HomeMy WebLinkAbout09-22-2010 Board Agenda Packet AGENDA
BOARD OF DIRECTORS
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATIVE OFFICE
REGULAR MEETING
September 22, 2010 — 6:30 P.M.
INVOCATION AND PLEDGE OF ALLEGIANCE - (John Anderson — Yorba Linda)
ROLL CALL
PUBLIC COMMENTS
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.
1. Ratifying payment of claims of the District, by roll call vote, as follows:
ALL DISTRICTS 08/15/10 08/31/10
Totals $7,856,272.98 $12,893,258.24
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 to a contract involving 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
contractors/vendors with OCSD. For the specifics of Government Code Section 84308,
please see your Director's Handbook or call the office of General Counsel.
CONSENT CALENDAR
Consideration of motion to approve all agenda items appearing on the Consent
Calendar not specifically removed from same, as follows:
2. Approve the minutes for the regular meeting held on August 25, 2010.
09/22/10
Page 2
STEERING COMMITTEE
3. Order Steering Committee Minutes for the regular meeting held on August 25,
2010 to be filed.
OPERATIONS COMMITTEE
4. Approve the minutes of the September 1 , 2010 Operations Committee meeting.
5. Authorize the General Manager to negotiate Amendment No. 6 to the
Professional Services Agreement with Camp Dresser & McKee, Inc. for
additional design services for the Rehabilitation of Odor Control Facilities,
Project No. J-71-8.
6. a) Approve Plans and Specifications for the P2 Digester Gas Dryer Upgrades,
Project No. FE07-20, on file at the office of the Clerk of the Board;
b) Approve Addenda Nos. 1 and 2 to the plans and specifications;
c) Receive and file bid tabulation and recommendation;
d) Award a construction contract to Minako American Corporation dba Minco
Construction for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, for
an amount not to exceed $897,000; and,
e) Approve a contingency of $89,700 (10%).
ADMINISTRATION COMMITTEE
7. Approve minutes of the September 8, 2010, meeting of the Administration
Committee.
8. Authorize the General Manager to issue Revenue Refunding Certificate
Anticipation Notes, Series 2010B, as one-year fixed-rate obligations, in an
amount not to exceed $167.0 million to replace the $165.9 million Refunding
Certificate Anticipation Notes, Series 2009B maturing on December 1, 2010.
9. Authorize the General Manager to issue up to $157 million in new fixed-rate
Certificates of Participation (COP) debt, in one or more series.
10. Adopt Resolution No. OCSD 10-15, Declaration of Official Intent to reimburse
certain of the District's Capital Reserve Funds for expenditures made in advance
for Fiscal Year 2010-11 Capital Improvement Projects from proceeds of a future
long-term financing.
09/22/10
Page 3
GWRS STEERING COMMITTEE
11. Receive and file minutes of the Joint Groundwater Replenishment System
Steering Committee meeting held on September 13, 2010.
CLOSED SESSION
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, if necessary
12. a. CONFERENCE WITH LEGAL COUNSEL RE. INITIATION OF
LITIGATION (Government Code Section 54956.9(c))
Significant Exposure to Litigation and Potential Litigation That the District
May File
Number of Potential Cases: 2
1) Relating to EnerTech
2) Project No. 5-58, Newport Trunk Sewer and Force Main
b. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code Section 54954.5 (f))
1) Agency Designated Representatives: James D. Ruth, General
Manager; Robert Ghirelli, Assistant General Manager; Lorenzo Tyner,
Director of Finance and Administrative Services; Jeff Reed, Human
Resources and Employee Relations Manager; and Paul Loehr, Human
Resources Supervisor.
2) Employee Organizations: a) Peace Officers Council of California
representing employees in the Professional Group and Supervisor
Group.
09/22/10
Page 4
C. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
(Government Code Section 54957(b)(1))
Title: General Manager
Reconvene in regular session
Consideration of action, if any, on matters considered in closed session
OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA
ITEMS, IF ANY
ADJOURNMENT - The next Board of Directors regular meeting is scheduled for
October 27, 2010, at 6:30 p.m.
09/22/10
Page 5
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda
has been posted in the main lobby of the District's Administrative offices 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 all, of the members of District's Board, are available for
public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California.
Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board for
discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or because
there is a need to take immediate action,which need came to the attention of the Board subsequent to the posting of
agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the
meeting date.
Public Comments: Any member of the public may address the Board of Directors on specific agenda items or
matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for
discussion and remarks may be limited to three minutes.
Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by
the Board of Directors except as authorized by Section 54954.2(b). If you wish to speak, please complete a
Speaker's Form (located at the table outside of the Board Room)and give it to the Clerk of the Board.
Consent Calendar:All matters placed on the Consent Calendar are considered as not requiring discussion or further
explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director,staff
member or member of the public in attendance, there will be no separate discussion of these items. All items on the
Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions
included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular
order of business.
Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair,
state their name, address and designate by number the item to be removed from the Consent Calendar.
The Chair will determine if any items are to be deleted from the Consent Calendar.
Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting
held within five(5)days of this meeting per Government Code Section 54954.2(b)(3).
Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may
be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code
Section 54955(posted within 24 hours).
Accommodations for the Disabled: The Board of Directors Meeting Room is 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)593-7124 at least 72 hours prior to the scheduled meeting. Requests must specify the nature
of the disability and the type of accommodation requested.
NOTICE TO DIRECTORS: To place items on the agenda for the Regular Meeting of the Board of
Directors, items shall be submitted to the Clerk of the Board no later than the close of business 14 days
preceding the Board meeting. The Clerk of the Board shall include on the agenda all items submitted by
Directors, the General Manager and General Counsel and all formal communications.
General Manager James D. Ruth (714)593-7110 iruth(a)ocsd.com
Assistant General Manager Bob Ghirelli (714)593-7400 rghirelliCcDocsd.com
Clerk of the Board Donna Terrones (714)593-7130 dterronesC@ocsd.com
Director of Engineering Jim Herberg (714)593-7300 iherbergC@ocsd.com
Director of Finance and Lorenzo Tyner (714)593-7550 ItynerC@ocsd.com
Admin Services
Director of Facilities Support Nick Arhontes (714)593-7210 narhontes(c�ocsd.com
Services
Director of Operations and Ed Torres (714)593-7080 etorresC@ocsd.com
Maintenance
:...General Counsel.............................................Brad Ho. !n......................................(714)..415-1006......bhogingwss-law.com..................................€
H:\dept\agenda\Board Agendas\2010 Board Agendas\20100922 agenda.docx
SUPPLEMENTAL AGENDA
BOARD OF DIRECTORS
ORANGE COUNTY SANITATION DISTRICT
ADMINISTRATIVE OFFICE
REGULAR MEETING
September 22, 2010 — 6:30 P.M.
Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda
has been posted in the main lobby of the District's Administrative offices 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 all,of the members of District's Board, are available for
public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California.
Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the Board for
discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or because
there is a need to take immediate action, which need came to the attention of the Board subsequent to the posting of
agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the
meeting date.
Public Comments: Any member of the public may address the Board of Directors on specific agenda items or
matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for
discussion and remarks may be limited to three minutes.
Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by
the Board of Directors except as authorized by Section 54954.2(b). If you wish to speak, please complete a
Speaker's Form (located at the table outside of the Board Room)and give it to the Clerk of the Board.
Consent Calendar:All matters placed on the Consent Calendar are considered as not requiring discussion or further
explanation and unless any particular item is requested to be removed from the Consent Calendar by a Director, staff
member or member of the public in attendance,there will be no separate discussion of these items. All items on the
Consent Calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions
included on the consent calendar. All items removed from the Consent Calendar shall be considered in the regular
order of business.
Members of the public who wish to remove an item from the Consent Calendar shall, upon recognition by the Chair,
state their name, address and designate by number the item to be removed from the Consent Calendar.
The Chair will determine if any items are to be deleted from the Consent Calendar.
Items Continued: Items may be continued from this meeting without further notice to a Committee or Board meeting
held within five (5)days of this meeting per Government Code Section 54954.2(b)(3).
Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may
be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code
Section 54955(posted within 24 hours).
Accommodations for the Disabled: The Board of Directors Meeting Room is 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.
Other business and communications or supplemental agenda items, if any.
13. A) Receive and file Addendum No. 1 to the Final Environmental Impact Report
for the Newport Trunk Sewer and Force Mains Replacement Project prepared
by Environmental Science Associates;
Page 2 of 2
B) Approve a project budget increase of $5,506,800 to Newport Sewer and
Force Mains, Bitter Point to Coast Trunk Sewer, Contract No. 5-58, for a total
budget of$31,389,800.
C) Adopt Resolution No. OCSD 10-16, Authorizing Emergency Repairs to the
Santa Ana River Levees and Ratifying the General Manager's Use of
Emergency Purchasing Authority Pursuant to Delegation of Authority
Resolution 07-04 Section 6.03(J), and finding a continuing need to:
1) Negotiate and award a contract to Geo-Solutions, Inc. to provide soil
remediation services for said project, for an amount not to exceed
$2,038,000;
2) Approve a contingency of$407,600 (20%);
3) Negotiate and award a contract to Jamison Engineering Contractors, Inc.
to provide supporting construction services for said project, for an amount not
to exceed $670,000;
4) Approve a contingency of$134,000 (20%);
5) Negotiate and award a professional design services agreement to Black
and Veatch to provide engineering services for said project, for an amount not
to exceed $1,200,000; and,
6) Approve a contingency of$120,000 (10%).
Orange County Sanitation District
MINUTES
BOARD MEETING
August 25, 2010
sANrrAT�o
N� THE 'E
ADMINISTRATIVE OFFICES
10844 ELLIS AVENUE
FOUNTAIN VALLEY, CALIFORNIA 92708-7018
Minutes of Board Meeting
08/25/10
Page 2 of 5
ROLL CALL
A regular meeting of the Board of Directors of the Orange County Sanitation District
was held on August 25, 2010 at 6:30 p.m., in the Administrative Offices. Following
the Pledge of Allegiance and invocation, the roll was called and the Clerk of the
Board reported a quorum present as follows:
ACTIVE DIRECTORS ALTERNATE DIRECTORS
X Larry Crandall, Chair Steve Nagel
Troy Edgar, Vice Chair X Ken Stephens
X John Anderson Jim Winder
X Charles Antos Gordon Shanks
A Tom Beamish Rose Espinoza
X Bill Dalton Andrew Do
X Doug Davert John Nielsen
X Jon Dumitru Denis Bilodeau
X James M. Ferryman Bob Ooten
X Cathy Green Jill Hardy
X Phil Luebben Prakash Narain
X Patsy Marshall Fred Smith
X Roy Moore Ron Garcia
X Joy Neugebauer Al Krippner
X Janet Nguyen VACANT
X Sharon Quirk-Silva Pam Keller
X Brad Reese Bill Mac Aloney
X David Shawver Carol Warren
A Christina Shea Steven Choi
X Harry Sidhu Lucille Kring
X Sal Tinajero David Benavides
X Constance Underhill Scott Nelson
X Mark Waldman Henry Charoen
X Don Webb Nancy Gardner
X John Withers Douglas Reinhart
STAFF MEMBERS PRESENT: Jim Ruth, General Manager; Bob Ghirelli, Assistant
General Manager; Lilia Kovac, Associate Clerk of the Board; Nick Arhontes; Jim
Herberg; Ed Torres; Lorenzo Tyner; Cindi Ambrose; Kim Erickson; Michael Gold;
Norbert Gaia; Laura Maravilla; Jeff Reed; Juanita Skillman; Rob Thompson; Ryal
Wheeler; Paula Zeller.
Minutes of Board Meeting
08/25/10
Page 3 of 5
OTHERS PRESENT: Brad Hogin, General Counsel; Drew Kolosky; Bob Ooten
PUBLIC COMMENTS
There were no public comments.
REPORTS
Board Chair Crandall recognized Director of Engineering, Jim Herberg, who
presented a 20 year service award to Wendy Sevenandt. Assistant General
Manager, Bob Ghirelli, introduced Donna Terrones as the new Clerk of the Board of
Directors. Ms. Terrones is scheduled to start August 30th in her new position.
Chair Crandall, reported he had attended the CASA Conference in Monterrey, and
reviewed the meeting schedule for September.
General Manager, Jim Ruth, recognized Human Resources Specialist, Kim Erickson,
who briefly presented the enhanced 457(b) Deferred Compensation Plan. It was
reported that OCSD received two leadership awards from the National Association of
Government Defined Contribution Administrators for its successful Plan Design and
Administration, and Effective Communication. Mr. Ruth also presented an overview of
the strategic plan "Beyond 2012," which is designed to realign current resources to
match the future operational needs of the Sanitation District. Mr. Ruth also presented
the year's Annual Report brochure highlighting OCSD's accomplishments.
RATIFICATION OF PAYMENT OF CLAIMS
1. MOVED, SECONDED AND DULY CARRIED: Ratify payment of claims, as
set forth on Exhibits "A" and "B", attached hereto and made a part of these
minutes.
ALL DISTRICTS 07/15/10 07/31/10
Totals $12,468,358.77 $52,292,800.07
Director Dumitru abstained from discussion and voting on warrant numbers 32017,
32021, and 32379. Directors Nguyen, Sidhu and Stephens abstained from
discussion and voting on all warrants. Abstentions were pursuant to California
Government Code Section 84308.
Minutes of Board Meeting
08/25/10
Page 4 of 5
CONSENT CALENDAR
2. MOVED, SECONDED AND DULY CARRIED: Approve the minutes for the
regular meeting held on July 28, 2010.
3. MOVED, SECONDED AND DULY CARRIED: Authorize the General Manager
to negotiate and subsequently approve the cancellation of a Construction
Contract with Engineering/Remediation Resources Group, Inc. for P1 Outfall
Pipeline Disconnects at Scrubber Overflow, Project No. FE03-42, to include all
associated cancellation costs.
STEERING COMMITTEE
Chair Crandall briefly reported that the committee had received a state and federal
update, approved the minutes, and met in closed session on four matters.
4. MOVED, SECONDED AND DULY CARRIED: Order Steering Committee
Minutes for the regular meeting held on July 28, 2010 to be filed.
