrzlwmm Page 2 of 11 a 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Cortech Engineering 54202 6,065.69 Repair&Maintenance Services andfor Supplies Coss,Ronald J. 54151 185.00 MeetingRreining Expense Reimbursement Cotton Point Design,Inc.des Power Design 54203 2,451.60 Electrical Electronic Equipment,Pads&Repairs County of Orange Auditor Controller 539M 226.50 Governmental Agency Fees&Charges County of Orange Auditor Controller 53905 17.50 Governmental Agency Fees&Charges County of Orange Auditor Controller 54049 51.50 Governmental Agency Fees&Charges County of Orange Auditor Controller 54050 1,757.00 Governmental Agency Fees&Charges County of Orange Auditor Controller M051 465.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 54052 1,080.00 Governmental Agency Fees&Charges County of Orange Auditor Controller 54204 795.00 Governmental Agency Fees&Charges Court Order 54082 2,179.38 Judgments Payable Court Order M120 108.00 Judgments Payable Court Order 541H 912.50 Judgments Payable CR&R,Inc. M053 1,376.39 Wesle Disposal Crane Veyor Corp. 54205 2,948.00 Repair&Maintenance Services andror Supplies CS-AMSCO 542E 164.35 Repair&Maintenance Services and/or Supplies CWEA Annual Conference 54055 595.00 Professional Organizations MeetinglTrainingrMembership CWEA Annual Conference M208 492.00 Professional Organizations Meeting/rraininglMembership CWEA Membership 54056 280.00 Professional Organizations MeetingfTraining/Membership CWEA Membership 54209 280.00 Professional Organizations MeetinglTrainingrMembership David D.Halverson 54014 149.55 MeetinglTmining Expense Reimbursement David Wheeler Pest Control,Inc. 53906 2,340.00 Pest Control Services David Wheeler Pest Control,Inc. 54057 1,260.00 Past Control Services DDB Engineering,Inc. mom 1,155.00 Professional Services-Advocacy De La Rive Construction 54028 32,996.26 Construction Do Leon Access Floors,Inc. 53907 1,257.00 Repair&Maintenance Services and/or Supplies DeGuelle Glass Co.,Inc. 54210 400.00 Repair&Maintenance Services and/or Supplies Denovo Ventures LLC M059 6,825.00 JDE UKmde Consulting Services Denovo Ventures LLC 54211 8,100.00 JDE Upgrade Consulting Services Designer Stitch Embroidery 53908 12,444]0 Public Outreach Supplies Detector Technology,Inc. 53909 606.00 Laboratory Services&Supplies Dezurik Water Controls 0910 605.56 Repair&Maintenance Services and/or Supplies Document Technologies,Inc. 54020 48,200.57 Professional Services-Legal Douglas Kanto M319 140.00 MeetingRreining Expense Reimbursement Dunn-Edwards Corporation 53911 t42.20 Facilities,Maintenance,Services&Supplies Dum,Edoards Corporation M212 1,041.63 Facilities,Maintenance,Services&Supplies Eberhard Equipment 5406E 613.72 Tractor Repair Edward M.Torres M321 424.39 MeetingRreining Expense Reimbursement Edward S Babcock&Sons Inc 54061 210.00 Laboratory Services&Supplies EIAP(Environmental Lab Accredition Pgm) M157 1,455.00 Lab Certification Embark Consulting,LLC 54062 3,243.51 Professional ServicooSCADA Software Maintenance Support Emerson Process Management,L.L.P. 53912 1,640.00 Repair&Maintenance Services and/or Supplies Employee Benefits Specialists,Inc. 54021 822,113.36 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists,Inc. 54063 11,489.]1 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists,Inc. 541H 1,472.00 Reimbursed Prepaid Employee Medical&Dependent Care Employee Benefits Specialists,Inc. 54213 2,355.25 Reimbursed!Prepaid Employee Medical&Dependent Care Enchanter,Inc. 53913 1,520.00 Vessel Services-Monitoring Vessel Names ENS Resources,Inc. 54214 7,500.00 Professional Services-Federal Advocacy Environmental Resource Associates 54064 2,514.13 Laboratory Services&Supplies nnrzrwmm EXHIBIT Page 3 of 11 a 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Environmental Water Solutions,Inc. 54065 3,903.66 Repair&Maintenance Services and/or Supplies Eros,Yang 54009 139.00 MeetingRreining Expense Reimbursement Eros,Yong 54156 115.00 MeetinglTmining Expense Reimbursement Ewing irrigation M215 450.42 Irrigation Repair&Maintenance Services and/or Supplies Excel Door&Gate Co.,Inc. 53914 6,467.31 Repair&Maintenance Services and/or Supplies Express Lens Lab 806 333.96 Safety,Security,Health Equipment,Supplies,and Services Feviola Miranda 54154 1,056.06 MeetinglTmining Expense Reimbursement Fedex Corporation 0915 69.94 Freight Services Faces Corporation 54216 72.37 Freight Services First American Corelogic M201 87.00 Software Maintenance Agreement Fisher ScientRc 53916 1,466.33 Laboratory Services&Supplies Fisher Scientific 54217 4,367.11 Laboratory Services&Supplies Fleming Environmental,Inc. 53917 703.97 Repair&Maintenance Services and/or Supplies FLW,Inc. 54218 623.84 ElectricallElectronic Equipment,Pads&Repairs Fountain Valley AAA Auto Spa 53918 246.25 Autos.Trucks&Manne Equipment,Paris,Accessories&Services Fountain Valley Paints,Inc. 540H 237.60 Facilities,Maintenance,Services&Supplies Franchise Tax Boats 54067 510.00 Judgments Payable Fresno First Bank-Acct 100013307 54010 2,244.60 Construction,Retention Fresno First Bank-Acct 100013315 54029 40,043.54 Construction Galbraith Laboratories,Inc. mom 420.00 Outside Lab Services Gallade Chemical,Inc. 54221 741.47 Chemicals,WatenWastewater Treatment Garland Manufacturing Co. 53919 63.00 Repair is Maintenance Services andlor Supplies Gate Software,LLC 54069 3,000.00 Computers,SoftwsrelHaMwsre&Managed Services Getinge Castle 54222 213.29 Laboratory Services&Supplies GHD,L.L.C. 54070 9,202.50 Professional ServicesfEngineering Design Services Giedich-Mitchell,Inc. 53920 69.42 Repair&Maintenance Services andlor Supplies Giedich-Mttchell.Inc. 54071 1,086.53 Repair&Maintenance Services andor Supplies Global Industrial Equipment 0921 561.00 Laboratory Services&Supplies Global Industrial Equipment 54072 2,619.30 Laboratory Services&Supplies GMR Transcnption 53922 368.00 Professional Services-Transcription GMU Geotechnical.Inc. 54073 2,900.00 Professional Services/Generel Counsel-Biiterpoint Rehab Golden State Overnight Delivery Service 0923 5.62 Courier Services Golden State Overnight Delivery Service 54074 242.82 Courier Services Golden State Overnight Delivery Service M223 63.57 Courier Services Golden West Window Service 53924 1,650.00 Facilities,Maintenance,Services&Supplies Golden West Window Service M224 13,290.00 Facilities,Maintenance,Services&Supplies Goodyear Tim&Rubber Company 53925 3,753.64 Autos,Trucks&Manne Equipment,Pads,Accessories&Services Govplace M225 701.60 Computer Applications and Services Grainger,Inc. 53926 7,893.57 Repair&Maintenance Services and/or Supplies Grainger,Inc. M075 12,700.73 Repair&Maintenance Services and/or Supplies Grainger,Inc. 54226 6,665.15 Repair&Maintenance Services and/or Supplies Graphic Products,Inc. 53927 1,460.82 Miscellaneous Supplies Groybar Electric Company 53928 312.01 Electncal0ectronic Equipment,Pads&Repairs Graybar Electric Company M076 157.85 ElecincaVElectronic Equipment,Pans&Repairs Graybar Electric Company 54227 11,340.00 ElectncaVElectronic Equipment,Pads&Repairs H.H.Fremer Architects,Inc. 54228 10,437]5 Construction Haaker Equipment Company 54077 1,730.64 Autos,Trucks&Manne Equipment,Paris,Accessories&Services Handy Hose Services 54229 213.17 Repair&Maintenance Services and/or Supplies Harrington Industrial Plastics,Inc. 539N 7,208.81 Repair&Maintenance Services and/or Supplies EXHIBIT fnrzrwmm Page 4 of 11 a 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Harrington Industrial Plastics,Inc. 54230 2,624.26 Repair&Maintenance Services and/or Supplies Hartzell Fan Inc. 54078 2,868.82 Electrical/Electronic Equipment,Paris&Repairs Hasler, Inc. 53930 64.65 Postage Meter Rental HDR Engineering,Inc. 0867 31,456.86 Professional Services/Engineering Design Services HOP Engineering,Inc. 54165 52,933.36 Professional Services/Engineering Design Services Hill Brothers 800 151,753.26 Chemicals,WaterNdastewater Treatment Hill Brothers 821 7,700.00 Chemicals,WaterWastewater Treatment Hill Brothers 830 100,814.67 Chemicals,WaterWastewater Treatment Home Depot 53931 243.13 Miscellaneous Parts and Supplies Home Depot M079 28.13 Miscellaneous Paris and Supplies Home Depot 54231 145.47 Miscellaneous Paris and Supplies Hub Auto Supply M232 1,141.18 Autos,Trucks&Marine Equipment,Pads,Accessories&Services Hyatt Legal Plans 53933 1,843.00 Professional Services-Legal Hyatt Legal Plans 54234 1,843.00 Professional Services-Legal IEEE Institute of Electrical&Electron 53934 204.00 Professional Organizations Mesting/TraininglMembership Indiana Child Supped Bureau 54080 290.00 Judgments Payable Industrial Metal Supply 54235 826.20 Repair&Maintenance Services and/or Supplies Industrial Threaded Products,Inc. 53935 9,112.24 Repair is Maintenance Services and/or Supplies Infrastructure Engineering Core. 53936 5,901.90 Professional Services Innovative Automation,Inc,dine Innovative 0937 4,475.50 Repair&Maintenance Services and/or Supplies Insight Public Sector,Inc. 53938 4,563.97 Computers,Sofvvare/Harclware Integrated Process Technologies,Inc. 53939 2,235.35 Repair is Maintenance Services and/or Supplies Intergraph Corporation 53940 6,180.00 Professional Services Interna0onal Business Machines M236 6,592.17 Computer Applications&Services Interstate Batteries of Cal Coast 54237 418.00 Repair&Maintenance Services and/or Supplies InB.Union of Oper.Eng.AFL CIO Local 501 most 4,733.09 Dues Deductions Intratek Computer,Inc. 53941 874.02 NeMvrWServar/Printer Maintenance Services Inttatek Computer,Inc. 54238 1,126.07 Neo,ork/Server/Printer Maintenance Services Ironman Pans&Services 54239 391.82 Repair&Maintenance Services and/or Supplies Irvine Pigs&Supply 53942 73.51 Repair is Maintenance Services and/or Supplies Irvine Ranch Water District 54240 62.63 Water Use J F Shea Construction,Inc. 0880 234,470.45 Construction J F Shea Construction,Inc. 54030 326,393.78 Construction J F Shea Construction,Inc. M171 734,332.90 Construction J R Filane Construction 53881 337,253.47 Construction J R Filanc Construction M172 1,051,262.03 Construction J.Fletcher Creamer&Son,Inc. 54031 240,965.75 Construction Jamison Engineering Contractors,Inc. 53943 1,500.00 Professional Services/Consimo0on Support Services Jamison Engineering Contractors,Inc. 54241 19,961.17 Professional Services/Construction Support Services Jays Catering 53944 799.27 Catering Services JCI Jones Chemicals,Inc. 828 4,889.71 Chemicals,WatehWastewater Treatment Jie K.Chang M012 180.00 Meeting/rmining Expense Reimbursement JP Morgan Chase Bank,NA 54022 21,1 1.71 Purchasing Card Program for Miscellaneous Paris and Supplies Kanawha Insurance Company 53945 2,569.36 Voluntary Benefits-SSTD Insurance Kerrie Water Solutions 801 25,212.75 Chemicals,WatehWastewater Treatment Kemira Water Solutons 814 31,184.85 Chemicals,Watooftsitewater Treatment Kerrie Water Solutions 831 110,446.27 Chemicals,WaterWastewater Treatment Ken Engineering&Sales Inc 54242 226.12 Repair&Maintenance Services and/or Supplies La Marche Manufacturing Co. 54083 4,432.34 Repair&Maintenance Services and/or Supplies EXHIBIT fnrzrwmm Page 5 of 11 a 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Lab Support 540M 3,892.00 Professional Services/Temporary Services Lexis-Nexis 54243 84.00 Books&Publications On-Line Liberty Mutual Claims 54085 247.74 Insurance Liebert Cassidy 54244 9,955.25 Professional Services/Employee Relations Lionakis 53948 280.00 Professional Somico IArchltectural and Landscaping Consulting Services Use A.Rothbart M320 ]10.]3 Meetin9]rreining Expense Reimbursement Malcolm Pimie Inc. 54038 W7.19 Construction Malcolm Pimie,Inc. M086 13,392.23 Professional Services/Engmeenng Design Services Malcolm Pimie,Inc. 54245 21,026.17 Professional ServiceoEngineering Design Services Marine&Industrial Hydraulics,Inc. M246 8,500.00 Repair is Maintenance Services andlor Supplies Massidutual Michel Financial Group 5394] 9,631.00 Executive Disability Plan Premium MassMutuai Michel Financial Group M247 5,472.76 Executive Disability Plan Premium Matheson Tn Gas,Inc. 54087 1,703.22 Laboratory Services&Supplies Matheson Tn Gas,Inc. M248 3,186.57 Laboratory Services&Supplies Matthew J.Connor 54013 195.00 Meeting/Tmining Expense Reimbursement Matthew T.Worthy M155 140.00 MeetinglTraining Expense Reimbursement Maxim Security Systems 540H 972.72 Safety,Security,Health Equipment,Supplies,and Services McMaster-Carr Supply Co. 5 wit 6,211.47 Repair is Maintenance Services and/or Supplies McMaster-Carr Supply Co. 54089 666.40 Repair&Maintenance Services andfor Supplies McMaster-Carr Supply Co. M249 1,495.25 Repair&Maintenance Services and/or Supplies MCR Technologies,Inc. 53949 849.92 Repair&Maintenance Services and/or Supplies Mesa Consolidated Water District 53950 22.00 Water Use Mesa Muffler 54250 301.00 Autos.Trucks&Marine Equipment,Parts,Accessories&Services Michael D.Masterson M153 140.00 MeetinglTraining Expense Reimbursement Michael I.Gold 54318 460.88 MeetingRmining Expense Reimbursement Mid-West Associates,Inc. 53951 2,301.25 Repair is Maintenance Services and/or Supplies Miele,Inc. 54251 200.00 Laboratory Services&Supplies Minank Corporation M252 688.66 Repair&Maintenance Services and/or Supplies Munlams&Wismeyer Group,Inc. 54253 2,011.80 Professional Services-Legal Moore Medical Inc. 53952 6,913.73 Medical Supplies Motion Industries,Inc. 54254 2,160.80 ElectnwllElectionic Equipment,Pads&Repairs MUM Recognition Corporation mom 152.20 Service Awards NACE International 54091 590.00 Professional Organizations MeetinglTrainingfMembership NACE International M255 130.00 Professional Organizations Meeting]haininglMembership NAFA,Inc. 53953 695.00 Professional Organizations Meeting/TrainingfMembership Neal Supply Co. M092 1,155.90 Repair&Maintenance Services and/or Supplies Neal Supply Co. 542H 3,334.93 Repair&Maintenance Services and/or Supplies NetworkFlest,Inc. M093 2,940.07 SofNvare Maintenance Agreement New Pig 54094 620.60 Repair&Maintenance Services andfor Supplies Nextteq,L.L.C. M257 621.34 Pumps Ngo,Lo T. 54159 2,000.00 Employee Computer Loan Program Nicholas J.Armed" M315 115.00 MeetingRreining Expense Reimbursement Nickell Metal Spray 54096 1,650.00 Repair&Maintenance Services andfor Supplies Ninyo&Moore M097 1,149.50 Professional Services/Geotech&Material Testing Norman A.Traub Associates 53954 2,210.39 Legal Services NRG Engine Services,L.L.C. 53869 309,947.69 Repair&Maintenance Services and/or Supplies NRG Engine Services,L.L.C. 54258 259.51 Repair&Maintenance Services andfor Supplies OCB Reprographics 53890 10,050.79 PnntingfReprographics Services OCEA 540H 711.75 Dues Deductible fnemmm Page 6 of 11 EXHIBIT 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Office Depot 53965 4,309.48 Office Supplies Office Depot 54099 26.58 Office Supplies Office Depot 54259 2,173.98 Office Supplies OI Analytical 539M 310.84 Laboratory Services&Supplies OI Analytical 542N 207.36 Laboratory Services&Supplies Olin Corporation 53957 3,921.98 Chemicals,WampWastewater Treatment Olin Corooredon 53957 7,034.31 Chemicals,WatepWastewater Treatment Olin Corporation 54100 6,961.17 Chemicals,WatenWastewater Treatment Olin CoMoraton 54261 3,936.50 Chemicals,WatepWastewater Treatment Olin Corporation 54261 13,894.65 Chemicals, Ammu Jastevoter Treatment OneSoume Distributors,Inc. 53958 1,308.72 Electrical/Electronic Equipment,Pads&Repairs OneSource Distributors,Inc. 54262 361.13 Electrical/Electronic Equipment,Parts&Repairs Oracle America Inc. 53959 21,713.38 Sofhvam Maintenance Agreement Oracle America Inc. 54101 281.93 Sofearre Maintenance Agreement Orange County Auto Pads 54263 130.83 Truck Supplies Orange County Sanitation District 54160 1,587.63 Petty Cash Expense Orange County United Way 54102 40.00 Employee Contributions Orange County Water District M023 63,854.62 GAP Water Pacific Investment Management 54024 149,211.40 Professional Financial Services Pacific Mechanical Supply 807 415.02 Repair&Maintenance Services and/or Supplies Pacific Mechanical Supply 822 73.77 Repair&Maintenance Services and/or Supplies Pacific Mechanical Supply 836 133.49 Repair&Maintenance Services mWor Supplies Pacific Pads and Controls,Inc. 54264 340.20 Repair&Maintenance Services and/or Supplies Packer Supply Company 837 2,673.78 Miscellaneous Pads and Supplies Parkhouse Tire,Inc. 53961 399.01 Autos,Trucks&Marne Equipment,Paris,Accessories&Services Partitions.Tire,Inc. 53961 2,942.57 Autos.Trucks&Marine Equipment,Pads,Accessories&Services Parkhomm Tire,Inc. 54103 806.57 Autos.Trucks&Marine Equipment,Parts,Accessories&Services Patriot Environmental Laboratory Service 0962 960.00 Repair&Maintenance Services and/or Supplies Patriot Video Productions 541N 337.50 Miscellaneous Services Peace Officers Council of CA M105 2,254.00 Dues Deductions,Supervisors&Professionals Peerless Wiping Materials Co. 54106 794.02 Janitor&Household Service&Supplies Performance Pipeline Technologies M107 2,007.36 Professional Services/CCTV Inspection/Sewerine Cleaning Performance Pipeline Technologies 541H 33,831.32 Professional ServicesICCTV Inspection/Sewedine Cleaning Phenom.nex M108 161.44 Laboratory Services&Supplies PL Hawn Company,Inc. 53963 694.29 Repair&Maintenance Services and/or Supplies PL Hawn Company,Inc. 54109 87.87 Repair&Maintenance Services and/or Supplies PL Hawn Company,Inc. 54265 1,109.97 Repair&Maintenance Services and/or Supplies Polydyns.Inc. 813 76,276.65 Chemicals,WampWastevoter Treatment Period Industries,Inc. 54110 2,948.66 Laboratory Services&Supplies Port Supply 54111 781.66 Autos,Trucks&Marine Equipment,Pads,Accessories&Services Port Supply 542H 331.05 Autos,Trucks&Marne Equipment,Paris,Accessories&Services Postmaster General 54174 226,644.00 Postage Preour Distribution,Inc. 539" 540.17 Laboratory Services&Supplies Praxair Distribution,Inc. 54112 1,952.35 Laboratory Services&Supplies Pramir Distribution,Inc. 54267 251.65 Laboratory Services&Supplies Prime Public Risk Management Assoc. 54268 385.00 Professional Organizations Meeting/rraininglMembership Primary Source Office Fumishings,Inc. 54113 694.99 Minor EquipmenVFumiture&Fixtures Primary Source Office Furnishings,Inc. 54269 520.43 Minor EquipmenVFumiture&Fixtures Primrose Ice Co.,Inc. 54114 131.25 Water&Ice Services nnrzrwmm EXHIBIT Page]of 11 a 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Procare Work Injury Center 54115 1,380.00 Medical Services Projects Partners 54116 14,448.00 Professional Services/femporary Employment Services Prudential Insurance Company of America 54167 47,039.54 Benefits Prudential Overall Supply 823 4,500.42 Uniforms Pryor Seminars/Career Truck 54219 149.00 Professional Organizations MeetingffminingrMembership PSOMAS 54117 8,250.00 Computer Applications&Services Public Safety Management Assoc.(PASMA) 53965 75.00 Professional Organizations Meetingf mininWMembemhip Pump Action 539H 3,474.98 Oil Filters Pump Action 54270 6,788.81 Oil Filters Q Air-Calif.Div.Pump Engineering 54118 163.82 Repair is Maintenance Services and Supplies Quickstart Intelligence 54271 1,116.00 Professional Organizations Meetingf miningrMembership Quinn Company 54119 311.93 Repair&Maintenance Services and/or Supplies R S Means Company,Inc. 53973 443.60 Books and Publications Raymond Handling Solutions,Inc. 54121 185.00 Material Handling Tools&Equipment Red Wing Shces 53967 609.62 Safety,Security,Health Equipment,Supplies,and Services Red Wing Shoes M272 119.82 Safety,Security,Health Equipment,Supplies,and Services Reilly Workplace Investigations 54122 15,301.90 Human Resources Services Reliastar 53968 8,017.06 Voluntary Employee Life&Cancer Insurance Reliastar 54273 4,0(18.53 Voluntary Employee Life&Cancer Insurance Rentacrate,L.L.C. M274 301.09 Facilities,Maintenance,Services&Supplies Reotemp Instrument Corporation 54275 103.85 Repair&Maintenance Services and/or Supplies Restek Corp. 53969 200.00 Laboratory Services&Supplies Restek Corp. 54123 766.12 Laboratory Services&Supplies Rexel Electrical&Datacom Supplies M276 596.48 Electrical0ectronic Equipment,Parts&Repairs Robert P.Ghirelli 54152 185.00 Meetingf raining Expense Reimbursement Roberto's Auto Trim Shop M277 453.60 Autos.Trucks&Marine Equipment,Pans Accessories&Services Rcckvell Engineering&Equipment Co. 54278 5,005.02 Repair&Maintenance Services andror Supplies Roma.Corp. M124 517.43 Repair&Maintenance Services and/or Supplies Rosemount Analytical Inc.-Remit 53970 3,924.55 ElecVical0ectronic Equipment,Parts&Repairs Roto Rooter NOC#11 53971 1,735.08 Repair&Maintenance Services and/or Supplies Rot.Rooter NOC#11 54279 397.96 Repair&Maintenance Services andror Supplies Royal Wholesale Electric M125 4,373.03 Repair&Maintenance Services and/or Supplies Royale Cleaners 53972 62.90 Miscellaneous Services Royale Cleaners 54126 W.80 Miscellaneous Services RPM Electric Motors 824 2,073.99 Repair&Maintenance Services andror Supplies Safely-Kleen 54280 105.45 Repair&Maintenance Services and/or Supplies San Diego/Omnge Fluid System Technologies,Inc. 53974 1,270.93 Repair&Maintenance Services and/or Supplies San Diego/Orange Fluid System Technologies,Inc. M281 246.50 Repair&Maintenance Services and/or Supplies Sancon Engineering,Inc. 54282 20,458.80 Repair&Maintenance Services andror Supplies SARBS-CWEA M161 500.00 Professional Organizations Meetingf rainingrMembership Scale Datacem Lt. 53870 74,937.23 Computers,Sof fore/HardNme&Managed Services Schwing Street 808 14,218.64 Repair is Maintenance Services and/or Supplies SCPLRC Southem California Public Reis.Council) 53975 100.00 Professional Organizations Meetingf mininy/Membership Securitas Security Services USA,Inc. 0871 30,252.00 Safety,Security,Health Equipment,Supplies,and Services SGE,Inc. 542M 2,735.51 Laboratory Services&Supplies Shamrock Supply Co.,Inc. 53976 1,133.11 Repair is Maintenance Services and/or Supplies Shamrock Supply Co.,Inc. 54128 193.07 Repair&Maintenance Services andror Supplies Shamrock Supply Co.,Inc. 54285 2,408.20 Repair&Maintenance Services and/or Supplies Shureluck Sales&Engineering 541N 1,481.62 Repair&Maintenance Services and/or Supplies nnrzrwmm Page 8 of 11 EXHIBIT 013 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Siemens c/o Jensen Instrument Co. 54286 16,793.75 Electrical/Electronic Equipment,Pads&Repairs Siemens Technology 53977 2,328.90 Air Conditioner Automation System Siemens Technology 54287 1,787.46 Air Conditioner Automation System Siemens Water Technologies Corp. 809 1,479.49 Repair&Maintenance Services and/or Supplies Sigma-Aldrich,Inc. 54130 2,223.29 Laboratory Services&Supplies $KC West.Inc. M288 5,358.08 Laboratory Services&Supplies Snap On Industrial 54289 181.89 Tools Snell Infrared 0978 1,669.35 Professional Organizations Meeting/Treining/Membership So.Cal Gas Company 53979 24,040.37 Utilities South Coast Environmental Co. M127 10,391.97 Professional Services-Air Quality Monitoring Southern California Edison 53872 128,772.91 Utlities Southern California Edison 0980 1,632.59 Utilities Southern California Edison 54025 110,282.36 Utilities Southern California Edison M168 86,165.31 Utilities Southern Counties Lubricants 53981 351.69 Fuel and Lubricants Southern Counties Oil Co. M131 3,554.38 UST Diesel Fuel Transfer at Pit.1 Sparkleft-Dallas 53982 1,306.60 Miscellaneous Services SPEX Cianprep,Inc. 53983 302.67 Laboratory Services&Supplies SPEX Camerae,Inc. 54290 58.44 Laboratory Services&Supplies Stahel)Trenchless Consultants,Inc. M291 7,572.60 Construction Stanek Constructors Inc 53882 416,303.84 Construction Staples 53984 5,306.26 Office Supplies Staples 54292 511.13 Once Supplies State Bar of California M132 380.00 Professional Organizations Meeting/Treining/Membership State Board of Equalization 54133 330.20 Governmental Agency Fees&Charges State Water Resources Control Board 54134 190.00 Governmental Agency Fees&Charges Summit Steel 53985 886.59 Repair&Maintenance Services and/or Supplies Summit Steel M135 1,533.60 Repair&Maintenance Services and/or Supplies Sunset Industrial Pads 539H 90.72 Repair&Maintenance Services and/or Supplies Sunset Industrial Pads M293 3,569.71 Repair&Maintenance Services and/or Supplies Synagro West,Inc. 54026 753,206.84 Biosolids Management T&C Industrial Controls,Inc. 54136 1,221.96 Computer Hardware&Software TDI 53873 36,362.50 Professional Servicesllnfermation Technology TekSystems 825 7,682.00 Professional Servicesrrisir ryServices TasWmarica Ontario 810 1,879.00 Laboratory Services&Supplies Testaments Ontario 826 905.00 Laboratory Services&Supplies The Creative Group 54054 1,008.00 Professional Services/Temporary Services The Creative Group 542M 2,688.00 Professional Servicesrrisir ryServices The Orange County Register 53960 3,152.00 Notices&Me The Standard Insurance Company 53987 2,669.09 Disability Insurance The Standard Insurance Company 542M 2,569.09 Disability Insurance The Trade Company M137 5,243.00 Repair&Maintenance Services and/or Supplies Theodore Robins Ford 54295 1,531.26 Autos.Trucks&Marine Equipment,Parts,Accessories&Services Thermo Electron North Amenca,L.L.C. 09H 15,173.00 Laboratory Services&Supplies Thompson Industrial Supply,Inc. 811 1,916.58 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply,Inc. 827 12,517.49 Repair&Maintenance Services and/or Supplies Thompson Industrial Supply,Inc. 838 861.84 Repair&Maintenance Services and/or Supplies Tiger Direct,Inc. K989 1,592.00 Sofbvare Maintenance Agreement Titan Pourer,Inc. 542H 920.68 Repair&Maintenance Services and/or Supplies nM1Wmm EXHIBIT Page 9 of 11 v auI3 Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Tongs Lock&Safe Service&Sales 53990 273.47 Repair&Maintenance Services and/or Supplies Tongs Lack&Safe Sonars&Sales 54297 199.64 Repair&Maintenance Services and/or Supplies Toshiba Business Solutions USA Inc. 53991 164.09 Computers,Software/Hartlware&Managed Services Toshiba Business Solutions USA Inc. 54298 639.93 Computers,Software/Hanonare&Managed Services Total Resource Management,Inc. 54169 88,722.66 Professional Services/Implementation of IBM Mexico Townsend Public Affairs 53992 7,500.00 Professional Services-State Legislative Advocacy Tropical Plaza Nursery,Inc. 54138 260.00 Landscape Maintenance Services Tropical Plam Nursery,Inc. 54299 12,877.50 Landscape Maintenance Services Truck&Auto Supply,Inc. 53993 134.63 Autos,Trucks&Maine Equipment,Pads,Accessories&Services Tule RancNMagan Farms 53874 232,471.58 Biosolids Management Tula RancNMagan Forms 54170 297,583.63 Biosolid.Management TW Telecom Holdings,Inc. 0875 28,726.02 Telecommunications U Line 543M 611.50 Miscellaneous Paris and Supplies Underground Service Alert of So.Calif M139 1,047.00 Professional Services-Dig Alen Notification Service Union Bank of California 54140 912.25 Banking Services Union Bank of California Escrow moil 12,340.55 Construction,Retention Union Bank of California Escrow 54173 38,649.10 Construction,Retention United Parcel Service M995 773.74 Freight Services United Parcel Service 54141 256.82 Freight Services United Parcel Service M301 578.13 Freight Services United States Plastic Corp. 539M 29.48 Miscellaneous Pads and Supplies United States Postal Service 53994 6,000.00 Postage Univar USA 54302 1,158.03 Miscellaneous Supplies Univar USA Inc 829 7,082.34 Chemicals,WaterNdastawater Treatment Univar USA Inc 839 4,674.71 Chemicals,Wat.pWastewater Treatment UPS Ground Freight,Inc. M303 309.94 Freight Services US Peroxide,L L.C. 54027 132,440.07 Chemicals,Wet.oW. toserar Treatment USC 0876 25,871.52 Professional Servicea/Studies USC 53997 8,821.66 Professional ServiceelStudies V&A Consulting Engineers 54304 15,441.91 Professional Services Valin Corporation 812 4,07.04 Repair&Maintenance Services andor Supplies Vapex Products,Inc. 09M 4,481.16 ElectncallElectronic Equipment,Parts&Repairs Vapors Products,Inc. 54305 655.20 ElectncallElectronic Equipment,Parts&Repairs Voiced California M306 639.58 Telecommunications Verde's Plumbing 53999 3,106.33 Plumbing Services&Supplies Veme's Plumbing M142 70.00 Plumbing Services&Supplies Veme's Plumbing 54307 9,802.11 Plumbing Services&Supplies Village Nurseries M143 359.32 Repair is Maintenance Services and/or Supplies Village Nurseries 54308 571.34 Repair&Maintenance Services andor Supplies Vision Internet Providers,Inc mom 2,890.00 Professional ServiciaMeb Design Services VPPPA 543N 525.00 Professional Organizations MeetinglTminingrMembership MR Scientific Products 54001 77.18 Laboratory Services&Supplies MR Scientific Products 54310 3,570.05 Laboratory Services&Supplies W.M.Lyles Co. 53883 41,647.40 Construction W.M.Lyles Co. 54032 755,827.26 Construction Wastewater Technology Toolbars 54311 865.00 Professional Organizations Meetinfiffaurimplivembership Water Environment Federation 54002 456.00 Professional Organizations MeetinglTroiningrMembership Water Environment Federation 54144 1,245.00 Professional Organizations MeetinglTainingrMembership Water Environment Federation 54312 976.00 Professional Organizations MeetinglTminingrMembership nnrztwmm EXHIBIT Page 10 of 11 serape Return to Agenda Report Claims Paid From 1/16/13 to 1/31113 Vendor Warrant No. Amount Description Waters Corporation 54145 885.60 Laboratory Services&Supplies Wexie Sanitary Supply 54146 259.36 Janitor8 Household Service&Supplies Week Laboratories,Inc. 54003 2%.00 Laboratory Services&Supplies Wellness Councils Of America 540M 292.00 Professional Organizations MeetinglTraining/Membership West Coast Safety Supply Co. 54005 142.06 Safety,Security,Health Equipment,Supplies,and Services West Lite Supply Company,Inc. 540M 323.09 ElectricallEleclronic Equipment,Pads&papers West Lite Supply Company,Inc. 54313 555.85 ElectricaVElectronic Equipment,Pads&Repairs Westport Apparatus dba Breaker Supply 54147 62.50 Electncal/Electronic Equipment,Pans&Repairs WetLabs,Inc. 541" 755.00 Laboratory Services&Supplies Winer Corporation 54007 625.93 Repair&Maintenance Services and/or Supplies Woodruff Spradlin&Smart 53877 133,923.00 Professional Services-Legal WRIPAC 54008 150.00 Professional Organizations MeetinglTraining/Membership Xerox Corporation 54149 661.35 Computers,Sofhvre/Hardware&Managed Services yorba Linda Water District 54314 45.31 Utilities Total Accounts Payable-Warrants $ 11 253 106.14 Payroll Disbursements Employee Paychecks W698 - 50741 $ 91 Biweekly Payroll(1/23/13) Employee Paychecks M742 2,390.48 Interim Payroll-Termination Reg.Hours(1/17/13) Employee Paychecks M743 3,088.47 Interim Payroll-Termination Leave Payout(1/17/13) Employee Paychecks 501 - W746 2,749.82 Interim Payroll-Rome&Emergency Payout(1121113) Employee Paychecks 50747 2,878.64 Interim Payroll-Termination Reg.Hours(1/24/13) Employee Paychecks M748 3,538.00 Interim Payroll-Termination Leave Payout(1/24/13)' Employee Paychecks 50834 2,770.36 Interim Payroll-Termination Reg.Hours(1/31/13) Direct Deposit Statements W835 161.59 Interim Payroll-Termination Leave Payout(1/31/13) Direct Deposit Statements 332038-332601 1,409,274.29 Biweekly Payroll(1/23/13) $ 1,525,199.56 �eeeok oumeere 40749,50e33 m be mead in turn period Wire Transfer Payments OCSD Payroll Taxes&Contributions $ 1,115,616.75 Biweekly Payroll(1/02/13) Union Bank of California 2,047,776.76 Sedes 2007A Certificates of PaAcipation Principal and Interest Payment Union Bank of California 12,711,175.62 Series 2007B Certificates of Participation Principal and Interest Payment Union Bank of California 3,151,021.97 Series 20011A Certificates of Participation Interest Payment Union Bank of California 1,812,179.19 Series 20012A Certificates of Participation Interest Payment US Bank 269,365.97 Sedes 200M Refunding Certificates of Participation Interest Payment US Bank 375,774.13 Series 2008B Refunding Certificates of Participation Interest Payment US Bank 8,060,978.06 Series 2009A Refunding Certificates of Participation Principal and Interest Payment US Bank 2,228,950.56 Series 2010A Revenue Obligation BABS Interest Payment US Bank 5,018,287.02 Sores 20100 Revenue Obligation BABS Interest Payment US Bank 1,40,891.67 Series 2012B Revenue Obligation Interest Payment Total Wire Transfer Payments $ 38,242,017.70 Total Claims Paid 1116113-1131113 $ 51,020,323.40 nnrzimrmm EXHIBIT Page 11 of 11veaote Return to Agenda ozivns-MA ORANGE COUNTY SANITATION DISTRICT CURRENT COMMITTEES GWRS JOINT COOPERATIVE STEERING COMMITTEE (7) STEERING COMMITTEE Troy Edgar, Board Chair Troy Edgar John Anderson, Board Vice-Chair Jim Ferryman Tom Beamish, Chair, Operations Committee John Anderson Brad Reese, Chair, Administration Committee John Nielsen, Vice-Chair, Operations Committee (Al)- Brett Murdock John Withers, Vice-Chair, Administration Committee (A2)-Tom Beamish ===Vacancy, At-Large Member-== (A3)-Greg Sebourn ADMINISTRATION COMMITTEE (13) AUDIT AD HOC COMMITTEE (4) Brad Reese, Chair(Villa Park) John Withers, Vice Chair(IRWD) John Anderson, Board Vice-Chair(Yorba David Benavides (Santa Ana) Linda) Steven Choi (Irvine) John Nielsen (Tustin) Tyler Diep (MCSD) Troy Edgar, Board Chair(Los Alamitos) Jim Ferryman (CMSD) John Withers (IRWD) Peter Kim (La Palma) Prakash Narain (Cypress) Janet Nguyen (Board of Supervisors) Joe Shaw(Huntington Beach) Teresa Smith (Orange) Troy Edgar, Board Chair(Los Alamitos) John Anderson, Board Vice Chair(Yorba Linda) OPERATIONS COMMITTEE (14) Tom Beamish, Chair(La Habra) John Nielsen, Vice Chair(Tustin) Keith Curry (Newport Beach) Steve Jones (Garden Grove) Lucille Kring (Anaheim) Michael Levitt (Seal Beach) Brett Murdock (Brea) Steve Nagel (Fountain Valley) Scott Nelson (Placentia) Greg Sebourn, (Fullerton) David Shawver(Stanton) Fred Smith (Buena Park) Troy Edgar, Board Chair(Los Alamitos) John Anderson, Board Vice Chair (Yorba Linda) Board Delegate to Santa Ana River Flood Protection Agency(SARFPA) -Jim Ferryman Board Delegate to Orange County Council of Governments (OCCOG)-Jim Ferryman Board Delegate to National Water Research Institute (NWRI)-Jim Ferryman STEERING COMMITTEE Needog Date TOBd.Or Dir. OV27113 02/27/13 AGENDA REPORT Item Number Item Number 2 6 Orange County Sanitation District FROM: Troy Edgar, Board Chair Originator: Jeff Reed, Director of Human Resources SUBJECT: APPOINTMENT OF JAMES D. HERBERG TO THE POSITION OF GENERAL MANAGER; APPROVAL OF AN AT-WILL EMPLOYMENT AGREEMENT ON BEHALF OF THE BOARD OF DIRECTORS WITH GENERAL MANAGER, JAMES D. HERBERG; AUTHORIZATION OF THE BOARD CHAIR TO EXECUTE THE AT- WILL EMPLOYMENT AGREEMENT; AND AUTHORIZATION OF THE BOARD CHAIR TO PROVIDE NOTICE OF TERMINATION OF EMPLOYMENT TO GENERAL MANAGER JAMES RUTH. BOARD CHAIR'S RECOMMENDATION Recommend that the Board of Directors: A. Adopt Resolution No. OCSD 13-02 appointing James D. Herberg ("Mr. Herberg") to the position of General Manager for the Orange County Sanitation District ("OCSD"); B. Approve the At-Will Employment Agreement, attached hereto, with Mr. Herberg specifying terms and conditions of employment for General Manager services beginning April 1, 2013; C. Authorize the Board Chair to execute the At-Will Employment Agreement, attached hereto; and D. Authorize the Board Chair to provide a notice of termination of employment to General Manager James D. Ruth effective April 1, 2013, consistent with the OCSD General Manager Transition Plan and as required pursuant to Mr. Ruth's At-Will Employment Agreement. SUMMARY Pursuant to the OCSD General Manager Transition Plan, the employment of James D. Ruth ("Mr. Ruth") as the General Manager of OCSD was planned to terminate as of April 1, 2013. Mr. Herberg, who currently serves as one of OCSD's Assistant General Managers, has been recommended for appointment to the General Manager position, and has agreed to serve as General Manager beginning April 1, 2013, pending Board action. A proposed resolution for this appointment and related at-will employment agreement is enclosed. Page 1 of 3 911576.1 PRIOR COMMITTEE/BOARD ACTIONS October 24, 2001 — Board Resolution No. 01-21 approving base salary and benefits package (not to exceed 38% of base salary) plus merit opportunity for the General Manager. April 28, 2004 — Board approval for the Chair to directly negotiate terms and conditions of a contract amendment with the General Manager and requirement to report those results to the Steering Committee. April 25, 2012 — Steering Committee report of the General Manager's Transition Plan with a completion date of April 1, 2013. September 26, 2012 — Steering Committee receipt and filing of the General Manager Transition Plan. Mr. Herberg identified as successor General Manager, effective April 1, 2013, the departure date of OCSD's current General Manager, Mr. Ruth. The report also provided information about the active recruitment of a Director of Engineering. ADDITIONAL INFORMATION OCSD's Beyond 2012 Reorganization Plan, adopted by the Board in mid-2010, recognized the need for a General Manager succession plan. The plan included the appointment of a second Assistant General Manager, which allowed for an additional potential internal candidate for General Manager. Mr. Herberg, Director of Engineering, was selected through the recruitment process as the second Assistant General Manager, effective February 1, 2011. Mr. Herberg agreed to continue to perform Director of Engineering duties while assuming the responsibilities of Assistant General Manager until a replacement could be found for the Director of Engineering position. At the September 2012 Board meeting, it was announced that Mr. Herberg would be the recommended successor General Manager effective April 1, 2013. In the meantime, Mr. Herberg would continue to perform the duties of Assistant General Manager/Director of Engineering. In December 2012, the recruitment for Director of Engineering was concluded. The selected candidate, Nicolas Kanetis ("Mr. Kanetis"), began employment on January 21, 2013, which allowed Mr. Herberg to transition Director of Engineering responsibilities to Mr. Kanetis before assuming the General Manager position on April 1, 2013, pending Board approval. The proposed At-Will Employment Agreement with Mr. Herberg, which is included herein as an attachment, specifies a proposed annual base salary of $215,000, which is within the set salary range for the General Manager classification. This proposed annual base salary is a 13% increase from Mr. Herberg's current salary of $190,590 as Assistant General Manager, and is 10% higher than the next highest paid subordinate's salary. Pursuant to Resolution No. 01-21, adopted in October of 2001, the Board provided a benefit package for the General Manager valued in an amount not to exceed Page 2 of 3 911576.1 38% of the General Manager's base salary. In lieu of selecting from a variety of different benefit options, Mr. Herberg has elected a fixed benefits package, which is 34% of Mr. Herberg's proposed base salary ($215,000). The funds for the compensation and benefit package of the General Manager are derived from the OCSD Operating Budget and have been included in the FY 2012-13 and 2013-14 adopted budgets. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachments may be viewed online at the OCSD website (wwwocsd.coml with the complete agenda package and attachments: • Attachment A: Proposed OCSD Resolution No. 13-02 • Attachment B: Proposed At-Will Employment Agreement • Attachment C: OCSD General Manager Transition Plan Page 3 of 3 911576.1 Return to Agenda Report RESOLUTION NO. 13-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE ORANGE COUNTY SANITATION DISTRICT APPOINTING JAMES D. HERBERG TO THE POSITION OF GENERAL MANAGER FOR THE ORANGE COUNTY SANITATION DISTRICT AND AUTHORIZING THE CHAIR OF THE BOARD OF DIRECTORS TO ENTER INTO AN AT- WILL EMPLOYMENT AGREEMENT EFFECTIVE APRIL 1, 2013 WHEREAS, in mid-2010, the Board of Directors ("Board")of the Orange County Sanitation District("OCSD" or"District")adopted OCSD's Beyond 2012 Reorganization Plan, which recognized the need for a General Manager succession plan and recommended the appointment of a second Assistant General Manager, which would allow for an additional potential internal candidate for General Manager; and WHEREAS, through the Assistant General Manager recruitment process, James D. Herberg ("Mr. Herberg"), Director of Engineering, was selected as a second Assistant General Manager, effective February 1, 2011; and WHEREAS, at the September 2012 Board meeting, Mr. Herberg was announced as the successor General Manager with a proposed effective date of April 1, 2013; and WHEREAS, effective April 1, 2013, Mr. Ruth's employment as OCSD's General Manager will terminate; and WHEREAS, the Board of Directors of the OCSD desires to appoint Mr. Herberg to serve as General Manager beginning April 1, 2013; and WHEREAS, in October 2001, the Board adopted Resolution No. OCSD 01-21 providing benefits for the General Manager with a cap of 38% of base salary consisting of benefit items selected by the General Manager from the benefits otherwise provided to any management employee; and WHEREAS, on February 27, 2013, staff presented a proposed At-Will Employment Agreement by and between Mr. Herberg and the District; and WHEREAS, Mr. Herberg has elected a fixed benefits package instead of selecting from a variety of different benefit options, which is less than 38%of his base salary, as set forth in the At-Will Employment Agreement; and WHEREAS, the funds for the compensation and benefit package of the General Manager are derived from the OCSD Operating Budget and have been included in the FY 2012-13 and 2013-14 adopted budgets. NOW, THEREFORE, in consideration thereof, the Board of Directors of the Orange County Sanitation District, does hereby resolve declare, determine and order as follows: Section 1. James D. Herberg is hereby appointed to the position of General Manager of the Orange County Sanitation District effective April 1, 2013, to serve at the will of the Board. Section 2. The At-Will Employment Agreement between Mr. Herberg and the District, as presented at the February 27, 2013, Board Meeting is hereby approved. 911578.1 Return to Agenda Report Section 3. The Chair of the Board is authorized to execute the approved At-Will Employment Agreement with Mr. Herberg effective April 1, 2013, for General Manager services, consistent with this Resolution, on behalf of the District. PASSED AND ADOPTED at a regular meeting held February 27, 2013. Troy Edgar, Chair ATTEST: Clerk of the Board 911578.1 Return to Agenda Report C�p AT-WILL EMPLOYMENT AGREEMENT James D. Herberg General Manager ORANGE COUNTY SANITATION DISTRICT THIS AT-WILL EMPLOYMENT AGREEMENT ("Agreement") is made and entered into, to be effective the 1st day of April, 2013, by and between: ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "District"; AND JAMES D. HERBERG, sometimes hereinafter referred to as "General Manager". RECITALS WHEREAS, District desires to employ James D. Herberg ("Mr. Herberg"), as General Manager of District, pursuant to the terms and conditions as set forth in this Agreement; and WHEREAS, Mr. Herberg, by virtue of his education, training and experience, is fully qualified to fill the position of General Manager and desires to continue to serve the District as its General Manager, pursuant to the terms and conditions of this Agreement; and WHEREAS, per Resolution No. 13-XX adopted on February 27, 2013, the District's Board of Directors has approved and authorized the Board Chair to execute this "At-Will Employment Agreement"with Mr. Herberg for General Manager services. NOW, THEREFORE, the Parties hereto agree as follows: Section 1: District hereby employs Mr. Herberg to serve as General Manager of the t 911590.1 Return to Agenda Report Orange County Sanitation District, commencing on the effective date hereof, and continuing until termination by either Party, as provided in this Agreement. In that capacity, Mr. Herberg agrees to perform the functions and duties of General Manager, the administrative head of the District, as prescribed by the laws of the State of California, and by the rules, regulations, decisions, and directions of the Board of Directors of District (hereinafter referred to as "Board"). The General Manager's duties may involve expenditures of time in excess of the regularly established workday or in excess of a forty hour work week and may also include time outside normal office hours (including attendance at Board and Committee meetings). General Manager is classified as an exempt employee under the Fair Labor Standards Act ("FLSA") and shall not be entitled to any additional compensation for hours worked in excess of forty in a work week. Section 2: Mr. Herberg shall be employed in an "at-will" capacity serving at the sole pleasure of the Board. Either party to this Agreement may terminate the Agreement at any time for any reason with or without cause, and without hearing, upon 30 days' notice to the other party. Mr. Herberg is advised and acknowledges that he has none of the termination rights of a Regular employee of the District. Except as expressly provided herein, and as a condition of employment, Mr. Herberg knowingly, willingly and voluntarily gives up, waives, and disclaims any and all rights he may have, express or implied, to any notice and/or hearing before or after termination, and/or to any continued employment with the District after termination. As an "at-will" employee, Mr. Herberg understands that he may be subject to termination with or without cause at the sole discretion of the Board, notwithstanding that the other provisions of the District's Personnel Policies and Procedures Manual (hereinafter referred to as "Manual") apply to Mr. Herberg. If employment should be terminated without cause, Mr. Herberg shall be given a thirty (30) day Notice of Termination and severance pay in an amount equal to six (6) months of his then current annual base salary. If the District terminates this Agreement (thereby terminating Mr. Herberg's employment) without cause, the severance pay is considered a rash settlement related to the termination of Mr. Herberg and shall therefore be fully reimbursed to the District by Mr. Herberg if Mr. Herberg is convicted of a crime involving an abuse of his office or position. Abuse of office or position shall have the meaning set forth in Government Code 53243.4, as may be amended, of either (1) an abuse of public authority, including, but not limited to, waste, fraud, and violation of the z 911590.1 Return to Agenda Report law under color of authority or (2) a crime against public justice, including, but, not limited to, a crime described in Title 7 (commencing with Section 92 of Part 1 of the Penal Code). Mr. Herberg shall reimburse such severance pay to the District no later than six months after such conviction. If Mr. Herberg terminates his employment with 30 days' notice, the Board shall have the right to accept his resignation effective the date notice is given. Such decision to accept his resignation earlier shall not be considered a termination without cause and shall not entitle Mr. Herberg to receive the severance pay noted above. Section 3: The term of this Agreement shall commence on the effective date above and continue for an indefinite duration, until terminated by either Party pursuant to Section 2 above, or unless terminated or amended as provided herein. Section 4: As compensation for the services to be performed hereunder, upon the effective date, District agrees to pay General Manager an annual base salary for services rendered of Two Hundred Fifteen Thousand Dollars ($215,000), subject to all applicable deductions and withholdings of any and all sums required by then current state, federal or local law, along with deductions of applicable sums the General Manager is obligated to pay because of participation in plans and programs described in this Agreement, and paid biweekly in accordance with the District's established accounting and payroll practices at the same time and in the same manner as other employees of the District. No increase in salary may exceed the compensation permitted by the applicable salary range for the classification established by duly adopted Resolution of the Board. Section 5: For the period of this Agreement, District shall provide Mr. Herberg with a fixed benefit package that includes the following: • Personal Leave - 200 hours per fiscal year, earned on a biweekly fiscal year basis, which is eligible for annual cash out in accordance with the Manual. • Investment Incentive Salary (IIS) - 5% of base salary applied on a biweekly fiscal year basis. • Deferred Compensation - OCSD-paid annual allocation for 2013 of $5,000 allocated on a biweekly calendar year basis. Mr. Herberg's benefit package shall also include benefits consistent with the Manual for: holiday pay; medical, dental, vision and life insurance; long-term and short-term disability insurance; and employee assistance program. Additionally, Mr. Herberg's benefit package shall 3 911590.1 Return to Agenda Report include executive disability insurance benefits, consistent with those provided to OCSD managers. These benefits shall remain in full force and effect unless and until replaced by an amendment to this Agreement, signed by Mr. Herberg and approved by the Board, which amendment shall include the effective date thereof. Section 6: District's Steering Committee shall meet with General Manager in August of each year during the term of this Agreement to review and evaluate his performance over the prior year. The Steering Committee shall make its recommendation(s) to the Board concerning adjustment to the compensation and/or benefits paid or provided to General Manager, to be effective in July of the year of review. After consideration of the recommendation(s) of the Steering Committee, the Board shall determine and approve the compensation, including benefits, payable to General Manager, which generally becomes effective July of the fiscal year of the review. Failure of the District to review and evaluate the performance of the General Manager pursuant to this section shall not affect the right of the District to terminate the General Manager's employment and shall not be considered a breach of this Agreement. Section 7: Mr. Herberg shall be a Participant Member in the Orange County Employees Retirement System ("OCERS"). District shall pay the required employer's contribution, and 0% of Mr. Herberg's required contribution towards membership in OCERS. The amount of the required employer's contribution will not be included within the maximum limits of the benefits package, as set forth in Section 7 above. Section 8: District shall reimburse General Manager for all expenses paid by him and incurred for non-personal,job-related District business that are reasonably necessary to the General Manager's service to the District. The District agrees to either pay such expenses in advance or to reimburse the expenses, so long as the expenses are incurred and submitted according to the criteria established by District's budget and/or normal expense reimbursement procedures pursuant to applicable policy Resolutions. To be eligible for reimbursement, all expenses must be supported by documentation meeting the District's policies and requirements and must be submitted within time limits established by the District. Such reimbursement shall not be considered a benefit. Section 9: During the period of this Agreement, it is agreed that General Manager shall devote his full-time, skills, labor and attention to said employment. At no time may General a 911590.1 Return to Agenda Report Manager undertake outside activities consisting of consultant work, speaking engagements, writing, lecturing, or other similar professional activities for money or other consideration without prior approval of District's Steering Committee. However, the expenditure of reasonable amounts of time for educational, charitable, or professional activities shall not be deemed a breach of this Agreement if those activities do not conflict or materially interfere with the services required under this Agreement, and shall not require the prior written consent of the Steering Committee. This Agreement shall not be interpreted to prohibit General Manager from making passive personal investments or conducting private business affairs, provided those activities are not deemed to be a conflict of interest by state law nor do they conflict or materially interfere with the services required under this Agreement. Section 10: Because General Manager is an at-will employee, the District is not obligated to pay General Manager pending an investigation into any alleged misconduct by the General Manager. Notwithstanding the foregoing, in the event that the District's Board determines, in its sole discretion, that it is in the best interest of the District for General Manager to be placed on paid administrative leave pending such an investigation, General Manager shall fully reimburse any salary provided for that purpose if the misconduct for which the General Manager was under investigation results in the General Manager being convicted of a crime involving an abuse of his office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such salary to the District no later than six months after such conviction. Section 11: In the event that the District provides funds for the legal criminal defense of General Manager, General Manager shall fully reimburse said funds to the District if the General Manager is convicted of a crime involving an abuse of his/her office or position as defined in Section 2 of this Agreement. General Manager shall reimburse such criminal legal defense fees to the District no later than six months after such conviction. Section 12: The terms and conditions of employment for General Manager, including other employment benefits for the General Manager that are not specifically provided for in this Agreement, shall be governed by the Manual, to the extent that amendments to the Manual made after the effective date of this Agreement are not inconsistent with the provisions of this Agreement. In the event of any such inconsistency or conflict, the provisions of this Agreement 5 911590.1 Return to Agenda Report shall govern. Section 13: This Agreement supersedes any and all other prior agreements, either oral or in writing, and specifically, but not limited to, Mr. Herberg's At Will Employment Agreement for Assistant General Manager dated January 25, 2012, between the Parties hereto with respect to the employment of Mr. Herberg by District, and contains all of the covenants and agreements between the Parties with respect to that employment in any manner whatsoever. Each Party to this Agreement acknowledges that no representation, inducement, promise, or agreement, orally or otherwise, has been made by any Party, or anyone acting on behalf of any Party, which is not embodied herein, and that no other agreement, statement, or promise not contained in this Agreement or Employment shall be valid or binding on either Party. Section 14: Any notices to be given hereunder by either Party to the other shall be in writing and may be transmitted by personal delivery, or by mail, registered or certified, postage prepaid, with return receipt requested. Mailed notices shall be addressed to the Parties at the addresses maintained in the personnel records of District, but each Party may change that address by written notice in accordance with this Section. Notices delivered personally shall be deemed communicated as of the date of actual receipt; mailed notices shall be deemed communicated as of the date of mailing. Section 15: Any modifications of this Agreement will be effective only if set forth in writing and signed by the Parties. Section 16: The failure of either Party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other Party, shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times. Section 17: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way. Section 18: This Agreement shall be governed by and construed in accordance with the laws of the State of California and all applicable ordinances, policies and resolutions. Section 19: General Manager acknowledges that he has had the opportunity and has e 911590.1 Return to Agenda Report conducted an independent review of the financial and legal effects of this Agreement. General Manager acknowledges that he has made an independent judgment upon the financial and legal effects of the Agreement and has not relied upon representation of the District, its elected or appointed officers and officials, agents or employees other than those expressly set forth in this Agreement. General Manager acknowledges that he has been advised to obtain, and has availed himself of, legal advice with respect to the terms and provisions of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this At-Will Employment Agreement on the day and year first above written. "DISTRICT" ORANGE COUNTY SANITATION DISTRICT "GENERAL MANAGER" By. James D. Herberg APPROVED AS TO FORM: "CHAIR, BOARD OF DIRECTORS" BRADLEY R. HOGIN GENERAL COUNSEL By: Bradley R. Hogin Troy Edgar 911590.1 Return to Agenda Report STEERING COMMITTEE Meeting Date I To Bd.of Dir. 04,25,12 AGENDA REPORT Item Number Ham Number s Orange County Sanitation District FROM: Larry R. Crandall, Board Chair SUBJECT: General Manager Transition Plan STEERING COMMITTEE'S RECOMMENDATION Receive and file OCSD General Manager Transition Plan SUMMARY Completing the execution of the organization succession plan has been very important to OCSD and its Board of Directors. One of the most important pieces to this plan was to ensure the long-term organization stability within the key role of the General Manager position. The Steering Committee has developed the General Manager Transition Plan below. We have established the following Milestones to complete the Transition readiness: Apr 30, 2012 Director of Engineering (DOE)— Internal Candidate Review Jul 1, 2012 DOE Internal Candidate—Go/ No Go Oct 1, 2012 Go 4 Move forward with the Internal Candidate and begin 90-day Transition Plan — OR— No Go + Begin 90-day external recruitment Jan 1, 2013 Go + Internal Candidate is in place serving as DOE and 90-day stabilization period begins Mar 1, 2013 Decision on union negotiation consulting assistance finalized and union negotiations begin Apr 1, 2013 General Manager Transition Plan completed In summary, we believe this Transition Plan identifies any constraints that could affect the General Manager transition. Pending litigation should also be evaluated to see if there are any significant technical management dependencies that would have an impact. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION This outlined plan is not an edict, but rather serves as a plan that will require further refinement pending collaborative discussion on other pending issues. Page 1 of 2 Return to Agenda Report CEQA N/A BUDGET/ DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS None Page 2 of 2 STEERING COMMITTEE meeting Date TOBd.of W. OV27113 02/27/13 AGENDA REPORT em Number Item Number 3 Orange County Sanitation District FROM: Nick Kanetis, Director of Engineering Originator: Michael Gold, Public Affairs Manager SUBJECT: 2013 LEGISLATIVE PLATFORM AND GOALS GENERAL MANAGER'S RECOMMENDATION Adopt the 2013 Legislative Platform and Goals. SUMMARY At last month's Steering Committee, staff presented the draft 2013 Legislative Platform and Goals, and the Committee provided direction and suggestions to staff regarding the program's direction this year. Staff modified the Platform based on the January 23 discussion. PRIOR COMMITTEE/BOARD ACTIONS Legislative Platform adopted by the Board of Directors, March, 2012. ADDITIONAL INFORMATION Attached to this report is the 2013 Legislative Platform for your consideration. This document guides staff in taking positions on legislation in Sacramento and Washington, D.C. so we can act quickly, when necessary. All bills being tracked by staff are listed in a matrix that is included in the monthly Legislative Report to the Steering Committee. When a bill is controversial or requires additional attention, staff will report these out to the Steering Committee for information or direction. Follow-up to last month's meeting At the January Steering Committee, Members provided input and suggestions to the goals for the year and directed staff to develop ideas for legislative proposals. As a result, staff modified the goals as follows: • Federal Goals • Actively work with CASA in support of their Federal Legislative program and goals; • Work with Congress and the EPA on the Sunshine on Conflicts Act to ensure passage or implement rule changes; Page 1 of 3 • Work with Congress on legislative and regulatory changes related to the Clean Water Act, including pursuing extended NPDES permit terms; • Seek Federal Funding for projects, including infrastructure funding, ecosystem restoration and alternative energy projects. • State Goals • Support legislative proposals that streamline environmental regulations, reduce Orange County Sanitation District's (OCSD) costs, and support policy directions of the Steering Committee, including taking an active role in CEQA reform; • Aggressively protect local property taxes through ongoing meetings and outreach to legislative staff locally and in Sacramento; • Protect OCSD's interests in reducing pension costs as the State Legislature considers clean-up legislation to the Public Employee Pension Act of 2012; • Seek state funding through grants and report progress to the Steering Committee. The modified goals reflect a more active legislative program, including regular meetings with legislative staff locally and in Sacramento, as well as taking a prominent role in CEQA and pension reform. In addition to these goals staff will: • Have regular meetings and conference calls with legislative advocates to discuss pending issues and priorities (through the end of the current contract term); • Receive monthly written reports from advocates (through the end of the current contract term); • Schedule regular meetings with legislative staff to brief them on OCSD's projects and priorities; • As directed, coordinate trips to Sacramento and Washington, D.C. for Board Members to meet with legislators. Also following the meeting, staff met (or will meet) with the Managers' Team and the Executive Management Team to get their ideas for policy changes that would benefit OCSD. Staff will report these ideas in March. Staff is requesting adoption of the 2013 Legislative Platform. Page 2 of 3 2012 Accomplishments Last year, staff met with all the members of the Orange County State delegation to discuss OCSD's property taxes and how important they are to our operations. We effectively communicated this importance and protected OCSD's property taxes through the budget process. We also discussed pension reform with legislators and let them know how we were one of the first agencies to implement a two-tier pension system across the board and how OCSD has been a leader in trimming costs. OCSD was also involved in a bill related to bio-cremation and worked with CASA and others to provide valuable information that allowed the bill to move forward. The bill, however, died in the Senate. We were also actively involved in a bill dealing with communicating to the regional water boards. In exchange for dropping the bill, the State Water Resources Control Board changed their own rules to allow for more open communication with Board members. At the Federal level, we worked with CASA and Congressman Miller to advance the Sunshine on Conflicts Act, to more effectively deal with appointments to regional water boards. This bill was the result of meetings in DC attended by the Chair and Vice Chair. We also put pressure on EPA to resolve this issue through the rule-making process. This bill has returned this year with Congressman Miller as its author. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.com) with the complete agenda package: 2013 Legislative Platform (10 pages) MG:JC:jb:gc Page 3 of 3 ReportReturn to Agenda W W 1 , Orange County Sanitation District 2013 Legislative We're here for you. Platform Orange County Sanitation District Return to Agenda Report 2013 Legislative Platform Legislative Affairs Team OCSD Staff Michael Gold Ph: (714)593-7529 mgold@ocsd.com Public Affairs Manager Cell: (714)552-3801 Federal Lobbying Team (current contract through June 2013) Eric Sapirstein (202)466-3755 esap@ ENS Resources ensresources.com Sacramento Lobbying Team (current contract through June 2013) Townsend Public Affairs Christopher Townsend (949)399-9050 ctownsend@ TownsendPA.com Heather Stratman (949)399-9050 hstratman@ TownsendPA.com 1 Originally Adopted December,2005 January 2013 Return to Agenda Report Orange County Sanitation District 2013 Legislative Platform Introduction The Orange County Sanitation District(OCSD) recognizes the need for an active State and Federal legislative advocacy program to ensure the interests of the ratepayer and Board of Directors are protected.Towards that end,the legislative affairs team monitors activities in Sacramento and Washington,D.C. and takes appropriate action in support or opposition of legislative initiatives. Each year,the Board of Directors adopts a Legislative Platform,which is a summary of goals, key issues and OCSD's policy position.The following legislative policies have been developed by OCSD staff and legislative advocates in consideration of OCSD service area cities'and policy needs.These Board- approved policies serve as OCSD's official positions of support or opposition on issues of importance to the agency.The Legislative Platform is a dynamic document,adopted annually and changing to the needs of the Board. The legislative affairs team, in conjunction with the Board, may take appropriate action consistent with the Legislative Platform,including, but not limited to,drafting letters, lobbying legislators and staff and crafting bills. Procedure for Taking Positions on Bills 1. Staff will track bills of greatest interest to the District,particularly those that fall within the goals and objectives identified by the Board of Directors.Staff will monitor bills being watched by similar agencies in Orange County(OCWD, MWDOC,etc.)as well as State Agencies such as California Association of Sanitation Agencies(CASA),the California Special Districts Association (CSDA)and the Association of California Water Agencies(ACWA). 2. For those bills that are being tracked where there is clear policy direction stated in the Board- adopted Legislative Platform or adopted goals,staff can send letters and give direction to the lobbyists(while under contract)to advocate that position. 3. Where a particular issue is not urgent,all legislative letters will be hand-signed by the Chair or Vice-Chair. If a matter is urgent,staff may use the signature stamp,so long as a clear policy direction exists. 4. A summary of bills being tracked will be presented to the Steering Committee monthly. 5. When a bill does not fall within the scope of the Legislative Platform or is a politically controversial issue,staff will seek direction from the Steering Committee. 6. If a bill does not fall within the scope of the Legislative Platform, but the California Association of Sanitary Agencies(CASA),the California Special Districts Association (CSDA)or the National Association of Clean Water Agencies(NACWA) has an adopted position,staff may follow this position but must inform the Steering Committee of such action at the next regularly scheduled meeting. 2 Originally Adopted December,2005 January 2013 Orange County Sanitation District Return to Agenda Report 2013 Legislative Platform Legislative Goals for 2013 • Federal Goals o Actively work with CASA in support of their Federal Legislative program and goals. o Work with Congress and the EPA on the Sunshine on Conflicts Act to ensure passage or implement rule changes. o Work with Congress on legislative and regulatory changes related to the Clean Water Act, including pursuing extended NPDES permit terms. o Seek Federal Funding for projects,including infrastructure funding,ecosystem restoration and alternative energy projects. • State Goals o Support legislative proposals that streamline environmental regulations,reduce OCSD's costs and support policy directions of the Steering Committee, including taking an active role in CEQA reform. o Aggressively protect local property taxes through ongoing meetings and outreach to legislative staff locally and in Sacramento. o Protect OCSD's interests in reducing pension costs as Sacramento considers clean-up legislation to the Public Employee Pension Act of 2012. o Seek state funding through grants and report progress to the Steering Committee. Federal and State Legislative Policies 1. Air Quality:OCSD is committed to complying with federal,state,and local air quality laws and rules.OCSD is further committed to establishing an odor policy to assure that the district is a good neighbor to the surrounding communities. a. Support air quality legislation that emphasizes the use of advance technologies and applicable market incentives, and incentives for the use of alternative fuels and the development of the infrastructure for alternative fuel vehicles. b. Support measures that maintain and enhance local decision-making authority,where appropriate, in the development and implementation of air quality attainment strategies. c. Support legislation to ensure greater consistency between the California and Federal Clean Air Acts; including the need to demonstrate cost-effective public health or environmental benefit if California elects to exceed federal standards. d. Support strategies that clearly demonstrate and provide for the most cost-effective means for meeting air quality goals. e. Support,in concept, legislation that would utilize incentives and pricing strategies as a preferred alternative to traditional command and control regulations for meeting emission reduction objectives for all sources. f. Oppose actions that preclude implementation of the Air Quality Management Plan (AQMP)to the extent that such actions could subject the basin to sanction or conformity penalties. 3 Originally Adopted December,2005 January 2013 Orange County Sanitation District Return to Agenda Report 2013 Legislative Platform 2. eiosolids:OCSD strives to beneficially use biosolids through multiple management options performed at reasonable costs that are protective of public health and the environment. a. Support legislation that supports the use of biosolids as on non-food production agricultural lands. b. Support policies that encourage biosolids product use by horticulture and retail consumers. c. Oppose legislation that bans the use of biosolids for land application in any region, county,or state. d. Support science-based legislation that establishes a state-wide regulatory system for biosolids management. 