CLOSED SESSION
CONVENE IN CLOSED SESSION PURSUANT TO GOVERNMENT CODE
SECTION 54956.9(b)(c), and 54954.5(f). The Board convened in closed session at
7:02 p.m. to discuss three matters. Confidential Minutes of the Closed Session held
by the Administration Committee have been prepared in accordance with
Government Code Section 54954.5(f), and are maintained by the Clerk of the Board
in the Official Book of Confidential Minutes of Board and Committee Closed
Meetings.
RECONVENE IN REGULAR SESSION: The Board reconvened in regular session at
7:25 p.m.
General Counsel reported that the Board of Directors took the following action in
closed session:
5a.1 The Board of Directors had approved a settlement with Shea Construction
regarding Headworks Replacement Project, Job No. P2-66, in which Shea
agreed to waive all delay and damage claims relating to the barscreen
construction portion of the project. It was also reported that OCSD had agreed
to extend the construction schedule, and commissioning of the barscreens to
be complete 267 days after original bid date, and final project completion to be
328 days after the original deadline, and there will be no liquidated damages
or extra compensation that will apply to these extensions.
Minutes of Board Meeting
08/25/10
Page 5 of 5
ADJOURNMENT: The Chair declared the meeting adjourned at 7:26 p.m.
Lilia Kovac
Associate Clerk of the Board
Orange County Sanitation District
ADMINISTRATION COMMITTEE Meeting Date To Bd. of Dir.
09/08/10 09/22/10
AGENDA REPORT Item Number Item Number
2 8
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative
Services
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to issue Revenue Refunding Certificate Anticipation
Notes, Series 2010B, as one-year fixed-rate obligations, in an amount not to exceed
$167.0 million to replace the $165.9 million Refunding Certificate Anticipation Notes,
Series 2009B maturing on December 1, 2010.
SUMMARY
In March 2006, the Sanitation District issued $200 million of variable rate Certificates of
Participation (COP), Series 2006 (2006 COPs). From inception through August 2008,
the average variable rate on the 2006 COPs was 2.95% or 0.22% less than the SIFMA
index (weekly market index of tax-exempt variable rate obligations). As the global
financial crisis took hold in the late summer of 2008, there was a significant increase in
the borrowing cost of the Sanitation District, including all municipal borrowers, as the
2006 COPs averaged 4.29% (or 1.56% above the SIFMA index) for the period between
September 2008 and December 2008. A good deal of the increase in variable rate cost
can be attributed to the weakened financial strength of the bank, DEPFA Bank plc,
providing liquidity support on the 2006 COPs.
In December 2008, the Sanitation District proactively refunded the 2006 COPs with the
Refunding COP Series 2008C Certificate Anticipation Notes (the 2008C CANs) to
reduce its exposure to higher variable rate costs. The yield on the 2008C CANs was
0.98% for a one-year period. The issuance of the 2008C CANs allowed the Sanitation
District to redeem the 2006 COPs at an all-in cost of less than 1 .25% and avoid paying
a bank rate of 4.75% which would have been effective starting in January 2009. As the
2008C CANs became due and payable in December 2009, the Sanitation District again
conducted a refunding by issuing the $165.9 million of Revenue Refunding Certificate
Anticipation Notes, Series 2009B (the 2009B CANs). The yield on the 2009B CANs is
0.37% for the one-year period ending December 1, 2010 and the all-in cost is 0.56%.
The interest rate on the 2009B CANs was fixed for only one year and the entire
$165.9 million plus interest becomes due and payable on December 1, 2010. The
Sanitation District is responsible for the repayment of$169.2 million (includes
interest) or the District could choose to refinance the 2009B CANs. Staff does not
recommend the use of$169.2 million of cash to repay the 2009B CANs; therefore,
there are a number of refinancing options available to the District.
Page 1
PRIOR COMMITTEE/BOARD ACTIONS
October 2009: Board adopted Resolution No. OCSD 09-16, Authorizing the
Execution and Delivery by the District of an Installment Purchase Agreement, a
Trust Agreement, and a Continuing Disclosure Agreement in connection with the
execution and delivery of Orange County Sanitation District Revenue Refunding
Certificate Anticipation Notes, Series 2009B, such Notes Evidencing Principal in an
Aggregate Amount of Not to Exceed $181,000,000, Approving an Official Statement
in Connection with the Offering and Sale of such Notes and Authorizing the
Execution of Other Necessary Documents and Related Actions.
November 2008: Board adopted Resolution No. OCSD 08-22, Authorizing the
Execution and Delivery by the District of an Installment Purchase Agreement, a
Trust Agreement, an Escrow Agreement, a Note Purchase Agreement, and a
Continuing Disclosure Agreement in connection with the execution and delivery of
Orange County Sanitation District Refunding Certificates of Participation, Series
2008C (Certificate Anticipation Notes), such Notes Evidencing Principal in an
Aggregate Amount of Not to Exceed $198,000,000, Approving an Official Statement
in Connection with the Offering and Sale of such Notes and Authorizing the
Execution of Other Necessary Documents and Related Actions.
ADDITIONAL INFORMATION
Options Available to the Sanitation District
1. Refund the Maturing 2009B CANs with Fixed Rate Debt
The issuance of long-term fixed rate refunding debt will eliminate market access
risks (ability to issue debt to refinance maturing debt) and interest rate risk
(additional costs if rates reset higher or are higher upon a future refinancing). After
the issuance of fixed rate debt, the Sanitation District will not be exposed to
changing market conditions.
The issuance of long-term fixed rate debt in the current market would result in an
average borrowing yield of approximately 4.08%. Fixed rate debt would also remove
the interest rate hedge originally desired by the Sanitation District (in 2006) which
was intended to insulate the District from changes in short-term interest rates as the
variable rates on the 2006 COPs would be expected to move in tandem with the
District's fluctuating investment portfolio earnings.
The following is a current market cost summary (subject to changing market
conditions) of Option 1 (Fixed Rate Debt) over the next year.
4.080% Assumed Average Fixed Rate
0.019 Costs of Issuance ($325,000 amortized over life of COPs)
0.050 Underwriter Costs ($863,000 amortized over life of COPs)
4.149% Fixed Rate Cost
Page 2
2. Refund the Maturing 2009B CANs with Variable Rate Debt
Current variable rates on California municipal debt are extremely low and attractive
at approximately 0.20%. However, the availability of bank support continues to be
limited and expensive in the current marketplace. In addition, the terms and
conditions currently demanded by banks are more onerous than during the period
prior to the global financial crisis.
The following is a current market cost comparison (subject to changing market
conditions) versus Option 1 (Fixed Rate Debt) over the next year.
Variable% Average Variable Rate
0.60 Bank Liquidity Fee
0.100 Remarketing Fee
0.022 Costs of Issuance ($375,000 amortized over life of COPs)
0.012 Underwriter Costs ($200,000 amortized over life of COPs)
0.734% + Variable% or (3.415% less unknown variable rates) less than Option 1
3. Refund the Maturing 2009B CANs with a New CANs issue
Since the issuance of the 2009B CANs, short-term interest rates have been
relatively steady as the current market yield for CANs is approximately 0.32%. The
issuance of refunding CANs will continue to allow the Sanitation District to accrue
savings at a low fixed rate while further insulating the District from higher interest
rates. The CANs structure will avoid the payment of high fees to liquidity banks and
eliminate the risk of interest rates increasing from historic low levels over the next
year. Although current variable rates are low (see Option 2. above), there is little
room for rates to trend lower.
The following is a current market cost summary (subject to changing market
conditions) of Option 3 (CANs) over the next year:
0.320% Assumed One-Year Rate
0.191 Costs of Issuance ($300,000 amortized over one year)
0.025 Underwriter Costs ($39,000 amortized over one year)
0.531% or 3.618% less than Option 1 (equal to $5.7 million of savings)
A comparison of the CANs refinancing structure to Option 2 above (Variable Rate
Debt) shows that unknown variable rates must be less than zero for variable rate
debt to generate a better economic result.
The major risk with a CANs structure occurs if the Sanitation District does not have
market access to remarket the CANs at maturity. However, the Sanitation District
has a substantial amount of reserves that could (if the Board chooses) be used to
redeem CANs if market access is not available. Staff intends to build in safeguards
to avoid the use of Sanitation District reserves unless absolutely necessary: for
example, beginning the process of refinancing well in advance of the maturity date of
the CANs.
To further reduce interest rate risk (additional costs if rates reset higher or are higher
upon a future refinancing) the Sanitation District could establish an Accelerated Rate
Page 3
Management (ARM) program with the one-year CAN refinancing debt issuance.
The ARM program uses accrued savings (i.e., 0.37% yield on 2009B CANs)
compared to a fixed rate assumption (i.e., 2006 fixed rate of 4.54%) to reducing the
outstanding amount of debt on a periodic basis. As less debt is outstanding, the
Sanitation District significantly reduces its interest rate risk (if higher interest rates
occur, the net effect is less because the higher interest cost is calculated on less
principal). The implementation of the ARM program since the issuance of the 2006
COPs has decreased the interest rate risk to the Sanitation District as the break-
even rate (the average future interest rate for the remaining debt from the 2006
COPs issuance) is now over 6.6%. If the Sanitation District refinances the 2009B
CANs with one-year CANs and current market conditions do not change, the break-
even rate will increase to over 7.3%. In addition, the original variable rate structure
of the 2006 COPs and the two past CANs refinancings have saved the District $15.7
million compared to the alternative of the District issuing fixed rate debt in 2006.
Staff is recommending Option 3, the refunding of the 2009B CANs with a new one-
year CAN that will again enable the Sanitation District to lock-in a low rate for
approximately one year without (a) encumbering cash reserves; (b) exposing the
District to relatively high bank liquidity costs associated with variable rate debt; and,
(c) allowing for flexibility to continue to accrue savings while insulating the District
from higher interest rates. If the Sanitation District pursues Option 3, the refunding
CANs can be sold on a competitive basis in order to obtain the lowest financing cost
possible.
Staff and consultants will be available to make a brief presentation and provide an
overview of the financing schedule at the Administration Committee meeting.
Following is a chart listing the remaining steps to be completed for the issuance of
the Revenue Refunding Certificate Anticipation Notes, Series 2010B debt issuance:
➢ Board approval of legal and disclosure documents
October ➢ Financing Corporation approval of legal and disclosure documents
➢ Receive Ratings from Bond Rating Agencies
November ➢ Receive competitive bids
December ➢ Closing
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
Page 4
OPERATIONS COMMITTEE Meeting Date To
09/01/10 09/29/22/10/10
AGENDA REPORT Item Number Item Number
2 5
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Jim Herberg, Director of Engineering
CIP Project Manager: Steve Schock
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to negotiate Amendment No. 6 to the Professional
Services Agreement with Camp Dresser & McKee, Inc. for additional design services for
the Rehabilitation of Odor Control Facilities, Project No. J-71-8.
SUMMARY
The Rehabilitation of Odor Control Facilities, Project No. J-71-8, includes improvements
to the odor collection and treatment system at Orange County Sanitation District's
(Sanitation District) Headworks and Primary Treatment areas at Plant No.1 to meet the
level of service included in the Strategic Plan.
A Professional Services Agreement (PSA) was awarded to Camp Dresser & McKee,
Inc. (CDM) in October 2003. CDM had completed the majority of the design work by
December 2006. The Sanitation District deferred the bid and construction of this project
in order to reduce budget expenditures, and in January 2007 requested CDM to
suspend further work on this contract.
At this time, staff would like to restart this project and complete the design with some
new activities and some design elements removed. The Consultant's scope will include
restart activities, design validation, and the inclusion of updated California Building
Codes and Sanitation District Design Guidelines.
PRIOR COMMITTEE/BOARD ACTIONS
September 2006 — Approved Amendment No. 5 to Professional Services Agreement
with CDM Inc. for $109,668, increasing the total amount not to exceed $5,028,372.
March 2006 —Approved Amendment No. 4 to Professional Services Agreement with
CDM Inc. for $327,172, increasing the total amount not to exceed $4,918,704.
June 2005 — Approved Amendment No. 3 to Professional Services Agreement with
CDM Inc. for $370,651, increasing the total amount not to exceed $4,591 ,532.
November 2004 — Approved Amendment No. 2 to Professional Services Agreement
with CDM Inc. for $645,674, increasing the total amount not to exceed $4,220,881.
September 2004 — Approved Amendment No. 1 to Professional Services Agreement
with CDM Inc. for $377,685, increasing the total amount not to exceed $3,575,207.
Form No.DW-102 Revised: 01/11/10
Page 1
October 2003 — Awarded a Professional Services Agreement to CDM Inc., for a total
amount not to exceed $3,197,522.
ADDITIONAL INFORMATION
The revised scope of work will complete the design for the Headworks Odor Scrubbers.
This will include the following: updating the plans and specifications with respect to the
new California Building Codes and the Sanitation District Design Guidelines; revisiting
the expected radius of odor capture to confirm the design due to collection system air
jumpers that were added; and initiating a sampling program to confirm the assumed
odor concentrations are treatable with this design.
The revised scope of work will also include activities to remove primary treatment odor
control system from the design package. This work will be finalized "as is" so that the
work can be referenced and/or utilized at a future date. Staff has determined that the
Primary Odor Scrubbers will be rehabilitated/replaced in Project No. P1-114.
CEQA
This project was included in the 1999 Strategic Plan Program Environmental Impact
Report prepared by ESA and certified on October 28, 1999. A Notice of Determination
was filed on October 29, 1999. A Notice of Exemption was filed for this project on
February 24, 2004.
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
This request complies with authority levels of the Orange County Sanitation District's
Delegation of Authority. This item has been budgeted and the budget is sufficient for
the recommended action. (FY 2010-11:1-ine Item Section 8, Page 11).
Date of Approval Contract Amount Contingency
10/22/03 $3,197,522 $0 (0%)
09/22/04 $3,575,207 $0 (0%)
11/17/04 $4,220,881 $0 (0%)
06/22/05 $4.591,532 $0 (0%)
03/22/06 $4,918,704 $0 (0%)
09/27/06 $5,028,372 $0 (0%)
JH:SS:eh:gc:cb
http://sharepoint/gm/board/Published Board Agenda Packages/05.J-71-8 Neg Amndmt.docx
Form No.DW-102 Revised: 01/11/10
Page 2
ADMINISTRATION COMMITTEE Meeting Date To
09/08/10 09/9/22/10
AGENDA REPORT Item Number Item Number
3 9
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to issue up to $157 million in new fixed-rate Certificates
of Participation (COP) debt, in one or more series.
SUMMARY
Approval of the recommended action above will direct staff to begin the $157 million
fixed-rate competitive debt issuance process utilizing the assistance of the financial
advisory firm of Public Resources Advisory Group, and the bond counsel firm of
Fulbright & Jaworski. Depending on market conditions and the associated cost savings,
all, or a portion, of the debt issuance may be offered as Build America Bonds (BABs).
In accordance with the Sanitation District's Board-adopted Debt Policy, the District will
restrict long-term borrowing to capital improvements that cannot be financed from
current revenue. This policy will assist in the leveling out of user fee rates over time and
avoid any spiked increases in the short-term.
PRIOR COMMITTEE/BOARD ACTIONS
March 10, 2010: Board approved the issuance of$80 million of new Certificates of
Participation (COP) debt within the FY 2009-10 Adopted Budget, in support of the
Sanitation District's Strategic Plan capital improvement program.
ADDITIONAL INFORMATION
Existing COP Financing Program
The Sanitation District currently has nine series of non-subordinate COPs outstanding
comprising a total par amount of$1 .21 billion. The following table describes each COP
in detail.
Page 1
Outstanding Interest Rate
Par Amount* Mode
Series 2010AM $ 80,000,000 Fixed Rate
Series 2009B 165,865,000 Fixed Rate
Refunding (2) (one-year)
Series 2009AM 197,770,000 Fixed Rate
Series 2008B 26,975,000 Fixed Rate
Refunding (3)
Series 2008A 30,535,000 Fixed Rate
Refunding (3)
Series 2007130) 290,130,000 Fixed Rate
Series 2007A(4) 93,265,000 Fixed Rate
Refunding
Series 20030) 191,500,000 Fixed Rate
Series 2000(5) 194,000,000 Daily Variable Rate
Refunding
Total $1,207,250,000
*As of September 1, 2010.
(1) New money debt issue.
(2) Series 2009B are fixed one-year certificate of anticipation notes(CANS)that refunded the
Series 2008C CANS that were issued to refund the remainder of Series 2006 Daily
Variable Rate that were supported by a weak liquidity facility bank.
(3) Series 2008B and Series 2008A refunded the Series 1993 and Series 1992 Synthetic
Variable-to-Fixed Rate Debt issues that were supported by a failing insurance provider.
Series 1993 and 1992 refunded the Series 1986 and a portion of the Series"B"COPs.
(4) Series 2007A refunded a portion of COP Series 2003 for debt service savings.
(5) Series 2000 COPS refunded the Series A, B, and C issued between 1990 and 1992.
The Series 2000 refunded the $179.7 million outstanding principal balance of the
1990-92 Series A, B, and C COP's and reimbursed the Sanitation District for
improvements made to the wastewater treatment system. The 2007A Refunding
COPS were issued to refund $95.1 million of the Series 2003 COPS. The Series
2008A refunded $77.2 million of the Refunding Series 1992 and Series 2008B
refunded $27.8 million of the Refunding Series 1993. Both Refunding Series 1992
and 1993 synthetic variable-to-fixed rate issues had begun to demand high interest
rate payments due to failing insurance providers. Series 2009B fixed one-year
certificate of anticipation notes (CANS) were issued to refund the Series 2008C
CANS. The Series 2008C CANS had been issued to refund the remaining $176
million outstanding on Series 2006 Variable Rate Debt that also began to result in
high interest rate payments, due to the weak liquidity facility bank that was
supporting the issue. Series 2003, Series 2007B, Series 2009A, and Series 2010A
were all new money debt issuances.
Page 2
The following table displays the combined gross debt service cash flows for the
District's nine COPs through final maturity in 2040.
Debt Service Structure*
120
100 - ❑Variable Rate
so
■Fixed Rate
60
O
40
20
0 0#0 1 1
_ N C2 V 2 O f` 00 O O N M V 'Q O r` 00 O O N M V LO O r` 00 O O
N N N N N N N N N N M M M CO CO CO Cl) CO CO CO
O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O
N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N
Fiscal Year End
Series 2009B one-year Certificate Anticipation Notes is assumed to be amortized from 2022 to 2036.All variable rate
obligations are assumed to have a per annum interest rate of 3%.
Proposed Debt Issuance
As shown above and in accordance with the Sanitation District's debt policy, the
District currently has $194 million in variable rate debt outstanding and $1.076 billion
in fixed rate debt outstanding (of which $165.865 million are one-year CANs).
However, due to the relatively high fees requested by bank liquidity providers, staff
believes that this new money debt issue should be again issued as fixed rate COPs.
Staff is also proposing to issue this $157 million fixed-rate debt by competitive sale,
in one or more series, as opposed to a negotiated sale due to PRAG's opinion that a
competitive fixed-rate sale will be less costly to the Sanitation District.
The American Recovery and Reinvestment Act of 2009 created a new financing
product, BABs, for the municipal issuer. BABs are issued as higher interest cost
taxable bonds; however, the U.S. Treasury provides a 35 percent subsidy on interest
payments. The net cost, after accounting for the 35 percent subsidy payment,
frequently results in lower net costs to the issuer, specifically in the maturity years
beyond ten years. Based on current market conditions, a hybrid tax-exempt and
BABs sale (tax-exempt for the short maturities and BABs for the long maturities),
would save the Sanitation District 0.88% in average interest cost, equal to
approximately $17.2 million on a present value base (or approximately 13.6% of the
BABs par amount) which is well in excess of the savings the District would ever
expect to achieve from a future refunding. If the Sanitation District would refund and
restructure the BABs, it would be very costly; however, staff believes the future need
to restructure the BABs is extremely remote. Effectively, by issuing BABs, the
Sanitation District should consider to debt to be non-callable as it would otherwise
be very expensive to optionally redeem.
Although a relatively new financial product, over $124 billion of BABs have been
sold by municipal issuers since the first issuance in March 2009. In addition, 25%
Page 3
of the municipal bond volume in 2010 has been issued as BABs, including the
Sanitation District's $80 million Series 2010A. A number of California issuers have
already sold over a billion dollars of BABs, including the State of California, Los
Angeles Unified School District, Bay Area Toll Authority, and University of
California. California utility issuers that have issued BABs include The
Metropolitan Water District of Southern California, Los Angeles Department of
Water and Power, Sacramento County Sanitation Districts, San Diego County
Water Authority, East Bay Municipal Utility District, and the San Francisco Public
Utilities Commission.
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
The FY 2010-11 Approved Budget included new money debt issuance of$157 million.
JDR:LT:MW
Page 4
OPERATIONS COMMITTEE Meeting Date To Bd.of Dir.
09/01/10 09/22/10
AGENDA REPORT Item Number Item Number
3 6
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Jim Herberg, Director of Engineering
Project Manager: Derek E. Davis
GENERAL MANAGER'S RECOMMENDATION
1. Approve Plans and Specifications for the P2 Digester Gas Dryer Upgrades, Project
No. FE07-20, on file at the office of the Clerk of the Board;
2. Approve Addenda Nos. 1 and 2 to the plans and specifications;
3. Receive and file bid tabulation and recommendation;
4. Award a construction contract to Minako American Corporation dba Minco
Construction for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, for an
amount not to exceed $897,000; and,
5. Approve a contingency of $89,700 (10%).
SUMMARY
P2 Digester Gas Dryer Upgrades, Project No. FE07-20, will replace digester gas dryers
at the Central Generation Building at Plant No. 2. The work generally consists of
replacing two water-cooled gas dryers with two skid-mounted, air-cooled, refrigerated-
type gas dryers. The project work also includes installing new motor operated inlet and
outlet valves, and remote control connections to the Treatment Plant Computer Control
System.
The plans and specifications for P2 Digester Gas Dryer Upgrades, Project No. FE07-20,
were completed in May 2010.
Two sealed bids were received on July 1, 2010. The Orange County Sanitation District
(Sanitation District) Bid Evaluation Team determined that Minako American Corporation
dba Minco Construction, is the lowest "Responsible and Responsive" bidder.
The Contractor's bid amount of $897,000 exceeds the approved construction budget of
$600,000. The construction budget was based on the Engineer's Estimate of probable
construction costs. Sanitation District staff investigated the discrepancy between the
bid amount and the Engineer's Estimate. It was determined that the Engineer's
Form No.DW-102.2 Revised: 01/11/2010
Page 1
Estimate did not include provisions for stainless steel materials. Stainless steel is
required in this application due to the corrosive environment in the gas compressor
building. The project budget has been increased to accommodate the bid amount and
contingency. The CIP budget is able to absorb this increase amount without budget
amendments.
Sanitation District staff recommends awarding the contract to Minako American
Corporation dba Minco Construction for $897,000.
Summary information on the bid opening for P2 Digester Gas Dryer Upgrades, Project
No. FE07-20, is as follows:
Project Budget $ 1,500,000
Construction Contract Budget (FE07-20) $ 900,000
Engineer's Construction Estimate $ 575,000
Lowest, Responsive, Responsible Bid $ 897,000
High Bid $ 1,097,477
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
The contractor selection was conducted in accordance with the Sanitation District's
adopted policies and procedures. The summary of bids is as follows:
Bidder Amount of Bid
Minco Construction $ 897,000
S. S. Mechanical Corporation $1, 097,477
CEQA
A Notice of Exemption was filed for this project on May 5, 2008.
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
This request complies with authority levels of the Sanitation District's Delegation of
Authority. This item has been budgeted (FY 2009-10 Budget Update: Line item 100,
Page A-11, FE-P2) and the budget is sufficient for the recommended action.
Date of Approval Contract Amount Contingency
09/22/10 $897,000 $89,700 (10%)
JH:DD:aln:gc
http://sharepoint/gm/board/Published Board Agenda Packages/06.FE07-20 CDM.docx
Form No.DW-102.2 Revised: 01/11/2010
Page 2
ADMINISTRATION COMMITTEE Meeting Date To Bd. of Dir.
09/08/10 09/22/10
AGENDA REPORT Item Number Item Number
4 10
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Lorenzo Tyner, Director of Finance and Administrative Services
GENERAL MANAGER'S RECOMMENDATION
Adopt Resolution No. OCSD 10-15, Declaration of Official Intent to reimburse certain of
the District's Capital Reserve Funds for Expenditures Made in Advance for Fiscal Year
2010-11 Capital Improvement Projects From Proceeds of a Future Long-Term
Financing.
SUMMARY
Adoption of the "Reimbursement Resolution" will allow the Sanitation District to use
proceeds from the anticipated future long-term borrowing of up to $157 million to
reimburse capital reserve funds which were used to fund District capital projects. A
similar Resolution has been adopted in advance of previous "new money" debt
issuances.
PRIOR COMMITTEE/BOARD ACTIONS
March 2010: Board adopted Resolution No. OCSD 10-04, Declaration of Official Intent
to Reimburse Certain of the District's existing capital reserve funds for expenditures
made in advance for Fiscal Year 2009-10, and in anticipation of, capital improvement
expenditures, from proceeds of a future long-term borrowing.
ADDITIONAL INFORMATION
Under provisions of U.S. Treasury Regulation 1.150-2, local public agencies may use
proceeds from long-term borrowings to reimburse those capital reserve funds which
were advanced to fund preliminary expenditures, such as design, engineering and
similar costs, for capital projects providing the public agency has declared its intent to
do so prior to debt issuance.
As part of preparations for a new capital financing program to support the Facilities
Master Plan adopted in December 2009, it is necessary to update the Sanitation
District's intent to reimburse reserve funds. Adoption of the "Reimbursement
Resolution" will ensure that the Sanitation District can include monies in upcoming
borrowings to reimburse reserve funds for expenditures made in advance of available
COP proceeds.
Pagel
CEQA
N/A
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A
ATTACHMENTS
1. Resolution No. OCSD 10-15
2. Exhibit A
JDR:LT:MW
Page 2
RESOLUTION NO. OCSD 10-15
DECLARATION OF OFFICIAL INTENT TO REIMBURSE
CERTAIN OF THE DISTRICT'S CAPITAL RESERVE FUNDS
FOR EXPENDITURES MADE IN ADVANCE FOR FISCAL
YEAR 2009-10 CAPITAL IMPROVEMENT PROJECTS FROM
PROCEEDS OF A FUTURE LONG-TERM FINANCING
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT AUTHORIZING FUTURE
CAPITAL EXPENDITURES TO BE REIMBURSED FROM
FUTURE LONG-TERM FINANCING
WHEREAS, the Board of Directors, by adoption of Resolution No. 94-81
on July 13, 1994; Resolution No. 97-28 on July 30, 1997; Resolution No. OCSD
98-32 on July 1, 1998; Resolution No. OCSD 99-08 on June 23, 1999;
Resolution No. OCSD 00-15 on July 19, 2000; Resolution No. OCSD 01-17 on
August 22, 2001; Resolution No. OCSD 02-20 on October 23, 2002; Resolution
No. OCSD 05-28 on December 21, 2005; Resolution No. OCSD 07-12 on June
27, 2007; Resolution No. OCSD 08-18 on October 22, 2008, and Resolution No.
OCSD 10-04 on March 24, 2010 previously declared its official intent to
reimburse its then existing capital reserve funds and accounts for certain
expenditures made in advance of and in anticipation of issuing indebtedness for
capital improvements to be acquired, constructed, or paid for, by or on behalf of
the District during the Fiscal Year; and,
WHEREAS, the District ("Issuer") intends to acquire and/or construct, or
otherwise improve, certain capital improvements during Fiscal Year 2010-11, and
later, all as more particularly described on Exhibit "A," attached hereto and
incorporated herein by reference (the "Project"); and,
WHEREAS, Issuer expects to pay certain expenditures (the
"Reimbursement Expenditures") in connection with the Project prior to the
issuance of indebtedness for the purpose of financing costs associated with the
Project, on a long-term basis; and,
WHEREAS, the Issuer reasonably expects that the debt obligations, in an
amount not to exceed $157 million, will be issued, and that certain of the
proceeds of such debt obligations will be used to reimburse the Issuer for
Reimbursement Expenditures.