3. Grant Funding:OCSD is committed to offsetting its research,special projects and wastewater infrastructure project and construction costs by obtaining funding through grants and cooperative agreements. a. Support appropriations legislation,bonds,programs,and projects that provide funding for infrastructure construction and rehabilitation,special studies and research or projects relating to security,environmental education,water quality,wastewater processing,urban runoff,water conservation,and water recycling. b. Support projects that provide for public benefit,over projects that are primarily intended for private benefit or gain. c. Oppose proposals placing further requirements on grant recipients that return low value for high administrative costs. 4. Labor Relations:OCSD is committed to the exercise of and provision of orderly procedures for the administration of employer employee relations,including,but not limited to, meeting and conferring in good faith with recognized employee organizations regarding the wages, hours of work, and other terms and conditions of employment. a. Support measures to reform current workers compensation formulas to rely on higher thresholds for compensation or proportionate exposure formula. b. Support health insurance reform that does not create additional financial burdens on special districts. c. Support measures to ease applicability of the Fair Labor Standards Act(FLSA)on public agencies. d. Oppose any measure imposing compulsory and binding arbitration with respect to public employees. e. Oppose any measure that imposes upon local government mandated employee benefits that are more properly decided at the local bargaining table. 4 Originally Adopted December,2005 January 2013 Orange County Sanitation District Return to Agenda Report 2013 Legislative Platform f. Oppose efforts reducing local control over public employee disputes and imposing regulations on an outside agency. g. Oppose any measure granting public employees the right to strike. h. Oppose a new mandatory Social Security tax for public employers and public employees. 5. Planning:OCSD ensures the long-range planning of capital improvement programs in order to deliver the highest quality facilities. a. Support reform of existing state, regional,and local planning processes only if directly linked to reforms in the current revenue and tax structure of state and local governments. b. Support measures that provide new revenues for growth management and the public facilities necessary to support expected growth. c. Support proposals encouraging regional,sub-regional or countywide cooperation in planning urban development strategies,especially those that provide funding for effective implementation of agreed upon goals. d. Oppose legislation consolidating special districts that fail to address the concerns of cities affected by the proposed consolidation. e. Oppose measures that prevent or restrict the ability of cities or special districts to participate in the Southern California Association of Governments'(SLAG)sub-regional process. 6. Public Health: Protection of public health is OCSD's core mission. OCSD will work cooperatively with county and state health officers to assure local health protection. a. Support hazard mitigation,emergency response,planning and recovery through direct legislation, policy directives and funding toward floodplain security within the Santa Ana River watershed. b. Support(generally) measures that provide for improved public health through regulation. c. Support the protection of public health through the construction and implementation of advanced wastewater treatment technology. 7. Public Works:OCSD is committed to the achievement of effective and efficient projects that provide wastewater treatment services that benefit its ratepayers. a. Support measures that provide funding and support to publicly owned treatment works and sewerage collection systems. b. Support legislation that allows public agencies to procure goods and services in manners similar to private industry,thereby reducing overall costs of delivery. c. Support legislation that improves the Utility Underground Service Alert Program in order to improve coordination, identification, minimize damage, minimize environmental risks 5 Originally Adopted December,2005 January 2013 Return to Agenda Report Orange County Sanitation District 2013 Legislative Platform and minimize cost exposure to publicly owned facilities when contractors are performing sub-surface work. d. Support a comprehensive response to the State's electricity and natural gas shortages that provide a stable energy supply, respects the ability of municipalities to provide power, recognizes that infrastructure(i.e.emergency and standby generators) exists that could be employed temporarily during weak periods with minimal air quality impact and protects ratepayers(including cities and special districts)against dramatic rate increases and statewide power outages. e. Support legislation that allows OCSD to utilize the Best Value Design/Build option for the construction of public works projects. B. Revenue and Taxation:Track pending legislation to ensure OCSD remains in compliance with the government code as it pertains to wastewater system user fees and property tax revenues and the investment of public funds. a. Support measures leading to a greater financial independence from the state and would result in greater stability and predictability in local government budgeting. b. Oppose measures that impose mandated costs for which there is no guarantee of local reimbursement or offsetting benefits. c. Oppose legislation that shifts tax revenues away from local governments without the adequate provision of a constitutionally guaranteed backfill to offset the lost revenues of those local governments. d. Oppose measures that allow state retention of existing local revenue sources, including the special district share of property tax,sales tax,vehicle license fees and rate payer fees. e. Oppose the use of revenues traditionally used to fund the delivery of municipal services to fund programs for which the state is responsible,particularly the courts, health, and welfare programs. 9. Special Districts:OCSD supports the maintenance of special districts to provide specific services, in response citizen's demands, in a cost effective manner. a. Support outreach to local, regional,and state elected officials to foster a greater understanding regarding the critical relationship between adequate reserves and the successful short-and-long-term operation of water and wastewater agencies. b. Support the work of the Association of California Water Agencies(ACWA), California Association of Sanitation Agencies(CASA),and California Special Districts Association (CSDA) in any future discussions or negotiations pertaining to the legislative and budget issues relative to preserving control of members'reserves. c. Oppose further state regulations that adversely impact special district financing and operations. 6 Originally Adopted December,2005 January 2013 Orange County Sanitation District Return to Agenda Report 2013 Legislative Platform d. Oppose measures that create or grant powers to sub-regional or regional bodies that would result in an infringement on clearly local concerns. e. Oppose any administrative or legislative efforts to access or transfer any reserve funds held by water and wastewater districts. f. Oppose the imposition of unfunded, mandated programs on local governments. g. Oppose efforts that diminish OCSD's ability to govern efficiently and effectively, including expanding the size of the Board of Directors. 10. Water Quality and Supply:OCSD is committed to participating collaboratively in the protection of regional water resources for the benefit of the people we serve. a. Support(generally) measures to increase water supply and improve water quality in the region. b. Support measures that would increase funding for water reuse technologies, including support for the Groundwater Replenishment System project by the Orange County Water District and OCSD to create new water supplies through recycling. c. Support U.S.Army Corps of Engineers projects for Orange County regarding watershed and water quality protection and sand replenishment. d. Support measures that promote and provide for the use of reclaimed water. e. Support"watershed-based" solutions, including cost-shared studies with the US Army Corps of Engineers of water quality impairments that reflect state-of-the-art science. f. Support policy development,funding, and research for addressing urban runoff and beach closures, including funding for studies that identify the sources of bacterial,viral and other contaminants and human pathogens. g. Support measures to evaluate water quality standards,as needed,to ensure the objectives are appropriately protecting the designated use. h. Support measures to develop a state-wide consistent policy for total maximum daily load(TMDL) listing and delisting. i. Support State General Fund subventions and Bond revenue to special districts for local and regional efforts that educate the public on urban runoff,which provide for long- term capital improvements(like storm drain diversions and filters),and encourage municipalities to implement Urban Runoff Best Management Practices at the local level. j. Support legislation that would retain any Regional Board fines levied against a permit violator within the Region of the fine. k. Support legislation that provides"amnesty"from administrative civil liability(ACL)fines from Regional Boards for agencies participating in comprehensive watershed studies that will,when complete,address the problem that resulted in the ACL fine. I. Support efforts,including legislation,clarifying that Regional Water Quality Control Board rules that require spending funds are unfunded mandates. 7 Originally Adopted December,2005 January 2013 Return to Agenda Report Orange County Sanitation District 2013 Legislative Platform m. Support measures addressing non-point source pollution in order to protect our ocean water quality and provide funding to mitigate its effects. n. Support measures for alternative energy sources. o. Support efforts to reduce the toxic and non-reusable waste load. p. Support legislation and regulations that promote improved water use efficiency in construction of water efficient buildings and communities. q. Support legislation that promotes improved water use efficiency through state and federal assistance in evaluating and implementing new programs and technologies and increasing public awareness of water use efficiency. r. Support legislation that provides for groundwater management on a local level,with respect to coordination of programs, extraction and production rights, long-term protection and groundwater quality protection. s. Support legislation that provides for the development of the watershed approach, including watershed management plans and watershed based permitting. t. Oppose proposed environmental constraints on government agencies that would result in economic damage to the region while providing only minimal protections. u. Oppose efforts to make all NPDES permits the same.Requirements of other permits may be too onerous or not applicable. OCSD's permit should be tailored to the Orange County region and watershed. v. Oppose the imposition of statewide/nationwide fees for environmental cleanup that is privately caused or regional in nature (e.g., when the nexus between those responsible for environmental abuse and those required to pay for cleanup or mitigation is absent). w. Support measures supporting urban runoff studies and urban runoff reduction. x. Support Coastal Water Quality efforts to ensure that clean beach projects remain a top priority for the state,whether through negotiations on upcoming resources bonds, in setting of legislative priorities, implementation of funding programs,and in any other relevant process. 8 Originally Adopted December,2005 January 2013 Return to Agenda Report M1v s� i iF � o •o i F H • ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, California 92708-7018 714.962.2411 www.ocsewers.com 1/13 BOARD OF DIRECTORS Meeting Date TUBd.el Dir. 02/06/13 02127/13 AGENDA REPORT ItemNumbar IemNumber 4 s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering CIP Project Manager: Eros Yong SUBJECT: Trunk Line Odor Control Improvements, Project No. P1-123 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Carollo Engineers, Inc. to provide engineering design services for Trunk Line Odor Control Improvements, Project No. P1-123, for an amount not to exceed $856,986; and, B. Approve a contingency of$85,699 (10%). SUMMARY The main goals of this project are twofold: (1) replace existing Scrubbers 9 and 10 at the Plant No. 1 Headworks facility with two new bio-trickling filters to replace aging equipment, and connect additional facilities to the foul air system; and (2) eliminate odors upstream of the three siphons along the Baker-Gisler Interceptor and Santa Ana Trunk sewers by implementing air jumper improvements to reduce condensate and water infiltration. The proposed Professional Design Services Agreement (PDSA) includes the preparation of a Preliminary Design Report, Final Design which includes the preparation of construction documents (plans and specifications), and bid support services. The Orange County Sanitation District (Sanitation District) advertised a Request for Proposal (RFP) and four proposals were received. Based on the overall qualifications and expertise, staff recommends awarding a PDSA to Carollo Engineers, Inc. for an amount not to exceed $856,986. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION Project Scope of Work: This project will provide an engineered solution to replace Scrubbers 9 and 10. Scrubbers 9 and 10 will be treating additional foul air from Steve Anderson Lift Station (SALS) and Waste Hauler, thus almost doubling the amount of foul air currently being Page 1 d4 treated. Since Scrubbers 9 and 10 are used as roughing scrubbers, and their exhaust is further treated by chemical Scrubbers 1-4, the foul air treated by Scrubbers 1-4 will also be increased. The Sanitation District has a level of service goal of 14 dilutions to threshold (D/T) at the Plant No. 1 boundary. To meet this level of service goal, chemical Scrubbers 1-4 must achieve 300 D/T. This project will evaluate current available biotower technologies to ensure that Scrubbers 9 and 10 will provide sufficient treatment of the trunk line foul air such that 300 D/T can be achieved at the outlets of Scrubbers 1-4. This project will also address odor problems along the Baker/Gisler Interceptor and Santa Ana Trunk sewer inverted siphons. The air jumpers intended to convey the foul air to Plant No. 1 for collection and treatment have been filled with water due to infiltration and condensation. The foul air becomes trapped on the upstream side of the channels and escapes from manholes causing odor problems in surrounding communities. As part of the Scope of Work for this project, the Consultant will develop and implement an alternative to eliminate these odor problems. One possible alternative is to repair and/or rehabilitate the three existing air jumpers, including repairing the cured-in place pipe (CIPP) lining in one of the three jumpers, rehabilitating the other two air jumpers, rehabilitating the service manholes, and replacing the sump pumps and foul air fans. Another possible alternative is to provide local passive or forced-air odor control systems near the air jumpers. Request for Proposal: The evaluation and selection process is based on procedures pursuant to the California Government Code requiring the Sanitation District to select "the best qualified firm" for architectural and engineering services and to negotiate a "fair and reasonable" fee with that firm. An RFP which outlined Consultant's Scope of Work and criteria required for this project was advertised on October 16 and October 23, 2012 in the Orange County Register. Furthermore, an email notification was sent to all engineering consultants registered in the categories of Architecture & Engineering; Design; and Engineering — General, in the Sanitation District vendor database. As a result, four proposals were received on November 16, 2012. A Staff Evaluation Committee consisting of five representatives from Engineering, Odor and Corrosion Control, and Operations and Maintenance (0&M) Departments reviewed and ranked each of the proposals in accordance with the evaluation process set forth in the Sanitation District Resolution No. OCSD 07-04, Section 5.07. A representative from O&M Process Support Department participated as a technical advisor on odor control subject and was a non-voting member. A representative from the Contracts Administration Division participated in the evaluation process as a non-voting member. The proposals were evaluated according to the following six criteria: (1) understanding of the Scope of Work; (2) technical approach; (3) management approach; (4) staff qualifications; (5)firm experiences; and (6) schedule. After reviewing and scoring the proposals, the four Consultant firms were ranked according to the score achieved. The Evaluation Committee interviewed the top three firms: Carollo Engineers, Inc.; CH2MHill; and Dudek, Inc. to meet the proposed key Page 2 of 4 team members and further evaluate the firms' proposals. Pursuant to the results of the interview, the Evaluation Committee selected Carollo Engineers, Inc. as the top-ranked firm as shown in Table 1. TABLE PROPOSAL EVALUATION* Consultant Carollo CH2M Hill Dudek Evaluator Reviewer A 1 3 2 Reviewer B 2 1 3 Reviewer C 1 2 3 Reviewer D 1 2 3 Reviewer E 1 2 3 Average Ranking 1.2 2.0 2.8 Overall Ranking 1 2 3 Proposal Fee $1,096,485 $696,501 $1,438,639 Negotiated Fee $856,986 ---- --- Pro osal Based on scores after interview All proposals were accompanied by a sealed fee proposal estimate. The fee proposal estimates were not opened until the proposals were evaluated and a top-ranked firm was selected in accordance with Sanitation District Resolution No. OCSD 07-04, Section 5.07. Staff conducted negotiations with Carollo Engineers, Inc., to clarify the requirements of the Scope of Work and to establish the final negotiated fee. During the negotiation meeting, the project Scope of Work, assumptions, and the design process were discussed and clarified as required for the completion of the Scope of Work for the project. Elements reviewed include drawing list, project schedule, number of meetings/workshops, total labor hours, and labor-hour distribution by task as related to the work items, subconsultant scope of work and fees, and profit calculations. These elements were compared to the budgeted amounts, RFP requirements, industry standards, and Sanitation District historical data and Guidelines. As a result of these meetings, the proposal fee was decreased to $856,986. Carollo Engineers, Inc. was selected as the top-ranked firm due to their strong understanding of project issues, such as the importance of meeting the Sanitation District's level of service goals for odors, and height and space constraints for Scrubbers 9 and 10. Their proposal included technical approaches to address these goals and challenges such as the use of low-profile rectangular scrubbers for easier and safer O&M access, and using construction sequencing to eliminate temporary odor control system during construction hence decreasing construction cost. Finally, their proposed team consists of individuals with experiences in both project elements, including two odor control experts and a collections system task leader with extensive experience in infrastructure modeling, Page 3 of 4 design, and construction work. Staff believes that using the approach as proposed by Carollo Engineers, Inc. will reduce construction cost, potential change orders, delays, and community impacts during construction. Based on the above, staff determined the final cost proposal to be fair and reasonable for the Scope of Work and recommends awarding the Professional Design Services Agreement to Carollo Engineers, Inc. for an amount not to exceed $856,986. CECIA Notice of Exemption was filed on August 31, 2012. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This complies with the authority levels in the Sanitation District's Delegation of Authority. This item has been budgeted (FY 2012-13, Section 8, Page 80) and the project budget is sufficient for the recommended action. Date of ADDroval Contract Amount Contlnoencv 02/27/13 $856,986 $85,699 (10%) ATTACHMENT The following attachment(s) may be viewed on-line at the OCSD website (MD .ocsd.com) with the complete agenda package: Professional Design Services Agreement (17 pages) JH:EY:dm:gc Page 4 d4 Return to Agenda Report PROFESSIONAL DESIGN SERVICES AGREEMENT THIS AGREEMENT, is made and entered into to be effective the 27�e day of February, 2013 by and between the ORANGE COUNTY SANITATION DISTRICT, hereinafter referred to as "SANITATION DISTRICT", and CARROLLO ENGINEERS, INC., for purposes of this Agreement hereinafter referred to as "CONSULTANT'. WITNESSETH: WHEREAS, the SANITATION DISTRICT desires to engage a CONSULTANT for Trunk Line Odor Control Improvements; Project No. P1-123, and to provide Design services for a portion of the headworks odor treatment facilities requiring demolition, rehabilitation and replacement and, WHEREAS, CONSULTANT is qualified to provide the necessary services in connection with these requirements and has agreed to provide the necessary professional services; and, WHEREAS, the SANITATION DISTRICT has adopted procedures for the selection of professional services and has proceeded in accordance with said procedures to select a CONSULTANT to perform this work; and, WHEREAS, at its regular meeting on February 27, 2013 the Board of Directors, by Minute Order, accepted the recommendation of the Operations Committee to approve this Agreement between the SANITATION DISTRICT and CONSULTANT. NOW, THEREFORE, in consideration of the promises and mutual benefits, which will result to the parties in carrying out the terms of this Agreement, it is mutually agreed as follows: 1. SCOPE OF WORK. CONSULTANT agrees to furnish necessary professional and technical services to accomplish those project elements outlined in the Scope of Work attached hereto as Attachment"A", and by this reference made a part of this Agreement. A. The CONSULTANT shall be responsible for the professional quality, technical accuracy, completeness, and coordination of all design, drawings, specifications, and other services furnished by the CONSULTANT under this Agreement, including the work performed by its Subconsultants. Where approval by the SANITATION DISTRICT is indicated, it is understood to be conceptual approval only and does not relieve the CONSULTANT of responsibility for complying with all laws, codes, industry standards and liability for damages caused by errors, omissions, noncompliance with industry standards, and/or negligence on the part of the CONSULTANT or its Subconsultants. B. CONSULTANT is responsible for the quality of work prepared under this Agreement and shall ensure that all work is performed to the standards of best engineering practice for clarity, uniformity, and completeness. CONSULTANT shall respond to all comments, suggestions, and recommendations on the SANITATION DISTRICT's review comment sheets (i.e. DS1, DS2 and DS3). All comments shall be incorporated into the design prior to the next submittal deadline or addressed, in writing, as to why the comment has not been incorporated. CONSULTANT shall ensure that each submittal is 100% accurate for the level of work submitted (i.e. correct references, terms, capitalization or equal status, spelling, punctuation, etc.) PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 1 of 17 Return to Agenda Report C. SANITATION DISTRICT shall furnish the CONSULTANT available studies, reports, and other data pertinent to CONSULTANT's services; obtain or authorize CONSULTANT to obtain or provide additional reports and data as required; furnish to CONSULTANT services of others required for the performance of CONSULTANT's services hereunder, and CONSULTANT shall be entitled to use and rely upon all such information and services provided by the SANITATION DISTRICT or others, unless noted otherwise elsewhere in the Agreement or in the Scope of Work, in performing CONSULTANT's services under this Agreement. D. SANITATION DISTRICT shall arrange for access to and make all provisions for CONSULTANT to enter upon public and private property as required for CONSULTANT to perform services hereunder. E. 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. F. All CAD drawings, figures, and other work shall be produced by CONSULTANTS and Subconsultants using the SANITATION DISTRICT CAD Manual. Conversion of CAD work from any other non-standard CAD format to the SANITATION DISTRICT format shall not be acceptable in lieu of this requirement. Electronic files shall conform to the SANITATION DISTRICT specifications. Any changes to these specifications by the CONSULTANT are subject to review and approval of the SANITATION DISTRICT. Electronic files shall be subject to an acceptance period of fifteen (15) days during which the SANITATION DISTRICT shall perform appropriate reviews and including CAD Manual compliance. CONSULTANT shall correct any discrepancies or errors detected and reported within the acceptance period at no additional cost to the SANITATION DISTRICT. CONSULTANT's instruments of services hereunder are the printed hard copy drawings and specifications issued for the Project, whereas electronic media, including CADD files, are tools for their preparation. As a convenience to the SANITATION DISTRICT, the CONSULTANT shall furnish to the SANITATION DISTRICT both printed hard copies and electronic media. In the event of a conflict in their content, the printed hard copies shall take precedence over the electronic media. Because data stored in electronic media form can be altered, inadvertently, it is agreed that the SANITATION DISTRICT shall hold CONSULTANT harmless from liability arising out of changes or modifications to CONSULTANTN's data in electronic media form in the SANITATION DISTRICT's possession or released to others by the SANITATION DISTRICT. PDSA PROJECT NO. PI.123 Revised 11/17/10 Page 2 of 17 Return to Agenda Report G. The CONSULTANT shall ensure that all plans and specifications prepared, or recommended under this Agreement allow for competitive bidding. The CONSULTANT shall design such plans or specifications so that procurement of services, labor or materials are not available from only one source, and shall not design plans and specifications around a single or specific product, piece of major equipment or machinery, a specific patented design or a proprietary process, unless required by principles of sound engineering practice and supported by a written justification that has been approved in writing by the SANITATION DISTRICT. The CONSULTANT shall submit this written justification to the SANITATION DISTRICT prior to beginning work on such plans and specifications. Whenever the CONSULTANT recommends a specific product or equipment for competitive procurement, such recommendation shall include at least two brand names of products that are capable of meeting the functional requirements applicable to the project. H. The CONSULTANT has not control over the cost of labor, materials, equipment or services furnished by others, or over the construction contractor's methods of determining prices, or other competitive bidding or market conditions, practices or bidding strategies. CONSUTANT shall use best engineering practices, along with CONSULTANT's experience and judgment, utilizing current local costs of labor, materials, equipment or services. CONSULTANT cannot and does not guarantee that proposals, bids or actual Project construction costs will not vary from cost estimated prepared by CONSULTANT. I. All professional services performed by the CONSULTANT, including but not limited to all drafts, data, correspondence, proposals, reports, and estimates compiled or composed by the CONSULTANT, pursuant to this Agreement, are for the sole use of the SANITATION DISTRICT, its agents and employees. Neither the documents nor their contents shall be released to any third party without the prior written consent of the SANITATION DISTRICT. This provision does not apply to information that(a)was publicly known, or otherwise known to the CONSULTANT, at the time that it was disclosed to the CONSULTANT by the SANITATION DISTRICT, (b) subsequently becomes publicly known to the CONSULTANT other than through disclosure by the SANITATION DISTRICT. Except for Subconsultants covered by Section 2 (a) neither the documents nor their contents shall be released to any third party without the prior written consent of 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 Hundred Fifty Six Thousand Nine Hundred Eighty Six Dollars ($856,986). 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 herein, broken down as follows: PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 3 of 17 Return to Agenda Report DESIGN SERVICES INCLUDING: CONSULTANT: CARDLLO ENGINEERS, INC Raw Labor $203,831 Fringe Rate 72.08 (%x Raw Labor) $ 146 922922 Burdened labor $350,753 (Raw Labor+Fringe Rate) Overhead 93 (%x Burden Labor) $326200 Subtotal $676,953 (Burden Labor+Overhead) Profit 8.60 % $58,218 (%x Subtotal) Total Direct Costs, not to exceed $ 12594 TOTAL-CONSULTANT Consulting Services, not to exceed $747 765765 Subconsultants under$100,000: Brady $ 10,908 MDS $ 5,500 Jamison Engineering $26,532 Converse Consulting $20,002 Webster Environmental $46y79 TOTAL-Subconsultants under$100,000 $ 109,221 GRAND TOTAL for Design Services, not to exceed $$56 986 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 Subconsultant services above. 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 attached schedule. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of Subconsultant fees and charges, in an amount not to exceed One Hundred Nine Thousand Two Hundred Twenty One Dollars ($109,221). PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 4 of 17 Return to Agenda Report 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. B. Labor. As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay to CONSULTANT a sum equal to the burdened salaries (salaries plus benefits) actually paid by CONSULTANT charged on an hourly-rate basis to this project and paid to the personnel of CONSULTANT. Upon request of the SANITATION DISTRICT, CONSULTANT shall provide the SANITATION DISTRICT with certified payroll records of all employees' work that is charged to this project. C. 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 Section 5, Payment, of this Agreement. CONSULTANT shall warrant and certify the accuracy of these costs and understand that submitted costs are subject to Section 12 Audit Provisions. D. Overhead. As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall compensate CONSULTANT for overhead at a rate equal to 93 % of burdened labor paid by CONSULTANT pursuant to Compensation Section hereof. E. Profit. As a portion of the total compensation to be paid to CONSULTANT, the SANITATION DISTRICT shall pay a profit of Fifty Eight Thousand Two Hundred Eighteen Dollars ($58,218)for all services rendered by CONSULTANT for this project. F. Subconsultants. For any subconsultant whose fees are greater than or equal to $100,000, CONSULTANT shall pay to subconsultant total compensation in accordance with Section 2. For any subconsultant whose fees are less than $100,000, CONSULTANT may pay to subconsultant, total compensation on an hourly-rate basis per attached Schedule. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of subconsultant fees and charges in an amount not to exceed One Hundred Nine Thousand Two Hundred Twenty One Dollars ($109,221). G. Direct Costs. The SANITATION DISTRICT shall pay to CONSULTANT the actual costs of permits and associated fees, travel and licenses for an amount not to exceed Twelve Thousand Five Hundred Ninety Four Dollars ($12,594). The SANITATION DISTRICT shall also pay to CONSULTANT actual costs for equipment rentals, leases or purchases with prior approval of the SANITATION DISTRICT. Upon request, CONSULTANT shall provide to the SANITATION DISTRICT receipts and other documentary records to support CONSULTANT's request for reimbursement of these amounts. All incidental expenses shall be PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 5 of 17 Return to Agenda Report included in overhead pursuant to Compensation Section above. (See Attachment"B"). 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. When the SANITATION DISTRICT determines that all Work authorized under the Contract is fully complete and that the SANITATION DISTRICT requires no further work from CONSULTANT, or the Contract is otherwise terminated or expires in accordance with the terms of the Contract, the SANITATION DISTRICT shall give the Consultant written notice that the Contract will be closed out. CONSULTANT shall submit all outstanding billings, Work submittals, deliverables, reports or similarly related documents as required under the Contract within thirty (30)days of receipt of notice of Contract closeout. Upon receipt of CONSULTANT'S submittals,the SANITATION DISTRICT shall commence a closeout audit of the Contract and will either: I. Give the CONSULTANT a final Contract 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 Project Closeout efforts identified in Agreement. Such support must be provided within the timeframe requested by the SANITATION DISTRICT. Notwithstanding the final Contract 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 Contract which expressly or by their nature extend beyond and survive final Contract Acceptance. Any failure by the SANITATION DISTRICT to reject the work or to reject the CONSULTANT'S request for final Contract 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 Contract Acceptance. 5. PAYMENT A. CONSULTANT may submit monthly or periodic statements requesting payment for those items included in Section 2 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 PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 6 of 17 Return to Agenda Report element work performed during the period covered by the statement, as may be required by the SANITATION DISTRICT. Upon approval of such payment request by the SANITATION DISTRICT, payment shall be made to CONSULTANT as soon as practicable of one hundred percent (100%)of the invoiced amount on a per-project-element basis. If the SANITATION DISTRICT determines that the work under this Agreement or any specified project element hereunder, is incomplete and that the amount of payment is in excess of: i. The amount considered by the SANITATION DISTRICT's Director of Engineering to be adequate for the protection of the SANITATION DISTRICT; or ii. The percentage of the work accomplished for each project element. He may, at his discretion, retain an amount equal to that which insures that the total amount paid to that date does not exceed the percentage of the completed work for each project element or the project in its entirety. B. CONSULTANT may submit periodic payment requests for each 30-day period of this Agreement for the profit as set forth in Compensation Section 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. C. 