NOW, THEREFORE, the Board of Directors of Orange County Sanitation
District,
DOES HEREBY RESOLVE, DETERMINE AND ORDER:
Section 1: That the Issuer finds and determines that the foregoing
Recitals are true and correct.
Section 2: That this Declaration is made solely for purposes of
establishing compliance with the requirements of Section 1.150-2 of the U.S.
Treasury Regulations. This Resolution Declaration does not bind the Issuer to
make any expenditure, incur any indebtedness, or proceed with the Project.
Section 3: That the Issuer hereby declares its official intent to use
proceeds of indebtedness to reimburse itself for the Reimbursement
Expenditures.
PASSED AND ADOPTED at a regular meeting of the Board of Directors
held September 22, 2010.
Chair
ATTEST:
Clerk of the Board
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements-Collection System Improvement Projects
Project Total Est.Cost 2010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 7/1110 Budget 6130110 Budget Budget Budget Number
Collections
Raitt and Bristol Street Sewer Extension 01-101 Planning 9,906,000 253,000 9,653,000 14
Santa Ana Trunk Sewer Rehab. 01-17 Planning 21,156,000 1,031,000 160,000 840,000 19,125,000 15
Santa Ana River Interceptor Realignment and Prot. 02-41 Design 11,404,000 8,686,000 744,000 956,000 1,018,000 16
Santa Ana River Interceptor(SARI)Inspection and Mitigation 02-41-7 Planning 900,000 500,000 200,000 200,000 17
Taft Branch Improvements 02-49 Planning 3,143,000 13,000 3,130,000 N/A
Newhope-Placentia Trunk Grade Separation Replacement 02-65 Planning 2,392,000 82,000 138,000 2,172,000 18
Fullerton-Brea Interceptor Sewer Relief 02-71 Planning 2,287,000 30,000 2,257,000 19
Newhope-Placentia Trunk Replacement 02-72 Planning 66,696,000 66,696,000 N/A
Yorba Linda Pumping Station Abandonment 02-73 Planning 9,566,000 9,566,000 N/A
Rehabilitation of the Westside Pump Station 03-52 Design 11,668,000 10,190,000 1,226,000 252,000 20
Westside Relief Interceptor Relief 03-55 Planning 26,482,000 26,482,000 N/A
Rehabilitation of Magnolia Trunk Sewer 03-58 Planning 26,721,000 2,526,000 17,723,000 3,448,000 3,024,000 21
Miller-Holder Trunk Sewer Relief 03-59 Planning 17,324,000 17,324,000 N/A
Beach Trunk/Knott Interceptor Sewer Relief 03-60 Planning 25,055,000 25,055,000 N/A
Miller-Holder and Knott Trunks Odor Control Project 03-61 Planning 1,795,000 1,795,000 N/A
Seal Beach Pumping Station Upgrade and Rehabilitation 03-62 Planning 14,023,000 14,023,000 N/A
Seal Beach Pumping Station Force Main Rehabilitation 03-63 Planning 11,032,000 152,000 10,880,000 N/A
Rehabilitation of 3-6,3-8,and 3-21-1 Sewers 03-64 Planning 71,312,000 71,312,000 N/A
Balboa Trunk Sewer Rehabilitation 05-47 Planning 8,514,000 1,056,000 416,000 2,190,000 4,852,000 22
Replacement of the Bitter Point Pump Station 05-49 Design 32,084,000 14,287,000 11,840,000 3,882,000 2,075,000 23
Replacement of the Rocky Point Pump Station 05-50 Design 20,360,000 11,758,000 7,183,000 565,000 854,000 24
Bitter Point Force Main Rehabilitation 05-58 Design 25,883,000 23,366,000 1,539,000 978,000 25
Newport Force Main Condition Assessment 05-60 Planning 22,591,000 1,619,000 1,072,000 633,000 19,267,000 26
Bayside Drive Improvement 05-61 Planning 3,415,000 3,113,000 302,000 27
Dover Drive Trunk Sewer Relief 05-63 Planning 13,346,000 1,788,000 1,099,000 9,120,000 1,339,000 28
Lido Pumping Station Upgrade and Rehabilitation 05-65 Planning 1,515,000 13,000 114,000 1,388,000 29
Crystal Cove Pumping Station Upgrade and Rehabilitation 05-66 Planning 7,379,000 7,379,000 N/A
Bay Bridge Pumping Station Upgrade and Rehabilitation 05-67 Planning 46,852,000 46,852,000 N/A
District 6 Trunk Sewer Relief 06-17 Planning 5,126,000 6,000 48,000 5,072,000 30
Southwest Costa Mesa Trunk 06-19 Planning 13,309,000 94,000 491,000 12,724,000 31
Gisler-Redhill System Improvements,Reach B 07-37 Design 9,622,000 1,675,000 406,000 6,869,000 672,000 32
Rehabilitation of College Ave.Pump Station 07-47 Planning 11,445,000 11,162,000 283,000 33
Browning Subtrunk Sewer Relief 07-60 Planning 11,172,000 11,172,000 N/A
County Island Annexation and CEQA Documentation 07-61 Planning 300,000 259,000 41,000 34
Von Karman Trunk Sewer Relief 07-62 Planning 433,000 433,000 N/A
MacArthur Pumping Station Upgrade and Rehabilitation 07-63 Planning 7,028,000 7,028,000 N/A
Edinger/Bolsa Chica Trunk Improvements 11-25 Planning 6,030,000 6,030,000 N/A
Coast Trunk Sewer Rehabilitation 11-26 Design 9,121,000 9,110,000 11,000 35
Wintersburg Channel Siphon Protection Project 11-32 Planning 75,000 75,000 36
Edinger Pumping Station Upgrade and Rehabilitation 11-33 Planning 11,474,000 11,474,000 N/A
North County Collections Yard 15-04 Planning 12,270,000 6,950,000 4,709,000 16,000 595,000 37
Facilities Engineering Projects-Collections FE-Collect Planning 8,520,000 5,145,000 688,000 325,000 2,362,000 38
Replacement of the Ellis Ave.Pump Stn 1-10 Design 79,337,000 78,987,000 350,000 39
Siphon and Manhole Upgrade Feasibility Study SP-138 Planning 300,000 150,000 150,000 40
Total Collections Projects 700,363,000 193,062,000 50,624,000 31,397,000 425,280,000
Page 1 of 6
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements-Treatment System Improvement Projects
Project Total Est.Cost 20010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 711110 Budget 6130/10 Budget Budget Budget Number
Headworks
Headworks Rehab.and Expansion at Plant No.1 P1-105 Planning 43,404,000 485,000 42,919,000 NIA
Headworks Expansion P1-120 Planning 222,804,000 222,804,000 NIA
Headworks Rehabilitation/Refurbishment P1-71 Design 8,374,000 7,364,000 622,000 388,000 41
Headworks Improvements at Plant No.2 P2-66 Const.11mpl. 257,733,000 232,549,000 15,325,000 8,609,000 1,250,000 42
Headworks Total 532,315,000 239,913,000 15,947,000 9,482,000 266,973,000
Primary Treatment
Primary Clarifiers 6-31 Evaluation and Optimization Study P1-116 Planning 150,000 92,000 58,000 43
Primary Effluent Pipeline Joint Repairs 131-118 Planning 3,246,000 3,246,000 NIA
Primary Treatment Rehab/Refurb 132-80 Planning 38,923,000 38,399,000 330,000 194,000 44
Primary Treatment Area Rehabilitation Study SP-137 Planning 300,000 150,000 150,000 45
54-inch Primary Effluent Butterfly Valve Use Study SP-144 Planning 25,000 25,000 46
Primary Treatment Total 42,644,000 38,491,000 563,000 344,000 3,246,000
Secondary Treatment
New Secondary Treatment System at Plant No.1 P1-102 Design 260,300,000 222,158,000 32,461,000 5,681,000 47
Activated Sludge Plant No.1 Upgrades P1-117 Planning 20,673,000 20,673,000 NIA
Activated Sludge Plant Rehabilitation P1-82 Const.11mpl. 46,761,000 46,438,000 323,000 48
Trickling Filters at Plant No.2 P2-90 Design 223,238,000 197,943,000 19,551,000 233,000 5,511,000 49
Oxygen Plant Rehabilitation at Plant No.2 SP-129 Planning 2,500,000 92,000 458,000 1,562,000 388,000 50
Secondary Treatment Total 553,472,000 466,631,000 52,793,000 7,476,000 26,572,000
Solids Handling&Digestion
Sludge Digester Rehabilitation at Plant 1 P1-100 Design 55,515,000 7,985,000 15,477,000 18,314,000 13,739,000 51
Sludge Dewatering and Odor control at Plant 1 131-101 Design 143,549,000 13,880,000 5,529,000 6,397,000 117,743,000 52
Digester Ferric Chloride System Rehabilitation 132-105 Planning 2,627,000 35,000 207,000 462,000 1,923,000 53
Demolition of Digesters A and B P2-110 Planning 4,756,000 4,756,000 NIA
Solids Storage Silo Rehabilitation P2-114 Planning 37,604,000 37,604,000 NIA
Solids Thickening and Processing Upgrades P2-89 Planning 61,135,000 5,082,000 3,425,000 1,919,000 50,709,000 54
Plant No.2 Primary Sludge Feed System Project P2-91 Const.11mpl. 26,524,000 25,943,000 244,000 337,000 55
Digester Rehabilitation at Plant No.2 P2-91-1 Planning 45,637,000 116,000 1,127,000 444,000 43,950,000 56
Sludge Dewatering and Odor Control at Plant 2 P2-92 Planning 63,183,000 75,000 259,000 570,000 62,279,000 57
Replacement of Drying Beds and Truck Wash at Plant P2-97 Planning 4,443,000 71,000 277,000 4,095,000 58
Food Waste Collection and Treatment Study SP-171 Planning 100,000 100,000 NIA
Digesters 5 and 6 Conversion and Use Study SP-172 Planning 100,000 100,000 NIA
Solids Handling&Digestion Total 445,173,000 53,187,000 26,268,000 28,720,000 336,998,000
Page 2 of 6
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements-Treatment System Improvement Projects
Project Total Est.Cost 20010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 711110 Budget 6/30110 Budget Budget Budget Number
Ocean Outfall Systems
Final Effluent Sampler and Building Area Upgrades J-110 Planning 2,661,000 52,000 78,000 331,000 2,200,000 59
Ouffall Land Section and OOBS Piping Rehabilitation J-112 Const.11mpl. 7,540,000 521,000 1,499,000 1,043,000 4,477,000 60
Ouffall Piping Rehabilitation Program Study J-113 Planning 370,000 36,000 80,000 80,000 174,000 61
Ocean Ouffall Booster Station Rehabilitation(Electrical) J-114 Planning 13,059,000 60,000 12,999,000 NIA
66-inch Interplant Effluent Pipeline Rehabilitation J-116 Planning 62,052,000 62,052,000 NIA
Ocean Ouffall Booster Station Rehabilitation(Mechanical) J-117 Planning 4,559,000 4,559,000 62
Ouffall Beach Box Rehabilitation Evaluation J-119 Planning 330,000 50,000 280,000 63
Ocean Ouffall Easement Renewal SP-143 Planning 25,000 25,000 64
Outfall Pumping Cooling Water Bypass Study SP-154 Planning 25,000 25,000 NIA
Alternative Effluent Disinfection Study SP-156 Planning 100,000 100,000 NIA
Santa Ana River Flap Gates Access Study SP-159 Planning 50,000 50,000 NIA
Interplant Effluent Pipeline Alternate Use Study SP-164 Planning 10,000 10,000 NIA
Ocean Outfall Systems Total 90,781,000 719,000 1,962,000 1,479,000 86,621,000
Utility Systems
Interplant Gas Line Rehabilitation J-106 Design 4,504,000 863,000 3,227,000 147,000 267,000 65
Cengen Cooling Water System Replacement J-109 Planning 10,023,000 1,061,000 1,093,000 2,739,000 5,130,000 66
Cengen Emissions Control Project J-111 Planning 30,279,000 2,381,000 27,898,000 67
UPS System Upgrades J-121 Planning 13,012,000 13,012,000 NIA
Air Quality Improvements J-79 Const.11mpl. 11,668,000 10,385,000 1,114,000 169,000 68
Central Generation Automation J-79-1 Design 21,049,000 16,353,000 3,818,000 79,000 799,000 69
Electrical Power Distribution System Improvements J-98 Planning 9,773,000 9,773,000 NIA
Power Building 3A Backup Power Reliability Project P1-111 Planning 502,000 80,000 35,000 64,000 323,000 70
Plant Water System Rehabilitation at Plant No.1 P1-112 Planning 3,344,000 32,000 210,000 138,000 2,964,000 71
Flare Addition P1-119 Planning 2,083,000 2,083,000 NIA
Gas Compressor Upgrades P1-121 Planning 27,181,000 27,181,000 NIA
Plant 166kV Substation P1-97 Design 15,153,000 15,151,000 2,000 72
Plant Water System Rehabilitation at Plant No.2 P2-101 Planning 3,659,000 34,000 232,000 294,000 3,099,000 73
Additional High Pressure Flare P2-103 Planning 1,993,000 1,993,000 74
15 kV Upgrades at Plant No.2 P2-108 Planning 3,238,000 11,000 394,000 2,833,000 75
Gas Compressor Upgrades P2-109 Planning 22,362,000 22,362,000 NIA
SCE Feed Reliability Improvements P2-111 Planning 22,490,000 22,490,000 NIA
Energy Load Management and Shedding System P2-112 Planning 16,517,000 16,517,000 NIA
Gas Holder Demolition P2-113 Planning 1,026,000 1,026,000 NIA
Secondary Area Cable Tray Upgrades P2-116 Planning 2,154,000 2,154,000 NIA
Headworks Area Cable Tray Upgrades P2-117 Planning 3,015,000 3,015,000 NIA
Fuel Cell Feasibility Study SP-132 Planning 100,000 35,000 65,000 76
Fuel Cell Hydrogen Gas Generation Research SP-134 Planning 600,000 360,000 240,000 77
Page 3 of 6
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements-Treatment System Improvement Projects
Project Total Est.Cost 2010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 7/1/10 Budget 6/30/10 Budget Budget Budget
Number
Utility Systems Projects(Continued.)
Digester Gas Facilities Assessment SP-141 Planning 100,000 50,000 50,000 78
Utility Water Systems Study SP-146 Planning 475,000 200,000 275,000 N/A
Plant Air System Master Plan SP-148 Planning 220,000 100,000 120,000 N/A
Electrical System Base Map SP-149 Planning 220,000 100,000 120,000 N/A
Uninterruptible Power System(UPS)Study SP-150 Planning 100,000 50,000 50,000 N/A
Sidestream Pumping System and Water Characterization Study SP-155 Planning 170,000 170,000 N/A
Standby Power Generation Study SP-158 Planning 100,000 100,000 N/A
Communication Radio System Replacement SP-165 Planning 900,000 900,000 79
Power Outage Recovery Plan SP-170 Planning 100,000 100,000 N/A
Potable Water Quality Study SP-175 Planning 25,000 25,000 N/A
Utility Systems Total 228,135,000 44,394,359 10,997,000 6,905,000 165,879,000
Odor Control Related Projects
Coyote Hills Golf Course Odor Control Station 02-74 Planning 8,365,000 8,365,000 N/A
Rehabilitation of Odor Control Facilities J-71-8 Design 44,124,000 7,018,000 913,000 6,783,000 29,410,000 80
Trickling Filter Odor Control at Plant No.1 P1-113 Planning 5,182,000 337,000 628,000 4,217,000 81
Primary Scrubber Rehabilitation at Plant No.1 P1-114 Planning 41,732,000 41,732,000 N/A
Solids Storage Building Odor Control Project 132-102 Planning 10,720,000 152,000 816,000 9,752,000 82
Chemical Scrubber Conversions and Piping System Improvements P2-106 Const./Impl. 3,261,000 100,000 625,000 2,032,000 504,000 83
Primary Treatment Odor Control Upgrades 132-98 Planning 35,691,000 2,844,000 32,847,000 84
Wastehauler Odor Control SP-140 Planning 100,000 50,000 50,000 85
Odor Control Master Plan SP-166 Planning 2,400,000 2,400,000 N/A
Odor Control Related Projects Total 151,575,000 7,118,000 2,077,000 13,153,000 129,227,000
Process Related Special Projects
Plant 0&M Manual&SOP Project-Phase I SP-53 Planning 3,750,000 2,455,000 1,295,000 86
Corrosion Management SP-68-1 Design 4,667,000 3,183,000 1,366,000 118,000 87
Special Projects:Biotrickling Filter(BTF) SP-90-7 Const./Impl. 29,000 5,000 12,000 12,000 88
Process Related Special Projects Total 8,446,000 5,643,000 2,673,000 130,000
Plant Automation&Computerization
Power Monitoring and Control Systems J-33-3 Planning 12,013,000 2,852,000 943,000 5,382,000 2,836,000 89
Strategic Information Architecture(SIA) SP-03 Const./Impl. 1,995,000 730,000 250,000 250,000 765,000 90
Internet/Intranet Development SP-09 Const./Impl. 650,000 345,000 60,000 60,000 185,000 91
CMMS System Replacement SP-100 Const./Impl. 3,789,000 1,391,000 1,242,000 1,156,000 92
PDS2D Software Replacement SP-103 Planning 250,000 50,000 50,000 150,000 93
Geographic Information System SP-15 Const./Impl. 4,047,000 827,000 690,000 690,000 1,840,000 94
Process SCADA Modbus Ethernet Redundancy SP-160 Planning 1,055,000 1,055,000 N/A
VAX Server Migration to Modbus Ethernet SP-161 Planning 1,146.000 1,146,000 N/A
Network Equipment Upgrade SP-89 Const./Impl. 1,157,000 255,000 622,000 140,000 140,000 95
Plant Automation&Computerization Total 26,102,000 6,400,000 3,857,000 7,728,000 8,117,000
Page 4 of 6
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements-Treatment System Improvement Projects
Project Total Est.Cost 2010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 711110 Budget 6130/10 Budget Budget Budget Number
Miscellaneous&Support Projects
Facilities Engineering Projects-Joint FE-J Planning 23,910,000 3,844,000 1,310,000 1,290,000 17,466,000 96
Facilities Engineering Projects-Plant 1 FE-P1 Planning 20,910,000 10,429,000 1,135,000 1,127,000 8,219,000 97
Facilities Engineering Projects-Plant 2 FE-P2 Planning 20,910,000 7,032,000 788,000 757,000 12,333,000 98
Temporary Upgrades To Plant Security Barriers J-108 Planning 2,385,000 993,000 1,092,000 108,000 192,000 99
Emergency Operation Center J-115 Planning 100,000 100,000 100
Contracts and Purchasing Building Extension J-118 Planning 3,589,000 3,589,000 101
Operations Center Entrance/Building Repairs J-122 Planning 2,325,000 450,000 1,150,000 725,000 102
Title 24 Access Compliance Improvements at Plant No.1 P1-115 Planning 10,000,000 42,000 268,000 1,085,000 8,605,000 103
Plant No.2 Landscaping Project P2-96 Planning 545,000 90,000 255,000 200,000 104
Integrated Security Access Control System SP-128 Planning 450,000 90,000 90,000 270,000 105
2009 NPDES Permit Renewal SP-133 Planning 150,000 100,000 50,000 106
Software and Computer Equipment Replacement Project SP-135 Const.11mpl. 2,700,000 50,000 270,000 270,000 2,110,000 107
Land Records Information System SP-136 Planning 410,000 20,000 195,000 195,000 108
Roof Condition Assessment and Rehabilitation Study SP-142 Planning 75,000 39,000 36,000 109
Facility Assets Assessment SP-145 Planning 5,000,000 500,000 1,500,000 3,000,000 110
Administrative Facilities Master Plan SP-147 Planning 250,000 50,000 100,000 100,000 191
Laboratory Water Piping Replacement SP-153 Planning 1,005,000 13,000 112,000 880,000 112
Stormwater Master Plan SP-167 Planning 300,000 300,000 NIA
Small Cap.Equip.Replacement Project SP-34 Const.11mpl. 11,700,000 1,500,000 1,700,000 1,700,000 6,800,000 113
Asset Management Program SP-68-2 Design 4,800,000 2,683,000 370,000 363,000 1,384,000 114
Warehouse Reinvention Project SP-77 Const.11mpl. 600,000 532,000 68,000 115
Miscellaneous&Support Projects Total 112,114,000 27,315,000 8,643,000 10,083,000 66,073,000
Water Management Projects
Initial Expansion of the Groundwater Replenishment System SP-139 Design 300,000 100,000 100,000 100,000 116
Effluent Reuse Study SP-173 Planning 60,000 60,000 NIA
Water Management Projects Total 360,000 100,000 100,000 160,000
Strategic&Master Planning
Orange County Biosolids Production Siting Study SP-105 Planning 400,000 136,000 264,000 117
Uniform Level of Service Standards SP-151 Planning 80,000 40,000 40,000 NIA
Climate Change Impact Study SP-152 Planning 100,000 50,000 50,000 NIA
Plant No.2 Soil Liquefaction Study SP-177 Planning 250,000 250,000 NIA
Strategic&Master Planning Total 830,000 136,000 264,000 90,000 340,000
Page 5 of 6
Exhibit A
Orange County Sanitaiton District
Capital Improvement Program
Summary of Capital Requirements—Treatment System Improvement Projects
Project Total Est.Cost 2010.11 2011.12
Project Phase Project to Date Cashflow Cashflow Future Page
Number 711110 Budget 6/30/10 Budget Budget Budget Number
Research&Development
Process SCADA Replacement J-120 Planning 20,283,000 20,283,000 NIA
Process SCADA Network Upgrades P2-107 Planning 8,697,000 8,697,000 NIA
USBR Brine Management Grant Project SP-116 Planning 315,000 130,000 55,000 130,000 118
Research Strategic Plan SP-120 Planning 365,000 308,000 20,000 18,000 19,000 119
Superoxygenation of Primary Influent SP-121 Planning 850,000 360,000 245,000 245,000 120
Operational Research Projects(annual allocation) SP-125 Planning 10,040,000 250,000 1,000,000 1,000,000 7,790,000 121
Process SCADA Link to Pump Stations SP-157 Planning 100,000 100,000 NIA
North County Yard Information Continuity SP-162 Planning 666,000 666,000 NIA
Data Storage Addition SP-163 Planning 444,000 444,000 NIA
Treatment Plant Hydraulic Assessment SP-168 Planning 300,000 300,000 NIA
Information Systems Upgrades and Replacements SP-169 Planning 12,510,000 12,510,000 NIA
Information Technology Data Center Replacement SP-174 Planning 2,566,000 2,566,000 NIA
Information Technology Workroom Replacement SP-176 Planning 180,000 180,000 NIA
Research&Development Projects Total 57,316,000 1,048,000 1,320,000 1,393,000 53,555,000
Total Treatment and Disposal Projects 2,249,263,000 890,995,359 127,464,000 87,083,000 1,143,761,000
Capital Equipment Purchases 16,000,000 1,000,000 1,548,000 1,442,400 12,009,600
Total Collection,Treatment and Disposal Projects $ 2,965,626,000 $ 1,085,057,359 $ 179,636,000 $ 119,922,400 $ 1,581,050,600
Page 6 of 6
OCSD NEWPORT TRUNK SEWER
Addendum to the Newport Trunk Sewer And Force Mains
Replacement Project EIR 20305116
Prepared for September 2010
Black&Veatch Corporation
r ESA
OCSD NEWPORT TRUNK SEWER
Addendum to the Newport Trunk Sewer And Force Mains
Replacement Project EIR
Prepared for September 2010
Black&Veatch Corporation
ESA
626 Wilshire Boulevard
Suite 1100
Los Angeles,CA 90017
213.599.4300
www.esassoc.com
Oakland
Olympia
Petaluma
Portland
Sacramento
San Diego
San Francisco
Seattle
Tampa
Woodland Hills
208629
OUR COMMITMENT TO SUSTAINABILITY I ESA helps a variety of
public and private sector clients plan and prepare for climate change and
emerging regulations that limit GHG emissions.ESA is a registered
assessor with the California Climate Action Registry,a Climate Leader,
and founding reporter for the Climate Registry.ESA is also a corporate
member of the U.S.Green Building Council and the Business Council on
Climate Change(BC3).Internally,ESA has adopted a Sustainability Vision
and Policy Statement and a plan to reduce waste and energy within our
operations.This document was produced using recycled paper.
CONTENTS
OCSD Newport Trunk Sewer
Addendum to the EIR
Paqe
Introduction ............................................................................................................................. 1
RegulatoryBackground........................................................................................................... 1
Summaryof Effects.................................................................................................................2
ProjectDescription..................................................................................................................2
ConstructionMethods.............................................................................................................3
Construction Sequence / Schedule...................................................................................5
SedimentControl ....................................................................................................................5
SoilMixing Volume ...........................................................................................................5
Proposed Sediment Control Methods ...............................................................................6
TrafficControl ....................................................................................................................... 10
Non-Construction Traffic................................................................................................. 10
Construction Vehicles ..................................................................................................... 11
Figures
Figure 1 Construction Site on the East Levee.....................................................................4
Figure 2 Construction Site on West Levee..........................................................................4
Figure3 Silt Fence..............................................................................................................7
Figure4 Concrete K-Rail ....................................................................................................8
Figure5 Soil Berm Barrier..................................................................................................9
Figure 6 Traffic Detour Pattern for Construction on the East Levee ................................. 10
Figure 7 Traffic Detour Pattern for Construction on the West Levee ................................ 11
Figure 8 Delivery and Disposal Truck Route to Main Highway......................................... 12
Tables
Table 1 Approximate In-Situ Soil Mixing Volume for Phase 1............................................5
Table 2 Summary of Anticipated Phases 1 and 1A Truck Traffic..................................... 13
OCSD Newport Trunk Sewer I ESA/208629
Addendum to the EIR September 2010
Introduction
The Orange County Sanitation District(OCSD)certified the Final Environmental Impact Report
(EIR) for the Newport Trunk Sewer and Force Mains Replacement Project(SCH#203051126)on
April 27,2005. The project began construction in October 6,2008 and was substantially complete
on July 30,2010. Following installation of this sewer pipeline under the Santa Ana River,
subsidence was observed on both river levees. OCSD has designed a remediation project to re-
stabilize the levees. The purpose of this Addendum is to evaluate potential environmental impacts
associated with the proposed project description modifications pursuant to the California
Environmental Quality Act(CEQA)(Public Resources Code Sections 21000 et seq.) and State
CEQA Guidelines(California Code of Regulations Sections 15000 et seq.,hereinafter referred to
as Guidelines).
OCSD's proposed remediation of the levees is to occur in two phases. This Addendum covers
Phase 1 (including both Phases IA and 1B). Phase 2 is not covered in this Addendum but may be
needed in the future. This Addendum describes the CEQA compliance requirements for an
Addendum,provides the project description, and summarizes potential impacts of the project.
The analysis concludes that no new environmental impacts would occur as a result of the
modifications and an Addendum to the original Newport Trunk Sewer EIR is the appropriate
CEQA compliance document for the proposed modifications.