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. D. 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. E. Pursuant to the California False Claims Act(Government Code sections 12650- 12655), any CONSULTANT that knowingly submits a false claim to the SANITATION DISTRICT for compensation under the terms of this Agreement may be held liable for treble damages and up to a $10,000 civil penalty for each false claim submitted. This section shall also be binding on all Subconsultants. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 7 of 17 Return to Agenda Report A CONSULTANT or Subconsultant shall be deemed to have submitted a false claim when the CONSULTANT or Subconsultant: a) knowingly presents or causes to be presented to an officer or employee of the SANITATION DISTRICT a false claim or request for payment or approval; b) knowingly makes, uses, or causes to be made or used a false record or statement to get a false claim paid or approved by the SANITATION DISTRICT; c)conspires to defraud the SANITATION DISTRICT by getting a false claim allowed or paid by the SANITATION DISTRICT; d) knowingly makes, uses, or causes to be made or used a false record or statement to conceal, avoid, or decrease an obligation to the SANITATION DISTRICT; or e) is a beneficiary of an inadvertent submission of a false claim to the SANITATION DISTRICT, and fails to disclose the false claim to the SANITATION DISTRICT within a reasonable time after discovery of the false claim. 6. PREVAILING WAGES To the extent CONSULTANT intends to employ employees who will perform work during the design and preconstruction phases of a construction contract, as more specifically defined under Labor Code Section 1720, CONSULTANT shall be subject to prevailing wage requirements with respect to such employees. 7. DOCUMENT OWNERSHIP—SUBSEQUENT CHANGES TO PLANS AND SPECIFICATIONS—CONSULTANT PERFORMANCE A. Ownership of Documents for the Professional Services performed, all documents, including but not limited to, original plans, studies, sketches, drawings, computer printouts and disk files, and specifications prepared in connection with or related to the Scope of work or Professional Services, shall be the property of the SANITATION DISTRICT. The SANITATION DISTRICT's ownership of these documents includes use of, reproduction or reuse of and all incidental rights, whether or not the work for which they were prepared has been performed. The SANITATION DISTRICT ownership entitlement arises upon payment or any partial payment for work performed and includes ownership of any and all work product completed prior to that payment. This Section shall apply whether the CONSULTANT's Professional Services are terminated: a) by the completion of the Agreement, or b) in accordance with other provisions of this Agreement. Notwithstanding any other provision of this paragraph or Agreement, the CONSULTANT shall have the right to make copies of all such plans, studies, sketches, drawings, computer printouts and disk files, and specifications. B. CONSULTANT shall not be responsible for damage caused by subsequent changes to or uses of the plans or specifications, where the subsequent changes or uses are not authorized or approved by CONSULTANT, provided that the service rendered by CONSULTANT was not a proximate cause of the damage. C. 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 Department and may be considered in future CONSULTANT selection processes. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 8 of 17 Return to Agenda Report 8. INSURANCE A. General I. Insurance shall be issued and underwritten by insurance companies acceptable to the SANITATION DISTRICT. ii. Insurers must have an "A-" Policyholder's Rating, or better, and Financial Rating of at least Class Vill, or better, in accordance with the most current A.M. Best's Guide Rating. However, the SANITATION DISTRICT will accept State Compensation Insurance Fund, for the required policy of Workers Compensation Insurance subject to the SANITATION DISTRICT's option to require a change in insurer in the event the State Fund financial rating is decreased below"B". Further, the SANITATION DISTRICT will require Contractor to substitute any insurer whose rating drops below the levels herein specified. Said substitution shall occur within 20 days of written notice to Contractor, 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 Liabilitv The CONSULTANT shall maintain during the life of this contract, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: One Million Dollars ($1,000,000) per occurrence with One Million Dollars ($1,000,000) aggregate. Said insurance shall include coverage for the following hazards: Premises-Operations, blanket contractual liability (for this Agreement), products liability/completed operations (including any product manufactured or assembled), broad form property damage, blanket contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, owners and contractors protective liability, and cross liability and severability of interest clauses. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement(s). If requested by SANITATION DISTRICT and applicable, XCU coverage (Explosion, Collapse and Underground) must be included in the General Liability policy and coverage must be reflected on the submitted Certificate of Insurance. C. Umbrella Excess Liabilitv The minimum limits of general liability and automotive liability insurance required, as set forth herein, shall be provided for through either a single policy of primary insurance or a combination of policies of primary and umbrella excess coverage. Umbrella excess liability coverage shall be issued with limits of liability which, when combined with the primary insurance, will equal the minimum limits for general liability and automotive liability. D. Automotive/Vehicle liability Insurance The CONSULTANT shall maintain a policy of Automotive Liability insurance on a PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 9 of 17 Return to Agenda Report comprehensive form covering all owned, non-owned, and hired automobiles, trucks, and other vehicles providing the following minimum limits of liability coverage: Combined single limit of One Million Dollars ($1,000,000)with One Million Dollars ($1,000,000) aggregate or, alternatively, One Million Dollars ($1,000,000) per person for bodily injury and One Million Dollars ($1,000,000) per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. E. Worker's Compensation Insurance The CONSULTANT shall provide such Workers' Compensation Insurance as required by the Labor Code of the State of California in the amount of the statutory limit, including Employer's Liability Insurance with a minimum limit of One Million Dollars ($1,000,000) per occurrence. Such Workers Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of the SANITATION DISTRICT. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless the insurance carrier is State of California Insurance Fund and the identifier"SCIF"and endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. 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 Two Million Dollars ($2,000,000)with limits in accordance with the provisions of this Paragraph. If the policy of insurance is written on a "claims made" basis, said policy shall be continued in full force and effect at all times during the term of this Agreement, and for a period of five (5)years from the date of the completion of the services hereunder. In the event of termination of said policy during this period, CONSULTANT shall obtain continuing insurance coverage for the prior acts or omissions of CONSULTANT during the course of performing services under the term of this Agreement. Said coverage shall be evidenced by either a new policy evidencing no gap in coverage or by separate extended "tail" coverage with the present or new carrier. In the event the present policy of insurance is written on an "occurrence" basis, said policy shall be continued in full force and effect during the term of this Agreement or until completion of the services provided for in this Agreement, whichever is later. In the event of termination of said policy during this period, new coverage shall be obtained for the required period to insure for the prior acts of CONSULTANT during the course of performing services under the term of this Agreement. CONSULTANT shall provide to the SANITATION DISTRICT a certificate of insurance in a form acceptable to the SANITATION DISTRICT indicating the deductible or self-retention amounts and the expiration date of said policy, and shall provide renewal certificates not less than ten (10) days prior to the expiration of each policy term. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 10 of 17 Return to Agenda Report 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(7/97)or equivalent. • Additional Insurance (ISO Form) CG2010 11 85 or (General Liability) The combination of(ISO Forms) CG 2010 10 01 and CG 2037 10 01 All other Additional Insured endorsements must be submitted for approval by the SANITATION DISTRICT, and the SANITATION DISTRICT may reject alternatives that provide different or less coverage to the SANITATION DISTRICT. • Additional Insured Submit endorsement provided by carrier for the (Auto Liability) SANITATION DISTRICT approval. • Waiver of Subrogation State Compensation Insurance Fund Endorsement No. 2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No. 2065 or equivalent. H. Cancellation Notice Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either party, except after thirty (30)days' prior written notice. The Cancellation Section of ACORD Form 25-5 (7197)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 Contracts Management, Div. 230, 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 PDSA PROJECT NO. P1-123 Revised 11/17/10 Page 11 of 17 Return to Agenda Report 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. 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. 9. SCOPE CHANGES. In the event of a change in the scope of the proposed project, requested by SANITATION DISTRICT, the parties hereto shall execute an addendum to this Agreement setting forth with particularity all terms of the new Agreement, including but not limited to any additional CONSULTANT's fees. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 12 of 17 Return to Agenda Report 10. 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. 11. ENGINEERING REGISTRATION. The CONSULTANT personnel is 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. 12. AUDIT PROVISIONS I. 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. ii. 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. III. 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. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 13 of 17 Return to Agenda Report 13. 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. 14. This Agreement is entered into by and for the SANITATION DISTRICT and the CONSULTANT, nothing herein is intended to establish rights or interests in individual or entities not a party hereto. 15. TERMINATION. The SANITATION DISTRICT may terminate this Agreement at any time, without cause, upon giving thirty(30) days written notice to CONSULTANT. In the event of such termination, CONSULTANT shall be entitled to compensation for work performed on a prorated basis through and including the effective date of termination. CONSULTANT shall be permitted to terminate this Agreement upon thirty (30)days written notice only if CONSULTANT is not compensated for billed amounts in accordance with the provisions of this Agreement, when the same are due. Notice of termination shall be mailed to the SANITATION DISTRICT at: ORANGE COUNTY SANITATION DISTRICT 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Attention: Sarah Strader Notice of termination shall be mailed to CONSULTANT at: CAROLLO ENGINEERS, INC. Douglas Lanning, PE, PMP 10540 Talbert Ave, Suite 200 East Fountain Valley, CA. 92708 16. 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. 17. 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. 18. CONTRACT 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 contracts for that party. 19. DISPUTE RESOLUTION. In the event of a dispute arising between the parties regarding performance or interpretation of this Agreement, the dispute shall be resolved PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 14 of 17 Return to Agenda Report by binding arbitration under the auspices of the Judicial Arbitration and Mediation Service ("JAMS"), or similar organization or entity conducting alternate dispute resolution services. 20. ATTORNEY'S FEES, COSTS AND NECESSARY DISBURSEMENTS. If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney's fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 21. 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. 22. 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). 23. INDEMNIFICATION. To the fullest extent permitted by law, CONSULTANT shall indemnify, defend (at CONSULTANT'S sole cost and expense and with legal counsel approved by the SANITATION DISTRICT, which approval shall not be unreasonably withheld), protect and hold harmless the SANITATION DISTRICT and all of SANITATION DISTRICT'S officers, directors, employees, CONSULTANT'S, and agents (collectively the "Indemnified Parties"), from and against any and all claims, damages, liabilities, causes of action, suits, arbitration awards, losses,judgments, fines, penalties, costs and expenses (including, without limitation, attorneys' fees, disbursements and court costs, and all other professional, expert or CONSULTANT'S fees and costs and the SANITATION DISTRICT'S general and administrative expenses; individually, a "Claim"; collectively, "Claims')which may arise from or are in any manner related, directly or indirectly, to any work performed, or any operations, activities, or services provided by CONSULTANT in carrying out its obligations under this Agreement to the extent of the negligent, recklessness and/or willful misconduct of CONSULTANT, its principals, officers, agents, employees, CONSULTANT'S suppliers, CONSULTANT, subconsultants, subcontractors, and/or anyone employed directly or indirectly by any of them, regardless of any contributing negligence or strict liability of an Indemnified Party. Notwithstanding the foregoing, nothing herein shall be construed to require CONSULTANT to indemnify the Indemnified Parties from any Claim arising solely from: (A)the active negligence or willful misconduct of the Indemnified Parties; or (B)a natural disaster or other act of God, such as an earthquake; or (C)the independent action of a third party who is neither one of the Indemnified Parties nor the CONSULTANT, nor its principal, officer, agent, employee, nor CONSULTANT'S supplier, CONSULTANT, subconsultant, subcontractor, nor anyone employed directly or indirectly by any of them. Exceptions (A)through (B) above shall not apply, and CONSULTANT shall, to the fullest PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 15 of 17 Return to Agenda Report extent permitted by law, indemnify the Indemnified Parties, from Claims arising from more than one cause if any such cause taken alone would otherwise result in the obligation to indemnify hereunder. CONSULTANT'S liability for indemnification hereunder is in addition to any liability CONSULTANT may have to the SANITATION DISTRICT for a breach by CONSULTANT of any of the provisions of this Agreement. Under no circumstances shall the insurance requirements and limits set forth in this Agreement be construed to limit CONSULTANT'S indemnification obligation or other liability hereunder. The terms of this Agreement are contractual and the result of negotiation between the parties hereto. Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654)that ambiguities are to be construed against the drafting party, shall not be employed in the interpretation of this Agreement. 23. DUTY TO DEFEND. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend shall exist regardless of any ultimate liability of CONSULTANT and shall be consistent with Civil Code section 2782.8. Such defense obligation shall arise immediately upon presentation of a Claim by any person if, without regard to the merit of the Claim, such Claim could potentially result in an obligation to indemnify one or more Indemnified Parties, and upon written notice of such Claim being provided to CONSULTANT. Payment to CONSULTANT by any Indemnified Party or the payment or advance of defense costs by any Indemnified Party shall not be a condition precedent to enforcing such Indemnified Party's rights to indemnification hereunder. In the event a final judgment, arbitration, award, order, settlement, or other final resolution expressly determines that the claim did not arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the CONSULTANT, to any extent, then the DISTRICT will reimburse CONSULTANT for the reasonable costs of defending the Indemnified Parties against such claims. CONSULTANT'S indemnification obligation hereunder shall survive the expiration or earlier termination of this Agreement until such time as action against the Indemnified Parties for such matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 24. ENTIRE AGREEMENT. This Agreement constitutes the entire understanding and agreement between the Parties and supersedes all previous negotiations between them pertaining to the subject matter thereof. PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 16 of 17 Return to Agenda Report 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. ORANGE COUNTY SANITATION DISTRICT By Chair, Board of Directors Date By Clerk of the Board Date CARDLLO ENGINEERS, INC. By Date By Date ORANGE COUNTY SANITATION DISTRICT By Marc Dubois Date Contracts, Purchasing and Materials Management Division Manager Attachments: Attachment"A"—Scope of Work Attachment'B"—Allowable Direct Costs SS:eh PDSA PROJECT NO. Pl-123 Revised 11/17/10 Page 17 of 17 OPERATIONS COMMITTEE Meeth,D61e TOBd 0111 ,. 02/06/13 02/27/13 AGENDA REPORT Item Number Item Number 6 30 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, P.E., Director of Facilities Support Services Manager: Mark Esquer, P.E., Engineering Manager for Service Contracts and Collection Facilities O&M SUBJECT: CHANGE ORDER NO. 1 TO P.O. NUMBER 103690-OB, VOYAGER FLEET SYSTEMS INC. FOR FUEL PURCHASE GENERAL MANAGER'S RECOMMENDATION A. Approve Change Order No. 1 to P.O. Number 103690-OB issued to Voyager Fleet Systems Inc. for the purchase of unleaded/diesel fuel for vehicles and marine vessel authorizing an additional $80,000 to increase total annual contract amount from $275,440 to a not to exceed amount of$355,440; and, B. Approve a contingency of$17,772 (5%); and, C. Authorize the use of the State of California Department of General Services (DGS) Statewide Travel Management Program for vehicle fuel requirements, for the period May 1, 2013 through April 30, 2014, for a total amount not to exceed $332,600, with four one-year renewal options, in accordance with Resolution No. OCSD 07-04, Section 3.08: Cooperative Procurement; and, D. Approve a contingency of$33,260 (10%). SUMMARY This contract provides for OCSD's Fuel Card Program which issues every OCSD vehicle a charge card to purchase unleaded gasoline or diesel fuel from fueling stations. Using this contract, negotiated by the state of California, we pay a less-than-retail price per gallon. This increase to the authorized total contact amount is needed as the cost of both unleaded gasoline and diesel fuel has increased over the past year beyond staffs projections. The average monthly program cost is currently $29,000. In addition to the unit fuel cost increases, we also experienced extra usage of diesel fuel by OCSD's ocean monitoring vessel the MV Nerissa during the recent five-mile outfall repair project. The current contract is insufficient and requires the recommended changes. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION The State of California DGS agreements are available to all State of California governmental entities (state agencies, cities, counties, special districts, school districts, universities, etc.) that expend public funds for the acquisition of both goods and services. The State of California purchases a wide variety of goods and services ranging from pencils to temporary labor. Annual purchases total almost $10 billion. The Procurement Division (PD) is the central purchasing authority for all state departments and local governmental agencies. With a massive marketplace and billions of dollars in purchasing power they are able to offer a lower procurement cost to California's state, county, city, special district, education and other government entities through their agreements. These agreements allow entities/agencies to buy directly from suppliers through existing contracts and agreements. Contract Ownership: California Department of General Services Contract Documents/Pricing (DGS-OFA-OPPS-06; TRAVEL BULLETIN 10-08) Term of Agreement: 5/1/2012 —4/30/2013 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with Delegation of Authority Section 3.08. Date of ADDroval Contract Amount Continnencv 09/01/09 $250,400.00 $25,040(10%) 02/27/13 $355,440.00 $17,775(5%) ATTACHMENT The following attachment(s)is included in hard copy and may also be viewed on-line at the OCSD website(www.ocsd.coml with the complete agenda package: DGS Travel Bulletin #12-03 (5 pages) Page 2 of 2 Return to Agenda Report DEPARTMENT OF GENERAL CES i3G5 STATEWIDE TRAVEL MANAGEMENTIPROGRAM TRAVEL BULLETIN Travel Bulletin: # 12-03 Effective Date: May 1, 2012 Expiration Date: April 30, 2013 SUBJECT: Existing Contract Extension PURPOSE: Notification of the One Provider Contract Extension (American Express Corporate Services and Voyager Fleet Systems, INC.) REFERENCE: DGS-OFA-OPPS-06; Travel Bulletin 11.04 Purpose This Travel Bulletin announces the extension of the Department of General Services (DGS) One Provider Contract with American Express Corporate Services and Voyager Fleet Systems, INC. The term of this amendment is May 1, 2012 through April 30, 2013. Contract The American Express Payment System provides centrally billed accounts for Overview and airlines, rail, and car rental via the Business Travel Account (BTA) and Information individual travel charge cards for frequent state travelers. In addition, American Express provides the centrally-billed Meeting Planners Account (MPA) for the payment of consolidated lodging, and meeting and conference hotel charges. The Voyager Fleet Payment System is a fuel card that can be used at more than 10,000 locations throughout California to purchase fuel, alternative fuels, fluids, and lubricants. The Voyager card is also accepted by all major repair and maintenance providers throughout the State. Voyager maintains data security savings and controls. The Voyager program exempts all Federal and State taxes, resulting in cost savings for the State. Standard A copy of the Standard Agreement Amendment, Sid. 213A, describing all Agreement amendments to the One Provider contract is posted on the STAMMP website Amendment, (www.das.ca.cov/travel) under"Travel Bulletins" and "What's New". All Std. 213A amendments to the contract have been made part of, and are incorporated into, the agreement including the addition of Exhibit D, Special Terms and Conditions. Exhibit D emphasizes that individual government cards are only to be used for business travel purposes. Department Travel Program Administrators and Travel Coordinators must be aware of, and familiar with, all amendments included on the Std. 213A. Return to Agenda Report One Provider American Express— Doug Browne, doua.browneOaexo.com Account Voyager Fleet Systems—Mark Hess, mark.hesst(cDusbank.com Managers DGS Statewide If you need additional contract information or assistance, please contact: Travel Program Lori Wasson, Travel Program Specialist ' Contract DGS Statewide Travel Program Administrator (916) 376-3992 lori.wasson0d as.ca.aov Return to Agenda Report efA'IB®fAIBaYtiA • STANDARD AGREEMENT AMENDMENT ema)Ab .) ® CH"HER IFADDDION PAGESAREATTACAED 2 Aa10�aaIrMM� Aa�ae'R®IDp) - RFP-DO&OFA-OPPE-06 4 esaxeaummr taneen Skc�7 1. baoemed Into batwsev tba SbIn was Conbamm tamed baba: nAaa.vaex .. CAD$PABTMETT OF GENERALSERVICES OFFICE OF FLBBT MANAGEMENT ArnE� t )idQ�ry cmrrucranxAsm tom- US 0-Ax 1 V American Exprewa Travel Related Snipe see Servl Ix and U.S.Bank NatloMlAS$Odnbon NO. wz 2. Thataxamuna , Ajavanant is November) 2006 _t1w,ugh April30 2013 3. T6omudm®ammmt oftlde E0 oxr Agreement a0ctlde ammdmom le• 2ao(ONIDO) 4. The patina mmaally ages te this amctdmatt ee fogawe. All MUM noted bolow am by thin tefer®oe madam tI�V10 Agreement and incapmetd basin: PY�C A Amend Contractora name to cmtectly reed as American Express Travel Related Gorpmato 6e+vk:es, na Inna°,� U.S. Bank National Association ND —rr B. All references to Voyager or Voyager Fleet Systems Inc.In tiro Voyager Fleet Card Program Agrearnent and any amendments or addenda themto ere naw resistances to U.S.Bank Nation!Association NO C.Amend U.S. Bank National ABeodation NO'S Address to toad: U.S. Bank National Association NO, Meg Code: EP.MN-28C,200 South Sw Street Minneapons,MN 55402 Attn: Contract Services D. Amend confect tens for An additional twelve(12)months. The effective data of this contract D November 1, 2008 and this amendment extends the term through April 30,2013. E. Add Exhibit D, Special Terms and Conditions All other in=and conditions aha0 remain the arms IN WITNESS WHEREOF,title At ..nt It.b.excreted by the potlo beret. CONTRACTOR —11RACTOR oxxlRA(.'NA•a xAlrBm .au4.xad.m..ew,., y mxn6cmas xAe¢ry.a..e.,.,.rwr,an.bno..wyedawl.w.dn America n J ^Mp1fl nJ American Exsaveb4ffai Related Servtae, JUL U.S.Bank National Amodatlat ND 9Y 1MTaDlmdm pYw Y OfeV�" wmamxa®fab�mrbN .et Is AT2 Z HURT® itIIEOPaPAtmIaDNDm emn&I omsarneaxmamxo Amon f.Styder,Begin"Vice President and0 Manager Rely M Cnpwa,Via Ptaident ADDRESS CD ADDRESS Ytpnn! U.S.Bank National Aswistion ND. Ammicao Ihcpmra Travel Rolatod em,,n Services,Inc. MaIl Code: EP-MN-26C 27475 Yam Road F349 200 Soulh tie Shoal Temecula,CA 92591 Mlaneopoge,MN 55402 Ate: ContuntSmvhm STATE OF CALPORNIA A(ml HANK CA Department of Geneal Service;Oma of Fled and And Managemaat evre.A.aaa.>mm.y nnmarot�ro,a.bvd NM6Atus Qx' c Aa li OtNlua,Dapmy Direcm Ada 707 Thkd Stract,6C .�h*— Was Sariammetq CAA 936 956M Return to Agenda Report Exhibit D Special Terms and Conditions 1. AUDITS: Contractor shall be given written notice prior to any audits conducted by or on the behalf of State. Any records and supporting documentation requested in connection with an audit must solely pertain to this Agreement. Audits shall take place in a mutually agreeable location. 2. TIMELINESS: The parties agree that the Contractor shall be required to employ no more than generally accepted industry standards for the performance of the services. 3. LIMITATION OF LIABILITY: IN NO EVENT SHALL CONTRACTOR'S AGGREGATE LL98EdTY FOR ANY CLAIMS,DAMAGES,LAWSUITS,LOSSES OR CAUSES OF ACTION ARISING UNDER OR RELATING TO THIS AGREEMENT(WHETHER IN CONTRACT,TORT,WARRANTY OR OTHERWISE)EXCEED THE COMBINED TOTAL AMOUNT OF ONE MILLION DOLLARS ($1,000,000.00)REGARDLESS OF THE BASIS OF THE CLAIM OR CAUSE OF ACTION. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN,THE FOREGOING LIMITATION OF LIABILITY SHALL NOT APPLY TO AMOUNTS DUE AND OWING TO CONTRACTOR HEREUNDER FOR CHARGES AND AMOUNTS DUE AND OWING TO EITHER PARTY PURSUANT TO THE FINANCIAL APPENDIX,IF ANY. NOTWITHSTANDING ANYTHING CONTAINED IN THIS AGREEMENT TO THE CONTRARY AND EXCEPT AS OTHERWISE EXPRESSLY PROHIBITED BY APPLICABLE LAW,NEITHER PARTY NOR ITS DIRECT OR INDIRECT SUBSIDIARIES,AFFILIATES,AGENTS,EMPLOYEES OR REPRESENTATIVES SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT,SPECIAL, INCIDENTAL,CONSEQUENTIAL,PUNITIVE,OR EXEMPLARY DAMAGES OF ANY KIND (INCLUDING,WITHOUT LIMITATION,LOST REVENUES,LOSS OF PROFITS, OR LOSS OF BUSINESS),ARISING FROM THIS AGREEMENT OR RELATING TO THE OBLIGATIONS HEREUNDER,EVEN IF ADVISED OF SUCH POTENTIAL DAMAGES. 4. PROGRAM MODIFICATION: Contractor has the right to effect Program Modifications at any time upon notice to the State. A"Program Modification"means a chauge(a)in or to a benefit or feature or method of operation of any American Express Account approved for the State which change is generally and broadly applicable to the type of American Express account or(b)broadly applicable to the type of American Express Account established hereunder. The State agrees that any Program Modification by Contractor shall become effective if the State maintains or uses the American Express Accounts after the effective date specified in the notice,but in no circumstance shall the effective date be less than 60 days after the notice. The State may choose not to accept the Program Modifications by terminating this Agreement with notice to Contractor.No oral understanding or Agreement not incorporated in the Agreement is binding on any of the parties. "American Express Account(s)"means any charge accounts and charge cards issued by American Express to Company,its Affiliates and/or their respective Employees for the purposes of facilitating and expediting the purchase of and payment for goods and services acquired for legitimate business purposes. 5, USE OF ACCOUNTS: The State warrants and agrees that its policy shall limit the use of American Express Accounts to legitimate business purposes and that the State shall comply with such policy. In no event shall an American Express Account be used for any other purpose,including,but not limited to, personal,family or household purposes of any employee. The State shall notify in writing its employees of Return to Agenda Report this business purpose restriction to ensure that the American Express Accounts are used only for the legitimate business purposes of the State and to preclude Unauthorized Use. "Unauthorized Use"is a use that(i)did not benefit either State or the Commercial Cardmember and(u)was incurred by someone who is not the Commercial Cardmember or who did not have actual,implied or apparent authority to use the American Express Account. "Commercial Cardmembers"means State employees and participating governmental entities who are approved by American Express and are designated and authorized by the State to incur expenses on its behalf. THE REST OF THIS PAGE IS BLANK OPERATIONS COMMITTEE Meath,Date TOBd 0111 ,. 02/06/13 02/27/13 AGENDA REPORT Item Number Item Number 6 11 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering Project Manager: Jim Colston, Environmental Compliance Manager SUBJECT: REVISED RESOLUTION ON BIOSOLIDS RECYCLING GENERAL MANAGER'S RECOMMENDATION Adopt Board Resolution No. OCSD 13-03, revising the Biosolids Recycling Resolution and repealing Board Resolution No. OCSD 06-10. SUMMARY Staff recommends updating OCSD's Biosolids Recycling Resolution to align with OCSD's 5-Year Strategic Plan adopted on November 2012, and to reflect the current state and conditions impacting OCSD's biosolids management program. Since the 2006 update of the OCSD Board Resolution (OCSD 06-10) supporting biosolids recycling, OCSD has: • Maintained a diversified biosolids management program. • Changed its biosolids recycling level of service. • Maintained and renewed its commitment to land application. • Terminated the EnerTech long-range contract (energy option)for failure to perform. • Anticipates a one-third reduction in biosolids produced by 2017 due to solids facilities' capital improvements (centrifuge technology creating dryer biosolids) and the Irvine Ranch Water District managing their own biosolids. The revised policy submitted for the Board's consideration reflects these changes mentioned above, including historic milestones, and adds commitments to: • A sustainable biosolids program by maintaining a diversified portfolio of off-site biosolids management options with multiple biosolids contractors, markets, and facilities, while maintaining a 100% fail-safe back-up capacity. • Strive to balance financial, environmental, and societal considerations when making biosolids decisions. Page 1 of 2 • Utilize a biosolids management system to maintain a sustainable and publicly- supported biosolids program. • Support researching and implementing ways to reduce the volume biosolids produced at the treatment plants. • Support continuing to research biosolids benefits and potential safety concerns. • Continue demonstrating biosolids compost onsite, but removes "encouraging our member agencies." Our biosolids contractor no longer has a local composting facility and products and services that match our member agencies' needs, so this program is no longer feasible. PRIOR COMMITTEE/BOARD ACTIONS May 2006 - Adopted Resolution No. OCSD 06-10, Revising the Biosolids Recycling Resolution and Repealing Board Resolution No. OCSD 02-18. September 2002 - Adopt Resolution No. OCSD 02-18, in Support of Biosolids Recycling, and Repealing Resolution No. OCSD 00-05. April 2000 - Adopt Resolution No. OCSD 00-05, Declaring Support for Biosolids Application, and Repealing Resolution No. OCSD 99-03. April 1999 - Adopt Resolution No. OCSD 99-03 Declaring Support for Biosolids Application. ADDITIONAL INFORMATION Attachments include the original 2006 Biosolids Recycling Resolution and the recommended revisions for 2013 version. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s)maybe viewed on-line at the OCSD website 6w v ocsd.corn with the complete agenda package: 1. Proposed Resolution No. OCSD 13-03 2. Resolution No. OCSD 06-10 3. Resolution No. OCSD 02-18 JC:jb:gc Page 2 of 2 Return to Agenda Report RESOLUTION NO. OCSD 13-03 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT IN SUPPORT OF BIOSOLIDS RECYCLING AND REPEALING RESOLUTION NO. OCSD 06-10 WHEREAS, the Orange County Sanitation District ("District") produces biosolids at its two wastewater treatment plants; and WHEREAS, biosolids are the solid product of municipal wastewater processing which have been extensively and properly treated so that they may be safely recycled to amend soil directly, create composted soil amendments, produce energy, or other beneficial uses; and WHEREAS, the District promotes the recycling of biosolids in a manner that is safe, environmentally beneficial, and is sensitive to the needs of the communities involved; and WHEREAS, in 1993 the United States Environmental Protection Agency (EPA) established rules, which included a thorough health-risk assessment, regulating the treatment and use of biosolids (40 Code of Federal Regulations Part 503). These Regulations have since protected public health and the environment by ensuring the safe and beneficial recycling of biosolids when managed in accordance with the rules; and WHEREAS, decades of use, research, and regulatory review and oversight have demonstrated the benefits and safety of biosolids; and WHEREAS, the direct application of high-quality biosolids as a soil amendment is sustainable, safe, provides beneficial nutrients to the soil, sequesters significant amounts of carbon for a net carbon reduction, and is an environmentally- friendly alternative to — and reduces the need for — fossil-fuel intensive fertilizers, pesticides, and herbicides; and WHEREAS, the production of compost for agricultural, commercial, and residential markets is sustainable, safe, provides beneficial nutrients to the soil, is a local source of recycled nutrients, and is an environmentally-friendly alternative to — and reduces the need for—fossil-fuel intensive fertilizers, pesticides, and herbicides; and WHEREAS, the production of energy and other alternative products from biosolids can be sustainable, safe, and an environmentally-friendly option for utilizing the District's biosolids and ensuring continued diversity of the District's biosolids management options for sustainability; and WHEREAS, it is the law of the State of California that municipalities divert recyclable materials from disposal in landfills and may be required to divert even more in the future. The District also recognizes that limited (up to 100 tons per day) use of local landfills can provide benefits including enhancing methane gas recovery Page 1 of 4 Return to Agenda Report at the landfill, providing an in-county biosolids management option, increasing the diversity of the District's biosolids management options, and adding another low-cost option during the District's peak biosolids production period (until 2017), thereby increasing the District's biosolids program sustainability; and WHEREAS, in order to promote a standard of excellence, the District maintains a Biosolids Management System and adheres to the principles of the National Biosolids Partnership's Code of Good Practice and best management practices of the California Water Environment Association's (CW EA) Manual of Good Practice for Agricultural Land Application of Biosolids; and WHEREAS, in order to maintain the highest-quality biosolids for beneficial use, the District maintains a comprehensive and award-winning Source Control program that includes permits, and in some cases onsite treatment, for categorized industries, along with best management practices and outreach programs for non- industrial discharges to prevent pollutants entering the District's plants. WHEREAS, reducing the volume of biosolids produced onsite, reduces impacts associated with managing biosolids offsite such as traffic and truck emissions; and WHEREAS, the District supports ongoing research regarding emerging biosolids-related questions including studies performed by the EPA, Water Environment Research Foundation, and the National Science Foundation to ensure the continued safety of biosolids recycling practices; and WHEREAS, by 2003 most agriculturally-based counties in south and central California placed restrictive ordinances or bans on farming with biosolids; therefore highlighting the criticality for strong biosolids management practices including a biosolids management system and proactive education and outreach; and WHEREAS, the 2003-2004 Orange County Grand Jury issued findings related to public concerns regarding farming with biosolids and recommended the District's continued participation in national surveys, research on emerging concerns, and incident trackers in order to demonstrate the District's ongoing commitment to protecting public health and address nuisances; and WHEREAS, the District commissioned a Long-Range Biosolids Management Plan that was completed in 2003 and included recommendations with the goal of a long-term sustainable biosolids program. The Plan recommended diversity and fail- safe back-ups as ways to prevent biosolids market failures and thereby maintain reliability, minimize costs, and reduce risks to the District. The Plan also valued using local (in-county) options to reduce environmental impacts associated with hauling greater distances, create a closed-loop system (solids generated, treated, and used in the same county — including costs and revenues), and accept social responsibility for our biosolids use to increase community acceptance at out-of-county biosolids facilities. The District continues to implement the recommendations of the Plan including maintaining a diverse program of biosolids management (multiple biosolids Page 2 of 4 Return to Agenda Report contractors, markets, and facilities), maintaining fail-safe back-up capacity, and developing in-county facilities and markets. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. The District is committed to a sustainable biosolids program. Section 2. The District is committed to diversifying its portfolio of offsite biosolids management options with multiple biosolids contractors, markets, facilities, and maintaining fail-safe back-up capacity at least 100% of its daily biosolids production. Section 3. The District declares its support of recycling biosolids. Section 4. The District strives to balance financial, environmental, and societal considerations when making biosolids decisions. Section 5. The District is committed to utilize a biosolids management system to maintain a sustainable and publicly supported biosolids program. Section 6. The District is committed to researching and implementing ways to reduce the volume of biosolids at the treatment plants to minimize the need for offsite management. Section 7. The District declares its support of continuing to research biosolids benefits and potential safety concerns. Section 8. The District demonstrates the benefits of biosolids compost by using it at the District's facilities. Section 9. Resolution No. OCSD 06-10 is hereby repealed. Section 10. This Resolution shall become effective immediately upon its adoption. Page 3 of 4 Return to Agenda Report PASSED AND ADOPTED at a regular meeting of the Board of Directors held on the day of February 27, 2013. Troy Edgar, Chair ATTEST: Maria E. Ayala, Clerk of the Board Page 4 of 4 Return to Agenda Report t RESOLUTION NO. OCSD 06-10 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT IN SUPPORT OF BIOSOLIDS RECYCLING AND REPEALING RESOLUTION NO. OCSD 02-18 WHEREAS, biosolids are the solid product of municipal wastewater processing which have been extensively and properly treated so that they may be safely recycled to amend soil, produce energy, create compost, or other beneficial uses, rather than take up limited landfill space in California; and WHEREAS, the Orange County Sanitation District ("District") produces biosolids at Its two wastewater treatment plants; and WHEREAS, the United States Environmental Protection Agency (EPA) has adopted detailed and scientifically sound rules regulating the production and use of biosolids [40 Code of Federal Regulations Part 503 (Part 503 Rule)]. These Regulations assure the safe and beneficial use of biosolids when properly managed in accordance with the rules; and WHEREAS, the District supports ongoing research regarding emerging biosolids-related questions including studies performed by the EPA, Water Environment Research Foundation, and the National Science Foundation to ensure the continued safety of biosolids recycling practices; and WHEREAS, In order to promote a standard of excellence and to assure for the proper oversight, the District commits to Implementing the biosolids management practices found In the California Water Environment Association's (CWEA) Manual of Good Practice for Agricultural Land Application of Biosolids and the National Biosolids Partnership's National Manual of Code of Good Practice for Biosolids, as a basis for its Biosolids Environmental Management System; and WHEREAS, the application of high quality biosolids on nonfood products is safe, provides beneficial nutrients to the soil when applied at agronomic rates, and is consistent with the environmental application of fertilizers, pesticides, and herbicides on agricultural lands; and WHEREAS, the production of energy products from biosolids is a safe and environmentally-friendly option for recycling District's biosolids and ensures continued diversity of the District's biosolids management options for continued sustainability; and WHEREAS, it is the law of the State of California that municipalities divert recyclable materials from disposal in landfills in order to achieve a 50% waste diversion by Year 2000 (Assembly BIII 939); and Return to Agenda Report WHEREAS, in order to maintain the highest quality biosolids for beneficial use, the District maintains a comprehensive Industrial Waste Pretreatment and Source Control Program, which has received the United States Environmental Protection Agency's award for excellence; and WHEREAS, the District maintains a diverse program of biosolids management, including the application to nontable-food crop agricultural land in Southern Califomia, consistent with the District's mission to protect public health and the environment through excellence in wastewater systems, WHEREAS, the District promotes the recycling of biosolids in a manner that is safe, environmentally beneficial, and is sensitive to the needs of the communities involved. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1. The District declares its full support for the recycling of biosolids. Section 2: The District will use on its site, and encourage its Member Agencies to use at their facilities, compost made using District biosolids. Section 3: The District supports the proper management and oversight of this practice in accordance with the United States Environmental Protection Agency's Part 503 Rule and the CWEA Manual of Good Practice. Section 4: Resolution No. OCSD 02-18 is hereby repealed. Section 5: This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors held on the 24th day of May, 2006. " y .a ATTEST: Board Sec tary Return to Agenda Report RESOLUTION NO. OCSD 02-18 A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT IN SUPPORT OF BIOSOLIDS RECYCLING AND REPEALING RESOLUTION NO. OCSD 00-05 WHEREAS, biosolids are the residual product of municipal wastewater processing which have been extensively and properly treated so that they may be safely recycled to amend soil rather than take up limited landfill space; and WHEREAS, the Orange County Sanitation District ("District") produces biosolids at its two wastewater treatment plants; and WHEREAS, the United States Environmental Protection Agency has adopted detailed and scientifically sound rules regulating the production and use of biosolids [40 Code of Federal Regulations Part 503 (Part 503 Rule)]. These Regulations assure the safe and beneficial use of biosolids when properly managed in accordance with the rules; and WHEREAS, the District supports and implements the biosolids management practices found in the California Water Environmental Association's ("CWEA") Manual of Good Practice for Agricultural Land Application of Biosolids, in order to promote a standard of excellence for applying biosolids to agricultural land, and to assure for the proper oversight of this practice; and WHEREAS, the application of high quality biosolids on nonfood products is safe, provides beneficial nutrients to the soil when applied at agronomic rates, and is consistent with the environmental application of fertilizers, pesticides, and herbicides on agricultural lands; and WHEREAS, it is the law of the State of California that municipalities divert recyclable materials from disposal in landfills in order to achieve a 50% waste diversion by Year 2000 (Assembly Bill 939); and WHEREAS, in order to maintain the highest quality biosolids for beneficial use, the District maintains a comprehensive Industrial Waste Pretreatment and Source Control Program, which has received the United States Environmental Protection Agency's award for excellence; and Return to Agenda Report 1 WHEREAS, the District maintains a diverse program of biosolids management, including the application to nontable-food crop agricultural land in Southern California, consistent with the District's mission to protect public health and the environment through excellence in wastewater systems, WHEREAS, irrespective of the biosolids management option selected, the District commits to implementing the National Biosolids Partnership's Code of Good Practice as a basis for an Environmental Management System for its biosolids management program; and WHEREAS, the District desires to promote the continuance of the recycling of biosolids to nontable-food crop agricultural land in a manner that is safe, environmentally beneficial, and is sensitive to the needs of the communities involved. NOW, THEREFORE, the Board of Directors of Orange County Sanitation District, DOES HEREBY RESOLVE, DETERMINE, AND ORDER: Section 1: The District declares its full support for the recycling of biosolids. Section 2: The District will use on its site, and encourage its Member Agencies to use at their facilities, compost made using District biosolids. Section 3: The District supports the proper management and oversight of this practice in accordance with the United States Environmental Protection Agency's Part 503 Rule and the CW EA Manual of Good Practice. Section 4: Resolution No. OCSD 00-05 is hereby repealed. Section 5: This Resolution shall become effective immediately upon its adoption. PASSED AND ADOPTED at a regular meeting of the Board of Directors held on the 25th day of September, 2002. e OWair ATTEST: Board Stp retary Document2 .r •`�J' OPERATIONS COMMITTEE Meeting Date TOBd 0111 ,. 02/06/13 02/z7/13 AGENDA REPORT ern Number Item Number 7 12 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering SUBJECT: TRICKLING FILTER PUMP REPAIRS AT PLANT NO. 2 GENERAL MANAGER'S RECOMMENDATION A. Approve a sole source agreement with J.F. Shea Construction, Inc. for an amount not to exceed $430,000 for the repair of trickling filter pumps at Plant No. 2; and, B. Approve a contingency of$43,000 (10%). SUMMARY The trickling filter facility at Plant No. 2 was part of the secondary treatment expansion program and added 60 million gallons a day of secondary treatment to Plant No. 2. The original construction cost was $179,676,980 and the Contractor was J.F. Shea Construction, Inc. The project was completed in August 2011 with a final construction cost of $180,769,811, which equates to 0.61% change orders. The project returned $3,032,000 in unused budget. After the facility had been in operation six months, failures of the seal water system on one of the pumps was discovered. At that time, staff considered the failure a construction warranty item and directed the Contractor to perform the repair. While the Contractor was making repairs to fix the pump, staff noticed that the remaining five pumps were beginning to show signs of similar seal water issues. Staff notified the Contractor that repairs to the remaining five pumps would be likely as well. During the repair of the pumps, it was determined by the Contractor and manufacturer that the quality of water in the seal water system did not meet the manufacturer's requirements and was likely the cause of failure. Staff, along with the Design Consultant and a specialty corrosion consultant, investigated the cause of the seal water failure. The cause was determined to be excessive corrosion within the internal portions of the pumps caused by the feed water chosen for the seal water system. The choice of feed water was staff's decision during the commissioning phase. Staff had selected the most cost-effective feed water, unaware of the negative consequences to the seal water system. Keeping this facility operational is critical to meeting the permit requirements for secondary standards. As the repairs are no longer considered a warranty item, staff must obtain immediate construction services to complete the repairs. J.F. Shea Construction, Inc. is in the best position as the original equipment installer to continue to Page 1 of 3 repair the remaining pumps in an expedited manner to keep the facility operational and meet permit requirements. Staff is requesting a sole source contract be issued to J. F. Shea Construction, Inc. for the cost to date on the repairs, as well as the cost to complete the repairs. Risk Management shall explore any opportunities to recover money under the Sanitation District's Equipment Breakdown Insurance. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The trickling filter pump station includes six pumps that feed primary effluent to the trickling filters. Each pump houses a 300 horsepower motor and is able to pump 36 million gallons a day. The pumps are a critical component to the facility and pump operability is required to comply with the EPA Consent Decree for secondary standards. The design incorporated two sources of feed water for the seal water system, reclaimed water and plant water. Reclaimed water is highly treated wastewater effluent and is purchased from other agencies. Plant water is chlorinated secondary effluent and a no cost water source. This facility was designed to make use of reclaimed water with a plant water back up. During commissioning of the facility, however, staff chose to use plant water as the primary feed source in an effort to save money, unaware of the negative consequences to the seal water system. J.F. Shea has spent $196,953 to date on the repairs. They estimate an additional $233,047 to complete the repairs. CEQA N/A BUDGET/ DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 111). Date of Aooroval Contract Amount Continaencv 02/27/13 $430,000 $43,000 (10%) Page 2 of 3 ATTACHMENT The following attachment(s)maybe viewed on-line at the OCSD website (Mm w.ocsd.com) with the complete agenda package: • Sole Source Agreement, J.F. Shea Construction, Inc. (7 pages) KM:dm Page 3 of 3 Return to Agenda Report SOLE SOURCE SERVICE CONTRACT J.F. Shea Construction, Inc. Repair of Trickling Filter Pumps at Plant No. 2 THIS AGREEMENT is made and entered into as of the date fully executed below by and between Orange County Sanitation District, with a principal place of business at 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 (hereinafter referred to as "OCSD") and J.F. Shea Construction, Inc. with a principal business at 667 Brea Canyon Road, Suite 30, Walnut, California 91789 (hereinafter referred to as "Contractor") collectively referred to as the "Parties". RECITALS . WHEREAS, OCSD desires to retain the services oWntractor for for the repair of tric i pumps at Plant No. 2"Services"; and WHEREAS, OCSD has chosen Contractor.conduct Services in accordance with P r ing Resolution No. CSD07-04; and WHEREAS, o February 27, 2013, the Board of Directors O by minute order,au horized execution of this Contract between OCSD and Contra WHEREAS, Contractor is qualified by vi e o in and education and expertise to accomplish such Services, NOW THEREFORE, in consideration Nthmyises utualbenefits exchanged between the Parties, it is mutually agreed as foll 1. Introduction 1.1 This Contract and all exhibits hereto (called the "Contract") is made by OCSD and Contractor. The Terms and Conditions herein exclusively govern the purchase of Services as described in the Scope of Work, attached hereto and incorporated herein by reference as Exhibit"N' 1.2 Exh bits Contract are incorporated by reference and made a part of this Contract as though fully set forth at length herein. Exhibits to this Contract are as follows in order of precedence: Exhibit"A" Scope of Work Exhibit"B" Acknowledgement of Insurance Requirements 1.3 In the event of any conflict or inconsistency between the provisions of this Contract and any of the provisions of the exhibits hereto, the provisions of this Contract shall in all respects govern and control. 1.4 The provisions of this Contract may be amended or waived only by a writing executed by authorized representatives of both Parties hereto. 1.5 The various headings in this Contract are inserted for convenience only and shall not affect the meaning or interpretation of this Contract or any Paragraph or provision hereof. Orange County Sanitation District Page 1 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report 1.6 The term "days", when used in the Contract, shall mean calendar days, unless otherwise noted as business days. 1.7 Contractor shall provide OCSD with all required premiums and/or overtime work at no charge beyond the price provided under"Compensation" below. 1.8 Except as expressly provided otherwise, OCSD accepts no liability for any expenses, losses, or action incurred or undertaken by Contractor as a result of work performed in anticipation of purchases of said services by OCSD. 2. Compensation Compensation for this project shall not exceed the total amount of Four Hundred Thirty Thousand and 00/00 Dollars ($430,000). 3. Payments Payments shall be made upon approval by OCSD Project Manager, Chris Cervellone, or his designee, of invoices submitted for milestone tasks completed as described in Exhibit "A". OCSD, at its sole discretion, shall be the determining party as to whether the tasks and deliverables for each milestone have been satisfactorily completed. 4. Invoices 4.1 OCSD shall pay within 30 days of completion and receipt and approval by OCSD Project Manager of an itemized invoice, in a form acceptable to OCSD to enable audit of the charges thereon. Contractor shall not pay less than the prevailing wage, if applicable. Invoices shall include the Purchase Order Number. +/ 4.2 Invoices shall be emailed by Contractor to OCSD�at the following ail address and the Purchase Order number shall be referenced in the subject line: APSlsff(@,OCSD.com. f 5. Audit Rights Contractor agrees that, during the tWm of this Contract and for a period of three (3) years after its termination, OCSD shall have access to and the right to examine any directly pertinent books, documents, and records of Contractor relating to the invoices submitted by Contractor pursuant to this Contract. 6. Scope of Work Subject to the terms of this Contract, Contractor shall perform the Sere' identified in Exhibit "A". Contractor shall perform said Services in accordance with genen�y accepted industry and professional standards. 7. Modifications to Scope of Work Requests for modifications to the Scope of Work hereunder can be made by OCSD at any time. All modifications must be made in writing and signed by both Parties. 8. Contract Tenn The services provided under this Contract shall be completed within days from the date of notice to proceed. 9. Performance Time is of the essence in the performance of this Contract and the provisions hereof. 10. Termination 10.1 OCSD reserves the right to terminate this Contract for its convenience, with or without cause, in whole or in part, at any time, by written notice from OCSD, (delivered by certified mail, return receipt requested) of intent to terminate. Upon receipt of a termination notice, Contractor shall immediately discontinue all work under this Contract (unless the notice directs otherwise). OCSD shall thereafter, within thirty (30) days, pay Contractor for work performed (cost and fee) to the date of termination. Contractor expressly waives any claim to receive anticipated profits to Orange County Sanitation District Page 2 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report be earned during the uncompleted portion of this Contract. Such notice of termination shall terminate this Contract and release OCSD from any further fee, cost or claim hereunder by Contractor other than for work performed to the date of termination. 10.2 OCSD reserves the right to terminate this Contract immediately upon OCSD's determination that Contractor is not meeting specification requirements, if the level of service is inadequate, or any other default of this Contract. 10.3 OCSD may also immediately cancel for default of this Contract in whole or in part by written notice to Contractor: • if Contractor becomes insolvent or files a petition under the Bankruptcy Act; or • if Contractor sells its business; or • if Contractor breaches any of the terms of this Contror • if total amount of compensation exceeds the amoun orized under this Contract. 10.4 All OCSD property in the possession or control of Contractor shall be returned by Contractor to OCSD upon demand, or at the terminatioh of this Contract, whichever occurs first. 11. Force Maieure Neither party shall be liable for delays caused by accident, flood, acts of God, fire, labor trouble, war, acts of ggovernment or any other cause beyond its control, but said party shall use reasonable efforts tocinimize the extent of the flay. Work affected by a Force Majeure condition may beipscheduled by mutual consot or may be eliminated from the Contract. r 12. Safety and Human Resources Policies ntractor shall adhere to the Safety and Human Resources Policies in [Exhibit "B" hereto or htti)://www.orsewers.com/index.aspx?paqe=38&1)ar%6-,09531. 13. Insurance Contractor and all subcontrarrtors shall purchase and maintain, throughout the life of this Contract and any periods of warranty or extensions, insurance in amounts equal to the requirements set forth in the signed Acknowledgement of Insurance Requirements (attached hereto and incorporated herein as Exhibit "B"). Contractor shall not commence work under this Contract until all required insurance is obtained in a form acceptable to OCSD, nor shall Contractor allow any subcontractor to commence service pursuant to a subcontract until all insurance required of the subcontractor has been obtained. Failure to maintain required insurance coverage shall result in termination of this Contract. 14. Indemnification and Hold Harmless Provision Contractor agrees to save, indemnify, defend and hold harmless OCSD against any and all liability, claims, judgments, cost and demands, including demands arising from injuries or death of persons and damage to property, arising directly or indirectly out of the negligence or willful misconduct of Contractor, its employees or agents, in relation to the rendition of services pursuant to this Contract, except claims or litigations arising through the sole negligence or willful misconduct of OCSD. Contractor agrees to reimburse OCSD for any expenditure, including reasonable attorney's fees, OCSD may incur by reason of such matters, and, if requested by OCSD, will defend any such suits at the cost and expense of Contractor. 15. Warranty 15.1 Manufacturer's standard warranty shall apply. All manufacturer warranties will begin at date of completion of this Contract. Orange County Sanitation District Page 3 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report 15.2 Contractor's warranty: If, within the 12-month period following completion of its Services, OCSD informs Contractor that any part of the Services fails to meet the standards required under this Contract, Contractor shall, within the time agreed to by OCSD and Contractor, lake all such actions as are necessary to correct or complete the noted deficiency(ies). 16. Freight(F.O.B. Destination) Contractor assumes full responsibility for all transportation, transportation scheduling, packing, handling, insurance, and other services associated with delivery of all products deemed necessary under this Contract. 17. Independent Contractor It is agreed that Contractor shall act and be an independent contractor and not an agent or employee of OCSD, and shall obtain no rights to any benefits which accrue to OCSD'S employees. 16. Limitations upon Subcontracting and Assi nme ontractor shall not delegate any duties nor assign any rights under this Contract without theW5r written consent of OCS such attempted delegation or assignment shall be void. 19. Licenses, Permits. Ordinances and Reaul&ns Contractor represents anrran to OCSD that it has obtained all licenses, permits, qualification and approvals of whatever nature that are legally required to engage in this work. Any and all fees required by State, County City and/or municipal laws, codes and/or tariffs that pertain to work performed under the terms of this Contract will be paid by Contractor. 20. Applicable Laws and Regulations Contractor shall comply with all applicable federal, state, and local laws, rules, and regulations. Contractor also agrees to indemnify and hold harmless from any and all damages and liabilities assessed against OCSD as a result of Contractor's noncompliance therewith. Any permission required by law to be included herein shall be deemed included as a part of this Contract whet ter or not specifically referenced. 21. Familiarity with Work By executing this Contract, Contractor warrants that: 1) it has investigated the work to be performed; 2) it has investigated the site of the work and is aware of all conditions there; and 3) it understands the facilities, difficulties and restrictions of the work under this Contract. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by OCSD, it shall immediately inform SD of this and shall not proceed, except at Contractor's risk, until written instructions are re ived from OCSD. 22. Public Contracts Law OCSD has been advised by the State of California Director of Industrial Relations of its determination of the general prevailing rate of per diem wages and the general prevailing rate for legal holiday and overtime work in the locality in which the work is to be performed for each craft or type of work needed to execute this Contract. Contractor agrees that not less than said prevailing rates shall be paid to workers employed on this project as required by Labor Code Section 1774 of the State of California. 23. Governing Law This Contract shall be governed by and interpreted under the laws of the Slate of California and the Parties submit to jurisdiction in Orange County, in the event any action is brought in connection with this Contract or the performance thereof. Orange County Sanitation District Page 4 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report 24. Dispute Resolution 24.1 In the event of a dispute as to the construction or interpretation of this Contract, or any rights or obligations hereunder, the Parties shall first attempt, in good faith, to resolve the dispute by mediation. The Parties shall mutually select a mediator to facilitate the resolution of the dispute. If the Parties are unable to agree on a mediator, the mediation shall be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Contract, through the alternate dispute resolution procedures of Judicial Arbitration through Mediation Services of Orange County ("JAMS"), or any similar organization or entity conducting an alternate dispute resolution process. 24.2 In the event the Parties are unable to timely resolve the dispute through mediation, the issues in dispute shall be submitted to arbitration pursuant to California Code of Civil Procedure, Part 3, Title 9, Sections 1280 et seq. For such purpose, an agreed arbitrator shall be selected, or in the absence of agreement, each party shall select aniWitrator, and those two arbitrators shall select a third. Discovery may be conducted in connelem with the arbitration proceeding pursuant to California Code of Civil Procedure Section 1283.05. The arbitrator, or three arbitrators acting as a board, shall take such evidence and make such investigation as deemed appropriate and shall render a written decision on the'matter in question. The arbitrator shall decide each and every dispute in accordance with the laws of the State of California. The arbitrator's decision and award shall be subject to review for errors of fact or law in the Superior Court for the County of Orangeyvi*p right of appeal from any judgment issued therein. 25. Breach The waiver of either party of any breach-* vi lation of, or default under, any provision of this Contract, shall not be deemed a continuing waiver by such party of any other provision or of any subsequent breach or violation of this Contract or default thereunder. Any breach by Contractor to which OCSD does not object shall not operate as a waiver of OCSD'S rights to seek remedies available to it for any subsequent breach. M 26. Remedies In addition to other remedies available in law or equity, if the Contractor fails to make delivery of the goods or Services or reppdiates its obligations under this Contract, or if OCSD rejects the goods or Services or revokes acceptance of the goods or Services, OCSD may (1) cancel the Contract; (2) recover whatever amount of the purchase price OCSD has paid, and/or (3) "cover' by purchasing, or contracting to purchase, substitute goods or Services for those due from Contractor. In the event OCSD elects to "cover' as described in (3), OCSD shall be entitled to recover from Contractor as damages the difference between the cost of the substitute goods or Services and the contract price, together with any incidental or consequential damages. 27. Wrvival The provisions of this Contract dealing with Payment, Warranty, and Forum for Enforcement, shall survive termination or expiration of this Contract. 28. Severability If any section, subsection, or provision of this Contract, or any agreement or instrument contemplated hereby, or the application of such section, subsection, or provision is held invalid, the remainder of this Contract or instrument in the application of such section, subsection or provision to persons or circumstances other than those to which it is held invalid, shall not be affected thereby, unless the effect of such invalidity shall be to substantially frustrate the expectations of the Parties. 29. Disclosure Contractor agrees not to disclose, to any third party, data or information generated from this project without the prior written consent from OCSD. 30. Third Party Rights Nothing in this Contract shall be construed to give any rights or benefits to anyone other than OCSD and Contractor. Orange County Sanitation District Page 5 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report 31. Damage to OCSD'S Property Any of OCSD'S property damaged by Contractor, any subcontractors or by the personnel of either will be subject to repair or replacement by Contractor at no cost to OCSD. 32. Attorney's Fees If any action at law or inequity or if any proceeding in the form of an Alternative Dispute Resolution (ADR) is necessary to enforce or interpret the terms of this Contract, the prevailing party shall be entitled to reasonable attorneys fees, costs and necessary disbursements in addition to any other relief to which he may be entitled. 33. South Coast Air Quality Management District's (SCAQMD) Requirements It is Contractor's responsibility that all equipment furnished and installed be in accordance with the latest rules and regulations of the South Coast Air Quality Management District (SCAQMD). All contract work practices, which may have associated emissi such as sandblasting, open field spray painting or demolition of asbestos containing compon� or structures, shall comply w' the appropriate rules and regulations of the SCAQMD. 