Regulatory Background
According to Section 15164(a) of the Guidelines,the lead agency or responsible agency shall
prepare an addendum to a previously certified EIR if some changes or additions are necessary but
none of the conditions described in Section 15162 calling for preparation of a subsequent EIR
have occurred. Section 15162 of the Guidelines lists the conditions that would require the
preparation of a subsequent EIR rather than an addendum. These include the following:
(1) Substantial changes are proposed in the project which will require major revisions of
the previous EIR or negative declaration due to the involvement of new significant
environmental effects or a substantial increase in the severity of previously identified
significant effects;
(2) Substantial changes occur with respect to the circumstances under which the project is
undertaken which will require major revisions of the previous EIR or negative
declaration due to the involvement of new significant environmental effects or a
substantial increase in the severity of previously identified significant effects; or
(3) New information of substantial importance,which was not known and could not have
been known with the exercise of reasonable diligence at the time of the previous EIR
was certified as complete or the negative declaration was adopted, shows any of the
following:
(A) The project will have one or more significant effects not discussed in the
previous EIR or negative declaration;
(B) Significant effects previously examined will be substantially more severe than
shown in the previous EIR;
OCSD Newport Trunk Sewer ESA/208629
Addendum to the EIR September 2010
(C) Mitigation measures or alternatives previously found not to be feasible would in
fact be feasible, and would substantially reduce one or more significant effects of
the project,but the project proponents decline to adopt the mitigation measure or
alternative; or
(D) Mitigation measures or alternatives which are considerably different from those
analyzed in the previous EIR would substantially reduce one or more significant
effects on the environment,but the project proponents decline to adopt the
mitigation measure or alternative.
OCSD has evaluated the environmental impacts of the proposed modifications,which are
described in this Addendum, in light of the requirements defined under CEQA and the
Guidelines. OCSD,acting as the Lead Agency,has determined that none of the above conditions
apply and an Addendum to the certified EIR is the appropriate environmental documentation for
the proposed modifications.
Summary of Effects
The proposed project modifications would generate concrete slurry spoils. Water quality control
best management practices (BMPs) described in the project description would ensure that
construction runoff would not enter the SAR or SAR Marsh and would not adversely affect water
quality. Compliance with these County-approved BMPs would ensure that no new impacts to
water quality would result form the project.
The proposed project modifications would result in the need to temporarily divert bike path traffic
during the construction activities. As a part of the project description modifications,bike traffic
would be diverted to the opposite side of the river during construction activities. Both levee bike
paths may be closed simultaneously for brief periods. During these periods,bike detours would
be employed around the construction areas.As described in the project description below, OCSD
would place signage to notify bike path users of the temporary detours. Following construction,
the bike paths would be returned to pre-construction conditions. Implementation of the detour
plans described in the project description would ensure that impacts to bike paths would not be
significant.
No new significant impacts would occur as a result of the proposed modifications.Nor would the
project significantly increase the severity of previously identified impacts. As a result, an
Addendum to the Newport Trunk Sewer EIR is the appropriate CEQA compliance document.
Project Description
The Orange County Sanitation District(OCSD) is proposing Phase IA and 1B of the Santa Ana
River(SAR)Levee Stabilization Project in Huntington Beach and Newport Beach California.
The levee stabilization is required to repair damages to the levees experienced from
microtunneling of the Newport Trunk sewer pipeline. Phase 2 of this project is not covered by
this Addendum.
OCSD Newport Trunk Sewer 2 ESA/208629
Addendum to the EIR September 2010
Construction for Phase 1A and 1B is anticipated on the West and East Levees of the Santa Ana
River near Treatment Plant 2 (Figure and Figure). The objective of the construction is to
stabilize levee slopes that are experiencing settling due to the effects of a microtunnelling
operation.
The construction for Phase I will occur entirely on the levee above the ordinary high water mark
of the river and SAR marsh area. The Orange County Flood Control District(OCFCD)owns the
property to be affected by construction. OCSD will acquire an encroachment permit from
OCFCD prior to construction.No additional permits will be necessary to complete Phase 1 of the
project.
Phase I is the first phase of the remediation. This phase needs to be installed immediately to
ensure that the river levees maintain flood protection this winter(2010-2011). Phase 1B will
follow after completion of Phase I in accordance with the Construction Sequence section
below.
Construction Methods
The construction method of Phases IA and 1B consists of in-situ mixing of soil with a cement
and water mixture added("soil mixing")in and near the settling zone. Soil mixing will be
accomplished with an auger-type mixer mounted on a rig,producing a column of mixed soil 3
feet in diameter to 9-feet in diameter,depending on the contractor retained to complete the work.
The rig will be a vehicle between 20 and 30 feet long.A series of these columns will be
constructed overlapping each other and covering the construction area, as shown on the
construction drawings. It is anticipated that these cured soil/cement columns will prevent further
settling. The areas affected by soil mixing on the East and West Levees are shown in Figure 1
and Figure 2. The areas shaded green are where the actual soil mixing will occur. Areas within
the boundary for"limit of work area"include space for the rig to maneuver. The areas designated
Phase I are entirely within the level areas on the top of the two levees. These will be given the
first priority for construction. The portion of Phase 1B will be constructed on the water side of the
levees is well above the high water line. Construction on the East Levee will also avoid the
adjacent marsh area.
Rip rap in the construction area will be removed prior to soil mixing and then replaced after soil
mixing is completed. Rip rap removal will leave a depression approximately 18 inches deep
which will aid in containing debris and runoff. Sediment controls shall be implemented. Other
than limited benching for installing sediment control,the slope of the levees will not be benched
for the soil mixing process.
The soil mixing process produces spoil that is approximately 20 percent of the volume of soil
mixed.Plans are presented for preventing spoil from entering the Santa Ana River either as debris
during construction or as sediment in runoff due to rain.
OCSD Newport Trunk Sewer 3 ESA/208629
Addendum to the EIR September 2010
Mi crotu n n el
Alignment
7-1
Phase IA
t
r_
t 4 SO ft
Soil Mixing
Area
Figure 1: Construction Site on the East Levee
Mi crotu n n el
Alignment
1
p
it
Figure 2 Construction Site on West Levee
OCSD Newport Trunk Sewer 4 ESA/208629
Addendum to the EIR September 2010
Construction Sequence / Schedule
Construction for Phases IA and 113 will be conducted over approximately total of 12 weeks
(6 working days per week, 10-hour workdays), during which access to the levees will be
restricted and through traffic diverted. Phase IA will be completed first on the East Levee. Then
work will shift to Phase I on the West Levee.Work will then be conducted on Phase I on the
West Levee, and when completed,work will then move to Phase I on the East Levee. Plans for
traffic diversion and separation of construction-related vehicles from non-construction vehicles
are presented below.Also presented is the estimated number of truckloads for transporting
supplies and equipment and for removing and disposing of excess spoil from the soil mixing
operation.
Sediment Control
The goal of sediment control is to effectively minimize discharge of sediment and runoff from
construction sites by application of relatively simple and cost effective Best Management
Practices(BMPs). Sediment controls will be provided for the purpose of controlling erosion and
containing sediment until construction is complete. General objectives for erosion and sediment
controls are listed below:
• Minimize the area disturbed by construction at any given time. Disturbed areas should be
within the work limits shown on the drawings.
• Contain exposed spoil within the disturbed areas and prevent spoil from spilling into the
river and adjacent properties.
• Contain any runoff within construction areas that results from construction activities or
from rain. Prevent runoff from entering the river or adjacent property.
• Trap eroded sediment within construction areas using temporary barriers.
Soil Mixing Volume
In Phase 1 of the project, an approximate total of 13,900 cubic yards of soil will be treated in-situ at
the East and West Levee construction sites. Table 1 provides estimates of amount of soil will be
treated in each section of the levee in the Phase 1 of the project. Only approximately 20 percent of
that treated soil volume will become spoil that will be removed from the site for disposal.
TABLE 1
APPROXIMATE IN-SITU SOIL MIXING VOLUME FOR PHASE 1.
Phase 1: East Levee Phase 1:West Levee
(cubic yards) (cubic yards)
Phase 1A:Top of Levee 2,100 3,500
Phase 1 B: Land Side Slope 2,700 2,400
Phase 113:Water Side Slope 1,200 1,700
Total Soil Mix Volume 6,000 7,600
Spoil Produced 1,200 1,520
OCSD Newport Trunk Sewer rJ ESA/208629
Addendum to the EIR September 2010
Proposed Sediment Control Methods
Three alternate methods of sediment controls are proposed. These methods are k-rail, silt fences,
and soil berm. Hay bales are used in all three methods to control runoff from construction sites
during rain events.
The following sections describe alternatives of sediment control barriers. Sediment control
barriers will be installed in two configurations. The first configuration will be used for sediment
control during work on top and land side of the levee. Sediment control barriers will be installed
on top and along edge of levee on the water side. The second configuration will be used for work
on water side of the levee. Sediment control barriers will be installed five feet from the work limit
in Phase 1 but above high water mark. In both configurations, sediment control barriers will be
installed on the land side and along the bottom of the levee. In addition,hay bales will be
installed along all sediment control barriers to control runoff from construction site.
OCSD Newport Trunk Sewer 6 ESA/208629
Addendum to the EIR September 2010
Silt Fence Barrier. Silt fences (Error! Not a valid bookmark self-reference.)will be a minimum
14 inches high and will not exceed 36 inches in height measured from the installed ground
elevation. A silt fence barrier consists of 4-foot posts installed every 3 feet along the barrier limit.
The bottom of silt fence will be buried 12 inches below ground surface when installed on flat
ground. Where a silt fence is installed on an incline,the bottom of the silt fence will be buried 24
inches below ground surface. The ends of the fence will be extended upslope to prevent water
from flowing around the ends of the fence into the river. Error! Not a valid bookmark self-
reference. illustrates installation of silt fences in the two configurations.
WOOD POST
SILT FENCES LENGTH 3'-0"
24" DEPTH
HAY BALES IN GROUND
SAIY rA ANA
RIVER
TOp
LEVEE
LAND SIDE LEVEE
SILT FENCES
HAY BALES
WORK ON TOP AND LAND SIDE OF LEVEE
SILT FENCES WOOD POST
LENGTH 3'-0"
24" DEPTH
HAY BALES IN GROUND
SAN7q ANA R1vER
RI vER slD
E LE
tpp E
LEVCE
LAND SIDE LEVEE
HIGH
WATER LEVEL
SILT FENCES
HAY BALES
WORK ON RIVER SIDE OF LEVEE
Figure 3: Silt Fence
OCSD Newport Trunk Sewer 7 ESA/208629
Addendum to the EIR September 2010
Concrete K-Rail Barrier. Concrete k-rail barrier will be 32 inches high with 24 inches base.
Ground at bottom of k-rail shall be benched to secured the k-rail in place. In addition,k-rail will
also be secured with two anchors at each end. Where k-rails installed on an inclined surface,k-
rail will have a slanted base or the k-rail will be placement will be on a benched portion of the
slope. Figure 4 illustrates installation of concrete k-rails in two configurations.
CONCRETE
HAY BALES K - RAIL
SANTA ANA RI DER
TOP LEVEE
LAND SIDE LEVEE
HIGH
CONRETE WATER LEVEL
K - RAIL
HAY BALES
WORK ON TOP AND LAND SIDE OF LEVEE
CONCRETE
K - RAIL
HAY BALES
SANTA ANA RIVER
TOP
LEE
LAND SIDE LEVEE
HIGH
CONRETE WATER LEVEL
K - RAIL
HAY BALES
WORK ON RIVER SIDE OF LEVEE
Figure 4: Concrete K-Rail
OCSD Newport Trunk Sewer 8 ESA/208629
Addendum to the EIR September 2010
Soil Berm Barrier. Soil berm barrier will be 12 inches high with 12 inches base. Soil berm shall
be well compacted and covered with plastic to prevent it from erosion during construction.
Figure 5 illustrates installation of soil berm in two configurations.
SOIL BERM
HAY BALES
SANTA ANA RIVER
TOP L£V££
CANd Slp£ tfV££
HIGH
WATER LEVEL
SOIL BERM
HAY BALES
WORK ON TOP AND LAND SIDE OF LEVEE
SOIL BERM
HAY BALES
SAN
I R T ANA RIVER
£ LE £
TOP L£vr£
LAND sio£ c£�,E£
HIGH
WATER LEVEL
SOIL BERM
HAY BALES
WORK ON RIVER SIDE OF LEVEE
Figure 5: Soil Berm Barrier
OCSD Newport Trunk Sewer 9 ESA/208629
Addendum to the EIR September 2010
Traffic Control
Non-construction traffic consists includes pedestrian,bicycle, levee maintenance vehicles. Only
the levee maintenance vehicles will need access to the entire levee affected by the construction.
Pedestrian and bicycle traffic can be detoured away from the construction. Construction traffic
includes the soil mixing equipment and trucks delivering cement and water and removing spoil.
Non-Construction Traffic
Because the levees are relatively narrow and because the machinery needed for the soil mixing
work is relatively large,through traffic cannot be allowed when the soil mixing is in progress.
There are two bridges relatively close to the construction sites, one upstream and one
downstream. Bicycle and pedestrian traffic can be detoured away from the active construction at
these bridges. The soil mixing work will be conducted on only one levee at a time, starting with
Phase I on the East Levee. This will allow levee traffic to be diverted to the West Levee as
shown in Figure 6. Then work will shift to the West Levee, and levee traffic will be diverted to
the East Levee as shown in Figure 7. Once Phase lA work is completed on the West Levee, it
will continue into the Phase 1B work on the West Levee. Then work will again shift to
completing the remaining Phase 1B work on the East Levee with levee traffic diverted to the
West Levee.
Bicycle and
Pedestrian Detour
at Hamilton
East Levee Construction
Bicycle &s Pedestrians
Maintenance Vehicles
Construction Vehicles
Bicycle and
Pedestrian Detour
at Pacific Coast
Highway
Figure 6: Traffic Detour Pattern for Construction on the East Levee
OCSD Newport Trunk Sewer 10 ESA/208629
Addendum to the EIR September 2010
Bicycle and
Pedestrian Detour
at Hamilton
OCSD West Levee Con M ction
PI an t 2
KEY
Bicycles&Pedestrian s
Maintenance Vehicles
•� Construction Vehicles
Bicycle an d
Pedestrian Detour
t at Pacific Coast
y Highway
1 mile
Figure 7: Traffic Detour Pattern for Construction on the West Levee
Pedestrian and bicycle traffic will be diverted at the bridge over the Santa Ana River at Hamilton
Avenue and at Pacific Coast(West Coast Highway)using signs and barricades. Levee
maintenance vehicles will be allowed onto the levee with construction but they will not be
allowed to pass through the actual construction area and will have to turn around or carefully
back up. Construction vehicles will take an access road for work on the East Levee and may have
some interaction with levee maintenance vehicles.For the West Levee,they will take a path
through OCSD Plant 2 property. Therefore,there will be no mixing of moving construction
vehicle traffic with pedestrians,bicycles, or levee maintenance vehicles on the West Levee.