34. Reoulatory Requirements Contractor shall perform all work under this Contract in strict conformance with applicable federal, state, and local regulatory requirements including, but not limited to, 40 CFR 122, 123, 124, 257, 258, 260, and 261, Title 22, 23, and California Water Codes Division 2. `� 35. Read and Understo Jgning this Contract, Ctl�traak r s X e has read and understood the terms a d conditions of the Contract. 36. Authority to Execute The persons executing this Contract on behalf of the Parties warrant that they are duly authorized to execute this Contract and that by executing this Contract, the Parties are formally bound. 37. Entire Agreement This Contract constitutes the entire agreement of the Parties and supersedes all prior written or oral and all confemporaneous oral agreements, understandings, and negotiatio s between the Parties with respect to the subject matter hereof. Orange County Sanitation Distnct Page 6 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report 38. Notices All notices under this Contract must be in writing. Written notice shall be sent by registered or certified mail, postage prepaid, return receipt requested, or by any other overnight delivery service which delivers to the noticed destination and provides proof of delivery to the sender. Any facsimile notice must be followed within three (3) days by written notice. All notices shall be effective when first received at the following addresses: OCSD: Clarice M. Marcin Senior Contracts Administrator Orange County Sanitation District 10844 Ellis Avenue Fountain Valley, CA 92708-7018 Contractor: J.F. S ructioroc. IN WITNESS HEREOF, the Parties hereto have hereunto set their hands the day and year indicated belo ORANGE COUNTY SANITATION DISTRICT Dated: it Board of Directors Dated: Clerk of the Board Da By: Contracts/Purchasing Manager J.F. SHEA CONSTRUCTION, INC. Dated: By: Print Name and Title of Officer IRS Employer's I.D. Number Orange County Sanitation District Page 7 of 7 DRAFT CONTRACT DO NOT SUBMIT Return to Agenda Report Exhibit "A" TFPS Pump Repair Scope: The following scope is for the work involved with the removal and repairs to all six of the Trickling Filter Pumps installed under the P2-90 project. 1. Trouble shoot seal water flow performance issue. Conduct water sample analysis 2. De-terminate circuits to pump motor and devices. Disconnect piping,uncouple and remove mechanical seal,uncouple motor from pump,remove motor, remove skylight. Coordinate removal of pump by dual cranes. Transport pump to repair shop. Disassemble pump and allow for OCSD inspection. 3. OCSD damage assessment: replace wom and corroded parts as directed by OCSD. Sandblast and recoat parts as directed OCSD. 4. Reassemble pump and conduct flow test in the presence of OCSD to confirm performance. Return pump to site,reinstall pump, couple and align pump, and reinstall skylight. Reconnect electrical circuits and confirm operation. Conduct vibration analysis and confirm pump is ready for return to service. Return to Agenda Report Orange County Sanitation District (OCSD) Exhibit"B" 10844 Ellis Avenue, Fountain Valley, CA 92708-7018 Phone (714) 962-2411 Fax (714) 593-7784 ACKNOWLEDGMENT OF INSURANCE REQUIREMENTS' AND CERTIFICATION OF ABILITY TO PROVIDE AND MAINTAIN COVERAGES SPECIFIED the (President, Secretary, Manager, Owner or Representative) Of , certify that the Specifications and (Name of Company, Corporation or Owner) General Provisions regarding insurance requirements as stated below, for the Purchase Contract designated Specification No. . have been read and understood and that our firm, as bidder on this project is able to provide and maintain the coverage as specified below. If the awarded bidder fails to provide said coverage, this shall be sufficient cause for contract termination. Failure to maintain said coverage shall result in termination of the awarded bidder's contract. Date: (Signature of President, Owner or Authorized Company Representative) Return the signed Acknowledgement to the Buyer handling the bid/RFP. INSURANCE REQUIREMENTS `WE STRONGLY RECOMMEND THIS SHEET BE GIVEN TO YOUR INSURANCE AGENT/BROKER IMMEDIATELY TO ENSURE YOUR FIRM CAN COMPLY WITH OUR REQUIREMENTS IN THE EVENT YOUR FIRM IS AWARDED THE CONTRACT Once you have been awarded the contract,please provide us with a certificate of insurance and supporting endorsements as described below. The actual endorsements(see Proof of Coverage below for specific form numbers)must be provided-a statement on an insurance certificate will not be accepted in lieu of the actual endorsement. We prefer to receive original electronic documents in PDF format via e-mail to rkleinmanCdocsd.com. Only if you cannot send electronic carts and endorsements will we accept hard copies sent to Randall Kleinman, Orange County Sanitation District, Div. 260, 10844 Ellis Avenue, Fountain Valley,CA 92708. Faxed copies are not considered original documents;your insurance is not considered in compliance until all originals are received. 1. WORKER'S COMPENSATION INSURANCE: The Vendor shall provide such Workers Compensation Insurance as required by the Labor Code of the State of California, including Employers Liability Insurance with a minimum limit of$1,000,000.00. Such Worker's Compensation Insurance shall be endorsed to provide for a waiver of subrogation in favor of OCSD. A statement on an insurance certificate will not be accepted in lieu of the actual endorsements unless your insurance carrier is State of California Insurance Fund(SCIF) and the endorsement numbers 2570 and 2065 are referenced on the certificate of insurance. 2. GENERAL LIABILITY INSURANCE: The Vendor shall maintain during the life of this contract, including the period of warranty, Commercial General Liability Insurance written on an occurrence basis providing the following minimum limits of liability coverage: $500,000 per occurrence with$1.0 million 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,contractual liability, independent contractors liability, personal and advertising injury, mobile equipment, 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 OCSD and applicable,XCU coverage (Explosion,Collapse and Underground)and Riggers Liability must be included in the General Liability policy and coverage must be reflected on submitted Certificate of Insurance. Rev.112112rk Level 1 w/o E80 Return to Agenda Report Orange County Sanitation District(OGSD) 3. AUTOMOTIVE/VEHICLE LIABILITY INSURANCE: The Vendor 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$1.0 million or alternatively, $500,000 per person for bodily injury and$500,000 per accident for property damage. A statement on an insurance certificate will not be accepted in lieu of the actual additional insured endorsement. 4. UMBRELLA EXCESS LIABILITY: The minimum limits of general liability and automotive liability insurance required,as set forth above,shall be provided for 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. 5. ADDITIONAL INSURED ENDORSEMENTS: Each policy of insurance obtained,except Worker's Compensation Coverage and Emors and Omissions Coverage, shall name OCSD, its Directors, officers, agents,consultants,and employees for this contract,and all public agencies from whom permits will be obtained and their Directors, officers, agents and employees, as determined by OCSD, as additional insured on said policies. No exclusionary language or limitations shall be applicable to any additional insured that are not applicable to the named insured. In addition, 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 said policies. If this coverage is not provided within the coverage form(insurance policy)it shall also be endorsed as primary and non- contributory coverage. 6. PROOF OF COVERAGE: The Vendor shall furnish OCSD 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 OCSD before work commences. OCSD reserves the right to require complete,certified copies of all required insurance policies, including endorsements,affecting 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 or other equivalent Certificate of Insurance form. • Additional Insured (ISO Form)CG2010 1185 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 OCSD, and OCSD may reject alternatives that provide different or less coverage to OCSD. •Additional Insured Submit endorsement provided by carrier for OCSD approval. (Auto Liability) • Waiver of Subrogation State Compensation Insurance Fund Endorsement No.2570 or equivalent. • Cancellation Notice State Compensation Insurance Fund Endorsement No.2065 or equivalent. Rev.112112rk Level 1 w/o E80 Return to Agenda Report Orange County Sanitation District(OCSD) 7. PERIOD OF COVERAGE: Insurance coverage is required for the period when Vendor has entered onto OCSD's property for purposes of general maintenance or repair of OCSD's equipment,or for routine service work pursuant to contract, including but not limited to the disconnection or removal of equipment purchased, until completion of all work or service required by the contract. 8. CANCELLATION NOTICE: Each insurance policy required herein shall be endorsed to state that coverage shall not be cancelled by either parry, except after thirty(30)days'prior written notice. The ACORD Form shall state the required thirty(30)days'written notification. Policy shall not terminate, nor shall it be cancelled nor the coverage reduced,until thirty(30)days after written notice is given to OCSD except for non-payment of premium which shall require not less than ten(10)days written notice to OCSD. Should there be changes in coverage or an increase in deductible or SIR amounts,the Vendor and its insurance broker/agent shall send to OCSD 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 OCSD 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 OCSD. 9. INSURANCE CARRIER RATING: The insurers must have an A-(A minus),or better,policyholder's rating,and a financial rating of Class Vill, or better, in accordance with the most current A.M. Best Rating. OCSD recognizes that State Compensation Insurance Fund has withdrawn from participation in the A.M. Best's rating 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. OCSD will also require Vendor to substitute any insurer whose rating drops below levels herein specified. Said substitution shall occur within twenty(20)days of written notice to Vendor by OCSD or its agent. 10. PRIMARY INSURANCE: All liability policies shall contain a Primary and Non Contributory Clause. Any other insurance maintained by OCSD shall be excess and not contributing with the insurance provided by Vendor. 11. SEPARATION OF INSURED: All liability policies shall contain a"Separation of Insured"clause. 12. NON LIMITING (if applicablel: Nothing in this document shall be construed as limiting in any way, nor shall it limit the indemnification provision contained in the Agreement, or the extent to which Vendor may be held responsible for payments of damages to persons or property. 13. DEDUCTIBLES AND SELF INSURED RETENTIONS: Any deductible and/or self insured retentions must be declared to OCSD on the Certificate of Insurance. All deductible and/or self insured retentions require approval by OCSD. At the option of OCSD, either: the insurer shall reduce or eliminate such deductible or self-insured retention as respects OCSD;or the Vendor shall provide a financial guarantee satisfactory to OCSD guaranteeing payment of losses and related investigations, claim administration and defense expenses. 14. DEFENSE COSTS: Liability policies, except for Errors and Omissions Coverage, 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. Rev.112112rk Level 1 w/o E80 OPERATIONS COMMITTEE WedngDate TOBd. DI,. OV06113 02/27/1of3 AGENDA REPORT Item Number Item Number 8 13 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering Project Manager: Umesh Murthy SUBJECT: SLUDGE DIGESTER REHABILITATION AT PLANT NO. 1, PROJECT NO. P1-100 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $1,340,000 (4%) to the construction contract with JR Filanc Construction Company for Sludge Digester Rehabilitation at Plant No.1, Project No. P1-100, for a total contingency of$4,020,000 (12%). SUMMARY This project provides for the rehabilitation of Digester Nos. 5-16 at Plant No. 1 for the replacement of aging equipment and improvement of solids handling capacity. Structural rehabilitation work includes replacement or repair of existing liners to concrete domes and repair of concrete reinforcement/cracks to digester walls and domes. Equipment rehabilitation includes sludge pumping, heating, structural supports, mechanical systems, and electrical and control systems. The project was awarded on February 24, 2010. Notice to Proceed was issued to the Contractor on March 30, 2010. There have been significant additional costs incurred on this project due to unknown conditions of the concrete walls and domes inside Digesters 7 and 8. The current project contingency is $2,680,000 (8%). The project has incurred roughly $2,400,000 of additional costs that corresponds to 89% of the approved contingency. The project is 50% complete and in order to be able to cover any further unexpected field conditions or interferences, staff has determined that the contingency budget of 8% is inadequate and requests an additional contingency of $1,340,000 (4%) for a total project contingency of$4,020,000 (12%). No increase to the project budget is being requested as the current project budget is sufficient to cover the requested additional change order contingency. Page 1 of 3 PRIOR COMMITTEE/BOARD ACTIONS February 2010 — Awarded a construction contract to JR Filanc Construction Company for Sludge Digester Rehabilitation at Plant No.1, Project No. 131-100, for an amount not to exceed $33,500,000 and approve a contingency of$2,680,000 (8%). ADDITIONAL INFORMATION P1-100 project includes rehabilitation of 12 digesters (Digesters 5-16) at Plant No. 1. These digesters were built between the years of 1959 and 1993 as shown in the table below. Digester Year Built 5 1959 6 1962 7 1964 8 1970 9 1978 10 1978 11 1993 12 1993 13 1993 14 1993 15 1993 16 1993 Rehabilitation work on the first pair of digesters (Digesters 7 and 8) started in April 2010. Due to the poor condition of the existing concrete, additional work was required to remove the existing liners, fix concrete cracks, and prepare the concrete surface for a new polyurethane coating. Staff expects Digesters 5, 6, 9, and 10 to have similar issues and will involve extra efforts to complete the rehabilitation work. However, Digesters 11-16 were built in the early 1990s and are expected to be in a better condition than the older digesters. Based on the lessons learned from Digesters 7 and 8, staff will: 1. Prior to starting work at any digester, obtain concrete samples and come up with a protocol to complete concrete rehabilitation work. 2. Perform change order work only for safety issues, operational issues, and critical structural issues. Based on the Design Consultant's recommendations, the Sanitation District may elect to defer long-term structural rehabilitation to a future project where replacement of the digester roofs may have a more favorable life- cycle cost. Page 2 of 3 Staff cannot determine the exact condition of the remaining digesters at this time because concrete core samples cannot be obtained while the digesters are in operation. In order to obtain concrete core samples, digesters have to be shut down, sludge inside the digester has to be removed, and gases released. CEQA This project was included in the Secondary Treatment and Plant Improvement Projects Subsequent Environmental Impact Report (SEIR) to the 1999 Strategic Plan Program EIR prepared by Environmental Science Associates and certified on May 25, 2005. A Notice of Determination was filed on May 26, 2005. ADDITIONAL INFORMATION This request for increase in the project contingency complies with authority levels of the Orange County Sanitation District's Delegation of Authority. This item has been budgeted (FY 2012-13 and FY 2013-14, Section 8, Page 10). Date of ADDroval Contract Amount Contingency 02/24/10 $33,500,000 $2,680,000 (8%) 02/27/13 $1,340,000 (4%) $4,020,000 (12%) JH:UM:dm:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date TOBd 0111 r. 02/06/13 02/27/13 AGENDA REPORT Item Number Item Number 9 14 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Kanetis, Director of Engineering Project Manager: Jim Colston, Environmental Compliance Manager SUBJECT: RE-ESTABLISH BIOSOLIDS ACCOUNT POOL GENERAL MANAGER'S RECOMMENDATION A. Authorize staff to re-establish a Biosolids Account Pool utilizing a Blanket Purchase Order for the efficient management of all biosolids contracts (Tule Ranch, Synagro West, Inc., and Orange County Waste and Recycling) in one account to provide flexibility for unanticipated circumstances that may impact biosolids management, which may include events such as truck/driver shortages, poor weather conditions, regulatory constraints, unacceptable contractor performance, or contractor facility limitations; and B. Approve Blanket Purchase Order No. 104696-OB for an annual amount not to exceed $19,000,000 for biosolids management with Orange County Waste and Recycling, Tule Ranch, and Synagro West, Inc., which will replace Blanket Purchase Order No. 100760-OB; and C. Authorize staff to move funds within the Biosolids Account Pool from one contract to another, as deemed necessary, due to unanticipated circumstances. SUMMARY Staff is recommending that funds, which have been separately approved and allocated by the Board for Tule Ranch, Synagro West, Inc., and Orange County Waste and Recycling, be placed into one Blanket Purchase Order (also known as the "Biosolids Account Pool"). This will allow staff to move funds from one contract to another to effectively manage biosolids during unanticipated circumstances such as truck/driver shortages, poor weather conditions, regulatory constraints, unacceptable contractor performance, or contractor facility limitations. By placing the funds into the Biosolids Account Pool (BAP), staff can more effectively manage the Orange County Sanitation District's (OCSD) biosolids and avoid contract change orders. There is no additional cost associated with re-establishing the BAP under the established Tula Ranch Blanket Purchase Order. All costs will stay within the boundaries of the combined BAP limit, as well as the budget (whichever is lower). The BAP will contain $19,000,000, which covers the combined annual biosolids management costs for Tule Ranch, Synagro West Inc., and Orange County Waste and Page 1 of 3 905807.1 Recycling. Staff will continue to be transparent and keep the Board informed of all issues and significant changes related to the management of biosolids, including if/when an individual contract limit within the pool is expected to be exceeded or has been exceeded. PRIOR COMMITTEE/BOARD ACTIONS March 2000 - Authorized staff to: (1) reallocate funds for the biosolids management contracts with Pima Gro (Presently Synagro West, Inc.), Bio Gro, Tule Ranch, and the Yakima Company, into one account; and (2) move funds from one contract to another, as deemed necessary, due to unanticipated changes in climate, regulations, and contractor performance. November 2012 - Approved the Waste Disposal Agreement with the County of Orange (Orange County Waste and Recycling) in a total annual amount not to exceed $3,605,288. November 2012 - Approved Amendment No. 9 to Synagro West, Inc. Purchase Order No. 100760-OB, increasing the annual contract amount from $6,580,000 to $8,600,000 for the period of January 1, 2012 through December 31, 2012. Thereafter, the annual contract not-to-exceed amount will be $6,580,000. On August 2012 - Approved a contract with Tule Ranch in a total annual amount not to exceed $19,000,000. ADDITIONAL INFORMATION In March 2000, the Board approved the original BAP (Purchase Order # 100760-OB), which remained viable until recently. This BAP was an important tool for OCSD staff to efficiently manage the multiple biosolids contractors, to optimize the budget, and to reallocate loads to other biosolids contractors when needed. For example, in 2003 when Yakima was not conforming to La Paz County requirements, OCSD immediately pulled loads and reallocated loads to the other existing contractors, thereby limiting OCSD's potential risk exposure. Because the funds were pooled, staff did not have to delay transferring loads pending the amendment of the other contracts to permit the reallocation. Since the approval of the original BAP, OCSD experienced several major changes to its biosolids management program that left only Synagro in the original BAP: • A new contract was awarded to Tule Ranch to manage a portion of OCSD's biosolids for land application (Purchase Order# 104696-OB); • The EnerTech contract was terminated for failure to perform. Biosolids formerly managed by EnerTech are being sent to OCSD's other biosolids contractors, Synagro West, Inc. and Tule Ranch; Page 2 d 3 %5807.1 • Previous contracts had already expired (e.g., Yakima and California Soil Products); • Synagro was allocated additional loads when EnerTech was terminated. Because their contract limit is based on 2006 pricing, there were insufficient funds to cover the cost of the additional EnerTech loads. Tule Ranch has a new contract with updated pricing based on our 100%fail-safe value and does not have this issue; and • A Waste Disposal Agreement with Orange County Waste and Recycling was approved by the Board to utilize the Prima Deshecha Landfill for biosolids disposal. These changes in OCSD's biosolids allocations between the biosolids management contractors prompted staff to recommend re-establishing the BAP to ensure continued flexibility, diversity, and sustainability of our biosolids management. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A JC:jb:gc Page 3 of 3 %5807.1 BOARD OF DIRECTORS meeting Date TOBd.Or Dir. 02/27/13 02/27/13 AGENDA REPORT emNumber Item Number 2 16 Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED FIVE-YEAR REGIONAL SEWER SERVICE CHARGES GENERAL MANAGER'S RECOMMENDATION A. Consider a five year rate schedule for regional sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. B. Motion to read Ordinance No. OCSD41 by title only and waive reading of said entire ordinance on February 27, 2013. C. Introduce Ordinance No. OCSD-41, an Ordinance of the Board of Directors of Orange County Sanitation District Amending and Restating Ordnance No. OCSD-35 Concerning Sanitary Sewer Service Charges and Repealing Ordinance No. OCSD-35; Adopting Revised Table A RE Residential User Fees and Revised Table B Property Use Classifications. D. Set March 27, 2013, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD-41. SUMMARY At the December 2012 Operations and Administration Committee meetings and the December 2012 Board meeting, staff presented a proposed financing plan in support of the Sanitation District's operations. The financing plan addressed the Sanitation District's operating and capital programs for the period covering FY 2013-14 through FY 2020-21. On December 19, 2012, the Board gave direction to staff to issue proposed rate adjustment notices to effected rate payers in compliance with Proposition 218 requirements. At the January 2013 Board meeting, staff presented the Wastewater Revenue and Rate Study prepared by Carollo Engineering, which independently found that staffs recommendation to increase the regional sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure. 910766.1 The net effect of adopting this financing plan and subsequent five-year rate ordinance will be to increase annually the single family residential rate (SFR), the basis for all regional sewer service charges, 4.8 percent effective on July 1, 2013, followed by annual increases of 2.4% for the next four years. The proposed increase provides for equitable and proportionate distribution for the cost of service of operating the Sanitation District's wastewater system. PROPOSED ANNUAL OCSD RESIDENTIAL USER FEE FISCAL YEAR 20013-14 2014-15 2015-16 2016-17 2017-18 SFR* $308.00 $316.00 $323.00 $331.00 $339.00 MFR** $215.60 $221.20 $226.10 $231.70 $237.30 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL *The SFR fee is the underlying rate for all other OCSD sewer service user fees. **The MFR is 70 percent of the SFR rate times the number of units. ADDITIONAL INFORMATION The Board of Directors last adopted a five-year rate plan in 2008 to support its $2.0 billion capital improvement and rehabilitation, refurbishment and replacement program and operational activities. During this period, annual rate increases of ten percent (10%)were required to support larger construction efforts, specifically for the completion of Full Secondary and Groundwater Replenishment System (GWRS) projects. The Sanitation District expects to continue and/or improve its level of service and meet demands on its wastewater system through its Capital Improvement Program (CIP), which has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, odor control improvements, air-quality protection needs, conservation, energy and other resource-savings considerations. Now that the larger construction projects related to the Sanitation District's implementation of full secondary treatment are complete, the Sanitation District will change its focus to rehabilitation and refurbishment efforts, the general maintenance of assets and ongoing operations. Future CIP projects are focused on (i) major rehabilitation of the existing headworks, primary-treatment, outfall, and solids handling facilities; (d) rehabilitation and replacement of many of the Sanitation District's outlying pump stations and trunk sewers; and (ii)fund cooperative projects to help cities upgrade their sewer systems. The cost adjustments associated with these efforts are primarily inflationary in nature. As a result, increases at the 10 percent level are no longer required, only increases that align with inflation. The CIP projected costs totals approximately 1.63 billion in 2012 dollars between Fiscal Year 2013/2014 and FY 2020/2021. Of this total, approximately $1.44 billion will be undertaken for the rehabilitation and refurbishment efforts identified above, while $0.19 billion will be undertaken to provide capacity for projected growth. Page 2 of 5 Based on an analysis of the cost-of-service for existing users and an allocation of the costs of the Sanitation District's sewer services to each class or customer in proportion to the demands they place on the system, staff is recommending rate adjustments based on the projected inflationary costs of 4.8 percent effective July 1, 2013, followed by annual increases of 2.4 percent for the next four years, where increases to the SFR rate will be approximately$8 per year. Sewer service charges are the primary revenue source of the Sanitation District, and such charges have been adjusted in previous years to generate sufficient cash flow for additional capital improvements and debt-service obligations. The revenues derived from the rate schedule proposed herein will be used to cover the cost of providing and maintaining regional sewer service to existing properties, and the rate schedule represents a balanced approach that implements a strategy of no additional debt issuances, prudent reduction of reserves and achieving various operational efficiencies of more than $15 million per year through the CIP. The revenues derived from the regional sewer service fees proposed herein do not exceed the funds required to provide sewer services to existing properties using the Sanitation District's wastewater system, and the amount of the charge based upon the type of use of each parcel does not exceed the proportional cost of the service attributable to the parcel. In addition to sewer service charges, and other proposed user rate adjustments, existing reserves will be reduced and other cost saving measures will be implemented. Without the use of existing reserves and other cost saving measures, additional rate increases beyond what is proposed would have been required. The proposed rate adjustment will generate approximately $150 million in revenue over the next five years. Without a Board action (by 2/3 majority) to approve the proposed rate increase, the Board will need to adopt an ordinance extending the Single Family Residential (SFR) rate at the current rate of$294 per year. If the rates are not adjusted to cover inflationary increases and maintenance costs, cuts to projects and programs resulting in service level reduction may be required. Therefore, the proposed cost adjustments are calculated to align with inflation and do not exceed the cost of providing sewerage services. Additionally, most of the Sanitation District's revenues are user fees listed on and collected through the County property tax bill as provided in the Sanitation District's ordinance. As the Sanitation District receives payments through eight apportionments from December through June, the Sanitation District holds funds in reserve specifically to pay operating and capital expenses during the "dry' period (July-November). Reducing reserve levels to the minimum level would leave no funds to address payment of expenditures during the "dry' period. It is estimated that without the proposed five-year rate adjustments proposed by staff, 13 percent annual increases for the following four years would be required for reserve levels to be in compliance with the Board-approved policy and to ensure that the Sanitation District can maintain its level of service and meet its obligations. Page 3 of 5 Alternatives Using Reserves By policy, operational need and legal requirement, the Sanitation District maintains a specified level of reserves. Staff believes that, while the reduction in reserves is warranted at this time, substantial reductions could result in reserve levels below that required by Sanitation District Reserve Policy, which will require Board action to revise it, and could result in cuts to projects and programs as well as service level reduction. To address the consideration of using those reserves to avoid any rate adjustment, staff has identified different alternatives that use OSCD reserves: 1) Proposed Rate Adjustment Schedule This proposed schedule includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4%. Rates would increase by $14 in the first year and $8 each of the next four years. This schedule has been presented to the Committees and the Board. Under this plan, the Capital Improvement Program (CIP) is funded at its current recommended levels and service levels are maintained. Reserves will be reduced from $600 million to $495 million at the end of the five years. 1a) Equal Annual Five-Year Rate Adjustment This alternative rate schedule involves annual rate increases of 2.4% for each of the five years, effective July 1, 2013. Under this plan, the Capital Improvement Program (CIP) is funded at its current recommended levels and service levels are maintained. However, reserves are reduced from $600 million to $455 million at the end of the five years, dropping to a level that has been reached only twice since 2000, which may, in turn, affect service levels in the long run. This reserve amount would also be below the figure determined by the Sanitation District's current Reserve Policy. The Board would need to take action to change the policy. After the proposed five years, annual 4.5% rate increases would be required for the next four years to return reserves to the approved-policy levels and to ensure continuity in the level of service and the Sanitation District's AAA bond rating. 