Construction Vehicles
Construction vehicles will consist of a soil mixing rig(similar to a rig used for drilling piles),
bulk tank trucks delivering dry cement and water, dump trucks for removing spoil, and a backhoe
for loading the spoil onto the dump trucks. It is anticipated that the contractor will establish a
batch plant at each of the two levees for mixing cement with water onsite for injection into the
soil during soil mixing. The construction vehicles will follow the street routes shown in Figure 8
to two possible main highways: Highway 405 (San Diego Freeway) or Highway 55 (Newport
Freeway also known as the Costa Mesa Freeway).
OCSD Newport Trunk Sewer 11 ESA/208629
Addendum to the EIR September 2010
To HWY 405 N
West Levee Construction Site
East Levee Construction Site
� KEY
- RouteAlternative 1
RouteAlternative 2
Site Access Route �
y�
GOOSIC
Figure 8: Delivery and Disposal Truck Route to Main Highway
Approximately 20 per cent of the 13,900 cubic yards of soil involved in the soil mixing(Phase 1)
will end up as spoil that will be removed from the site. The spoil will be loaded using a backhoe
into semi-trailer dump trucks with 20 cubic yard capacity and removed from the site for disposal.
Cement will be delivered in bulk tank trucks as dry solid and transferred to the batch plant. For
the East Levee,river water may be too brackish for use in mixing the grout. Therefore,tank
trucks will provide fresh water for mixing. On the West Levee, OCSD Plant 2 will provide water
via a hydrant, eliminating tank truck traffic at that location, These trucks will follow either of the
two the routes shown to the main highways in Figure . Workers will be driving to the site daily. It
is anticipated that there will be a crew of approximately 4 people in separate cars driving from
home to the site and then leaving at the end of the shift. It is anticipated that only be a single day
shift during the day. Work will be occurring on only one levee at a time to allow for pedestrian
and bicycle detours. A summary of construction vehicle traffic is shown in Table 2.
OCSD Newport Trunk Sewer 12 ESA/208629
Addendum to the EIR September 2010
TABLE 2
SUMMARY OF ANTICIPATED PHASES 1 AND 1A TRUCK TRAFFIC
(12-week total construction period, 6 weeks per levee)
East Levee West Levee
East Levee Trucks West Levee Trucks
Description Total Trucks per Work Day Total Trucks per Work Day
Dump Trucks for Spoil Removal,(20 cu yd.capacity)
Phase 1A 21 0.6 35 1.0
Phase 1 B 39 1.1 41 1.1
Bulk tanker(5,000 gal.)for Dry Cement Delivery
Phase 1A 15 0.4 26 0.7
Phase 1 B 29 0.8 30 0.8
Water Trucks(5,000 gal.)
Phase 1A 15 0.4 Ob 0
Phase 1 B 29 0.8 Ob 0
Totala 148 4.1 188 5.2
a Does not include soil mixing rig,backhoe,and batch mix plant which will be delivered once and removed once for each levee.Also does
not include cars for 4 workers coming to and leaving the site.
b Assumes water provided by hydrant at OCSD Plant 2.
OCSD Newport Trunk Sewer 13 ESA/208629
Addendum to the EIR September 2010
RESOLUTION NO. OCSD 10-16
AUTHORIZING EMERGENCY REPAIRS TO THE SANTA ANA LEVEES
AND RATIFYING GENERAL MANAGER'S USE OF EMERGENCY
PURCHASING AUTHORITY PURSUANT TO DELEGATION OF
AUTHORITY RESOLUTION 07-04 SECTION 6.03(J)
A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE
COUNTY SANITATION DISTRICT FINDING THAT PROJECT 5-58
DAMAGED THE SANTA ANA RIVER LEVEES, AUTHORIZING
EMERGENCY REPAIRS TO THE SANTA ANA LEVEES, AND
RATIFYING GENERAL MANAGER'S USE OF EMERGENCY
PURCHASING AUTHORITY PURSUANT TO DELEGATION OF
AUTHORITY RESOLUTION 07-04 SECTION 6.03(J)
WHEREAS, damage to the Santa Ana River Levees caused by Project 5-58
must be repaired before the rainy season begins in order to protect residences, habitat,
and District facilities from flooding; and
WHEREAS, the Levee damage is a sudden, unexpected occurrence that poses a
clear and imminent danger to residences, habitat, and District facilities requiring
immediate action to prevent or mitigate loss or impairment of life, health, property, and
essential public services; and
WHEREAS, the Levee damage constitutes an emergency within the meaning of
Public Contract Code Sections 22050 and 1102, and the Delegation of Authority
Resolution 07-04 Section 6.03(J); and
WHEREAS, the General Manager utilized emergency purchasing authority to
negotiate and award a contract to Geo-Solutions Inc. to provide Levee repair services
for Newport Sewer and Force Mains, Bitter Point to Coast Trunk Sewer, Contract No. 5-
58 for an amount not to exceed $2,038,000; and
WHEREAS, the General Manager utilized emergency purchasing authority to
negotiate and award a contract to Jamison Engineering Contractors, Inc. to provide
supporting construction services for Newport Sewer and Force Mains, Bitter Point to
Coast Trunk Sewer, Contract No. 5-58 for an amount not to exceed $670,000; and
WHEREAS, the General Manager utilized emergency purchasing authority to
negotiate and award a professional design services agreement to Black and Veatch to
728494.1
provide engineering support services for Newport Sewer and Force Mains, Bitter Point
to Coast Trunk Sewer, Contract No. 5-58 for an amount not to exceed $1,200,000; and
WHEREAS, there is a need to continue proceeding with the emergency Levee
repairs initiated by the General Manager; and
WHEREAS, the environmental impacts of Project 5-58 were previously studied in
the Environmental Impact Report for the Replacement of Newport Trunk Sewer and
Force Mains, Contract No. 5-58, certified by the District's Board of Directors on April 27,
2005 ("EIR"); and
WHEREAS, minor changes and additions are required in the previously certified
EIR to address the environmental impacts of modifying Project 5-58 to include
emergency repairs to the Santa Ana River Levees; and
WHEREAS, the proposed modifications of Project 5-58 do not require the
preparation of a subsequent EIR or negative declaration pursuant to Public Resources
Code Section 21166 or CEQA Guideline Section 15162.
NOW, THEREFORE, the Board of Directors of Orange County Sanitation District
hereby resolves, determines, and orders:
Section 1. The Board finds that the Levee damage constitutes an emergency
within the meaning of Public Contract Code Sections 22050 and 1102, and the
Delegation of Authority Resolution 07-04 Section 6.03(J).
Section 2. The Board ratifies the General Manager's use of emergency
purchasing authority to negotiate and award a contract to Geo-Solutions Inc. to provide
Levee repair services for Newport Sewer and Force Mains, Bitter Point to Coast Trunk
Sewer, Contract No. 5-58 for an amount not to exceed $2,038,000.
Section 2. The Board ratifies the General Manager's use of emergency
purchasing authority to negotiate and award a contract to Jamison Engineering
Contractors, Inc. to provide supporting construction services for Newport Sewer and
Force Mains, Bitter Point to Coast Trunk Sewer, Contract No. 5-58 for an amount not to
exceed $670,000.
Section 3. The Board ratifies the General Manager's use of emergency
purchasing authority to negotiate and award a professional design services agreement
to Black and Veatch to provide engineering support services for Newport Sewer and
728494.1
Force Mains, Bitter Point to Coast Trunk Sewer, Contract No. 5-58 for an amount not to
exceed $1,200,000.
Section 4. The Board finds a need to continue proceeding with the emergency
Levee repairs initiated by the General Manager.
Section 5. The Board finds that the modifications of Project No. 5-58 to include
emergency repairs to the Santa Ana Levees do not require the preparation of a
subsequent EIR or negative declaration pursuant to Public Resources Code Section
21166 and CEQA Guidelines Section 15162. The Board determines that an Addendum
to the EIR is appropriate pursuant to CEQA Guideline Section 15164.
Section 6. This resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED at a regular meeting held September 22, 2010.
Chair, Orange County Sanitation District
ATTEST:
Clerk of the Board
728494.1
BOARD OF DIRECTORS Meeting Date To Bd. of Dir.
09/22/10
AGENDA REPORT Item Number Item Number
13
Orange County Sanitation District
FROM: James D. Ruth, General Manager
Originator: Jim Herberg, Director of Engineering
CIP Project Manager: Alberto Acevedo
GENERAL MANAGER'S RECOMMENDATION
1. Receive and file Addendum No. 1 to the Final Environmental Impact Report for the
Newport Trunk Sewer and Force Mains Replacement Project prepared by
Environmental Science Associates;
2. Approve a project budget increase of $5,506,800 to Newport Sewer and Force
Mains, Bitter Point to Coast Trunk Sewer, Contract No. 5-58, for a total budget of
$31,389,800; and,
3. Adopt Resolution No. OCSD 10-16, Authorizing Emergency Repairs to the Santa
Ana River Levees and Ratifying the General Manager's Use of Emergency
Purchasing Authority Pursuant to Delegation of Authority Resolution 07-04 Section
6.03(J), and finding a continuing need to:
A. Negotiate and award a contract to Geo-Solutions, Inc. to provide soil
remediation services for said project, for an amount not to exceed $2,038,000;
B. Approve a contingency of $407,600 (20%);
C. Negotiate and award a contract to Jamison Engineering Contractors, Inc. to
provide supporting construction services for said project, for an amount not to
exceed $670,000;
D. Approve a contingency of $134,000 (20%);
E. Negotiate and award a professional design services agreement to Black and
Veatch to provide engineering services for said project, for an amount not to
exceed $1,200,000; and,
F. Approve a contingency of $120,000 (10%).
Page 1 of 5
SUMMARY
This project installed an additional pipeline connection from the Bitter Point Pump
Station to Plant No. 2 in order to improve the reliability of the Sanitation District's force
main systems in the City of Newport Beach. A construction contract for this work was
awarded to Haden Buntich Construction Co., Inc. and the contract work is substantially
complete.
A portion of the contract work included a tunnel section of pipeline. The soil above this
tunneled section of pipeline has settled and created voids in the soil along the alignment
including the Santa Ana River.
Responsibility to repair the affected soils is under dispute. The Sanitation District has
also notified the District's Owner Controlled Insurance Program (OCIP) insurance
carrier that the property damage has occurred, but there has been no determination.
The District will pursue cost recovery for these incurred costs.
The soil settlement poses a risk to the levee system that must be repaired as soon as
possible to mitigate these risks prior to the coming rainy season. A levee repair method
has been designed using a phased approach with the most critical work (Phase 1)
emergency repairs to the Santa Ana River Levees being implemented at this time.
The limited schedule to perform the work will not allow for a typical procurement
process. In order to expedite these repairs, Staff is requesting emergency authorization
for agreements with three separate contracting parties using an emergency
procurement authority.
The requested budget increase includes contract costs as well as providing for an
increase in staffing costs to support the extended project schedule during the
implementation of this Phase 1 work.
Additional repairs beyond the scope of this action are needed and are planned for a
second project phase. The Sanitation District is planning to work with the tunneling
contractor to complete these repairs. A plan will be developed to repair these areas, but
these are not considered an emergency. Costs for these future repairs are not included
in this action.
Some changes and additions are required to the previously certified EIR to address
modifications for the levee repairs. The modifications, however, do not result in any
new or significant impacts that were not previously considered or addressed in the 2005
EIR. An Addendum to the EIR was prepared pursuant to CEQA Guideline.
Page 2of5
PRIOR COMMITTEE/BOARD ACTIONS
August 2008 — Awarded a contract with Mladen Buntich Construction Co. for the
construction of the Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to
Coast Trunk Sewer, Contract 5-58, for a total amount not to exceed $18,512,931.
July 2008 —Approved a Professional Consultant Services Agreement with Black &
Veatch Corporation for Construction Support Services for an amount not to exceed
$973,463.
April 2007 - Approved Amendment No. 1 to the Professional Design Services
Agreement with Black & Veatch Corporation for an additional amount of$120,082,
increasing the total PSA contract amount not to exceed $1,138,989.
April 2007 - Authorized staff to commence negotiations with Black & Veatch Corporation
for support services during the construction, commissioning, and closeout phases of
Contract No. 5-58.
December 2003 - Approved Professional Design Services Agreement with Black &
Veatch Corporation for an amount not to exceed $1,018,907.
ADDITIONAL INFORMATION
This project installed an additional pipeline connection from the Bitter Point Pump
Station to Plant No. 2 in order to improve the reliability of the Sanitation District's force
main systems in the City of Newport Beach. A construction contract for this work was
awarded to Mladen Buntich Construction Co., Inc. and the contract work is substantially
complete.
A portion of the contract work included a tunnel section of pipeline beginning inside
Plant No. 2 and routed under the Santa Ana River to the east side. The soil above this
tunneled section of pipeline has settled and created voids in the soil along the alignment
including the Santa Ana River.
The Sanitation District's design consultants have concluded that the Contractor over
excavated during the tunneling operations. The Contractor maintains that there were
differing site conditions that caused the soil settlement. Responsibility to repair the
affected soils is under dispute. In addition, the Sanitation District has notified the
District's Owner Controlled Insurance Program (OCIP) insurance carrier that the
property damage has occurred. The OCIP Insurance carrier has not yet determined if
the damage is covered under the policy. The Districts will pursue cost recovery for
these incurred costs.
Page 3of5
The soil settlement poses a risk to the levee system that must be repaired as soon as
possible to mitigate these risks prior to the coming rainy season. A levee repair method
has been designed using a phased approach with the most critical work (Phase 1)
emergency repairs to the Santa Ana River Levees being implemented at this time. This
work involves soil remediation to improve the soil density of the east and west Santa
Ana River Levee in the vicinity of the pipeline installation. This must be completed by a
specialty contractor using soil mixing techniques with the addition of grout to the soil.