2a) No Rate Increases during the Five Year Period —Subsequent Rate Adjustment If no rate increase is adopted, and the Board elects to extend the existing rate for the next five years, the Sanitation District will reach the reserve level required by bond covenants and other requirements at the end of the five-year period, which is below the Reserve Policy. By the end of the third year, reserves would drop below the Reserve Policy to pre-2000 levels. By the end of the fifth year, annual 6% rate increases would be required for the next four years just to maintain mandatory minimum reserve levels required by bond covenants and other requirements. OCSD would effectively have zero operational reserves. There would be no funds for the "dry" period between apportionments from the County and no funds for a "Catastrophic Loss". Annual 13% rate increases would be required for the next four years to return reserves to the approved Reserve Policy levels and to ensure continuity in the level of service and the Sanitation District's AAA bond rating. Page 4 of 5 2b) No Rate Increase during the Five Year Period —Service Level Reduction If no rate increase is adopted, and the Board elects to extend the existing rate for the next five years, to delay the reserve level dropping below the level required by bond covenants and other requirements, the Sanitation District would have to cut $100 million in projects out of the Capital Improvement Program and increase rates by 2.5% for four years after the initial five-year rate program. However, this increase would only maintain the reserve level required by bond covenants and other requirements, which is below the Reserve Policy. OCSD would effectively have zero operational reserves. There would be no funds for the "dry' period between apportionments from the County and no funds for a "Catastrophic Loss". Annual 9.5% rate increases would be required for the next four years to return reserves to the approved Reserve Policy levels and to maintain the Sanitation District's AAA bond rating. Based on the review of the above-stated options, staff recommends the proposed rate adjustment schedule under Option 1 to ensure that the Sanitation District (i) continues to provide sewer services to existing properties at the same or improved level; (ii) maintains sufficient reserves consistent with the Reserve Policy; and (iii) avoids more drastic increases in the future. Alternatives 1a, 2a and 21b are not recommended. Each of these other alternatives would result in reserve levels dropping below the level designated in the Board-approved Reserve Policy and could cause impacts to operations and services. More important, the delay in adopting the proposed gradual increases that align with inflation will result in large future rate increases, and also, there would be insufficient funds to address catastrophic loss, "dry' revenue periods, or other unanticipated expenses. These low reserve levels would also likely result in a reduction of the Sanitation District's AAA bond rating and a reduction in interest earnings. Schedule for Implementing Sewer Service Fee Increase Notice of Public Hearing Mailed February 8, 2013 1s' Reading of Fee Ordinance February 27, 2013 Notice of Public Hearing 1st Publication March 11, 2013 Notice of Public Hearing 2nd Publication March 18, 2013 2ed Reading, Public Hearing, &Adoption of Fee Ordinance March 27, 2013 Ordinance is effective in 30 days, or in the new fiscal year July 1, 2013 Fees per parcel due to County Auditor-Controller August 12, 2013 ATTACHMENTS The following attachment(s)maybe viewed on-line at the OCSD websile(www.ocsd.com) with the complete agenda package: • Summary of Proposed Rate Schedules • Agency Rate Comparisons • Regional Sewer Service Charge Ordinance No. OCSD-41 Page 5 of 5 Return to Agenda Report SUMMARY OF PROPOSED RATE SCHEDULES Option 1 Option 1a Option 2a Option 2b Rate Change 4.8%in Year 1 2.4%in Year 1 0%for 5 Years 0%for 5 Years 4 years @ 2.4% 4 years @ 2.4% Cut Reserves Cut projects CIP Funded Funded Funded $100M in Reductions Unrestricted Reduced by$120M Reduced by$160M Reduced by$270M Reduced by$160M Reserves (27% Reduction) (36% Reduction) (61% Reduction) (36% Reduction) Subsequent rate increases needed 2.4% 4 S% 13.0% 9.S% to maintain Reserve Policy Recommended Not Recommended Not Recommended Not Recommended Staff Recommendation Blends modest rate Results in higher future Results in large future Results in large future adjustment, cost rate increases and rate increases and no rate increases, cuts to efficiencies, reduced reduced reserves for unrestricted reserves projects, large and no reserves, and no new catastrophic loss or for catastrophic loss or unrestricted reserves debt issuances. unanticipated expenses. unanticipated expenses. for catastrophic loss or unanticipated expenses. May impact AAA Bond Would likely impact Rating AAA bond Rating Would likely impact AAA Bond Rating Return to Agenda Report Comparison of SFR Rates (July 2012) $700 668 $600 n $500 T $ $400 N o $300 $294 0 $200 $149 $0 VHtV AM,A i � � N We're here e 90 �WZ ' you. ORDINANCE NO. OCSD41 Return to Agenda Report AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING AND RESTATING ORDINANCE NO. OCSD-35 CONCERNING SANITARY SEWER SERVICE CHARGES AND REPEALING ORDINANCE NO. OCSD-35. ADOPTING REVISED TABLE A RE RESIDENTIAL USER FEES AND REVISED TABLE B PROPERTY USE CLASSIFICATIONS WHEREAS, The former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 et seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998; and WHEREAS, As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District ("District"), came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts; and WHEREAS, The District, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including: a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive 20-year Master Plan of Capital Facilities, entitled "1999 Strategic Plan" ("Master Plan"). WHEREAS, The Master Plan, setting forth and identifying the required future development of District Facilities, including financial projections for providing sewer service to all properties within the District's service area, was approved and adopted by the Board of Directors on October 27, 1999 by OCSD Resolution No. 99-21, with updates adopted in 2002 and 2006, following a noticed public hearing, and in compliance with the provisions of the California Constitution and all other applicable laws; and WHEREAS, The Board of Directors approved the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, which resulted in the development of a Capital Improvement Program that provides for the implementation of secondary W S&S-BRH:pj:201660:04/20/05 1 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities; and WHEREAS, pursuant to Health and Safety Code section 5471, the Board of Directors is authorized to prescribe, revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished by the District in connection with its sewerage system; and WHEREAS, on February 27, 2008, the Board of Directors of the District adopted Ordinance No. OCSD-35, establishing annual Sanitary Sewer Service Charges; and WHEREAS, on January 23, 2013, the Board of Directors was presented with and has reviewed the District's Wastewater Revenue and Rate Study dated January 2013 prepared by Carollo Engineers, on file with the District, which independently found that the proposed increases in the regional sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure; and WHEREAS, for purposes of ensuring that the District has sufficient revenues and reserves to meet the District's obligations and operations, it is the intent, by the adoption of this Ordinance, to establish annual regional sewer service charges; and WHEREAS, Section 21080(b)(8) of the Public Resources Code states that "the establishment, modification, structuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of (A) meeting operating expenses, including employee wage rates and fringe benefits, (B) purchasing or leasing supplies, equipment, or materials, (C) meeting financial reserve needs and requirements, (D) obtaining funds for capital projects necessary to maintain service within existing service areas, or (E) obtaining funds necessary to maintain those intracity transfers as are authorized by city charter' is not subject to CEQA; and WHEREAS, Section 15273(a) of the California Code of Regulations states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of: (1) Meeting operating expenses, including employee wage rates and fringe benefits, (2) Purchasing or leasing supplies equipment, or materials, (3) Meeting financial reserve needs and requirements, (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter; and WHEREAS, pursuant to Article XIIID, section 6, of the California Constitution, Notice of the Public Hearing regarding the proposed regional sewer WSBS-BRH:pj:201660:04/20/05 2 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report service charges, which included the date, time, and location of the public hearing, as well as the charges, fees, and rates proposed for imposition, was mailed no less than 45 days prior to the public hearing by the District to the record owner of each identified parcel upon which the charge is proposed for imposition; and WHEREAS, pursuant to Health and Safety Code sections 4766 and 5473, the Board of Directors is authorized to elect to have the proposed regional sewer service charges collected on the tax roll in the same manner, by the same persons, and at the same time as, together with and not separately from, its general taxes; and WHEREAS, pursuant to Health and Safety Code section 5473.1, on March 11, 2013, and again on March 18, 2013, Notice of the Public Hearing regarding the proposed regional sewer services charges and the election to have such charges collected on the tax role, which included the date, time and location of the hearing, was published in The Orange County Register, a newspaper of general circulation within the District published in the county where the District is located; and WHEREAS, on Wednesday, March 27, 2013 at 6:30 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing in order to receive and consider comments, including objections, concerning the proposed regional sewer service charges and the election to have such charges collected on the tax roll; and WHEREAS, the Board of Directors has carefully reviewed the Wastewater Revenue and Rate Study dated January 2013, and has considered the public and Board comments, and the oral and written presentation by the District's staff and consultants made at the March 27, 2013 public hearing, as well as any written public comments. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Adopt Regional Sewer Service Charges TABLE OF CONTENTS ARTICLE I: FINDINGS Section 1.01 Findings ARTICLE II: SEWER SERVICE CHARGES Section 2.01. Purpose and Scope Section 2.02. Annual Sewer Service Charge Section 2.03. A. Exemptions B. Application for Rebate WSBS-BRH:pj:201660:04/20/05 3 OCSD.ADB 4/2W07 910662.1 C. Application for Refund Return to Agenda Report D. Limitation Period E. Determination F. Administrative Fee Section 2.04. Annual Charge Based on Fiscal Year Section 2.05. Method of Collection Section 2.06. Credit for Industrial Permittees Section 2.07. Open-Air Facilities Table A Annual Sewer Service Charges for Residential Users Table B Annual Sewer Service Charges Property Use Classifications ARTICLE III: MISCELLANEOUS Section 3.01. Application of Ordinance Section 3.02. Exceptions Section 3.03. Out of Area Sewer Service Agreements ARTICLE I FINDINGS Section 1.01. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. The Board of Directors hereby finds: A. That the regional sewer service charges and the annual adjustments to the regional sewer service charges (collectively referred hereafter as the "Sewer Service Charges") as established herein is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. B. That the revenues derived under the provisions of this Ordinance will be used for the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District, together with costs of administration and provisions for necessary reserves. C. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the Capital Improvement Plan, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facilities' needs are expected to be realized in each year as described in the reports. D. That the owners or occupants of properties, upon which all fees and charges established by this Ordinance are levied, discharge wastewater WSBS-BRH:pj:201660:04/20/05 4 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. F. That the Sewer Service Charges established by this Ordinance are reasonably related to, and do not exceed the cost of providing sewer services, and shall herein be levied on each parcel to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for different types of uses. G. That the basis for the respective charge is not based on potential or future use, but rather, is based upon the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service for actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. H. That the revenues derived from the Sewer Service Charges shall not be used for any purpose other than that for which the charge is imposed. I. That the Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the proportional cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. J. That the Sewer Service Charges adopted herein are established upon a reasonable basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. K. That the Sewer Service Charges adopted herein will not result in an expansion of facilities to provide for growth within outside the existing service area. The adoption of these Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. L. That the Board of Directors is adopting the Sewer Service Charges herein to (i) meet operating expenses, (ii) purchase or lease supplies, equipment, or materials, (iii) meet financial reserve needs and requirements, and (iv) obtain funds for capital projects necessary to maintain service within existing service areas. Therefore, the Board finds and determines, based upon substantial evidence, that the establishment of the Sewer Service Charges are statutorily exempt from CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273(a) of the California Code of Regulations. WSBS-BRH:pj:201660:04/20/05 5 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report M. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. ARTICLE II SEWER SERVICE CHARGES Section 2.01. Purpose and Scope. The purpose of this Ordinance is to establish Sewer Service Charges required to be paid by property owners for the services and facilities furnished by the District in connection with its sanitation treatment works and sewage collection system. Revenues derived under the provisions of this Ordinance shall be used for (1) the acquisition, construction, reconstruction, maintenance, and operation of the wastewater collection, treatment and disposal facilities of the District, (ii) to repay principal and interest on debt instruments, or (iii) to repay federal and state loans issued for the construction and reconstruction of said sewerage facilities, together with costs of administration and provisions for necessary reserves. Section 2.02. Annual Sewer Service Charge. Commencing with the effective date of this Ordinance, the owner of each parcel of real property located within the District which is improved with structures designed for residential, commercial, or industrial use and which, at the request of the owner or the owner's predecessor-in-interest, is connected to the District's sewerage system, shall pay an annual Sewer Service Charge based on the respective class of users, in the sum or sums, as set forth in Tables A and B of this Ordinance, below, and incorporated by reference herein. The annual Sewer Service Charges for residential users are set forth in Table A. The applicable single family residential rate shown in Table A is multiplied by the applicable percentage figure shown on Table B with respect to the particular use classification to arrive at the annual Sewer Service Charge rate per 1,000 square feet or per unit. The annual Sewer Service Charges are dependent upon the respective classifications of property use, determined by reference to Table B. Section 2.03. A. Exemptions. It is the intent of the District that the legal owner(s) of parcels of real property, otherwise subject to the levy and payment of the Sewer Service Charges, as prescribed herein, be relieved, in whole or in part, from the payment of said charges, in certain circumstances and under conditions prescribed herein, and be entitled to either a rebate or a refund with respect to charges paid, as more specifically set forth in Subparagraphs 2.03E and 2.03C below, provided an inequity is established or a billing error is proven, as specified in Subparagraphs 2.03E or 2.03C. B. Application for Rebate. Any property owner, or legally recognized authorized representative of the property owner, may apply to the District for a rebate of Sewer Service Charges paid to the District by establishing that an unfair valuation of the property has been made by the District. An applicant for a rebate must establish, by proof satisfactory to the General Manager of the District, or his/her designee, that an inequity exists WSBS-BRH:pj:201660:04/20/05 6 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report between the amount of the charge paid and the amount of wastewater discharged to the District's system, resulting in an unfair valuation. Satisfactory proof shall establish that either: (1) The principal water use is agricultural or horticultural; or (2) The property is devoted to any other use wherein the amount of wastewater discharged to the District's system is significantly less on a regular basis than the amount that would normally be expected to be discharged by the class of property in question. Satisfactory proof shall include, but not be limited to, documentation showing actual water usage for each billing cycle during the entire period for which the rebate is sought. The amount of any rebate shall not reduce the charge payable by any property owner, whose property is connected to the District's system, to less than the single family residential charge shown on the applicable Table attached hereto. C. AmAcation for Refund. Any property owner (as used herein, includes any person who paid the sewer service charges), or legally recognized authorized representative of the property owner, may apply to the District for a refund of Sewer Service Charges paid to the District by establishing that the amount paid was pursuant to an error in the amount billed or the amount paid. The applicant for a refund must submit proof satisfactory to the General Manager of the District, or his/her designee, that a billing error has been made by the District, or the County Tax Collector. Such proof shall include, but not be limited to, proof that: (1) The owner's parcel of property is not connected to the District's system; or (2) The property has not been classified in the proper property use classification code; or (3) A clerical error has been made. D. Limitations Period. Applications for refunds shall be deemed to be governed by the provisions of California Revenue & Taxation Code Sections 5096 and 5097. Applications for rebates shall be deemed a claim and be governed by the provisions of California Government Code Sections 935 at seq., and shall be presented to the District as provided in the Government Tort Claims Act, Government Code Sections 915 at seq., not later than four (4) years after the submission of the roll to the County Auditor/Controller, and the claim for rebate may only be made with respect to amounts paid or payable under such property tax bill. A claim for rebate is not deemed a claim for refund, and California Revenue & Taxation Code Sections 5096 and 5097 are not applicable. WS&S-BRH:pj:201660:04/20/05 7 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report E. Determination. All applications for rebates or refunds of the Sewer Service Charge will be determined by the General Manager of the District, or his/her designee, who, based on the submitted proof, may grant a full or partial rebate or refund. F. Administrative Fee. At the time of filing the application for rebate or refund, the property owner shall pay District an administrative fee for the processing of such application. The amount of the fee shall be equal to the total of all fees and charges imposed on the District by any other public entity, such as the Orange County Tax Collector, the Orange County Auditor, or the Orange County Recorder, in connection with the rebate or refund. Section 2.04. Annual Charge Based on Fiscal Year. The Sewer Service Charges established by this Ordinance shall be effective as of July 1 of each year, as set forth in Tables A and B, attached hereto, for the District's fiscal year, and shall remain in effect until such time as the rates adopted herein are changed by District Ordinance. There shall be no proration of such charges in any fiscal year. Section 2.05. Method of Collection. A. Pursuant to the authority granted by California Health & Safety Code Sections 4766 and 5473, and except as otherwise provided in Subparagraph 2.056 below, all Sewer Service Charges established herein shall be collected on the County Tax Roll in the same manner, by the same persons, and at the same time as, together with, and not separately from, its general taxes. The County Tax Collector is authorized and hereby ordered to make said collections in accordance with the terms and conditions of agreements between the County of Orange and the District. B. In the event District determines that, due to billing or payment error, or to inequity in the amount billed, a property owner (or person who paid the tax) has underpaid annual Sewer Service Charges payable to District, District, within four (4) years after the date of mailing of the tax bill, may: (1) collect the amount of any deficiency directly on the County Tax Roll; (2) off-set the amount of any deficiency against any amounts that District determines is owing, by District, to the property owner, as a rebate or refund under this Ordinance; or (3) submit, directly to the property owner, a bill for the amount of any deficiency, which shall be due and payable within thirty (30) days of the invoice date and which, if not paid, shall become a lien on said property. Section 2.06. Credit for Industrial Permittees. A credit shall be allowed to all dischargers permitted pursuant to Article 3 of District Ordinance No. OCSD-40, as amended, in an amount equal to the annual Sewer Service Charge established by Section 2.02 of this Ordinance. WS&S-BRH:pj:201660:04/20/05 8 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report Section 2.07 Open-Air Facilities. Sewer Service Charges for open- air facilities will be based on annual attendance records. Open-Air facilities will pay a rate per million gallons based upon the related sewage flow, Biochemical Oxygen Demand ('BOD") and Suspended Solids ("SS') charge for single family residences. The usage per attendee will be 15 gallons. WSBS-BRH:pj:201660:04/20/05 g OCSD.ADB 4/2W07 910662.1 Return to Agenda Report TABLE A ANNUAL SEWER SERVICE CHARGES RESIDENTIAL USERS FISCAL YEAR 2013-14 2014-15 2015-16 2016-17 2017-18 SFR* $308.00 $316.00 $323.00 $331.00 $339.00 MFR $215.60 $221.20 $226.10 $231.70 $237.30 SFR = SINGLE FAMILY RESIDENTIAL MFR = MULTI FAMILY RESIDENTIAL * The SFR fee is the minimum sewer service charge any user must pay. All properties located within Revenue Area No. 14 pay no annual sewer service charges. District costs relating to providing service to these properties are billed by the District directly to the Irvine Ranch Water District, the local agency providing the local sewer service. W S&S-BRH:pj:201660:04/20/05 10 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report TABLE B ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1.000 SF or Unit 1 Vacant Land Parcel 0% 5 Common Area Parcel 0% 6 "Hold" Parcel 0% 8 Equivalent to Vacant 0% 121 Parcel of Minimal or No Value 0% 122 Subsurface Parcels 0% 124 Oil/Mineral Rights 0% 125 Mineral Rights Equipment 0% 126 Vacant Comm. Area-IMP Alloc. 0% 201 Homeowners Exemption AddT 0% 666 Unassigned Vacant 0% 777 Septic Tank Property 0% 112 Steel Building 7% 113 Mini-Warehouse 7% 58 Nurseries (Plants) 10% 100 Drive-In Theater 10% 44 Lumber/Constr. Material Yard 17% 71 Parking Garage 17% 72 Paved Parking Lot 17% 110 Warehouse—Single Tenant 17% 111 Warehouse— Multi Tenant 17% 115 Recreational Vehicle Storage 17% 116 Truck Terminal 17% 33 Church Buildings 20% 94 Department Store 23% 95 Discount Store 23% 96 Unattached Single Store 23% 97 Strip Store 23% 74 Recreational Vehicle Park 27% 36 Financial Buildings 27% 40 Health Club 29% 68 High Rise Office 30% 225 United States Post Office 35% 21 Automobile Dealership 41% 22 Auto Repair Shop 41% 23 Automotive Service 41% 24 Used Car Lot 41% 39 Golf Course 41% 57 Motorcycle/Small Vehicle Building 41% 83 Automotive Service Station 41% W S&S-BRH:pj:201660:04/20/05 11 OCSD-ADB 4/25/07 910662.1 TABLE B (CONTINUED) Return to Agenda Report ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 84 Marine Service Station 41% 86 Combin.-Service Station/Convenience 41% 65 Single Office Bldgs. to 3 Stories 41% 66 Small Office Center 41% 67 Office Complex 41% 69 Converted Residence to Office 41% 7 Mobile Home 50% 55 Mobile Home Park 50% 107 Light Industrial—Single Tenant 50% 108 Light Industrial—Multi Tenant 50% 109 Research and Development 50% 114 Industrial Park 50% 37 Fraternal Buildings 51% 101 Unattached Theater 51% 26 Airport and Related Buildings 53% 45 Marinas 53% 88 Low Flow Center 53% 3 Two or More Residences 70% 10 Duplex Only 70% 11 Triplex Only 70% 12 04-Units Only 70% 13 5 to 16 Units 70% 14 17 to 25 Units 70% 15 26 to 40 Units Only 70% 16 41-99 Units Only 70% 17 100 or More Units 70% 18 Developed with a Mix of Forms 70% 63 Low Rise Retirement Building 70% 64 High Rise Retirement Building 70% 56 Low Demand Hotel/Motel 70% 81 Pre-Schools, Nursery or Care 82% 82 Private Schools 82% 98 Store with Offices or Living Quarter 82% 99 Store with Office Upstairs 82% 118 Governmental Use Vacant/Develop. 82% 19 SFR with 1 or 2 rental units 85% 34 Dormitory 97% 42 Hospital 97% 43 High Demand Hotel/Motel 97% 0 Conversion-C/1, Rural PC 100% 2 One Residence 100% W S&S-BRH:pj:201660:04/20/05 12 OCSD.ADB 4/25/07 910662.1 Return to Agenda Report TABLE B (CONTINUED) ANNUAL SEWER SERVICE CHARGES PROPERTY USE CLASSIFICATIONS Percentage of SFR Assessor Use Code Description Per 1,000 SF or Unit 4 Miscellaneous Improvement 100% 85 Comb. Se". Stn./Restaurant 100% 103 Chemical Tank and Bulk Storage 100% 104 Food Processing Plant 100% 105 Cold Storage Plant 100% 106 Factory 100% 119 Public Utility 100% 120 Water Mutual or Company 100% 888 Conversion-Composite Prop. 100% 32 Cemetery & Related Buildings 101% 38 Funeral Home 101% 60 Nursing Home 102% 61 Convalescent Hospitals 102% 62 Converted Res. Used as Nursing 102% 28 Bowling Alleys 112% 92 Skating Rinks 112% 50 Single Medical Bldgs. to 3 Stories 124% 51 Small Medical Center 124% 52 Medical Center Complex 124% 53 High Rise Medical 124% 54 Converted Residence to Medical 124% 89 Average Flow Center 139% 20 Amusement Parks 144% 35 Entertainment Center 144% 73 Recreation 144% 30 Coin Operated Car Wash 151% 47 Supermarket 151% 48 Convenience Markel 151% 224 Nightclub 200% 90 High Flow Center 226% 76 Restaurant—Low Demand 300% 77 Restaurant—Coffee Shop 600% 78 Restaurant—Dinner House 600% 79 Restaurant—Conversion from SF 600% 29 Conventional Car Wash 796% 223 Laundromat 1,800% NOTE: Multiply the Table A Single Family Residential Rate by the percentage figure above in order to determine the rate per 1,000 square feet for the commercial or industrial user. W S&S-BRH:pj:201660:04/20/05 13 OCSD.ADB 4/25/07 910662.1 ARTICLE III Return to Agenda Report MISCELLANEOUS Section 3.01. Application of Ordinance. The provisions of this Ordinance shall be in addition to (i) the provisions of the District's Wastewater Discharge Regulations for use of District's sewage facilities, including provisions for payment of charges or fees related thereto; (ii) District's ordinance establishing Fees Concerning Annexations of Territory to the District; (iii) District's ordinance establishing Local Sewer Service Fees, where applicable, and (iii) any other District Ordinances and Resolutions not in conflict herewith. Section 3.02. Exceptions. The provisions of this Ordinance shall apply to all owners of properties within the District, including those properties otherwise deemed exempt from payment of taxes or assessments by provisions of the State Constitution or statute, including properties owned by other public agencies or tax-exempt organizations, except as expressly provided herein. Section 3.03 Out of Area Sewer Service Agreements. Pursuant to Health and Safety Code Section 4742.1, the District is empowered to contract for the handling, treatment or disposal by the district of sewage or industrial wastes originating within the district or county or within areas outside of the district or county when, in the judgment of the District Board, it is for the best interest of the district to do so. In exercise of such power, the District may, from time to time, enter into Out-of-Area Sewer Service Agreements. These Out-of-Area Sewer Service Agreements will establish fees and charges relative to the services provided by the District for each individual agreement. Section ll. Severabilitv. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section III. Effective Date. This Ordinance shall take effect July 1, 2013. Section IV. Repeal. Ordinance No. OCSD-35 is repealed in its entirety effective June 30, 2013. Section V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation within 15 days as required by law. W S&S-BRH:pj:201660:04/20/05 14 OCSD.ADB 4/2W07 910662.1 Return to Agenda Report PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: CLERK OF THE BOARD ORANGE COUNTY SANITATION DISTRICT BRADLEY R. HOGIN, GENERAL COUNSEL W S&S-BRH:pj:201660:04/20/05 15 OCSD.ADB 4/2W07 910662.1 ADMINISTRATION COMMITTEE meeting Date T1.1 of Dir. 02/13/13 2/27/13 AGENDA REPORT Item Number Item Number 3 17 Orange County Sanitation District FROM: James D. Ruth, General Manager Lorenzo Tyner, Director of Finance and Administrative Services SUBJECT: PROPOSED FIVE-YEAR INDUSTRIAL SEWER SERVICE CHARGES GENERAL MANAGER'S RECOMMENDATION A. Consider a five year rate schedule for industrial sewer service charges, which includes a 4.8% rate increase effective July 1, 2013, followed by four annual increases of 2.4% B. Motion to read Ordinance No. OCSD-42 by title only and waive reading of said entire Ordinance on February 27, 2013. C. Introduce Ordinance No. OCSD-42, an Ordinance of the Board of Directors of Orange County Sanitation District Amendment Ordinance No. OCSD-40 Concerning Miscellaneous Charges and Fees relating to Industrial Charges and Source Control Permittees; Adopting Revised Table F RE Class I and Class II Permittees and Special Purpose Discharge Permittees: D. Set March 27, 2013, as the date of the Public Hearing to hear protests and for the second reading of the Ordinance No. OCSD42. SUMMARY At the December 2012 Operations and Administration Committee meetings and the December 2012 Board meeting, staff presented a proposed financing plan in support of the Sanitation District's operations. The financing plan addressed the Sanitation District's operating and capital programs for the period covering FY 2013-14 through FY 2020-21. On December 19, 2012, the Board gave direction to staff to issue proposed rate adjustment notices to effected rate payers in compliance with Proposition 218 requirements. In January 2013, the Administration Committee received a Wastewater Revenue and Rate Study completed by Carollo Engineers that included the appropriate allocation of costs between and among pollutants (BOD, SS and Flow), including the basis for allocation of non-assignable costs, maintaining a "net cost of service" rate structure for high industrial dischargers (permittees) that is fair and equitable to all rate payers. The rate study did not note any material functional cost allocation change between BOD, 911135.2 Page 1 of 4 SS, and Flow and found that it would be fair and equitable to increase each of these cost components by the overall rate increase established by the Board. At the January 2013 Board meeting, staff presented the Wastewater Revenue and Rate Study prepared by Carollo Engineering, which found that staffs recommendation to increase the industrial sewer service charges were reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure. The net effect of adopting this financing plan and subsequent five-year rate ordinance will be to increase annually all of the Sanitation District's industrial sewer service charges 4.8 percent effective on July 1, 2013, followed by annual increases of 2.4% for the next four years. The proposed increase provides for equitable and proportionate distribution for the cost of service of operating the Sanitation District's wastewater system. PROPOSED ANNUAL INDUSTRIAL SEWER SERVICE FEE Class I. Class II and Special Purpose Discharger Rates 2013-14 2014-15 2015-16 2016-17 2017-18 FLOW $1,284.74 $1,315.58 $1,347.15 $1,379.48 $1,412.59 BOD $610.67 $625.33 $640.33 $655.70 $671.44 TSS $649.55 $665.14 $681.10 $697.45 $714.19 (*) Flow per Million Gallons (**) BOD per Thousand Pounds (***) SS per Thousand Pounds ADDITIONAL INFORMATION The Board of Directors last adopted a five-year rate plan in 2008 to support its $2.0 billion capital improvement and rehabilitation, refurbishment and replacement program and operational activities. During this period, annual rate increases of ten percent (10%)were required to support larger construction efforts, specifically for the completion of Full Secondary and Groundwater Replenishment System (GWRS) projects. The Sanitation District expects to continue and/or improve its level of service and meet demands on its wastewater system through its Capital Improvement Program (CIP), which has been developed to satisfy anticipated regulatory requirements, increased population, additional treatment requirements, odor control improvements, air-quality protection needs, conservation, energy and other resource-savings considerations. Now that the larger construction projects related to the Sanitation District's implementation of full secondary treatment are complete, the Sanitation District will change its focus to rehabilitation and refurbishment efforts, the general maintenance of assets and ongoing operations. Future CIP projects are focused on (i) major rehabilitation of the existing headworks, primary-treatment, outfall, and solids handling 911135.2 Page 2 of 4 facilities; (ii) rehabilitation and replacement of many of the Sanitation District's outlying pump stations and trunk sewers; and (ii)fund cooperative projects to help cities upgrade their sewer systems. The cost adjustments associated with these efforts are primarily inflationary in nature. As a result, increases at the 10 percent level are no longer required, only increases that align with inflation. The CIP projected costs totals approximately 1.63 billion in 2012 dollars between Fiscal Year 2013/2014 and FY 2020/2021. Of this total, approximately $1.44 billion will be undertaken for the rehabilitation and refurbishment efforts identified above, while $0.19 billion will be undertaken to provide capacity for projected growth. Based on an analysis of the cost-of-service for existing users and an allocation of the costs of the Sanitation District's sewer services to each class or customer in proportion to the demands they place on the system, staff is recommending rate adjustments based on the projected inflationary costs of 4.8 percent effective July 1, 2013, followed by annual increases of 2.4 percent for the next four years. User charges are the primary revenue source of the Sanitation District, and such charges have been adjusted in previous years to generate sufficient cash flow for additional capital improvements and debt-service obligations. The revenues derived from the rate schedule proposed herein will be used to cover the cost of providing and maintaining sewer service to industrial users, and the rate schedule represents a balanced approach that implements a strategy of no additional debt issuances, prudent reduction of reserves and achieving various operational efficiencies of more than $15 million per year through the CIP. The amount of the proposed industrial sewer service charge is based upon the demand of each user on the Sanitation District's wastewater system, and such charge does not exceed the proportional cost of the service attributable to the parcel. In addition to industrial sewer service charges, and other proposed user rate adjustments, existing reserves will be reduced and other cost saving measures will be implemented. Without the use of existing reserves and other cost saving measures, additional rate increases beyond what is proposed would have been required. By policy, operational need and legal requirement, the Sanitation District maintains a specified level of reserves. Staff believes that, while the reduction in reserves is warranted at this time, substantial reductions could result in reserve levels below that required by Sanitation District Reserve Policy, which will require Board action to revise it, and could result in cuts to projects and programs as well as service level reduction. Therefore, staff recommends that the Board adopt the proposed five year rate schedule to ensure that the Sanitation District (i) continues to provide sewer services to existing properties at the same or improved level; (ii) maintains sufficient reserves consistent with the Reserve Policy; and (iii) avoids more drastic increases in the future. 