The limited schedule to perform the work will not allow for a typical procurement
process. In order to expedite these repairs, Staff is requesting emergency authorization
for agreements with three separate contracting parties using an emergency
procurement authority. There will be two construction contracts, one to retain the prime
soil remediation construction work and a second for supporting construction work. A
new Professional Design Services Agreement (PDSA) is necessary for engineering
oversight to verify the installation and certify the work.
The requested budget increase includes contract costs as well as providing for an
increase in staffing costs to support the implementation of this Phase 1 work.
Cost recovery for this work will be sought for this contracted work. These are being
explored by risk management staff and counsel's office.
Additional repairs beyond the scope of this action are needed and are planned for a
second project phase. The Phase 2 repairs include work from inside the Santa Ana
River as well as a portion of the Sanitation District's Ocean Outfall pipeline and adjacent
areas inside Plant 2. The Sanitation District is planning to work with the tunneling
contractor to complete these repairs. A plan will be developed to repair these areas in
the future, but these are not considered an emergency. Costs for these repairs are not
determined at this time and are not included in this action.
Pursuant to the provision of the California Environmental Quality Act (CEQA), the
Orange County Sanitation District (Sanitation District) Board of Directors (Board), as the
lead agency and decision-making body, is required to consider Addendum No. 1 to the
Final Environmental Impact Report (EIR) for the Replacement of Newport Trunk Sewer
and Force Mains in compliance with CEQA. As a result of this action, the Board can
proceed with approval and implementation of the project as presented herein.
CEQA
The Final Environmental Impact Report (EIR) for the Replacement of Newport Trunk
Sewer and Force Mains, Contract No. 5-58, was certified by the Sanitation District's
Board of Directors on April 27, 2005. The Notice of Determination was filed with the
State Clearinghouse on April 28, 2005. Addendum No. 1 to the Newport Sewer and
Force Mains EIR, as described herein, will be retained in the Sanitation District's official
files for internal reference.
Page 4 of 5
Some changes and additions are required to the previously certified EIR to address
modifications in the Newport Trunk Sewer Project. The modifications, however, do not
result in any new or substantially more severe significant impacts that were not
previously considered or addressed in the 2005 EIR. In addition, no new information of
substantial importance, that was not known or could not have been known at the time
the EIR was certified, shows that the project would have any new or more severe
impacts. None of the conditions described in Public Resources Code Section 21166 or
CEQA Guideline Section 15162 requiring preparation of a subsequent EIR or negative
declaration have occurred. On that basis, an Addendum to the EIR was prepared
pursuant to CEQA Guideline Section 15164. The Addendum and related resolution and
findings are attached hereto as Exhibit A.
Pursuant to CEQA, an Addendum is the appropriate document to describe the minor
modifications to the proposed projects. According to CEQA, no public circulation or
review period is required for an Addendum prepared for a previously circulated and
certified EIR.
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
This request complies with authority levels of the Sanitation District's Delegation of
Authority. This item has been budgeted, but the budget is insufficient for the
recommended action (Line item 05-58: Section 8, Page 8). The District will pursue cost
recovery for the incurred costs. In the interim, required funds will be taken from
anticipated savings from existing CIP projects.
Date of Approval Contract Amount Continaency
09/22/10 $2,038,000 $407,600 (20%)
09/22/10 $ 670,000 $134,000 (20%)
09/22/10 $1,200,000 $120,000 (10%)
ATTACHMENTS
1. Addendum No. 1 to the Final Environmental Impact Report for the Newport Trunk
Sewer and Force Mains Replacement Project prepared by Environmental Science
Associates.
2. Resolution No. OCSD 10-16, Authorizing Emergency Repairs to the Santa Ana
River Levees and Ratifying the General Manager's Use of Emergency Purchasing
Authority Pursuant to Delegation of Authority Resolution 07-04 Section 6.03(J)
JH:DF:BRH
h:\dept\agenda\board agenda reports\2010 board agenda reports\09\5-58 emergency levee repairs ar-092210.docx
Page 5 of 5
t
TOLLING AGREEMENT
This Tolling Agreement("Agreement is entered into by and between the Orange County
Sanitation District("OCSD")and Black&Veatch Corporation ("Consultant") (OCSD and
Consultant are collectively referred to as"Parties"and individually as"Party").
RECITALS
A. WHEREAS, this Agreement is made with reference to OCSD's project known as
Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer,
Contract No. 5-58 ("5-58 Project"); and
B. WHEREAS, the Parties entered into a Professional Services Agreement dated
December 17, 2003, for professional and technical services for the preparation of construction
documents, construction support services, commissioning and close out services, and project
support documentation for the 5-58 Project; and
C. WHEREAS, the Parties entered into an agreement dated January 14, 2004,
together with Amendment No. 1 dated April 25, 2007, for professional design services for the 5-
58 Project; and
D. WHEREAS, the Parties entered into a Professional Consultant Services
Agreement dated October or July 23, 2008, together with Amendment No. 1 dated October 5,
2010, for construction support services for the 5-58 Project; and
E. WHEREAS, the Parties entered into a Professional Design and Construction
Support Services Agreement dated September 15, 2010, for professional engineering design and
support services for the design and construction of soil remediation in response to levee
settlement resulting from the tunneling under the 5-58 Project; and
F. WHEREAS, OCSD entered into a public works contract("Construction
Contract") with Mladen Buntich Construction Co, ("MBCC" or"Contractor"), the general
contractor, for the construction of the 5-58 Project; and
G. WHEREAS, during the construction of the 5-58 Project by MBCC, subsidence
and property damage resulted from microtunneling operations completed by MBCC's
subcontractor in connection with the 5-58 Project ("Microtunneling Work"); and
H. WHEREAS, the Orange County Flood Control Division and the United States
Army Corps of Engineers required that OCSD immediately repair the property damage in and
around the Santa Ana River Levees caused by the subsidence that resulted from the construction
of the 5-58 Project; and
I. WHEREAS, Contractor contends that it encountered differing site conditions
which resulted in delays, extra work, and related damages, , and that other parties are responsible
for those delays and additional costs. Contractor has submitted a number of claims to OCSD
seeking compensation for the delays, extra work and related damages; and
775251.1
J. WHEREAS, the OCSD contends that the subsidence,property damages, delays,
additional costs, and all damages arising therefrom are the result of acts or omissions by
Contractor, Consultant, and/or other parties. OCSD has incurred, and continues to incur,
substantial costs as a result of the subsidence and related property damage. OCSD further
contends that OCSD is entitled to reimbursement from the responsible party or parties for all of
these costs and damages; and
K. WHEREAS, to the extent that Contractor is able to establish any liability on the
part of OCSD for the alleged delay, extra costs and damages, OCSD contends that others are
legally obligated to indemnify OCSD including Consultant and/or others; and
L. WHEREAS, Consultant disputes any liability, fault, and/or indemnity obligation
on its part, including but not limited to any allegations of defective plans, specifications and/or
evaluations, and further disputes that either OCSD or Contractor have incurred, or will continue
to incur damages because of or related to any acts or omissions of Consultant and/or its
employees; and
M. WHEREAS, all Parties dispute, in part or in full, the contentions of the others
and no final determinations have been made concerning the contentions, claims and/or cross-
claims of any party; and
N. WHEREAS, the Parties agree that it is in their best interest to defer or avoid
litigation of alleged claims, if any, of and/or by OCSD against Consultant, and of alleged claims,
if any, of and/or by Consultant against OCSD arising out of the 5-58 Project; and
O. WHEREAS, the Parties desire to toll the running of any statute of limitations and
any other time-related defense with respect to any rights, claims, causes of action, counterclaims,
cross-claims, and defenses that either Party may assert against the other Party arising out of the
5-58 Project(the"Claims").
AGREEMENT
NOW,THEREFORE, in consideration of the mutual covenants and conditions set forth
herein,the Parties hereto agree as follows:
1. Tolling of Claims. The Parties agree to toll any statute of limitations and any
other-time related defense, if any, applicable to the Claims, for a period of time commencing on
the Effective Date and continuing until this Agreement is terminated by either one of the Parties
as provided in Paragraph 2 (Withdrawal from the Agreement)below(the "Tolling Period").
775251.1
f
(a) The tolling shall apply equally to all Claims arising during the term of this
Agreement.
(b) The Parties agree that the Tolling Period shall be excluded from all computations
of any statute of limitations applicable to the Claims. The Parties agree that each shall not
plead, assert, or otherwise raise any statute of limitations or any other time-related defense
applicable to the Claims, to the extent the Claims are tolled by this Agreement, as a bar to or
other limitation on any Claims.
(c) The Parties agree that the Tolling Period shall not limit or otherwise affect the
duty of a Party, if any, to mitigate losses, damages, or injury.
(d) This Agreement shall not constitute a waiver or release of any defense of either
OCSD or Consultant based on the running of time under an applicable statute of limitations
or by way of estoppel, laches or other time related defense which arose, accrued, or would
have barred any claim relating to the subject matter of this Agreement prior to the Effective
Date, or which, in conjunction with other time periods not affected by this Agreement, would
have or will bar such claims. Furthermore,by this Agreement, neither OCSD nor Consultant
waive any right, position, defense, or objection to any claims related to the subject matter of
this Agreement other than as expressly provided herein. Nothing in this Agreement shall
limit or otherwise affect any defense available to a Party(a) as of the end of the day
immediately preceding the start of the Tolling Period, (b) in any litigation brought by the
other Party to this Agreement not involving the 5-58 Project, and/or(b) in any litigation
brought by any other person or entity that is not a Party to this Agreement.
(e) This Agreement constitutes a valid and effective written agreement to toll
pursuant to Section 360.5 of the California Code of Civil Procedure.
2. Withdrawal from the Agreement. Either Party may, upon written notice to the
other Party, sent by certified mail return receipt requested and properly addressed to the
business offices of the other Party, elect to withdraw from this Agreement. Such withdrawal
may occur irrespective of the consent of the other Party. The Tolling Period shall terminate
thirty(30) days following receipt of the notice of withdrawal.
3. Alternative Dispute Resolution. Nothing in this Agreement prohibits the Parties
from engaging in informal alternative dispute resolution, including, but not limited to,
mediation. Any agreement by the Parties to engage in informal alternative dispute resolution
during the terms of this Agreement does not affect the respective duties and obligations of the
Parties.
4. No Waiver. This Agreement shall not constitute a waiver or release of any
defenses of either Party based on the running of time under an applicable statute of limitations
or other time related defense which arose, accrued, or would have barred any Claims prior to the
Effective Date. Furthermore, by this Agreement, the Parties do not waive their rights to assert
any other position, defense, or objection to any Claims other than as expressly provided herein.
775251.1
5. No Admission. Neither the execution of this Agreement nor anything contained
in it is intended to be, nor shall be deemed to be, an admission of any nature by either party,
including but not limited to, an admission of any liability or an admission of the existence of
facts upon which liability could be based.
6. Interpretation. This Agreement shall not be construed against any party preparing
it, but shall be construed as if both parties jointly prepared the Agreement and any uncertainty or
ambiguity shall not be interpreted against any one party.
7. Notices. Any notice, request, demand, consent, approval or other communication
required or permitted hereunder or by law shall be deemed given or made only if in writing and
deposited in the United States mail, postage prepaid and addressed to the party for whom
intended, addressed as follows, or to such other address as may, from, time to time, be
designated by written notice to the other Parties:
To OCSD: Orange County Sanitation OCSD
Attn: Clerk of the Board
10844 Ellis Avenue
Fountain Valley, CA 92780
With a Copy To: Bradley R. Hogin
Woodruff, Spradlin& Smart
555 Anton Blvd. Suite 1200
Costa Mesa, CA 92626
To Consultant: Black&Veatch Corporation
800 Wilshire Blvd, Suite 600
Los Angeles, CA 90017
8. Governing L� This Agreement shall be governed by and construed under the
laws of the State of California.
9. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed in original, but all of which together shall constitute one and the same
agreement.
10. Breach. The Parties understand and agree that no breach of any provision or
provisions of this Agreement can be waived unless done so expressly in writing. A waiver of
one breach shall not be deemed a waiver of any other breach of the same or any other provision
of this Agreement.
11. Severability. If any provision of this Agreement is determined to be
unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to
achieve the intent of the Parties. In any event, the remaining provisions shall be deemed valid
and enforceable to the maximum extent possible.
775251.1
12. Authori . Each of the undersigned represents and warrants that he/she has the
authority to bind the Party on behalf of whom he/she signs and that the other Party hereto is
entitled to rely upon such representation for all legal purposes.
13. Parties Covered. This Agreement shall be signed by the Parties and shall inure to
the benefit of the Parties' successors and assigns.
14. No Admission of Liability. Neither the execution of this Agreement nor anything
contained in it is intended to be, nor shall be deemed to be, an admission of any nature by either
Party, including but not limited to, an admission of any liability or an admission of the existence
of facts upon which liability could be based.
15. Amendments and Modifications. This Agreement may be amended or modified
only by a written agreement signed by the Parties to this Agreement.
16. Entire Agreement. This Agreement constitutes the entire understanding between
the Parties hereto with respect to the subject matter set forth herein and supersedes any and all
prior or other contemporaneous understandings, correspondence, negotiations, or agreements,
written or oral,between them regarding the subject matter of this Agreement. No alterations,
modifications or interpretations hereof shall be binding unless in writing and signed by the
Parties.
17. Effective Date. This Agreement shall become effective ("Effective Date") as of
the date it is last signed.
[SIGNATURES ON THE FOLLOWING PAGE]
775251.1
IN WITNESS WHEREOF,the Parties hereto have caused this Agreement to be executed
as of the day and year first above written.
ORANGE COUNTY SANITATION DISTRICT
By: 7 (3 A
ate
Its: er 1ayza�
Date
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Approved as to Form:
14. �4 A.
OCSD ener 1 CoLksel
BLACK& VEATCH CORPORATION
By: T 7�/////
Date
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775251.1