911135.2 Page 3 of 4 ATTACHMENTS The following attachment(s) may be viewed online at the OCSD website (Mmw.ocsd.coml with the complete agenda package: Industrial Rate Increase Ordinance No. OCSD-42 JDR:LT:MW:AB 911135.2 Page 4 of 4 Return to Agenda Report ORDINANCE NO. OCSD42 AN ORDINANCE OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT AMENDING ORDINANCE NO. OCSD-40 CONCERNING MISCELLANEOUS CHARGES AND FEES RELATING TO INDUSTRIAL CHARGES AND SOURCE CONTROL PERMITTEES. ADOPTING REVISED TABLE F RE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES WHEREAS, The former County Sanitation Districts Nos. 1, 2, 3, 5, 6, 7, 11, 13 and 14 of Orange County, California (the "Predecessor Districts"), were nine individual County Sanitation Districts, organized pursuant to the County Sanitation District Act (California Health & Safety Code Section 4700 at seq.). By action of the Board of Directors of the Predecessor Districts, pursuant to specific legislation enacted by the California State Legislature in 1996, an application was submitted to the Orange County Local Agency Formation Commission to legally consolidate the nine Predecessor Districts into one single Sanitation District for all purposes. The application was approved, with an effective date of July 1, 1998; and WHEREAS, As of July 1, 1998, the Predecessor Districts ceased to exist, and one single consolidated County Sanitation District, known as the Orange County Sanitation District ("District"), came into existence in place of the Predecessor Districts. The District was formed to carry on the functions of the Predecessor Districts; and WHEREAS, The District, as part of its maintenance and updating of its Master Plan, undertook a comprehensive evaluation and study of its operational and financial needs for the next 20 years, including: a detailed assessment of all types and categories of users; the demands on the system and capacity needs of the system to provide necessary service to the multiple categories of users; the total costs of the existing and future facilities in the system; and alternate methodologies for establishing fair and equitable charges to connect to and gain access to the system. These comprehensive planning, engineering, and financial studies led to the development of an updated Comprehensive 20-year Master Plan of Capital Facilities, entitled "1999 Strategic Plan" ("Master Plan"). WHEREAS, The Master Plan, setting forth and identifying the required future development of District Facilities, including financial projections for providing sewer service to all properties within the District's service area, was approved and adopted by the Board of Directors on October 27, 1999 by OCSD Resolution No. 99-21, with updates adopted in 2002 and 2006, following a noticed public hearing, and in compliance with the provisions of the California Constitution and all other applicable laws; and 910708.1 1 Return to Agenda Report WHEREAS, The Board of Directors approved the Capital Improvement Program ("CIP") Validation Study for Fiscal year 2003-04 and the Secondary Treatment Peer Review, which resulted in the development of a Capital Improvement Program that provides for the implementation of secondary treatment standards, thereby improving effluent quality in a reasonably short period of time, consistent with the goals and policies of the Board of Directors, the member agencies, and the public, while also providing for the construction of necessary improvements to accommodate projected increased flows and the rehabilitation and refurbishment of existing facilities; and WHEREAS, pursuant to Health and Safety Code section 5471, the Board of Directors is authorized to prescribe, revise and collect fees, tolls, rates, rentals or other charges for services and facilities furnished by the District in connection with its sewerage system; and WHEREAS, On May 26, 2010, the Board of Directors of the District adopted Ordinance No. OCSD40, establishing capital facilities capacity charges, along with miscellaneous charges and fees relating to industrial charges, source control permittees, and wastehaulers; and WHEREAS, on January 23, 2013, the Board of Directors was presented with and has reviewed the District's Wastewater Revenue and Rate Study dated January 2013 prepared by Carollo Engineers, on file with the District, which independently found that the proposed increases in the industrial user charges based on unit costs were appropriate and reasonable based on an evaluation of the District's revenue needs, projected reserve balances and user rate structure; and WHEREAS, for purposes of ensuring that the District has sufficient revenues and reserves to meet the District's obligations and operations, it is the intent, by the adoption of this Ordinance, only to amend Table F of Ordinance No. OCSD40 to establish new industrial user charges; and WHEREAS, Section 21080(b)(8) of the Public Resources Code states that "the establishment, modification, structuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of (A) meeting operating expenses, including employee wage rates and fringe benefits, (B) purchasing or leasing supplies, equipment, or materials, (C) meeting financial reserve needs and requirements, (D) obtaining funds for capital projects necessary to maintain service within existing service areas, or (E) obtaining funds necessary to maintain those intracity transfers as are authorized by city charter" is not subject to CEQA; and WHEREAS, Section 15273(a) of the California Code of Regulations states that "CEQA does not apply to the establishment, modification, structuring, restructuring, or approval of rates, tolls, fares, or other charges by public agencies which the public agency finds are for the purpose of: (1) Meeting operating expenses, including 910708.1 2 Return to Agenda Report employee wage rates and fringe benefits, (2) Purchasing or leasing supplies equipment, or materials, (3) Meeting financial reserve needs and requirements, (4) Obtaining funds for capital projects, necessary to maintain service within existing service areas, or (5) Obtaining funds necessary to maintain such intra-city transfers as are authorized by city charter"; and WHEREAS, Notice of the Public Hearing regarding the proposed industrial user charges, which included the date, time, and location of the public hearing, as well as the charges, fees, and rates proposed for imposition, was mailed no less than 45 days prior to the public hearing by the District to the each industrial permitee upon which the charge is proposed for imposition; and WHEREAS, on Wednesday, March 27, 2013 at 6:30 P.M., in the District's Boardroom on the first floor of its Administration Building located at 10844 Ellis Avenue, Fountain Valley, California, the District held a properly noticed public hearing in order to receive and consider comments, including objections, concerning the proposed industrial user; and WHEREAS, the Board of Directors has carefully reviewed the Wastewater Revenue and Rate Study dated January 2013, and has considered the public and Board comments, and the oral and written presentation by the District's staff and consultants made at the March 27, 2013 public hearing, as well as any written public comments. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby ORDAIN: Section I. Findings. Based upon substantial evidence presented to the Board of Directors, the Board of Directors of District hereby adopts the following Findings supporting the amounts of charges and fees adopted pursuant to this Ordinance. The Board of Directors hereby finds: A. That the industrial user charges and the annual adjustments to the industrial user charges (collectively referred hereafter as the "Sewer Service Charges") as established in Table F herein is appropriate and ensures adequate revenues to finance the improvements and programs necessary to implement secondary treatment standards, accommodate increased flows, rehabilitate and refurbish existing facilities, and retire any necessary or prudent debt incurred to finance such improvements in a reasonable manner and over a reasonable period of time. B. That the revenues derived under the provisions of this Ordinance will be used for (i) the acquisition, construction, reconstruction, maintenance, and operation of the sewage collection, wastewater treatment and disposal facilities of the District, (ii) to repay principal and interest on debt instruments, (iii) to repay federal and state loans issued for the construction and reconstruction of said sewerage 910708.1 3 Return to Agenda Report facilities, together with costs of administration and provisions for necessary reserves, and (iv) to assist in the payment of costs to provide all regulatory administration and laboratory services related to the industrial dischargers and source control permittees of the OCSD's systems. C. That the financial requirements of the District, as shown in reports prepared by Staff and Consultants relating to the Master Plan and the Capital Improvement Plan, are based on current, reliable information, and further, that data relating to population projections, wastewater flow, and capital facilities' needs are expected to be realized in each year as described in the reports. D. That the owners of properties, upon which all fees and charges established by this Ordinance are levied, discharge wastewater to the District's collection, treatment and disposal facilities. The costs of operating and maintaining said facilities have constantly increased due in part to increased regulatory requirements to upgrade the treatment process. E. That the need for upgraded and improved treatment of all wastewater collection, treatment and disposal facilities is required to protect the public health and safety, and to preserve the environment without damage. F. That the Sewer Service Charges established by this Ordinance are reasonably related to, and do not exceed the cost of providing sewer services, and shall herein be levied on each parcel to allow the District to recover the reasonable costs to provide a service to individual properties which have been improved for different types of uses. G. That the basis for the respective charge is not based on potential or future use, but rather, is based upon the request of the owner of property or a structure thereon, for the benefit of him/her/itself, or the occupants of the property, to receive a service for actual use, consumption, and disposal of water to the District's system in lieu of disposal by other means. H. That the revenues derived from the Sewer Service Charges shall not be used for any purpose other than that for which the charge is imposed. I. That the Sewer Service Charges established by this Ordinance are not imposed as a condition of approval of a development project, as defined in California Government Code Section 66001, and do not exceed the proportional cost to provide the sewer service for which the fee is levied, as provided in Government Code Sections 66013 and 66016 and California Constitution Article XIIID. J. That the Sewer Service Charges established herein are not an incident of property ownership, are not an assessment, nor are they a property- related service having a direct relationship to property ownership. Accordingly, the provisions of California Constitution Article XIIID are not applicable. 910708.1 4 Return to Agenda Report K. That the Sewer Service Charges adopted herein are established upon a reasonable basis between the fees charged each customer and the service and facilities provided to each customer of the District, a portion of which are necessary to replace the loss of ad valorem property taxes to the State General Fund as a result of state legislative action on September 2, 1992, and in subsequent years. L. That the Sewer Service Charges adopted herein will not result in an expansion of facilities to provide for growth within outside the existing service area. The adoption of these Sewer Service Charges will not result in any specific project, nor result in a direct physical change in the environment. M. That the District is required by federal and state law, including the Federal Water Pollution Control Act, also known as the Federal Clean Water Act (33 U.S.C. 1251, at seq.), the General Pretreatment Regulations (40 C.F.R. 403), and the Porter-Cologne Water Quality Control Act (California Water Code Sections 13000 at seq.) to implement and enforce a program for the regulation of wastewater discharges to the OCSD's sewers. N. That the District is required by federal, state and local law, to meet applicable standards of treatment plant effluent quality. O. That pursuant to these requirements, the Board of Directors has adopted a separate ordinance establishing Wastewater Discharge Regulations. P. That the District incurs additional costs in conducting non- compliance sampling of those industrial wastewater dischargers who violate the OCSD's Wastewater Discharge Regulations and in administering the industrial and special discharge permit programs. Q. That the ordinance establishing Wastewater Discharge Regulations provides that the Board of Directors is to establish various fees and charges to recover those costs to the District which are made necessary by industrial dischargers who violate the OCSD's Wastewater Discharge Regulations. R. That the Sewer Service Charges hereby established by this Ordinance do not exceed the estimated reasonable costs to the District of industrial discharger or source control use of the District's facilities and for the administration and implementation of permit and fee processing, non-compliance sampling, and related services associated with the OCSD's Source Control Program. S. That the Board of Directors is adopting the Sewer Service Charges herein to (i) meet operating expenses, (ii) purchase or lease supplies, equipment, or materials, (iii) meet financial reserve needs and requirements, and (iv) obtain funds for capital projects necessary to maintain service within existing service areas. Therefore, the Board finds and determines, based upon substantial evidence, that the establishment of the Sewer Service Charges are statutorily exempt from 910708.1 5 Return to Agenda Report CEQA, pursuant to Section 21080(b)(8) of the Public Resources Code and Section 15273(a) of the California Code of Regulations. T. That all fees and charges established herein have been approved by the District's Board of Directors at a noticed public meeting, all in accordance with applicable provisions of law. Section II. Amendment. Table F of Ordinance No. OCSD-40 is hereby deleted, effective June 30, 2013, in its entirety and replaced, effective July 1, 2013, with the following: "TABLE F ANNUAL INDUSTRIAL USER FEE CLASS I AND CLASS II PERMITTEES AND SPECIAL PURPOSE DISCHARGE PERMITTEES CHARGES FOR USE Class I and II Permit User FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18 Flow (*) $ 1,284.74 $ 1,315.58 $1,347.15 $1,379.48 $1,412.59 B.O.D. (**) $ 610.67 $ 625.33 $ 640.33 $ 655.70 $ 671.44 S.S. (***) $ 649.55 $ 665.14 $ 681.10 $ 697.45 $ 714.19 Special Purpose Discharge Permit FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 Flow (*) $ 1,284.74 $ 1,315.58 $ 1,347.15 $1,379.48 $1,412.59 (*) Flow per Million Gallons (**) BOD per Thousand Pounds (***) SS per Thousand Pounds All properties located within Revenue Area No. 14 pay no annual service fees. OCSD costs relating to providing service to these properties are billed by OCSD directly to the Irvine Ranch Water District, the local agency providing the local sewer service." Section III. Effect of Amendment. Except as expressly amended in Section II herein and to the extent they have been expressly superseded herein, no other amendments, changes, or modifications are being made to the remaining portions of Ordinance No. OCSD40. The remaining findings and provisions set forth in 910708.1 6 Return to Agenda Report Ordinance No. OCSD-40, or portions thereof, not superseded herein shall continue in full force and effect. Section IV. Several ty. If any provision of this Ordinance, or the application to any person or circumstances is held invalid by order of Court, the remainder of the Ordinance, or the application of such provision to other persons or other circumstances, shall not be affected. Section V. Effective Date. This Ordinance shall take effect July 1, 2013. Section VI. Repeal. Table F contained in Ordinance No. OCSD-40 is hereby repealed effective June 30, 2013. Section V. Certification and Publication. The Clerk of the Board shall certify to the adoption of this Ordinance, and shall cause a summary to be published in a newspaper of general circulation as required by law. PASSED AND ADOPTED by a vote of not less than two-thirds of the Board of Directors of the Orange County Sanitation District at a Regular Meeting held March 27, 2013. CHAIR, BOARD OF DIRECTORS ORANGE COUNTY SANITATION DISTRICT ATTEST: CLERK OF THE BOARD ORANGE COUNTY SANITATION DISTRICT BRADLEY R. HOGIN, GENERAL COUNSEL 910708.1 7 ADMINISTRATION COMMITTEE Meeting Date TOBA.Or .Dir. 02/13/13 02/27/13 AGENDA REPORT ItemNumber Item Number 4 Nu Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director of Finance &Administrative Services SUBJECT: CONSIDERATION OF BUDGET ASSUMPTIONS AND BUDGET CALENDAR FOR PREPARATION OF THE FY 2013-14 BUDGET UPDATE. GENERAL MANAGER'S RECOMMENDATION Approve the FY 2013-14 budget assumptions and direct staff to incorporate these parameters in preparing the FY 2013-14 budget update. SUMMARY For the budget update process, the Administration Committee establishes the Budget Assumptions and approves the Budget Calendar. Staff will make a brief presentation at the Committee meeting. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION Currently, there are no proposed changes to the District Fiscal Policy. The Fiscal Policy is published in the FY 2012-13 and 2013-14 Budget document (Section 3, Pages 1-8), and is available on the Sanitation District's website. CEQA N/A BUDGET / DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENTS The following attachment(s) are provided in hard copy and may also be viewed on-line at the OCSD website imnomocsd.coml with the complete agenda package: 1. Preliminary Budget Assumptions Highlights (Pages 2-6) 2. Budget Update Calendar (Pages 7-9) JR:LT:MW:jf Page 1 of 9 Return to Agenda Report FY 2013-14 Preliminary Budget Assumptions Economic Assumptions • Inflation for Orange County in FY 2013-14 is projected to be 2.8 percent based on the 2013 projected percentage change in consumer price index obtained from the November 2012 Economic and Business Review report prepared by Chapman University. This approximates the 2.9 percent inflation factor that was used in the FY 2013-14 budget. Revenue Assumptions • Year 1 of the recently proposed five-year Sewer Service Fee Rate Schedule that will be presented to the Board for ratification in April 2013. • A Proposition 218 rate increase notification will be required to be mailed to all Revenue Areas except 14 regarding the new proposed rate schedule. • Staff is proposing a 4.8 percent increase to the single-family residence (SFR) annual rate to $308 in FY 2013-14. • Note that each $1 increase in the SFR rate generates approximately$900,000 per year. • The capital facilities capacity charge (CFCC) fee captures only those infrastructure costs that relate to additional capacity. Other infrastructure costs such as improved treatment, rehabilitation, refurbishment, and replacement, will be supported through user fees. • With the new Facilities Master Plan adopted in December 2009, a new CFCC rate study was completed in April 2010 to ensure that the CFCC fee methodology remains equitable and to confirm that an appropriate share of system costs would be recovered from new development. • Revenues will be budgeted to reflect small growth in Equivalent Dwelling Unit (EDU) connections that have remained flat over the past five years. • Permit user rates for flow, Biochemical Oxygen Demand (BOD) and Total Suspended Solids (TSS) will follow the most recent Rate Study completed in January 2013. • Annexation fees capture both the net current assets and the equivalent property tax allocations totaling $4,235 per acre. • Annexable property in the District's service area sphere is minimal; consequently, no FY 2013-14 income from annexation fees is anticipated. • Property tax revenues of$64,025,000 are proposed to remain unchanged from FY 2012-13. Although an annual increase in Assessed Value of 2% or CPI, whichever is less, is authorized by the state constitution, CPI is expected to remain flat. Assessed valuations are believed to have bottomed out from the most recent economic recession and are anticipated to remain flat through FY 2013-14. • Earnings on the investment of the District's operating cash and reserves will be budgeted at 1.0% of the average cash and investment balance projected for the fiscal year. • No"new money' debt issuance is scheduled for FY 2013-14. Page 2 of 9 Return to Agenda Report FY 2013-14 Preliminary Budget Assumptions Operating Assumptions • Dry weather urban run off up to 4 mgd will continue to be treated at no charge. Above this threshold, there is a charge of$1,440.42 per mgd up to a maximum of 10 mgd permitted. • Operating expenses are expected to be up to $4 million, or 3 percent less than the adopted FY 2013-14 budget of$156,434,870. • All secondary treatment facilities are completed and fully operational. • Average daily flow for FY 2013-14 is projected to be 208 mgd. This projection reflects an expected increase of 2% per year based on increased economic activity and the potential for moderate rainfall. The FY 2013-14 flow projection is 6 mgd above the actual for the first six months of the current year. The final actual flow for FY 2011-12 was 201 mgd. Employee/Staffing Assumptions • Staffing level is expected to remain flat. The total FY 2013-14 authorization level is 627.75 FTEs. • Vacant positions as of 12/31/12 are budgeted at 50 percent of step 1 for the remainder of FY 2012-13 and at 100 percent of step 2 for FY 2013-14. • New positions will be projected at 100 percent of step 1 for FY 2013-14. • A 3% vacancy factor on authorized positions has been budgeted for FY 2013-14. The actual vacancy factor for 2011-12 was 7.65%. This vacancy factor accounts for time spent for recruitment and turnover. • The Memorandum of Understanding (MOU) for the Supervisor and Professional (SPMT) group will expire June 30, 2013. Pending the completion of the negotiation process, no salary adjustments will be included in the budget (neither COLA nor for step increases) for periods beyond the expiration of the current MOU. • The MOUs for both OCEA and Local 501 will expire June 30, 2014. Salary adjustments based on the current MOUs for OCEA and Local 501 include range adjustments of 2.0 percent and 2.5 percent, respectively, as of the first pay period beginning in July of FY 2013- 14. Additionally, employees within OCEA and Local 501 bargaining units not already at the top step will be budgeted to receive a 5.0 percent step/range increases in FY 2013-14. • Pending the completion of the negotiation process, no salary adjustments will be included in the budget (neither for COLA nor for step increases) for periods beyond the expiration of current MOUs. • FY 2013-14 retirement costs for employees enrolled in Orange County Employees Retirement System (OCERS) Plans G and H are estimated at a rate of 31.95 percent, of the employee's based salary, up from 27.47 percent in FY 2012-13. The rates for plan Plans G and H include the District's pickup of 3.5 percent of employees' required contributions. Employees enrolled in OCERS Plan B are estimated at a rate of 30.77 percent of the employee's base salary, up from 26.69 in FY 2012-13. All employees hired on or after January 1, 2013 are enrolled in OCERS Plan U and are estimated at a rate of 24.89 Page 3 of 9 Return to Agenda Report FY 2013-14 Preliminary Budget Assumptions percent. Interns are not enrolled in OCERS so their retirement benefits are calculated at 6.2 percent(FICA rate). • Medical and dental insurances will be budgeted to increase 11 percent and 8 percent, respectively, based on insurance industry trends. The cost for vision care insurance is expected to be unchanged. A moderate but yet to be determined increase for life and disability insurances will be budgeted for FY 2013-14. Materials, Supplies, &Services Assumptions • The proposed operating budget will continue to reflect an emphasis on safety, technical, and management training. In FY 2013-14, the training budget will be based on recent actual costs rather than on a percentage of regular salaries and wages. • An amount equal to half of one percent of the operating materials and supplies budget will be a contingency for prior year re-appropriations. Since the current year's budget lapses on June 30, a contingency is needed in the succeeding budget year for goods or services ordered at the end of one budget year but not delivered until the following year. • An amount equal to one half of one percent of the operating materials and supplies budget will be the General Manager's contingency budget. These funds will be allocated to appropriate line items during the year after requests and justifications for unanticipated needs are approved by the General Manager. • Resource needs for strategic initiatives will be included in the budget. Capital Improvement Program Assumptions • The FY 2013-14 cash flow budget is based on the Validated Capital Improvement Program (CIP) is the target. • The baseline CIP cash flow for FY 2013-14 is$156.3 million. • Continual evaluation of the CIP by the Asset Management Team may result in deferral or reduction of some projects and a resultant increase in O&M repair costs for materials and services, if the net cash flow impact is a decrease. • The FY 2013-14 CIP budget will only increase for critical projects which were not previously identified in the Strategic Plan Update. • It is anticipated that 85% of the FY 2012-13 CIP budget will be expended by June 30, 2013. Debt Financing • The District will issue new debt in the form of COPS as needed to fund the CIP and to maintain reserves. • No additional "new money" debt issuance is scheduled for FY 2013-14. • Debt will only be used for CIP and capital expenses, not for operating expenses. • Capital financing plans over the next five years include no future borrowings. Page 4 of 9 Return to Agenda Report FY 2013-14 Preliminary Budget Assumptions • Borrowing is proposed only for facilities which do not add capacity and that are funded by all users for replacement, rehabilitation, and improved treatment. Reserve Assumptions • The current reserve policy was reviewed by Public Resources Advisory Group and the Board during FY 2003-04. No changes were proposed and direction was given to continue to maintain reserve levels at a level that is adequate to offset exposure to variable rate COPs due to interest rate increases. • The current reserve policy is summarized as follows: ► A cash flow reserve will be established to fund operations, maintenance and certificates of participation expenses for the first half of the fiscal year, prior to receipt of the first installment of the property tax allocation and sewer service user fees which are collected as a separate line item on the property tax bill. The level of this reserve will be established as the sum of an amount equal to six months operations and maintenance expenses and the total of the annual debt (COP) service payments due in August each year. ► An operating contingency reserve will be established to provide for non-recurring expenditures that were not anticipated when the annual budget and sewer service fees were considered and adopted. The level of this reserve will be established at an amount equal to ten percent of the annual operating budget. ► A capital improvement reserve will be maintained to fund annual increments of the capital improvement program. The long-term target is for one half of the capital improvement program to be funded from borrowing and for one half to be funded from current revenues and reserves. With this program in mind, the target level of this reserve has been established at one half of the average annual capital improvement program through the year 2020. ► Catastrophic loss, or self-insurance, reserves will be maintained for property damage including fire, flood and earthquake, for general liability and for workers' compensation. These reserves are intended to work with purchased insurance policies, FEMA disaster reimbursements and State disaster reimbursements. The potential infrastructure loss from a major earthquake has been estimated at $1.3 billion. The level of this reserve has been set to fund the District's non-reimbursed costs, estimated to be$57 million. ► Accumulated capital funds will be set aside for certain speck, short-term capital improvements as the need and availability arise. No A capital replacement/renewal reserve policy has been established to provide thirty percent of the funding to replace or refurbish the current collection, treatment and disposal facilities at the end of their useful economic lives. The FY 2011-12 Asset Management Plan as estimated the current replacement value of the collection facilities to be $3.14 billion and for the treatment and disposal facilities to be $3.12 billion. The initial reserve level has been established at $50 million, which will be augmented by interest earnings and a small portion of the annual sewer user fee, in order to meet projected needs through the year 2030. Page 5 of 9 Return to Agenda Report FY 2013-14 Preliminary Budget Assumptions ► Provisions of the various certificates of participation (COP) issues require debt service reserves to be under the control of the Trustee for that issue. These reserve funds are not available for the general needs of the District and must be maintained at specified levels. The current level of required COP service reserves is projected to be$228.7 million. ► Accumulated funds exceeding the levels specified by District policy will be maintained in a rate stabilization fund. These funds will be applied to future years' needs in order to maintain rates or to moderate annual fluctuations. There is no established target for this reserve. Page 6 of 9 Return to Agenda Report FY 2011-12 Budget Update Calendar Tasks Responsibility Event/Due Date PHASE I—BUDGET PREPARATION Preliminary Budget Assumptions Identified Financial Planning 12/04/12 Preliminary Budget Assumptions Presented to MT Financial Planning 12/06/12 Draft Budget Calendar Presented to MT Financial Planning 12/06/12 CIP—Final Project Submittals to Project Clearinghouse CIP Budget 12/06/12 for Inclusion in New Budget Coordinators Preliminary Budget Assumptions Presented to EMT Financial Planning 12/10/12 Draft Budget Calendar Presented to EMT Financial Planning 12/10/12 CIP—New Project Recommendations to EMT Project Clearinghouse 12/10/12 CIP—Database, Forms& Instruction Manual Developed CIP Process Team 01/07/13 CIP—CIP Database Opened for Input Financial Planning 01/14/13 CIP - Budget Preparation Training CIP Database Financial Planning As needed CIP—New Project"Go/No Go" Decisions EMT 01/14/13 Preparation for Budget Kickoff/Training Session: Financial Planning 01/17/13 • Develop line item worksheets with adopted FY13/14 budget • Prepare/update budget instruction manual Budget Kickoff/Training Session: Financial Planning 01/24/13 • Distribute budget manual update • Conduct budget training session • Describe budget worksheet data required for each division CIP Validation Completed Engineering Planning 1/22/13 Operating Divisional Budgets: New Position Decision Divisional Budget 02/07/13 Packages, Equity Adjustment/ Position Reclassification Coordinators Decision Packages, and Position Upgrade Decision Packages Due to Human Resources (Richard Spencer, Ext. 7164)with copies to Financial Planning (John Ralston, Ext. 7568 Capital Equipment Budget: Vehicle Capital Equipment Divisional Budget 02/07/13 Decision Packages Due to Fleet Services (Chuck Coordinators Forman, Ext. 7867) Computer Equipment Decision Packages Due to Divisional Budget 02/07/13 Information Technology (Rich Castillon, Ext. 7283) Coordinators Budget Assumptions Presented to Admin Committee Financial Management 02/13/13 Mid-Year Financial Report to Admin Committee Financial Management 02/13/13 Page 7 of 9 Return to Agenda Report FY 2011-12 Budget Update Calendar Tasks Responsibility Event/Due Date Division Budget Update Packages Due to Finance: Divisional Budget 02/15/13 • Update 2012-13 projected costs Coordinators • Proposed operating costs for 2013-14 • Operating Budget Expense Detail • Preliminary Contractual Material & Services Form • Capital equipment decision Packages (other than computer and vehicle decision packages which were due on 02107/13) • New program decision packages (Financial Planning will compile this information into packages for use during the budget review process.) Complete the Compilation of the Preliminary Division Financial Planning 02/20/13 Budget Update Packages Mid-Year Financial Report to Board Financial Management 02/27/13 CIP—Project Request with Project Information Entered CIP Budget 03/01/13 in CIP Database Completed Coordinators CIP—New Project Numbers Assigned Engineering Planning 03/01/13 CIP—Completed CIP Budget Delivered to Finance CIP Budget 03/08/13 Coordinators Department Budgets—Update the department text from Department Budget 03/08/13 the Executive Summary: Coordinator o General Manager, pages 20—21 o Human Resources, pages 22—23 o Administrative Services, pages 24—25 o Facilities Support Services, pages 26—27 o Engineering, pages 28-29 o O&M, pages 30—31 PHASE II -BUDGET REVIEW CIP - Review Workshop Financial Planning & 01/11/13 Department Heads CIP - Resource Availability Review Engineering & O&M 01/28/13 Divisional Budgets- Distribution of Preliminary Line Item Financial Planning 02/28/13 Requested Budget Updates to Department Heads and Managers along with Analysis/Questions for Review CIP—Committee Review—CURentCIPPerformance Operations Committee 03/06/13 Review Operating Budget- Budget Review Meetings with Financial Planning & 03/04/13-03/07/13 Finance and Department Representatives Department Representatives Operating Budget— Information on Position Upgrades & Human Resources 03/08/13 Reclassifications Submitted to the General Manager Page 8 of 9 Return to Agenda Report FY 2011-12 Budget Update Calendar Tasks Responsibility Event/Due Date Operating Budget— Recommendations to General Financial Planning 03/11/13 Manager Final Operating Budget—General Manager Review of Financial Planning, GM, 03/14/13-03/19/13 Budget Update Recommendations & Department Heads CIP—General Manager and Designee(s)Approval General Manager 03/21/13 CIP Schedules Through 2020 Completed Financial Planning 04/04/13 PHASE III-BUDGET PRESENTATION CIP—Operations Committee Review of FY 2013-14 Engineering 04/03/13 Budget Operating Budget— Presentation of Preliminary Budget Financial Planning 04/08/13 Update by Division/Department to EMT Operating Budget Update—Overview to Administration Financial Planning 04/10/13 Committee CIP - Final CIP Budget Document Preparation and Financial Planning 04/15/13 Incorporation into Final Budget Document Initial - Proposed Budget Update Finalized Financial Planning 04/22/13 Initial—Proposed 2013-14 Budget Update Presented to CIP— Engineering Ops—05/01/13 Committees Operating — Finance Admin—05/08/13 General Managers Budget Message Completed GM/ Financial Planning 05/08/13 Approval of General Manager's Budget Message General Manager 05/13/13 Final - Proposed Budget Update to Printer Financial Planning 05/16/13 PHASE IV-BUDGET DELIBERATIONS Final Draft- Proposed 2013-14 Budget Update Financial Planning Ops—06/05/13 Presented to Committees Admin—06/12/13 Public Hearing & Board Adoption Board of Directors 06/26/13 PHASE V—DISTRIBUTION OF BUDGET Final line item budget and equipment budgets posted in Financial Planning 07/12/13 H:\ntglobal Page 9 of 9